SENATE BILL REPORT

                            SB 5514

    AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 8, 1993

Brief Description:  Creating the economic development grants program.

SPONSORS: Senators Sheldon, Bluechel, Williams, Erwin, Skratek, M. Rasmussen, Deccio and Snyder

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  That Substitute Senate Bill No. 5514 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means. 

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

Staff:  Jack Brummel (786‑7428)

Hearing Dates: February 12, 1993; February 18, 1993

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Second Substitute Senate Bill No. 5514 be substituted therefor, and the second substitute bill do pass. 

     Signed by Senators Rinehart, Chairman; Spanel, Vice Chairman; Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Jesernig, McDonald, Moyer, Niemi, Owen, Pelz, L. Smith, Snyder, Sutherland, West, Williams, and Wojahn.

Staff:  Martin Chaw (786-7715)

Hearing Dates: March 3, 1993; March 8, 1993

BACKGROUND:

There are numerous federal and private economic development assistance programs for which state agencies and local consortiums are eligible to apply.  Some individuals within state agencies have had success in garnering non-state support for economic development project, but there is no systematic effort to maximize federal and private funds for such projects.

SUMMARY:

The Economic Development Grants Program is created by the Office of Financial Management.  The program will be operated by a managing director and at least one grant writer.  The director is to stay abreast of grant opportunities from federal and private sources, write grant requests, and assist state agencies and local consortiums in their grant seeking efforts.

The Department of Trade and Economic Development is responsible for ensuring that local businesses and groups are aware of the availability of technical assistance for garnering economic development grants.

EFFECT OF PROPOSED SUBSTITUTE:

An appropriation of $248,000 is added.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

The appropriation language in the bill is deleted and a null and void clause is added, making the bill contingent upon funding added in the 1993-95 biennial budget.

Appropriation:  none

Revenue:  yes

Fiscal Note:  available

TESTIMONY FOR (Trade, Technology & Economic Development):

This bill is a good idea that can generate a lot of federal dollars for programs in the state.  Placing the program in one of the departments closer to the customer would be an improvement.

TESTIMONY AGAINST (Trade, Technology & Economic Development):  None

TESTIFIED (Trade, Technology & Economic Development):  Paul Knox, DCD (pro)

TESTIMONY FOR (Ways & Means):

A coordinated approach is needed to assure that the state is maximizing its efforts and minimizing the duplication of efforts.

TESTIMONY AGAINST (Ways & Means):  None

TESTIFIED (Ways & Means):  Senator Sheldon, prime sponsor