BILL REQ. #:  H-4170.2 

Read first time 02/03/2004.   Referred to Committee on State Government.

     AN ACT Relating to purchasing state services; reenacting and amending RCW 43.19.1905; and creating new sections.

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

NEW SECTION.  Sec. 1   The legislature finds that the department of social and health services' medical assistance administration's brokerage contracting services implemented in 1988 has saved the state and taxpayers millions of dollars.
     The legislature intends that all administrative departments in state government participate in the competitive bidding process of the department of social and health services' medical assistance administration's brokerage system. It is intended that this participation will save tax dollars while increasing the services provided to a greater number of persons.

Sec. 2   RCW 43.19.1905 and 2002 c 299 s 5 and 2002 c 285 s 1 are each reenacted and amended to read as follows:
     The director of general administration shall establish overall state policy for compliance by all state agencies, including educational institutions, regarding the following purchasing and material control functions:
     (1) Development of a state commodity coding system, including common stock numbers for items maintained in stores for reissue;
     (2) Determination where consolidations, closures, or additions of stores operated by state agencies and educational institutions should be initiated;
     (3) Institution of standard criteria for determination of when and where an item in the state supply system should be stocked;
     (4) Establishment of stock levels to be maintained in state stores, and formulation of standards for replenishment of stock;
     (5) Formulation of an overall distribution and redistribution system for stock items which establishes sources of supply support for all agencies, including interagency supply support;
     (6) Determination of what function data processing equipment, including remote terminals, shall perform in statewide purchasing and material control for improvement of service and promotion of economy;
     (7) Standardization of records and forms used statewide for supply system activities involving purchasing, receiving, inspecting, storing, requisitioning, and issuing functions, including a standard notification form for state agencies to report cost-effective direct purchases, which shall at least identify the price of the goods as available through the division of purchasing, the price of the goods as available from the alternative source, the total savings, and the signature of the notifying agency's director or the director's designee;
     (8) Screening of supplies, material, and equipment excess to the requirements of one agency for overall state need before sale as surplus;
     (9) Establishment of warehouse operation and storage standards to achieve uniform, effective, and economical stores operations;
     (10) Establishment of time limit standards for the issuing of material in store and for processing requisitions requiring purchase;
     (11) Formulation of criteria for determining when centralized rather than decentralized purchasing shall be used to obtain maximum benefit of volume buying of identical or similar items, including procurement from federal supply sources;
     (12) Development of criteria for use of leased, rather than state owned, warehouse space based on relative cost and accessibility;
     (13) Institution of standard criteria for purchase and placement of state furnished materials, carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or renovated state buildings;
     (14) Determination of how transportation costs incurred by the state for materials, supplies, services, and equipment can be reduced by improved freight and traffic coordination and control;
     (15) Establishment of a formal certification program for state employees who are authorized to perform purchasing functions as agents for the state under the provisions of chapter 43.19 RCW;
     (16) Development of performance measures for the reduction of total overall expense for material, supplies, equipment, and services used each biennium by the state;
     (17) Establishment of a standard system for all state organizations to record and report dollar savings and cost avoidance which are attributable to the establishment and implementation of improved purchasing and material control procedures;
     (18) Development of procedures for mutual and voluntary cooperation between state agencies, including educational institutions, and political subdivisions for exchange of purchasing and material control services;
     (19) Resolution of all other purchasing and material matters which require the establishment of overall statewide policy for effective and economical supply management;
     (20) Development of guidelines and criteria for the purchase of vehicles, high gas mileage vehicles, alternate vehicle fuels and systems, equipment, and materials that reduce overall energy-related costs and energy use by the state, including investigations into all opportunities to aggregate the purchasing of clean technologies by state and local governments, and including the requirement that new passenger vehicles purchased by the state meet the minimum standards for passenger automobile fuel economy established by the United States secretary of transportation pursuant to the energy policy and conservation act (15 U.S.C. Sec. 2002);
     (21) Development of goals for state use of recycled or environmentally preferable products through specifications for products and services, processes for requests for proposals and requests for qualifications, contractor selection, and contract negotiations; and
     (22) Implementation of a purchasing system requiring state agencies that purchase services on a regional basis to utilize the brokerage system developed and managed by the department of social and health services' medical assistance administration in accordance with RCW 39.29.040 and 43.19.190.

NEW SECTION.  Sec. 3   The director of general administration shall report to the legislature by December 1, 2004, on services provided by state agencies that should use the brokerage system under RCW 43.19.1905(22).