BILL REQ. #:  H-2109.1 

READ FIRST TIME 03/04/03.   

     AN ACT Relating to employment opportunities for people with disabilities; amending RCW 43.19.520, 43.19.525, 43.19.530, and 43.19.1911; adding new sections to chapter 43.19 RCW; adding new sections to chapter 50.40 RCW; and providing expiration dates.

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

Sec. 1   RCW 43.19.520 and 1974 ex.s. c 40 s 1 are each amended to read as follows:
     It is the intent of the legislature to encourage state agencies and departments to purchase products and/or services manufactured or provided by ((sheltered workshops and)):
     (1) Community rehabilitation programs of the department of social and health services which operate facilities serving ((the handicapped and)) disadvantaged persons and persons with disabilities and have achieved or consistently make progress towards the goal of enhancing opportunities for disadvantaged persons and persons with disabilities to maximize their opportunities for employment and career advancement, and increase the number employed and their wages; and
     (2) Until December 31, 2007, businesses owned and operated by persons with disabilities that have achieved or consistently make progress towards the goal of enhancing opportunities for disadvantaged persons and persons with disabilities to maximize their opportunities for employment and career advancement, and increase the number employed and their wages.

Sec. 2   RCW 43.19.525 and 1974 ex.s. c 40 s 2 are each amended to read as follows:
     ((As used in RCW 43.19.520 and 43.19.530 the term "sheltered workshops" shall have the meaning ascribed to it by RCW 82.04.385 and)) The definitions in this section apply throughout RCW 43.19.520 through 43.19.530 unless the context clearly requires otherwise.
     (1) "Businesses owned and operated by persons with disabilities" means any for-profit business certified under chapter 39.19 RCW as being owned and controlled by persons who have been either:
     (a) Determined by the department of social and health services to have a developmental disability, as defined in RCW 71A.10.020;
     (b) Determined by an agency established under Title I of the federal vocational rehabilitation act to be or have been eligible for vocational rehabilitation services;
     (c) Determined by the federal social security administration to be or have been eligible for either social security disability insurance or supplemental security income; or
     (d) Determined by the United States department of veterans affairs to be or have been eligible for vocational rehabilitation services due to service-connected disabilities, under 38 U.S.C. Sec. 3100 et seq.
     (2) "Community rehabilitation programs of the department of social and health services" ((shall)) means ((the group training homes and day training centers defined in RCW 72.33.800)) any entity that:
     (a) Is registered as a nonprofit corporation with the secretary of state; and
     (b) Is recognized by the department of social and health services, division of vocational rehabilitation as eligible to do business as a community rehabilitation program.
     (3) "Vendor in good standing" means a business owned and operated by persons with disabilities or a community rehabilitation program, that has been determined under sections 4 and 7 of this act to meet the following criteria:
     (a) Has not been in material breach of any quality or performance provision of any contract for the purchase of goods or services during the past thirty-six months; and
     (b) Has achieved, or continues to work towards, the goal of enhancing opportunities for disadvantaged persons and persons with disabilities to maximize their opportunities for employment and career advancement, and increase the number employed and their wages, as determined by the governor's committee on disability issues and employment.

Sec. 3   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)):
     (1) Community rehabilitation programs of the department of social and health services; and
     (2) Until December 31, 2007, businesses owned and operated by persons with disabilities.
     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 for the purchase of products or services with ((sheltered workshops or)) officials in charge of the community rehabilitation programs of the department of social and health services ((for the purchase of the products or services)) and, until December 31, 2007, businesses owned and operated by persons with disabilities.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.19 RCW to read as follows:
     (1) The department of general administration shall identify in the department's vendor registry all vendors in good standing, as defined in RCW 43.19.525.
     (2) The department of general administration shall annually, but no less often than once every fifteen months:
     (a) Request that vendors in good standing update their information in the department's vendor registry including but not limited to the Washington state commodity codes for products and services that the vendors propose to offer to state agencies during at least the subsequent fifteen-month period;
     (b) Disseminate the information obtained in response to the request made pursuant to (a) of this subsection to at least one purchasing official in each state agency; and
     (c) Notify each vendor in good standing of all contracts for the purchase of goods and services by state agencies with respect to which the department of general administration anticipates either renewing or requesting bids or proposals within at least twelve months of the date of the notice.
     (3) The department of general administration and the governor's committee on disability issues and employment shall jointly prepare and, on or before December 31, 2006, issue a report to the governor and the legislature. The report shall describe the activities authorized or required by this act, and their effect on enhancing opportunities for disadvantaged persons and persons with disabilities to maximize their opportunities for employment and career advancement, and increase the number employed and their wages.
     (4) This section expires December 31, 2007.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.19 RCW to read as follows:
     (1) Nothing in this act requires any state agency to take any action that interferes with or impairs an existing contract between any state agency and any other party, including but not limited to any other state agency.
     (2) Until December 31, 2007, except as provided under RCW 43.19.1906(2) for purchases up to three thousand dollars, RCW 43.19.534, and subsection (1) of this section, a state agency shall not purchase any product or service identified in the notice most recently disseminated by the department of general administration, as provided under section 4(2)(b) of this act, from other than a vendor in good standing until the state agency has included in the solicitation process at least one vendor in good standing supplying the goods or service needed by the agency, unless no vendor in good standing supplying the goods or service needed by the agency is available.

