BP BHEAD INT S [atlas:bill]

AN ACT Relating to expanding employment opportunities for people with disabilities; amending RCW 43.19.530 and 43.19.1906; adding new sections to chapter 43.19 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1. (1) It is the intent of the legislature to expand employment opportunities for people with disabilities. The legislature recognizes the necessity of strengthening the state's policy of creating employment opportunities for persons with disabilities and enabling achievement of maximum personal independence through expanded employment opportunities. Chapter . . ., Laws of 1997 (this act) shall accomplish this intent by encouraging supported employment positions for people with disabilities within state government offices and providing state agencies with a more effective process for purchasing products and services from community rehabilitation programs that operate programs serving people with disabilities.

(2) By creating a ceiling for total purchase dollars that agencies may expend for purchasing products and services from community rehabilitation programs, the legislature does not intend to create a quota for total dollar purchases. Instead, the legislature seeks to gradually introduce the negotiated bid process for purchasing products and services from community rehabilitation programs and to provide a flexible purchasing framework that allows agencies to negotiate the type, quantity, and price of products produced by and services provided by community rehabilitation programs.

(3) The legislature shall review and make findings with respect to programs operating under chapter . . ., Laws of 1997 (this act) by December 15, 2002.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Agency" means all offices, departments, agencies, institutions, boards, and commissions of state government including those headed by an elected official but not including institutions of higher education.

(2) "Central nonprofit agency" means a private not-for-profit organization with a network of established connections with community rehabilitation programs in Washington and a current working understanding of the contracting and negotiated bid processes.

(3) "Certification" means the process by which the commission approves community rehabilitation programs so that they may participate in the negotiated bid process with state agencies.

(4) "Commission" means the commission for purchases from community rehabilitation programs.

(5) "Community rehabilitation program" means a program that is operated under criteria established by the commission and which directly provides or facilitates the provision of vocational services to people with disabilities to enable them to maximize opportunities for employment, including career advancement.

(6) "Disabilities" means developmental disabilities as defined in RCW 71A.10.020, attributable to mental retardation, cerebral palsy, autism, or other neurological or other condition of an individual found by the secretary of the department of social and health services or his or her designee to be closely related to mental retardation or require treatment similar to that required for individuals with mental retardation, which disability originates before the individual attains age eighteen, has continued or can be expected to continue indefinitely, and constitutes a substantial handicap for the individual.

(7) "Equitable market value" means the price agreed upon by state agencies and community rehabilitation programs in the negotiated bid process. In terms of price per unit or job, the equitable market price determined through the negotiated bid process is based upon current market pricing for goods or services of equal value, including any or all of the following factors: Last price bid, established pricing as derived through averaging of current comparable contracts, the effect of changes in specifications, market fluctuation, supply costs, and other applicable factors.

(8) "Negotiated bidding" is the process by which the community rehabilitation programs negotiate directly with state agencies to establish prices for products and services and negotiate contracts for purchases of products and services.

(9) "Supported employment" means employment for people with disabilities who need long-term ongoing support in order to succeed on the job. The job should provide opportunities for interaction with coworkers without disabilities and should be individually tailored to the skills of the person with a disability. Supported employment positions pay people with disabilities the same rate as employees without disabilities who do the same kind of work.

NEW SECTION. Sec. 3. (1) State agencies shall encourage and establish supported employment positions in state government offices. The governor shall submit a report of progress to the appropriate legislative committees by December 15th of each odd-numbered year.

(2) The department of social and health services or its successor agency shall develop and disseminate supported employment information to educate managers, supervisors, and other staff in all areas of state government.

(3) The department of personnel shall provide assistance with respect to developing and disseminating supported employment information as needed or requested by the department of social and health services or its successor agency.

(4) Supported employment is not intended to displace current employees or abrogate any reduction in force rights.

NEW SECTION. Sec. 4. (1) A commission for purchases from community rehabilitation programs is created. The commission is composed of five members who are appointed by the governor, consisting of one representative from:

(a) The department of general administration;

(b) The health and rehabilitation services division of the department of social and health services or the agency's successor;

(d) An advocacy organization for people with disabilities; and

(e) A community rehabilitation program.

(2) Members of the commission serve four-year terms. Members may not receive compensation for their service on the commission, but they are entitled to reimbursement for actual and necessary expenses incurred in performing their duties as members as set forth in RCW 43.03.220.

(3) The community rehabilitation program representative serves as the chair.

(4) The commission members shall appoint five additional at-large members.

NEW SECTION. Sec. 5. The commission shall:

(1) Develop and administer policies and procedures that expand the market for products and services provided by community rehabilitation programs, consistent with sections 4 through 12 of this act;

(2) Develop criteria for certification and certify community rehabilitation programs;

(3) Monitor the negotiated bid process;

(4) Identify potential contracts between state agencies and community rehabilitation programs;

(5) Establish and collect the certification fee from community rehabilitation programs;

(6) Establish a procedure for determining when the ceiling has been reached; and

(7) Adopt rules necessary to facilitate the purchase of products from community rehabilitation programs.

