H-3885              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1335

                        _______________________________________________

                                                                            C 033 L 86

State of Washington                              49th Legislature                              1986 Regular Session

By House Committee on State Government (originally sponsored by Representatives Belcher, Jacobsen, Niemi, G.  Nelson and Unsoeld)

Read first time 1/21/86 and passed to Committee on Rules.

AN ACT Relating to personal services contracts; amending RCW 39.29.040; and adding new sections to chapter 39.29 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 39.29 RCW to read as follows:

          The legislature finds that:  (1) The state of Washington spends in excess of seventy million dollars per biennium on personal service contracts; (2) there exists widespread confusion regarding definitions, accounting practices, and selection procedures, which, in turn, lead to the use of personal service contracts when they are not appropriate or in a manner that is not cost-effective.  In addition, the legislature finds that neither the executive nor the legislative branches of government have oversight procedures which are adequate enough to allow them to determine the true extent of personal service contract use or abuse.  Therefore, the legislature finds that it is in the public interest to establish oversight procedures so that the extent and appropriateness of personal service contracting by the state may be adequately evaluated.

NEW SECTION. Sec. 2.  A new section is added to chapter 39.29 RCW to read as follows:

          (1) No later than October 31, 1986, and each year thereafter, every agency which enters into personal service contracts shall submit a report listing all personal service contracts that were entered into, amended, or renewed during the immediately preceding fiscal year.

          (2) Each report required under this section shall include for each contract or category of contracts: (a) A designation showing which contracts were entered into under a competitive process; (b) a designation showing which contracts and amendments to contracts were filed under RCW 39.29.010 and 39.29.020; (c) a designation showing which contracts were reported as personal service contracts for agency accounting purposes; and (d) the maximum cost of each contract or category of contracts.

          (3) The reports required under this section shall include contracts:  (a) For those services defined in RCW 39.29.006; (b) for those services which are excluded under RCW 39.29.006 because they are considered routine, continuing, and necessary in nature; (c) for those services entered into under chapter 39.80 RCW; and (d) for those services otherwise exempt from this chapter under RCW 39.29.040 (1), (2), and (3).

          (4) The director of financial management shall establish procedures necessary for carrying out the purposes of this section.  Such procedures shall include, at a minimum, a format for reporting contracts and the establishment of categories in which contracts may be grouped.

          (5) The reports required under this section shall be submitted to the office of the governor, the office of financial management, and the legislative budget committee.

        Sec. 3.  Section 4, chapter 61, Laws of 1979 ex. sess. and  RCW 39.29.040 are each amended to read as follows:

Except as provided in section 2 of this 1986 act, this chapter does not apply to:

          (1) Contracts specifying a fee of less than two thousand five hundred dollars if the total of such contracts from that agency with the contractor within a twelve-month period does not exceed two thousand five hundred dollars;

          (2) Contracts awarded through competitive bids if the bidding follows a formal, documented bid procedure and if the request for bids is advertised through the media normally used by the particular service being sought:  PROVIDED, That for management purposes, the office of financial management may require the filing of certain contracts exempted under this subsection;

          (3) Contracts where the contracting agency recognizes that an employee-employer relationship exists;

          (4) Contracts awarded to companies that furnish a service where the tariff is established by the utilities and transportation commission or other public entity;

          (5) Intergovernmental agreements awarded to any public corporation, whether federal, state, or local and any department, division, or subdivision thereof; and

          (6) Contracts awarded for services to be performed for a standard fee, when the standard fee is established by the contracting agency or any other public corporation and a like contract is available to all qualified applicants.

                                                                                                                       Passed the House January 27, 1986.

                                                                                                                                         Speaker of the House.

                                                                                                                      Passed the Senate February 27, 1986.

                                                                                                                                       President of the Senate.