AN ACT Relating to minority and women's business assistance and entrepreneurial development; amending RCW 39.19.010 and 39.19.030; adding a new section to chapter 39.19 RCW; making an appropriation; providing an effective date; and declaring an emergency.

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

Sec. 1. Section 1, chapter 120, Laws of 1983 and RCW 39.19.010 are each amended to read as follows:

The legislature finds that minority and women-owned businesses are significantly under-represented and have been denied equitable competitive opportunities in contracting. It is the intent of this chapter to mitigate societal discrimination and other factors in participating in public works and in providing goods and services and to delineate a policy that an increased level of participation by minority and women-owned businesses is desirable at all levels of state government. The purpose and intent of this chapter are to provide the maximum practicable opportunity for increased participation by minority and women-owned businesses in participating in public works and the process by which goods and services are procured by state agencies and educational institutions from the private sector. The legislature also finds that minority and women entrepreneurs face significant barriers in the development and financing of new enterprises. These include lower access to formal and informal capital sources and to sources for the development of managerial expertise. It is the intent of this chapter to provide assistance to minority and women entrepreneurs in developing business expertise and to aid them in gaining greater access to sources of business capitalization.

Sec. 2. Section 3, chapter 120, Laws of 1983 and RCW 39.19.030 are each amended to read as follows:

There is hereby created the office of minority and women's business enterprises. The governor shall appoint a director for the office, subject to confirmation by the senate. The director may employ a deputy director and a confidential secretary, both of which shall be exempt under chapter 41.06 RCW, and such staff as are necessary to carry out the purposes of this chapter.

The office, with the advice and counsel of the advisory committee on minority and women's business enterprises, shall:

(1) Develop, plan, and implement programs to provide an opportunity for participation by qualified minority and women-owned businesses in public works and the process by which goods and services are procured by state agencies and educational institutions from the private sector;

(2) Develop a comprehensive plan insuring that qualified minority and women-owned businesses are provided an opportunity to participate in public contracts for public works and goods and services;

(3) Identify barriers to equal participation by qualified minority and women-owned businesses in all state agency and educational institution contracts;

(4) Establish annual overall goals for participation by qualified minority and women-owned businesses for each state agency and educational institution to be administered on a contract-by-contract basis or on a class-of-contracts basis;

(5) Develop and maintain a central minority and women's business enterprise certification list for all state agencies and educational institutions. Size of business or length of time in business shall not be considered a prerequisite for the certification list;

(6) Develop, implement, and operate a system of monitoring compliance with this chapter;

(7) Develop, plan, and implement programs whereby women and minority business entrepreneurs may be identified, and whereby appropriate technical assistance in business development, finance, and managerial skills may be provided to them;

(8) Adopt rules under chapter 34.04 or 28B.19 RCW, as appropriate, governing: (a) Establishment of agency goals; (b) development and maintenance of a central minority and women's business enterprise certification program; (c) procedures for monitoring and enforcing compliance with goals, regulations, contract provisions, and this chapter; and (d) utilization of standard clauses by state agencies and educational institutions, as specified in RCW 39.19.050; and

((~~(8)~~)) (9) Submit an annual report to the governor and the legislature outlining the progress and economic impact on the public and private sectors of implementing this chapter.

NEW SECTION. Sec. 3. A new section is added to chapter 39.19 RCW to read as follows:

(1) There is hereby created the minority and women's business development and assistance program in the office of minority and women's business enterprises. The program shall provide technical assistance to minority and women entrepreneurs in order to aid in the development of minority and women-owned business enterprises. The program shall provide management and technical assistance including but not limited to training, counseling, and research services to minority and women entrepreneurs and minority and women-owned businesses.

(2) The program shall cooperate with other state agencies and programs providing business development assistance, including but not limited to the small business development centers created under RCW 28B.30.530, the department of trade and economic development, the community development finance program in the department of community development, the development loan fund created under chapter 43.168 RCW, and the small business export finance assistance center created under chapter 43.210 RCW.

NEW SECTION. Sec. 4. There is hereby appropriated from the general fund for the biennium ending June 30, 1989, to the office of minority and women's business enterprises the sum of three hundred fifty thousand dollars, or so much thereof as may be necessary, for the purposes of this act.

NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.

NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.