Committee hears House Bill 1245 to create Office of Entrepreneurship; supporters cite startup barriers, opponents urge stronger structure

The Technology, Economic Development and Veterans Committee on Jan. 22 held a public hearing on House Bill 1245, a proposal to create an Office of Entrepreneurship within the Department of Commerce to help early-stage firms navigate state regulations and improve access to contracting opportunities.

Staff described the bill—s key provisions: the office would promote programs for businesses with fewer than 10 employees, assist firms in operation for not more than five years in interactions with state agencies, identify regulations that hinder formation, and encourage that 5% of state contract numbers and dollar value be awarded to businesses in operation for five years or less. The director would be appointed by the governor; the office must submit a report beginning Nov. 1, 2026 and biannually thereafter, the staff report said.

Representative Travis Couture (R-35th), prime sponsor, told the committee the office is intended to centralize assistance and reduce early-stage administrative barriers. "Every entrepreneur in our state has a right to start," Couture said, asking the legislature to make state resources more navigable for young firms.

Business groups voiced support. Sean DeWitts of the Washington Hospitality Association said restaurants and lodging "are often the first ventures for entrepreneurs in Washington" and supported the bill—s focus on data tracking for women-, minority- and veteran-owned firms. Crystal Leatherman of the Washington Retail Association said the office would help market vendors and cottage-industry entrepreneurs who fear expanding because of regulatory complexity.

Dave Parker, CEO of the Entrepreneurs' Organization and a Washington native, said an office would give entrepreneurs "a voice at the table" and help align public resources with private ecosystem supports. Emily Whitman of the Association of Washington Business said many AWB members are small firms and welcomed a dedicated advocate within the Department of Commerce.

At the same time, witnesses and committee members urged changes. Patrick Connor of the National Federation of Independent Business supported the concept but recommended a stronger placement and authority for the office, suggesting it could be situated in a governor-level office or have greater independence than an internal Commerce office. Connor also noted omissions in the bill—s list of cooperating agencies and urged adding Labor & Industries and other agencies entrepreneurs commonly interact with.

John Worthington of Sequim voiced concern that policy choices intended to expand opportunities for historically underrepresented groups can disadvantage small local firms by tilting procurement toward entities with different tax or fee structures; he said he supported the bill overall but warned of future competitive challenges.

Committee members questioned data and fiscal impacts. Members noted differing survivability statistics cited from third-party reports and recommended review of the Department of Revenue—s new-tax-account data. Representative Couture said a fiscal note exists but he had not provided it in testimony; staff pointed members to the fiscal note and encouraged amendment language to streamline implementation if needed.

Why it matters: supporters said an Office of Entrepreneurship could reduce friction that prevents startups from scaling and increase contracting opportunities for new firms; opponents and some business groups asked for stronger authority, clearer agency cooperation and attention to fiscal constraints.

What the committee did: the session was a public hearing; no committee vote or final action on House Bill 1245 occurred during the meeting.