H-2085.2          _______________________________________________

                            SUBSTITUTE HOUSE BILL 1721

                  _______________________________________________

State of Washington              54th Legislature             1995 Regular Session

By House Committee on Government Operations (originally sponsored by Representatives Hymes, Sheldon, Hankins, Scott, Mitchell, Basich, Quall, Sehlin, Reams, Tokuda, Cooke, Morris, L. Thomas, Goldsmith and Schoesler)

Read first time 03/01/95.

Requiring state agencies to purchase from community rehabilitation programs.

     AN ACT Relating to products and services provided by community rehabilitation programs; amending RCW 43.19.520, 43.19.525, 43.19.530, 39.23.005, 39.23.010, and 39.23.020; reenacting and amending RCW 82.04.385; and creating a new section.

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

     Sec. 1.  RCW 43.19.520 and 1974 ex.s. c 40 s 1 are each amended to read as follows:

     It is the intent of the legislature to ((encourage)) require state agencies and departments to purchase products and/or services manufactured or provided by ((sheltered workshops and programs of the department of social and health services which)) community rehabilitation programs that operate facilities serving ((the handicapped)) severely disabled and disadvantaged citizens.

The legislature recognizes the need to assure a consistent market for the products and services provided by community rehabilitation programs, thereby reducing the forced and often sole dependence on public welfare and providing transferrable employment, skills, and income opportunities for severely disabled and disadvantaged citizens who want and are able to work and contribute to their economy.  The legislature intends to provide a dignified means of coparticipation by the severely disabled with all taxpayers in Washington state in easing public subsidy for their support.  Providing access to state agencies and departments enhances the ability of community rehabilitation programs to provide long-term employment and training programs for severely disabled and disadvantaged citizens.

     Sec. 2.  RCW 43.19.525 and 1974 ex.s. c 40 s 2 are each amended to read as follows:

     As used in RCW 43.19.520 and 43.19.530 ((the term "sheltered workshops" shall have)) "community rehabilitation programs" has the meaning ascribed to it by RCW 82.04.385 ((and "programs of the department of social and health services" shall mean the group training homes and day training centers defined in RCW 72.33.800)).

     Sec. 3.  RCW 43.19.530 and 1977 ex.s. c 10 s 2 are each amended to read as follows:

     The state agencies and departments ((are hereby authorized to)) shall purchase products and/or services manufactured or provided by ((sheltered workshops and programs of the department of social and health services)) community rehabilitation programs.  Such purchases shall be at the fair market price of such products and services as determined by the ((division of purchasing of the department of general administration)) state agency or department purchasing authority, referred to in this section as "purchaser".  To determine the fair market price the ((division)) purchaser shall use the last comparable bid on the products and/or services or in the alternative the last price paid for the products and/or services.  The increased cost of labor, materials, and other documented costs since the last comparable bid or the last price paid are additional cost factors which shall be considered in determining fair market price.  Upon the establishment of the fair market price as provided for in this section the ((division)) purchaser is hereby empowered to negotiate directly with ((sheltered workshops or officials in charge of the programs of the department of social and health services)) community rehabilitation programs for the purchase of the products or services.

     Sec. 4.  RCW 39.23.005 and 1975 c 20 s 1 are each amended to read as follows:

     It is the intent of the legislature to encourage municipalities to purchase products and/or services manufactured or provided by ((sheltered workshops and programs of the department of social and health services which)) community rehabilitation programs that operate facilities serving ((the handicapped)) severely disabled and disadvantaged citizens.

     Sec. 5.  RCW 39.23.010 and 1975 c 20 s 2 are each amended to read as follows:

     As used in RCW 39.23.005 and 39.23.020 ((the term "sheltered workshops" shall have)) "community rehabilitation programs" has the meaning ascribed to it by RCW 82.04.385 ((and "programs of the department of social and health services" shall mean the group training homes and day training centers defined in RCW 72.33.800 and "municipality" shall have the meaning ascribed to it by RCW 39.04.010)).

     Sec. 6.  RCW 39.23.020 and 1977 ex.s. c 10 s 1 are each amended to read as follows:

     Municipalities are ((hereby)) authorized to purchase products and/or services manufactured or provided by ((sheltered workshops and programs of the department of social and health services)) community rehabilitation programs.  Such purchases shall be at the fair market price of such products and services as determined by a municipality.  To determine the fair market price a municipality shall use the last comparable bid on the products and/or services or in the alternative the last price paid for the products and/or services.  The increased cost of labor, materials, and other documented costs since the last comparable bid or the last price paid are additional cost factors which shall be considered in determining fair market price.  Upon the establishment of the fair market price as provided for in this section a municipality is hereby empowered to negotiate directly with ((sheltered workshops or officials in charge of the programs of the department of social and health services)) community rehabilitation programs for the purchase of the products or services.

     Sec. 7.  RCW 82.04.385 and 1988 c 176 s 915 and 1988 c 13 s 1 are each reenacted and amended to read as follows:

     This chapter shall not apply to income received from the department of social and health services for the cost of care, maintenance, support, and training of persons with developmental disabilities at nonprofit group training homes as defined by chapter 71A.22 RCW or to the business activities of nonprofit organizations from the operation of ((sheltered workshops)) community rehabilitation programs.  For the purposes of this section, "the operation of ((sheltered workshops)) community rehabilitation programs" means performance of business activities of any kind on or off the premises of such nonprofit organizations which are performed for the primary purpose of (1) providing gainful employment or rehabilitation services to the handicapped as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist; or (2) providing evaluation and work adjustment services for handicapped individuals.

NEW SECTION. Sec. 8.  (1) The department of general administration shall establish a state use advisory committee composed of equal representation from purchasers, community rehabilitation programs, and other appropriate parties for the purpose of reviewing the intent and application of this act and reporting such findings and recommendations to the legislature by December 1, 1996.  Particular issues that should be addressed in the report include the number of severely disabled and disadvantaged citizens employed, establishing fair market price, and the impact on private businesses and community rehabilitation programs.

     (2) This section shall expire December 31, 1996.

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