AN ACT Relating to the development of local marketplace programs; adding a new chapter to Title 43 RCW; making an appropriation; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds and declares that substantial benefits in increased employment and business activity can be obtained by assisting local in-state firms in identifying opportunities to purchase the goods and services they need from local suppliers. The replacement of out-of-state imports with services and manufactured goods produced locally can be an important source of economic growth in a local community. Firms in the state are often unaware that goods and services they purchase from remote suppliers are available from local firms with substantial advantages in responsiveness, service, and price. Increasing the commercial connections between firms in a community can improve the understanding of local communities of their economies and can result in the identification of additional opportunities for successful economic development initiatives. Providing additional information to firms regarding local sources of goods and services can be a particularly valuable component of local revitalization strategies in economically distressed areas. The legislature finds and declares that it is the policy of the state to strengthen the economies of local communities by increasing the commercial connections between local businesses and creating programs to assist firms in identifying local sources of goods and services.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

(1) "Department" means the department of trade and economic development.

(2) "Center" means the business assistance center established under RCW 43.31.083.

(3) "Director" means the director of trade and economic development.

(4) "Local nonprofit organization" means a local nonprofit organization organized to provide economic development or community development services, including but not limited to associate development organizations, economic development councils, and community development corporations.

NEW SECTION. Sec. 3. There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist Washington businesses to competitively meet their needs for goods and services within Washington by providing information relating to the replacement of imports with local products. The program shall place special emphasis on strengthening local economies in economically distressed areas of the state as defined in RCW 82.60.020(3). The Washington marketplace program shall be administered in conjunction with the community revitalization team established pursuant to chapter 43.165 RCW.

NEW SECTION. Sec. 4. (1) The department shall contract with local nonprofit organizations in two locations in the state located within economically distressed areas of the state as defined in RCW 82.60.020(3) to implement the Washington marketplace program at the local level. In contracting with local nonprofit organizations, the department shall:

(a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

(b) Give preference to nonprofit organizations representing a broad spectrum of community support; and

(2) The contracts with local development organizations shall be for the performance of the following services for the Washington marketplace program:

(a) Contacting Washington businesses to identify goods and services they are currently buying or are planning in the future to buy out of state and determine which of these goods and services could be purchased on competitive terms within the state;

(b) Identifying locally produced goods and services which are currently provided by out-of-state firms;

(c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

(d) Advertising market opportunities described in (c) of this subsection;

(e) Receiving bid responses from potential suppliers, tabulating them according to criteria agreed upon in advance with a prospective purchasing business and sending them to that business for final selection;

(f) Assisting and initiating contract agreements for buyers and sellers within the state; and

(g) Charging service fees for businesses that profit as a result of participation in the program.

(3) The center shall contract with no more than two nonprofit organizations located in areas of the state that are not categorized as economically distressed that are operating local import replacement programs to provide technical assistance to nonprofit organizations in economically distressed areas in establishing local marketplace programs.

(4) The center shall also perform the following activities in order to promote the goals of the program:

(a) Preparing promotional materials or conducting seminars to inform communities and organizations about the Washington marketplace program;

(b) Providing technical assistance to communities and organizations interested in developing an import replacement program;

(d) Providing continuing management and technical assistance to local contractors; and

(e) Reporting by December 31 of each year to the legislature describing the activities of the Washington marketplace program.

NEW SECTION. Sec. 5. This chapter shall expire on June 30, 1991, unless extended by law for an additional fixed period of time.

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.

NEW SECTION. Sec. 7. Sections 1 through 5 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 8. The sum of one hundred ten thousand dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the general fund to the department of trade and economic development for the purpose of carrying out this act.