Incompetence strikes again as the Attorney General’s office faces a $42M lawsuit for allegedly rigging a $15M contract with WSU.
$42M Tort Claim Alleges Racketeering by WA Attorney General’s Office and WSU
Through the years, Attorney General Bob Ferguson’s incompetence has cost taxpayers quite a lot – and he soon may cost us even more. Bob Scales, CEO of Police Strategies, has filed a $42 million tort claim against the Washington State Attorney General’s Office (AGO) and Washington State University (WSU), accusing them of racketeering and criminal profiteering. Scales, a former King County prosecutor, had been a potential subcontractor for a state police use of force database project initiated by Senate Bill 5259. He alleges that AGO and WSU conspired to ensure WSU, a client of the AGO, was the sole bidder and recipient of the $15 million contract, despite the bill initially proposing a direct award to WSU being altered to a competitive bidding process.
Scales has filed numerous ethics complaints against AGO and WSU employees, all of which were dismissed or not pursued. He claims his company suffered significant financial and reputational losses and intellectual property theft. Initially planning to partner with Seattle University for the bid, Scales withdrew due to contractual obligations to transfer intellectual property to the state, which he argues would harm his business. IBM, originally a potential subcontractor for WSU, withdrew from the project over similar intellectual property concerns.
Scales contends the RFP process violated the Interstate Commerce Clause by restricting bidders to Washington-based higher education institutions. He also accuses WSU of illegally using his company’s proprietary data and alleges that WSU President Kirk Schulz interfered with an ethics complaint. Scales’ claim includes communications from the AGO he deems defamatory, suggesting he aimed to delay the project out of spite. He proposes two settlement options: a $10 million payment to his company to develop the database or cancellation of the WSU contract. Read more at Center Square.
Biden inspires WA Democrats to Double Down on Rent Control Legislation
Democrat state lawmakers failed to pass rent cap legislation this year – but now view President Biden’s recent call for rent hike limits as validation for their terrible solution to the housing affordability crisis. Biden’s proposal caps rent increases at 5% annually for landlords with 50+ units. Of course, the rent cap – like everywhere it’s ever been implemented – will stifle new housing development, essential for addressing the housing shortage. But not to be restrained by reality, Democrat state legislators, such as Sen. Yasmin Trudeau and Rep. Strom Peterson, plan to reintroduce rent control measures next session. Read more at The Washington State Standard.
Seattle's $15 Minimum Wage Hits Small Businesses Hard: Ready for Higher Prices or Fewer Restaurants?
Seattle’s small businesses are bracing for a significant change as the city’s minimum wage law reaches a critical milestone. Initially, the law allowed small businesses a decade to phase in the $15 minimum wage, with the ability to credit tips and benefits towards this wage. That period ends next year, resulting in an imminent $3 per hour wage hike for many workers, the largest since the law’s inception. The restaurant industry, in particular, is alarmed, warning that this increase could lead to higher prices or even closures. Despite these concerns, the City Council isn’t in any hurry to extend the phase-in period –Councilmember Joy Hollingsworth acknowledges the urgency but has yet to propose formal legislation. Read more at the Seattle Times.
Spokane County Voters to Decide on Sales Tax Renewal
Spokane County voters will have a chance to decide whether to renew a sales tax for its Juvenile Detention Facility and jails this November. Voters have renewed the tax five times since its inception and – reportedly – it generates about $15 million annually. Last year, the tax brought in $15.8 million, and from 2016 to 2023, it raised $101.7 million. The revenue supports juvenile facilities, including 25 correction officers, four probation counselors, and three medical and administrative staff. It also funds adult detention services, consistent with state law. The measure, if approved, will extend through Dec. 31, 2035, costing consumers $1 for every $1,000 spent. This time around, the county is emphasizing the tax’s importance amid rising juvenile offense referrals. Read more at Center Square.
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