SENATE BILL REPORT

SB 5825

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of March 9, 2011

Title: An act relating to grant and loan programs.

Brief Description: Modifying provisions regarding grant and loan programs.

Sponsors: Senators Kilmer and Parlette; by request of Office of Financial Management.

Brief History:

Committee Activity: Ways & Means: 3/10/11.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Brian Sims (786-7431)

Background: There are a number of capital budget grant and loan programs administered by several state agencies. The grant and loan programs include the Building for the Arts Program, Building Communities Fund, Youth Recreation Facilities Program, Housing Trust Fund, and a variety of local infrastructure and economic development programs, all administered by the Department of Commerce; The Heritage Capital Projects Program, administered by the Washington State Historical Society; and the Washington Wildlife and Recreation Program, administered by the Recreation and Conservation Funding Board. Sometimes projects receiving grant and loan awards in a biennium still have unspent allocations four to six years later. There are also inconsistencies among the various programs regarding the requirements that must be met in order for the agency to contract with the grant or loan recipient.

Summary of Bill: Capital budget grant and loan programs administered by the Department of Commerce, the Washington Historical Society, and the Recreation and Conservation Funding Board must not contract for grants or loans until the recipient has demonstrated that the local matching funds are available, the project is ready to proceed with either preconstruction or construction activities, and the recipient is committed to make timely use of state funds by completing the project within four years.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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