AN
ACT Relating to the Washington economic finance authority; and amending RCW
43.163.090 and 43.163.210.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.163.090 and 1989 c 279 s 10 are each amended to read as follows:
The
authority shall adopt a general plan of economic development finance objectives
to be implemented by the authority during the period of the plan. The
authority may exercise the powers authorized under this chapter prior to the adoption
of the initial plan. In developing the plan, the authority shall consider and
set objectives for:
(1)
Employment generation associated with the authority's programs;
(2)
The application of funds to sectors and regions of the state economy evidencing
need for improved access to capital markets and funding resources;
(3)
Geographic distribution of funds and programs available through the authority;
(4)
Eligibility criteria for participants in authority programs;
(5)
The use of funds and resources available from or through federal, state, local,
and private sources and programs;
(6)
Standards for economic viability and growth opportunities of participants in
authority programs;
(7)
New programs which serve a targeted need for financing assistance within the
purposes of this chapter; and
(8)
Opportunities to improve capital access as evidenced by programs existent in
other states or as they are made possible by results of private capital market
circumstances.
The
authority shall, as part of the finance plan required under this section,
develop an outreach and marketing plan designed to increase its financial
services to distressed counties. As used in this section, "distressed
counties" has the same meaning as distressed area in RCW 43.168.020.
At
least one public hearing shall be conducted by the authority on the plan prior
to its adoption. The plan shall be adopted by resolution of the authority no
later than November 15, 1990. The plan shall be submitted to the chief clerk
of the house of representatives and secretary of the senate for transmittal to
and review by the appropriate standing committees no later than December 15,
1990. The authority shall periodically update the plan as determined necessary
by the authority, but not less than once every two years. The plan or updated
plan shall include a report on authority activities conducted since the
commencement of authority operation or since the last plan was reported,
whichever is more recent, including a statement of results achieved under the
purposes of this chapter and the plan. Upon adoption, the authority shall
conduct its programs in observance of the objectives established in the plan.
Sec.
2. RCW
43.163.210 and 1996 c 310 s 1 are each amended to read as follows:
For
the purpose of facilitating economic development in the state of Washington and
encouraging the employment of Washington workers at meaningful wages:
(1)
The authority may develop and conduct a program or programs to provide
nonrecourse revenue bond financing for the project costs for ((no more than
five)) economic development activities((, per fiscal year, included
under the authority's general plan of economic development finance objectives.
In addition, the authority may issue tax-exempt bonds to finance ten
manufacturing or processing activities, per fiscal year, for which the total
project cost is less than one million dollars per project)).
(2)
The authority may ((also)) develop and conduct a program that will
stimulate and encourage the development of new products within Washington state
by the infusion of financial aid for invention and innovation in situations in
which the financial aid would not otherwise be reasonably available from commercial
sources. The authority is authorized to provide nonrecourse revenue bond
financing for this program.
(a)
For the purposes of this program, the authority shall have the following powers
and duties:
(i)
To enter into financing agreements with eligible persons doing business in
Washington state, upon terms and on conditions consistent with the purposes of
this chapter, for the advancement of financial and other assistance to the
persons for the development of specific products, procedures, and techniques,
to be developed and produced in this state, and to condition the agreements
upon contractual assurances that the benefits of increasing or maintaining
employment and tax revenues shall remain in this state and accrue to it;
(ii)
Own, possess, and take license in patents, copyrights, and proprietary
processes and negotiate and enter into contracts and establish charges for the
use of the patents, copyrights, and proprietary processes when the patents and
licenses for products result from assistance provided by the authority;
(iii)
Negotiate royalty payments to the authority on patents and licenses for
products arising as a result of assistance provided by the authority;
(iv)
Negotiate and enter into other types of contracts with eligible persons that
assure that public benefits will result from the provision of services by the
authority; provided that the contracts are consistent with the state
Constitution;
(v)
Encourage and provide technical assistance to eligible persons in the process
of developing new products;
(vi)
Refer eligible persons to researchers or laboratories for the purpose of
testing and evaluating new products, processes, or innovations; and
(vii)
To the extent permitted under its contract with eligible persons, to consent to
a termination, modification, forgiveness, or other change of a term of a
contractual right, payment, royalty, contract, or agreement of any kind to
which the authority is a party.
(b)
Eligible persons seeking financial and other assistance under this program
shall forward an application, together with an application fee prescribed by
rule, to the authority. An investigation and report concerning the
advisability of approving an application for assistance shall be completed by
the staff of the authority. The investigation and report may include, but is
not limited to, facts about the company under consideration as its history,
wage standards, job opportunities, stability of employment, past and present
financial condition and structure, pro forma income statements, present and
future markets and prospects, integrity of management as well as the
feasibility of the proposed product and invention to be granted financial aid,
including the state of development of the product as well as the likelihood of
its commercial feasibility. After receipt and consideration of the report set
out in this subsection and after other action as is deemed appropriate, the
application shall be approved or denied by the authority. The applicant shall
be promptly notified of action by the authority. In making the decision as to
approval or denial of an application, priority shall be given to those persons
operating or planning to operate businesses of special importance to
Washington's economy, including, but not limited to: (i) Existing
resource-based industries of agriculture, forestry, and fisheries; (ii)
existing advanced technology industries of electronics, computer and instrument
manufacturing, computer software, and information and design; and (iii)
emerging industries such as environmental technology, biotechnology, biomedical
sciences, materials sciences, and optics.
(3)
The authority may also develop and implement, if authorized by the legislature,
such other economic development financing programs adopted in future general
plans of economic development finance objectives developed under RCW
43.163.090.
(4) The authority may not issue any bonds for the programs
authorized under this section after June 30, 2000.
