FINAL BILL REPORT

SSB 6664

PARTIAL VETO

                              C 264 L 90

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators McDonald, Gaspard, Warnke and Rasmussen; by request of Department of Licensing)

Amending the business license center act.

Senate Committee on Economic Development & Labor

House Committe on Trade & Economic Development

SYNOPSIS AS ENACTED

BACKGROUND:

Beginning in fiscal year 1989, the Department of Licensing which is funded by the general operating budget and the transportation budget experienced a significant reduction in the funding received from the transportation budget.  Additional funding was not allocated from the general fund to account for the deficit experienced by the department.  As a result, the Department of Licensing has attempted to establish alternate sources of funding for its existing programs.

The master license system, administered by the Business License Center, is one such program operated by the Department of Licensing.  It provides a one-stop licensing service to businesses across the state which are often required to obtain multiple licenses from numerous state agencies.  The master license program issues over 71 different licenses for eleven state agencies.  Fees are not charged to businesses or state agencies for this service.  Due to the recent reductions in agency funding, the program will experience a 32 percent, or $2 million shortfall in program funding during the current biennium.

SUMMARY:

The Business License Center is given the authority to impose a $12 handling fee for each original master license issued by the master licensing program.  A fee will not be charged for the annual renewal of master licenses.

The Legislative Budget Committee is requested to do a performance audit on the master licensing program to determine program effectiveness and efficiency.

VOTES ON FINAL PASSAGE:

     Senate   39    0

     House 93  4 (House amended)

     Senate          (Senate refused to concur)

     House           (House refused to recede)

Free Conference Committee

     Senate   44    1

     House 81 16

EFFECTIVE:July 1, 1990

Partial Veto Summary:  The section that repealed the provisions establishing the Business License Center and added licenses to the master license system is vetoed.  (See VETO MESSAGE)