AN ACT Relating to rural revitalization; amending RCW 67.28.210; amending section 14, chapter 42, Laws of 1988 (uncodified); adding new sections to chapter 43.63A RCW; adding new sections to chapter 43.131 RCW; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS. 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 job dislocation and high unemployment rates, and that such areas have been designated by the legislature as distressed communities. 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.

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:

(1) Coordinate state activities which will facilitate and promote effective delivery of state services; and

(2) Undertake several ambitious and cooperative development projects to 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 14 of this act.

(1) "Committee" means the rural revitalization interagency committee comprised of representatives of agencies that provide services to rural areas including but not limited to the departments of community development, trade and economic development, agriculture, employment security, labor and industries, department of natural resources, social and health services, transportation, the superintendent of public instruction, the presidents of the four-year institutions of higher education, a representative of the four-year private colleges, a representative of the state board of community colleges, other appropriate individuals, and a representative of the governor's office who will act as chair of the committee.

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

(3) "Project" means the rural revitalization project established under section 5 of this act.

(4) "Rural area" means any community located in Washington state except those communities located within the Seattle-Everett, Tacoma, and Portland-Vancouver standard metropolitan statistical areas.

(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, agriculture, and industries that receive federal funding.

(6) "Board" means the local revitalization board established under section 9 of this act.

NEW SECTION. Sec. 3. COMMITTEE RESPONSIBILITIES. The committee shall have the following responsibilities and powers:

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

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

(3) Selecting rural revitalization projects.

NEW SECTION. Sec. 4. 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. 5. RURAL REVITALIZATION PROJECTS ESTABLISHED. The department, in consultation with the committee, the northwest policy center, institute for public policy, and other state agencies that provide development services to rural areas shall generate a rural development plan, and coordinate the establishment and administration of rural revitalization projects within the state based generally upon the 1988 Tri-Cities diversification act, chapter 42, Laws of 1988.

NEW SECTION. Sec. 6. GOALS OF THE RURAL REVITALIZATION PROJECT. The goals of the rural revitalization projects shall include:

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

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

(3) Assistance in the maintenance or development of infrastructure conducive to the revitalization of the area including but not limited to health care services, housing, roads, sewers, and other public works and essential services;

(4) Coordination of targeted state agency programs in a project area that is consistent with the plan developed by the designated local revitalization board; and

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

NEW SECTION. Sec. 7. RURAL REVITALIZATION PROJECT IDENTIFICATION. (1) The department, in consultation with the committee, shall develop comprehensive guidelines for identification and administration of the projects established under section 5 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 cooperative participation of a cross-section of the local community where the project is to take place, including business, labor, education and training, and other public and private 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).

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

(a) A list of individuals that are willing to act as a local advisory board that will assist the department in the implementation of the project and are willing to be appointed under the provisions of section 9 of this act;

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

(d) An outline of the goals for the project.

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. 8. APPLICATION EVALUATION. In deciding which project to undertake, the committee shall consider the following factors:

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

(2) Community initiative;

(3) The level of under-utilized resources available for business opportunities;

(4) The degree to which additional state assistance is required to accomplish the project's goals; and

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

NEW SECTION. Sec. 9. STAFFING. The director of the department shall provide staffing to the committee.

NEW SECTION. Sec. 10. LOCAL REVITALIZATION BOARD. (1) Upon the committee designating a community as a project site, the director of the department shall appoint a local revitalization board in that community to assist the department in carrying out the project.

The department in appointing the board shall consider first those individuals that were submitted by the project applicant.

(2) The board shall include a broad representation of the local community including, but not limited to, representatives of business, labor organizations, government, education, social service agencies, development organizations, and traditional industries.

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

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

NEW SECTION. Sec. 11. DEVELOPMENT ACTIVITIES. The revitalization project shall attempt to utilize but is not limited to the existing services provided by the agencies represented on the committee. These services shall include but are not limited to, one or more of the following development activities: Export promotion, import substitution, tourism development, investment opportunities, entrepreneurial development, increasing local leadership capacity, maintenance and improvement of essential public services and facilities including but not limited to health care services and housing and retirement community promotion.

The approval of the local board is required prior to undertaking any development activity.

NEW SECTION. Sec. 12. DEPARTMENT OVERSIGHT. The department, in consultation with the committee, shall be responsible for:

(1) Oversight and implementation of the project;

(2) Assessment and effectiveness of the project;

(3) Coordination of multi-agency efforts;

(4) Acting as liaison with other local governments and interested entities;

(5) Assist the board in developing and administering surveys of residents, businesses, and employees. The surveys shall gather information about business and community service needs, training needs, availability of financing for community resources and amenities, and other appropriate information;

(6) Providing or coordinating the delivery of technical and managerial assistance upon request from the board.

NEW SECTION. Sec. 13. CONTRACTING. The department may contract for services as it deems necessary to carry out its duties and responsibilities.

Sec. 14. Section 14, chapter 236, Laws of 1967 as last amended by section 24, chapter 1, Laws of 1988 ex. sess. and RCW 67.28.210 are each amended to read as follows:

All taxes levied and collected under RCW 67.28.180, 67.28.230, and 67.28.240 shall be credited to a special fund in the treasury of the county or city imposing such tax. Such taxes shall be levied only for the purpose of paying all or any part of the cost of acquisition, construction, or operating of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes under this chapter, or to pay for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion when a county or city has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county or city treasurer in any manner authorized by law. In addition such taxes may be used in distressed areas as defined in RCW 43.160.076 to (1) finance road and other necessary utility improvements to municipally owned property for the purpose of stimulating economic development, and (2) to develop strategies to expand tourism ((~~in distressed areas, as defined in RCW 43.165.010~~)): PROVIDED, That any county, and any city within a county, bordering upon Grays Harbor may use the proceeds of such taxes for construction and maintenance of a movable tall ships tourist attraction in cooperation with a tall ships restoration society, except to the extent that such proceeds are used for payment of principal and interest on debt incurred prior to June 11, 1986: PROVIDED FURTHER, That any city or county may use the proceeds of such taxes for the refurbishing and operation of a steam railway for tourism promotion purposes.

Sec. 15. Section 14, chapter 42, Laws of 1988 (uncodified) is amended to read as follows:

Sections 1 through 12 ((~~of this act~~)), chapter 42, Laws of 1988 shall expire July 1, ((~~1990~~)) 1991.

NEW SECTION. Sec. 16. Section captions as used in sections 1 through 13 of this act do not constitute any part of the law.

NEW SECTION. Sec. 17. Sections 1 through 13 of this act are each added to chapter 43.63A RCW.

NEW SECTION. Sec. 18. If specific funding for the purpose of this act, referencing this act by bill number, is not appropriated by the legislature by July 1, 1989, sections 1 through 15 of this act shall be null and void.

NEW SECTION. Sec. 19. Sections 1 through 13 of this act are 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.