AN ACT Relating to rural revitalization; amending section 14, chapter 42, Laws of 1988 (uncodified); adding new sections to chapter 43.63A RCW; adding new sections to chapter 43.31 RCW; creating a new section; making appropriations; 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.

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

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

(2) The legislature further finds that the industrial and manufacturing base and federal government involvement in Washington economy has undergone significant change during the past two decades. The challenge facing Washington firms is to become as productive and efficient as possible to survive in an increasingly competitive world market. Many small and medium-sized firms are in need of engineering and technical assistance to become or remain competitive. Such firms normally lack access to the knowledge base developed in the state's research universities which develop new products or production processes. Many states, to encourage the innovation necessary to withstand foreign competition, operate technical assistance and technology transfer programs for their firms. It is the intent of the legislature to: Provide industrial technical assistance which can increase the speed with which Washington firms innovate and adjust to the demands of competition in world markets; minimize the impact of federal cutbacks; increase the use of state-developed research within the state; promote economic development in rural areas; and use rural development industrial extension services projects as models for possible state-wide application.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 1 through 13 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 four 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 four pilot rural revitalization projects within the state based generally upon the 1988 tri-cities diversification act, chapter 42, Laws of 1988. Two projects shall be located east of the Cascade mountains.

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.

In order to be eligible to be a project site, the community must demonstrate the ability to make use of an industrial extension assistance program as provided in section 14 of this act.

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 utilize the existing services provided by the agencies represented on the committee including but 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, retirement community promotion, and a university industrial extension assistance program, which shall be a required activity.

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.

NEW SECTION. Sec. 14. INDUSTRIAL EXTENSION PROGRAM. The business assistance center of the department of trade and economic development, in consultation with the Washington state institute for public policy and the northwest policy center shall administer a pilot industrial extension grant program in conjunction with the revitalization projects as provided in section 5 of this act.

The business assistance center shall select institutions of higher education to provide industrial extension services for the four rural revitalization project sites.

NEW SECTION. Sec. 15. SELECTION OF EDUCATIONAL INSTITUTION. The educational institution selected in section 14 of this act shall:

(1) Demonstrate the participation of local education institutions, trade or industry associations, and local economic development groups.

(2) Provide the services of industrial engineers, efficiency experts, and other technicians familiar with the modernization needs of local industries.

(3) Offer firm-specific assistance for a limited period of time, after which firms may negotiate assistance on a fee basis.

(4) Work primarily with small firms which could not otherwise afford the expertise.

(5) Develop mechanisms to provide information on new manufacturing technologies to existing small and medium-sized firms.

(6) Provide whatever information the business assistance center deems necessary to evaluate the effectiveness of the services delivered.

NEW SECTION. Sec. 16. REVIEW FLEXIBLE MANUFACTURING. The business assistance center shall work with selected institutions of higher education to examine mechanisms for the establishment of flexible manufacturing networks or consortia through which small firms cooperatively access modernization, marketing, training and other services.

NEW SECTION. Sec. 17. ANNUAL REPORT AND PROGRAM EVALUATION. The department of community development in conjunction with the committee business assistance center shall report to the economic development and labor committee of the senate and the trade and economic development committee of the house of representatives by December 1, 1990, and each year thereafter on the accomplishments of the rural development and industrial extension programs. Such reports shall include the number and types of firms assisted, the number of jobs created or saved as a result of the assistance, the results of client satisfaction surveys distributed to those using the services of the program, and any recommendations on modifications or expansion of the programs.

Sec. 18. 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. 19. Section captions as used in sections 1 through 17 of this act do not constitute any part of the law.

NEW SECTION. Sec. 20. Sections 1 through 13 of this act are each added to chapter 43.63A RCW.

NEW SECTION. Sec. 21. Sections 14 through 17 of this act are each added to chapter 43.31 RCW.

NEW SECTION. Sec. 22. APPROPRIATIONS. (1) The sum of four 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 department for disbursal to the projects established under section 5 of this act. A maximum of fifteen percent of the moneys appropriated under this subsection may be expended for the department's administrative expenses.

(2) The sum of four 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 department of trade and economic development for the purposes of sections 14 through 17 of this act. A maximum of fifteen percent of moneys appropriated under this subsection may be expended for the department's administrative expenses.

NEW SECTION. Sec. 23. 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.