February 10, 1997

BILL ANALYSIS

TO:       Members, Committee on Trade and Economic Development

FROM:     Kenny Pittman, Research Analyst  (786-7392)

RE:       HB 1201 - Providing for reauthorization of assistance to areas impacted by        the rural natural resources crisis.

BACKGROUND:

Washington=s natural resource-based communities have been impacted by reductions in timber and salmon harvests.  In 1990, Washington=s timber supply was dramatically reduced due to federal actions limiting harvest on U.S. Forest Service lands.  This severely impacted the state=s timber industry, resulting in the loss of approximately 20,000 jobs and economic dislocation throughout numerous rural communities over the past six years.  In response to the timber harvest reductions, Governor Gardner established the Timber Task Force to coordinate state assistance to impacted areas. 

In April 1994, the U.S. Department of Commerce closed the ocean salmon fishing season.  The following May, Governor Lowry proclaimed a state emergency in those affected counties and requested federal assistance.  The Timber Task Force began coordinating the delivery of federal disaster-relief funds to areas affected by the closure of the salmon fishing season.  The Timber Task Force also assumed responsibility for identifying state funds needed to complement the federal effort.

In 1995, the Legislature reauthorized the timber assistance programs and expanded the focus of the state=s targeted assistance to include workers affected by the closure of the salmon fishing season.  Other changes made to reflect the expanded focus were: (1) The Timber Task Force was renamed the Rural Community Assistance Task Force; (2) The Timber Recover Coordinator was renamed the Rural Community Assistance Coordinator; (3) A Rural Natural Resource Impact Area was defined to include both nonmetropolitan and nonurbanized areas of metropolitan counties; (4) The Rural Community Assistance Task Force was expanded to include the state department of Agriculture; and (5) The Washington State Rural Development Council was directed to provide input on assistance efforts.

Extended Unemployment Insurance Benefits.

Dislocated workers in rural natural resource impact areas are eligible to receive up to two years of unemployment insurance benefits provided they are in training.  The extended benefits are made available, state wide, to dislocated timber and salmon workers.  An additional 13 weeks of benefits are provided for individuals that are participating in a training program that is expected to last one year or longer.

Supplemental Enrollment/Tuition Waivers.

Participating community, technical, or upper division colleges receive supplemental enrollment allocations and funds to support direct costs for dislocated workers from rural natural resource impact areas.  Tuition waivers are provided to a limited number of dislocated workers or spouses for full-time study for up to two years.

Infrastructure Financing.

The Department of Community, Trade, and Economic Development must give preference to infrastructure/public works projects in rural natural resource impact areas funded through the Community Economic Revitalization Board (CERB) and Timber Public Works Trust Fund.  At least 50 percent of the funds are targeted to those areas.

Local Economic Development.

Local governments and economic development organizations in rural natural resource impact areas are provided with technical assistance in developing and implementing economic development strategies through various state agencies.

Business Assistance Programs.

To assist communities in rural natural resource areas: (1) Department of Community, Trade, and Economic Development=s must;  (a) give preference to loans made to individuals and firms that create or retain jobs in natural resource impact areas are given preference under the Washington Development Loan Fund; (b) provide technical assistance through the Small Business Export Finance Assistance to businesses located in rural natural resource areas, and (c) provide entrepreneurial training to dislocated workers in rural natural resource impact areas; and (2) State agencies must expedite the issuance of permits necessary for economic development projects in rural natural resource impact areas.

Employment Opportunities.

The Environmental Restoration and Enhancement program provides employment opportunities to dislocated workers in rural natural resource areas.

Mortgage and Rental Assistance.

The Emergency Mortgage and Rental Assistance Loan and Grant program provide assistance to dislocated workers in rural natural resource impact areas who cannot make current mortgage or rental payments due to a lack of income.

Social and Supportive Services.

The Department of Social and Health Services provides emergency food and medical assistance, crisis intervention, counseling, and child care services to dislocated workers in rural natural resource impact areas.

The Rural Community Assistance Task Force and Coordinator are scheduled to terminate on June 30, 1997.  The associated rural natural resource impact area assistance programs are subject to the sunset review process and are scheduled to terminate on June 30, 1998.

SUMMARY:

The Rural Community Assistance Team, the Rural Community Assistance Coordinator, and the various state programs designed to assist dislocated workers and communities in rural natural resource impact areas and dislocated timber and salmon workers on a state wide basis are revised and continued.

The following definitions for the purposes of the rural natural resource impact area are revised to:

(a) Include a category for nonmetropolitan counties with a population under 40,000, based on 1990 U.S. Census data; (b) Include  portions of rural areas of some metropolitan counties; and (c) Include a person in the finfish industry as a salmon worker.

Extended Unemployment Insurance Benefits.

The period for new claims under the extended unemployment insurance benefits program is extended from July 1, 1997 to July 1, 1999.

Supplemental Enrollment/Tuition Waivers.

The requirement for the tuition waivers is revised so that the dislocated worker or spouse may get all or part of the tuition waived on up to a maximum of 90 quarter hours or 60 semester hours within four years. The participant must enroll in a minimum of five credit hours per quarter or three credit hours per semester.

Infrastructure Financing.

The Community Economic Revitalization Board (CERB) program is revised to: (a) Increase the amount of funds designated to distressed counties or rural natural resource impact areas from 50 percent to 75 percent of the allocation per biennium; and (b) extend the use of CERB funds in distressed counties and rural natural resource areas from June 30, 1997 to June 30, 1999.

The Public Works Trust Fund Rural Natural Resource program is allowed to expire.

Local Economic Development.

The Department of Community, Trade, and Economic Development (CTED) assistance to communities impacted by reduction in timber harvests is expanded to include salmon fishing.  The CTED must use existing technical and financial assistance resources to aid communities in developing high priority community economic development projects.

The CTED=s community assistance program designed to build local capacity for sustainable economic development is repealed.

Sunset Review Extensions -- Programs.

The sunset review date for rural natural resource impact area programs are extended from June 30, 1998 to June 30, 2000, with repealer of the programs is extended from June 30, 1999 to June 30, 2001.

The extension of the sunset review date and associated repealer applies to: (a) The Rural Community Assistance Team and Coordinator; (b) The extended unemployment insurance benefits program; (c) The supplemental enrollment/tuition waiver program; (d) The Department of Community, Trade, and Economic Development=s infrastructure financing programs and technical assistance to local communities; (d) The Department of Community, Trade, and Economic Development=s business assistance programs; (e) The Employment Security Department=s training and services programs for rural natural resource impact areas and employment opportunities in environmental enhancement and restoration program; and (f)  The state agency streamlined approval process for economic development projects in rural natural resource impact areas.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  The bill contains an emergency clause and takes effect July 1, 1997.