SENATE BILL REPORT

                           ESSB 5911

               AS PASSED SENATE, MARCH 15, 1993

Brief Description:  Promoting economic development.

SPONSORS: Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Cantu, Skratek, Bluechel and Winsley)

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  That Substitute Senate Bill No. 5911 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Midori Okazaki (786‑7444)

Hearing Dates: February 26, 1993; March 2, 1993

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

BACKGROUND:

The Pacific Northwest Export Assistance Program (PNEAP), a branch of the Small Business Export Finance Assistance Center, was created by the Legislature in 1991 as part of the omnibus timber bill.  At least 50 percent of PNEAP's new cadres of clients each year must be from timber impact areas, and 90 percent should be businesses with gross revenues of less than $5 million.  Increased flexibility in these requirements may better allow PNEAP to serve areas which are not currently experiencing economic distress, but which are likely to experience distress due to other natural resource issues or defense budget reductions. 

SUMMARY:

Fifty percent of PNEAP's new clients should be very small business clients (gross revenues of less than $5 million).

The Small Business Export Assistance Finance Center is authorized to provide services, if requested, to other Pacific Northwest states and provinces.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

Nationally regarded economic development experts have cited PNEAP as a model for the entire country, and local economic development practitioners support this program.  More non-timber impact should have greater access to this program.  Removing the required focus on timber impact communities will enable the program to respond quickly economic downturns that may be caused, for example, by other natural resource issues or defense spending cuts.

TESTIMONY AGAINST:  None

TESTIFIED:  Senator Emilio Cantu; Ken Keach, Export Assistance Center; Pam Brown, Lewis County EDC

HOUSE AMENDMENT(S):

Seventy-five percent of PNEAP's new clients should be very small business clients (gross revenues of less than $5 million).