BILL REQ. #: H-2095.5
| State of Washington | 63rd Legislature | 2013 Regular Session |
Read first time 04/12/13. Referred to Committee on Appropriations.
AN ACT Relating to eliminating the economic development-related agencies, boards, and commissions; amending RCW 28B.30.530, 28B.155.010, 28C.18.060, 39.102.040, 43.160.060, 43.160.900, 43.330.050, 43.330.080, 43.330.082, 43.330.090, 43.330.250, 43.330.270, 43.330.280, 43.330.375, 50.38.050, 82.14.505, 82.33A.010, 43.131.418, 28B.50.902, 42.30.110, 42.56.270, 43.333.030, 43.333.040, 43.333.050, 43.333.800, 70.210.020, 70.210.030, 70.210.040, 70.210.050, 70.210.060, 43.374.010, and 43.374.020; reenacting and amending RCW 28C.18.080, 43.84.092, 43.84.092, and 43.330.310; amending 2012 c 63 s 1 (uncodified); adding a new section to chapter 43.333 RCW; repealing RCW 43.162.005, 43.162.010, 43.162.012, 43.162.015, 43.162.020, 43.162.025, 43.162.030, 43.162.040, 82.33A.020, 41.06.0711, 43.333.010, 43.333.020, 43.336.010, 43.336.020, 43.336.030, 43.336.040, 43.336.050, 43.336.060, and 43.336.900; providing a contingent effective date; providing an expiration date; and providing a contingent expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 101 RCW 28B.30.530 and 2012 c 229 s 808 are each amended to
read as follows:
(1) The board of regents of Washington State University shall
establish the Washington State University small business development
center.
(2) The center shall provide management and technical assistance
including but not limited to training, counseling, and research
services to small businesses throughout the state. The center shall
work with the department of commerce, the state board for community and
technical colleges, the workforce training and education coordinating
board, the employment security department, ((the Washington state
economic development commission,)) associate development organizations,
and workforce development councils to:
(a) Integrate small business development centers with other state
and local economic development and workforce development programs;
(b) Target the centers' services to small businesses;
(c) Tailor outreach and services at each center to the needs and
demographics of entrepreneurs and small businesses located within the
service area;
(d) Establish and expand small business development center
satellite offices when financially feasible; and
(e) Coordinate delivery of services to avoid duplication.
(3) The administrator of the center may contract with other public
or private entities for the provision of specialized services.
(4) The small business development center may accept and disburse
federal grants or federal matching funds or other funds or donations
from any source when made, granted, or donated to carry out the
center's purposes. When drawing on funds from the business assistance
account created in RCW 28B.30.531, the center must first use the funds
to make increased management and technical assistance available to
existing small businesses and start-up businesses at satellite offices.
The funds may also be used to develop and expand assistance programs
such as small business planning workshops and small business
counseling.
(5) By December 1, 2010, the center shall provide a written
progress report and a final report to the appropriate committees of the
legislature with respect to the requirements in subsection (2) of this
section and the amount and use of funding received through the business
assistance account. The reports must also include data on the number,
location, staffing, and budget levels of satellite offices;
affiliations with community colleges, associate development
organizations or other local organizations; the number, size, and type
of small businesses assisted; and the types of services provided. The
reports must also include information on the outcomes achieved, such as
jobs created or retained, private capital invested, and return on the
investment of state and federal dollars.
(6)(a) Subject to the availability of amounts appropriated for this
specific purpose, by December 1, 2010, the center, in conjunction with
the department of commerce, must prepare and present to the governor
and appropriate legislative committees a specific, actionable plan to
increase access to capital and technical assistance to small businesses
and entrepreneurs beginning with the 2011-2013 biennium. In developing
the plan, the center and the department may consult with the Washington
state microenterprise association, and with other government,
nonprofit, and private organizations as necessary. The plan must
identify:
(i) Existing sources of capital and technical assistance for small
businesses and entrepreneurs;
(ii) Critical gaps and barriers to availability of capital and
delivery of technical assistance to small businesses and entrepreneurs;
(iii) Workable solutions to filling the gaps and removing barriers
identified in (a)(ii) of this subsection; and
(iv) The financial resources and statutory changes necessary to put
the plan into effect beginning with the 2011-2013 biennium.
(b) With respect to increasing access to capital, the plan must
identify specific, feasible sources of capital and practical mechanisms
for expanding access to it.
(c) The center and the department must include, within the analysis
and recommendations in (a) of this subsection, any specific gaps,
barriers, and solutions related to rural and low-income communities and
small manufacturers interested in exporting.
Sec. 102 RCW 28B.155.010 and 2012 c 242 s 1 are each amended to
read as follows:
(1) The joint center for aerospace technology innovation is created
to:
(a) Pursue joint industry-university research in computing,
manufacturing efficiency, materials/structures innovation, and other
new technologies that can be used in aerospace firms;
(b) Enhance the education of students in the engineering
departments of the University of Washington, Washington State
University, and other participating institutions through industry-focused research; and
(c) Work directly with existing small, medium-sized, and large
aerospace firms and aerospace industry associations to identify
research needs and opportunities to transfer off-the-shelf technologies
that would benefit such firms.
(2) The center shall be operated and administered as a multi-institutional education and research center, conducting research and
development programs in various locations within Washington under the
joint authority of the University of Washington and Washington State
University. The initial administrative offices of the center shall be
west of the crest of the Cascade mountains. In order to meet aerospace
industry needs, the facilities and resources of the center must be made
available to all four-year institutions of higher education as defined
in RCW 28B.10.016. Resources include, but are not limited to,
internships, on-the-job training, and research opportunities for
undergraduate and graduate students and faculty.
(3) The powers of the center are vested in and shall be exercised
by a board of directors. The board shall consist of nine members
appointed by the governor. The governor shall appoint a nonvoting
chair. Of the eight voting members, one member shall represent small
aerospace firms, one member shall represent medium-sized firms, one
member shall represent large aerospace firms, one member shall
represent labor, two members shall represent aerospace industry
associations, and two members shall represent higher education. The
terms of the initial members shall be staggered.
(4) The board shall hire an executive director. The executive
director shall hire such staff as the board deems necessary to operate
the center. Staff support may be provided from among the cooperating
institutions through cooperative agreements to the extent funds are
available. The executive director may enter into cooperative
agreements for programs and research with public and private
organizations including state and nonstate agencies consistent with
policies of the participating institutions.
(5) The board must:
(a) Work with aerospace industry associations and aerospace firms
of all sizes to identify the research areas that will benefit the
intermediate and long-term economic vitality of the Washington
aerospace industry;
(b) Identify entrepreneurial researchers to join or lead research
teams in the research areas specified in (a) of this subsection and the
steps the University of Washington and Washington State University will
take to recruit such researchers;
(c) Assist firms to integrate existing technologies into their
operations and align the activities of the center with those of impact
Washington ((and innovate Washington)) to enhance services available to
aerospace firms;
(d) Develop internships, on-the-job training, research, and other
opportunities and ensure that all undergraduate and graduate students
enrolled in an aerospace engineering curriculum have direct experience
with aerospace firms;
(e) Assist researchers and firms in safeguarding intellectual
property while advancing industry innovation;
(f) Develop and strengthen university-industry relationships
through promotion of faculty collaboration with industry, and
sponsor((, in collaboration with innovate Washington,)) at least one
annual symposium focusing on aerospace research in the state of
Washington;
(g) Encourage a full range of projects from small research projects
that meet the specific needs of a smaller company to large scale,
multipartner projects;
(h) Develop nonstate support of the center's research activities
through leveraging dollars from federal and private for-profit and
nonprofit sources;
(i) Leverage its financial impact through joint support
arrangements on a project-by-project basis as appropriate;
(j) Establish mechanisms for soliciting and evaluating proposals
and for making awards and reporting on technological progress,
financial leverage, and other measures of impact;
(k) By June 30, 2013, develop an operating plan that includes the
specific processes, methods, or mechanisms the center will use to
accomplish each of its duties as set out in this subsection; and
(l) Report biennially to the legislature and the governor about the
impact of the center's work on the state's economy and the aerospace
sector, with projections of future impact, providing indicators of its
impact, and outlining ideas for enhancing benefits to the state. The
report must be coordinated with the governor's office, ((the Washington
economic development commission,)) and the department of commerce((,
and innovate Washington)).
Sec. 103 RCW 28C.18.060 and 2012 c 229 s 579 are each amended to
read as follows:
The board, in cooperation with the operating agencies of the state
training system and private career schools and colleges, shall:
(1) Concentrate its major efforts on planning, coordination
evaluation, policy analysis, and recommending improvements to the
state's training system;
(2) Advocate for the state training system and for meeting the
needs of employers and the workforce for workforce education and
training;
(3) Establish and maintain an inventory of the programs of the
state training system, and related state programs, and perform a
biennial assessment of the vocational education, training, and adult
basic education and literacy needs of the state; identify ongoing and
strategic education needs; and assess the extent to which employment,
training, vocational and basic education, rehabilitation services, and
public assistance services represent a consistent, integrated approach
to meet such needs;
(4) Develop and maintain a state comprehensive plan for workforce
training and education, including but not limited to, goals,
objectives, and priorities for the state training system, and review
the state training system for consistency with the state comprehensive
plan. In developing the state comprehensive plan for workforce
training and education, the board shall use, but shall not be limited
to: Economic, labor market, and populations trends reports in office
of financial management forecasts; joint office of financial management
and employment security department labor force, industry employment,
and occupational forecasts; the results of scientifically based
outcome, net-impact and cost-benefit evaluations; the needs of
employers as evidenced in formal employer surveys and other employer
input; and the needs of program participants and workers as evidenced
in formal surveys and other input from program participants and the
labor community;
(5) In consultation with the student achievement council, review
and make recommendations to the office of financial management and the
legislature on operating and capital facilities budget requests for
operating agencies of the state training system for purposes of
consistency with the state comprehensive plan for workforce training
and education;
(6) Provide for coordination among the different operating agencies
and components of the state training system at the state level and at
the regional level;
(7) Develop a consistent and reliable database on vocational
education enrollments, costs, program activities, and job placements
from publicly funded vocational education programs in this state;
(8)(a) Establish standards for data collection and maintenance for
the operating agencies of the state training system in a format that is
accessible to use by the board. The board shall require a minimum of
common core data to be collected by each operating agency of the state
training system;
(b) Develop requirements for minimum common core data in
consultation with the office of financial management and the operating
agencies of the training system;
(9) Establish minimum standards for program evaluation for the
operating agencies of the state training system, including, but not
limited to, the use of common survey instruments and procedures for
measuring perceptions of program participants and employers of program
participants, and monitor such program evaluation;
(10) Every two years administer scientifically based outcome
evaluations of the state training system, including, but not limited
to, surveys of program participants, surveys of employers of program
participants, and matches with employment security department payroll
and wage files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state training system;
(11) In cooperation with the employment security department,
provide for the improvement and maintenance of quality and utility in
occupational information and forecasts for use in training system
planning and evaluation. Improvements shall include, but not be
limited to, development of state-based occupational change factors
involving input by employers and employees, and delineation of skill
and training requirements by education level associated with current
and forecasted occupations;
(12) Provide for the development of common course description
formats, common reporting requirements, and common definitions for
operating agencies of the training system;
(13) Provide for effectiveness and efficiency reviews of the state
training system;
(14) In cooperation with the student achievement council,
facilitate transfer of credit policies and agreements between
institutions of the state training system, and encourage articulation
agreements for programs encompassing two years of secondary workforce
education and two years of postsecondary workforce education;
(15) In cooperation with the student achievement council,
facilitate transfer of credit policies and agreements between private
training institutions and institutions of the state training system;
(16) Develop policy objectives for the workforce investment act,
P.L. 105-220, or its successor; develop coordination criteria for
activities under the act with related programs and services provided by
state and local education and training agencies; and ensure that
entrepreneurial training opportunities are available through programs
of each local workforce investment board in the state;
(17) Make recommendations to the commission of student assessment,
the state board of education, and the superintendent of public
instruction, concerning basic skill competencies and essential core
competencies for K-12 education. Basic skills for this purpose shall
be reading, writing, computation, speaking, and critical thinking,
essential core competencies for this purpose shall be English, math,
science/technology, history, geography, and critical thinking. The
board shall monitor the development of and provide advice concerning
secondary curriculum which integrates vocational and academic
education;
(18) Establish and administer programs for marketing and outreach
to businesses and potential program participants;
(19) Facilitate the location of support services, including but not
limited to, child care, financial aid, career counseling, and job
placement services, for students and trainees at institutions in the
state training system, and advocate for support services for trainees
and students in the state training system;
(20) Facilitate private sector assistance for the state training
system, including but not limited to: Financial assistance, rotation
of private and public personnel, and vocational counseling;
(21) Facilitate the development of programs for school-to-work
transition that combine classroom education and on-the-job training,
including entrepreneurial education and training, in industries and
occupations without a significant number of apprenticeship programs;
(22) Include in the planning requirements for local workforce
investment boards a requirement that the local workforce investment
boards specify how entrepreneurial training is to be offered through
the one-stop system required under the workforce investment act, P.L.
