HOUSE BILL REPORT

                 2SHB 1686

                    As Passed Legislature

Title:  An act relating to local economic development cooperatives.

Brief Description:  Requiring cooperation with local economic development cooperatives.

Sponsors:  By House Committee on Economic Development, Housing & Trade (Originally sponsored by Representatives Kessler, DeBolt, Alexander, Mulliken, Morris, Linville, G. Chandler, Pennington, Wolfe, Hatfield, McMorris, Delvin, Romero, Sump, Clements, Ericksen, Schoesler, Campbell, D. Schmidt, Fortunato, Mielke, Radcliff, Cox, Mastin, Murray, Cooper, Lisk, Crouse, Hankins, Skinner, Thomas, B. Chandler, Koster, Parlette and Ruderman).

Brief History:

  Committee Activity:

Economic Development, Housing & Trade:  2/23/99, 3/2/99 [DPS];

Appropriations:  3/5/99, 3/7/99 [DP2S(w/o sub EDHT)].

Floor Activity:

Passed House:  3/15/99, 97-0.

Passed Senate:  4/7/99, 48-0.

Passed Legislature.

        Brief Summary of Second Substitute Bill

$Requires the Department of Community, Trade, and Economic Development to work with local economic development councils in providing technical assistance to communities and businesses in securing available financing.

CEstablishes a grant program for national and international marketing of an area for business recruitment by local associate development organizations.

HOUSE COMMITTEE ON ECONOMIC DEVELOPMENT, HOUSING & TRADE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives Van Luven, Republican Co-Chair; Veloria, Democratic Co-Chair; Dunn, Republican Vice Chair; Eickmeyer, Democratic Vice Chair; Ballasiotes; Gombosky; Miloscia; Morris; Radcliff; Skinner; D. Sommers and Wolfe.

Staff:  Kenny Pittman (786-7392).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Economic Development, Housing & Trade.  Signed by 31 members:  Representatives Huff, Republican Co-Chair; H. Sommers, Democratic Co-Chair; Alexander, Republican Vice Chair; Doumit, Democratic Vice Chair; D. Schmidt, Republican Vice Chair; Barlean; Benson; Boldt; Carlson; Clements; Cody; Crouse; Gombosky; Grant; Kagi; Keiser; Kenney; Lambert; Linville; Lisk; Mastin; McIntire; McMorris; Mulliken; Parlette; Regala; Rockefeller; Ruderman; Sullivan; Tokuda and Wensman.

Staff:  Mark Matteson (786-7145).

Background:

The Department of Community, Trade, and Economic Development is the primary state agency charged with assisting communities or regional areas in their community and economic development efforts.  The department works directly with a variety of local economic development organizations to help communities attract businesses to their area, help existing businesses expand, or retain existing businesses.

The Community Development Finance program was created in 1984.  The department provides technical assistance to assist communities and businesses access available federal, state, and private sources of community development or business financing.

An Associate Development Organization (ADO) is a local nonprofit corporation created for the purpose of encouraging economic development within an area.  The ADO works with representatives in their service area to identify key economic and community development problems, development appropriate solutions, and mobilize broad support for recommended initiatives.  The ADO then assumes the leadership role in the coordination of efficient delivery of services designed to implement the recommended initiatives.  There are 33 ADOs in the state that operate on either a county-wide basis or in a consortium consisting of two or more counties.

Summary of Bill:

The DCTED must work with local economic councils to provide technical assistance to assist communities and businesses access available sources of community development or business financing.

A regional business recruitment grant program is created within the DCTED.  The purpose of the program is to assist local ADO market the area to business on a national and international basis.

An application for assistance to the department must: (i) be submitted by a local associate development organization or consortium of associate development organizations; (ii) contain evidence of active participation between the public and private sector; (iii) contain a description of how the proposed project will assist in business recruitment efforts; and (iv) contain other information the director of the department deems necessary.

In making awards, the department must: (i) consider the degree of other funds, including in-kind match committed to the project; (ii) consider the degree of community support for the proposed project; and (iii) consider the coordination of the proposed project with existing state and local business recruitment efforts.

Appropriation:  None.

Fiscal Note:  Requested for the substitute bill on March 3, 1999.

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

Testimony For:  (Economic Development, Housing & Trade) (Original Bill) This provides rural communities another economic development tool.  Developing additional financing expertise will help local economic development efforts.

(Appropriations)  None.

Testimony Against:  (Economic Development, Housing & Trade) None.

(Appropriations) None.

Testified:  (Economic Development, Housing & Trade) (In support) Representative Kessler, prime sponsor.

(Appropriations) No testimony.