SENATE BILL REPORT

2SHB 1476

BYHouse Committee on Appropriations (originally sponsored by Representatives Basich, Doty, Spanel, Cantwell, Vekich, Kremen, Hargrove, Schoon, Sayan, Baugher, Inslee, Jesernig, Rasmussen, Rayburn, Walk, Jones, Rector, Raiter, Locke, Moyer, Youngsman, Walker, Winsley, Bowman, Brough, D. Sommers, Silver, Tate, Ferguson, Wineberry, P. King, Pruitt, Ebersole, Sprenkle, Morris and Todd)

Establishing the Washington marketplace program.

House Committe on Trade & Economic Development

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 27, 1989; March 28, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Murray, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Jack Brummel (786-7428)

                  March 28, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 28, 1989

BACKGROUND:

Many businesses lack market information regarding local sources of supplies.  Local suppliers are unable to bid on orders which are filled by out-of-state sources because they are unaware of these opportunities to supply local buyers.  Local suppliers often have lower transportation and storage costs and have better service and delivery times.

The Washington Marketplace program was authorized by the Legislature in 1988 through an appropriation to the Department of Trade and Economic Development.  The Washington Marketplace program is administered within the Business Assistance Center which contracts with local nonprofit organizations for the operation of the program.  The program is currently focused on distressed areas of the state, but the program is authorized to provide funds to local organizations in non-distressed areas so that they may provide technical assistance to programs in distressed areas.

Marketplace programs identify businesses within their communities which either purchase or plan to purchase supplies from sources outside the state.  Buyers who are interested in participating in the program provide the program with their product specifications.  The program, keeping the identity of the buyer confidential, then identifies in-state businesses who either produce the products specified or are capable of producing the products.  These suppliers are then notified of the opportunity to bid for the contract.  The buyer is presented with the bids and may choose any or none of the bidders.

The Washington Marketplace program will expire at the end of the 1987-88 biennium unless it is reauthorized.

SUMMARY:

The Washington Marketplace program is established within the Business Assistance Center of the Department of Trade and Economic Development.  The program is directed to place special emphasis on strengthening the economies of rural distressed areas.  The department is required to contract with at least four local nonprofit organizations located in distressed areas of the state.  The department may also enter into joint contracts with multiple nonprofit organizations in different locations to promote cooperation between urban and rural areas, but at least one of these nonprofit organizations must be located in a distressed area and no more than one nonprofit organization may be located in an urban area.

Contracts must be awarded on a competitive bid process with preference given to organizations with a broad spectrum of community support. Each location must contribute at least 20 percent local funding.  Contracts may include provisions for charging businesses that profit from the program a service fee.

Contracts must be for the performance of the following services:  contacting Washington businesses to identify goods and services purchased from out-of-state sources; identifying locally sold goods and services currently provided by out-of-state sources; determining goods and services which a business is willing to make contract agreements for; advertising market opportunities to in-state suppliers; and receiving bid responses from potential suppliers and sending them to a business for final selection.

The Business Assistance Center is also directed to prepare promotional materials or conduct seminars, provide technical assistance, and develop standardized procedures for operating the local component of the Washington Marketplace program.

The department is directed to report annually to the Senate Economic Development and Labor Committee and the House Trade and Economic Development Committee on the activities of the program.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: PRO:  Representative Doty, Representative Basich; David Daugherty, Monica Heilbron, Department of Trade and Economic Development; Robin Sherman, Skagit EDC; Elizabeth Fernando, Skagit Indian Foods