H-2388              _______________________________________________

                                           SUBSTITUTE HOUSE BILL NO. 851

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By House Committee on Trade & Economic Development (originally sponsored by Representatives Vekich, Nelson, Lux, P. King and Wineberry)

Read first time 3/6/87 and passed to Committee on Rules.

AN ACT Relating to entitlement grants; and amending RCW 43.168.100.

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

        Sec. 1.  Section 10, chapter 164, Laws of 1985 as amended by section 1, chapter 204, Laws of 1986 and RCW 43.168.100 are each amended to read as follows:

          The committee may make grants of state funds to local governments which qualify as "entitlement communities" under the federal law authorizing community development block grants.  These grants may only be made on the condition that the entitlement community provide the committee with assurances that it will:  (1) Spend the grant moneys for purposes and in a manner which satisfies state constitutional requirements; (2) spend the grant moneys for purposes and in a manner which would satisfy federal requirements; and (3) spend ((double the amount)) an amount equal to one hundred fifty percent of the grant from the state for loans to businesses from the federal funds received by the entitlement community.

To the extent permitted under federal law, the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the Washington state development loan fund created under this chapter.  Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applications where the applicants on their own volition make commitments to provide for the transfer.