105-220, or its successor;
(23) Encourage and assess progress for the equitable representation
of racial and ethnic minorities, women, and people with disabilities
among the students, teachers, and administrators of the state training
system. Equitable, for this purpose, shall mean substantially
proportional to their percentage of the state population in the
geographic area served. This function of the board shall in no way
lessen more stringent state or federal requirements for representation
of racial and ethnic minorities, women, and people with disabilities;
(24) Participate in the planning and policy development of governor
set-aside grants under P.L. 97-300, as amended;
(25) Administer veterans' programs, licensure of private vocational
schools, the job skills program, and the Washington award for
vocational excellence;
(26) Allocate funding from the state job training trust fund;
(27) Work with the director of commerce ((and the economic
development commission)) to ensure coordination among workforce
training priorities((, the long-term economic development strategy of
the economic development commission,)) and economic development and
entrepreneurial development efforts, including but not limited to
assistance to industry clusters;
(28) Conduct research into workforce development programs designed
to reduce the high unemployment rate among young people between
approximately eighteen and twenty-four years of age. In consultation
with the operating agencies, the board shall advise the governor and
legislature on policies and programs to alleviate the high unemployment
rate among young people. The research shall include disaggregated
demographic information and, to the extent possible, income data for
adult youth. The research shall also include a comparison of the
effectiveness of programs examined as a part of the research conducted
in this subsection in relation to the public investment made in these
programs in reducing unemployment of young adults. The board shall
report to the appropriate committees of the legislature by November 15,
2008, and every two years thereafter. Where possible, the data
reported to the legislative committees should be reported in numbers
and in percentages;
(29) Adopt rules as necessary to implement this chapter.
The board may delegate to the director any of the functions of this
section.
Sec. 104 RCW 28C.18.080 and 2009 c 421 s 6, 2009 c 151 s 7, and
2009 c 92 s 1 are each reenacted and amended to read as follows:
(1) The board shall develop a state comprehensive plan for
workforce training and education for a ten-year time period. The board
shall submit the ten-year state comprehensive plan to the governor and
the appropriate legislative policy committees. Every four years by
December 1st, beginning December 1, 2012, the board shall submit an
update of the ten-year state comprehensive plan for workforce training
and education to the governor and the appropriate legislative policy
committees. Following public hearings, the legislature shall, by
concurrent resolution, approve or recommend changes to the initial plan
and the updates. The plan shall then become the state's workforce
training policy unless legislation is enacted to alter the policies set
forth in the plan.
(2) The comprehensive plan shall include workforce training role
and mission statements for the workforce development programs of
operating agencies represented on the board and sufficient specificity
regarding expected actions by the operating agencies to allow them to
carry out actions consistent with the comprehensive plan.
(3) Operating agencies represented on the board shall have
operating plans for their workforce development efforts that are
consistent with the comprehensive plan and that provide detail on
implementation steps they will take to carry out their responsibilities
under the plan. Each operating agency represented on the board shall
provide an annual progress report to the board.
(4) The comprehensive plan shall include recommendations to the
legislature and the governor on the modification, consolidation,
initiation, or elimination of workforce training and education programs
in the state.
(5) The comprehensive plan shall identify the strategic industry
clusters targeted by the workforce development system. ((In
identifying the strategic clusters, the board shall consult with the
economic development commission to identify clusters that meet the
criteria identified by the working group convened by the economic
development commission and the workforce training and education
coordinating board under RCW 43.330.280.))
(6) The board shall report to the appropriate legislative policy
committees by December 1st of each year on its progress in implementing
the comprehensive plan and on the progress of the operating agencies in
meeting their obligations under the plan.
Sec. 105 RCW 39.102.040 and 2007 c 229 s 2 are each amended to
read as follows:
(1) Prior to applying to the board to use local infrastructure
financing, a sponsoring local government shall:
(a) Designate a revenue development area within the limitations in
RCW 39.102.060;
(b) Certify that the conditions in RCW 39.102.070 are met;
(c) Complete the process in RCW 39.102.080;
(d) Provide public notice as required in RCW 39.102.100; and
(e) Pass an ordinance adopting the revenue development area as
required in RCW 39.102.090.
(2) Any local government that has created an increment area under
chapter 39.89 RCW and has not issued bonds to finance any public
improvement may apply to the board and have its increment area
considered for approval as a revenue development area under this
chapter without adopting a new revenue development area under RCW
39.102.090 and 39.102.100 if it amends its ordinance to comply with RCW
39.102.090(1) and otherwise meets the conditions and limitations under
this chapter.
(3) As a condition to imposing a sales and use tax under RCW
82.14.475, a sponsoring local government, including any cosponsoring
local government seeking authority to impose a sales and use tax under
RCW 82.14.475, must apply to the board and be approved for a project
award amount. The application shall be in a form and manner prescribed
by the board and include but not be limited to information establishing
that the applicant is an eligible candidate to impose the local sales
and use tax under RCW 82.14.475, the anticipated effective date for
imposing the tax, the estimated number of years that the tax will be
imposed, and the estimated amount of tax revenue to be received in each
fiscal year that the tax will be imposed. The board shall make
available forms to be used for this purpose. As part of the
application, each applicant must provide to the board a copy of the
ordinance or ordinances creating the revenue development area as
required in RCW 39.102.090. A notice of approval to use local
infrastructure financing shall contain a project award that represents
the maximum amount of state contribution that the applicant, including
any cosponsoring local governments, can earn each year that local
infrastructure financing is used. The total of all project awards
shall not exceed the annual state contribution limit. The
determination of a project award shall be made based on information
contained in the application and the remaining amount of annual state
contribution limit to be awarded. Determination of a project award by
the board is final.
(4)(a) Sponsoring local governments, and any cosponsoring local
governments, applying in calendar year 2007 for a competitive project
award, must submit completed applications to the board no later than
July 1, 2007. By September 15, 2007, in consultation with the
department of revenue and the department of ((community, trade, and
economic development)) commerce, the board shall approve competitive
project awards from competitive applications submitted by the 2007
deadline. No more than two million five hundred thousand dollars in
competitive project awards shall be approved in 2007. For projects not
approved by the board in 2007, sponsoring and cosponsoring local
governments may apply again to the board in 2008 for approval of a
project.
(b) Sponsoring local governments, and any cosponsoring local
governments, applying in calendar year 2008 for a competitive project
award, must submit completed applications to the board no later than
July 1, 2008. By September 18, 2008, in consultation with the
department of revenue and the department of ((community, trade, and
economic development)) commerce, the board shall approve competitive
project awards from competitive applications submitted by the 2008
deadline.
(c) Except as provided in RCW 39.102.050(2), a total of no more
than five million dollars in competitive project awards shall be
approved for local infrastructure financing.
(d) The project selection criteria and weighting developed prior to
July 22, 2007, for the application evaluation and approval process
shall apply to applications received prior to November 1, 2007. In
evaluating applications for a competitive project award after November
1, 2007, the board shall((, in consultation with the Washington state
economic development commission,)) develop the relative weight to be
assigned to the following criteria:
(i) The project's potential to enhance the sponsoring local
government's regional and/or international competitiveness;
(ii) The project's ability to encourage mixed use and transit-oriented development and the redevelopment of a geographic area;
(iii) Achieving an overall distribution of projects statewide that
reflect geographic diversity;
(iv) The estimated wages and benefits for the project is greater
than the average labor market area;
(v) The estimated state and local net employment change over the
life of the project;
(vi) The current economic health and vitality of the proposed
revenue development area and the contiguous community and the estimated
impact of the proposed project on the proposed revenue development area
and contiguous community;
(vii) The estimated state and local net property tax change over
the life of the project;
(viii) The estimated state and local sales and use tax increase
over the life of the project;
(ix) An analysis that shows that, over the life of the project,
neither the local excise tax allocation revenues nor the local property
tax allocation revenues will constitute more than eighty percent of the
total local funds as described in RCW 39.102.020(((29)(c))) (28)(b);
and
(x) If a project is located within an urban growth area, evidence
that the project utilizes existing urban infrastructure and that the
transportation needs of the project will be adequately met through the
use of local infrastructure financing or other sources.
(e)(i) Except as provided in this subsection (4)(e), the board may
not approve the use of local infrastructure financing within more than
one revenue development area per county.
(ii) In a county in which the board has approved the use of local
infrastructure financing, the use of such financing in additional
revenue development areas may be approved, subject to the following
conditions:
(A) The sponsoring local government is located in more than one
county; and
(B) The sponsoring local government designates a revenue
development area that comprises portions of a county within which the
use of local infrastructure financing has not yet been approved.
(iii) In a county where the local infrastructure financing tool is
authorized under RCW 39.102.050, the board may approve additional use
of the local infrastructure financing tool.
(5) Once the board has approved the sponsoring local government,
and any cosponsoring local governments, to use local infrastructure
financing, notification must be sent by the board to the sponsoring
local government, and any cosponsoring local governments, authorizing
the sponsoring local government, and any cosponsoring local
governments, to impose the local sales and use tax authorized under RCW
82.14.475, subject to the conditions in RCW 82.14.475.
Sec. 106 RCW 43.84.092 and 2012 c 198 s 2, 2012 c 196 s 7, 2012
c 187 s 14, and 2012 c 83 s 4 are each reenacted and amended to read as
follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The aeronautics account, the
aircraft search and rescue account, the Alaskan Way viaduct replacement
project account, the budget stabilization account, the capital vessel
replacement account, the capitol building construction account, the
Cedar River channel construction and operation account, the Central
Washington University capital projects account, the charitable,
educational, penal and reformatory institutions account, the cleanup
settlement account, the Columbia river basin water supply development
account, the Columbia river basin taxable bond water supply development
account, the Columbia river basin water supply revenue recovery
account, the common school construction fund, the county arterial
preservation account, the county criminal justice assistance account,
the deferred compensation administrative account, the deferred
compensation principal account, the department of licensing services
account, the department of retirement systems expense account, the
developmental disabilities community trust account, the drinking water
assistance account, the drinking water assistance administrative
account, the drinking water assistance repayment account, the Eastern
Washington University capital projects account, the Interstate 405
express toll lanes operations account, the education construction fund,
the education legacy trust account, the election account, the energy
freedom account, the energy recovery act account, the essential rail
assistance account, The Evergreen State College capital projects
account, the federal forest revolving account, the ferry bond
retirement fund, the freight congestion relief account, the freight
mobility investment account, the freight mobility multimodal account,
the grade crossing protective fund, the public health services account,
the high capacity transportation account, the state higher education
construction account, the higher education construction account, the
highway bond retirement fund, the highway infrastructure account, the
highway safety ((account [fund])) fund, the high occupancy toll lanes
operations account, the hospital safety net assessment fund, the
industrial insurance premium refund account, the judges' retirement
account, the judicial retirement administrative account, the judicial
retirement principal account, the local leasehold excise tax account,
the local real estate excise tax account, the local sales and use tax
account, the marine resources stewardship trust account, the medical
aid account, the mobile home park relocation fund, the motor vehicle
fund, the motorcycle safety education account, the multimodal
transportation account, the municipal criminal justice assistance
account, the natural resources deposit account, the oyster reserve land
account, the pension funding stabilization account, the perpetual
surveillance and maintenance account, the public employees' retirement
system plan 1 account, the public employees' retirement system combined
plan 2 and plan 3 account, the public facilities construction loan
revolving account beginning July 1, 2004, the public health
supplemental account, the public transportation systems account, the
public works assistance account, the Puget Sound capital construction
account, the Puget Sound ferry operations account, the Puyallup tribal
settlement account, the real estate appraiser commission account, the
recreational vehicle account, the regional mobility grant program
account, the resource management cost account, the rural arterial trust
account, the rural mobility grant program account, the rural Washington
loan fund, the site closure account, the skilled nursing facility
safety net trust fund, the small city pavement and sidewalk account,
the special category C account, the special wildlife account, the state
employees' insurance account, the state employees' insurance reserve
account, the state investment board expense account, the state
investment board commingled trust fund accounts, the state patrol
highway account, the state route number 520 civil penalties account,
the state route number 520 corridor account, the state wildlife
account, the supplemental pension account, the Tacoma Narrows toll
bridge account, the teachers' retirement system plan 1 account, the
teachers' retirement system combined plan 2 and plan 3 account, the
tobacco prevention and control account, the tobacco settlement account,
the toll facility bond retirement account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, the
transportation infrastructure account, the transportation partnership
account, the traumatic brain injury account, the tuition recovery trust
fund, the University of Washington bond retirement fund, the University
of Washington building account, the volunteer firefighters' and reserve
officers' relief and pension principal fund, the volunteer
firefighters' and reserve officers' administrative fund, the Washington
judicial retirement system account, the Washington law enforcement
officers' and firefighters' system plan 1 retirement account, the
Washington law enforcement officers' and firefighters' system plan 2
retirement account, the Washington public safety employees' plan 2
retirement account, the Washington school employees' retirement system
combined plan 2 and 3 account, ((the Washington state economic
development commission account,)) the Washington state health insurance
pool account, the Washington state patrol retirement account, the
Washington State University building account, the Washington State
University bond retirement fund, the water pollution control revolving
fund, and the Western Washington University capital projects account.
