Substitute House Bill 1870 — Economic Development and Federal Funding for Local Communities (2024)

Summary

Substitute House Bill 1870 of the State of Washington, by House Appropriations (originally sponsored by Representatives Barnard, Ryu and others), relating to promoting economic development by increasing opportunities for local communities to secure federal funding. The legislature finds that Washington ranks poorly among all states in federal grants received relative to income taxes collected from its residents. The department of commerce is to establish and administer a moving assets towards community health program, a state pool of matching funds that eligible entities can access when applying for federal grants. A grant program supports associate development organizations in recruiting, hiring, and retention of grant writers. The act is null and void if specific funding is not provided by June 30, 2024.

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Full text

     H-3160.1

                           SUBSTITUTE HOUSE BILL 1870


     State of Washington         68th Legislature       2024 Regular Session

     By House Appropriations (originally sponsored by Representatives
     Barnard, Ryu, Leavitt, Connors, Couture, Schmidt, Duerr, Slatter,
     Reed, Chapman, Graham, Ormsby, Timmons, Donaghy, Paul, Doglio,
     Reeves, Hackney, and Griffey)

     READ FIRST TIME 02/05/24.




1        AN ACT Relating to promoting economic development by increasing
2    opportunities for local communities to secure federal funding;
3    amending RCW 43.330.070, 43.330.088, and 43.330.260; and creating new
4    sections.


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


 6       NEW SECTION.    Sec. 1.    The legislature finds that Washington
 7   ranks poorly among all states in the amount of federal grants
 8   received relative to income taxes collected from its residents.
 9       The legislature also finds that many of Washington's communities,
10   particularly   in  slow-growing   rural   areas,  face   an   economic
11   development "chicken and egg" dilemma in which they need to secure
12   matching dollars in order to obtain federal economic development
13   dollars that would increase the local tax base, local revenue, and
14   local employment and incomes.
15       The legislature further finds that recent federal legislation
16   provides funding for economic development clusters that Washington
17   state has invested in as part of its economic development strategy,
18   including broadband and clean energy, buildings, and transportation.
19   The federal legislation includes the infrastructure investment and
20   jobs act, P.L. 117-58, the creating helpful incentives to produce


                                       p. 1                         SHB 1870
 1   semiconductors and science act, P.L. 117-167, and the inflation
 2   reduction act, P.L. 117-169.
 3       The legislature further finds that increasing the availability of
 4   federal grant dollars in local communities provides a benefit of a
 5   reasonably general character to a significant part of the public.
 6       Therefore, the legislature intends to continue its efforts to
 7   increase the capacity of the department of commerce to assist local
 8   communities in successfully applying for federal grant dollars by
 9   creating the moving assets towards community health (MATCH) program
10   based on a successful program started in other states that allows
11   local communities to access matching funds that are needed to secure
12   federal grants from a state funding pool.

13       Sec. 2. RCW 43.330.070 and 1993 c 280 s 10 are each amended to
14   read as follows:
15       (1) The department shall work closely with local communities to
16   increase their capacity to respond to economic, environmental, and
17   social problems and challenges. The department shall coordinate the
18   delivery of development services and technical assistance to local
19   communities or regional areas. It shall promote partnerships between
20   the public and private sectors and between state and local officials
21   to   encourage   appropriate   economic growth   and   opportunity in
22   communities throughout the state. The department shall promote
23   appropriate   local   development   by: Supporting   the   ability of
24   communities to develop and implement strategic development plans;
25   assisting businesses to start up, maintain, or expand their
26   operations; encouraging public infrastructure investment and private
27   and public capital investment in local communities; supporting
28   efforts to manage growth and provide affordable housing and housing
29   services; providing for the identification and preservation of the
30   state's historical and cultural resources; and expanding employment
31   opportunities.
32       (2) The department shall define a set of services including
33   training and technical assistance that it will make available to
34   local communities, community-based nonprofit organizations, regional
35   areas, or businesses. The department shall simplify access to these
36   programs by providing more centralized and user-friendly information
37   and referral. The department shall coordinate community and economic
38   development efforts to minimize program redundancy and maximize
39   accessibility. The department shall develop a set of criteria for
                                     p. 2                         SHB 1870
 1   targeting services to local communities. To the extent funding is
 2   made available for this specific purpose, the department shall
 3   provide technical assistance or enter into contracts to provide
 4   technical assistance to assist local communities in developing
 5   competitive applications for federal funding.
 6       (3) The department shall develop a coordinated and systematic
 7   approach   to   providing  training   to   community-based  nonprofit
 8   organizations, local communities, and businesses. The approach shall
 9   be designed to increase the economic and community development skills
10   available in local communities by providing training and funding for
11   training for local citizens, nonprofit organizations, and businesses.
12   The   department   shall  emphasize   providing  training  in   those
13   communities most in need of state assistance.


