SENATE BILL REPORT

SB 5452

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 of February 24, 2017

Title: An act relating to local and community projects.

Brief Description: Concerning local and community projects.

Sponsors: Senators Honeyford and Warnick.

Committee Activity: Ways & Means: 2/09/17.

Brief Summary of Bill

Makes permanent law the terms and conditions of local and community project contracts funded through the capital budget.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Richard Ramsey (786-7412)

Background: The Department of Commerce (Department) manages contracts for grants made in the capital budget for local and community projects. The capital budget has appropriated state bond proceeds for local and community projects in the following amounts in the last ten years:

2007-09: $153 million;
2009-11: $34 million;
2011-13: $29 million;
2013-15: $87 million; and
2015-17: $141 million.

The capital budget specifies the terms for the contracts and the Department's administration of the program.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Proposed Substitute): The management of local and community projects will be performed by the Department. Terms and conditions for contracts with project recipients are placed in statute and include:

state funds may not be expended until the non-state share of project costs have been expended;
project recipients must demonstrate that the project site is under its legal control for a minimum of ten years;
projects may be required to comply with the state's high performance building standards as required by chapter 39.35D RCW;
state funds are available on a reimbursement basis only;
state prevailing wages apply to the project; and
the Department may not contract to expend state funds from bond proceeds for more than four years from the original appropriation for the project.

Contracts in effect are not affected or impaired by the requirements of the section; and "Local and Community Projects" are grants or loans funded through appropriations to the Department that are not part of a competitive or prioritization process of the Department.

Appropriation: None.

Fiscal Note: Not requested.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: The bill contains an emergency clause and takes effect immediately.

Staff Summary of Public Testimony on Proposed Substitute: None.

Persons Testifying: No one.

Persons Signed In To Testify But Not Testifying: No one.