HOUSE BILL REPORT

E2SHB 2774

BYHouse Committee on Appropriations (originally sponsored by Representatives Rasmussen, Cantwell, Doty, Schoon, Rector, Jesernig, Moyer, Kirby, Wineberry, Raiter, G. Fisher, Tate, Youngsman, P. King, Ferguson, Winsley, Dorn, Betrozoff and Sayan)

Providing for economic impact studies of sports events.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, G. Fisher, Raiter, Rasmussen, Rector, Tate and Youngsman.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Kremen and Schoon.

House Staff:Paul Leistner (786-7663)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (17)

      Signed by Representatives Locke, Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Bowman, Dorn, Doty, Ebersole, Hine, Inslee, McLean, Nealey, Padden, Peery, Spanel, Wang and Wineberry.

Minority Report:  Without recommendation.  (1)

      Signed by Representative Rust.

House Staff:      Susan Nakagawa (786-7145)

AS PASSED HOUSE FEBRUARY 12, 1990

BACKGROUND:

Sports activities are being used in many communities across the nation as a tool to generate economic development.  The Washington State Legislature has received a number of requests for financial assistance in staging sports events and for the construction or enhancement of sports-related facilities.  It is often difficult to obtain accurate, reliable, and comparable information with which to judge the economic impact of these requests.

Generally, the Department of Community Development or the Department of Trade and Economic Development administer state financial assistance for sports events or related facilities on a case by case basis. There is no systemized process by which persons or organizations receive funding for sports events facilities.

SUMMARY:

The Department of Community Development is required to develop a process to assess the economic costs and benefits of sports events and the construction of sports-related capital facilities.  As part of this process, the department is required to contract with the Department of Revenue or the Office of Financial Management for the development of an econometric model capable of estimating the impacts of sports events and facilities in a community.

The department is required to recommend to the Legislature an application process or processes for requests for state funding for sports events or sports-related capital facilities, and must consider the appropriate role of an advisory committee in that process.  The department is required to establish an advisory committee to review both the development of the economic impact assessment process and the development of the application process.

The department is to develop current information on sports development activities in Washington State and in the United States, and survey existing sports facilities in Washington State.

The department shall report to the Legislature on the activities related to the charges in this act by January 1991.

Appropriation:    $80,000 to the Department of Community Development.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Trade & Economic Development) Grant Smith, Greater Spokane Sports Association; and Dr. Maurice Ray, Spokane Community Colleges.

(Appropriations)  Representative Maria Cantwell, Chair, Trade & Economic Development Committee; and Representative Marilyn Rasmussen.

House Committee - Testified Against:      (Trade & Economic Development) No one.

(Appropriations) No one.

House Committee - Testimony For:    (Trade & Economic Development) A formalized application process for applying for state financial assistance for sports events and sports facilities would make it easier to approach the state for funding.

(Appropriations)  A coordinated approach should be undertaken to assess the economic impact and benefit to the state of sports events.  The proposed legislation would provide a method for assessing the merit of different proposals for state funding.

House Committee - Testimony Against:      (Trade & Economic Development) None.

(Appropriations) None.