5569-S

AN ACT Relating to international development and capital projects; adding new sections to chapter 43.330 RCW; adding new sections to chapter 43.131 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. A large number of major capital projects are undertaken each year throughout the world on which United States businesses are eligible to submit bids. These projects pertain to urban and rural infrastructure, environmental quality, and public health improvement. Many such projects are a vital component of a nation's efforts to achieve sustainable economic development, environmental quality, and public health. Certain of these projects are of such magnitude as to require the expertise and resources of a consortium of businesses. Frequently, government-to-government involvement fosters a positive business climate for securing contracts for capital projects.

Washington state, due to its diversified economy, comprehensive service and public sectors, and internationally renowned institutions of higher education is uniquely situated to assist in the orderly and effective development of other nations. It is the intent of the legislature to facilitate Washington business initiatives to build long-term, mutually beneficial relationships in other countries.

NEW SECTION. Sec. 2. (1) "Capital project" means a major urban or rural economic development project including, but not limited to, transportation, ports, public facilities, power plants, irrigation systems, resorts, sewage systems, water systems, air and water quality systems, telecommunications, data processing, national historic preservation, and habitat restoration.

(2) "Consortium" means a partnership, copartnership, joint venture, joint stock company, business trust, corporation, association, or any group of businesses acting as a unit for the purpose of securing a capital project.

NEW SECTION. Sec. 3. The office of capital projects is established as a project within the department. The office shall:

(1) Assist consortium and Washington state businesses in successfully bidding on international and domestic capital projects;

(2) Assist businesses in the formation of consortiums, when appropriate, that have the range of services and technical skills to compete for capital projects;

(3) Assist consortiums and businesses to market their services and products in international markets;

(4) Assist consortiums and businesses to access information on capital project opportunities including:

(a) Identifying those types of businesses with the type and level of expertise to participate in various types of capital projects; and

(b) Identifying the type of capital projects and international markets that have the greatest potential for consortiums and businesses to provide products and services;

(5) Provide information to consortiums and businesses on the purpose and services of the office of capital projects;

(6) Provide initial assistance to consortiums and businesses in bidding on capital project contracts, including such intergovernmental contacts as considered appropriate with countries or regions where capital projects are proposed;

(7) Provide information to consortiums and businesses on trade tariffs, quotas, government regulations, project financing, or other special procedural aspects of participating in international trade;

(8) Provide foreign nations or their units of government information on public and private sector policies and practices to enhance economic development, manage natural resources, and improve the environment and quality of life for their citizens, and on other related matters deemed appropriate by the director; and

(9) Cooperate with other state, federal, and local agencies, the private sector, and institutions of higher education in facilitating informational tours and exchange programs in order to develop economic, social, and public sector relationships.

NEW SECTION. Sec. 4. The director of the department, through the office of capital projects:

(1) May receive funds, coordinate with other governmental agencies, and carry out such other duties as are deemed necessary to implement section 3 of this act;

(2) May receive such gifts, grants, and endowments from private or public sources as may be made available in trust or otherwise for the use and benefit of the office of capital projects, and expend the same, or any income therefrom, according to the terms of gifts, grants, or endowments;

(3) May charge reasonable fees or other appropriate charges for using the services of the office of capital projects, for attendance at workshops and conferences sponsored by the office, and for various publications, materials, and services of the office. These fees shall be charged to defray the costs of operation of the office of capital projects;

(4) May actively seek cooperation and funding from the private sector;

(5) May contract with public or private entities to provide all or part of the services under this chapter; and

(6) Appoint an advisory committee comprised of individuals with expertise in capital projects and international business to advise the office on program priorities and effectiveness.

NEW SECTION. Sec. 5. Contracts entered into by consortiums do not constitute a contract with the state of Washington, and do not incur a liability, obligation, pledge of faith, or credit of the state of Washington.

NEW SECTION. Sec. 6. The office of capital projects is prohibited from entering into any legal or otherwise binding contract with foreign governmental units or consortiums in relation to a capital project. The office shall make a good faith effort to provide information about its services to all businesses in the state that have good potential to benefit from them.

NEW SECTION. Sec. 7. The office of capital projects shall cooperate with the Pacific Northwest economic region office and its member states and provinces of Oregon, Idaho, Montana, Alaska, British Columbia, and Alberta. Cooperation in the provision of services may be temporary and subject to the payment of fees, subject to negotiation by the office of capital projects.

NEW SECTION. Sec. 8. Before the termination of the office pursuant to section 11 of this act the office of capital projects shall provide to the governor and the legislature a report on costs to the state resulting from the operation of the program as well as any employment growth, increased business sales, and increased revenue attributable directly or indirectly to the program, along with any other program impacts.

The report shall address: The number of firms assisted; the type of assistance provided to each firm; the types of businesses assisted as classified by the standard industrial classification manual; the size and the age of each firm assisted; the number of minority and women-owned businesses assisted; the number of assisted firms in distressed areas of the state; the number of jobs created or retained in each firm as a result of the program's assistance; the wage rates of jobs retained or new jobs created as a result of the program; the results of client satisfaction surveys completed by firms assisted by the program; and sales volume trends for each firm assisted by the program.

NEW SECTION. Sec. 9. The department, the international business division of the department of agriculture, the Pacific Northwest economic region, state, federal, and local governments, institutions of higher education, and the Washington state export assistance center are encouraged to actively promote and support the efforts of the office of capital projects to achieve the goals of section 3 of this act.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act are each added to chapter 43.330 RCW.

NEW SECTION. Sec. 11. A new section is added to chapter 43.131 RCW to read as follows:

The office of capital projects and its powers and duties shall be terminated on June 30, 2001, as provided in section 12 of this act.

NEW SECTION. Sec. 12. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2002:

(1) RCW 43.330.--- and 1995 c . . . s 1 (section 1 of this act);

(2) RCW 43.330.--- and 1995 c . . . s 2 (section 2 of this act);

(3) RCW 43.330.--- and 1995 c . . . s 3 (section 3 of this act);

(4) RCW 43.330.--- and 1995 c . . . s 4 (section 4 of this act);

(5) RCW 43.330.--- and 1995 c . . . s 5 (section 5 of this act);

(6) RCW 43.330.--- and 1995 c . . . s 6 (section 6 of this act);

(7) RCW 43.330.--- and 1995 c . . . s 7 (section 7 of this act);

(8) RCW 43.330.--- and 1995 c . . . s 8 (section 8 of this act); and

(9) RCW 43.330.--- and 1995 c . . . s 9 (section 9 of this act).

NEW SECTION. Sec. 13. The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the general fund to the department of community, trade, and economic development for the purposes of this act.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.