BILL REQ. #:  H-1313.1 

Read first time 02/03/2005.   Referred to Committee on Commerce & Labor.

     WHEREAS, Offshore outsourcing of public and private sector jobs has created concern about job loss in Washington; and
     WHEREAS, Some contracts entered into by state agencies are being performed, in whole or in part, outside the United States; and
     WHEREAS, The legislature is concerned that these state contracts are being entered into with little, if any, legislative oversight; and
     WHEREAS, Offshore outsourcing of private sector jobs is creating concern about unemployment in our state and demands on our public services; and
     WHEREAS, Offshore outsourcing of public and private sector work may be eroding job opportunities and continuing to affect Washington families and communities already suffering from high unemployment and a jobless recovery; and
     WHEREAS, Offshore outsourcing may put at risk the privacy of medical records, financial data, and other personal information of Washington citizens; and
     WHEREAS, Offshore outsourcing may impact state and local tax revenues needed to provide for the basic education, as well as to protect the public health and safety, of Washington citizens; and
     WHEREAS, Offshore outsourcing may result in transfers of knowledge and core functions that curb entrepreneurial activities and limit technological innovation essential to the future economic success of Washington businesses; and
     WHEREAS, The legislature invests significant public resources in work force training and retraining, and wants to ensure that students and workers who benefit from these investments have opportunities to climb career ladders from entry-level jobs to family-wage jobs, and to enjoy the prosperity that is the American dream; and
     WHEREAS, The legislature has also invested significant public resources in business development, recruitment, and retention, and wants to ensure that corporations that benefit from these investments are accountable to the legislature and the citizens of Washington state; and
     WHEREAS, The legislature is concerned about and wants to examine the potential consequences of offshore outsourcing;
     NOW, THEREFORE, BE IT RESOLVED, By the House of Representatives of the state of Washington, the Senate concurring, That a study of offshore outsourcing be conducted to evaluate the following issues:
     The degree to which state contracts, and any subcontracts awarded under such contracts, are being performed at locations outside the United States;
     The extent to which the following are adequate to protect legislative authority over state procurement: The process for making and extending the state's commitments under the agreement on government procurement of the world trade organization and other international trade agreements; and the exceptions in the agreement on government procurement of the world trade organization and other international trade agreements;
     The applicability of international trade agreements to state procurement policies;
     The compliance of signatories to such agreements with international and state child labor, environmental protection, human rights, and labor standards;
     The effects of such agreements on domestic preferences adopted by signatories to such agreements;
     The economic benefit of awarding personal services, purchased services, civil service, and public works contracts to Washington companies, including: The number of total employment positions; the number of full-time, part-time, and temporary employment positions as a percent of total employment; the number of employment positions earning less than twenty thousand dollars, between twenty thousand dollars and thirty thousand dollars, between thirty thousand dollars and forty thousand dollars, between forty thousand dollars and fifty thousand dollars, between fifty thousand dollars and sixty thousand dollars, and more than sixty thousand dollars; and the number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands;
     The economic impacts of performing work under personal services, purchased services, civil service, and public works contracts in Washington, including: The multiplier effect on state and local tax revenues; and the multiplier effect on state and local employment levels;
     The cost to the state of retraining workers who are separated from employment because their positions were outsourced to locations outside the United States, and issues relative to their eligibility for training benefits under RCW 50.22.150;
     The extent to which state contracts performed at locations outside the United States involve solicitation or disclosure of personal information; and
     The relationship between state labor market conditions, including unemployment rate and implications for trade-dependent industries, and offshore outsourcing decisions; and
     BE IT FURTHER RESOLVED, That the study be conducted by a joint task force of the House of Representatives and the Senate consisting of the following: Four representatives to be appointed by the Speaker of the House of Representatives, four representatives to be appointed by the minority leader of the House of Representatives, four senators to be appointed by the majority leader of the Senate, and four senators to be appointed by the minority leader of the Senate; and
     BE IT FURTHER RESOLVED, That the joint task force, in conjunction with the private sector, consult with and be advised and monitored by an advisory committee consisting of ten members: Three members representing labor, appointed jointly by the President of the Senate and the Speaker of the House of Representatives, from a list of names recommended by a statewide organization representing a cross-section and majority of organized labor in the state; three members representing business, one of whom shall represent small business, appointed jointly by the President of the Senate and the Speaker of the House of Representatives, from a list of names recommended by a statewide organization of employers representing a majority of employers of the state; one member representing the office of the Washington state trade representative; one member representing an international human rights organization; one member representing an international environmental protection organization; and one member representing the public; and
     BE IT FURTHER RESOLVED, That the findings and recommendations of the joint task force shall be reported to the house of representatives committees on commerce and labor, state government, operations and accountability, technology, energy and communications, economic development, agriculture and trade, and the senate committees on labor, commerce, research and development, international trade and economic development, and government operations and elections, or their successor committees, by December 1, 2005.