AN ACT Relating to supply management; amending RCW 43.19.1904, 43.19.1905, 43.19.538, and 70.95C.110; adding a new section to Title 28B RCW; adding new sections to chapter 43.19 RCW; adding a new section to Title 44 RCW; and repealing RCW 43.19.537 and 43.19.538.

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

Sec. 1. Section 43.19.1904, chapter 8, laws of 1965 as last amended by section 2, chapter 88, Laws of 1979 and RCW 43.19.1904 are each amended to read as follows:

The state supply management advisory board shall advise and give assistance to the director of general administration in planning and carrying out an efficient and economical purchasing and material control program.

The state supply management advisory board shall review and make recommendations to the director with respect to:

(1) Standards and specifications for all items of material, supplies, and equipment of common usage in all state agencies and educational institutions;

(2) Specifications for specific items of material, supplies, and equipment referred to it by the division of purchasing;

(3) Standards for the purchase, replacement, and repair of automotive equipment consistent with the needs and location of state agencies;

(4) A uniform system of inventory control for material and supplies;

(5) Purchase of recycled paper, products, materials, compost, and compost products under sections 5 through 14 of this act and RCW 70.95C.110;

(6) All other matters referred to it by the director of general administration or by a member of the advisory board.

The state supply management advisory board shall act as an appeals board to hear appeals on matters involving a state agency and the division of purchasing, and shall render its decision relating thereto within thirty days after filing of the appeal. The findings and actions of the board shall be binding upon the respective state agencies including all offices, institutions, educational institutions, and departments.

Public funds shall not be expended by any agency for substitutions for material, supplies, and equipment for which standards have been established by the division of purchasing after consulting with and receiving the recommendations of the board unless prior written approval is obtained from the state purchasing and material control director.

Sec. 2. Section 5, chapter 21, Laws of 1975-'76 2nd ex. sess. as last amended by section 16, chapter 504, Laws of 1987 and RCW 43.19.1905 are each amended to read as follows:

The director of general administration, after consultation with the supply management advisory board shall establish overall state policy for compliance by all state agencies, including educational institutions, regarding the following purchasing and material control functions:

(a) Development of a state commodity coding system, including common stock numbers for items maintained in stores for reissue;

(b) Determination where consolidations, closures, or additions of stores operated by state agencies and educational institutions should be initiated;

(c) Institution of standard criteria for determination of when and where an item in the state supply system should be stocked;

(d) Establishment of stock levels to be maintained in state stores, and formulation of standards for replenishment of stock;

(e) Formulation of an overall distribution and redistribution system for stock items which establishes sources of supply support for all agencies, including interagency supply support;

(f) Determination of what function data processing equipment, including remote terminals, shall perform in state-wide purchasing and material control for improvement of service and promotion of economy;

(g) Standardization of records and forms used state-wide for supply system activities involving purchasing, receiving, inspecting, storing, requisitioning, and issuing functions under the provisions of RCW 43.19.510;

(h) Screening of supplies, material, and equipment excess to the requirements of one agency for overall state need before sale as surplus;

(i) Establishment of warehouse operation and storage standards to achieve uniform, effective, and economical stores operations;

(j) Establishment of time limit standards for the issuing of material in store and for processing requisitions requiring purchase;

(k) Formulation of criteria for determining when centralized rather than decentralized purchasing shall be used to obtain maximum benefit of volume buying of identical or similar items, including procurement from federal supply sources;

(l) Development of criteria for use of leased, rather than state owned, warehouse space based on relative cost and accessibility;

(m) Institution of standard criteria for purchase and placement of state furnished materials, carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or renovated state buildings;

(n) Determination of how transportation costs incurred by the state for materials, supplies, services, and equipment can be reduced by improved freight and traffic coordination and control;

(o) Establishment of a formal certification program for state employees who are authorized to perform purchasing functions as agents for the state under the provisions of this chapter ((~~43.19 RCW~~));

(p) Development of performance measures for the reduction of total overall expense for material, supplies, equipment, and services used each biennium by the state;

(q) Establishment of a standard system for all state organizations to record and report dollar savings and cost avoidance which are attributable to the establishment and implementation of improved purchasing and material control procedures;

