SIXTY SECOND LEGISLATURE - FIRST SPECIAL SESSION

 

 

TWENTY NINTH DAY

 

 

House Chamber, Olympia, Tuesday, May 24, 2011

 


The House was called to order at 9:00 a.m. by the Speaker (Representative Moeller presiding).  The Clerk called the roll and a quorum was present.

 

The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Representative Maureen Walsh and Representative Norma Smith.  The Speaker (Representative Moeller presiding) led the Chamber in the Pledge of Allegiance.  The National Anthem was sung by Representative Paul Harris. The prayer was offered by Representative Phyllis Kenney, 46th District, Washington.

 

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

 

There being no objection, the House advanced to the fifth order of business.

 

REPORTS OF STANDING COMMITTEES

 

May 23, 20110)

HB 2122             Prime Sponsor, Representative Kagi: Clarifying the administration of child welfare services.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Hinkle; Kagi; Parker; Ross; Schmick; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Hasegawa, Vice Chair; Haler; Hudgins; Hunt; Kenney; Ormsby and Seaquist.

 

May 23, 20110)

2SSB 5459          Prime Sponsor, Committee on Ways & Means: Regarding services for people with developmental disabilities.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  The legislature finds that:

      (1) A developmental disability is a natural part of human life and the presence of a developmental disability does not diminish a person's rights or the opportunity to participate in the life of the local community;

      (2) The system of services for people with developmental disabilities should provide a balanced range of health, social, and supportive services at home or in other residential settings.  The receipt of services should be coordinated so as to minimize administrative cost and service duplication, and eliminate unnecessarily complex system organization;

      (3) The public interest would best be served by a broad array of services that would support people with developmental disabilities at home or in the community, whenever practicable, and that promote individual autonomy, dignity, and choice;

      (4) In Washington state, people living in residential habilitation centers and their families are satisfied with the services they receive, and deserve to continue receiving services that meet their needs if they choose to receive those services in a community setting;

      (5) As other care options for people with developmental disabilities become more available, the relative need for residential habilitation center beds is likely to decline.  The legislature recognizes, however, that residential habilitation centers will continue to be a critical part of the state's long-term care options; and that such services should promote individual dignity, autonomy, and a home-like environment; and

      (6) In a time of fiscal restraint, the state should consider the needs of all persons with developmental disabilities and spend its limited resources in a manner that serves more people, while not compromising the care people require.

NEW SECTION.  Sec. 2.  It is the intent of the legislature that:

      (1) Community-based residential services supporting people with developmental disabilities should be available in the most integrated setting appropriate to individual needs; and

      (2) An extensive transition planning and placement process should be used to ensure that people moving from a residential habilitation center to a community setting have the services and supports needed to meet their assessed health and welfare needs.

Sec. 3.  RCW 71A.10.020 and 2010 c 94 s 21 are each amended to read as follows:

      As used in this title, the following terms have the meanings indicated unless the context clearly requires otherwise.

      (1) "Community residential support services," or "community support services," and "in-home services" means one or more of the services listed in RCW 71A.12.040.

      (2) "Crisis stabilization services" means services provided to persons with developmental disabilities who are experiencing behaviors that jeopardize the safety and stability of their current living situation.  Crisis stabilization services include:
      (a) Temporary intensive services and supports, typically not to exceed sixty days, to prevent psychiatric hospitalization, institutional placement, or other out-of-home placement; and
      (b) Services designed to stabilize the person and strengthen their current living situation so the person may continue to safely reside in the community during and beyond the crisis period.
      (3) "Department" means the department of social and health services.

      (((3))) (4) "Developmental disability" means a disability attributable to intellectual disability, cerebral palsy, epilepsy, autism, or another neurological or other condition of an individual found by the secretary to be closely related to an intellectual disability or to require treatment similar to that required for individuals with intellectual disabilities, which disability originates before the individual attains age eighteen, which has continued or can be expected to continue indefinitely, and which constitutes a substantial limitation to the individual.  By January 1, 1989, the department shall promulgate rules which define neurological or other conditions in a way that is not limited to intelligence quotient scores as the sole determinant of these conditions, and notify the legislature of this action.

      (((4))) (5) "Eligible person" means a person who has been found by the secretary under RCW 71A.16.040 to be eligible for services.

      (((5))) (6) "Habilitative services" means those services provided by program personnel to assist persons in acquiring and maintaining life skills and to raise their levels of physical, mental, social, and vocational functioning.  Habilitative services include education, training for employment, and therapy.

      (((6))) (7) "Legal representative" means a parent of a person who is under eighteen years of age, a person's legal guardian, a person's limited guardian when the subject matter is within the scope of the limited guardianship, a person's attorney‑at‑law, a person's attorney‑in‑fact, or any other person who is authorized by law to act for another person.

      (((7))) (8) "Notice" or "notification" of an action of the secretary means notice in compliance with RCW 71A.10.060.

      (((8))) (9) "Residential habilitation center" means a state- operated facility for persons with developmental disabilities governed by chapter 71A.20 RCW.

      (((9))) (10) "Respite services" means relief for families and other caregivers of people with disabilities, typically not to exceed ninety days, to include both in-home and out-of-home respite care on an hourly and daily basis, including twenty-four hour care for several consecutive days.  Respite care workers provide supervision, companionship, and personal care services temporarily replacing those provided by the primary caregiver of the person with disabilities.  Respite care may include other services needed by the client, including medical care which must be provided by a licensed health care practitioner.
      (11) "Secretary" means the secretary of social and health services or the secretary's designee.

      (((10))) (12) "Service" or "services" means services provided by state or local government to carry out this title.

      (((11))) (13) "State-operated living alternative" means programs for community residential services which may include assistance with activities of daily living, behavioral, habilitative, interpersonal, protective, medical, nursing, and mobility supports to individuals who have been assessed by the department as meeting state and federal requirements for eligibility in home and community-based waiver programs for individuals with developmental disabilities.  State- operated living alternatives are operated and staffed with state employees.
      (14) "Supported living" means community residential services and housing which may include assistance with activities of daily living, behavioral, habilitative, interpersonal, protective, medical, nursing, and mobility supports provided to individuals with disabilities who have been assessed by the department as meeting state and federal requirements for eligibility in home and community-based waiver programs for individuals with developmental disabilities.  Supported living services are provided under contracts with private agencies or with individuals who are not state employees.
      (15) "Vacancy" means an opening at a residential habilitation center, which when filled, would not require the center to exceed its biennially budgeted capacity.

Sec. 4.  RCW 71A.20.010 and 1988 c 176 s 701 are each amended to read as follows:

(1) This chapter covers the operation of residential habilitation centers.  The selection of persons to be served at the centers is governed by chapters 71A.16 and 71A.18 RCW.  The purposes of this chapter are:  To provide for those ((children and adults)) persons who are exceptional in their needs for care, treatment, and education by reason of developmental disabilities, residential care designed to develop their individual capacities to their optimum; to provide for admittance, withdrawal and discharge from state residential habilitation centers upon application; and to insure a comprehensive program for the education, guidance, care, treatment, and rehabilitation of all persons admitted to residential habilitation centers.

(2) Effective no later than July 1, 2012, no person under the age of sixteen years may be admitted to receive services at a residential habilitation center.  Effective no later than July 1, 2012, no person under the age of twenty-one years may be admitted to receive services at a residential center, unless there are no service options available in the community to appropriately meet the needs of the individual.  Such admission is limited to the provision of short-term respite or crisis stabilization services.

Sec. 5.  RCW 71A.20.020 and 1994 c 215 s 1 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the following  residential habilitation centers are permanently established to provide services to persons with developmental disabilities:  Lakeland Village, located at Medical Lake, Spokane county; Rainier School, located at Buckley, Pierce county; Yakima Valley School, located at Selah, Yakima county; and Fircrest School, located at Seattle, King county((; and Frances Haddon Morgan Children's Center, located at Bremerton, Kitsap county)).

(2) The Yakima Valley School, located at Selah, Yakima county, shall cease to operate as a residential habilitation center when the conditions in section 6(2)(b) are met.

NEW SECTION.  Sec. 6.  A new section is added to chapter 71A.20 RCW to read as follows:

      (1) By December 31, 2011, the department shall:

      (a) Close Frances Haddon Morgan residential rehabilitation center and relocate current residents consistent with the requirements of section 7 of this act; and

      (b) Establish at least two state operating living alternatives on the campus of the Frances Haddon Morgan center, if residents have chosen to receive care in such a setting and subject to federal requirements related to the receipt of federal medicaid matching funds.

      (2)(a) Upon the effective date of this section, the department shall not permit any new admission to Yakima Valley School unless such admission is limited to the provision of short-term respite or crisis stabilization services.  Except as provided in (b) of this subsection, no current permanent resident of Yakima Valley School shall be required or compelled to relocate to a different care setting as a result of this act.

      (b) The Yakima Valley School shall continue to operate as a residential habilitation center until such time that the census of permanent residents has reached sixteen persons.  As part of the closure plan, at least two cottages will be converted to state-operated living alternatives, subject to federal requirements related to the receipt of federal medicaid matching funds.

      (3) To assure the successful implementation of subsections (1) and (2) of this section, the department, within available funds:

      (a) Shall establish state-operated living alternatives to provide community residential services to residential habilitation center residents transitioning to the community under this act who prefer a state-operated living alternative.  The department shall offer residential habilitation center employees opportunities to work in state-operated living alternatives as they are established;

      (b) May use existing supported living program capacity in the community for former residential habilitation center residents who prefer and choose a supported living program;

      (c) Shall continue to staff and operate at Yakima Valley School crisis stabilization beds and respite service beds at the existing bed capacity as of June 1, 2011, for individuals with developmental disabilities requiring such services;

      (d) Shall establish up to eight state-staffed crisis stabilization beds and up to eight state-staffed respite beds based upon funding provided in the appropriations act and the geographic areas with the greatest need for those services; and

      (e) Shall establish regional or mobile specialty services evenly distributed throughout the state, such as dental care, physical therapy, occupational therapy, and specialized nursing care, which can be made available to former residents of residential habilitation centers and, within available funds, other individuals with developmental disabilities residing in the community.

NEW SECTION.  Sec. 7.  A new section is added to chapter 71A.20 RCW to read as follows:

      The department:

      (1) May, within sixty days of admission to a residential habilitation center, ensure that each resident's individual habilitation plan includes a plan for discharge to the community;

      (2) Shall use a person-centered approach in developing the discharge plan to assess the resident's needs and identify services the resident requires to successfully transition to the community, including:

      (a) Engaging families and guardians of residents by offering family-to-family mentoring provided by family members who themselves experienced moving a family member with developmental disabilities from an institution to the community.  The department shall contract with the developmental disabilities council to provide mentoring services;

      (b) Employees of the residential habilitation centers and the department providing transition planning for residents.  To strengthen continuity of care for residents leaving residential habilitation centers, the department shall provide opportunities for residential habilitation center employees to obtain employment in state-operated living alternatives;

      (c) Providing choice of community living options and providers, consistent with federal requirements, including offering to place, with the consent of the resident or his or her guardian, each resident of the residential habilitation center on the appropriate home and community-based waiver, as authorized under 42 U.S.C. Sec. 1396n, and provide continued access to the services that meet his or her assessed needs;

      (d) Providing residents and their families or guardians opportunities to visit state-operated living alternatives and supported living options in the community;

      (e) Offering residents leaving a residential habilitation center a "right to return" to a residential habilitation center during the first year following their move;

      (f) Addressing services in addition to those that will be provided by residential services providers that are necessary to address the resident's assessed needs, including:

      (i) Medical services;

      (ii) Nursing services;

      (iii) Dental care;

      (iv) Behavioral and mental health supports;

      (v) Habilitation services;

      (vi) Employment or other day support; and

      (vii) Transportation or other supports needed to assist family and friends in maintaining regular contact with the resident;

      (3) Shall assure that, prior to discharge from a residential habilitation center, clients continue to be eligible for services for which they have an assessed need;

      (4) Shall maximize federal funding for transitioning clients through the roads to community living grant;

      (5) Shall limit the ability of a state-operated living alternative to reject clients;

      (6) Shall use any savings achieved through efficiencies to extend services, including state-staffed crisis stabilization and respite services, to people with developmental disabilities currently receiving limited or no services; and

      (7)(a) Shall employ the quality assurance process currently in use by the department to monitor the adjustment of each resident who leaves a residential habilitation center; and

      (b) Convene a work group to review findings from the quality assurance for people moving process and provide feedback on the transition process.  The work group shall include representatives of the developmental disabilities council, disability rights Washington, University of Washington center for human development and disability, providers, and families and advocates of persons with disabilities.

NEW SECTION.  Sec. 8.  A new section is added to chapter 70.02 RCW to read as follows:

      (1) A developmental disability service system task force is established.

      (2) The task force shall be convened by September 1, 2011, and consist of the following members:

      (a) Two members of the house of representatives appointed by the speaker of the house of representatives, from different political caucuses;

      (b) Two members of the senate appointed by the president of the senate, from different political caucuses;

      (c) The following members appointed by the governor:

      (i) Two advocates for people with developmental disabilities;

      (ii) A representative from the developmental disabilities council;

      (iii) A representative of families of residents in residential habilitation centers;

      (iv) Two representatives of labor unions representing workers who serve residents in residential habilitation centers;

      (d) The secretary of the department of social and health services or their designee; and

      (e) The secretary of the department of general administration or their designee.

      (3) The members of the task force shall select the chair or cochairs of the task force.

      (4) Staff assistance for the task force will be provided by legislative staff and staff from the agencies listed in subsection (2) of this section.

      (5) The task force shall make recommendations on:

      (a) The development of a system of services for persons with developmental disabilities that is consistent with the goals articulated in section 1 of this act;

      (b) The state's long-term needs for residential habilitation center capacity, including the benefits and disadvantages of maintaining one center in eastern Washington and one center in western Washington;

      (c) A plan for efficient consolidation of institutional capacity, including whether one or more centers should be downsized or closed and, if so, a time frame for closure;

      (d) Mechanisms through which any savings that result from the downsizing, consolidation, or closure of residential habilitation center capacity can be used to create additional community-based capacity;

      (e) Strategies for the use of surplus property that results from the closure of one or more centers;

      (f) Strategies for reframing the mission of Yakima Valley School consistent with this act that consider:

      (i) The opportunity, where cost-effective, to provide medical services, including centers of excellence, to other clients served by the department; and

      (ii) The creation of a treatment team consisting of crisis stabilization and short-term respite services personnel, with the long- term goal of expanding to include the provisions of specialty services such as dental care, physical therapy, occupational therapy, and specialized nursing care to individuals with developmental disabilities residing in the surrounding community.

      (6) The task force shall report their recommendations to the appropriate committees of the legislature by December 1, 2012.

Sec. 9.  RCW 71A.18.040 and 1989 c 175 s 142 are each amended to read as follows:

      (1) A person who is receiving a service under this title or the person's legal representative may request the secretary to authorize a service that is available under this title in place of a service that the person is presently receiving.

      (2) The secretary upon receiving a request for change of service shall consult in the manner provided in RCW 71A.10.070 and within ninety days shall determine whether the following criteria are met:

      (a) The alternative plan proposes a less dependent program than the person is participating in under current service;

      (b) The alternative service is appropriate under the goals and objectives of the person's individual service plan;

      (c) The alternative service is not in violation of applicable state and federal law; and

      (d) The service can reasonably be made available.

      (3) If the requested alternative service meets all of the criteria of subsection (2) of this section, the service shall be authorized as soon as reasonable, but not later than one hundred twenty days after completion of the determination process, unless the secretary determines that:

      (a) The alternative plan is more costly than the current plan;

      (b) Current appropriations are not sufficient to implement the alternative service without reducing services to existing clients; or

      (c) Providing alternative service would take precedence over other priorities for delivery of service.

      (4) The secretary shall give notice as provided in RCW 71A.10.060 of the grant of a request for a change of service.  The secretary shall give notice as provided in RCW 71A.10.060 of denial of a request for change of service and of the right to an adjudicative proceeding.

      (5)(a) When the secretary has changed service from a residential habilitation center to a setting other than a residential habilitation center, the secretary shall reauthorize service at the residential habilitation center if the secretary in reevaluating the needs of the person finds that the person needs service in a residential habilitation center.

(b) A person who has moved from a residential habilitation center that has closed to a community-based setting shall be offered a right to return to a residential habilitation center during the first year following their move to the community.

      (6) If the secretary determines that current appropriations are sufficient to deliver additional services without reducing services to persons who are presently receiving services, the secretary is authorized to give persons notice under RCW 71A.10.060 that they may request the services as new services or as changes of services under this section.

Sec. 10.  RCW 71A.20.080 and 1989 c 175 s 143 are each amended to read as follows:

(1) Whenever in the judgment of the secretary, the treatment and training of any resident of a residential habilitation center has progressed to the point that it is deemed advisable to return such resident to the community, the secretary may grant placement on such terms and conditions as the secretary may deem advisable after consultation in the manner provided in RCW 71A.10.070.  The secretary shall give written notice of the decision to return a resident to the community as provided in RCW 71A.10.060.  The notice must include a statement advising the recipient of the right to an adjudicative proceeding under RCW 71A.10.050 and the time limits for filing an application for an adjudicative proceeding.  The notice must also include a statement advising the recipient of the right to judicial review of an adverse adjudicative order as provided in chapter 34.05 RCW.

(2) A placement decision shall not be implemented at any level during any period during which an appeal can be taken or while an appeal is pending and undecided, unless authorized by court order so long as the appeal is being diligently pursued.

      ((The department of social and health services shall periodically evaluate at reasonable intervals the adjustment of the resident to the specific placement to determine whether the resident should be continued in the placement or returned to the institution or given a different placement.))

NEW SECTION.  Sec. 11.  A new section is added to chapter 71A.20 RCW to read as follows:

      Beginning November 1, 2012, and annually thereafter, the department shall submit information to the appropriate committees of the legislature regarding persons who have transitioned from residential habilitation centers to the community, for the first two years following each person's new placement, including:

      (1) Progress toward meeting the requirements of this act;

      (2) Client and guardian satisfaction with services;

      (3) Stability of placement and provider turnover, including information on returns to a residential habilitation center under section 7(2)(e) of this act;

      (4) Safety and health outcomes;

      (5) Types of services received by clients transitioned to the community; and

      (6) Continued accessibility of former residents to family.

Sec. 12.  RCW 71A.20.170 and 2008 c 265 s 1 are each amended to read as follows:

      (1) The developmental disabilities community trust account is created in the state treasury.  All net proceeds from the use of excess property identified in the 2002 joint legislative audit and review committee capital study or other studies of the division of developmental disabilities residential habilitation centers ((at Lakeland Village, Yakima Valley school, Francis Haddon Morgan Center, and Rainier school)) that would not impact current residential habilitation center operations must be deposited into the account. 

      (2) Proceeds may come from the lease of the land, conservation easements, sale of timber, or other activities short of sale of the property, except as permitted under section 7 of this act.

      (3) "Excess property" includes that portion of the property at Rainier school previously under the cognizance and control of Washington State University for use as a dairy/forage research facility. 

      (4) Only investment income from the principal of the proceeds deposited into the trust account may be spent from the account.  For purposes of this section, "investment income" includes lease payments, rent payments, or other periodic payments deposited into the trust account.  For purposes of this section, "principal" is the actual excess land from which proceeds are assigned to the trust account.

      (5) Moneys in the account may be spent only after appropriation.  Expenditures from the account shall be used exclusively to provide family support and/or employment/day services to eligible persons with developmental disabilities who can be served by community-based developmental disability services.  It is the intent of the legislature that the account should not be used to replace, supplant, or reduce existing appropriations.

      (6) The account shall be known as the Dan Thompson memorial developmental disabilities community trust account.

NEW SECTION.  Sec. 13.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 14.  If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned.  Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 15.  Section 7 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect June 30, 2011."

                Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Orcutt, Assistant Ranking Minority Member; Carlyle; Cody; Dickerson; Hinkle; Hudgins; Kagi; Kenney; Ross; Seaquist; Springer and Sullivan.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Chandler; Haigh; Haler; Hunt; Ormsby; Parker; Schmick and Wilcox.

 

May 23, 20110)

SSB 5534            Prime Sponsor, Committee on Ways & Means: Concerning the business and occupation taxation of newspapers.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

      On page 9, after line 9, insert the following:

"NEW SECTION.  Sec. 4.  This act expires July 1, 2021."

      Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hinkle; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Ross; Schmick; Seaquist; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Without recommendation.  Signed by Representative Hasegawa, Vice Chair.

 

May 23, 20110)

2SSB 5539          Prime Sponsor, Committee on Ways & Means: Concerning Washington's motion picture competitiveness.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

      On page 7, line 19, after "exceed" strike "three million five hundred" and insert "((three million five hundred)) one million seven hundred fifty"

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hinkle; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Ross; Schmick; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Do not pass.  Signed by Representative Seaquist.

 

May 23, 20110)

E2SSB 5669       Prime Sponsor, Committee on Ways & Means: Regarding the consolidation of natural resources agencies and programs.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass.  Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Hudgins; Hunt; Kagi; Kenney; Ormsby; Seaquist; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Haigh; Haler; Hinkle; Parker; Ross and Schmick.

 

May 23, 20110)

ESSB 5749         Prime Sponsor, Committee on Higher Education & Workforce Development: Regarding the Washington advanced college tuition payment (GET) program.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass.  Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hinkle; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Ross; Schmick; Seaquist; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Do not pass.  Signed by Representative Hasegawa, Vice Chair.

 

May 23, 20110)

SSB 5846            Prime Sponsor, Committee on Ways & Means: Offering health benefit subsidies for certain retired public employees.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 41.05 RCW to read as follows:

      From September 1, 2011, through August 31, 2014, the health care authority shall provide an optional subsidy of two hundred fifty dollars per month for health benefit premiums to any member of plan 1 of the teachers' retirement system who:

      (1) Is ineligible for medicare;

      (2) Has signed an employment contract under RCW 28A.405.210 by May 20, 2011, for the 2011-12 school year and has not previously notified the school district of an intent to retire at the conclusion of the 2010-11 school year;

      (3) Applies for retirement under RCW 41.32.480 after May 20, 2011, and before September 1, 2011; and

      (4) Receives the first installment of a retirement allowance as provided under RCW 41.32.480 before October 31, 2011."

Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Cody; Dickerson; Haigh; Haler; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Seaquist; Springer; Sullivan and Wilcox.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Chandler; Hinkle; Ross and Schmick.

 

May 23, 20110)

ESB 5873           Prime Sponsor, Senator Prentice: Concerning the sales and use tax exemption for qualifying businesses of eligible server equipment.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 82.08.986 and 2010 1st sp.s. c 23 s 1601 are each amended to read as follows:

      (1) An exemption from the tax imposed by RCW 82.08.020 is provided for sales to qualifying businesses of eligible server equipment to be installed, without intervening use, in an eligible computer data center, and to charges made for labor and services rendered in respect to installing eligible server equipment.  The exemption also applies to sales to qualifying businesses of eligible power infrastructure, including labor and services rendered in respect to constructing, installing, repairing, altering, or improving eligible power infrastructure.

      (2)(a) In order to claim the exemption under this section, a qualifying business must submit an application to the department for an exemption certificate.  The application must include the information necessary, as required by the department, to determine that a business qualifies for the exemption under this section.  The department must issue exemption certificates to qualifying businesses.  The department may assign a unique identification number to each exemption certificate issued under this section.

      (b) A qualifying business claiming the exemption under this section must present the seller with an exemption certificate in a form and manner prescribed by the department.  The seller must retain a copy of the certificate for the seller's files.

      (3)(a) Within six years of the date that the department issued an exemption certificate under this section to a qualifying business with respect to an eligible computer data center, the qualifying business must establish that net employment at the eligible computer data center has increased by a minimum of:

      (i) Thirty-five family wage employment positions; or

      (ii) Three family wage employment positions for each twenty thousand square feet of space or less that is newly dedicated to housing working servers at the eligible computer data center.  For qualifying businesses that lease or sublease space at an eligible computer data center, the number of family wage employment positions that must be increased under this subsection (3)(a)(ii) is based only on the space occupied by the lessee or sublessee in the eligible computer data center.

      (b) In calculating the net increase in family wage employment positions:

      (i) The owner of an eligible computer data center, in addition to its own net increase in family wage employment positions, may include:

      (A) The net increase in family wage employment positions employed by qualifying businesses leasing or subleasing space within the eligible computer data center ((from the owner)); and

      (B) The net increase in family wage employment positions described in (c)(ii)(B) of this subsection (3).

      (ii)(A) Lessees ((of the owner of)) and sublessees of space within an eligible computer data center, in addition to their own net increase in family wage employment positions, may include:

      (I) A portion of the net increase in family wage employment positions employed by the owner; and

      (II) A portion of the net increase in family wage employment positions described in (c)(ii)(B) of this subsection (3).

      (B) The portion of the net increase in family wage employment positions to be counted under this subsection (3)(b)(ii) by each lessee or sublessee must be in proportion to the amount of space in the eligible computer data center occupied by the lessee or sublessee compared to the total amount of space in the eligible computer data center occupied by all lessees and sublessees that are qualifying businesses.

      (c)(i) For purposes of this subsection, family wage employment positions are new permanent employment positions requiring forty hours of weekly work, or their equivalent, on a full-time basis at the eligible computer data center and receiving a wage equivalent to or greater than one hundred fifty percent of the per capita personal income of the county in which the qualified project is located.  An employment position may not be counted as a family wage employment position unless the employment position is entitled to health insurance coverage provided by the employer of the employment position.  For purposes of this subsection (3)(c), "new permanent employment position" means an employment position that did not exist or that had not previously been filled as of the date that the department issued an exemption certificate to the owner ((or)), lessee, or sublessee of an eligible computer data center, as the case may be.

      (ii)(A) Family wage employment positions include positions filled by employees of the owner of the eligible computer data center and by employees of qualifying businesses leasing or subleasing space ((from the owner of)) within the eligible computer data center.

      (B) Family wage employment positions also include individuals performing work at an eligible computer data center as an independent contractor hired by the owner of the eligible computer data center or as an employee of an independent contractor hired by the owner of the eligible computer data center, if the work is necessary for the operation of the computer data center, such as security and building maintenance, and provided that all of the requirements in (c)(i) of this subsection (3) are met.

      (d) All previously exempted sales and use taxes are immediately due and payable for a qualifying business that does not meet the requirements of this subsection.

      (4) A qualifying business claiming an exemption under this section or RCW 82.12.986 must complete an annual report with the department as required under RCW 82.32.534.

      (5)(a) The exemption provided in this section does not apply to:

      (i) Any person who has received the benefit of the deferral program under chapter 82.60 RCW on:  (A) The construction, renovation, or expansion of a structure or structures used as a computer data center; or (B) machinery or equipment used in a computer data center; and

      (ii) Any person affiliated with a person within the scope of (a)(i) of this subsection (5).  For purposes of this subsection, "affiliated" means that one person has a direct or indirect ownership interest of at least twenty percent in another person.

      (b) If a person claims an exemption under this section and subsequently receives the benefit of the deferral program under chapter 82.60 RCW on either the construction, renovation, or expansion of a structure or structures used as a computer data center or machinery or equipment used in a computer data center, the person must repay the amount of taxes exempted under this section.  Interest as provided in chapter 82.32 RCW applies to amounts due under this section until paid in full.

      (6) For purposes of this section the following definitions apply unless the context clearly requires otherwise:

      (a)(i) "Computer data center" means a facility comprised of one or more buildings, which may be comprised of multiple businesses, constructed or refurbished specifically, and used primarily, to house working servers, where the facility has the following characteristics: (A) Uninterruptible power supplies, generator backup power, or both; (B) sophisticated fire suppression and prevention systems; and (C) enhanced physical security, such as:  Restricted access to the facility to selected personnel; permanent security guards; video camera surveillance; an electronic system requiring passcodes, keycards, or biometric scans, such as hand scans and retinal or fingerprint recognition; or similar security features.

      (ii) For a computer data center comprised of multiple buildings, each separate building constructed or refurbished specifically, and used primarily, to house working servers is considered a computer data center if it has all of the characteristics listed in (a)(i)(A) through (C) of this subsection (6).

      (iii) A facility comprised of one building or more than one building must have a combined square footage of at least one hundred thousand square feet.

      (b) "Electronic data storage and data management services" include, but are not limited to:  Providing data storage and backup services, providing computer processing power, hosting enterprise software applications, and hosting web sites.  The term also includes providing services such as e-mail, web browsing and searching, media applications, and other online services, regardless of whether a charge is made for such services.

      (c)(i) "Eligible computer data center" means a computer data center:

      (A) Located in a rural county as defined in RCW 82.14.370;

      (B) Having at least twenty thousand square feet dedicated to housing working servers, where the server space has not previously been dedicated to housing working servers; and

      (C) For which the commencement of construction occurs after March 31, 2010, and before July 1, ((2011)) 2014.  For purposes of this section, "commencement of construction" means the date that a building permit is issued under the building code adopted under RCW 19.27.031 for construction of the computer data center.  The construction of a computer data center includes the expansion, renovation, or other improvements made to existing facilities, including leased or rented space.  "Commencement of construction" does not include soil testing, site clearing and grading, site preparation, or any other related activities that are initiated before the issuance of a building permit for the construction of the foundation of a computer data center.

      (ii) With respect to facilities in existence on April 1, 2010, that are expanded, renovated, or otherwise improved after March 31, 2010, an eligible computer data center includes only the portion of the computer data center meeting the requirements in (c)(i)(B) of this subsection (6).

      (d) "Eligible power infrastructure" means all fixtures and equipment necessary for the transformation, distribution, or management of electricity that is required to operate eligible server equipment within an eligible computer data center and is purchased or put to first use before April 1, 2018, or April 1, 2021, in the case of such fixtures and equipment for an eligible computer data center for which commencement of construction occurs after June 30, 2011.  The term includes electrical substations((,)); generators((,)); wiring((, and)); cogeneration equipment; and associated fixtures and equipment, such as electrical switches, batteries, and distribution, testing, and monitoring equipment.

      (e) "Eligible server equipment" means the original server equipment installed in an eligible computer data center on or after April 1, 2010, and replacement server equipment.  For purposes of this subsection (6)(e), "replacement server equipment" means server equipment that:  (i) Replaces existing server equipment, if the sale or use of the server equipment to be replaced qualified for an exemption under this section or RCW 82.12.986; and (ii) is installed and put into regular use before April 1, 2018, or April 1, 2021, in the case of server equipment for an eligible computer data center for which the commencement of construction occurs after June 30, 2011.

      (f) "Qualifying business" means a business entity that exists for the primary purpose of engaging in commercial activity for profit and that is the owner of an eligible computer data center or the lessee or sublessee of ((at least twenty thousand square feet)) server space within an eligible computer data center ((dedicated to housing working servers, where the server space has not previously been dedicated to housing working servers)).  The term does not include the state or federal government or any of their departments, agencies, and institutions; tribal governments; political subdivisions of this state; or any municipal, quasi-municipal, public, or other corporation created by the state or federal government, tribal government, municipality, or political subdivision of the state.

      (g) (("Server" means blade or rack-mount server computers used in a computer data center exclusively to provide electronic data storage and data management services for internal use by the owner or lessee of the computer data center, for clients of the owner or lessee of the computer data center, or both.  "Server" does not include personal computers.
      (h) "Server equipment" means the server chassis and all computer hardware contained within the server chassis.  "Server equipment" also includes computer software necessary to operate the server.  "Server equipment" does not include the racks upon which the server chassis is installed, and computer peripherals such as keyboards, monitors, printers, mice, and other devices that work outside of the computer.)) "Server equipment" means the computer hardware located in an eligible computer data center and used exclusively to provide electronic data storage and data management services for internal use by the owner, lessee, or sublessee of the computer data center, for clients of the owner, lessee, or sublessee of the computer data center, or both.  "Server equipment" also includes computer software necessary to operate the computer hardware.  "Server equipment" does not include personal computers, the racks upon which the server equipment is installed, and computer peripherals such as keyboards, monitors, printers, and mice.

      (7) This section expires April 1, ((2018)) 2021.

Sec. 2.  RCW 82.12.986 and 2010 1st sp.s. c 23 s 1602 are each amended to read as follows:

      (1) An exemption from the tax imposed by RCW 82.12.020 is provided for the use by qualifying businesses of eligible server equipment to be installed, without intervening use, in an eligible computer data center, and to the use of labor and services rendered in respect to installing such server equipment.  The exemption also applies to the use of power infrastructure, including labor and services rendered in respect to installing, repairing, altering, or improving such infrastructure.

      (2) A qualifying business is not eligible for the exemption under this section unless the department issued an exemption certificate to the qualifying business for the exemption provided in RCW 82.08.986.

      (3)(a) The exemption provided in this section does not apply to:

      (i) Any person who has received the benefit of the deferral program under chapter 82.60 RCW on:  (A) The construction, renovation, or expansion of a structure or structures used as a computer data center; or (B) machinery or equipment used in a computer data center; and

      (ii) Any person affiliated with a person within the scope of (a)(i) of this subsection (3).  For purposes of this subsection, "affiliated" means that one person has a direct or indirect ownership interest of at least twenty percent in another person.

      (b) If a person has received the benefit of the exemption under this section and subsequently receives the benefit of the deferral program under chapter 82.60 RCW on either the construction, renovation, or expansion of a structure or structures used as a computer data center or machinery or equipment used in a computer data center, the person must repay the amount of taxes exempted under this section.  Interest as provided in chapter 82.32 RCW applies to amounts due under this subsection (3)(b) until paid in full.  A person is not required to repay taxes under this subsection with respect to property and services for which the person is required to repay taxes under RCW 82.08.986(5).

      (4) The definitions and requirements in RCW 82.08.986 apply to this section.

      (5) This section expires April 1, ((2018)) 2021.

NEW SECTION.  Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011."

Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hinkle; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Ross; Schmick; Seaquist; Springer; Sullivan and Wilcox.

 

May 23, 20110)

ESSB 5931         Prime Sponsor, Committee on Ways & Means: Reorganizing and streamlining central service functions, powers, and duties of state government.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

Strike everything after the enacting clause and insert the following:

"PART I
DEPARTMENT OF ENTERPRISE SERVICES CREATED

NEW SECTION.  Sec. 101.  To maximize the benefits to the public, state government should be operated in an efficient and effective manner.  The department of enterprise services is created to provide centralized leadership in efficiently and cost-effectively managing resources necessary to support the delivery of state government services.  The mission of the department is to implement a world-class, customer-focused organization that provides valued products and services to government and state residents.

NEW SECTION.  Sec. 102.  A new section is added to chapter 43.19 RCW to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Department" means the department of enterprise services.

      (2) "Director" means the director of enterprise services.

