AN ACT
Relating to improper governmental action; amending RCW 42.40.020, 42.40.040,
42.40.050, 49.60.210, 49.60.250, 43.09.050, and 43.88.160; reenacting and
amending RCW 43.88.160; prescribing penalties; making an appropriation;
providing an effective date; and providing an expiration date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
42.40.020 and 1989 c 284 s 1 are each amended to read as follows:
As
used in this chapter, the terms defined in this section shall have the meanings
indicated unless the context clearly requires otherwise.
(1)
"Auditor" means the office of the state auditor.
(2)
"Employee" means any individual employed or holding office in any
department or agency of state government.
(3)(a)
"Improper governmental action" means any action by an employee:
(i)
Which is undertaken in the performance of the employee's official duties,
whether or not the action is within the scope of the employee's employment; and
(ii)
Which is in violation of any state law or rule, is an abuse of authority, is of
substantial and specific danger to the public health or safety, or is a gross
waste of public funds.
(b)
"Improper governmental action" does not include personnel actions
including but not limited to employee grievances, complaints, appointments,
promotions, transfers, assignments, reassignments, reinstatements,
restorations, reemployments, performance evaluations, reductions in pay,
dismissals, suspensions, demotions, violations of the state civil service law,
alleged labor agreement violations, reprimands, or any action which may be
taken under chapter 41.06 or 28B.16 RCW, or other disciplinary action except as
provided in RCW 42.40.030.
(4)
"Use of official authority or influence" includes taking, directing
others to take, recommending, processing, or approving any personnel action
such as an appointment, promotion, transfer, assignment, reassignment,
reinstatement, restoration, reemployment, performance evaluation, or any
adverse action under chapter 41.06 or 28B.16 RCW, or other disciplinary action.
(5)
"Whistleblower" means an employee who in good faith reports alleged
improper governmental action to the auditor, initiating an investigation under
RCW 42.40.040. 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 in connection with an investigation under RCW
42.40.040 and an employee who is believed to have reported alleged improper
governmental action to the auditor or to have provided information to the
auditor in connection with an investigation under RCW 42.40.040 but who, in
fact, has not reported such action or provided such information.
Sec.
2. RCW
42.40.040 and 1989 c 284 s 3 are each amended to read as follows:
(1)
Upon receiving specific information that an employee has engaged in improper
governmental action, the auditor shall, within five working days of receipt
of the information, mail written acknowledgement to the whistleblower at the
address provided. For a period not to exceed thirty days, the auditor
shall conduct such preliminary investigation of the matter as the auditor
deems appropriate. In conducting the investigation, the identity of the ((person
providing the information which initiated the investigation)) whistleblower
shall be kept confidential.
(2) In
addition to the authority under subsection (1) of this section, the auditor
may, on its own initiative, investigate incidents of improper state
governmental action.
(3)(a)
If it appears to the auditor, upon completion of the preliminary investigation,
that the matter is so unsubstantiated that no further investigation,
prosecution, or administrative action is warranted, the auditor shall so notify
the ((person, if known, who provided the information initiating the
investigation)) whistleblower.
(b)
The notification shall be by memorandum containing a summary of the information
received, a summary of the results of the preliminary investigation with regard
to each allegation of improper governmental action, and any determination made
by the auditor under (c) of this subsection.
(c) In
any case to which this section applies, the identity of the ((person who
provided the information initiating the investigation)) whistleblower
shall be kept confidential unless the auditor determines that the information
has been provided other than in good faith.
(d) If
it appears to the auditor that the matter does not meet the definition of an
"improper governmental action" under RCW 42.40.020(3), or is other
than a gross waste of public funds, the auditor may forward a summary of the
allegations to the appropriate agency for investigation and require a response
by memorandum ((containing)) no later than thirty days after the
allegations are received from the auditor. The response shall contain a
summary of the investigation with regard to each allegation and any
determination of corrective action taken. The auditor will keep the identity
of the ((person who provided the information initiating the investigation))
whistleblower confidential. Upon receipt of the results of the
investigation from the appropriate agency, the auditor will notify the ((provider))
whistleblower as prescribed under (a), (b), and (c) of this subsection.
(4) If
it appears to the auditor after completion of the preliminary investigation
that further investigation, prosecution, or administrative action is warranted,
the auditor shall so notify the ((party, if known, who provided the information
initiating the investigation)) whistleblower and either conduct
further investigations or issue a report under subsection (6) of this section.
