FINAL BILL REPORT

SSB 5530

                                  C 348 L 87

BYSenate Committee on Commerce & Labor (originally sponsored by Senator Fleming)

Expanding the duties of the office of small business.

Senate Committee on Commerce & Labor and Committee on Ways & Means

House Committe on Trade & Economic Development

SYNOPSIS AS ENACTED

BACKGROUND:

The Small Business Improvement Council was established in 1984 to review small business assistance programs in the state; determine their degree of coordination; provide recommendations to reduce duplication; and increase program efficiency.  The Council provided a report to the Legislature and Governor in 1985.

Currently, the Office of Small Business within the Department of Trade and Economic Development is authorized to:  serve as an advocate for the development of small businesses; act as an ombudsman for small business within state government; and advise the Governor and Legislature on small business issues.

During the 1986 interim, the Legislative Committee on Economic Development conducted a program profile and evaluation study of the state's major economic development programs.  The report recommended that state business assistance programs place greater emphasis on cooperation and coordination of activities; develop a one-stop shop approach to assist businesses; increase public awareness of existing services available; and establish a council or committee to provide ongoing analysis and strategic planning on small and medium-sized business issues.

SUMMARY:

The Office of Small Business within the Department of Trade and Economic Development is renamed the Business Assistance Center.  The Center is directed to:  serve as the state's lead agency and advocate for the development and conservation of businesses; coordinate the delivery of state programs to assist businesses in cooperation with local development organizations; provide comprehensive referral services to businesses requiring government assistance; serve as the business ombudsman within state government; advise the Governor and Legislature of the need for new legislation to improve the effectiveness of state programs; aggressively promote business awareness of the state's business assistance programs; and work with federal, state and local agencies to ensure that business services and distressed area programs are conducted in a coordinated and cost effective manner.

The Business Assistance Center Coordinating Task Force is established.  The members are appointed by the Governor from appropriate state agencies providing business assistance services.  The Task Force is directed to assist the Department of Trade and Economic Development in formulating the Center's work plan, goals and objectives, and to ensure ongoing interagency coordination.

The Center is required to report to the Legislature and Governor outlining:  the Center's activities, effectiveness and accomplishments; the degree of coordination between the Center and other state business programs; and recommendations on expanding or improving the Center's services.

The Small Business Improvement Council is renamed the Governor's Small Business Improvement Council.  The Governor appoints nonvoting ex officio members to the Council from the various state agencies with business assistance responsibilities.  Four legislative members are placed on the Council.  The Council is authorized to identify administrative and legislative proposals that will improve the entrepreneurial environment for small businesses, and advise state business programs including the Business Assistance Center on their policies and practices.  The Council, in consultation with the Business Assistance Center and appropriate standing committees of the House and Senate, is required to submit its proposals and recommendations to the Governor and Legislature prior to the convening of each regular session.

The Business Assistance Center and the Governor's Small Business Improvement Council are scheduled for sunset review and scheduled to terminate on June 30, 1992.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 98   0 (House amended)

      Senate    46     0 (Senate concurred)

EFFECTIVE:July 26, 1987