H-3901              _______________________________________________

                                                   HOUSE BILL NO. 1925

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Holm, Vekich, Cooper, Basich, Moyer, Pruitt, Wineberry and P. King

Read first time 1/29/88 and referred to Committee on Trade & Economic Development.

AN ACT Relating to local school-based enterprise development; adding a new section to chapter 43.63A RCW; creating new sections; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1.     The legislature recognizes the importance of new and growing enterprises to the vitality of the state economy.  The majority of new jobs in the state are created by new small enterprises, and the state has an interest in fostering an environment in which such enterprises can prosper and grow.  The legislature further recognizes the importance of education in creating an economic climate characterized by experimentation and flexibility.  The development of local school-based incubators of small student-developed enterprises can increase student self-reliance, nurture entrepreneurial skills, and help identify and respond to the unmet needs of local communities.  The value of local school-based incubators is especially important in economically distressed communities.

NEW SECTION. Sec. 2.  A new section is added to chapter 43.63A RCW to read as follows:

          (1) The local education and enterprise development program is established  in the department of community development.  The program shall be developed in conjunction with the office of the superintendent of public instruction.  The department is directed to contract with a local school district in an economically distressed area to operate the program.  For the purposes of this section, "economically distressed area" means a county designated as economically distressed as defined in RCW 82.60.020(3).

          The program shall be operated in one or more secondary schools having an enrollment of over one hundred students in an economically distressed area.  The program shall undertake activities to include but not be limited to the following:

          (a) Conduct a student-conducted survey of unmet local market needs;

          (b) Provide training in business skills to students to assist them to operate businesses; and

          (c) Assist students to develop and operate school-based businesses that meet unmet local market needs.

          (2) The program shall utilize the services of local associate development organizations, the business assistance center established under RCW 43.31.083, the small business development center, local vocational education advisory committees of management and labor, and local governments.

          (3) School-based businesses developed under this section may be sold to students upon graduation, or to others in the business community.  The sales shall be at fair market value.  The proceeds of such sales shall be deposited in the state general fund to be used solely to fund the program under this section.

NEW SECTION. Sec. 3.     The department of community development and the local school district shall report to the trade and economic development committee of the house of representatives and the economic development and labor committee of the senate on the progress of the program under section 2 of this act by December 31, 1989.

NEW SECTION. Sec. 4.     The sum of forty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the general fund to the department of community development for the purposes of this act.

NEW SECTION. Sec. 5.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.