SENATE BILL REPORT

SB 6276

BYSenators Lee, Warnke, Fleming, Smitherman, Conner, Deccio, McMullen and Johnson

Creating an interagency task force on entrepreneurial development.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 14, 1988; January 18, 1988

Majority Report:  That Substitute Senate Bill No. 6276 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Jack Brummel (786-7428)

                  January 18, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 18, 1988

BACKGROUND:

Entrepreneurs, people who start, organize, and manage new enterprises, are the primary force behind innovation, new business formation, new job creation, and new wealth creation.  In one rating of different states' economic development performance done by the Corporation for Enterprise development, Washington state ranked 48th on the measure of entrepreneurial culture.  It has been suggested that the lack of a vital entrepreneurial environment is one reason that the state has suffered from high unemployment, high business failures, and relatively low business starts.

SUMMARY:

An interagency task force on entrepreneurial development is created, chaired by the director or an assistant director of the Department of Trade and Economic Development.  The Department of Community Development, the Employment Security Department, the State Board for Vocational Education, the State Board for Community College Education, the Higher Education Coordinating Board and the Superintendent of Public Instruction are also on the task force.

The task force is charged with gathering information on entrepreneurial development, formulating interagency agreements to promote entrepreneurial activity, and designing program and policy options.

The job training coordinating council will include provisions in its coordination and special services plan to facilitate entrepreneurial development.

Unemployed individuals collecting unemployment benefits while participating in good faith efforts to form an enterprise are exempt from work search and reporting requirements.

A four year pilot project conducted by the Department of Employment Security will allow a lump sum payment in lieu of unemployment compensation to be used by unemployed individuals to start new businesses.

EFFECT OF PROPOSED SUBSTITUTE:

The two provisions relating to business formation by persons collecting unemployment benefits are stricken.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 12, 1988

Senate Committee - Testified: Kathy Countryman, Employment Security Department