SENATE BILL REPORT

SB 5111

BYSenators Hansen, Rasmussen, Barr, Benitz, Owen, Vognild, Bauer, Johnson, Deccio and West

Restricting state personal service contracts.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 11, 1987

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7405)

AS OF FEBRUARY 10, 1987

BACKGROUND:

Although personal service contracts of state agencies must be filed with the Office of Financial Management (OFM) and the Legislative Budget Committee (LBC), current law does not include any requirement for approval of such contracts.

SUMMARY:

All personal contracts are subject to prior approval by OFM; the requirement of filing with LBC is continued.  The Director of OFM must adopt rules for disapproving personal service contracts that are unjustified or that involve tasks which should be performed by staff of the contracting agency.  OFM may not approve any personal service contract that is not competitively bid under the rules.

In addition to being prohibited from expending funds for personal service contracts, state agencies are also prohibited from entering into such contracts without complying with the approval process.  Exemptions for contracts specifying a fee of less than $2,500 and for those awarded on a formal documented bidding procedure are deleted.

Fiscal Note:      available