SENATE BILL REPORT

                           ESHB 1662

        AS REPORTED BY COMMITTEE ON TRADE, TECHNOLOGY &

             ECONOMIC DEVELOPMENT, MARCH 24, 1993

Brief Description:  Reauthorizing the community economic revitalization board.

SPONSORS: House Committee on Trade, Economic Development & Housing (originally sponsored by Representatives Wineberry, Shin, Forner, Sheldon, Wang, Riley, Ogden, Silver, Valle, Jones, Holm, Basich, Rayburn, Jacobsen, Kremen, Cooke and J. Kohl; by request of Department of Trade and Economic Development)

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

HOUSE COMMITTEE ON CAPITAL BUDGET

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  Do pass as amended. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Midori Okazaki (786‑7444)

Hearing Dates: March 23, 1993; March 24, 1993

BACKGROUND:

The Community Economic Revitalization Board (CERB) program was created by the Legislature in 1982 as a financial incentive program to assist business expansion, recruitment and retention efforts.  Job creation and retention are the primary goals of the program.  Loan and grants are provided to cities, counties, ports, and special utility districts to improve public infrastructure necessary to bring an identified business or development into the community.

The CERB program was expanded in 1991 to provide matching monies for feasibility studies and public infrastructure projects that support industrial and tourism development in timber-impacted communities.  In addition, there is a DOT/CERB grant program which supports state highway improvement projects. 

Fifty percent of CERB funds are required to go to projects in designated distressed or timber-dependent communities.

CERB expires on June 30, 1993.

SUMMARY:

The expiration date of the statue authorizing CERB is extended indefinitely.  The board must report to the Legislature by June 30, 1999, on the effectiveness of the CERB program.  The report must include a recommendation on whether CERB should be continued, modified, or terminated.

The board is directed to send a copy of any application for financial assistance to encourage the development of a recycling facility to the Department of Ecology and notify the department regarding any decision on the project.

The protections under the Public Records Act are extended to proprietary information submitted in an application for CERB loans or program services.

The requirement that the chairman of CERB be a member of the Governor's Council of Economic Affairs is eliminated.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The board is required to report to the Legislature biennially on specific performance measures.  The first report is due December 1, 1993.

References to the legislative oversight committee are corrected.

Federally recognized Indian tribes are made eligible for CERB loans and grants.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

Effective date:  The bill contains an emergency clause and Section 7 takes effect immediately.

TESTIMONY FOR:

CERB is an effective program that enables local governments to provide the infrastructure necessary for businesses to locate or expand.  A review of the program would be useful, but it would be more effective if it were performed by an entity other than CERB.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Robert Cowan, Community Economic Revitalization Board; Donna Batch, Dept. of Trade and Economic Development; Scott Taylor, Washington Public Ports Assn.