HOUSE BILL REPORT

                  HB 2129

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to state agency purchasing.

Brief Description:  Allowing state agencies to make purchases based on the lowest cost.

Sponsors:  Representatives Mastin, Finkbeiner, Locke, Patterson, Linville, Foreman, Forner and J. Kohl.

Brief History:

  Reported by House Committee on:

Appropriations, April 9, 1993, DP.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 20 members:  Representatives Locke, Chair; Valle, Vice Chair; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dunshee; G. Fisher; Jacobsen; Lemmon; Linville; Morton; Peery; Rust; Sheahan; Sommers; Stevens; Talcott; and Wang.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Wolfe.

Staff:  Beth Redfield (786-7130).

Background:  Currently, the Department of General Administration has the authority to purchase all material, supplies, services, and equipment needed for the support, maintenance and use of all state agencies, institutions of higher education, offices of elected state officials, and the judiciary.  The department operates two purchasing programs:  Central Stores and Purchasing and Contract Administration.  Central Stores is a catalog sales operation.  The department maintains an inventory of supplies and equipment which may be ordered from a catalog by state agencies.  The Purchasing and Contract Administration office negotiates contracts for bulk purchases of selected items.  State agencies may then purchase items from the specified vendors at the negotiated price.

Summary of Bill:  State agencies are allowed to purchase materials, supplies, services, and equipment directly from vendors when the Department of General Administration is notified that the items may be purchased more cost effectively than through the department.

The department is directed to develop a standard notification form for use by state agencies notifying the department of its purchases made directly from vendors.  The form is to include at least the price of the items from each source, the savings achieved by purchasing directly from a vendor, and the signature of the notifying agency's director or the director's designee.

The department is to forward these notification forms to the Office of Financial Management and prepare a report on the first fiscal year of purchasing activity authorized by the bill.

Fiscal Note:  Requested April 8, 1993.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.