wa-law.org > bill > 2025-26 > SB 6126 > Original Bill
The department must adopt uniform policies and procedures for the effective and efficient management of contracts by all state agencies. The policies and procedures must, at a minimum, include:
Precontract procedures for selecting potential contractors based on their qualifications and ability to perform, including procedures to ensure compliance with chapter 39.19 RCW, and providing for participation of minority and women-owned businesses;
Model complaint and protest procedures;
Alternative dispute resolution processes;
Incorporation of performance measures and measurable benchmarks in contracts;
Model contract terms to ensure contract performance and compliance with state and federal standards, including terms to facilitate recovery of the costs of employee staff time that must be expended to bring a contract into substantial compliance, terms required under RCW 41.06.142, and terms with procedures for the contractor to report improper governmental actions as defined under RCW 42.40.020;
Executing contracts using electronic signatures;
Criteria for contract amendments;
Postcontract procedures;
A requirement that agencies, departments, and institutions of higher education monitor performance-based contracts, including contracts awarded pursuant to RCW 41.06.142, to ensure that all aspects of the contract are being properly performed and that performance standards are being achieved; and
Any other subject related to effective and efficient contract management.
An agency may not enter into a contract under which the contractor could charge additional costs to the agency, the department, the joint legislative audit and review committee, or the state auditor for access to data generated under the contract. A contractor under such a contract must provide access to data generated under the contract to the contracting agency, the joint legislative audit and review committee, and the state auditor.
To the extent practicable, agencies should enter into performance‑based contracts. Performance‑based contracts identify expected deliverables and performance measures or outcomes. Performance‑based contracts also use appropriate techniques, which may include but are not limited to, either consequences or incentives or both to ensure that agreed upon value to the state is received. Payment for goods and services under performance‑based contracts should be contingent on the contractor achieving performance outcomes.
An agency and contractor may execute a contract using electronic signatures.
As used in subsection (2) of this section, "data" includes all information that supports the findings, conclusions, and recommendations of the contractor's reports, including computer models and the methodology for those models.
As used in this chapter, the terms defined in this section shall have the meanings indicated unless the context clearly requires otherwise.
"Auditor" means the office of the state auditor.
"Employee" means any individual employed or holding office in any department or agency of state government.
"Good faith" means the individual providing the information or report of improper governmental activity has a reasonable basis in fact for reporting or providing the information. An individual who knowingly provides or reports, or who reasonably ought to know he or she is providing or reporting, malicious, false, or frivolous information, or information that is provided with reckless disregard for the truth, or who knowingly omits relevant information is not acting in good faith.
"Gross mismanagement" means the exercise of management responsibilities in a manner grossly deviating from the standard of care or competence that a reasonable person would observe in the same situation.
"Gross waste of funds" means to spend or use funds or to allow funds to be used without valuable result in a manner grossly deviating from the standard of care or competence that a reasonable person would observe in the same situation.
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"Improper governmental action" means any action by an employee undertaken in the performance of the employee's official duties:
Which is a gross waste of public funds or resources as defined in this section;
Which is in violation of federal or state law or rule, if the violation is not merely technical or of a minimum nature;
Which is of substantial and specific danger to the public health or safety;
Which is gross mismanagement;
Which prevents the dissemination of scientific opinion or alters technical findings without scientifically valid justification, unless state law or a common law privilege prohibits disclosure. This provision is not meant to preclude the discretion of agency management to adopt a particular scientific opinion or technical finding from among differing opinions or technical findings to the exclusion of other scientific opinions or technical findings. Nothing in this subsection prevents or impairs a state agency's or public official's ability to manage its public resources or its employees in the performance of their official job duties. This subsection does not apply to de minimis, technical disagreements that are not relevant for otherwise improper governmental activity. Nothing in this provision requires the auditor to contract or consult with external experts regarding the scientific validity, invalidity, or justification of a finding or opinion; or
"Public official" means the attorney general's designee or designees; the director, or equivalent thereof in the agency where the employee works; individuals designated to receive whistleblower reports by the head of each agency under section 3 of this act; or the executive ethics board.
"Substantial and specific danger" means a risk of serious injury, illness, peril, or loss, to which the exposure of the public is a gross deviation from the standard of care or competence which a reasonable person would observe in the same situation.
