AN ACT Relating to personal service contracts; and amending RCW 39.29.010, 39.29.020, 39.29.040, and 39.29.070.

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

Sec. 1. Section 1, chapter 191, Laws of 1974 ex. sess. as last amended by section 3, chapter 61, Laws of 1979 ex. sess. and RCW 39.29.010 are each amended to read as follows:

All personal service contracts, including renewals and amendments of existing contracts, entered into by any state officer or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional and other types of institutions, shall be ((~~filed with~~)) subject to prior approval by the office of financial management and filed with the legislative budget committee at least ten days prior to the date any work commences under such contracts regardless of the source of funds. The director of financial management ((may exempt on a limited basis specific classes of personal service contracts involving activities of the executive and judicial branches after preparation of documented justification and consultation with the legislative budget committee: PROVIDED, That approval of the exemption is granted prior to commencement of the contract work)) shall adopt rules providing for the disapproval of personal service contracts that are unjustified or involve tasks that should be performed by the staff of the contracting agency. The office of financial management shall not approve any personal service contract that is not competitively bid, as determined by rule of the office of financial management.

In special emergency cases when work commencement is clearly a major and overriding factor and immediate contract action is mandatory, approval and filing may be delayed for personal service contracts involving executive and judicial branches by the director of financial management after consultation with the legislative auditor: PROVIDED, That such approval and filing shall be made prior to commencement of the contract work with documented justification for the filing delay.

Standing and other committees of the legislature and officers or employees of the legislative branch shall file personal service contracts with the legislative budget committee ((~~and the office of financial management~~)) in accordance with the ten-day time limitation set forth in this section. Requests by legislative committees or personnel for ((~~either exemptions or~~)) delays in filing individual personal service contracts shall be forwarded to the legislative budget committee for review and maintenance of a central control file for use in preparation of summary reports on personal service contracts as directed by the legislature. Filing of personal service contracts delayed for emergency purposes shall be made not more than five days after commencement of the contract work involved.

Sec. 2. Section 2, chapter 191, Laws of 1974 ex. sess. and RCW 39.29.020 are each amended to read as follows:

No state officer or activity of state government subject to this chapter shall enter into personal service contracts or expend any funds for personal service contracts without first complying with the provisions of RCW 39.29.010. Except in cases where filing delay has been authorized under RCW 39.29.010, no contract shall become effective until ten days following the date of filing pursuant to this chapter, or the effective date of the contract whichever is later. The state officer or employee executing the personal service contracts shall be responsible for compliance with the ((~~filing~~)) requirements of this chapter. Failure to comply with the ((~~filing~~)) requirements of this chapter shall subject the state officer or employee to a civil penalty in the amount of three hundred dollars.

Sec. 3. Section 4, chapter 61, Laws of 1979 ex. sess. as amended by section 3, chapter 33, Laws of 1986 and RCW 39.29.040 are each amended to read as follows:

Except as provided in RCW 39.29.070, 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)~~)) (2) Contracts awarded to companies that furnish a service where the tariff is established by the utilities and transportation commission or other public entity;

((~~(5)~~)) (3) Intergovernmental agreements awarded to any public corporation, whether federal, state, or local and any department, division, or subdivision thereof; and

((~~(6)~~)) (4) 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.

Sec. 4. Section 2, chapter 33, Laws of 1986 and RCW 39.29.070 are each amended 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 approved and 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.