HOUSE BILL REPORT

                 SSB 6561

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to the marketplace program.

Brief Description:  Expanding the marketplace program.

Sponsors:  Senators Skratek and Bluechel; by request of Department of Trade and Economic Development.

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, February 24, 1994, DP.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  Do pass.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Schoesler, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Backlund; Campbell; Casada; Conway; Quall; Sheldon; Springer; Valle and Wood.

Staff:  Bill Lynch (786-7092).

Background:  The Washington Marketplace Program was created in 1988 and is administered by the Department of Community, Trade and Economic Development.  The program attempts to match local suppliers with local businesses currently purchasing from out of state to increase local commerce and create jobs in the state.  Businesses that profit from the program may be charged a service fee.

Under current law, the department may only contract with local non-profit organizations located in distressed areas in the state.  It is not authorized to contract with industry associations or other governmental bodies to carry out the purposes of the Marketplace Program.

Summary of Bill:  The Department of Community, Trade and Economic Development is authorized to contract with governments, industry associations or local non-profit organizations to carry out the purposes of the program.

In addition, the department may establish linkages with federal, regional and Northwest governments and non-profit organizations to foster buying leads and information benefiting Washington suppliers and industry and trade associations.  Businesses may be charged service fees for participating in the Marketplace Program.

Fiscal Note:  Available.

Effective Date:  Section 1 of the bill takes effect immediately.  Section 2 of the bill takes effect July 1, 1994.

Testimony For:  This will expand a proven successful program and make it more likely that the Export-Import Bank of the United States will choose Washington as the headquarters for this regional service area.

Testimony Against:  None.

Witnesses:  Senator Alan Bluechel, secondary sponsor (pro).