Earnings derived from investing balances of the agricultural permanent
fund, the normal school permanent fund, the permanent common school
fund, the scientific permanent fund, the state university permanent
fund, and the state reclamation revolving account shall be allocated to
their respective beneficiary accounts.
(b) Any state agency that has independent authority over accounts
or funds not statutorily required to be held in the state treasury that
deposits funds into a fund or account in the state treasury pursuant to
an agreement with the office of the state treasurer shall receive its
proportionate share of earnings based upon each account's or fund's
average daily balance for the period.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 107 RCW 43.84.092 and 2012 c 198 s 2, 2012 c 196 s 7, 2012
c 187 s 14, 2012 c 83 s 4, and 2012 c 36 s 5 are each reenacted and
amended to read as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The aeronautics account, the
aircraft search and rescue account, the Alaskan Way viaduct replacement
project account, the budget stabilization account, the capital vessel
replacement account, the capitol building construction account, the
Cedar River channel construction and operation account, the Central
Washington University capital projects account, the charitable,
educational, penal and reformatory institutions account, the cleanup
settlement account, the Columbia river basin water supply development
account, the Columbia river basin taxable bond water supply development
account, the Columbia river basin water supply revenue recovery
account, the Columbia river crossing project account, the common school
construction fund, the county arterial preservation account, the county
criminal justice assistance account, the deferred compensation
administrative account, the deferred compensation principal account,
the department of licensing services account, the department of
retirement systems expense account, the developmental disabilities
community trust account, the drinking water assistance account, the
drinking water assistance administrative account, the drinking water
assistance repayment account, the Eastern Washington University capital
projects account, the Interstate 405 express toll lanes operations
account, the education construction fund, the education legacy trust
account, the election account, the energy freedom account, the energy
recovery act account, the essential rail assistance account, The
Evergreen State College capital projects account, the federal forest
revolving account, the ferry bond retirement fund, the freight
congestion relief account, the freight mobility investment account, the
freight mobility multimodal account, the grade crossing protective
fund, the public health services account, the high capacity
transportation account, the state higher education construction
account, the higher education construction account, the highway bond
retirement fund, the highway infrastructure account, the highway safety
((account [fund])) fund, the high occupancy toll lanes operations
account, the hospital safety net assessment fund, the industrial
insurance premium refund account, the judges' retirement account, the
judicial retirement administrative account, the judicial retirement
principal account, the local leasehold excise tax account, the local
real estate excise tax account, the local sales and use tax account,
the marine resources stewardship trust account, the medical aid
account, the mobile home park relocation fund, the motor vehicle fund,
the motorcycle safety education account, the multimodal transportation
account, the municipal criminal justice assistance account, the natural
resources deposit account, the oyster reserve land account, the pension
funding stabilization account, the perpetual surveillance and
maintenance account, the public employees' retirement system plan 1
account, the public employees' retirement system combined plan 2 and
plan 3 account, the public facilities construction loan revolving
account beginning July 1, 2004, the public health supplemental account,
the public transportation systems account, the public works assistance
account, the Puget Sound capital construction account, the Puget Sound
ferry operations account, the Puyallup tribal settlement account, the
real estate appraiser commission account, the recreational vehicle
account, the regional mobility grant program account, the resource
management cost account, the rural arterial trust account, the rural
mobility grant program account, the rural Washington loan fund, the
site closure account, the skilled nursing facility safety net trust
fund, the small city pavement and sidewalk account, the special
category C account, the special wildlife account, the state employees'
insurance account, the state employees' insurance reserve account, the
state investment board expense account, the state investment board
commingled trust fund accounts, the state patrol highway account, the
state route number 520 civil penalties account, the state route number
520 corridor account, the state wildlife account, the supplemental
pension account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system
combined plan 2 and plan 3 account, the tobacco prevention and control
account, the tobacco settlement account, the toll facility bond
retirement account, the transportation 2003 account (nickel account),
the transportation equipment fund, the transportation fund, the
transportation improvement account, the transportation improvement
board bond retirement account, the transportation infrastructure
account, the transportation partnership account, the traumatic brain
injury account, the tuition recovery trust fund, the University of
Washington bond retirement fund, the University of Washington building
account, the volunteer firefighters' and reserve officers' relief and
pension principal fund, the volunteer firefighters' and reserve
officers' administrative fund, the Washington judicial retirement
system account, the Washington law enforcement officers' and
firefighters' system plan 1 retirement account, the Washington law
enforcement officers' and firefighters' system plan 2 retirement
account, the Washington public safety employees' plan 2 retirement
account, the Washington school employees' retirement system combined
plan 2 and 3 account, ((the Washington state economic development
commission account,)) the Washington state health insurance pool
account, the Washington state patrol retirement account, the Washington
State University building account, the Washington State University bond
retirement fund, the water pollution control revolving fund, and the
Western Washington University capital projects account. Earnings
derived from investing balances of the agricultural permanent fund, the
normal school permanent fund, the permanent common school fund, the
scientific permanent fund, the state university permanent fund, and the
state reclamation revolving account shall be allocated to their
respective beneficiary accounts.
(b) Any state agency that has independent authority over accounts
or funds not statutorily required to be held in the state treasury that
deposits funds into a fund or account in the state treasury pursuant to
an agreement with the office of the state treasurer shall receive its
proportionate share of earnings based upon each account's or fund's
average daily balance for the period.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 108 RCW 43.160.060 and 2012 c 196 s 10 are each amended to
read as follows:
(1) 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, no more than twenty-five percent of all financial
assistance approved by the board in any biennium may consist of grants
to political subdivisions and federally recognized Indian tribes.
(2) Application for funds must be made in the form and manner as
the board may prescribe. In making grants or loans the board must
conform to the following requirements:
(a) The board may not provide financial assistance:
(i) For a project the primary purpose of which is to facilitate or
promote a retail shopping development or expansion.
(ii) 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.
(iii) For a project the primary purpose of which is to facilitate
or promote gambling.
(iv) For a project located outside the jurisdiction of the
applicant political subdivision or federally recognized Indian tribe.
(b) The board may only provide financial assistance:
(i) For a project demonstrating convincing evidence that a specific
private development or expansion is ready to occur and will occur only
if the public facility improvement is made that:
(A) Results in the creation of significant private sector jobs or
significant private sector capital investment as determined by the
board ((and is consistent with the state comprehensive economic
development plan developed by the Washington economic development
commission pursuant to chapter 43.162 RCW, once the plan is adopted));
and
(B) 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;
(ii) For a project that cannot meet the requirement of (b)(i) of
this subsection but is a project that:
(A) Results in the creation of significant private sector jobs or
significant private sector capital investment as determined by the
board ((and is consistent with the state comprehensive economic
development plan developed by the Washington economic development
commission pursuant to chapter 43.162 RCW, once the plan is adopted));
(B) Is part of a local economic development plan consistent with
applicable state planning requirements;
(C) Can demonstrate project feasibility using standard economic
principles; and
(D) Is located in a rural community as defined by the board, or a
rural county;
(iii) For site-specific plans, studies, and analyses that address
environmental impacts, capital facilities, land use, permitting,
feasibility, marketing, project engineering, design, site planning, and
project debt and revenue impacts, as grants not to exceed fifty
thousand dollars.
(c) The board must develop guidelines for local participation and
allowable match and activities.
(d) An application must demonstrate local match and local
participation, in accordance with guidelines developed by the board.
(e) An application must be approved by the political subdivision
and supported by the local associate development organization or local
workforce development council or approved by the governing body of the
federally recognized Indian tribe.
(f) The board may allow de minimis general system improvements to
be funded if they are critically linked to the viability of the
project.
(g) An application must demonstrate convincing evidence that the
median hourly wage of the private sector jobs created after the project
is completed will exceed the countywide median hourly wage.
(h) The board must prioritize each proposed project according to:
(i) 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, but also giving consideration to the
unemployment rate in the area in which the jobs would be located;
(ii) The rate of return of the state's investment, including, but
not limited to, the leveraging of private sector investment,
anticipated job creation and retention, and expected increases in state
and local tax revenues associated with the project;
(iii) Whether the proposed project offers a health insurance plan
for employees that includes an option for dependents of employees;
(iv) Whether the public facility investment will increase existing
capacity necessary to accommodate projected population and employment
growth in a manner that supports infill and redevelopment of existing
urban or industrial areas that are served by adequate public
facilities. Projects should maximize the use of existing
infrastructure and provide for adequate funding of necessary
transportation improvements;
(v) Whether the applicant's permitting process has been certified
as streamlined by the office of regulatory assistance; and
(vi) 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.
(i) A responsible official of the political subdivision or the
federally recognized Indian tribe must be present during board
deliberations and provide information that the board requests.
(3) 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.
Sec. 109 RCW 43.160.900 and 2008 c 327 s 9 are each amended to
read as follows:
(1) The community economic revitalization board shall conduct
biennial outcome-based evaluations of the financial assistance provided
under this chapter. The evaluations shall include information on the
number of applications for community economic revitalization board
assistance; the number and types of projects approved; the grant or
loan amount awarded each project; the projected number of jobs created
or retained by each project; the actual number and cost of jobs created
or retained by each project; the wages and health benefits associated
with the jobs; the amount of state funds and total capital invested in
projects; the number and types of businesses assisted by funded
projects; the location of funded projects; the transportation
infrastructure available for completed projects; the local match and
local participation obtained; the number of delinquent loans; and the
number of project terminations. The evaluations may also include
additional performance measures and recommendations for programmatic
changes.
(2)(((a) By September 1st of each even-numbered year, the board
shall forward its draft evaluation to the Washington state economic
development commission for review and comment, as required in section
10 of this act. The board shall provide any additional information as
may be requested by the commission for the purpose of its review.)) The evaluation must be presented to the
governor and appropriate committees of the legislature by December 31st
of each even-numbered year. The initial evaluation must be submitted
by December 31, 2010.
(b) Any written comments or recommendations provided by the
commission as a result of its review shall be included in the board's
completed evaluation.
Sec. 110 RCW 43.330.050 and 2005 c 136 s 12 are each amended to
read as follows:
The department shall be responsible for promoting community and
economic development within the state by assisting the state's
communities to increase the quality of life of their citizens and their
economic vitality, and by assisting the state's businesses to maintain
and increase their economic competitiveness, while maintaining a
healthy environment. Community and economic development efforts shall
include: Efforts to increase economic opportunity; local planning to
manage growth; the promotion and provision of affordable housing and
housing-related services; providing public infrastructure; business and
trade development; assisting firms and industrial sectors to increase
their competitiveness; fostering the development of minority and women-owned businesses; facilitating technology development, transfer, and
diffusion; community services and advocacy for low-income persons; and
public safety efforts. The department shall have the following general
functions and responsibilities:
(1) Provide advisory assistance to the governor, other state
agencies, and the legislature on community and economic development
matters and issues;
(2) Assist the governor in coordinating the activities of state
agencies that have an impact on local government and communities;
(3) Cooperate with ((the Washington state economic development
commission,)) the legislature((,)) and the governor in the development
and implementation of strategic plans for the state's community and
economic development efforts;
(4) Solicit private and federal grants for economic and community
development programs and administer such programs in conjunction with
other programs assigned to the department by the governor or the
legislature;
(5) Cooperate with and provide technical and financial assistance
to local governments, businesses, and community-based organizations
serving the communities of the state for the purpose of aiding and
encouraging orderly, productive, and coordinated development of the
state, and, unless stipulated otherwise, give additional consideration
to local communities and individuals with the greatest relative need
and the fewest resources;
(6) Participate with other states or subdivisions thereof in
interstate programs and assist cities, counties, municipal
corporations, governmental conferences or councils, and regional
planning commissions to participate with other states and provinces or
their subdivisions;
(7) Hold public hearings and meetings to carry out the purposes of
this chapter;
(8) Conduct research and analysis in furtherance of the state's
economic and community development efforts including maintenance of
current information on market, demographic, and economic trends as they
affect different industrial sectors, geographic regions, and
communities with special economic and social problems in the state; and
(9) Develop a schedule of fees for services where appropriate.
