BP BHEAD INT H [atlas:bill]

AN ACT Relating to state agency personal service contracting practices; amending RCW 39.29.040 and 39.29.055; adding new sections to chapter 39.29 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 39.29 RCW to read as follows:

(1) The office of financial management shall by rule adopt uniform guidelines for the effective and efficient management of personal service contracts and client services contracts by all state agencies. The guidelines must, at a minimum, include:

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

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

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

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

(f) Post-contract procedures, including methods for recovering improperly spent or overspent moneys for disallowance and adjustment;

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

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

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

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

(k) Any other subject related to effective and efficient contract management.

(2) The office of financial management shall submit the guidelines required by subsection (1) of this section to the governor and the appropriate standing committees of the legislature no later than December 1, 2000.

(3) The office of financial management shall publish a guide book for use by state agencies containing the guidelines required by subsection (1) of this section.

NEW SECTION. Sec. 2. A new section is added to chapter 39.29 RCW to read as follows:

(1) A state agency entering into personal service contracts or client services contracts shall follow the guidelines required by section 1 of this act.

(2) A state agency that has entered into personal service contracts or client services contracts during a calendar year shall, on or before January 1 of the following calendar year, provide the office of financial management with a report detailing the procedures the agency employed in entering into and managing the contracts.

(3) The provisions of this section apply to state agencies entering into contracts after January 1, 2001.

NEW SECTION. Sec. 3. A new section is added to chapter 39.29 RCW to read as follows:

(1) The office of financial management shall provide a training course for agency personnel responsible for entering into and managing personal service contracts and client services contracts. The course must contain training on effective and efficient contract management under the guidelines established under section 1 of this act. State agencies shall require agency employees responsible for entering into or managing personal service contracts and client services contracts to complete the training course to the satisfaction of the office of financial management. Beginning January 1, 2002, no agency employee may enter into or manage personal service contracts or client services contracts unless the employee has completed the training course.

(2) The office of financial management may conduct periodic performance audits of state agencies entering into personal service contracts and client services contracts to ensure compliance with the guidelines established in section 1 of this act. The office of financial management shall forward the results of the audits to the governor, the appropriate standing committees of the legislature, and the joint legislative audit and review committee.

Sec. 4. RCW 39.29.040 and 1998 c 101 s 7 are each amended to read as follows:

This chapter does not apply to:

(1) Contracts specifying a fee of less than five thousand dollars if the total of the contracts from that agency with the contractor within a fiscal year does not exceed five thousand dollars;

(2) Contracts awarded to companies that furnish a service where the tariff is established by the utilities and transportation commission or other public entity;

(3) Intergovernmental agreements awarded to any governmental entity, whether federal, state, or local and any department, division, or subdivision thereof;

(4) Contracts awarded for services to be performed for a standard fee, when the standard fee is established by the contracting agency or any other governmental entity and a like contract is available to all qualified applicants;

(5) Contracts for services that are necessary to the conduct of collaborative research if prior approval is granted by the funding source;

(6) Contracts for client services except as otherwise indicated in this chapter;

(7) Contracts for architectural and engineering services as defined in RCW 39.80.020, which shall be entered into under chapter 39.80 RCW;

(8) Contracts for the employment of expert witnesses for the purposes of litigation; and

(9) Contracts for bank supervision authorized under RCW 30.38.040.

Sec. 5. RCW 39.29.055 and 1998 c 101 s 8 are each amended to read as follows:

(1) Personal service contracts subject to competitive solicitation and all client services contracts shall be (a) filed with the office of financial management and made available for public inspection; and (b) reviewed and approved by the office of financial management when those contracts provide services relating to management consulting, organizational development, marketing, communications, employee training, or employee recruiting.

(2) Personal service contracts subject to competitive solicitation that provide services relating to management consulting, organizational development, marketing, communications, employee training, or employee recruiting shall be made available for public inspection at least ten working days before the proposed starting date of the contract. All other contracts shall be effective no earlier than the date they are filed with the office of financial management.

NEW SECTION. Sec. 6. Section 1 of 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 takes effect immediately.

NEW SECTION. Sec. 7. Sections 2 and 3 of this act take effect January 1, 2001.