HOUSE BILL REPORT

                  HB 2274

             As Reported By House Committee On:

                Trade & Economic Development

Title:  An act relating to the community economic revitalization board.

Brief Description:  Funding the community economic revitalization board.

Sponsors:  Representatives Van Luven, Sheldon, Hatfield, D. Schmidt, Radcliff and Kessler.

Brief History:

  Committee Activity:

Trade & Economic Development:  1/22/96 [DPS].

HOUSE COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives Van Luven, Chairman; Radcliff, Vice Chairman; D. Schmidt, Vice Chairman; Sheldon, Ranking Minority Member; Veloria, Assistant Ranking Minority Member; Backlund; Hatfield; Hickel; Mason; Sherstad; Skinner and Valle.

Staff:  Kenny Pittman (786-7392).

Background:   The Community Economic Revitalization Board (CERB) was created by the Legislature in 1982 to provide low-interest loans and grants to political subdivisions of the state (cities, towns, counties, port districts, and special purpose utility districts) to help finance public infrastructure required for business and industry expansion or retention.  Typical projects financed through CERB include sewer, water, roads, and industrial buildings.

CERB is funded through legislative appropriation from the capital budget as well as a portion of the revenue stream from the repayment of loan principal and interest.  The repayments are deposited into the public facilities construction loan revolving account.  The repayments are also re-appropriated for CERB use by the Legislature.

Summary of Substitute Bill:   All proceeds from the repayment of loan principal and interest are deposited in the public facilities construction revolving loan account for use as loans and grant under CERB.  The Department of Community, Trade, and Economic Development must report on efforts to make the public facilities construction revolving loan account a self-sustaining account.

Substitute Bill Compared to Original Bill:   The substitute bill removes language that would have allowed CERB to be funded from 1 percent of the proceeds of the Real Estate Excise Tax and from other legislative acts.  The substitute bill also requires a report on efforts to make CERB self-sustaining.

Appropriation:  None.

Fiscal Note:  Requested on January 15, 1996.

Effective Date of Substitute Bill:  The bill takes effect on July 1, 1997.

Testimony For:   CERB funding is critical to economic development efforts at the local government level.  The amount of funds leveraged by CERB allows for the construction of necessary infrastructure improvements to support business development.  A source of funding identified in the bill would provide stability and certainty to those that use CERB funding.

Testimony Against:  None.

Testified:   (Pro) Scott Taylor, Washington Public Ports Association; Jim Toomey, Port of Pasco; and Jim McIntire, Community Economic Revitalization Board.