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House Bill Analysis — HB 1806, Exclave Community Small Business Relief Program (Office of Program Research)

Summary

House Bill Analysis of HB 1806, prepared by the Washington State House of Representatives Office of Program Research for the Innovation, Community & Economic Development, & Veterans Committee, with a hearing date of 2/14/23. The brief description is creating an exclave community small business relief program, and the sponsors are Representatives Rule, Chapman and Timmons. The brief summary states that the bill requires the Department of Commerce to implement a program providing resources to exclave communities that have sustained economic loss due to the closure of the international border between the United States and Canada. The analysis lists Appropriation: None and a fiscal note requested on February 8, 2023.

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“House Bill Analysis — HB 1806, Exclave Community Small Business Relief Program (Office of Program Research).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-02-14-a30789-d253408-bill-analysis-aa60f02fdc/, SHA-256 562c66d7628b122a2bd86570ac8c10818202578259ac418552c6ea0f8f8f5b6b.

Full text

Washington State                  BILL
House of Representatives
Office of Program Research   ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
                                        HB 1806
Brief Description: Creating an exclave community small business relief program.

Sponsors: Representatives Rule, Chapman and Timmons.


                                     Brief Summary of Bill
          • Requires the Department of Commerce to implement an exclave
            community small business relief program to provide resources to exclave
            communities that have sustained economic loss due to the closure of the
            international border between the United States and Canada.


Hearing Date: 2/14/23

Staff: Cassie Jones (786-7303).

Background:

In general, an exclave is a portion of a country that is geographically separated from the main
part by surrounding foreign territory. Washington's one exclave community, Point Roberts, is
five square miles of territory located below the 49th parallel and is separated from Washington
by British Columbia, Canada.

Summary of Bill:

Subject to the availability of amounts appropriated for this specific purpose, the Department of
Commerce (Commerce) must develop and implement an exclave community small business
relief program for the purpose of providing resources to exclave communities that have sustained
economic loss due to the closure of the international border between the United States and



     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.

House Bill Analysis                             -1-                                         HB 1806
Canada. Under the program, Commerce may provide grants to eligible businesses. Grant funds
may be used for payroll, utilities and rent, marketing and advertising, and other operations and
business expenses. Grant funds may not be used for expenses incurred outside the exclave
community.

To be eligible to apply for a grant, a business must provide documentation of:
   • the business's location in an exclave community and proof that the business does not
      operate more than 10 locations; and
   • good faith certification of need, including a certification that the border closure either
      reduced gross receipts of the business by at least 25 percent or restricted the ability of
      customers to access the location of the business.

Commerce must make assistance available for an eligible business within 3 months of receiving
an application. In the event that the amounts appropriated for the exclave community small
business relief program are not sufficient to provide full grants to all eligible applicants that
apply by October 1, 2023, Commerce must provide grants to all eligible applicants that submit
applications on either a prorated basis, by establishing a maximum grant amount that ensures that
all smaller eligible applicants receive full awards, or by setting an award threshold beneath
which the agency will make full grants and above which grants will be prorated.

Commerce must coordinate with local economic development entities in conducting outreach to
small businesses to increase awareness and understanding of the grant program. "Exclave
community" is defined as a community in the United States within 75 miles of the Canadian
border that is only accessible by land via Canada. Commerce may make rules to implement the
grant program.

Appropriation: None.

Fiscal Note: Requested on February 8, 2023.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                              -2-                                         HB 1806


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