HOUSE BILL REPORT

EHB 2911

As Amended by the Senate

BYRepresentatives Nutley and Todd

Exempting school districts and associated students of school districts from certain contract prohibitions.

House Committe on State Government

Majority Report:  Do pass.  (8)

      Signed by Representatives Todd, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; R. Fisher, Hankins, Morris, O'Brien and Silver.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE FEBRUARY 7, 1990

BACKGROUND:

State law prohibits a municipal officer from being directly or indirectly beneficially interested in any contract which is made under the supervision of the officer.  The municipal officers governed by this prohibition include the members of the boards of directors of school districts.  Exceptions to this rule are provided by state law.

SUMMARY:

An exemption is established to the rule provided by law that a municipal officer must not be directly or indirectly beneficially interested in a contract which is made under the supervision of the officer.  This rule does not apply to a member of a school board regarding the letting of a contract for goods by competitive bid by the school district or by the associated students of the district.  The exemption applies only if:  (1) the member discloses the interest by filing a statement regarding it with the county auditor, (2) the member does not participate in any decision of the district regarding the letting of the contract, (3) the member does not personally contact any official or employee of the district to facilitate the preparation of the contract, to promote the awarding of the contract, or to influence the manner in which it is performed, and (4) prior to becoming a member, the member had a similar contractual relationship with the district or associated students for the same kind of goods.

EFFECT OF SENATE AMENDMENTS:  The amendments establish additional requirements for a school board member's contract that qualifies for the exemption provided by the bill.  The contract must have been entered into before the effective date of the bill or must be a renewal of such a contract; and the board member must have held office before the effective date of the bill.

Fiscal Note:      Not Requested.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Fred Swanstrom, Washington School Directors' Association and Washington Association of School Administrators.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The bill permits a person to serve on a school board without the person's business automatically having to give up sales of goods to the district.  It is hard enough in small communities to find people to serve on boards without also imposing the current restrictions on their businesses.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 90; Nays 4; Excused 4

Voting Nay: Representatives Betrozoff, Heavey, Holland, Pruitt.

Excused:    Representatives Appelwick, Doty, Gallagher, Meyers R.