[atlas:bill]

AN ACT Relating to enhancing economic vitality; amending RCW 43.160.010, 43.160.020, 43.160.060, 43.160.200, 47.01.280, 28C.04.410, 28C.04.420, 46.68.095, 43.84.092, 43.84.092, 43.180.160, and 43.131.386; reenacting and amending RCW 43.160.076; adding a new section to chapter 43.160 RCW; adding a new section to chapter 28C.04 RCW; adding a new section to chapter 46.68 RCW; adding new sections to chapter 43.63A RCW; creating new sections; repealing RCW 28C.04.430, 28C.04.440, 28C.04.450, 28C.04.460, and 28C.04.480; repealing 1997 c 367 s 11, 1995 c 226 s 8, 1993 c 316 s 7, and 1991 c 314 s 33 (uncodified); providing effective dates; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that while Washington's economy is currently prospering, economic growth continues to be uneven, particularly as between metropolitan and rural areas. This has created in effect two Washingtons. One afflicted by inadequate infrastructure to support and attract investment, another suffering from congestion and soaring housing prices. In order to address these problems, the legislature intends to use resources strategically to build on our state's strengths while addressing threats to our prosperity.

PART I

RURAL ECONOMIC DEVELOPMENT

Enhanced Flexibility for Use of Community Economic

Revitalization Board Funds

Sec. 101. RCW 43.160.010 and 1996 c 51 s 1 are each amended to read as follows:

(1) The legislature finds that it is the public policy of the state of Washington to direct financial resources toward the fostering of economic development through the stimulation of investment and job opportunities and the retention of sustainable existing employment for the general welfare of the inhabitants of the state. Reducing unemployment and reducing the time citizens remain jobless is important for the economic welfare of the state. A valuable means of fostering economic development is the construction of public facilities which contribute to the stability and growth of the state's economic base. Strengthening the economic base through issuance of industrial development bonds, whether single or umbrella, further serves to reduce unemployment. Consolidating issues of industrial development bonds when feasible to reduce costs additionally advances the state's purpose to improve economic vitality. Expenditures made for these purposes as authorized in this chapter are declared to be in the public interest, and constitute a proper use of public funds. A community economic revitalization board is needed which shall aid the development of economic opportunities. The general objectives of the board should include:

(a) Strengthening the economies of areas of the state which have experienced or are expected to experience chronically high unemployment rates or below average growth in their economies;

(b) Encouraging the diversification of the economies of the state and regions within the state in order to provide greater seasonal and cyclical stability of income and employment;

(d) Encouraging new economic development or expansions to maximize employment;

(e) Encouraging the retention of viable existing firms and employment; and

(f) Providing incentives for expansion of employment opportunities for groups of state residents that have been less successful relative to other groups in efforts to gain permanent employment.

(2) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to improve state highways ((~~in the vicinity of new~~)), county roads, or city streets for industries considering locating or expanding in this state ((~~or existing industries that are considering significant expansion~~)).

(a) The legislature finds it desirable to provide a process whereby the need for diverse public works improvements necessitated by planned economic development can be addressed in a timely fashion and with coordination among all responsible governmental entities.

(b) ((It is the intent of the legislature to create an economic development account within the motor vehicle fund from which expenditures can be made by the department of transportation for state highway improvements necessitated by planned economic development.)) All ((~~such~~)) transportation improvements on state highways must first be approved by the state transportation commission and the community economic revitalization board in accordance with the procedures established by RCW 43.160.074 and 47.01.280. ((It is further the intent of the legislature that such improvements not jeopardize any other planned highway construction projects. The improvements are intended to be of limited size and cost, and to include such items as additional turn lanes, signalization, illumination, and safety improvements.))

(3) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to assist development of telecommunications infrastructure that supports business development, retention, and expansion in rural natural resources impact areas and distressed counties of the state.

(4) The legislature also finds that the state's economic development efforts can be enhanced by providing funds to improve markets for those recyclable materials representing a large fraction of the waste stream. The legislature finds that public facilities which result in private construction of processing or remanufacturing facilities for recyclable materials are eligible for consideration from the board.

