2784-S.EAMSECS4980.1ESHB 2784S COMM AMDBy Committee on Economic Development Strike everything after the enacting clause and insert thefollowing:NEW SECTION.Sec. It is hereby declared to be the policy ofthe state of Washington to assist in the creation and expansion ofinnovative small commercial enterprises that produce marketable goodsand services through the employment of Washington residents, the use oftechnology, and the application of best management practices. Thispolicy is to be implemented through the use of small businessincubators.NEW SECTION.Sec. The definitions in this section applythroughout this chapter unless the context clearly requires otherwise. (1) "Business incubator" means a facility that offers: (a) Space for startup and expanding firms; (b) The shared use of equipment and work areas; (c) Daily management support services essential to highqualitycommercial operations; and (d) Technical assistance. (2) "Qualified small business incubator" means an incubator thatis: (a)(i) Designated as a nonprofit organization under section501(c)(3) of the internal revenue code, or (ii) consists of apartnership between a designated nonprofit organization under section501(c)(3) of the internal revenue code and a government or quasigovernment agency; (b) Focused on developing small businesses in an economicallydistressed or disadvantaged area; and (c) Structured around a sound business plan. 1 NEW SECTION.Sec. (1) The small business incubator program iscreated in the department of community, trade, and economic developmentto provide startup and operating assistance to qualified smallbusiness incubators. (2) The department shall award grants to qualified small businessincubator organizations for: (a) Construction and equipment costs, up to a maximum of threemillion dollars per recipient; and (b) Provision of technical assistance to small businesses, up to amaximum of one hundred twentyfive thousand dollars per year perrecipient. (3) The department shall: (a) Require grant recipients to have raised matching funds fromprivate, local, or federal sources in an amount at least equal to thegrant amount; (b) Develop, in conjunction with the Washington association ofsmall 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 thesupport of the small business incubator program, which shall bedeposited in the small business incubator account established insection 4 of this act; and (d) Integrate the promotion of small business incubators aseconomic development tools in its strategic plan.NEW SECTION.Sec. The small business incubator account iscreated in the custody of the state treasurer. All money received forthe incubator program under section 3 of this act must be deposited inthe account. Expenditures from the account may be used only for thesmall business incubator program. Only the director of the departmentof community, trade, and economic development or the director'sdesignee may authorize expenditures from the account. The account issubject to the allotment procedures under chapter 43.88 RCW, but anappropriation is not required for expenditures. 2 NEW SECTION.Sec. This act may be known as the Washingtonsmall business incubator and entrepreneurship assistance act of 2004.NEW SECTION.Sec. The department of community, trade, andeconomic development shall have no duty to provide services related tothe small business incubator and entrepreneurship assistance act of2004 unless and until the small business incubator program and relatedadministrative expenses are funded by the legislature.NEW SECTION.Sec. Sections 1 through 6 of this act constitutea new chapter in Title 43 RCW.ESHB 2784S COMM AMDBy Committee on Economic Development On page 1, line 1 of the title, after program; strike theremainder of the title and insert and adding a new chapter to Title 43RCW.Restructures and clarifies the bill.--- END --- 3