AN ACT Relating to the department of social and health services; adding a new section to chapter 43.20A RCW; adding a new section to chapter 43.88 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This act shall be known as the department of social and health services managerial reform act of 1985.

NEW SECTION. Sec. 2. The legislature finds that when it created the department of social and health services in 1970, it had expectations that the umbrella agency approach would result in a combined, coordinated, and integrated system of human services management that would improve the delivery of necessary human service to its citizenry. The legislature further finds that this intent has not been met, and rather the department's creation has resulted in an unworkable organizational structure that is lethargic and unresponsive to client needs or legislative directive and incapable of addressing the immense complexities of human service management. Further, the legislature has invested a great deal of attention and resource in attempting to make the existing system work. The legislature further finds that the major cause of this organizational malady is the existing vortex of mid-level management and bureaucracy that has prevented the department from being accountable to elected officials.

It is the intent of the legislature to address these deficiencies by removing unnecessary and recalcitrant levels of bureaucracy and to establish clearly in state statute the internal managerial structure of the department.

NEW SECTION. Sec. 3. A new section is added to chapter 43.20A RCW to read as follows:

Notwithstanding any other provision of law, the managerial organization of the department shall be as follows:

(1) The executive component of the department shall be composed only of the secretary and the secretary's immediate support staff. No management position may be created that would come between the line of authority between the secretary and division and bureau heads.

(2) The department shall not maintain staff or the capability to perform fiscal audits and quality control reviews. Such reviews and audits shall be conducted by the state auditor pursuant to chapter 43.09 RCW.

(3) The department shall not conduct program performance audits. Such audits requested by the governor or secretary shall be conducted by the office of financial management pursuant to chapter 43.41 RCW. Performance audits requested by the legislature shall be conducted by the legislative budget committee pursuant to chapter 44.28 RCW.

(4) Administrative support services including contracts management and personnel management shall be the direct responsibility of the directors of the divisions and bureaus.

(5) The department shall not maintain a centralized budget office. All budget development shall be accomplished by division and bureau budget staff.

(6) Responsibility for developing departmental caseloads projection shall be the responsibility of the economic and revenue forecasting council pursuant to chapter 82.01 RCW.

(7) The department is prohibited from conducting policy research and formulating strategic plans. The activities shall be specifically directed in the biennial state budget.

NEW SECTION. Sec. 4. A new section is added to chapter 43.88 RCW to read as follows:

The state biennial appropriation shall include provisions for the conduct of policy research and planning for programs and services operated by the department of social and health services. This provision shall state specifically the research to be conducted, by which state agency, college, university, or private organization, and at what cost. No other policy research or planning may be included unless specifically directed by the legislature.

NEW SECTION. Sec. 5. The office of financial management shall complete a comprehensive review of all department of social and health services organizational subunits in order to identify the number and location of persons performing the management support tasks enumerated in this act. They are further directed to prepare a plan which transfers those personnel and associated funds and equipment within the department of social and health services, and from the department of social and health services to the state auditor, the legislative budget committee, and itself in a manner consistent with this act.

The office of financial management shall oversee and direct these transfers and provide a complete report to the legislature of the results of its efforts not more than six months from the date of this act's final approval by the governor.