AN ACT Relating to government competition with private business; adding a new chapter to Title 43 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1. As used in this chapter:

(1) "Private enterprise" means an individual, firm, partnership, joint venture, corporation, association or any other legal entity engaging in the manufacturing, processing, sale, offering for sale, rental, leasing, delivery, dispensing, distributing, or advertising of goods or services for profit.

(2) "State agency" means any department, office, commission, institution, board, or other agency of the state regardless of whether moneys are appropriated to the agency.

NEW SECTION. Sec. 2. (1) A state agency shall not engage in the manufacturing, processing, sale, offering for sale, rental, leasing, delivery, dispensing, distributing, or advertising of goods or services to the public which are also offered by private enterprise, unless clearly authorized by law other than administrative rules or executive orders.

(2) A state agency shall not offer or provide goods or services to the public for or through another state agency or a local agency, including by intergovernmental or interagency agreement, in violation of the provisions of this chapter.

(3) The restrictions on activities which compete with private enterprise contained in this section do not apply to:

(a) The development, operation, and management of state parks and historical monuments;

(b) Institutions and agencies under the jurisdiction of the state board of education;

(c) Printing and distributing information to the public when the agency is otherwise authorized to do so, and printing or copying public records or other material relating to the public agency's public business, and recovering through fees and charges the costs of such printing, copying, and distribution; and

(d) Law enforcement agencies and penal institutions.

NEW SECTION. Sec. 3. (1) A private enterprise review board is hereby established in the office of the governor composed of the following members:

(a) The director or chief administrative officer of one state department, appointed by the governor;

(b) Six members engaged in private enterprise, at least three of whom represent the small business community. The speaker of the house of representatives, the president pro tempore of the senate and the governor shall each appoint two members, and of the two appointed by each at least one shall be a representative of the small business community;

(c) Two advisory members from the house of representatives appointed by the speaker of the house, one of whom shall be a member of the appropriations committee;

(d) Two advisory members from the senate appointed by the president pro tempore of the senate, one of whom shall be a member of the finance committee.

(2) For the purposes of this section, "advisory member" means a member who gives advice to the other members of the private enterprise review board at meetings of the board but who is not eligible to vote, and is not a member for purposes of determining whether a quorum is present.

(3) Terms of appointment to the board are for two years, unless an advisory member or administrative officer of a state agency ceases to hold such office. In that case, the appointing authority shall appoint a replacement member for the balance of the unexpired term.

(4) Members of the board appointed pursuant to subsection (1)(b) of this section shall be compensated as provided in RCW 43.03.240.

(5) The board shall:

(a) Select a chairman from among its members;

(b)Meet at least two times each year at the state capitol and hold additional hearings as may be necessary on the call of the chairman;

(d) Transmit complaints received under (c) of this subsection to the state agency alleged to be in violation. The agency shall respond to the board in writing within forty-five days, denying or concurring with the complaint and indicating any necessary and contemplated remedial measures. The board may hold public hearings on complaints;

(e) Within sixty days of receiving the agency's response, issue a written report of its findings to the complainant; and

(f) Transmit a complete report of each meeting and public hearing to each member of the legislature and the governor.

(6) The board may, upon its own motion, evaluate and review opportunities to contract with private enterprise that are deemed to be in the public interest. The public agencies offering services subject to review shall be involved as participants in the evaluation process. The recommendations of the board shall be transmitted to the legislature and the governor. The board may hold public hearings as a part of its evaluation process.

(7) At the request of the board, the department of trade and economic development shall provide such staff support as is reasonably necessary to carry out its duties.

(8) Notwithstanding the provisions for relief prescribed in this section, an aggrieved person may elect to directly seek judicial relief.

NEW SECTION. Sec. 4. Sections 1 through 3 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 5. 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. 6. 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 immediately.