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                           ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2774

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State of Washington                               51st Legislature                              1990 Regular Session

By House 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)

Read first time 2/6/90.

AN ACT Relating to economic impact studies of sports events; adding new sections to chapter 43.63A RCW; creating new sections; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that sports events and sports-related capital facilities can be a source of economic benefit to host communities, and that hosting sports events can be a useful element in a community's economic development strategy.  The legislature also finds that accurate, reliable, and comparable information on the economic impact of sports events and sports-related capital facilities is necessary for the legislature to determine which sports events should be supported by the state.

NEW SECTION. Sec. 2.     (1) The department of community development shall develop a process to assess the economic costs and benefits that occur as a result of sports events or construction of sports-related capital facilities in the state.  The department shall use the model developed under subsection (2) of this section and shall address and incorporate into its analysis the economic impact on the state, and the costs incurred by state and local governments as a result of the sports events or construction of sports-related capital facilities.

          (2) The department shall contract with the department of revenue or the office of financial management for the development of an econometric model capable of estimating the economic impact of a sports event or locating a sports-related capital facility in a community.  The model shall be capable of measuring the direct and indirect economic and fiscal impacts on the state, the affected local community, and surrounding communities.  The model shall clearly differentiate between new economic activity generated by a sports event or sports-related capital facility and ongoing local economic activity that is simply redirected to a sports event or a sports-related capital facility.

          (3) The department shall establish an advisory committee to review the process established under subsection (1) of this section and to make recommendations relating to the design of the application process established under section 3 of this act.  The committee shall consist of one staff member selected by the executive head or chairperson of each of the following agencies or committees:

          (a) Department of revenue;

          (b) Office of financial management;

          (c) Employment security department;

          (d) Department of trade and economic development;

          (e) Ways and means committee of the senate;

          (f) Fiscal committees of the house of representatives; and

          (g) The house of representatives trade and economic development committee and the senate economic development and labor committee.

NEW SECTION. Sec. 3.     The department shall recommend an application process or processes for requests for state funding for sports events and for sports-related capital facilities and consider the appropriate role of an advisory committee or board to evaluate and process the applications.

          The criteria to be considered in each application shall include, but not be limited to:  The expected direct and indirect economic impact, the types, sources, and duration of expected employment opportunities that will be created in the host area, the benefits that will accrue to the local host community, the respective county and region of the state, and the state, the probability of the financial success of the event, and the availability of other sources of funding.

NEW SECTION. Sec. 4.     The department, to the extent resources permit, shall:

          (1) Develop current information on sports development activities in Washington state and on the organizations, both public and private, that are involved in sports development;

          (2) Develop current information on sports development activities in the United States and the organizations, both public and private, that are involved in sports development; and

          (3) Survey and list the location, type, condition, and capacity of existing sports facilities in Washington state.

NEW SECTION. Sec. 5.     The department shall report on the economic impact model and present its recommendation for an application process or processes to the legislative fiscal committees, the trade and economic development committee in the house of representatives, and the economic development and labor committee in the senate, by January 1991.

NEW SECTION. Sec. 6.     The sum of eighty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of community development for the purposes of this act.

NEW SECTION. Sec. 7.     Sections 2 through 4 of this act are each added to chapter 43.63A RCW.