BILL REQ. #:  H-2568.1 

READ FIRST TIME 04/08/11.   

     AN ACT Relating to effectuating financial stability for the public printer; amending RCW 43.78.030, 43.78.070, 43.78.080, 43.78.100, 43.78.110, 28A.300.040, and 28B.10.029; adding new sections to chapter 43.78 RCW; adding a new section to chapter 43.41 RCW; adding a new section to chapter 43.09 RCW; creating new sections; and repealing RCW 1.08.039, 15.24.085, 15.62.190, 16.67.170, 43.78.020, and 43.78.090.

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

NEW SECTION.  Sec. 1   The purpose of this act is to establish a more competitive environment and to provide assurances to state agencies that they are receiving a competitive price by allowing the solicitation of bids from the public printer and from private vendors for all jobs that require the services of a print shop.
     The legislature intends to enable the public printer to compete effectively by eliminating price caps that make it difficult to recover its production costs, thereby permitting it to set its own prices for individual jobs with the overall goal of achieving long-term financial stability, better utilization of taxpayer resources, and value for the state of Washington.

Sec. 2   RCW 43.78.030 and 2010 1st sp.s. c 37 s 927 are each amended to read as follows:
     (1) The public printer shall print and bind the session laws, the journals of the two houses of the legislature, all bills, resolutions, documents, and other printing and binding of either the senate or house, as ((the same)) may be ordered by the legislature; and such forms, blanks, record books, and printing and binding ((of every description)) as may be ordered by ((all state officers, boards, commissions, and institutions, and)) the supreme court((,)) and the court of appeals ((and officers thereof, as the same may be ordered on requisition, from time to time, by the proper authorities)). This section shall not apply to the printing of the supreme court and the court of appeals reports((,)) or to the printing of bond certificates or bond offering disclosure documents((, to the printing of educational publications of the state historical societies, or to any printing done or contracted for by institutions of higher education: PROVIDED, That institutions of higher education, in consultation with the public printer, develop vendor selection procedures comparable to those used by the public printer for contracted printing jobs. Where any institution or institution of higher learning of the state is or may become equipped with facilities for doing such work, it may do any printing: (1) For itself, or (2) for any other state institution when such printing is done as part of a course of study relative to the profession of printer. Any printing and binding of whatever description as may be needed by any institution or agency of the state department of social and health services not at Olympia, or the supreme court or the court of appeals or any officer thereof, the estimated cost of which shall not exceed one thousand dollars, may be done by any private printing company in the general vicinity within the state of Washington so ordering, if in the judgment of the officer of the agency so ordering, the saving in time and processing justifies the award to such local private printing concern.
     Beginning on July 1, 1989, and on July 1 of each succeeding odd-numbered year, the dollar limit specified in this section shall be adjusted as follows: The office of financial management shall calculate such limit by adjusting the previous biennium's limit by an appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest fifty dollars.
     During the 2009-2011 fiscal biennium, this section does not apply to pilot printing projects authorized by the office of financial management to allow state agencies and institutions to directly acquire printing services)).
     (2) State agencies, boards, commissions, and institutions of higher education requiring the services of a print shop may use the public printer. If a print job is put out for bid, the public printer must be included in the bid solicitation. All solicitations must be posted on the state's common vendor registration and bid notification system and results provided to the public printer. All solicitations must include the requirement to use recycled copy and printing paper for all jobs printed on white copy and printing paper as is required of the public printer in RCW 43.78.170. All bid specifications must require the use of biodegradable ink.

Sec. 3   RCW 43.78.070 and 2009 c 549 s 5148 are each amended to read as follows:
     ((The public printer shall use the state printing plant upon the following conditions, to wit:
     (1) He or she shall do the public printing, and charge therefor the fees as provided by law. He or she may print the Washington Reports for the publishers thereof under a contract approved in writing by the governor.
     (2) The gross income of the public printer shall be deposited in an account designated "state printing plant revolving fund" in depositaries approved by the state treasurer, and shall be disbursed by the public printer by check and only as follows:
     First, in payment of the actual cost of labor, material, supplies, replacements, repairs, water, light, heat, telephone, rent, and all other expenses necessary in the operation of the plant: PROVIDED, That no machinery shall be purchased except on written approval of the governor;
     Second, in payment of the cost of reasonable insurance upon the printing plant, payable to the state and of all fidelity bonds required by law of the public printer;
     Third, in payment to the public printer of a salary which shall be fixed by the governor in accordance with the provisions of RCW 43.03.040;
     Fourth, in remitting the balance to the state treasurer for the general fund: PROVIDED, That a reasonable sum to be determined by the governor, the public printer, and the director of financial management shall be retained in the fund for working capital for the public printer.)) (1) The public printer must use the state printing plant and charge fees as provided by law. Any machinery purchased must have written approval of the governor.
     (2) The public printer may print the Washington Reports for the publishers under a contract approved in writing by the governor.
     (3) The public printer shall be paid a salary fixed by the governor in accordance with RCW 43.03.040.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.78 RCW to read as follows:
     (1) The public printing revolving account is created in the custody of the state treasurer. All receipts from public printing must be deposited in the account. Expenditures from the account may be used only for the administrative and operating purposes related to public printing. Only the public printer or the public printer's designee may authorize expenditures from the account. The account is subject to allotment procedures but an appropriation is not required for expenditures.
     (2) Receipts remaining in the account after expenses, plus a reasonable sum for working capital, as determined by the governor, the public printer, and the director of financial management, shall be deposited in the general fund.

