Passed by the House March 5, 2012 Yeas 60   ________________________________________ Speaker of the House of Representatives Passed by the Senate February 29, 2012 Yeas 48   ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2482 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/16/12. Referred to Committee on Community & Economic Development & Housing.
AN ACT Relating to designating innovation partnership zones; and amending RCW 43.330.270, 43.160.010, 43.160.020, and 82.14.370.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.330.270 and 2009 c 72 s 1 are each amended to read
as follows:
(1) The department ((shall)) must design and implement an
innovation partnership zone program through which the state will
encourage and support research institutions, workforce training
organizations, and globally competitive companies to work cooperatively
in close geographic proximity to create commercially viable products
and jobs.
(2) The director ((shall)) must designate innovation partnership
zones on the basis of the following criteria:
(a) Innovation partnership zones must have three types of
institutions operating within their boundaries, or show evidence of
planning and local partnerships that will lead to dense concentrations
of these institutions:
(i) Research capacity in the form of a university or community
college fostering commercially valuable research, nonprofit
institutions creating commercially applicable innovations, or a
national laboratory;
(ii) An industry cluster as defined in RCW 43.330.090. The cluster
must include a dense proximity of globally competitive firms in a
research-based industry or industries or ((of)) individual firms with
innovation strategies linked to (a)(i) of this subsection. A globally
competitive firm may be signified through international organization
for standardization 9000 or 1400 certification, or ((other recognized))
evidence of sales in international ((success)) markets; and
(iii) Training capacity either within the zone or readily
accessible to the zone. The training capacity requirement may be met
by the same institution as the research capacity requirement, to the
extent both are associated with an educational institution in the
proposed zone.
(b) The support of a local jurisdiction, a research institution, an
educational institution, an industry or cluster association, a
workforce development council, and an associate development
organization, port, or chamber of commerce;
(c) Identifiable boundaries for the zone within which the applicant
will concentrate efforts to connect innovative researchers,
entrepreneurs, investors, industry associations or clusters, and
training providers. The geographic area defined should lend itself to
a distinct identity and have the capacity to accommodate firm growth;
(d) The innovation partnership zone administrator must be an
economic development council, port, workforce development council,
city, or county.
(3) With respect solely to the research capacity required in
subsection (2)(a)(i) of this section, the director may waive the
requirement that the research institution be located within the zone.
To be considered for such a waiver, an applicant must provide a
specific plan that demonstrates the research institution's unique
qualifications and suitability for the zone, and the types of jointly
executed activities that will be used to ensure ongoing, face-to-face
interaction and research collaboration among the zone's partners.
(4) On October 1st of each odd-numbered year, the director
((shall)) must designate innovation partnership zones on the basis of
applications that meet the legislative criteria, estimated economic
impact of the zone, evidence of forward planning for the zone, and
other criteria as ((recommended by)) developed by the department in
consultation with the Washington state economic development commission.
Estimated economic impact must include evidence of anticipated private
investment, job creation, innovation, and commercialization. The
director ((shall)) must require evidence that zone applicants will
promote commercialization, innovation, and collaboration among zone
residents.
(5) Innovation partnership zones are eligible for funds and other
resources as provided by the legislature or at the discretion of the
governor.
(6) If the innovation partnership zone meets the other requirements
of the fund sources, then the zone is eligible for the following funds
relating to:
(a) The local infrastructure financing tools program;
(b) The sales and use tax for public facilities in rural counties;
((and))
(c) Job skills;
(d) Local improvement districts; and
(e) Community economic revitalization board projects under chapter
43.160 RCW.
(7) An innovation partnership zone ((shall)) must be designated as
a zone for a four-year period. At the end of the four-year period, the
zone must reapply for the designation through the department.
(8) If the director finds that an applicant does not meet all of
the statutory criteria or additional criteria recommended by the
department in consultation with the Washington state economic
development commission to be designated as an innovation partnership
zone, the department must:
(a) Identify the deficiencies in the proposal and recommended steps
for the applicant to take to strengthen the proposal;
(b) Provide the applicant with the opportunity to appeal the
decision to the director; and
(c) Allow the applicant to reapply for innovation partnership
designation on October 1st of the following calendar year or during any
subsequent application cycle.
(9) If the director finds at any time after the initial year of
designation that an innovation partnership zone is failing to meet the
performance standards required in its contract with the department, the
director may withdraw such designation and cease state funding of the
zone.
