Economic Development Legislation Signed in North Dakota, Washington

North Dakota Governor John Hoeven and Washington Governor Gary Locke each signed several important pieces of economic development legislation as their respective state legislatures wrapped up their sessions.

Contact: Paul Kalomiris
Economic and Technology Policy Studies NGA Center for Best Practices

In North Dakota, the new laws include:

* $1.25 million for Work Force 2000, half of which must be used for worker training for new or expanding businesses. (HB 1017)

* $1.35 million for vocational and technical education for workforce training within the state university system. (HB 1020)

* Establishment of accountability measures for state economic development programs, including net job growth, level of venture capital investments and new private sector manufacturing businesses.

* Grants of $1.25 million were awarded to the North Dakota State University Center for Technology Enterprise and $800,000 to the University of North Dakota Center for Innovation.

* Modification of the seed capital investment tax credit program, which increases the amount available on qualifying investments and increases the maximum annual investment amount for which credit may be claimed. (HB 1019)

* Authorization for the Bank of North Dakota to either directly invest (or through the North Dakota Development Fund) up to $5 million in alternative and venture capital investments and early-stage capital funds. (SB 2335)

* $5 million in tax credits available to investors in entrepreneurial projects within state-designated renaissance zones, which provide tax incentives for businesses that move to specified areas. (SB 2259)

In Washington, the new laws:

* Create tax incentives for the manufacture of semiconductors for 12 years. The Washington Competitiveness Council previously identified the semiconductor industry cluster as a key industry cluster within the state. Tax breaks will be extended to manufacturers on the construction of semiconductor manufacturing plants and the sale of equipment to be used for manufacturing. (SB 5725)

* Grant authority to local governments to establish tourism promotion areas, within which a special tax may be imposed on lodging. Up to $2 per room per night is permitted. Revenue will be used by local governments to promote tourism. (SB 6026)

* Provide permanent funding for the Community Economic Revitalization Board (CERB), which helps fund infrastructure improvements for economic development in rural areas via low-interest loans and grants. The program previously was funded on a temporary basis. Its funding, about $900,000 annually, will now come from the interest earnings from the Public Works Assistance Account, which currently go to the General Fund. The allocation to the CERB account will begin July 1, 2005. (SB 5363)

* Direct the state Department of Community, Trade & Economic Development to work with the private sector, local governments and educational institutions to promote nature-based tourism in Washington, to develop a corresponding strategy, and help local communities develop and implement their own wildlife tourism plans. (HB 1973)

Related Links:

* North Dakota Legislature http://www.state.nd.us/lr/

* Washington Legislature http://www.leg.wa.gov/wsladm/default.htm

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_5469,00.html