FINAL BILL REPORT

                  HB 2814

                          C 98 L 94

                     Synopsis as Enacted

Brief Description:  Allowing public benefit nonprofit corporations to participate in state contracts for purchases.

By Representatives Anderson, Veloria, Caver, Wolfe, Romero and Dunshee; by request of Department of General Administration.

House Committee on State Government

Senate Committee on Government Operations

Background:  The Office of State Procurement (OSP) is authorized to enter into purchasing agreements with local governments.  These agreements are conducted under the Interlocal Cooperation Act.  According to OSP, these agreements increase the volume of purchases made by OSP and thus increase the buying power of both the state and local governments.

A public benefit nonprofit corporation is defined as a corporation that has tax exempt status and whose income is not distributable to its members, directors, or officers.

Summary:  The Office of State Procurement (OSP) is authorized to enter into agreements with public benefit nonprofit corporations that receive local, state, or federal funds to participate in state purchasing contracts.  These agreements must be in the form of an interlocal agreement.

Votes on Final Passage:

House  95 0

Senate 34 13

Effective:  June 9, 1994