(r) Development of procedures for mutual and voluntary cooperation between state agencies, including educational institutions, and political subdivisions for exchange of purchasing and material control services;

(s) Resolution of all other purchasing and material matters referred to ((~~him~~)) the director by a member of the advisory board which require the establishment of overall state-wide policy for effective and economical supply management;

(t) Development of guidelines and criteria for the purchase of vehicles, alternate vehicle fuels and systems, equipment, and materials that reduce overall energy-related costs and energy use by the state, including the requirement that new passenger vehicles purchased by the state meet the minimum standards for passenger automobile fuel economy established by the United States secretary of transportation pursuant to the energy policy and conservation act (15 U.S.C. Sec. 2002);

(u) Development of rules for the purchase and procurement of products and materials under sections 5 through 14 of this act.

Sec. 3. Section 2, chapter 61, Laws of 1982 as last amended by section 2, chapter 175, Laws of 1988 and RCW 43.19.538 are each amended to read as follows:

(1) The director of general administration, through the state purchasing director, shall develop specifications and adopt rules for the purchase of products which will provide for preferential purchase of products containing recovered material by:

(a) The use of a weighting factor determined by the amount of recovered material in a product, where appropriate and known in advance to potential bidders, to determine the lowest responsible bidder. The actual dollars bid shall be the contracted amount. If the department determines, according to criteria established by rule that the use of this weighting factor does not encourage the use of more recovered material, the department shall consider and award bids without regard to the weighting factor. In making this determination, the department shall consider but not be limited to such factors as adequate competition, economics or environmental constraints, quality, and availability.

(b) Requiring a written statement of the percentage range of recovered material content from the bidder providing products containing recovered material. The range may be stated in fifteen percent increments.

(2) The director shall develop a directory of businesses that supply products containing significant quantities of recovered materials.

(3) The director shall encourage all parties using the state purchasing office to purchase products containing recovered materials and shall promulgate rules governing such purchases to achieve the percentage goals for purchase of these products provided in sections 6 and 13 of this act.

Sec. 4. Section 53, chapter 431, Laws of 1989 and RCW 70.95C.110 are each amended to read as follows:

The legislature finds and declares that the buildings and facilities owned and leased by state government produce significant amounts of solid and hazardous wastes, and actions must be taken to reduce and recycle these wastes and thus reduce the costs associated with their disposal. In order for the operations of state government to provide the citizens of the state an example of positive waste management, the legislature further finds and declares that state government should undertake an aggressive program designed to reduce and recycle solid and hazardous wastes produced in the operations of state buildings and facilities to the maximum extent possible.

The office of waste reduction, in cooperation with the department of general administration, shall establish an intensive waste reduction and recycling program to promote the reduction of waste produced by state agencies and to promote the source separation and recovery of recyclable and reusable materials.

All state agencies, including but not limited to, colleges, community colleges, universities, offices of elected and appointed officers, the supreme court, court of appeals, and administrative departments of state government shall fully cooperate with the office of waste reduction and recycling in all phases of implementing the provisions of this section. The office shall establish a coordinated state plan identifying each agency's participation in waste reduction and recycling. The office shall develop the plan in cooperation with a multi-agency committee on waste reduction and recycling. Appointments to the committee shall be made by the director of the department of general administration. The director shall notify each agency of the committee, which shall implement the applicable waste reduction and recycling plan elements. ((~~All state agencies are to use maximum efforts to achieve a goal of increasing the use of recycled paper by fifty percent by July 1, 1993.~~))

NEW SECTION. Sec. 5. A new section is added to chapter 43.19 RCW to read as follows:

(1) The director of general administration shall revise its procedures, specifications, and rules for purchases of paper products to give preference, whenever feasible, to the purchase of paper products containing recycled products as defined in this section. The director shall review the current specifications to identify and eliminate, whenever economically feasible, discrimination against the procurement of recycled paper.

