HOUSE BILL REPORT
SSB 5530
As Amended by the House
BYSenate Committee on Commerce & Labor (originally sponsored by Senator Fleming)
Expanding the duties of the office of small business.
House Committe on Trade & Economic Development
Majority Report: Do pass with amendments. (18)
Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Belcher, Braddock, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.
Minority Report: Do not pass. (1)
Signed by Representative Beck.
House Staff:Stephen Hodes (786-7092)
AS PASSED HOUSE APRIL 16, 1987
BACKGROUND:
The legislature has created a number of economic development programs in recent years which have provide assistance to small businesses in the state. As the number and variety of these programs has grown, coordinating the administration of programs has become a serious concern. The importance of providing effective access to the programs to small businesses has become widely recognized.
The Legislative Committee on Economic Development conducted a program profile and evaluation study in 1986 of the major economic development programs operated by state government. The report recommended that state business assistance programs place greater emphasis on cooperation and coordination of activities. Other recommendations include:
o development of a one-stop approach to business assistance;
o establishment of a system of referral and cooperation for business assistance;
o increasing public and business awareness of existing services available to businesses in the state.
There are a variety of state economic development programs that currently provide services targeted to small businesses. Among these programs are: the Small Business Development Center; the Business Assistance Hotline; the small business ombudsman; the umbrella bond program administered by the Community Economic Revitalization Board (CERB); the Development Loan Fund; and the Community Development Finance program. These programs are operated in different state agencies, each of which also has numerous other program responsibilities.
The legislature created the Economic Development Board in the 1985 session to provide a focus for long-term economic development planning efforts. The board's was directed to examine methods for increasing the effectiveness and coordination of existing state and local economic development programs and agencies.
The Office of Small Business in the Department of Trade and Economic Development was established in 1985. The office was authorized to serve as an advocate for the development of small businesses, to act as an ombudsman for small business within state government, and to advise the governor and legislature on small business issues. The office was not funded by the legislature, but the Small Business Ombudsman and Business Assistance Hotline programs are currently managed by the department.
The Small Business Improvement Council was established in 1984 to review small business assistance programs in the state, to determine their degree of coordination, to provide recommendations in order to reduce program duplication, and to increase the efficiency of the programs. The council reported its initial findings to the legislature and governor in early 1985.
SUMMARY:
The Office of Small Business in the Department of Trade and Economic Development is abolished and the Business Assistance Center is created. The center is the successor agency to the office, the powers, duties, staff and functions of which are transferred to the center. The center is directed to:
o serve as the state's lead agency regarding business;
o coordinate the delivery of state business assistance programs;
o provide comprehensive referral services to businesses requiring governmental assistance;
o aggressively promote awareness of and distribute information on the state's business programs to the business community;
o develop coordinated means of complementing state and local programs with local economic development and business assistance organizations;
o work with federal, state, and local agencies and organizations to ensure that business services including small business, traded services, and distressed area programs are provided in a cost-effective and coordinated way.
The Business Assistance Center is directed to annually report to the governor and the legislature on the center's activities and effectiveness, the degree of coordination achieved between the center and other state business assistance programs, and recommendations on expanding or improving the center's services.
The Business Assistance Center Coordinating Task Force is created. Members are appointed by the governor from state agencies providing business assistance. The task force shall assist the Department of Trade and Economic Development in the development of the initial work plan, goals and objectives of the Business Assistance Center and shall ensure inter-agency coordination regarding the center on a continuing basis. The task force shall consult with the Governor's Small Business Improvement Council and with business organizations in the performance of these tasks.
The existing Small Business Improvement Council is renamed the Governor's Small Business Improvement Council. Four legislative members are added to the council. The governor is directed to appoint ex officio non-voting members to the council from state agencies with business assistance responsibilities. The council is authorized to provide advice on state business programs including the Business Assistance Center on programs, policies, and services to assist small businesses.
The Business Assistance Center and the Governor's Small Business Improvement Council are subject to sunset review and are scheduled to terminate June 30, 1992.
Fiscal Note: Attached.
House Committee ‑ Testified For: Senator Fleming; Jim Bricker, Office of Financial Management; Carol Viperman, Small Business Improvement Council (SBIC); Rose Bowman, Krushy Auto; Jeff Cashman, IPC Pension Services; Larry Stanley, Empire Bolt and Screw; and Phyllis Lamphere, Seattle-King County Economic Development Council.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: Value of having a single office coordinate assistance to small business. Center would make services visible to small businesses. Changes to SBI council would provide a revitalized direct advisory group to the governor. council provides grass roots input to state programs for business assistance.
House Committee - Testimony Against: None Presented.