SENATE BILL REPORT

SB 6715

BYSenators McCaslin, Patterson and Hansen

Changing provisions relating to the purchase by state entities of services by contract.

Senate Committee on Governmental Operations

Senate Hearing Date(s):January 30, 1990

Senate Staff:Barbara Howard (786-7410)

AS OF JANUARY 29, 1990

BACKGROUND:

The idea of "contracting out" public services to the private sector -- having services for governmental agencies provided by private contractors -- has gained some popularity in recent years.  Among those Washington sources from which recommendations have come for private contracting, or "privatization" include the 1989 Governor's Conference on Small Business and a study by the Washington Research Council.

State Supreme Court decisions in 1971 and 1978 have limited the extent to which such private contracts can intrude upon the state's provisions for civil service.  In the first case, the court concluded that a private contract for food services at Olympic College could not be used if it could result in termination of civil service employees.  In the second -- involving custodial services for a proposed new building at Spokane Community College -- the court held that the general power of the Purchasing Director could not be interpreted to authorize contracts for services capable of being provided by civil servants.

In 1979, the Legislature responded to the court's action by adopting legislation for both the state civil service and employees (Chap. 41.06 RCW) under the Higher Education Personnel Act (Chap. 28B.16 RCW).  These provisions allowed private contracts if (1) such services had been regularly purchased by contract prior to April 23, 1979 or (2) it did not have the effect of terminating classified employees or classified employee positions.

SUMMARY:

The limitations on private contracts for state services are removed for both institutions under the Higher Education Personnel Act and for agencies covered by the State Civil Service Law.

In higher education, nonacademic employees employed directly by the institution of higher education or related boards may not be exempted from civil service, but the list of exemptions is expanded to include an employer or individual who has contracted for delivery of service.

In both civil service laws, the language limiting contracts for services is deleted.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested January 29, 1990