BILL REQ. #:  S-4730.1 

Read first time 01/28/08.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to revisions to existing state economic development programs; amending RCW 43.160.060; repealing RCW 43.160.230, 43.160.240, and 44.28.801; repealing 2005 c 425 s 4; and providing an effective date.

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

Sec. 1   RCW 43.160.060 and 2007 c 231 s 3 are each amended to read as follows:
     The board is authorized to make direct loans to political subdivisions of the state and to federally recognized Indian tribes for the purposes of assisting the political subdivisions and federally recognized Indian tribes 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 or the federally recognized Indian tribe 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 and federally recognized Indian tribes.
     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.
     (d) For a project the primary purpose of which is to facilitate or promote gambling.
     (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.
     (d) For projects that are consistent with goals and objectives adopted under RCW 43.162.020 by the Washington state economic development commission, when they are adopted.
     (e) For projects that are consistent with the Washington state workforce training and education coordinating board strategic plan for workforce development.
     (3) The board shall prioritize each proposed project according to:
     (a) Statewide priorities identified by the Washington state economic development commission under RCW 43.162.020, and countywide priorities identified in plans that are consistent with the elements required by the Washington state economic development commission;
     (b) 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;
     (((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;)) and
     (c) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007.
     (4) A responsible official of the political subdivision or the federally recognized Indian tribe shall be present during board deliberations and provide information that the board requests.
     Before any financial assistance application is approved, the political subdivision or the federally recognized Indian tribe 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.

NEW SECTION.  Sec. 2   The following acts or parts of acts are each repealed:
     (1) RCW 43.160.230 (Job development fund program) and 2007 c 231 s 4 & 2005 c 425 s 2;
     (2) RCW 43.160.240 (Job development fund program--Maximum grants) and 2005 c 425 s 3;
     (3) RCW 44.28.801 (State public infrastructure programs and funds--Inventory -- Report) and 2006 c 371 s 229 & 2005 c 425 s 5; and
     (4) 2005 c 425 s 4.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2009.