Sec. 111 RCW 43.330.080 and 2012 c 195 s 1 are each amended to
read as follows:
(1)(a) The department must contract with county-designated
associate development organizations to increase the support for and
coordination of community and economic development services in
communities or regional areas. The contracting organizations in each
community or regional area must:
(i) Be broadly representative of community and economic interests;
(ii) Be capable of identifying key economic and community
development problems, developing appropriate solutions, and mobilizing
broad support for recommended initiatives;
(iii) Work closely with the department to carry out state-identified economic development priorities;
(iv) Work with and include local governments, local chambers of
commerce, workforce development councils, port districts, labor groups,
institutions of higher education, community action programs, and other
appropriate private, public, or nonprofit community and economic
development groups; and
(v) Meet and share best practices with other associate development
organizations at least two times each year.
(b) The scope of services delivered under the contracts required in
(a) of this subsection must include two broad areas of work:
(i) Direct assistance, including business planning, to companies
throughout the county who need support to stay in business, expand, or
relocate to Washington from out of state or other countries.
Assistance must comply with business recruitment and retention
protocols established in RCW 43.330.062, and includes:
(A) Working with the appropriate partners throughout the county
including, but not limited to, local governments, workforce development
councils, port districts, community and technical colleges and higher
education institutions, export assistance providers, impact Washington,
the Washington state quality award council, small business assistance
programs, innovation partnership zones, and other federal, state, and
local programs to facilitate the alignment of planning efforts and the
seamless delivery of business support services within the entire
county;
(B) Providing information on state and local permitting processes,
tax issues, export assistance, and other essential information for
operating, expanding, or locating a business in Washington;
(C) Marketing Washington and local areas as excellent locations to
expand or relocate a business and positioning Washington as a globally
competitive place to grow business, which may include developing and
executing regional plans to attract companies from out of state;
(D) Working with businesses on site location and selection
assistance;
(E) Providing business retention and expansion services throughout
the county. Such services must include, but are not limited to,
business outreach and monitoring efforts to identify and address
challenges and opportunities faced by businesses, assistance to trade
impacted businesses in applying for grants from the federal trade
adjustment assistance for firms program, and the provision of
information to businesses on:
(I) Resources available for microenterprise development;
(II) Resources available on the revitalization of commercial
districts; and
(III) The opportunity to maintain jobs through shared work programs
authorized under chapter 50.60 RCW;
(F) Participating in economic development system-wide discussions
regarding gaps in business start-up assistance in Washington;
(G) Providing or facilitating the provision of export assistance
through workshops or one-on-one assistance; and
(H) Using a web-based information system to track data on business
recruitment, retention, expansion, and trade; and
(ii) Support for regional economic research and regional planning
efforts to implement target industry sector strategies and other
economic development strategies, including cluster-based strategies.
Research and planning efforts should support increased living standards
and increased foreign direct investment, and be aligned with the
statewide economic development strategy. Regional associate
development organizations retain their independence to address local
concerns and goals. Activities include:
(A) Participating in regional planning efforts with workforce
development councils involving coordinated strategies around workforce
development and economic development policies and programs.
Coordinated planning efforts must include, but not be limited to,
assistance to industry clusters in the region;
(B) Participating with the state board for community and technical
colleges as created in RCW 28B.50.050, and any community and technical
colleges in the coordination of the job skills training program and the
customized training program within its region;
(C) Collecting and reporting data as specified by the contract with
the department for statewide systemic analysis. ((The department must
consult with the Washington state economic development commission in
the establishment of such uniform data as is needed to conduct a
statewide systemic analysis of the state's economic development
programs and expenditures.)) In cooperation with other local,
regional, and state planning efforts, contracting organizations may
provide insight into the needs of target industry clusters, business
expansion plans, early detection of potential relocations or layoffs,
training needs, and other appropriate economic information;
(D) In conjunction with other governmental jurisdictions and
institutions, ((participate [participating])) participating in the
development of a countywide economic development plan((, consistent
with the state comprehensive plan for economic development developed by
the Washington state economic development commission)).
(2) The department must provide business services training to the
contracting organizations, including but not limited to:
(a) Training in the fundamentals of export assistance and the
services available from private and public export assistance providers
in the state; and
(b) Training in the provision of business retention and expansion
services as required by subsection (1)(b)(i)(E) of this section.
Sec. 112 RCW 43.330.082 and 2012 c 195 s 2 are each amended to
read as follows:
(1)(a) Contracting associate development organizations must provide
the department with measures of their performance and a summary of best
practices shared and implemented by the contracting organizations.
Annual reports must include the following information to show the
contracting organization's impact on employment and overall changes in
employment: Current employment and economic information for the
community or regional area produced by the employment security
department; the net change from the previous year's employment and
economic information using data produced by the employment security
department; other relevant information on the community or regional
area; the amount of funds received by the contracting organization
through its contract with the department; the amount of funds received
by the contracting organization((s)) through all sources; and the
contracting organization's impact on employment through all funding
sources. Annual reports may include the impact of the contracting
organization on wages, exports, tax revenue, small business creation,
foreign direct investment, business relocations, expansions,
terminations, and capital investment. Data must be input into a common
web-based business information system managed by the department.
Specific measures, data standards, and data definitions must be
developed in the contracting process between the department((, the
economic development commission,)) and the contracting organization
every two years. Except as provided in (b) of this subsection,
performance measures should be consistent across regions to allow for
statewide evaluation.
(b) In addition to the measures required in (a) of this subsection,
contracting associate development organizations in counties with a
population greater than one million five hundred thousand persons must
include the following measures in reports to the department:
(i) The number of small businesses that received retention and
expansion services, and the outcome of those services;
(ii) The number of businesses located outside of the boundaries of
the largest city within the contracting associate development
organization's region that received recruitment, retention, and
expansion services, and the outcome of those services.
(2)(a) The department and contracting associate development
organizations must agree upon specific target levels for the
performance measures in subsection (1) of this section. Comparison of
agreed thresholds and actual performance must occur annually.
(b) Contracting organizations that fail to achieve the agreed
performance targets in more than one-half of the agreed measures must
develop remediation plans to address performance gaps. The remediation
plans must include revised performance thresholds specifically chosen
to provide evidence of progress in making the identified service
changes.
(c) Contracts and state funding must be terminated for one year for
organizations that fail to achieve the agreed upon progress toward
improved performance defined under (b) of this subsection. During the
year in which termination for nonperformance is in effect,
organizations must review alternative delivery strategies to include
reorganization of the contracting organization, merging of previous
efforts with existing regional partners, and other specific steps
toward improved performance. At the end of the period of termination,
the department may contract with the associate development organization
or its successor as it deems appropriate.
(3) The department must submit ((a preliminary report to the
Washington economic development commission by September 1st of each
even-numbered year, and)) a final report to the legislature ((and the
Washington economic development commission)) by December 31st of each
even-numbered year on the performance results of the contracts with
associate development organizations.
(((4) Contracting associate development organizations must provide
the Washington state economic development commission with information
to be used in the comprehensive statewide economic development strategy
and progress report due under RCW 43.162.020, by the date determined by
the commission.))
Sec. 113 RCW 43.330.090 and 2012 c 198 s 3 are each amended to
read as follows:
(1) The department shall work with private sector organizations,
industry and sector associations, federal agencies, state agencies that
use a sector-based approach to service delivery, local governments,
local associate development organizations, and higher education and
training institutions in the development of industry sector-based
strategies to diversify the economy, facilitate technology transfer and
diffusion, and increase value-added production. The industry sectors
targeted by the department may include, but are not limited to,
aerospace, agriculture, food processing, forest products, marine
services, health and biomedical, software, digital and interactive
media, transportation and distribution, and microelectronics. The
department shall, on a continuing basis, evaluate the potential return
to the state from devoting additional resources to an industry sector-based approach to economic development and identifying and assisting
additional sectors.
(2) The department's sector-based strategies shall include, but not
be limited to, cluster-based strategies that focus on assisting
regional industry sectors and related firms and institutions that meet
the definition of an industry cluster in this section and based on
criteria identified by the working group established in this chapter.
(3)(a) The department shall promote, market, and encourage growth
in the production of films and videos, as well as television
commercials within the state; to this end the department is directed to
assist in the location of a film and video production studio within the
state.
(b) The department may, in carrying out its efforts to encourage
film and video production in the state, solicit and receive gifts,
grants, funds, fees, and endowments, in trust or otherwise, from
tribal, local, or other governmental entities, as well as private
sources, and may expend the same or any income therefrom for the
encouragement of film and video production. All revenue received for
such purposes shall be deposited into the general fund.
(4) In assisting in the development of regional and statewide
industry cluster-based strategies, the department's activities shall
include, but are not limited to:
(a) Facilitating regional focus group discussions and conducting
studies to identify industry clusters, appraise the current information
linkages within a cluster, and identify issues of common concern within
a cluster;
(b) Supporting industry and cluster associations, publications of
association and cluster directories, and related efforts to create or
expand the activities of industry and cluster associations;
(c) Administering a competitive grant program to fund economic
development activities designed to further regional cluster growth. In
administering the program, the department shall work with ((the
economic development commission,)) the workforce training and education
coordinating board, the state board for community and technical
colleges, the employment security department, business, and labor.
(i) The department shall seek recommendations on criteria for
evaluating applications for grant funds and recommend applicants for
receipt of grant funds. Criteria shall include not duplicating the
purpose or efforts of industry skill panels.
(ii) Applicants must include organizations from at least two
counties and participants from the local business community. Eligible
organizations include, but are not limited to, local governments,
economic development councils, chambers of commerce, federally
recognized Indian tribes, workforce development councils, and
educational institutions.
(iii) Applications must evidence financial participation of the
partner organizations.
(iv) Eligible activities include the formation of cluster economic
development partnerships, research and analysis of economic development
needs of the cluster, the development of a plan to meet the economic
development needs of the cluster, and activities to implement the plan.
(v) Priority shall be given to applicants that complement industry
skill panels and will use the grant funds to build linkages and joint
projects.
(vi) The maximum amount of a grant is one hundred thousand dollars.
(vii) A maximum of one hundred thousand dollars total can go to
King, Pierce, Kitsap, and Snohomish counties combined.
(viii) No more than ten percent of funds received for the grant
program may be used by the department for administrative costs.
(5) As used in this chapter, "industry cluster" means a geographic
concentration of interconnected companies in a single industry, related
businesses in other industries, including suppliers and customers, and
associated institutions, including government and education.
Sec. 114 RCW 43.330.250 and 2011 1st sp.s. c 50 s 956 are each
amended 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) Only the governor, with the recommendation of the director of
the department of commerce ((and the economic development commission)),
may authorize expenditures from the account.
(3) ((Expenditures from the account shall be made in an amount
sufficient to fund a minimum of one staff position for the economic
development commission and to cover any other operational costs of the
commission.)) During the 2009-2011 and 2011-2013 fiscal biennia, moneys in
the account may also be transferred into the state general fund.
(4)
(((5))) (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. Expenditures may be authorized
for:
(a) Workforce 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 only be
provided under a contractual arrangement ensuring that the state will
receive appropriate consideration, such as an assurance of job creation
or retention.
(((6))) (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 commerce 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.
(((7))) (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.
(((8))) (7) If the account balance in the strategic reserve account
exceeds fifteen million dollars at any time, the amount in excess of
fifteen million dollars shall be transferred to the education
construction account.
Sec. 115 RCW 43.330.270 and 2012 c 225 s 1 are each amended to
read as follows:
(1) The department 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 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 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 evidence of sales in
international 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 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
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 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;
(c) Job skills;
(d) Local improvement districts; and
(e) Community economic revitalization board projects under chapter
43.160 RCW.
(7) An innovation partnership zone 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.
(10) The department must convene annual information sharing events
for innovation partnership zone administrators and other interested
parties.
(11) An innovation partnership zone 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.
(12) The department must compile a biennial report on the
innovation partnership zone program by December 1st of every even-
numbered year. The report 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 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 must submit
the report((, including the commission's recommendations,)) to the
governor and legislature beginning December 1, 2010.
