SENATE BILL REPORT

2SHB 1450

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Economic Development, Trade & Innovation, March 25, 2009

Title: An act relating to modifying the definition of "public facilities".

Brief Description: Modifying the definition of "public facilities.".

Sponsors: House Committee on Capital Budget (originally sponsored by Representatives Takko and Blake).

Brief History: Passed House: 3/11/09, 97-0.

Committee Activity: Economic Development, Trade & Innovation: 3/19/09, 3/25/09 [DPA, w/oRec].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE & INNOVATION

Majority Report: Do pass as amended.

Signed by Senators Kastama, Chair; Shin, Vice Chair; Delvin, Eide and Kilmer.

Minority Report: That it be referred without recommendation.

Signed by Senators Zarelli, Ranking Minority Member; McCaslin.

Staff: Jack Brummel (786-7428)

Background: The Community Economic Revitalization Board (CERB) is a statutorily authorized state board charged with financing publicly-owned economic development infrastructure improvements that encourage new business development and expansion in areas where growth is desired. Staffing for CERB is provided by the Department of Community, Trade and Economic Development. The CERB program provides local governments low-interest loans and grants to help finance public facility projects. Assistance is primarily targeted to rural communities.

Counties, cities, towns, port districts, federally-recognized Indian tribes, special purpose districts, municipal corporations, and quasi-municipal corporations with economic development purposes are eligible to apply for funds. CERB financing can be used for public facilities including bridges, roads, domestic and industrial water projects, sanitary and storm sewers, railroad spurs, and port facilities. The definition of public facilities in the CERB statute does not include capital equipment for maritime transportation and harbor maintenance.

Summary of Bill (Recommended Amendments): Port facilities, which are public facilities eligible for CERB financing, include capitalized maritime maintenance equipment valued at greater than $400,000 and operated by a consortium of three or more rural port districts.

EFFECT OF CHANGES MADE BY ECONOMIC DEVELOPMENT, TRADE & INNOVATION COMMITTEE (Recommended Amendments): The definition of "public facilities" within the CERB statute was changed to specify that port facilities, which are public facilities eligible for CERB financing, include capitalized maritime maintenance equipment valued at greater than $ 400,000 and operated by a consortium of three or more rural port districts.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: Six port districts would like to go together to buy a dredge. It is not clear under the current law that a dredge would qualify. The bill is narrowly drafted; this is a slight change. This will allow commercial fisheries, marine, and tourism businesses to stay in business. This will save money.

Persons Testifying: PRO: Representative Takko, prime sponsor; Ginger Eagle, Washington Public Ports Association.