SENATE BILL REPORT

SB 6202

BYSenators Lee, Talmadge, Bluechel and Conner

Establishing an international trade office in Toronto.

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 20, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 6, 1990

BACKGROUND:

Toronto is the first in a series of international market development offices that will be opened in key cities worldwide through the year 2000.

SUMMARY:

An international market development office shall be opened in Toronto, Canada to facilitate the sales of Washington products in Canadian markets.  The Toronto 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 in Canada.  The trade office shall work to aggressively facilitate business transactions between Washington State enterprises and foreign 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.

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.

EFFECT OF PROPOSED SUBSTITUTE:

The location of the office is changed from Toronto, Canada to Europe.  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.

The role of the Department of Agriculture in daily administration of the office is strengthened.  The Directors of the Department of Trade and Economic Development and the Department of Agriculture shall jointly administer the office, and shall consult with each other on establishing a fee schedule for services and a time frame for the office to become self supporting.

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.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

The appropriation of $600,000 is removed.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 9, 1990

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