AN ACT Relating to economic diversification; adding new sections to chapter 43.63A RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that the distribution of economic activity and the diversification of industries is of vital importance to the citizens of the state. In recent years numerous rural communities and parts of major cities have undergone severe economic downturns resulting in job dislocation and high unemployment rates. Such areas have been designated by the legislature as distressed communities. In addition, the Puget Sound region has undergone dramatic economic growth, which in certain instances and communities, has precipitated rapid urban development resulting in traffic congestion, urban sprawl, and housing shortages adversely impacting the environment of urban communities. The maintenance of a balanced state-wide economy is dependent on distressed areas being a partner in economic development with the rapidly growing urban communities in order to provide employment opportunities and a high quality of life to all citizens of the state. The legislature finds that in order to promote a balanced economic development throughout the state and to disperse excess urban growth it is necessary to establish the Washington state economic diversification council.

NEW SECTION. Sec. 2. The Washington state economic diversification council is hereby established. The council's goals are to promote the dispersal of economic activity within the state between rapidly growing urban communities and distressed areas of the region in order to ensure a balanced state-wide economy, reduce urban sprawl, enhance the quality of life for the citizens of the state, and develop economic diversification plans and policies.

NEW SECTION. Sec. 3. The council members shall be appointed by the governor and shall include the director of the department of trade and economic development, the director of the department of community development, the director of the department of ecology, the director of the department of natural resources, the commissioner of employment security, the secretary of the department of transportation, three members representing rapidly growing urban communities, three members representing distressed communities, and one member from the public sector. The council shall be cochaired by the director of the department of trade and economic development and the department of community development.

NEW SECTION. Sec. 4. The council's responsibilities shall include:

(1) Developing policies to assist in the diversification of the state's economy that will promote the distribution of economic growth between rapidly growing urban communities and distressed areas of the state;

(2) Assisting public and private sector agencies in implementing economic diversification plans and policies;

(3) Providing ongoing oversight of economic diversification by the projects established in section 5 of this act; and

(4) Selecting economic diversification projects.

NEW SECTION. Sec. 5. The Washington state economic diversification project is hereby established. The department of community development, in consultation with the council, shall establish and administer state economic diversification projects. The projects' goals are to support the development and implementation of locally driven economic diversification strategies to address community needs. These strategies may include, but not be limited to:

(1) Assisting both high growth and distressed areas in developing strategic plans to address growth problems and opportunities;

(2) The formation of business ties and relationships to promote an even distribution of economic growth between high growth urban areas and distressed communities; and

(3) Encouraging partnerships among distressed communities and urban communities that will promote employment opportunities and a high quality of life for the citizens of each respective community with particular emphasis on local decision-making.

NEW SECTION. Sec. 6. (1) The department of community development, in consultation with the council, shall develop comprehensive guidelines for identification and administration of the projects established under section 5 of this act. Local development organizations from high growth and distressed communities may submit a joint application to the department of community development to participate in the projects. Any development organization requesting participation in the project shall demonstrate the cooperative participation of a cross-section of the local communities where the project is to take place, including local government, business, labor, education, and training agencies, and other public and private sector agencies. The size of the geographic area covered by the proposal shall be determined by local applicants. Applicants may submit proposals covering areas representing one or more communities. Applications submitted by several communities jointly that propose an integrated approach are encouraged.

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

(a) A list of individuals who are willing to act as a local advisory board to assist the department in implementing the project;

(b) A detailed description of the local economic situation in both high growth and distressed communities that are jointly applying for the project;

(d) An outline of the goals of the project and responsibilities of each joint applicant in implementing the project.

(3) The department of community development shall solicit applications from eligible communities that desire to participate in the diversification program and shall evaluate these applications in consultation with the council. These project applications shall include but not be limited to a description of:

(a) The need or opportunity to be addressed and its importance to each area;

(b) The approach proposed and expected outcome; and

(c) The state resources needed to carry out the proposed approach and local resources in each participating community that will be made available.

NEW SECTION. Sec. 7. In deciding which project to undertake, the council shall consider the following factors:

(1) The degree of economic growth and distress in the partnering communities;

(2) Community initiative;

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

(4) The feasibility of significantly impacting each community's economic condition and its surrounding region.

NEW SECTION. Sec. 8. The director of the department of community development shall provide staffing to the council.

NEW SECTION. Sec. 9. The department of community development, in consultation with the council, shall be responsible for:

(1) Oversight and implementation of the project;

(2) Assessing the effectiveness of the project;

(3) Coordination of multi-agency efforts;

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

(5) Providing coordination and delivery of technical and managerial assistance.

NEW SECTION. Sec. 10. The department of community development may contract for services as necessary to carry out the duties and responsibilities of sections 2 through 9 of this act.

NEW SECTION. Sec. 11. Sections 2 through 10 of this act are each added to chapter 43.63A RCW.

NEW SECTION. Sec. 12. 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 community development for the purposes of this act.