2784-S.E AMS WM S5121.1

ESHB 2784 - S COMM AMD

By Committee on Ways & Means

ADOPTED 03/11/2004

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. It is hereby declared to be the policy of the state of Washington to assist in the creation and expansion of innovative small commercial enterprises that produce marketable goods and services through the employment of Washington residents, the use of technology, and the application of best management practices. This policy is to be implemented through the use of small business incubators.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Business incubator" means a facility that offers:

(a) Space for start-up and expanding firms;

(b) The shared use of equipment and work areas;

(d) Technical assistance.

(2) "Qualified small business incubator" means an incubator that is:

(a)(i) Designated as a nonprofit organization under section 501(c)(3) of the internal revenue code, or (ii) consists of a partnership between a designated nonprofit organization under section 501(c)(3) of the internal revenue code and a government or quasi-government agency;

(b) Focused on developing small businesses in an economically distressed or disadvantaged area; and

NEW SECTION. Sec. 3. (1) The small business incubator program is created in the department of community, trade, and economic development to provide start-up and operating assistance to qualified small business incubators.

(2) The department shall award grants to qualified small business incubator organizations for:

(a) Construction and equipment costs, up to a maximum of three million dollars per recipient; and

(b) Provision of technical assistance to small businesses, up to a maximum of one hundred twenty-five thousand dollars per year per recipient.

(3) The department shall:

(a) Require a grant recipient to show that it has the resources to complete the project in a timely manner and the state grant is not the sole source of funds;

(b) Develop, in conjunction with the Washington association of small business incubators, criteria for receipt of grant funds, including criteria related to organizational capacity, community need, and the availability of other economic development resources;

(c) Accept and receive grants, gifts, and pledges of funds for the support of the small business incubator program, which shall be deposited in the small business incubator account established in section 4 of this act; and

(d) Integrate the promotion of small business incubators as economic development tools in its strategic plan.

NEW SECTION. Sec. 4. The small business incubator account is created in the custody of the state treasurer. All money received for the incubator program under section 3 of this act must be deposited in the account. Expenditures from the account may be used only for the small business incubator program. Only the director of the department of community, trade, and economic development or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION. Sec. 5. This act may be known as the Washington small business incubator and entrepreneurship assistance act of 2004.

NEW SECTION. Sec. 6. The department of community, trade, and economic development shall have no duty to provide services related to the small business incubator and entrepreneurship assistance act of 2004 unless and until the small business incubator program and related administrative expenses are funded by the legislature.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act constitute a new chapter in Title 43 RCW."

ESHB 2784 - S COMM AMD

By Committee on Ways & Means

ADOPTED 03/11/2004

On page 1, line 1 of the title, after "program;" strike the remainder of the title and insert "and adding a new chapter to Title 43 RCW."

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