5740-S2 AMH TED H3090

5740-S2 AMH TED H3090.1

2SSB 5740 - H COMM AMD

By Committee on Trade & Economic Development

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. LEGISLATIVE RECOGNITION AND INTENT. The legislature recognizes the economic hardship that rural distressed areas throughout the state have undergone in recent years. Numerous rural distressed areas across the state have encountered serious economic downturns resulting in significant job loss and business failure. In 1991 the legislature enacted two major pieces of legislation to promote economic development and job creation, with particular emphasis on worker training, income, and emergency services support, along with community revitalization through planning services and infrastructure assistance. However even though these programs have been of assistance, rural distressed areas still face serious economic problems including: Above-average unemployment rates from job losses and below-average employment growth; low rate of business start-ups; and persistent erosion of vitally important resource-driven industries.

The legislature also recognizes that rural distressed areas in Washington have an abiding ability and consistent will to overcome these economic obstacles by building upon their historic foundations of business enterprise, local leadership, and outstanding work ethic.

The legislature intends to assist rural distressed areas in their ongoing efforts to address these difficult economic problems by providing a comprehensive and significant array of economic tools, necessary to harness the persistent and undaunted spirit of enterprise that resides in the citizens of rural distressed areas throughout the state.

The further intent of this act is to provide:

(1) A strategically designed plan of assistance, emphasizing state, local, and private sector leadership and partnership;

(2) A comprehensive and significant array of business assistance, services, and tax incentives that are accountable and performance driven;

(3) An array of community assistance including infrastructure development and business retention, attraction, and expansion programs that will provide a competitive advantage to rural distressed areas throughout Washington; and

(4) Regulatory relief to reduce and streamline zoning, permitting, and regulatory requirements in order to enhance the capability of businesses to grow and prosper in rural distressed areas.

NEW SECTION. Sec. 2. GOALS. The primary goals of chapter . . ., Laws of 1997 (this act) are to:

(1) Promote the ongoing operation of business in rural distressed areas;

(2) Promote the expansion of existing businesses in rural distressed areas;

(3) Attract new businesses to rural distressed areas;

(4) Assist in the development of new businesses from within rural distressed areas;

(5) Provide family wage jobs to the citizens of rural distressed areas; and

(6) Promote the development of communities of excellence in rural distressed areas.

PART I

BUSINESS ASSISTANCE

NEW SECTION. Sec. 3. A new section is added to chapter 28C.04 RCW to read as follows:

JOB SKILLS/RURAL DISTRESSED AREA EMPLOYEE TRAINING. The work force training and education coordinating board shall give priority in the job skills program to assist businesses in rural distressed areas. For the purposes of this section, "rural distressed area" means the same as "rural natural resources impact area" under RCW 43.31.601.

NEW SECTION. Sec. 4. DEVELOPMENT LOAN FUND RECAPITALIZATION. The legislature finds that the development loan fund is a revolving loan fund capitalized primarily with federal funds. The fund, administered by the department of community, trade, and economic development, provides low-interest loans to businesses in economically distressed areas and other parts of the state. During the 1995-97 biennium, the department provided three million six hundred thousand dollars in loans, thereby exhausting its 1995-97 appropriation authority six months prior to the end of the biennium. However, due to early repayment of several loans, the account has an estimated fund balance of approximately one million seven hundred thousand dollars. In order to make the fund balance available for issuance of new loans prior to the end of the biennium, it is necessary to provide a supplemental appropriation.

Sec. 5. 1995 2nd sp.s. c 16 s 108 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Development loan fund (88-2-002)

Reappropriation:

St Bldg Constr Acct‑-State.......... $ 2,000,000

Wa St Dev Loan Acct‑-Federal........ $ 186,654

-------------

Subtotal Reappropriation.... $ 2,186,654

Appropriation:

Wa St Dev Loan Acct‑-Federal........ $ ((~~3,500,000~~))

5,200,000

Prior Biennia (Expenditures)........ $ 5,932,935

Future Biennia (Projected Costs).... $ 20,000,000

-------------

TOTAL................. $ ((~~31,619,589~~))

33,319,589

Sec. 6. RCW 43.168.140 and 1995 c 226 s 28 are each amended to read as follows:

RURAL DISTRESSED AREAS. Any funds appropriated by the legislature to the development loan fund for purposes of the timber recovery act shall be used for development loans in rural ((~~natural resources impact areas as defined in RCW 43.31.601~~)) distressed areas. At least seventy-five percent of all discretionary expenditures shall be made on behalf of businesses in rural distressed areas. For the purposes of this section, "rural distressed area" means the same as "rural natural resources impact area" under RCW 43.31.601.

Sec. 7. RCW 43.163.210 and 1996 c 310 s 1 are each amended to read as follows:

ECONOMIC DEVELOPMENT FINANCE AUTHORITY. For the purpose of facilitating economic development in the state of Washington and encouraging the employment of Washington workers at meaningful wages:

(1) The authority may develop and conduct a program or programs to provide nonrecourse revenue bond financing ((for the project costs for no more than five economic development activities, per fiscal year, included under the authority's general plan of economic development finance objectives. In addition, the authority may issue tax-exempt bonds to finance ten manufacturing or processing activities, per fiscal year, for which the total project cost is less than one million dollars per project)).