(2) The director shall give a preference to the suppliers of recycled paper products. This preference shall be up to five percent of the lowest bid or price quoted by suppliers offering nonrecycled paper products. The combined dollar amount of preference granted pursuant to this section shall not exceed one hundred thousand dollars, except as otherwise provided in this subsection. The recycled paper bidder preference shall not exceed fifty thousand dollars if a preference exceeding that amount would preclude an award to a small business that offers nonrecycled paper products and is qualified through the office of minority and women's business enterprises. The small business exception shall apply only when the small business is the lowest responsible bidder or is eligible for contract award on the basis of application of the minority and women's business enterprises preference.

(3) To encourage the use of postconsumer waste, as defined in this section, the director's specifications shall require recycled paper product contracts to be awarded, whenever possible, to the bidder whose paper product contains the greater percentage of postconsumer waste.

(4) For the purposes of this section and sections 5 through 14 of this act, unless the context clearly requires otherwise:

(a) "Recycled paper product" means a paper product, which includes fine grades of paper, corrugated boxes, newsprint, tissue, and toweling, with not less than fifty percent of its total weight consisting of secondary and postconsumer waste and with not less than ten percent of its total weight consisting of postconsumer waste. It also means all paper and woodpulp products containing postconsumer waste and secondary waste materials, as defined in this section.

(b) "Postconsumer waste" means a finished material which would normally be disposed of as a solid waste, having completed its life cycle as a consumer item.

(c) "Secondary waste" means fragments of finished products, or finished products of a manufacturing process, which has converted a virgin resource into a commodity of real economic value, and includes postconsumer waste, but does not include fibrous waste generated during the manufacturing process such as fibers recovered from waste water or trimmings of paper machine rolls (mill broke), wood slabs, chips, sawdust, or other wood residue from a manufacturing process.

NEW SECTION. Sec. 6. A new section is added to chapter 43.19 RCW to read as follows:

The department shall revise its procurement policies and practices as necessary to achieve the following goals for the purchasing of recycled paper products:

(1) By January 1, 1992, at least thirty-five percent of the total dollar amount of paper products purchased or procured by the department shall be purchased as a recycled paper product.

(2) By January 1, 1994, at least forty percent of the total dollar amount of paper products purchased or procured by the department shall be purchased as a recycled paper product.

(3) By January 1, 1996, at least fifty percent of the total dollar amount of paper products purchased or procured by the department shall be purchased as a recycled paper product.

NEW SECTION. Sec. 7. A new section is added to chapter 43.19 RCW to read as follows:

The head of any state agency may print a symbol on recycled paper products selected by the agency head that indicates the recycled nature of the paper. The symbol shall be similar to "Printed on Recycled Paper." The symbol shall be approved by the director of general administration prior to its use.

NEW SECTION. Sec. 8. A new section is added to chapter 43.19 RCW to read as follows:

All contracts entered into by a state agency or educational institution involving an expenditure for goods and materials over fifty thousand dollars shall include a written certification, under penalty of perjury, to the agency or institution awarding the contract, of the percentage of recycled content, both postconsumer and secondary waste, in materials, goods, or supplies offered or products used in the performance of the contract. The certification shall include recycled paper products, compost and co-compost products, glass, oil, plastic, solvents and paint, and tires. It shall not include pavement.

NEW SECTION. Sec. 9. A new section is added to chapter 43.19 RCW to read as follows:

The director shall establish purchasing practices which, to the maximum extent economically feasible, assure purchase of materials which may be recycled or reused when discarded. The director shall consult with the office of waste reduction within the department of ecology, chapter 70.95C RCW, in establishing these waste reduction practices.

NEW SECTION. Sec. 10. A new section is added to chapter 43.19 RCW to read as follows:

The director shall establish a recyclable materials separation and collection procedure to be followed by the state buildings and grounds personnel responsible for waste collection. The procedure shall emphasize source separation and shall include training for waste collection personnel and for building occupants.

NEW SECTION. Sec. 11. A new section is added to chapter 43.19 RCW to read as follows:

(1) All state agencies and educational institutions shall give purchase preference to compost and co-compost products when they can be substituted for, and cost no more than, the cost of regular fertilizer or soil amendment products, or both. Product preference shall include products used in the construction of noise attenuation barriers and safety walls, highway planting projects, and recultivation and erosion control programs.

