HOUSE BILL REPORT

HB 2185

BYRepresentatives Doty and Inslee

Creating an economic development emergency assistance fund.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendment.  (11)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; G. Fisher, Kremen, Moyer, Rasmussen, Raiter, Tate, Walk and Youngsman.

House Staff:Bill Lynch (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 1, 1989

BACKGROUND:

The international marketplace increasingly requires an ability to respond rapidly to change in order to meet the demands for new products and services.  The State of Washington currently operates programs which provide financing assistance to businesses and communities for economic development purposes, but these programs are limited in scope and can be time-consuming.  It is suggested that a discretionary fund be created to provide funding for economic development projects which require immediate financing.

SUMMARY:

BILL AS AMENDED:  The economic development emergency assistance fund is created as a non-treasury trust fund in the custody of the State Treasurer. Moneys may be disbursed from the fund by the Economic Development Cabinet for economic development projects if: immediate financial assistance is necessary for the project, other sources of reasonable financing are not readily available, and an appropriation by the legislature would not be timely.

The Economic Development Cabinet consists of the Director of the Department of Agriculture, the Director of the Department of Community Development, the Director of the Department of Trade and Economic Development, and the Commissioner of the Employment Security Department.  The cabinet must establish guidelines for expenditures from the fund in consultation with the chairs of the Senate Ways and Means Committee, Senate Economic Development and Labor Committee, House Appropriations Committee, and House Trade and Economic Development Committee. The cabinet must report to the legislature by December 31st of each year on the amount of disbursements from the fund and the economic development projects financed.

AMENDED BILL COMPARED TO ORIGINAL:  A technical amendment is made to reference the public facilities loan and grant revolving fund for purposes of the appropriation rather than the public facilities construction loan revolving fund.

Appropriation:    The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the public facilities loan and grant revolving fund to the economic development emergency assistance fund.

Fiscal Note:      Requested March 2, 1989.

House Committee ‑ Testified For:    Greg Dohrn, on behalf of the Economic Development Cabinet.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Worthwhile projects cannot be funded because of the strict criteria associated with business assistance programs. Projects needed by communities fall between the gaps of these programs.  Quick responses are often needed in order to take advantage of opportunities.

House Committee - Testimony Against:      None Presented.