SENATE BILL REPORT

SB 5008

BYSenators McMullen, Lee, Conner and Anderson

Establishing the office of capital projects.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 10, 1989; January 12, 1989

Majority Report:  Do pass as amended and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Murray, Smitherman, West.

Senate Staff:Patrick Woods (786-7430)

                  January 12, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 12, 1989

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 assist Washington businesses in the development of consortiums, assist consortiums in Washington to market their products and services in international markets, compile information on capital project opportunities for Washington businesses, and provide initial assistance to consortiums in securing capital project contracts.

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 or a lending of the state's credit.  The office is prohibited from entering into a binding contract with foreign governments.

The office is scheduled to terminate under the sunset process on June 30, 1994.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

It is clarified that the department may charge reasonable fees for its services.

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

Revenue:    none

Fiscal Note:      requested

Senate Committee - Testified: FOR:  Don Lorentz, Dept. of Trade & Economic Development