Sec. 116 RCW 43.330.280 and 2012 c 229 s 708 are each amended to
read as follows:
(((1))) The ((Washington state economic development commission))
department shall, with the advice of an innovation partnership advisory
group selected by the ((commission)) director:
(((a) Provide information and advice to the department of commerce
to assist in the implementation of the innovation partnership zone
program, including criteria to be used in the selection of grant
applicants for funding;)) (1) Document clusters of companies throughout the state that
have comparative competitive advantage ((
(b)or the potential for
comparative competitive advantage, using the process and criteria for
identifying strategic clusters developed by the working group specified
in subsection (2) of this section));
(((c))) (2) Conduct an innovation opportunity analysis to identify
(((i))) (a) the strongest current intellectual assets and research
teams in the state focused on emerging technologies and their
commercialization, and (((ii))) (b) faculty and researchers that could
increase their focus on commercialization of technology if provided the
appropriate technical assistance and resources;
(((d))) (3) Based on its findings and analysis, and in conjunction
with the research institutions:
(((i))) (a) Develop a plan to build on existing, and develop new,
intellectual assets and innovation research teams in the state in
research areas where there is a high potential to commercialize
technologies. ((The commission shall present the plan to the governor
and legislature by December 31, 2009.)) The publicly funded research
institutions in the state shall be responsible for implementing the
plan. The plan shall address the following elements and such other
elements as the ((commission)) department deems important:
(((A))) (i) Specific mechanisms to support, enhance, or develop
innovation research teams and strengthen their research and
commercialization capacity in areas identified as useful to strategic
clusters and innovative firms in the state;
(((B))) (ii) Identification of the funding necessary for laboratory
infrastructure needed to house innovation research teams;
(((C))) (iii) Specification of the most promising research areas
meriting enhanced resources and recruitment of significant and rising
entrepreneurial researchers to join or lead innovation research teams;
(((D))) (iv) The most productive approaches to take in the
recruitment, in the identified promising research areas, of a minimum
of ten ((significant)) entrepreneurial researchers over the next ten
years to join or lead innovation research teams, with emphasis on
recruiting rising entrepreneurial researchers holding a doctoral degree
who founded or cofounded a company that has commercialized or is in the
process of commercializing the individual's intellectual property, and
worked under the direction of a significant entrepreneurial researcher;
(((E))) (v) Steps to take in solicitation of private sector support
for the recruitment of entrepreneurial researchers and the
commercialization activity of innovation research teams; and
(((F))) (vi) Mechanisms for ensuring the location of innovation
research teams in innovation partnership zones;
(((ii))) (b) Provide direction for the development of comprehensive
entrepreneurial assistance programs at research institutions. The
programs may involve multidisciplinary students, faculty,
entrepreneurial researchers, entrepreneurs, and investors in building
business models and evolving business plans around innovative ideas.
The programs may provide technical assistance and the support of an
entrepreneur-in-residence to innovation research teams and offer
entrepreneurial training to faculty, researchers, undergraduates, and
graduate students. Curriculum leading to a certificate in
entrepreneurship may also be offered;
(((e))) (4) Develop performance measures to be used in evaluating
the performance of innovation research teams, the implementation of the
plan and programs under (((d)(i) and (ii) of this)) subsection (3)(a)
and (b) of this section, and the performance of innovation partnership
zone grant recipients, including but not limited to private investment
measures, business initiation measures, job creation measures, and
measures of innovation such as licensing of ideas in research
institutions, patents, or other recognized measures of innovation.
((The performance measures developed shall be consistent with the
economic development commission's comprehensive plan for economic
development and its standards and metrics for program evaluation.))
The ((commission)) department shall report to the legislature and the
governor by ((June 30, 2009)) December 31, 2013, on the measures
developed; and
(((f))) (5) Using the performance measures developed, perform a
biennial assessment and report((, the first of which shall be)) due
December 31, ((2012)) 2014, and by December 31st in even-numbered years
thereafter, on:
(((i))) (a) Commercialization of technologies developed at state
universities, found at other research institutions in the state, and
facilitated with public assistance at existing companies;
(((ii))) (b) Outcomes of the funding of innovation research teams
and recruitment of significant and rising entrepreneurial researchers;
(((iii))) (c) Comparison with other states of Washington's outcomes
from the innovation research teams and efforts to recruit significant
and rising entrepreneurial researchers; ((and)) (d) Outcomes of the grants for innovation partnership
zones((
(iv).)); and
The report shall include
(e) Recommendations for modifications ((of chapter 227, Laws of
2007 and)) of innovation partnership zones, innovation research teams,
and state commercialization efforts that would enhance the state's
economic competitiveness.
(((2) The economic development commission and the workforce
training and education coordinating board shall jointly convene a
working group to:))
(a) Specify the process and criteria for identification of substate
geographic concentrations of firms or employment in an industry and the
industry's customers, suppliers, supporting businesses, and
institutions, which process will include the use of labor market
information from the employment security department and local labor
markets; and
(b) Establish criteria for identifying strategic clusters which are
important to economic prosperity in the state, considering cluster
size, growth rate, and wage levels among other factors.
Sec. 117 RCW 43.330.310 and 2012 c 229 s 590 and 2012 c 198 s 12
are each reenacted and amended to read as follows:
(1) The legislature establishes a comprehensive green economy jobs
growth initiative based on the goal of, by 2020, increasing the number
of green economy jobs to twenty-five thousand from the eight thousand
four hundred green economy jobs the state had in 2004.
(2) The department, in consultation with the employment security
department, the state workforce training and education coordinating
board, and the state board for community and technical colleges, shall
develop a defined list of terms, consistent with current workforce and
economic development terms, associated with green economy industries
and jobs.
(3)(a) The employment security department, in consultation with the
department, the state workforce training and education coordinating
board, the state board for community and technical colleges, Washington
State University small business development center, and the Washington
State University extension energy program, shall conduct labor market
research to analyze the current labor market and projected job growth
in the green economy, the current and projected recruitment and skill
requirement of green economy industry employers, the wage and benefits
ranges of jobs within green economy industries, and the education and
training requirements of entry-level and incumbent workers in those
industries.
(i) The employment security department shall conduct an analysis of
occupations in the forest products industry to: (A) Determine key
growth factors and employment projections in the industry; and (B)
define the education and skill standards required for current and
emerging green occupations in the industry.
(ii) The term "forest products industry" must be given a broad
interpretation when implementing (a)(i) of this subsection and
includes, but is not limited to, businesses that grow, manage, harvest,
transport, and process forest, wood, and paper products.
(b) The University of Washington business and economic development
center shall: Analyze the current opportunities for and participation
in the green economy by minority and women-owned business enterprises
in Washington; identify existing barriers to their successful
participation in the green economy; and develop strategies with
specific policy recommendations to improve their successful
participation in the green economy. The research may be informed by
the research of the Puget Sound regional council prosperity
partnership, as well as other entities. The University of Washington
business and economic development center shall report to the
appropriate committees of the house of representatives and the senate
on their research, analysis, and recommendations by December 1, 2008.
(4) Based on the findings from subsection (3) of this section, the
employment security department, in consultation with the department and
taking into account the requirements and goals of chapter 14, Laws of
2008 and other state clean energy and energy efficiency policies, shall
propose which industries will be considered high-demand green
industries, based on current and projected job creation and their
strategic importance to the development of the state's green economy.
The employment security department and the department shall take into
account which jobs within green economy industries will be considered
high-wage occupations and occupations that are part of career pathways
to the same, based on family-sustaining wage and benefits ranges.
These designations, and the results of the employment security
department's broader labor market research, shall inform the planning
and strategic direction of the department, the state workforce training
and education coordinating board, and the state board for community and
technical colleges.
(5) The department shall identify emerging technologies and
innovations that are likely to contribute to advancements in the green
economy, including the activities in designated innovation partnership
zones established in RCW 43.330.270.
(6) The department((, consistent with the priorities established by
the state economic development commission,)) shall:
(a) Develop targeting criteria for existing investments, and make
recommendations for new or expanded financial incentives and
comprehensive strategies, to recruit, retain, and expand green economy
industries and small businesses; and
(b) Make recommendations for new or expanded financial incentives
and comprehensive strategies to stimulate research and development of
green technology and innovation, including designating innovation
partnership zones linked to the green economy.
(7) For the purposes of this section, "target populations" means
(a) entry-level or incumbent workers in high-demand green industries
who are in, or are preparing for, high-wage occupations; (b) dislocated
workers in declining industries who may be retrained for high-wage
occupations in high-demand green industries; (c) dislocated
agriculture, timber, or energy sector workers who may be retrained for
high-wage occupations in high-demand green industries; (d) eligible
veterans or national guard members; (e) disadvantaged populations; or
(f) anyone eligible to participate in the state opportunity grant
program under RCW 28B.50.271.
(8) The legislature directs the state workforce training and
education coordinating board to create and pilot green industry skill
panels. These panels shall consist of business representatives from:
Green industry sectors, including but not limited to forest product
companies, companies engaged in energy efficiency and renewable energy
production, companies engaged in pollution prevention, reduction, and
mitigation, and companies engaged in green building work and green
transportation; labor unions representing workers in those industries
or labor affiliates administering state-approved, joint apprenticeship
programs or labor-management partnership programs that train workers
for these industries; state and local veterans agencies; employer
associations; educational institutions; and local workforce development
councils within the region that the panels propose to operate; and
other key stakeholders as determined by the applicant. Any of these
stakeholder organizations are eligible to receive grants under this
section and serve as the intermediary that convenes and leads the
panel. Panel applicants must provide labor market and industry
analysis that demonstrates high demand, or demand of strategic
importance to the development of the state's clean energy economy as
identified in this section, for high-wage occupations, or occupations
that are part of career pathways to the same, within the relevant
industry sector. The panel shall:
(a) Conduct labor market and industry analyses, in consultation
with the employment security department, and drawing on the findings of
its research when available;
(b) Plan strategies to meet the recruitment and training needs of
the industry and small businesses; and
(c) Leverage and align other public and private funding sources.
Sec. 118 RCW 43.330.375 and 2012 c 229 s 591 are each amended to
read as follows:
(1) The department and the workforce board must:
(a) Coordinate efforts across the state to ensure that federal
training and education funds are captured and deployed in a focused and
effective manner in order to support green economy projects and
accomplish the goals of the evergreen jobs initiative;
(b) Accelerate and coordinate efforts by state and local
organizations to identify, apply for, and secure all sources of funds,
particularly those created by the 2009 American recovery and
reinvestment act, and to ensure that distributions of funding to local
organizations are allocated in a manner that is time-efficient and
user-friendly for the local organizations. Local organizations
eligible to receive support include but are not limited to:
(i) Associate development organizations;
(ii) Workforce development councils;
(iii) Public utility districts; and
(iv) Community action agencies;
(c) Support green economy projects at both the state and local
level by developing a process and a framework to provide, at a minimum:
(i) Administrative and technical assistance;
(ii) Assistance with and expediting of permit processes; and
(iii) Priority consideration of opportunities leading to exportable
green economy goods and services, including renewable energy
technology;
(d) Coordinate local and state implementation of projects using
federal funds to ensure implementation is time-efficient and user-friendly for local organizations;
(e) Emphasize through both support and outreach efforts, projects
that:
(i) Have a strong and lasting economic or environmental impact;
(ii) Lead to a domestically or internationally exportable good or
service, including renewable energy technology;
(iii) Create training programs leading to a credential,
certificate, or degree in a green economy field;
(iv) Strengthen the state's competitiveness in a particular sector
or cluster of the green economy;
(v) Create employment opportunities for veterans, members of the
national guard, and low-income and disadvantaged populations;
(vi) Comply with prevailing wage provisions of chapter 39.12 RCW;
(vii) Ensure at least fifteen percent of labor hours are performed
by apprentices;
(f) Identify emerging technologies and innovations that are likely
to contribute to advancements in the green economy, including the
activities in designated innovation partnership zones established in
RCW 43.330.270;
(g) Identify barriers to the growth of green jobs in traditional
industries such as the forest products industry;
(h) Identify statewide performance metrics for projects receiving
agency assistance. Such metrics may include:
(i) The number of new green jobs created each year, their wage
levels, and, to the extent determinable, the percentage of new green
jobs filled by veterans, members of the national guard, and low-income
and disadvantaged populations;
(ii) The total amount of new federal funding secured, the
respective amounts allocated to the state and local levels, and the
timeliness of deployment of new funding by state agencies to the local
level;
(iii) The timeliness of state deployment of funds and support to
local organizations; and
(iv) If available, the completion rates, time to completion, and
training-related placement rates for green economy postsecondary
training programs;
(i) Identify strategies to allocate existing and new funding
streams for green economy workforce training programs and education to
emphasize those leading to a credential, certificate, or degree in a
green economy field;
(j) Identify and implement strategies to allocate existing and new
funding streams for workforce development councils and associate
development organizations to increase their effectiveness and
efficiency and increase local capacity to respond rapidly and
comprehensively to opportunities to attract green jobs to local
communities;
(k) Develop targeting criteria for existing investments that are
consistent with ((the economic development commission's economic
development strategy and)) the goals of this section and RCW
28C.18.170, 28B.50.281, and 49.04.200; and
(l) Make and support outreach efforts so that residents of
Washington, particularly members of target populations, become aware of
educational and employment opportunities identified and funded through
the evergreen jobs act.
