HOUSE BILL REPORT

                      HB 1808

                     As Reported By House Committee on:

                        Trade & Economic Development

                               Appropriations

Title:  An act relating to child care facility fund.

Brief Description:  Pertaining to the child care facility fund.

Sponsor(s):  Representatives Wineberry, Miller, Wood, Belcher, Rasmussen, Forner, H. Myers, R. King, Silver, Leonard, Fraser, Winsley, Phillips and Mitchell; by request of Dept. of Trade and Economic Development.

Brief History:

   Reported by House Committee on:

Trade & Economic Development, March 1, 1991, DPS;

Appropriations, March 9, 1991, DPS(TED)-A.

HOUSE COMMITTEE ON

TRADE & ECONOMIC DEVELOPMENT

Majority Report: That Substitute House Bill No. 1808 be substituted therefor, and the substitute bill do pass.  Signed by 11 members:  Representatives Cantwell, Chair; Sheldon, Vice Chair; Forner, Ranking Minority Member; Betrozoff, Assistant Ranking Minority Member; Ferguson; Kremen; Ludwig; Moyer; Rasmussen; Riley; and Roland.

Staff:  Charlie Gavigan  (786-7340).

Background:  The Child Care Facility Fund was established in 1989.  The fund makes one-time loans, grants, or loan guarantees to individuals, businesses, and other organizations to start or expand a licensed child care facility.  The loans, grants, or loan guarantees cannot exceed $25,000.

The Child Care Facility Fund is administered by the Department of Trade and Economic Development's Business Assistance Center through a five member committee.

Summary of Substitute Bill:  The Child Care Facility Fund becomes a revolving loan fund.

Substitute Bill Compared to Original Bill:  Authorization to pay for administrative expenses from the Child Care Facility Fund is removed.

Fiscal Note:  Requested February 14, 1991.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This allows the loan repayments to be added to the fund and used without specific appropriations.  There are no funds currently in the department's budget for administrative expenses.

Testimony Against:  None.

Witnesses:  Representative Jesse Wineberry; David Dougherty, Department of Trade and Economic Development (supports); Beryl Cheal, Department of Trade and Economic Development (supports); Lonnie Johns Brown, National Organization for Women (supports); and Margie Reeves, Washington Association for Education of Children (supports).

HOUSE COMMITTEE ON

APPROPRIATIONS

Majority Report: The substitute bill by Committee on Trade & Economic Development be substituted therefor and the substitute bill as amended by Committee on Appropriations do pass.  Signed by 29 members:  Representatives Locke, Chair; Inslee, Vice Chair; Spanel, Vice Chair; Silver, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Appelwick; Belcher; Bowman; Braddock; Brekke; Dorn; Ebersole; Ferguson; Fuhrman; Hine; Holland; May; McLean; Mielke; Nealey; Peery; Pruitt; Rust; H. Sommers; Sprenkle; Valle; Vance; Wang; and Wineberry.

Staff:  Wayne Kawakami (786-7384).

Summary of Recommendation of Committee on Appropriations Compared to Recommendation of Committee on Trade & Economic Development:  The amendment allows employee organizations to apply for loans, grants, and loan guarantees, provided that the application is submitted jointly with the businesses or employers.

Fiscal Note:  Available.

Effective Date of Substitute Bill as Amended:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Current status of funds to businesses is five loans and three grants for a total of about $195,000.

Testimony Against:  None.

Witnesses:  Fred Ramirez, Department of Trade & Economic Development; and Cheal Beal, Department of Trade & Economic Development.