(2) The authority may ((~~also~~)) develop and conduct a program that will stimulate and encourage the development of new products within Washington state by the infusion of financial aid for invention and innovation in situations in which the financial aid would not otherwise be reasonably available from commercial sources. The authority is authorized to provide nonrecourse revenue bond financing for this program.

(a) For the purposes of this program, the authority shall have the following powers and duties:

(i) To enter into financing agreements with eligible persons doing business in Washington state, upon terms and on conditions consistent with the purposes of this chapter, for the advancement of financial and other assistance to the persons for the development of specific products, procedures, and techniques, to be developed and produced in this state, and to condition the agreements upon contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it;

(ii) Own, possess, and take license in patents, copyrights, and proprietary processes and negotiate and enter into contracts and establish charges for the use of the patents, copyrights, and proprietary processes when the patents and licenses for products result from assistance provided by the authority;

(iii) Negotiate royalty payments to the authority on patents and licenses for products arising as a result of assistance provided by the authority;

(iv) Negotiate and enter into other types of contracts with eligible persons that assure that public benefits will result from the provision of services by the authority; provided that the contracts are consistent with the state Constitution;

(v) Encourage and provide technical assistance to eligible persons in the process of developing new products;

(vi) Refer eligible persons to researchers or laboratories for the purpose of testing and evaluating new products, processes, or innovations; and

(vii) To the extent permitted under its contract with eligible persons, to consent to a termination, modification, forgiveness, or other change of a term of a contractual right, payment, royalty, contract, or agreement of any kind to which the authority is a party.

(b) Eligible persons seeking financial and other assistance under this program shall forward an application, together with an application fee prescribed by rule, to the authority. An investigation and report concerning the advisability of approving an application for assistance shall be completed by the staff of the authority. The investigation and report may include, but is not limited to, facts about the company under consideration as its history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects, integrity of management as well as the feasibility of the proposed product and invention to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report set out in this subsection and after other action as is deemed appropriate, the application shall be approved or denied by the authority. The applicant shall be promptly notified of action by the authority. In making the decision as to approval or denial of an application, priority shall be given to those persons operating or planning to operate businesses of special importance to Washington's economy, including, but not limited to: (i) Existing resource-based industries of agriculture, forestry, and fisheries; (ii) existing advanced technology industries of electronics, computer and instrument manufacturing, computer software, and information and design; and (iii) emerging industries such as environmental technology, biotechnology, biomedical sciences, materials sciences, and optics.

(3) The authority may also develop and implement, if authorized by the legislature, such other economic development financing programs adopted in future general plans of economic development finance objectives developed under RCW 43.163.090.

(4) The authority may not issue any bonds for the programs authorized under this section after June 30, 2000.

PART II

TAX INCENTIVES

Sec. 8. RCW 67.28.210 and 1996 c 159 s 4 are each amended to read as follows:

All taxes levied and collected under RCW 67.28.180, 67.28.240, and 67.28.260 shall be credited to a special fund in the treasury of the county or city imposing such tax. Such taxes shall be levied only for the purpose of paying all or any part of the cost of acquisition, construction, or operating of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes under this chapter, or to pay for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion when a county or city has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county or city treasurer in any manner authorized by law. In addition such taxes may be used to develop strategies to expand tourism: PROVIDED, That any county, and any city within a county, bordering upon Grays Harbor may use the proceeds of such taxes for construction and maintenance of a movable tall ships tourist attraction in cooperation with a tall ships restoration society, except to the extent that such proceeds are used for payment of principal and interest on debt incurred prior to June 11, 1986: PROVIDED FURTHER, That any city or county may use the proceeds of such taxes for the refurbishing and operation of a steam railway or historic maritime vessels used primarily for passenger transportation for tourism promotion purposes: PROVIDED FURTHER, That any city bordering on the Pacific Ocean or on Baker Bay with a population of not less than eight hundred and the county in which such a city is located, a city bordering on the Skagit river with a population of not less than twenty thousand, or any city within a county made up entirely of islands may use the proceeds of such taxes for funding special events or festivals, or for the acquisition, construction, or operation of publicly owned tourist promotional infrastructures, structures, or buildings including but not limited to an ocean beach boardwalk, public docks, and viewing towers: PROVIDED FURTHER, That any county which imposes a tax under RCW 67.28.182 or any city with a population less than fifty thousand in such county may use the proceeds of the tax levied and collected under RCW 67.28.180 to provide public restroom facilities available to and intended for use by visitors: PROVIDED FURTHER, That any county made up entirely of islands, ((~~and~~)) any city or town that has a population less than five thousand, and any county that is a rural distressed area as defined under RCW 43.31.601 or any city within that county, may use the proceeds of the tax levied and collected under RCW 67.28.180 to provide public restroom facilities, parking facilities, or public lighting including sport field lighting that is available to and intended for use by visitors: PROVIDED FURTHER, That any city or county may use the proceeds of such taxes for funding a civic festival, if the following conditions are met: The festival is a community-wide event held not more than once annually; the festival is approved by the city, town, or county in which it is held; the festival is sponsored by an exempt organization defined in section 501(c)(3), (4), or (6) of the federal internal revenue code; the festival provides family-oriented events suiting a broad segment of the community; and the proceeds of such taxes are used solely for advertising and promotional materials intended to attract overnight visitors: PROVIDED FURTHER, That any city may use the proceeds of such taxes for street banners to attract and welcome tourists.

