HOUSE BILL REPORT

HB 744

BYRepresentatives Schoon, Vekich and P. King; by request of  Department of Trade and Economic Development

Revising provisions relating to the state trade fair fund.

House Committe on Trade & Economic Development

Majority Report:     Do Pass.  (18)

     Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS PASSED HOUSE MARCH 16, 1987

BACKGROUND:

The Department of Trade and Economic Development administers the state Trade Fair Fund.  The fund was established to foster international trade activities through the provision of financial aid to assist the staging of trade fairs.  The state Trade Fair Fund is financed with three percent of the proceeds of the tax on parimutuel horse-racing that the state levies under RCW 67.16.100.

The Trade Fair Fund may run a surplus.  Access to the funds is only granted by legislative action, with the exception of up to million dollars which the director of the Department of Trade and Economic Development was permitted to utilize in the 1985 legislative session for foreign trade related activities.  Such activities were defined as the promotion of tourism, foreign trade, and foreign investment in the state.  The current condition is that the director of the Department of Trade and Economic Development and the State Treasurer determine which monies in the Trade Fair Fund are surplus, and such funds are transferred into the General Fund.

The department is requesting the authority to expend surplus monies in the Trade Fair Fund without the requirement of prior legislative approval.

SUMMARY:

The director of the state Department of Trade and Economic Development may elect to expend up to one million dollars of funds determined to be surplus funds in the State Trade Fair Fund each biennium on foreign trade related activities, including, but not limited to promotion of investment, tourism, and foreign trade.  The law currently permits the director to elect to expend up to a total of one million dollars of such funds, rather than spending up to a total of one million dollars each biennium.

Fiscal Note:    Requested February 16, 1987.

House Committee ‑ Testified For:     Jerry Ellis, Department of Trade and Economic Development.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Department should be both responsible for managing Trade Fair Fund and accountable for Trade Fair Fund and for fund surpluses. HB 744 will make that possible.  Surpluses are very small at present and are expected to remain so.

House Committee - Testimony Against: None Presented.