AN
ACT Relating to enhancing economic vitality; amending RCW 43.160.010,
43.160.020, 43.160.060, 43.160.070, 43.160.900, 43.160.200, 43.180.160,
82.60.020, 82.60.040, 82.60.070, 82.62.010, 82.62.030, 43.168.010, 43.168.020,
43.168.110, 43.168.120, 43.17.250, 43.155.070, 70.146.070, and 43.131.386;
reenacting and amending RCW 43.160.076; adding a new section to chapter 43.63A
RCW; adding a new section to chapter 82.60 RCW; adding a new section to chapter
82.62 RCW; adding a new section to chapter 43.168 RCW; creating new sections;
repealing RCW 43.160.212; repealing 1997 c 367 s 11, 1995 c 226 s 8, 1993 c 316
s 7, and 1991 c 314 s 33 (uncodified); providing an effective date; and
providing an expiration date.
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;
(c)
Encouraging wider access to financial resources for both large and small
industrial development projects;
(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 rural
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. Rural 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. Rural 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 rural 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)
"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)
"Industrial development facilities" means "industrial
development facilities" as defined in RCW 39.84.020.
(6)
"Industrial development revenue bonds" means tax-exempt revenue bonds
used to fund industrial development facilities.
(7)
"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)
"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)
"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)
"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)
"Public facilities" means a project of a local government for the
planning, acquisition, construction, repair, reconstruction, replacement,
rehabilitation, or improvement of bridges, roads, domestic and industrial
water, earth stabilization, sanitary sewer, storm sewer, railroad,
electricity, telecommunications, transportation, natural gas, buildings or
structures, and port facilities, all for the purpose of job creation, job
retention, or job expansion.
(12)
"Rural county" means a county with a population density of fewer
than one hundred persons per square mile as determined by the office of financial
management.
(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;
(c)
Projected or actual direct lumber and wood products job losses of one hundred
positions or more;
(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.
(c)
For the acquisition of real property, including buildings and other fixtures
which are a part of real property.
(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))
rural 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:
(a)
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)); and
(b)
The rate of return of the state's investment, that includes the expected
increase in state and local tax revenues associated with the project.
(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
43.160.070 and 1998 c 321 s 27 (Referendum Bill No. 49) are each amended to
read as follows:
Public
facilities financial assistance, when authorized by the board, is subject to
the following conditions:
(1)
The moneys in the public facilities construction loan revolving account and the
distressed county public facilities construction loan account shall be used
solely to fulfill commitments arising from financial assistance authorized in
this chapter or, during the 1989-91 fiscal biennium, for economic development
purposes as appropriated by the legislature. The total outstanding amount
which the board shall dispense at any time pursuant to this section shall not
exceed the moneys available from the accounts. The total amount of outstanding
financial assistance in Pierce, King, and Snohomish counties shall never exceed
sixty percent of the total amount of outstanding financial assistance disbursed
by the board under this chapter without reference to financial assistance
provided under RCW 43.160.220.
(2)
On contracts made for public facilities loans the board shall determine the
interest rate which loans shall bear. The interest rate shall not exceed ten
percent per annum. The board may provide reasonable terms and conditions for
repayment for loans, including partial forgiveness of loan principal and
interest payments on projects located in rural counties or rural natural
resources impact areas, as the board determines. The loans shall not
exceed twenty years in duration.
(3)
Repayments of loans made from the public facilities construction loan revolving
account under the contracts for public facilities construction loans shall be
paid into the public facilities construction loan revolving account.
Repayments of loans made from the distressed county public facilities
construction loan account under the contracts for public facilities
construction loans shall be paid into the distressed county public facilities
construction loan account. Repayments of loans from moneys from the new
appropriation from the public works assistance account for the fiscal biennium
ending June 30, 1999, shall be paid into the public works assistance account.
(4)
When every feasible effort has been made to provide loans and loans are not
possible, the board may provide grants upon finding that unique circumstances
exist.
Sec.
105. 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)) rural 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))
rural 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)) rural
counties or rural natural resources impact areas.
(((3)
This section expires June 30, 2000.))
*Sec.
106.
RCW 43.160.900 and 1993 c 320 s 8 are each amended to read as follows:
(1)
The community economic revitalization board shall report to the appropriate
standing committees of the legislature biennially on the implementation of this
chapter. The report shall include information on the number of applications
for community economic revitalization board assistance, the number and types of
projects approved, the grant or loan amount awarded each project, the projected
number of jobs created or retained by each project, the actual number of jobs
created or retained by each project, the amount of state and local tax
revenue generated by projects funded under this chapter, the number of
delinquent loans, and the number of project terminations. The report may also
include additional performance measures and recommendations for programmatic
changes. The first report shall be submitted by December 1, 1994.
(2)
The joint legislative audit and review committee shall conduct performance
reviews on the effectiveness of the program administered by the board under
this chapter. The committee may contract for services to conduct the
performance reviews. The costs for the performance reviews shall be paid from
repayments of principal and interest on loans made under this chapter. The
performance reviews shall be submitted to the appropriate committees of the
legislature by December 1, 2000, December 1, 2004, and December 1, 2008.