((~~(4)~~)) (5) The legislature finds that sharing economic growth state-wide is important to the welfare of the state. Distressed counties and rural natural resources impact areas do not share in the economic vitality of the Puget Sound region. The ability of these communities to pursue business and job retention, expansion, and development opportunities depends on their capacity to ready necessary economic development project plans, sites, permits, and infrastructure for private investments. Project-specific planning, predevelopment, and infrastructure ((~~is one of several~~)) are critical ingredients ((~~that are critical~~)) for economic development. Distressed counties and rural natural resources impact areas generally lack ((~~the infrastructure~~)) these necessary tools and resources to diversify and revitalize their economies. It is, therefore, the intent of the legislature to increase the ((~~availability of funds to help provide infrastructure to rural natural resource impact areas~~)) amount of funding available through the community economic revitalization board for distressed counties and rural natural resources impact areas, and to authorize flexibility for available resources in these areas to help fund planning, predevelopment, and construction costs of infrastructure and facilities and sites that foster economic vitality and diversification.

Sec. 102. RCW 43.160.020 and 1997 c 367 s 8 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the community economic revitalization board.

(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

(3) "Department" means the department of community, trade, and economic development.

(4) "Distressed county" means either (a) a county in which the average level of unemployment for the previous three years exceeds the average state unemployment rate for those years by twenty percent or (b) a county that has a median household income that is less than seventy-five percent of the state median household income for the previous three years.

(5) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

((~~(5)~~)) (6) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

((~~(6)~~)) (7) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

((~~(7)~~)) (8) "Local government" or "political subdivision" means any port district, county, city, town, special purpose district, and any other municipal corporations or quasi-municipal corporations in the state providing for public facilities under this chapter.

((~~(8)~~)) (9) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

((~~(9)~~)) (10) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

((~~(10)~~)) (11) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

((~~(11)~~)) (12) "Public facilities" means bridges, roads, domestic and industrial water, sanitary sewer, storm sewer, railroad, electricity, telecommunications, natural gas, buildings or structures, and port facilities.

((~~(12)~~)) (13) "Rural natural resources impact area" means:

(a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets three of the five criteria set forth in subsection ((~~(13)~~)) (14) of this section;

(b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection ((~~(13)~~)) (14) of this section; or

(c) A nonurbanized area, as defined by the 1990 decennial census, that is located in a metropolitan county that meets three of the five criteria set forth in subsection ((~~(13)~~)) (14) of this section.

((~~(13)~~)) (14) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

(a) A lumber and wood products employment location quotient at or above the state average;

(b) A commercial salmon fishing employment location quotient at or above the state average;

(d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

(e) An unemployment rate twenty percent or more above the state average. The counties that meet these criteria shall be determined by the employment security department for the most recent year for which data is available. For the purposes of administration of programs under this chapter, the United States post office five-digit zip code delivery areas will be used to determine residence status for eligibility purposes. For the purpose of this definition, a zip code delivery area of which any part is ten miles or more from an urbanized area is considered nonurbanized. A zip code totally surrounded by zip codes qualifying as nonurbanized under this definition is also considered nonurbanized. The office of financial management shall make available a zip code listing of the areas to all agencies and organizations providing services under this chapter.

Sec. 103. RCW 43.160.060 and 1996 c 51 s 5 are each amended to read as follows:

The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, project-specific environmental, capital facilities, land use, permitting, feasibility and marketing studies and plans; project design, site planning, and analysis; project debt and revenue impact analysis; as well as the construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision and the finding by the board that ((~~unique~~)) financial circumstances ((~~exist. The board shall not obligate more than twenty percent of its biennial appropriation as grants~~)) require grant assistance to enable the project to move forward.

Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

(1) The board shall not provide financial assistance:

(a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

(b) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state, except a project that would relocate a business from a nondistressed urban area to a distressed county or rural natural resources impact area.

(d) For a construction project to any local government applicant that is not, at the time of application for financial assistance, in compliance with the provisions of chapter 36.70A RCW.

