HOUSE BILL REPORT

HB 2774

BYRepresentatives Rasmussen, Cantwell, Doty, Schoon, Rector, Jesernig, Moyer, Kirby, Wineberry, Raiter, G. Fisher, Tate, Youngsman, P. King, Ferguson, Winsley, Dorn, Betrozoff and Sayan

Providing for economic impact studies of sports events.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, G. Fisher, Raiter, Rasmussen, Rector, Tate and Youngsman.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Kremen and Schoon.

House Staff:Paul Leistner (786-7663)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (17)

      Signed by Representatives Locke, Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Bowman, Dorn, Doty, Ebersole, Hine, Inslee, McLean, Nealey, Padden, Peery, Spanel, Wang and Wineberry.

Minority Report:  Without recommendation.  (1)

      Signed by Representative Rust.

House Staff:      Susan Nakagawa (786-7145)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 3, 1990

BACKGROUND:

Sports activities are being used in many communities across the nation as a tool to generate economic development.  The Washington State Legislature has received a number of requests for financial assistance in staging sports events and for the construction or enhancement of sports-related facilities.  It is often difficult to obtain accurate, reliable, and comparable information with which to judge the economic impact of these requests.

Generally, the Department of Community Development or the Department of Trade and Economic Development administer state financial assistance for sports events or related facilities on a case by case basis. There is no systemized process by which persons or organizations receive funding for sports events facilities.

SUMMARY:

SUBSTITUTE BILL:  The Department of Community Development is required to consult with experts in the field of economic impact analyses and must design a model by which accurate, reliable, and comparable economic impact studies of sports events and sports- related capital facilities could be undertaken.

The department is required to recommend, to the legislature, an application process or processes for state funding for sports events and sports-related capital facilities, and must consider the appropriate role of an advisory committee or board to evaluate these applications.

The department is to develop information on sports development activities in Washington State and in the United States, and survey existing sports facilities in Washington State.

The department shall report to the legislature on the activities related to the charges in this act by January 1991.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill requires the department to include sports-related capital facilities in its economic analysis and application models. The department is no longer required to develop the capability to perform economic impact analyses and must only design a model for measuring the economic impact of sports events and sports-related capital facilities.

The substitute bill requires that the department consult with the Department of Trade and Economic Development, the business community, promoters of major sports franchises and sports events, and local organizations involved in sports development.  The department is not required to maintain information on sports development on an on-going basis.  The department shall report to the legislature by January 1991.  An appropriation of $80,000 is made to the department in the substitute bill.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS (SECOND SUBSTITUTE BILL):  The requirement that the Department of Community Development develop an economic impact model in consultation with experts at the University of Washington is amended.  The department is required to contract with either the Department of Revenue or the Office of Financial Management for development of an econometric model.  Language is added requiring that the process developed by the department assess the economic costs and benefits that occur as a result of sports events or construction of sports-related capital facilities.  Costs incurred by the state and local governments as a result of a sports event or sports-related capital facility are required to be incorporated into the analysis.  Language requiring that the department consult with other state agencies and legislative committees is deleted.  An advisory committee is established to review both the process established for assessing economic impact, and development of the econometric model.  The advisory committee is required to include one staff member from the Department of Revenue, Office of Financial Management, Department of Employment Security, Department of Trade and Economic Development, Senate Ways and Means Committee, and the fiscal and Trade & Economic Development Committees from the House of Representatives.

Appropriation:    $80,000 to the Department of Community Development.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Trade & Economic Development) Grant Smith, Greater Spokane Sports Association; and Dr. Maurice Ray, Spokane Community Colleges.

(Appropriations)  Representative Maria Cantwell, Chair, Trade & Economic Development Committee; and Representative Marilyn Rasmussen.

House Committee - Testified Against:      (Trade & Economic Development) No one.

(Appropriations) No one.

House Committee - Testimony For:    (Trade & Economic Development) A formalized application process for applying for state financial assistance for sports events and sports facilities would make it easier to approach the state for funding.

(Appropriations)  A coordinated approach should be undertaken to assess the economic impact and benefit to the state of sports events.  The proposed legislation would provide a method for assessing the merit of different proposals for state funding.

House Committee - Testimony Against:      (Trade & Economic Development) None.

(Appropriations) None.