Original Notice.

Preproposal statement of inquiry was filed as WSR 01-01-068.

Title of Rule: New chapter 388-05 WAC, Contractor billing requirements -- General.

Purpose: To limit the time vendors and providers can submit billing invoices to DSHS for payment. Vendors and providers would have no more than twelve months from the time a good or service was provided in which to bill the department.

Statutory Authority for Adoption: RCW 43.17.060.

Statute Being Implemented: Chapter 43.88 RCW.

Summary: This rule would limit the amount of time a vendor or provider would have to submit billing invoices to DSHS for payment. Vendors and providers would have no more than twelve months from the time a good or service was provided in which to bill the department.

Reasons Supporting Proposal: Many DSHS programs have been accepting invoices for services that were provided more than twelve months before the invoice was submitted. Late invoices create difficulty in building the agency's budget. In some cases, current budget dollars are being used to pay for services that were received in a prior budget period, or in other cases, no authority was set aside as an outstanding liability in a previous budget period to pay these outstanding bills. Some DSHS systems have difficulty in determining how an outdated bill should be paid, so staff are required to perform a significant amount of research in order to ensure a payment is accounted for properly. It also becomes more difficult to ensure a duplicate payment is not made the older an invoice becomes. A rule on this subject would help ensure programs are receiving invoices in a timely manner so that the conditions about [above] would be mitigated. This rule would also have a beneficial effect on the cash flow of our service providers and vendors.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jay Minton, Finance Division, Accounting Services, 664-5713.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This rule will enhance the working relationship DSHS shares with vendors and providers. It will also significantly reduce the difficulties and complexities the department experiences in budgeting as well as accounting for payment of goods and services.

Proposal Changes the Following Existing Rules: There currently is no rule limiting the time in which vendors or providers can submit billing invoices to the department.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule would not impact or reduce competition, innovation, employment, opportunities, or threaten the existence of small businesses. The rule would positively affect the cash flow of business from timelier payment from bills owed to them by the department.

RCW 34.05.328 does not apply to this rule adoption. This proposed rule does not meet the definition of a significant legislative rule.

Hearing Location: Blake Office Park (behind Goodyear Courtesy Tire), 4500 10th Avenue S.E., Rose Room, Lacey, WA 98503, on May 8, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Kelly Cooper, DSHS Rules Coordinator, by May 1, 2001, phone (360) 664-6094, TTY (360) 664-6178, e-mail coopeKD@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, DSHS Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, fax (360) 664-6185, by May 8, 2001.

Date of Intended Adoption: No sooner than May 9, 2001.

March 30, 2001

Susan Bush

for Bonita H. Jacques, Chief

Office of Legal Affairs

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