*Sec. 106 was vetoed. See message at end of chapter.
Sec.
107. 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 rural 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.
PART
II
HOUSING
Increasing the Housing
Finance Commission's Debt Limit
*Sec.
201.
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.
*Sec. 201 was vetoed. See message at end of chapter.
NEW
SECTION. Sec. 202. 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.
PART
III
DISTRESSED
AREA TAX INCENTIVES
Distressed Area
Sales and Use Tax Deferral
Sec.
301. RCW
82.60.020 and 1996 c 290 s 4 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Applicant" means a person applying for a tax deferral under this
chapter.
(2)
"Department" means the department of revenue.
(3)
"Eligible area" means((: (a) A county in which the average level
of unemployment for the three years before the year in which an application is
filed under this chapter exceeds the average state unemployment for those years
by twenty percent; (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; (c) a metropolitan statistical area, as defined by the office of
federal statistical policy and standards, United States department of commerce,
in which the average level of unemployment for the calendar year immediately
preceding the year in which an application is filed under this chapter exceeds
the average state unemployment for such calendar year by twenty percent; (d) a designated
community empowerment zone approved under RCW 43.63A.700 or a county containing
such a community empowerment zone; (e) a town with a population of less than
twelve hundred persons in those counties that are not covered under (a) of this
subsection that are timber impact areas as defined in RCW 43.31.601; (f) a
county designated by the governor as an eligible area under RCW 82.60.047; or
(g) a county that is contiguous to a county that qualifies as an eligible area
under (a) or (f) of this subsection)) a county with fewer than one
hundred persons per square mile as determined annually by the office of
financial management and published by the department of revenue effective for
the period July 1st through June 30th.
(4)(a)
"Eligible investment project" means((:
(i))) an
investment project in an eligible area as defined in subsection (3)(((a),
(b), (c), (e), or (f))) of this section((; or
(ii)
That portion of an investment project in an eligible area as defined in
subsection (3)(d) or (g) of this section which is directly utilized to create
at least one new full-time qualified employment position for each three hundred
thousand dollars of investment on which a deferral is requested in an
application approved before July 1, 1994, and for each seven hundred fifty
thousand dollars of investment on which a deferral is requested in an
application approved after June 30, 1994)).
(b)
The lessor/owner of a qualified building is not eligible for a deferral unless
the underlying ownership of the buildings, machinery, and equipment vests
exclusively in the same person, or unless the lessor by written contract agrees
to pass the economic benefit of the deferral to the lessee in the form of
reduced rent payments.
(c)
((For purposes of (a)(ii) of this subsection:
(i)
The department shall consider the entire investment project, including any
investment in machinery and equipment that otherwise qualifies for exemption
under RCW 82.08.02565 or 82.12.02565, for purposes of determining the portion
of the investment project that qualifies for deferral as an eligible investment
project; and
(ii)
The number of new full-time qualified employment positions created by an
investment project shall be deemed to be reduced by the number of full-time
employment positions maintained by the recipient in any other community in this
state that are displaced as a result of the investment project.
(d)))
"Eligible investment project" does not include any portion of an
investment project undertaken by a light and power business as defined in RCW
82.16.010(5), other than that portion of a cogeneration project that is used to
generate power for consumption within the manufacturing site of which the
cogeneration project is an integral part, or investment projects which have
already received deferrals under this chapter.
(5)
"Investment project" means an investment in qualified buildings or
qualified machinery and equipment, including labor and services rendered in the
planning, installation, and construction of the project.
(6)
"Manufacturing" means all activities of a commercial or industrial
nature wherein labor or skill is applied, by hand or machinery, to materials so
that as a result thereof a new, different, or useful substance or article of
tangible personal property is produced for sale or commercial or industrial use
and shall include the production or fabrication of specially made or custom
made articles. "Manufacturing" also includes computer programming,
the production of computer software, and other computer-related services, and
the activities performed by research and development laboratories and
commercial testing laboratories.
(7)
"Person" has the meaning given in RCW 82.04.030.
(8)
"Qualified buildings" means construction of new structures, and
expansion or renovation of existing structures for the purpose of increasing
floor space or production capacity used for manufacturing and research and
development activities, including plant offices and warehouses or other
facilities for the storage of raw material or finished goods if such facilities
are an essential or an integral part of a factory, mill, plant, or laboratory
used for manufacturing or research and development. If a building is used
partly for manufacturing or research and development and partly for other purposes,
the applicable tax deferral shall be determined by apportionment of the costs
of construction under rules adopted by the department.
(9)
(("Qualified employment position" means a permanent full-time
employee employed in the eligible investment project during the entire tax
year.
(10)))
"Qualified machinery and equipment" means all new industrial and
research fixtures, equipment, and support facilities that are an integral and
necessary part of a manufacturing or research and development operation.
"Qualified machinery and equipment" includes: Computers; software;
data processing equipment; laboratory equipment; manufacturing components such
as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating
structures; and all equipment used to control or operate the machinery.
