HOUSE BILL REPORT
2SSB 5104
BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Anderson, Lee and McMullen)
Providing technical assistance for self-help projects.
House Committe on Trade & Economic Development
Majority Report: Do pass as amended. (9)
Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, Kirby, Kremen, Raiter, Rasmussen, Rector and Tate.
House Staff:Paul Leistner (786-7663)
AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT
FEBRUARY 23, 1990
BACKGROUND:
The Local Development Matching Fund Program was created in 1984 in the Department of Community Development. The program provides grants to local governments and nonprofit local development entities for the formulation of local economic development strategies, including technical analyses of local economic factors. Program funds may also be used to assist local businesses in utilizing state and federal programs in exporting, training, and financing, and to provide technical assistance to businesses in the areas of land use, transportation, site location, and manpower training.
Program funds may not be used for entertainment, capital expenses, hosting, or marketing. Program grants must be matched by local resources on a dollar-for-dollar basis. No more than $50,000 in program matching funds may be provided for any one project.
SUMMARY:
BILL AS AMENDED: The Local Development Matching Fund Program in the Department of Community Development is expanded to allow the department to provide technical assistance grants to assist community-based organizations in pursuing the redevelopment and economic well-being of low-income areas. Applications considered under this act must meet the existing requirements of the Local Development Matching Fund Program, and funds appropriated for the activities of this act may only be used to provide grants for technical assistance.
No more than 40 percent of the funds may be used to provide organizational and board development assistance to organizations for the purpose of undertaking a development project. At least 60 percent of the funds must be used for development projects in which community-based organizations have at least 10 percent ownership and that will primarily benefit the residents of a low-income area.
Community-based organizations that are eligible for technical assistance grants are (1) nonprofit corporations in sub-state areas with experience in operating low-income programs and with low-income representation on their boards, and (2) any Native American tribal governing body.
AMENDED BILL COMPARED TO SECOND SUBSTITUTE: The bill as amended removes the requirement that the department set aside $200,000 per biennium to provide technical assistance grants to assist community-based organizations in their efforts contributing to the redevelopment and economic well-being of low-income areas. All applications for grants must meet the existing requirements of the Local Development Matching Fund Program. Funds appropriated for this act may only be used to provide grants for technical assistance.
Fiscal Note: Requested February 20, 1990.
House Committee ‑ Testified For: Senator Ann Anderson, prime sponsor of original bill; Senator Bill Smitherman; Carol Bergin, Puget Sound Cooperative Federation; and Paul Knox, Citizen.
House Committee - Testified Against: No one.
House Committee - Testimony For: Present state economic development efforts do not adequately address the need for economic development on a community level, especially for low income persons and areas. This bill would provide support for community-based development organizations (CBO) across the state that are trying to generate economic development in low-income communities. Many rural communities that do not presently have the local capacity to organize a CBO board or make applications for assistance would get technical assistance in these areas and in pursuing community-based economic development projects.
House Committee - Testimony Against: None.