HOUSE BILL REPORT

SSB 6222

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Anderson, Fleming, Conner and Smitherman)

Changing the powers and duties of the small business export finance assistance center.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments.  (16)

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

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 22, 1988

BACKGROUND:

The Export Assistance Center was established in 1983 to assist small and medium-sized businesses in acquiring information about export opportunities and in identifying sources of financing for export transactions.  The center was directed to assist small businesses in the financing of export transactions and to provide export information and assistance, including the use of export trading companies.  The center was permitted to utilize grants and contributions from the federal government and other sources to make loans to businesses to finance exports and to provide loans guarantees to finance exports.  The center was also permitted to enter into contracts with the Department of Commerce and Economic Development (now the Department of Trade and Economic Development) to provide export assistance services.

The center's authorizing legislation was amended in 1985.  Changes included: renaming the center the Small Business Export Finance Assistance Center; expanding the center's board (to 17 members appointed by the governor for 6- year terms); authorizing the center to provide export financial counseling to smaller Washington exporters; permitting the center to contract with the federal government to administer federally provided country risk insurance; directing the center to seek non-state funds for its continued operation; and permitting the center to accept grants and gifts from public and private sources.

The Department of Trade and Economic Development received $625,000 in the 1987 budget for contracts with the center.  $100,000 was to be to develop a coordinated outreach program for trade information services and export finance assistance.

SUMMARY:

BILL AS AMENDED:  The Small Business Export Finance Assistance Center is transferred to the Department of Trade and Economic Development.  The board which currently directs the operations of the Center is eliminated.  The duties and powers of the Center are expanded.  The Center is permitted to provide financial counseling to companies entering into joint ventures with firms from foreign countries that intend to locate in Washington state.  The Center is also permitted to contract with out-of-state agencies and firms to provide services authorized under its enabling statute if such services are funded by contracts rather than with public funds.

AMENDED BILL COMPARED TO SUBSTITUTE:  The Small Business Export Finance Assistance Center is transferred to the Department of Trade and Economic Development in the amended bill.  It remains an independent entity in the original bill.  The Center board, composed of 17 gubernatorial appointees, is eliminated in the amended bill.  Its operations are not affected in the original bill.

Fiscal Note:      Requested February 12, 1988.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.