AN ACT Relating to the rural affairs advisory committee; adding new sections to chapter 43.63A RCW; adding new sections to chapter 43.131 RCW; making appropriations; and declaring an emergency.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS. (1) The legislature finds that rural areas of Washington are a vital component of the state's economy and that in recent years numerous rural communities have undergone severe economic downturns resulting in dramatic job dislocation. It is of considerable importance that these areas receive sufficient resources to ensure that the economic vitality of the region is preserved. In addition, maintenance of a balanced state-wide economy is dependent on rural areas being a partner in growth and continuing to provide employment opportunities for the citizens of those regions.

(2) The legislature further finds that several state agencies administer numerous rural development programs and in order to ensure a maximum level of program effectiveness it is necessary to:

(a) Establish a rural affairs advisory committee which will facilitate and promote coordination of state services; and

(b) Undertake several ambitious and cooperative diversification projects to dramatically assist rural communities that are experiencing economic decline.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 1 through 19 of this act.

(1) "Committee" means the rural affairs advisory committee established under section 3 of this act.

(2) "Department" means the department of community development.

(3) "Project" means the rural economic diversification project established under section 8 of this act.

(4) "Rural area" means any community located in Washington state except those communities of ten thousand or greater population which are located within a standard metropolitan statistical area.

(5) "Traditional industries" means those industries that have historically provided the primary employment and income base to the region, including but not limited to, natural resource based industries, and agriculture.

(6) "Board" means the local development board established under section 12 of this act.

NEW SECTION. Sec. 3. COMMITTEE ESTABLISHED. There is established within the department the rural affairs advisory committee. The committee is charged with the responsibility of promoting coordination in the state's rural economic development efforts and providing policy direction with regards to economic stabilization, revitalization, and development in rural Washington.

NEW SECTION. Sec. 4. COMMITTEE COMPOSITION. The committee shall be appointed by the governor and consist of the following members: Two legislators, two public officials from rural areas of the state, two individuals representing traditional industries in rural areas, two individuals representing emerging businesses in rural areas, one person from a federal agency, two individuals from institutions of higher education, one representative of organized labor, two individuals representing community and economic development organizations, and two ex officio nonvoting members from the executive branch.

The members of the committee shall serve without compensation and shall be compensated for traveling expenses as provided for in chapter 43.03 RCW.

NEW SECTION. Sec. 5. COMMITTEE RESPONSIBILITIES. The committee shall have the following responsibilities and powers:

(1) Provide policy direction and promote coordination of the state's rural development programs;

(2) Provide a focal point for rural stabilization, revitalization, and development in the state;

(3) Research rural development issues;

(4) Evaluate the effectiveness of current state programs that serve rural areas and identify gaps and weaknesses in service;

(5) Advise state government agencies regarding revisions or additions to executive branch programs that will improve services to rural areas;

(6) Provide a public forum for discussion of rural issues;

(7) Disseminate information on rural matters and promote coordination of existing rural services;

(8) Act as an advocate and resource center for rural development efforts;

(9) Assist in promoting local leadership capacity; and

(10) Maintain and improve essential public services and facilities.

NEW SECTION. Sec. 6. COMMITTEE STAFF. The director of the department shall provide staff to the committee.

NEW SECTION. Sec. 7. COOPERATION OF STATE AGENCIES. State agencies with responsibilities that pertain to rural areas shall cooperate with the committee and assist it in accomplishing its legislative mandate.

NEW SECTION. Sec. 8. RURAL ECONOMIC DIVERSIFICATION PROJECTS ESTABLISHED. The department, in consultation with the committee, the departments of trade and economic development, agriculture, employment security, and other state agencies assisting rural economic development, shall coordinate the establishment and administration of two pilot rural economic diversification projects within the state based generally upon the 1988 tri-cities diversification act, chapter 42, Laws of 1988.

NEW SECTION. Sec. 9. GOALS OF THE RURAL ECONOMIC DIVERSIFICATION PROJECT. The goals of the committee in undertaking the projects shall include:

(1) Encouragement of formation of new businesses and industries in rural areas;

(2) Retention and expansion of existing businesses and industries within the region;

(3) Assist in the development of a regional infrastructure favorable to the economic diversification of the area;

(4) Coordination of targeted state agency programs in a project area; and

(5) Building local capacity to provide ongoing direction to economic diversification efforts with a major emphasis on local decision making.

NEW SECTION. Sec. 10. DIVERSIFICATION PROJECT IDENTIFICATION. (1) The department, in consultation with the committee, shall develop comprehensive guidelines for identification and administration of the projects established under section 8 of this act. Local governments or nonprofit local development organizations may submit applications to the department to participate in the projects. Any local government or entity requesting participation in the project must demonstrate the cooperation of a cross-section of the local community where the project is to take place, including business, labor, education and training, and other public sector agencies. Applications from regions, counties, or joint applications by several communities are encouraged. Preference shall be given to economically distressed areas as defined in RCW 43.165.010(3) (a) or (b).

