SENATE BILL REPORT

SB 6288

As Reported By Senate Committee On:

Economic Development, January 28, 2004

Title: An act relating to clarifying the authority of the community economic revitalization board to make loans and grants to eligible federally recognized Indian tribes in rural counties and rural natural resources impact areas eligible for assistance under the rural program.

Brief Description: Allowing federally recognized Indian tribes in rural counties and rural natural resources impact areas to be eligible for assistance under the community economic revitalization board's rural program.

Sponsors: Senators T. Sheldon, Hale, B. Sheldon, Esser, Winsley, Haugen, Fraser and Rasmussen; by request of Department of Trade and Economic Development.

Brief History:

Committee Activity: Economic Development: 1/21/04, 1/28/04 [DP].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT

Majority Report: Do pass.

      Signed by Senators T. Sheldon, Chair; Kohl-Welles, Murray, Schmidt and Shin.

Staff: Jack Brummel (786-7428)

Background: The Community Economic Revitalization Board (CERB) was created in 1982 to provide funding for publicly-owned economic development infrastructure. Through CERB, direct loans and grants are available to counties, cities, and special purpose districts for feasibility studies and for public improvements such as the acquisition, construction, or repair of water and sewer systems, bridges, railroad spurs, telecommunication systems, roads, structures, and port facilities. CERB funds are only made available if a specific private development or expansion is ready to occur and will occur only if the public improvements are made.

In 2002, the Legislature added federally recognized Indian tribes to the list of eligible recipients of CERB funds.

Summary of Bill: References to federally recognized Indian tribes are added in the definition of "public facilities," the section of the CERB statute relating to grants, and the section relating to application for CERB funds.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: The bill seeks to correct some ambiguity and address the legislative intent in 2002 to make all federally recognized tribes eligible for CERB funds. This is a technical clean-up bill. Leasehold excise taxes do exist for nontribal businesses located within the boundaries of a reservation.

Testimony Against: Stores on tribal land need to collect sales and excise taxes. We need an equal playing field. If they receive state development dollars, they should pay taxes.

Testified: PRO: Tom McBride, CTED; Miland Walling, CERB; Michael Moran, Samish and Quileute Tribes; Ron Newbry, Washington Economic Dev. Assn.; Randy Scott, Colville Confederated Tribe, Quinault Nation; CON: TK Bentler, Washington Assn. of Neighborhood Stores.