NEW SECTION. Sec. 9. A new section is added to chapter 82.04 RCW to read as follows:

(1) This chapter shall not apply to the gross sales or the gross income received by a new manufacturing business located in an eligible area as defined in RCW 82.62.010.

(2) As used in this section:

(a) "New manufacturing business" means a manufacturing business that was registered for the first time after the effective date of this section. A business ceases to be a new manufacturing business thirty-six months after the date it was first registered.

(b) "New manufacturing business" does not include:

(i) A business that has been restructured, reorganized, or transferred, unless the majority of the activities to be conducted after restructuring, reorganization, or transferral are significantly different from the activities previously conducted;

(ii) A new branch location or other facility; or

(iii) A business that is substantially similar to a business currently operated, or operated within the past ten years, by the same principals.

(c) "Registered" means the business obtained or was required to obtain a registration certificate under RCW 82.32.030, or obtained or was required to obtain registration with any state, federal, or foreign agency.

PART III

COMMUNITY INFRASTRUCTURE

Sec. 10. RCW 43.160.080 and 1992 c 235 s 10 are each amended to read as follows:

PUBLIC FACILITIES CONSTRUCTION LOAN REVOLVING ACCOUNT. There shall be a fund in the state treasury known as the public facilities construction loan revolving account, which shall consist of all moneys collected under this chapter, except moneys of the board collected in connection with the issuance of industrial development revenue bonds, and any moneys appropriated to it by law((: PROVIDED, That seventy-five percent of all principal and interest payments on loans made with the proceeds deposited in the account under section 901, chapter 57, Laws of 1983 1st ex. sess. shall be deposited in the general fund as reimbursement for debt service payments on the bonds authorized in RCW 43.83.184)). Disbursements from the revolving account shall be on authorization of the board. In order to maintain an effective expenditure and revenue control, the public facilities construction loan revolving account shall be subject in all respects to chapter 43.88 RCW.

Sec. 11. RCW 43.160.076 and 1996 c 51 s 7 are each amended to read as follows:

FINANCIAL ASSISTANCE IN DISTRESSED COUNTIES OR NATURAL RESOURCES IMPACT AREAS. (1) Except as authorized to the contrary under subsection (2) of this section, from all funds available to the board for financial assistance in a biennium, the board shall spend at least ((~~fifty~~)) seventy-five percent for financial assistance for projects in distressed counties or rural natural resources impact areas. For purposes of this section, the term "distressed counties" includes any county, in which the average level of unemployment for the three years before the year in which an application for financial assistance is filed, exceeds the average state employment for those years by twenty percent.

(2) If at any time during the last six months of a biennium the board finds that the actual and anticipated applications for qualified projects in distressed counties or rural natural resources impact areas are clearly insufficient to use up the ((~~fifty~~)) seventy-five percent allocation, then the board shall estimate the amount of the insufficiency and during the remainder of the biennium may use that amount of the allocation for financial assistance to projects not located in distressed counties or rural natural resources impact areas.

Sec. 12. 1995 c 226 s 7 (uncodified) is amended to read as follows:

RCW 43.160.076 and 1997 c . . . s 11 (section 11 of this act), 1991 c 314 s 24, & 1985 c 446 s 6 are each repealed effective June 30, ((~~1997~~)) 2000.

PART IV

RURAL ENTERPRISE ZONES

NEW SECTION. Sec. 13. A new section is added to chapter 43.63A RCW to read as follows:

RURAL ENTERPRISE ZONES. The legislature recognizes the unique difficulties encountered by communities in rural distressed areas wishing to promote business development, increase employment opportunities, and provide a high quality of life for its citizens. In response the legislature authorizes the establishment of rural enterprise zones that will allow the targeting of state services and resources in the form of business, industry recruitment, regulatory relief, and infrastructure development. It is the intent of the legislature to provide the critical level of resources and services to businesses and entities located in these rural enterprise zones that they will be the catalyst for economic prosperity and diversity throughout rural distressed areas in Washington.

(1) The department in cooperation with the department of revenue and other state agencies shall approve applications submitted by local governments in rural distressed areas. The application shall be in the form and manner and contain the necessary information designated by the department. The application shall:

(a) Be submitted on behalf of the local government by the chief elected official or, if none, by the governing body of the local government;

(b) Outline the purpose for the economic development enterprise zone and the process in which the application was developed;

(d) Outline the manner in which the enterprise zone will be governed and report its activities to the local government and the department; and

(e) Designate the geographic area in which the rural enterprise zone will exist.

(2) Rural enterprise zones are authorized to:

(a) Hire a director or designate an individual to oversee operations;

(b) Seek federal, state, and local government support in its efforts to target, develop, and attract viable businesses;

(c) Work with the office of business assistance and recruitment for rural distressed areas in the pursuit of its economic development activities;

(d) Provide a local one-stop shop for businesses intending to locate, retain, expand, or start their businesses within its zone; and

(e) Provide comprehensive permitting, zoning, and regulatory assistance to businesses or entities within the zone.

