SENATE BILL REPORT

SB 6281

As Passed Senate, February 9, 2004

Title: An act relating to the Hanford area economic investment fund.

Brief Description: Modifying provisions concerning the Hanford area economic investment fund.

Sponsors: Senators Hale, T. Sheldon, B. Sheldon, Esser, Roach and Rasmussen; by request of Department of Trade and Economic Development.

Brief History:

Committee Activity: Economic Development: 1/23/04 [DP].

Passed Senate: 2/9/04, 46-0.

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT

Majority Report: Do pass.

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

Staff: Jack Brummel (786-7428)

Background: The Hanford Area Economic Investment Fund was established by the Legislature in 1991 with moneys collected for the disposal of low-level radioactive waste. Moneys in the fund are available for revolving funds, infrastructure projects and other economic development and diversification projects in Benton and Franklin counties. The investment fund is overseen by a local 11-member committee that administers programs subject to the review and approval of the director of the Department of Community, Trade and Economic Development (CTED). Recommendations of the committee have always been approved.

Summary of Bill: The review and decision functions of the CTED director are diminished. The committee may make decisions regarding the use of the investment fund and the director must disburse funds accordingly, provided six members of the committee approved the decision. The committee may adopt administrative rules and a spending strategy.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: CTED's role made more sense in the infancy of the committee but given the track record of success, it makes sense to hand over the reins to the committee. They have about $3 million available for lending in their loan pool. The CTED review of loans was becoming redundant. The local committee is better situated to determine the direction the fund should take.

Testimony Against: None.

Testified: PRO: Tom McBride, Jim Keogh, Community, Trade and Economic Development.