Within sixty days after the thirty-day period in subsection (1) of this
section, the auditor shall complete the investigation and report its findings
to the whistleblower unless written justification for the delay is furnished to
the whistleblower. In all such cases, the report of the auditor's
investigation and findings shall be sent to the whistleblower within one year
after the information was filed under subsection (1) of this section.
(5)(a)
At any stage of an investigation under this section the auditor may require by
subpoena the attendance and testimony of witnesses and the production of
documentary or other evidence relating to the investigation at any designated
place in the state. The auditor may issue subpoenas, administer oaths, examine
witnesses, and receive evidence. In the case of contumacy or failure to obey a
subpoena, the superior court for the county in which the person to whom the
subpoena is addressed resides or is served may issue an order requiring the
person to appear at any designated place to testify or to produce documentary
or other evidence. Any failure to obey the order of the court may be punished
by the court as a contempt thereof.
(b)
The auditor may order the taking of depositions at any stage of a proceeding or
investigation under this chapter. Depositions shall be taken before an
individual designated by the auditor and having the power to administer oaths.
Testimony shall be reduced to writing by or under the direction of the
individual taking the deposition and shall be subscribed by the deponent.
(6)(a)
If the auditor determines that there is reasonable cause to believe that an
employee has engaged in any improper activity, the auditor shall report the
nature and details of the activity to:
(i)
The employee and the head of the employing agency; and
(ii)
If appropriate, the attorney general or such other authority as the auditor
determines appropriate.
(b)
The auditor has no enforcement power except that in any case in which the
auditor submits a report of alleged improper activity to the head of an agency,
the attorney general, or any other individual to which a report has been made
under this section, the individual shall report to the auditor with respect to
any action taken by the individual regarding the activity, the first report
being transmitted no later than thirty days after the date of the auditor's report
and monthly thereafter until final action is taken. If the auditor determines
that appropriate action is not being taken within a reasonable time, the
auditor shall report the determination to the governor and to the legislature.
(7)
This section does not limit any authority conferred upon the attorney general
or any other agency of government to investigate any matter.
Sec.
3. RCW
42.40.050 and 1989 c 284 s 4 are each amended to read as follows:
(((1)
Any employee (a) who provides his or her name and specific information to the
auditor on any matter which is found to warrant further investigation or other
action, or which is provided by the employee in good faith, as determined by
the auditor, whether or not further action is warranted and (b) who is
subjected to any reprisal or retaliatory action undertaken during the period
beginning on the day after the date on which the specific information is
received by the auditor alleging improper governmental action, may seek
judicial review of the reprisal or retaliatory action in superior court,
whether or not there has been an administrative review of the action. In such
an action, the reviewing court may award reasonable attorney's fees.
(2)
The employee who provided specific information shall notify the state auditor
in writing if any changes in the employee's work situation exist which are
related to the employee's having provided information. If the auditor has
reason to believe that such a change in work situation has occurred, the
auditor shall investigate and report on the matter in accordance with this
chapter.
(3))) Any
person who is a whistleblower, as defined in RCW 42.40.020, and who as a result
of being a whistleblower has been subjected to workplace reprisal or
retaliatory action has the remedies provided under chapter 49.60 RCW. For
the purpose of this section "reprisal or retaliatory action" means
but is not limited to:
(((a)))
(1) Denial of adequate staff to perform duties;
(((b)))
(2) Frequent staff changes;
(((c)))
(3) Frequent and undesirable office changes;
(((d)))
(4) Refusal to assign meaningful work;
(((e)))
(5) Unwarranted and unsubstantiated letters of reprimand or
unsatisfactory performance evaluations;
(((f)))
(6) Demotion;
(((g)))
(7) Reduction in pay;
(((h)))
(8) Denial of promotion;
(((i)))
(9) Suspension; ((and
(j))) (10)
Dismissal;
(11)
Denial of employment; and
(12)
A supervisor or superior encouraging coworkers to behave in a hostile manner
toward the whistleblower.
Nothing
in this section prohibits an agency from making any decision exercising its
authority to terminate, suspend, or discipline an employee who engages in
workplace reprisal or retaliatory action against a whistleblower. However, the
agency also shall implement any order under chapter 49.60 RCW (other than an
order of suspension if the agency has terminated the retaliator).
