Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

State Government & Tribal Affairs Committee

HB 2035

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

State law compels the Public Printer, with some exceptions, to do the state's printing. The public printer is not required to print the Supreme Court and Court of Appeals reports; bond certificates or bond offering disclosure documents; certain promotional materials for various commissions, or any materials for institutions of higher education that have established vendor selection procedures and have the facilities and equipment available to accomplish its printing needs. In addition, state agencies may secure printing from a private vendor within the state if the estimated cost of the job does not exceed $1,000 and justification for saving time is made.

The Public Printer must charge the actual cost for print jobs, but prices may not exceed the prices listed in the Franklin Pricing Guide, published by the Porte Publishing Company. A 5 percent mark-up for paper, stock, and binding materials for print jobs may be added to the print cost to cover waste, insurance, storage, and handling.

The Public Printer may contract out print jobs to the private sector when it is more economical to do so. Bid solicitations must be posted on the state's Common Vendor Registration and Bid Notification System. The Public Printer may add up to 5 percent for a handling fee to any job that is contracted out. Jobs that are contracted out must be done within the state unless it is determined that a job can be procured at a lower cost outside the state. Any out-of-state work must be procured at reasonable and competitive rates and under conditions of employment that must substantially conform to Washington laws with respect to hours of labor, the minimum wage scale, and the rules and regulations of the Department of Labor and Industries.

In addition to its printing functions, the Public Printer must furnish all paper, stock, and binding materials for all public work at actual cost plus 5 percent for waste, insurance, storage, and handling. Furnishing of such supplies to institutions of higher education does not apply except when an interlocal agreement has been executed.

The Public Printer is required to use recycled copy and printing paper for all jobs printed on white copy and printing paper.

Summary of Bill:

With the exception of the printing requirements for the Legislature, the Supreme Court, and the Court of Appeals, state agencies are no longer required to use the Public Printer. However, the Public Printer must be included in the solicitation process. All solicitations must be posted on the state's Common Vendor Registration and Bid Notification System, and solicitations must include the requirement to use recycled copy and printing paper. The Public Printer must update its budgeted hourly rate model, as needed, to accurately reflect its operational costs.

The mark-up for paper, stock, and binding materials, to account for waste, insurance, storage, and handling, is changed from "5 percent" to "up to 5 percent."

State agencies, boards, commissions, and institutions of higher education that have in-house print shops are required to consolidate printing equipment and staff with the public printer. The Office of Financial Management (OFM) must determine which agencies have print shops and and prepare proposed legislation by November 15, 2011, to transfer all print shop equipment and personnel to the public printer. The OFM also must establish rules and guidelines for all agencies to use in managing their printing operations, including both agency-based printing and those jobs that require the services of a print shop.

By November 1, 2016, and every five years thereafter, the state auditor must conduct a comprehensive performance audit of the public printer, building on the findings of the 2011 audit.

The exemptions from using the Public Printer by certain agencies and commissions are repealed. Outdated statutes, including the requirements that the public printer execute a $10,000 bond upon appointment, and that the type for a job be kept for at least 60 days, are repealed. Technical changes to update language are made.