Washington Senate Bill Report HB 1982 (Feb. 12, 2024)

Summary

A Washington Senate Bill Report on HB 1982, as of February 12, 2024, from the Senate Committee on Business, Financial Services, Gaming & Trade, concerning the authority of the Community Economic Revitalization Board (CERB) to make broadband loans and grants to political subdivisions and federally recognized Indian tribes. It records that the bill passed the House 97-0 and gives background on CERB's rural broadband program, including $10 million provided in 2018 and a loan limit of $2 million per project. The report states that the bill authorizes CERB to make rural broadband loans and grants for economic or community development, lists factors CERB must consider when prioritizing projects, and sets out projects that may not receive assistance. It lists the appropriation as none.

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

Full text

                            SENATE BILL REPORT
                                  HB 1982

                                     As of February 12, 2024

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
     with respect to loans and grants to political subdivisions and federally recognized Indian
     tribes for broadband.

Sponsors: Representatives Waters, Shavers, Ryu, Couture, Ramos, McClintock, Callan,
    Cheney, Doglio, Sandlin, Paul, Harris, Berg, Tharinger, Riccelli and Santos.

Brief History: Passed House: 2/8/24, 97-0.
     Committee Activity: Business, Financial Services, Gaming & Trade: 2/15/24.


                                     Brief Summary of Bill
           • Authorizes the Community Economic Revitalization Board to make
             broadband loans and grants to governmental entities in rural and
             underserved areas for the purpose of economic or community
             development.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & 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.




     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-                                         HB 1982
     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.

     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. Since 2018 CERB has received a total
     of a little over $38 million in capital budget appropriations for these broadband projects,
     with most of the funding coming from federal funds.

     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.

     The 2018 capital budget program language established certain limitations on what the
     program could fund. It could not fund projects:
        • whose primary purpose is retail development or to facilitate gambling;
        • resulting in job displacement from one part of the state to another;
        • located outside the jurisdiction of the applicant;
        • the deployment of publicly owned telecommunication network infrastructure, or
           "backbone", solely for its sake; or
        • certain equipment or facilities which the entity is not currently authorized by statute
           to provide.

     Summary of Bill: CERB is authorized to make rural broadband loans and grants to local
     governments and to federally recognized Indian tribes in rural and underserved areas for the
     purpose of economic or community development.

     Applications for funding must be made in the form and manner determined by CERB. The
     board may provide financial assistance for projects located in a rural community, as defined
     by CERB, or located in a rural county, that encourage, foster, develop, and improve
     broadband within the state to:
        • drive job creation, promote innovation, and expand markets; or
        • serve the ongoing needs of the local education system, public safety system,
           industries and businesses, governmental operations, and citizens.

     When evaluating and prioritizing projects, CERB must consider:
       • the project's value to the community;
       • the project's feasibility;
       • commitment of local matching resources and participation;
       • use of a technology neutral approach to expand access at the lowest cost;
       • inclusion in a capital facilities plan, comprehensive plan, or local economic


Senate Bill Report                              -2-                                        HB 1982
           development plan consistent with state planning requirements; and
         • the project's readiness.

     All applications must be approved by the local government and supported by the local
     associate development organization or approved by the governing body of the federally
     recognized tribe. A reasonable official of the local government or the tribe must be present
     during CERB deliberations and provide information upon request. Before funding
     assistance may be approved, the local government or tribe must demonstrate that no other
     timely source of funding, at similar cost, is available.

     CERB may allow de minimis general system improvements to be funded if they are
     critically important to the viability of the project.

     No financial assistance shall go to:
        • a project whose primary purpose is to facilitate or promote retail shopping;
        • a project for the expansion or for the deployment of publicly owned
           telecommunications network infrastructure, or "backbone"; or
        • solely for the sake of creating a competitive, publicly owned telecommunications
           network infrastructure.

     Broadband is defined as a network of deployed telecommunications equipment and
     technologies necessary to provide high-speed internet access and other advanced
     telecommunications services.

     Appropriation: None.

     Fiscal Note: Available.

     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-                                        HB 1982


File and source

File

2024-02-15_a31917_d269719_bill-report-1982-sba-bfgt-24.pdf

Size

9,758 bytes

SHA-256

4c0bcb1a2e9c4635a9c1a710967e7dab8185f3f6c60400b2afd7087fdf6a3b22

Our copy

2024-02-15_a31917_d269719_bill-report-1982-sba-bfgt-24.pdf

Original

app.leg.wa.gov