1969-S2

AN ACT Relating to competitive strategies in the delivery of government services; amending RCW 41.06.380, 72.10.005, and 82.01.070; adding a new section to chapter 28A.400 RCW; creating new sections; repealing RCW 28A.400.285 and 41.06.382; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. It is the intent of the legislature that:

(1) All agencies, departments, offices of elective or appointed state officers, state institutions, colleges, universities, community colleges, technical colleges, college districts, public school districts, the supreme court, the court of appeals, and any other state entity receiving appropriations from the legislature deliver high quality services to the people of the state of Washington in the most efficient and cost-effective manner possible;

(2) The director of general administration, through the state purchasing and material control director established in RCW 43.19.180, be provided the highest level of flexibility in the purchase of all materials, supplies, services, and equipment necessary for the efficient support, maintenance, repair, and use of all agencies and departments under RCW 43.19.190;

(3) State agencies, departments, and institutions consider and use as often as possible strategies that foster cost control, innovation, and increased quality or level of service through the use of competition in the purchase or delivery of services.

Sec. 2. RCW 41.06.380 and 1979 ex.s. c 46 s 2 are each amended to read as follows:

((Nothing contained in this chapter shall prohibit any department, as defined in RCW 41.06.020, from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract by such department prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract.)) (1) An agency, institution of higher education, or related board, as defined in RCW 41.06.020, may purchase services or the delivery of services through contracts with individuals, nonprofit organizations, businesses, or other entities. The execution or renewal of the contract must be in compliance with the provisions of RCW 43.19.1906. Any service obtained pursuant to this section shall be rebid on a competitive basis upon the expiration of the contract.

(2) This section shall not be interpreted as meaning that a managerial decision to contract for services is subject to collective bargaining. This section shall not diminish the rights provided to employees under an existing contract. Any provision contrary to or in conflict with this section in any collective bargaining agreement or contract in effect on the effective date of this section is not effective beyond the expiration of the agreement or contract.

(3) The office of financial management shall provide assistance to state agencies, institutions of higher education, and related boards by developing a methodology for comparing the costs of government and privately delivered services. State agencies, institutions of higher education, and related boards are not required to use this methodology before making a decision to competitively contract for services. The methodology shall reflect the fully allocated costs of services, including but not limited to:

(a) Employee salaries and wages;

(b) Employee benefits;

(d) Administrative and overhead expenditures;

(e) Contract administration and evaluation; and

(f) Taxes that would be received by the state or local governments from private contractors for services.

(4) It is the intent of the legislature that classified employees whose employment would be directly affected be afforded an opportunity to offer alternatives to any contracts to be competitively bid by state agencies, institutions of higher education, and related boards. Any agency, institution of higher education, and related board shall provide notice of intent to competitively contract for services to the employees who will be directly affected by such a contract. This notice shall also be provided to the exclusive bargaining representative of these employees. The employees or the exclusive bargaining representative shall have the right to offer, prepare, and submit alternatives for the service to be competitively contracted before any contract is awarded.

(5) The office of financial management shall prepare a report by January 1, 1997, on the implementation of this section by state agencies, institutions of higher education, and related boards. This report shall be submitted to the members of the government operations committee and the appropriations committee of the house of representatives, and to the members of the government operations committee and ways and means committee of the senate.

(6) This section does not apply to and does not in any manner limit the purchase of services or any contracting for services that was authorized by law before the effective date of this act.

NEW SECTION. Sec. 3. A new section is added to chapter 28A.400 RCW to read as follows:

(1) This chapter shall not be construed as prohibiting the procurement or provision of nonacademic services by contract. Directors of school districts may purchase services or the delivery of services through contracts with individuals, nonprofit organizations, businesses, or other entities. The execution or renewal of the contract shall be in compliance with RCW 28A.335.190. Any service obtained pursuant to this section shall be rebid on a competitive basis upon the expiration of the contract.

(3) School districts may use the methodology developed by the office of financial management pursuant to RCW 41.06.380 for comparing the costs of government and privately contracted services.

(4) Any school district that intends to purchase services pursuant to this section shall notify the employees whose employment status will be directly affected by such a contract and the exclusive bargaining representative of these employees. The employees or the exclusive bargaining representative shall have the right to offer, prepare, and submit alternatives for the service to be competitively contracted before any contract is awarded.

(5) The superintendent of public instruction shall prepare a report by January 1, 1997, on the implementation of this section by school districts. This report shall be submitted to the members of the education committee and the appropriations committee of the house of representatives, and to the members of the education committee and the ways and means committee of the senate.

NEW SECTION. Sec. 4. (1) There is established a joint legislative task force on competitive strategies. The members of the task force shall be composed of eight members as follows: (a) Four members of the house of representatives, with no more than two members from each major political caucus, appointed by the speaker of the house of representatives; and (b) four members of the senate, with no more than two members appointed from each major political caucus, appointed by the president of the senate.

(2) The task force shall identify state programs or services that may be competitively contracted to produce cost savings or improvements in the quality or level of services without harm to the public good. The task force shall also evaluate the results obtained in other states that have competitively contracted for services.

(3) The task force shall issue a preliminary report to the legislature by January 1, 1996, and a final report to the legislature by January 1, 1997. The task force shall terminate on January 1, 1997.

(4) This section shall expire January 31, 1997.

Sec. 5. RCW 72.10.005 and 1989 c 157 s 1 are each amended to read as follows:

It is the intent of the legislature that inmates in the custody of the department of corrections receive such basic medical services as may be mandated by the federal Constitution and the Constitution of the state of Washington. Notwithstanding any other laws, it is the further intent of the legislature that the department of corrections may contract directly with any persons, firms, agencies, or corporations qualified to provide such services. ((Nothing in this chapter is to be construed to authorize a reduction in state employment in service component areas presently rendering such services or to preclude work typically and historically performed by department employees.))

Sec. 6. RCW 82.01.070 and 1982 c 128 s 1 are each amended to read as follows:

The director shall have charge and general supervision of the department of revenue. ((He)) The director shall appoint an assistant director for administration, hereinafter in ((~~this 1967 amendatory act~~)) this Title and Title 84 RCW referred to as the assistant director, and subject to the provisions of chapter 41.06 RCW may appoint and employ such clerical, technical and other personnel as may be necessary to carry out the powers and duties of the department. The director may also enter into personal service contracts with ((~~out-of-state~~)) individuals or ((~~business~~)) entities for the performance of auditing services ((~~outside the state of Washington when normal efforts to recruit classified employees are unsuccessful~~)). The director may agree to pay to the department's employees or contractors who reside out of state such amounts in addition to their ordinary rate of compensation as are necessary to defray the extra costs of facilities, living, and other costs reasonably related to the out-of-state services, subject to legislative appropriation for those purposes. The special allowances shall be in such amounts or at such rates as are approved by the office of financial management. This section does not apply to audit functions performed in states contiguous to the state of Washington.

NEW SECTION. Sec. 7. The following acts or parts of acts are each repealed:

(1) RCW 28A.400.285 and 1993 c 349 s 1; and

(2) RCW 41.06.382 and 1979 ex.s. c 46 s 1.

NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.