"Use of official authority or influence" includes threatening, taking, directing others to take, recommending, processing, or approving any personnel action such as an appointment, promotion, transfer, assignment including but not limited to duties and office location, reassignment, reinstatement, restoration, reemployment, performance evaluation, determining any material changes in pay, provision of training or benefits, tolerance of a hostile work environment, or any adverse action under chapter 41.06 RCW, or other disciplinary action.
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"Whistleblower" means:
An employee who in good faith reports alleged improper governmental action to the auditor or other public official, as defined in subsection (7) of this section; or
An employee who is perceived by the employer as reporting, whether they did or not, alleged improper governmental action to the auditor or other public official, as defined in subsection (7) of this section.
For purposes of the provisions of this chapter and chapter 49.60 RCW relating to reprisals and retaliatory action, the term "whistleblower" also means:
An employee who in good faith provides information to the auditor or other public official, as defined in subsection (7) of this section, and an employee who is believed to have reported asserted improper governmental action to the auditor or other public official, as defined in subsection (7) of this section, or to have provided information to the auditor or other public official, as defined in subsection (7) of this section, but who, in fact, has not reported such action or provided such information; or
An employee who in good faith identifies rules warranting review or provides information to the rules review committee, and an employee who is believed to have identified rules warranting review or provided information to the rules review committee but who, in fact, has not done so.
The head of each agency shall designate an appropriate number of individuals to receive whistleblower reports. The agency must provide each individual designated under this section with information regarding the deadline to report an assertion of improper governmental action to the auditor under RCW 42.40.040(1) and the nondisclosure provisions of this chapter.
A written summary of this chapter and procedures for reporting improper governmental actions established by the auditor's office shall be made available by each department or agency of state government to each employee upon entering public employment. Such notices may be in agency internal newsletters, included with paychecks or stubs, sent via email to all employees, or sent by other means that are cost‑effective and reach all employees of the government level, division, or subdivision. Employees shall be notified by each department or agency of state government each year of the procedures and protections under this chapter. The annual notices shall include a list of public officials, as defined in RCW 42.40.020, including individuals employed by the agency and designated by the head of the agency under section 3 of this act, authorized to receive whistleblower reports. The list of public officials authorized to receive whistleblower reports shall also be prominently displayed in all agency offices.
The auditor shall:
Except as otherwise specifically provided by law, audit the accounts of all collectors of the revenue and other holders of public money required by law to pay the same into the treasury;
In his or her discretion, inspect the books of any person charged with the receipt, safekeeping, and disbursement of public moneys;
Investigate improper governmental activity under chapter 42.40 RCW;
Inform the attorney general in writing of the necessity for the attorney general to direct prosecutions in the name of the state for all official delinquencies in relation to the assessment, collection, and payment of the revenue, against all persons who, by any means, become possessed of public money or property, and fail to pay over or deliver the same, and against all debtors of the state;
Give information in writing to the legislature, whenever required, upon any subject relating to the financial affairs of the state, or touching any duties of his or her office;
Report to the director of financial management in writing the names of all persons who have received any moneys belonging to the state, and have not accounted therefor;
Authenticate with his or her official seal papers issued from his or her office;
Publish an annual, anonymized dashboard on the agency's official website summarizing the number of assertions of improper governmental action received, case statuses and outcomes, funds recovered, and average time to resolution;
Make his or her official report annually on or before the 31st of December.
The state auditor shall:
Where there is reasonable cause to believe that a misuse of state moneys has occurred, conduct an audit of financial and legal compliance of any entity that receives public moneys through contract or grant in return for services; and
Conduct audits of financial and legal compliance of a random sampling of entities that received public moneys through contract or grant in return for services in the previous five years. In selecting entities for audit under this subsection, the auditor shall prioritize entities that received public money from agencies which award large numbers of grants or issue direct client assistance or provider reimbursements.
This authority includes examinations of nonprofit corporations who provide personal services to a state agency or to clients of a state agency. Such a financial audit shall be performed in a manner consistent with this chapter, and may be performed according to an agreed upon procedures engagement as in the existing 1998 standards of the American institute of certified public accountants professional standards section 600.
The state auditor may charge the contracting agency, whether state or local, for the costs of an audit of a nonprofit corporation that receives public moneys through contract or grant in return for services. Any contracting agency that is responsible to the state auditor for such costs shall use due diligence to recover costs from the audited entity.
State agencies , local governments, and public officials as defined in RCW 42.40.020 shall immediately report to the state auditor's office known or suspected loss of public funds or assets or other illegal activity. The state auditor must adopt policies as necessary to implement this section.