NEW SECTION.  Sec. 103.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The department of enterprise services is created as an executive branch agency.  The department is vested with all powers and duties transferred to it under this act and such other powers and duties as may be authorized by law.

      (2) In addition to the powers and duties as provided in this act, the department shall:

      (a) Provide products and services to support state agencies, and may enter into agreements with any other governmental entity or a public benefit nonprofit organization, in compliance with RCW 39.34.055, to furnish such products and services as deemed appropriate by both parties.  The agreement shall provide for the reimbursement to the department of the reasonable cost of the products and services furnished.  All governmental entities of this state may enter into such agreements, unless otherwise prohibited; and

      (b) Make available to state, local, and federal agencies, local governments, and public benefit nonprofit corporations on a full cost- recovery basis information and printing services to include equipment acquisition assistance, including leasing, brokering, and establishing master contracts.  For the purposes of this section "public benefit nonprofit corporation" means a public benefit nonprofit corporation as defined in RCW 24.03.005 that is receiving local, state, or federal funds either directly or through a public agency other than an Indian tribe or political subdivision of another state.

NEW SECTION.  Sec. 104.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The executive powers and management of the department shall be administered as described in this section.

      (2) The executive head and appointing authority of the department is the director.  The director is appointed by the governor, subject to confirmation by the senate.  The director serves at the pleasure of the governor.  The director is paid a salary fixed by the governor in accordance with RCW 43.03.040.  If a vacancy occurs in the position of director while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate at which time he or she shall present to that body his or her nomination for the position.

      (3) The director may employ staff members, who are exempt from chapter 41.06 RCW, and any additional staff members as are necessary to administer this chapter, and such other duties as may be authorized by law.  The director may delegate any power or duty vested in him or her by this act or other law, including authority to make final decisions and enter final orders in hearings conducted under chapter 34.05 RCW.

      (4) The internal affairs of the department are under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances.  Unless specifically limited by law, the director has complete charge and supervisory powers over the department.  The director may create the administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

      (5) Until June 30, 2018, at the beginning of each fiscal biennium, the office of financial management shall conduct a review of the programs and services that are performed by the department to determine whether the program or service may be performed by the private sector in a more cost-efficient and effective manner than being performed by the department.  In conducting this review, the office of financial management shall:

      (a) Examine the existing activities currently being performed by the department, including but not limited to an examination of services for their performance, staffing, capital requirements, and mission.  Programs may be broken down into discrete services or activities or reviewed as a whole; and

      (b) Examine the activities to determine which specific services are available in the marketplace and what potential for efficiency gains or savings exist.

      (i) As part of the review in this subsection (5), the office of financial management shall select up to six activities or services that have been determined as an activity that may be provided by the private sector at a cost-effective and efficient manner.  The office of financial management must consult with the affected industry stakeholders in making its decision on which activities to contract out.  Priority for selection shall be given to agency activities or services that are significant, ongoing functions.

      (ii) The office of financial management must consider the consequences and potential mitigation of improper or failed performance by the contractor.

      (iii) For each of the selected activities, the department shall use a request for information, request for proposal, or other procurement process to determine if a contract for the activity would result in the activity being provided at a reduced cost and with greater efficiency.

      (iv) The request for information, request for proposal, or other procurement process must contain measurable standards for the performance of the contract.

      (v) The department may contract with one or more vendors to provide the service as a result of the procurement process.

      (vi) If the office of financial management determines through the procurement process under this subsection that the activity cannot be provided by the private sector at a reduced cost and greater efficiency, the department may cancel the procurement without entering into a contract and shall promptly notify the legislative fiscal committees of such a decision.

      (vii) The department of enterprise services, in consultation with the office of financial management, must establish a contract monitoring process to measure contract performance, costs, service delivery quality, and other contract standards, and to cancel contracts that do not meet those standards.  No contracts may be renewed without a review of these measures.

      (viii) The office of financial management shall prepare a biennial report summarizing the results of the examination of the agency's programs and services.  In addition to the programs and services examined and the result of the examination, the report shall provide information on any procurement process that does not result in a contract for the services.

      (ix) The joint legislative audit and review committee shall conduct a performance audit of the contracting out provisions of this subsection (5) and report to the legislature by January 1, 2018, on the results of the performance audit.  The report must include additional costs or savings to taxpayers as a result of the contracting out provisions.

NEW SECTION.  Sec. 105.  (1) The department of enterprise services has powers and duties related to state contracting as provided in chapters 43.19 and 39.29 RCW.  The process and procedures in each chapter differ from each other in many respects.  In addition, the process and procedures may not represent the best practices for the agency or the public.

      (2) In order to effect reform and consolidation of procurement practices, the department shall review current state procurement practices, not including public works, and provide a report to the governor with procurement reform recommendations.  The department should review national best practices and the procedures used in other states and by the federal government.  The department may also review private sector procedures and model codes such as the American bar association model procurement code.  The department shall seek input from stakeholders and interested parties.  The department shall submit a report to the governor and the office of financial management by December 31, 2011.  The report shall include any draft legislation needed to accomplish the report's recommendations.

NEW SECTION.  Sec. 106.  A new section is added to chapter 41.06 RCW to read as follows:

      In addition to the exemptions under RCW 41.06.070, this chapter does not apply in the department of enterprise services to the director, the director's confidential secretary, deputy and assistant directors, and any other exempt staff members provided for in section 104 of this act.

Sec. 107.  RCW 43.17.010 and 2009 c 565 s 25 are each amended to read as follows:

      There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fish and wildlife, (6) the department of transportation, (7) the department of licensing, (8) the department of ((general administration)) enterprise services, (9) the department of commerce, (10) the department of veterans affairs, (11) the department of revenue, (12) the department of retirement systems, (13) the department of corrections, (14) the department of health, (15) the department of financial institutions, (16) the department of archaeology and historic preservation, (17) the department of early learning, and (18) the Puget Sound partnership, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 108.  RCW 43.17.020 and 2009 c 565 s 26 are each amended to read as follows:

      There shall be a chief executive officer of each department to be known as:  (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fish and wildlife, (6) the secretary of transportation, (7) the director of licensing, (8) the director of ((general administration)) enterprise services, (9) the director of commerce, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, (14) the secretary of health, (15) the director of financial institutions, (16) the director of the department of archaeology and historic preservation, (17) the director of early learning, and (18) the executive director of the Puget Sound partnership.

      Such officers, except the director of fish and wildlife, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor.  The director of fish and wildlife shall be appointed by the fish and wildlife commission as prescribed by RCW 77.04.055.

Sec. 109.  RCW 42.17A.705 and 2010 c 204 s 902 are each amended to read as follows:

      For the purposes of RCW 42.17A.700, "executive state officer" includes:

      (1) The chief administrative law judge, the director of agriculture, the director of the department of services for the blind, the chief information officer of the office of the chief information officer, the director of the state system of community and technical colleges, the director of commerce, the director of the consolidated technology services agency, the secretary of corrections, the director of early learning, the director of ecology, the commissioner of employment security, the chair of the energy facility site evaluation council, the director of enterprise services, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, ((the director of general administration,)) the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the executive secretary of the horse racing commission, the human resources director, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, ((the director of the department of information services,)) the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, ((the director of personnel,)) the executive director of the public disclosure commission, the executive director of the Puget Sound partnership, the director of the recreation and conservation office, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, and each district and each campus president of each state community college;

      (2) Each professional staff member of the office of the governor;

      (3) Each professional staff member of the legislature; and

      (4) Central Washington University board of trustees, the boards of trustees of each community college and each technical college, each member of the state board for community and technical colleges, state convention and trade center board of directors, Eastern Washington University board of trustees, Washington economic development finance authority, Washington energy northwest executive board, The Evergreen State College board of trustees, executive ethics board, fish and wildlife commission, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, higher education coordinating board, higher education facilities authority, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, ((information services board,)) state investment board, commission on judicial conduct, legislative ethics board, life sciences discovery fund authority board of trustees, liquor control board, lottery commission, Pacific Northwest electric power and conservation planning council, parks and recreation commission, Washington personnel resources board, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public employees' benefits board, recreation and conservation funding board, salmon recovery funding board, shorelines hearings board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington State University board of regents, and Western Washington University board of trustees.

Sec. 110.  RCW 42.17.2401 and 2009 c 565 s 24 are each amended to read as follows:

      For the purposes of RCW 42.17.240, the term "executive state officer" includes:

      (1) The chief administrative law judge, the director of agriculture, the administrator of the Washington basic health plan, the director of the department of services for the blind, the chief information officer of the office of the chief information officer, the director of the state system of community and technical colleges, the director of commerce, the director of the consolidated technology services agency, the secretary of corrections, the director of early learning, the director of ecology, the commissioner of employment security, the chair of the energy facility site evaluation council, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of ((general administration)) enterprise services, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the executive secretary of the horse racing commission, the human resources director, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, ((the director of the department of information services,)) the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, ((the director of personnel,)) the executive director of the public disclosure commission, the executive director of the Puget Sound partnership, the director of the recreation and conservation office, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, and each district and each campus president of each state community college;

      (2) Each professional staff member of the office of the governor;

      (3) Each professional staff member of the legislature; and

      (4) Central Washington University board of trustees, the boards of trustees of each community college and each technical college, each member of the state board for community and technical colleges, state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, executive ethics board, forest practices appeals board, forest practices board, gambling commission, life sciences discovery fund authority board of trustees, Washington health care facilities authority, each member of the Washington health services commission, higher education coordinating board, higher education facilities authority, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, ((information services board,)) recreation and conservation funding board, state investment board, commission on judicial conduct, legislative ethics board, liquor control board, lottery commission, marine oversight board, Pacific Northwest electric power and conservation planning council, parks and recreation commission, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearings board, public employees' benefits board, salmon recovery funding board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington personnel resources board, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and fish and wildlife commission.

NEW SECTION.  Sec. 111.  Section 109 of this act takes effect January 1, 2012.

NEW SECTION.  Sec. 112.  Section 110 of this act expires January 1, 2012.

PART II
POWERS AND DUTIES TRANSFERRED FROM THE DEPARTMENT
OF GENERAL ADMINISTRATION

Sec. 201.  RCW 43.19.011 and 1999 c 229 s 2 are each amended to read as follows:

      (1) The director of ((general administration)) enterprise services shall supervise and administer the activities of the department of ((general administration)) enterprise services and shall advise the governor and the legislature with respect to matters under the jurisdiction of the department.

      (2) In addition to other powers and duties granted to the director, the director shall have the following powers and duties:

      (a) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

      (b) Accept and expend gifts and grants that are related to the purposes of this chapter, whether such grants be of federal or other funds;

      (c) Appoint ((a)) deputy ((director)) and ((such)) assistant directors and such other special assistants as may be needed to administer the department.  These employees are exempt from the provisions of chapter 41.06 RCW;

      (d) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter;

      (e) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director shall be responsible for the official acts of the officers and employees of the department; ((and))

      (f) Apply for grants from public and private entities, and receive and administer any grant funding received for the purpose and intent of this chapter; and
      (g) Perform other duties as are necessary and consistent with law.

      (3) The director may establish additional advisory groups as may be necessary to carry out the purposes of this chapter.

      (((4) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances.  Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department.  The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.))

Sec. 202.  RCW 43.19.025 and 2002 c 332 s 3 are each amended to read as follows:

      The ((general administration)) enterprise services account is created in the custody of the state treasurer and shall be used for all activities previously budgeted and accounted for in the following internal service funds:  The motor transport account, the ((general administration)) enterprise services management fund, the ((general administration)) enterprise services facilities and services revolving fund, the central stores revolving fund, the surplus property purchase revolving fund, and the energy efficiency services account.  Only the director or the director's designee may authorize expenditures from the account.  The account is subject to the allotment procedures under chapter 43.88 RCW.

Sec. 203.  RCW 43.19.035 and 2005 c 16 s 1 are each amended to read as follows:

      (1) The commemorative works account is created in the custody of the state treasurer and shall be used by the department of ((general administration)) enterprise services for the ongoing care, maintenance, and repair of commemorative works on the state capitol grounds.  Only the director or the director's designee may authorize expenditures from the account.  The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not necessary for expenditures.

      (2) For purposes of this section, "state capitol grounds" means buildings and land owned by the state and otherwise designated as state capitol grounds, including the west capitol campus, the east capitol campus, the north capitol campus, the Tumwater campus, the Lacey campus, Sylvester Park, Centennial Park, the Old Capitol Building, and Capitol Lake.

Sec. 204.  RCW 43.19.125 and 2007 c 520 s 6014 are each amended to read as follows:

      (1) The director of ((general administration, through the division of capitol buildings,)) enterprise services shall have custody and control of the capitol buildings and grounds, supervise and direct proper care, heating, lighting and repairing thereof, and designate rooms in the capitol buildings to be occupied by various state officials.

      (2) During the 2007-2009 biennium, responsibility for development of the "Wheeler block" on the capitol campus as authorized in section 6013, chapter 520, Laws of 2007 shall be transferred from the department of general administration to the department of information services.  ((The department of general administration and the department of information services shall develop a joint operating agreement for the new facilities on the "Wheeler block" and provide copies of that agreement to the appropriate committees of the legislature by December 30, 2008.
      (3) During the 2007-2009 biennium, responsibility for development of the Pritchard building rehabilitation on the capitol campus as authorized in section 1090, chapter 520, Laws of 2007 shall be transferred from the department of general administration to the statute law committee.))

Sec. 205.  RCW 43.19.180 and 2009 c 549 s 5063 are each amended to read as follows:

      The director of ((general administration shall appoint and deputize an assistant director to be known as the state purchasing and material control director, who shall have charge and supervision of the division of purchasing.  In this capacity he or she)) enterprise services shall ensure that overall state purchasing and material control policy is implemented by state agencies, including educational institutions, within established time limits.

      ((With the approval of the director of general administration, he or she may appoint and employ such assistants and personnel as may be necessary to carry on the work of the division.))

Sec. 206.  RCW 43.19.185 and 1987 c 47 s 1 are each amended to read as follows:

      (1) The director ((of general administration through the state purchasing and material control director)) shall develop a system for state agencies and departments to use credit cards or similar devices to make purchases.  The director may contract to administer the credit cards.

      (2) The director ((of general administration through the state purchasing and material control director)) shall adopt rules for:

      (a) The distribution of the credit cards;

      (b) The authorization and control of the use of the credit cards;

      (c) The credit limits available on the credit cards;

      (d) Instructing users of gasoline credit cards to use self-service islands whenever possible;

      (e) Payments of the bills; and

      (f) Any other rule necessary to implement or administer the program under this section.

Sec. 207.  RCW 43.19.190 and 2002 c 200 s 3 are each amended to read as follows:

      The director ((of general administration, through the state purchasing and material control director,)) shall:

      (1) ((Establish and staff such administrative organizational units within the division of purchasing as may be necessary for effective administration of the provisions of RCW 43.19.190 through 43.19.1939)) Develop rules and standards governing the acquisition and disposition of goods and services;

      (2) ((Purchase all material, supplies, services, and equipment needed for the support, maintenance, and use of all state institutions, colleges, community colleges, technical colleges, college districts, and universities, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of state government, and the offices of all appointive officers of the state)) Enter into contracts on behalf of the state to carry out the following:  To purchase, lease, rent or otherwise acquire, dispose of, and maintain assets, licenses, purchased goods and services, client services, and personal services, or to delegate to other agencies and institutions of state government, under appropriate standards, the authority to purchase, lease, rent or otherwise acquire, dispose of, and maintain assets, licenses, purchased goods and services, client services, and personal services.  Agencies and institutions of state government are expressly prohibited from acquiring or disposing of such assets, licenses, purchased services, and personal services without such delegation of authority:  PROVIDED, That the provisions of RCW 43.19.190 through 43.19.1937 do not apply in any manner to the operation of the state legislature except as requested by the legislature:  PROVIDED, That any agency may purchase material, supplies, services, and equipment for which the agency has notified the purchasing and material control director that it is more cost-effective for the agency to make the purchase directly from the vendor: PROVIDED, That primary authority for the purchase of specialized equipment, instructional, and research material for their own use shall rest with the colleges, community colleges, and universities:  PROVIDED FURTHER, That universities operating hospitals and the ((state purchasing and material control)) director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, may make purchases for hospital operation by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations:  PROVIDED FURTHER, That primary authority for the purchase of materials, supplies, and equipment for resale to other than public agencies shall rest with the state agency concerned:  PROVIDED FURTHER, That authority to purchase services as included herein does not apply to personal services as defined in chapter 39.29 RCW, unless such organization specifically requests assistance from the ((division of purchasing)) department of enterprise services in obtaining personal services and resources are available within the ((division)) department to provide such assistance:  ((PROVIDED FURTHER, That the authority for the purchase of insurance and bonds shall rest with the risk manager under RCW 43.19.1935:))  PROVIDED FURTHER, That, except for the authority of the risk manager to purchase insurance and bonds, the director is not required to provide purchasing services for institutions of higher education that choose to exercise independent purchasing authority under RCW 28B.10.029:  PROVIDED FURTHER, That the authority to purchase interpreter services and interpreter brokerage services on behalf of limited-English speaking or sensory-impaired applicants and recipients of public assistance shall rest with the department of social and health services in consultation with the department;

      (3) Have authority to delegate to state agencies authorization to purchase or sell, which authorization shall specify restrictions as to dollar amount or to specific types of material, equipment, services, and supplies.  Acceptance of the purchasing authorization by a state agency does not relieve such agency from conformance with other sections of RCW 43.19.190 through 43.19.1939, or from policies established by the director.  Also, delegation of such authorization to a state agency, including an educational institution to which this section applies, to purchase or sell material, equipment, services, and supplies shall not be granted, or otherwise continued under a previous authorization, if such agency is not in substantial compliance with overall state purchasing and material control policies as established herein;

      (4) Contract for the testing of material, supplies, and equipment with public and private agencies as necessary and advisable to protect the interests of the state;

      (5) ((Prescribe the manner of inspecting all deliveries of supplies, materials, and equipment purchased through the division)) Develop statewide or interagency procurement policies, standards, and procedures;

      (6) ((Prescribe the manner in which supplies, materials, and equipment purchased through the division shall be delivered, stored, and distributed)) Provide direction concerning strategic planning goals and objectives related to state purchasing and contracts activities.  The director shall seek input from the legislature and the judiciary;

      (7) ((Provide for the maintenance of a catalogue library, manufacturers' and wholesalers' lists, and current market information)) Develop and implement a process for the resolution of appeals by:
      (a) Vendors concerning the conduct of an acquisition process by an agency or the department; or
      (b) A customer agency concerning the provision of services by the department or by other state providers;
      (8) Establish policies for the periodic review by the department of agency performance which may include but are not limited to analysis of:
      (a) Planning, management, purchasing control, and use of purchased services and personal services;
      (b) Training and education; and
      (c) Project management;

      (((8))) (9) Provide for a commodity classification system and may, in addition, provide for the adoption of standard specifications;

      (((9) Provide for the maintenance of inventory records of supplies, materials, and other property;))

      (10) Prepare rules and regulations governing the relationship and procedures between the ((division of purchasing)) department and state agencies and vendors;

      (11) Publish procedures and guidelines for compliance by all state agencies, including those educational institutions to which this section applies, which implement overall state purchasing and material control policies;

      (12) Advise state agencies, including educational institutions, regarding compliance with established purchasing and material control policies under existing statutes.

Sec. 208.  RCW 43.19.1905 and 2009 c 486 s 10 are each amended to read as follows:

      (1) The director of ((general administration)) enterprise services shall establish overall state policy for compliance by all state agencies, including educational institutions, regarding the following purchasing and material control functions:

      (a) Development of a state commodity coding system((, including common stock numbers for items maintained in stores for reissue;
      (b) Determination where consolidations, closures, or additions of stores operated by state agencies and educational institutions should be initiated;
      (c) Institution of standard criteria for determination of when and where an item in the state supply system should be stocked;
      (d) Establishment of stock levels to be maintained in state stores, and formulation of standards for replenishment of stock;
      (e) Formulation of an overall distribution and redistribution system for stock items which establishes sources of supply support for all agencies, including interagency supply support;
      (f) Determination of what function data processing equipment, including remote terminals, shall perform in statewide purchasing and material control for improvement of service and promotion of economy;
      (g) Standardization of records and forms used statewide for supply system activities involving purchasing, receiving, inspecting, storing, requisitioning, and issuing functions, including a));
      (b) A standard notification form for state agencies to report cost- effective direct purchases, which shall at least identify the price of the goods as available through the ((division of purchasing)) department, the price of the goods as available from the alternative source, the total savings, and the signature of the notifying agency's director or the director's designee;

      (((h))) (c) Screening of supplies, material, and equipment excess to the requirements of one agency for overall state need before sale as surplus;

      (((i) Establishment of warehouse operation and storage standards to achieve uniform, effective, and economical stores operations;
      (j) Establishment of time limit standards for the issuing of material in store and for processing requisitions requiring purchase;
      (k) Formulation of criteria for))

(d) Determining when centralized rather than decentralized purchasing shall be used to obtain maximum benefit of volume buying of identical or similar items, including procurement from federal supply sources;

      (((l))) (e) Development of criteria for use of leased, rather than state owned, warehouse space based on relative cost and accessibility;

      (((m) Institution of standard criteria for purchase and placement of state furnished materials, carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or renovated state buildings;
      (n))) (f) Determination of how transportation costs incurred by the state for materials, supplies, services, and equipment can be reduced by improved freight and traffic coordination and control;

      (((o))) (g) Establishment of a formal certification program for state employees who are authorized to perform purchasing functions as agents for the state under the provisions of chapter 43.19 RCW;

      (((p))) (h) Development of performance measures for the reduction of total overall expense for material, supplies, equipment, and services used each biennium by the state;

      (((q))) (i) Establishment of a standard system for all state organizations to record and report dollar savings and cost avoidance which are attributable to the establishment and implementation of improved purchasing and material control procedures;

      (((r))) (j) Development of procedures for mutual and voluntary cooperation between state agencies, including educational institutions, and political subdivisions for exchange of purchasing and material control services;

      (((s))) (k) Resolution of all other purchasing and material matters which require the establishment of overall statewide policy for effective and economical supply management;

      (((t))) (l) Development of guidelines and criteria for the purchase of vehicles, high gas mileage vehicles, alternate vehicle fuels and systems, equipment, and materials that reduce overall energy-related costs and energy use by the state, including investigations into all opportunities to aggregate the purchasing of clean technologies by state and local governments, and including the requirement that new passenger vehicles purchased by the state meet the minimum standards for passenger automobile fuel economy established by the United States secretary of transportation pursuant to the energy policy and conservation act (15 U.S.C. Sec. 2002);

      (((u))) (m) Development of goals for state use of recycled or environmentally preferable products through specifications for products and services, processes for requests for proposals and requests for qualifications, contractor selection, and contract negotiations;

      (((v))) (n) Development of procurement policies and procedures, such as unbundled contracting and subcontracting, that encourage and facilitate the purchase of products and services by state agencies and institutions from Washington small businesses to the maximum extent practicable and consistent with international trade agreement commitments;

      (((w))) (o) Development of food procurement procedures and materials that encourage and facilitate the purchase of Washington grown food by state agencies and institutions to the maximum extent practicable and consistent with international trade agreement commitments; and

      (((x))) (p) Development of policies requiring all food contracts to include a plan to maximize to the extent practicable and consistent with international trade agreement commitments the availability of Washington grown food purchased through the contract.

      (2) ((The department of general administration shall convene a working group including representatives of the office of financial management, the department of information services, and the state printer.  The purpose of the working group is to work collaboratively to develop common policies and procedures that encourage and facilitate state government purchases from Washington small businesses, as required in subsection (1)(v) of this section, and in RCW 39.29.065, 43.78.110, and 43.105.041(1)(j).  By December 1, 2009, these central services agencies shall jointly provide a written progress report to the governor and legislature on actions taken and planned, barriers identified, and solutions recommended to reach this goal.
      (3))) The definitions in this subsection apply throughout this section and RCW 43.19.1908.

      (a) "Common vendor registration and bid notification system" has the definition in RCW 39.29.006.

      (b) "Small business" has the definition in RCW 39.29.006.

      (c) "Washington grown" has the definition in RCW 15.64.060.

Sec. 209.  RCW 43.19.19052 and 1998 c 245 s 54 are each amended to read as follows:

      Initial policy determinations for the functions described in RCW 43.19.1905 shall be developed and published within the 1975-77 biennium by the director for guidance and compliance by all state agencies, including educational institutions, involved in purchasing and material control.  Modifications to these initial supply management policies established during the 1975-77 biennium shall be instituted by the director in future biennia as required to maintain an efficient and up- to-date state supply management system.

      It is the intention of the legislature that measurable improvements in the effectiveness and economy of supply management in state government shall be achieved during the 1975-77 biennium, and each biennium thereafter.  All agencies, departments, offices, divisions, boards, and commissions and educational, correctional, and other types of institutions are required to cooperate with and support the development and implementation of improved efficiency and economy in purchasing and material control.  To effectuate this legislative intention, the director((, through the state purchasing and material control director, shall have)) has the authority to direct and require the submittal of data from all state organizations concerning purchasing and material control matters.

Sec. 210.  RCW 43.19.1906 and 2008 c 215 s 5 are each amended to read as follows:

      Insofar as practicable, all purchases and sales shall be based on competitive bids, and a formal sealed, electronic, or web-based bid procedure, subject to RCW 43.19.1911, shall be used as standard procedure for all purchases and contracts for purchases and sales executed by the ((state purchasing and material control)) director and under the powers granted by RCW 43.19.190 through 43.19.1939.  This requirement also applies to purchases and contracts for purchases and sales executed by agencies, including educational institutions, under delegated authority granted in accordance with provisions of RCW 43.19.190 or under RCW 28B.10.029.  However, formal sealed, electronic, or web-based competitive bidding is not necessary for:

      (1) Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately;

      (2) ((Purchases not exceeding thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management:  PROVIDED, That the state director of general administration shall establish procedures to assure that purchases made by or on behalf of the various state agencies shall not be made so as to avoid the thirty- five thousand dollar bid limitation, or subsequent bid limitations as calculated by the office of financial management:  PROVIDED FURTHER, That the state purchasing and material control director is authorized to reduce the formal sealed bid limits of thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, to a lower dollar amount for purchases by individual state agencies if considered necessary to maintain full disclosure of competitive procurement or otherwise to achieve overall state efficiency and economy in purchasing and material control.  Quotations from three thousand dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both.  The agency shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work.  Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry.  A record of competition for all such purchases from three thousand dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be documented for audit purposes.  Purchases up to three thousand dollars may be made without competitive bids based on buyer experience and knowledge of the market in achieving maximum quality at minimum cost)) Direct buy purchases and informal competitive bidding, as designated by the director of enterprise services.  The director of enterprise services shall establish policies annually to define criteria and dollar thresholds for direct buy purchases and informal competitive bidding limits. These criteria may be adjusted to accommodate special market conditions and to promote market diversity for the benefit of the citizens of the state of Washington;

      (3) Purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation;

      (4) Purchases of insurance and bonds by the risk management ((division)) office under RCW 43.41.310 (as recodified by this act);

      (5) Purchases and contracts for vocational rehabilitation clients of the department of social and health services:  PROVIDED, That this exemption is effective only when the ((state purchasing and material control)) director of enterprise services, after consultation with the director of the division of vocational rehabilitation and appropriate department of social and health services procurement personnel, declares that such purchases may be best executed through direct negotiation with one or more suppliers in order to expeditiously meet the special needs of the state's vocational rehabilitation clients;

      (6) Purchases by universities for hospital operation or biomedical teaching or research purposes and by the ((state purchasing and material control)) director of enterprise services, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations;

      (7) Purchases for resale by institutions of higher education to other than public agencies when such purchases are for the express purpose of supporting instructional programs and may best be executed through direct negotiation with one or more suppliers in order to meet the special needs of the institution;

      (8) Purchases by institutions of higher education ((not exceeding thirty-five thousand dollars:  PROVIDED, That for purchases between three thousand dollars and thirty-five thousand dollars quotations shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both.  For purchases between three thousand dollars and thirty-five thousand dollars, each institution of higher education shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work.  A record of competition for all such purchases made from three thousand to thirty-five thousand dollars shall be documented for audit purposes)) under RCW 43.19.190(2), direct buy purchases, and informal competitive bidding, as designated by the director of enterprise services; and

      (9) Off-contract purchases of Washington grown food when such food is not available from Washington sources through an existing contract.  However, Washington grown food purchased under this subsection must be of an equivalent or better quality than similar food available through the contract and be able to be paid from the agency's existing budget.  This requirement also applies to purchases and contracts for purchases executed by state agencies, including institutions of higher education, under delegated authority granted in accordance with RCW 43.19.190 or under RCW 28B.10.029((; and
      (10) Negotiation of a contract by the department of transportation, valid until June 30, 2001, with registered tow truck operators to provide roving service patrols in one or more Washington state patrol tow zones whereby those registered tow truck operators wishing to participate would cooperatively, with the department of transportation, develop a demonstration project upon terms and conditions negotiated by the parties)).

      Beginning on July 1, 1995, and on July 1st of each succeeding odd- numbered year, the dollar limits specified in this section shall be adjusted as follows:  The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium.  Such amounts shall be rounded to the nearest one hundred dollars.  ((However, the three thousand dollar figure in subsections (2) and (8) of this section may not be adjusted to exceed five thousand dollars.))

      As used in this section, "Washington grown" has the definition in RCW 15.64.060.

Sec. 211.  RCW 43.19.1908 and 2009 c 486 s 11 are each amended to read as follows:

      Competitive bidding required by RCW 43.19.190 through 43.19.1939 shall be solicited by public notice, by posting of the contract opportunity on the state's common vendor registration and bid notification system, and through the sending of notices by mail, electronic transmission, or other means to bidders on the appropriate list of bidders who shall have qualified by application to the ((division of purchasing)) department.  Bids may be solicited by the ((purchasing division)) department from any source thought to be of advantage to the state.  All bids shall be in written or electronic form and conform to rules of the ((division of purchasing)) department.

Sec. 212.  RCW 43.19.1913 and 1965 c 8 s 43.19.1913 are each amended to read as follows:

      The ((division of purchasing)) department may reject the bid of any bidder who has failed to perform satisfactorily a previous contract with the state.

Sec. 213.  RCW 43.19.1915 and 2009 c 549 s 5064 are each amended to read as follows:

      When any bid has been accepted, the ((division of purchasing)) department may require of the successful bidder a bond payable to the state in such amount with such surety or sureties as determined by the ((division of purchasing)) department, conditioned that he or she will fully, faithfully and accurately execute the terms of the contract into which he or she has entered.  The bond shall be filed in the ((office of the division of purchasing)) department.  Bidders who regularly do business with the state shall be permitted to file with the ((division of purchasing)) department an annual bid bond in an amount established by the ((division)) department and such annual bid bond shall be acceptable as surety in lieu of furnishing surety with individual bids.

Sec. 214.  RCW 43.19.1917 and 1979 c 88 s 3 are each amended to read as follows:

      All state agencies, including educational institutions, shall maintain a perpetual record of ownership of state owned equipment, which shall be available for the inspection and check of those officers who are charged by law with the responsibility for auditing the records and accounts of the state organizations owning the equipment, or to such other special investigators and others as the governor may direct.  In addition, these records shall be made available to members of the legislature, the legislative committees, and legislative staff on request.

      All state agencies, including educational institutions, shall account to the office of financial management upon request for state equipment owned by, assigned to, or otherwise possessed by them and maintain such records as the office of financial management deems necessary for proper accountability therefor.  The office of financial management shall publish a procedural directive for compliance by all state agencies, including educational institutions, which establishes a standard method of maintaining records for state owned equipment, including the use of standard state forms.  This published directive also shall include instructions for reporting to the ((division of purchasing)) department all state equipment which is excess to the needs of state organizations owning such equipment.  The term "state equipment" means all items of machines, tools, furniture, or furnishings other than expendable supplies and materials as defined by the office of financial management.

Sec. 215.  RCW 43.19.1919 and 2000 c 183 s 1 are each amended to read as follows:

      The ((division of purchasing)) department shall sell or exchange personal property belonging to the state for which the agency, office, department, or educational institution having custody thereof has no further use, at public or private sale, and cause the moneys realized from the sale of any such property to be paid into the fund from which such property was purchased or, if such fund no longer exists, into the state general fund.  This requirement is subject to the following exceptions and limitations:

      (1) This section does not apply to property under RCW 27.53.045, 28A.335.180, or 43.19.1920;

      (2) Sales of capital assets may be made by the ((division of purchasing)) department and a credit established ((in central stores)) for future purchases of capital items as provided for in RCW 43.19.190 through 43.19.1939;

      (3) Personal property, excess to a state agency, including educational institutions, shall not be sold or disposed of prior to reasonable efforts by the ((division of purchasing)) department to determine if other state agencies have a requirement for such personal property.  Such determination shall follow sufficient notice to all state agencies to allow adequate time for them to make their needs known.  Surplus items may be disposed of without prior notification to state agencies if it is determined by the director ((of general administration)) to be in the best interest of the state.  The ((division of purchasing)) department shall maintain a record of disposed surplus property, including date and method of disposal, identity of any recipient, and approximate value of the property;

      (4) This section does not apply to personal property acquired by a state organization under federal grants and contracts if in conflict with special title provisions contained in such grants or contracts;

      (5) A state agency having a surplus personal property asset with a fair market value of less than five hundred dollars may transfer the asset to another state agency without charging fair market value.  A state agency conducting this action must maintain adequate records to comply with agency inventory procedures and state audit requirements.

Sec. 216.  RCW 43.19.19191 and 1999 c 186 s 1 are each amended to read as follows:

      (1) In addition to disposing of property under RCW 28A.335.180, 39.33.010, 43.19.1919, and 43.19.1920, state-owned, surplus computers and computer-related equipment may be donated to any school district or educational service district under the guidelines and distribution standards established pursuant to subsection (2) of this section.

      (2) ((By September 1, 1999,)) The department and office of the superintendent of public instruction shall jointly develop guidelines and distribution standards for the donation of state-owned, surplus computers and computer-related equipment to school districts and educational service districts.  The guidelines and distribution standards shall include considerations for quality, school-district needs, and accountability, and shall give priority to meeting the computer-related needs of children with disabilities, including those disabilities necessitating the portability of laptop computers.  The guidelines must be updated as needed.

