SENATE BILL REPORT

SB 5761

As Reported By Senate Committee On:

Economic Development, February 26, 2003

Title: An act relating to industrial projects of statewide significance.

Brief Description: Modifying requirements for industrial projects of statewide significance.

Sponsors: Senators T. Sheldon and Shin.

Brief History:

Committee Activity: Economic Development: 2/19/03, 2/26/03 [DPS].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT

Majority Report: That Substitute Senate Bill No. 5761 be substituted therefor, and the substitute bill do pass.

      Signed by Senators T. Sheldon, Chair; Zarelli, Vice Chair; Benton, Hale, Kohl-Welles; Rossi, Schmidt, B. Sheldon and Shin.

Staff: Jack Brummel (786-7428)

Background: In 1997, the Legislature created a process to expedite the development of industrial projects of statewide significance. Industrial investments of statewide significance are defined as either a border crossing project that involves both private and public investments or a private capital investment in manufacturing or research and development. The capital investment threshold is dependent on the size of the population in a county. The capital investment requirements range from $20 million for a project located in a county with a population of 20,000 or less, to $1 billion for a project located in a county with a population greater than one million. The Director of the Department of Community, Trade, and Economic Development (CTED) may designate a project as one of statewide significance in special circumstances.

Counties and cities may include in their written plans a process to expedite the review, approval, permitting, and completion of projects of statewide significance.

CTED 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.

In 2001, the Legislature created the Office of Permit Assistance in the Office of Financial Management to provide information, facilitation, and coordination services to help streamline the permitting process.

Summary of Substitute Bill: The definition of industrial projects of statewide significance is expanded to include projects with projected employment positions of 50 or greater in rural counties and 100 or greater in urban counties. An application for designation as an industrial project of statewide significance must be submitted to CTED. The application includes a letter of approval from jurisdictions where a project is located.

Counties and cities with projects are to enter into agreements with the Office of Permit Assistance and project managers of industrial projects of statewide significance to expedite the processes necessary for the design and construction of projects.

The Office of Permit Assistance is to provide facilitation and coordination services to industrial projects of statewide significance.

Substitute Bill Compared to Original Bill: The substitute provides for CTED, rather than the Office of Permit Assistance to handle the application and designation process. Local jurisdictions must submit a letter of approval.

Appropriation: None.

Fiscal Note: Requested on February 16, 2003.

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

Testimony For: There is concern that the current proposal may tax the ability of the Office of Permit Assistance. We would like the application and designation process to stay with the Department of Community, Trade, and Economic Development. The Governor is supportive of this concept.

Testimony Against: None.

Testified: Sue Mauermann, Dept. of Ecology (pro); Ron Shultz, Executive Policy Office.