H-2137

AN ACT Relating to a Washington timberlands foundation; adding a new chapter to Title 43 RCW; creating a new section; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds and declares that the social and economic implications of recent declines from expected timber harvest schedules resulting from the preservation of northern spotted owl habitat constitutes an immediate threat to timber communities.

The legislature acknowledges that the logging community is distinguished by an unusual commitment to individualism, hard work, inventiveness, and entrepreneurial spirit.

A social contract has been broken, and with it the fabric of a unique community. Social and cultural disruptions are caused by the severe stress of job loss, a loss of trust in assured government timber supplies, and a feeling of disenfranchisement while the political conflict over fundamental social values continues.

The well-being of the citizens who lives in timber-dependent regions is in acute peril, jeopardizing not only the quality of life for those residing in the timberlands, but also the continued viability of the timberlands themselves, in which human beings play an important and integral role as managers and beneficiaries.

New ways must be found to ensure the survival of the timberlands' way of life while, at the same time, building the foundation for a new economy and a lifestyle that is both sustainable and personally rewarding. The current strains on the timberlands' economies and the harsh stresses being experienced by the timberlands' people, make it necessary for the legislature to take immediate, comprehensive, and long-lasting action.

NEW SECTION. Sec. 2. This chapter shall be known as the timberlands revitalization act.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Timberlands" means a region of the state, as determined by economic census data, where timber harvesting is the dominant economic activity.

(2) "Industry council" means a local, nongovernmental, and voluntary association of business and labor entities whose purpose is to organize and sustain working relationships that are mutually beneficial and beneficial to the economic health of the domestic economy.

(3) "Community congress" means a local, nongovernmental, and voluntary association of community interests established prior to or pursuant to this chapter and intended to stimulate local initiative in the attainment of local goals.

(4) "Network economy" means an economy of indigenous local enterprises who contribute to each others' success as mutual buyers and sellers of essential products and services.

NEW SECTION. Sec. 4. There is hereby established the timberlands foundation. The foundation is responsible for achieving and sustaining a high quality of life in Washington's timberlands region. The foundation shall:

(1) Assist in transforming the local economy from one dependent on primary wood products to a network economy based on a mix of primary wood products, value-added wood products, and secondary manufacturing of wood products; the design and manufacture of other products, including so-called high technology industry; ecological husbandry; aquaculture; crafts; local wholesale and retail activity; education and cultural activity; tourism; trade; and other indigenous economic activity;

(2) Encourage the substitution, wherever possible, of sustainable agriculture and other economic activities, including silviculture, for harvest activities that remove vital resources from the domestic ecology and economy; and the preservation and replenishment of ecological features essential to the character of the region and its enjoyment by residents and visitors alike;

(3) Invest in enterprises in the region that are complementary to the goals of the foundation, especially enterprises that have a strong local component and which contribute to a local economy that is self-directed and independent from influences outside the region;

(4) Stimulate a vital regional cultural life, including strong, responsive educational institutions, that builds a strong sense of personal identity and community among residents of the timberlands and creates opportunities for timberlands residents to express this sense of identity and community; and

(5) Act as an advocate for the interests of the people of the region in councils of the state and before the federal government.

NEW SECTION. Sec. 5. The foundation shall be governed by a board of directors.

(1) The board of directors shall be comprised of seven persons who shall serve for four years.

(a) The initial board shall be appointed by the governor and the legislature. Three members shall be appointed by the governor, two by the speaker of the house of representatives, and two by the president pro tem of the senate. Each of the persons appointed to the board shall be a resident of the timberlands and have experience in economic, civic, or cultural affairs relevant to the needs of the timberlands. In making these appointments, the governor, speaker of the house of representatives, and president pro tem of the senate shall seek to appoint persons who represent the diverse complexion, by age, race, sex, occupation, and interests, of the population of the timberlands; and

(b) Subsequent boards shall be directly elected by the people of the timberlands. The procedures for this election shall be set forth by the legislature.

(2) The board of directors shall be compensated as directed by the legislature.

(3) The board of directors shall appoint an executive director, who shall serve at the pleasure of the board, to manage the activities of the foundation. The executive director may hire additional staff to assist in the conduct of his or her management, subject to the approval of the board of directors.

NEW SECTION. Sec. 6. The foundation shall:

(1) Develop, in consultation with local and state agencies, crisis relief programs, including programs for mortgage and debt assistance, educational opportunity, and family centers, to mitigate the immediate stresses experienced by families and individuals in the timberlands who have been victimized by catastrophic changes in the local economy.

