BILL REQ. #:  H-1648.1 

Read first time 02/18/2003.   Referred to Committee on State Government.

     AN ACT Relating to debarment of contractors; adding new sections to chapter 43.19 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that it is important to ensure that state contracting is conducted in an open and honest fashion, that citizens receive the best goods and services at the best price, and to ensure the integrity of the contracting process.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.19 RCW to read as follows:
     For the purposes of this section and sections 3 and 4 of this act, the following definitions apply, unless the context clearly requires otherwise.
     (1) "Debar" means to suspend, revoke, or prohibit the privilege of contracting with the state of Washington for the provision of goods or services.
     (2) "Department" means the department of general administration.
     (3) "Vendor" means a person or entity that has contracted with or seeks to contract with the state of Washington for the provision of goods or services.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.19 RCW to read as follows:
     (1) The department may debar a vendor from consideration of an award for contract for the provision of goods or services to the state of Washington or suspend the procurement of goods or services from a vendor if, within the past three years, the vendor, an officer of the vendor, or an owner of a twenty-five percent or greater interest in the vendor has:
     (a) Been convicted of a criminal offense incident to the application for or performance of a state contract or subcontract;
     (b) Been convicted of any offense which negatively reflects on the vendor's business integrity, including but not limited to embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or violating state or federal antitrust statutes;
     (c) Been convicted of any other offense, or violated any other state or federal law, as determined by a court of competent jurisdiction or an administrative proceeding, which, in the opinion of the department, indicates that the vendor is unable to perform responsibly or which reflects a lack of integrity that could negatively impact or reflect upon the state of Washington;
     (d) Failed to substantially perform a state contract or subcontract according to its terms, conditions, and specifications within specified time limits;
     (e) Violated department bid solicitation procedures or violated the terms of a solicitation after bid submission;
     (f) Refused to provide information or documents required by a contract including, but not limited to, information or documents necessary for monitoring contract performance;
     (g) Failed to respond to requests for information regarding vendor performance, or accumulated repeated substantiated complaints regarding performance of a contract/purchase order; or
     (h) Failed to perform a state contract or subcontract in a manner consistent with any applicable state or federal law, rule, or regulation.
     (2) If the department finds that grounds to debar a vendor exist, it shall send the vendor a notice of proposed debarment indicating the grounds and the procedure for requesting a hearing. If the vendor does not respond with a written request for a hearing within twenty calendar days, the department shall issue the decision to debar without a hearing. The debarment period may be of any length, up to eight years. After the debarment period expires, the vendor may reapply for inclusion on bidder lists through the regular application process.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.19 RCW to read as follows:
     The director of the department and agency heads shall revise written departmental rules, policies, and procedures to conform with this act and the terms of existing contracts with vendors.