SENATE BILL REPORT

SB 5241

BYSenators Anderson, Lee, Saling, McMullen and West

Promoting small business growth.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 3, 1989; February 9, 1989

Majority Report:  That Substitute Senate Bill No. 5241 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Murray, Saling, Smitherman, West, Williams.

Senate Staff:Jack Brummel (786-7428)

                  February 10, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):February 22, 1989; March 2, 1989

Majority Report:  That Substitute Senate Bill No. 5241 as recommended by Committee on Economic Development & Labor be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Newhouse, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:William Bafus (786-7437)

                  March 7, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 2, 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 nonbank 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 promote small business securities financing, keep abreast of national trends and preferences in capital markets, and provide timely information to both investors and entrepreneurs.

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

EFFECT OF PROPOSED SUBSTITUTE:

Entrepreneurs engaged in wholesaling, transportation services, and development of destination tourist resorts may use the services of the office.  The Business Assistance Center may charge fees for its services.  An appropriation of $115,000 is added.

Appropriation:    $115,000 from the state general fund to the Department of Trade and Economic Development

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  FOR:  Keith Potter, David Dougherty, Rod Bristol, Sudden Printing, Phillip Lewis

Senate Committee - Testified: WAYS & MEANS:  David Daugherty, DTED (for); Michael Lyle, Bogle and Gates (for); Richard Paulson, DTED