1. 2010 WEDA Legislative Update Matt Matayoshi Executive Director – Economic Development Council of Mason County WEDA Legislative Chair WEDA Spring/Summer Conference Yakima, WA June 16, 2010

2. Final Budget  $2.8 billion budget deficit  2ESSB 6413 – increases revenue about $667.7 million  B&O Tax Increase of.3 percent for 3 years  Small business tax credit increased to a maximum of $70 a month  Department of Commerce  ITED– Cut $765,000  WA Manufacturing Services $-7,152  ADO $-645,955  WA Technology Center $-90,154  Microenterprise Development $-7,750  WWU Small Business Development $-12,429  Renton Small Business Development $-894  Regional Services Unit $-788,000 (3.5 FTEs)  CERB – No new money ($3 million in loan repayments)

3. Reorganization of the Department of Commerce  SHB 2658 (Kenney, Maxwell, McCoy, Morrell)  Departments mission is to grow and improve jobs and facilitate innovation  Program transfers:  County Public Health Assistance  Developmental Disabilities Endowment  State Building Code Council  Drug Prosecution Assistance program  Energy Facility Site Evaluation Council  Municipal Research Council (abolished)  Community Services and Housing Division established  Expires July 1, 2012  State Energy Plan is to be updated by December 1, 2011 (vetoed)

4. Passed Legislation  E2SHAB 2630 – Regarding the opportunity express program  SHB 3014 – Modifying the sales and use tax deferral program for investment projects in rural counties  ESSB 6241 – Creating community facilities districts  E2SSB 6409 – Creating the WA opportunity pathways account  E2SSB 6609 – Concerning infrastructure financing for local governments  2SSB 6667 – Concerning business assistance programs  SSB 6679 – Concerning the small business export finance assistance center

5. Passed Legislation  ESHB 2641 – Expanding small business development centers  SHB 2683/SB 6805 – Changing provisions relating to the economic development commission  HB 3101/SB6637– Increasing the small business credit for the business and occupation tax  ESSB 5899 - Providing a business and occupation tax credit for qualified employment positions  2SSB 6374 – Regarding fiscal note instructions  2SSB 6790 – Concerning cluster and innovation partnership zone grants

6. Questions? 2010 WEDA Legislative Update WEDA Spring/Summer Conference Yakima, WA June 16, 2010