HOUSE BILL REPORT

HB 1153

BYRepresentatives B. Williams,  Sanders, Schoon, Ferguson, Vekich, Amondson, Beck, Basich and Wineberry

Setting state policy guidelines for the promotion of and assistance to small business.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (18)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS PASSED HOUSE MARCH 16, 1987

BACKGROUND:

The legislature in its 1985 session created an Office of Small Business within the Department of Trade and Economic Development. The department was directed to serve as an advocate for the development and preservation of small business in the state, to coordinate the delivery of state programs to assist small businesses, and to advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs for small business.  No monies were provided to fund the office.

There are a substantial number of programs, offices, and agencies in state government which have been established to provide information and services to small business.  They include: the umbrella bond program administered by the Community Economic Revitalization Board; the Small Business Export Finance Assistance Center; the Development Loan Fund; the Community Development Finance program; the Main Street program; and the Small Business Development Center.  There is an even larger number of programs which provide services to all businesses but which may be utilized by small businesses.

SUMMARY:

The Department of Trade and Economic Development is directed through its Office of Small Business to provide a focus for state efforts concerned with small business assistance and promotion. The department shall be guided by policy concerns including: 1) creating new employment opportunities; 2) increasing the survival rate of new small businesses; 3) increasing the retention of existing businesses; 4) increasing the rate of small business creation; 5) maintaining a concern for small business in all regions of the state; 6) minimizing unnecessary regulation and paperwork for small business; 7) state regulatory policies which are service-oriented in their interaction with small business.

Fiscal Note:      Requested March 6, 1987.

House Committee ‑ Testified For:    Linda Matson, National Federation of Independent Businesses (NFIB); Gary Smith, Independent Business Association (IBA); Cliff Finch, Association of Washington Business; Mike Healey, Greater Seattle Chamber of Commerce.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is a need for a central place for small business to come to in state government.  Small business is the most important job creator in the state in recent years.  The state needs to show a commitment to small business, and this bill is one of a number which can help to demonstrate that commitment.  It would be helpful to have a state policy regarding small business which could serve to guide state action.

House Committee - Testimony Against:      None Presented.