(2) The board shall only provide financial assistance:

(a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, advanced technology, research and development, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; (iv) which support the relocation of businesses from nondistressed urban areas to distressed counties or rural natural resources impact areas; or (v) which substantially support the trading of goods or services outside of the state's borders.

(b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

(c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the public facility improvement is made.

(3) The board shall prioritize each proposed project according to the relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located. As long as there is more demand for financial assistance than there are funds available, the board is instructed to fund projects in order of their priority.

(4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

Before any financial assistance application is approved, the political subdivision seeking the assistance must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

Sec. 104. RCW 43.160.076 and 1998 c 321 s 28 (Referendum Bill No. 49) and 1998 c 55 s 4 are each reenacted and amended to read as follows:

(1) Except as authorized to the contrary under subsection (2) of this section, from all funds available to the board for financial assistance in a biennium under this chapter without reference to financial assistance provided under RCW 43.160.220, the board shall spend at least seventy-five percent for financial assistance for projects in distressed counties or rural natural resources impact areas. For purposes of this section, the term "distressed counties" includes any county, in which the average level of unemployment for the three years before the year in which an application for financial assistance is filed, exceeds the average state unemployment for those years by twenty percent.

(2) If at any time during the last six months of a biennium the board finds that the actual and anticipated applications for qualified projects in distressed counties or rural natural resources impact areas are clearly insufficient to use up the seventy-five percent allocation under subsection (1) of this section, then the board shall estimate the amount of the insufficiency and during the remainder of the biennium may use that amount of the allocation for financial assistance to projects not located in distressed counties or rural natural resources impact areas.

((~~(3) This section expires June 30, 2000.~~))

Sec. 105. RCW 43.160.200 and 1996 c 51 s 9 are each amended to read as follows:

(1) The economic development account is created within the public facilities construction loan revolving fund under RCW 43.160.080. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of RCW 43.160.010((~~(3)~~)) (5) and this section. The account is subject to allotment procedures under chapter 43.88 RCW.

(2) Applications under this section for assistance from the economic development account are subject to all of the applicable criteria set forth under this chapter, as well as procedures and criteria established by the board, except as otherwise provided.

(3) Eligible applicants under this section are limited to political subdivisions of the state in rural natural resources impact areas ((~~that demonstrate, to the satisfaction of the board, the local economy's dependence on the forest products and salmon fishing industries~~)) and distressed counties.

(4) Applicants must demonstrate that their request is part of an economic development plan consistent with applicable state planning requirements. Applicants must demonstrate that tourism projects have been approved by the local government. Industrial projects must be approved by the local government and the associate development organization.

(5) Publicly owned projects may be financed under this section upon proof by the applicant that the public project is a necessary component of, or constitutes in whole, a tourism project.

(6) Applications must demonstrate local match and participation. Such match may include: Land donation, other public or private funds or both, or other means of local commitment to the project.

(7) Board financing for project-specific environmental, capital facilities, land use, permitting, feasibility and marketing studies and plans; project engineering, design, and site planning and analysis; and project debt and revenue impact analysis shall not exceed ((~~twenty-five~~)) fifty thousand dollars per study. Board funds for ((~~feasibility studies~~)) these purposes may be provided as a grant and require a ((~~dollar for dollar~~)) match ((~~with up to one-half in-kind match allowed~~)).

(8) Board financing for tourism projects shall not exceed two hundred fifty thousand dollars. Other public facility construction projects under this section shall not exceed ((~~five hundred thousand~~)) one million dollars. Loans with flexible terms and conditions to meet the needs of the applicants shall be provided. Grants may also be authorized, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

(9) The board shall develop guidelines for allowable local match and ((~~feasibility studies~~)) planning and predevelopment activities.

(10) The board may allow de minimis general system improvements to be funded if they are critically linked to the viability of the economic development project assisted under this section.

(11) Applications under this section need not demonstrate evidence that specific private development or expansion is ready to occur or will occur if funds are provided.

((~~(11)~~)) (12) The board shall establish guidelines for providing financial assistance under this section to ensure that the requirements of this chapter are complied with. The guidelines shall include:

(a) A process to equitably compare and evaluate applications from competing communities.