(2) The department and the workforce board must provide semiannual
performance reports to the governor and appropriate committees of the
legislature on:
(a) Actual statewide performance based on the performance measures
identified in subsection (1)(h) of this section;
(b) How the state is emphasizing and supporting projects that lead
to a domestically or internationally exportable good or service,
including renewable energy technology;
(c) A list of projects supported, created, or funded in furtherance
of the goals of the evergreen jobs initiative and the actions taken by
state and local organizations, including the effectiveness of state
agency support provided to local organizations as directed in
subsection (1)(b) and (c) of this section;
(d) Recommendations for new or expanded financial incentives and
comprehensive strategies to:
(i) Recruit, retain, and expand green economy industries and small
businesses; and
(ii) Stimulate research and development of green technology and
innovation, which may include designating innovation partnership zones
linked to the green economy;
(e) Any information that associate development organizations and
workforce development councils choose to provide to appropriate
legislative committees regarding the effectiveness, timeliness, and
coordination of support provided by state agencies under this section
and RCW 28C.18.170, 28B.50.281, and 49.04.200; and
(f) Any recommended statutory changes necessary to increase the
effectiveness of the evergreen jobs initiative and state responsiveness
to local agencies and organizations.
(3) The definitions, designations, and results of the employment
security department's broader labor market research under RCW
43.330.010 shall inform the planning and strategic direction of the
department, the state workforce training and education coordinating
board, the state board for community and technical colleges, and the
student achievement council.
Sec. 119 RCW 50.38.050 and 2009 c 151 s 2 are each amended to
read as follows:
The department shall have the following duties:
(1) Oversight and management of a statewide comprehensive labor
market and occupational supply and demand information system, including
development of a five-year employment forecast for state and labor
market areas;
(2) Produce local labor market information packages for the state's
counties, including special studies and job impact analyses in support
of state and local employment, training, education, and job creation
programs, especially activities that prevent job loss, reduce
unemployment, and create jobs;
(3) Coordinate with the office of financial management and the
office of the forecast council to improve employment estimates by
enhancing data on corporate officers, improving business establishment
listings, expanding sample for employment estimates, and developing
business entry/
(4) In cooperation with the office of financial management, produce
long-term industry and occupational employment forecasts. These
forecasts shall be consistent with the official economic and revenue
forecast council biennial economic and revenue forecasts; and
(5) Analyze labor market and economic data, including the use of
input-output models, for the purpose of identifying industry clusters
and strategic industry clusters ((that meet the criteria identified by
the working group convened by the economic development commission and
the workforce training and education coordinating board under chapter
43.330 RCW)).
Sec. 120 RCW 82.14.505 and 2010 c 164 s 8 are each amended to
read as follows:
(1) Demonstration projects are designated to determine the
feasibility of local revitalization financing. For the purpose of this
section, "annual state contribution limit" means four million two
hundred thousand dollars statewide per fiscal year.
(a) Notwithstanding RCW 39.104.100, the department must approve
each demonstration project for 2009 as follows:
(i) The Whitman county Pullman/Moscow corridor improvement project
award may not exceed two hundred thousand dollars;
(ii) The University Place improvement project award may not exceed
five hundred thousand dollars;
(iii) The Tacoma international financial services area/Tacoma dome
project award may not exceed five hundred thousand dollars;
(iv) The Bremerton downtown improvement project award may not
exceed three hundred thirty thousand dollars;
(v) The Auburn downtown redevelopment project award may not exceed
two hundred fifty thousand dollars;
(vi) The Vancouver Columbia waterfront/downtown project award may
not exceed two hundred twenty thousand dollars; and
(vii) The Spokane University District project award may not exceed
two hundred fifty thousand dollars.
(b) Notwithstanding RCW 39.104.100, the department must approve
each demonstration project for 2010 meeting the requirements in
subsection (2)(c) of this section as follows:
(i) The Richland revitalization area for industry, science and
education project award may not exceed three hundred thirty thousand
dollars;
(ii) The Lacey gateway town center project award may not exceed
five hundred thousand dollars;
(iii) The Mill Creek east gateway planned urban village
revitalization area project award may not exceed three hundred thirty
thousand dollars;
(iv) The Puyallup river road revitalization area project award may
not exceed two hundred fifty thousand dollars;
(v) The Renton south Lake Washington project award may not exceed
five hundred thousand dollars; and
(vi) The New Castle downtown project (([award])) award may not
exceed forty thousand dollars.
(2)(a) Local government sponsors of demonstration projects under
subsection (1)(a) of this section must submit to the department no
later than September 1, 2009, documentation that substantiates that the
project has met the conditions, limitations, and requirements provided
in chapter 270, Laws of 2009.
(b) Sponsoring local government of demonstration projects under
subsection (1)(b) of this section must update and resubmit to the
department no later than September 1, 2010, the application already on
file with the department to substantiate that the project has met the
conditions, limitations, and requirements provided in chapter 270, Laws
of 2009 and chapter 164, Laws of 2010 and the project is substantially
the same as the project in the original application submitted to the
department in 2009.
(c) The department must not approve any resubmitted application
unless an economic analysis by a qualified researcher at the department
of economics at the University of Washington confirms that there is an
eighty-five percent probability that the application's assumptions and
estimates of jobs created and increased tax receipts will be achieved
by the project and determines that net state tax revenue will increase
as a result of the project by an amount that equals or exceeds the
award authorized in subsection (1)(b) of this section. ((Prior to
submitting the economic analysis to the department, the qualified
researcher must consult with the economic development commission
established in chapter 43.162 RCW regarding his or her preliminary
findings. The final economic analysis must include comments and
recommendations of the economic development commission.))
(3) Within ninety days of such submittal, the economic analysis in
subsection (2)(c) of this section must be completed and the department
must either approve demonstration projects that have met these
conditions, limitations, and requirements or deny resubmitted
applications that have not met these conditions, limitations, and
requirements.
(4) Local government sponsors of demonstration projects may elect
to decline the project awards as designated in this section, and may
elect instead to submit applications according to the process described
in RCW 39.104.100.
(5) If a demonstration project listed in subsection (1)(b) of this
section does not update and resubmit its application to the department
by the deadline specified in subsection (2)(b) of this section or if
the demonstration project withdraws its application, the associated
dollar amounts may not be approved for another project and may not be
considered part of the annual state contribution limit under RCW
39.104.020(1).
Sec. 121 RCW 82.33A.010 and 2007 c 232 s 8 are each amended to
read as follows:
(1) The economic climate council is hereby created.
(2) The council shall((, in consultation with the Washington
economic development commission,)) select a series of benchmarks that
characterize the competitive environment of the state. The benchmarks
should be indicators of the cost of doing business; the education and
skills of the workforce; a sound infrastructure; and the quality of
life. In selecting the appropriate benchmarks, the council shall use
the following criteria:
(a) The availability of comparative information for other states
and countries;
(b) The timeliness with which benchmark information can be
obtained; and
(c) The accuracy and validity of the benchmarks in measuring the
economic climate indicators named in this section.
(3) Each year the council shall prepare an official state economic
climate report on the present status of benchmarks, changes in the
benchmarks since the previous report, and the reasons for the changes.
The reports shall include current benchmark comparisons with other
states and countries, and an analysis of factors related to the
benchmarks that may affect the ability of the state to compete
economically at the national and international level.
(4) All agencies of state government shall provide to the council
immediate access to all information relating to economic climate
reports.
Sec. 122 RCW 43.131.418 and 2012 c 242 s 4 are each amended to
read as follows:
The following acts or parts of acts, as now existing or hereafter
amended, are each repealed, effective July 1, 2016:
(1) RCW 28B.155.010 and 2013 c ... s 2 (section 102 of this act)
and 2012 c 242 s 1; and
(2) RCW 28B.155.020 and 2012 c 242 s 2.
NEW SECTION. Sec. 123 The following acts or parts of acts are
each repealed:
(1) RCW 43.162.005 (Findings -- Intent) and 2011 c 311 s 1, 2007 c
232 s 1, & 2003 c 235 s 1;
(2) RCW 43.162.010 (Washington state economic development
commission -- Membership -- Policies and procedures) and 2011 c 311 s 2,
2007 c 232 s 2, & 2003 c 235 s 2;
(3) RCW 43.162.012 ("Commission" defined) and 2011 c 311 s 3;
(4) RCW 43.162.015 (Executive director) and 2011 c 311 s 4 & 2007
c 232 s 3;
(5) RCW 43.162.020 (Duties -- Biennial comprehensive statewide
economic development strategy -- Report -- Biennial budget request--Memorandum of understanding -- Performance evaluation -- Gifts, grants,
donations) and 2012 c 195 s 3, 2011 c 311 s 5, 2009 c 151 s 9, 2007 c
232 s 4, & 2003 c 235 s 3;
(6) RCW 43.162.025 (Additional authority) and 2011 c 311 s 6 & 2007
c 232 s 5;
(7) RCW 43.162.030 (Authority of governor and department of
commerce not affected) and 2011 c 311 s 7, 2007 c 232 s 7, & 2003 c 235
s 4;
(8) RCW 43.162.040 (Washington state economic development
commission account) and 2011 c 311 s 8; and
(9) RCW 82.33A.020 (Consulting with Washington economic development
commission) and 2007 c 232 s 9 & 1996 c 152 s 4.
Sec. 201 RCW 28B.50.902 and 2011 1st sp.s. c 14 s 6 are each
amended to read as follows:
(1) The college board, in consultation with business, industry,
labor, the workforce training and education coordinating board, the
department of commerce, the employment security department, and
community and technical colleges, shall designate centers of excellence
and allocate funds to existing and new centers of excellence based on
a competitive basis.
(2) Eligible applicants for the program established under this
section include community and technical colleges. Priority shall be
given to applicants that have an established education and training
program serving the targeted industry and that have in their home
district or region an industry cluster with the same targeted industry
at its core.
(3) It is the role of centers of excellence to employ strategies
to:
(a) Create educational efficiencies;
(b) Build a diverse, competitive workforce for strategic
industries;
(c) Maintain an institutional reputation for innovation and
responsiveness;
(d) Develop innovative curriculum and means of delivering education
and training;
(e) Act as brokers of information and resources related to
community and technical college education and training and assistance
available for firms in a targeted industry((, including working with
innovate Washington to develop methods to identify businesses within a
targeted industry that could benefit from the services offered by
innovate Washington under chapter 43.333 RCW)); and
(f) Serve as partners with workforce development councils,
associate development organizations, and other workforce and economic
development organizations.
(4) Examples of strategies under subsection (3) of this section
include but are not limited to: Sharing curriculum and other
instructional resources, to ensure cost savings to the system;
delivering collaborative certificate and degree programs; and holding
statewide summits, seminars, conferences, and workshops on industry
trends and best practices in community and technical college education
and training.
Sec. 202 RCW 42.30.110 and 2011 1st sp.s. c 14 s 14 are each
amended to read as follows:
(1) Nothing contained in this chapter may be construed to prevent
a governing body from holding an executive session during a regular or
special meeting:
(a) To consider matters affecting national security;
(b) To consider the selection of a site or the acquisition of real
estate by lease or purchase when public knowledge regarding such
consideration would cause a likelihood of increased price;
(c) To consider the minimum price at which real estate will be
offered for sale or lease when public knowledge regarding such
consideration would cause a likelihood of decreased price. However,
final action selling or leasing public property shall be taken in a
meeting open to the public;
(d) To review negotiations on the performance of publicly bid
contracts when public knowledge regarding such consideration would
cause a likelihood of increased costs;
(e) To consider, in the case of an export trading company,
financial and commercial information supplied by private persons to the
export trading company;
(f) To receive and evaluate complaints or charges brought against
a public officer or employee. However, upon the request of such
officer or employee, a public hearing or a meeting open to the public
shall be conducted upon such complaint or charge;
(g) To evaluate the qualifications of an applicant for public
employment or to review the performance of a public employee. However,
subject to RCW 42.30.140(4), discussion by a governing body of
salaries, wages, and other conditions of employment to be generally
applied within the agency shall occur in a meeting open to the public,
and when a governing body elects to take final action hiring, setting
the salary of an individual employee or class of employees, or
discharging or disciplining an employee, that action shall be taken in
a meeting open to the public;
(h) To evaluate the qualifications of a candidate for appointment
to elective office. However, any interview of such candidate and final
action appointing a candidate to elective office shall be in a meeting
open to the public;
(i) To discuss with legal counsel representing the agency matters
relating to agency enforcement actions, or to discuss with legal
counsel representing the agency litigation or potential litigation to
which the agency, the governing body, or a member acting in an official
capacity is, or is likely to become, a party, when public knowledge
regarding the discussion is likely to result in an adverse legal or
financial consequence to the agency.
