BILL REQ. #:  Z-0964.1 

Read first time 01/30/12.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to the microenterprise development program; and amending RCW 43.330.290.

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

Sec. 1   RCW 43.330.290 and 2009 c 565 s 15 are each amended to read as follows:
     The microenterprise development program is established in the department of commerce. In implementing the program, the department:
     (1) Shall ((provide organizational support to a statewide microenterprise association and shall)) contract with ((the)) a statewide microenterprise association for the delivery of services and distribution of grants;
     (a) The association shall serve as the department's agent in carrying out the purpose and service delivery requirements of this section;
     (b) The association's contract with the department shall specify that in administering the funds provided for under subsection (3) of this section, the association may use no greater than ten percent of the funds to cover administrative expenses;
     (2) Shall provide funds for capacity building for the statewide microenterprise association and microenterprise development organizations throughout the state;
     (3) Shall provide grants to microenterprise development organizations for the delivery of training and technical assistance services;
     (4) Shall identify and facilitate the availability of state, federal, and private sources of funds which may enhance microenterprise development in the state;
     (5) Shall develop with the statewide microenterprise association criteria for the distribution of grants to microenterprise development organizations. Such criteria may include:
     (a) The geographic representation of all regions of the state, including both urban and rural communities;
     (b) The ability of the microenterprise development organization to provide business development services in low-income communities;
     (c) The scope of services offered by a microenterprise development organization and their efficiency in delivery of such services;
     (d) The ability of the microenterprise development organization to monitor the progress of its customers and identify technical and financial assistance needs;
     (e) The ability of the microenterprise development organization to work with other organizations, public entities, and financial institutions to meet the technical and financial assistance needs of its customers;
     (f) The sufficiency of operating funds for the microenterprise development organization; and
     (g) Such other criteria as agreed by the department and the association;
     (6) Shall require the statewide microenterprise association and any microenterprise development organization receiving funds through the microenterprise development program to raise and contribute to the effort funded by the microenterprise development program an amount equal to twenty-five percent of the microenterprise development program funds received. Such matching funds may come from private foundations, federal or local sources, financial institutions, or any other source other than funds appropriated from the legislature;
     (7) Shall require under its contract with the statewide microenterprise association an annual accounting of program outcomes, including job creation, access to capital, leveraging of nonstate funds, and other outcome measures specified by the department. By January 1, 2012, the joint legislative audit and review committee shall use these outcome data and other relevant information to evaluate the program's effectiveness; and
     (8) May adopt rules as necessary to implement this section.