(b) Criteria to ensure that approved projects will have a high probability of success and are likely to provide long-term economic benefits to the community. The criteria shall include: (i) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (ii) an analysis that establishes the project is feasible using standard economic principles; and (iii) an explanation from the applicant regarding how the project is consistent with the communities' economic strategy and goals.

(c) A method of evaluating the impact of the financial assistance on the economy of the community and whether the financial assistance achieved its purpose.

Transportation to Support Economic Development

in Distressed Counties and in Community Empowerment Zones

NEW SECTION. Sec. 106. A new section is added to chapter 43.160 RCW to read as follows:

In accordance with RCW 43.160.060 and 43.160.200, the community economic revitalization board is authorized to provide grants, but not loans, for transportation improvements in distressed counties as defined in RCW 43.160.020, in rural natural resources impact areas as defined in RCW 43.160.020(13), and in designated community empowerment zones approved under RCW 43.63A.700. Funding for these improvements are from the transportation equity act for the 21st century, surface transportation program and are subject to surface transportation program federal fund eligibility and planning requirements detailed in 23 U.S.C. Sec. 133(b) and Sec. 134. Up to twenty-two percent of available surface transportation funds are made available for these purposes, however beginning in 2000 in the event that such funds are not obligated by June 1st of each year, they will revert in equal amount to the other designated surface transportation program purposes. In accordance with federal law, the department of transportation is responsible for administering grants awarded by the board under this section.

Sec. 107. RCW 47.01.280 and 1985 c 433 s 6 are each amended to read as follows:

(1) Upon receiving an application for improvements to an existing state highway or highways pursuant to RCW 43.160.074 from the community economic revitalization board, the transportation commission shall, in a timely manner, determine whether or not the proposed state highway improvements:

(a) Meet the safety and design criteria of the department of transportation;

(b) Will impair the operational integrity of the existing highway system;

(d) Will be consistent with its policies developed pursuant to RCW 47.01.071.

(2) Upon completion of its determination of the factors contained in subsection (1) of this section and any other factors it deems pertinent, the transportation commission shall forward its approval, as submitted or amended or disapproval of the proposed improvements to the board, along with any recommendation it may wish to make concerning the desirability and feasibility of the proposed development. If the transportation commission disapproves any proposed improvements, it shall specify its reasons for disapproval.

(3) Upon notification from the board of an application's approval pursuant to RCW 43.160.074, the transportation commission shall direct the department of transportation to carry out the improvements in coordination with the applicant.

(4) The transportation commission shall notify the legislative transportation committee of all state highway improvements to be carried out pursuant to RCW 43.160.074 and this section.

(((5) All state highway improvements that are approved pursuant to RCW 43.160.074 and this section shall be charged to the economic development account of the motor vehicle fund created by RCW 47.10.803.))

PART II

WORK FORCE TRAINING

Sec. 201. RCW 28C.04.410 and 1983 1st ex.s. c 21 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout section 202 of this act and RCW ((~~28C.04.040 and~~)) 28C.04.420 ((~~through 28C.04.480~~)).

(1) "Applicant" means an educational institution which has made application for a job skills grant under section 202 of this act and RCW 28C.04.420 ((~~through 28C.04.480~~)).

(2) "Business and industry" means a private corporation, institution, firm, person, group, or association concerned with commerce, trades, manufacturing, or the provision of services within the state, or a public or nonprofit hospital licensed by the department of social and health services.

(3) "Educational institution" means a public secondary or postsecondary institution or an independent institution within the state authorized by law to provide a program of skills training or education beyond the secondary school level. Any educational institution receiving a job skills grant under section 202 of this act and RCW 28C.04.420 ((~~through 28C.04.480~~)) shall be free of sectarian control or influence as set forth in Article IX, section 4 of the state Constitution.

(4) "Equipment" means tangible personal property which will further the objectives of the supported program and for which a definite value and evidence in support of the value have been provided by the donor.

