Sec. G-1. 5 MRSA §13073-A is enacted to read:

§13073-A.__Regional Economic Development Assistance Fund

The Director of the Office of Tourism and Community Development shall administer the Regional Economic Development Assistance Fund, referred to in this section as the "fund."

1.__Fund established.__The fund is established as a nonlapsing fund within the Office of Tourism and Community Development.

2.__Fund purpose.__The purpose of the fund is to provide funding to develop effective local and regional economic development programs.__The department shall administer the fund to award start-up grants to nonprofit local or regional community organizations that are providing local or regional economic development programs.

3.__Application process.__The department shall adopt rules establishing an application process for fund grants for the purposes set forth in this section.

4.__Competitive procedure. Funds must be dispersed in accordance with a competitive, quality-based selection procedure as established and administered by the department.

5.__Preference in awards.__In awarding grants, the department shall give preference to those projects or programs that will benefit economically distressed communities and regions.__In determining preference, the department shall consider such factors as unemployment rates, per capita income, educational attainment, business failures and dependence upon mature or dominant industries.

6.__Local match requirements.__All funds awarded must be matched by local funds on a minimum one-to-one basis.

7.__Rules.__The department shall adopt rules necessary to carry out this section.__Rules adopted pursuant to this section are routine technical rules as defined in chapter 375, subchapter II-A.

Sec. G-2. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.

2000-01