BILL REQ. #:  S-4601.2 

READ FIRST TIME 02/04/10.   

     AN ACT Relating to cluster and innovation partnership zone grants; amending RCW 43.330.090; and making an appropriation.

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

Sec. 1   RCW 43.330.090 and 2009 c 151 s 1 are each amended to read as follows:
     (1) The department ((shall)) must work with private sector organizations, industry and sector associations, federal agencies, state agencies that use a sector-based approach to service delivery, local governments, local associate development organizations, and higher education and training institutions in the development of industry sector-based strategies to diversify the economy, facilitate technology transfer and diffusion, and increase value-added production. The industry sectors targeted by the department may include, but are not limited to, aerospace, agriculture, food processing, forest products, marine services, health and biomedical, software, digital and interactive media, transportation and distribution, and microelectronics. The department ((shall)) must, on a continuing basis, evaluate the potential return to the state from devoting additional resources to an industry sector-based approach to economic development and identifying and assisting additional sectors.
     (2) The department's sector-based strategies ((shall)) must include, but not be limited to, cluster-based strategies that focus on assisting regional industry sectors and related firms and institutions that meet the definition of an industry cluster in this section and based on criteria identified by the working group ((established in)) convened by the state economic development commission and the workforce training and education coordinating board under this chapter.
     (3)(((a) The department shall promote, market, and encourage growth in the production of films and videos, as well as television commercials within the state; to this end the department is directed to assist in the location of a film and video production studio within the state.
     (b) The department may, in carrying out its efforts to encourage film and video production in the state, solicit and receive gifts, grants, funds, fees, and endowments, in trust or otherwise, from tribal, local, or other governmental entities, as well as private sources, and may expend the same or any income therefrom for the encouragement of film and video production. All revenue received for such purposes shall be deposited into the film and video promotion account created in RCW 43.330.092.
     (4))) In assisting in the development of regional and statewide industry cluster-based strategies, the department's activities ((shall)) must include, but are not limited to:
     (a) Facilitating regional focus group discussions and conducting studies to identify industry clusters, appraise the current information linkages within a cluster, ((and)) identify issues of common concern within a cluster, and promote industry cluster involvement in the application process for designation of innovation partnership zones;
     (b) Supporting industry and cluster associations, publications of association and cluster directories, and related efforts to create or expand the activities of industry and cluster associations including their involvement with innovation partnership zones;
     (c) Administering a competitive grant program to fund economic development activities designed to further regional cluster growth and to integrate its sector-based and cluster-based strategies with its support for the development of innovation partnership zones. In administering the program, the department ((shall)) must work with ((an industry cluster advisory committee with equal representation from)) the economic development commission((,)) and the workforce training and education coordinating board((, the state board for community and technical colleges, the employment security department, business, and labor)) to develop criteria for rewarding grants.
     (i) ((The industry cluster advisory committee shall recommend criteria for evaluating applications for grant funds and recommend applicants for receipt of grant funds. Criteria shall include not duplicating)) Grant recipients must provide matching funds equal to the size of the grant.
     (ii) Grants may be awarded to support the formation of sector associations or cluster associations, the identification of the technology and commercialization needs of a sector or cluster, facilitating working relationships between a sector association or cluster association and an innovation partnership zone, expanding the operations of an innovation partnership zone, and developing and implementing plans to meet the technology development and commercialization needs of industry sectors, industry clusters, and innovation partnership zones. The projects receiving grants must not duplicate the purpose or efforts of industry skill panels but priority must be given to applicants that complement industry skill panels and will use the grant funds to build linkages and joint projects.
     (((ii) Applicants must include organizations from at least two counties and participants from the local business community. Eligible organizations include, but are not limited to, local governments, economic development councils, chambers of commerce, federally recognized Indian tribes, workforce development councils, and educational institutions.
     (iii) Applications must evidence financial participation of the partner organizations.
     (iv) Eligible activities include the formation of cluster economic development partnerships, research and analysis of economic development needs of the cluster, the development of a plan to meet the economic development needs of the cluster, and activities to implement the plan.
     (v) Priority shall be given to applicants that complement industry skill panels and will use the grant funds to build linkages and joint projects.
     (vi))) (iii) The maximum amount of a grant is ((one hundred)) seventy-five thousand dollars.
     (((vii) A maximum of one hundred thousand dollars total can go to King, Pierce, Kitsap, and Snohomish counties combined.
     (viii))) (iv) No more than ten percent of funds received for the grant program may be used by the department for administrative costs.
     (((5))) (4) As used in this chapter, "industry cluster" means a geographic concentration of interconnected companies in a single industry, related businesses in other industries, including suppliers and customers, and associated institutions, including government and education.

NEW SECTION.  Sec. 2   The sum of eight hundred thousand dollars, or as much thereof as may be necessary, is appropriated to the department of commerce for the fiscal year ending June 30, 2011, from the state general fund to meet the department's obligations under section 1 of this act. Of this amount, six hundred thousand dollars must be used for the grant program required under section 1(3)(c) of this act.