SENATE BILL REPORT

SSB 5530

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

Expanding the duties of the office of small business.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 26, 2987; February 27, 1987

Majority Report:  That Substitute Senate Bill No. 5530 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Sellar, Vognild, West, Williams.

Senate Staff:Patrick Woods (786-7430)

                  March 2, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):March 5, 1987

Majority Report:  That Substitute Senate Bill No. 5530 as recommended by Committee on Commerce & Labor be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Cantu, Craswell, Fleming, Hayner, Kreidler, McDonald, Moore, Owen, Rasmussen, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                  April 17, 1987

AS PASSED SENATE, MARCH 12, 1987

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 the efficiency of the programs. The Council provided a report to the Legislature and Governor in 1985.

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 assisting businesses; increase public awareness of existing services available to businesses in the state; and establish a council or committee to provide ongoing analysis and strategic planning on small and medium-sized business issues.

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.

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; 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; and aggressively promote business awareness of the state's business assistance programs.

The Center is required to report to the Legislature and Governor outlining:  The Center's activities and 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 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 assists the Department of Trade and Economic Development in formulating the Center's initial work plan, goals and objectives.

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 and the Business Assistance Center on their policies and practices.

In consultation with the Business Assistance Center and appropriate standing committees of the House and Senate, the Council 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 review under the sunset review process and scheduled to terminate on June 30, 1992.

Appointments by Legislature Required:     One member of each caucus from the House and Senate appointed by the Governor.

Fiscal Note:      requested

Senate Committee - Testified: COMMERCE & LABOR: Jim Bricker, OFM; Gary Alexander, OFM; Jerry Ellis, Dept. of Trade and Economic Development; Kay Harlan, Small Business Improvement Council

Senate Committee - Testified: WAYS & MEANS:  Larry Stanley

HOUSE AMENDMENTS:

The intent provisions of the Business Assistance Center program are expanded to provide for cooperation with associate development agencies (ADOs).

The duties of the Business Assistance Center are expanded to:  develop coordinated processes that complement state and local services, in concert with local organizations; and work with federal, state and local agencies to ensure the business services and distressed area programs are conducted in a coordinated and cost effective manner.

The duties of the Business Assistance Center Coordinating Task Force is expanded to facilitate ongoing interagency coordination.