(((9))) (10) The department ((shall)) must convene annual
information sharing events for innovation partnership zone
administrators and other interested parties.
(((10))) (11) An innovation partnership zone ((shall)) must
annually provide performance measures as required by the director,
including but not limited to private investment measures, job creation
measures, and measures of innovation such as licensing of ideas in
research institutions, patents, or other recognized measures of
innovation.
(((11))) (12) The department ((shall)) must compile a biennial
report on the innovation partnership zone program by December 1st of
every even-numbered year. The report ((shall)) must provide
information for each zone on its: Objectives; funding, tax incentives,
and other support obtained from public sector sources; major
activities; partnerships; performance measures; and outcomes achieved
since the inception of the zone or since the previous biennial report.
The Washington state economic development commission ((shall)) must
review the department's draft report and make recommendations on ways
to increase the effectiveness of individual zones and the program
overall. The department ((shall)) must submit the report, including
the commission's recommendations, to the governor and legislature
beginning December 1, 2010.
Sec. 2 RCW 43.160.010 and 2008 c 327 s 1 are each amended to read
as follows:
(1) The legislature finds that it is the public policy of the state
of Washington to direct financial resources toward the fostering of
economic development through the stimulation of investment and job
opportunities and the retention of sustainable existing employment for
the general welfare of the inhabitants of the state. Reducing
unemployment and reducing the time citizens remain jobless is important
for the economic welfare of the state. A valuable means of fostering
economic development is the construction of public facilities which
contribute to the stability and growth of the state's economic base.
Expenditures made for these purposes as authorized in this chapter are
declared to be in the public interest, and constitute a proper use of
public funds. A community economic revitalization board is needed
which shall aid the development of economic opportunities. The general
objectives of the board should include:
(a) Strengthening the economies of areas of the state which have
experienced or are expected to experience chronically high unemployment
rates or below average growth in their economies;
(b) Encouraging the diversification of the economies of the state
and regions within the state in order to provide greater seasonal and
cyclical stability of income and employment;
(c) Encouraging wider access to financial resources for both large
and small industrial development projects;
(d) Encouraging new economic development or expansions to maximize
employment;
(e) Encouraging the retention of viable existing firms and
employment; ((and))
(f) Providing incentives for expansion of employment opportunities
for groups of state residents that have been less successful relative
to other groups in efforts to gain permanent employment; and
(g) Enhancing job and business growth through facility development
and other improvements in innovation partnership zones designated under
RCW 43.330.270.
(2) The legislature also finds that the state's economic
development efforts can be enhanced by, in certain instances, providing
funds to improve state highways, county roads, or city streets for
industries considering locating or expanding in this state.
(3) The legislature finds it desirable to provide a process whereby
the need for diverse public works improvements necessitated by planned
economic development can be addressed in a timely fashion and with
coordination among all responsible governmental entities.
(4) The legislature also finds that the state's economic
development efforts can be enhanced by, in certain instances, providing
funds to assist development of telecommunications infrastructure that
supports business development, retention, and expansion in the state.
(5) The legislature also finds that the state's economic
development efforts can be enhanced by providing funds to improve
markets for those recyclable materials representing a large fraction of
the waste stream. The legislature finds that public facilities which
result in private construction of processing or remanufacturing
facilities for recyclable materials are eligible for consideration from
the board.
(6) The legislature finds that sharing economic growth statewide is
important to the welfare of the state. The ability of communities to
pursue business and job retention, expansion, and development
opportunities depends on their capacity to ready necessary economic
development project plans, sites, permits, and infrastructure for
private investments. Project-specific planning, predevelopment, and
infrastructure are critical ingredients for economic development. It
is, therefore, the intent of the legislature to increase the amount of
funding available through the community economic revitalization board
and to authorize flexibility for available resources in these areas to
help fund planning, predevelopment, and construction costs of
infrastructure and facilities and sites that foster economic vitality
and diversification.
Sec. 3 RCW 43.160.020 and 2009 c 565 s 35 are each amended to
read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Board" means the community economic revitalization board.
(2) "Department" means the department of commerce.
(3) "Local government" or "political subdivision" means any port
district, county, city, town, special purpose district, and any other
municipal corporations or quasi-municipal corporations in the state
providing for public facilities under this chapter.
