Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Ways & Means Committee

ESSB 6607

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.

Brief Description: Instituting policies to reduce the central service costs of state government.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Kilmer, Frockt, Kastama, Hatfield, Harper, Hargrove, Hill, Murray, Becker, Hobbs and Hewitt).

Brief Summary of Engrossed Substitute Bill

  • Requires the Department of Enterprise Services (DES) and the Office of the Chief Information Officer to adopt statewide polices on the use of cellular phones and state agency mailings; and the DES to adopt a state policy on agency-based printing and the acquisition of motor vehicles.

  • Directs the Office of Financial Management and the DES to convene a joint workgroup to examine the central services rate model for allocating agency auditing costs, legal services, archives, and services provided by the DES and the Consolidated Technology Services Agency.

Hearing Date: 3/7/12

Staff: Jeff Olsen (786-7175).

Background:

The Department of Enterprise Services (DES) is required to ensure that overall state purchasing and material control policy is implemented by state agencies, including the development of master purchasing contracts for use by state agencies. Among the specific duties of the DES are: (1) the operation of a motor vehicle transportation service for use by state agency personnel; and (2) public printing services for state agencies.

A variety of central administrative services are provided to state agencies by other state agencies. The Attorney General provides legal services to state agencies; the State Auditor provides financial audit services; the Secretary of State provides archive services and records management; the Consolidated Technology Services Agency provides information technology services; and the DES provides a variety of personnel and facility management services. To recover the cost of these services, state agencies typically make payments from agency appropriations to a variety of revolving funds, such as the Legal Services Revolving Fund, the Auditing Services Revolving Account, and the Enterprise Services Fund.

Summary of Bill:

The Chief Information Officer, in consultation with the Department of Enterprise Services (DES), must adopt a statewide policy to reduce unnecessary cell-phone use and to adopt statewide master contracts to achieve lower costs. Cost-reduction goals and performance measurements are required. The state policy and master contracts may authorize state agencies to purchase prepaid cell-phones. The higher education institutions are exempt from these policies.

The DES, in consultation with the Chief Information Officer, must adopt a statewide policy to reduce unnecessary agency mailings, substituting electronic communications where possible. Cost-reduction goals and performance measurements are required. The higher education institutions are exempt from these policies.

The DES must adopt a statewide policy on agency print shops to reduce unnecessary costs. Cost-reduction goals and performance measurements are required. The higher education institutions are exempt from these policies.

The DES must adopt a statewide policy on motor vehicle acquisition to reduce unnecessary costs by requiring a life-cycle cost analysis of purchase price, maintenance costs, and operational costs, including fuel efficiency. Cost-reduction goals and performance measurements are required.

The Office of Financial Management and the DES are directed to convene a joint workgroup to examine the central services rate model for allocating agency auditing costs, legal services, archives, and services provided by the DES and the Consolidated Technology Services Agency. Participants include the DES, the Office of Financial Management, the State Auditor, the Attorney General, the Consolidated Technology Services Agency, and legislative fiscal staff. The workgroup's report and recommendations to the Legislature and the Governor are due by September 1, 2012.

Appropriation: None.

Fiscal Note: Requested on March 6, 2012.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.