HOUSE BILL REPORT

                 2SSB 6107

             As Reported By House Committee On:

                    Environmental Affairs

                       Appropriations

Title:  An act relating to fees for services for the department of community, trade, and economic development.

Brief Description:  Allowing fees for services for the department of community, trade, and economic development.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Skratek, Sheldon and M. Rasmussen).

Brief History:

  Reported by House Committee on:

Environmental Affairs, February 24, 1994, DPA;

Appropriations, February 28, 1994, DPA(ENA).

HOUSE COMMITTEE ON ENVIRONMENTAL AFFAIRS

Majority Report:  Do pass as amended.  Signed by 14 members:  Representatives Rust, Chair; Flemming, Vice Chair; Horn, Ranking Minority Member; Van Luven, Assistant Ranking Minority Member; Bray; Edmondson; Foreman; Hansen; Holm; L. Johnson; J. Kohl; Linville; Roland and Sheahan.

Staff:  Rick Anderson (786-7114).

Background:  Without specific statutory authorization to expend fees collected for its services or products, an agency must turn the funds over to the treasurer's office for deposit in the general fund.

The Clean Washington Center is within the Department of Community, Trade, and Economic Development and provides assistance to businesses in creating markets for recyclable materials.

The Pacific Northwest Export Assistance Project was created by the Legislature in 1991 to provide export assistance to manufacturers with gross revenues less than $25 million per year.  The project is administered by the Small Business Export Finance Assistance Center which is under contract with the Department of Community, Trade, and Economic Development.

Summary of Amended Bill:  The Department of Community, Trade, and Economic Development, the Clean Washington Center, and the Pacific Northwest Export Assistance Project are each authorized to charge reasonable fees for services and products provided and to expend the fees for the purposes for which they were collected.  All fees must be established by rule and are appropriated by the Legislature.

The Department of Community, Trade, and Economic Development is authorized to charge fees for conferences, workshops, and training programs.  The department is also authorized to charge fees for products and services provided in the areas of financial assistance, housing, international trade, community assistance and economic development.  The Office of Financial Management must approve a schedule of fees for products and services to be charged by the department, and the approved schedule of fees must be submitted to legislative committees before December 1, 1994.

Amended Bill Compared to Second Substitute Bill:  The amended bill makes all the fees subject to legislative appropriation.  2SSB 6107 required legislative appropriation only for fees relating to conferences, workshops, and training programs.

Fiscal Note:  Available on original bill.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed, except section 7 which contains an emergency clause and takes effect March 1, 1994.

Testimony For:  Fee authority is appropriate because the department provides many services that benefit specific businesses and because the legislature has reduced appropriations to the department in anticipation of fees being charged by the department.

Testimony Against:  None.

Witnesses:  Jean Ameluxen, Department of Community Development and Department of Trade & Economic Development (pro); and Susan Bogert, Department of Trade & Economic Development and Clean Washington Center (pro).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass as amended by Committee on Environmental Affairs.  Signed by 26 members:  Representatives Sommers, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dellwo; Dorn; Dunshee; G. Fisher; Foreman; Jacobsen; Lemmon; Leonard; Linville; H. Myers; Peery; Rust; Sehlin; Sheahan; Stevens; Talcott; Wang and Wolfe.

Staff:  Susan Nakagawa (786-7145).

Summary of Recommendation of Committee on Appropriations Compared to Recommendation of Committee on Environmental Affairs:  No new changes were recommended.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed, except section 7 which contains an emergency clause and takes effect March 1, 1994.

Testimony For:  This bill is necessary to enable the department to charge fees.  The fee setting process will afford a great deal of review by the executive and legislative branches.

Testimony Against:  None.

Witnesses:  Jean Ameluxen, Department of Community Development and Department of Trade & Economic Development (pro).