Fiscal Note — 5229 S SB, Site Readiness Grants (Washington, Final 2/14/2023)

Summary

Fiscal note for 5229 S SB, Site readiness grants, consisting of a multiple agency fiscal note summary and an individual fiscal note for the Department of Commerce, Final 2/14/2023. The summary lists estimated cash receipts as NONE, and the Commerce note checks No Fiscal Impact and Requires new rule making. It describes Section 2 of the substitute bill as amending RCW 43.160.060 to add costs of achieving site readiness as an element of planning grants, removing the $50,000 limit, with planning grants not to exceed $200,000 after December 31, 2028. A local government fiscal note states that the program has averaged 17 applications per year since 2016.

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“Fiscal Note — 5229 S SB, Site Readiness Grants (Washington, Final 2/14/2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-10-a30910-d256201-5229-fn-6b760b7f50/, SHA-256 c40dfb194e4a8ef58a9d781880dc68fe56a2be86e85a3fba7e9b2762c0345ace.

Full text

Multiple Agency Fiscal Note Summary
Bill Number: 5229 S SB S-1276.2 Title: Site readiness grants

Estimated Cash Receipts
NONE

Agency Name 2023-25 2025-27 2027-29
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Operating Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Commerce

Total $ 0.0 0 0 0 0.0 0 0 0 0.0 0 0 0

Estimated Capital Budget Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce .0 0 0 .0 0 0 .0 0 0

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

Estimated Capital Budget Breakout

Prepared by: Myra Baldini, OFM Phone: Date Published:
(360) 688-8208 Final 2/14/2023

FNPID 66955
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note

Bill Number: 5229 S SB Title: Site readiness grants Agency: 103-Department of Commerce
S-1276.2

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: Kellee Gunn Phone: 786-7429 Date: 02/08/2023
Agency Preparation: Buck Lucas Phone: 360-725-3180 Date: 02/10/2023
Agency Approval: Jason Davidson Phone: 360-725-5080 Date: 02/10/2023
OFM Review: Myra Baldini Phone: (360) 688-8208 Date: 02/13/2023

Form FN (Rev 1/00) 182,658.00 Request # 189-600-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5229 S SB S-1276.2
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.

Differences between the original bill and the substitute bill:

Section 2 is revised to require Community Economic Revitalization Board (CERB) to define site readiness.

Section 3 is added reporting requirements pertaining to the number, value and percentage of awards that used minority and
women's, veterans and other not yet certified businesses as part of a CERB award.

The changes in this substitute bill would not create new costs for CERB.

Summary of the substitute bill:

Section 1 adds a new section providing legislative intent to ensure equitable recovery and provide business predictability
through promotion of site readiness grants and investing in predevelopment work that supports businesses choose
Washington.

Section 2 amends RCW 43.160.060 by adding “costs of achieving site readiness” as an element of planning grants within
the CERB existing program. It also removes the limit for planning grants from the current $50,000 limit. After December
31, 2028, planning grants may not exceed $200,000.

Section 3 amends RCW 43.160.900 for CERB reporting requirements to identify the biennial total number, percentage, and
dollar amount of projects' use of certified businesses by the Office of Minority and Women's Business Enterprises under
chapter 39.19 RCW, the Department of Veterans Affairs under chapter 43.60A RCW, and any businesses not yet certified
with these organizations but that self-report as meeting the requirements of certification. Biennial reports remain due on
December 31 of every even-numbered year.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.

II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.

There is no impact to the department. The addition of site readiness as an eligible activity of CERB planning grants is in
alignment with the existing programs administered by CERB and can be absorbed into CERB’s existing model at current
staffing levels. The addition of reporting requirements will require updates to CERB project close out reports and additional
tracking within the CERB project database, and can also be absorbed into current staffing levels.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE

Site readiness grants 103-Department of Commerce
Form FN (Rev 1/00) 182,658.00 Request # 189-600-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5229 S SB S-1276.2
III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE

III. D - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.

NONE
There is no impact to the department. Increasing the maximum allowable planning grants from $50,000 would allow CERB
to finance larger planning projects, including new site readiness plans, which fits within CERB's existing project development
business model.

The impact of the proposed legislation on the number of planning awards is unclear and subject to the availability of amounts
appropriated for CERB and the level of funding requested within communities’ applications. Specifically, an increased
appropriation will result in increased CERB awards, and the removal of the $50,000 planning cap may result in an increase
in the size of a planning award. From a sample of 12 counties from 2016 to 2022, CERB has awarded 48 planning grants at
an average size of $46,800 with nearly 80% being funded at the current statutory cap of $50,000.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

CERB has rule-making authority within current statute if rule-making becomes necessary.

Site readiness grants 103-Department of Commerce
Form FN (Rev 1/00) 182,658.00 Request # 189-600-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5229 S SB S-1276.2
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce

Bill Number: 5229 S SB Title: Site readiness grants
S-1276.2

Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:
X Specific jurisdictions only: Rural communities defined by the board and rural counties determined by OFM
Variance occurs due to:

Part II: Estimates
No fiscal impacts.

Expenditures represent one-time costs:

Legislation provides local option:

X Key variables cannot be estimated with certainty at this time: The amount of site readiness costs by project.

Estimated revenue impacts to:

Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated expenditure impacts to:
None

Part III: Preparation and Approval
Fiscal Note Analyst: Kristine Williams Phone: (564) 669-3002 Date: 02/13/2023
Leg. Committee Contact: Kellee Gunn Phone: 786-7429 Date: 02/08/2023
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 02/13/2023
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 02/14/2023
Page 1 of 2 Bill Number: 5229 S SB S-1276.2
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
CHANGES BETWEEN THIS VERSION AND PREVIOUS BILL VERSION: These changes do not create any fiscal
impacts for local governments.

SUMMARY OF CURRENT BILL: The current bill amends 43.160.900 to direct the community economic revitalization
board (CERB) to provide a definition of “achieving site readiness” for the purposes of subsection (2)(b)(iii).

Sec.3 amends 43.160.900 RCW to require the CERB board to conduct biennial evaluations that include recommendations
for additional performance measures or programmatic changes. These evaluations are due to the appropriate legislative
committees on or before December 31st of each even-numbered year.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.

CHANGES IN EXPENDITURE IMPACTS BETWEEN THIS VERSION AND PREVIOUS BILL VERSION:
The substitute version of this bill does not change the impact this bill would have on local governments, which is no impact.

Local governments would be eligible to apply to the community economic revitalization board (CERB) for a grant to pay
for the site-specific costs of achieving site readiness. CERB does not administer competitive grant programs. Board staff
provide applicants direct technical and project development assistance during the application process.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.

The substitute version of this bill does not change the indeterminate impact on local government revenues.

The type and amount of site readiness expenses will vary depending on each project. While the CERB program has
averaged 17 applications per year since 2016, there is no information available to predict the amount of site readiness
costs local governments would apply for. This legislation will impose a limit of $200,000 per grant award beginning
January 1, 2029.

SOURCES:
Community Economic Revitalization Board
Local Government Fiscal Note SB 5229 (2023)

Page 2 of 2 Bill Number: 5229 S SB S-1276.2
FNS060 Local Government Fiscal Note

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