SENATE BILL REPORT

SB 6642

BYSenators McMullen and Matson

Revising the Washington Marketplace Program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1990; February 2, 1990

Majority Report:     That Substitute Senate Bill No. 6642 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Jack L. Brummel (786-7428)

                February 2, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1990

BACKGROUND:

The Washington Marketplace Program has been in operation since 1988.  The program, targeted to distressed areas, is carried out at the local level through local projects.  It offers import replacement services, matching local suppliers with local businesses currently purchasing out of state, to increase local commerce and create jobs in distressed counties.  An expansion into urban markets by rural suppliers, anticipated in marketplace legislation passed last session, will require a reallocation of resources.

SUMMARY:

The original bill was not considered.

EFFECT OF PROPOSED SUBSTITUTE:

The number of nonprofit organizations which the Department of Trade and Economic Development is directed to contract with in carrying out the Washington Marketplace program is decreased from four to three.  Language regarding the requirements of contracts between the department and multiple nonprofit organizations is deleted.  The department will enter into contracts with economic development organizations to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas.  The requirement that local marketplace projects have 20 percent local funding is made optional at the discretion of the department.

Technical amendments are added, clarifying it is the products of Washington State firms for which new markets and purchasers within Washington State are identified.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested

Senate Committee - Testified:   Monica Heilbron, Department of Trade and Economic Development; Deanne Lahaie-Noll, Coastal Marketplace; Pam Brown, Lewis County EDC