Report - 2024 02 20 A31985 D270715 Bill Report 1982 Sbr Bfgt Ta 24
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- Congressional materials
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- Report
- Date
- 2024-02-20
- Case
- 2024 02 20 A31985 D270715 Bill Report 1982 Sbr Bfgt Ta 24
Summary
A Senate Bill Report on HB 1982, as of February 15, 2024, prepared by non-partisan staff of the Senate Committee on Business, Financial Services, Gaming & Trade. The bill concerns the authority of the Community Economic Revitalization Board (CERB) to make broadband loans and grants to political subdivisions and federally recognized Indian tribes in rural and underserved areas; it passed the House on 2/8/24, 97-0. The background states that the Legislature provided $10 million to CERB in 2018 for broadband infrastructure and that CERB has since received a little over $38 million, with loans limited to $2 million per project. The report sets out the project criteria CERB must consider and the projects barred from assistance, and summarizes supporting public testimony stating that the bill codifies the current program.
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Cite this document
“Report - 2024 02 20 A31985 D270715 Bill Report 1982 Sbr Bfgt Ta 24.”
Original at app.leg.wa.gov, dated 2024-02-20. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-02-20-2024-02-20-a31985-d270715-bill-report-1982-sbr-bfgt-ta-24/
, SHA-256 55c9a6a99f13edd41eb076f256efea6b6c2051d063b0da37eebcaccdee1cd1ee.Full text
SENATE BILL REPORT
HB 1982
As of February 15, 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.
Staff Summary of Public Testimony: PRO: I am from a rural county, Skamania, and
CERB is an integral part of economic development for my local community. This bill
codifies what CERB is already doing, investing in broadband with local governments and
tribes. CERB supports this bill. In 2018, CERB was given the authority to run a loan and
grant program for broadband projects across the state. CERB has invested millions of
dollars in projects. In addition, CERB tracks the projects for 5 years after completion,
tracking job and private investment data as a direct result of the CERB investment. We have
firsthand experience with how difficult it is for these local government entities and tribes to
take on federal grants and run these projects. The bill will make CERB's rural broadband
program permanent. The state has goals to make everyone connected by 2028. CERB will
help make this happen. Not every project is eligible for Broadband Equity, Access, and
Deployment (BEAD) Program funding, and CERB can help with that.
Senate Bill Report -3- HB 1982
Our Port has benefited from CERB's programs, and especially this broadband program.
Prior to broadband, we had only wireless, unmaintained century link DSL, and service from
a privately owned cable company that overnight closed. Because of this program, our Port
has been able to bring broadband access to Dayton and outlying areas. This project finished
December 21st. And since then, over half of the people in this community have already
signed up for this. The Port owns this system, so it will not be suddenly shut down in the
middle of the night. Before this, we had an annually operating budget of $1 million. We
now have a larger operating budget, of at least 10 percent, because of this CERB broadband
program.
There is no additional funding or staffing with this bill. This will codify the current
program, and provides an option for communities that do not qualify for BEAD funding.
Persons Testifying: PRO: Representative Kevin Waters, Prime Sponsor; Jennie Dickinson,
Port of Columbia; DAvid Ripp, Port of Camas-Washougal; Ariane Schmidt, Broadlinc;
Wendy Smith, Port of Shelton / Community Economic Revitatlization Board (CERB);
Janea Stark, CERB - Community Economic Revitalization Board; Mike Mason, CERB -
Community Economic Revitalization Board.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -4- HB 1982
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- app.leg.wa.gov