"NEW SECTION.  Sec. 1   A new section is added to chapter 39.10 RCW to read as follows:
     (1) The capital projects review board is created in the office of financial management to provide ongoing oversight and evaluation of public capital projects construction processes, including the impact of contracting methods on project outcomes, and to advise the legislature on policies related to major public works delivery methods.
     (2)(a) The capital projects review board shall consist of the following members appointed by the governor: One representative from construction general contracting; one representative from the design industries; two representatives from construction specialty subcontracting; one representative from a construction trades labor organization; one representative from the office of minority and women's business enterprises; one representative from a higher education institution; one representative from the department of general administration; and one representative of a domestic insurer authorized to write surety bonds for contractors in Washington state. All appointed members must be actively engaged in or authorized to use alternative public works contracting procedures.
     (b) Two members shall be at-large positions representing local public owners. The two at-large positions shall serve on a rotating basis to be determined and appointed by the association of Washington cities, the Washington state association of counties, and the Washington public ports association.
     (c) One member shall be a member of the public hospital district project review board, selected by that board, who shall be nonvoting.
     (d) One member shall be a member of the school district project review board, selected by that board, who shall be nonvoting.
     (e) The executive officer of the review board, as named in subsection (10) of this section, shall serve as a nonvoting member.
     (f) The review board shall include two members of the house of representatives, one from each major caucus, appointed by the speaker of the house of representatives, and two members of the senate, one from each major caucus, appointed by the president of the senate. Legislative members are nonvoting.
     (3) Members selected under subsection (2)(a) of this section shall serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial members, four members shall serve four-year terms, four members shall serve three-year terms, and three members shall serve a two-year term, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.
     (4) The capital projects review board chair is selected from among the appointed members by the majority vote of the voting members.
     (5) The capital projects review board may adopt rules as necessary to carry out the duties set forth in this act.
     (6) Legislative members of the capital projects review board shall be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members of the capital projects review board, including any subcommittee members, except those representing an employer or organization, shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.
     (7) If a vacancy occurs of the appointive members of the board, the governor shall fill the vacancy for the unexpired term. Members of the board may be removed for malfeasance or misfeasance in office, upon specific written charges by the governor, under chapter 34.05 RCW.
     (8) The capital projects review board shall convene as soon as practical after July 1, 2005, and may meet as often as necessary thereafter.
     (9) Capital projects review board members are expected to consistently attend review board meetings. The chair of the capital projects review board may ask the governor to remove any member who misses more than two meetings in any calendar year without cause.
     (10) The office of financial management shall employ a director of the review board. The director shall be the executive officer of the review board and shall administer the provisions of this act. The office of financial management shall provide additional staff support as may be required for the proper discharge of the function of the capital projects review board.
     (11) The capital projects review board may establish subcommittees as it desires and may invite nonmembers of the capital projects review board to serve as committee members.
     (a) The school district project review board shall be a subcommittee of the capital projects review board and shall approve projects as outlined in RCW 39.10.115.
     (b) The public hospital district project review board shall be a subcommittee of the capital projects review board and shall approve projects as outlined in RCW 39.10.117.
     (12) The committee shall encourage participation from persons and entities not represented on the capital projects review board.
     (13) For purposes of this act, major capital projects are projects estimated to cost over five million dollars.

NEW SECTION.  Sec. 2   A new section is added to chapter 39.10 RCW to read as follows:
     The capital projects review board has the following powers and duties:
     (1) Provide ongoing analysis and evaluation of the use of the traditional public works procedures and alternative public works contracting procedures authorized under this chapter and evaluate the potential future use of other alternative contracting procedures including competitive negotiation contracts;
     (2) Ensure that consistent, reliable, and standardized project information is gathered and used to analyze the impact of contracting policies on the outcome of major capital projects. The review board shall, in consultation with the office of financial management, develop standardized statewide performance indicators and benchmarks for all major capital projects. These measures should, at a minimum, allow basic comparisons of project performance by type, scope, cost, schedule, quality, and contracting procedure. To avoid unnecessary duplication, use of these indicators and benchmarks should be incorporated into, or derived from, existing state and local agency reports to the greatest extent possible;
     (3) Establish criteria that may be used to determine effective and feasible use of alternative contracting procedures;
     (4) Develop and recommend to the legislature qualification standards for general contractors bidding on alternative public works projects;
     (5) Develop and recommend to the legislature policies to further enhance the quality, efficiency, and accountability of major capital construction projects through the use of traditional and alternative delivery methods in Washington, and make recommendations regarding expansion, continuation, elimination, or modification of the alternative public works contracting methods;
     (6) Public bodies using the alternative contracting procedures authorized under this chapter shall provide any requested information concerning implementation of projects under this chapter to the committee in a timely manner, excepting any trade secrets or proprietary information;
     (7) Encourage the transfer of knowledge through formal or informal mentoring opportunities and the development of model documents or guidelines that incorporate lessons learned from previous state and local projects; and
     (8) Periodically assess the use of alternative dispute resolution processes in public works projects to determine their effectiveness at resolving conflicts and disputes before they reach litigation and, if necessary, recommend to the legislature modifications of state policy. The review board may work with public and private dispute resolution organizations to inform agencies about effective methods of incorporating dispute resolution mechanisms into their public works projects.

NEW SECTION.  Sec. 3   A new section is added to chapter 39.10 RCW to read as follows:
     Notwithstanding any other provision of law, and after complying with RCW 39.10.030, any city that: (1) is located in a county authorized under this chapter to use alternative public works procedures; (2) reports in the state auditor's local government financial reporting system combined general fund, special revenue, debt service, capital projects, and enterprise funds revenues that exceed sixty million dollars; and (3) has a population greater than twenty- five thousand but less then forty-five thousand, is authorized to use the general contractor/construction manager or design-build procedure for one demonstration project valued over ten million dollars.
     All contracts authorized under this section must be entered into before January 1, 2006.

NEW SECTION.  Sec. 4   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2005, in the omnibus appropriations act, sections 1 and 2 of this act are null and void."