14       Sec. 3.   RCW 43.330.088 and 2023 c 311 s 2 are each amended to
15   read as follows:
16       (1) Subject to the availability of amounts appropriated for this
17   specific purpose, by July 1, 2024, the department shall establish a
18   grant program to support associate development organizations in the
19   recruiting, hiring, and retention of grant writers. The department
20   must award grants on an annual basis and must prioritize grants for
21   distressed areas as defined under RCW 43.168.020 and grants for
22   applications for federal funds.
23       (2) Associate development organizations must apply for the grant
24   program in a manner to be determined by the department.
25       (3) Associate development organizations that receive awards under
26   this section must provide information on the use of the funds,
27   including a description of the associate development organization's
28   recruiting and hiring efforts and, if applicable, the number and
29   types of grants applied for by the grant writers funded by the state,
30   in their annual reports to the department required under RCW
31   43.330.082.
32       (4) Beginning December 31, 2026, the department must include
33   information on grant award funding and use in its reports to the
34   legislature on associate development organizations contracts required
35   under RCW 43.330.082.
36       (5) The department shall adopt rules to implement this section.


37       Sec. 4.   RCW 43.330.260 and 2006 c 314 s 2 are each amended to
38   read as follows:
                                     p. 3                         SHB 1870
 1       (1) The department shall make available, within existing
 2   resources, an inventory of grant opportunities for state agencies,
 3   local governments, and other community organizations engaged in
 4   economic development activities.
 5       (2) In developing the inventory of economic development grant
 6   opportunities, the department may:
 7       (a) Regularly review the federal register for opportunities to
 8   apply for grants, research projects, and demonstration projects;
 9       (b) Maintain an inventory of grant opportunities with private
10   foundations and businesses; ((and))
11       (c) Provide a resource guide for applicants for federal grants,
12   including links to federal applications and relevant resources, and
13   contact information for department assistance; and
14       (d) Consult with federal officials, including but not limited to
15   those in the small business administration, the department of labor,
16   the department of commerce, the department of agriculture, the
17   department of ecology, as well as private foundations and businesses,
18   on the prospects for obtaining federal and private funds for economic
19   development purposes in Washington state.
20       (3) The department may also facilitate joint efforts between
21   agencies and between local organizations and state agencies that will
22   increase the likelihood of success in grant seeking and the
23   attraction of major events.
24       (4) The department shall establish and administer a moving assets
25   towards community health program. The purpose of the program is to
26   increase opportunities for local communities to compete for federal
27   grants by providing a state pool of matching funds that eligible
28   entities can access in the application process.
29       (a) The department may adopt rules to create and implement the
30   program.
31       (b) Beginning December 31, 2027, the department must report on
32   the program. The report shall be updated every two years and posted
33   on the department's website and transmitted to the governor and the
34   legislature. The report must identify the federal funds awarded to
35   entities in receipt of moving assets towards community health program
36   funds, describe efforts made to assist local communities with
37   obtaining federal economic development funds, identify all federally
38   awarded applicants and projects for the preceding two years, and
39   contain an analysis of program effectiveness based on performance


                                     p. 4                         SHB 1870
1   measurement requirements, including the amount of federal    dollars
2   obtained relative to the amount of state dollars expended.


3       NEW SECTION.   Sec. 5. If specific funding for the purposes of
4   this act, referencing this act by bill or chapter number, is not
5   provided by June 30, 2024, in the omnibus appropriations act, this
6   act is null and void.

                               --- END ---




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