(((11)))
(10) "Recipient" means a person receiving a tax deferral under
this chapter.
(((12)))
(11) "Research and development" means the development,
refinement, testing, marketing, and commercialization of a product, service, or
process before commercial sales have begun. As used in this subsection,
"commercial sales" excludes sales of prototypes or sales for market
testing if the total gross receipts from such sales of the product, service, or
process do not exceed one million dollars.
Sec.
302. RCW
82.60.040 and 1997 c 156 s 5 are each amended to read as follows:
(1)
The department shall issue a sales and use tax deferral certificate for state
and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on
each eligible investment project that((:
(a))) is
located in an eligible area as defined in RCW 82.60.020(((3) (a), (b), (c),
(e), or (f);
(b)
Is located in an eligible area as defined in RCW 82.60.020(3)(g) if
seventy-five percent of the new qualified employment positions are to be filled
by residents of a contiguous county that is an eligible area as defined in RCW
82.60.020(3) (a) or (f); or
(c)
Is located in an eligible area as defined in RCW 82.60.020(3)(d) if
seventy-five percent of the new qualified employment positions are to be filled
by residents of a designated community empowerment zone approved under RCW
43.63A.700 located within the county in which the eligible investment project
is located)).
(2)
The department shall keep a running total of all deferrals granted under this
chapter during each fiscal biennium.
(3)
This section expires July 1, 2004.
Sec.
303. RCW
82.60.070 and 1995 1st sp.s. c 3 s 9 are each amended to read as follows:
(1)
((Each recipient of a deferral granted under this chapter prior to July 1,
1994, shall submit a report to the department on December 31st of each year
during the repayment period until the tax deferral is repaid.)) Each
recipient of a deferral granted under this chapter after June 30, 1994, shall
submit a report to the department on December 31st of the year in which the
investment project is certified by the department as having been operationally
completed, and on December 31st of each of the seven succeeding calendar
years. The report shall contain information, as required by the department,
from which the department may determine whether the recipient is meeting the
requirements of this chapter. If the recipient fails to submit a report or
submits an inadequate report, the department may declare the amount of deferred
taxes outstanding to be immediately assessed and payable.
(2)
If, on the basis of a report under this section or other information, the
department finds that an investment project is not eligible for tax deferral
under this chapter ((for reasons other than failure to create the required
number of qualified employment positions)), the amount of deferred taxes
outstanding for the project shall be immediately due.
(3)
((If, on the basis of a report under this section or other information, the
department finds that an investment project for which a deferral has been
granted under this chapter prior to July 1, 1994, has been operationally
complete for three years and has failed to create the required number of
qualified employment positions, the department shall assess interest, but not
penalties, on the deferred taxes for the project. The interest shall be
assessed at the rate provided for delinquent excise taxes, shall be assessed
retroactively to the date of deferral, and shall accrue until the deferred
taxes are repaid.
(4)
If, on the basis of a report under this section or other information, the
department finds that an investment project for which a deferral has been
granted under this chapter after June 30, 1994, has been operationally complete
for three years and has failed to create the required number of qualified
employment positions, the amount of taxes not eligible for deferral shall be
immediately due. The department shall assess interest at the rate provided for
delinquent excise taxes, but not penalties, retroactively to the date of
deferral.
(5)
If, on the basis of a report under this section or other information, the
department finds that an investment project qualifying for deferral under RCW
82.60.040(1) (b) or (c) has failed to comply with any requirement of RCW
82.60.045 for any calendar year for which reports are required under subsection
(1) of this section, twelve and one-half percent of the amount of deferred
taxes shall be immediately due. The department shall assess interest at the
rate provided for delinquent excise taxes, but not penalties, retroactively to
the date of deferral.
(6)))
Notwithstanding any other subsection of this section, deferred taxes need not
be repaid on machinery and equipment for lumber and wood products industries,
and sales of or charges made for labor and services, of the type which
qualifies for exemption under RCW 82.08.02565 or 82.12.02565 to the extent the
taxes have not been repaid before July 1, 1995.
(((7)))
(4) Notwithstanding any other subsection of this section, deferred taxes
on the following need not be repaid:
(a)
Machinery and equipment, and sales of or charges made for labor and services,
which at the time of purchase would have qualified for exemption under RCW
82.08.02565; and
(b)
Machinery and equipment which at the time of first use would have qualified for
exemption under RCW 82.12.02565.
NEW
SECTION. Sec. 304. A
new section is added to chapter 82.60 RCW to read as follows:
(1)
For the purposes of this section:
(a)
"Eligible area" also means a designated community empowerment zone
approved under RCW 43.63A.700 or a county containing a community empowerment
zone.
(b)
"Eligible investment project" also means an investment project in an
eligible area as defined in this section.