Sec. 217.  RCW 43.19.1920 and 1995 c 399 s 63 are each amended to read as follows:

      The ((division of purchasing)) department may donate state-owned, surplus, tangible personal property to shelters that are:  Participants in the department of ((community, trade, and economic development's)) commerce's emergency shelter assistance program; and operated by nonprofit organizations or units of local government providing emergency or transitional housing for homeless persons.  A donation may be made only if all of the following conditions have been met:

      (1) The ((division of purchasing)) department has made reasonable efforts to determine if any state agency has a requirement for such personal property and no such agency has been identified.  Such determination shall follow sufficient notice to all state agencies to allow adequate time for them to make their needs known;

      (2) The agency owning the property has authorized the ((division of purchasing)) department to donate the property in accordance with this section;

      (3) The nature and quantity of the property in question is directly germane to the needs of the homeless persons served by the shelter and the purpose for which the shelter exists and the shelter agrees to use the property for such needs and purposes; and

      (4) The director ((of general administration)) has determined that the donation of such property is in the best interest of the state.

Sec. 218.  RCW 43.19.19201 and 1995 c 399 s 64 are each amended to read as follows:

      (1) The department ((of general administration)) shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510.  The inventory shall include the location, approximate size, and current zoning classification of the property.  The department ((of general administration)) shall provide a copy of the inventory to the department of ((community, trade, and economic development)) commerce by November 1, 1993, and every November 1 thereafter.

      (2) By November 1 of each year, beginning in 1994, the department ((of general administration)) shall purge the inventory of real property of sites that are no longer available for the development of affordable housing.  The department shall include an updated listing of real property that has become available since the last update.  As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 219.  RCW 43.19.1921 and 1979 c 151 s 100 are each amended to read as follows:

      The director ((of general administration, through the division of purchasing,)) shall:

      (1) Establish and maintain warehouses ((hereinafter referred to as "central stores")) for the centralized storage and distribution of such supplies, equipment, and other items of common use in order to effect economies in the purchase of supplies and equipment for state agencies.  To provide ((central stores)) warehouse facilities the ((division of purchasing)) department may, by arrangement with the state agencies, utilize any surplus available state owned space, and may acquire other needed warehouse facilities by lease or purchase of the necessary premises;

      (2) Provide for the central salvage((, maintenance, repair, and servicing)) of equipment, furniture, or furnishings used by state agencies, and also by means of such a service provide an equipment pool for effecting sales and exchanges of surplus and unused property by and between state agencies.  ((Funds derived from the sale and exchange of property shall be placed to the account of the appropriate state agency on the central stores accounts but such funds may not be expended through central stores without prior approval of the office of financial management.))

Sec. 220.  RCW 43.19.1932 and 1989 c 185 s 2 are each amended to read as follows:

      The department of corrections shall be exempt from the following provisions of this chapter in respect to goods or services purchased or sold pursuant to the operation of correctional industries:  RCW 43.19.180, 43.19.190, 43.19.1901, 43.19.1905, 43.19.1906, 43.19.1908, 43.19.1911, 43.19.1913, 43.19.1915, 43.19.1917, 43.19.1919, 43.19.1921, ((43.19.1925,)) and 43.19.200.

Sec. 221.  RCW 43.19.200 and 2009 c 549 s 5066 are each amended to read as follows:

      (1) The governing authorities of the state's educational institutions, the elective state officers, the supreme court, the court of appeals, the administrative and other departments of the state government, and all appointive officers of the state, shall prepare estimates of the supplies required for the proper conduct and maintenance of their respective institutions, offices, and departments, covering periods to be fixed by the director, and forward them to the director in accordance with his or her directions.  No such authorities, officers, or departments, or any officer or employee thereof, may purchase any article for the use of their institutions, offices, or departments, except in case of emergency purchases as provided in subsection (2) of this section.

      (2) The authorities, officers, and departments enumerated in subsection (1) of this section may make emergency purchases in response to unforeseen circumstances beyond the control of the agency which present a real, immediate, and extreme threat to the proper performance of essential functions or which may reasonably be expected to result in excessive loss or damage to property, bodily injury, or loss of life.  When an emergency purchase is made, the agency head shall submit written notification of the purchase, within three days of the purchase, to the director ((of general administration)).  This notification shall contain a description of the purchase, description of the emergency and the circumstances leading up to the emergency, and an explanation of why the circumstances required an emergency purchase.

      (3) Purchases made for the state's educational institutions, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of the state government, and the offices of all appointive officers of the state, shall be paid for out of the moneys appropriated for supplies, material, and service of the respective institutions, offices, and departments.

      (4) The director ((of general administration)) shall submit, on an annual basis, the written notifications required by subsection (2) of this section to the director of financial management.

Sec. 222.  RCW 43.19.450 and 1994 c 264 s 15 are each amended to read as follows:

      The director ((of general administration)) shall appoint ((and deputize an assistant director to be known as the)) a supervisor of engineering and architecture ((who shall have charge and supervision of the division of engineering and architecture.  With the approval of the director, the supervisor may appoint and employ such assistants and personnel as may be necessary to carry out the work of the division)).

      ((No)) A person ((shall be)) is not eligible for appointment as supervisor of engineering and architecture unless he or she is licensed to practice the profession of engineering or the profession of architecture in the state of Washington and for the last five years prior to his or her appointment has been licensed to practice the profession of engineering or the profession of architecture.

      As used in this section, "state facilities" includes all state buildings, related structures, and appurtenances constructed for any elected state officials, institutions, departments, boards, commissions, colleges, community colleges, except the state universities, The Evergreen State College and regional universities.  "State facilities" does not include facilities owned by or used for operational purposes and constructed for the department of transportation, department of fish and wildlife, department of natural resources, or state parks and recreation commission.

      The director ((of general administration, through the division of engineering and architecture)) or the director's designee shall:

      (1) Prepare cost estimates and technical information to accompany the capital budget and prepare or contract for plans and specifications for new construction and major repairs and alterations to state facilities.

      (2) Contract for professional architectural, engineering, and related services for the design of new state facilities and major repair or alterations to existing state facilities.

      (3) Provide contract administration for new construction and the repair and alteration of existing state facilities.

      (4) In accordance with the public works laws, contract on behalf of the state for the new construction and major repair or alteration of state facilities.

      The director may delegate any and all of the functions under subsections (1) through (4) of this section to any agency upon such terms and conditions as considered advisable.

      ((The director may delegate the authority granted to the department under RCW 39.04.150 to any agency upon such terms as considered advisable.))

Sec. 223.  RCW 43.19.455 and 2005 c 36 s 6 are each amended to read as follows:

      Except as provided under RCW 43.17.210, the Washington state arts commission shall determine the amount to be made available for the purchase of art under RCW 43.17.200 in consultation with the director ((of general administration)), and payments therefor shall be made in accordance with law.  The designation of projects and sites, selection, contracting, purchase, commissioning, reviewing of design, execution and placement, acceptance, maintenance, and sale, exchange, or disposition of works of art shall be the responsibility of the Washington state arts commission in consultation with the director ((of general administration)).

Sec. 224.  RCW 43.19.500 and 2005 c 330 s 6 are each amended to read as follows:

      The ((general administration)) enterprise services account shall be used by the department ((of general administration)) for the payment of certain costs, expenses, and charges, as specified in this section, incurred by it in the operation and administration of the department in the rendering of services, the furnishing or supplying of equipment, supplies and materials, and for providing or allocating facilities, including the operation, maintenance, rehabilitation, or furnishings thereof to other agencies, offices, departments, activities, and other entities enumerated in RCW 43.01.090 and including the rendering of services in acquiring real estate under RCW 43.82.010 and the operation and maintenance of public and historic facilities at the state capitol, as defined in RCW 79.24.710.  The department shall treat the rendering of services in acquiring real estate and the operation and maintenance of state capitol public and historic facilities as separate operating entities within the account for financial accounting and control.

      The schedule of services, facilities, equipment, supplies, materials, maintenance, rehabilitation, furnishings, operations, and administration to be so financed and recovered shall be determined jointly by the director ((of general administration)) and the director of financial management, in equitable amounts which, together with any other income or appropriation, will provide the department ((of general administration)) with funds to meet its anticipated expenditures during any allotment period.

      The director ((of general administration)) may adopt rules governing the provisions of RCW 43.01.090 and this section and the relationships and procedures between the department ((of general administration)) and such other entities.

Sec. 225.  RCW 43.19.501 and 2009 c 564 s 932 are each amended to read as follows:

      The Thurston county capital facilities account is created in the state treasury.  The account is subject to the appropriation and allotment procedures under chapter 43.88 RCW.  Moneys in the account may be expended for capital projects in facilities owned and managed by the department ((of general administration)) in Thurston county.  For the 2007-2009 biennium, moneys in the account may be used for predesign identified in section 1037, chapter 328, Laws of 2008.

      During the 2009-2011 fiscal biennium, the legislature may transfer from the Thurston county capital facilities account to the state general fund such amounts as reflect the excess fund balance of the account.

Sec. 226.  RCW 43.19.530 and 2005 c 204 s 2 are each amended to read as follows:

      The state agencies and departments are hereby authorized to purchase products and/or services manufactured or provided by((:
      (1))) community rehabilitation programs of the department of social and health services((; and
      (2) Until December 31, 2009, businesses owned and operated by persons with disabilities)).

      Such purchases shall be at the fair market price of such products and services as determined by the ((division of purchasing of the)) department of ((general administration)) enterprise services.  To determine the fair market price the ((division)) department shall use the last comparable bid on the products and/or services or in the alternative the last price paid for the products and/or services.  The increased cost of labor, materials, and other documented costs since the last comparable bid or the last price paid are additional cost factors which shall be considered in determining fair market price.  Upon the establishment of the fair market price as provided for in this section the ((division)) department is hereby empowered to negotiate directly for the purchase of products or services with officials in charge of the community rehabilitation programs of the department of social and health services ((and, until December 31, 2007, businesses owned and operated by persons with disabilities)).

Sec. 227.  RCW 43.19.534 and 2009 c 470 s 717 are each amended to read as follows:

      (1) State agencies, the legislature, and departments shall purchase for their use all goods and services required by the legislature, agencies, or departments that are produced or provided in whole or in part from class II inmate work programs operated by the department of corrections through state contract.  These goods and services shall not be purchased from any other source unless, upon application by the department or agency:  (a) The department ((of general administration)) finds that the articles or products do not meet the reasonable requirements of the agency or department, (b) are not of equal or better quality, or (c) the price of the product or service is higher than that produced by the private sector.  However, the criteria contained in (a), (b), and (c) of this ((section)) subsection for purchasing goods and services from sources other than correctional industries do not apply to goods and services produced by correctional industries that primarily replace goods manufactured or services obtained from outside the state.  The department of corrections and department ((of general administration)) shall adopt administrative rules that implement this section.

      (2) During the 2009-2011 fiscal biennium, and in conformance with section 223(11), chapter 470, Laws of 2009, this section does not apply to the purchase of uniforms by the Washington state ferries.

Sec. 228.  RCW 43.19.538 and 1991 c 297 s 5 are each amended to read as follows:

      (1) The director ((of general administration, through the state purchasing director,)) shall develop specifications and adopt rules for the purchase of products which will provide for preferential purchase of products containing recycled material by:

      (a) The use of a weighting factor determined by the amount of recycled material in a product, where appropriate and known in advance to potential bidders, to determine the lowest responsible bidder.  The actual dollars bid shall be the contracted amount.  If the department determines, according to criteria established by rule that the use of this weighting factor does not encourage the use of more recycled material, the department shall consider and award bids without regard to the weighting factor.  In making this determination, the department shall consider but not be limited to such factors as adequate competition, economics or environmental constraints, quality, and availability.

      (b) Requiring a written statement of the percentage range of recycled content from the bidder providing products containing recycled [material].  The range may be stated in five percent increments.

      (2) The director shall develop a directory of businesses that supply products containing significant quantities of recycled materials.  This directory may be combined with and made accessible through the database of recycled content products to be developed under RCW 43.19A.060.

      (3) The director shall encourage all parties using the state purchasing office to purchase products containing recycled materials.

      (4) The rules, specifications, and bid evaluation shall be consistent with recycled content standards adopted under RCW 43.19A.020.

Sec. 229.  RCW 43.19.539 and 2006 c 183 s 36 are each amended to read as follows:

      (1) The department ((of general administration)) shall establish purchasing and procurement policies that establish a preference for electronic products that meet environmental performance standards relating to the reduction or elimination of hazardous materials.

      (2) The department ((of general administration)) shall ensure that their surplus electronic products, other than those sold individually to private citizens, are managed only by registered transporters and by processors meeting the requirements of RCW 70.95N.250 ((and section 26 of this act)).

      (3) The department ((of general administration)) shall ensure that their surplus electronic products are directed to legal secondary materials markets by requiring a chain of custody record that documents to whom the products were initially delivered through to the end use manufacturer.

Sec. 230.  RCW 43.19.560 and 1983 c 187 s 3 are each amended to read as follows:

      As used in RCW 43.19.565 through 43.19.635, 43.41.130 and 43.41.140, the following definitions shall apply:

      (1) "Passenger motor vehicle" means any sedan, station wagon, bus, or light truck which is designed for carrying ten passengers or less and is used primarily for the transportation of persons;

      (2) "State agency" shall include any state office, agency, commission, department, or institution financed in whole or in part from funds appropriated by the legislature.  It shall also include the Washington state school director's association ((and the state printer)), but it shall not include (a) the state supreme court or any agency of the judicial branch or (b) the legislature or any of its statutory, standing, special, or interim committees, other than at the option of the judicial or legislative agency or committee concerned;

      (3) "Employee commuting" shall mean travel by a state officer or employee to or from his or her official residence or other domicile to or from his or her official duty station or other place of work;

      (4) "Motor vehicle transportation services" shall include but not be limited to the furnishing of motor vehicles for the transportation of persons or property, with or without drivers, and may also include furnishing of maintenance, storage, and other support services to state agencies for the conduct of official state business.

Sec. 231.  RCW 43.19.565 and 2005 c 214 s 1 are each amended to read as follows:

      The department ((of general administration)) shall establish a motor vehicle transportation service which is hereby empowered to:

      (1) Provide suitable motor vehicle transportation services to ((any)) state ((agency)) agencies on either a temporary or permanent basis ((upon requisition from a state agency)) and upon such demonstration of need as the department may require;

      (2) Provide motor pools for the use of state agencies located in the Olympia area and such additional motor pools at other locations in the state as may be necessary to provide economic, efficient, and effective motor vehicle transportation services to state agencies.  Such additional motor pools may be under either the direct control of the department or under the supervision of another state agency by agreement with the department;

      (3) Establish an equitable schedule of rental and mileage charges to agencies for motor vehicle transportation services furnished which shall be designed to provide funds to ((cover replacement of vehicles, the purchase of additional vehicles, and to)) recover the actual total costs of motor pool operations including but not limited to vehicle operation expense, depreciation expense, overhead, and nonrecoverable collision or other damage to vehicles; and

      (4) Establish guidelines, procedures, and standards for fleet operations that other state agencies and institutions of higher education may adopt.  The guidelines, procedures, and standards shall be consistent with and carry out the objectives of any general policies adopted by the office of financial management under RCW 43.41.130.

Unless otherwise determined by the director after consultation with the office of financial management, vehicles owned and managed by the department of transportation, the department of natural resources, and the Washington state patrol are exempt from the requirements of subsections (1), (2), and (4) of this section.

Sec. 232.  RCW 43.19.585 and 1975 1st ex.s. c 167 s 7 are each amended to read as follows:

      The director ((of general administration shall appoint a supervisor of motor transport, who)) or the director's designee shall have general charge and supervision of state motor pools and motor vehicle transportation services under departmental administration and control.  ((The appointment of all personnel, except the supervisor, shall be made pursuant to chapter 41.06 RCW, the state civil service law, as now or hereafter amended.
      With the approval of)) The director((, the supervisor shall (1) appoint and employ such assistants and personnel as may be necessary, (2))) or the director's designee shall (1) acquire by purchase or otherwise a sufficient number of motor vehicles to fulfill state agency needs for motor vehicle transportation service, (((3))) (2) provide for necessary ((storage,)) upkeep((,)) and repair, and (((4))) (3) provide for servicing motor pool vehicles with fuel, lubricants, and other operating requirements.

Sec. 233.  RCW 43.19.600 and 2009 c 549 s 5068 are each amended to read as follows:

      (1) ((On or after July 1, 1975,)) Any passenger motor vehicles currently owned or hereafter acquired by any state agency((, except vehicles acquired from federal granted funds and over which the federal government retains jurisdiction and control, may)) shall be purchased by or transferred to the department ((of general administration with the consent of the state agency concerned)).  The director ((of general administration)) may accept vehicles subject to the provisions of RCW 43.19.560 through 43.19.630, 43.41.130 and 43.41.140 prior to July 1, 1975, if he or she deems it expedient to accomplish an orderly transition.

      (2) The department, in cooperation with the office of financial management, shall study and ascertain current and prospective needs of state agencies for passenger motor vehicles and shall ((recommend)) direct the transfer to a state motor pool or other appropriate disposition of any vehicle found not to be required by a state agency.

      (3) The department shall direct the transfer of passenger motor vehicles from a state agency to a state motor pool or other disposition as appropriate, based on a study under subsection (2) of this section, ((or after a public hearing held by the department,)) if a finding is made based on ((testimony and)) data therein submitted that the economy, efficiency, or effectiveness of state government would be improved by such a transfer or other disposition of passenger motor vehicles.  Any dispute over the accuracy of ((testimony and)) data submitted as to the benefits in state governmental economy, efficiency, and effectiveness to be gained by such transfer shall be resolved by the ((governor or the governor's designee)) director and the director of financial management.  Unless otherwise determined by the director after consultation with the office of financial management, vehicles owned and managed by the department of transportation, the department of natural resources, and the Washington state patrol are exempt from the requirements of subsections (1) through (3) of this section.

Sec. 234.  RCW 43.19.610 and 1998 c 105 s 12 are each amended to read as follows:

      All moneys, funds, proceeds, and receipts as ((provided in RCW 43.19.615 and as may otherwise be)) provided by law shall be paid into the ((general administration)) enterprise services account.  Disbursements therefrom shall be made in accordance with the provisions of RCW 43.19.560 through 43.19.630, 43.41.130 and 43.41.140 as authorized by the director or a duly authorized representative and as may be provided by law.

Sec. 235.  RCW 43.19.620 and 2009 c 549 s 5069 are each amended to read as follows:

      The director ((of general administration, through the supervisor of motor transport,)) shall adopt((, promulgate,)) and enforce ((such regulations)) rules as may be deemed necessary to accomplish the purpose of RCW 43.19.560 through 43.19.630, 43.41.130, and 43.41.140.  ((Such regulations)) The rules, in addition to other matters, shall provide authority for any agency director or his or her delegate to approve the use on official state business of personally owned or commercially owned rental passenger motor vehicles.  Before such an authorization is made, it must first be reasonably determined that state owned passenger vehicles or other suitable transportation is not available at the time or location required or that the use of such other transportation would not be conducive to the economical, efficient, and effective conduct of business.

      ((Such regulations)) The rules shall be consistent with and shall carry out the objectives of the general policies and guidelines adopted by the office of financial management pursuant to RCW 43.41.130.

Sec. 236.  RCW 43.19.635 and 2009 c 549 s 5071 are each amended to read as follows:

      (1) The governor, acting through the department ((of general administration)) and any other appropriate agency or agencies as he or she may direct, is empowered to utilize all reasonable means for detecting the unauthorized use of state owned motor vehicles, including the execution of agreements with the state patrol for compliance enforcement.  Whenever such illegal use is discovered which involves a state employee, the employing agency shall proceed as provided by law to establish the amount, extent, and dollar value of any such use, including an opportunity for notice and hearing for the employee involved.  When such illegal use is so established, the agency shall assess its full cost of any mileage illegally used and shall recover such amounts by deductions from salary or allowances due to be paid to the offending official or employee by other means.  Recovery of costs by the state under this subsection shall not preclude disciplinary or other action by the appropriate appointing authority or employing agency under subsection (2) of this section.

      (2) Any ((wilful)) willful and knowing violation of any provision of RCW 43.19.560 through 43.19.620, 43.41.130 and 43.41.140 shall subject the state official or employee committing such violation to disciplinary action by the appropriate appointing or employing agency.  Such disciplinary action may include, but shall not be limited to, suspension without pay, or termination of employment in the case of repeated violations.

      (3) Any casual or inadvertent violation of RCW 43.19.560 through 43.19.620, 43.41.130 and 43.41.140 may subject the state official or employee committing such violation to disciplinary action by the appropriate appointing authority or employing agency.  Such disciplinary action may include, but need not be limited to, suspension without pay.

Sec. 237.  RCW 43.19.646 and 2006 c 338 s 12 are each amended to read as follows:

      (1) The department ((of general administration)) must assist state agencies seeking to meet the biodiesel fuel requirements in RCW 43.19.642 by coordinating the purchase and delivery of biodiesel if requested by any state agency.  The department may use long‑term contracts of up to ten years, when purchasing from in-state suppliers who use predominantly in-state feedstock, to secure a sufficient and stable supply of biodiesel for use by state agencies.

      (2) The department shall compile and analyze the reports submitted under RCW 43.19.642(((4))) (3) and report in an electronic format its findings and recommendations to the governor and committees of the legislature with responsibility for energy issues, within sixty days from the end of each reporting period.  The governor shall consider these reports in determining whether to temporarily suspend minimum renewable fuel content requirements as authorized under RCW 19.112.160.

Sec. 238.  RCW 43.19.663 and 2002 c 285 s 4 are each amended to read as follows:

      (1) The department ((of general administration)), in cooperation with public agencies, shall investigate opportunities to aggregate the purchase of clean technologies with other public agencies to determine whether or not combined purchasing can reduce the unit cost of clean technologies.

      (2) State agencies that are retail electric customers shall investigate opportunities to aggregate the purchase of electricity produced from generation resources that are fueled by wind or solar energy for their facilities located within a single utility's service area, to determine whether or not combined purchasing can reduce the unit cost of those resources.

      (3) No public agency is required under this section to purchase clean technologies at prohibitive costs.

      (4)(a) "Electric utility" shall have the same meaning as provided under RCW 19.29A.010.

      (b) "Clean technology" includes, but may not be limited to, alternative fueled hybrid-electric and fuel cell vehicles, and distributive power generation.

      (c) "Distributive power generation" means the generation of electricity from an integrated or stand-alone power plant that generates electricity from wind energy, solar energy, or fuel cells.

      (d) "Retail electric customer" shall have the same meaning as provided under RCW 19.29A.010.

      (e) "Facility" means any building owned or leased by a public agency.

Sec. 239.  RCW 43.19.685 and 1982 c 48 s 4 are each amended to read as follows:

      The director ((of general administration)) shall develop lease covenants, conditions, and terms which:

      (1) Obligate the lessor to conduct or have conducted a walk-through survey of the leased premises;

      (2) Obligate the lessor to implement identified energy conservation maintenance and operating procedures upon completion of the walk- through survey; and

      (3) Obligate the lessor to undertake technical assistance studies and subsequent acquisition and installation of energy conservation measures if the director ((of general administration)), in accordance with rules adopted by the department, determines that these studies and measures will both conserve energy and can be accomplished with a state funding contribution limited to the savings which would result in utility expenses during the term of the lease.

      These lease covenants, conditions, and terms shall be incorporated into all specified new, renewed, and renegotiated leases executed on or after January 1, 1983.  This section applies to all leases under which state occupancy is at least half of the facility space and includes an area greater than three thousand square feet.

Sec. 240.  RCW 43.19.702 and 1983 c 183 s 2 are each amended to read as follows:

      The director ((of general administration)) shall compile a list of the statutes and regulations, relating to state purchasing, of each state, which statutes and regulations the director believes grant a preference to vendors located within the state or goods manufactured within the state.  At least once every twelve months the director shall update the list.

Sec. 241.  RCW 43.19.704 and 1983 c 183 s 3 are each amended to read as follows:

      The director ((of general administration)) shall adopt and apply rules designed to provide for some reciprocity in bidding between Washington and those states having statutes or regulations on the list under RCW 43.19.702.  The director ((of general administration)) shall have broad discretionary power in developing these rules and the rules shall provide for reciprocity only to the extent and in those instances where the director considers it appropriate.  For the purpose of determining the lowest responsible bidder pursuant to RCW 43.19.1911, such rules shall (1) require the director to impose a reciprocity increase on bids when appropriate under the rules and (2) establish methods for determining the amount of the increase.  In no instance shall such increase, if any, be paid to a vendor whose bid is accepted.

Sec. 242.  RCW 43.19.708 and 2010 c 5 s 5 are each amended to read as follows:

      The department ((of general administration)) shall identify in the department's vendor registry all vendors that are veteran-owned businesses as certified by the department of veterans affairs under RCW 43.60A.195.

Sec. 243.  RCW 43.19.710 and 1993 c 219 s 2 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this section and RCW 43.19.715.

      (1) "Consolidated mail service" means incoming, outgoing, and internal mail processing.

      (2) (("Department" means the department of general administration.
      (3) "Director" means the director of the department of general administration.
      (4) "Agency" means:
      (a) The office of the governor; and
      (b) Any office, department, board, commission, or other separate unit or division, however designated, of the state government, together with all personnel thereof:  Upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature; and that has as its chief executive officer a person or combination of persons such as a commission, board, or council, by law empowered to operate it, responsible either to:  (i) No other public officer or (ii) the governor.
      (5))) "Incoming mail" means mail, packages, or similar items received by an agency, through the United States postal service, private carrier services, or other courier services.

      (((6))) (3) "Outgoing mail" means mail, packages, or similar items processed for agencies to be sent through the United States postal service, private carrier services, or other courier services.

      (((7))) (4) "Internal mail" means interagency mail, packages, or similar items that are delivered or to be delivered to a state agency, the legislature, the supreme court, or the court of appeals, and their officers and employees.

Sec. 244.  RCW 19.27.070 and 2010 c 275 s 1 are each amended to read as follows:

      There is hereby established a state building code council, to be appointed by the governor.

      (1) The state building code council shall consist of fifteen members:

      (a) Two members must be county elected legislative body members or elected executives;

      (b) Two members must be city elected legislative body members or mayors;

      (c) One member must be a local government building code enforcement official;

      (d) One member must be a local government fire service official;

      (e) One member shall represent general construction, specializing in commercial and industrial building construction;

      (f) One member shall represent general construction, specializing in residential and multifamily building construction;

      (g) One member shall represent the architectural design profession;

      (h) One member shall represent the structural engineering profession;

      (i) One member shall represent the mechanical engineering profession;

      (j) One member shall represent the construction building trades;

      (k) One member shall represent manufacturers, installers, or suppliers of building materials and components;

      (l) One member must be a person with a physical disability and shall represent the disability community; and

      (m) One member shall represent the general public.

      (2) At least six of these fifteen members shall reside east of the crest of the Cascade mountains.

      (3) The council shall include:  Two members of the house of representatives appointed by the speaker of the house, one from each caucus; two members of the senate appointed by the president of the senate, one from each caucus; and an employee of the electrical division of the department of labor and industries, as ex officio, nonvoting members with all other privileges and rights of membership.

      (4)(a) Terms of office shall be for three years, or for so long as the member remains qualified for the appointment.

      (b) The council shall elect a member to serve as chair of the council for one-year terms of office.   

      (c) Any member who is appointed by virtue of being an elected official or holding public employment shall be removed from the council if he or she ceases being such an elected official or holding such public employment.

      (d) Any member who is appointed to represent a specific private sector industry must maintain sufficiently similar employment or circumstances throughout the term of office to remain qualified to represent the specified industry.  Retirement or unemployment is not cause for termination.  However, if a councilmember enters into employment outside of the industry he or she has been appointed to represent, then he or she shall be removed from the council.

      (e) Any member who no longer qualifies for appointment under this section may not vote on council actions, but may participate as an ex officio, nonvoting member until a replacement member is appointed.  A member must notify the council staff and the governor's office within thirty days of the date the member no longer qualifies for appointment under this section.  The governor shall appoint a qualified replacement for the member within sixty days of notice.

      (5) Before making any appointments to the building code council, the governor shall seek nominations from recognized organizations which represent the entities or interests identified in this section.

      (6) Members shall not be compensated but shall receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

      (7) The department of ((commerce)) enterprise services shall provide administrative and clerical assistance to the building code council.

Sec. 245.  RCW 19.27A.140 and 2010 c 271 s 305 are each amended to read as follows:

      The definitions in this section apply to RCW 19.27A.130 through 19.27A.190 and 19.27A.020 unless the context clearly requires otherwise.

      (1) "Benchmark" means the energy used by a facility as recorded monthly for at least one year and the facility characteristics information inputs required for a portfolio manager.

      (2) "Conditioned space" means conditioned space, as defined in the Washington state energy code.

      (3) "Consumer-owned utility" includes a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, a port district formed under Title 53 RCW, or a water-sewer district formed under Title 57 RCW, that is engaged in the business of distributing electricity to one or more retail electric customers in the state.

      (4) "Cost-effectiveness" means that a project or resource is forecast:

      (a) To be reliable and available within the time it is needed; and

      (b) To meet or reduce the power demand of the intended consumers at an estimated incremental system cost no greater than that of the least- cost similarly reliable and available alternative project or resource, or any combination thereof.

      (5) "Council" means the state building code council.

      (6) "Embodied energy" means the total amount of fossil fuel energy consumed to extract raw materials and to manufacture, assemble, transport, and install the materials in a building and the life-cycle cost benefits including the recyclability and energy efficiencies with respect to building materials, taking into account the total sum of current values for the costs of investment, capital, installation, operating, maintenance, and replacement as estimated for the lifetime of the product or project.

      (7) "Energy consumption data" means the monthly amount of energy consumed by a customer as recorded by the applicable energy meter for the most recent twelve-month period.

      (8) "Energy service company" has the same meaning as in RCW 43.19.670.

      (9) "((General administration)) Enterprise services" means the department of ((general administration)) enterprise services.

      (10) "Greenhouse gas" and "greenhouse gases" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

      (11) "Investment grade energy audit" means an intensive engineering analysis of energy efficiency and management measures for the facility, net energy savings, and a cost-effectiveness determination.

      (12) "Investor-owned utility" means a corporation owned by investors that meets the definition of "corporation" as defined in RCW 80.04.010 and is engaged in distributing either electricity or natural gas, or both, to more than one retail electric customer in the state.

      (13) "Major facility" means any publicly owned or leased building, or a group of such buildings at a single site, having ten thousand square feet or more of conditioned floor space.

      (14) "National energy performance rating" means the score provided by the energy star program, to indicate the energy efficiency performance of the building compared to similar buildings in that climate as defined in the United States environmental protection agency "ENERGY STAR® Performance Ratings Technical Methodology."

      (15) "Net zero energy use" means a building with net energy consumption of zero over a typical year.

      (16) "Portfolio manager" means the United States environmental protection agency's energy star portfolio manager or an equivalent tool adopted by the department of ((general administration)) enterprise services.

      (17) "Preliminary energy audit" means a quick evaluation by an energy service company of the energy savings potential of a building.

      (18) "Qualifying public agency" includes all state agencies, colleges, and universities.

      (19) "Qualifying utility" means a consumer-owned or investor-owned gas or electric utility that serves more than twenty-five thousand customers in the state of Washington.

      (20) "Reporting public facility" means any of the following:

      (a) A building or structure, or a group of buildings or structures at a single site, owned by a qualifying public agency, that exceed ten thousand square feet of conditioned space;

      (b) Buildings, structures, or spaces leased by a qualifying public agency that exceeds ten thousand square feet of conditioned space, where the qualifying public agency purchases energy directly from the investor-owned or consumer-owned utility;

      (c) A wastewater treatment facility owned by a qualifying public agency; or

      (d) Other facilities selected by the qualifying public agency.

      (21) "State portfolio manager master account" means a portfolio manager account established to provide a single shared portfolio that includes reports for all the reporting public facilities.

Sec. 246.  RCW 39.34.055 and 1994 c 98 s 1 are each amended to read as follows:

      The ((office of state procurement within the)) department of ((general administration)) enterprise services may enter into an agreement with a public benefit nonprofit corporation to allow the public benefit nonprofit corporation to participate in state contracts for purchases administered by the ((office of state procurement)) department.  Such agreement must comply with the requirements of RCW 39.34.030 through 39.34.050.  For the purposes of this section "public benefit nonprofit corporation" means a public benefit nonprofit corporation as defined in RCW 24.03.005 that is receiving local, state, or federal funds either directly or through a public agency other than an Indian tribe or a political subdivision of another state.

Sec. 247.  RCW 39.35.030 and 2001 c 214 s 16 are each amended to read as follows:

      For the purposes of this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise:

      (1) "Public agency" means every state office, officer, board, commission, committee, bureau, department, and all political subdivisions of the state.

      (2) "Department" means the state department of ((general administration)) enterprise services.

      (3) "Major facility" means any publicly owned or leased building having twenty-five thousand square feet or more of usable floor space.

      (4) "Initial cost" means the moneys required for the capital construction or renovation of a major facility.

      (5) "Renovation" means additions, alterations, or repairs within any twelve-month period which exceed fifty percent of the value of a major facility and which will affect any energy system.

      (6) "Economic life" means the projected or anticipated useful life of a major facility as expressed by a term of years.

      (7) "Energy management system" means a program, energy efficiency equipment, technology, device, or other measure including, but not limited to, a management, educational, or promotional program, smart appliance, meter reading system that provides energy information capability, computer software or hardware, communications equipment or hardware, thermostat or other control equipment, together with related administrative or operational programs, that allows identification and management of opportunities for improvement in the efficiency of energy use, including but not limited to a measure that allows:

      (a) Energy consumers to obtain information about their energy usage and the cost of energy in connection with their usage;

      (b) Interactive communication between energy consumers and their energy suppliers;

      (c) Energy consumers to respond to energy price signals and to manage their purchase and use of energy; or

      (d) For other kinds of dynamic, demand-side energy management.

      (8) "Life-cycle cost" means the initial cost and cost of operation of a major facility over its economic life.  This shall be calculated as the initial cost plus the operation, maintenance, and energy costs over its economic life, reflecting anticipated increases in these costs discounted to present value at the current rate for borrowing public funds, as determined by the office of financial management.  The energy cost projections used shall be those provided by the department.  The department shall update these projections at least every two years.

      (9) "Life-cycle cost analysis" includes, but is not limited to, the following elements:

      (a) The coordination and positioning of a major facility on its physical site;

      (b) The amount and type of fenestration employed in a major facility;

      (c) The amount of insulation incorporated into the design of a major facility;

      (d) The variable occupancy and operating conditions of a major facility; and

      (e) An energy-consumption analysis of a major facility.

      (10) "Energy systems" means all utilities, including, but not limited to, heating, air-conditioning, ventilating, lighting, and the supplying of domestic hot water.

