AN ACT Relating to small business; amending RCW 43.31.085, 43.175.010, 43.175.020, and 43.31.025; adding new sections to chapter 43.31 RCW; adding new sections to chapter 43.131 RCW; creating new sections; and repealing RCW 43.31.---, 43.31.085, 43.31.---, 43.31.---, 43.175.010, 43.175.020, 43.175.901, and 43.175.900.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The Washington state legislature finds that businesses are an integral part of the state's economy which promote economic development and are a primary source of employment opportunities for the state's citizens. The legislature further recognizes the ability of state government to assist businesses and especially small businesses by coordinating existing business programs and expanding effective business services.

NEW SECTION. Sec. 2. There is established within the department the business assistance center to assist businesses; to provide comprehensive referral services to businesses and especially small businesses on government assistance programs; and to cooperate with local associate development organizations in providing business assistance services.

Sec. 3. Section 11, chapter 466, Laws of 1985 and RCW 43.31.085 are each amended to read as follows:

The ((~~department shall create an office of small business and through the office of small~~)) business assistance center shall:

(1) Serve as ((an)) the state's lead agency and advocate for the development and conservation of ((~~small~~)) businesses ((~~and~~)).

(2) Coordinate the delivery of state programs to assist ((~~small~~)) businesses.

((~~(2)~~)) (3) Provide comprehensive referral services to businesses requiring government assistance.

(4) Serve as the ((~~small~~)) business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist ((~~small~~)) businesses.

(5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.

(6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.

(7) The business assistance center shall work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.

NEW SECTION. Sec. 4. The center shall report to the governor and the legislature annually outlining: The center's activities; the center's effectiveness and accomplishments; the degree of coordination between the center and other state programs assisting businesses; and recommendations on expanding or improving the center's services.

NEW SECTION. Sec. 5. There is established the business assistance center coordinating task force. The members of the task force shall be appointed by the governor from the appropriate state agencies providing business assistance services. The task force, in consultation with the small business improvement council and business organizations, shall assist and advise the department in the development of the initial work plan, goals, and objectives of the center. The task force will also facilitate and ensure interagency coordination regarding the business assistance center on a continuing basis.

Sec. 6. Section 7, chapter 282, Laws of 1984 as amended by section 62, chapter 466, Laws of 1985 and RCW 43.175.010 are each amended to read as follows:

(1) There is established the governor's small business improvement council to consist of at least fifteen but not more than thirty members, including one member of each caucus in the house of representatives and the senate, to be appointed by the governor. In making the appointments, the governor shall consider the recommendations of business organizations and persons operating small businesses((~~. At least fifteen percent of the members of the council shall be~~)), and provide for the representation of women or members of minority groups, and ((~~at least one member of the council shall represent~~)) agribusiness concerns. The governor shall appoint ex officio nonvoting members to the council from the various state agencies with business assistance services or responsibilities. Members of the governor's small business improvement council shall be appointed for terms of four years, but the governor may modify the terms of the initial members as necessary to achieve staggered terms.

(2) Members of the governor's small business improvement council shall ((~~not be compensated or~~)) be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060 subject to legislative appropriation.

(3) The ((~~department of trade and economic development or its successor agency~~)) office of the governor shall provide staff support and administrative assistance to the council.

Sec. 7. Section 8, chapter 282, Laws of 1984 as amended by section 63, chapter 466, Laws of 1985 and RCW 43.175.020 are each amended to read as follows:

The governor's small business improvement council shall seek to: Identify regulatory, administrative, and legislative proposals that will improve the entrepreneurial environment for small businesses; and advise and comment on state business programs and the business assistance center on program policies, and services to assist small businesses. In consultation with the ((~~department of trade and economic development~~)) business assistance center and the appropriate standing committees of the senate and house of representatives, the governor's small business improvement council shall submit its proposals and recommendations to the governor and the legislature prior to the convening of each regular session of the legislature.

Sec. 8. Section 3, chapter 466, Laws of 1985 and RCW 43.31.025 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise:

(1) "Department" means the department of trade and economic development.

(2) "Director" means the director of trade and economic development.

(3) "Office" means the ((~~office of small~~)) business assistance center within the department of trade and economic development.

(4) "Small business" means any business entity (including a sole proprietorship, corporation, partnership, or other legal entity) which is owned and operated independently from all other businesses, which has the purpose of making a profit, and which has fifty or fewer employees.

NEW SECTION. Sec. 9. The office of small business is hereby abolished and its powers, duties, and functions are hereby transferred to the business assistance center. All references to the office of small business in the Revised Code of Washington shall be construed to mean the business assistance center.

NEW SECTION. Sec. 10. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of small business shall be delivered to the custody of the business assistance center. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the office of small business shall be made available to the business assistance center. All funds, credits, or other assets held by the office of small business shall be assigned to the business assistance center.

Any appropriations made to the office of small business shall, on the effective date of this section, be transferred and credited to the business assistance center.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 11. All employees of the office of small business are transferred to the jurisdiction of the business assistance center. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the business assistance center to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 12. All rules and all pending business before the office of small business shall be continued and acted upon by the business assistance center. All existing contracts and obligations shall remain in full force and shall be performed by the business assistance center.

NEW SECTION. Sec. 13. The transfer of the powers, duties, functions, and personnel of the office of small business shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 14. If apportionments of budgeted funds are required because of the transfers directed by sections 10 through 13 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 15. Nothing contained in sections 9 through 14 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 16. A new section is added to chapter 43.131 RCW to read as follows:

The business assistance center and its powers and duties shall be terminated on June 30, 1992, as provided in section 17 of this act.

NEW SECTION. Sec. 17. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1993:

(1) Section 2, chapter ---, Laws of 1987 and RCW 43.31.--- (section 2 of this act);

(2) Section 11, chapter 466, Laws of 1985, section 3, chapter - --, Laws of 1987 and RCW 43.31.085;

(3) Section 4, chapter ---, Laws of 1987 and RCW 43.31.--- (section 4 of this act); and

(4) Section 5, chapter ---, Laws of 1987 and RCW 43.31.--- (section 5 of this act).

NEW SECTION. Sec. 18. A new section is added to chapter 43.131 RCW to read as follows:

The business improvements council and its powers and duties shall be terminated on June 30, 1992, as provided in section 19 of this act.

NEW SECTION. Sec. 19. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1993:

(1) Section 7, chapter 282, Laws of 1984, section 62, chapter 466, Laws of 1985, section 6, chapter ---, Laws of 1987 and RCW 43.175.010;

(2) Section 8, chapter 282, Laws of 1984, section 63, chapter 466, Laws of 1985, section 7, chapter ---, Laws of 1987 and RCW 43.175.020; and

(3) Section 17, chapter 282, Laws of 1984 and RCW 43.175.901.

NEW SECTION. Sec. 20. Section 13, chapter 282, Laws of 1984 and RCW 43.175.900 are each repealed.

NEW SECTION. Sec. 21. Sections 2, 4, and 5 of this act are each added to chapter 43.31 RCW.