(2)
In addition to the provisions of RCW 82.60.040, the department shall issue a
sales and use tax deferral certificate for state and local sales and use taxes
due under chapters 82.08, 82.12, and 82.14 RCW, on each eligible investment
project that is located in an eligible area, if the applicant establishes that
at the time the project is operationally complete:
(a)
The applicant will hire at least one qualified employment position for each
seven hundred fifty thousand dollars of investment on which a deferral is
requested; and
(b)
The positions will be filled by persons who at the time of hire are residents
of the community empowerment zone in which the project is located. As used in
this subsection, "resident" means the person makes his or her home in
the community empowerment zone. A mailing address alone is insufficient to
establish that a person is a resident for the purposes of this section. The
persons must be hired after the date the application is filed with the
department.
(3)
All other provisions and eligibility requirements of this chapter apply to
applicants eligible under this section.
(4)
If a person does not meet the requirements of this section by the end of the
calendar year following the year in which the project is certified as operationally
complete, all deferred taxes are immediately due.
Distressed Area
Business and Occupation Tax Job Credit
Sec.
305. RCW
82.62.010 and 1996 c 290 s 5 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Applicant" means a person applying for a tax credit under this
chapter.
(2)
"Department" means the department of revenue.
(3)
"Eligible area" means((: (a) A county in which the average level
of unemployment for the three years before the year in which an application is
filed under this chapter exceeds the average state unemployment for those years
by twenty percent; (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; (c) a metropolitan statistical area, as defined by the office of
federal statistical policy and standards, United States department of commerce,
in which the average level of unemployment for the calendar year immediately
preceding the year in which an application is filed under this chapter exceeds
the average state unemployment for such calendar year by twenty percent; (d) a
designated community empowerment zone approved under RCW 43.63A.700; or (e)
subcounty areas in those counties that are not covered under (a) of this
subsection that are timber impact areas as defined in RCW 43.31.601)) an
area as defined in RCW 82.60.020.
(4)(a)
"Eligible business project" means manufacturing or research and
development activities which are conducted by an applicant in an eligible area
at a specific facility, provided the applicant's average full-time qualified
employment positions at the specific facility will be at least fifteen percent
greater in the year for which the credit is being sought than the applicant's
average full-time qualified employment positions at the same facility in the
immediately preceding year.
(b)
"Eligible business project" does not include any portion of a
business project undertaken by a light and power business as defined in RCW
82.16.010(5) or that portion of a business project creating qualified full-time
employment positions outside an eligible area or those recipients of a sales
tax deferral under chapter 82.61 RCW.
(5)
"Manufacturing" means all activities of a commercial or industrial
nature wherein labor or skill is applied, by hand or machinery, to materials so
that as a result thereof a new, different, or useful substance or article of
tangible personal property is produced for sale or commercial or industrial use
and shall include the production or fabrication of specially made or custom
made articles. "Manufacturing" also includes computer programming,
the production of computer software, and other computer-related services, and
the activities performed by research and development laboratories and
commercial testing laboratories.
(6)
"Person" has the meaning given in RCW 82.04.030.
(7)
"Qualified employment position" means a permanent full-time employee
employed in the eligible business project during the entire tax year.
(8)
"Tax year" means the calendar year in which taxes are due.
(9)
"Recipient" means a person receiving tax credits under this chapter.
(10)
"Research and development" means the development, refinement,
testing, marketing, and commercialization of a product, service, or process
before commercial sales have begun. As used in this subsection,
"commercial sales" excludes sales of prototypes or sales for market
testing if the total gross receipts from such sales of the product, service, or
process do not exceed one million dollars.
Sec.
306. RCW
82.62.030 and 1997 c 366 s 5 are each amended to read as follows:
(1)
A person shall be allowed a credit against the tax due under chapter 82.04 RCW
as provided in this section. ((For an application approved before January
1, 1996, the credit shall equal one thousand dollars for each qualified
employment position directly created in an eligible business project. For an
application approved on or after January 1, 1996, the credit shall equal two
thousand dollars for each qualified employment position directly created in an
eligible business project. For an application approved on or after July 1,
1997,)) The credit shall equal: (a) Four thousand dollars
for each qualified employment position with wages and benefits greater than
forty thousand dollars annually that is directly created in an eligible
business((. For an application approved on or after July 1, 1997, the
credit shall equal)) and (b) two thousand dollars for each qualified
employment position with wages and benefits less than or equal to forty
thousand dollars annually that is directly created in an eligible business.
(2)
The department shall keep a running total of all credits granted under this
chapter during each fiscal year. The department shall not allow any credits
which would cause the tabulation to exceed ((five million five hundred
thousand dollars in fiscal year 1998 or 1999 or)) seven million five
hundred thousand dollars in any fiscal year ((thereafter)). If all or
part of an application for credit is disallowed under this subsection, the
disallowed portion shall be carried over for approval the next fiscal year.
However, the applicant's carryover into the next fiscal year is only permitted
if the tabulation for the next fiscal year does not exceed the cap for that
fiscal year as of the date on which the department has disallowed the
application.
(3)
No recipient may use the tax credits to decertify a union or to displace
existing jobs in any community in the state.
(4)
No recipient may receive a tax credit on taxes which have not been paid during
the taxable year.
