H-321                _______________________________________________

                                                    HOUSE BILL NO. 800

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Valle, Cooper, Crane, Kremen, Zellinsky, Haugen, Hargrove, Rayburn, Heavey, P. King, Jacobsen, Ferguson, Brough, Fisch and May

Read first time 2/9/87 and referred to Committee on State Government.

AN ACT Relating to state government; amending RCW 39.29.010; and adding a new section to chapter 39.29 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 39.29 RCW to read as follows:

          (1) No agency may contract for consultant services unless the specialized skills, knowledge, and resources are unavailable in the agency, unless the work cannot be done in a reasonable time within the agency's own work force, or unless it is less expensive to contract for the work.  No such contract may be entered into unless the work contracted for is directly necessary to carry out duties of the agency as established by the legislature.

          (2) The office of financial management may adopt rules to carry out this section and to further establish procedures to restrict the use of personal service contracts to those instances contemplated by law so that expenditures are lessened, frugality promoted, and fiscal management of state government improved.  The legislative budget committee shall notify the office of financial management on contracts submitted to the committee pursuant to this chapter where it questions compliance of the agency with the intent and requirements of this chapter.

          (3) The office of financial management and the legislative budget committee shall carry out their duties under this section within existing staff levels.

        Sec. 2.  Section 1, chapter 191, Laws of 1974 ex. sess. as last amended by section 3, chapter 61, Laws of 1979 ex. sess. and RCW 39.29.010 are each amended to read as follows:

          All personal service contracts, including renewals and amendments of existing contracts, entered into by any state officer or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional and other types of institutions, shall be filed with the office of financial management and the legislative budget committee at least ten days prior to the date any work commences under such contracts regardless of the source of funds.  The director of financial management may exempt on a limited basis specific classes of personal service contracts involving activities of the executive and judicial branches after preparation of documented justification and consultation with the legislative budget committee:  PROVIDED, That approval of the exemption is granted prior to commencement of the contract work.  The office of financial management reserves the right to disapprove any proposal which fails to comply with the provisions of this chapter and rules adopted under this chapter.

          In special emergency cases when work commencement is clearly a major and overriding factor and immediate contract action is mandatory, filing may be delayed for personal service contracts involving executive and judicial branches by the director of financial management after consultation with the legislative auditor:  PROVIDED, That such filing shall be made prior to commencement of the contract work with documented justification for the filing delay.

          Standing and other committees of the legislature and officers or employees of the legislative branch shall file personal service contracts with the legislative budget committee and the office of financial management in accordance with the ten day time limitation set forth in this section.  Requests by legislative committees or personnel for either exemptions or delays in filing individual personal service contracts shall be forwarded to the legislative budget committee for review and maintenance of a central control file for use in preparation of summary reports on personal service contracts as directed by the legislature.  Filing of personal service contracts delayed for emergency purposes shall be made not more than five days after commencement of the contract work involved.