      (11) "Energy-consumption analysis" means the evaluation of all energy systems and components by demand and type of energy including the internal energy load imposed on a major facility by its occupants, equipment, and components, and the external energy load imposed on a major facility by the climatic conditions of its location.  An energy- consumption analysis of the operation of energy systems of a major facility shall include, but not be limited to, the following elements:

      (a) The comparison of three or more system alternatives, at least one of which shall include renewable energy systems, and one of which shall comply at a minimum with the sustainable design guidelines of the United States green building council leadership in energy and environmental design silver standard or similar design standard as may be adopted by rule by the department;

      (b) The simulation of each system over the entire range of operation of such facility for a year's operating period; and

      (c) The evaluation of the energy consumption of component equipment in each system considering the operation of such components at other than full or rated outputs.

      The energy-consumption analysis shall be prepared by a professional engineer or licensed architect who may use computers or such other methods as are capable of producing predictable results.

      (12) "Renewable energy systems" means methods of facility design and construction and types of equipment for the utilization of renewable energy sources including, but not limited to, hydroelectric power, active or passive solar space heating or cooling, domestic solar water heating, windmills, waste heat, biomass and/or refuse-derived fuels, photovoltaic devices, and geothermal energy.

      (13) "Cogeneration" means the sequential generation of two or more forms of energy from a common fuel or energy source.  Where these forms are electricity and thermal energy, then the operating and efficiency standards established by 18 C.F.R. Sec. 292.205 and the definitions established by 18 C.F.R. 292.202 (c) through (m) as of July 28, 1991, shall apply.

      (14) "Selected buildings" means educational, office, residential care, and correctional facilities that are designed to comply with the design standards analyzed and recommended by the department.

      (15) "Design standards" means the heating, air-conditioning, ventilating, and renewable resource systems identified, analyzed, and recommended by the department as providing an efficient energy system or systems based on the economic life of the selected buildings.

Sec. 248.  RCW 39.35C.010 and 2007 c 39 s 4 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Cogeneration" means the sequential generation of two or more forms of energy from a common fuel or energy source.  If these forms are electricity and thermal energy, then the operating and efficiency standards established by 18 C.F.R. Sec. 292.205 and the definitions established by 18 C.F.R. Sec. 292.202 (c) through (m) apply.

      (2) "Conservation" means reduced energy consumption or energy cost, or increased efficiency in the use of energy, and activities, measures, or equipment designed to achieve such results, but does not include thermal or electric energy production from cogeneration.  "Conservation" also means reductions in the use or cost of water, wastewater, or solid waste.

      (3) "Cost-effective" means that the present value to a state agency or school district of the energy reasonably expected to be saved or produced by a facility, activity, measure, or piece of equipment over its useful life, including any compensation received from a utility or the Bonneville power administration, is greater than the net present value of the costs of implementing, maintaining, and operating such facility, activity, measure, or piece of equipment over its useful life, when discounted at the cost of public borrowing.

      (4) "Energy" means energy as defined in RCW 43.21F.025(((1))) (5).

      (5) "Energy audit" has the definition provided in RCW 43.19.670, and may include a determination of the water or solid waste consumption characteristics of a facility.

      (6) "Energy efficiency project" means a conservation or cogeneration project.

      (7) "Energy efficiency services" means assistance furnished by the department to state agencies and school districts in identifying, evaluating, and implementing energy efficiency projects.

      (8) "Department" means the state department of ((general administration)) enterprise services.

      (9) "Performance-based contracting" means contracts for which payment is conditional on achieving contractually specified energy savings.

      (10) "Public agency" means every state office, officer, board, commission, committee, bureau, department, and all political subdivisions of the state.

      (11) "Public facility" means a building or structure, or a group of buildings or structures at a single site, owned by a state agency or school district.

      (12) "State agency" means every state office or department, whether elective or appointive, state institutions of higher education, and all boards, commissions, or divisions of state government, however designated.

      (13) "State facility" means a building or structure, or a group of buildings or structures at a single site, owned by a state agency.

      (14) "Utility" means privately or publicly owned electric and gas utilities, electric cooperatives and mutuals, whether located within or without Washington state.

      (15) "Local utility" means the utility or utilities in whose service territory a public facility is located.

Sec. 249.  RCW 39.35D.020 and 2006 c 263 s 330 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Department" means the department of ((general administration)) enterprise services.

      (2) "High-performance public buildings" means high-performance public buildings designed, constructed, and certified to a standard as identified in this chapter.

      (3) "Institutions of higher education" means the state universities, the regional universities, The Evergreen State College, the community colleges, and the technical colleges.

      (4) "LEED silver standard" means the United States green building council leadership in energy and environmental design green building rating standard, referred to as silver standard.

      (5)(a) "Major facility project" means:  (i) A construction project larger than five thousand gross square feet of occupied or conditioned space as defined in the Washington state energy code; or (ii) a building renovation project when the cost is greater than fifty percent of the assessed value and the project is larger than five thousand gross square feet of occupied or conditioned space as defined in the Washington state energy code.

      (b) "Major facility project" does not include:  (i) Projects for which the department, public school district, or other applicable agency and the design team determine the LEED silver standard or the Washington sustainable school design protocol to be not practicable; or (ii) transmitter buildings, pumping stations, hospitals, research facilities primarily used for sponsored laboratory experimentation, laboratory research, or laboratory training in research methods, or other similar building types as determined by the department.  When the LEED silver standard is determined to be not practicable for a project, then it must be determined if any LEED standard is practicable for the project.  If LEED standards or the Washington sustainable school design protocol are not followed for the project, the public school district or public agency shall report these reasons to the department.

      (6) "Public agency" means every state office, officer, board, commission, committee, bureau, department, and public higher education institution.

      (7) "Public school district" means a school district eligible to receive state basic education moneys pursuant to RCW 28A.150.250 and 28A.150.260.

      (8) "Washington sustainable school design protocol" means the school design protocol and related information developed by the office of the superintendent of public instruction, in conjunction with school districts and the school facilities advisory board.

Sec. 250.  RCW 43.19A.010 and 1992 c 174 s 12 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Compost products" means mulch, soil amendments, ground cover, or other landscaping material derived from the biological or mechanical conversion of biosolids or cellulose-containing waste materials.

      (2) "Department" means the department of ((general administration)) enterprise services.

      (3) "Director" means the director of the department of ((general administration)) enterprise services.

      (4) "Local government" means a city, town, county, special purpose district, school district, or other municipal corporation.

      (5) "Lubricating oil" means petroleum-based oils for reducing friction in engine parts and other mechanical parts.

      (6) "Mixed waste paper" means assorted low-value grades of paper that have not been separated into individual grades of paper at the point of collection.

      (7) "Municipal sewage sludge" means a semisolid substance consisting of settled sewage solids combined with varying amounts of water and dissolved materials generated from a publicly owned wastewater treatment plant.

      (8) "Biosolids" means municipal sewage sludge or septic tank septage sludge that meets the requirements of chapter 70.95J.

      (9) "Paper and paper products" means all items manufactured from paper or paperboard.

      (10) "Postconsumer waste" means a material or product that has served its intended use and has been discarded for disposal or recovery by a final consumer.

      (11) "Procurement officer" means the person that has the primary responsibility for procurement of materials or products.

      (12) "State agency" means all units of state government, including divisions of the governor's office, the legislature, the judiciary, state agencies and departments, correctional institutions, vocational technical institutions, and universities and colleges.

      (13) "Recycled content product" or "recycled product" means a product containing recycled materials.

      (14) "Recycled materials" means waste materials and by-products that have been recovered or diverted from solid waste and that can be utilized in place of a raw or virgin material in manufacturing a product and consists of materials derived from postconsumer waste, manufacturing waste, industrial scrap, agricultural wastes, and other items, all of which can be used in the manufacture of new or recycled products.

      (15) "Re-refined oils" means used lubricating oils from which the physical and chemical contaminants acquired through previous use have been removed through a refining process.  Re-refining may include distillation, hydrotreating, or treatments employing acid, caustic, solvent, clay, or other chemicals, or other physical treatments other than those used in reclaiming.

      (16) "USEPA product standards" means the product standards of the United States environmental protection agency for recycled content published in the code of federal regulations.

Sec. 251.  RCW 43.19A.022 and 2009 c 356 s 2 are each amended to read as follows:

      (1) ((By December 31, 2009,)) All state agencies shall purchase one hundred percent recycled content white cut sheet bond paper used in office printers and copiers.  State agencies are encouraged to give priority to purchasing from companies that produce paper in facilities that generate energy from a renewable energy source.

      (2) State agencies that utilize office printers and copiers that, after reasonable attempts, cannot be calibrated to utilize such paper referenced in subsection (1) of this section, must for those models of equipment:

      (a) Purchase paper at the highest recycled content that can be utilized efficiently by the copier or printer;

      (b) At the time of lease renewal or at the end of the life-cycle, either lease or purchase a model that will efficiently utilize one hundred percent recycled content white cut sheet bond paper;

      (3) Printed projects that require the use of high volume production inserters or high-speed digital devices, such as those used by ((the state printer, department of information services, and)) the department of ((general administration)) enterprise services, are not required to meet the one hundred percent recycled content white cut sheet bond paper standard, but must utilize the highest recycled content that can be utilized efficiently by such equipment and not impede the business of agencies.

      (4) The ((state printer,)) department of ((general administration,)) enterprise services and the department of information services shall work together to identify for use by agencies one hundred percent recycled paper products that process efficiently through high-speed production equipment and do not impede the business of agencies.

Sec. 252.  RCW 39.32.035 and 1998 c 105 s 3 are each amended to read as follows:

      The ((general administration)) enterprise services account shall be administered by the director of ((general administration)) enterprise services and be used for the purchase, lease or other acquisition from time to time of surplus property from any federal, state, or local government surplus property disposal agency.  The director may purchase, lease or acquire such surplus property on the requisition of an eligible donee and without such requisition at such time or times as he or she deems it advantageous to do so; and in either case he or she shall be responsible for the care and custody of the property purchased so long as it remains in his or her possession.

Sec. 253.  RCW 43.01.225 and 1995 c 215 s 2 are each amended to read as follows:

      There is hereby established an account in the state treasury to be known as the "state vehicle parking account."  All parking rental income resulting from parking fees established by the department of ((general administration)) enterprise services under RCW 46.08.172 at state-owned or leased property shall be deposited in the "state vehicle parking account."  Revenue deposited in the "state vehicle parking account" shall be first applied to pledged purposes.  Unpledged parking revenues deposited in the "state vehicle parking account" may be used to:

      (1) Pay costs incurred in the operation, maintenance, regulation, and enforcement of vehicle parking and parking facilities;

      (2) Support the lease costs and/investment costs of vehicle parking and parking facilities; and

      (3) Support agency commute trip reduction programs under RCW 70.94.521 through 70.94.551.

Sec. 254.  RCW 43.82.120 and 1998 c 105 s 14 are each amended to read as follows:

      All rental income collected by the department of ((general administration)) enterprise services from rental of state buildings shall be deposited in the ((general administration)) enterprise services account.

Sec. 255.  RCW 43.82.125 and 1998 c 105 s 15 are each amended to read as follows:

      The ((general administration)) enterprise services account shall be used to pay all costs incurred by the department in the operation of real estate managed under the terms of this chapter.  Moneys received into the ((general administration)) enterprise services account shall be used to pay rent to the owner of the space for occupancy of which the charges have been made and to pay utility and operational costs of the space utilized by the occupying agency:  PROVIDED, That moneys received into the account for occupancy of space owned by the state where utilities and other operational costs are covered by appropriation to the department of ((general administration)) enterprise services shall be immediately transmitted to the general fund.

Sec. 256.  RCW 43.99H.070 and 1995 c 215 s 6 are each amended to read as follows:

      In addition to any other charges authorized by law and to assist in the reimbursement of principal and interest payments on bonds issued for the purposes of RCW 43.99H.020(15), the following revenues may be collected:

      (1) The director of ((general administration)) enterprise services may assess a charge against each state board, commission, agency, office, department, activity, or other occupant of the facility or building constructed with bonds issued for the purposes of RCW 43.99H.020(15) for payment of a proportion of costs for each square foot of floor space assigned to or occupied by the entity.  Payment of the amount billed to the entity for such occupancy shall be made quarterly during each fiscal year.  The director of ((general administration)) enterprise services shall deposit the payment in the capitol campus reserve account.

      (2) The director of ((general administration)) enterprise services may pledge a portion of the parking rental income collected by the department of ((general administration)) enterprise services from parking space developed as a part of the facility constructed with bonds issued for the purposes of RCW 43.99H.020(15).  The pledged portion of this income shall be deposited in the capitol campus reserve account.  The unpledged portion of this income shall continue to be deposited in the state vehicle parking account.

      (3) The state treasurer shall transfer four million dollars from the capitol building construction account to the capitol campus reserve account each fiscal year from 1990 to 1995.  Beginning in fiscal year 1996, the director of ((general administration)) enterprise services, in consultation with the state finance committee, shall determine the necessary amount for the state treasurer to transfer from the capitol building construction account to the capitol campus reserve account for the purpose of repayment of the general fund of the costs of the bonds issued for the purposes of RCW 43.99H.020(15).

      (4) Any remaining balance in the state building and parking bond redemption account after the final debt service payment shall be transferred to the capitol campus reserve account.

Sec. 257.  RCW 73.24.020 and 1937 c 36 s 1 are each amended to read as follows:

      The director of the department of ((finance, budget and business)) enterprise services is hereby authorized and directed to contract with Olympia Lodge No. 1, F.& A.M., a corporation for the improvement and perpetual care of the state veterans' plot in the Masonic cemetery at Olympia; such care to include the providing of proper curbs and walks, cultivating, reseeding and fertilizing grounds, repairing and resetting the bases and monuments in place on the ground, leveling grounds, and transporting and setting headstones for graves of persons hereafter buried on the plot.

NEW SECTION.  Sec. 258.  The following acts or parts of acts are each repealed:

      (1) RCW 43.19.010 (Director‑-Authority, appointment, salary) and 1999 c 229 s 1, 1993 c 472 s 19, 1988 c 25 s 10, 1975 1st ex.s. c 167 s 1, & 1965 c 8 s 43.19.010;

      (2) RCW 43.19.1923 (General administration services account‑-Use) and 2001 c 292 s 3, 1998 c 105 s 6, 1991 sp.s. c 16 s 921, 1987 c 504 s 17, 1975‑'76 2nd ex.s. c 21 s 12, 1967 ex.s. c 104 s 5, & 1965 c 8 s 43.19.1923;

      (3) RCW 43.19.1925 (Combined purchases of commonly used items‑- Advance payments by state agencies‑-Costs of operating central stores) and 1998 c 105 s 7, 1975 c 40 s 8, 1973 c 104 s 2, & 1965 c 8 s 43.19.1925;

      (4) RCW 43.19.590 (Motor vehicle transportation service‑-Transfer of employees‑-Retention of employment rights) and 1975 1st ex.s. c 167 s 8;

      (5) RCW 43.19.595 (Motor vehicle transportation service‑-Transfer of motor vehicles, property, etc., from motor pool to department) and 2009 c 549 s 5067 & 1975 1st ex.s. c 167 s 9;

      (6) RCW 43.19.615 (Motor vehicle transportation service‑-Deposits‑- Disbursements) and 2005 c 214 s 2, 1998 c 105 s 13, & 1975 1st ex.s. c 167 s 13;

      (7) RCW 43.19.675 (Energy audits of state-owned facilities required‑-Completion dates) and 2001 c 214 s 26, 1982 c 48 s 2, & 1980 c 172 s 4;

      (8) RCW 43.19.680 (Implementation of energy conservation and maintenance procedures after walk-through survey‑-Investment grade audit‑-Reports‑-Contracts with energy service companies, staffing) and 2001 c 214 s 27, 1996 c 186 s 506, 1986 c 325 s 2, 1983 c 313 s 1, 1982 c 48 s 3, & 1980 c 172 s 5; and

      (9) 2010 c 271 s 301.

NEW SECTION.  Sec. 259.  RCW 43.19.123 is decodified.

PART III
POWERS AND DUTIES TRANSFERRED FROM THE PUBLIC PRINTER

Sec. 301.  RCW 43.78.030 and 2010 1st sp.s. c 37 s 927 are each amended to read as follows:

(1) The ((public printer)) department shall print and bind the session laws, the journals of the two houses of the legislature, all bills, resolutions, documents, and other printing and binding of either the senate or house, as ((the same)) may be ordered by the legislature; and such forms, blanks, record books, and printing and binding ((of every description)) as may be ordered by ((all state officers, boards, commissions, and institutions, and)) the supreme court, and the court of appeals ((and officers thereof, as the same may be ordered on requisition, from time to time, by the proper authorities)), and material with sensitive or personally identifiable information not publicly available.  This section shall not apply to the printing of the supreme court and the court of appeals reports((,)) or to the printing of bond certificates or bond offering disclosure documents((, to the printing of educational publications of the state historical societies, or to any printing done or contracted for by institutions of higher education:  PROVIDED, That institutions of higher education, in consultation with the public printer, develop vendor selection procedures comparable to those used by the public printer for contracted printing jobs.  Where any institution or institution of higher learning of the state is or may become equipped with facilities for doing such work, it may do any printing:  (1) For itself, or (2) for any other state institution when such printing is done as part of a course of study relative to the profession of printer.  Any printing and binding of whatever description as may be needed by any institution or agency of the state department of social and health services not at Olympia, or the supreme court or the court of appeals or any officer thereof, the estimated cost of which shall not exceed one thousand dollars, may be done by any private printing company in the general vicinity within the state of Washington so ordering, if in the judgment of the officer of the agency so ordering, the saving in time and processing justifies the award to such local private printing concern.
      Beginning on July 1, 1989, and on July 1 of each succeeding odd- numbered year, the dollar limit specified in this section shall be adjusted as follows:  The office of financial management shall calculate such limit by adjusting the previous biennium's limit by an appropriate federal inflationary index reflecting the rate of inflation for the previous biennium.  Such amounts shall be rounded to the nearest fifty dollars.
      During the 20092011 fiscal biennium, this section does not apply to pilot printing projects authorized by the office of financial management to allow state agencies and institutions to directly acquire printing services)).

(2) State agencies, boards, commissions, and institutions of higher education requiring the services of a print shop may use the department without bid.  If a print job is put out for bid, the department must be included in the bid solicitation.  All solicitations must be posted on the state's common vendor registration and bid notification system.  All solicitations must include the requirement to use recycled copy and printing paper for all jobs printed on white copy and printing paper as is required under RCW 43.78.170 (as recodified by this act).  All bid specifications must require the use of biodegradable ink, if feasible for the print job.

Sec. 302.  RCW 43.78.070 and 2009 c 549 s 5148 are each amended to read as follows:

      ((The public printer shall use the state printing plant upon the following conditions, to wit:
      (1) He or she shall do the public printing, and charge therefor the fees as provided by law.  He or she may print the Washington Reports for the publishers thereof under a contract approved in writing by the governor.
      (2) The gross income of the public printer shall be deposited in an account designated "state printing plant revolving fund" in depositaries approved by the state treasurer, and shall be disbursed by the public printer by check and only as follows:
      First, in payment of the actual cost of labor, material, supplies, replacements, repairs, water, light, heat, telephone, rent, and all other expenses necessary in the operation of the plant:  PROVIDED, That no machinery shall be purchased except on written approval of the governor;
      Second, in payment of the cost of reasonable insurance upon the printing plant, payable to the state and of all fidelity bonds required by law of the public printer;
      Third, in payment to the public printer of a salary which shall be fixed by the governor in accordance with the provisions of RCW 43.03.040;
      Fourth, in remitting the balance to the state treasurer for the general fund:  PROVIDED, That a reasonable sum to be determined by the governor, the public printer, and the director of financial management shall be retained in the fund for working capital for the public printer.))

(1) The department must use the state printing plant and must charge fees as provided by law.
      (2) The department may print the Washington Reports for the publishers under a contract.
      (3) The director must update the budgeted hourly rate model for printing, as needed, to accurately reflect its operational costs.
      (4) The director must transfer any residual funds remaining in the state printing plant revolving fund to the public printing revolving account established in section 303 of this act.

NEW SECTION.  Sec. 303.  A new section is added to chapter 43.19 RCW to read as follows:

      The public printing revolving account is created in the custody of the state treasurer.  All receipts from public printing must be deposited in the account.  Expenditures from the account may be used only for administrative and operating purposes related to public printing.  Only the director or his or her designee may authorize expenditures from the account.  The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 304.  RCW 43.78.110 and 2009 c 486 s 12 are each amended to read as follows:

      (1) Whenever in the judgment of the ((public printer)) department certain printing, ruling, binding, or supplies can be secured from private sources more economically than by doing the work or preparing the supplies in the state printing plant, the ((public printer)) director may obtain such work or supplies from such private sources.  The bid solicitation ((for the contract opportunity)) must be posted ((on the state's common vendor registration and bid)) to the public printer vendor notification system.  The ((public printer)) director shall develop procurement policies and procedures, such as unbundled contracting and subcontracting, that encourage and facilitate the purchase of such services or supplies from Washington small businesses to the maximum extent practicable and consistent with international trade agreement commitments.

      (2) In the event any work or supplies are secured on behalf of the state under this section the ((state printing plant shall be entitled to)) department may add up to five percent to the cost ((thereof)) to cover the handling of the orders ((which shall be added to the bills and charged to the respective authorities ordering the work or supplies.  The five percent handling charge shall not apply to contracts with institutions of higher education.
      (3) The definitions in this subsection apply throughout this section.
      (a) "Common vendor registration and bid notification system" has the definition in RCW 39.29.006)).

      (((b))) (3) For purposes of this section, "small business" has the definition in RCW 39.29.006.

NEW SECTION.  Sec. 305.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The department shall broker print management contracts for state agencies that are required to utilize print management contracts under this section.

      (2) The department is authorized to broker print management contracts for other state agencies that choose to utilize these services.

      (3) Except as provided under subsection (6) of this section, all state agencies with total annual average full-time equivalent staff that exceeds five hundred as determined by the office of financial management shall utilize print management services brokered by the department, as follows:

      (a) Any agency with a copier and multifunctional device contract

that is set to expire on or before December 31, 2012, may opt to:

      (i) Renew the copier and multifunctional device contract; or

      (ii) Enter a print management contract;

      (b) Any agency with a copier and multifunctional device contract that is set to expire on or after January 1, 2011, shall begin planning for the transition to a print management contract six months prior to the expiration date of the contract.  Upon expiration of the copier and multifunctional device contract, the agency shall utilize a print management contract; and

      (c) Any agency with a copier and multifunctional device contract that is terminated on or after January 1, 2012, shall enter a print management contract.

      (4) Until December 31, 2016, for each agency transitioning from a copier and multifunctional device contract to a print management contract, the print management contract should result in savings in comparison with the prior copier and multifunctional device contract.

      (5) If an agency has more full-time equivalent employees than it had when it entered its most recently completed print management contract, the cost of a new print management contract may exceed the cost of the most recently completed print management contract.

      (6) The director of financial management may exempt a state agency, or a program within a state agency, from the requirements of this section if he or she deems it unfeasible or the department and agency could not reasonably reach an agreement regarding print management.

NEW SECTION.  Sec. 306.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The department shall consult with the office of financial management and state agencies to more efficiently manage the use of envelopes by standardizing them to the extent feasible given the business needs of state agencies.

      (2) All state agencies with total annual average full-time equivalent staff that exceeds five hundred as determined by the office of financial management shall cooperate with the department in efforts to standardize envelopes under subsection (1) of this section.  In the event that an agency is updating a mailing, the agency shall transition to an envelope recommended by the department, unless the office of financial management considers the change unfeasible.

      (3) State agencies with five hundred total annual average full-time equivalent staff or less, as determined by the office of financial management, are encouraged to cooperate with the office to standardize envelopes under this section.

NEW SECTION.  Sec. 307.  A new section is added to chapter 43.19 RCW to read as follows:

      For every printing job and binding job ordered by a state agency, the department shall advise the agency on how to choose more economic and efficient options to reduce costs.

NEW SECTION.  Sec. 308.  A new section is added to chapter 43.19 RCW to read as follows:

      To improve the efficiency and minimize the costs of agency-based printing, the department shall establish rules and guidelines for all agencies to use in managing their printing operations, including both agency-based printing and those jobs that require the services of a print shop, as based on the successes of implementation of existing print management programs in state agencies.  At a minimum, the rules and guidelines must implement managed print strategies to track, manage, and reduce agency-based printing.

NEW SECTION.  Sec. 309.  The department must determine which agencies have print shops and must prepare proposed legislation by December 31, 2011, to transfer print shop personnel, equipment, and activities of state agencies and institutions of higher education, as defined in RCW 28B.10.016, to the department.  A transfer under this section does not imply that any print shop operations will close at the affected agencies and institutions of higher education.

NEW SECTION.  Sec. 310.  A new section is added to chapter 43.09 RCW to read as follows:

      By November 1, 2016, building on the findings of the 2011 audit, the state auditor shall conduct a comprehensive performance audit of state printing services in accordance with RCW 43.09.470.  Following the audit in 2016, the state auditor shall conduct follow-up audits as deemed necessary to ensure effective implementation of this act.

Sec. 311.  RCW 1.08.039 and 1955 c 235 s 8 are each amended to read as follows:

      The committee may enter into contracts or otherwise arrange for the publication and/or distribution, provided for in RCW 1.08.038, with or without calling for bids, by the ((public printer)) department or by private printer, upon specifications formulated under the authority of RCW 1.08.037, and upon such basis as the committee deems to be most expeditious and economical.  Any such contract may be upon such terms as the committee deems to be most advantageous to the state and to potential purchasers of such publications.  The committee shall fix terms and prices for such publications.

Sec. 312.  RCW 28A.300.040 and 2009 c 556 s 10 are each amended to read as follows:

      In addition to any other powers and duties as provided by law, the powers and duties of the superintendent of public instruction shall be:

      (1) To have supervision over all matters pertaining to the public schools of the state;

      (2) To report to the governor and the legislature such information and data as may be required for the management and improvement of the schools;

      (3) To prepare and have printed such forms, registers, courses of study, rules for the government of the common schools, and such other material and books as may be necessary for the discharge of the duties of teachers and officials charged with the administration of the laws relating to the common schools, and to distribute the same to educational service district superintendents;

      (4) To travel, without neglecting his or her other official duties as superintendent of public instruction, for the purpose of attending educational meetings or conventions, of visiting schools, and of consulting educational service district superintendents or other school officials;

      (5) To prepare and from time to time to revise a manual of the Washington state common school code, copies of which shall be made available online and which shall be sold at approximate actual cost of publication and distribution per volume to public and nonpublic agencies or individuals, said manual to contain Titles 28A and 28C RCW, rules related to the common schools, and such other matter as the state superintendent or the state board of education shall determine.  Proceeds of the sale of such code shall be ((transmitted to the public printer who shall credit the state superintendent's account within)) deposited in the ((state)) public printing ((plant)) revolving ((fund by a like amount)) account and credited to the state superintendent's account within the account;

      (6) To file all papers, reports and public documents transmitted to the superintendent by the school officials of the several counties or districts of the state, each year separately.  Copies of all papers filed in the superintendent's office, and the superintendent's official acts, may, or upon request, shall be certified by the superintendent and attested by the superintendent's official seal, and when so certified shall be evidence of the papers or acts so certified to;

      (7) To require annually, on or before the 15th day of August, of the president, manager, or principal of every educational institution in this state, a report as required by the superintendent of public instruction; and it is the duty of every president, manager, or principal, to complete and return such forms within such time as the superintendent of public instruction shall direct;

      (8) To keep in the superintendent's office a record of all teachers receiving certificates to teach in the common schools of this state;

      (9) To issue certificates as provided by law;

      (10) To keep in the superintendent's office at the capital of the state, all books and papers pertaining to the business of the superintendent's office, and to keep and preserve in the superintendent's office a complete record of statistics, as well as a record of the meetings of the state board of education;

      (11) With the assistance of the office of the attorney general, to decide all points of law which may be submitted to the superintendent in writing by any educational service district superintendent, or that may be submitted to the superintendent by any other person, upon appeal from the decision of any educational service district superintendent; and the superintendent shall publish his or her rulings and decisions from time to time for the information of school officials and teachers; and the superintendent's decision shall be final unless set aside by a court of competent jurisdiction;

      (12) To administer oaths and affirmations in the discharge of the superintendent's official duties;

      (13) To deliver to his or her successor, at the expiration of the superintendent's term of office, all records, books, maps, documents and papers of whatever kind belonging to the superintendent's office or which may have been received by the superintendent's for the use of the superintendent's office;

      (14) To administer family services and programs to promote the state's policy as provided in RCW 74.14A.025;

      (15) To promote the adoption of school-based curricula and policies that provide quality, daily physical education for all students, and to encourage policies that provide all students with opportunities for physical activity outside of formal physical education classes;

      (16) To perform such other duties as may be required by law.

Sec. 313.  RCW 28B.10.029 and 2010 c 61 s 1 are each amended to read as follows:

      (1)(a) An institution of higher education may exercise independently those powers otherwise granted to the director of ((general administration)) enterprise services in chapter 43.19 RCW in connection with the purchase and disposition of all material, supplies, services, and equipment needed for the support, maintenance, and use of the respective institution of higher education.

      (b) Property disposition policies followed by institutions of higher education shall be consistent with policies followed by the department of ((general administration)) enterprise services.

      (c) Purchasing policies and procedures followed by institutions of higher education shall be in compliance with chapters 39.19, 39.29, and 43.03 RCW, and RCW 43.19.1901, 43.19.1906, 43.19.1911, 43.19.1917, 43.19.1937, 43.19.534, 43.19.685, 43.19.700 through 43.19.704, and 43.19.560 through 43.19.637.

      (d) Purchases under chapter 39.29, 43.19, or 43.105 RCW by institutions of higher education may be made by using contracts for materials, supplies, services, or equipment negotiated or entered into by, for, or through group purchasing organizations.

      (e) The community and technical colleges shall comply with RCW 43.19.450.

      (f) Except for the University of Washington, institutions of higher education shall comply with RCW 43.41.310, 43.41.290, and 43.41.350 (as recodified by this act).

      (g) If an institution of higher education can satisfactorily demonstrate to the director of the office of financial management that the cost of compliance is greater than the value of benefits from any of the following statutes, then it shall be exempt from them:  RCW 43.19.685, 43.19.534, and 43.19.637.

      (h) Any institution of higher education that chooses to exercise independent purchasing authority for a commodity or group of commodities shall notify the director of ((general administration)) enterprise services.  Thereafter the director of ((general administration)) enterprise services shall not be required to provide those services for that institution for the duration of the ((general administration)) department of enterprise services contract term for that commodity or group of commodities.

      (2) The council of presidents and the state board for community and technical colleges shall convene its correctional industries business development advisory committee, and work collaboratively with correctional industries, to:

      (a) Reaffirm purchasing criteria and ensure that quality, service, and timely delivery result in the best value for expenditure of state dollars;

      (b) Update the approved list of correctional industries products from which higher education shall purchase; and

      (c) Develop recommendations on ways to continue to build correctional industries' business with institutions of higher education.

      (3) Higher education and correctional industries shall develop a plan to build higher education business with correctional industries to increase higher education purchases of correctional industries products, based upon the criteria established in subsection (2) of this section.  The plan shall include the correctional industries' production and sales goals for higher education and an approved list of products from which higher education institutions shall purchase, based on the criteria established in subsection (2) of this section.  Higher education and correctional industries shall report to the legislature regarding the plan and its implementation no later than January 30, 2005.

      (4) Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2006, to purchase one percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections.  Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2008, to purchase two percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections.

      (5) An institution of higher education may exercise independently those powers otherwise granted to the ((public printer in chapter 43.78 RCW)) department of enterprise services in connection with the production or purchase of any printing and binding needed by the respective institution of higher education.  Purchasing policies and procedures followed by institutions of higher education shall be in compliance with chapter 39.19 RCW.  Any institution of higher education that chooses to exercise independent printing production or purchasing authority shall notify the ((public printer))  department of enterprise services.  Thereafter the ((public printer)) department shall not be required to provide those services for that institution.

Sec. 314.  RCW 40.04.030 and 1995 c 24 s 1 are each amended to read as follows:

      The ((public printer)) department of enterprise services shall deliver to the statute law committee all bound volumes of the session laws.  The ((public printer)) department shall deliver the house and senate journals as they are published to the chief clerk of the house of representatives and the secretary of the senate, as appropriate.  The publisher of the supreme court reports and the court of appeals reports of the state of Washington shall deliver the copies that are purchased by the supreme court for the use of the state to the state law librarian.

Sec. 315.  RCW 40.06.030 and 2006 c 199 s 5 are each amended to read as follows:

      (1) Every state agency shall promptly submit to the state library copies of published information that are state publications.

      (a) For state publications available only in print format, each state agency shall deposit, at a minimum, two copies of each of its publications with the state library.  For the purposes of broad public access, state agencies may deposit additional copies with the state library for distribution to additional depository libraries.

      (b) For state publications available only in electronic format, each state agency shall deposit one copy of each of its publications with the state library.

      (c) For state publications available in both print and electronic format, each state agency shall deposit two print copies and one electronic copy of the publication with the state library.

      (2) Annually, each state agency shall provide the state library with a listing of all its publications made available to state government and the public during the preceding year, including those published in electronic form.  The secretary of state shall, by rule, establish the annual date by which state agencies must provide the list of its publications to the state library.

      (3) In the interest of economy and efficiency, the state librarian may specifically or by general rule exempt a given state publication or class of publications from the requirements of this section in full or in part.

      (4) Upon consent of the issuing state agency, such state publications as are printed by the ((public printer shall)) department of enterprise services must be delivered directly to the center.

Sec. 316.  RCW 40.07.050 and 1986 c 158 s 5 are each amended to read as follows:

      Neither the ((public printer)) department of enterprise services nor any state agency shall print or authorize for printing any state publication that has been determined by the director to be inconsistent with RCW 40.07.030 except to the extent this requirement may conflict with the laws of the United States or any rules or regulations lawfully promulgated under those laws.  A copy of any state publication printed without the approval of the director under the exceptions authorized in this section shall be filed with the director with a letter of transmittal citing the federal statute, rule, or regulation requiring the publication.

Sec. 317.  RCW 43.08.061 and 1993 c 38 s 1 are each amended to read as follows:

      The ((public printer)) department shall print all state treasury warrants for distribution as directed by the state treasurer.  All warrants redeemed by the state treasurer shall be retained for a period of one year, following their redemption, after which they may be destroyed without regard to the requirements imposed for their destruction by chapter 40.14 RCW.