(3) Rural enterprise zones are authorized to receive the services and funding resources as provided under the rural area marketing plan and other resources assisting rural distressed areas.

(4) Rural enterprise zones may be established in conjunction with a foreign trade zone.

PART V

REAUTHORIZATION OF EXISTING PROGRAMS

Sec. 14. RCW 43.31.601 and 1995 c 226 s 1 are each amended to read as follows:

For the purposes of RCW 43.31.601 through ((~~43.31.661~~)) 43.31.641:

(1) "Timber impact area" means a county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (a) A lumber and wood products employment location quotient at or above the state average; (b) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (c) an annual unemployment rate twenty percent or more above the state average.

(2)(a) "Rural natural resources impact area" or "rural distressed area" means:

(i) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in (b) of this subsection; ((or))

(ii) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in (b) of this subsection; or

(iii) A nonurbanized area, as defined by the 1990 decennial census, that is located in a metropolitan county that meets ((~~two~~)) three of the five criteria set forth in (b) of this subsection.

(b) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(i) A lumber and wood products employment location quotient at or above the state average;

(ii) A commercial salmon fishing employment location quotient at or above the state average;

(iii) Projected or actual direct lumber and wood products job losses of one hundred positions or more;

(iv) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

(v) An unemployment rate twenty percent or more above the state average.

The counties that meet these criteria shall be determined by the employment security department for the most recent year for which data is available. For the purposes of administration of programs under this chapter, the United States post office five-digit zip code delivery areas will be used to determine residence status for eligibility purposes. For the purpose of this definition, a zip code delivery area ((~~that is located wholly or partially in an urbanized area or within two~~)) of which any part is ten miles ((of)) or more from an urbanized area is considered nonurbanized. A zip code totally surrounded by zip codes qualifying as nonurbanized under this definition is also considered nonurbanized. The office of financial management shall make available a zip code listing of the areas to all agencies and organizations providing services under this chapter.

Sec. 15. RCW 43.31.611 and 1995 c 226 s 2 are each amended to read as follows:

(1) The governor shall appoint a rural community assistance coordinator. The coordinator shall coordinate the state and federal economic and social programs targeted to rural natural resources impact areas.

(2) The coordinator's responsibilities shall include but not be limited to:

(a) Chairing the agency rural community assistance task force and directing staff associated with the task force.

(b) Coordinating and maximizing the impact of state and federal assistance to rural natural resources impact areas.

(d) Providing the legislature with a status and impact report on the rural community assistance program in January ((~~1996~~)) 1998.

(3) To assist in carrying out the duties set out under this section, the coordinator shall consult with the Washington state rural development council and may appoint an advisory body that has representation from local governments and natural resources interest groups representing impacted rural communities.

(4) This section shall expire June 30, ((~~1997~~)) 2000.

Sec. 16. RCW 43.31.621 and 1996 c 186 s 508 are each amended to read as follows:

(1) There is established the agency rural community assistance task force. The task force shall be chaired by the rural community assistance coordinator. It shall be the responsibility of the coordinator that all directives of chapter 314, Laws of 1991, and chapter 226, Laws of 1995 are carried out expeditiously by the agencies represented in the task force. The task force shall consist of the directors, or representatives of the directors, of the following agencies: The department of community, trade, and economic development, employment security department, department of social and health services, state board for community and technical colleges, work force training and education coordinating board, department of natural resources, department of transportation, department of fish and wildlife, University of Washington center for international trade in forest products, department of agriculture, and department of ecology. The task force shall solicit and consider input from the rural development council in coordinating agency programs targeted to rural natural resources impacted communities. The task force may consult and enlist the assistance of the following: The higher education coordinating board, University of Washington college of forest resources, University of Washington school of fisheries, Washington State University school of forestry, Northwest policy center, state superintendent of public instruction, Washington state labor council, the Evergreen partnership, Washington state association of counties, and others as needed.

(2) ((The task force, in conjunction with the rural development council, shall undertake a study to determine whether additional communities and industries are impacted, or are likely to be impacted, by salmon preservation and recovery efforts. The task force shall consider possible impacts in the following industries and associated communities: Barge transportation, irrigation dependent agriculture, food processing, aluminum, charter recreational fishing, boatbuilding, and other sectors suggested by the task force. The task force shall report its findings and recommendations to the legislature by January 1996.

~~(3)~~)) This section shall expire June 30, ((~~1997~~)) 2000.

Sec. 17. RCW 50.22.090 and 1995 c 226 s 5 and 1995 c 57 s 2 are each reenacted and amended to read as follows:

(1) An additional benefit period is established for rural natural resources impact areas, defined in RCW 43.31.601, and determined by the office of financial management and the employment security department. Benefits shall be paid as provided in subsection (3) of this section to exhaustees eligible under subsection (4) of this section.

(2) The additional benefit period for a county may end no sooner than fifty-two weeks after the additional benefit period begins.

(3) Additional benefits shall be paid as follows:

(a) No new claims for additional benefits shall be accepted for weeks beginning after July 1, ((~~1997~~)) 1999, but for claims established on or before July 1, ((~~1997~~)) 1999, weeks of unemployment occurring after July 1, ((~~1997~~)) 1999, shall be compensated as provided in this section.

