HOUSE BILL REPORT

                 2SSB 5514

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to economic development grants.

Brief Description:  Creating the economic development grants program.

Sponsors:  Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Sheldon, Bluechel, Williams, Erwin, Skratek, M. Rasmussen, Deccio and Snyder).

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, April 1, 1993, DPA.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  Do pass as amended.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.

Staff:  Charlie Gavigan (786-7340).

Background:  There are numerous federal and private economic development assistance programs for which state agencies and local governments and organizations are eligible to apply.  Some state agencies have had success in garnering non-state support for economic development projects, but there is no systematic effort to maximize federal and private funds for such projects.

Summary of Amended Bill:  The Economic Development Grants Program is created in the Department of Community Development.  The program will be operated by a managing director and at least one grant writer.  The director is to stay abreast of grant opportunities from federal and private sources, write grant requests, and assist state agencies and local organizations in their grant seeking efforts.

The Department of Trade and Economic Development is responsible for ensuring that local businesses and groups are aware of the availability of technical assistance for garnering economic development grants.

A null and void clause makes the program contingent upon funding in the 1993-95 biennial budget.

Amended Bill Compared to Second Substitute Bill:  The grant assistance program is created in the Department of Community Development rather than the Office of Financial Management.

Fiscal Note:  Available.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed.  However, the bill is null and void if not funded in the budget.

Testimony For:  This will help state and local governments and organizations to find and obtain grants that are available but not currently being received in Washington State.  This is critical during periods of declining public revenues.

Testimony Against:  None.

Witnesses:  Senator Betti Sheldon, prime sponsor (pro); and K. D. Rosenberg, Northeast Tri-county Area (pro).