BP BHEAD INT S

AN ACT Relating to entrepreneurial development; adding new sections to chapter 43.31 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that the diversification of the Washington state economy is necessary to avoid the negative effects of cyclical downturns in the major industries of the state. The legislature further finds that the encouragement of entrepreneurial development and business ownership is necessary if the state's opportunities for economic growth and job creation are to be realized. It is the intent of the legislature to coordinate and provide assistance to entrepreneurial development programs throughout the state.

NEW SECTION. Sec. 2. The department shall, through its business assistance center, develop and administer a grant program designed to establish an institute for entrepreneurial development. To be eligible to receive a grant under this program, an organization must be an educational institution or a nonprofit development organization.

NEW SECTION. Sec. 3. The successful recipient of the grant to establish the institute for entrepreneurial development shall, through the institute, perform the following functions:

(1) Conduct a state-wide assessment of entrepreneurial activities including an evaluation of existing public and private entrepreneurial training and assistance programs.

(2) Develop a coordination plan for the delivery throughout the state of services that promote entrepreneurial development.

(3) Facilitate the development of inter-institutional entrepreneurial training programs.

(4) Operate a clearinghouse that maintains an up-to-date inventory of public and private entrepreneurial education and assistance offerings.

(5) Publish a newsletter on entrepreneurial development options and activities, and undertake other activities to raise awareness of entrepreneurial education and assistance offerings.

(6) Operate an award program for excellence in entrepreneurial education and assistance.

(7) Raise funds for and operate a competitive grant program for entrepreneurial development demonstration projects, research, and symposia.

(8) Develop with appropriate public and private entities entrepreneurial instructional materials and curricula, including materials that meet the specialized needs of rural and low-income communities.

(9) Facilitate the development of private and public efforts in entrepreneurial education.

NEW SECTION. Sec. 4. The institute shall be governed by a board of directors to be selected by the successful recipient, subject to approval by the director. Each board member shall have experience with entrepreneurial activity or in entrepreneurial education. The majority of voting members shall be from the private sector.

NEW SECTION. Sec. 5. For the second year of its operation, the institute shall have at least twenty percent of its operating budget supplied by nonstate sources. For the fourth year of its operation, the institute shall have at least fifty percent of its operating budget supplied by nonstate sources. From the sixth year of its operation the institute shall operate without state funds.

NEW SECTION. Sec. 6. The department shall submit reports on the operation, activities, and budget of the institute for entrepreneurial development to the senate trade, technology, and economic development committee and the house of representatives trade, economic development, and housing committee by December 1, 1995, and December 1, 1997.

NEW SECTION. Sec. 7. The sum of four hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of trade and economic development for the biennium ending June 30, 1995, to carry out the purposes of this act.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 9. Sections 1 through 6 of this act are each added to chapter 43.31 RCW.