HOUSE BILL REPORT

HB 2813

BYRepresentatives Locke, Braddock, Silver and P. King; by request of Department of Licensing

Amending the business license center act.

House Committe on Trade & Economic Development

Majority Report:  Do pass as amended.  (10)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, Kremen, Moyer, Raiter, Rasmussen, Rector, Schoon and Youngsman.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Kirby and Tate.

House Staff:Paul Leistner (786-7663)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 2, 1990

BACKGROUND:

The master license system is a program administered by the Business License Center in the state Department of Licensing. The system allows businesses to streamline the process by which they apply and pay for new state business licenses and license renewals.

By using the system, businesses can apply and pay for numerous business licenses at the same time by using one application form, and by paying with one check.  Businesses then receive a "master license" which incorporates the endorsements for the individual licenses.

The master license system provides access to 71 different business licenses from 11 state agencies.

The cost of providing the services of the master license system have been provided from the general fund.  Businesses receive the services of the system free of charge.

SUMMARY:

BILL AS AMENDED:  A fee is established for the handling of each original master license.  The amount of this handling fee is recommended by the Board of Review and is specified by the director of the Department of Licensing.  The handling fee may not exceed $6 for each original master license issued.

The business license center is required to collect the revenue generated by the Secretary of State's fee on the filing of corporate annual reports.  The handling fees and the corporate annual report fees are deposited in the general fund.

Two statutes are repealed that list tasks the business license center was to complete by 1985.

AMENDED BILL COMPARED TO ORIGINAL:  The bill as amended drops the one year surcharge on master licenses, for both original master licenses and renewals.  The formula for determining the handling fee upper limit is replaced with a $6 upper limit.  The handling fee is only charged on original master licenses and not on renewals.  The business license center is required to collect the revenues from fees levied by the Secretary of State on the filing of annual reports by domestic and foreign corporations.

Fiscal Note:      Requested February 2, 1990.

Effective Date:The bill contains an emergency clause and takes effect July 1, 1990.

House Committee ‑ Testified For:    Mary Faulk, Director, Department of Licensing; and Donald Whiting, Office of the Secretary of State.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The business license center has been providing a master license service to businesses for free.  The business license center had part of its funding redirected within the department and has a budget shortfall and can no longer provide the master license service for free. The fee on the filing of corporate annual reports, existing in current law, should be collected by the business license center.

House Committee - Testimony Against:      None.