(2) A project application to the department shall include but not be limited to:

(a) A list of individuals that are willing to act as a local advisory committee that will assist the department in the implementation of the project and be appointed under the provisions of section 12 of this act;

(b) A detailed description of the local economic situation;

(d) An outline of types of assistance needed.

(3) The department, in consultation with the committee, and other state agencies that assist in rural development shall distribute information regarding projects by August 1, 1989, and accept applications from rural communities starting on September 15, 1989. The department shall identify and undertake its first project by October 1, 1989.

NEW SECTION. Sec. 11. APPLICATION EVALUATION. In deciding which project to undertake, the department, in consultation with the committee, shall consider the following factors:

(1) The degree of economic distress in the community;

(2) Community initiative;

(3) Conditions for business opportunities;

(4) The resources available to conduct the project; and

(5) The feasibility of significantly impacting the community's economic condition, and its surrounding region.

NEW SECTION. Sec. 12. LOCAL DEVELOPMENT BOARD. (1) Upon the department designating a community as a project site, the chairperson of the department shall appoint a local development board in that community to assist the department in carrying out the project.

(2) The board shall include a broad representation of the community including, but not limited to, representatives of local business, labor organizations, local governments, visitor and convention bureaus, local education institutions, local associate development organizations, natural resource industries, local minority communities, and education.

(3) The department, in consultation with the board, may hire a local project manager who shall oversee the day-to-day activities of the local project and act as liaison with the state coordinator.

(4) The board shall review and recommend to the department for funding those proposals that best meet the local objectives for economic stabilization, revitalization, and development.

NEW SECTION. Sec. 13. DEVELOPMENT ACTIVITIES. In establishing a diversification project the department shall undertake, but shall not be limited to, one or more of the following development activities:

(1) Export promotion programs;

(2) Import substitution programs;

(3) Business and job retention programs;

(4) Tourism development;

(5) Training and retraining;

(6) Investment opportunities programs;

(7) Entrepreneur development programs;

(8) Increasing local leadership capacity;

(9) Improving or maintaining the health of local businesses;

(10) Encouragement of new entrepreneurial development; and

(11) Maintenance and improvement of essential public services and facilities.

NEW SECTION. Sec. 14. DEPARTMENT OVERSIGHT. The department, in consultation with the committee and other state agencies that assist rural development, shall be responsible for:

(1) Oversight and implementation of the project;

(2) A social and economic development impact statement;

(3) Coordination of multi-agency efforts;

(4) Acting as liaison with local governments, federal government, labor organizations, businesses, and civic groups.

NEW SECTION. Sec. 15. CONTRACTING. The department may contract for services as it deems necessary to carry out its duties and responsibilities.

NEW SECTION. Sec. 16. COMMITTEE REPORT. The committee shall provide the legislature and governor with an annual report on:

(1) The projects it has undertaken along with any recommendations and findings as to the success of the projects; and

(2) Its findings and recommendations on state rural development programs along with proposals to assist rural development activities within the state.

NEW SECTION. Sec. 17. Section captions as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 18. Sections 1 through 17 of this act are each added to chapter 43.63A RCW.

NEW SECTION. Sec. 19. APPROPRIATIONS. (1) The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the committee for the administration of its responsibilities under sections 1 through 6 of this act.

(2) The sum of four hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department for disbursal to the projects established under section 8 of this act. A maximum of ten percent of the moneys appropriated under this subsection may be expended for the department's administrative expenses.

NEW SECTION. Sec. 20. A new section is added to chapter 43.131 RCW to read as follows:

The rural affairs advisory committee and the rural economic diversification projects under sections 1 through 17 of this act shall terminate on June 30, 1994, as provided in section 21 of this act.

NEW SECTION. Sec. 21. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1995:

(1) Section 1, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 1 of this act);

(2) Section 2, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 2 of this act);

(3) Section 3, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 3 of this act);

(4) Section 4, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 4 of this act);

(5) Section 5, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 5 of this act);

(6) Section 6, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 6 of this act);

(7) Section 7, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 7 of this act);

(8) Section 8, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 8 of this act);

(9) Section 9, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 9 of this act);

(10) Section 10, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 10 of this act);

(11) Section 11, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 11 of this act);

(12) Section 12, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 12 of this act);

(13) Section 13, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 13 of this act);

(14) Section 14, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 14 of this act);

(15) Section 15, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 15 of this act);

(16) Section 16, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 16 of this act); and

(17) Section 17, chapter ---, Laws of 1989 and RCW 43.63A.--- (section 17 of this act).

NEW SECTION. Sec. 22. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.