NEW
SECTION. Sec. 307. A
new section is added to chapter 82.62 RCW to read as follows:
(1)
For the purposes of this section "eligible area" also means a
designated community empowerment zone approved under RCW 43.63A.700.
(2)
An eligible business project located within an eligible area as defined in this
section qualifies for a credit under this chapter for those employees who at
the time of hire are residents of the community empowerment zone in which the
project is located, if the fifteen percent threshold is met. As used in this
subsection, "resident" means the person makes his or her home in the
community empowerment zone. A mailing address alone is insufficient to
establish that a person is a resident for the purposes of this section.
(3)
All other provisions and eligibility requirements of this chapter apply to
applicants eligible under this section.
PART
IV
ECONOMIC
VITALITY COMMITTEE
*NEW
SECTION. Sec. 401.
(1) The legislature shall establish an ad hoc
economic development group to analyze potential economic development projects
of state-wide significance and recommend appropriate administrative or
legislative actions.
(2)
The group shall include one representative each from the department of
community, trade, and economic development, the department of agriculture, and
the department of revenue as well as two representatives from rural economic
development councils appointed by the legislature.
(3)
The group shall promote economic development and business diversification
throughout the state with special attention given to the economic difficulties
of rural counties.
(4)
In order to expedite coordinated responses, the governor may direct the group
to meet on an emergency basis when projects of state-wide significance arise.
(5)
The department of community, trade, and economic development shall establish
criteria to determine whether a project meets the standards of a "project
of state-wide significance." These criteria may include such economic
indicators as local unemployment and personal income levels and project scope
indicators such as the assessed value of the project in relation to the
assessed value of the county.
*Sec. 401 was vetoed. See message at end of chapter.
PART
V
RURAL
WASHINGTON LOAN FUND
Sec.
501. RCW
43.168.010 and 1985 c 164 s 1 are each amended to read as follows:
The
legislature finds that:
(1)
The economic health and well-being of the state, particularly in areas of high
unemployment, economic stagnation, and poverty, is of substantial public
concern.
(2)
The consequences of minimal economic activity and persistent unemployment and
underemployment are serious threats to the safety, health, and welfare of
residents of these areas, decreasing the value of private investments and
jeopardizing the sources of public revenue.
(3)
The economic and social interdependence of communities and the vitality of
industrial and economic activity necessitates, and is in part dependent on
preventing substantial dislocation of residents and rebuilding the
diversification of the areas' economy.
(4)
The ability to remedy problems in stagnant areas of the state is beyond the
power and control of the regulatory process and influence of the state, and the
ordinary operations of private enterprise without additional governmental
assistance are insufficient to adequately remedy the problems of poverty and
unemployment.
(5)
The revitalization of depressed communities requires the stimulation of private
investment, the development of new business ventures, the provision of capital
to ventures sponsored by local organizations and capable of growth in the
business markets, and assistance to viable, but under-financed, small
businesses in order to create and preserve jobs that are sustainable in the
local economy.
Therefore,
the legislature declares there to be a substantial public purpose in providing
capital to promote economic development and job creation in areas of economic
stagnation, unemployment, and poverty. To accomplish this purpose, the
legislature hereby creates the rural Washington ((state development))
loan fund ((committee)) and vests in the ((committee)) department
of community, trade, and economic development the authority to spend
federal funds to stimulate the economy of distressed areas.
Sec.
502. RCW
43.168.020 and 1996 c 290 s 3 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
(("Committee" means the Washington state development loan fund
committee.
(2)))
"Department" means the department of community, trade, and economic
development.
(((3)))
(2) "Director" means the director of community, trade, and
economic development.
(((4)))
(3) "Distressed area" means: (a) A rural county;
(b) a county which has an unemployment rate which is twenty percent above
the state average for the immediately previous three years; (((b))) (c)
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; (((c)))
(d) a metropolitan statistical area, as defined by the office of federal
statistical policy and standards, United States department of commerce, in
which the average level of unemployment for the calendar year immediately
preceding the year in which an application is filed under this chapter exceeds
the average state unemployment for such calendar year by twenty percent; (((d)))
(e) an area within a county, which area: (i) Is composed of contiguous
census tracts; (ii) has a minimum population of five thousand persons; (iii)
has at least seventy percent of its families and unrelated individuals with
incomes below eighty percent of the county's median income for families and
unrelated individuals; and (iv) has an unemployment rate which is at least
forty percent higher than the county's unemployment rate; or (((e))) (f)
a county designated as a rural natural resources impact area under RCW
43.31.601 if an application is filed by July 1, 1997. For purposes of this
definition, "families and unrelated individuals" has the same meaning
that is ascribed to that term by the federal department of housing and urban
development in its regulations authorizing action grants for economic
development and neighborhood revitalization projects.
(((5)))
(4) "Fund" means the rural Washington ((state
development)) loan fund.
(((6)))
(5) "Local development organization" means a nonprofit
organization which is organized to operate within an area, demonstrates a
commitment to a long-standing effort for an economic development program, and
makes a demonstrable effort to assist in the employment of unemployed or
underemployed residents in an area.
