SENATE BILL REPORT

2SHB 1293

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives G. Fisher, Cantwell, Doty, Schoon, Rasmussen, Raiter, Moyer, Rector, R. King, Todd, McLean and P. King; by request of  Director of Trade and Economic Development)

Revising provisions for the community economic revitalization board.

House Committe on Trade & Economic Development

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 22, 1990

Senate Staff:Patrick Woods (786-7430)

AS OF FEBRUARY 15, 1990

BACKGROUND:

The Community Economic Revitalization Board (CERB) is authorized to make loans and grants to port districts, counties, cities, and towns to construct public facilities that support economic development efforts.  Grants may be authorized only to the extent that a loan is not possible.

Before any loan or grant application is approved, the local government must demonstrate to CERB that no other timely source of funding is available to it at costs which are similar to CERB financing.

The Community Economic Revitalization Board prioritizes each proposed project according to the number of jobs it would create after it is completed and the unemployment rate in the area in which the jobs are located.  At least 20 percent of the funds available for grants and loans must be for projects in distressed counties, unless it appears that the number of applications for projects in these areas is insufficient to use the 20 percent allocation.

The Community Economic Revitalization Board is authorized to make grants and loans only for projects which result in specific private developments or expansions in:  (1) manufacturing, production,  food processing, assembly, warehousing, and industrial distribution; (2) processing or support of processing of recyclable materials; (3) manufacturing facilities that rely significantly on recyclable materials; or (4) projects which substantially support the export of goods and services outside the state.

SUMMARY:

The Community Economic Revitalization Board is authorized to make grants or loans which would result in specific private developments or expansions in destination tourist resorts.

A destination tourist resort is defined as a planned tourism and recreation complex that is developed primarily as a location for recreation and tourism activities that will be used primarily by non-residents of the state and that is generally located away from densely populated areas.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested