AN ACT Relating to the
community economic revitalization board; amending RCW 43.160.060; reenacting
and amending RCW 43.84.092; adding a new section to chapter 43.160 RCW;
creating a new section; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. The legislature finds
that the community economic revitalization board plays a valuable and unique
role in stimulating and diversifying local economies, attracting private
investment, creating new jobs, and generating additional state and local tax
revenues by investing in public facilities projects that result in new or
expanded economic development. The legislature also finds that it is in the
best interest of the state and local communities to secure a stable and
dedicated source of funds for the community economic revitalization board. It
is the intent of the legislature to establish an ongoing funding source for the
community economic revitalization board that will be used exclusively to
advance economic development infrastructure. This act provides a temporary
funding source until such time as a more permanent funding solution can be
established. These funds are not for use other than for the stated purpose and
goals of the community economic revitalization board.
Sec. 2. RCW 43.84.092 and 2001
2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and 2001 c 80 s 5 are
each reenacted and 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
drinking water assistance administrative account, the drinking water assistance
repayment 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 state higher education construction account, the higher education
construction 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 multimodal transportation account, the
municipal criminal justice assistance account, the municipal sales and use tax
equalization account, the natural resources deposit account, the oyster reserve
land account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees' retirement
system combined plan 2 and plan 3 account, the public facilities
construction loan revolving account beginning July 1, 2004, the public
health supplemental 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 1 account, the teachers'
retirement system combined plan 2 and plan 3 account, the tobacco prevention
and control account, the tobacco settlement 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' and reserve officers' relief and pension principal
fund, the volunteer fire fighters' and reserve officers' administrative fund,
the Washington fruit express account, the Washington judicial retirement system
account, the Washington law enforcement officers' and fire fighters' system
plan 1 retirement account, the Washington law enforcement officers' and fire
fighters' system plan 2 retirement account, the Washington school employees'
retirement system combined plan 2 and 3 account, the Washington state health
insurance pool 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
county arterial preservation account, the department of licensing services
account, the essential rail assistance account, the ferry bond retirement fund,
the grade crossing protective fund, the high capacity transportation account,
the highway bond retirement fund, the highway safety account, 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 special
category C account, the state patrol highway account, the transportation
equipment fund, the transportation fund, the transportation improvement
account, the transportation improvement board bond retirement 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.
NEW SECTION. Sec.
3. A new section is added
to chapter 43.160 RCW to read as follows:
(1) The public works
assistance account shall annually transfer funds to the public facilities
construction loan revolving account in amounts as follows: In fiscal year
2003, twelve percent of eighteen million eight hundred ninety thousand seven
hundred seventy-five dollars, the total outstanding principal and interest
associated with the loans issued by the public works board under the timber and
rural natural resources programs; and in each of fiscal years 2004, 2005, 2006,
and 2007, twenty-two percent of the principal and interest associated with the
timber and rural natural resources programs. In no event may this transfer
exceed four million five hundred thousand dollars per year.
(2) This section
expires June 30, 2007.
Sec. 4. RCW 43.160.060 and 1999
c 164 s 103 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 financial circumstances require grant
assistance to enable the project to move forward. However, at least ten
percent of all financial assistance provided by the board in any biennium shall
consist of grants to political subdivisions.
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 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; 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.
