AN
ACT Relating to the Washington economic development finance authority;
reenacting and amending RCW 43.163.010; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.163.010 and 1994 c 238 s 1 and 1994 c 92 s 498 are each reenacted and
amended to read as follows:
As
used in this chapter, the following words and terms have the following
meanings, unless the context requires otherwise:
(1)
"Authority" means the Washington economic development finance
authority created under RCW 43.163.020 or any board, body, commission,
department or officer succeeding to the principal functions of the authority or
to whom the powers conferred upon the authority shall be given by law;
(2)
"Bonds" means any bonds, notes, debentures, interim certificates,
conditional sales or lease financing agreements, lines of credit, forward
purchase agreements, investment agreements, and other banking or financial
arrangements, guaranties, or other obligations issued by or entered into by the
authority. Such bonds may be issued on either a tax-exempt or taxable basis;
(3)
"Borrower" means one or more public or private persons or entities
acting as lessee, purchaser, mortgagor, or borrower who has obtained or is
seeking to obtain financing either from the authority or from an eligible
banking organization that has obtained or is seeking to obtain funds from the
authority to finance a project. A borrower may include a party who transfers
the right of use and occupancy to another party by lease, sublease or
otherwise, or a party who is seeking or has obtained a financial guaranty from
the authority;
(4)
"Eligible banking organization" means any organization subject to
regulation by the director of the department of financial institutions, any
national bank, federal savings and loan association, and federal credit union
located within this state;
(5)
"Eligible export transaction" means any preexport or export activity
by a person or entity located in the state of Washington involving a sale for
export and product sale which, in the judgment of the authority: (a) Will
create or maintain employment in the state of Washington, (b) will obtain a
material percent of its value from manufactured goods or services made,
processed or occurring in Washington, and (c) could not otherwise obtain
financing on reasonable terms from an eligible banking organization;
(6)
"Eligible farmer" means any person who is a resident of the state of
Washington and whose specific acreage qualifying for receipts from the federal
department of agriculture under its conservation reserve program is within the
state of Washington;
(7)
"Eligible person" means an individual, partnership, corporation, or
joint venture carrying on business, or proposing to carry on business within
the state and is seeking financial assistance under RCW 43.163.210;
(8)
"Financial assistance" means the infusion of capital to persons for
use in the development and exploitation of specific inventions and products;
(9)
"Financing document" means an instrument executed by the authority
and one or more persons or entities pertaining to the issuance of or security
for bonds, or the application of the proceeds of bonds or other funds of, or
payable to, the authority. A financing document may include, but need not be
limited to, a lease, installment sale agreement, conditional sale agreement,
mortgage, loan agreement, trust agreement or indenture, security agreement,
letter or line of credit, reimbursement agreement, insurance policy, guaranty
agreement, or currency or interest rate swap agreement. A financing document
also may be an agreement between the authority and an eligible banking
organization which has agreed to make a loan to a borrower;
(10)
"Plan" means the general plan of economic development finance
objectives developed and adopted by the authority, and updated from time to
time, as required under RCW 43.163.090;
(11)
"Economic development activities" means activities related to: Manufacturing,
processing, research, production, assembly, tooling, warehousing, airports,
docks and wharves, mass commuting facilities, high-speed intercity rail
facilities, public broadcasting, pollution control, solid waste
disposal, federally qualified hazardous waste facilities, energy
generating, conservation, or transmission facilities, and sports
facilities and industrial parks and activities conducted within a federally
designated enterprise or empowerment zone or geographic area of similar nature;
(12)
"Project costs" means costs of:
(a)
Acquisition, lease, construction, reconstruction, remodeling, refurbishing,
rehabilitation, extension, and enlargement of land, rights to land, buildings,
structures, docks, wharves, fixtures, machinery, equipment, excavations,
paving, landscaping, utilities, approaches, roadways and parking, handling and
storage areas, and similar ancillary facilities, and any other real or personal
property included in an economic development activity;
(b)
Architectural, engineering, consulting, accounting, and legal costs related
directly to the development, financing, acquisition, lease, construction,
reconstruction, remodeling, refurbishing, rehabilitation, extension, and
enlargement of an activity included under subsection (11) of this section,
including costs of studies assessing the feasibility of an economic development
activity;
(c)
Finance costs, including the costs of credit enhancement and discounts, if any,
the costs of issuing revenue bonds, and costs incurred in carrying out any
financing document;
(d)
Start-up costs, working capital, capitalized research and development costs,
capitalized interest during construction and during the eighteen months after
estimated completion of construction, and capitalized debt service or repair
and replacement or other appropriate reserves;
(e)
The refunding of any outstanding obligations incurred for any of the costs
outlined in this subsection; and
(f)
Other costs incidental to any of the costs listed in this section;
(13)
"Product" means a product, device, technique, or process that is or
may be exploitable commercially. "Product" does not refer to pure
research, but shall be construed to apply to products, devices, techniques, or
processes that have advanced beyond the theoretic stage and are readily capable
of being, or have been, reduced to practice;
(14)
"Financing agreements" means, and includes without limitation, a
contractual arrangement with an eligible person whereby the authority obtains
rights from or in an invention or product or proceeds from an invention or
product in exchange for the granting of financial and other assistance to the
person.
NEW SECTION. Sec. 2. 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 immediately.
