AN
ACT Relating to the community economic revitalization board; amending RCW
43.160.060; reenacting and amending RCW 43.84.092; adding a new section to
chapter 43.160 RCW; creating a new section; and providing an expiration date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that the community economic revitalization board plays a
valuable and unique role in stimulating and diversifying local economies,
attracting private investment, creating new jobs, and generating additional
state and local tax revenues by investing in public facilities projects that
result in new or expanded economic development. The legislature also finds
that it is in the best interest of the state and local communities to secure a
stable and dedicated source of funds for the community economic revitalization
board. It is the intent of the legislature to establish an ongoing funding
source for the community economic revitalization board that will be used
exclusively to advance economic development infrastructure. This act provides
a temporary funding source until such time as a more permanent funding solution
can be established. These funds are not for use other than for the stated
purpose and goals of the community economic revitalization board.
Sec.
2. RCW
43.84.092 and 2001 2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and
2001 c 80 s 5 are each reenacted and amended to read as follows:
(1)
All earnings of investments of surplus balances in the state treasury shall be
deposited to the treasury income account, which account is hereby established
in the state treasury.
(2)
The treasury income account shall be utilized to pay or receive funds
associated with federal programs as required by the federal cash management
improvement act of 1990. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for refunds or
allocations of interest earnings required by the cash management improvement
act. Refunds of interest to the federal treasury required under the cash
management improvement act fall under RCW 43.88.180 and shall not require
appropriation. The office of financial management shall determine the amounts
due to or from the federal government pursuant to the cash management
improvement act. The office of financial management may direct transfers of
funds between accounts as deemed necessary to implement the provisions of the cash
management improvement act, and this subsection. Refunds or allocations shall
occur prior to the distributions of earnings set forth in subsection (4) of
this section.
(3)
Except for the provisions of RCW 43.84.160, the treasury income account may be utilized
for the payment of purchased banking services on behalf of treasury funds
including, but not limited to, depository, safekeeping, and disbursement
functions for the state treasury and affected state agencies. The treasury
income account is subject in all respects to chapter 43.88 RCW, but no
appropriation is required for payments to financial institutions. Payments
shall occur prior to distribution of earnings set forth in subsection (4) of
this section.
(4)
Monthly, the state treasurer shall distribute the earnings credited to the
treasury income account. The state treasurer shall credit the general fund
with all the earnings credited to the treasury income account except:
(a)
The following accounts and funds shall receive their proportionate share of
earnings based upon each account's and fund's average daily balance for the
period: The capitol building construction account, the Cedar River channel
construction and operation account, the Central Washington University capital
projects account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county criminal
justice assistance account, the county sales and use tax equalization account,
the data processing building construction account, the deferred compensation
administrative account, the deferred compensation principal account, the
department of retirement systems expense account, the drinking water assistance
account, the drinking water assistance administrative account, the drinking
water assistance repayment account, the Eastern Washington University capital
projects account, the education construction fund, the emergency reserve fund,
the federal forest revolving account, the health services account, the public
health services account, the health system capacity account, the personal
health services account, the state higher education construction account, the
higher education construction account, the highway infrastructure account, the
industrial insurance premium refund account, the judges' retirement account,
the judicial retirement administrative account, the judicial retirement
principal account, the local leasehold excise tax account, the local real
estate excise tax account, the local sales and use tax account, the medical aid
account, the mobile home park relocation fund, the multimodal transportation
account, the municipal criminal justice assistance account, the municipal sales
and use tax equalization account, the natural resources deposit account, the
oyster reserve land account, the perpetual surveillance and maintenance
account, the public employees' retirement system plan 1 account, the public
employees' retirement system combined plan 2 and plan 3 account, the public
facilities construction loan revolving account beginning July 1, 2004, the
public health supplemental account, the Puyallup tribal settlement account, the
resource management cost account, the site closure account, the special
wildlife account, the state employees' insurance account, the state employees'
insurance reserve account, the state investment board expense account, the
