S-4332               _______________________________________________

                          SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8427

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Economic Development and Labor (originally sponsored by Senators Lee, Smitherman, Conner, Anderson, Cantu, Warnke, Saling, West and Bailey)

Read first time 2/3/88.

WHEREAS, The private sector business community is of vital importance to the State of Washington to ensure that employment opportunities are available and to ensure a high standard of living and quality of life for Washington citizens; and

          WHEREAS, It is in the interest of the State of Washington to preserve a competitive economy dedicated to providing quality goods and services at fair and reasonable prices; and

          WHEREAS, The legislature recognizes the vital importance of not-for-profit organizations in  providing community and charitable services that have not traditionally been commercially viable and that not-for-profit organizations enable citizens to cooperate to serve their communities; and

          WHEREAS, In January, 1988, the office of the secretary of state issued its "Preliminary Study Results" on nonprofit organizations in Washington and the department of revenue issued its research report on nonprofit organizations as to Washington state excise tax treatment; and

          WHEREAS, In December, 1987, the small business improvement council issued its "Annual Report to the Governor and the Legislature," which report identified issues of concern to the small business community, and which specifically identified the issue of competition between for-profit and not-for-profit organizations; and

          WHEREAS, It is now appropriate that the legislature address concerns of both for-profit and not-for-profit organizations; and

          WHEREAS, It is necessary to study the impact of tax and regulatory exemptions on for-profit and not-for-profit organizations;

          NOW, THEREFORE, BE IT RESOLVED, By the Senate of the State of Washington, the House of Representatives concurring, That a joint select committee on for-profit and not-for-profit competition shall be established; and

          BE IT FURTHER RESOLVED, That the committee shall be composed of the following members:  Four members of the Senate, two appointed by each caucus; four members of the House of Representatives, two appointed by each caucus; four members of for-profit organizations, appointed by the governor; four members of not-for-profit organizations, appointed by the governor; and four ex officio, nonvoting members from state government agencies, appointed by the governor; and

          BE IT FURTHER RESOLVED, That the committee shall review the following areas:

          (1) The tax and regulatory advantages that accrue to for-profit and not-for-profit organizations;

          (2) The extent to which not-for-profit organizations engage in unrelated business activities;

          (3) The major areas in which competition exists between for-profit and not-for-profit organizations, together with the historical perspectives on such major areas of competition;

          (4) The manner in which both for-profit and not-for-profit organizations can cooperate to mitigate the problems generated by such competition;

          (5) What action, if any, should be taken by the legislature to reduce such competition; and

          (6) Additional issues in this area which should be examined; and

          BE IT FURTHER RESOLVED, That the committee shall be constituted not later than May 1, 1988, and shall convene its first meeting not later than June 1, 1988; and

          BE IT FURTHER RESOLVED, That the committee shall report its initial findings and recommendations for scope of work to the governor and the legislature not later than January 1, 1989; and

          BE IT FURTHER RESOLVED, That it is intended that the committee shall make its final report and recommendations to the governor and the legislature not later than January 1, 1990; and

          BE IT FURTHER RESOLVED, That all executive branch agencies having expertise in the area of for-profit and not-for-profit competition, or which are impacted by the issue of such competition, shall cooperate with and provide such services as requested by the committee.