(b) The total additional benefit amount shall be one hundred four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year. Additional benefits shall not be payable for weeks more than two years beyond the end of the benefit year of the regular claim for an individual whose benefit year ends on or after July 27, 1991, and shall not be payable for weeks ending on or after two years after March 26, 1992, for individuals who become eligible as a result of chapter 47, Laws of 1992.

(c) Notwithstanding the provisions of (b) of this subsection, individuals will be entitled to up to five additional weeks of benefits following the completion or termination of training.

(d) Notwithstanding the provisions of (b) of this subsection, individuals enrolled in prerequisite remedial education for a training program expected to last at least one year will be entitled to up to thirteen additional weeks of benefits which shall not count toward the total in (b) of this subsection.

(e) The weekly benefit amount shall be calculated as specified in RCW 50.22.040.

(f) Benefits paid under this section shall be paid under the same terms and conditions as regular benefits. The additional benefit period shall be suspended with the start of an extended benefit period, or any totally federally funded benefit program, with eligibility criteria and benefits comparable to the program established by this section, and shall resume the first week following the end of the federal program.

(g) The amendments in chapter 316, Laws of 1993 affecting subsection (3)(b) and (c) of this section shall apply in the case of all individuals determined to be monetarily eligible under this section without regard to the date eligibility was determined.

(4) An additional benefit eligibility period is established for any exhaustee who:

(a)(i) At the time of last separation from employment, resided in or was employed in a rural natural resources impact area defined in RCW 43.31.601 and determined by the office of financial management and the employment security department; or

(ii) During his or her base year, earned wages in at least six hundred eighty hours in either the forest products industry, which shall be determined by the department but shall include the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment or the fishing industry assigned the standard industrial classification code "0912". The commissioner may adopt rules further interpreting the industries covered under this subsection. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c); and

(b)(i) Has received notice of termination or layoff; and

(ii) Is unlikely to return to employment in his or her principal occupation or previous industry because of a diminishing demand within his or her labor market for his or her skills in the occupation or industry; and

(c)(i) Is notified by the department of the requirements of this section and develops an individual training program that is submitted to the commissioner for approval not later than sixty days after the individual is notified of the requirements of this section, and enters the approved training program not later than ninety days after the date of the individual's termination or layoff, or ninety days after July 1, 1991, whichever is later, unless the department determines that the training is not available during the ninety-day period, in which case the individual shall enter training as soon as it is available; or

(ii) Is enrolled in training approved under this section on a full-time basis and maintains satisfactory progress in the training.

(5) For the purposes of this section:

(a) "Training program" means:

(i) A remedial education program determined to be necessary after counseling at the educational institution in which the individual enrolls pursuant to his or her approved training program; or

(ii) A vocational training program at an educational institution that:

(A) Is training for a labor demand occupation; and

(B) Is likely to facilitate a substantial enhancement of the individual's marketable skills and earning power.

(b) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410(3).

(c) "Training allowance or stipend" means discretionary use, cash-in-hand payments available to the individual to be used as the individual sees fit, but does not mean direct or indirect compensation for training costs, such as tuition or books and supplies.

(6) The commissioner shall adopt rules as necessary to implement this section.

(7) The provisions of RCW 50.22.010(10) shall not apply to anyone who establishes eligibility for additional benefits under this section and whose benefit year ends after January 1, 1994. These individuals will have the option of remaining on the original claim or filing a new claim.

Sec. 18. RCW 43.63A.021 and 1995 c 226 s 11 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Dislocated forest products worker" means a forest products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(2) "Forest products worker" means a worker in the forest products industries affected by the reduction of forest fiber enhancement, transportation, or production. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting these definitions. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c).

(3) "Dislocated salmon fishing worker" means a ((~~salmon~~)) finfish products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(4) "Salmon fishing worker" means a worker in the ((~~salmon~~)) finfish industry affected by 1994 or future salmon disasters. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries involved in the commercial and recreational harvesting of ((~~salmon~~)) finfish including buying and processing ((~~salmon~~)) finfish. The commissioner may adopt rules further interpreting these definitions.

Sec. 19. RCW 43.31.641 and 1995 c 226 s 4 are each amended to read as follows:

The department of community, trade, and economic development, as a member of the agency rural community assistance task force, shall:

(1) ((Implement an expanded value-added forest products development industrial extension program. The department shall provide technical assistance to small and medium-sized forest products companies to include:

~~(a) Secondary manufacturing product development;~~

~~(b) Plant and equipment maintenance;~~

~~(c) Identification and development of domestic market opportunities;~~

~~(d) Building products export development assistance;~~

~~(e) At-risk business development assistance;~~

~~(f) Business network development; and~~

~~(g) Timber impact area industrial diversification.~~

(2) Provide local contracts for small and medium-sized forest product companies, start-ups, and business organizations for business feasibility, market development, and business network contracts that will benefit value-added production efforts in the industry.

(3) Contract with local business organizations in timber impact areas for development of programs to promote industrial diversification. The department shall provide local capacity-building grants to local governments and community-based organizations in timber impact areas, which may include long-range planning and needs assessments.

~~For the 1991‑93 biennium, the department of community, trade, and economic development shall use funds appropriated for this section for contracts and for no more than two additional staff positions~~)) Administer available federal grant funds to support strategic diversification needs and opportunities of timber-dependent communities, value-added forest products firms, and the value-added forest products industry in Washington state.

