AN ACT Relating to economic diversification in the Tri-Cities region; adding a new chapter to Title 43 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that:

(1) Cutbacks in federal funds and programs to the Tri-Cities pose a substantial threat to the region and the state with massive lay-offs, loss of personal income, and declines in state revenues;

(2) The Tri-Cities is of critical significance to the state because of its leading role in the nuclear industry and its concentration of excellent scientists and engineers. Because of the presence of this highly trained workforce, this region requires a special state effort to diversify the local economy;

(3) There are key opportunities to broaden the economic base in the Tri-Cities including agriculture, technology transfer, tourism, and regional exports; and

(4) A coordinated state, local, federal, and private sector effort offers the greatest potential to promote economic diversification and to provide support for new projects within the region.

NEW SECTION. Sec. 2. As used in this chapter:

(1) "Department" means the department of trade and economic development.

(2) "Director" means the director of the department.

NEW SECTION. Sec. 3. The department shall begin implementation of the priority goals established by the Tri-Cities diversification study conducted under chapter 501, Laws of 1987, as follows:

(1) To retain and expand existing businesses and industries within the region;

(2) To attract businesses and industries to the region that will provide new jobs;

(3) To encourage the formation of new businesses and industries in the region; and

(4) To assist in the development of a regional infrastructure favorable to economic diversification.

In evaluating these goals, the department, in conjunction with a Tri-Cities advisory committee, shall determine which objectives of these priority goals are most likely to lead to economic diversification. Consideration shall be given to potential jobs and income benefits, generation of additional fiscal support, increased private sector participation, and market forces supporting the proposed objectives. The department shall consider such additional studies and governmental agencies which could support the priority goals determined under this section.

NEW SECTION. Sec. 4. The department shall:

(1) Designate a project manager within the department to facilitate the department's activities within the Tri-Cities region. The manager's responsibilities shall include but not be limited to:

(a) Seeking to increase the use of existing state economic development programs in the Tri-Cities region;

(b) Helping to locate additional funds to be used for diversification activities;

(d) Coordinating evaluation of state diversification in the region.

(2) Conduct or contract for feasibility studies in areas requiring further review as developed in section 3 of this act including but not limited to an export assistance program and technology transfer. Each study shall be supported to the maximum extent possible by additional private, local, and federal funds. Each study should at a minimum include costs and potential benefits, likelihood of success, further fiscal support, and market niches for the proposed program.

(3) Provide matching grants to local governments for projects within the region to promote the growth of recreational industries, such as tourist information centers, and waterfront development. The department shall work with the department of community development and a Tri-Cities advisory committee in prioritizing and providing matching grants to the region.

NEW SECTION. Sec. 5. The department of agriculture in conjunction with Washington State University shall:

(1) Establish a Tri-Cities agribusiness development program in cooperation with the IMPACT program, the Tri-Cities industrial development council, and the agricultural extension program of Washington State University.

(2) Evaluate the means for increasing the value of the wine industry to the Tri-Cities and for the region to become a principal center for the wine industry.

NEW SECTION. Sec. 6. The department, in conjunction with the Washington technology center, and in consultation with other university institutions and private sector laboratories shall establish a program to facilitate technology transfer from the substantial research base in the region to local businesses. In all efforts, the department shall seek to protect the rights and confidentiality of those involved in the research and technology transfer. The department shall:

(1) Establish a technology transfer team involving key representatives from the following areas: Venture capital with expertise in early-stage investments, legal profession with expertise in licenses and patents, university and private sector applied research, and entrepreneurs with expertise in managing new product development.

(2) Conduct an initial assessment in consultation with the technology transfer team of the most promising research that could be transferred to commercial production, including but not limited to vitrification technologies in the application of hazardous and solid waste management, and superconductors in the application of energy storage devices.

(3) Designate responsible parties and develop methods to facilitate research and product development, market patents and licenses, increase the availability of seed capital, and build necessary business and management skills to advance technology transfer in the Tri-Cities region.

NEW SECTION. Sec. 7. The department in consultation with the Tri-Cities university center shall conduct a study on the feasibility of using heat generated by existing nuclear facilities for commercial industrial applications. The state's funding for this study is contingent upon and shall be no more than one-third of the federal funds provided for this study and shall not exceed fifty thousand dollars. Responsibility for this study shall be transferred to the institution of higher education designated by the legislature as the resident institution for the Tri-Cities if such a designation is made.

NEW SECTION. Sec. 8. The department shall report back to the legislature by December 31, 1988, on the success of activities under this act.

NEW SECTION. Sec. 9. Sections 1 through 7 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 10. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.