SENATE BILL REPORT

SB 5832

BYSenator Bender

Establishing the office of capital projects.

Senate Committee on Economic Development and Labor

Senate Hearing Date(s):February 23, 1987; January 13, 1988

Senate Staff:Patrick Woods (786-7430)

AS OF JANUARY 8, 1988

BACKGROUND:

A considerable number of major urban and rural development projects which are often referred to as "capital projects" are undertaken each year throughout the world.  A large percentage of the projects are funded through international financial institutions such as the World Bank, Africa Bank or Asian Bank, and the projects are of such magnitude as to require the expertise and resources of a consortium of businesses.  Additionally, initial government involvement is often advantageous for businesses attempting to secure contracts for capital projects.

SUMMARY:

A "capital project" is defined as a major urban or rural economic development project, a "consortium" is defined as a group of businesses acting as a unit for the purpose of securing a capital project.

A pilot program named the Office of Capital Projects is established within the Department of Trade and Economic Development.  The office is required to:  (1) Assist Washington State businesses in the development of consortiums; (2) assist consortiums in Washington State to market their products and services in international markets; (3) compile information on capital project opportunities for Washington State businesses; and (4) provide initial assistance to consortiums in securing capital project contracts.

The Office of Capital Projects is required to have a minimum of one full-time employee to administer the office's activities.  The office may seek and receive funds from public and private sectors, and coordinate with other governmental agencies.  It may also charge reasonable fees for the use of its services.  Contracts entered into by consortiums do not constitute a contract with the state of Washington or a lending of the state's credit.  The office is prohibited from entering into a binding contract with foreign governments.

The Director of the Department of Trade and Economic Development is required to report annually to the Legislature on the impact of the office on the state's economy.  The initial report is required to include a short and long-term strategic plan for the office.

Appropriation:    $90,000 is appropriated to the Department of Trade and Economic Development.

Revenue:    none

Fiscal Note:      available