AN
ACT Relating to the Washington economic development finance authority; amending
RCW 43.163.090, 43.163.130, and 43.163.210; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.163.090 and 1998 c 245 s 50 are each amended to read as follows:
The
authority shall adopt a general plan of economic development finance objectives
to be implemented by the authority during the period of the plan. The
authority may exercise the powers authorized under this chapter prior to the
adoption of the initial plan. In developing the plan, the authority shall
consider and set objectives for:
(1)
Employment generation associated with the authority's programs;
(2)
The application of funds to sectors and regions of the state economy evidencing
need for improved access to capital markets and funding resources;
(3)
Geographic distribution of funds and programs available through the authority;
(4)
Eligibility criteria for participants in authority programs;
(5)
The use of funds and resources available from or through federal, state, local,
and private sources and programs;
(6)
Standards for economic viability and growth opportunities of participants in
authority programs;
(7)
New programs which serve a targeted need for financing assistance within the
purposes of this chapter; and
(8)
Opportunities to improve capital access as evidenced by programs existent in
other states or as they are made possible by results of private capital market
circumstances.
The
authority shall, as part of the finance plan required under this section,
develop an outreach and marketing plan designed to increase its financial
services to ((distressed)) rural counties. As used in this
section, "((distressed)) rural counties" ((has the
same meaning as distressed area)) means counties smaller than two
hundred twenty-five square miles or as defined in RCW 43.168.020.
At least
one public hearing shall be conducted by the authority on the plan prior to its
adoption. The plan shall be adopted by resolution of the authority no later
than November 15, 1990. The authority may periodically update the plan as
determined necessary by the authority. The plan or updated plan shall include
a report on authority activities conducted since the commencement of authority
operation or since the last plan was reported, whichever is more recent,
including a statement of results achieved under the purposes of this chapter
and the plan. Upon adoption, the authority shall conduct its programs in
observance of the objectives established in the plan.
Sec.
2. RCW
43.163.130 and 1998 c 48 s 1 are each amended to read as follows:
(1)
The authority may issue its nonrecourse revenue bonds in order to obtain the
funds to carry out the programs authorized in this chapter. The bonds shall be
special obligations of the authority, payable solely out of the special fund or
funds established by the authority for their repayment.
(2)
Any bonds issued under this chapter may be secured by a financing document
between the authority and the purchasers or owners of such bonds or between the
authority and a corporate trustee, which may be any trust company or bank
having the powers of a trust company within or without the state.
(a)
The financing document may pledge or assign, in whole or in part, the revenues
and funds held or to be received by the authority, any present or future
contract or other rights to receive the same, and the proceeds thereof.
(b)
The financing document may contain such provisions for protecting and enforcing
the rights, security, and remedies of bondowners as may be reasonable and
proper, including, without limiting the generality of the foregoing, provisions
defining defaults and providing for remedies in the event of default which may
include the acceleration of maturities, restrictions on the individual rights
of action by bondowners, and covenants setting forth duties of and limitations
on the authority in conduct of its programs and the management of its property.
(c)
In addition to other security provided in this chapter or otherwise by law, bonds
issued by the authority may be secured, in whole or in part, by financial
guaranties, by insurance or by letters of credit issued to the authority or a
trustee or any other person, by any bank, trust company, insurance or surety
company or other financial institution, within or without the state. The
authority may pledge or assign, in whole or in part, the revenues and funds
held or to be received by the authority, any present or future contract or
other rights to receive the same, and the proceeds thereof, as security for
such guaranties or insurance or for the reimbursement by the authority to any
issuer of such letter of credit of any payments made under such letter of
credit.
(3)
Without limiting the powers of the authority contained in this chapter, in
connection with each issue of its obligation bonds, the authority shall create
and establish one or more special funds, including, but not limited to debt
service and sinking funds, reserve funds, project funds, and such other special
funds as the authority deems necessary, useful, or convenient.
(4)
Any security interest created against the unexpended bond proceeds and against
the special funds created by the authority shall be immediately valid and
binding against the money and any securities in which the money may be invested
without authority or trustee possession. The security interest shall be prior
to any party having any competing claim against the moneys or securities,
without filing or recording under Article 9 of the Uniform Commercial Code,
Title 62A RCW, and regardless of whether the party has notice of the security
interest.
(5)
The bonds may be issued as serial bonds, term bonds or any other type of bond
instrument consistent with the provisions of this chapter. The bonds shall
bear such date or dates; mature at such time or times; bear interest at such
rate or rates, either fixed or variable; be payable at such time or times; be
in such denominations; be in such form; bear such privileges of
transferability, exchangeability, and interchangeability; be subject to such
terms of redemption; and be sold at public or private sale, in such manner, at
such time or times, and at such price or prices as the authority shall
determine. The bonds shall be executed by the manual or facsimile signatures
of the authority's chair and either its secretary or executive director, and
may be authenticated by the trustee (if the authority determines to use a
trustee) or any registrar which may be designated for the bonds by the
authority.
