Bills aimed at helping small businesses moving through the state Legislature
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OLYMPIA — Lawmakers pushed through a package of bills in February geared to help small businesses, including measures on health care, red tape, a dwindling workforce and tax problems.
The House passed the 10 bills that were designed to assist small businesses, which make up 93 percent of businesses in the state, House democrats said. The bills now will be considered in the Senate and if approved will go to Gov. Chris Gregoire for final approval.
Here’s what each bill would do:
Health care: House Bill 2560 would make it easier for small businesses to buy into group healthcare plans by opening the opportunity up to employees working less than 30 hours a week and the self-employed.
Thinking green: HB 3362 would give a tax credit to businesses that purchase energy efficient appliances.
HB 3120 would make the state study tax incentives for businesses that construct new buildings in a way that causes less harm to the environment.
“Good behavior should be rewarded,†said Ted Sprague, president of the Cowlitz County Economic Development Council. Some local businesses, such as the new Cameron Glass plant already has taken steps to “be as green as they can,†he added.
Tax relief: Also, HB 2380 and HB 3126 would give tax breaks to businesses whose products mostly are sold in a different area than the business location. Selling products in a different area means the businesses don’t collect as much in taxes and currently pay taxes to cities they aren’t located in.
Regulations: HB 2925 would require the state Office of Minority- and Women-owned Business Enterprises establish a plan to make it more effective. Meanwhile, HB 2631 would give the Governor’s Office of Regulatory Assistance more authority to streamline regulations that affect small businesses, including cost-reimbursements and permitting.
Business education: HB 2899 requires the state to study adult literacy and job readiness, and HB 3210 requires the state to create a 10-year workforce education plan to better prepare people for the jobs. While visiting Cowlitz County last month, Gov. Chris Gregoire said there are not enough skilled workers to fill the many open job vacancies.
“Oh, good,†Sprague said upon hearing of the business education measures. “If the Legislature is looking to help that, I think that’s a smart area for them to go into.â€
Still, he said he hopes lawmakers will work hand-in-hand with local organizations such as Lower Columbia College and WorkSource while forming a business education plan.
“We don’t want to duplicate efforts,†he said.
Nurturing small businesses is on the minds of lawmakers this Legislative session, and a bill to gauge the success of programs helping startup businesses is gaining wide support.
Designed to help startup small businesses, House Bill 3115, would more specifically define an incubator as one that helps businesses fewer than 5 years old with no more than
10 employees.
Many small business incubator programs offer managerial advice, help accessing loans and flexible building leases.
The bill also would require the incubators to submit performance information to the state every two years starting in 2010 so the state can understand whether the programs are working. It would require the incubator programs to receive certification, too.
Sprague welcomed taking a second look at the programs.
“What I found is they take a lot of time, and they’re not always very successful,†he said, adding that if the incubators aren’t completely dedicated to their task, all that’s accomplished is startup business “handholding.â€
Sprague instead lauded the area’s new small business development center. The group, in 24 locations across the state, offers advising for businesses that Sprague said has helped locally.
Other bills this session to provide tax breaks for new small businesses, such as House Bill 3165 sponsored by Rep. Ed Orcutt, R-Kalama, weren’t so lucky. That legislation would have given a business and occupation tax (B&O) tax exemption of up to $200,000 for small businesses during the first
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