This subsection (1)(i) does not permit a governing body to hold an
executive session solely because an attorney representing the agency is
present. For purposes of this subsection (1)(i), "potential
litigation" means matters protected by RPC 1.6 or RCW 5.60.060(2)(a)
concerning:
(i) Litigation that has been specifically threatened to which the
agency, the governing body, or a member acting in an official capacity
is, or is likely to become, a party;
(ii) Litigation that the agency reasonably believes may be
commenced by or against the agency, the governing body, or a member
acting in an official capacity; or
(iii) Litigation or legal risks of a proposed action or current
practice that the agency has identified when public discussion of the
litigation or legal risks is likely to result in an adverse legal or
financial consequence to the agency;
(j) To consider, in the case of the state library commission or its
advisory bodies, western library network prices, products, equipment,
and services, when such discussion would be likely to adversely affect
the network's ability to conduct business in a competitive economic
climate. However, final action on these matters shall be taken in a
meeting open to the public;
(k) To consider, in the case of the state investment board,
financial and commercial information when the information relates to
the investment of public trust or retirement funds and when public
knowledge regarding the discussion would result in loss to such funds
or in private loss to the providers of this information;
(l) To consider proprietary or confidential nonpublished
information related to the development, acquisition, or implementation
of state purchased health care services as provided in RCW 41.05.026;
(m) To consider in the case of the life sciences discovery fund
authority, the substance of grant applications and grant awards when
public knowledge regarding the discussion would reasonably be expected
to result in private loss to the providers of this information;
(n) To consider in the case of a health sciences and services
authority, the substance of grant applications and grant awards when
public knowledge regarding the discussion would reasonably be expected
to result in private loss to the providers of this information((;)).
(o) To consider in the case of innovate Washington, the substance
of grant or loan applications and grant or loan awards if public
knowledge regarding the discussion would reasonably be expected to
result in private loss to the providers of this information
(2) Before convening in executive session, the presiding officer of
a governing body shall publicly announce the purpose for excluding the
public from the meeting place, and the time when the executive session
will be concluded. The executive session may be extended to a stated
later time by announcement of the presiding officer.
Sec. 203 RCW 42.56.270 and 2011 1st sp.s. c 14 s 15 are each
amended to read as follows:
The following financial, commercial, and proprietary information is
exempt from disclosure under this chapter:
(1) Valuable formulae, designs, drawings, computer source code or
object code, and research data obtained by any agency within five years
of the request for disclosure when disclosure would produce private
gain and public loss;
(2) Financial information supplied by or on behalf of a person,
firm, or corporation for the purpose of qualifying to submit a bid or
proposal for (a) a ferry system construction or repair contract as
required by RCW 47.60.680 through 47.60.750 or (b) highway construction
or improvement as required by RCW 47.28.070;
(3) Financial and commercial information and records supplied by
private persons pertaining to export services provided under chapters
43.163 and 53.31 RCW, and by persons pertaining to export projects
under RCW 43.23.035;
(4) Financial and commercial information and records supplied by
businesses or individuals during application for loans or program
services provided by chapters 43.325, 43.163, 43.160, 43.330, and
43.168 RCW, or during application for economic development loans or
program services provided by any local agency;
(5) Financial information, business plans, examination reports, and
any information produced or obtained in evaluating or examining a
business and industrial development corporation organized or seeking
certification under chapter 31.24 RCW;
(6) Financial and commercial information supplied to the state
investment board by any person when the information relates to the
investment of public trust or retirement funds and when disclosure
would result in loss to such funds or in private loss to the providers
of this information;
(7) Financial and valuable trade information under RCW 51.36.120;
(8) Financial, commercial, operations, and technical and research
information and data submitted to or obtained by the clean Washington
center in applications for, or delivery of, program services under
chapter 70.95H RCW;
(9) Financial and commercial information requested by the public
stadium authority from any person or organization that leases or uses
the stadium and exhibition center as defined in RCW 36.102.010;
(10)(a) Financial information, including but not limited to account
numbers and values, and other identification numbers supplied by or on
behalf of a person, firm, corporation, limited liability company,
partnership, or other entity related to an application for a horse
racing license submitted pursuant to RCW 67.16.260(1)(b), liquor
license, gambling license, or lottery retail license;
(b) Internal control documents, independent auditors' reports and
financial statements, and supporting documents: (i) Of house-banked
social card game licensees required by the gambling commission pursuant
to rules adopted under chapter 9.46 RCW; or (ii) submitted by tribes
with an approved tribal/state compact for class III gaming;
(11) Proprietary data, trade secrets, or other information that
relates to: (a) A vendor's unique methods of conducting business; (b)
data unique to the product or services of the vendor; or (c)
determining prices or rates to be charged for services, submitted by
any vendor to the department of social and health services for purposes
of the development, acquisition, or implementation of state purchased
health care as defined in RCW 41.05.011;
(12)(a) When supplied to and in the records of the department of
commerce:
(i) Financial and proprietary information collected from any person
and provided to the department of commerce pursuant to RCW
43.330.050(8); and
(ii) Financial or proprietary information collected from any person
and provided to the department of commerce or the office of the
governor in connection with the siting, recruitment, expansion,
retention, or relocation of that person's business and until a siting
decision is made, identifying information of any person supplying
information under this subsection and the locations being considered
for siting, relocation, or expansion of a business;
(b) When developed by the department of commerce based on
information as described in (a)(i) of this subsection, any work product
is not exempt from disclosure;
(c) For the purposes of this subsection, "siting decision" means
the decision to acquire or not to acquire a site;
(d) If there is no written contact for a period of sixty days to
the department of commerce from a person connected with siting,
recruitment, expansion, retention, or relocation of that person's
business, information described in (a)(ii) of this subsection will be
available to the public under this chapter;
(13) Financial and proprietary information submitted to or obtained
by the department of ecology or the authority created under chapter
70.95N RCW to implement chapter 70.95N RCW;
(14) Financial, commercial, operations, and technical and research
information and data submitted to or obtained by the life sciences
discovery fund authority in applications for, or delivery of, grants
under chapter 43.350 RCW, to the extent that such information, if
revealed, would reasonably be expected to result in private loss to the
providers of this information;
(15) Financial and commercial information provided as evidence to
the department of licensing as required by RCW 19.112.110 or
19.112.120, except information disclosed in aggregate form that does
not permit the identification of information related to individual fuel
licensees;
(16) Any production records, mineral assessments, and trade secrets
submitted by a permit holder, mine operator, or landowner to the
department of natural resources under RCW 78.44.085;
(17)(a) Farm plans developed by conservation districts, unless
permission to release the farm plan is granted by the landowner or
operator who requested the plan, or the farm plan is used for the
application or issuance of a permit;
(b) Farm plans developed under chapter 90.48 RCW and not under the
federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject to
RCW 42.56.610 and 90.64.190;
(18) Financial, commercial, operations, and technical and research
information and data submitted to or obtained by a health sciences and
services authority in applications for, or delivery of, grants under
RCW 35.104.010 through 35.104.060, to the extent that such information,
if revealed, would reasonably be expected to result in private loss to
providers of this information;
(19) Information gathered under chapter 19.85 RCW or RCW 34.05.328
that can be identified to a particular business; and
(20) Financial and commercial information submitted to or obtained
by the University of Washington, other than information the university
is required to disclose under RCW 28B.20.150, when the information
relates to investments in private funds, to the extent that such
information, if revealed, would reasonably be expected to result in
loss to the University of Washington consolidated endowment fund or to
result in private loss to the providers of this information((; and)).
(21) Financial, commercial, operations, and technical and research
information and data submitted to or obtained by innovate Washington in
applications for, or delivery of, grants and loans under chapter 43.333
RCW, to the extent that such information, if revealed, would reasonably
be expected to result in private loss to the providers of this
information
Sec. 204 2012 c 63 s 1 (uncodified) is amended to read as
follows:
The legislature finds that Washington is becoming a leader in the
development and commercialization of aviation biofuels due to its
strong tradition of market innovation, a concentrated demand for
sustainable aviation fuels, leading expertise and research capacity, an
established aviation manufacturing sector, and the availability of a
diverse range of feedstocks for the production of biofuels. The
legislature also finds that the development of aviation biofuels has
the potential to reduce dependence on foreign sources of fossil fuels,
reduce greenhouse gas emissions, and promote economic development and
jobs in Washington. The legislature intends to support the development
of commercial-scale aviation biofuels production facilities in
Washington by facilitating and streamlining the permitting process for
new facilities and the expansion of existing facilities and by
providing access to low-cost financing through the issuance of revenue
bonds.
The legislature finds that the 2012 Washington state energy
strategy calls for a targeted, strategic policy focus on sustainable
aviation biofuels to encourage the realization of Washington's
potential. The legislature also finds that a regional stakeholder
effort to explore the opportunities and challenges surrounding the
production of sustainable aviation fuels, known as sustainable aviation
biofuels northwest, urged policymakers in the Northwest to develop
supportive public policies that will jump start the industry, attract
investment, and accelerate industry growth. In order to provide focus
and develop policy recommendations to support the sustainable aviation
biofuels sector in Washington, the legislature intends to establish a
sustainable aviation biofuels work group. ((Additionally, the
legislature intends Innovate Washington, designated in 2011 as the lead
agency for coordinating clean energy-related initiatives targeted at
growing the clean energy sector, to convene the appropriate
stakeholders and facilitate the opportunity for the state to realize
the full economic growth impact to the state's economy.))
Sec. 205 RCW 43.333.030 and 2011 1st sp.s. c 14 s 4 are each
amended to read as follows:
The investing in innovation account is created in the custody of
the state treasurer to receive state and federal funds, grants, private
gifts, or contributions to further the purpose of ((innovate
Washington)) growing the technology and innovation-based sectors of the
state and supporting the commercialization of intellectual property and
the manufacturing of innovative products in the state. Expenditures
from the account may be used only for the purposes of the investing in
innovation programs established in chapter 70.210 RCW ((and any other
purpose consistent with this chapter)). Only the ((executive))
director of ((innovate Washington)) commerce or the ((executive))
director's designee may authorize expenditures from the account. The
account is subject to allotment procedures under chapter 43.88 RCW, but
an appropriation is not required for expenditures.
Sec. 206 RCW 43.333.040 and 2011 1st sp.s. c 14 s 3 are each
amended to read as follows:
(1) To increase participation by Washington state small business
innovators in federal small business research programs, ((innovate
Washington)) the department of commerce shall provide or contract for
the provision of a small business innovation assistance program. The
program must include a proposal review process and must train and
assist Washington small business innovators to win awards from federal
small business research programs. The program must collaborate with
small business development centers, entrepreneur-in-residence programs,
and other appropriate sources of technical assistance to ensure that
small business innovators also receive the planning, counseling, and
support services necessary to expand their businesses and protect their
intellectual property.
(2) In operating the program, ((innovate Washington)) the
department of commerce or its contractor must give priority to first-time applicants to the federal small business research programs, new
businesses, and firms with fewer than ten employees, and may charge a
fee for its services.
(3) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Federal small business research programs" means the programs,
operating pursuant to the small business innovation development act of
1982, P.L. 97-219, and the small business technology transfer act of
1992, P.L. 102-564, title II, that provide funds to small businesses to
conduct research having commercial application.
(b) "Small business" means a corporation, partnership, sole
proprietorship, or individual, operating a business for profit, with
two hundred fifty employees or fewer, including employees employed in
a subsidiary or affiliated corporation, that otherwise meets the
requirements of federal small business research programs.
Sec. 207 RCW 43.333.050 and 2011 1st sp.s. c 14 s 13 are each
amended to read as follows:
(1) ((Innovate Washington shall)) The department of commerce must
contract with an entity with a principal office located in Washington
with experience facilitating interaction between the state's higher
education institutions and the state's technology-based companies on
commercialization and technology transfer activities to administer the
investing in innovation program.
(2) Not more than one percent of the available funds from the
investing in innovation account may be used for administrative costs of
the program.
Sec. 208 RCW 43.333.800 and 2012 c 63 s 4 are each amended to
read as follows:
(1) ((Innovate Washington)) The department of commerce shall
convene a sustainable aviation biofuels work group.
