Z-427                 _______________________________________________

                                                   HOUSE BILL NO. 1293

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives G. Fisher, Cantwell, Doty, Schoon, Rasmussen, Raiter, Moyer, Rector, R. King, Todd, McLean and P. King; by request of Director of Trade and Economic Development

Read first time 1/20/89 and referred to Committee on Trade & Economic Development.

AN ACT Relating to the community economic revitalization board; and amending RCW 43.160.060.

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

        Sec. 1.  Section 6, chapter 40, Laws of 1982 1st ex. sess. as last amended by section 5, chapter 422, Laws of 1987 and RCW 43.160.060 are each amended to read as follows:

          The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the acquisition, 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.

          Application for funds shall be made in the form and manner as the board may prescribe.  In making grants or loans the board shall conform to the following requirements:

          (1) The board shall not make a grant or loan:

          (a)  For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

          (b)  For any project that probably would result in a development or expansion that would displace existing jobs in any other community in the state.

          (c)  For the acquisition of real property, including buildings and other fixtures which are a part of real property.

          (2) The board shall only make grants or loans:

          (a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, ((and)) industrial distribution, and destination tourist resorts or (ii) which substantially support the trading of goods or services outside of the state's borders.

          (b) For projects which it finds 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.

          (c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

          (3) The board shall prioritize each proposed project according to the number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located.  As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

          (4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

          Before any loan or grant application is approved, the political subdivision seeking the loan or grant 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.