Report - 2021 01 28 A28327 D225851 Bill Report 5175 Sbr Bfst Ta 21
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- Congressional materials
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- Report
- Date
- 2021-01-28
- Case
- 2021 01 28 A28327 D225851 Bill Report 5175 Sbr Bfst Ta 21
Summary
A Senate Bill Report on SB 5175, an act relating to the authority of the community economic revitalization board over broadband loans and grants to local governments and federally recognized Indian tribes, prepared as of January 21, 2021 for the Senate Committee on Business, Financial Services & Trade. The background describes the Community Economic Revitalization Board (CERB) and its Rural Broadband Program, including $10 million provided in 2018 and $3.45 million in the 2019-2021 capital budget. The summary of the bill describes an appropriated loan and grant program for broadband infrastructure, with grants capped at 50 percent of an award and criteria CERB must consider. The report lists Appropriation as none, notes a fiscal note requested on January 14, 2021, and summarizes supporting public testimony.
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“Report - 2021 01 28 A28327 D225851 Bill Report 5175 Sbr Bfst Ta 21.”
Original at app.leg.wa.gov, dated 2021-01-28. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-01-28-2021-01-28-a28327-d225851-bill-report-5175-sbr-bfst-ta-21/
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SENATE BILL REPORT
SB 5175
As of January 21, 2021
Title: An act relating to the authority of the community economic revitalization board with
respect to loans and grants to local governments and federally recognized Indian tribes for
broadband.
Brief Description: Concerning the authority of the community economic revitalization board.
Sponsors: Senators Nguyen, Wellman, Das, Hasegawa, Saldaña and Wilson, C..
Brief History:
Committee Activity: Business, Financial Services & Trade: 1/21/21.
Brief Summary of Bill
• Establishes an appropriated loan and grant program for financing
broadband infrastructure projects under the authority of the Community
Economic Revitalization Board.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Kellee Gunn (786-7429)
Background: Community Economic Revitalization Board. The Community Economic
Revitalization Board (CERB) was formed in 1982 to respond to local economic
development in Washington communities. CERB provides funding in the form of low-
interest loans and grants to local governments and federally recognized tribes for public
infrastructure projects supporting private sector development.
CERB consists of 20 members, four of which are state legislators, representing private and
public sectors from across the state. CERB sets policy and selects projects to receive
financing assistance. The Department of Commerce provides administrative support to
CERB.
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 5175
Community Economic Revitalization Board Rural Broadband Program. In 2018, the
Legislature provided CERB with $10 million to administer grants and loans for
infrastructure for high-speed, open-access broadband service with a minimum of 25
megabits per second download speed in rural and underserved counties and communities for
the purpose of economic development or community development. The following
biennium, the 2019-2021 capital budget provided $3.45 million to continue broadband
projects funded from the 2017–19 appropriations.
Besides the requirement that the project be located in a rural and underserved community,
the loan is limited to $2 million maximum per project. Grants are available up to 50 percent
of the total award, determined by the underwriting process and debt service coverage ratio.
Rural Broadband Program projects cannot result in retail development; gambling; job
displacement from one part of the state to another; be located outside the jurisdiction of the
applicant; for the deployment of publicly owned telecommunication network infrastructure
solely for its sake; or for certain equipment or facilities which the entity is not currently
authorized by statute to provide.
Summary of Bill: An appropriated loan and grant program is created under the authority
of CERB for financing broadband infrastructure projects.
Local governments and federally recognized tribes may apply to CERB for financing to
build infrastructure for high speed, open-access broadband service. To qualify for
financing, a project's purpose must be economic or community development. Each
application must be approved by the local government and supported by the local associate
development organization, the local workforce council, or by the governing body of the
federally recognized tribe before being considered. Grants cannot make up more than 50
percent of the award.
Approved projects for CERB's broadband infrastructure program must:
• drive job creation, promote innovation, and expand markets for local businesses; or
• serve the ongoing and growing needs of local education systems, public safety
systems, industries, businesses, government operations, and citizens.
Projects will not be approved if they promote or facilitate gambling.
When evaluating and prioritizing projects, CERB must give consideration to each project's:
• value to the community, including evidence of support from affected local business
and government;
• feasibility;
• commitment of local matching resources and participation;
• inclusion in a capital facilities plan, comprehensive plan, or local economic
development plan consistent with applicable state planning requirements; and
Senate Bill Report -2- SB 5175
• readiness to proceed.
Every local government and federally recognized tribe seeking financial assistance must
demonstrate that no other timely source of funding is available at similar cost.
Appropriation: None.
Fiscal Note: Requested on January 14, 2021.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: This codifies proviso language to give
CERB the authority to fund broadband projects. CERB has been doing economic
development for Washington State since the 1980s. This bill will allow CERB to help local
governments get broadband in a way that other agencies cannot. At the beginning of the
rural broadband program, the Port of Skagit worked with CERB to build fiber out to five
communities. The original project was going to serve over 300 homes but, with CERB's
help, it will now serve over 1000 homes. CERB funding has been critical and with their
help the Port of Skagit was able to accelerate broadband efforts by ten years.
The assistance of CERB gives certainty to the private sector for these projects. This
program brings broadband carriers onto the project earlier in the process than otherwise,
which gives applicants ability to leverage private resources sooner. CERB helps small
communities leverage federal funds. There is a huge demand across the state for
broadband. CERB's program is run by exceptionally qualified staff and its model works to
get projects up and going.
Persons Testifying: PRO: Senator Joe Nguyen, Prime Sponsor; Randy Hayden,
Community Economic Revitalization Board Chair, Port of Pasco; Michael Echanove,
Community Economic Revitalization Board Vice Chair; Sara Young, Port of Skagit;
Andrea Alexander, Tribal Tech Training T3; Joe Poire, Port of Whitman County.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -3- SB 5175
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