(2) The purpose of the work group is to:
(a) Further the development of sustainable aviation fuel as a
productive industry in Washington, using as a foundation the regional
assessment prepared by the collaborative known as the sustainable
aviation fuels northwest;
(b) Facilitate communication and coordination among aviation
biofuels stakeholders;
(c) Provide a forum for discussion and problem-solving regarding
potential and current barriers related to technology development,
production, distribution, supply chain development, and
commercialization of aviation biofuels; and
(d) Provide recommendations to the legislature on potential
legislation that will facilitate the technology development,
production, distribution, and commercialization of aviation biofuels.
(3) ((Innovate Washington)) The department of commerce, in
consultation with the legislative members, shall designate work group
members that represent sectors involved in sustainable aviation
biofuels research, development, production, and utilization. The work
group shall include but not be limited to representatives from the
following:
(a) The Washington state senate;
(b) The Washington state house of representatives;
(c) An agriculture advocacy organization;
(d) An airline operator;
(e) An airplane manufacturer;
(f) An airport operator located in western Washington and an
airport operator located in eastern Washington;
(g) Biofuels feedstock producers;
(h) Two biofuels producers;
(i) The department of agriculture;
(j) ((The department of commerce;)) The department of natural resources;
(k)
(((l))) (k) A sustainable energy advocacy organization;
(((m))) (l) The United States department of defense;
(((n))) (m) The University of Washington;
(((o))) (n) Washington State University; and
(((p))) (o) The Pacific Northwest national laboratory((; and)).
(q) A member of the board of directors of Innovate Washington
(4) The work group shall choose its chair from among its
membership.
(5) The work group may not meet more than twice a year.
(6) The work group shall provide an annual update of its findings
and recommendations to the governor and the appropriate committees of
the legislature by December 1st of each year through 2014.
(7) This section expires June 30, 2015.
Sec. 209 RCW 70.210.020 and 2011 1st sp.s. c 14 s 8 are each
amended to read as follows:
((The definitions in this section apply throughout)) As used in
this chapter "department" means the department of commerce unless the
context clearly requires otherwise.
(((1) "Board" means the innovate Washington board of directors.))
(3) [(2)] "Innovate Washington" means the agency created in RCW
43.333.010.
Sec. 210 RCW 70.210.030 and 2011 1st sp.s. c 14 s 9 are each
amended to read as follows:
(1) The investing in innovation program is established.
(2) ((Innovate Washington)) Through a competitive process, the
department must contract with an entity with a principal office located
in Washington with experience facilitating interaction between the
state's higher education institutions and the state's technology-based
companies on commercialization and technology transfer activities to
administer the investing in innovation program.
(3) The contractor of the department shall periodically make
strategic assessments of the types of investments in research,
technology, and industrial development in this state that would likely
create new products, jobs, and business opportunities and produce the
most beneficial long-term improvements to the lives and health of the
citizens of the state. The assessments shall be available to the
public and shall be used to guide decisions on awarding funds under
this chapter.
Sec. 211 RCW 70.210.040 and 2011 1st sp.s. c 14 s 10 are each
amended to read as follows:
The ((board)) department or the contractor of the department shall:
(1) Develop criteria for the awarding of loans or grants to
qualifying universities, institutions, businesses, or individuals;
(2) Make decisions regarding distribution of funds;
(3) In making funding decisions and to the extent that economic
impact is not diminished, provide priority to enterprises that:
(a) Were created through, and have existing intellectual property
agreements in place with, public and private research institutions in
the state; and
(b) Intend to produce new products or services, develop or expand
facilities, or manufacture in the state; and
(4) Specify in contracts awarding funds that recipients must
utilize funding received to support operations in the state of
Washington and must subsequently report on the impact of their
research, development, and any subsequent production activities within
Washington for a period of ten years following the award of funds, and
that a failure to comply with this requirement will obligate the
recipient to return the amount of the award plus interest as determined
by the ((board)) department or the contractor of the department.
Sec. 212 RCW 70.210.050 and 2011 1st sp.s. c 14 s 11 are each
amended to read as follows:
(1) The ((board)) department or the contractor of the department
may accept grant and loan proposals and establish a competitive process
for the awarding of grants and loans.
(2) The ((board)) department or the contractor of the department
shall establish a peer review committee to include ((board members,))
scientists, engineers, and individuals with specific recognized
expertise. The peer review committee shall provide to the ((board))
department or the contractor of the department an independent peer
review of all proposals determined to be competitive for a loan or
grant award that are submitted to the ((board)) department or the
contractor of the department.
(3) In the awarding of grants and loans, priority shall be given to
proposals that leverage additional private and public funding
resources.
(((4) Innovate Washington may not be a direct recipient of funding
under this chapter.))
Sec. 213 RCW 70.210.060 and 2011 1st sp.s. c 14 s 12 are each
amended to read as follows:
The ((board)) department shall establish performance benchmarks
against which the program will be evaluated. The program shall be
reviewed periodically by the ((board)) department. The ((board))
department shall report annually to the appropriate standing committees
of the legislature on loans made and grants awarded and as appropriate
on program reviews conducted by the ((board)) department.
NEW SECTION. Sec. 214 The following acts or parts of acts are
each repealed:
(1) RCW 41.06.0711 (Innovate Washington -- Certain personnel exempted
from chapter) and 2011 1st sp.s. c 14 s 5;
(2) RCW 43.333.010 (Innovate Washington -- Created -- Mission -- Transfer
of administrative responsibilities for facilities located at the
Washington technology center and Spokane intercollegiate research and
technology institute -- Five-year business plan requirements) and 2011
1st sp.s. c 14 s 1; and
(3) RCW 43.333.020 (Board of directors -- Composition -- Meetings--Duties) and 2011 1st sp.s. c 14 s 2.
NEW SECTION. Sec. 215 A new section is added to chapter 43.333
RCW to read as follows:
(1) Innovate Washington is hereby abolished and its powers, duties,
and functions are hereby transferred to the department of commerce.
(2)(a) All reports, documents, surveys, books, records, files,
papers, or written material in the possession of Innovate Washington
shall be delivered to the department of commerce. All cabinets,
furniture, office equipment, motor vehicles, and other tangible
property employed by Innovate Washington shall be made available to the
department of commerce. All funds, credits, or other assets held by
Innovate Washington shall be assigned to the department of commerce.
(b) If any question arises as to the transfer of any 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) 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.
Sec. 301 RCW 43.374.010 and 2010 1st sp.s. c 13 s 2 are each
amended to read as follows:
(1) The Washington global health technologies and product
development competitiveness program is created.
(2)(((a) The program must be administered by a nonprofit
organization exempt from income taxation under 26 U.S.C. Sec. 501(c)(6)
of the federal internal revenue code whose board of directors is
appointed by the governor. The governor must make the appointments
after consultation with a statewide alliance of global health research,
nonprofit, and private entities. The board consists of the following
members:)) In addition to powers and duties prescribed in chapter 43.350
RCW, the life sciences discovery fund authority shall administer or
contract with a qualified nonprofit organization to administer the
Washington global health technologies and product development
competitiveness program.
(i) Three members representing private companies engaged in the
provision of global health products or services;
(ii) Three members representing nonprofit organizations supporting
global health research or providing global health products or services;
(iii) Three members representing public research institutions
engaged in global health research and education; and
(iv) One member who is a former elected official.
(b) The governor must appoint the chair of the board from among the
members. The governor must appoint the members to staggered terms and
each appointment may not last more than three years, but an appointee
may serve more than one term.
(3) The board must contract with the department of commerce for
management services to assist the board in implementing the program.
(4)
(3) The ((board)) life sciences discovery fund authority or the
contractor of the authority must solicit and receive gifts, grants,
bequests, royalty payments, licensing income, and other funds from
businesses, foundations, and the federal government to promote the
development and delivery of global health technologies and products.
All federal funds received must be deposited in the Washington global
health technologies and product development account created in RCW
43.374.020. All remaining nonstate funds received must be deposited in
an account that the ((board)) authority creates and administers to
carry out the purposes of this section. Expenditures from the account
created by the ((board)) authority may be used only for funding
activities of the program created in this section. ((Of the total
amounts deposited into these accounts, no more than three percent of
the total funds may be used for the department of commerce's management
services and administrative expenses related to the program created in
this section.)) (4) The ((
(5)board)) life sciences discovery fund authority or
the contractor of the authority must establish eligibility criteria for
global health technologies and product development grants and adopt
policies and procedures to facilitate the orderly process of grant
application, review, and reward.
(((6))) (5) In making grants to entities pursuant to contract for
the development, production, promotion, and delivery of global health
technologies and products, the ((board)) life sciences discovery fund
authority or the contractor of the authority must consider the
following:
(a) The quality of the proposed research or the proposed technical
assistance in product development or production process design. Any
grant funds awarded for research activities must be awarded for
nonbasic research which will assist in commercialization or manufacture
of global health technologies;
(b) The potential for the grant recipient to improve global health
outcomes;
(c) The potential for the grant to leverage additional funding for
the development of global health technologies and products;
(d) The potential for the grant to stimulate, or promote technical
skills training for, employment in the development of global health
technologies in the state;
(e) The willingness of the grant recipient, when appropriate, to
enter into royalty or licensing income agreements with the ((board))
authority or the contractor of the authority; and
(f) Any other factors, as the ((board)) authority or the contractor
of the authority determines.
(((7))) (6) Grant contracts must specify that award recipients must
conduct their research, development, and any subsequent production
activities within Washington, with the exception of activities such as
clinical trials that must be carried out in developing countries, and
that a failure to comply with this requirement will obligate the
recipient to return the amount of the award plus interest as determined
by the ((board)) life sciences discovery fund authority or the
contractor of the authority.
(((8) Upon the recommendation of the Washington economic
development commission, the board)) (7) The life sciences discovery
fund authority or the contractor of the authority may provide funding
for the recruitment and employment by public research institutions and
global health nonprofit organizations in the state((,)) of global
health researchers with a history of commercialization of global health
technologies.
(((9))) (8) Each project receiving a grant under this section must
report information to the ((board)) life sciences discovery fund
authority or the contractor of the authority in the format and at the
intervals as the ((board)) authority or the contractor of the authority
requires to provide accountability and to evaluate the effectiveness of
the program. The information reported must include the amount of
funding received; the funding, if any, leveraged by the grant; the
number and types of jobs created as a result of the grant; and any
other information that the ((board)) authority or the contractor of the
authority requires. The ((board)) authority or the contractor of the
authority must use the information to prepare an ((annual)) evaluation
of the program for a report to the ((appropriate)) economic development
committees of the legislature and the governor, due annually by
December 31st beginning December 1, ((2012)) 2015.
Sec. 302 RCW 43.374.020 and 2010 1st sp.s. c 13 s 3 are each
amended to read as follows:
The Washington global health technologies and product development
account is created in the custody of the state treasurer. Only the
((board of directors of the Washington global health technologies and
product development competitiveness program)) life sciences discovery
fund authority board as defined in RCW 43.350.010 or the board's
designee may authorize expenditures from the account. All federal
moneys received from the solicitations required in RCW 43.374.010 and
all state funds appropriated for the specific purposes of the
Washington global health technologies and product development
competitiveness program must be deposited in the account. Expenditures
from the account may be used only for funding activities of the
Washington global health technologies and product development
competitiveness program created in RCW 43.374.010. The account is
subject to the allotment procedures under chapter 43.88 RCW, but an
appropriation is not required for expenditures.
NEW SECTION. Sec. 401 The following acts or parts of acts are
each repealed:
(1) RCW 43.336.010 (Definitions) and 2009 c 565 s 42 & 2007 c 228
s 101;
(2) RCW 43.336.020 (Commission created -- Composition -- Terms--Executive director -- Rule-making authority) and 2011 1st sp.s. c 50 s
957, 2009 c 549 s 5178, & 2007 c 228 s 102;
(3) RCW 43.336.030 (Tourism industry expansion -- Coordinated
program -- Strategic plan -- Tourism marketing plan) and 2007 c 228 s 103;
(4) RCW 43.336.040 (Tourism competitive grant program) and 2007 c
228 s 104;
(5) RCW 43.336.050 (Tourism enterprise account) and 2011 c 5 s 914
& 2007 c 228 s 105;
(6) RCW 43.336.060 (Tourism development program -- Report to the
legislature) and 2009 c 518 s 13, 2007 c 228 s 107, & 1998 c 299 s 5;
and
(7) RCW 43.336.900 (Part headings not law -- 2007 c 228) and 2007 c
228 s 204.
NEW SECTION. Sec. 501 Section 105 of this act expires June 30,
2039.
NEW SECTION. Sec. 502 Section 106 of this act expires on the
date the requirements set out in section 7, chapter 36, Laws of 2012
are met.
NEW SECTION. Sec. 503 Section 107 of this act takes effect on
the date the requirements set out in section 7, chapter 36, Laws of
2012 are met.