FINAL BILL REPORT

SHB 743

                                  C 422 L 87

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives Cantwell, Vekich, Schoon, R. King, Scott, Holm and Sutherland; by request of Department of Trade and Economic Development)

Revising community economic revitalization board statutes.

House Committe on Trade & Economic Development

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The Community Economic Revitalization Board program was established by the legislature in 1982.  The program is designed to provide grants and loans to local jurisdictions for the financing of public facilities necessary for the completion of private job-creating development projects.  The program offers incentives to prospective employers interested in locating in the state and to firms expanding existing facilities.  The program is managed by a 22-member board, with staff support provided by the Department of Trade and Economic Development.

The program has been changed since its inception in regard to issues including: the size and composition of the board; the purposes and conditions for which grants and loans may be offered; and the responsibility for managing additional programs related to the board's economic development mission.

The provision of loans and grants to local governments by the board is funded by the issuance of state general obligation bonds.  The board also manages a program, funded by state highway funds, that finances transportation projects which contribute to specific economic development projects.  The board is responsible for the issuance of umbrella industrial revenue bond issues and for making recommendations regarding the allocation of industrial development bonds under the state's bond allocation process.

The program is designed to act as an economic development marketing tool, providing swift and reliable yes or no decisions to companies wishing to locate in the state, and to the local governments which must bear most of the ultimate costs of the improvements.  At the same time, the program must be broadly accountable for the efficiency of specific financing decisions.

SUMMARY:

The Community Economic Revitalization Board is reauthorized.  The board is composed of 15 members.  The directors of five executive agencies shall serve as advisory members.  There are four legislators from the House Trade and Economic Development Committee and the Senate Commerce and Labor Committee serving on the board.  Legislators serving on the board are authorized to permit other members of the appropriate legislative committee to act as designees in their absence.

The board's Private Activity Bond Subcommittee is composed of six members, including a legislative member.  The program is terminated June 30, 1994, with no new loans or grants authorized after June 30, 1993.

VOTES ON FINAL PASSAGE:

      House 96   1

      Senate    47     0(Senate amended)

      House       (House insisted)

Conference Committee

      Senate    46     0

      House 97   0

EFFECTIVE:May 18, 1987