SENATE BILL REPORT

2SSB 6202

BYSenate Committee on Ways & Means (originally sponsored by Senators Lee, Talmadge, Bluechel and Conner)

Establishing an international trade office in Europe.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 10, 1990; January 18, 1990

Majority Report:  That Substitute Senate Bill No. 6202 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Forrest Bathurst (786-7429)

                  January 22, 1990

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1990; February 6, 1990

Majority Report:  That Second Substitute Senate Bill No. 6202 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDonald, Chairman; Bailey, Bluechel, Cantu, Fleming, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Saling, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Mary Poole (786-7613)

                  February 27, 1990

AS PASSED SENATE, FEBRUARY 23, 1990

BACKGROUND:

A series of international market development offices will be opened in key cities worldwide through the year 2000.  Their missions will be to assist Washington State businesses in developing foreign markets for our state's products.

SUMMARY:

An international market development office shall be opened in Europe to facilitate the sales of Washington products.  The European office will provide Washington businesses with information on political factors, economic factors, competitive factors, level of suitable technology, structures of distribution, geography and infrastructure, cultural requirements and other factors influencing trade and market development.  The trade office shall work to aggressively facilitate business transactions between Washington State enterprises and European purchasers.

The office shall be jointly staffed by the Department of Trade and Economic Development and the Department of Agriculture.  Each of these agencies will co-locate within the same office. 

To make each office self-supporting and not dependent on state funding, each business will be charged a fee for services rendered by the office.

The Directors of the Department of Trade and Economic Development and the Department of Agriculture shall consult with each other on establishing a fee schedule for services and a time frame for the office to become self supporting.

Each international trade office shall prepare semiannual reports for the Department of Trade and Economic Development, the Department of Agriculture and the appropriate legislative committees.  This report shall include information on:  (1) the dollar volume of facilitated transactions, (2) the number of completed transactions that were facilitated, (3) the amount of fees collected, (4) the number of trade shows attended, (5) the number of foreign buyers and Washington State vendors included in a computerized database, and (6) the net increase or decrease in the number of database entries.

No European location is specified.  The Department of Trade and Economic Development will create the European office in consultation with the Department of Agriculture and the Temporary Task Force on Port Cooperation.

A percentage of total funding for carrying out this act is earmarked for agricultural market development.  The percentage is not specified but shall be determined by the Directors of the Department of Trade and Economic Development and the Department of Agriculture.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  Ken Keach, Director, Small Business Export Assistance Finance Center; Art Scheunemann, Department of Agriculture; Ron Lorentz, Department of Trade and Economic Development