NEW SECTION.  Sec. 318.  The following acts or parts of acts are each repealed:

      (1) RCW 15.24.085 (Promotional printing not restricted by public printer laws) and 2002 c 313 s 121 & 1961 c 11 s 15.24.085;

      (2) RCW 15.62.190 (Promotional printing and literature‑-Exempt from public printing requirements) and 1989 c 5 s 19;

      (3) RCW 16.67.170 (Promotional printing not restricted by public printer laws) and 1969 c 133 s 16;

      (4) RCW 43.78.010 (Appointment of public printer) and 2009 c 549 s 5146, 1981 c 338 s 6, & 1965 c 8 s 43.78.010;

      (5) RCW 43.78.020 (Bond) and 2009 c 549 s 5147 & 1965 c 8 s 43.78.020;

      (6) RCW 43.78.040 (Requisitions) and 1965 c 8 s 43.78.040;

      (7) RCW 43.78.050 (Itemized statement of charges) and 1965 c 8 s 43.78.050;

      (8) RCW 43.78.080 (Printing specifications) and 1972 ex.s. c 1 s 1, 1969 c 6 s 7, & 1965 c 8 s 43.78.080;

      (9) RCW 43.78.090 (Reprinting) and 1965 c 8 s 43.78.090;

      (10) RCW 43.78.100 (Stock to be furnished) and 1993 c 379 s 106 & 1965 c 8 s 43.78.100; and

      (11) RCW 43.78.105 (Printing for institutions of higher education‑- Interlocal agreements) and 1993 c 379 s 105.

NEW SECTION.  Sec. 319.  RCW 43.78.030, 43.78.070,43.78.110, 43.78.130, 43.78.140, 43.78.150, 43.78.160, and 43.78.170 are each recodified as sections in chapter 43.19 RCW.

PART IV
POWERS AND DUTIES TRANSFERRED FROM THE DEPARTMENT OF PERSONNEL

Sec. 401.  RCW 41.06.020 and 1993 c 281 s 19 are each amended to read as follows:

      Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.

      (1) "Agency" means an office, department, board, commission, or other separate unit or division, however designated, of the state government and all personnel thereof; it includes any unit of state government established by law, the executive officer or members of which are either elected or appointed, upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature.

      (2) "Board" means the Washington personnel resources board established under the provisions of RCW 41.06.110, except that this definition does not apply to the words "board" or "boards" when used in RCW 41.06.070.

      (3) "Classified service" means all positions in the state service subject to the provisions of this chapter.

      (4) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment.

      (5) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions.

      (6) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required.

      (7) "Department" means an agency of government that has as its governing officer a person, or combination of persons such as a commission, board, or council, by law empowered to operate the agency responsible either to (a) no other public officer or (b) the governor.

      (8) "Career development" means the progressive development of employee capabilities to facilitate productivity, job satisfaction, and upward mobility through work assignments as well as education and training that are both state-sponsored and are achieved by individual employee efforts, all of which shall be consistent with the needs and obligations of the state and its agencies.

      (9) "Training" means activities designed to develop job-related knowledge and skills of employees.

      (10) "Director" means the human resources director ((of personnel appointed under the provisions of RCW 41.06.130)) within the office of financial management and appointed under section 430 of this act.

      (11) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities.  It shall not mean any sort of quota system.

      (12) "Institutions of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washing­ton University, Western Washington University, The Evergreen State College, and the various state community colleges.

      (13) "Related boards" means the state board for community and technical colleges; and such other boards, councils, and commissions related to higher education as may be established.

Sec. 402.  RCW 41.06.076 and 1997 c 386 s 1 are each amended to read as follows:

      In addition to the exemptions set forth in RCW 41.06.070, the provisions of this chapter shall not apply in the department of social and health services to the secretary; the secretary's executive assistant, if any; not to exceed six assistant secretaries, thirteen division directors, six regional directors; one confidential secretary for each of the above-named officers; not to exceed six bureau chiefs; ((all social worker V positions;)) and all superintendents of institutions of which the average daily population equals or exceeds one hundred residents((:  PROVIDED, That each such confidential secretary must meet the minimum qualifications for the class of secretary II as determined by the Washington personnel resources board.
      This section expires June 30, 2005)).

Sec. 403.  RCW 41.06.080 and 1970 ex.s. c 12 s 2 are each amended to read as follows:

      Notwithstanding the provisions of this chapter, the ((department of personnel)) office of financial management and the department of enterprise services may make ((its)) their human resource services available on request, on a reimbursable basis, to:

      (1) Either the legislative or the judicial branch of the state government;

      (2) Any county, city, town, or other municipal subdivision of the state;

      (3) The institutions of higher learning;

      (4) Any agency, class, or position set forth in RCW 41.06.070.

Sec. 404.  RCW 41.06.093 and 1993 c 281 s 24 are each amended to read as follows:

      In addition to the exemptions set forth in RCW 41.06.070, the provisions of this chapter shall not apply in the Washington state patrol to confidential secretaries of agency bureau chiefs, or their functional equivalent, and a confidential secretary for the chief of staff((:  PROVIDED, That each confidential secretary must meet the minimum qualifications for the class of secretary II as determined by the Washington personnel resources board)).

Sec. 405.  RCW 41.06.110 and 2002 c 354 s 210 are each amended to read as follows:

      (1) There is hereby created a Washington personnel resources board composed of three members appointed by the governor, subject to confirmation by the senate.  The members of the personnel board serving June 30, 1993, shall be the members of the Washington personnel resources board, and they shall complete their terms as under the personnel board.  Each odd-numbered year thereafter the governor shall appoint a member for a six-year term.  Each member shall continue to hold office after the expiration of the member's term until a successor has been appointed.  Persons so appointed shall have clearly demonstrated an interest and belief in the merit principle, shall not hold any other employment with the state, shall not have been an officer of a political party for a period of one year immediately prior to such appointment, and shall not be or become a candidate for partisan elective public office during the term to which they are appointed;

      (2) Each member of the board shall be compensated in accordance with RCW 43.03.250.  The members of the board may receive any number of daily payments for official meetings of the board actually attended.  Members of the board shall also be reimbursed for travel expenses incurred in the discharge of their official duties in accordance with RCW 43.03.050 and 43.03.060.

      (3) At its first meeting following the appointment of all of its members, and annually thereafter, the board shall elect a chair and vice chair from among its members to serve one year.  The presence of at least two members of the board shall constitute a quorum to transact business.  A written public record shall be kept by the board of all actions of the board.  The director ((of personnel)) shall serve as secretary.

      (4) The board may appoint and compensate hearing officers to hear and conduct appeals.  Such compensation shall be paid on a contractual basis for each hearing, in accordance with the provisions of chapter 43.88 RCW and rules adopted pursuant thereto, as they relate to personal service contracts.

Sec. 406.  RCW 41.06.120 and 1981 c 311 s 17 are each amended to read as follows:

      (1) In the necessary conduct of its work, the board shall meet monthly unless there is no pending business requiring board action and may hold hearings, such hearings to be called by (a) the chairman of the board, or (b) a majority of the members of the board.  An official notice of the calling of the hearing shall be filed with the secretary, and all members shall be notified of the hearing within a reasonable period of time prior to its convening.

      (2) No release of material or statement of findings shall be made except with the approval of a majority of the board;

      (3) In the conduct of hearings or investigations, a member of the board or the director ((of personnel)), or the hearing officer, may administer oaths.

Sec. 407.  RCW 41.06.133 and 2010 c 2 s 3 and 2010 c 1 s 2 are each reenacted and amended to read as follows:

      (1) The director shall adopt rules, consistent with the purposes and provisions of this chapter and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

      (a) The reduction, dismissal, suspension, or demotion of an employee;

      (b) Training and career development;

      (c) Probationary periods of six to twelve months and rejections of probationary employees, depending on the job requirements of the class, except ((that)) as follows:
      (i) Entry level state park rangers shall serve a probationary period of twelve months; and
      (ii) The probationary period of campus police officer appointees who are required to attend the Washington state criminal justice training commission basic law enforcement academy shall extend from the date of appointment until twelve months from the date of successful completion of the basic law enforcement academy, or twelve months from the date of appointment if academy training is not required.  The director shall adopt rules to ensure that employees promoting to campus police officer who are required to attend the Washington state criminal justice training commission basic law enforcement academy shall have the trial service period extend from the date of appointment until twelve months from the date of successful completion of the basic law enforcement academy, or twelve months from the date of appointment if academy training is not required;

      (d) Transfers;

      (e) Promotional preferences;

      (f) Sick leaves and vacations;

      (g) Hours of work;

      (h) Layoffs when necessary and subsequent reemployment, except for the financial basis for layoffs;

      (i) The number of names to be certified for vacancies;

      (j) Adoption and revision of a state salary schedule to reflect the prevailing rates in Washington state private industries and other governmental units.  The rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 41.06.155 and, for institutions of higher education and related boards, shall be competitive for positions of a similar nature in the state or the locality in which an institution of higher education or related board is located.  Such adoption and revision is subject to approval by the director of financial management in accordance with chapter 43.88 RCW;

      (k) Increment increases within the series of steps for each pay grade based on length of service for all employees whose standards of performance are such as to permit them to retain job status in the classified service.  From February 18, 2009, through June 30, 2011, a salary or wage increase shall not be granted to any exempt position under this chapter, except that a salary or wage increase may be granted to employees pursuant to collective bargaining agreements negotiated under chapter 28B.52, 41.56, 47.64, or 41.76 RCW, or negotiated by the nonprofit corporation formed under chapter 67.40 RCW, and except that increases may be granted for positions for which the employer has demonstrated difficulty retaining qualified employees if the following conditions are met:

      (i) The salary increase can be paid within existing resources; and

      (ii) The salary increase will not adversely impact the provision of client services;

      Any agency granting a salary increase from February 15, 2010, through June 30, 2011, to a position exempt under this chapter shall submit a report to the fiscal committees of the legislature no later than July 31, 2011, detailing the positions for which salary increases were granted, the size of the increases, and the reasons for giving the increases;

      (l) Optional lump sum relocation compensation approved by the agency director, whenever it is reasonably necessary that a person make a domiciliary move in accepting a transfer or other employment with the state.  An agency must provide lump sum compensation within existing resources.  If the person receiving the relocation payment terminates or causes termination with the state, for reasons other than layoff, disability separation, or other good cause as determined by an agency director, within one year of the date of the employment, the state is entitled to reimbursement of the lump sum compensation from the person;

      (m) Providing for veteran's preference as required by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and their surviving spouses by giving such eligible veterans and their surviving spouses additional credit in computing their seniority by adding to their unbroken state service, as defined by the director, the veteran's service in the military not to exceed five years.  For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service, has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given.  However, the surviving spouse of a veteran is entitled to the benefits of this section regardless of the veteran's length of active military service.  For the purposes of this section, "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month.

      (2) Rules adopted under this section by the director shall provide for local administration and management by the institutions of higher education and related boards, subject to periodic audit and review by the director.

      (3) Rules adopted by the director under this section may be superseded by the provisions of a collective bargaining agreement negotiated under RCW 41.80.001 and 41.80.010 through 41.80.130.  The supersession of such rules shall only affect employees in the respective collective bargaining units.

      (4)(a) The director shall require that each state agency report annually the following data:

      (i) The number of classified, Washington management service, and exempt employees in the agency and the change compared to the previous report;

      (ii) The number of bonuses and performance-based incentives awarded to agency staff and the base wages of such employees; and

      (iii) The cost of each bonus or incentive awarded.

      (b) A report that compiles the data in (a) of this subsection for all agencies will be provided annually to the governor and the appropriate committees of the legislature and must be posted for the public on the ((department of personnel's)) office of financial management's agency web site.

      (5) From February 15, 2010, until June 30, 2011, no monetary performance-based awards or incentives may be granted by the director or employers to employees covered by rules adopted under this section.  This subsection does not prohibit the payment of awards provided for in chapter 41.60 RCW.

Sec. 408.  RCW 41.06.142 and 2008 c 267 s 9 are each amended to read as follows:

      (1) Any department, agency, or institution of higher education may purchase services, including services that have been customarily and historically provided by employees in the classified service under this chapter, by contracting with individuals, nonprofit organizations, businesses, employee business units, or other entities if the following criteria are met:

      (a) The invitation for bid or request for proposal contains measurable standards for the performance of the contract;

      (b) Employees in the classified service whose positions or work would be displaced by the contract are provided an opportunity to offer alternatives to purchasing services by contract and, if these alternatives are not accepted, compete for the contract under competitive contracting procedures in subsection (4) of this section;

      (c) The contract with an entity other than an employee business unit includes a provision requiring the entity to consider employment of state employees who may be displaced by the contract;

      (d) The department, agency, or institution of higher education has established a contract monitoring process to measure contract performance, costs, service delivery quality, and other contract standards, and to cancel contracts that do not meet those standards; and

      (e) The department, agency, or institution of higher education has determined that the contract results in savings or efficiency improvements.  The contracting agency must consider the consequences and potential mitigation of improper or failed performance by the contractor.

      (2) Any provision contrary to or in conflict with this section in any collective bargaining agreement in effect on July 1, 2005, is not effective beyond the expiration date of the agreement.

      (3) Contracting for services that is expressly mandated by the legislature or was authorized by law prior to July 1, 2005, including contracts and agreements between public entities, shall not be subject to the processes set forth in subsections (1), (4), and (5) of this section.

      (4) Competitive contracting shall be implemented as follows:

      (a) At least ninety days prior to the date the contracting agency requests bids from private entities for a contract for services provided by classified employees, the contracting agency shall notify the classified employees whose positions or work would be displaced by the contract.  The employees shall have sixty days from the date of notification to offer alternatives to purchasing services by contract, and the agency shall consider the alternatives before requesting bids.

      (b) If the employees decide to compete for the contract, they shall notify the contracting agency of their decision.  Employees must form one or more employee business units for the purpose of submitting a bid or bids to perform the services.

      (c) The ((director of personnel)) department of enterprise services, with the advice and assistance of the ((department of general administration)) office of financial management, shall develop and make available to employee business units training in the bidding process and general bid preparation.

      (d) The director of ((general administration)) enterprise services, with the advice and assistance of the ((department of personnel)) office of financial management, shall, by rule, establish procedures to ensure that bids are submitted and evaluated in a fair and objective manner and that there exists a competitive market for the service.  Such rules shall include, but not be limited to:  (i) Prohibitions against participation in the bid evaluation process by employees who prepared the business unit's bid or who perform any of the services to be contracted; (ii) provisions to ensure no bidder receives an advantage over other bidders and that bid requirements are applied equitably to all parties; and (iii) procedures that require the contracting agency to receive complaints regarding the bidding process and to consider them before awarding the contract.  Appeal of an agency's actions under this subsection is an adjudicative proceeding and subject to the applicable provisions of chapter 34.05 RCW, the administrative procedure act, with the final decision to be rendered by an administrative law judge assigned under chapter 34.12 RCW.

      (e) An employee business unit's bid must include the fully allocated costs of the service, including the cost of the employees' salaries and benefits, space, equipment, materials, and other costs necessary to perform the function.  An employee business unit's cost shall not include the state's indirect overhead costs unless those costs can be attributed directly to the function in question and would not exist if that function were not performed in state service.

      (f) A department, agency, or institution of higher education may contract with the department of ((general administration)) enterprise services to conduct the bidding process.

      (5) As used in this section:

      (a) "Employee business unit" means a group of employees who perform services to be contracted under this section and who submit a bid for the performance of those services under subsection (4) of this section.

      (b) "Indirect overhead costs" means the pro rata share of existing agency administrative salaries and benefits, and rent, equipment costs, utilities, and materials associated with those administrative functions.

      (c) "Competitive contracting" means the process by which classified employees of a department, agency, or institution of higher education compete with businesses, individuals, nonprofit organizations, or other entities for contracts authorized by subsection (1) of this section.

      (6) The ((requirements)) processes set forth in subsections (1), (4), and (5) of this section do not apply to:
      (a) RCW 74.13.031(5);
      (b) The acquisition of printing services by a state agency pursuant to RCW 43.78.030 (as recodified by this act);
      (c) Contracting out provisions in section 104 of this act until June 30, 2018.  Any services contracted out under the provisions of section 104 of this act will continue to be exempted until the existing contract expires.

Sec. 409.  RCW 41.06.150 and 2002 c 371 s 906, 2002 c 354 s 203, 2002 c 354 s 202, and 2002 c 110 s 1 are each reenacted and amended to read as follows:

      The director shall adopt rules, consistent with the purposes and provisions of this chapter and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

      (1) Certification of names for vacancies;

      (2) Examinations for all positions in the competitive and noncompetitive service;

      (3) Appointments;

      (4) ((Adoption and revision of a comprehensive classification plan, in accordance with rules adopted by the board under RCW 41.06.136, for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position and allocation and reallocation of positions within the classification plan.
      (a) The director shall not adopt job classification revisions or class studies unless implementation of the proposed revision or study will result in net cost savings, increased efficiencies, or improved management of personnel or services, and the proposed revision or study has been approved by the director of financial management in accordance with chapter 43.88 RCW.
      (b) Reclassifications, class studies, and salary adjustments are governed by (a) of this subsection and RCW 41.06.152;
      (5))) Permitting agency heads to delegate the authority to appoint, reduce, dismiss, suspend, or demote employees within their agencies if such agency heads do not have specific statutory authority to so delegate:  PROVIDED, That the director may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

      (((6))) (5) Assuring persons who are or have been employed in classified positions before July 1, 1993, will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter;

      (((7))) (6) Affirmative action in appointment, promotion, transfer, recruitment, training, and career development; development and implementation of affirmative action goals and timetables; and monitoring of progress against those goals and timetables.

      The director shall consult with the human rights commission in the development of rules pertaining to affirmative action.  ((The department of personnel shall transmit a report annually to the human rights commission which states the progress each state agency has made in meeting affirmative action goals and timetables.))

      Rules adopted under this section by the director shall provide for local administration and management by the institutions of higher education and related boards, subject to periodic audit and review by the director.

Sec. 410.  RCW 41.06.152 and 2007 c 489 s 1 are each amended to read as follows:

      (1) The director shall adopt only those job classification revisions, class studies, and salary adjustments under ((RCW 41.06.150(4))) section 411 of this act that:

      (a) As defined by the director, are due to documented recruitment or retention difficulties, salary compression or inversion, classification plan maintenance, higher level duties and responsibilities, or inequities; and

      (b) Are such that the office of financial management has reviewed the affected agency's fiscal impact statement and has concurred that the affected agency can absorb the biennialized cost of the reclassification, class study, or salary adjustment within the agency's current authorized level of funding for the current fiscal biennium and subsequent fiscal biennia.

      (2) This section does not apply to the higher education hospital special pay plan or to any adjustments to the classification plan under ((RCW 41.06.150(4))) section 411 of this act that are due to emergent conditions.  Emergent conditions are defined as emergency conditions requiring the establishment of positions necessary for the preservation of the public health, safety, or general welfare.

NEW SECTION.  Sec. 411.  A new section is added to chapter 41.06 RCW to read as follows:

      (1) To promote the most effective use of the state's workforce and improve the effectiveness and efficiency of the delivery of services to the citizens of the state, the director shall adopt and maintain a comprehensive classification plan for all positions in the classified service.  The classification plan must:

      (a) Be simple and streamlined;

      (b) Support state agencies in responding to changing technologies, economic and social conditions, and the needs of its citizens;

      (c) Value workplace diversity;

      (d) Facilitate the reorganization and decentralization of governmental services;

      (e) Enhance mobility and career advancement opportunities; and

      (f) Consider rates in other public employment and private employment in the state.

      (2) An appointing authority and an employee organization representing classified employees of the appointing authority for collective bargaining purposes may jointly request the human resources director to initiate a classification study.

      (3) For institutions of higher education and related boards, the director may adopt special salary ranges to be competitive with positions of a similar nature in the state or the locality in which the institution of higher education or related board is located.

      (4) The director may undertake salary surveys of positions in other public and private employment to establish market rates.  Any salary survey information collected from private employers which identifies a specific employer with salary rates which the employer pays to its employees shall not be subject to public disclosure under chapter 42.56 RCW.

NEW SECTION.  Sec. 412.  A new section is added to chapter 41.06 RCW to read as follows:

      The director of financial management shall adopt and maintain a state salary schedule.  Such adoption and revision is subject to approval by the director in accordance with chapter 43.88 RCW.

Sec. 413.  RCW 41.06.167 and 2005 c 274 s 279 are each amended to read as follows:

      The ((department of personnel)) human resources director shall undertake comprehensive compensation surveys for officers and entry- level officer candidates of the Washington state patrol, with such surveys to be conducted in the year prior to the convening of every other one hundred five day regular session of the state legislature.  Salary and fringe benefit survey information collected from private employers which identifies a specific employer with the salary and fringe benefit rates which that employer pays to its employees shall not be subject to public disclosure under chapter 42.56 RCW.

Sec. 414.  RCW 41.06.169 and 1985 c 461 s 3 are each amended to read as follows:

      After consultation with state agency heads, employee organizations, and other interested parties, the ((state personnel)) director shall develop standardized employee performance evaluation procedures and forms which shall be used by state agencies for the appraisal of employee job performance at least annually.  These procedures shall include means whereby individual agencies may supplement the standardized evaluation process with special performance factors peculiar to specific organizational needs.  Performance evaluation procedures shall place primary emphasis on recording how well the employee has contributed to efficiency, effectiveness, and economy in fulfilling state agency and job objectives.

Sec. 415.  RCW 41.06.170 and 2009 c 534 s 3 are each amended to read as follows:

      (1) The director, in the adoption of rules governing suspensions for cause, shall not authorize an appointing authority to suspend an employee for more than fifteen calendar days as a single penalty or more than thirty calendar days in any one calendar year as an accumulation of several penalties.  The director shall require that the appointing authority give written notice to the employee not later than one day after the suspension takes effect, stating the reasons for and the duration thereof.

      (2) Any employee who is reduced, dismissed, suspended, or demoted, after completing his or her probationary period of service as provided by the rules of the director, or any employee who is adversely affected by a violation of the state civil service law, chapter 41.06 RCW, or rules adopted under it, shall have the right to appeal, either individually or through his or her authorized representative, not later than thirty days after the effective date of such action ((to the personnel appeals board through June 30, 2005, and)) to the Washington personnel resources board ((after June 30, 2005)).  The employee shall be furnished with specified charges in writing when a reduction, dismissal, suspension, or demotion action is taken.  Such appeal shall be in writing.  Decisions of the Washington personnel resources board on appeals filed after June 30, 2005, shall be final and not subject to further appeal.

      (3) Any employee whose position has been exempted after July 1, 1993, shall have the right to appeal, either individually or through his or her authorized representative, not later than thirty days after the effective date of such action to the ((personnel appeals board through June 30, 2005, and to the)) Washington personnel resources board ((after June 30, 2005)).  If the position being exempted is vacant, the exclusive bargaining unit representative may act in lieu of an employee for the purposes of appeal.

      (4) An employee incumbent in a position at the time of its allocation or reallocation, or the agency utilizing the position, may appeal the allocation or reallocation to the ((personnel appeals board through December 31, 2005, and to the)) Washington personnel resources board ((after December 31, 2005)).  Notice of such appeal must be filed in writing within thirty days of the action from which appeal is taken.

      (5) Subsections (1) and (2) of this section do not apply to any employee who is subject to the provisions of a collective bargaining agreement negotiated under RCW 41.80.001 and 41.80.010 through 41.80.130.

Sec. 416.  RCW 41.06.220 and 1961 c 1 s 22 are each amended to read as follows:

      (((1) An employee who is terminated from state service may request the board to place his name on an appropriate reemployment list and the board shall grant this request where the circumstances are found to warrant reemployment.
      (2))) Any employee, when fully reinstated after appeal, shall be guaranteed all employee rights and benefits, including back pay, sick leave, vacation accrual, retirement and OASDI credits.

Sec. 417.  RCW 41.06.260 and 1961 c 1 s 26 are each amended to read as follows:

      If any part of this chapter shall be found to be in conflict with federal requirements which are a condition precedent to the allocation of federal funds to the state, such conflicting part of this chapter is hereby declared to be inoperative solely to the extent of such conflict and with respect to the agencies directly affected, and such findings or determination shall not affect the operation of the remainder of this chapter in its application to the agencies concerned.  The ((board)) office of financial management and the department of enterprise services, as appropriate, shall make such rules and regulations as may be necessary to meet federal requirements which are a condition precedent to the receipt of federal funds by the state.

Sec. 418.  RCW 41.06.270 and 2002 c 354 s 217 are each amended to read as follows:

      A disbursing officer shall not pay any employee holding a position covered by this chapter unless the employment is in accordance with this chapter or the rules, regulations and orders issued hereunder.  The directors of ((personnel)) enterprise services and financial management shall jointly establish procedures for the certification of payrolls.

Sec. 419.  RCW 41.06.280 and 1993 c 379 s 309 are each amended to read as follows:

      There is hereby created a fund within the state treasury, designated as the "((department of)) personnel service fund," to be used by the ((board)) office of financial management and the department of enterprise services as a revolving fund for the payment of salaries, wages, and operations required for the administration of the provisions of this chapter, applicable provisions of chapter 41.04 RCW, and chapter 41.60 RCW.  An amount not to exceed one and one-half percent of the ((approved allotments of)) salaries and wages for all positions in the classified service in each of the agencies subject to this chapter, except the institutions of higher education, shall be charged to the operations appropriations of each agency and credited to the ((department of)) personnel service fund as the allotments are approved pursuant to chapter 43.88 RCW.  Subject to the above limitations, the amount shall be charged against the allotments pro rata, at a rate to be fixed by the director from time to time which, together with income derived from services rendered under RCW 41.06.080, will provide the ((department)) office of financial management and the department of enterprise services with funds to meet its anticipated expenditures during the allotment period, including the training requirements in RCW 41.06.50041.06.530‌.

      The director ((of personnel)) shall fix the terms and charges for services rendered by the department of ((personnel)) enterprise services and the office of financial management pursuant to RCW 41.06.080, which amounts shall be credited to the ((department of)) personnel service fund and charged against the proper fund or appropriation of the recipient of such services on a ((quarterly)) monthly basis.  Payment for services so rendered under RCW 41.06.080 shall be made on a ((quarterly)) monthly basis to the state treasurer and deposited ((by him)) in the ((department of)) personnel service fund.

      Moneys from the ((department of)) personnel service fund shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the ((board)) office of financial management and the department of enterprise services.

Sec. 420.  RCW 41.06.285 and 1998 c 245 s 41 are each amended to read as follows:

      (1) There is hereby created a fund within the state treasury, designated as the "higher education personnel service fund," to be used by the ((board)) office of financial management as a revolving fund for the payment of salaries, wages, and operations required for the administration of ((institutions of higher education and related boards, the budget for which shall be subject to review and approval and appropriation by the legislature)) the provisions of chapter 41.06 RCW and applicable provisions of chapters 41.04 and 41.60 RCW.  Subject to the requirements of subsection (2) of this section, an amount not to exceed one-half of one percent of the salaries and wages for all positions in the classified service shall be contributed from the operations appropriations of each institution and the state board for community and technical colleges and credited to the higher education personnel service fund as such allotments are approved pursuant to chapter 43.88 RCW.  Subject to the above limitations, such amount shall be charged against the allotments pro rata, at a rate to be fixed by the director of financial management from time to time, which will provide the ((board)) office of financial management with funds to meet its anticipated expenditures during the allotment period.

      (2) If employees of institutions of higher education cease to be classified under this chapter pursuant to an agreement authorized by RCW 41.56.201, each institution of higher education and the state board for community and technical colleges shall continue, for six months after the effective date of the agreement, to make contributions to the higher education personnel service fund based on employee salaries and wages that includes the employees under the agreement.  At the expiration of the six-month period, the director of financial management shall make across-the-board reductions in allotments of the higher education personnel service fund for the remainder of the biennium so that the charge to the institutions of higher education and state board for community and technical colleges based on the salaries and wages of the remaining employees of institutions of higher education and related boards classified under this chapter does not increase during the biennium, unless an increase is authorized by the legislature.

      (3) Moneys from the higher education personnel service fund shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the ((board)) office of financial management.

Sec. 421.  RCW 41.06.350 and 2002 c 354 s 218 are each amended to read as follows:

      The director is authorized to receive federal funds now available or hereafter made available for the assistance and improvement of public personnel administration, which may be expended in addition to the ((department of)) personnel service fund established by RCW 41.06.280.

Sec. 422.  RCW 41.06.395 and 2007 c 76 s 1 are each amended to read as follows:

      The director shall adopt rules establishing guidelines for policies, procedures, and mandatory training programs on sexual harassment for state employees to be adopted by state agencies ((and establishing)).  The department of enterprise services shall establish reporting requirements for state agencies on compliance with RCW 43.01.135.

Sec. 423.  RCW 41.06.400 and 2002 c 354 s 219 are each amended to read as follows:

      (1) In addition to other powers and duties specified in this chapter, the ((director)) department of enterprise services in consultation with the office of financial management shall((,)):
      (a) By rule, prescribe the purpose and minimum standards for training and career development programs and, in so doing, regularly consult with and consider the needs of individual agencies and employees((.
      (2) In addition to other powers and duties specified in this chapter, the director shall:
      (a) Provide for the evaluation of training and career development programs and plans of agencies.  The director shall report the results of such evaluations to the agency which is the subject of the evaluation;))

      (b) Provide training and career development programs which may be conducted more efficiently and economically on an interagency basis;

      (c) Promote interagency sharing of resources for training and career development;

      (d) Monitor and review the impact of training and career development programs to ensure that the responsibilities of the state to provide equal employment opportunities are diligently carried out.

      (((3))) (2) At an agency's request, the ((director)) department of enterprise services may provide training and career development programs for an agency's internal use which may be conducted more efficiently and economically by the department of ((personnel)) enterprise services.

Sec. 424.  RCW 41.06.410 and 2002 c 354 s 220 are each amended to read as follows:

      Each agency subject to the provisions of this chapter shall:

      (1) Prepare an employee training and career development plan which shall at least meet minimum standards established by the ((director.  A copy of such plan shall be submitted to the director for purposes of administering the provisions of RCW 41.06.400(2))) department of enterprise services;

      (2) Provide for training and career development for its employees in accordance with the agency plan;

      (3) ((Report on its training and career development program operations and costs to the director in accordance with reporting procedures adopted by the director;
      (4))) Budget for training and career development in accordance with procedures of the office of financial management.

Sec. 425.  RCW 41.06.420 and 1980 c 118 s 6 are each amended to read as follows:

      (1) The ((board)) office of financial management, by rule, shall prescribe the conditions under which an employee appointed to a supervisory or management position after June 12, 1980, shall be required to successfully complete an entry-level management training course as approved by the director.  Such training shall not be required of any employee who has completed a management training course prior to the employee's appointment which is, in the judgment of the director, at least equivalent to the entry-level course required by this section.

      (2) The ((board)) office of financial management, by rule, shall establish procedures for the suspension of the entry-level training requirement in cases where the ability of an agency to perform its responsibilities is adversely affected, or for the waiver of this requirement in cases where a person has demonstrated experience as a substitute for training.

      (3) Agencies subject to the provisions of this chapter, in accordance with rules prescribed by the ((board)) office of financial management, shall designate individual positions, or groups of positions, as being "supervisory" or "management" positions.  Such designations shall be subject to review by the director ((as part of the director's evaluation of training and career development programs prescribed by RCW 41.06.400(2))).

Sec. 426.  RCW 41.06.476 and 2001 c 296 s 6 are each amended to read as follows:

      (1) The ((board)) office of financial management shall amend any existing rules established under RCW 41.06.475 and adopt rules developed in cooperation and agreement with the department of social and health services to implement the provisions of chapter 296, Laws of 2001.

      (2) The legislature's delegation of authority to the agency under chapter 296, Laws of 2001 is strictly limited to:

      (a) The minimum delegation necessary to administer the clear and unambiguous directives of chapter 296, Laws of 2001; and

      (b) The administration of circumstances and behaviors foreseeable at the time of enactment.

Sec. 427.  RCW 41.06.490 and 2002 c 354 s 223 are each amended to read as follows:

      (((1))) In addition to the rules adopted under RCW 41.06.150, the director shall adopt rules establishing a state employee return-to-work program.  The program shall, at a minimum:

      (((a))) (1) Direct each agency to adopt a return-to-work policy.  The program shall allow each agency program to take into consideration the special nature of employment in the agency;

      (((b))) (2) Provide for eligibility in the return-to-work program, for a minimum of two years from the date the temporary disability commenced, for any permanent employee who is receiving compensation under RCW 51.32.090 and who is, by reason of his or her temporary disability, unable to return to his or her previous work, but who is physically capable of carrying out work of a lighter or modified nature;

      (((c) Allow opportunity for return-to-work statewide when appropriate job classifications are not available in the agency that is the appointing authority at the time of injury;
      (d))) (3) Require each agency to name an agency representative responsible for coordinating the return-to-work program of the agency;

      (((e))) (4) Provide that applicants receiving appointments for classified service receive an explanation of the return-to-work policy;

      (((f))) (5) Require training of supervisors on implementation of the return-to-work policy, including but not limited to assessment of the appropriateness of the return-to-work job for the employee; and

      (((g))) (6) Coordinate participation of applicable employee assistance programs, as appropriate.

      (((2) The agency full-time equivalents necessary to implement the return-to-work program established under this section shall be used only for the purposes of the return-to-work program and the net increase in full-time equivalents shall be temporary.))

Sec. 428.  RCW 41.06.510 and 1993 c 281 s 10 are each amended to read as follows:

      Each institution of higher education and each related board shall designate an officer who shall perform duties as personnel officer.  The personnel officer at each institution or related board shall direct, supervise, and manage administrative and technical personnel activities for the classified service at the institution or related board consistent with policies established by the institution or related board and in accordance with the provisions of this chapter and the rules adopted under this chapter.  Institutions may undertake jointly with one or more other institutions to appoint a person qualified to perform the duties of personnel officer, provide staff and financial support and may engage consultants to assist in the performance of specific projects.  The services of the department of ((personnel)) enterprise services and the office of financial management may also be used by the institutions or related boards pursuant to RCW 41.06.080.

      The state board for community and technical colleges shall have general supervision and control over activities undertaken by the various community colleges pursuant to this section.

Sec. 429.  RCW 41.06.530 and 1993 c 281 s 12 are each amended to read as follows:

      (1) The legislature recognizes that:

      (a) The labor market and the state government workforce are diverse in terms of gender, race, ethnicity, age, and the presence of disabilities.

      (b) The state's personnel resource and management practices must be responsive to the diverse nature of its workforce composition.

      (c) Managers in all agencies play a key role in the implementation of all critical personnel policies.

      It is therefore the policy of the state to create an organizational culture in state government that respects and values individual differences and encourages the productive potential of every employee.

