AN ACT Relating to international trade assistance; amending RCW 43.210.010, 43.210.020, 43.210.030, 43.210.040, and 43.210.050; amending section 7, chapter 20, Laws of 1983 1st ex. sess. (uncodified); creating new sections; and declaring an emergency.

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

Sec. 1. Section 1, chapter 20, Laws of 1983 1st ex. sess. and RCW 43.210.010 are each amended to read as follows:

The legislature finds:

(1) The exporting of goods and services from Washington to international markets ((~~is an~~)) and the importing of international goods through Washington ports are important ((~~stimulus~~)) economic stimuli to the growth ((~~and~~)), development, and stability of ((~~many~~)) the state's businesses, ((~~and the economic activities associated with exporting make an important contribution to the economic well-being of the state~~)) and that this economic activity creates needed jobs for Washingtonians.

(2) Impediments to the entry of many small and medium-sized businesses into export or import markets have restricted growth in exports from and imports to the state.

(3) Particularly significant impediments for many small and medium-sized businesses are the lack of easily accessible information about export and import opportunities and export and import financing alternatives((~~, and the limited availability of export financing at reasonable costs from conventional financing sources for many small and medium-sized businesses~~)).

(4) There is a need for an ((~~export~~)) international trade assistance center which will specialize in providing export and import assistance to small and medium-sized businesses throughout the state ((~~in the financing of export transactions and~~)) in acquiring information about export opportunities and financial alternatives for exporting and importing.

Sec. 2. Section 2, chapter 20, Laws of 1983 1st ex. sess. and RCW 43.210.020 are each amended to read as follows:

A nonprofit corporation, to be known as the ((~~export~~)) trade assistance center, and branches subject to its authority, may be formed under chapter 24.03 RCW for the following public purposes:

(1) To assist small and medium-sized businesses in the financing or obtaining financing of export or import transactions.

(2) To provide, singly or in conjunction with other organizations, information to these businesses about export or import opportunities and export or import financing alternatives.

(3) To provide information to and assist those businesses interested in exporting or importing products, including the opportunities available to them in organizing export trading companies under the United States export trading company act of 1982, for the purpose of increasing their comparative sales volume and ability to export their products to foreign markets.

Sec. 3. Section 3, chapter 20, Laws of 1983 1st ex. sess. and RCW 43.210.030 are each amended to read as follows:

The ((~~export~~)) trade assistance center and its branches shall be governed and managed by a board of ((~~eleven~~)) seventeen directors appointed by the governor from nominees of the house of representatives and confirmed by the senate. The directors shall serve terms of six years except that two of the original directors shall serve for two years and two of the original directors shall serve for four years. The directors may provide for the payment of their expenses. The directors shall include a representative of a not-for-profit corporation formed for the purpose of facilitating economic development, ((a)) at least two representatives of ((a)) state financial institutions engaged in the financing of export and import transactions, a representative of a port district, and a representative of organized labor. Of the remaining board members, there shall be a representative of the governor, ((~~and four representatives of businesses: (a)~~)) one representative of business from the area west of Puget Sound, ((~~(b)~~)) one representative of business from the area east of Puget Sound and west of the Cascade range, ((~~(c)~~)) one representative of business from the area east of the Cascade range and west of the Columbia river, and ((~~(d)~~)) one representative of business from the area east of the Columbia river. One of the directors shall be a representative of the public selected from the area in the state west of the Cascade mountain range and one director shall be a representative of the public selected from that area of the state east of the Cascade mountain range. One director shall be a representative of the public at large. The directors shall be broadly representative of geographic areas of the state, and the ((~~three~~)) representatives of businesses shall represent at least four different industries in different sized businesses as follows: (a) One representative of a company employing fewer than one hundred persons; (b) one representative of a company employing between one hundred and five hundred persons; and (c) two representatives of companies employing more than five hundred persons. Any vacancies on the board shall be filled by appointment by the governor for the unexpired term. Upon expiration of the terms of each of the original directors, the governor shall appoint such new directors for six-year terms from nominees from the house of representatives, subject to confirmation by the senate.

