SENATE BILL REPORT

SB 6547

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.

As of January 31, 2012

Title: An act relating to the microenterprise development program.

Brief Description: Regarding the microenterprise development program.

Sponsors: Senators Pridemore and Shin; by request of Washington State Department of Commerce.

Brief History:

Committee Activity: Economic Development, Trade & Innovation: 2/01/12.

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE & INNOVATION

Staff: Jack Brummel (786-7428)

Background: The Department of Commerce (Commerce) administers the Microenterprise Development Program established in 2007. Under the terms of the statute creating the program, Commerce is to provide organizational support to a statewide microenterprise association and contract with it for the delivery of:

Commerce is also to identify other sources of funds for microenterprise development and develop criteria for the distribution of grants. The statewide Microenterprise Assistance Association may use no greater than 10 percent of state funds to cover administrative expenses and must provide the department with an annual accounting and report on outcomes.

Commerce provided organizational support for three years but, as budget cuts were implemented, cut funding for that support rather than making larger cuts to the funds available for grants. The Joint Legislative Audit and Review Committee issued an evaluative report on January 11, 2012, which recommended that Commerce comply with the statute and provide organizational support to the Washington State Microenterprise Association.

Summary of Bill: The requirement that Commerce provide organizational support to a statewide microenterprise association is removed.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.