Sec.
4. RCW
49.60.210 and 1985 c 185 s 18 are each amended to read as follows:
(1)
It is an unfair practice for any employer, employment agency, labor union, or
other person to discharge, expel, or otherwise discriminate against any person
because he or she has opposed any practices forbidden by this chapter, or
because he or she has filed a charge, testified, or assisted in any proceeding
under this chapter.
(2)
It is an unfair practice for a government agency or government manager or
supervisor to retaliate against a whistleblower as defined in chapter 42.40
RCW.
Sec.
5. RCW
49.60.250 and 1989 c 175 s 115 are each amended to read as follows:
(1) In
case of failure to reach an agreement for the elimination of such unfair
practice, and upon the entry of findings to that effect, the entire file,
including the complaint and any and all findings made, shall be certified to
the chairperson of the commission. The chairperson of the commission shall
thereupon request the appointment of an administrative law judge under Title 34
RCW to hear the complaint and shall cause to be issued and served in the name
of the commission a written notice, together with a copy of the complaint, as
the same may have been amended, requiring the respondent to answer the charges
of the complaint at a hearing before the administrative law judge, at a time
and place to be specified in such notice.
(2)
The place of any such hearing may be the office of the commission or another
place designated by it. The case in support of the complaint shall be
presented at the hearing by counsel for the commission: PROVIDED, That the
complainant may retain independent counsel and submit testimony and be fully
heard. No member or employee of the commission who previously made the
investigation or caused the notice to be issued shall participate in the
hearing except as a witness, nor shall the member or employee participate in
the deliberations of the administrative law judge in such case. Any endeavors
or negotiations for conciliation shall not be received in evidence.
(3)
The respondent shall file a written answer to the complaint and appear at the
hearing in person or otherwise, with or without counsel, and submit testimony
and be fully heard. The respondent has the right to cross-examine the
complainant.
(4)
The administrative law judge conducting any hearing may permit reasonable
amendment to any complaint or answer. Testimony taken at the hearing shall be
under oath and recorded.
(5)
If, upon all the evidence, the administrative law judge finds that the
respondent has engaged in any unfair practice, the administrative law judge
shall state findings of fact and shall issue and file with the commission and
cause to be served on such respondent an order requiring such respondent to
cease and desist from such unfair practice and to take such affirmative action,
including, (but not limited to) hiring, reinstatement or upgrading of
employees, with or without back pay, an admission or restoration to full
membership rights in any respondent organization, or to take such other action
as, in the judgment of the administrative law judge, will effectuate the
purposes of this chapter, including action that could be ordered by a court,
except that damages for humiliation and mental suffering shall not exceed one
thousand dollars, and including a requirement for report of the matter on
compliance.
(6) If
a determination is made that retaliatory action, as defined in RCW 42.40.050,
has been taken against a whistleblower, as defined in RCW 42.40.020, the
administrative law judge may, in addition to any other remedy, impose a civil
penalty upon the retaliator of up to three thousand dollars and issue an order
to the state employer to suspend the retaliator for up to thirty days without
pay. At a minimum, the administrative law judge shall require that a letter of
reprimand be placed in the retaliator's personnel file. All penalties
recovered shall be paid into the state treasury and credited to the general
fund.
(7)
The final order of the administrative law judge shall include a notice to the
parties of the right to obtain judicial review of the order by appeal in
accordance with the provisions of RCW 34.05.510 through 34.05.598, and that
such appeal must be served and filed within thirty days after the service of
the order on the parties.
(((7)))
(8) If, upon all the evidence, the administrative law judge finds that
the respondent has not engaged in any alleged unfair practice, the
administrative law judge shall state findings of fact and shall similarly issue
and file an order dismissing the complaint.
(((8)))
(9) An order dismissing a complaint may include an award of reasonable
attorneys' fees in favor of the respondent if the administrative law judge
concludes that the complaint was frivolous, unreasonable, or groundless.
(((9)))
(10) The commission shall establish rules of practice to govern,
expedite, and effectuate the foregoing procedure.
Sec.
