FINAL BILL REPORT

SSB 5723

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Senate Committee on Economic Development, Trade & Innovation

House Committee on Community & Economic Development & Trade

House Committee on Ways & Means

Background: The Washington Small Business Development Center (SBDC) provides assistance, training, and support services to small businesses and entrepreneurs. The SBDC currently operates with federal funds and some state funds. The SBDC charges a nominal fee for a few training services.

Washington's Community Credit Needs Act, patterned after the federal Community Reinvestment Act (CRA), is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate. Under both laws, a depository institution's record in helping meet the credit needs of its entire community is evaluated periodically based on the institution's filed statements. CRA examinations are conducted by the federal agencies that are responsible for supervising depository institutions. For state chartered banks, state law sets forth 11 specific criteria, independent of any federal determination, for the Director of the Department of Financial Institutions to use in assessing a bank's record of performance in meeting community credit needs.

Most businesses subject to state excise taxes must apply for and obtain a registration certificate. About 80,000 new businesses obtain a registration certificate each year.

Summary: The SBDC will work with specified state and local economic and workforce development organizations to integrate, target, coordinate, and tailor its services and to establish and expand satellite offices when financially feasible. The SBDC is directed to request approval from the U.S. Small Business Administration for a special emphasis initiative to target assistance to the state's smaller businesses. The SBDC is required to submit a written final report on December 1, 2010, on accomplishments and outcomes of the act's directives.

For state chartered banks, contributions to local or statewide business assistance organizations must be considered in assessing the bank's performance in meeting community credit needs.

State agency solicitations of purchased goods and services, personal services, information services, and printing services must be posted on the state's common vendor registration and bid notification system. The state's central services agencies are to develop procurement policies and procedures which encourage and facilitate state agency purchases of products and services from small businesses in Washington.

The Business Assistance Account is created in the state treasury to be used for the expansion of business assistance services delivered by the SBDC.

Votes on Final Passage:

Senate	39	3
House	95	2	(House amended)
Senate	49	0	(Senate concurred)