BILL REQ. #:  H-3989.2 

Read first time 01/14/10.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to commercial activities by state government agencies; adding a new chapter to Title 43 RCW; and repealing RCW 28B.63.010, 28B.63.020, 28B.63.030, 28B.63.040, and 28B.63.050.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that in the process of governing, the state of Washington should not engage in commercial activity in competition with its citizens. The legislature finds that the competitive enterprise system, characterized by individual freedom and initiative, is the nation's primary source of economic strength, and that the growth of private enterprise is essential to the health, welfare, and prosperity of the citizens of the state of Washington. The legislature further finds that the role of the private sector is to provide commercial products and services for which there is demand in the marketplace, while the role of state agencies is limited to performing functions that are in the public interest and inherently governmental in nature.
     (2) The legislature therefore declares it to be the general policy of the state that state agencies are prohibited from providing to the marketplace for a fee those products or services that could be obtained from a private enterprise.
     (3) This chapter may be known and cited as the freedom from government competition act.

NEW SECTION.  Sec. 2   (1) State agencies are prohibited from engaging in commercial activities for a fee, unless they are granted an exception by the office of financial management.
     (2)(a) By September 1, 2010, the office of financial management shall provide a process for state agencies to seek an exception on a case-by-case basis from the prohibition in subsection (1) of this section.
     (b) The office of financial management may grant an exception under this section only if a state agency presents clear and convincing evidence that private enterprise has no reasonable capacity to undertake the activity.
     (c) By September 1, 2010, the office of financial management shall provide a process, in accordance with all applicable provisions of chapter 34.05 RCW, by which any person who believes that a state agency has violated subsection (1) of this section may file a written complaint with the office. Within thirty days of the complaint being filed, the office of financial management must investigate and respond in writing with its findings and determination.
     (3) Beginning January 1, 2011, and annually thereafter, the office of financial management must report to the legislature on any exceptions made under this section and any complaints filed and determined under this section.

NEW SECTION.  Sec. 3   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commercial activity" means an activity that provides a product or service that could be obtained from a private enterprise.
     (2) "Private enterprise" means an individual, firm, partnership, joint venture, corporation, association, or other legal entity located in the United States that is engaged in business activity for profit.
     (3) "State agency" means any office, board, commission, council, authority, department, agency, institution within the executive branch of state government, or institution of higher education.

NEW SECTION.  Sec. 4   The following acts or parts of acts are each repealed:
     (1) RCW 28B.63.010 (Intent) and 1987 c 97 s 1;
     (2) RCW 28B.63.020 (Definitions) and 1987 c 97 s 2;
     (3) RCW 28B.63.030 (Development of policies and mechanisms for defining and reviewing commercial activities) and 1987 c 97 s 3;
     (4) RCW 28B.63.040 (Criteria for developing policies) and 1987 c 97 s 4; and
     (5) RCW 28B.63.050 (Programs and activities exempt from chapter) and 1987 c 97 s 5.

NEW SECTION.  Sec. 5   Sections 1 through 3 of this act constitute a new chapter in Title 43 RCW.