FINAL BILL REPORT

SSB 5168

                              C 96 L 89

BYSenate Committee on Governmental Operations (originally sponsored by Senators Bluechel, DeJarnatt, Sellar, Vognild, Cantu, Kreidler, Sutherland, Thorsness, Smitherman and Lee; by request of Washington State Library)

Authorizing the state library commission to move the western library network to private nonprofit status.

Senate Committee on Governmental Operations

House Committe on State Government

SYNOPSIS AS ENACTED

BACKGROUND:

Implementation of the Western Library Network (WLN) was authorized by the Legislature in 1976.  The two major components of WLN are a resource sharing network for libraries and a multi- state computer service.  WLN also markets a number of "off-line" services, including licensing of a computer software package libraries can use to establish their own networks.

More than 300 libraries in six western states and British Columbia use WLN on-line services.  Software licensing has been marketed internationally.  WLN is financed through a revolving fund.  It employs 75 people, with a budget of approximately $5.5 million.

As a division of the Washington State Library, the WLN is governed by the Washington State Library Commission.  An advisory body, the Network Services Council (NSC) assists the commission in WLN oversight.  NSC members represent participating libraries from Washington, Alaska, Oregon, Montana, Idaho and Arizona.

The most appropriate structure for governance of WLN has been under discussion for several years.  Sunset reviews by the Legislative Budget Committee in 1984 and 1987 recommended that it should take some form other than remaining a state agency.  In May 1988, the Network Service Council recommended formation of a private nonprofit corporation to assume the functions of the WLN.

SUMMARY:

The State Library Commission may cooperate with other agencies to establish a private nonprofit corporation which would provide the services currently offered by WLN.  The commission may terminate services of the Western Library Network before June 30, 1997, if a successor organization agrees to assume full responsibility for providing those services.

Aside from being tax exempt and nonprofit, the corporation must:  (1) include on its board of directors a majority representation by public sector libraries or other public agencies, and (2) agree to provide access to a bibliographic database and related services to network users.  If no such corporation exists, another governmental agency, an organization created under the Interlocal Cooperation Act, or a corporation currently providing equivalent services to libraries in the state of Washington shall be the successor to the WLN.

The commission may designate one or more members for the board of directors of the successor agency, but the state is not liable for actions of those members or of the organization itself.

In establishing the nonprofit corporation, the commission may transfer equipment, service contracts and other assets for reasonable compensation.  For up to five years, the commission has the right to repossess transferred property if the successor organization becomes bankrupt, insolvent, or fails to provide satisfactory services to a majority of users.

The commission may contract to provide personnel and other support services to the new entity for up to two years, and must be reimbursed for all costs of such services.  Library personnel who might be employed with the new organization are expressly exempt from the state's conflict of interest law.

When the commission terminates the WLN system, provisions are included for disposition of remaining funds, outstanding obligations, and untransferred property or contracts.  An annual status report is to be submitted to the appropriate legislative standing committees, with a final report required in January 1998.

VOTES ON FINAL PASSAGE:

     Senate   44    0

     House 93  2

EFFECTIVE:June 1, 1989 (Sections 1-6, 9-14)

           June 30, 1997