(5) "Financial support" means any thing of value which is contributed by business and industry to an educational institution which is reasonably calculated to support directly the development and expansion of a particular program under section 202 of this act and RCW 28C.04.420 ((~~through 28C.04.480~~)) and represents an addition to any financial support previously or customarily provided to such educational institutions by the donor. "Financial support" includes, but is not limited to, funds, equipment, facilities, faculty, and scholarships for matriculating students and trainees.

(6) "Job skills grant" means funding that is provided to an educational institution by the commission for the development or significant expansion of a program under section 202 of this act and RCW 28C.04.420 ((~~through 28C.04.480~~)).

(7) "Job skills program" means a program of skills training or education separate from and in addition to existing vocational education programs and which:

(a) Provides short-term training which has been designated for specific industries;

(b) Provides training for prospective employees before a new plant opens or when existing industry expands;

(c) Includes training and retraining for workers already employed by an existing industry or business where necessary to avoid dislocation or where upgrading of existing employees would create new vacancies for unemployed persons;

(d) Serves areas with high concentrations of economically disadvantaged persons and high unemployment;

(e) Serves areas with new and growing industries;

(f) Serves areas where there is a shortage of skilled labor to meet job demands; or

(g) Promotes the location of new industry in areas affected by economic dislocation.

(8) "Technical assistance" means professional and any other assistance provided by business and industry to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program and which represents an addition to any technical assistance previously or customarily provided to the educational institutions by the donor.

(9) ((~~"Commission" or "commission for vocational education" shall mean the commission for vocational education or any successor agency or organization.~~)) "College board" means the state board for community and technical colleges under chapter 28B.50 RCW.

NEW SECTION. Sec. 202. A new section is added to chapter 28C.04 RCW to read as follows:

(1) The college board shall create a jobs skills advisory committee to recommend job skills grant applications for approval by the executive director of the college board.

(2) The advisory committee shall recommend goals and criteria for the job skills program to be used by grant applicants.

(3) Members of the advisory committee shall consist of representatives from business, labor, postsecondary education, the department of community, trade, and economic development, the employment security department, and other members as appropriate, and shall be appointed by the executive director of the college board.

(4) The business and labor representatives shall constitute a combined majority on the committee.

(5) The business representatives shall be selected in consultation with a state-wide business organization representing a cross section of industries.

(6) The labor representatives shall be selected in consultation with a state-wide labor organization.

Sec. 203. RCW 28C.04.420 and 1983 1st ex.s. c 21 s 4 are each amended to read as follows:

The ((~~commission~~)) college board may, subject to appropriation from the legislature or from funds made available from any other public or private source and pursuant to rules adopted by the ((~~commission~~)) college board, provide job skills grants to educational institutions. The job skills grants shall be used exclusively for programs which are consistent with the job skills program. ((~~A job skills grant may be awarded only after:~~

(1) Receipt of an application from an educational institution which contains a proposal for a program of skills training and education, including a description of the program, the type of skills training or education to be provided, a statement of the total cost of the program and a breakdown of the costs associated with equipment, personnel, facilities, and materials, a statement of the employment needs for the program and evidence in support thereof, demonstrates that the program does not unnecessarily duplicate existing programs in the area and is provided at a reasonable cost, a statement of the technical assistance and financial support for the program received or to be received from business and industry, and such other information as the commission requests; and

~~(2) The commission, based on the application submitted by the educational institution and such additional investigation as the staff of the commission shall make, finds that:~~

~~(a)~~)) Staff from the college board shall work in collaboration with the advisory committee to assure that:

(1) The program is within the scope of the job skills program under this chapter and may reasonably be expected to succeed and thereby increase employment within the state;

((~~(b) Provision has been made to use any available alternative funding from local, state, and federal sources;~~

~~(c) The job skills grant will only be used to cover the costs associated with the program;~~

~~(d) The program will not unnecessarily duplicate existing programs and could not be provided by another educational institution more effectively or efficiently;~~

~~(e)~~)) (2) The program involves an area of skills training and education for which there is a demonstrable need;

((~~(f) The applicant has made provisions for the use of existing federal and state resources for student financial assistance;~~

