SENATE BILL REPORT

                   HB 2349

              As Reported By Senate Committee On:

                  Ways & Means, March 2, 1998

Title:  An act relating to capital projects for local nonprofit art and cultural organizations.

Brief Description:  Funding capital projects for local nonprofit art and cultural organizations.

Sponsors:  Representatives Ogden, Gardner, Romero, Butler, Chopp, Costa, Anderson, Kenney, Cooper, Constantine, Conway and Lantz.

Brief History:

Committee Activity:  Ways & Means:  2/27/98, 3/2/98 [DPA, DNPA].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass as amended.

  Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Kohl, Long, McDonald, Roach, Rossi, Snyder, Swecker and Winsley.

Minority Report:  Do not pass as amended.

  Signed by Senators Fraser, Loveland, B. Sheldon and Thibaudeau.

Staff:  Michael Groesch (786-7434)

Background:  Building for the Arts, a program giving state grants for local art facility improvements, has been funded in the capital budget since 1991 through budget provisos.  The state capital budget has provided over $26 million for nonprofit art organization facilities located across the state.  However, the Building for the Arts program nor the solicitation process for the program has been codified into statute.

Summary of Amended Bill:  The Department of Community, Trade, and Economic Development (CTED) must establish a statewide competitive evaluation process to solicit and prioritize performing arts, art museum and cultural organization capital projects in consultation with a citizen advisory committee.  The evaluation process used to develop the prioritized list must use objective criteria, consider local community support for projects and an examination of existing assets that applicants may apply to projects.  The Legislature may consider the list when appropriating capital funds for the projects.

State grants may provide for no more than 15 percent of the cost of acquiring, constructing or rehabilitating art facilities.  The remaining portions of the project capital cost shall be a match from nonstate sources that may include land value and cash contributions.  CTED is authorized to set matching requirements for individual projects.

If project grantees are found to be out of compliance with contract provisions, grantees must repay the principal amount of the grant plus interest, where interest is calculated as the rate of interest on state of Washington general obligation bonds issued most closely to the date of grant authorization.

Amended Bill Compared to Original Bill:  The act expires and the program terminates on June 30, 2003.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Building for the Arts program has been funded in the capital budget through budget provisos since 1991.  The program nor the solicitation process has been codified into statute.  By institutionalizing the program, the number of projects and capital needs will be identified prior to the Legislature appropriating capital funds, giving more visibility to the specific projects that may be funded.

Testimony Against:  None.

Testified:  Representative Val Odgen, prime sponsor (pro).