HOUSE BILL REPORT

                  HB 1800

                       As Passed House

                       April 17, 1993

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 & Housing, February 26, 1993, DP;

Appropriations, March 29, 1993, DP;

  Passed House, April 17, 1993, 96-0.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & 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).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 24 members:  Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.

Staff:  Beth Redfield (786-7130).

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:  Available.

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

Testimony For:  (Trade, Economic Development & Housing)  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.

(Appropriations) OMWBE provides certification services previously performed by localities.  This bill allows the office to charge localities, state agencies, and businesses who benefit from the services provided by the office.

Testimony Against:  (Trade, Economic Development & Housing)  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.

(Appropriations) None.

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

(Appropriations) Jim Medina, Office of Minority and Women Owned Business Enterprises (pro); and Representative Val Ogden, 49th District (pro).