(2) It is the intent of the legislature that the revenues derived from the state's purchase of co-compost products from counties, cities, and local agencies will be used by such governmental units to offset the costs of construction, operation, and maintenance of co-compost waste disposal facilities.

(3) (a) For purposes of this section, "co-compost product" means an end product which meets all of the following requirements:

(i) It is derived from a blending of materials, of which at least eighty percent, whenever possible, is household refuse and the remainder is sewage sludge or other comparable substitutes, including, but not limited to, nontoxic dairy wastes, livestock and horse manure, or fish wastes.

(ii) It is usable.

(iii) It is produced by the waste management facilities of counties, cities, or local agencies, or of private entities.

(b) For purposes of this section, "compost product" means an end product which meets all of the following requirements:

(i) It is derived from the controlled biological decomposition of a blend of organic wastes, including, but not limited to, wood byproducts, plant waste, yard refuse, or sewage sludge.

(ii) It is usable.

(iii) It is produced by the waste management facilities of counties, cities, or local agencies, or of private entities.

(4) All state agencies and educational institutions procuring compost and co-compost products in procurement, service, or construction contracts shall report to the department their purchasing activities, including total contracting dollars, volume, and number of contracts. The department shall establish standard reporting practices requiring reports on a periodic basis no less than annually.

NEW SECTION. Sec. 12. A new section is added to chapter 43.19 RCW to read as follows:

(1) All state procurement and purchasing specifications shall be established in a manner which results in the maximum procurement and purchase of recycled products.

(2) Except for recycled paper products as provided under section 5 of this act, a purchasing preference shall be given to recycled products when:

(a) The product meets the applicable definition of subsection (3) of this section;

(b) The product can be substituted for a comparable nonrecycled product; and

(3) For the purposes of this section:

(a) "Recycled product" means all materials, goods, and supplies, no less than fifty percent of the total weight of which consists of secondary and postconsumer waste with not less than ten percent of its total weight consisting of postconsumer waste. A recycled product shall include any product which could have been disposed of as solid waste having completed its life cycle as a consumer item, but otherwise is refurbished for reuse without substantial alteration of its form.

(b) "Postconsumer waste" means a finished material which would have been disposed of as a solid waste, having completed its life cycle as a consumer item, and does not include manufacturing wastes.

(c) "Secondary waste" means fragments of finished products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes postconsumer waste, but does not include excess virgin resources of the manufacturing process.

NEW SECTION. Sec. 13. A new section is added to chapter 43.19 RCW to read as follows:

The department shall revise its procurement practices and policies as necessary to achieve the following goals for the purchasing of recycled products:

(1) By January 1, 1992, at least ten percent of the total dollar amount of state purchases are of recycled products.

(2) By January 1, 1994, at least twenty of the total dollar amount percent of state purchases are of recycled products.

(3) By January 1, 1996, at least forty percent of the total dollar amount of state purchases are of recycled products.

NEW SECTION. Sec. 14. A new section is added to chapter 43.19 RCW to read as follows:

By December 1 of each year the director shall report to the legislature on:

(1) The amount of recycled products purchased or procured by the department;

(2) The amount of recycled products utilized by contractors;

(3) The amount and type of compost and co-compost products purchased or procured by the state agencies and educational institutions; and

(4) The amount of recycled materials collected through the buildings and grounds source separation program.

NEW SECTION. Sec. 15. A new section is added to Title 28B RCW to read as follows:

The community colleges, colleges, and universities shall cooperate with the department of general administration in implementation of sections 5 through 14 of this act and shall follow the practices, specifications, and rules as set forth by the department.

NEW SECTION. Sec. 16. A new section is added to Title 44 RCW to read as follows:

The legislature shall revise its procedures and specifications for purchases of paper products and materials, goods, and products to meet the criteria and goals as set forth in sections 5 through 14 of this act.

NEW SECTION. Sec. 17. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 61, Laws of 1982, section 1, chapter 175, Laws of 1988 and RCW 43.19.537; and

(2) Section 2, chapter 61, Laws of 1982, section 26, chapter 505, Laws of 1987, section 2, chapter 175, Laws of 1988 and RCW 43.19.538.