6. RCW
43.09.050 and 1979 c 151 s 91 are each amended to read as follows:
The
auditor shall:
(1)
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;
(2) In
his or her discretion, inspect the books of any person charged with the receipt,
safekeeping, and disbursement of public moneys;
(3) Investigate
improper governmental activity under chapter 42.40 RCW;
(4)
Inform the attorney general in writing of the necessity for ((him)) 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;
(((4)))
(5) 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;
(((5)))
(6) 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;
(((6)))
(7) Authenticate with his or her official seal papers issued from
his or her office;
(((7)))
(8) Make his or her official report annually on or before the
31st of December.
Sec.
7. RCW
43.88.160 and 1987 c 505 s 36 and 1987 c 436 s 1 are each reenacted and amended
to read as follows:
This
section sets forth the major fiscal duties and responsibilities of officers and
agencies of the executive branch. The regulations issued by the governor
pursuant to this chapter shall provide for a comprehensive, orderly basis for
fiscal management and control, including efficient accounting and reporting
therefor, for the executive branch of the state government and may include, in
addition, such requirements as will generally promote more efficient public
management in the state.
(1)
Governor; director of financial management. The governor, through the director
of financial management, shall devise and supervise a modern and complete
accounting system for each agency to the end that all revenues, expenditures,
receipts, disbursements, resources and obligations of the state shall be properly
and systematically accounted for. The accounting system shall include the
development of accurate, timely records and reports of all financial affairs of
the state. The system shall also provide for central accounts in the office of
financial management at the level of detail deemed necessary by the director to
perform central financial management. The director of financial management
shall adopt and periodically update an accounting procedures manual. Any
agency maintaining its own accounting and reporting system shall comply with
the updated accounting procedures manual and the rules of the director adopted
under this chapter. An agency may receive a waiver from complying with this
requirement if the waiver is approved by the director. Waivers expire at the
end of the fiscal biennium for which they are granted. The director shall
forward notice of waivers granted to the legislative fiscal committees. The
director of financial management may require such financial, statistical, and
other reports as the director deems necessary from all agencies covering any
period.
The
director of financial management is responsible for quarterly reporting of
primary budget drivers such as applicable workloads, caseload estimates, and
appropriate unit cost data. These reports shall be transmitted to the
legislative fiscal committees or by electronic means to the legislative
evaluation and accountability program committee. Quarterly reports shall
include actual monthly data and the variance between actual and estimated data
to date. The reports shall also include estimates of these items for the
remainder of the budget period.
In
addition, the director of financial management, as agent of the governor,
shall:
(a)
Make surveys and analyses of agencies with the object of determining better
methods and increased effectiveness in the use of manpower and materials; and
the director shall authorize expenditures for employee training to the end that
the state may benefit from training facilities made available to state
employees;
(b)
Report to the governor with regard to duplication of effort or lack of
coordination among agencies;
(c)
Review any pay and classification plans, and changes thereunder, developed by
any agency for their fiscal impact: PROVIDED, That none of the provisions of
this subsection shall affect merit systems of personnel management now existing
or hereafter established by statute relating to the fixing of qualifications
requirements for recruitment, appointment, or promotion of employees of any
agency. The director shall advise and confer with agencies including
appropriate standing committees of the legislature as may be designated by the
speaker of the house and the president of the senate regarding the fiscal
impact of such plans and may amend or alter said plans, except that for the
following agencies no amendment or alteration of said plans may be made without
the approval of the agency concerned: Agencies headed by elective officials;
(d)
Fix the number and classes of positions or authorized man years of employment
for each agency and during the fiscal period amend the determinations
previously fixed by the director except that the director shall not be
empowered to fix said number or said classes for the following: Agencies
headed by elective officials;
(e)
Provide for transfers and repayments between the budget stabilization account
and the general fund as directed by appropriation and RCW 43.88.525 through
43.88.540;
(f)
Promulgate regulations to effectuate provisions contained in ((subsections))
(a) through (e) ((hereof)) of this subsection.
(2)
The treasurer shall:
(a)
Receive, keep and disburse all public funds of the state not expressly required
by law to be received, kept and disbursed by some other persons: PROVIDED,
That this subsection shall not apply to those public funds of the institutions
of higher learning which are not subject to appropriation;
(b)
Disburse public funds under the treasurer's supervision or custody by warrant
or check;
(c)
Keep a correct and current account of all moneys received and disbursed by the
treasurer, classified by fund or account;
(d)
Perform such other duties as may be required by law or by regulations issued
pursuant to this law.
