AN ACT Relating to purchasing services by contract; amending RCW 28B.16.040, 28B.16.240, and 41.06.380; and adding a new section to chapter 43.19 RCW.

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

Sec. 1. Section 4, chapter 36, Laws of 1969 ex. sess. as last amended by section 15, chapter 53, Laws of 1982 1st ex. sess. and RCW 28B.16.040 are each amended to read as follows:

(1) The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

((~~(1)~~)) (a) Members of the governing board of each institution and related boards, all presidents, vice presidents and their confidential secretaries, administrative and personal assistants; deans, directors, and chairmen; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington.

((~~(2)~~)) (b) Student, part time, or temporary employees, and part time professional consultants, as defined by the higher education personnel board, employed by institutions of higher education and related boards.

((~~(3)~~)) (c) The director, his confidential secretary, assistant directors, and professional education employees of the state board for community college education.

((~~(4)~~)) (d) The personnel director of the higher education personnel board and his confidential secretary.

((~~(5)~~)) (e) The governing board of each institution, and related boards, may also exempt from this chapter, subject to the employees right of appeal to the higher education personnel board, classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training, and principal assistants to executive heads of major administrative or academic divisions, as determined by the higher education personnel board: PROVIDED, That no nonacademic employee employed directly by the institution of higher education or related boards engaged in office, clerical, maintenance, or food and trade services may be exempted by the higher education personnel board under this provision.

(f) Persons employed by an individual or business entity, or any individual that has contracted with an institution for higher education or related board for delivery of services.

(2) Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary, within four years from the date of appointment to the exempt position. However, (a) upon the prior request of the appointing authority of the exempt position, the board may approve one extension of no more than four years; and (b) if an appointment was accepted prior to July 10, 1982, then the four-year period shall begin on July 10, 1982.

Sec. 2. Section 1, chapter 46, Laws of 1979 ex. sess. and RCW 28B.16.240 are each amended to read as follows:

((~~Nothing contained in this chapter shall prohibit any~~)) An institution of higher education, as defined in RCW 28B.10.016, or related board ((~~from purchasing~~)) may purchase services by contract with individuals or business entities ((if such services were regularly purchased by valid contract at such institution prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)).

Sec. 3. Section 2, chapter 46, Laws of 1979 ex. sess. and RCW 41.06.380 are each amended to read as follows:

((~~Nothing contained in this chapter shall prohibit any~~)) A department, as defined in RCW 41.06.020, ((~~from purchasing~~)) may purchase services by contract with individuals or business entities ((if such services were regularly purchased by valid contract by such department prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)).

NEW SECTION. Sec. 4. A new section is added to chapter 43.19 RCW to read as follows:

The department of general administration shall adopt rules regulating the purchase of services by state agencies and institutions. The rules may include provisions to:

(1) Establish contracts for a length of time long enough to attract prospective contractors, but short enough to maintain a competitive environment;

(2) Require sufficient specificity in the contract to ensure quality service delivery;

(3) Require a performance bond or some other demonstration of financial security from the contractor and include penalty provisions for not meeting contract specifications;

(4) Monitor contracts to ensure service quality and build monitoring costs into the evaluation of the cost-effectiveness of contracting; and

(5) Bid contracts far enough in advance to allow for a smooth transition between the state and private contractors and to avoid unreasonable dislocation of classified employees.