      (2) To implement this policy((, the department shall)):

      (a) The office of financial management shall, in consultation with agencies, employee organizations, employees, institutions of higher education, and related boards, review civil service rules and related policies to ensure that they support the state's policy of valuing and managing diversity in the workplace; and

      (b) ((In consultation with agencies, employee organizations, and employees, institutions of higher education, and related boards, develop model policies, procedures, and technical information to be made available to such entities for the support of workplace diversity programs, including, but not limited to:
      (i) Voluntary mentorship programs;
      (ii) Alternative testing practices for persons of disability where deemed appropriate;
      (iii) Career counseling;
      (iv) Training opportunities, including management and employee awareness and skills training, English as a second language, and individual tutoring;
      (v) Recruitment strategies;
      (vi) Management performance appraisal techniques that focus on valuing and managing diversity in the workplace; and
      (vii) Alternative work arrangements;
      (c))) The department of enterprise services, in consultation with agencies, employee organizations, and employees, institutions of higher education, and related boards, develop training programs for all managers to enhance their ability to implement diversity policies and to provide a thorough grounding in all aspects of the state civil service law and merit system rules, and how the proper implementation and application thereof can facilitate and further the mission of the agency.

      (3) The department of enterprise services and the office of financial management shall coordinate implementation of this section with the ((office of financial management and)) institutions of higher education and related boards to reduce duplication of effort.

NEW SECTION.  Sec. 430.  A new section is added to chapter 43.41 RCW to read as follows:

      (1) The office of financial management shall direct and supervise the personnel policy and application of the civil service laws, chapter 41.06 RCW.

      (2) The human resources director is created in the office of financial management.  The human resources director shall be appointed by the governor, and shall serve at the pleasure of the governor.  The director shall receive a salary in an amount fixed by the governor.

      (3) The human resources director has the authority and shall perform the functions as prescribed in chapter 41.06 RCW, or as otherwise prescribed by law.

      (4) The human resources director may delegate to any agency the authority to perform administrative and technical personnel activities if the agency requests such authority and the human resources director is satisfied that the agency has the personnel management capabilities to effectively perform the delegated activities.  The human resources director shall prescribe standards and guidelines for the performance of delegated activities.  If the human resources director determines that an agency is not performing delegated activities within the prescribed standards and guidelines, the director shall withdraw the authority from the agency to perform such activities.

Sec. 431.  RCW 34.05.030 and 2006 c 300 s 4 are each amended to read as follows:

      (1) This chapter shall not apply to:

      (a) The state militia, or

      (b) The board of clemency and pardons, or

      (c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.

      (2) The provisions of RCW 34.05.410 through 34.05.598 shall not apply:

      (a) To adjudicative proceedings of the board of industrial insurance appeals except as provided in RCW 7.68.110 and 51.48.131;

      (b) Except for actions pursuant to chapter 46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;

      (c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;

      (d) To actions of the Washington personnel resources board ((or the director of personnel)), the human resources director, or the office of financial management and the department of enterprise services when carrying out their duties under chapter 41.06 RCW;

      (e) To adjustments by the department of revenue of the amount of the surcharge imposed under RCW 82.04.261; or

      (f) To the extent they are inconsistent with any provisions of chapter 43.43 RCW.

      (3) Unless a party makes an election for a formal hearing pursuant to RCW 82.03.140 or 82.03.190, RCW 34.05.410 through 34.05.598 do not apply to a review hearing conducted by the board of tax appeals.

      (4) The rule-making provisions of this chapter do not apply to:

      (a) Reimbursement unit values, fee schedules, arithmetic conversion factors, and similar arithmetic factors used to determine payment rates that apply to goods and services purchased under contract for clients eligible under chapter 74.09 RCW; and

      (b) Adjustments by the department of revenue of the amount of the surcharge imposed under RCW 82.04.261.

      (5) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the administrative procedure act, shall be subject to the entire act.

Sec. 432.  RCW 41.04.340 and 2002 c 354 s 227 are each amended to read as follows:

      (1) An attendance incentive program is established for all eligible employees.  As used in this section the term "eligible employee" means any employee of the state, other than eligible employees of the community and technical colleges and the state board for community and technical colleges identified in RCW 28B.50.553, and teaching and research faculty at the state and regional universities and The Evergreen State College, entitled to accumulate sick leave and for whom accurate sick leave records have been maintained.  No employee may receive compensation under this section for any portion of sick leave accumulated at a rate in excess of one day per month.  The state and regional universities and The Evergreen State College shall maintain complete and accurate sick leave records for all teaching and research faculty.

      (2) In January of the year following any year in which a minimum of sixty days of sick leave is accrued, and each January thereafter, any eligible employee may receive remuneration for unused sick leave accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued sick leave in excess of sixty days.  Sick leave for which compensation has been received shall be deducted from accrued sick leave at the rate of four days for every one day's monetary compensation.

      (3) At the time of separation from state service due to retirement or death, an eligible employee or the employee's estate may elect to receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days of accrued sick leave.

      (4) Remuneration or benefits received under this section shall not be included for the purpose of computing a retirement allowance under any public retirement system in this state.

      (5) Except as provided in subsections (7) through (9) of this section for employees not covered by chapter 41.06 RCW, this section shall be administered, and rules shall be adopted to carry out its purposes, by the human resources director ((of personnel)) for persons subject to chapter 41.06 RCW:  PROVIDED, That determination of classes of eligible employees shall be subject to approval by the office of financial management.

      (6) Should the legislature revoke any remuneration or benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right.

      (7) In lieu of remuneration for unused sick leave at retirement as provided in subsection (3) of this section, an agency head or designee may with equivalent funds, provide eligible employees with a benefit plan that provides for reimbursement for medical expenses.  This plan shall be implemented only after consultation with affected groups of employees.  For eligible employees covered by chapter 41.06 RCW, procedures for the implementation of these plans shall be adopted by the human resources director ((of personnel)).  For eligible employees exempt from chapter 41.06 RCW, and classified employees who have opted out of coverage of chapter 41.06 RCW as provided in RCW 41.56.201, implementation procedures shall be adopted by an agency head having jurisdiction over the employees.

      (8) Implementing procedures adopted by the human resources director ((of personnel)) or agency heads shall require that each medical expense plan authorized by subsection (7) of this section apply to all eligible employees in any one of the following groups:  (a) Employees in an agency; (b) employees in a major organizational subdivision of an agency; (c) employees at a major operating location of an agency; (d) exempt employees under the jurisdiction of an elected or appointed Washington state executive; (e) employees of the Washington state senate; (f) employees of the Washington state house of representatives; (g) classified employees in a bargaining unit established by the director of personnel; or (h) other group of employees defined by an agency head that is not designed to provide an individual-employee choice regarding participation in a medical expense plan.  However, medical expense plans for eligible employees in any of the groups under (a) through (h) of this subsection who are covered by a collective bargaining agreement shall be implemented only by written agreement with the bargaining unit's exclusive representative and a separate medical expense plan may be provided for unrepresented employees.

      (9) Medical expense plans authorized by subsection (7) of this section must require as a condition of participation in the plan that employees in the group affected by the plan sign an agreement with the employer.  The agreement must include a provision to hold the employer harmless should the United States government find that the employer or the employee is in debt to the United States as a result of the employee not paying income taxes due on the equivalent funds placed into the plan, or as a result of the employer not withholding or deducting a tax, assessment, or other payment on the funds as required by federal law.  The agreement must also include a provision that requires an eligible employee to forfeit remuneration under subsection (3) of this section if the employee belongs to a group that has been designated to participate in the medical expense plan permitted under this section and the employee refuses to execute the required agreement.

Sec. 433.  RCW 41.04.385 and 2006 c 265 s 201 are each amended to read as follows:

      The legislature finds that (1) demographic, economic, and social trends underlie a critical and increasing demand for child care in the state of Washington; (2) working parents and their children benefit when the employees' child care needs have been resolved; (3) the state of Washington should serve as a model employer by creating a supportive atmosphere, to the extent feasible, in which its employees may meet their child care needs; and (4) the state of Washington should encourage the development of partnerships between state agencies, state employees, state employee labor organizations, and private employers to expand the availability of affordable quality child care.  The legislature finds further that resolving employee child care concerns not only benefits the employees and their children, but may benefit the employer by reducing absenteeism, increasing employee productivity, improving morale, and enhancing the employer's position in recruiting and retaining employees.  Therefore, the legislature declares that it is the policy of the state of Washington to assist state employees by creating a supportive atmosphere in which they may meet their child care needs.  Policies and procedures for state agencies to address employee child care needs will be the responsibility of the director of ((personnel)) enterprise services in consultation with the director of the department of early learning and state employee representatives.

Sec. 434.  RCW 41.04.395 and 1994 sp.s. c 9 s 801 are each amended to read as follows:

      (1) The disability accommodation revolving fund is created in the custody of the state treasurer.  Disbursements from the fund shall be on authorization of the director of ((the department of personnel)) financial management or the director's designee.  The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.  The fund shall be used exclusively by state agencies to accommodate the unanticipated job site or equipment needs of persons of disability in state employ.

      (2) The director of ((the department of personnel)) financial management or the director's designee shall consult with the governor's committee on disability issues and employment regarding requests for disbursements from the disability accommodation revolving fund.  The department shall establish application procedures, adopt criteria, and provide technical assistance to users of the fund.

      (3) Agencies that receive moneys from the disability accommodation revolving fund shall return to the fund the amount received from the fund by no later than the end of the first month of the following fiscal biennium.

Sec. 435.  RCW 41.04.665 and 2010 1st sp.s. c 32 s 10 and 2010 c 168 s 1 are each reenacted and amended to read as follows:

      (1) An agency head may permit an employee to receive leave under this section if:

      (a)(i) The employee suffers from, or has a relative or household member suffering from, an illness, injury, impairment, or physical or mental condition which is of an extraordinary or severe nature;

      (ii) The employee has been called to service in the uniformed services;

      (iii) A state of emergency has been declared anywhere within the United States by the federal or any state government and the employee has needed skills to assist in responding to the emergency or its aftermath and volunteers his or her services to either a governmental agency or to a nonprofit organization engaged in humanitarian relief in the devastated area, and the governmental agency or nonprofit organization accepts the employee's offer of volunteer services;

      (iv) The employee is a victim of domestic violence, sexual assault, or stalking; or

      (v) During the 2009-2011 fiscal biennium only, the employee is eligible to use leave in lieu of temporary layoff under section 3(5), chapter 32, Laws of 2010 1st sp. sess.;

      (b) The illness, injury, impairment, condition, call to service, emergency volunteer service, or consequence of domestic violence, sexual assault, temporary layoff under section 3(5), chapter 32, Laws of 2010 1st sp. sess., or stalking has caused, or is likely to cause, the employee to:

      (i) Go on leave without pay status; or

      (ii) Terminate state employment;

      (c) The employee's absence and the use of shared leave are justified;

      (d) The employee has depleted or will shortly deplete his or her:

      (i) Annual leave and sick leave reserves if he or she qualifies under (a)(i) of this subsection;

      (ii) Annual leave and paid military leave allowed under RCW 38.40.060 if he or she qualifies under (a)(ii) of this subsection; or

      (iii) Annual leave if he or she qualifies under (a)(iii), (iv), or (v) of this subsection;

      (e) The employee has abided by agency rules regarding:

      (i) Sick leave use if he or she qualifies under (a)(i) or (iv) of this subsection; or

      (ii) Military leave if he or she qualifies under (a)(ii) of this subsection; and

      (f) The employee has diligently pursued and been found to be ineligible for benefits under chapter 51.32 RCW if he or she qualifies under (a)(i) of this subsection.

      (2) The agency head shall determine the amount of leave, if any, which an employee may receive under this section.  However, an employee shall not receive a total of more than five hundred twenty-two days of leave, except that, a supervisor may authorize leave in excess of five hundred twenty-two days in extraordinary circumstances for an employee qualifying for the shared leave program because he or she is suffering from an illness, injury, impairment, or physical or mental condition which is of an extraordinary or severe nature.  Shared leave received under the uniformed service shared leave pool in RCW 41.04.685 is not included in this total.

      (3) An employee may transfer annual leave, sick leave, and his or her personal holiday, as follows:

      (a) An employee who has an accrued annual leave balance of more than ten days may request that the head of the agency for which the employee works transfer a specified amount of annual leave to another employee authorized to receive leave under subsection (1) of this section.  In no event may the employee request a transfer of an amount of leave that would result in his or her annual leave account going below ten days.  For purposes of this subsection (3)(a), annual leave does not accrue if the employee receives compensation in lieu of accumulating a balance of annual leave.

      (b) An employee may transfer a specified amount of sick leave to an employee requesting shared leave only when the donating employee retains a minimum of one hundred seventy-six hours of sick leave after the transfer.

      (c) An employee may transfer, under the provisions of this section relating to the transfer of leave, all or part of his or her personal holiday, as that term is defined under RCW 1.16.050, or as such holidays are provided to employees by agreement with a school district's board of directors if the leave transferred under this subsection does not exceed the amount of time provided for personal holidays under RCW 1.16.050.

      (4) An employee of an institution of higher education under RCW 28B.10.016, school district, or educational service district who does not accrue annual leave but does accrue sick leave and who has an accrued sick leave balance of more than twenty-two days may request that the head of the agency for which the employee works transfer a specified amount of sick leave to another employee authorized to receive leave under subsection (1) of this section.  In no event may such an employee request a transfer that would result in his or her sick leave account going below twenty-two days.  Transfers of sick leave under this subsection are limited to transfers from employees who do not accrue annual leave.  Under this subsection, "sick leave" also includes leave accrued pursuant to RCW 28A.400.300(2) or 28A.310.240(1) with compensation for illness, injury, and emergencies.

      (5) Transfers of leave made by an agency head under subsections (3) and (4) of this section shall not exceed the requested amount.

      (6) Leave transferred under this section may be transferred from employees of one agency to an employee of the same agency or, with the approval of the heads of both agencies, to an employee of another state agency.

      (7) While an employee is on leave transferred under this section, he or she shall continue to be classified as a state employee and shall receive the same treatment in respect to salary, wages, and employee benefits as the employee would normally receive if using accrued annual leave or sick leave.

      (a) All salary and wage payments made to employees while on leave transferred under this section shall be made by the agency employing the person receiving the leave.  The value of leave transferred shall be based upon the leave value of the person receiving the leave.

      (b) In the case of leave transferred by an employee of one agency to an employee of another agency, the agencies involved shall arrange for the transfer of funds and credit for the appropriate value of leave.

      (i) Pursuant to rules adopted by the office of financial management, funds shall not be transferred under this section if the transfer would violate any constitutional or statutory restrictions on the funds being transferred.

      (ii) The office of financial management may adjust the appropriation authority of an agency receiving funds under this section only if and to the extent that the agency's existing appropriation authority would prevent it from expending the funds received.

      (iii) Where any questions arise in the transfer of funds or the adjustment of appropriation authority, the director of financial management shall determine the appropriate transfer or adjustment.

      (8) Leave transferred under this section shall not be used in any calculation to determine an agency's allocation of full time equivalent staff positions.

      (9) The value of any leave transferred under this section which remains unused shall be returned at its original value to the employee or employees who transferred the leave when the agency head finds that the leave is no longer needed or will not be needed at a future time in connection with the illness or injury for which the leave was transferred or for any other qualifying condition.  Before the agency head makes a determination to return unused leave in connection with an illness or injury, or any other qualifying condition, he or she must receive from the affected employee a statement from the employee's doctor verifying that the illness or injury is resolved.  To the extent administratively feasible, the value of unused leave which was transferred by more than one employee shall be returned on a pro rata basis.

      (10) An employee who uses leave that is transferred to him or her under this section may not be required to repay the value of the leave that he or she used.

      (11) The human resources director ((of personnel)) may adopt rules as necessary to implement subsection (2)(((a) through (c))) of this section.

Sec. 436.  RCW 41.04.670 and 1993 c 281 s 18 are each amended to read as follows:

      The ((Washington personnel resources board)) office of financial management and other personnel authorities shall each adopt rules applicable to employees under their respective jurisdictions:  (1) Establishing appropriate parameters for the program which are consistent with the provisions of RCW 41.04.650 through 41.04.665; (2) providing for equivalent treatment of employees between their respective jurisdictions and allowing transfers of leave in accordance with RCW 41.04.665(5); (3) establishing procedures to ensure that the program does not significantly increase the cost of providing leave; and (4) providing for the administration of the program and providing for maintenance and collection of sufficient information on the program to allow a thorough legislative review.

Sec. 437.  RCW 41.04.680 and 2006 c 356 s 1 are each amended to read as follows:

      The ((department of personnel)) office of financial management and other personnel authorities shall adopt rules or policies governing the accumulation and use of sick leave for state agency and department employees, expressly for the establishment of a plan allowing participating employees to pool sick leave and allowing any sick leave thus pooled to be used by any participating employee who has used all of the sick leave, annual leave, and compensatory leave that has been personally accrued by him or her.  Each department or agency of the state may allow employees to participate in a sick leave pool established by the ((department of personnel)) office of financial management and other personnel authorities.

      (1) For purposes of calculating maximum sick leave that may be donated or received by any one employee, pooled sick leave:

      (a) Is counted and converted in the same manner as sick leave under the Washington state leave sharing program as provided in this chapter; and

      (b) Does not create a right to sick leave in addition to the amount that may be donated or received under the Washington state leave sharing program as provided in this chapter.

      (2) The ((department)) office of financial management and other personnel authorities, except the personnel authorities for higher education institutions, shall adopt rules which provide:

      (a) That employees are eligible to participate in the sick leave pool after one year of employment with the state or agency of the state if the employee has accrued a minimum amount of unused sick leave, to be established by rule;

      (b) That participation in the sick leave pool shall, at all times, be voluntary on the part of the employees;

      (c) That any sick leave pooled shall be removed from the personally accumulated sick leave balance of the employee contributing the leave;

      (d) That any sick leave in the pool that is used by a participating employee may be used only for the employee's personal illness, accident, or injury;

      (e) That a participating employee is not eligible to use sick leave accumulated in the pool until all of his or her personally accrued sick, annual, and compensatory leave has been used;

      (f) A maximum number of days of sick leave in the pool that any one employee may use;

      (g) That a participating employee who uses sick leave from the pool is not required to recontribute such sick leave to the pool, except as otherwise provided in this section;

      (h) That an employee who cancels his or her membership in the sick leave pool is not eligible to withdraw the days of sick leave contributed by that employee to the pool;

      (i) That an employee who transfers from one position in state government to another position in state government may transfer from one pool to another if the eligibility criteria of the pools are comparable and the administrators of the pools have agreed on a formula for transfer of credits;

      (j) That alleged abuse of the use of the sick leave pool shall be investigated, and, on a finding of wrongdoing, the employee shall repay all of the sick leave credits drawn from the sick leave pool and shall be subject to such other disciplinary action as is determined by the agency head;

      (k) That sick leave credits may be drawn from the sick leave pool by a part-time employee on a pro rata basis; and

      (l) That each department or agency shall maintain accurate and reliable records showing the amount of sick leave which has been accumulated and is unused by employees, in accordance with guidelines established by the department of personnel.

      (3) Personnel authorities for higher education institutions shall adopt policies consistent with the needs of the employees under their respective jurisdictions.

Sec. 438.  RCW 41.04.685 and 2007 c 25 s 1 are each amended to read as follows:

      (1) The uniformed service shared leave pool is created to allow employees to donate leave to be used as shared leave for any employee who has been called to service in the uniformed services and who meets the requirements of RCW 41.04.665.  Participation in the pool shall, at all times, be voluntary on the part of the employee.  The military department, in consultation with the ((department of personnel and the)) office of financial management, shall administer the uniformed service shared leave pool.

      (2) Employees as defined in subsection (10) of this section who are eligible to donate leave under RCW 41.04.665 may donate leave to the uniformed service shared leave pool.

      (3) An employee as defined in subsection (10) of this section who has been called to service in the uniformed services and is eligible for shared leave under RCW 41.04.665 may request shared leave from the uniformed service shared leave pool.

      (4) It shall be the responsibility of the employee who has been called to service to provide an earnings statement verifying military salary, orders of service, and notification of a change in orders of service or military salary.

      (5) Shared leave under this section may not be granted unless the pool has a sufficient balance to fund the requested shared leave for the expected term of service.

      (6) Shared leave paid under this section, in combination with military salary, shall not exceed the level of the employee's state monthly salary.

      (7) Any leave donated shall be removed from the personally accumulated leave balance of the employee donating the leave.

      (8) An employee who receives shared leave from the pool is not required to recontribute such leave to the pool, except as otherwise provided in this section.

      (9) Leave that may be donated or received by any one employee shall be calculated as in RCW 41.04.665.

      (10) As used in this section:

      (a) "Employee" has the meaning provided in RCW 41.04.655, except that "employee" as used in this section does not include employees of school districts and educational service districts.

      (b) "Service in the uniformed services" has the meaning provided in RCW 41.04.655.

      (c) "Military salary" includes base, specialty, and other pay, but does not include allowances such as the basic allowance for housing.

      (d) "Monthly salary" includes monthly salary and special pay and shift differential, or the monthly equivalent for hourly employees.  "Monthly salary" does not include:

      (i) Overtime pay;

      (ii) Call back pay;

      (iii) Standby pay; or

      (iv) Performance bonuses.

      (11) The ((department of personnel)) office of financial management, in consultation with the military department ((and the office of financial management)), shall adopt rules and policies governing the donation and use of shared leave from the uniformed service shared leave pool, including definitions of pay and allowances and guidelines for agencies to use in recordkeeping concerning shared leave.

      (12) Agencies shall investigate any alleged abuse of the uniformed service shared leave pool and on a finding of wrongdoing, the employee may be required to repay all of the shared leave received from the uniformed service shared leave pool.

      (13) Higher education institutions shall adopt policies consistent with the needs of the employees under their respective jurisdictions.

Sec. 439.  RCW 41.04.720 and 1990 c 60 s 303 are each amended to read as follows:

      The director of ((human resources)) enterprise services shall:

      (1) Administer the state employee assistance program to assist employees who have personal problems that adversely affect their job performance or have the potential of doing so;

      (2) Develop policies, procedures, and activities for the program;

      (3) Encourage and promote the voluntary use of the employee assistance program by increasing employee awareness and disseminating educational materials;

      (4) Provide technical assistance and training to agencies on how to use the employee assistance program;

      (5) Assist and encourage supervisors to identify and refer employees with problems that impair their performance by incorporating proper use of the program in management training, management performance criteria, ongoing communication with agencies, and other appropriate means;

      (6) Offer substance abuse prevention and awareness activities to be provided through the employee assistance program and the state employee wellness program;

      (7) Monitor and evaluate the effectiveness of the program, including the collection, analysis, and publication of relevant statistical information; and

      (8) Consult with state agencies, institutions of higher education, and employee organizations in carrying out the purposes of RCW 41.04.700 through 41.04.730.

Sec. 440.  RCW 41.04.770 and 1997 c 287 s 4 are each amended to read as follows:

      The department of social and health services and the department of ((personnel)) enterprise services shall, after consultation with supported employment provider associations and other interested parties, encourage, educate, and assist state agencies in implementing supported employment programs.  The department of ((personnel)) enterprise services shall provide human resources technical assistance to agencies implementing supported employment programs.  ((The department of personnel shall make available, upon request of the legislature, an annual report that evaluates the overall progress of supported employment in state government.))

Sec. 441.  RCW 41.07.020 and 1979 c 151 s 62 are each amended to read as follows:

      The department of ((personnel)) enterprise services is authorized to administer, maintain, and operate the central personnel-payroll system and to provide its services for any state agency designated jointly by the director of the department of ((personnel)) enterprise services and the director of financial management.

      The system shall be operated through state data processing centers.  State agencies shall convert personnel and payroll processing to the central personnel-payroll system as soon as administratively and technically feasible as determined by the office of financial management and the department of ((personnel)) enterprise services.  It is the intent of the legislature to provide, through the central personnel-payroll system, for uniform reporting to the office of financial management and to the legislature regarding salaries and related costs, and to reduce present costs of manual procedures in personnel and payroll record keeping and reporting.

Sec. 442.  RCW 41.07.030 and 1975 1st ex.s. c 239 s 3 are each amended to read as follows:

      The costs of administering, maintaining, and operating the central personnel-payroll system shall be distributed to the using state agencies.  In order to insure proper and equitable distribution of costs the department of ((personnel)) enterprise services shall utilize cost accounting procedures to identify all costs incurred in the administration, maintenance, and operation of the central personnel- payroll system.  In order to facilitate proper and equitable distribution of costs to the using state agencies the department of ((personnel)) enterprise services is authorized to utilize the data processing revolving fund created by RCW 43.105.080 (as recodified by this act) and the ((department of)) personnel service fund created by RCW 41.06.280.

Sec. 443.  RCW 41.60.015 and 2000 c 139 s 1 are each amended to read as follows:

      (1) There is hereby created the productivity board, which may also be known as the employee involvement and recognition board.  The board shall administer the employee suggestion program and the teamwork incentive program under this chapter.

      (2) The board shall be composed of:

      (a) The secretary of state who shall act as chairperson;

      (b) ((The director of personnel appointed under the provisions of RCW 41.06.130 or the director's designee;
      (c))) The director of financial management or the director's designee;

      (((d))) (c) The director of ((general administration)) enterprise services or the director's designee;

      (((e))) (d) Three persons with experience in administering incentives such as those used by industry, with the governor, lieutenant governor, and speaker of the house of representatives each appointing one person.  The governor's appointee shall be a representative of an employee organization certified as an exclusive representative of at least one bargaining unit of classified employees;

      (((f))) (e) Two persons representing state agencies and institutions with employees subject to chapter 41.06 RCW, and one person representing those subject to chapter 28B.16 RCW, both appointed by the governor; and

      (((g))) (f) In addition, the governor and board chairperson may jointly appoint persons to the board on an ad hoc basis.  Ad hoc members shall serve in an advisory capacity and shall not have the right to vote.

      Members under subsection (2)(((e)))(d) and (((f))) (e) of this section shall be appointed to serve three-year terms.

      Members of the board appointed pursuant to subsection (2)(((e)))(d) of this section may be compensated in accordance with RCW 43.03.240.  Any board member who is not a state employee may be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

Sec. 444.  RCW 41.80.005 and 2002 c 354 s 321 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Agency" means any agency as defined in RCW 41.06.020 and covered by chapter 41.06 RCW.

      (2) "Collective bargaining" means the performance of the mutual obligation of the representatives of the employer and the exclusive bargaining representative to meet at reasonable times and to bargain in good faith in an effort to reach agreement with respect to the subjects of bargaining specified under RCW 41.80.020.  The obligation to bargain does not compel either party to agree to a proposal or to make a concession, except as otherwise provided in this chapter.

      (3) "Commission" means the public employment relations commission.

      (4) "Confidential employee" means an employee who, in the regular course of his or her duties, assists in a confidential capacity persons who formulate, determine, and effectuate management policies with regard to labor relations or who, in the regular course of his or her duties, has authorized access to information relating to the effectuation or review of the employer's collective bargaining policies, or who assists or aids a manager.  "Confidential employee" also includes employees who assist assistant attorneys general who advise and represent managers or confidential employees in personnel or labor relations matters, or who advise or represent the state in tort actions.

      (5) "Director" means the director of the public employment relations commission.

      (6) "Employee" means any employee, including employees whose work has ceased in connection with the pursuit of lawful activities protected by this chapter, covered by chapter 41.06 RCW, except:

      (a) Employees covered for collective bargaining by chapter 41.56 RCW;

      (b) Confidential employees;

      (c) Members of the Washington management service;

      (d) Internal auditors in any agency; or

      (e) Any employee of the commission, the office of financial management, ((or the department of personnel)) or the office of risk management within the department of enterprise services.

      (7) "Employee organization" means any organization, union, or association in which employees participate and that exists for the purpose, in whole or in part, of collective bargaining with employers.

      (8) "Employer" means the state of Washington.

      (9) "Exclusive bargaining representative" means any employee organization that has been certified under this chapter as the representative of the employees in an appropriate bargaining unit.

      (10) "Institutions of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges.

      (11) "Labor dispute" means any controversy concerning terms, tenure, or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment with respect to the subjects of bargaining provided in this chapter, regardless of whether the disputants stand in the proximate relation of employer and employee.

      (12) "Manager" means "manager" as defined in RCW 41.06.022.

      (13) "Supervisor" means an employee who has authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, direct, reward, or discipline employees, or to adjust employee grievances, or effectively to recommend such action, if the exercise of the authority is not of a merely routine nature but requires the consistent exercise of individual judgment.  However, no employee who is a member of the Washington management service may be included in a collective bargaining unit established under this section.

      (14) "Unfair labor practice" means any unfair labor practice listed in RCW 41.80.110.

Sec. 445.  RCW 41.80.020 and 2010 c 283 s 16 are each amended to read as follows:

      (1) Except as otherwise provided in this chapter, the matters subject to bargaining include wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.

      (2) The employer is not required to bargain over matters pertaining to:

      (a) Health care benefits or other employee insurance benefits, except as required in subsection (3) of this section;

      (b) Any retirement system or retirement benefit; or

      (c) Rules of the human resources director ((of personnel)), the director of enterprise services, or the Washington personnel resources board adopted under ((section 203, chapter 354, Laws of 2002)) section 411 of this act.

      (3) Matters subject to bargaining include the number of names to be certified for vacancies, promotional preferences, and the dollar amount expended on behalf of each employee for health care benefits.  However, except as provided otherwise in this subsection for institutions of higher education, negotiations regarding the number of names to be certified for vacancies, promotional preferences, and the dollar amount expended on behalf of each employee for health care benefits shall be conducted between the employer and one coalition of all the exclusive bargaining representatives subject to this chapter.  The exclusive bargaining representatives for employees that are subject to chapter 47.64 RCW shall bargain the dollar amount expended on behalf of each employee for health care benefits with the employer as part of the coalition under this subsection.  Any such provision agreed to by the employer and the coalition shall be included in all master collective bargaining agreements negotiated by the parties.  For institutions of higher education, promotional preferences and the number of names to be certified for vacancies shall be bargained under the provisions of RCW 41.80.010(4).

      (4) The employer and the exclusive bargaining representative shall not agree to any proposal that would prevent the implementation of approved affirmative action plans or that would be inconsistent with the comparable worth agreement that provided the basis for the salary changes implemented beginning with the 1983-1985 biennium to achieve comparable worth.

      (5) The employer and the exclusive bargaining representative shall not bargain over matters pertaining to management rights established in RCW 41.80.040.

      (6) Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages, hours, and terms and conditions of employment and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail.  A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.

      (7) This section does not prohibit bargaining that affects contracts authorized by RCW 41.06.142.

Sec. 446.  RCW 42.16.010 and 2008 c 186 s 1 are each amended to read as follows:

      (1) Except as provided otherwise in subsections (2) and (3) of this section, all state officers and employees shall be paid for services rendered from the first day of the month through the fifteenth day of the month and for services rendered from the sixteenth day of the month through the last calendar day of the month.  Paydates for these two pay periods shall be established by the director of financial management through the administrative hearing process and the official paydates shall be established six months prior to the beginning of each subsequent calendar year.  Under no circumstance shall the paydate be established more than ten days after the pay period in which the wages are earned except when the designated paydate falls on Sunday, in which case the paydate shall not be later than the following Monday.  Payment shall be deemed to have been made by the established paydates if:  (a) The salary warrant is available at the geographic work location at which the warrant is normally available to the employee; or (b) the salary has been electronically transferred into the employee's account at the employee's designated financial institution; or (c) the salary warrants are mailed at least two days before the established paydate for those employees engaged in work in remote or varying locations from the geographic location at which the payroll is prepared, provided that the employee has requested payment by mail.

      The office of financial management shall develop the necessary policies and operating procedures to assure that all remuneration for services rendered including basic salary, shift differential, standby pay, overtime, penalty pay, salary due based on contractual agreements, and special pay provisions, as provided for by law, ((Washington personnel resources board rules,)) agency policy or rule, or contract, shall be available to the employee on the designated paydate.  Overtime, penalty pay, and special pay provisions may be paid by the next following paydate if the postponement of payment is attributable to:  The employee's not making a timely or accurate report of the facts which are the basis for the payment, or the employer's lack of reasonable opportunity to verify the claim.

      Compensable benefits payable because of separation from state service shall be paid with the earnings for the final period worked unless the employee separating has not provided the agency with the proper notification of intent to terminate.

      One-half of the employee's basic monthly salary shall be paid in each pay period.  Employees paid on an hourly basis or employees who work less than a full pay period shall be paid for actual salary earned.

      (2) Subsection (1) of this section shall not apply in instances where it would conflict with contractual rights or, with the approval of the office of financial management, to short-term, intermittent, noncareer state employees, to student employees of institutions of higher education, to national or state guard members participating in state active duty, and to liquor control agency managers who are paid a percentage of monthly liquor sales.

      (3) When a national or state guard member is called to participate in state active duty, the paydate shall be no more than seven days following completion of duty or the end of the pay period, whichever is first.  When the seventh day falls on Sunday, the paydate shall not be later than the following Monday.  This subsection shall apply only to the pay a national or state guard member receives from the military department for state active duty.

      (4) Notwithstanding subsections (1) and (2) of this section, a bargained contract at an institution of higher education may include a provision for paying part-time academic employees on a pay schedule that coincides with all the paydays used for full-time academic employees.