It
shall be unlawful for the treasurer to issue any warrant or check for public
funds in the treasury except upon forms duly prescribed by the director of
financial management. Said forms shall provide for authentication and
certification by the agency head or the agency head's designee that the
services have been rendered or the materials have been furnished; or, in the
case of loans or grants, that the loans or grants are authorized by law; or, in
the case of payments for periodic maintenance services to be performed on state
owned equipment, that a written contract for such periodic maintenance services
is currently in effect and copies thereof are on file with the office of
financial management; and the treasurer shall not be liable under the
treasurer's surety bond for erroneous or improper payments so made: PROVIDED,
That when services are lawfully paid for in advance of full performance by any
private individual or business entity other than as provided for by RCW
42.24.035, such individual or entity other than central stores rendering such
services shall make a cash deposit or furnish surety bond coverage to the state
as shall be fixed in an amount by law, or if not fixed by law, then in such
amounts as shall be fixed by the director of the department of general
administration but in no case shall such required cash deposit or surety bond
be less than an amount which will fully indemnify the state against any and all
losses on account of breach of promise to fully perform such services: AND
PROVIDED FURTHER, That no payments shall be made in advance for any equipment
maintenance services to be performed more than three months after such payment.
Any such bond so furnished shall be conditioned that the person, firm or
corporation receiving the advance payment will apply it toward performance of
the contract. The responsibility for recovery of erroneous or improper
payments made under this section shall lie with the agency head or the agency
head's designee in accordance with regulations issued pursuant to this
chapter. Nothing in this section shall be construed to permit a public body to
advance funds to a private service provider pursuant to a grant or loan before
services have been rendered or material furnished.
(3)
The state auditor shall:
(a)
Report to the legislature the results of current post audits that have been
made of the financial transactions of each agency; to this end the auditor may,
in the auditor's discretion, examine the books and accounts of any agency,
official or employee charged with the receipt, custody or safekeeping of public
funds. The current post audit of each agency may include a section on
recommendations to the legislature as provided in (c) of this subsection
(((3)(c) of this section)).
(b)
Give information to the legislature, whenever required, upon any subject
relating to the financial affairs of the state.
(c)
Make the auditor's official report on or before the thirty-first of December
which precedes the meeting of the legislature. The report shall be for the
last complete fiscal period and shall include at least the following:
Determinations
as to whether agencies, in making expenditures, complied with the laws of this
state: PROVIDED, That nothing in this act shall be construed to grant the
state auditor the right to perform performance audits. A performance audit for
the purpose of this act shall be the examination of the effectiveness of the
administration, its efficiency and its adequacy in terms of the programs of
departments or agencies as previously approved by the legislature. The
authority and responsibility to conduct such an examination shall be vested in
the legislative budget committee as prescribed in RCW 44.28.085 as now or
hereafter amended.
(d) Be
empowered to take exception to specific expenditures that have been incurred by
any agency or to take exception to other practices related in any way to the
agency's financial transactions and to cause such exceptions to be made a
matter of public record, including disclosure to the agency concerned and to
the director of financial management. It shall be the duty of the director of
financial management to cause corrective action to be taken promptly, such
action to include, as appropriate, the withholding of funds as provided in RCW
43.88.110.
(e)
Promptly report any irregularities to the attorney general.
(f)
Investigate improper governmental activity under chapter 42.40 RCW.
(4)
The legislative budget committee may:
(a)
Make post audits of the financial transactions of any agency and management
surveys and program reviews as provided for in RCW 44.28.085 as now or
hereafter amended. To this end the committee may in its discretion examine the
books, accounts, and other records of any agency, official, or employee.
(b)
Give information to the legislature or any legislative committee whenever
required upon any subject relating to the performance and management of state
agencies.
(c)
Make a report to the legislature which shall include at least the following:
(i)
Determinations as to the extent to which agencies in making expenditures have
complied with the will of the legislature and in this connection, may take
exception to specific expenditures or financial practices of any agencies; and
(ii)
Such plans as it deems expedient for the support of the state's credit, for
lessening expenditures, for promoting frugality and economy in agency affairs
and generally for an improved level of fiscal management.
Sec.
