FINAL BILL REPORT

HB 1937

C 85 L 11

Synopsis as Enacted

Brief Description: Authorizing local improvement district funding to benefit innovation partnership zones for the purposes of economic development.

Sponsors: Representatives Ryu, Kenney, Moscoso, Ladenburg and Roberts.

House Committee on Community Development & Housing

Senate Committee on Economic Development, Trade & Innovation

Background:

Local Improvement Districts.

Cities and towns are granted broad authority to create a local improvement district (LID) for the purpose of constructing, reconstructing, or repairing a wide range of publicly owned structures, facilities, and infrastructure, including:

• specified types of public buildings;

• community facilities for recreation, entertainment, and cultural activities;

• bridges and trestles;

• dikes and embankments;

• parks and playgrounds;

• street lighting systems;

• infrastructure for public transportation systems; and

• water and sewer system infrastructure.

A LID may be created by an ordinance passed by the city or town council in accordance with specified statutory procedures. The passage of the ordinance must be in response to either a petition or resolution proposing the creation of the district, with the petition or resolution subject to a public hearing. Under certain circumstances the proceedings necessary to establish a LID must be initiated by the petition of the affected property owners.

The costs of creating a LID are financed, in whole or in part, through special assessments on property that is specially benefited by the improvement.

Innovation Partnership Zones.

In 2007 legislation was enacted directing the Department of Community, Trade and Economic Development (now the Department of Commerce) to design and implement an Innovation Partnership Zone (IPZ) Program through which the state would encourage and support research institutions, workforce training organizations, and globally competitive companies to work cooperatively in close geographic proximity to create commercially viable products and jobs.

Using specified criteria, the Department of Commerce with the advice of the Economic Development Commission designates the IPZs for a period of four years. An IPZ may renew its designation through a reapplication process, and may lose its designation for failure to meet performance standards. The IPZs are eligible for funds as provided by the Legislature or at the discretion of the Governor. There are 12 IPZs in Washington.

Summary:

The list of projects eligible for LID funding is expanded to include the construction, reconstruction, or repair of research laboratories, testing facilities, incubation facilities, and training centers that are built in IPZ designated areas.

Votes on Final Passage: