BP BHEAD INT S [atlas:bill]

AN ACT Relating to state agency personal service contract guidelines; creating new sections; making an appropriation; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that the practice of engaging personal services by use of contract has become necessary to effective state agency operations. The legislature further finds that if this practice is not carefully and effectively managed by agencies, the result is often overspending and misuse of public moneys. Thus, the legislature intends that methods for improving the management of state personal service contracts be examined.

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

(1) "Agency" means any state board, commission, bureau, committee, department, institution, division, or tribunal in the legislative, executive, or judicial branch of state government. "Agency" includes all elected offices, the state legislature, those institutions of higher education as defined in RCW 28B.10.016, and those courts that are parts of state government.

(2) "Task force" means the task force on agency vendor contracting practices.

(3) "Contractor" means any entity holding a contract or grant with the state of Washington, as awarded by an agency, to provide personal services, as defined in chapter 39.29 RCW.

NEW SECTION. Sec. 3. A task force on agency vendor contracting practices is established. The task force shall be convened by the office of financial management and shall be composed of nine members appointed by the director of financial management. The members shall be selected for their knowledge and experience relating to state agency personal service contracting practices. The task force shall choose its chair from among its members.

NEW SECTION. Sec. 4. (1) The task force shall review and propose legislative recommendations for the following issues:

(a) The adequacy of chapter 39.29 RCW in governing agency contracting activities. Such an investigation shall include, but is not limited to, whether the exemptions contained in RCW 39.29.040 (4) and (6) are appropriate in maintaining agency oversight and accountability for moneys used to engage contractors;

(b) The adoption of appropriate uniform contract management guidelines and policies to be used by agencies, including, but not limited to:

(i) Accounting methods, systems, measures, and principles to be used by agencies and contractors;

(ii) Precontract procedures for selecting potential contractors based on their qualifications and ability to perform;

(iii) Incorporation of performance measures and measurable benchmarks in contracts, and the use of performance audits;

(iv) Uniform contract terms to ensure contract performance and compliance with state and federal standards;

(v) Proper payment and reimbursement methods to ensure the state receives full value for taxpayer moneys including cost settlements and cost allowance;

(vi) Postcontract procedures including methods for recovering improperly spent or overspent moneys for disallowance and adjustment;

(vii) Adequate contract remedies and sanctions to ensure compliance;

(viii) Monitoring, fund tracking, risk assessment, and auditing procedures and requirements;

(ix) Financial reporting, record retention, and record access procedures and requirements;

(x) The uniform contract measures adopted by other states, including the state of Texas;

(xi) Procedures and criteria for terminating contracts for cause or otherwise; and

(xii) Any other subject related to effective contract management.

(2) Where appropriate, the task force shall formulate proposed guidelines and policies that address the subject areas in subsection (1)(b) of this section. The task force shall avoid formulating rules that conflict with federal regulations and policies that apply to contractors in this state.

NEW SECTION. Sec. 5. The task force, where feasible, shall collaborate with individuals from the public and private sector and may ask such persons to establish an advisory committee.

NEW SECTION. Sec. 6. The task force, where feasible, shall use office of financial management staff and facilities, but may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of the study in this act. The task force may additionally rent or lease such equipment or facilities and purchase such supplies as is necessary to carry out the mandates of the study in this act. Each member of the task force shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 7. By November 1, 1999, the task force shall report its findings to the house of representatives vendor contracting and services select committee, or to the most appropriate house of representatives standing committee in the event that the vendor contracting and services select committee no longer exists.

NEW SECTION. Sec. 8. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the office of financial management. The appropriation in this section is provided solely for the purposes of sections 3 through 7 of this act.

NEW SECTION. Sec. 9. 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. 10. This act expires January 1, 2000.