8. RCW
43.88.160 and 1991 c 358 s 4 are each amended to read as follows:
This
section sets forth the major fiscal duties and responsibilities of officers and
agencies of the executive branch. The regulations issued by the governor
pursuant to this chapter shall provide for a comprehensive, orderly basis for
fiscal management and control, including efficient accounting and reporting
therefor, for the executive branch of the state government and may include, in
addition, such requirements as will generally promote more efficient public
management in the state.
(1)
Governor; director of financial management. The governor, through the director
of financial management, shall devise and supervise a modern and complete
accounting system for each agency to the end that all revenues, expenditures,
receipts, disbursements, resources, and obligations of the state shall be
properly and systematically accounted for. The accounting system shall include
the development of accurate, timely records and reports of all financial
affairs of the state. The system shall also provide for central accounts in
the office of financial management at the level of detail deemed necessary by
the director to perform central financial management. The director of
financial management shall adopt and periodically update an accounting
procedures manual. Any agency maintaining its own accounting and reporting
system shall comply with the updated accounting procedures manual and the rules
of the director adopted under this chapter. An agency may receive a waiver
from complying with this requirement if the waiver is approved by the
director. Waivers expire at the end of the fiscal biennium for which they are
granted. The director shall forward notice of waivers granted to the
appropriate legislative fiscal committees. The director of financial
management may require such financial, statistical, and other reports as the
director deems necessary from all agencies covering any period.
(2)
The director of financial management is responsible for quarterly reporting of
primary operating budget drivers such as applicable workloads, caseload
estimates, and appropriate unit cost data. These reports shall be transmitted
to the legislative fiscal committees or by electronic means to the legislative
evaluation and accountability program committee. Quarterly reports shall
include actual monthly data and the variance between actual and estimated data
to date. The reports shall also include estimates of these items for the
remainder of the budget period.
(3)
The director of financial management shall report at least annually to the
appropriate legislative committees regarding the status of all appropriated
capital projects, including transportation projects, showing significant cost
overruns or underruns. If funds are shifted from one project to another, the
office of financial management shall also reflect this in the annual variance
report. Once a project is complete, the report shall provide a final summary
showing estimated start and completion dates of each project phase compared to
actual dates, estimated costs of each project phase compared to actual costs,
and whether or not there are any outstanding liabilities or unsettled claims at
the time of completion.
(4) In
addition, the director of financial management, as agent of the governor,
shall:
(a)
Make surveys and analyses of agencies with the object of determining better
methods and increased effectiveness in the use of manpower and materials; and
the director shall authorize expenditures for employee training to the end that
the state may benefit from training facilities made available to state
employees;
(b)
Report to the governor with regard to duplication of effort or lack of
coordination among agencies;
(c)
Review any pay and classification plans, and changes thereunder, developed by
any agency for their fiscal impact: PROVIDED, That none of the provisions of
this subsection shall affect merit systems of personnel management now existing
or hereafter established by statute relating to the fixing of qualifications
requirements for recruitment, appointment, or promotion of employees of any
agency. The director shall advise and confer with agencies including
appropriate standing committees of the legislature as may be designated by the
speaker of the house and the president of the senate regarding the fiscal
impact of such plans and may amend or alter said plans, except that for the
following agencies no amendment or alteration of said plans may be made without
the approval of the agency concerned: Agencies headed by elective officials;
(d)
Fix the number and classes of positions or authorized man years of employment
for each agency and during the fiscal period amend the determinations
previously fixed by the director except that the director shall not be
empowered to fix said number or said classes for the following: Agencies
headed by elective officials;
(e)
Provide for transfers and repayments between the budget stabilization account
and the general fund as directed by appropriation and RCW 43.88.525 through
43.88.540;
(f)
Promulgate regulations to effectuate provisions contained in ((subsections))
(a) through (e) ((hereof)) of this subsection.
(5)
The treasurer shall:
(a)
Receive, keep, and disburse all public funds of the state not expressly
required by law to be received, kept, and disbursed by some other persons:
PROVIDED, That this subsection shall not apply to those public funds of the
institutions of higher learning which are not subject to appropriation;
(b)
Disburse public funds under the treasurer's supervision or custody by warrant
or check;
(c)
Keep a correct and current account of all moneys received and disbursed by the
treasurer, classified by fund or account;
(d)
Perform such other duties as may be required by law or by regulations issued
pursuant to this law.
