HOUSE BILL REPORT

                  HB 1800

             As Reported By House Committee On:

          Trade, Economic Development, and Housing

Title:  An act relating to the funding of the office of minority and women's business enterprises.

Brief Description:  Funding the office of minority and women's business enterprises.

Sponsors:  Representatives Ogden, Romero, Wang, Veloria, Anderson, Wineberry, Rayburn, R. Meyers, King and J. Kohl; by request of Office of Minority and Women's Business Enterprises.

Brief History:

  Reported by House Committee on:

Trade, Economic Development, and Housing, February 26, 1993, DP.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT, AND HOUSING

Majority Report:  Do pass.  Signed by 11 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Conway; Schoesler; Sheldon; Springer; Valle; and Wood.

Staff:  Kenny Pittman (786-7392).

Background:  Minority business enterprises (MBEs) and women's business enterprises (WBEs) benefit generally from statewide economic development programs.

Washington State's Office of Minority and Women's Business Enterprise (OMWBE) was created in 1983 to increase opportunities for minorities and women to obtain state contracts.  OMWBE's major duties are:  (1) to set annual MBE and WBE participation goals in fulfilling state contracts; (2) to certify businesses as eligible for MBE or WBE status; (3) to provide a certification list for state agencies and others seeking to solicit bids from MBEs or WBEs; and (4) to monitor agencies and perform investigations to identify barriers to equal participation and expose discriminatory business practices.

Summary of Bill:  The Washington State Office of Minority and Women's Business Enterprise (OMWBE) is authorized to charge a reasonable fee for using the services of the OMWBE.  The fees may be charged:  (1) to a business for using the OMWBE services; (2) to a political subdivision for certifying a business; and (3) to a state agency and educational institution, based on the amount expended through the OMWBE.

The Minority and Women's Business Enterprise account is created in the Office of the State Treasurer.  The fees collected for services provided by OMWBE are to be deposited into the account and used to cover all or part of the costs of the office.

Fiscal Note:  Requested February 18, 1993.

Effective Date:  Ninety days after adjournment of the session in which the bill is passed.

Testimony For:  The office has provided a valuable service to the state by certifying minority and women owned businesses.  The office would be allowed to charge those who use the service a fee for that service.

Testimony Against:  We do not deny the importance of the office, but the fees will reduce the state's university budgets at a time of limited resources.

Witnesses:  Representative Ogden, prime sponsor (Pro); Jim Medina, Office of Minority and Women Business Enterprise (Pro); and Bill Allison, Council of Presidents (Con).