Sec. 5   RCW 43.78.080 and 1972 ex.s. c 1 s 1 are each amended to read as follows:
     All printing, ruling, binding, and other work done or supplies furnished by the state printing plant ((for the various state departments, commissions, institutions, boards, and officers)) shall be paid for on an actual cost basis as determined from a standard cost finding system to be maintained by the state printing plant. ((In no event shall the price charged the various state departments, commissions, institutions, boards, and officers exceed those established by the Porte Publishing Company's Franklin Printing Catalogue for similar and comparable work. All bills for printing, ruling, binding, and other work done or for supplies furnished by the state printing plant shall be certified and sworn to by the public printer.
     The public printing shall be divided into the following classes:
     FIRST CLASS. The bills, resolutions, and other matters that may be ordered by the legislature, or either branch thereof, in bill form, shall constitute the first class, and shall be printed in such form as the legislature shall provide.
     SECOND CLASS. The second class shall consist of printing and binding of journals of the senate and house of representatives, and the annual and biennial reports of the several state officers, state commissions, boards, and institutions, with the exception of the reports of the attorney general and the governor's message to the legislature, which shall be printed and bound in the same style as heretofore. Said journals and reports shall be printed in such form as the senate and house of representatives and the various state officers, commissions, boards, and institutions shall respectively provide.
     THIRD CLASS. The third class shall consist of all reports, communications, and all other documents that may be ordered printed in book form by the legislature or either branch thereof, and all reports, books, pamphlets, and other like matter printed in book form required by all state officers, boards, commissions, and institutions shall be printed in such form and style, and set in such size type, and printed on such grade of paper as may be desired by the state officer, board, commission, or institution ordering them, and which they think will best serve the purpose for which intended.
     FOURTH CLASS. The fourth class shall consist of the session laws, and shall be printed and bound in such form as the statute law committee shall provide.
     FIFTH CLASS. The fifth class shall consist of the printing of all stationery blanks, record books, and circulars, and all printing and binding required by the respective state officers, boards, commissions, and institutions not covered by classes one, two, three, and four.)) The public printer must update its budgeted hourly rate model, as needed, to accurately reflect its operational costs.

Sec. 6   RCW 43.78.100 and 1993 c 379 s 106 are each amended to read as follows:
     The public printer shall furnish all paper, stock, and binding materials required in all public work, and shall charge the same to the state, as it is actually used, at the actual price at which it was purchased plus up to five percent for waste, insurance, storage, and handling. This section does not apply to institutions of higher education.

Sec. 7   RCW 43.78.110 and 2009 c 486 s 12 are each amended to read as follows:
     (1) Whenever in the judgment of the public printer certain printing, ruling, binding, or supplies can be secured from private sources more economically than by doing the work or preparing the supplies in the state printing plant, the public printer may obtain such work or supplies from such private sources. The bid solicitation ((for the contract opportunity)) must be posted ((on the state's common vendor registration and bid)) to the public printer vendor notification system. The public printer shall develop procurement policies and procedures, such as unbundled contracting and subcontracting, that encourage and facilitate the purchase of such services or supplies from Washington small businesses to the maximum extent practicable and consistent with international trade agreement commitments.
     (2) In the event any work or supplies are secured on behalf of the state under this section, the ((state printing plant shall be entitled to)) public printer may add up to five percent to the cost ((thereof)) to cover the handling of the orders ((which shall be added to the bills and charged to the respective authorities ordering the work or supplies. The five percent handling charge shall not apply to contracts with institutions of higher education)).
     (3) The definitions in this subsection apply throughout this section.
     (a) "Common vendor registration and bid notification system" has the definition in RCW 39.29.006.
     (b) "Small business" has the definition in RCW 39.29.006.

