FINAL BILL REPORT
2SHB 1476
PARTIAL VETO
C 417 L 89
BYHouse Committee on Appropriations (originally sponsored by Representatives Basich, Doty, Spanel, Cantwell, Vekich, Kremen, Hargrove, Schoon, Sayan, Baugher, Inslee, Jesernig, Rasmussen, Rayburn, Walk, Jones, Rector, Raiter, Locke, Moyer, Youngsman, Walker, Winsley, Bowman, Brough, D. Sommers, Silver, Tate, Ferguson, Wineberry, P. King, Pruitt, Ebersole, Sprenkle, Morris and Todd)
Establishing the Washington marketplace program.
House Committe on Trade & Economic Development
Rereferred House Committee on Appropriations
Senate Committee on Economic Development & Labor
SYNOPSIS AS ENACTED
BACKGROUND:
Many businesses lack market information regarding local sources of supplies. Local suppliers are unable to bid on orders which are filled by out-of-state sources because they are unaware of these opportunities to supply local buyers. Local suppliers often have lower transportation and storage costs and have better service and delivery times.
The Washington Marketplace Program was authorized by the Legislature in 1988 through an appropriation to the Department of Trade and Economic Development. The Washington Marketplace Program is administered by the Business Assistance Center which contracts with local non-profit organizations for the operation of the program. The program is currently focused on distressed areas of the state, but the program is authorized to provide funds to local organizations in non-distressed areas so that they may provide technical assistance to programs in distressed areas.
Marketplace programs identify businesses within their communities which either purchase or plan to purchase supplies from sources outside the state. Buyers who are interested in participating in the program provide the program with their product specifications. The program, keeping the identity of the buyer confidential, then identifies in-state businesses who either produce the products specified or are capable of producing the products. These suppliers are then notified of the opportunity to bid for the contract. The buyer is presented with the bids and may choose any or none of the bidders.
The Washington Marketplace Program will expire at the end of the 1987-88 biennium unless it is reauthorized.
SUMMARY:
The Washington Marketplace Program is established within the Business Assistance Center. The program is directed to place special emphasis on strengthening the economies of rural distressed areas. The Marketplace Program will consult with the community revitalization team established in the Department of Community Development.
The Department of Trade and Economic Development is required to contract with at least four local non-profit organizations located in distressed areas of the state for implementation of the Washington Marketplace Program. The department may also enter into joint contracts with multiple non-profit organizations in different locations to promote cooperation between urban and rural areas, but at least one of these non-profit organizations must be located in a distressed area and no more than one non-profit organization may be located in an urban area.
Contracts must be awarded on a competitive bid process with preference given to organizations with a broad spectrum of community support. Each location must contribute at least 20 percent local funding. Contracts may include provisions for charging businesses that profit from the program a service fee.
Contracts must be for the performance of the following services: contacting Washington businesses to identify goods and services purchased from out-of-state sources; identifying locally sold goods and services currently provided by out-of-state sources; determining goods and services for which a business is willing to make contract agreements; advertising market opportunities to in-state suppliers; and receiving bid responses from potential suppliers and sending them to a business for final selection.
The Business Assistance Center is also directed to prepare promotional materials or conduct seminars, provide technical assistance, and develop standardized procedures for operating the local component of the Washington Marketplace Program.
The department is directed to report annually to the Senate Economic Development and Labor Committee and the House Trade and Economic Development Committee on the activities of the Washington Marketplace program.
The Office of Capital Projects is established within the Department of Trade and Economic Development. The office is required to assist Washington businesses in the development of consortiums, assist consortiums in Washington to market their products and services in international markets, compile information on capital project opportunities for Washington businesses, and provide initial assistance to consortiums in securing capital project contracts. The office must also provide information to businesses on trade tariffs, quotas, government regulations, or other trade restrictions which may affect Washington businesses.
The office may seek and receive funds from public and private sectors, and coordinate with other governmental agencies. It may also charge reasonable fees for the use of its services. Contracts entered into by consortiums do not constitute a contract with the state or a lending of the state's credit. The office is prohibited from entering into a binding contract with foreign governments.
The Legislative Budget Committee is required to review the capital projects program by January 1, 1992.
The office is scheduled to terminate under the sunset process on June 30, 1994.
VOTES ON FINAL PASSAGE:
House 94 1
Senate 46 0 (Senate amended)
House House refused to concur
Free Conference Committee
Senate 48 0
House 97 0
EFFECTIVE:July 23, 1989
Partial Veto Summary: The sections pertaining to the establishment of a capital projects program within the Department of Trade and Economic Development are vetoed. (See VETO MESSAGE)