AN
ACT Relating to state agency personal service contract guidelines; creating new
sections; and providing an expiration date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that the practice of engaging nonprofit entities to provide
social services by use of fee-for-services and/or client services contracts has
become necessary to effective state agency operations. The legislature further
finds that there is a need to fundamentally examine how state contracts of this
type are managed. Thus, the legislature intends that a comprehensive study
take place that will identify methods for improving state-wide practices
relating to fee-for-services and client services contracts.
NEW
SECTION. Sec. 2. The
definitions in this section apply throughout this act, unless the context
clearly requires otherwise.
(1)
"Agency" means every state office, department, division, bureau,
board, committee, or other state agency.
(2)
"Task force" means the task force on agency vendor contracting
practices.
(3)
"Contractor" means any nonprofit entity holding a fee-for-services
and/or client services contract or grant for the provision of social services
with the state of Washington, as defined in chapter 39.29 RCW.
(4)
"Contract" means any fee-for-services and/or client services contract
or grant for the provision of social services as defined in chapter 39.29 RCW.
NEW
SECTION. Sec. 3. A
task force on agency vendor contracting practices is established. The task
force shall be convened by the office of financial management and shall be
composed of nine members to be appointed by the director of the office of
financial management. Two members of the task force shall be chosen as
representatives of contractors. Two members of the task force shall be chosen
for their personal work experiences as state employees responsible for
administering contracts. All other task force members shall be selected for
their knowledge and experience with state agency practices governing
contracts. The director of the office of financial management shall appoint a
chair from among the members of the task force. The task force shall invite
and incorporate the participation of interested legislative members.
NEW
SECTION. Sec. 4. (1)
The task force shall review and propose legislative and administrative
recommendations for the following issues:
(a)
The adequacy of chapter 39.29 RCW in governing agency contract management.
Such a review shall include, but is not limited to, whether the exemptions
contained in RCW 39.29.040 (4) and (6) are appropriate in maintaining agency
oversight and accountability for moneys used to engage contractors;
(b)
Process improvements that ensure adequacy of contract oversight and provide
accountability for taxpayer moneys, including the specific roles of the office
of financial management and other state agencies in ensuring the accountability
of public funds;
(c)
The appropriate level of state reimbursement which will determine which
contractors are eligible to be audited by the office of the state auditor using
his/her authority under RCW 43.88.570. The task force shall additionally
recommend appropriate funding resources for the office of the state auditor to
exercise its authority to audit nonprofit corporations who provide personal
services to a state agency or to clients of a state agency, under chapter 43.09
RCW, and nongovernmental entities under RCW 43.88.570;
(d)
Whether uniform contract guidelines as exemplified by those adopted in other
states, such as Texas, are appropriate or necessary, and the adequacy of
current contract requirements and practices for contractor selection and award,
contract compliance with state and federal standards, contract management and
monitoring, accounting methods, payment mechanisms, postcontract procedures,
contract legal remedies and performance audits, sanctions to ensure contract compliance,
and financial reporting.
(2)
The task force may utilize a cost-benefit analysis in preparing its
recommendations. The task force shall develop proposed procedures, policies,
and guidelines, and, if necessary, proposed legislation or administrative
rules, to address the issues of its review.
NEW
SECTION. Sec. 5. The
task force, where feasible, shall collaborate with individuals from the public
and private sector and may ask such persons to establish an advisory committee.
Agencies shall cooperate with the office of financial management and provide
the task force with support and assistance necessary to carry out the purposes
of this act. The task force may consider the suggestions of agencies in
preparing its recommendations, including any findings and information
provided by the joint legislative audit and review committee.
NEW
SECTION. Sec. 6. The
task force, where feasible, shall use office of financial management staff and
facilities. The office of financial management may hire additional staff with
specific technical expertise if such expertise is necessary to carry out the
mandates of the study in this act. Each member of the task force is eligible
to be reimbursed for travel expenses in accordance with RCW 43.03.050 and
43.03.060.
NEW
SECTION. Sec. 7. By
November 1, 1999, the task force shall report its findings to the director of
financial management, to the house of representatives vendor contracting and
services select committee or to the most appropriate house of representatives
standing committee in the event that the vendor contracting and services select
committee no longer exists, and to the senate committee on government
operations.
NEW
SECTION. Sec. 8. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 9. This
act expires January 1, 2000.
NEW
SECTION. Sec. 10. If
specific funding for the purposes of this act, referencing this act by bill or
chapter number, is not provided by June 30, 1998, in the omnibus appropriations
act, this act is null and void.
