SENATE BILL REPORT

                  SHB 2755

              As Reported By Senate Committee On:

          Labor, Commerce & Trade, February 22, 1996

Title:  An act relating to economic development.

Brief Description:  Promoting economic development.

Sponsors:  House Committee on Trade & Economic Development (originally sponsored by Representatives Van Luven, Sheldon, Silver and Hatfield; by request of Department of Community, Trade, and Economic Development).

Brief History:

Committee Activity:  Labor, Commerce & Trade:  2/22/96 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Majority Report:  Do pass.

  Signed by Senators Pelz, Chair; Heavey, Vice Chair; Deccio, Franklin, Fraser, Newhouse and Wojahn.

Staff:  Jack Brummel (786-7428)

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).  The financial assistance is used to finance public infrastructure required for business and industry expansion or retention.  Typical projects financed through CERB include sewer, water, roads, and industrial buildings.

Summary of Bill:  Governor-appointed members of the CERB that miss more than 50 percent of the scheduled meetings may be replaced by the Governor.  The CERB cannot award more than 20 percent of its biennial appropriation as grants to local governments.

"Local government" includes municipal corporations or quasi-municipal corporations that provide public facilities.

"Public facilities" are defined to mean bridges, roads, domestic and industrial water, sanitary sewer, storm sewer, railroad, electricity, natural gas, buildings or structures, and port facilities.

Technical corrections are made to: (1) change the term "loan and grant" to "financial assistance"; and (2) change the term "timber impact areas" to "rural natural resource impact areas."

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Sections 1 through 9, 11 and 13 take effect July 1, 1996; section 10 takes effect July 30, 1997.

Testimony For:  This bill meets the needs for technical and other changes identified by the department.

Testimony Against:  None.

Testified:  Peter Butks, CTED (pro).