Sec. 447.  RCW 42.17.370 and 2010 1st sp.s. c 7 s 4 are each amended to read as follows:

      The commission is empowered to:

      (1) Adopt, promulgate, amend, and rescind suitable administrative rules to carry out the policies and purposes of this chapter, which rules shall be adopted under chapter 34.05 RCW.  Any rule relating to campaign finance, political advertising, or related forms that would otherwise take effect after June 30th of a general election year shall take effect no earlier than the day following the general election in that year;

      (2) Appoint and set, within the limits established by the ((department of personnel)) office of financial management under RCW 43.03.028, the compensation of an executive director who shall perform such duties and have such powers as the commission may prescribe and delegate to implement and enforce this chapter efficiently and effectively.  The commission shall not delegate its authority to adopt, amend, or rescind rules nor shall it delegate authority to determine whether an actual violation of this chapter has occurred or to assess penalties for such violations;

      (3) Prepare and publish such reports and technical studies as in its judgment will tend to promote the purposes of this chapter, including reports and statistics concerning campaign financing, lobbying, financial interests of elected officials, and enforcement of this chapter;

      (4) Make from time to time, on its own motion, audits and field investigations;

      (5) Make public the time and date of any formal hearing set to determine whether a violation has occurred, the question or questions to be considered, and the results thereof;

      (6) Administer oaths and affirmations, issue subpoenas, and compel attendance, take evidence and require the production of any books, papers, correspondence, memorandums, or other records relevant or material for the purpose of any investigation authorized under this chapter, or any other proceeding under this chapter;

      (7) Adopt and promulgate a code of fair campaign practices;

      (8) Relieve, by rule, candidates or political committees of obligations to comply with the provisions of this chapter relating to election campaigns, if they have not received contributions nor made expenditures in connection with any election campaign of more than one thousand dollars;

      (9) Adopt rules prescribing reasonable requirements for keeping accounts of and reporting on a quarterly basis costs incurred by state agencies, counties, cities, and other municipalities and political subdivisions in preparing, publishing, and distributing legislative information.  The term "legislative information," for the purposes of this subsection, means books, pamphlets, reports, and other materials prepared, published, or distributed at substantial cost, a substantial purpose of which is to influence the passage or defeat of any legislation.  The state auditor in his or her regular examination of each agency under chapter 43.09 RCW shall review the rules, accounts, and reports and make appropriate findings, comments, and recommendations in his or her examination reports concerning those agencies;

      (10) After hearing, by order approved and ratified by a majority of the membership of the commission, suspend or modify any of the reporting requirements of this chapter in a particular case if it finds that literal application of this chapter works a manifestly unreasonable hardship and if it also finds that the suspension or modification will not frustrate the purposes of the chapter.  The commission shall find that a manifestly unreasonable hardship exists if reporting the name of an entity required to be reported under RCW 42.17.241(1)(g)(ii) would be likely to adversely affect the competitive position of any entity in which the person filing the report or any member of his or her immediate family holds any office, directorship, general partnership interest, or an ownership interest of ten percent or more.  Any suspension or modification shall be only to the extent necessary to substantially relieve the hardship.  The commission shall act to suspend or modify any reporting requirements only if it determines that facts exist that are clear and convincing proof of the findings required under this section.  Requests for renewals of reporting modifications may be heard in a brief adjudicative proceeding as set forth in RCW 34.05.482 through 34.05.494 and in accordance with the standards established in this section.  No initial request may be heard in a brief adjudicative proceeding and no request for renewal may be heard in a brief adjudicative proceeding if the initial request was granted more than three years previously or if the applicant is holding an office or position of employment different from the office or position held when the initial request was granted.  The commission shall adopt administrative rules governing the proceedings.  Any citizen has standing to bring an action in Thurston county superior court to contest the propriety of any order entered under this section within one year from the date of the entry of the order; ((and))

      (11) Revise, at least once every five years but no more often than every two years, the monetary reporting thresholds and reporting code values of this chapter.  The revisions shall be only for the purpose of recognizing economic changes as reflected by an inflationary index recommended by the office of financial management.  The revisions shall be guided by the change in the index for the period commencing with the month of December preceding the last revision and concluding with the month of December preceding the month the revision is adopted.  As to each of the three general categories of this chapter (reports of campaign finance, reports of lobbyist activity, and reports of the financial affairs of elected and appointed officials), the revisions shall equally affect all thresholds within each category.  Revisions shall be adopted as rules under chapter 34.05 RCW.  The first revision authorized by this subsection shall reflect economic changes from the time of the last legislative enactment affecting the respective code or threshold through December 1985; and

      (12) Develop and provide to filers a system for certification of reports required under this chapter which are transmitted by facsimile or electronically to the commission.  Implementation of the program is contingent on the availability of funds.

Sec. 448.  RCW 42.17A.110 and 2010 1st sp.s. c 7 s 4 and 2010 c 204 s 303 are each reenacted and amended to read as follows:

      The commission is empowered to:

      (1) Adopt, promulgate, amend, and rescind suitable administrative rules to carry out the policies and purposes of this chapter, which rules shall be adopted under chapter 34.05 RCW.  Any rule relating to campaign finance, political advertising, or related forms that would otherwise take effect after June 30th of a general election year shall take effect no earlier than the day following the general election in that year;

      (2) Appoint and set, within the limits established by the ((committee on agency officials' salaries)) office of financial management under RCW 43.03.028, the compensation of an executive director who shall perform such duties and have such powers as the commission may prescribe and delegate to implement and enforce this chapter efficiently and effectively.  The commission shall not delegate its authority to adopt, amend, or rescind rules nor shall it delegate authority to determine whether an actual violation of this chapter has occurred or to assess penalties for such violations;

      (3) Prepare and publish such reports and technical studies as in its judgment will tend to promote the purposes of this chapter, including reports and statistics concerning campaign financing, lobbying, financial interests of elected officials, and enforcement of this chapter;

      (4) Make from time to time, on its own motion, audits and field investigations;

      (5) Make public the time and date of any formal hearing set to determine whether a violation has occurred, the question or questions to be considered, and the results thereof;

      (6) Administer oaths and affirmations, issue subpoenas, and compel attendance, take evidence and require the production of any books, papers, correspondence, memorandums, or other records relevant or material for the purpose of any investigation authorized under this chapter, or any other proceeding under this chapter;

      (7) Adopt and promulgate a code of fair campaign practices;

      (8) Relieve, by rule, candidates or political committees of obligations to comply with the provisions of this chapter relating to election campaigns, if they have not received contributions nor made expenditures in connection with any election campaign of more than one thousand dollars;

      (9) Adopt rules prescribing reasonable requirements for keeping accounts of and reporting on a quarterly basis costs incurred by state agencies, counties, cities, and other municipalities and political subdivisions in preparing, publishing, and distributing legislative information.  The term "legislative information," for the purposes of this subsection, means books, pamphlets, reports, and other materials prepared, published, or distributed at substantial cost, a substantial purpose of which is to influence the passage or defeat of any legislation.  The state auditor in his or her regular examination of each agency under chapter 43.09 RCW shall review the rules, accounts, and reports and make appropriate findings, comments, and recommendations in his or her examination reports concerning those agencies;

      (10) After hearing, by order approved and ratified by a majority of the membership of the commission, suspend or modify any of the reporting requirements of this chapter in a particular case if it finds that literal application of this chapter works a manifestly unreasonable hardship and if it also finds that the suspension or modification will not frustrate the purposes of the chapter.  The commission shall find that a manifestly unreasonable hardship exists if reporting the name of an entity required to be reported under RCW 42.17.241(1)(g)(ii) would be likely to adversely affect the competitive position of any entity in which the person filing the report or any member of his or her immediate family holds any office, directorship, general partnership interest, or an ownership interest of ten percent or more.  Any suspension or modification shall be only to the extent necessary to substantially relieve the hardship.  The commission shall act to suspend or modify any reporting requirements only if it determines that facts exist that are clear and convincing proof of the findings required under this section.  Requests for renewals of reporting modifications may be heard in a brief adjudicative proceeding as set forth in RCW 34.05.482 through 34.05.494 and in accordance with the standards established in this section.  No initial request may be heard in a brief adjudicative proceeding and no request for renewal may be heard in a brief adjudicative proceeding if the initial request was granted more than three years previously or if the applicant is holding an office or position of employment different from the office or position held when the initial request was granted.  The commission shall adopt administrative rules governing the proceedings.  Any citizen has standing to bring an action in Thurston county superior court to contest the propriety of any order entered under this section within one year from the date of the entry of the order; and

      (11) Revise, at least once every five years but no more often than every two years, the monetary reporting thresholds and reporting code values of this chapter.  The revisions shall be only for the purpose of recognizing economic changes as reflected by an inflationary index recommended by the office of financial management.  The revisions shall be guided by the change in the index for the period commencing with the month of December preceding the last revision and concluding with the month of December preceding the month the revision is adopted.  As to each of the three general categories of this chapter (reports of campaign finance, reports of lobbyist activity, and reports of the financial affairs of elected and appointed officials), the revisions shall equally affect all thresholds within each category.  Revisions shall be adopted as rules under chapter 34.05 RCW.  The first revision authorized by this subsection shall reflect economic changes from the time of the last legislative enactment affecting the respective code or threshold through December 1985;

      (12) Develop and provide to filers a system for certification of reports required under this chapter which are transmitted by facsimile or electronically to the commission.  Implementation of the program is contingent on the availability of funds.

Sec. 449.  RCW 43.01.040 and 2009 c 549 s 5001 are each amended to read as follows:

      Each subordinate officer and employee of the several offices, departments, and institutions of the state government shall be entitled under their contract of employment with the state government to not less than one working day of vacation leave with full pay for each month of employment if said employment is continuous for six months.

      Each such subordinate officer and employee shall be entitled under such contract of employment to not less than one additional working day of vacation with full pay each year for satisfactorily completing the first two, three and five continuous years of employment respectively.

      Such part time officers or employees of the state government who are employed on a regular schedule of duration of not less than one year shall be entitled under their contract of employment to that fractional part of the vacation leave that the total number of hours of such employment bears to the total number of hours of full time employment.

      Each subordinate officer and employee of the several offices, departments and institutions of the state government shall be entitled under his or her contract of employment with the state government to accrue unused vacation leave not to exceed thirty working days.  Officers and employees transferring within the several offices, departments and institutions of the state government shall be entitled to transfer such accrued vacation leave to each succeeding state office, department or institution.  All vacation leave shall be taken at the time convenient to the employing office, department or institution:  PROVIDED, That if a subordinate officer's or employee's request for vacation leave is deferred by reason of the convenience of the employing office, department or institution, and a statement of the necessity therefor is ((filed by such employing office, department or institution with the appropriate personnel board or other state agency or officer)) retained by the agency, then the aforesaid maximum thirty working days of accrued unused vacation leave shall be extended for each month said leave is so deferred.

Sec. 450.  RCW 43.01.135 and 2007 c 76 s 2 are each amended to read as follows:

      Agencies as defined in RCW 41.06.020, except for institutions of higher education, shall:

      (1) Update or develop and disseminate among all agency employees and contractors a policy that:

      (a) Defines and prohibits sexual harassment in the workplace;

      (b) Includes procedures that describe how the agency will address concerns of employees who are affected by sexual harassment in the workplace;

      (c) Identifies appropriate sanctions and disciplinary actions; and

      (d) Complies with guidelines adopted by the director of personnel under RCW 41.06.395;

      (2) Respond promptly and effectively to sexual harassment concerns;

      (3) Conduct training and education for all employees in order to prevent and eliminate sexual harassment in the organization;

      (4) Inform employees of their right to file a complaint with the Washington state human rights commission under chapter 49.60 RCW, or with the federal equal employment opportunity commission under Title VII of the civil rights act of 1964; and

      (5) Report to the department of ((personnel)) enterprise services on compliance with this section.

      The cost of the training programs shall be borne by state agencies within existing resources.

Sec. 451.  RCW 43.03.028 and 2010 1st sp.s. c 7 s 2 are each amended to read as follows:

      (1) The ((department of personnel)) office of financial management shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:

      The arts commission; the human rights commission; the board of accountancy; ((the board of pharmacy;)) the eastern Washington historical society; the Washington state historical society; the recreation and conservation office; the criminal justice training commission; ((the department of personnel; the state library;)) the traffic safety commission; the horse racing commission; ((the advisory council on vocational education;)) the public disclosure commission; the state conservation commission; the commission on Hispanic affairs; the commission on Asian Pacific American affairs; the state board for volunteer firefighters and reserve officers; the transportation improvement board; the public employment relations commission; ((the forest practices appeals board;)) and the energy facilities site evaluation council.

      (2) The ((department of personnel)) office of financial management shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.

Sec. 452.  RCW 43.03.120 and 2009 c 549 s 5009 are each amended to read as follows:

      Any state office, commission, department or institution may also pay the moving expenses of a new employee, necessitated by his or her acceptance of state employment, pursuant to mutual agreement with such employee in advance of his or her employment((:  PROVIDED, That if such employee is in the classified service as defined in chapter 41.06 RCW, that said employee has been duly certified from an eligible register.  No such offer or agreement for such payment shall be made to a prospective member of the classified service, prior to such certification, except through appropriate public announcement by the department of personnel, or other corresponding personnel agency as provided by chapter 41.06 RCW)).  Payment for all expenses authorized by RCW 43.03.060, 43.03.110 through 43.03.210 including moving expenses of new employees, exempt or classified, and others, shall be subject to reasonable ((regulations promulgated)) rules adopted by the director of financial management, including regulations defining allowable moving costs:  PROVIDED, That, if the new employee terminates or causes termination of his or her employment with the state within one year of the date of employment, the state shall be entitled to reimbursement for the moving costs which have been paid and may withhold such sum as necessary therefor from any amounts due the employee.

Sec. 453.  RCW 43.03.130 and 2000 c 153 s 1 are each amended to read as follows:

      Any state office, commission, department or institution may agree to pay the travel expenses of a prospective employee as an inducement for such applicant to travel to a designated place to be interviewed by and for the convenience of such agency((:  PROVIDED, That if such employment is to be in the classified service, such offer may be made only on the express authorization of the state department of personnel, or other corresponding personnel agency as provided by chapter 41.06 RCW, to applicants reporting for a merit system examination or to applicants from an eligible register reporting for a pre-employment interview)).  Travel expenses authorized for prospective employees called for interviews shall be payable at rates in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended.  When an applicant is called to be interviewed by or on behalf of more than one agency, the authorized travel expenses may be paid directly by the authorizing personnel department or agency, subject to reimbursement from the interviewing agencies on a pro rata basis.

      In the case of both classified and exempt positions, such travel expenses will be paid only for applicants being considered for the positions of director, deputy director, assistant director, or supervisor of state departments, boards or commissions; or equivalent or higher positions; or engineers, or other personnel having both executive and professional status.  In the case of the state investment board, such travel expenses may also be paid for applicants being considered for investment officer positions.  In the case of four-year institutions of higher education, such travel expenses will be paid only for applicants being considered for academic positions above the rank of instructor or professional or administrative employees in supervisory positions.  In the case of community and technical colleges, such travel expenses may be paid for applicants being considered for full-time faculty positions or administrative employees in supervisory positions.

Sec. 454.  RCW 43.06.013 and 2006 c 45 s 1 are each amended to read as follows:

      When requested by the governor or the director of the department of ((personnel)) enterprise services, nonconviction criminal history fingerprint record checks shall be conducted through the Washington state patrol identification and criminal history section and the federal bureau of investigation on applicants for agency head positions appointed by the governor.  Information received pursuant to this section shall be confidential and made available only to the governor or director of the department of personnel or their employees directly involved in the selection, hiring, or background investigation of the subject of the record check.  When necessary, applicants may be employed on a conditional basis pending completion of the criminal history record check.  "Agency head" as used in this section has the same definition as provided in RCW 34.05.010.

Sec. 455.  RCW 43.06.410 and 1993 c 281 s 47 are each amended to read as follows:

      There is established within the office of the governor the Washington state internship program to assist students and state employees in gaining valuable experience and knowledge in various areas of state government.  In administering the program, the governor shall:

      (1) Consult with the secretary of state, the director of ((personnel)) enterprise services, the commissioner of the employment security department, and representatives of labor;

      (2) Encourage and assist agencies in developing intern positions;

      (3) Develop and coordinate a selection process for placing individuals in intern positions.  This selection process shall give due regard to the responsibilities of the state to provide equal employment opportunities;

      (4) Develop and coordinate a training component of the internship program which balances the need for training and exposure to new ideas with the intern's and agency's need for on-the-job work experience;

      (5) Work with institutions of higher education in developing the program, soliciting qualified applicants, and selecting participants; and

      (6) Develop guidelines for compensation of the participants.

Sec. 456.  RCW 43.06.425 and 2002 c 354 s 229 are each amended to read as follows:

      The director of ((personnel)) financial management or the director's designee shall adopt rules to provide that:

      (1) Successful completion of an internship under RCW 43.06.420 shall be considered as employment experience at the level at which the intern was placed;

      (2) Persons leaving classified or exempt positions in state government in order to take an internship under RCW 43.06.420:  (a) Have the right of reversion to the previous position at any time during the internship or upon completion of the internship; and (b) shall continue to receive all fringe benefits as if they had never left their classified or exempt positions;

      (3) Participants in the undergraduate internship program who were not public employees prior to accepting a position in the program receive sick leave allowances commensurate with other state employees;

      (4) Participants in the executive fellows program who were not public employees prior to accepting a position in the program receive sick and vacation leave allowances commensurate with other state employees.

Sec. 457.  RCW 43.33A.100 and 2008 c 236 s 1 are each amended to read as follows:

      The state investment board shall maintain appropriate offices and employ such personnel as may be necessary to perform its duties.  Employment by the investment board shall include but not be limited to an executive director, investment officers, and a confidential secretary, which positions are exempt from classified service under chapter 41.06 RCW.  Employment of the executive director by the board shall be for a term of three years, and such employment shall be subject to confirmation of the state finance committee:  PROVIDED, That nothing shall prevent the board from dismissing the director for cause before the expiration of the term nor shall anything prohibit the board, with the confirmation of the state finance committee, from employing the same individual as director in succeeding terms.  Compensation levels for the executive director, a confidential secretary, and all investment officers, including the deputy director for investment management, employed by the investment board shall be established by the state investment board.  The investment board is authorized to maintain a retention pool within the state investment board expense account under RCW 43.33A.160, from the earnings of the funds managed by the board, pursuant to a performance management and compensation program developed by the investment board, in order to address recruitment and retention problems and to reward performance.  The compensation levels and incentive compensation for investment officers shall be limited to the average of total compensation provided by state or other public funds of similar size, based upon a biennial survey conducted by the investment board, with review and comment by the joint legislative audit and review committee.  However, in any fiscal year the incentive compensation granted by the investment board from the retention pool to investment officers pursuant to this section may not exceed thirty percent.  Disbursements from the retention pool shall be from legislative appropriations and shall be on authorization of the board's executive director or the director's designee.

      The investment board shall provide notice to ((the director of the department of personnel,)) the director of financial management((,)) and the chairs of the house of representatives and senate fiscal committees of proposed changes to the compensation levels for the positions.  The notice shall be provided not less than sixty days prior to the effective date of the proposed changes.

      As of July 1, 1981, all employees classified under chapter 41.06 RCW and engaged in duties assumed by the state investment board on July 1, 1981, are assigned to the state investment board.  The transfer shall not diminish any rights granted these employees under chapter 41.06 RCW nor exempt the employees from any action which may occur thereafter in accordance with chapter 41.06 RCW.

      All existing contracts and obligations pertaining to the functions transferred to the state investment board in chapter 3, Laws of 1981 shall remain in full force and effect, and shall be performed by the board.  None of the transfers directed by chapter 3, Laws of 1981 shall affect the validity of any act performed by a state entity or by any official or employee thereof prior to July 1, 1981.

Sec. 458.  RCW 43.130.060 and 1973 2nd ex.s. c 37 s 6 are each amended to read as follows:

      In order to reimburse the public employees' retirement system for any increased costs occasioned by the provisions of this chapter which affect the retirement system, the ((public employees' retirement board)) director of retirement systems shall, within thirty days of the date upon which any affected employee elects to take advantage of the retirement provisions of this chapter, determine the increased present and future cost to the retirement system of such employee's election.  Upon the determination of the amount necessary to offset ((said)) the increased cost, the ((retirement board)) director of retirement systems shall bill the department of ((personnel)) enterprise services for the amount of the increased cost:  PROVIDED, That such billing shall not exceed eight hundred sixty-one thousand dollars.  Such billing shall be paid by the department as, and the same shall be, a proper charge against any moneys available or appropriated to the department for this purpose.

Sec. 459.  RCW 43.131.090 and 2002 c 354 s 230 are each amended to read as follows:

      Unless the legislature specifies a shorter period of time, a terminated entity shall continue in existence until June 30th of the next succeeding year for the purpose of concluding its affairs:  PROVIDED, That the powers and authority of the entity shall not be reduced or otherwise limited during this period.  Unless otherwise provided:

      (1) All employees of terminated entities classified under chapter 41.06 RCW, the state civil service law, shall be transferred as appropriate or as otherwise provided in the procedures adopted by the human resources director ((of personnel)) pursuant to RCW 41.06.150;

      (2) All documents and papers, equipment, or other tangible property in the possession of the terminated entity shall be delivered to the custody of the entity assuming the responsibilities of the terminated entity or if such responsibilities have been eliminated, documents and papers shall be delivered to the state archivist and equipment or other tangible property to the department of ((general administration)) enterprise services;

      (3) All funds held by, or other moneys due to, the terminated entity shall revert to the fund from which they were appropriated, or if that fund is abolished to the general fund;

      (4) Notwithstanding the provisions of RCW 34.05.020, all rules made by a terminated entity shall be repealed, without further action by the entity, at the end of the period provided in this section, unless assumed and reaffirmed by the entity assuming the related legal responsibilities of the terminated entity;

      (5) All contractual rights and duties of an entity shall be assigned or delegated to the entity assuming the responsibilities of the terminated entity, or if there is none to such entity as the governor shall direct.

Sec. 460.  RCW 48.37.060 and 2008 c 100 s 2 are each amended to read as follows:

      (1) When the commissioner determines that other market conduct actions identified in RCW 48.37.040(4)(a) have not sufficiently addressed issues raised concerning company activities in Washington state, the commissioner has the discretion to conduct market conduct examinations in accordance with the NAIC market conduct uniform examination procedures and the NAIC market regulation handbook.

      (2)(a) In lieu of an examination of an insurer licensed in this state, the commissioner shall accept an examination report of another state, unless the commissioner determines that the other state does not have laws substantially similar to those of this state, or does not have a market oversight system that is comparable to the market conduct oversight system set forth in this law.

      (b) The commissioner's determination under (a) of this subsection is discretionary with the commissioner and is not subject to appeal.

      (c) If the insurer to be examined is part of an insurance holding company system, the commissioner may also seek to simultaneously examine any affiliates of the insurer under common control and management which are licensed to write the same lines of business in this state.

      (3) Before commencement of a market conduct examination, market conduct oversight personnel shall prepare a work plan consisting of the following:

      (a) The name and address of the insurer being examined;

      (b) The name and contact information of the examiner-in-charge;

      (c) The name of all market conduct oversight personnel initially assigned to the market conduct examination;

      (d) The justification for the examination;

      (e) The scope of the examination;

      (f) The date the examination is scheduled to begin;

      (g) Notice of any noninsurance department personnel who will assist in the examination;

      (h) A time estimate for the examination;

      (i) A budget for the examination if the cost of the examination is billed to the insurer; and

      (j) An identification of factors that will be included in the billing if the cost of the examination is billed to the insurer.

      (4)(a) Within ten days of the receipt of the information contained in subsection (3) of this section, insurers may request the commissioner's discretionary review of any alleged conflict of interest, pursuant to RCW 48.37.090(2), of market conduct oversight personnel and noninsurance department personnel assigned to a market conduct examination.  The request for review shall specifically describe the alleged conflict of interest in the proposed assignment of any person to the examination.

      (b) Within five business days of receiving a request for discretionary review of any alleged conflict of interest in the proposed assignment of any person to a market conduct examination, the commissioner or designee shall notify the insurer of any action regarding the assignment of personnel to a market conduct examination based on the insurer's allegation of conflict of interest.

      (5) Market conduct examinations shall, to the extent feasible, use desk examinations and data requests before an on-site examination.

      (6) Market conduct examinations shall be conducted in accordance with the provisions set forth in the NAIC market regulation handbook and the NAIC market conduct uniform examinations procedures, subject to the precedence of the provisions of chapter 82, Laws of 2007.

      (7) The commissioner shall use the NAIC standard data request.

      (8) Announcement of the examination shall be sent to the insurer and posted on the NAIC's examination tracking system as soon as possible but in no case later than sixty days before the estimated commencement of the examination, except where the examination is conducted in response to extraordinary circumstances as described in RCW 48.37.050(2)(a).  The announcement sent to the insurer shall contain the examination work plan and a request for the insurer to name its examination coordinator.

      (9) If an examination is expanded significantly beyond the original reasons provided to the insurer in the notice of the examination required by subsection (3) of this section, the commissioner shall provide written notice to the insurer, explaining the expansion and reasons for the expansion.  The commissioner shall provide a revised work plan if the expansion results in significant changes to the items presented in the original work plan required by subsection (3) of this section.

      (10) The commissioner shall conduct a preexamination conference with the insurer examination coordinator and key personnel to clarify expectations at least thirty days before commencement of the examination, unless otherwise agreed by the insurer and the commissioner.

      (11) Before the conclusion of the field work for market conduct examination, the examiner-in-charge shall review examination findings to date with insurer personnel and schedule an exit conference with the insurer, in accordance with procedures in the NAIC market regulation handbook.

      (12)(a) No later than sixty days after completion of each market conduct examination, the commissioner shall make a full written report of each market conduct examination containing only facts ascertained from the accounts, records, and documents examined and from the sworn testimony of individuals, and such conclusions and recommendations as may reasonably be warranted from such facts.

      (b) The report shall be certified by the commissioner or by the examiner-in-charge of the examination, and shall be filed in the commissioner's office subject to (c) of this subsection.

      (c) The commissioner shall furnish a copy of the market conduct examination report to the person examined not less than ten days and, unless the time is extended by the commissioner, not more than thirty days prior to the filing of the report for public inspection in the commissioner's office.  If the person so requests in writing within such period, the commissioner shall hold a hearing to consider objections of such person to the report as proposed, and shall not so file the report until after such hearing and until after any modifications in the report deemed necessary by the commissioner have been made.

      (d) Within thirty days of the end of the period described in (c) of this subsection, unless extended by order of the commissioner, the commissioner shall consider the report, together with any written submissions or rebuttals and any relevant portions of the examiner's work papers and enter an order:

      (i) Adopting the market conduct examination report as filed or with modification or corrections.  If the market conduct examination report reveals that the company is operating in violation of any law, rule, or order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure that violation;

      (ii) Rejecting the market conduct examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information, and refiling under this subsection; or

      (iii) Calling for an investigatory hearing with no less than twenty days' notice to the company for purposes of obtaining additional documentation, data, information, and testimony.

      (e) All orders entered under (d) of this subsection must be accompanied by findings and conclusions resulting from the commissioner's consideration and review of the market conduct examination report, relevant examiner work papers, and any written submissions or rebuttals.  The order is considered a final administrative decision and may be appealed under the administrative procedure act, chapter 34.05 RCW, and must be served upon the company by certified mail or certifiable electronic means, together with a copy of the adopted examination report.  A copy of the adopted examination report must be sent by certified mail or certifiable electronic means to each director at the director's residential address or to a personal e-mail account.

      (f)(i) Upon the adoption of the market conduct examination report under (d) of this subsection, the commissioner shall continue to hold the content of the examination report as private and confidential information for a period of five days except that the order may be disclosed to the person examined.  Thereafter, the commissioner may open the report for public inspection so long as no court of competent jurisdiction has stayed its publication.

      (ii) If the commissioner determines that regulatory action is appropriate as a result of any market conduct examination, he or she may initiate any proceedings or actions as provided by law.

      (iii) Nothing contained in this subsection requires the commissioner to disclose any information or records that would indicate or show the existence or content of any investigation or activity of a criminal justice agency.

      (g) The insurer's response shall be included in the commissioner's order adopting the final report as an exhibit to the order.  The insurer is not obligated to submit a response.

      (13) The commissioner may withhold from public inspection any examination or investigation report for so long as he or she deems it advisable.

      (14)(a) Market conduct examinations within this state of any insurer domiciled or having its home offices in this state, other than a title insurer, made by the commissioner or the commissioner's examiners and employees shall, except as to fees, mileage, and expense incurred as to witnesses, be at the expense of the state.

      (b) Every other examination, whatsoever, or any part of the market conduct examination of any person domiciled or having its home offices in this state requiring travel and services outside this state, shall be made by the commissioner or by examiners designated by the commissioner and shall be at the expense of the person examined; but a domestic insurer shall not be liable for the compensation of examiners employed by the commissioner for such services outside this state.

      (c) When making a market conduct examination under this chapter, the commissioner may contract, in accordance with applicable state contracting procedures, for qualified attorneys, appraisers, independent certified public accountants, contract actuaries, and other similar individuals who are independently practicing their professions, even though those persons may from time to time be similarly employed or retained by persons subject to examination under this chapter, as examiners as the commissioner deems necessary for the efficient conduct of a particular examination.  The compensation and per diem allowances paid to such contract persons shall be reasonable in the market and time incurred, shall not exceed one hundred twenty-five percent of the compensation and per diem allowances for examiners set forth in the guidelines adopted by the national association of insurance commissioners, unless the commissioner demonstrates that one hundred twenty-five percent is inadequate under the circumstances of the examination, and subject to the provisions of (a) of this subsection.

      (d)(i) The person examined and liable shall reimburse the state upon presentation of an itemized statement thereof, for the actual travel expenses of the commissioner's examiners, their reasonable living expenses allowance, and their per diem compensation, including salary and the employer's cost of employee benefits, at a reasonable rate approved by the commissioner, incurred on account of the examination.  Per diem, salary, and expenses for employees examining insurers domiciled outside the state of Washington shall be established by the commissioner on the basis of the national association of insurance commissioner's recommended salary and expense schedule for zone examiners, or the salary schedule established by the human resources director ((of the Washington department of personnel)) and the expense schedule established by the office of financial management, whichever is higher.  A domestic title insurer shall pay the examination expense and costs to the commissioner as itemized and billed by the commissioner.

      (ii) The commissioner or the commissioner's examiners shall not receive or accept any additional emolument on account of any examination.

      (iii) Market conduct examination fees subject to being reimbursed by an insurer shall be itemized and bills shall be provided to the insurer on a monthly basis for review prior to submission for payment, or as otherwise provided by state law.

      (e) Nothing contained in this chapter limits the commissioner's authority to terminate or suspend any examination in order to pursue other legal or regulatory action under the insurance laws of this state.  Findings of fact and conclusions made pursuant to any examination are prima facie evidence in any legal or regulatory action.

      (f) The commissioner shall maintain active management and oversight of market conduct examination costs, including costs associated with the commissioner's own examiners, and with retaining qualified contract examiners necessary to perform an examination.  Any agreement with a contract examiner shall:

      (i) Clearly identify the types of functions to be subject to outsourcing;

      (ii) Provide specific timelines for completion of the outsourced review;

      (iii) Require disclosure to the insurer of contract examiners' recommendations;

      (iv) Establish and use a dispute resolution or arbitration mechanism to resolve conflicts with insurers regarding examination fees; and

      (v) Require disclosure of the terms of the contracts with the outside consultants that will be used, specifically the fees and/or hourly rates that can be charged.

      (g) The commissioner, or the commissioner's designee, shall review and affirmatively endorse detailed billings from the qualified contract examiner before the detailed billings are sent to the insurer.

Sec. 461.  RCW 49.46.010 and 2010 c 160 s 2 and 2010 c 8 s 12040 are each reenacted and amended to read as follows:

      As used in this chapter:

      (1) "Director" means the director of labor and industries;

      (2) "Wage" means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director;

      (3) "Employ" includes to permit to work;

      (4) "Employer" includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee;

      (5) "Employee" includes any individual employed by an employer but shall not include:

      (a) Any individual (i) employed as a hand harvest laborer and paid on a piece rate basis in an operation which has been, and is generally and customarily recognized as having been, paid on a piece rate basis in the region of employment; (ii) who commutes daily from his or her permanent residence to the farm on which he or she is employed; and (iii) who has been employed in agriculture less than thirteen weeks during the preceding calendar year;

      (b) Any individual employed in casual labor in or about a private home, unless performed in the course of the employer's trade, business, or profession;

      (c) Any individual employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesperson as those terms are defined and delimited by rules of the director.  However, those terms shall be defined and delimited by the human resources director ((of personnel)) pursuant to chapter 41.06 RCW for employees employed under the director of personnel's jurisdiction;

      (d) Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body or agency, or nonprofit organization where the employer-employee relationship does not in fact exist or where the services are rendered to such organizations gratuitously.  If the individual receives reimbursement in lieu of compensation for normally incurred out-of-pocket expenses or receives a nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed not to exist for the purpose of this section or for purposes of membership or qualification in any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

      (e) Any individual employed full time by any state or local governmental body or agency who provides voluntary services but only with regard to the provision of the voluntary services.  The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement, or benefit rights under any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

      (f) Any newspaper vendor or carrier;

      (g) Any carrier subject to regulation by Part 1 of the Interstate Commerce Act;

      (h) Any individual engaged in forest protection and fire prevention activities;

      (i) Any individual employed by any charitable institution charged with child care responsibilities engaged primarily in the development of character or citizenship or promoting health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;

      (j) Any individual whose duties require that he or she reside or sleep at the place of his or her employment or who otherwise spends a substantial portion of his or her work time subject to call, and not engaged in the performance of active duties;

      (k) Any resident, inmate, or patient of a state, county, or municipal correctional, detention, treatment or rehabilitative institution;

      (l) Any individual who holds a public elective or appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of the state legislature;

      (m) All vessel operating crews of the Washington state ferries operated by the department of transportation;

      (n) Any individual employed as a seaman on a vessel other than an American vessel;

      (o) Any farm intern providing his or her services to a small farm which has a special certificate issued under RCW 49.12.465;

      (6) "Occupation" means any occupation, service, trade, business, industry, or branch or group of industries or employment or class of employment in which employees are gainfully employed;

      (7) "Retail or service establishment" means an establishment seventy-five percent of whose annual dollar volume of sales of goods or services, or both, is not for resale and is recognized as retail sales or services in the particular industry.

Sec. 462.  RCW 49.46.010 and 2010 c 8 s 12040 are each amended to read as follows:

      As used in this chapter:

      (1) "Director" means the director of labor and industries;

      (2) "Wage" means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director;

      (3) "Employ" includes to permit to work;

      (4) "Employer" includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee;

      (5) "Employee" includes any individual employed by an employer but shall not include:

      (a) Any individual (i) employed as a hand harvest laborer and paid on a piece rate basis in an operation which has been, and is generally and customarily recognized as having been, paid on a piece rate basis in the region of employment; (ii) who commutes daily from his or her permanent residence to the farm on which he or she is employed; and (iii) who has been employed in agriculture less than thirteen weeks during the preceding calendar year;

      (b) Any individual employed in casual labor in or about a private home, unless performed in the course of the employer's trade, business, or profession;

      (c) Any individual employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesperson as those terms are defined and delimited by rules of the director.  However, those terms shall be defined and delimited by the human resources director ((of personnel)) pursuant to chapter 41.06 RCW for employees employed under the director of personnel's jurisdiction;

      (d) Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body or agency, or nonprofit organization where the employer-employee relationship does not in fact exist or where the services are rendered to such organizations gratuitously.  If the individual receives reimbursement in lieu of compensation for normally incurred out-of-pocket expenses or receives a nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed not to exist for the purpose of this section or for purposes of membership or qualification in any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

      (e) Any individual employed full time by any state or local governmental body or agency who provides voluntary services but only with regard to the provision of the voluntary services.  The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement, or benefit rights under any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

      (f) Any newspaper vendor or carrier;

      (g) Any carrier subject to regulation by Part 1 of the Interstate Commerce Act;

      (h) Any individual engaged in forest protection and fire prevention activities;

      (i) Any individual employed by any charitable institution charged with child care responsibilities engaged primarily in the development of character or citizenship or promoting health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;

      (j) Any individual whose duties require that he or she reside or sleep at the place of his or her employment or who otherwise spends a substantial portion of his or her work time subject to call, and not engaged in the performance of active duties;

      (k) Any resident, inmate, or patient of a state, county, or municipal correctional, detention, treatment or rehabilitative institution;

      (l) Any individual who holds a public elective or appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of the state legislature;

      (m) All vessel operating crews of the Washington state ferries operated by the department of transportation;

      (n) Any individual employed as a seaman on a vessel other than an American vessel;

      (6) "Occupation" means any occupation, service, trade, business, industry, or branch or group of industries or employment or class of employment in which employees are gainfully employed;

      (7) "Retail or service establishment" means an establishment seventy-five percent of whose annual dollar volume of sales of goods or services, or both, is not for resale and is recognized as retail sales or services in the particular industry.