(g) The job skills grant is essential to the success of the program as the resources of the applicant are inadequate to attract the technical assistance and financial support necessary for the program from business and industry;

~~(h)~~)) (3) The program represents a collaborative partnership between business, industry, labor, educational institutions, and other partners, as appropriate;

(4) The commitment of financial support from business and industry shall be equal to or greater than the amount of the requested job skills grant; and

(((i) Binding commitments have been made to the commission by the applicant for adequate reporting of information and data regarding the program to the commission, particularly information concerning the recruitment and employment of trainees and students, and including a requirement for an annual or other periodic audit of the books of the applicant directly related to the program, and for such control on the part of the commission as it considers prudent over the management of the program, so as to protect the use of public funds, including, in the discretion of the commission and without limitation, right of access to financial and other records of the applicant directly related to the programs;

~~(j)~~)) (5) A provision has been made by the applicant to work, in cooperation with the employment security department, to identify and screen potential trainees, and that provision has been made by the applicant of persons who are victims of economic dislocation and persons from minority and economically disadvantaged groups to participate in the program((~~; and~~

~~(k) Binding commitments have been made to the commission by the applicant for compliance with the monitoring and evaluation rules of the commission~~)).

Beginning October 1, 1999, and every two years thereafter, the college board shall provide the governor with a report describing the activities and outcomes of the state job skills program.

PART III

CONGESTION RELIEF

Sec. 301. RCW 46.68.095 and 1994 c 179 s 4 are each amended to read as follows:

All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax imposed by RCW 82.36.025(5) shall be distributed monthly by the state treasurer in the following proportions:

(1) Through June 30, 1995, one and one-half cents shall be deposited in the transportation improvement account and expended in accordance with RCW 47.26.084. After June 30, 1995, eighty-seven percent of one and one-half cents shall be deposited in the transportation improvement account and expended in accordance with RCW 47.26.086 and thirteen percent of one and one-half cents shall be deposited in the small city account and expended in accordance with RCW 47.26.115.

(2) From April 1, 1991, seventy-five one-hundredths of one cent shall be deposited in the special category C account in the motor vehicle fund for special category C projects. Special category C projects are category C projects ((~~as defined in RCW 47.05.030(3)~~)) that, due to high cost only, will require bond financing to complete construction.

The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

(a) Accident experience; and

(b) Fatal accident experience; and

(d) Continuity of development of the highway transportation network.

Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection.

(3) Twenty-five one-hundredths of one cent shall be deposited in the rural arterial trust account in the motor vehicle fund.

(4) Forty-five one-hundredths of one cent shall be deposited in the county arterial preservation account. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used.

(5) One-half of one cent shall be allocated to cities and towns as provided in RCW 46.68.110.

(6) From April 1, 1990, through March 31, 1991, thirty one-hundredths of one cent and after March 31, 1991, fifty-five one-hundredths of one cent shall be allocated to counties as provided in RCW 46.68.120.

(7) One cent shall be deposited in the congestion relief account created in the motor vehicle fund and shall be expended ((~~for highway purposes of the state as defined in RCW 46.68.130~~)) for the design, right of way, and construction of congestion relief corridors. Moneys deposited in the congestion relief account in the motor vehicle fund shall be used to fund work on the projects enumerated in section 302 of this act, or for the payment of debt service associated with these projects as authorized by Referendum Bill No. 49.

Congestion relief corridors, which are not adequately addressed by the prioritization scheme in RCW 47.05.051, are designated to address congestion and economic development in a comprehensive manner.

The following criteria shall be used to designate corridors for funding from the congestion relief account:

(a) The benefit/cost ratio, calculated using a twenty-year project cost, is greater than two; and

(b) At least sixty-five percent of the corridor improvement's benefits must accrue to the general motoring public.

NEW SECTION. Sec. 302. A new section is added to chapter 46.68 RCW to read as follows:

In accordance with the criteria prescribed in RCW 46.68.095(7), the following corridors are designated for funding from the congestion relief account:

(1) State route number 18, 180th to interstate 90.

(2) State route number 509, interstate 5 to south 188th.

