S-786                 _______________________________________________

                                                   SENATE BILL NO. 3754

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Bluechel, McDonald, Kiskaddon, Deccio, Craswell, Newhouse, Bailey, Hayner, Benitz, Cantu, Zimmerman, Saling and Lee

Read first time 2/6/85 and referred to Committee on Governmental Operations.

AN ACT Relating to private sector services; and amending RCW 28B.16.240, 41.06.380, and 43.19.1921.

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

        Sec. 1.  Section 1, chapter 46, Laws of 1979 ex. sess. and RCW 28B.16.240 are each amended to read as follows:

          ((Nothing contained in)) The establishment of a system of personnel administration under this chapter shall not prohibit any institution of higher education, as defined in RCW 28B.10.016, or related board from purchasing services by contract with individuals or business entities ((if such services were regularly purchased by valid contract at such institution prior to April 23, 1979:  PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)) in the private sector if the action clearly will enhance efficiency, effectiveness, and economy in maintenance and operation functions of state government:  PROVIDED, That the supply management advisory board shall arbitrate, under the appeal provisions of RCW 43.19.1904, any differences which may arise between interested parties regarding benefits and the degree of financial savings to the state expected to be achieved by purchase of services from a private business enterprise.

        Sec. 2.  Section 2, chapter 46, Laws of 1979 ex. sess. and RCW 41.06.380 are each amended to read as follows:

          ((Nothing contained in)) The establishment of a system of personnel administration under this chapter shall not prohibit ((any department, as defined in RCW 41.06.020,)) an agency from purchasing services by contract with individuals or business entities ((if such services were regularly purchased by valid contract by such department prior to April 23, 1979:  PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)) in the private sector if the action clearly will enhance efficiency, effectiveness, and economy in the maintenance and operation functions of state government:  PROVIDED, That the supply management advisory board shall arbitrate, under the appeal provisions of RCW 43.19.1904, any differences which may arise between interested parties regarding benefits and the degree of financial savings to the state expected to be achieved by purchase of services from a private business enterprise.

        Sec. 3.  Section 43.19.1921, chapter 8, Laws of 1965 as amended by section 100, chapter 151, Laws of 1979 and RCW 43.19.1921 are each amended to read as follows:

          The director of general administration, through the division of purchasing, shall:

          (1) Establish and maintain warehouses hereinafter referred to as "central stores" for the centralized storage and distribution of such supplies, equipment, and other items of common use in order to effect economies in the purchase of supplies and equipment for state agencies.  To provide central stores warehouse facilities the division of purchasing may, by arrangement with the state agencies, utilize any surplus available state owned space, and may acquire other needed warehouse facilities by lease or purchase of the necessary premises;

          (2) Provide for the central salvage, maintenance, repair, and servicing of equipment, furniture, or furnishings used by state agencies, and also by means of such a service provide an equipment pool for effecting sales and exchanges of surplus and unused property by and between state agencies:  PROVIDED, That services for maintenance and repair of equipment, furniture, or furnishings used by state agencies shall be obtained from individuals or business entities in the private sector if the action will clearly enhance efficiency, effectiveness, and economy of state government.  The supply management advisory board shall arbitrate, under the appeal provisions of RCW 43.19.1904, any differences which may arise between interested parties concerning benefits and financial savings expected to be achieved by obtaining services from a private business enterprise, rather than from state-owned facilities authorized by this subsection.  Funds derived from the sale and exchange of property shall be placed to the account of the appropriate state agency on the central stores accounts but such funds may not be expended through central stores without prior approval of the office of financial management.