House Bill Analysis

HB 2729

Title: AN ACT Relating to personal service contracts entered into by state agencies.

Brief Description: Requiring disclosure of salaries by contractors performing personal service contracts for state agencies.

Sponsor: Clements, Dickerson.

Brief Summary

CRequires contractors to report the salaries and other remuneration paid to certain employees when entering into personal service or client service contracts.

House State Government Committee

Staff: Jim Morishima  (786-7191)

Background:

State agencies enter into a variety of contracts, including contracts for personal services and client services.  Personal service contracts are contracts with consultants to provide professional or technical expertise to accomplish a specific study, project, task, or other work statement.  An example of a personal service contract would be a contract for a statistical analysis. 

Client service contracts are a type of personal service contract.  Client service contracts are contracts for services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.  An example of a client service contract would be a contract to provide job training programs to unemployed workers.

Most personal service contracts over $20,000 must be competitively bid.  Competitively bid personal service contracts must be filed with the Office of Financial Management (OFM).  Certain competitively bid personal service contracts must also be approved by the OFM.  Client service contracts are not subject to these requirements.

 Summary:

An agency entering into a personal service or client service contract must require the contractor to disclose to the agency the salaries, bonuses, travel allowances, commissions, or other forms of remuneration that the contractor pays to:

CThe contractor's officers;

CThe contractor's executive director;

CThe employee who executed the contract;

CThe employee responsible for insuring compliance with the contract's terms.

The contractor must disclose the information to the agency within one year of the contract's effective date, but no later than the contract's termination date.  The OFM must establish a uniform reporting format for disclosure of the information.

Rule Making Authority: No Express Authority

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed.