FINAL BILL REPORT

                 SHB 2755

                          C 51 L 96

                     Synopsis as Enacted

Brief Description:  Promoting economic development.

Sponsors:  By House Committee on Trade & Economic Development (originally sponsored by Representatives Van Luven, Sheldon, Silver and Hatfield; by request of Department of Community, Trade and Economic Development).

House Committee on Trade & Economic Development

House Committee on Capital Budget

Senate Committee on Labor, Commerce & Trade

Background:  The Community Economic Revitalization Board Program (CERB) was created by the Legislature in 1982 to provide low-interest loans and grants to political subdivisions of the state (cities, towns, counties, port districts, and special purpose utility districts).  The financial assistance is used to finance public infrastructure required for business and industry expansion or retention.  Typical projects financed through CERB include sewer, water, roads, and industrial buildings.

CERB operates under policy guidelines and project selection developed by its board.  The board consists of legislators and representatives of local governments, large and small businesses, port districts, and an economist.  The Governor appoints the non-legislative members for three-year terms and selects the chair.

CERB is funded through legislative appropriations in the capital budget and through a portion of the revenue from the repayment of loan principal and interest.  The payments are deposited into the public facilities construction loan revolving account.  The repayments are also re-appropriated for CERB use by the Legislature.

Summary:  Revisions are made to the Community Economic Revitalization Board Program regarding the amount of grant assistance to local governments and program definitions.

Governor-appointed members who miss more than 50 percent of the scheduled meetings are considered withdrawn from the board and may be replaced by the Governor.  The CERB board cannot award more than 20 percent of its biennial appropriation as grants to local governments.

"Local government" includes municipal corporations or quasi-municipal corporations that provide public facilities.

"Public facilities" are defined to mean bridges, roads, domestic and industrial water, sanitary sewer, storm sewer, railroad, electricity, natural gas, buildings or structures, and port facilities.

Technical corrections are made to (1) change the term "loan and grant" to "financial assistance", and (2) change the term "timber impact areas" to "rural natural resource impact areas."

Votes on Final Passage:

House     96 0

Senate    49 0

Effective:  July 1, 1996  (Sections 1-9 and 11)

June 30, 1997 (Section 10)