H-1456              _______________________________________________

                                                    HOUSE BILL NO. 875

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representative McMullen

Read first time 2/8/85 and referred to Committee on Trade & Economic Development.

AN ACT Relating to the department of community development; and amending RCW 43.63A.078.

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

        Sec. 1.  Section 7, chapter 125, Laws of 1984 and RCW 43.63A.078 are each amended to read as follows:

          The department shall develop and administer a local development matching fund program.  To be eligible to receive funds under this program, ((an organization must be a local government or a nonprofit local development entity.  Any local government or entity requesting funds must demonstrate the participation of a cross-section of the local community in the economic development project, including business, labor, education and training, and the public sector.  Under this program, the department shall provide matching funds which shall be used for the formulation of local economic development strategies, including the technical analysis necessary to designate and carry out the strategies.  A technical analysis can include, but is not limited to, the development and dissemination of data on local markets, demographics, comparative business costs, site availability, labor force characteristics, and local incentives.  Funds are to be used primarily to foster new developments and expansions which result in the trading of goods and services outside of the state's borders.  Funds may be made available for assisting local businesses in utilizing state and federal programs in exporting, training, and financing.  Funds may also be used to provide technical assistance to businesses in the areas of land use, transportation, site location, and manpower training.  Matching funds cannot be used for entertainment, capital expenses, hosting, or marketing.  Funds granted for economic development projects must be matched by local resources on a dollar-for-dollar basis.  Not more than fifty thousand dollars of state matching funds as provided by this section may be used for any one project)) an applicant must be a city or town, a county, a port district, a consortium of local government units, an Indian tribe, or a nonprofit local development entity.  Applicants must be able to demonstrate involvement in local or regional economic development.

Any applicant requesting funds must demonstrate participation of a cross-section of the local community in project development and implementation, as appropriate.  Cross-sector participation must include involvement by representatives of business, labor, education and training, and the public sector.  Funds are to be used primarily to foster new developments and expansions which result in the trading of goods and services outside the state's borders.

The department shall provide matching funds on a competitive basis for the following eligible activities:  (1) Formulating local or regional economic development strategies; (2) performing the technical analyses needed to support the design and implementation of economic development strategies, including developing and disseminating data on local markets, demographics, comparative business costs, site availability, labor force characteristics, local incentives, job training resources, and financing programs; and (3) assisting local businesses to use state and federal economic development resources or to meet land use, transportation, site location, or workforce training needs.

Matching funds shall not be used for entertainment or hosting; capital costs of construction, building rehabilitation, or real property acquisition; media advertising; or travel.

Funds granted for economic development projects must be matched by local resources on a dollar-for-dollar basis.  Not more than fifty thousand dollars of state matching funds may be used for any one project.

          The department shall report annually on December 31 to the governor and the legislature on funds expended and projects developed using matching funds.