SENATE BILL REPORT

SSB 5328

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Bluechel, Lee, Smitherman and Warnke; by request of Director of Trade and Economic Development)

Revising provisions for the community economic revitalization board.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 10, 1990; January 11, 1990

Majority Report:  That Substitute Senate Bill No. 5328 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Patrick Woods (786-7430)

                  January 31, 1990

AS PASSED SENATE, JANUARY 31, 1990

BACKGROUND:

The Community Economic Revitalization Board (CERB) was established to provide incentives to business and industry in order to expand employment opportunities and promote economic development.  The board is authorized to award loans and grants to help finance construction of public works projects including sewers, water systems, access roads, bridges, and improvements to state highways which are necessary for private sector development.  The board is comprised of elected officials and private citizens appointed by the Governor.

Washington State cities, towns, counties, port districts and special purpose utility districts may apply for CERB funding.  The development projects that are eligible for funding include manufacturing, production, food processing, assembly, warehousing and distribution facilities or businesses that support the trading of goods and services outside the state's borders.  Project applications must include evidence that a private development or expansion is ready to occur and will only take place if CERB funds are provided.  In addition, applicants must demonstrate no other timely source of funds is available at reasonably similar rates.

A recent report of the Department of Trade and Economic Development's Tourism Industry Assessment Committee recommended that CERB be authorized to make loans or grants to tourism destination resorts.

SUMMARY:

The list of eligible development projects that may receive Committee Economic Revitalization Board (CERB) loans or grants is expanded to include destination tourist resorts.

Destination tourist resort is defined as a master planned tourism and recreation complex that:  is primarily used by nonresidents of the local area; contains lodging, eating and drinking establishments; and is generally located away from densely populated areas.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: John Anderson, Director, Department of Trade and Economic Development (pro)