(4) "Public facilities" means a project of a local government or a
federally recognized Indian tribe for the planning, acquisition,
construction, repair, reconstruction, replacement, rehabilitation, or
improvement of: Bridges((,)); roads((,)); research, testing, training,
and incubation facilities in areas designated as innovation partnership
zones under RCW 43.330.270; buildings or structures; domestic and
industrial water, earth stabilization, sanitary sewer, storm sewer,
railroad, electricity, telecommunications, transportation, natural gas,
((buildings or structures,)) and port facilities((,)); all for the
purpose of job creation, job retention, or job expansion.
(5) "Rural county" means a county with a population density of
fewer than one hundred persons per square mile or a county smaller than
two hundred twenty-five square miles, as determined by the office of
financial management and published each year by the department for the
period July 1st to June 30th.
Sec. 4 RCW 82.14.370 and 2009 c 511 s 1 are each amended to read
as follows:
(1) The legislative authority of a rural county may impose a sales
and use tax in accordance with the terms of this chapter. The tax is
in addition to other taxes authorized by law and ((shall)) must be
collected from those persons who are taxable by the state under
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event
within the county. The rate of tax ((shall)) may not exceed 0.09
percent of the selling price in the case of a sales tax or value of the
article used in the case of a use tax, except that for rural counties
with population densities between sixty and one hundred persons per
square mile, the rate shall not exceed 0.04 percent before January 1,
2000.
(2) The tax imposed under subsection (1) of this section ((shall))
must be deducted from the amount of tax otherwise required to be
collected or paid over to the department of revenue under chapter 82.08
or 82.12 RCW. The department of revenue ((shall)) must perform the
collection of such taxes on behalf of the county at no cost to the
county.
(3)(a) Moneys collected under this section ((shall)) may only be
used to finance public facilities serving economic development purposes
in rural counties and finance personnel in economic development
offices. The public facility must be listed as an item in the
officially adopted county overall economic development plan, or the
economic development section of the county's comprehensive plan, or the
comprehensive plan of a city or town located within the county for
those counties planning under RCW 36.70A.040. For those counties that
do not have an adopted overall economic development plan and do not
plan under the growth management act, the public facility must be
listed in the county's capital facilities plan or the capital
facilities plan of a city or town located within the county.
(b) In implementing this section, the county ((shall)) must consult
with cities, towns, and port districts located within the county and
the associate development organization serving the county to ensure
that the expenditure meets the goals of chapter 130, Laws of 2004 and
the requirements of (a) of this subsection. Each county collecting
money under this section ((shall)) must report, as follows, to the
office of the state auditor, within one hundred fifty days after the
close of each fiscal year: (i) A list of new projects begun during the
fiscal year, showing that the county has used the funds for those
projects consistent with the goals of chapter 130, Laws of 2004 and the
requirements of (a) of this subsection; and (ii) expenditures during
the fiscal year on projects begun in a previous year. Any projects
financed prior to June 10, 2004, from the proceeds of obligations to
which the tax imposed under subsection (1) of this section has been
pledged ((shall)) may not be deemed to be new projects under this
subsection. No new projects funded with money collected under this
section may be for justice system facilities.
(c) The definitions in this section apply throughout this section.
(i) "Public facilities" means bridges, roads, domestic and
industrial water facilities, sanitary sewer facilities, earth
stabilization, storm sewer facilities, railroads, ((electricity))
electrical facilities, natural gas facilities, research, testing,
training, and incubation facilities in innovation partnership zones
designated under RCW 43.330.270, buildings, structures,
telecommunications infrastructure, transportation infrastructure, or
commercial infrastructure, and port facilities in the state of
Washington.
(ii) "Economic development purposes" means those purposes which
facilitate the creation or retention of businesses and jobs in a
county.
(iii) "Economic development office" means an office of a county,
port districts, or an associate development organization as defined in
RCW 43.330.010, which promotes economic development purposes within the
county.
(4) No tax may be collected under this section before July 1, 1998.
(a) Except as provided in (b) of this subsection, no tax may be
collected under this section by a county more than twenty-five years
after the date that a tax is first imposed under this section.
(b) For counties imposing the tax at the rate of 0.09 percent
before August 1, 2009, the tax expires on the date that is twenty-five
years after the date that the 0.09 percent tax rate was first imposed
by that county.
(5) For purposes of this section, "rural county" means a county
with a population density of less than one hundred persons per square
mile or a county smaller than two hundred twenty-five square miles as
determined by the office of financial management and published each
year by the department for the period July 1st to June 30th.