(6)
Bonds may be issued by the authority to refund other outstanding authority
bonds, at or prior to maturity of, and to pay any redemption premium on, the
outstanding bonds. Bonds issued for refunding purposes may be combined with
bonds issued for the financing or refinancing of new projects. Pending the
application of the proceeds of the refunding bonds to the redemption of the
bonds to be redeemed, the authority may enter into an agreement or agreements
with a corporate trustee regarding the interim investment of the proceeds and
the application of the proceeds and the earnings on the proceeds to the payment
of the principal of and interest on, and the redemption of, the bonds to be
redeemed.
(7)
The bonds of the authority may be negotiable instruments under Title 62A RCW.
(8)
Neither the members of the authority, nor its employees or agents, nor any
person executing the bonds shall be personally liable on the bonds or be
subject to any personal liability or accountability by reason of the issuance
of the bonds.
(9)
The authority may purchase its bonds with any of its funds available for the
purchase. The authority may hold, pledge, cancel or resell the bonds subject
to and in accordance with agreements with bondowners.
(10)
The authority shall not exceed ((five)) seven hundred fifty
million dollars in total outstanding debt at any time.
(11)
The state finance committee shall be notified in advance of the issuance of
bonds by the authority in order to promote the orderly offering of obligations
in the financial markets.
(12)
The authority may not issue any bonds after June 30, ((2004)) 2006.
Sec.
3. RCW
43.163.210 and 1998 c 48 s 2 are each amended to read as follows:
For
the purpose of facilitating economic development in the state of Washington and
encouraging the employment of Washington workers at meaningful wages:
(1)
The authority may develop and conduct a program or programs to provide
nonrecourse revenue bond financing for the project costs for economic development
activities.
(2)
The authority may develop and conduct a program that will stimulate and
encourage the development of new products within Washington state by the
infusion of financial aid for invention and innovation in situations in which
the financial aid would not otherwise be reasonably available from commercial
sources. The authority is authorized to provide nonrecourse revenue bond
financing for this program.
(a)
For the purposes of this program, the authority shall have the following powers
and duties:
(i)
To enter into financing agreements with eligible persons doing business in
Washington state, upon terms and on conditions consistent with the purposes of
this chapter, for the advancement of financial and other assistance to the
persons for the development of specific products, procedures, and techniques,
to be developed and produced in this state, and to condition the agreements
upon contractual assurances that the benefits of increasing or maintaining
employment and tax revenues shall remain in this state and accrue to it;
(ii)
Own, possess, and take license in patents, copyrights, and proprietary
processes and negotiate and enter into contracts and establish charges for the
use of the patents, copyrights, and proprietary processes when the patents and
licenses for products result from assistance provided by the authority;
(iii)
Negotiate royalty payments to the authority on patents and licenses for
products arising as a result of assistance provided by the authority;
(iv)
Negotiate and enter into other types of contracts with eligible persons that
assure that public benefits will result from the provision of services by the
authority; provided that the contracts are consistent with the state
Constitution;
(v)
Encourage and provide technical assistance to eligible persons in the process
of developing new products;
(vi)
Refer eligible persons to researchers or laboratories for the purpose of
testing and evaluating new products, processes, or innovations; and
(vii)
To the extent permitted under its contract with eligible persons, to consent to
a termination, modification, forgiveness, or other change of a term of a
contractual right, payment, royalty, contract, or agreement of any kind to
which the authority is a party.
(b)
Eligible persons seeking financial and other assistance under this program
shall forward an application, together with an application fee prescribed by
rule, to the authority. An investigation and report concerning the
advisability of approving an application for assistance shall be completed by
the staff of the authority. The investigation and report may include, but is
not limited to, facts about the company under consideration as its history,
wage standards, job opportunities, stability of employment, past and present financial
condition and structure, pro forma income statements, present and future
markets and prospects, integrity of management as well as the feasibility of
the proposed product and invention to be granted financial aid, including the
state of development of the product as well as the likelihood of its commercial
feasibility. After receipt and consideration of the report set out in this
subsection and after other action as is deemed appropriate, the application
shall be approved or denied by the authority. The applicant shall be promptly
notified of action by the authority. In making the decision as to approval or
denial of an application, priority shall be given to those persons operating or
planning to operate businesses of special importance to Washington's economy,
including, but not limited to: (i) Existing resource-based industries of
agriculture, forestry, and fisheries; (ii) existing advanced technology
industries of electronics, computer and instrument manufacturing, computer
software, and information and design; and (iii) emerging industries such as
environmental technology, biotechnology, biomedical sciences, materials
sciences, and optics.
(3)
The authority may also develop and implement, if authorized by the legislature,
such other economic development financing programs adopted in future general
plans of economic development finance objectives developed under RCW
43.163.090.
(4)
The authority may not issue any bonds for the programs authorized under this
section after June 30, ((2004)) 2006.
NEW
SECTION. Sec. 4. 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.