(((7)))
(6) "Project" means the establishment of a new or expanded
business in an area which when completed will provide employment
opportunities. "Project" also means the retention of an existing
business in an area which when completed will provide employment opportunities.
(7)
"Rural county" means a county with a population density of fewer that
one hundred persons per square mile as determined by the office of financial
management.
NEW
SECTION. Sec. 503. A
new section is added to chapter 43.168 RCW to read as follows:
In
addition to the requirements of RCW 43.168.050, the department shall, subject
to applicable federal funding criteria, give priority to applications that
capitalize or recapitalize an existing or new local revolving fund based on
criteria established by the department.
Sec.
504. RCW
43.168.110 and 1992 c 235 s 11 are each amended to read as follows:
There
is established the rural Washington ((state development)) loan
fund which shall be an account in the state treasury. All loan payments of
principal and interest which are transferred under RCW 43.168.050 shall be
deposited into the account. Moneys in the account may be spent only after
legislative appropriation for loans under this chapter. Any expenditures of
these moneys shall conform to federal law.
Sec.
505. RCW
43.168.120 and 1987 c 461 s 6 are each amended to read as follows:
(1)
The ((committee)) department shall develop guidelines for ((development))
rural Washington loan funds to be used to fund existing economic
development revolving loan funds. Consideration shall be given to the
selection process for grantees, loan quality criteria, legal and regulatory
issues, and ways to minimize duplication between ((development)) rural
Washington loan funds and local economic development revolving loan funds.
(2)
If it appears that all of the funds appropriated to the ((development loan))
fund for a biennium will not be fully granted to local governments within that
biennium, the ((committee)) department may make available up to
twenty percent of the eighty percent of the funds available to projects in
distressed areas under RCW 43.168.050(((9))) (10) for grants to
local governments to assist existing economic development revolving loan funds
in distressed areas. The grants to local governments shall be utilized to make
loans to businesses that meet the specifications for loans under this chapter.
The local governments shall, to the extent permitted under federal law, agree to
convey to the ((development loan)) fund the principal and interest
payments from existing loans that the local governments have made through their
revolving loan funds. Under circumstances where the federal law does not
permit the ((committee)) department to require such transfer, the
((committee)) department shall give priority to applications
where the applicants on their own volition make commitments to provide for the
transfer.
PART
VI
PUBLIC
FACILITIES GRANTS AND LOANS
Sec.
601. RCW
43.17.250 and 1991 sp.s. c 32 s 25 are each amended to read as follows:
(1)
Whenever a state agency is considering awarding grants or loans for a county,
city, or town planning under RCW 36.70A.040 to finance public facilities,
it shall consider whether the county, city, or town ((that is))
requesting the grant or loan ((is a party to a county-wide planning policy
under RCW 36.70A.210 relating to the type of public facility for which the
grant or loan is sought, and shall accord additional preference to the county,
city, or town if such county-wide planning policy exists)) has adopted a
comprehensive plan and development regulations as required by RCW 36.70A.040.
(2)
When reviewing competing requests from counties, cities, or towns planning
under RCW 36.70A.040, a state agency considering awarding grants or loans for
public facilities shall accord additional preference to those counties, cities,
or towns that have adopted a comprehensive plan and development regulations as
required by RCW 36.70A.040. For the purposes of the preference accorded in
this section, a county, city, or town planning under RCW 36.70A.040 is deemed
to have satisfied the requirements for adopting a comprehensive plan and
development regulations specified in RCW 36.70A.040 if the county, city, or
town:
(a)
Adopts or has adopted a comprehensive plan and development regulations within
the time periods specified in RCW 36.70A.040;
(b)
Adopts or has adopted a comprehensive plan and development regulations before
submitting a request for a grant or loan if the county, city, or town failed to
adopt a comprehensive plan and/or development regulations within the time
periods specified in RCW 36.70A.040; or
(c)
Demonstrates substantial progress toward adopting a comprehensive plan or
development regulations within the time periods specified in RCW 36.70A.040. A
county, city, or town that is more than six months out of compliance with the
time periods specified in RCW 36.70A.040 shall not be deemed to demonstrate
substantial progress for purposes of this section.
(3)
The preference specified in subsection (2) of this section applies only to
competing requests for grants or loans from counties, cities, or towns planning
under RCW 36.70A.040. A request from a county, city, or town planning under
RCW 36.70A.040 shall be accorded no additional preference based on subsection
(2) of this section over a request from a county, city, or town not planning
under RCW 36.70A.040.
(4)
Whenever a state agency is considering awarding grants or loans ((to a
special district)) for public facilities to a special district
requesting funding for a proposed facility located in a county, city, or town
planning under RCW 36.70A.040, it shall consider whether the county, city,
or town in whose planning jurisdiction the proposed facility is located ((is
a party to a county-wide planning policy under RCW 36.70A.210 relating to the
type of public facility for which the grant or loan is sought)) has
adopted a comprehensive plan and development regulations as required by RCW
36.70A.040 and shall apply the preference specified in subsection (2) of this
section and restricted in subsection (3) of this section.
