FINAL BILL REPORT

                E2SHB 2880

                         C 231 L 98

                     Synopsis as Enacted

Brief Description:  Creating a task force on agency vendor contracting practices.

Sponsors:  By House Committee on Appropriations (originally sponsored by Representatives Clements, Dickerson, Backlund, Gombosky, Parlette, Gardner and Delvin).

House Committee on Select Vendor Committee

House Committee on Government Administration

House Committee on Appropriations

Senate Committee on Government Operations

Senate Committee on Ways & Means

Background: The procurement of personal service contracts is subject to various rules and reporting requirements.  These rules and requirements, however, do not apply to fee-for-service and client-service contracts.  Because these contracts are exempt, there are no uniform contracting guidelines governing the procurement of all personal service contracts in the social services area.  Other states, such as Texas, have performed in-depth studies culminating in uniform contract guidelines for personal service contracts.

Summary: A nine-member task force on agency vendor contracting practices is selected by the director of the Office of Financial Management (OFM).  The task force is charged with reviewing and suggesting legislative and administrative remedies to specific issues regarding fee-for-service and client-service contracts held by  not-for-profits providing social services.

The task force is required to look at:  1) the adequacy of the laws regulating state contracts, including the exemption of fee-for-service and client-service contracts; 2) process improvements to ensure contract oversight, including the specific role of agencies in ensuring accountability of public moneys; 3) the scope of random audits performed by the State Auditor and the funding sources for these audits; and 4) several factors related to the adoption of uniform contract guidelines.

The task force staff will be employed by the OFM.  Task force members are eligible to receive reimbursement for travel expenses.  The task force is required to make a report of its findings and suggestions to the Legislature and to the director of the OFM by November 1, 1999.

These provisions expire January 1, 2000, and are null and void unless funded in the budget.

Votes on Final Passage:

House980

Senate462(Senate amended)

House980(House concurred)

Effective:June 11, 1998