HOUSE BILL REPORT

                 ESHB 2170

                  As Amended by the Senate

Title:  An act relating to investments of state‑wide significance.

Brief Description:  Expediting projects of state‑wide significance.

Sponsors:  By House Committee on Trade & Economic Development (originally sponsored by  Representatives Pennington, Sheldon and Ogden).

Brief History:

Committee Activity:

Trade & Economic Development:  3/5/97 [DPS];

Appropriations:  3/8/97 [DPS(TED)].

Floor Activity:

Passed House:  3/17/97, 98‑0.

Senate Amended.

HOUSE COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 8 members:  Representatives Van Luven, Chairman; Dunn, Vice Chairman; Veloria, Ranking Minority Member; Sheldon, Assistant Ranking Minority Member; Alexander; Mason; McDonald and Morris.

Minority Report:  Without recommendation.  Signed by 1 member:  Representative Ballasiotes.

Staff:  Kenny Pittman (786-7392).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The substitute bill by Committee on Trade & Economic Development be substituted therefor and the substitute bill do pass.  Signed by 28 members:  Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Minority Report: Without recommendation.  Signed by 3 members:  Representatives Wensman, Vice Chairman; Keiser and Poulsen.

Staff:  Jim Lux (786-7152).

Background:  Major industrial investments can have a significant impact on a city=s or a county=s regulatory process and economic well-being.  State recognition of and assistance with major industrial investments or economic development projects can expedite their completion.

Summary of Bill:  A process to expedite the development of industrial projects of statewide significance is created.  Local governments (cities and counties) that have comprehensive plans may, at its option, develop a process to expedite the review, approval, permitting, and completion of projects of statewide significance.

The local government may notify the Department of Community, Trade and Economic Development (DCTED) within 10 days of receipt of an application to develop a project of statewide significance in the local government.  The information to DCTED must contain information on project type, amount of public and private investment, and local government contact person.

The DCTED must assign an ombudsman to each project of statewide significance to assemble a team of state, local government, and private officials to help meet the project=s planning and development needs.  Members of the team include those with responsibility over planning, permitting and licensing, infrastructure development, work force development services, transportation services, and the provision of utilities for the specific project of statewide significance.  The DCTED must create a fee structure to charge a developer of a project of statewide significance a fee to cover the costs of the ombudsman service.  The fees charged by DCTED are based on a percentage of the costs of the project.

AProject of statewide significance@ means a manufacturing or research and development project where the initial construction is completed after January 1, 1997, and have a capital investment that meets the thresholds established for county where the project is located.  The director of DCTED is given the authority to designate specific projects, that does not meet the stated capital investment thresholds, as a project of statewide significance.

EFFECT OF SENATE AMENDMENT(S):  The definition of a project of statewide significance is expanded to include a border crossing project that involves public and private investments.

The Work Force Training and Education Board, Higher Education Coordinating Board, Department of Ecology, and Department of Transportation are each required to revise their planning and policy documents to show how they will address the hiring and educational needs of industrial projects of statewide significance.

The state Board of Education may provide additional state assistance to school districts that face a special school housing burden because of the development of industrial projects of statewide significance within their boundaries.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  (Trade & Economic Development)  There is a need to speed up the approval process for major industrial projects.  This bill would have the government and private sector working together to expedite the approval and development of major projects.  Government needs a way to help recover some of the costs of the ombudsman.  The fee ability to charge fees for this important service is an important addition to the bill.

(Appropriations)  None.

Testimony Against:  ( Trade & Economic Development)  None.

(Appropriations)  None.

Testified:  (Trade & Economic Development)  Diane Nelson, Couriers (pro); and Randy Lewis, city of Tacoma (pro with concerns).

(Appropriations)  None.