(3) State route number 395, North Spokane freeway.

(4) State route number 522, state route number 9 to state route number 2.

(5) State route number 525, interstate 5 to Paine Field boulevard.

(6) State route number 539, Horton to International boundary.

Sec. 303. RCW 43.84.092 and 1997 c 218 s 5 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the central Puget Sound public transportation account, the city hardship assistance account, the congestion relief account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 304. RCW 43.84.092 and 1998 c 341 s 708 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system combined plan II and plan III account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington school employees' retirement system combined plan II and III account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

PART IV

HOUSING

Increasing the Housing Finance Commission's Debt Limit

Sec. 401. RCW 43.180.160 and 1996 c 310 s 2 are each amended to read as follows:

The total amount of outstanding indebtedness of the commission may not exceed ((~~two~~)) three billion dollars at any time. The calculation of outstanding indebtedness shall include the initial principal amount of an issue and shall not include interest that is either currently payable or that accrues as a part of the face amount of an issue payable at maturity or earlier redemption. Outstanding indebtedness shall not include notes or bonds as to which the obligation of the commission has been satisfied and discharged by refunding or for which payment has been provided by reserves or otherwise.

Temporary Worker Housing

NEW SECTION. Sec. 402. A new section is added to chapter 43.63A RCW to read as follows:

The department shall establish and administer a "one-stop clearinghouse" to coordinate state assistance for growers and nonprofit organizations in developing housing for agricultural employees. Growers, housing authorities, and nonprofit organizations shall have direct access to the one-stop clearinghouse. The department one-stop clearinghouse shall provide assistance on planning and design, building codes, temporary worker housing regulations, financing options, and management to growers and nonprofit organizations interested in farmworker construction. The department one-stop clearinghouse shall also provide educational materials and services to local government authorities on Washington state law concerning farmworker housing.

NEW SECTION. Sec. 403. A new section is added to chapter 43.63A RCW to read as follows:

(1)(a) The farmworker housing advisory board is established to advise the department on capital expenditures appropriated for farmworker housing.

(b) The board shall be composed of voting representatives from the following sectors:

(i) One representative of a banking institution;

(ii) Two Representatives of growers;

(iii) One member of the housing finance commission;

(iv) One representative from legal services;

(v) Two representatives of farmworkers, including at least one from the united farmworkers union; and

(vi) One representative from each of the two largest caucuses in the legislature.

(i) Community, trade, and economic development;

(ii) Health;

(iii) Labor and industries; and

(iv) Social and health services.

(2) Insofar as is possible, the voting members of the board should be geographically representative. The voting members shall be appointed by, and serve at the pleasure of the director. Terms shall be two years in length, except that one representative of the growers and one of the farmworkers shall serve one three-year term beginning on the effective date of this section. Members shall not receive pay, but will be eligible for travel and per diem expenses according to state guidelines. If child care expenses are incurred by a team member in order to participate in the work of the board the expenses shall be reimbursable.

(3) The role of the advisory board shall be as follows:

(a) Review state policies affecting the construction and maintenance of farmworker housing;

(b) Advise the department of the appropriate criteria and priorities related to the granting of farmworker housing funds;

(c) Review and make recommendations to the department that assist the department in granting funds for farmworker housing;

(d) Review the progress of farmworker housing projects that have been funded to help assure long-term accountability on the part of the grantees;

(e) Establish performance measures from which to base evaluations; and

(f) Advise the department regarding modifications, changes, or additions to the grant process.

