Senate Bill Report SB 5770 — Washington State Convention Economy Grants (January 18, 2022)

Summary

This Senate Bill Report on SB 5770, as of January 18, 2022, concerns providing Washington state convention economy grants, with Senators Mullet and Frockt as sponsors by request of Secretary of State. The Brief Summary says the bill creates a $5 million COVID-19 grant program to assist Washington State businesses dependent on economic activity created through conventions, for businesses that have gross annual receipts of $100 million or less, and sets the maximum award per grant at $500,000. In the Summary of Bill (Proposed Substitute), the Department of Commerce is directed to create the grant program. The report lists an appropriation totaling $5,000,000 from the coronavirus state fiscal recovery fund and gives Fiscal Note as requested on January 11, 2022.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer: Congressional materials
Document type: Report
Date: 2022-01-20
Case: 2022 01 20 A29484 D238032 Bill Report 5770 Sba Bfst 22

Cite this document

“Senate Bill Report SB 5770 — Washington State Convention Economy Grants (January 18, 2022).” Original at app.leg.wa.gov, dated 2022-01-20. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-20-2022-01-20-a29484-d238032-bill-report-5770-sba-bfst-22/, SHA-256 847a672450ee74b362f174484b0a28c28cf8d9cd52501ef6a747cd792f35cc91.

Full text

SENATE BILL REPORT
SB 5770

As of January 18, 2022

Title: An act relating to providing Washington state convention economy grants.

Brief Description: Providing Washington state convention economy grants.

Sponsors: Senators Mullet and Frockt; by request of Secretary of State.

Brief History:
Committee Activity: Business, Financial Services & Trade: 1/20/22.

Brief Summary of Bill
• Creates a $5 million COVID-19 grant program to assist Washington
State businesses dependent on economic activity created through
conventions for businesses that have gross annual receipts of $100
million or less.
• Sets the maximum award per grant at $500,000.

SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

Staff: Clinton McCarthy (786-7319)

Background: In response to the pandemic, the federal government created the $953 billion
Paycheck Protection Program (PPP) loans, which was a Small Business Administration-
backed loan intended to help businesses keep their workforce employed during the COVID-
19 crisis. The PPP allowed entities to apply for low-interest private loans to pay for their
payroll and certain other costs. The amount of a PPP loan was approximately equal to 2.5
times the applicant's average monthly payroll costs. In some cases, an applicant may have
received a second draw equal to the first. The loan proceeds could be used to cover payroll
costs, rent, interest, and utilities.

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 5770
The American Rescue plan extended a number of tax benefits, such as the Employee
Retention Credit and the Paid Leave credit to small businesses. The emergency capital
investment program supports the efforts of low and moderate-income community financial
institutions.

In Washington State, the Legislature passed ESHB 1368, which appropriated $240 million
for business assistance grants. There was $150 million provided to assist businesses
maintain their business operations, and $90 million was provided to assist the reopening of
businesses. Eligible businesses had to have reported annual gross receipts of $5 million or
less, and the maximum award was for $75,000.

The U.S. convention industry lost billions of dollars in revenue as businesses restricted
employee travel and governmental entities banned large gatherings during the pandemic.
According to the Center for Exhibition Industry Research, the industry lost an estimated $22
billion when including direct spending by exhibitors and attendees.

The Seattle Convention Center canceled 77 events between 2020 and 2022 according to the
Washington State Convention Center Public Facilities District 2020 Annual Report. The
estimated impact from these canceled events include:
• 323,045 less attendees;
• 482,636 fewer hotel rooms booked; and
• $528.6 million lost in economic impact to the region.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Proposed Substitute): The Department of Commerce (Commerce) is
directed to create a COVID-19 grant program to assist Washington State businesses
dependent on the economic activity created through conventions hosted in-state in order to
maintain operations.

Eligibility. To receive a grant, a business or non-profit must:
• apply for a grant;
• have gross receipts of less than $100 million in revenue for calendar year 2019;
• have expenses that are necessary to conduct business operations;
• self-attest the expense is not funded by any other entity; and
• have experienced a loss in income due to COVID-19.

Businesses must have either hosted a convention in Washington or provided support
services to conventions in Washington.

Awards. Eligible businesses may receive a maximum of $500,000 grant for revenue lost
due to a cancellation or a reduction of participants in a convention hosted in Washington
State in 2020 or 2021. Businesses must provide Commerce with financial records that can
provide a basis for lost revenue. The grant shall equal the lost revenue between 2019 and

Senate Bill Report -2- SB 5770
2020, less grants or loans from federal and state government programs and is not to exceed
$500,000.

Appropriation. Five million dollars are appropriated from the Coronavirus State Recovery
Fund —state appropriation, to Commerce to fund the grant program.

Appropriation: The bill contains an appropriation totaling $5,000,000 from coronavirus
state fiscal recovery fund-state appropriation.

Fiscal Note: Requested on January 11, 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 5770

File and source

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Our copy: 2022-01-20_a29484_d238032_bill-report-5770-sba-bfst-22.pdf
Original: app.leg.wa.gov