HOUSE BILL REPORT

ESB 5328

As Amended by the House

BYSenators Bluechel, Lee, Smitherman and Warnke; by request of Director of Trade and Economic Development

Revising provisions for the community economic revitalization board.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendment.  (12)

      Signed by Representatives Cantwell, Chair; Doty, Ranking Republican Member; G. Fisher, Kremen, Moyer, Rasmussen, Raiter, Rector, Schoon, Tate, Walk and Youngsman.

House Staff:Bill Lynch (786-7092)

AS OF HOUSE SECOND READING APRIL 12, 1989

BACKGROUND:

The Community Economic Revitalization Board (CERB) was established to provide incentives to business and industry in order to expand employment opportunities and promote economic development.  The board is authorized to award loans and grants to help finance construction of public works projects including sewers, water, access roads, bridges and improvements to state highways which are necessary in order to undertake private sector development.  The board is comprised of elected officials and private citizens appointed by the Governor.

Washington State cities, towns, counties, port districts and special purpose utility districts may apply for CERB funding.  The development projects that are eligible for funding include manufacturing, production, food processing, assembly, warehousing and distribution facilities or businesses that support the trading of goods and services outside the state's borders.  Project applications must include evidence that a private development or expansion is ready to occur and will only take place if CERB funds are provided.  In addition, applicants must demonstrate no other timely source of funds is available at reasonably similar rates.

A recent report of the Department of Trade and Economic Development's Tourism Industry Assessment Committee recommended that CERB be authorized to make loans or grants to tourism destination resorts.

SUMMARY:

The list of eligible development projects that may receive Committee Economic Revitalization Board (CERB) loans or grants is expanded to include destination tourist resorts.

Destination tourist resort is defined as a master planned tourism and recreation complex that:  is primarily used by nonresidents of the local area; contains lodging, eating and drinking establishments; and is generally located away from densely populated areas.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Senator Alan Bluechel; and Deborah Knutson, Department of Trade and Economic Development.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    People are interested in investing in destination tourist facilities in the state, but want to make sure that the state is willing to help fund some of the necessary public facilities associated with the projects.  This will help bring additional tourists to the state particularly to rural areas.  Tourism is one of the best ways to help rural economies.

House Committee - Testimony Against:      None Presented.