NEW SECTION.  Sec. 8   A new section is added to chapter 43.78 RCW to read as follows:
     (1) To reduce duplication of services, streamline the coordination and management of printing services for the state, and minimize long-term costs, state agencies and institutions of higher education as defined in RCW 28B.10.016 with in-house print shops must consolidate printing equipment and staff with the public printer. Some excess capacity is permitted at the public printer to accommodate normal fluctuations in demand.
     (2) This section does not apply to the legislature.

NEW SECTION.  Sec. 9   A new section is added to chapter 43.41 RCW to read as follows:
     To improve the efficiency and minimize the costs of agency-based printing, the office shall establish rules and guidelines for all agencies to use in managing their printing operations, including both agency-based printing and those jobs that require the services of a print shop, as based on the successes of implementation of existing print management programs in state agencies. At a minimum, the rules and guidelines must implement managed print strategies to track, manage, and reduce agency-based printing.

NEW SECTION.  Sec. 10   The office of financial management must determine which agencies have print shops and shall prepare proposed legislation by November 15, 2011, to transfer the print shop personnel, equipment, and activities of state agencies and institutions of higher education as defined in RCW 28B.10.016 to the public printer.

NEW SECTION.  Sec. 11   A new section is added to chapter 43.09 RCW to read as follows:
     By November 1, 2016, building on the findings of the 2011 audit, the state auditor shall conduct a comprehensive performance audit of state printing services in accordance with RCW 43.09.470. Following the audit in 2016, the state auditor shall conduct follow-up audits as deemed necessary to ensure effective implementation of this act.

Sec. 12   RCW 28A.300.040 and 2009 c 556 s 10 are each amended to read as follows:
     In addition to any other powers and duties as provided by law, the powers and duties of the superintendent of public instruction shall be:
     (1) To have supervision over all matters pertaining to the public schools of the state;
     (2) To report to the governor and the legislature such information and data as may be required for the management and improvement of the schools;
     (3) To prepare and have printed such forms, registers, courses of study, rules for the government of the common schools, and such other material and books as may be necessary for the discharge of the duties of teachers and officials charged with the administration of the laws relating to the common schools, and to distribute the same to educational service district superintendents;
     (4) To travel, without neglecting his or her other official duties as superintendent of public instruction, for the purpose of attending educational meetings or conventions, of visiting schools, and of consulting educational service district superintendents or other school officials;
     (5) To prepare and from time to time to revise a manual of the Washington state common school code, copies of which shall be made available online and which shall be sold at approximate actual cost of publication and distribution per volume to public and nonpublic agencies or individuals, said manual to contain Titles 28A and 28C RCW, rules related to the common schools, and such other matter as the state superintendent or the state board of education shall determine((. Proceeds of the sale of such code shall be transmitted to the public printer who shall credit the state superintendent's account within the state printing plant revolving fund by a like amount));
     (6) To file all papers, reports and public documents transmitted to the superintendent by the school officials of the several counties or districts of the state, each year separately. Copies of all papers filed in the superintendent's office, and the superintendent's official acts, may, or upon request, shall be certified by the superintendent and attested by the superintendent's official seal, and when so certified shall be evidence of the papers or acts so certified to;
     (7) To require annually, on or before the 15th day of August, of the president, manager, or principal of every educational institution in this state, a report as required by the superintendent of public instruction; and it is the duty of every president, manager, or principal, to complete and return such forms within such time as the superintendent of public instruction shall direct;
     (8) To keep in the superintendent's office a record of all teachers receiving certificates to teach in the common schools of this state;
     (9) To issue certificates as provided by law;
     (10) To keep in the superintendent's office at the capital of the state, all books and papers pertaining to the business of the superintendent's office, and to keep and preserve in the superintendent's office a complete record of statistics, as well as a record of the meetings of the state board of education;
     (11) With the assistance of the office of the attorney general, to decide all points of law which may be submitted to the superintendent in writing by any educational service district superintendent, or that may be submitted to the superintendent by any other person, upon appeal from the decision of any educational service district superintendent; and the superintendent shall publish his or her rulings and decisions from time to time for the information of school officials and teachers; and the superintendent's decision shall be final unless set aside by a court of competent jurisdiction;
     (12) To administer oaths and affirmations in the discharge of the superintendent's official duties;
     (13) To deliver to his or her successor, at the expiration of the superintendent's term of office, all records, books, maps, documents and papers of whatever kind belonging to the superintendent's office or which may have been received by the superintendent's for the use of the superintendent's office;
     (14) To administer family services and programs to promote the state's policy as provided in RCW 74.14A.025;
     (15) To promote the adoption of school-based curricula and policies that provide quality, daily physical education for all students, and to encourage policies that provide all students with opportunities for physical activity outside of formal physical education classes;
     (16) To perform such other duties as may be required by law.