Sec.
602. RCW
43.155.070 and 1997 c 429 s 29 are each amended to read as follows:
(1)
To qualify for loans or pledges under this chapter the board must determine
that a local government meets all of the following conditions:
(a)
The city or county must be imposing a tax under chapter 82.46 RCW at a rate of
at least one-quarter of one percent;
(b)
The local government must have developed a long-term plan for financing public
works needs; and
(c)
The local government must be using all local revenue sources which are
reasonably available for funding public works, taking into consideration local
employment and economic factors((; and)).
(((d)))
(2) Except where necessary to address a public health need or
substantial environmental degradation, a county, city, or town ((that is
required or chooses to plan)) planning under RCW 36.70A.040 must
have adopted a comprehensive plan ((in conformance with the requirements of
chapter 36.70A RCW, after it is required that the comprehensive plan be
adopted, and must have adopted development regulations in conformance with the
requirements of chapter 36.70A RCW, after it is required that development
regulations be adopted)), including a capital facilities plan element,
and development regulations as required by RCW 36.70A.040. This subsection
does not require any county, city, or town planning under RCW 36.70A.040 to
adopt a comprehensive plan or development regulations before requesting or
receiving a loan or loan guarantee under this chapter if such request is made
before the expiration of the time periods specified in RCW 36.70A.040. A
county, city, or town planning under RCW 36.70A.040 which has not adopted a
comprehensive plan and development regulations within the time periods
specified in RCW 36.70A.040 is not prohibited from receiving a loan or loan
guarantee under this chapter if the comprehensive plan and development
regulations are adopted as required by RCW 36.70A.040 before submitting a
request for a loan or loan guarantee.
(3)
In considering awarding loans for public facilities to special districts
requesting funding for a proposed facility located in a county, city, or town
planning under RCW 36.70A.040, the board shall consider whether the county,
city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the
proposed facility is located has adopted a comprehensive plan and development
regulations as required by RCW 36.70A.040.
(((2)))
(4) The board shall develop a priority process for public works projects
as provided in this section. The intent of the priority process is to maximize
the value of public works projects accomplished with assistance under this
chapter. The board shall attempt to assure a geographical balance in assigning
priorities to projects. The board shall consider at least the following
factors in assigning a priority to a project:
(a)
Whether the local government receiving assistance has experienced severe fiscal
distress resulting from natural disaster or emergency public works needs;
(b)
Whether the project is critical in nature and would affect the health and
safety of a great number of citizens;
(c)
The cost of the project compared to the size of the local government and amount
of loan money available;
(d)
The number of communities served by or funding the project;
(e)
Whether the project is located in an area of high unemployment, compared to the
average state unemployment;
(f)
Whether the project is the acquisition, expansion, improvement, or renovation
by a local government of a public water system that is in violation of health
and safety standards, including the cost of extending existing service to such
a system;
(g)
The relative benefit of the project to the community, considering the present level
of economic activity in the community and the existing local capacity to
increase local economic activity in communities that have low economic growth;
and
(h)
Other criteria that the board considers advisable.
(((3)))
(5) Existing debt or financial obligations of local governments shall
not be refinanced under this chapter. Each local government applicant shall
provide documentation of attempts to secure additional local or other sources
of funding for each public works project for which financial assistance is
sought under this chapter.
(((4)))
(6) Before November 1 of each year, the board shall develop and submit
to the appropriate fiscal committees of the senate and house of representatives
a description of the loans made under RCW 43.155.065, 43.155.068, and
subsection (((7))) (9) of this section during the preceding
fiscal year and a prioritized list of projects which are recommended for
funding by the legislature, including one copy to the staff of each of the
committees. The list shall include, but not be limited to, a description of
each project and recommended financing, the terms and conditions of the loan or
financial guarantee, the local government jurisdiction and unemployment rate,
demonstration of the jurisdiction's critical need for the project and
documentation of local funds being used to finance the public works project.
The list shall also include measures of fiscal capacity for each jurisdiction
recommended for financial assistance, compared to authorized limits and state
averages, including local government sales taxes; real estate excise taxes;
property taxes; and charges for or taxes on sewerage, water, garbage, and other
utilities.
(((5)))
(7) The board shall not sign contracts or otherwise financially obligate
funds from the public works assistance account before the legislature has
appropriated funds for a specific list of public works projects. The
legislature may remove projects from the list recommended by the board. The
legislature shall not change the order of the priorities recommended for
funding by the board.
(((6)))
(8) Subsection (((5))) (7) of this section does not apply
to loans made under RCW 43.155.065, 43.155.068, and subsection (((7))) (9)
of this section.
(((7)))
(9)(a) Loans made for the purpose of capital facilities plans shall be
exempted from subsection (((5))) (7) of this section. In no case
shall the total amount of funds utilized for capital facilities plans and
emergency loans exceed the limitation in RCW 43.155.065.
(b)
For the purposes of this section "capital facilities plans" means
those plans required by the growth management act, chapter 36.70A RCW, and
plans required by the public works board for local governments not subject to
the growth management act.