(a) These programs shall be coordinated with existing programs intended to provide relief to the people of the timberlands; and

(b) To the greatest extent possible, the foundation shall transfer responsibility for these programs to the residents of the timberlands.

(2) Investigate and promote indigenous, autonomous economic activity based on value-added industry and local enterprises that create diversity economic development.

(a) The foundation shall conduct studies of the timberlands local economies to determine:

(i) Where industry is nonindigenous, nonsustainable, or contributory to economic leakages from the region; and how this industry might be transformed into or replaced by industry, including silviculture, that is indigenous, sustainable, and contributory to continuous economic development;

(ii) How a network-based economy emphasizing linkages among indigenous enterprises can be developed and sustained; and

(iii) Those educational and other resources supplied by the state and local agencies that are required to provide a hospitable environment for a healthy local economy and civic life.

(b) The foundation is empowered to invest in local enterprises whose successes will contribute to the attainment of the goals set forth for the foundation in this chapter by making investment grants to these enterprises. These investment grants shall be low or no-interest loans, as determined by the legislature.

(i) These investment grants shall be labor-enhancing or shall create new jobs. In no case shall these investment grants be used to enable industrial processes that result in a replacement of labor without the creation of accompanying jobs of an equal or higher quality than those that would be replaced.

(ii) Such investments shall be targeted to produce a diverse economy based on a mix of primary wood products, value-added wood products, and secondary manufacturing of wood products; the design and manufacture of other products, including so-called high technology industry; ecological husbandry; aquaculture; crafts; local wholesale and retail activity; education and cultural activity; tourism; trade; and other indigenous economic activity. Whenever appropriate, the foundation shall consult with the recipients of investment grants to develop overseas markets for the products or services that they produce.

(iii) These investments shall occur only in response to formal application for funding submitted to the foundation, according to a process established by the foundation, and subject to the scrutiny of business, labor, and environmental representatives, and others determined by the legislature to hold a stake in the successful outcome of these investments.

(iv) The foundation shall establish a network of agents to assist in identifying opportunities for, and promoting, network economies and other economic activity that enables the foundation to achieve the goals set forth in this chapter. These agents shall promote the creation of local industry councils capable of coordinating local economic activity and building favorable relationships among enterprises.

(3) Enhance the educational, cultural, and civic life of the region. To this end the foundation shall:

(a) Work with the University of Washington, Washington State University, Western Washington University, The Evergreen State College, and other educational institutions in the region to improve educational opportunities in the timberlands;

(b) Study and work for the establishment of a four-year technical institution of higher education in the southern timberlands, for the purpose of training and retraining residents in the region's new occupations. This institution and Western Washington University shall endeavor to train local residents in professions of immediate relevance to the timberlands, including but not limited to silviculture and forestry, marine studies, business administration, tourism, medicine and nursing, and teaching;

(c) Award fellowships and grants for graduate and postgraduate work in degrees and research projects relating, but not limited, to timber issues;

(d) Make grants for local educational, cultural, and recreational activities, including artistic expressions, that contribute to a sense of personal identity and community in the timberlands. Team efforts are favored over individual efforts in the conduct of these activities;

(e) Encourage and support the creation and activation of community congresses in communities throughout the timberlands. A community congress shall be the nexus where local governments, school districts, business, labor, and volunteer groups can collaborate in the solution of local problems and the accomplishment of local goals; and

(f) Establish an extension service for promoting educational, cultural, and civic opportunities within the structures and institutions set forth by this chapter.

(4) Study and promote new methods of revitalizing life in the timberlands. These methods shall include but not be limited to:

(a) Stimulating conditions favorable to the investment of capital in the region;

(b) Determining the comparative advantages of the region vis-a-vis other regions in the global economy and means for their exploitation; and

(c) Examining and promoting the use of new technologies, including but not limited to telecommunications and information technology, new silviculture and forest management technology, value-added and secondary manufacturing technology, transportation technology, and aquaculture technology, that can contribute to a vibrant and sustainable local economy.

(5) The foundation shall annually report to the legislature and the governor on its activities and make recommendations for legislation essential to the foundation meeting the goals set forth in this chapter.

NEW SECTION. Sec. 7. The sum of .............. dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the budget stabilization account under RCW 43.88.525 to the board of directors of the timberlands foundation, for the purposes of this act.

NEW SECTION. Sec. 8. Sections 2 through 6 of this act shall constitute a new chapter in Title 43 RCW.