H-1278

AN ACT Relating to increasing utilities procurement contracts by women-owned and minority-owned enterprises; adding new sections to chapter 80.04 RCW; creating a new section; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. (1) The legislature hereby finds and declares that the essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, reasonable and just prices, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of that competition is basic to the economic well-being of this state and that well-being cannot be realized unless the actual and potential capacity of women-owned and minority-owned business enterprises is encouraged and developed. Therefore, it is the declared policy of the state to aid the interests of women-owned and minority-owned business enterprises in order to preserve reasonable and just prices and a free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts or subcontracts for commodities, supplies, technology, property, and services for regulated utilities are awarded to women-owned and minority-owned business enterprises, and to maintain and strengthen the overall economy of the state.

(2) (a) The legislature finds all of the following:

(i) The opportunity for full participation in our free enterprise system by women-owned and minority-owned business enterprises is essential if this state is to attain social and economic equality for those businesses and improve the functioning of the state economy.

(ii) Public agencies which have established short and long-range women-owned and minority-owned business enterprise goals are awarding thirty percent or more of their contracts to these business enterprises.

(iii) Women-owned and minority-owned business enterprises have traditionally received less than a proportionate share of regulated public utility procurement contracts.

(iv) It is in the state's interest to expeditiously improve the economically disadvantaged position of women-owned and minority-owned business enterprises.

(v) The position of these businesses can be improved by providing long-range substantial goals for procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from women-owned and minority-owned businesses.

(vi) That procurement also benefits the public utilities and consumers of the state by encouraging the expansion of the number of suppliers for procurements, thereby encouraging competition among the suppliers and promoting economic efficiency in the process.

(b) It is the purpose of this act to do all of the following:

(i) Encourage greater economic opportunity for women-owned and minority-owned business enterprises;

(ii) Promote competition among regulated public utility suppliers in order to enhance economic efficiency in the procurement of electric, gas, and telephone corporation contracts and contracts of their commission-regulated subsidiaries and affiliates; and

(iii) Clarify and expand the program for the procurement by regulated public utilities of technology, equipment, supplies, services, materials, and construction work from women-owned and minority-owned business enterprises.

NEW SECTION. Sec. 2. For the purposes of sections 3 through 5 of this act, the following definitions apply:

(1) "Women-owned business" means a business enterprise that is at least fifty-one percent owned by a woman or women; or, in the case of any publicly owned business, at least fifty-one percent of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more of those individuals.

(2) "Minority-owned business" means a business enterprise that is at least fifty-one percent owned by a minority group or groups; or, in the case of any publicly owned business, at least fifty-one percent of the stock of which is owned by one or more minority, and whose management and daily business operations are controlled by one or more of those individuals. The contracting utility shall presume that minority includes African-Americans, Hispanic Americans, Native Americans, and Asian-Pacific Americans.

(3) "Control" means exercising the power to make policy decisions.

(4) "Operate" means being actively involved in the day-to-day management and not merely officers or directors.

NEW SECTION. Sec. 3. (1) The commission shall require each electric, gas, and telephone corporation with gross annual revenues exceeding twenty-five million dollars and their commission-regulated subsidiaries and affiliates, to submit annually a detailed and verifiable plan for increasing women-owned and minority-owned business enterprise procurement in all categories.

(2) These annual plans shall include short-term and long-term goals and timetables, but not quotas, and shall include methods for encouraging both prime contractors and grantees to engage women-owned and minority-owned business enterprises in subcontracts in all categories which provide subcontracting opportunities.

(3) The commission shall establish guidelines for all electric, gas, and telephone corporations with gross annual revenues exceeding twenty-five million dollars and their commission-regulated subsidiaries and affiliates, to be utilized in establishing programs pursuant to this section.

(4) Every electric, gas, and telephone corporation with gross annual revenues exceeding twenty-five million dollars shall furnish an annual report to the commission regarding the implementation of programs established pursuant to this section in such form as the commission shall require, and at the time that the commission shall annually designate.

(5) The commission shall provide an annual report to the legislature, by September 1 of each year, on the progress of activities undertaken by each electric, gas, and telephone corporation with gross annual revenues exceeding twenty-five million dollars pursuant to this section in the implementation of women-owned and minority-owned business enterprise development programs. The commission shall recommend a program for carrying out the policy declared in this section, together with recommendations for legislation that it deems necessary or desirable to further that policy.

NEW SECTION. Sec. 4. (1) The commission shall develop and publish regulations setting forth criteria for verifying and determining the eligibility of women-owned and minority-owned business enterprises for procurement contracts.

(2) The commission shall develop, and require every electric, gas, and telephone corporation with gross annual revenues exceeding twenty-five million dollars and their commission-regulated subsidiaries and affiliates to implement, an outreach program to inform and recruit women-owned and minority-owned business enterprises to apply for procurement contracts under this section.

NEW SECTION. Sec. 5. A person or corporation, through its directors, officers, or agent, that falsely represents the business as a women-owned or minority-owned business enterprise in the procurement or attempt to procure contracts from electric, gas, and telephone corporations with gross annual revenues exceeding twenty-five million dollars and their commission-regulated subsidiaries and affiliates pursuant to sections 3 through 5 of this act, shall be punished by a fine of not more than five thousand dollars, or by imprisonment in the county jail for not to exceed one year or in the state prison for not to exceed five years of its directors, officers, or agents responsible for the false statements, or both the fine and imprisonment.

NEW SECTION. Sec. 6. Sections 2 through 5 of this act are each added to chapter 80.04 RCW.