SENATE BILL REPORT

HB 2771

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: Public hospital districts (Districts) are local government entities that may be created to provide health care facilities and services. These health care services may include nursing homes, extended care, long-term care, outpatient and rehabilitation facilities, and ambulance services. Since 1945, when they were authorized in state law, more than 50 Districts have been created in Washington. Districts may include territory in more than one county, and territory may be annexed to or withdrawn from districts if applicable requirements are met. Each District is governed by a board of elected commissioners. Districts have statutory authority commonly granted to local government entities, including authority to acquire property by eminent domain, adopt a budget, enter into contracts, and employ and manage personnel. To finance operations, Districts may levy property taxes, issue bonds, and charge user fees.

Competitive bidding is required for all work ordered by a District with an estimated cost in excess of $75,000. As an alternative to the competitive bidding process for contracts that exceed the estimated cost threshold, a District may award works contracts using the small works roster process. Competitive bidding requirements may be waived if an applicable exemption applies to the purchase or public work. For projects over $75,000 Districts are required to publish notice for sealed bids. The contract may be awarded to the lowest responsible bidder or to the best bidder. A District cannot award a contract for more than the amount of the estimated cost of the materials and labor.