Sec. 6   RCW 43.19.1911 and 1996 c 69 s 2 are each amended to read as follows:
     (1) Preservation of the integrity of the competitive bid system dictates that after competitive bids have been opened, award must be made to that responsible bidder who submitted the lowest responsive bid pursuant to subsections (7) and (9) of this section, unless there is a compelling reason to reject all bids and cancel the solicitation.
     (2) Every effort shall be made to anticipate changes in a requirement before the date of opening and to provide reasonable notice to all prospective bidders of any resulting modification or cancellation. If, in the opinion of the purchasing agency, division, or department head, it is not possible to provide reasonable notice, the published date for receipt of bids may be postponed and all known bidders notified. This will permit bidders to change their bids and prevent unnecessary exposure of bid prices. In addition, every effort shall be made to include realistic, achievable requirements in a solicitation.
     (3) After the opening of bids, a solicitation may not be canceled and resolicited solely because of an increase in requirements for the items being acquired. Award may be made on the initial solicitation and an increase in requirements may be treated as a new acquisition.
     (4) A solicitation may be canceled and all bids rejected before award but after bid opening only when, consistent with subsection (1) of this section, the purchasing agency, division, or department head determines in writing that:
     (a) Unavailable, inadequate, ambiguous specifications, terms, conditions, or requirements were cited in the solicitation;
     (b) Specifications, terms, conditions, or requirements have been revised;
     (c) The supplies or services being contracted for are no longer required;
     (d) The solicitation did not provide for consideration of all factors of cost to the agency;
     (e) Bids received indicate that the needs of the agency can be satisfied by a less expensive article differing from that for which the bids were invited;
     (f) All otherwise acceptable bids received are at unreasonable prices or only one bid is received and the agency cannot determine the reasonableness of the bid price;
     (g) No responsive bid has been received from a responsible bidder; or
     (h) The bid process was not fair or equitable.
     (5) The agency, division, or department head may not delegate his or her authority under this section.
     (6) After the opening of bids, an agency may not reject all bids and enter into direct negotiations to complete the planned acquisition. However, the agency can enter into negotiations exclusively with the lowest responsible bidder in order to determine if the lowest responsible bid may be improved. Until December 31, 2007, for purchases requiring a formal bid process the agency shall also enter into negotiations with and may consider for award the lowest responsible bidder that is a vendor in good standing, as defined in RCW 43.19.525. An agency shall not use this negotiation opportunity to permit a bidder to change a nonresponsive bid into a responsive bid.
     (7) In determining the lowest responsible bidder, the agency shall consider any preferences provided by law to Washington products and vendors and to RCW 43.19.704, and further, may take into consideration the quality of the articles proposed to be supplied, their conformity with specifications, the purposes for which required, and the times of delivery.
     (8) Each bid with the name of the bidder shall be entered of record and each record, with the successful bid indicated, shall, after letting of the contract, be open to public inspection.
     (9) In determining "lowest responsible bidder", in addition to price, the following elements shall be given consideration:
     (a) The ability, capacity, and skill of the bidder to perform the contract or provide the service required;
     (b) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;
     (c) Whether the bidder can perform the contract within the time specified;
     (d) The quality of performance of previous contracts or services;
     (e) The previous and existing compliance by the bidder with laws relating to the contract or services;
     (f) Such other information as may be secured having a bearing on the decision to award the contract: PROVIDED, That in considering bids for purchase, manufacture, or lease, and in determining the "lowest responsible bidder," whenever there is reason to believe that applying the "life cycle costing" technique to bid evaluation would result in lowest total cost to the state, first consideration shall be given by state purchasing activities to the bid with the lowest life cycle cost which complies with specifications. "Life cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life. The "estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner. Nothing in this section shall prohibit any state agency, department, board, commission, committee, or other state-level entity from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