(2) Provide technical aid to value-added wood products companies for new investment and job creation; and work with wood products firms to assure the continued operation and help retain jobs.

(3) Provide value-added wood products companies with building products export development assistance.

Sec. 20. RCW 43.63A.440 and 1995 c 226 s 13 are each amended to read as follows:

The department of community, trade, and economic development shall provide technical and financial assistance to communities adversely impacted by reductions in timber harvested from federal, state, and private lands and reduction of salmon fishing caused by efforts to maintain the long-term viability of salmon stocks. ((This assistance shall include the formation and implementation of community economic development plans. The department of community, trade, and economic development shall utilize existing state technical and financial assistance programs, and shall aid communities in seeking private and federal financial assistance for the purposes of this section. The department may contract for services provided for under this section)) The department shall use existing technical and financial assistance resources to aid communities in planning, implementing, and assembling financing for high priority community economic development projects.

Sec. 21. RCW 43.160.020 and 1996 c 51 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the community economic revitalization board.

(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

(3) "Department" means the department of community, trade, and economic development.

(4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

(5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

(6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

(7) "Local government" or "political subdivision" means any port district, county, city, town, special purpose district, and any other municipal corporations or quasi-municipal corporations in the state providing for public facilities under this chapter.

(8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

(9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

(10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

(11) "Public facilities" means bridges, roads, domestic and industrial water, sanitary sewer, storm sewer, railroad, electricity, natural gas, buildings or structures, and port facilities.

(12) "Rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in subsection (13) of this section; ((or))

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (13) of this section; or

(c) A nonurbanized area, as defined by the 1990 decennial census, that is located in a metropolitan county that meets ((~~two~~)) three of the five criteria set forth in subsection (13) of this section.

(13) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

(e) An unemployment rate twenty percent or more above the state average. The counties that meet these criteria shall be determined by the employment security department for the most recent year for which data is available. For the purposes of administration of programs under this chapter, the United States post office five-digit zip code delivery areas will be used to determine residence status for eligibility purposes. For the purpose of this definition, a zip code delivery area ((~~that is located wholly or partially in an urbanized area or within two~~)) of which any part is ten miles ((of)) or more from an urbanized area is considered nonurbanized. A zip code totally surrounded by zip codes qualifying as nonurbanized under this definition is also considered nonurbanized. The office of financial management shall make available a zip code listing of the areas to all agencies and organizations providing services under this chapter.

Sec. 22. 1995 c 226 s 8 (uncodified) is amended to read as follows:

RCW 43.160.200 expires June 30, ((~~1997~~)) 2000.

Sec. 23. 1995 c 226 s 9 (uncodified) is amended to read as follows:

RCW 43.160.210 shall take effect June 30, ((~~1997~~)) 2000.

Sec. 24. RCW 28B.50.030 and 1995 c 226 s 17 are each amended to read as follows:

As used in this chapter, unless the context requires otherwise, the term:

(1) "System" shall mean the state system of community and technical colleges, which shall be a system of higher education.

(2) "Board" shall mean the work force training and education coordinating board.

(3) "College board" shall mean the state board for community and technical colleges created by this chapter.

(4) "Director" shall mean the administrative director for the state system of community and technical colleges.

(5) "District" shall mean any one of the community and technical college districts created by this chapter.

(6) "Board of trustees" shall mean the local community and technical college board of trustees established for each college district within the state.

(7) "Occupational education" shall mean that education or training that will prepare a student for employment that does not require a baccalaureate degree.

(8) "K‑12 system" shall mean the public school program including kindergarten through the twelfth grade.

(9) "Common school board" shall mean a public school district board of directors.

(10) "Community college" shall include those higher education institutions that conduct education programs under RCW 28B.50.020.

(11) "Technical college" shall include those higher education institutions with the sole mission of conducting occupational education, basic skills, literacy programs, and offering on short notice, when appropriate, programs that meet specific industry needs. The programs of technical colleges shall include, but not be limited to, continuous enrollment, competency-based instruction, industry-experienced faculty, curriculum integrating vocational and basic skills education, and curriculum approved by representatives of employers and labor. For purposes of this chapter, technical colleges shall include Lake Washington Vocational-Technical Institute, Renton Vocational-Technical Institute, Bates Vocational-Technical Institute, Clover Park Vocational Institute, and Bellingham Vocational-Technical Institute.

(12) "Adult education" shall mean all education or instruction, including academic, vocational education or training, basic skills and literacy training, and "occupational education" provided by public educational institutions, including common school districts for persons who are eighteen years of age and over or who hold a high school diploma or certificate. However, "adult education" shall not include academic education or instruction for persons under twenty-one years of age who do not hold a high school degree or diploma and who are attending a public high school for the sole purpose of obtaining a high school diploma or certificate, nor shall "adult education" include education or instruction provided by any four year public institution of higher education.

(13) "Dislocated forest product worker" shall mean a forest products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(14) "Forest products worker" shall mean a worker in the forest products industries affected by the reduction of forest fiber enhancement, transportation, or production. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting these definitions. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c).

