SENATE BILL REPORT

SB 5104

BYSenators Anderson, Lee and McMullen

Providing technical assistance for self-help projects.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 18, 1989; January 25, 1989; January 18, 1990; January 29, 1990

Majority Report:  That Second Substitute Senate Bill No. 5104 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Matson, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:Jack Brummel (786-7428)

                  January 29, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 29, 1990

BACKGROUND:

Over the past 20 years, community-based development has emerged as a strategy of local organizations to bring about the economic and social revitalization of distressed communities.  The self-help emphasis of community-based development distinguishes it from other development efforts.  Community-based development involves local residents in housing rehabilitation, commercial or industrial development, and job generation activities.  A number of states have developed programs of financial and technical assistance to community development groups.  The technical assistance support has proven most cost-effective in leveraging resources to community-based development.

SUMMARY:

The original bill was not considered in the 1990 session.

EFFECT OF PROPOSED SUBSTITUTE:

The statute creating the local development matching fund is amended.  Two hundred thousand dollars is set aside for technical assistance grants to community-based organizations.  Up to 40 percent of the funds may be used for technical assistance in organizational and board development.  A minimum of 60 percent of the funds shall be used on development projects in low income areas with at least 10 percent of ownership held by the community organization.

Community-based organizations eligible for technical assistance grants are nonprofit corporations or native American tribes in sub-state areas with experience in operating low-income programs and with low-income representation on their boards.  Community-based organizations must meet certain requirements to qualify for the funds. An appropriation of $200,000 is added.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

The appropriation of $200,000 is deleted.

Appropriation:    none

Revenue:    no

Fiscal Note:      available

Senate Committee - Testified: Stephen Buxbaum, DCD