NEW SECTION.  Sec. 7   A new section is added to chapter 50.40 RCW to read as follows:
     (1) No less frequently than once each year, the governor's committee on disability issues and employment shall determine whether entities seeking to qualify as vendors in good standing, pursuant to this section and section 4 of this act, have achieved, or continue to work towards, the goal of enhancing opportunities for persons of disabilities to maximize their employment and career advancement, and increase the number employed and their wages.
     (2) In making the determination provided for in subsection (1) of this section, the governor's committee on disability issues and employment shall appoint and, except in the case of malfeasance or misfeasance, shall rely upon the conclusions of an advisory subcommittee consisting of: (a) Three members chosen from among those current or former clients of a community rehabilitation program who have nominated themselves, at least one of whom must be a person with a developmental disability; (b) one member chosen from among those guardians, parents, or other relatives of a current client or employee of a community rehabilitation program who have nominated themselves; (c) one member chosen from among those who have been nominated by a community rehabilitation program; (d) one member chosen from among those owners of a business owned and operated by persons with disabilities who have nominated themselves; (e) one member who is designated by the developmental disabilities council; (f) one member who is a member of and selected by the governor's committee on disability issues and employment; (g) one member who is designated by the secretary of the department of social and health services; and (h) one member who is designated by the director of the department of services for the blind.
     (3) The advisory subcommittee appointed by the governor's committee on disability issues and employment shall conclude that entities seeking to qualify, pursuant to this section and section 4 of this act, as vendors in good standing, have achieved, or continue to work towards, the goal of enhancing opportunities for persons of disabilities to maximize their employment and career advancement, and increase the number employed and their wages if, and only if, the entity provides reasonably conclusive evidence that, during the twelve-month period immediately preceding the entity's application, at least one-half of the following measurement categories applicable to the entity have been either achieved, pursuant to rules established under subsection (4) of this section, or have been improved as compared to the entity's condition with respect to that measurement category one year ago:
     (a) The number of people with disabilities in the entity's total work force who are working in integrated settings;
     (b) The percentage of the people with disabilities in the entity's total work force who are working in integrated settings;
     (c) The number of people with disabilities in the entity's total work force who are working in individual supported employment settings;
     (d) The percentage of the people with disabilities in the entity's total work force who are working in individual supported employment settings;
     (e) The number of people with disabilities in the entity's total work force who, during the last twelve months, have transitioned to less restrictive employment settings either within the entity or with other community employers;
     (f) The number of people with disabilities in the entity's total work force who are earning at least the state minimum wage;
     (g) The percentage of the people with disabilities in the entity's total work force who are earning at least the state minimum wage;
     (h) The number of people with disabilities serving in supervisory capacities within the entity;
     (i) The percentage of supervisory positions within the entity that are occupied by people with disabilities;
     (j) The number of people with disabilities serving in an ownership capacity or on the governing board of the entity;
     (k) The ratio of the total amount paid by the entity in wages, salaries, and related employment benefits to people with disabilities, as compared to the amount paid by the entity in wages, salaries, and related employment benefits paid by the entity to persons without disabilities during the previous year; and
     (l) The percentage of people with disabilities in the entity's total work force for whom the entity has developed a reasonable, achievable, and written career plan.
     (4) The commissioner shall consult with the advisory subcommittee established in subsection (2) of this section to develop and adopt rules establishing the measurement at which it is deemed that the measurement categories identified in subsection (3)(b), (d), (e), (g), (h), (j), (k), and (l) of this section have been achieved.
     (5) This section expires December 31, 2007.

NEW SECTION.  Sec. 8   A new section is added to chapter 50.40 RCW to read as follows:
     (1) The commissioner is authorized to adopt rules to implement section 7 of this act, including but not limited to authority to establish (a) a nonrefundable application fee of not more than five hundred dollars to be paid by each entity seeking to establish or renew qualification as a vendor in good standing, pursuant to sections 4 and 7 of this act; (b) a fee of not more than two percent of the face amount of any contract awarded under this act; or (c) both fees identified in (a) and (b) of this subsection.
     (2) The fee or fees established pursuant to subsection (1) of this section must set a level of revenue sufficient to recover costs incurred by the department of general administration in fulfilling the duties identified in section 4 of this act and the governor's committee on disability issues and employment in fulfilling the duties identified in section 7 of this act.
     (3) The vendors in good standing account is created in the custody of the state treasurer. All receipts from the fee or fees established pursuant to subsection (1) of this section must be deposited into the account. Expenditures from the account may be used only for the purpose described in subsection (2) of this section. Expenditures from the account may be authorized only upon the approval of both the director of the department of general administration and the commissioner, or their respective designees. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
     (4) This section expires December 31, 2007, and any unencumbered funds remaining in the vendors in good standing account on that date shall revert to the general fund.