SENATE BILL REPORT

                  SHB 1249

              As Reported By Senate Committee On:

             Government Operations, March 27, 1997

Title:  An act relating to state agencies issuing federal employer identification numbers.

Brief Description:  Streamlining registration and licensing of businesses.

Sponsors:  House Committee on Government Administration (originally sponsored by Representatives Dunn, Costa, Sheahan, Sterk, Lantz, Kenney, Lambert, Skinner, Gardner, D. Schmidt, D. Sommers, Ogden, O'Brien, Dunshee, B. Thomas, Wensman, Mason and Kessler; by request of Secretary of State).

Brief History:

Committee Activity:  Government Operations:  3/27/97 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators McCaslin, Chair; Hale, Vice Chair; Anderson, Haugen, Horn and Swanson.

Staff:  Diane Smith (786-7410)

Background:  The Business License Center, within the Department of Licensing, provides a single location where businesses may apply for a master license incorporating separate licenses issued by different state agencies.  The Business License Center is required to keep and distribute information about the separate licenses that may be incorporated into a master license.

Documents relating to corporations, including articles of incorporation, are filed with the Secretary of State=s Office.

The Department of Labor and Industries regulates and licenses a number of occupations, including electricians, and regulates and inspects a number of activities, such as the installation of mobile homes.

The Department of Employment Security administers the state=s unemployment compensation program and provides employment and training services.

The Department of Revenue assesses and collects various state taxes and adopts rules relating to those taxes.

Summary of Bill:  The director of the Department of Licensing is authorized to contract with the federal Internal Revenue Service and other appropriate federal agencies to issue conditional federal employer identification numbers and other federal credentials or documents in conjunction with any application for a master business license.  If authorized, the director of the Department of Licensing may contract with different state agencies or local governments that participate in the master business licensing program to issue these conditional federal employer identification numbers, credentials, and documents in conjunction with applications for maser business licenses.

The Secretary of State, director of the Department of Labor and Industries, commissioner of the Department of Employment Security, and director of the Department of Revenue are also authorized to contract with the federal Internal Revenue Service and other appropriate federal agencies to issue conditional federal employer identification numbers, credentials, and documents in conjunction with applications for maser business licenses.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 1997.

Testimony For:  This bill allows business to get into business faster by up to six weeks.  A pilot project providing this service has been very well received by the business community.

Testimony Against:  None.

Testified:  Linda Mackintosh, Office of Secretary of State (pro).