READ FIRST TIME 01/28/10.   

     AN ACT Relating to transferring the Washington main street program to the department of archaeology and historic preservation; amending RCW 35.100.020, 43.360.010, and 82.73.050; reenacting and amending RCW 82.73.010; creating new sections; and providing an effective date.

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

NEW SECTION.  Sec. 1   Many of Washington's communities use the main street program to address issues facing their older traditional commercial districts. The main street program is a preservation-based economic development program that assists communities in implementing a locally driven downtown revitalization effort. However, the main street program is broader than merely preserving a community's downtown, it is the revitalization of that community's downtown. Downtown revitalization creates jobs and puts people to work. Downtown revitalization attracts new businesses and offers local investment opportunities. New and expanding downtown businesses generate increased sales tax and attract export dollars to the community. Therefore, the legislature finds that the movement of the main street program from the department of commerce to the department of archaeology and historic preservation is designed to provide for both the preservation of a community's downtown and economic development for that community.

Sec. 2   RCW 35.100.020 and 2002 c 79 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Local retail sales and use tax" means the tax levied by a city or town under RCW 82.14.030, excluding that portion which a county is entitled to receive under RCW 82.14.030.
     (2) "Local retail sales and use tax increment revenue" means that portion of the local retail sales and use tax collected in each year upon any retail sale or any use of an article of tangible personal property within a downtown or neighborhood commercial district that is in excess of the amount of local retail sales and use tax collected on sales or uses within the downtown or neighborhood commercial district in the year preceding.
     (3) "Downtown or neighborhood commercial district" means (a) an area or areas designated by the legislative authority of a city or town with a population over one hundred thousand and that are typically limited to the pedestrian core area or the central commercial district and compact business districts that serve specific neighborhoods within the city or town; or (b) commercial areas designated as main street areas by the ((office of trade and economic development)) department of archaeology and historic preservation.
     (4) "Community revitalization project" means:
     (a) Health and safety improvements authorized to be publicly financed under chapter 35.80 or 35.81 RCW;
     (b) Publicly owned or leased facilities within the jurisdiction of a local government which the sponsor has authority to provide; and
     (c) Expenditure for any of the following purposes:
     (i) Providing environmental analysis, professional management, planning, and promotion within a downtown or neighborhood commercial district including the management and promotion of retail trade activities in the district;
     (ii) Providing maintenance and security for common or public areas in the downtown or neighborhood commercial district;
     (iii) Historic preservation activities authorized under RCW 35.21.395; or
     (iv) Project design and planning, land acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, operation, and installation of a public facility; the costs of financing, including interest during construction, legal and other professional services, taxes, and insurance; the costs of complying with this chapter and other applicable law; and the administrative costs reasonably necessary and related to these costs.

Sec. 3   RCW 43.360.010 and 2009 c 565 s 44 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Area" means a geographic area within a local government that is described by a closed perimeter boundary.
     (2) "Department" means the department of ((commerce)) archaeology and historic preservation.
     (3) "Director" means the director of the department ((of commerce)).
     (4) "Local government" means a city, code city, or town.
     (5) "Qualified levels of participation" means a local downtown or neighborhood commercial district revitalization program that has been designated by the department.

Sec. 4   RCW 82.73.010 and 2009 c 565 s 55 are each reenacted and amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Applicant" means a person applying for a tax credit under this chapter.
     (2) "Contribution" means cash contributions.
     (3) "Department" means the department of revenue.
     (4) "Main street trust fund" means the ((department of commerce's)) Washington main street trust fund account under RCW 43.360.050.
     (5) "Person" has the meaning given in RCW 82.04.030.
     (6) "Program" means a nonprofit organization under internal revenue code sections 501(c)(3) or 501(c)(6), with the sole mission of revitalizing a downtown or neighborhood commercial district area, that is designated by the department of ((commerce)) archaeology and historic preservation as described in RCW 43.360.010 through 43.360.050.

Sec. 5   RCW 82.73.050 and 2005 c 514 s 906 are each amended to read as follows:
     The department of ((community, trade, and economic development)) archaeology and historic preservation shall provide information to the department to administer this chapter, including a list of designated programs that shall be updated as necessary.

NEW SECTION.  Sec. 6   (1) All powers, duties, and functions of the department of commerce pertaining to the Washington main street program are transferred to the department of archaeology and historic preservation.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of commerce pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of archaeology and historic preservation. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of commerce in carrying out the powers, functions, and duties transferred shall be made available to the department of archaeology and historic preservation. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of archaeology and historic preservation.
     (b) Any appropriations made to the department of commerce for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of archaeology and historic preservation.
     (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the department of commerce engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of archaeology and historic preservation. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of archaeology and historic preservation to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the department of commerce pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of archaeology and historic preservation. All existing contracts and obligations shall remain in full force and shall be performed by the department of archaeology and historic preservation.
     (5) The transfer of the powers, duties, functions, and personnel of the department of commerce shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the department of commerce assigned to the department of archaeology and historic preservation under this section whose positions are within an existing bargaining unit description at the department of archaeology and historic preservation shall become a part of the existing bargaining unit at the department of archaeology and historic preservation and shall be considered an appropriate inclusion or modification of the existing bargaining unit, if any, under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 7   This act takes effect July 1, 2010.