"NEW SECTION.  Sec. 1   A new section is added to chapter 43.330 RCW to read as follows:
     (1) The economic development strategic reserve account is created in the state treasury to be used only for the purposes of this section.
     (2) The governor, with the approval of the public works board and the Washington economic development finance authority, may authorize expenditures from the account, subject to appropriation by the legislature. If the public works board or the Washington economic development finance authority disapproves an expenditure, the governor may not fund a project using funds from the economic development strategic reserve account.
     (3) Funding for a minimum of one full-time equivalent staff position for the economic development commission and to cover any other operational costs of the commission may be provided only through an operating appropriation to the account.
     (4) Expenditures from the account may be made to prevent closure of a business or facility, to prevent relocation of a business or facility in the state to a location outside the state, or to recruit a business or facility to the state. Contingent on the funding of the account, expenditures may be authorized for:
     (a) Work force development;
     (b) Public infrastructure needed to support or sustain the operations of the business or facility; and
     (c) Other lawfully provided assistance, including, but not limited to, technical assistance, environmental analysis, relocation assistance, and planning assistance. Funding may be provided for such assistance only when it is in the public interest and may be provided under a contractual arrangement ensuring that the state will receive appropriate consideration, such as an assurance of job creation or retention.
     (5) The funds shall not be expended from the account unless:
     (a) The circumstances are such that time does not permit the director of the department of community, trade, and economic development or the business or facility to secure funding from other state sources;
     (b) The business or facility produces or will produce significant long-term economic benefits to the state, a region of the state, or a particular community in the state;
     (c) The business or facility does not require continuing state support;
     (d) The expenditure will result in new jobs, job retention, or higher incomes for citizens of the state;
     (e) The expenditure will not supplant private investment; and
     (f) The expenditure is accompanied by private investment.
     (6) No more than three million dollars per year may be expended from the account for the purpose of assisting an individual business or facility pursuant to the authority specified in this section.

Sec. 2   RCW 43.155.050 and 2001 c 131 s 2 are each amended to read as follows:
     The public works assistance account is hereby established in the state treasury. Money may be placed in the public works assistance account from the proceeds of bonds when authorized by the legislature or from any other lawful source. Money in the public works assistance account shall be used to make loans and to give financial guarantees to local governments for public works projects. Moneys in the account may also be appropriated to provide for state match requirements under federal law for projects and activities conducted and financed by the board under the drinking water assistance account. Not more than fifteen percent of the biennial capital budget appropriation to the public works board from this account may be expended or obligated for preconstruction loans, emergency loans, or loans for capital facility planning under this chapter; of this amount, not more than ten percent of the biennial capital budget appropriation may be expended for emergency loans and not more than one percent of the biennial capital budget appropriation may be expended for capital facility planning loans. In addition to other appropriations, beginning July 1, 2007, and continuing until June 30, 2011, ten million dollars from the public works assistance account will be appropriated each biennium to the economic development strategic reserve account to be used for public infrastructure expenditures only.

NEW SECTION.  Sec. 3   If this act and Engrossed Substitute House Bill No. 1903 both pass the legislature, no more than $50 million in total per biennium may be appropriated from the public works assistance account for the purposes of both this act and Engrossed Substitute House Bill No. 1903."