Sponsors: By Representatives Romero, Conway, Hudgins, McCoy, Kenney, Veloria, Dickerson, Hunt, Morris, Morrell, Ormsby, Clibborn, O'Brien, Chase, Haigh, Darneille, Santos and D. Simpson.

Brief Summary of Engrossed Bill

• Creates a joint task force to conduct a study of offshore outsourcing.

• Creates an advisory committee to advise and monitor the joint task force.

• Requires the joint task force to report its findings and recommendations to certain legislative committees by December 1, 2004.

"Offshore outsourcing" is a term sometimes used to describe the practice of contracting with individuals or companies in foreign countries to perform certain work. Both public and private entities may enter into such contracts.

According to the National Conference of State Legislatures, legislation prohibiting or otherwise restricting state agencies from entering into such contracts was introduced in Washington and 26 other states in 2004.

Laws governing state procurement that give preference to domestic goods or prohibit purchasing foreign goods have been challenged on one or more grounds. These include arguments that such laws are: (1) invalid exercises of state power under the Foreign Commerce Clause and/or the Foreign Affairs Power; (2) preempted by federal law; or (3) in violation of international agreements on government procurement.

A joint task force is created to conduct a study of offshore outsourcing. The 16-member joint task force consists of four legislators from each caucus of the Senate and the House of Representatives.

An advisory committee is created to advise and monitor the joint task force. The 10-member advisory committee consists of three representatives of labor, three representatives of business (including one representative of small business), one representative of the Office of the Washington State Trade Representative, one representative of an international human rights organization, one representative of an international environmental protection organization, and one representative of the public.

• The degree to which state contracts are being performed at locations outside the United States;

• The extent to which certain procedures are adequate to protect legislative authority over state procurement;

• The compliance of signatories to such agreements with international and state child labor, environmental protection, human rights, and labor standards;

• The effects of such agreements on domestic preferences adopted by signatories to such agreements;

• The economic benefit of awarding certain state contracts to Washington companies;

• The economic impacts of performing work under certain state contracts in Washington;

• The cost to the state of retraining workers whose positions were outsourced to locations outside the United States, and issues relative to their eligibility for training benefits;

• The extent to which state contracts performed at locations outside the United States involve solicitation or disclosure of personal information; and

• The relationship between state labor market conditions and offshore outsourcing decisions.

The joint task force must report its findings and recommendations to nine legislative committees by December 1, 2004. These committees include the following: the House of Representatives Committees on Commerce & Labor; State Government; Technology, Telecommunications & Energy; and Trade & Economic Development; the Senate Committees on Commerce & Trade; Economic Development; Government Operations & Elections; and Technology & Communications; and the Joint Legislative Oversight Committee on Trade Policy.