(((8)))
(10) To qualify for loans or pledges for solid waste or recycling
facilities under this chapter, a city or county must demonstrate that the solid
waste or recycling facility is consistent with and necessary to implement the
comprehensive solid waste management plan adopted by the city or county under
chapter 70.95 RCW.
Sec.
603. RCW
70.146.070 and 1997 c 429 s 30 are each amended to read as follows:
(1)
When making grants or loans for water pollution control facilities, the
department shall consider the following:
(((1)))
(a) The protection of water quality and public health;
(((2)))
(b) The cost to residential ratepayers if they had to finance water
pollution control facilities without state assistance;
(((3)))
(c) Actions required under federal and state permits and compliance
orders;
(((4)))
(d) The level of local fiscal effort by residential ratepayers since
1972 in financing water pollution control facilities;
(((5)))
(e) The extent to which the applicant county or city, or if the
applicant is another public body, the extent to which the county or city in
which the applicant public body is located, has established programs to
mitigate nonpoint pollution of the surface or subterranean water sought to be
protected by the water pollution control facility named in the application for
state assistance; and
(((6)))
(f) The recommendations of the Puget Sound action team and any other
board, council, commission, or group established by the legislature or a state
agency to study water pollution control issues in the state.
(2)
Except where necessary to address a public health need or substantial
environmental degradation, a county, city, or town ((that is required or
chooses to plan)) planning under RCW 36.70A.040 may not receive a
grant or loan for water pollution control facilities unless it has adopted a
comprehensive plan ((in conformance with the requirements of chapter 36.70A
RCW, after it is required that the comprehensive plan be adopted, or unless it
has adopted development regulations in conformance with the requirements of
chapter 36.70A RCW, after it is required that development regulations be
adopted)), including a capital facilities plan element, and development
regulations as required by RCW 36.70A.040. This subsection does not require
any county, city, or town planning under RCW 36.70A.040 to adopt a
comprehensive plan or development regulations before requesting or receiving a
grant or loan under this chapter if such request is made before the expiration
of the time periods specified in RCW 36.70A.040. A county, city, or town
planning under RCW 36.70A.040 which has not adopted a comprehensive plan and
development regulations within the time periods specified in RCW 36.70A.040 is
not prohibited from receiving a grant or loan under this chapter if the
comprehensive plan and development regulations are adopted as required by RCW
36.70A.040 before submitting a request for a grant or loan.
(3)
Whenever the department is considering awarding grants or loans for public
facilities to special districts requesting funding for a proposed facility
located in a county, city, or town planning under RCW 36.70A.040, it shall
consider whether the county, city, or town planning under RCW 36.70A.040 in
whose planning jurisdiction the proposed facility is located has adopted a
comprehensive plan and development regulations as required by RCW 36.70A.040.
PART
VII
REPEALED
SECTIONS
Sec.
701. 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;
(5))) RCW
43.63A.021 and 1997 c 367 s 5 & 1995 c 226 s 11;
(((6)))
(5) 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)))
(6) 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))) (7)
RCW 28B.50.258 and 1995 c 226 s 18 & 1991 c 315 s 16;
(((10)))
(8) RCW 28B.50.262 and 1995 c 226 s 19 & 1994 c 282 s 3;
(((11)))
(9) 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)))
(10) RCW 28B.80.575 and 1995 c 269 s 1001, 1995 c 226 s 21,
& 1991 c 315 s 19;
(((13)))
(11) 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)))
(12) RCW 28B.80.585 and 1995 c 226 s 23 & 1991 c 315 s 21;
(((15)))
(13) 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)))
(14) 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)))
(15) RCW 43.168.140 and 1995 c 226 s 28 & 1991 c 314 s 20;
(((18)))
(16) RCW 50.12.270 and 1997 c 367 s 17, 1995 c 226 s 30,
& 1991 c 315 s 3;
(((19)))
(17) RCW 50.70.010 and 1995 c 226 s 31, 1992 c 21 s 1, & 1991 c 315
s 5; and
(((20)))
(18) RCW 50.70.020 and 1995 c 226 s 32 & 1991 c 315 s 6.
NEW
SECTION. Sec. 702. RCW
43.160.212 (Rural natural resources impact areas--Loans for public
works facilities) 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 are each repealed.
NEW
SECTION. Sec. 703. 1997
c 367 s 11, 1995 c 226 s 8, 1993 c 316 s 7, & 1991 c 314 s 33 (uncodified)
are each repealed.
PART
VIII
MISCELLANEOUS
NEW
SECTION. Sec. 801. Part
headings and subheadings used in this act are not any part of the law.
NEW
SECTION. Sec. 802. This
act takes effect August 1, 1999.
NEW
SECTION. Sec. 803.
Sections 301 through 303, 305, 306, and 601 through 603 of this act do not
affect any existing right acquired or liability or obligation under the
sections amended or repealed in those sections or any rule or order adopted
under those sections, nor does it affect any proceeding instituted under those
sections.
NEW
SECTION. Sec. 804. 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.
