"NEW SECTION.  Sec. 1   It is essential that the legislature and state agencies spend tax dollars in a manner that is both responsible and consistent with the best interests of the state and the nation. The legislature and state agencies should, therefore, consider indirect benefits that may be achieved when entering into state contracts for goods and services. Such benefits include, but are not limited to, job creation, capital investment, and economic stimulus. Additionally, such benefits include greater protection of privacy interests, less risk of disclosure of personal information, and avoidance of undue risk.

NEW SECTION.  Sec. 2   The office of financial management, in consultation with representatives of state agency management, business, labor, and agricultural groups, shall develop and implement procurement policies and procedures necessary to determine whether contracts between the state and a private party including, but not limited to, civil service contracts, contracts for public works, personal services, purchased services, information services, highway design and construction, and materials, supplies, and equipment, and any subcontracts awarded under such contracts, are in the best interests of Washington state, its residents, and its economy. These procurement policies and procedures shall require consideration of the following when making decisions to enter into contracts:
     (1) The extent to which the contract, or any subcontract awarded under the contract, will be performed at a location outside the United States;
     (2) The extent to which international trade agreements apply to the contract, or any subcontract awarded under the contract;
     (3) The extent to which awarding the contract to a Washington business will result in job creation or retention or other economic benefits to Washington, its residents, and its economy;
     (4) The extent to which decisions to locate research, development, production, and other facilities in Washington by businesses based in other countries and other states has resulted in job creation and other economic benefits to Washington, its residents, and its economy; and
     (5) The extent to which the contract, or any subcontract awarded under the contract, involves solicitation or disclosure of personal information.

NEW SECTION.  Sec. 3   (1) The office of financial management, in consultation with the departments of general administration, information services, personnel, and other affected agencies, shall develop policies to require that all parties seeking to enter into an agreement with the state of Washington or any of its agencies on any contract subject to section 2 of this act disclose the following:
     (a) The specific services, if any, allowed or required under the contract, that will be performed outside the United States, and the country, if outside the United States, where such services will be performed; and
     (b) Any subcontracting of services performed under the contract and outside of the United States, and the country, if outside the United States, where the services will be provided.
     (2) A contract subject to section 2 of this act shall forbid any party entering into the contract to: (a) Increase the extent of services performed outside the United States beyond the amount previously disclosed by the party without the written consent of the agency; and (b) change the country in which the services are performed without the written consent of the agency.

NEW SECTION.  Sec. 4   The requirement in section 2 of this act that certain types of goods and services under certain contracts, and subcontracts under such contracts, be in the state's best interests does not apply to goods and services:
     (a) Under such contracts if the director of the office of financial management determines that the only practicable source of the goods or services is clearly and justifiably located outside the United States. This exception to the requirement may apply, by way of illustration and not as a limitation, to goods or services related to the establishment and operation of foreign offices created to promote overseas trade and commerce;
     (b) Under a contract entered into under faculty research and study abroad programs authorized by an institution of higher education if an opportunity to consider whether the contract is in the state's best interest does not exist and the amount of the contract is less than fifty thousand dollars; and
     (c) Related to the marketing of Washington state agricultural commodities under contracts entered into by foreign trade representatives or consultants on behalf of the Washington state department of agriculture or by commodity boards or commissions established or formed under Title 15 RCW.
     (2) By September 1st of each year, the director of the office of financial management shall provide the house of representatives commerce and labor committee and the senate labor, commerce, research and development committee, or their successor committees, with a list of contracts entered into in the previous fiscal year for which he or she determined that the only practicable source of the goods or services was clearly and justifiably located outside the United States.

NEW SECTION.  Sec. 5   A new section is added to chapter 39.04 RCW to read as follows:
     Public works contracts entered into by the state under this chapter, and any subcontracts awarded under such contracts, including but not limited to contracts and subcontracts for the fabrication or manufacture of nonstandard items specifically for a public works project, must be in the state's best interests, as specified in section 2 of this act.

NEW SECTION.  Sec. 6   The office of financial management, in consultation with representatives of state agency management, business, labor, and agricultural groups, shall conduct a study of the indirect benefits and costs of adopting procurement policies giving Washington businesses a price preference when determining the lowest responsible bidder on civil service contracts and contracts for public works, personal services, purchased services, information services, highway design and construction, and materials, supplies, and equipment. These benefits shall include, but are not limited to, job creation and retention, capital investment, state and local tax revenue, and economic stimulus. The office of financial management shall report its findings, and any recommendations for legislation adopting procurement policies giving Washington businesses a price preference, to the legislature by December 1, 2005.

NEW SECTION.  Sec. 7   Sections 1 through 4 and 6 of this act constitute a new chapter in Title 39 RCW."