SENATE BILL REPORT

                            SB 5608

   AS REPORTED BY COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC

                DEVELOPMENT, FEBRUARY 18, 1993

Brief Description:  Reauthorizing the community economic revitalization board.

SPONSORS: Senators Skratek, Snyder, Bluechel, M. Rasmussen, Anderson, Moore, Winsley, Franklin and von Reichbauer; by request of Department of Trade and Economic Development

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  That Substitute Senate Bill No. 5608 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Midori Okazaki (786‑7444)

Hearing Dates: February 16, 1993; February 18, 1993

BACKGROUND:

The Community Economic Revitalization Board (CERB) program was created by the Legislature in 1982 as a financial incentive program to assist business expansion, recruitment and retention efforts.  Job creation and retention are the primary goals of the program.  Loans and grants are provided to cities, counties, ports, and special utility districts to improve public infrastructure necessary for private development in the manufacturing sector. 

The CERB program was expanded in 1991 to provide matching monies for feasibility studies and public infrastructure projects that support industrial and tourism development in timber-impacted communities.  In addition, there is a DOT/CERB grant program which supports state highway improvement projects. 

Fifty percent of CERB funds are required to go to projects in designated distressed or timber-dependent communities.

CERB expires on June 30, 1993.

SUMMARY:

The expiration date of the statute authorizing CERB is extended to June 30, 1999.

The board is directed to forward a copy of any application for financial assistance to encourage the development of a recycling facility to the Department of Ecology and to notify the department of any decision regarding the application.

The protections under the Public Records Act are extended to proprietary information submitted in an application for CERB loans or program services.

EFFECT OF PROPOSED SUBSTITUTE:

The 1999 sunset date is removed and CERB's authorization is extended indefinitely.  An emergency clause is added.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

TESTIMONY FOR:

CERB is one of the few business expansion tools available to the state.  It has also been a successful tool.  Over 11,000 direct jobs have been created or retained as a result of CERB funding.  More CERB money has gone to distressed or timber-dependent areas than even required by the statute.  CERB's low-interest financing allows CERB projects to keep their costs down.  The Legislative Budget Committee recommended CERB be reauthorized upon the board's adoption of certain procedural changes, which have been adopted.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Robert Cowan, CERB Chairman; Donna Batch, Department of Trade and Economic Development; Scott Taylor, Washington Public Ports Association; Amber Hansen, Port of Sunnyside