state investment board commingled trust fund accounts, the supplemental pension
account, the teachers' retirement system plan 1 account, the teachers'
retirement system combined plan 2 and plan 3 account, the tobacco prevention
and control account, the tobacco settlement account, the transportation
infrastructure account, the tuition recovery trust fund, the University of
Washington bond retirement fund, the University of Washington building account,
the volunteer fire fighters' and reserve officers' relief and pension principal
fund, the volunteer fire fighters' and reserve officers' administrative fund,
the Washington fruit express account, the Washington judicial retirement system
account, the Washington law enforcement officers' and fire fighters' system
plan 1 retirement account, the Washington law enforcement officers' and fire
fighters' system plan 2 retirement account, the Washington school employees'
retirement system combined plan 2 and 3 account, the Washington state health
insurance pool account, the Washington state patrol retirement account, the
Washington State University building account, the Washington State University
bond retirement fund, the water pollution control revolving fund, and the
Western Washington University capital projects account. Earnings derived from
investing balances of the agricultural permanent fund, the normal school
permanent fund, the permanent common school fund, the scientific permanent fund,
and the state university permanent fund shall be allocated to their respective
beneficiary accounts. All earnings to be distributed under this subsection
(4)(a) shall first be reduced by the allocation to the state treasurer's
service fund pursuant to RCW 43.08.190.
(b)
The following accounts and funds shall receive eighty percent of their
proportionate share of earnings based upon each account's or fund's average
daily balance for the period: The aeronautics account, the aircraft search and
rescue account, the county arterial preservation account, the department of
licensing services account, the essential rail assistance account, the ferry
bond retirement fund, the grade crossing protective fund, the high capacity
transportation account, the highway bond retirement fund, the highway safety
account, the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget Sound
capital construction account, the Puget Sound ferry operations account, the
recreational vehicle account, the rural arterial trust account, the safety and
education account, the special category C account, the state patrol highway
account, the transportation equipment fund, the transportation fund, the
transportation improvement account, the transportation improvement board bond
retirement account, and the urban arterial trust account.
(5)
In conformance with Article II, section 37 of the state Constitution, no
treasury accounts or funds shall be allocated earnings without the specific
affirmative directive of this section.
NEW
SECTION. Sec. 3. A
new section is added to chapter 43.160 RCW to read as follows:
(1)
The public works assistance account shall annually transfer funds to the public
facilities construction loan revolving account in amounts as follows: In
fiscal year 2003, twelve percent of eighteen million eight hundred ninety
thousand seven hundred seventy-five dollars, the total outstanding principal
and interest associated with the loans issued by the public works board under
the timber and rural natural resources programs; and in each of fiscal years
2004, 2005, 2006, and 2007, twenty-two percent of the principal and interest
associated with the timber and rural natural resources programs. In no event
may this transfer exceed four million five hundred thousand dollars per year.
(2)
This section expires June 30, 2007.
Sec.
4. RCW
43.160.060 and 1999 c 164 s 103 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, project-specific environmental, capital facilities, land use,
permitting, feasibility(([,])), and marketing studies and plans;
project design, site planning, and analysis; project debt and revenue impact
analysis; 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
and the finding by the board that financial circumstances require grant
assistance to enable the project to move forward. However, at least ten
percent of all financial assistance provided by the board in any biennium shall
consist of grants to political subdivisions.
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 provide financial assistance:
(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 provide financial assistance:
(a)
For those projects which would result in specific private developments or
expansions (i) in manufacturing, production, food processing, assembly,
warehousing, advanced technology, research and development, 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
of businesses from nondistressed urban areas to rural counties or rural natural
resources impact 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 public
facility improvement is made.
(3)
The board shall prioritize each proposed project according to:
(a)
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; and
(b)
The rate of return of the state's investment, that includes the expected
increase in state and local tax revenues associated with the project.
(4)
A responsible official of the political subdivision shall be present during
board deliberations and provide information that the board requests.
Before
any financial assistance application is approved, the political subdivision
seeking the assistance 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.
