The legislature finds that conventions are an important part of the state's economy. Conventions create jobs, attract investment, directly support the hospitality and tourism industries, and improve the diversity and vibrancy of our communities.
The legislature further finds that businesses dependent on conventions have suffered disproportionately from the COVID-19 pandemic and that grant funding is necessary to support and revitalize this industry.
Therefore, the legislature intends to:
Establish a grant program to provide financial assistance to businesses that are dependent on the economic activity created through conventions hosted in Washington; and
Make a financial contribution of $5 million dollars to fund the grant program for fiscal year 2023. This appropriation may be from either state funds or federal funds, or from any combination of both.
This section adds a new section to an existing chapter 43.330. Here is the modified chapter for context.
The department shall establish a grant program to provide additional grants to assist businesses registered with the department of revenue as provided in RCW 82.32.030 that are dependent on the economic activity created through conventions hosted in Washington state to maintain their operations. To be eligible for a grant under this subsection, the business must:
Apply for or have applied for the grant;
Have reported annual gross receipts of $100,000,000 or less to the department of revenue for calendar year 2019;
Have expenses that are necessary to continue business operations and the expense is not a federal, state, or local tax, fee, license, or other government revenue;
Self–attest that the expense is not funded by any other government or private entity;
Have experienced a reduction in business income or activity related to COVID-19 or state or local actions in response to COVID-19;
Have met one or more of the following criteria:
Hosted a convention in Washington;
Have a business that provided support services to conventions to Washington; or
Have a business that depends on the function of conventions to sell goods and services in Washington state; and
Agree to operate in accordance with the requirements of applicable federal, state, and local public health guidance and directives.
[Empty]
Eligible businesses may receive up to a $500,000 grant for revenue lost due to a cancellation or a reduction of participants in a convention hosted in Washington state in 2020 or 2021.
Eligible participants must provide the department of commerce with: (i) Financial records from 2019 that can provide a basis for revenue received from convention activity in Washington state prior to the COVID-19 outbreak; and (ii) financial records from 2020 and 2021 that show a reduction in gross revenue received from convention activity in Washington state during the COVID-19 outbreak.
Eligible businesses must provide financial records related to any grants or loans from federal and state government programs during 2020 through 2022.
The grant award shall equal the loss in revenue between 2019 and 2021, less grants or loans from federal and state government programs, and is not to exceed $500,000.
If a business received one or more working Washington small business grants, the grant awarded under this section must be reduced to reflect the amounts received from previous working Washington small business grants.
Examples of eligible participants may include, but are not limited to, businesses that are dependent on Washington state conventions such as:
The PAX West convention;
The Spokane Hoopfest;
The Emerald City Comic Con;
The Northwest Flower and Garden Festival;
The Seattle Boat Show; and
Nonprofit organizations may be eligible to receive funding under subsection (1) or (2) of this section if they have a primary business activity that has been impacted as described in subsection (1)(e) of this section.
Subject to limits imposed in this section, the department is authorized to adjust funding awards based on demand for grants.