Judge finds that contracting rules aren't legal

A state appeals court upheld a finding Tuesday that invalidated three of the Department of General Administration's rules for contracting out state services to the private sector.

The effect of the ruling was unclear Tuesday after the Court of Appeals decision written by Court of Appeals Chief Judge Marywave Van Deren was handed down.

GA adopted the rules in question under terms of the major labor reforms of 2002, which gave state workers the right to bargain for wages for the first time. But in putting into effect the contracting-out portion, GA exceeded its rule-making authority by trying to define “displaced” employees who would lose jobs under the contracts, Van Deren ruled.

Spencer Daniels, an assistant attorney general who worked on the state’s appeal, said the state could seek reconsideration or appeal to the state Supreme Court. State lawyers plan to consult with GA officials.

The court decision sets aside three rules adopted in 2004 by GA and that took effect July 1, 2005. The court said GA exceeded its ruling-making authority with two rules and acted capriciously in a third that dealt with employee business units.

All of the rules flowed out of the Personnel Services Reform Act of 2002, which gave state workers the right to collectively bargain for the first time. GA followed the law’s passage by adopting rules meant to clarify how to contract services to the private sector.

“To me, the significance is that agencies won’t have the guidance GA was providing through the rule as to which employees were covered by the statute. Agencies will have to sort that issue out on their own without GA’s rule to guide them,’’ Daniels said. “I think it leaves each agency to determine for themselves.”

Jeanine Livingston, director of contract compliance for the Washington Federation of State Employees, considered the ruling a potential big victory for workers, who won on all three questions in May 2008 when the case was before Thurston County Superior Court Judge Chris Wickham.

“If it’s not appealed, it’s a really significant win to ensure their ability to have input in how the state saves money and runs more efficiently,’’ Livingston said.

Brad Shannon: 360-753-1688

bshannon@theolympian.com

www.theolympian.com/politicsblog