BILL REQ. #:  S-4173.1 

Read first time 01/27/2004.   Referred to Committee on Economic Development.

     AN ACT Relating to the small business incubator program; and adding a new chapter to Title 43 RCW.

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

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 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 physical location that offers:
     (a) Space for start-up and expanding firms with viable products;
     (b) The shared use of equipment and work areas;
     (c) Daily management support services essential to high-quality commercial operations; and
     (d) Technical resources that enable entrepreneurs to transform private activities into successful business.
     (2) "Qualified small business incubator" means an incubator that is:
     (a) Designated as a nonprofit organization under section 501(c)(3) of the internal revenue code;
     (b) Focused on developing small businesses in an economically distressed or disadvantaged area;
     (c) Structured around a sound business plan; and
     (d) Compliant with the standards developed by the department of community, trade, and economic development in consultation with the Washington association of small business incubators.

NEW SECTION.  Sec. 3   (1) The small business incubator program is created and shall be administered by the department of community, trade, and economic development.
     (2) The department of community, trade, and economic development shall award grants to qualified small business incubator organizations with viable operational plans for the construction and equipment needs of small business incubator facilities. In order to receive the grant money, the qualified small business incubator organization must 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.
     (3) The department of community, trade, and economic development will provide operating assistance, up to a maximum of 125,000 dollars per year, to qualified small business incubators for support services and the operation of incubator facilities.

NEW SECTION.  Sec. 4   All state agencies must include small business incubators in strategies for economic growth. This inclusion may consist of practicable communications, partnership agreements, and other relationships that promote the use of small business incubators to stimulate economic activities.

NEW SECTION.  Sec. 5   The small business incubator account is created in the custody of the state treasurer. All money received for the incubator program 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. 6   This act may be known as the Washington small business incubator and entrepreneurship assistance act of 2004.

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