"NEW SECTION.  Sec. 1   The legislature finds that it is in the state's economic interest and serves a public purpose to promote and facilitate the fullest possible participation by Washington businesses of all sizes in the process by which goods and services are purchased by the state. The legislature further finds that large businesses have the resources to participate fully and effectively in the state's purchasing system, and because of many factors, including economies of scale, the purchasing system tends to create a preference in favor of large businesses and to disadvantage small businesses. The legislature intends, therefore, to assist, to the maximum extent possible, small businesses to participate in order to enhance and preserve competitive enterprise and to ensure that small businesses have a fair opportunity to be awarded contracts or subcontracts for goods and services purchased by the state.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.19 RCW to read as follows:
     (1) Purchasing agencies, including institutions of higher education, must establish and implement a plan to increase the number of small businesses annually receiving state contracts for goods and services purchased by the state. The goal of the plan must be to have the number of small businesses receiving state contracts in 2013 be at least fifty percent higher, and in 2015 be at least one hundred percent higher, than the number of contracts awarded to small businesses in 2010.
     (2) To facilitate the participation of small business in the provision of goods and services to the state, including purchases under chapters 39.29 and 43.105 RCW, the state purchasing and material control director, under the powers granted by RCW 43.19.190 through 43.19.1939, and all state purchasing agencies, including institutions of higher education, operating under delegated authority granted under RCW 43.19.190 or 28B.10.029, must give assistance to small businesses by providing opportunities for the agency to answer vendor questions about the bid solicitation requirements in advance of the bid due date and, upon request after the contract award, for the agency to hold a debriefing to assist the vendor in understanding how to improve his or her responses for future competitive procurements.
     (3) Purchasing agencies, including institutions of higher education, must adopt rules deemed necessary by the executive head of the agency or its board, as applicable, to implement this section. Such rules must include a set of measurable data to identify the effects the technical assistance under this section is having on the number of small businesses annually receiving state contracts for goods and services purchased by the state.
     (4) As used in this section:
     (a) "Purchasing agencies" are limited to the department of general administration, the department of information services, and the department of transportation.
     (b) "In-state business" has the same meaning as defined in RCW 39.29.006.
     (c) "Small business" has the same meaning as defined in RCW 39.29.006.

Sec. 3   RCW 39.29.006 and 2009 c 486 s 6 are each amended to read as follows:
     As used in this chapter:
     (1) "Agency" means any state office or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional, and other types of institutions.
     (2) "Client services" means services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.
     (3) "Common vendor registration and bid notification system" means the internet-based vendor registration and bid notification system maintained by and housed within the department of general administration. The requirements contained in chapter 486, Laws of 2009 shall continue to apply to this system, regardless of future changes to its name or management structure.
     (4) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria which may include such factors as the consultant'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. "Competitive solicitation" includes posting of the contract opportunity on the state's common vendor registration and bid notification system.
     (5) "Consultant" means an independent individual or firm contracting with an agency to perform a service or render an opinion or recommendation according to the consultant's methods and without being subject to the control of the agency except as to the result of the work. The agency monitors progress under the contract and authorizes payment.
     (6) "Emergency" means a set of unforeseen circumstances beyond the control of the agency that either:
     (a) Present a real, immediate threat to the proper performance of essential functions; or
     (b) May result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
     (7) "Evidence of competition" means documentation demonstrating that the agency has solicited responses from multiple firms in selecting a consultant. "Evidence of competition" includes documentation that the agency has posted the contract opportunity on the state's common vendor registration and bid notification system.
     (8) "In-state business" means a business that has its principal office located in Washington.
     (9) "Personal service" means professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. This term does not include purchased services as defined under subsection (((10))) (11) of this section. This term does include client services.
     (((9))) (10) "Personal service contract" means an agreement, or any amendment thereto, with a consultant for the rendering of personal services to the state which is consistent with RCW 41.06.142.
     (((10))) (11) "Purchased services" means services provided by a vendor to accomplish routine, continuing and necessary functions. This term includes, but is not limited to, services acquired under RCW 43.19.190 or 43.105.041 for equipment maintenance and repair; operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis.
     (((11))) (12) "Small business" means an in-state business, including a sole proprietorship, corporation, partnership, or other legal entity, that: (a) Certifies, under penalty of perjury, that it is owned and operated independently from all other businesses and has either (((a))) (i) fifty or fewer employees, or (((b))) (ii) a gross revenue of less than seven million dollars annually as reported on its federal income tax return or its return filed with the department of revenue over the previous three consecutive years((. As used in this definition, "in-state business" means a business that has its principal office located in Washington and its officers domiciled in Washington)); or (b) is certified under chapter 39.19 RCW.
     (((12))) (13) "Sole source" means a consultant providing professional or technical expertise of such a unique nature that the consultant is clearly and justifiably the only practicable source to provide the service. The justification shall be based on either the uniqueness of the service or sole availability at the location required."