House Bill Analysis, HB 1245, Technology, Economic Development, & Veterans Committee

Summary

House of Representatives Office of Program Research bill analysis of HB 1245, Concerning business development, for the Technology, Economic Development, & Veterans Committee hearing date of 1/22/25. The bill establishes the Office of Entrepreneurship and describes its powers and duties. The background describes assistance already provided to small businesses by the Department of Commerce, the Department of Enterprise Services, the Governor's Office for Regulatory Innovation and Assistance, and the Office of Minority and Women's Business Enterprises. The Office is required to encourage five percent of the total number and value of state contracts to go to businesses in operation for not more than five years. The analysis lists the appropriation as none and a fiscal note requested on January 15, 2025.

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Washington State                    BILL
House of Representatives
Office of Program Research   ANALYSIS
Technology, Economic Development, &
Veterans Committee
                                        HB 1245
Brief Description: Concerning business development.

Sponsors: Representatives Couture, Walen, Fitzgibbon, Barkis, Nance, Eslick, Caldier,
    Timmons and Pollet.


                                     Brief Summary of Bill
          • Establishes the Office of Entrepreneurship (Office) and describes the
            various powers and duties of the Office.


Hearing Date: 1/22/25

Staff: Emily Poole (786-7106).

Background:

Several state agencies and offices provide resources and assistance to small businesses and
entrepreneurs. These include the Department of Commerce (Commerce), the Department of
Enterprise Services (DES), the Governor's Office for Regulatory Innovation and Assistance
(ORIA), and the Office of Minority and Women's Business Enterprises (OMWBE).

Commerce's Small Business Training and Education Center connects entrepreneurs, start-ups,
and small businesses to information and resources, including funding sources, training and
technical assistance, mentorship, and education. Commerce is also required to assist women and
minority-owned businesses in overcoming barriers to entrepreneurial success.

The DES provides centralized business services to state government agencies, public entities,
tribal governments, and Washington residents. Among other duties, the DES is required to



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

House Bill Analysis                             -1-                                         HB 1245
maintain records of state purchasing contracts awarded to small businesses, which are tracked in
the DES's vendor registration and bid notification system. The DES is also required to give
technical assistance to small businesses regarding the state bidding process and track outcomes
regarding the effects of such technical assistance, including the number of small businesses that
have been awarded state contracts. The DES is required to submit a report on these outcomes to
the Legislature every two years.

The ORIA helps individuals navigate Washington's environmental and business regulatory
systems. The ORIA's information center provides information about local, state, and federal
regulatory requirements, and their consultants provide business services and support relating to
permitting and regulatory issues for small businesses.

The OMWBE, among other duties, is required to encourage participation by qualified minority
and women-owned and controlled businesses in public works and the state procurement process.
The OMWBE is also required to maintain a central minority and women's business enterprise
certification list for all state agencies and educational institutions.

Summary of Bill:

The Office of Entrepreneurship (Office) is established, which has the power and duty to:
  • promote initiatives, policies, and programs supporting the entrepreneurship of businesses
     with fewer than 10 employees;
  • work with stakeholders and organizations supporting entrepreneurship to enhance the
     learning and skills of, provide technical support to, and expand access to resources for
     entrepreneurs across the state;
  • serve as a point of contact to assist businesses that have been in operation for not more
     than five years in their interactions with state agencies and, where appropriate, refer
     businesses to other state or local agencies that provide assistance to businesses; and
  • identify government regulations and fees that hinder business formation in the state.

The director of the Office must be appointed by the Governor, and the Office may employ staff
necessary to carry out the Office's duties. The Office may collaborate with the Department of
Commerce, the Department of Enterprise Services, the Office of the Secretary of State, the
Department of Veterans Affairs, the Governor's Office for Regulatory Innovation and
Assistance, the Office of Minority and Women's Business Enterprises, and other relevant state
agencies, which must cooperate with and assist the Office in the performance of its duties.

Beginning November 1, 2026, and biennially thereafter, the Office must submit to the
Legislature a report that includes:
   • the number and total dollar amount of state contracts awarded to businesses that have been
      in operation for not more than five years;
   • the percentage of state contracts awarded to businesses that have been in operation for not
      more than five years;
   • the number of businesses owned by women, minorities, or veterans that have been in


House Bill Analysis                            -2-                                        HB 1245
      operation for not more than five years and have been awarded a state contract;
    • the percentage of the total dollar amount of state contracts awarded to businesses that have
      been in operation for not more than five years compared to the total amount of contracts
      awarded;
    • the types of businesses that have been in operation for not more than five years and have
      been awarded a state contract;
    • recommendations on improving access to state contracts for businesses that have been in
      operation for not more than five years;
    • recommendations on improving overall entrepreneurship in the state; and
    • any additional information deemed necessary by the Office to provide an accurate
      depiction of the condition of entrepreneurship in the state.

The Office is required to encourage five percent of the total number and value of state contracts
to be awarded to businesses that have been in operation for not more than five years and whose
principal place of business is in Washington.

Appropriation: None.

Fiscal Note: Requested on January 15, 2025.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                         HB 1245

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