Sec. 13   RCW 28B.10.029 and 2010 c 61 s 1 are each amended to read as follows:
     (1)(a) An institution of higher education may exercise independently those powers otherwise granted to the director of general administration in chapter 43.19 RCW in connection with the purchase and disposition of all material, supplies, services, and equipment needed for the support, maintenance, and use of the respective institution of higher education.
     (b) Property disposition policies followed by institutions of higher education shall be consistent with policies followed by the department of general administration.
     (c) Purchasing policies and procedures followed by institutions of higher education shall be in compliance with chapters 39.19, 39.29, and 43.03 RCW, and RCW 43.19.1901, 43.19.1906, 43.19.1911, 43.19.1917, 43.19.1937, 43.19.534, 43.19.685, 43.19.700 through 43.19.704, and 43.19.560 through 43.19.637.
     (d) Purchases under chapter 39.29, 43.19, or 43.105 RCW by institutions of higher education may be made by using contracts for materials, supplies, services, or equipment negotiated or entered into by, for, or through group purchasing organizations.
     (e) The community and technical colleges shall comply with RCW 43.19.450.
     (f) Except for the University of Washington, institutions of higher education shall comply with RCW 43.41.310, 43.41.290, and 43.41.350.
     (g) If an institution of higher education can satisfactorily demonstrate to the director of the office of financial management that the cost of compliance is greater than the value of benefits from any of the following statutes, then it shall be exempt from them: RCW 43.19.685, 43.19.534, and 43.19.637.
     (h) Any institution of higher education that chooses to exercise independent purchasing authority for a commodity or group of commodities shall notify the director of general administration. Thereafter the director of general administration shall not be required to provide those services for that institution for the duration of the general administration contract term for that commodity or group of commodities.
     (2) The council of presidents and the state board for community and technical colleges shall convene its correctional industries business development advisory committee, and work collaboratively with correctional industries, to:
     (a) Reaffirm purchasing criteria and ensure that quality, service, and timely delivery result in the best value for expenditure of state dollars;
     (b) Update the approved list of correctional industries products from which higher education shall purchase; and
     (c) Develop recommendations on ways to continue to build correctional industries' business with institutions of higher education.
     (3) Higher education and correctional industries shall develop a plan to build higher education business with correctional industries to increase higher education purchases of correctional industries products, based upon the criteria established in subsection (2) of this section. The plan shall include the correctional industries' production and sales goals for higher education and an approved list of products from which higher education institutions shall purchase, based on the criteria established in subsection (2) of this section. Higher education and correctional industries shall report to the legislature regarding the plan and its implementation no later than January 30, 2005.
     (4) Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2006, to purchase one percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections. Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2008, to purchase two percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections.
     (5) ((An institution of higher education may exercise independently those powers otherwise granted to the public printer in chapter 43.78 RCW in connection with the production or purchase of any printing and binding needed by the respective institution of higher education.)) Purchasing policies and procedures followed by institutions of higher education shall be in compliance with chapter 39.19 RCW. Any institution of higher education that chooses to exercise independent printing production or purchasing authority shall notify the public printer. Thereafter the public printer shall not be required to provide those services for that institution.

NEW SECTION.  Sec. 14   The following acts or parts of acts are each repealed:
     (1) RCW 1.08.039 (Publication, sale, and distribution of code and supplements -- Contracts or other arrangements) and 1955 c 235 s 8 & 1953 c 257 s 12;
     (2) RCW 15.24.085 (Promotional printing not restricted by public printer laws) and 2002 c 313 s 121 & 1961 c 11 s 15.24.085;
     (3) RCW 15.62.190 (Promotional printing and literature -- Exempt from public printing requirements) and 1989 c 5 s 19;
     (4) RCW 16.67.170 (Promotional printing not restricted by public printer laws) and 1969 c 133 s 16;
     (5) RCW 43.78.020 (Bond) and 2009 c 549 s 5147 & 1965 c 8 s 43.78.020; and
     (6) RCW 43.78.090 (Reprinting) and 1965 c 8 s 43.78.090.