It shall
be unlawful for the treasurer to issue any warrant or check for public funds in
the treasury except upon forms duly prescribed by the director of financial
management. Said forms shall provide for authentication and certification by
the agency head or the agency head's designee that the services have been
rendered or the materials have been furnished; or, in the case of loans or
grants, that the loans or grants are authorized by law; or, in the case of
payments for periodic maintenance services to be performed on state owned
equipment, that a written contract for such periodic maintenance services is
currently in effect and copies thereof are on file with the office of financial
management; and the treasurer shall not be liable under the treasurer's surety
bond for erroneous or improper payments so made: PROVIDED, That when services
are lawfully paid for in advance of full performance by any private individual
or business entity other than as provided for by RCW 42.24.035, such individual
or entity other than central stores rendering such services shall make a cash
deposit or furnish surety bond coverage to the state as shall be fixed in an
amount by law, or if not fixed by law, then in such amounts as shall be fixed
by the director of the department of general administration but in no case
shall such required cash deposit or surety bond be less than an amount which
will fully indemnify the state against any and all losses on account of breach
of promise to fully perform such services: AND PROVIDED FURTHER, That no
payments shall be made in advance for any equipment maintenance services to be
performed more than three months after such payment. Any such bond so
furnished shall be conditioned that the person, firm or corporation receiving
the advance payment will apply it toward performance of the contract. The
responsibility for recovery of erroneous or improper payments made under this
section shall lie with the agency head or the agency head's designee in
accordance with regulations issued pursuant to this chapter. Nothing in this
section shall be construed to permit a public body to advance funds to a
private service provider pursuant to a grant or loan before services have been
rendered or material furnished.
(6)
The state auditor shall:
(a)
Report to the legislature the results of current post audits that have been
made of the financial transactions of each agency; to this end the auditor may,
in the auditor's discretion, examine the books and accounts of any agency,
official or employee charged with the receipt, custody or safekeeping of public
funds. The current post audit of each agency may include a section on
recommendations to the legislature as provided in (c) of this subsection.
(b)
Give information to the legislature, whenever required, upon any subject
relating to the financial affairs of the state.
(c)
Make the auditor's official report on or before the thirty-first of December
which precedes the meeting of the legislature. The report shall be for the
last complete fiscal period and shall include at least the following:
Determinations
as to whether agencies, in making expenditures, complied with the laws of this
state: PROVIDED, That nothing in this section may be construed to grant the
state auditor the right to perform performance audits. A performance audit for
the purpose of this section is the examination of the effectiveness of the
administration, its efficiency, and its adequacy in terms of the programs of
departments or agencies as previously approved by the legislature. The authority
and responsibility to conduct such an examination shall be vested in the
legislative budget committee as prescribed in RCW 44.28.085.
(d) Be
empowered to take exception to specific expenditures that have been incurred by
any agency or to take exception to other practices related in any way to the
agency's financial transactions and to cause such exceptions to be made a
matter of public record, including disclosure to the agency concerned and to
the director of financial management. It shall be the duty of the director of
financial management to cause corrective action to be taken promptly, such
action to include, as appropriate, the withholding of funds as provided in RCW
43.88.110.
(e)
Promptly report any irregularities to the attorney general.
(f)
Investigate improper governmental activity under chapter 42.40 RCW.
(7)
The legislative budget committee may:
(a)
Make post audits of the financial transactions of any agency and management
surveys and program reviews as provided for in RCW 44.28.085. To this end the
committee may in its discretion examine the books, accounts, and other records
of any agency, official, or employee.
(b)
Give information to the legislature or any legislative committee whenever
required upon any subject relating to the performance and management of state
agencies.
(c)
Make a report to the legislature which shall include at least the following:
(i)
Determinations as to the extent to which agencies in making expenditures have
complied with the will of the legislature and in this connection, may take
exception to specific expenditures or financial practices of any agencies; and
(ii)
Such plans as it deems expedient for the support of the state's credit, for
lessening expenditures, for promoting frugality and economy in agency affairs
and generally for an improved level of fiscal management.
NEW
SECTION. Sec. 9. Section
7 of this act shall expire April 1, 1992.
NEW
SECTION. Sec. 10. Section
8 of this act shall take effect April 1, 1992.
NEW
SECTION. Sec. 11. The
sum of fifteen thousand dollars, or as much thereof as may be necessary, is
appropriated for the biennium ending June 30, 1993, from the general fund to
the human rights commission for the purposes of this act.