Sec. 4. Section 4, chapter 20, Laws of 1983 1st ex. sess. and RCW 43.210.040 are each amended to read as follows:

(1) The ((~~export~~)) trade assistance center formed under RCW 43.210.020 and 43.210.030 shall have the powers granted under chapter 24.03 RCW. In exercising such powers, the center may:

(a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other sources to carry out its purposes;

(b) Make loans to businesses with annual sales of twenty-five million dollars or less for the purpose of financing exports or imports of goods or services by those businesses to buyers in foreign countries. Loans by ((~~an export~~)) the trade assistance center under this chapter shall not compete with nor be a substitute for available loans by a bank or other financial institution and shall only be considered upon a financial institution's assurance that such loan is not available;

(c) Provide loan guarantees on loans made by financial institutions to businesses with annual sales of one hundred million dollars or less for the purpose of financing exports of goods or services by those businesses to buyers in foreign countries or financing imports of goods or services by foreign business to buyers in Washington state;

(d) Establish and regulate the terms and conditions of any such loans and loan guarantees and charges for interest and services connected therewith; ((~~and~~))

(e) Provide export and import financial counseling to Washington exporters and importers with annual sales of one hundred million dollars or less, provided that such counseling is not available from a Washington for-profit business. For such counseling, the center may charge such fees as it determines are necessary.

(f) Contract with the federal government and its agencies for the purposes of this chapter; and

(g) Take whatever action may be necessary to accomplish the purposes set forth in this chapter.

(2) The center may not use any Washington state funds or funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement. Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement. Debts of the center shall be center debts only and may be satisfied only from the resources of the center. The state of Washington shall not in any way be liable for such debts.

(3) The trade assistance center shall make every effort to seek nonstate funds for its continued operation and shall report to the governor and legislature each January 1st on the amounts it has secured from nonstate funding sources.

(4) The trade assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the trade assistance center and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

Sec. 5. Section 5, chapter 20, Laws of 1983 1st ex. sess. and RCW 43.210.050 are each amended to read as follows:

The ((~~export~~)) trade assistance center formed under RCW 43.210.020 and 43.210.030 is eligible to receive consideration for a contract under this chapter from the department of commerce and economic development or its statutory successor. The contract shall require the center to provide export and import assistance services ((~~and~~)), may not have a duration of longer than two years, and shall require the center to aggressively seek to fund its continued operation from nonstate funds. The contract shall also require the center to report regularly to the department on its success in obtaining nonstate funding sources. The center, including its branch, for the biennium ending June 30, ((~~1985~~)) 1987, may not have more than one contract with the department of commerce and economic development or its statutory successor.

Sec. 6. Section 7, chapter 20, Laws of 1983 1st ex. sess. (uncodified) is amended to read as follows:

The director of commerce and economic development or its statutory successor shall: (a) Report to the governor and the legislature before ((~~October 1, 1985~~)) December 1, 1985, concerning the contract made with the ((~~export~~)) trade assistance center under this chapter during ((~~the 1983-85 biennium~~)) 1985, and the operations and activities of the ((~~export~~)) trade assistance center during that period; and (b) make a report to the ((~~export~~)) trade assistance center by September 1, ((~~1983~~)) 1985, and at least annually thereafter as to products and services the department or its statutory successor has been able to identify and has targeted as those products and services which are sought by foreign markets. Upon request the department or its statutory successor shall furnish a copy of its report to the ((~~export~~)) trade assistance center to any interested party.

NEW SECTION. Sec. 7. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the export assistance center shall be delivered to the custody of the trade assistance center. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the export assistance center shall be made available to the trade assistance center. All funds, credits, or other assets held by the export assistance center shall be assigned to the trade assistance center.

Whenever any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 8. All existing contracts and obligations shall remain in full force and shall be performed by the trade assistance center.

NEW SECTION. Sec. 9. The transfer of the powers, duties, and functions of the export assistance center shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 10. 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.