NEW SECTION. Sec. 6. The commission shall be funded through a certification fee imposed upon community rehabilitation programs as part of the certification process.

NEW SECTION. Sec. 7. The commission may:

(1) Contract with a central nonprofit agency for assistance in carrying out its duties; and

(2) Solicit grants to offset expenses associated with carrying out the provisions of this chapter.

NEW SECTION. Sec. 8. (1) State agencies are required to purchase products or services from certified community rehabilitation programs that meet all of the following criteria:

(a) The community rehabilitation program can provide products or services requested by the agency;

(b) The products or services meet the agency's expectation of quality; and

(c) The agencies and the community rehabilitation program successfully negotiate an equitable market value through a good faith negotiated bid process.

(2) A community rehabilitation program seeking to bid on a contract shall notify the agency in writing in the time and manner required by the commission.

(3) A representative from a state agency seeking to purchase products or services shall meet with representatives from the community rehabilitation program and the central nonprofit agency. All representatives shall make a good faith effort to negotiate a contract containing an equitable market value price for its corresponding specifications.

NEW SECTION. Sec. 9. To be eligible to negotiate contracts under chapter . . ., Laws of 1997 (this act), a community rehabilitation program must be certified by the commission. The commission may certify community rehabilitation programs that do all of the following:

(1) Meet standards established by the commission, which may include standards established by a recognized authority on rehabilitation standard of practice;

(2) Meet all applicable business and employment guidelines from the state and federal government; and

(3) Complete an application created and approved by the commission and provide proof of completion of the application.

NEW SECTION. Sec. 10. Total state agency purchases from community rehabilitation programs through the negotiated bid process as set forth in chapter . . ., Laws of 1997 (this act) may not exceed a total of two and one-half percent of total annual state budget dollars for goods and services according to the office of financial management.

Sec. 11. 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 purchase products and/or services manufactured or provided by sheltered workshops and programs of the department of social and health services, only after the ceiling for the purchase of products and services from community rehabilitation programs as set forth in sections 1 through 10 of this act has been reached. 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. To determine the fair market price the division 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 is hereby empowered to negotiate directly with sheltered workshops or officials in charge of the programs of the department of social and health services for the purchase of the products or services.

Sec. 12. RCW 43.19.1906 and 1995 c 269 s 1404 are each amended to read as follows:

Insofar as practicable, all purchases and sales shall be based on competitive bids, and a formal sealed bid procedure shall be used as standard procedure for all purchases and contracts for purchases and sales executed by the state purchasing and material control director and under the powers granted by RCW 43.19.190 through 43.19.1939. This requirement also applies to purchases and contracts for purchases and sales executed by agencies, including educational institutions, under delegated authority granted in accordance with provisions of RCW 43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is not necessary for:

(1) Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately;

(2) Purchases not exceeding thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management: PROVIDED, That the state director of general administration shall establish procedures to assure that purchases made by or on behalf of the various state agencies shall not be made so as to avoid the thirty-five thousand dollar bid limitation, or subsequent bid limitations as calculated by the office of financial management: PROVIDED FURTHER, That the state purchasing and material control director is authorized to reduce the formal sealed bid limits of thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, to a lower dollar amount for purchases by individual state agencies if considered necessary to maintain full disclosure of competitive procurement or otherwise to achieve overall state efficiency and economy in purchasing and material control. Quotations from four hundred dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. The agency shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. A record of competition for all such purchases from four hundred dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be documented for audit purposes. Purchases up to four hundred dollars may be made without competitive bids based on buyer experience and knowledge of the market in achieving maximum quality at minimum cost: PROVIDED, That this four hundred dollar direct buy limit without competitive bids may be increased incrementally as required to a maximum of eight hundred dollars, if warranted by increases in purchasing costs due to inflationary trends;

(3) Purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation;

(4) Purchases of insurance and bonds by the risk management office under RCW 43.19.1935;

(5) Purchases and contracts for vocational rehabilitation clients of the department of social and health services: PROVIDED, That this exemption is effective only when the state purchasing and material control director, after consultation with the director of the division of vocational rehabilitation and appropriate department of social and health services procurement personnel, declares that such purchases may be best executed through direct negotiation with one or more suppliers in order to expeditiously meet the special needs of the state's vocational rehabilitation clients;

(6) Purchases by universities for hospital operation or biomedical teaching or research purposes and by the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations;

(7) Purchases by institutions of higher education not exceeding thirty-five thousand dollars: PROVIDED, That for purchases between two thousand five hundred dollars and thirty-five thousand dollars quotations shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. For purchases between two thousand five hundred dollars and thirty-five thousand dollars, each institution of higher education shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. A record of competition for all such purchases made from two thousand five hundred to thirty-five thousand dollars shall be documented for audit purposes; ((~~and~~))

(8) Beginning on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows: The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest one hundred dollars; and

(9) Purchases of products and services from a community rehabilitation program as set forth in sections 1 through 10 of this act.

NEW SECTION. Sec. 13. Sections 1 through 10 of this act are each added to chapter 43.19 RCW.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 15. Sections 1 through 3 and 5 through 12 of this act take effect January 1, 1998.