(15) "Dislocated salmon fishing worker" means a ((~~salmon~~)) finfish products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(16) "Salmon fishing worker" means a worker in the ((~~salmon~~)) finfish industry affected by 1994 or future salmon disasters. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries involved in the commercial and recreational harvesting of ((~~salmon~~)) finfish including buying and processing ((~~salmon~~)) finfish. The commissioner may adopt rules further interpreting these definitions.

(17) "Rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in subsection (18) of this section; ((or))

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (18) of this section; or

(18) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

Sec. 25. RCW 28B.80.570 and 1995 c 226 s 20 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28B.80.575 through 28B.80.585.

(1) "Board" means the higher education coordinating board.

(2) "Dislocated forest products worker" means a forest products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(3) "Forest products worker" means a worker in the forest products industries affected by the reduction of forest fiber enhancement, transportation, or production. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting these definitions. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c).

(4) "Dislocated salmon fishing worker" means a ((~~salmon~~)) finfish products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business's services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

(5) "Salmon fishing worker" means a worker in the ((~~salmon~~)) finfish industry affected by 1994 or future salmon disasters. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries involved in the commercial and recreational harvesting of ((~~salmon~~)) finfish including buying and processing ((~~salmon~~)) finfish. The commissioner may adopt rules further interpreting these definitions.

(6) "Rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in subsection (7) of this section; ((or))

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (7) of this section; or

(7) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

Sec. 26. RCW 28B.80.580 and 1995 c 226 s 22 are each amended to read as follows:

(1) The board shall contract with institutions of higher education to provide upper division classes to serve additional placebound students in the rural natural resources impact areas meeting the following criteria, as determined by the employment security department: (a) A lumber and wood products employment location quotient at or above the state average; (b) a commercial salmon fishing employment location quotient at or above the state average; (c) a direct lumber and wood products job loss of one hundred positions or more; (d) projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and (e) an annual unemployment rate twenty percent above the state average; and which are not served by an existing state-funded upper division degree program. The number of full-time equivalent students served in this manner shall be determined by the applicable omnibus appropriations act. The board may direct that all the full-time equivalent enrollments be served in one of the eligible rural natural resources impact areas if it should determine that this would be the most viable manner of establishing the program and using available resources. The institutions shall utilize telecommunication technology, if available, to carry out the purposes of this section. Subject to the limitations of RCW 28B.15.910, the institutions providing the service may waive all or a portion of the tuition, and service and activities fees for dislocated forest products workers and dislocated salmon fishing workers or their unemployed spouses enrolled as one of the full-time equivalent students allocated to the college under this section.

(2) Unemployed spouses of eligible dislocated forest products workers and dislocated salmon fishing workers may participate in the program, but tuition and fees may be waived under the program only for the worker or the spouse and not both.

(3) Subject to the limitations of RCW 28B.15.910, for any eligible participant, all or a portion of tuition may be waived for a maximum of ((~~four semesters or six quarters within a two-year time period~~)) ninety quarter credit hours or sixty semester credit hours earned within four years. The participant must be enrolled for a minimum of ((~~ten credits per semester or quarter~~)) five credit hours per quarter or three credit hours per semester.

Sec. 27. RCW 43.20A.750 and 1995 c 269 s 1901 and 1995 c 226 s 25 are each reenacted and amended to read as follows:

(1) The department of social and health services shall help families and workers in rural natural resources impact areas make the transition through economic difficulties and shall provide services to assist workers to gain marketable skills. The department, as a member of the agency rural community assistance task force and, where appropriate, under an interagency agreement with the department of community, trade, and economic development, shall provide grants through the office of the secretary for services to the unemployed in rural natural resources impact areas and to dislocated salmon fishing workers as defined in RCW 43.63A.021 who live in urban areas of qualifying rural natural resource impact counties, including providing direct or referral services, establishing and operating service delivery programs, and coordinating delivery programs and delivery of services. These grants may be awarded for family support centers, reemployment centers, or other local service agencies.

(2) The services provided through the grants may include, but need not be limited to: Credit counseling; social services including marital counseling; psychotherapy or psychological counseling; mortgage foreclosures and utilities problems counseling; drug and alcohol abuse services; medical services; and residential heating and food acquisition.

(3) Funding for these services shall be coordinated through the agency rural community assistance task force which will establish a fund to provide child care assistance, mortgage assistance, and counseling which cannot be met through current programs. No funds shall be used for additional full-time equivalents for administering this section.

(4)(a) Grants for family support centers are intended to provide support to families by responding to needs identified by the families and communities served by the centers. Services provided by family support centers may include parenting education, child development assessments, health and nutrition education, counseling, and information and referral services. Such services may be provided directly by the center or through referral to other agencies participating in the interagency team.

(b) The department shall consult with the council on child abuse or neglect regarding grants for family support centers.

(5) "Rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in subsection (6) of this section; ((or))

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (6) of this section; or

(6) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

Sec. 28. RCW 50.12.270 and 1995 c 226 s 30 are each amended to read as follows:

(1) Subject to the availability of state or federal funds, the employment security department, as a member of the agency rural community assistance task force, shall consult with and may subcontract with local educational institutions, local businesses, local labor organizations, local associate development organizations, local private industry councils, local social service organizations, and local governments in carrying out a program of training and services, including training through the entrepreneurial training program, for dislocated workers in rural natural resources impact areas.

