Senate Bill Report SB 5586

Summary

Senate Bill Report SB 5586, as of January 6, 2022, names Senator Frockt as sponsor and lists committee activity before the Senate Committee on Business, Financial Services & Trade on 1/11/22. The bill concerns the authority of the Community Economic Revitalization Board (CERB) and establishes an appropriated loan and grant program for financing broadband infrastructure projects. The report states that local governments and federally recognized tribes may apply to CERB for financing, that a project's purpose must be economic or community development, and that grants cannot make up more than 50 percent of the award. It lists the appropriation as none and the effective date as ninety days after adjournment of the session in which the bill is passed.

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Issuer: Congressional materials
Document type: Report
Date: 2022-01-11
Case: 2022 01 11 A29378 D236803 Bill Report 5586 Sba Bfst 22

Cite this document

“Senate Bill Report SB 5586.” Original at app.leg.wa.gov, dated 2022-01-11. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-11-2022-01-11-a29378-d236803-bill-report-5586-sba-bfst-22/, SHA-256 96f0cf949c0f1302fc0295dae2bb97161e361c6f5b4305a33d87558165469d69.

Full text

SENATE BILL REPORT
SB 5586

As of January 6, 2022

Title: An act relating to the authority of the community economic revitalization board with
respect to loans and grants to political subdivisions and federally recognized Indian tribes
for broadband.

Brief Description: Concerning the authority of the community economic revitalization board.

Sponsors: Senator Frockt.

Brief History:
Committee Activity: Business, Financial Services & Trade: 1/11/22.

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

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.

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 5586
Community Economic Revitalization Board Rural Broadband Program. In 2018, the
Legislature provided $10 million to CERB 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
2017–2019 appropriations. Most recently, the 2021 capital budget provided $25 million to
CERB to finance projects to provide high speed, open access broadband to rural and
underserved communities.

Besides the requirement that the project be in a rural and underserved community, the loan
is limited to $2 million 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; 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 and the deployment of a
publicly owned telecommunications infrastructure network, or backbone, solely for the sake
of creating a competitive, publicly owned telecommunications infrastructure network.

When evaluating and prioritizing each project, CERB must consider the following:
• value to the community, including evidence of support from affected local business
and government;
• feasibility;

Senate Bill Report -2- SB 5586
• commitment of local matching resources and participation;
• whether a technology-neutral approach is used to expand access at the lowest cost;
• inclusion in a capital facilities plan, comprehensive plan, or local economic
development plan consistent with applicable state planning requirements; and
• 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 4, 2022.

Creates Committee/Commission/Task Force that includes Legislative members: No.

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

Senate Bill Report -3- SB 5586

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Our copy: 2022-01-11_a29378_d236803_bill-report-5586-sba-bfst-22.pdf
Original: app.leg.wa.gov