PART V

REPEALED SECTIONS

Sec. 501. RCW 43.131.386 and 1997 c 367 s 19 are each amended to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2001:

(1) RCW 43.31.601 and 1997 c 367 s 1, 1995 c 226 s 1, 1992 c 21 s 2, & 1991 c 314 s 2;

(2) RCW 43.31.641 and 1997 c 367 s 6, 1995 c 226 s 4, 1993 c 280 s 50, & 1991 c 314 s 7;

(3) RCW 50.22.090 and ((~~1995 c 226 s 5, 1993 c 316 s 10, 1992 c 47 s 2, & 1991 c 315 s 4~~)) 1997 c 367 s 4;

(4) RCW 43.160.212 and 1996 c 168 s 4, 1995 c 226 s 6, ((&)) 1993 c 316 s 5, 1992 c 21 s 8, & 1991 c 314 s 26;

(5) RCW 43.63A.021 and 1997 c 367 s 5 & 1995 c 226 s 11;

(6) RCW 43.63A.600 and 1995 c 226 s 12, 1994 c 114 s 1, 1993 c 280 s 77, & 1991 c 315 s 23;

(7) RCW 43.63A.440 and 1997 c 367 s 7, 1995 c 226 s 13, 1993 c 280 s 74, & 1989 c 424 s 7;

(8) ((~~RCW 43.160.200 and 1995 c 226 s 16, 1993 c 320 s 7, 1993 c 316 s 4, & 1991 c 314 s 23;~~

~~(9)~~)) RCW 28B.50.258 and 1995 c 226 s 18 & 1991 c 315 s 16;

((~~(10)~~)) (9) RCW 28B.50.262 and 1995 c 226 s 19 & 1994 c 282 s 3;

((~~(11)~~)) (10) RCW 28B.80.570 and 1997 c 367 s 14, 1995 c 226 s 20, 1992 c 21 s 6, & 1991 c 315 s 18;

((~~(12)~~)) (11) RCW 28B.80.575 and 1995 c 269 s 1001, 1995 c 226 s 21, & 1991 c 315 s 19;

((~~(13)~~)) (12) RCW 28B.80.580 and 1997 c 367 s 15, 1995 c 226 s 22, 1993 sp.s. c 18 s 34, 1992 c 231 s 31, & 1991 c 315 s 20;

((~~(14)~~)) (13) RCW 28B.80.585 and 1995 c 226 s 23 & 1991 c 315 s 21;

((~~(15)~~)) (14) RCW 43.17.065 and 1995 c 226 s 24, 1993 c 280 s 37, 1991 c 314 s 28, & 1990 1st ex.s. c 17 s 77;

((~~(16)~~)) (15) RCW 43.20A.750 and ((~~1995 c 226 s 25, 1993 c 280 s 38, 1992 c 21 s 4, & 1991 c 153 s 28~~)) 1997 c 367 s 16;

((~~(17)~~)) (16) RCW 43.168.140 and 1995 c 226 s 28 & 1991 c 314 s 20;

((~~(18)~~)) (17) RCW 50.12.270 and 1997 c 367 s 17, 1995 c 226 s 30, & 1991 c 315 s 3;

((~~(19)~~)) (18) RCW 50.70.010 and 1995 c 226 s 31, 1992 c 21 s 1, & 1991 c 315 s 5; and

((~~(20)~~)) (19) RCW 50.70.020 and 1995 c 226 s 32 & 1991 c 315 s 6.

NEW SECTION. Sec. 502. The following acts or parts of acts are each repealed:

(1) RCW 28C.04.430 and 1983 1st ex.s. c 21 s 5;

(2) RCW 28C.04.440 and 1995 c 399 s 32, 1985 c 466 s 40, & 1983 1st ex.s. c 21 s 6;

(3) RCW 28C.04.450 and 1983 1st ex.s. c 21 s 7;

(4) RCW 28C.04.460 and 1995 c 399 s 33, 1985 c 466 s 41, & 1983 1st ex.s. c 21 s 8;

(5) RCW 28C.04.480 and 1983 1st ex.s. c 21 s 10; and

(6) 1997 c 367 s 11, 1995 c 226 s 8, 1993 c 316 s 7, & 1991 c 314 s 33 (uncodified).

PART VI

MISCELLANEOUS

NEW SECTION. Sec. 601. Part headings and subheadings used in this act are not any part of the law.

NEW SECTION. Sec. 602. (1) Section 101 of this act takes effect January 1, 2001.

(2) Section 106 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1999.

(3) Section 304 of this act takes effect September 1, 2000.

NEW SECTION. Sec. 603. Section 303 of this act expires September 1, 2000.