BILL REQ. #:  S-2352.1 

READ FIRST TIME 03/08/05.   

     AN ACT Relating to the economic development strategic reserve account; adding a new section to chapter 43.330 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 43.330 RCW to read as follows:
     (1) The economic development strategic reserve account is created in the state treasury to be used only for the purposes of this section.
     (2) Only the governor, in consultation with the director of the department of community, trade, and economic development and the economic development commission, may authorize expenditures from the account, subject to appropriation by the legislature.
     (3) Expenditures from the account shall be made in an amount sufficient to fund a minimum of one full-time equivalent staff position for the economic development commission and to cover any other operational costs of the commission.
     (4) Expenditures from the account may be made to prevent closure of a business or facility, to prevent relocation of a business or facility in the state to a location outside the state, or to recruit a business or facility to the state. Expenditures may be authorized for:
     (a) Work force development;
     (b) Public infrastructure needed to support or sustain the operations of the business or facility; and
     (c) Other lawfully provided assistance, including, but not limited to, technical assistance, environmental analysis, relocation assistance, and planning assistance. Funding may be provided for such assistance only when it is in the public interest and may be provided under a contractual arrangement ensuring that the state will receive appropriate consideration, such as an assurance of job creation or retention.
     (5) The funds shall not be expended from the account unless:
     (a) The circumstances are such that time does not permit the director of the department of community, trade, and economic development or the business or facility to secure funding from other state sources;
     (b) The business or facility produces or will produce significant long-term economic benefits to the state, a region of the state, or a particular community in the state;
     (c) The business or facility does not require a continuing state subsidy;
     (d) The expenditure will result in new jobs, job retention, or higher incomes for citizens of the state;
     (e) The expenditure will not supplant private investment; and
     (f) The expenditure is accompanied by private investment.

NEW SECTION.  Sec. 2   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2005, in the omnibus appropriations act, this act is null and void.