(2) The department shall conduct a survey to determine the actual future employment needs and jobs skills in rural natural resources impact areas.

(3) The department shall coordinate the services provided in this section with all other services provided by the department and with the other economic recovery efforts undertaken by state and local government agencies on behalf of the rural natural resources impact areas.

(4) The department shall make every effort to procure additional federal and other moneys for the efforts enumerated in this section.

(5) For the purposes of this section, "rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets ((~~two~~)) three of the five criteria set forth in subsection (6) of this section; ((or))

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (6) of this section; or

(6) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

Sec. 29. RCW 43.131.385 and 1995 c 226 s 34 are each amended to read as follows:

The rural natural resources impact area programs shall be terminated on June 30, ((~~1998~~)) 2000, as provided in RCW 43.131.386.

Sec. 30. RCW 43.131.386 and 1996 c 168 s 5 are each amended to read as follows:

The following acts or parts of acts are each repealed, effective June 30, ((~~1999~~)) 2001:

(1) RCW 43.31.601 and 1995 c 226 s 1, 1992 c 21 s 2, & 1991 c 314 s 2;

(2) RCW 43.31.641 and 1995 c 226 s 4, 1993 c 280 s 50, & 1991 c 314 s 7;

(3) RCW 50.22.090 and 1995 c 226 s 5, 1993 c 316 s 10, 1992 c 47 s 2, & 1991 c 315 s 4;

(4) RCW 43.160.212 and 1996 c 168 s 4, 1995 c 226 s 6, & 1993 c 316 s 5;

(5) ((~~RCW 43.31.651 and 1995 c 226 s 10, 1993 c 280 s 51, & 1991 c 314 s 9;~~

~~(6)~~)) RCW 43.63A.021 and 1995 c 226 s 11;

((~~(7)~~)) (6) RCW 43.63A.600 and 1995 c 226 s 12, 1994 c 114 s 1, 1993 c 280 s 77, & 1991 c 315 s 23;

((~~(8)~~)) (7) RCW 43.63A.440 and 1995 c 226 s 13, 1993 c 280 s 74, & 1989 c 424 s 7;

((~~(9)~~)) (8) RCW 43.160.200 and 1995 c 226 s 16, 1993 c 320 s 7, 1993 c 316 s 4, & 1991 c 314 s 23;

((~~(10)~~)) (9) RCW 28B.50.258 and 1995 c 226 s 18 & 1991 c 315 s 16;

((~~(11)~~)) (10) RCW 28B.50.262 and 1995 c 226 s 19 & 1994 c 282 s 3;

((~~(12)~~)) (11) RCW 28B.80.570 and 1995 c 226 s 20, 1992 c 21 s 6, & 1991 c 315 s 18;

((~~(13)~~)) (12) RCW 28B.80.575 and 1995 c 226 s 21 & 1991 c 315 s 19;

((~~(14)~~)) (13) RCW 28B.80.580 and 1995 c 226 s 22, 1993 sp.s. c 18 s 34, 1992 c 231 s 31, & 1991 c 315 s 20;

((~~(15)~~)) (14) RCW 28B.80.585 and 1995 c 226 s 23 & 1991 c 315 s 21;

((~~(16)~~)) (15) RCW 43.17.065 and 1995 c 226 s 24, 1993 c 280 s 37, 1991 c 314 s 28, & 1990 1st ex.s. c 17 s 77;

((~~(17)~~)) (16) RCW 43.20A.750 and 1995 c 226 s 25, 1993 c 280 s 38, 1992 c 21 s 4, & 1991 c 153 s 28;

((~~(18)~~)) (17) RCW 43.168.140 and 1995 c 226 s 28 & 1991 c 314 s 20;

((~~(19)~~)) (18) RCW 50.12.270 and 1995 c 226 s 30 & 1991 c 315 s 3;

((~~(20)~~)) (19) RCW 50.70.010 and 1995 c 226 s 31, 1992 c 21 s 1, & 1991 c 315 s 5; and

((~~(21)~~)) (20) RCW 50.70.020 and 1995 c 226 s 32 & 1991 c 315 s 6.

NEW SECTION. Sec. 31. RCW 43.31.651 and 1995 c 226 s 10, 1993 c 280 s 51, & 1991 c 314 s 9 are each repealed.

PART VI

EVALUATION

NEW SECTION. Sec. 32. REVIEW AND EVALUATION. The joint legislative audit and review committee shall design an evaluation mechanism for economically distressed counties under this act and undertake an evaluation of the act's effectiveness by November 1, 1999. The agencies implementing the programs under this act shall assist the joint legislative audit and review committee evaluation.

PART VII

MISCELLANEOUS

NEW SECTION. Sec. 33. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 34. Section captions and part headings used in this act are not any part of the law.

NEW SECTION. Sec. 35. If specific funding for the purposes of this act, referencing this act by bill, chapter, or section number, is not provided by June 30, 1997, in the omnibus appropriations act, this act or specific section is null and void."

Correct the title.

EFFECT: Removes the rural areas recovery board, the state office of business assistance and recruitment for rural distressed areas, and the regulatory fairness revisions. Technical corrections made budget for development loan fund, removes 75 percent requirement of job skills program funds to rural distressed areas, makes changes to CERB funding for consistency purposes.