FINAL BILL REPORT

                 2SHB 1686

                         C 108 L 99

                     Synopsis as Enacted

Brief Description:  Requiring cooperation with local economic development cooperatives.

Sponsors:  By House Committee on Economic Development, Housing & Trade (Originally sponsored by Representatives Kessler, DeBolt, Alexander, Mulliken, Morris, Linville, G. Chandler, Pennington, Wolfe, Hatfield, McMorris, Delvin, Romero, Sump, Clements, Ericksen, Schoesler, Campbell, D. Schmidt, Fortunato, Mielke, Radcliff, Cox, Mastin, Murray, Cooper, Lisk, Crouse, Hankins, Skinner, Thomas, B. Chandler, Koster, Parlette and Ruderman).

House Committee on Economic Development, Housing & Trade

House Committee on Appropriations

Senate Committee on Commerce, Trade, Housing & Financial Institutions

Background:

The Department of Community, Trade, and Economic Development (DCTED) is the primary state agency charged with assisting communities or regional areas in their community with economic development efforts.  The DCTED works directly with a variety of local economic development organizations to help communities attract businesses to their area, to help existing businesses expand, and to retain existing businesses.

The Community Development Finance program was created in 1984.  The DCTED provides technical assistance to assist communities and businesses to access available federal, state, and private sources of community development or business financing.

An Associate Development Organization (ADO) is a local nonprofit corporation created for the purpose of encouraging economic development within an area.  The ADO works with representatives in their service area to identify key economic and community development problems, development appropriate solutions, and mobilize broad support for recommended initiatives.  The ADO then assumes the leadership role in the coordination of efficient delivery of services designed to implement the recommended initiatives.  Thirty-three ADOs operate in Washington on either a county-wide basis or in a consortium consisting of two or more counties.

Summary:

The Department of Community, Trade, & Economic Development (DCTED) must work with local economic councils to provide technical assistance to assist communities and businesses to access available sources of community development or business financing.

A regional business recruitment grant program is created within the DCTED.  The purpose of the program is to assist local ADOs market the area to business on a national and international basis.

An application for assistance to the DCTED must: (1) be submitted by a local ADO or consortium of ADOs; (2) contain evidence of active participation between the public and private sector; (3) contain a description of how the proposed project will assist in business recruitment efforts; and (4) contain other information the director of the DCTED deems necessary.

In making awards, the DCTED must: (1) consider the degree of other funds, including in-kind match, committed to the project; (2) consider the degree of community support for the proposed project; and (3) consider the coordination of the proposed project with existing state and local business recruitment efforts.

Votes on Final Passage:

House970

Senate480

Effective:July 25, 1999