S-3736.1                   _______________________________________________

 

                                                     SENATE BILL 6122

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1994 Regular Session

 

By Senators Skratek, Bluechel, Sheldon, Cantu and Winsley

 

Read first time 01/13/94.  Referred to Committee on Trade, Technology & Economic Development.

 

Prioritizing loans and grants for public facilities.


          AN ACT Relating to loans and grants for public facilities; and amending RCW 43.160.060.

 

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

 

        Sec. 1.  RCW 43.160.060 and 1993 c 320 s 4 are each amended to read as follows:

          The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the construction, rehabilitation, alter­ation, expansion, or improvement of the facilities.  A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivi­sion.

          Application for funds shall be made in the form and manner as the board may prescribe.  In making grants or loans the board shall conform to the following require­ments:

          (1) The board shall not make a grant or loan:

          (a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

          (b) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state.

          (c) For the acquisition of real property, including buildings and other fixtures which are a part of real property.

          (2) The board shall only make grants or loans:

          (a) For those projects which would result in specif­ic private developments or expansions (i) in manufactur­ing, production, food processing, assembly, warehousing, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; (iv) which support the ((relocation)) expansion of businesses from nondistressed urban areas ((to)) into distressed rural areas; or (v) which substantially support the trading of goods or services outside of the state's borders.

          (b) For projects which it finds will improve the opportunities for the successful maintenance, establish­ment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

          (c) When the application includes convincing evi­dence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

          (3) The board shall prioritize each proposed project ((according to)), giving the highest priority to projects that support value-added, resource-efficient manufacturing and high performance work organizations and that lead to the creation of high skill, high wage jobs.  The board shall also consider the relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and ((according to)) the unemployment rate in the area in which the jobs would be located.  As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

          (4) A responsible official of the political subdivi­sion  shall be present during board deliberations and provide information that the board requests.

          Before any loan or grant application is approved, the political subdivision seeking the loan or grant must demonstrate to the community economic revitalization board that no other timely source of funding is avail­able to it at costs reasonably similar to financing available from the community economic revitalization board.

 

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