BP BHEAD INT S

AN ACT Relating to avoiding the appearance of favoritism in the state's selection of service providers or underwriters; reenacting and amending RCW 42.17.2401; adding a new section to chapter 43.08 RCW; adding a new section to chapter 43.33 RCW; adding a new section to chapter 43.33A RCW; adding a new section to chapter 39.44 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The purpose of sections 2 through 5 of this act is to avoid the appearance or perception that favoritism, special dealing, or political considerations may be involved in decisions relating to the state's selection of service providers or underwriters.

NEW SECTION. Sec. 2. A new section is added to chapter 43.08 RCW to read as follows:

(1) Except as provided in subsection (3) of this section, the state treasurer may not enter into an agreement or contract for the services of an underwriter or service provider that has made a contribution reportable under chapter 42.17 RCW to the state treasurer during the current or preceding election cycle.

(2) Except as provided in subsection (3) of this section, the state treasurer may not enter into an agreement or contract for the services of an underwriter or service provider that will not, as a condition of entry to the agreement or contract, certify that it will not make a contribution reportable under chapter 42.17 RCW to a candidate for the office of state treasurer during the period beginning on the date of entry into the agreement or contract and ending one year after the date the agreement or contract has been revoked or otherwise become inoperative.

(3) This section does not apply to agreements or contracts entered into through competitive solicitation.

(4) As used in this section:

(a) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria that may include such factors as the service provider or underwriter's fees or costs, ability, capacity, experience, reputation, responsiveness to time limitations, responsiveness to solicitation requirements, quality of previous performance, and compliance with statutes and rules relating to contracts or services.

(b) "Service provider" means an individual or firm that provides legal or financial advisory assistance to the state or to another service provider or underwriter, for compensation. The term includes agents, legal counsel, officers, principals, and professional employees of the service provider, but only from the date the individual or firm becomes employed or is retained as an agent, legal counsel, officer, principal, or professional employee of the service provider.

(c) "Underwriter" means an individual or firm that initially purchases a new issue of bonds from the state by a negotiated sale. The term includes agents, legal counsel, officers, principals, and professional employees of the underwriter, but only from the date the individual or firm becomes employed or is retained as an agent, legal counsel, officer, principal, or professional employee of the underwriter.

NEW SECTION. Sec. 3. A new section is added to chapter 43.33 RCW to read as follows:

(1) Except as provided in subsection (3) of this section, the state finance committee may not enter into an agreement or contract for the services of an underwriter or service provider that has made a contribution reportable under chapter 42.17 RCW to a member of the state finance committee during the current or preceding election cycle.

(2) Except as provided in subsection (3) of this section, the state finance committee may not enter into an agreement or contract for the services of an underwriter or service provider that will not, as a condition of entry to the agreement or contract, certify that it will not make a contribution reportable under chapter 42.17 RCW to a candidate for the office of state treasurer, lieutenant governor, or governor during the period beginning on the date of entry into the agreement or contract and ending one year after the date the agreement or contract has been revoked or otherwise become inoperative.

(3) This section does not apply to agreements or contracts entered into through competitive solicitation.

(4) As used in this section:

NEW SECTION. Sec. 4. A new section is added to chapter 43.33A RCW to read as follows:

(1) Except as provided in subsection (3) of this section, the state investment board may not enter into an agreement or contract for the services of a service provider that has made a contribution reportable under chapter 42.17 RCW to a member of the state investment board during the current or preceding election cycle.

(2) Except as provided in subsection (3) of this section, the state investment board may not enter into an agreement or contract for the services of a service provider that will not, as a condition of entry to the agreement or contract, certify that it will not make a contribution reportable under chapter 42.17 RCW to a candidate for state office during the period beginning on the date of entry into the agreement or contract and ending one year after the date the agreement or contract has been revoked or otherwise become inoperative.

(3) This section does not apply to agreements or contracts entered into through competitive solicitation.

(4) As used in this section:

NEW SECTION. Sec. 5. A new section is added to chapter 39.44 RCW to read as follows:

(1) Except as provided in subsection (3) of this section, no county, city, town, political subdivision, or other municipal or quasi-municipal corporation authorized to issue revenue bonds may enter into an agreement or contract for the services of an underwriter or service provider that has made a contribution reportable under chapter 42.17 RCW to an elected official of that unit of government during the current or preceding election cycle.

(2) Except as provided in subsection (3) of this section, no county, city, town, political subdivision, or other municipal or quasi-municipal corporation authorized to issue revenue bonds may enter into an agreement or contract for the services of an underwriter or service provider that will not, as a condition of entry to the agreement or contract, certify that it will not make a contribution reportable under chapter 42.17 RCW to a candidate for office in that unit of government during the period beginning on the date of entry into the agreement or contract and ending one year after the date the agreement or contract has been revoked or otherwise become inoperative.

(3) This section does not apply to agreements or contracts entered into through competitive solicitation.

(4) As used in this section:

Sec. 6. RCW 42.17.2401 and 1993 sp.s. c 2 s 18, 1993 c 492 s 488, and 1993 c 281 s 43 are each reenacted and amended to read as follows:

For the purposes of RCW 42.17.240, the term "executive state officer" includes:

(1) The chief administrative law judge, the director of agriculture, the administrator of the office of marine safety, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community and technical colleges, the director of community, trade, and economic development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the director of the energy office, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the executive secretary of the horse racing commission, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, ((~~the director of trade and economic development,~~)) the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;

(2) Each professional staff member of the office of the governor;

(3) Each professional staff member of the legislature; ((~~and~~))

(4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community and technical colleges, state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, each member of the Washington health services commission, higher education coordinating board, higher education facilities authority, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, liquor control board, lottery commission, marine oversight board, ((~~oil and gas conservation committee,~~)) Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, public employees' benefits board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington personnel resources board, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and fish and wildlife commission; and

(5) Within the office of the state treasurer the following professional staff members: Assistant treasurer, deputy treasurer, legal counsel, and investment officer.

NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.