HOUSE BILL REPORT

SSB 5241

As Amended by the House

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Anderson, Lee, Saling, McMullen and West)

Promoting small business growth.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendment.  (12)

      Signed by Representatives Cantwell, Chair; Doty, Ranking Republican Member; G. Fisher, Kremen, Moyer, Rasmussen, Raiter, Rector, Schoon, Tate, Walk and Youngsman.

House Staff:Bill Lynch (786-7092)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Trade & Economic Development and as further amended by Committee on Appropriations. (17)

      Signed by Representatives Locke, Chair; Youngsman, Ranking Minority Member; Appelwick, Bowman, Brekke, Dorn, Ferguson, Hine, May, McLean, Nealey, Rust, Sayan, Spanel, Sprenkle, Wang and Wineberry.

House Staff:      Susan Nakagawa (786-7136)

AS PASSED HOUSE APRIL 11, 1989

BACKGROUND:

Small and young businesses have great potential for creating jobs, developing new products and expanding the state's tax base.  Unfortunately, these businesses are often unaware of the existence of non-bank capital sources.  Similarly, investors have difficulty finding solid investment opportunities in new businesses.  Institutionalizing a mechanism for meeting the information needs of investors and entrepreneurs will have a favorable impact on the Washington economy.

SUMMARY:

The Washington Investment Opportunities Office is created in the Business Assistance Center of the Department of Trade and Economic Development.  The office acts as a clearinghouse for entrepreneurs seeking capital and investors seeking good investments.  It will keep a list of entrepreneurs in the state looking for capital resources and will provide prospective investors with information about these entrepreneurs.  The office will keep abreast of national trends and preferences in capital markets, and provide timely information to both investors and entrepreneurs.  The Business Assistance Center may charge fees for its services.  The Business Assistance Center is directed to promote small business securities financing.

Referrals between the Investment Opportunity Office and the Small Business Innovators' Opportunity program are required.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Trade & Economic Development) David Dougherty and Rich Paulson, Department of Trade and Economic Development; and Mike Stevenson, Securities Division, Department of Licensing.

(Appropriations) David Dougherty, Department of Trade and Economic Development.

House Committee - Testified Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.

House Committee - Testimony For:    (Trade & Economic Development) The state ranks thirty-third among all states in its ability to raise capital for business.  The bill will continue the current program in the Business Assistance Center which matches entrepreneurs with investors.  It will also allow promotion of the small business stock offering program adopted by the Securities Division.

(Appropriations) The small business stock offerings program has recently been authorized by the securities division.  This bill allows DTED to promote this program.

House Committee - Testimony Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.