FINAL BILL REPORT

                          E2SSB 5468

PARTIAL VETO

                          C 302 L 94

                      SYNOPSIS AS ENACTED

Brief Description:  Imposing requirements for businesses that receive public assistance.

SPONSORS: Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Fraser, Skratek, Pelz and Prentice)

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

BACKGROUND:

Washington's economic development programs include various tax deferral plans and grant or loan programs to assist business development.  Although these programs may include some conditions for eligibility, private businesses receiving assistance are not required to give advance notice of any business closure, to continue to honor collective bargaining agreements after relocating a facility, or to meet any specific employment standards for employees, except as required under relevant federal or state law.

SUMMARY:

The Department of Revenue and the Department of Community, Trade, and Economic Development will measure the effect of current tax deferral and credit programs and the development loan fund on businesses.  The departments will determine whether recipients of benefits have met certain standards or complied with certain requirements.  Businesses applying for a benefit will submit employment impact estimates and, after receiving the benefit, will submit employment impact statements.  The Executive-Legislative Committee on Economic Development Policy will review the departments' findings and make recommendations to the Governor and the Legislature regarding the benefit programs.

Information on individual businesses is exempt from public disclosure.  The departments shall report their findings to legislative committees.

VOTES ON FINAL PASSAGE:

Senate    26   22

House     69   26   (House amended)

Senate             (Senate refused to concur)

Conference Committee

House     61   36

Senate    30   18

EFFECTIVE:April 2, 1994

Partial Veto Summary:  The section of the bill requiring a study and report on tax deferral and tax credit programs was vetoed, leaving an intent section and an emergency clause.