Finds that: (1) There is a need to revisit the scope and purpose of the Washington management service which was established in 1993 and has grown away from and beyond its original concept; and

(2) Washington management service needs to be brought back in line with its original intent.

Requires the number of employees who are considered exempt or in Washington management services to be reduced to a level that is twenty-five percent of the amount of exempt and Washington management services employees in existence on the effective date of the act.

Requires the director of the department of personnel to require each state agency to report semiannually on the number of classified and nonclassified employees in the agency and the change compared to the previous report, the number of bonuses and performance-based incentives awarded to agency staff, and the cost of each bonus or incentive awarded.