Sec. 463.  RCW 49.74.020 and 1993 c 281 s 57 are each amended to read as follows:

      If the commission reasonably believes that a state agency, an institution of higher education, or the state patrol has failed to comply with an affirmative action rule adopted under RCW 41.06.150 or 43.43.340, the commission shall notify the director of the state agency, president of the institution of higher education, or chief of the Washington state patrol of the noncompliance, as well as the human resources director ((of personnel)).  The commission shall give the director of the state agency, president of the institution of higher education, or chief of the Washington state patrol an opportunity to be heard on the failure to comply.

Sec. 464.  RCW 49.74.030 and 2002 c 354 s 246 are each amended to read as follows:

      The commission in conjunction with the department of ((personnel)) enterprise services, the office of financial management, or the state patrol, whichever is appropriate, shall attempt to resolve the noncompliance through conciliation.  If an agreement is reached for the elimination of noncompliance, the agreement shall be reduced to writing and an order shall be issued by the commission setting forth the terms of the agreement.  The noncomplying state agency, institution of higher education, or state patrol shall make a good faith effort to conciliate and make a full commitment to correct the noncompliance with any action that may be necessary to achieve compliance, provided such action is not inconsistent with the rules adopted under RCW 41.06.150(((6)))(5) and 43.43.340(5), whichever is appropriate.

Sec. 465.  RCW 49.90.010 and 2009 c 294 s 5 are each amended to read as follows:

      (1) Within this section, "sensory disability" means a sensory condition that materially limits, contributes to limiting, or, if not corrected or accommodated, will probably result in limiting an individual's activities or functioning.

      (2) The ((department of personnel)) office of financial management shall adopt rules that authorize state agencies to provide allowances to employees with sensory disabilities who must attend training necessary to attain a new service animal.  The employee's absence must be treated in the same manner as that granted to employees who are absent to attend training that supports or improves their job performance, except that the employee shall not be eligible for reimbursement under RCW 43.03.050 or 43.03.060.  The ((department of personnel)) office of financial management shall adopt rules as necessary to implement this chapter.

      (3) If the necessity to attend training for a new service animal is foreseeable and the training will cause the employee to miss work, the employee shall provide the employer with not less than thirty days' notice, before the date the absence is to begin, of the employee's impending absence.  If the date of the training requires the absence to begin in less than thirty days, the employee shall provide notice as is practicable.

      (4) An agency may require that a request to attend service animal training be supported by a certification issued by the relevant training organization.  The employee must provide, in a timely manner, a copy of the certification to the agency.  Certification provided under this section is sufficient if it states:  (a) The date on which the service animal training session is scheduled to commence; and (b) the session's duration.

Sec. 466.  RCW 50.13.060 and 2008 c 120 s 6 are each amended to read as follows:

      (1) Governmental agencies, including law enforcement agencies, prosecuting agencies, and the executive branch, whether state, local, or federal shall have access to information or records deemed private and confidential under this chapter if the information or records are needed by the agency for official purposes and:

      (a) The agency submits an application in writing to the employment security department for the records or information containing a statement of the official purposes for which the information or records are needed and specific identification of the records or information sought from the department; and

      (b) The director, commissioner, chief executive, or other official of the agency has verified the need for the specific information in writing either on the application or on a separate document; and

      (c) The agency requesting access has served a copy of the application for records or information on the individual or employing unit whose records or information are sought and has provided the department with proof of service.  Service shall be made in a manner which conforms to the civil rules for superior court.  The requesting agency shall include with the copy of the application a statement to the effect that the individual or employing unit may contact the public records officer of the employment security department to state any objections to the release of the records or information.  The employment security department shall not act upon the application of the requesting agency until at least five days after service on the concerned individual or employing unit.  The employment security department shall consider any objections raised by the concerned individual or employing unit in deciding whether the requesting agency needs the information or records for official purposes.

      (2) The requirements of subsections (1) and (9) of this section shall not apply to the state legislative branch.  The state legislature shall have access to information or records deemed private and confidential under this chapter, if the legislature or a legislative committee finds that the information or records are necessary and for official purposes.  If the employment security department does not make information or records available as provided in this subsection, the legislature may exercise its authority granted by chapter 44.16 RCW.

      (3) In cases of emergency the governmental agency requesting access shall not be required to formally comply with the provisions of subsection (1) of this section at the time of the request if the procedures required by subsection (1) of this section are complied with by the requesting agency following the receipt of any records or information deemed private and confidential under this chapter.  An emergency is defined as a situation in which irreparable harm or damage could occur if records or information are not released immediately.

      (4) The requirements of subsection (1)(c) of this section shall not apply to governmental agencies where the procedures would frustrate the investigation of possible violations of criminal laws or to the release of employing unit names, addresses, number of employees, and aggregate employer wage data for the purpose of state governmental agencies preparing small business economic impact statements under chapter 19.85 RCW or preparing cost-benefit analyses under RCW 34.05.328(1) (c) and (d).  Information provided by the department and held to be private and confidential under state or federal laws must not be misused or released to unauthorized parties.  A person who misuses such information or releases such information to unauthorized parties is subject to the sanctions in RCW 50.13.080.

      (5) Governmental agencies shall have access to certain records or information, limited to such items as names, addresses, social security numbers, and general information about benefit entitlement or employer information possessed by the department, for comparison purposes with records or information possessed by the requesting agency to detect improper or fraudulent claims, or to determine potential tax liability or employer compliance with registration and licensing requirements.  In those cases the governmental agency shall not be required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) of this section must be satisfied.

      (6) Governmental agencies may have access to certain records and information, limited to employer information possessed by the department for purposes authorized in chapter 50.38 RCW.  Access to these records and information is limited to only those individuals conducting authorized statistical analysis, research, and evaluation studies.  Only in cases consistent with the purposes of chapter 50.38 RCW are government agencies not required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) of this section must be satisfied.  Information provided by the department and held to be private and confidential under state or federal laws shall not be misused or released to unauthorized parties subject to the sanctions in RCW 50.13.080.

      (7) Disclosure to governmental agencies of information or records obtained by the employment security department from the federal government shall be governed by any applicable federal law or any agreement between the federal government and the employment security department where so required by federal law.  When federal law does not apply to the records or information state law shall control.

      (8) The department may provide information for purposes of statistical analysis and evaluation of the WorkFirst program or any successor state welfare program to the department of social and health services, the office of financial management, and other governmental entities with oversight or evaluation responsibilities for the program in accordance with RCW 43.20A.080.  The confidential information provided by the department shall remain the property of the department and may be used by the authorized requesting agencies only for statistical analysis, research, and evaluation purposes as provided in RCW 74.08A.410 and 74.08A.420.  The department of social and health services, the office of financial management, or other governmental entities with oversight or evaluation responsibilities for the program are not required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) of this section and applicable federal laws and regulations must be satisfied.  The confidential information used for evaluation and analysis of welfare reform supplied to the authorized requesting entities with regard to the WorkFirst program or any successor state welfare program are exempt from public inspection and copying under chapter 42.56 RCW.

      (9) The disclosure of any records or information by a governmental agency which has obtained the records or information under this section is prohibited unless the disclosure is (a) directly connected to the official purpose for which the records or information were obtained or (b) to another governmental agency which would be permitted to obtain the records or information under subsection (4) or (5) of this section.

      (10) In conducting periodic salary or fringe benefit studies pursuant to law, the ((department of personnel)) office of financial management shall have access to records of the employment security department as may be required for such studies.  For such purposes, the requirements of subsection (1)(c) of this section need not apply.

      (11)(a) To promote the reemployment of job seekers, the commissioner may enter into data-sharing contracts with partners of the one-stop career development system.  The contracts shall provide for the transfer of data only to the extent that the transfer is necessary for the efficient provisions of workforce programs, including but not limited to public labor exchange, unemployment insurance, worker training and retraining, vocational rehabilitation, vocational education, adult education, transition from public assistance, and support services.  The transfer of information under contracts with one‑stop partners is exempt from subsection (1)(c) of this section.

      (b) An individual who applies for services from the department and whose information will be shared under (a) of this subsection (11) must be notified that his or her private and confidential information in the department's records will be shared among the one-stop partners to facilitate the delivery of one-stop services to the individual.  The notice must advise the individual that he or she may request that private and confidential information not be shared among the one-stop partners and the department must honor the request.  In addition, the notice must:

      (i) Advise the individual that if he or she requests that private and confidential information not be shared among one-stop partners, the request will in no way affect eligibility for services;

      (ii) Describe the nature of the information to be shared, the general use of the information by one-stop partner representatives, and among whom the information will be shared;

      (iii) Inform the individual that shared information will be used only for the purpose of delivering one-stop services and that further disclosure of the information is prohibited under contract and is not subject to disclosure under chapter 42.56 RCW; and

      (iv) Be provided in English and an alternative language selected by the one-stop center or job service center as appropriate for the community where the center is located.

      If the notice is provided in-person, the individual who does not want private and confidential information shared among the one-stop partners must immediately advise the one-stop partner representative of that decision.  The notice must be provided to an individual who applies for services telephonically, electronically, or by mail, in a suitable format and within a reasonable time after applying for services, which shall be no later than ten working days from the department's receipt of the application for services.  A one-stop representative must be available to answer specific questions regarding the nature, extent, and purpose for which the information may be shared.

      (12) To facilitate improved operation and evaluation of state programs, the commissioner may enter into data-sharing contracts with other state agencies only to the extent that such transfer is necessary for the efficient operation or evaluation of outcomes for those programs.  The transfer of information by contract under this subsection is exempt from subsection (1)(c) of this section.

      (13) The misuse or unauthorized release of records or information by any person or organization to which access is permitted by this chapter subjects the person or organization to a civil penalty of five thousand dollars and other applicable sanctions under state and federal law.  Suit to enforce this section shall be brought by the attorney general and the amount of any penalties collected shall be paid into the employment security department administrative contingency fund.  The attorney general may recover reasonable attorneys' fees for any action brought to enforce this section.

Sec. 467.  RCW 28A.345.060 and 1986 c 158 s 3 are each amended to read as follows:

      The association shall contract with the ((department of personnel for the department of personnel)) human resources director in the office of financial management to audit in odd-numbered years the association's staff classifications and employees' salaries.  The association shall give copies of the audit reports to the office of financial management and the committees of each house of the legislature dealing with common schools.

Sec. 468.  RCW 28A.400.201 and 2010 c 236 s 7 are each amended to read as follows:

      (1) The legislature recognizes that providing students with the opportunity to access a world-class educational system depends on our continuing ability to provide students with access to world-class educators.  The legislature also understands that continuing to attract and retain the highest quality educators will require increased investments.  The legislature intends to enhance the current salary allocation model and recognizes that changes to the current model cannot be imposed without great deliberation and input from teachers, administrators, and classified employees.  Therefore, it is the intent of the legislature to begin the process of developing an enhanced salary allocation model that is collaboratively designed to ensure the rationality of any conclusions regarding what constitutes adequate compensation.

      (2) Beginning July 1, 2011, the office of the superintendent of public instruction, in collaboration with the human resources director in the office of financial management, shall convene a technical working group to recommend the details of an enhanced salary allocation model that aligns state expectations for educator development and certification with the compensation system and establishes recommendations for a concurrent implementation schedule.  In addition to any other details the technical working group deems necessary, the technical working group shall make recommendations on the following:

      (a) How to reduce the number of tiers within the existing salary allocation model;

      (b) How to account for labor market adjustments;

      (c) How to account for different geographic regions of the state where districts may encounter difficulty recruiting and retaining teachers;

      (d) The role of and types of bonuses available;

      (e) Ways to accomplish salary equalization over a set number of years; and

      (f) Initial fiscal estimates for implementing the recommendations including a recognition that staff on the existing salary allocation model would have the option to grandfather in permanently to the existing schedule.

      (3) As part of its work, the technical working group shall conduct or contract for a preliminary comparative labor market analysis of salaries and other compensation for school district employees to be conducted and shall include the results in any reports to the legislature.  For the purposes of this subsection, "salaries and other compensation" includes average base salaries, average total salaries, average employee basic benefits, and retirement benefits.

      (4) The analysis required under subsection (1) of this section must:

      (a) Examine salaries and other compensation for teachers, other certificated instructional staff, principals, and other building-level certificated administrators, and the types of classified employees for whom salaries are allocated;

      (b) Be calculated at a statewide level that identifies labor markets in Washington through the use of data from the United States bureau of the census and the bureau of labor statistics; and

      (c) Include a comparison of salaries and other compensation to the appropriate labor market for at least the following subgroups of educators:  Beginning teachers and types of educational staff associates.

      (5) The working group shall include representatives of the ((department of personnel)) office of financial management, the professional educator standards board, the office of the superintendent of public instruction, the Washington education association, the Washington association of school administrators, the association of Washington school principals, the Washington state school directors' association, the public school employees of Washington, and other interested stakeholders with appropriate expertise in compensation related matters.  The working group may convene advisory subgroups on specific topics as necessary to assure participation and input from a broad array of diverse stakeholders.

      (6) The working group shall be monitored and overseen by the legislature and the quality education council created in RCW 28A.290.010.  The working group shall make an initial report to the legislature by June 30, 2012, and shall include in its report recommendations for whether additional further work of the group is necessary.

Sec. 469.  RCW 34.12.100 and 2010 1st sp.s. c 7 s 3 are each amended to read as follows:

      The chief administrative law judge shall be paid a salary fixed by the governor after recommendation of the ((department of personnel)) human resources director in the office of financial management.  The salaries of administrative law judges appointed under the terms of this chapter shall be determined by the chief administrative law judge after recommendation of the department of personnel.

Sec. 470.  RCW 36.21.011 and 1995 c 134 s 12 are each amended to read as follows:

      Any assessor who deems it necessary in order to complete the listing and the valuation of the property of the county within the time prescribed by law, (1) may appoint one or more well qualified persons to act as assistants or deputies who shall not engage in the private practice of appraising within the county in which he or she is employed without the written permission of the assessor filed with the auditor; and each such assistant or deputy so appointed shall, under the direction of the assessor, after taking the required oath, perform all the duties enjoined upon, vested in or imposed upon assessors, and (2) may contract with any persons, firms or corporations, who are expert appraisers, to assist in the valuation of property.

      To assist each assessor in obtaining adequate and well qualified assistants or deputies, the ((state department of personnel)) office of financial management, after consultation with the Washington state association of county assessors, the Washington state association of counties, and the department of revenue, shall establish by July 1, 1967, and shall thereafter maintain, a classification and salary plan for those employees of an assessor who act as appraisers.  The plan shall recommend the salary range and employment qualifications for each position encompassed by it, and shall, to the fullest extent practicable, conform to the classification plan, salary schedules and employment qualifications for state employees performing similar appraisal functions.

      An assessor who intends to put such plan into effect shall inform the department of revenue and the county legislative authority of this intent in writing.  The department of revenue and the county legislative authority may thereupon each designate a representative, and such representative or representatives as may be designated by the department of revenue or the county legislative authority, or both, shall form with the assessor a committee.  The committee so formed may, by unanimous vote only, determine the required number of certified appraiser positions and their salaries necessary to enable the assessor to carry out the requirements relating to revaluation of property in chapter 84.41 RCW.  The determination of the committee shall be certified to the county legislative authority.  The committee may be formed only once in a period of four calendar years.

      After such determination, the assessor may provide, in each of the four next succeeding annual budget estimates, for as many positions as are established in such determination.  Each county legislative authority to which such a budget estimate is submitted shall allow sufficient funds for such positions.  An employee may be appointed to a position covered by the plan only if the employee meets the employment qualifications established by the plan.

Sec. 471.  RCW 41.04.020 and 1998 c 116 s 1 are each amended to read as follows:

      Any employee or group of employees of the state of Washington or any of its political subdivisions, or of any institution supported, in whole or in part, by the state or any of its political subdivisions, may authorize the deduction from his or her salaries or wages and payment to another, the amount or amounts of his or her subscription payments or contributions to any person, firm, or corporation administering, furnishing, or providing (1) medical, surgical, and hospital care or either of them, or (2) life insurance or accident and health disability insurance, or (3) any individual retirement account selected by the employee or the employee's spouse established under applicable state or federal law:  PROVIDED, That such authorization by said employee or group of employees, shall be first approved by the head of the department, division office or institution of the state or any political subdivision thereof, employing such person or group of persons, and filed with the department of ((personnel)) enterprise services; or in the case of political subdivisions of the state of Washington, with the auditor of such political subdivision or the person authorized by law to draw warrants against the funds of said political subdivision.

Sec. 472.  RCW 41.04.460 and 1992 c 234 s 10 are each amended to read as follows:

      The department of ((personnel)) enterprise services, through the combined benefits communication project, shall prepare information encouraging individual financial planning for retirement and describing the potential consequences of early retirement, including members' assumption of health insurance costs, members' receipt of reduced retirement benefits, and the increased period of time before members will become eligible for cost-of-living adjustments.  The department of retirement systems shall distribute the information to members who are eligible to retire under the provisions of chapter 234, Laws of 1992.  Prior to retiring, such members who elect to retire shall sign a statement acknowledging their receipt and understanding of the information.

Sec. 473.  RCW 41.60.050 and 1991 sp.s. c 16 s 918 are each amended to read as follows:

      The legislature shall appropriate from the ((department of)) personnel service fund for the payment of administrative costs of the productivity board.  However, during the 1991‑93 fiscal biennium, the administrative costs of the productivity board shall be appropriated from the savings recovery account.

Sec. 474.  RCW 41.68.030 and 1983 1st ex.s. c 15 s 3 are each amended to read as follows:

      A claim under this chapter may be submitted to the department of ((personnel)) enterprise services for the reparation of salary losses suffered during the years 1942 through 1947.  The claim shall be supported by appropriate verification, such as the person's name at the time of the dismissal, the name of the employing department, and a social security number, or by evidence of official action of termination.  The claimant shall also provide an address to which the department shall mail notification of its determination regarding the claimant's eligibility.

Sec. 475.  RCW 41.68.040 and 1983 1st ex.s. c 15 s 4 are each amended to read as follows:

      (1) The department of ((personnel)) enterprise services shall determine the eligibility of a claimant to receive reparations authorized by this chapter.  The department shall then notify the claimant by mail of its determination regarding the claimant's eligibility.

      (2) The department may adopt rules that will assist in the fair determination of eligibility and the processing of claims.  The department, however, has no obligation to directly notify any person of possible eligibility for reparation of salary losses under this chapter.

Sec. 476.  RCW 41.68.050 and 1983 1st ex.s. c 15 s 5 are each amended to read as follows:

      A claimant under this chapter who is determined eligible by the department of ((personnel)) enterprise services shall receive two thousand five hundred dollars each year for two years.  All claims which the department determines are eligible for reparation shall be immediately forwarded to the state treasurer, who shall issue warrants in the appropriate amounts upon demand and verification of identity.  If a claimant dies after filing a claim but before receiving full payment, payments shall be made to the claimant's estate upon demand and verification of identity.

Sec. 477.  RCW 47.28.251 and 2003 c 363 s 103 are each amended to read as follows:

      (1) The department of transportation shall work with representatives of transportation labor groups to develop a financial incentive program to aid in retention and recruitment of employee classifications where problems exist and program delivery is negatively affected.  The department's financial incentive program must be reviewed and approved by the legislature before it can be implemented.  This program must support the goal of enhancing project delivery timelines as outlined in section 101, chapter 363, Laws of 2003.  Upon receiving approval from the legislature, the ((department of personnel)) office of financial management shall implement, as required, specific aspects of the financial incentive package, as developed by the department of transportation.

      (2) Notwithstanding chapter 41.06 RCW, the department of transportation may acquire services from qualified private firms in order to deliver the transportation construction program to the public.  Services may be acquired solely for augmenting the department's workforce capacity and only when the department's transportation construction program cannot be delivered through its existing or readily available workforce.  The department of transportation shall work with representatives of transportation labor groups to develop and implement a program identifying those projects requiring contracted services while establishing a program as defined in subsection (1) of this section to provide the classified personnel necessary to deliver future construction programs.  The procedures for acquiring construction engineering services from private firms may not be used to displace existing state employees nor diminish the number of existing classified positions in the present construction program.  The acquisition procedures must be in accordance with chapter 39.80 RCW.

      (3) Starting in December 2004, and biennially thereafter, the secretary shall report to the transportation committees of the legislature on the use of construction engineering services from private firms authorized under this section.  The information provided to the committees must include an assessment of the benefits and costs associated with using construction engineering services, or other services, from private firms, and a comparison of public versus private sector costs.  The secretary may act on these findings to ensure the most cost-effective means of service delivery.

NEW SECTION.  Sec. 478.  The following acts or parts of acts are each repealed:

      (1) RCW 41.06.030 (Department of personnel established) and 2002 c 354 s 201, 1993 c 281 s 20, & 1961 c 1 s 3;

      (2) RCW 41.06.111 (Personnel appeals board abolished‑-Powers, duties, and functions transferred to the Washington personnel resources board) and 2002 c 354 s 233;

      (3) RCW 41.06.130 (Director of personnel‑-Appointment‑-Rules‑- Powers and duties‑-Delegation of authority) and 1993 c 281 s 26, 1982 1st ex.s. c 53 s 3, & 1961 c 1 s 13;

      (4) RCW 41.06.139 (Classification system for classified service‑- Director implements‑-Rules of the board‑-Appeals) and 2002 c 354 s 206;

      (5) RCW 41.06.480 (Background check disqualification‑‑Policy recommendations) and 2001 c 296 s 7; and

      (6) RCW 41.07.900 (Transfer of personnel, records, equipment, etc) and 1975 1st ex.s. c 239 s 4.

NEW SECTION.  Sec. 479.  RCW 41.06.136, 43.31.086, 41.80.900, 41.80.901, 41.80.902, 41.80.903, and 41.80.904 are each decodified.

NEW SECTION.  Sec. 480.  Section 447 of this act expires January 1, 2012.

NEW SECTION.  Sec. 481.  Section 448 of this act takes effect January 1, 2012.

NEW SECTION.  Sec. 482.  Section 459 of this act expires June 30, 2015.

NEW SECTION.  Sec. 483.  Section 461 of this act expires December 31, 2011.

NEW SECTION.  Sec. 484.  Section 462 of this act takes effect December 31, 2011.

PART V
POWERS AND DUTIES TRANSFERRED FROM THE
OFFICE OF FINANCIAL MANAGEMENT

Sec. 501.  RCW 43.41.290 and 1977 ex.s. c 270 s 3 are each amended to read as follows:

      As used in ((RCW 43.19.19361 and 43.19.19362)) this act:

      (1) "State agency" includes any state office, agency, commission, department, or institution, including colleges, universities, and community colleges, financed in whole or part from funds appropriated by the legislature; ((and))

      (2) "Risk management" means the total effort and continuous step by step process of risk identification, measurement, minimization, assumption, transfer, and loss adjustment which is aimed at protecting assets and revenues against accidental loss;
      (3) "Department" means the department of enterprise services; and
      (4) "Director" means the director of enterprise services.

Sec. 502.  RCW 43.41.300 and 2002 c 332 s 7 are each amended to read as follows:

      There is hereby created ((a)) an office of risk management ((division)) within the ((office of financial management)) department of enterprise services.  The director shall implement the risk management policy in RCW 43.41.280 (as recodified by this act) through the office of risk management ((division)).  The director shall appoint a risk manager to supervise the office of risk management ((division)).  The office of risk management ((division)) shall make recommendations when appropriate to state agencies on the application of prudent safety, security, loss prevention, and loss minimization methods so as to reduce or avoid risk or loss.

Sec. 503.  RCW 43.41.310 and 2002 c 332 s 5 are each amended to read as follows:

      As a means of providing for the procurement of insurance and bonds on a volume rate basis, the director shall purchase or contract for the needs of state agencies in relation to all such insurance and bonds:  PROVIDED, That authority to purchase insurance may be delegated to state agencies.  Insurance in force shall be reported to the office of risk management ((division)) periodically under rules established by the director.  Nothing contained in this section shall prohibit the use of licensed agents or brokers for the procurement and service of insurance.

      The amounts of insurance or bond coverage shall be as fixed by law, or if not fixed by law, such amounts shall be as fixed by the director.

      The premium cost for insurance acquired and bonds furnished shall be paid from appropriations or other appropriate resources available to the state agency or agencies for which procurement is made, and all vouchers drawn in payment therefor shall bear the written approval of the office of risk management ((division)) prior to the issuance of the warrant in payment therefor.  Where deemed advisable the premium cost for insurance and bonds may be paid by the risk management administration account which shall be reimbursed by the agency or agencies for which procurement is made.

Sec. 504.  RCW 43.41.320 and 2002 c 332 s 6 are each amended to read as follows:

      The director, through the office of risk management ((division)), may purchase, or contract for the purchase of, property and liability insurance for any municipality upon request of the municipality.

      As used in this section, "municipality" means any city, town, county, special purpose district, municipal corporation, or political subdivision of the state of Washington.

Sec. 505.  RCW 43.41.330 and 2002 c 332 s 8 are each amended to read as follows:

      The director, through the office of risk management ((division)), shall receive and enforce bonds posted pursuant to RCW 39.59.010 (3) and (4).

Sec. 506.  RCW 43.41.340 and 2002 c 332 s 9 are each amended to read as follows:

      The ((office)) department shall conduct periodic actuarial studies to determine the amount of money needed to adequately fund the liability account.

Sec. 507.  RCW 43.41.360 and 2009 c 549 s 5121 are each amended to read as follows:

      ((In addition to other powers and duties prescribed by this chapter,)) The director shall:

      (1) Fix the amount of bond to be given by each appointive state officer and each employee of the state in all cases where it is not fixed by law;

      (2) Require the giving of an additional bond, or a bond in a greater amount than provided by law, in all cases where in his or her judgment the statutory bond is not sufficient in amount to cover the liabilities of the officer or employee;

      (3) Exempt subordinate employees from giving bond when in his or her judgment their powers and duties are such as not to require a bond.

Sec. 508.  RCW 43.41.370 and 2002 c 333 s 2 are each amended to read as follows:

      (1) The director ((of financial management)) shall appoint a loss prevention review team when the death of a person, serious injury to a person, or other substantial loss is alleged or suspected to be caused at least in part by the actions of a state agency, unless the director in his or her discretion determines that the incident does not merit review.  A loss prevention review team may also be appointed when any other substantial loss occurs as a result of agency policies, litigation or defense practices, or other management practices.  When the director decides not to appoint a loss prevention review team he or she shall issue a statement of the reasons for the director's decision.  The statement shall be made available on the department's web site ((of the office of financial management)).  The director's decision pursuant to this section to appoint or not appoint a loss prevention review team shall not be admitted into evidence in a civil or administrative proceeding.

      (2) A loss prevention review team shall consist of at least three but no more than five persons, and may include independent consultants, contractors, or state employees, but it shall not include any person employed by the agency involved in the loss or risk of loss giving rise to the review, nor any person with testimonial knowledge of the incident to be reviewed.  At least one member of the review team shall have expertise relevant to the matter under review.

      (3) The loss prevention review team shall review the death, serious injury, or other incident and the circumstances surrounding it, evaluate its causes, and recommend steps to reduce the risk of such incidents occurring in the future.  The loss prevention review team shall accomplish these tasks by reviewing relevant documents, interviewing persons with relevant knowledge, and reporting its recommendations in writing to the director ((of financial management)) and the director of the agency involved in the loss or risk of loss within the time requested by the director ((of financial management)).  The final report shall not disclose the contents of any documents required by law to be kept confidential.

      (4) Pursuant to guidelines established by the director, state agencies must notify the ((office of financial management)) department immediately upon becoming aware of a death, serious injury, or other substantial loss that is alleged or suspected to be caused at least in part by the actions of the state agency.  State agencies shall provide the loss prevention review team ready access to relevant documents in their possession and ready access to their employees.

Sec. 509.  RCW 43.41.380 and 2002 c 333 s 3 are each amended to read as follows:

      (1) The final report from a loss prevention review team to the director ((of financial management)) shall be made public by the director promptly upon receipt, and shall be subject to public disclosure.  The final report shall be subject to discovery in a civil or administrative proceeding.  However, the final report shall not be admitted into evidence or otherwise used in a civil or administrative proceeding except pursuant to subsection (2) of this section.

      (2) The relevant excerpt or excerpts from the final report of a loss prevention review team may be used to impeach a fact witness in a civil or administrative proceeding only if the party wishing to use the excerpt or excerpts from the report first shows the court by clear and convincing evidence that the witness, in testimony provided in deposition or at trial in the present proceeding, has contradicted his or her previous statements to the loss prevention review team on an issue of fact material to the present proceeding.  In that case, the party may use only the excerpt or excerpts necessary to demonstrate the contradiction.  This section shall not be interpreted as expanding the scope of material that may be used to impeach a witness.

      (3) No member of a loss prevention review team may be examined in a civil or administrative proceeding as to (a) the work of the loss prevention review team, (b) the incident under review, (c) his or her statements, deliberations, thoughts, analyses, or impressions relating to the work of the loss prevention review team or the incident under review, or (d) the statements, deliberations, thoughts, analyses, or impressions of any other member of the loss prevention review team, or any person who provided information to it, relating to the work of the loss prevention review team or the incident under review.

      (4) Any document that exists prior to the appointment of a loss prevention review team, or that is created independently of such a team, does not become inadmissible merely because it is reviewed or used by the loss prevention review team.  A person does not become unavailable as a witness merely because the person has been interviewed by or has provided a statement to a loss prevention review team.  However, if called as a witness, the person may not be examined regarding the person's interactions with the loss prevention review team, including without limitation whether the loss prevention review team interviewed the person, what questions the loss prevention review team asked, and what answers the person provided to the loss prevention review team.  This section shall not be construed as restricting the person from testifying fully in any proceeding regarding his or her knowledge of the incident under review.

      (5) Documents prepared by or for the loss prevention review team are inadmissible and may not be used in a civil or administrative proceeding, except that excerpts may be used to impeach the credibility of a witness under the same circumstances that excerpts of the final report may be used pursuant to subsection (2) of this section.

      (6) The restrictions set forth in this section shall not apply in a licensing or disciplinary proceeding arising from an agency's effort to revoke or suspend the license of any licensed professional based in whole or in part upon allegations of wrongdoing in connection with the death, injury, or other incident reviewed by the loss prevention review team.

      (7) Within one hundred twenty days after completion of the final report of a loss prevention review team, the agency under review shall issue to the ((office of financial management)) department a response to the report.  The response will indicate (a) which of the report's recommendations the agency hopes to implement, (b) whether implementation of those recommendations will require additional funding or legislation, and (c) whatever other information the director may require.  This response shall be considered part of the final report and shall be subject to all provisions of this section that apply to the final report, including without limitation the restrictions on admissibility and use in civil or administrative proceedings and the obligation of the director to make the final report public.

      (8) Nothing in RCW 43.41.370 or this section is intended to limit the scope of a legislative inquiry into or review of an incident that is the subject of a loss prevention review.

      (9) Nothing in RCW 43.41.370 or in this section affects chapter 70.41 RCW and application of that chapter to state-owned or managed hospitals licensed under chapter 70.41 RCW.

Sec. 510.  RCW 43.41.110 and 2002 c 332 s 23 are each amended to read as follows:

      The office of financial management shall:

      (1) Provide technical assistance to the governor and the legislature in identifying needs and in planning to meet those needs through state programs and a plan for expenditures.

      (2) Perform the comprehensive planning functions and processes necessary or advisable for state program planning and development, preparation of the budget, inter-departmental and inter-governmental coordination and cooperation, and determination of state capital improvement requirements.

      (3) Provide assistance and coordination to state agencies and departments in their preparation of plans and programs.

      (4) Provide general coordination and review of plans in functional areas of state government as may be necessary for receipt of federal or state funds.

      (5) Participate with other states or subdivisions thereof in interstate planning.

      (6) Encourage educational and research programs that further planning and provide administrative and technical services therefor.

      (7) Carry out the provisions of RCW 43.62.010 through 43.62.050 relating to the state census.

      (8) ((Carry out the provisions of this chapter and chapter 4.92 RCW relating to risk management.
      (9))) Be the official state participant in the federal-state cooperative program for local population estimates and as such certify all city and county special censuses to be considered in the allocation of state and federal revenues.

      (((10))) (9) Be the official state center for processing and dissemination of federal decennial or quinquennial census data in cooperation with other state agencies.

      (((11))) (10) Be the official state agency certifying annexations, incorporations, or disincorporations to the United States bureau of the census.

      (((12))) (11) Review all United States bureau of the census population estimates used for federal revenue sharing purposes and provide a liaison for local governments with the United States bureau of the census in adjusting or correcting revenue sharing population estimates.

      (((13))) (12) Provide fiscal notes depicting the expected fiscal impact of proposed legislation in accordance with chapter 43.88A RCW.

      (((14))) (13) Be the official state agency to estimate and manage the cash flow of all public funds as provided in chapter 43.88 RCW.  To this end, the office shall adopt such rules as are necessary to manage the cash flow of public funds.

Sec. 511.  RCW 4.92.006 and 2002 c 332 s 10 are each amended to read as follows:

      As used in this chapter:

      (1) (("Office" means the office of financial management.)) "Department" means the department of enterprise services.

      (2) "Director" means the director of ((financial management)) enterprise services.

      (3) (("Risk management division")) "Office of risk management" means the ((division of the office of financial management)) office within the department of enterprise services that carries out the powers and duties under this chapter relating to claim filing, claims administration, and claims payment.

      (4) "Risk manager" means the person supervising the office of risk management ((division)).

Sec. 512.  RCW 4.92.040 and 2002 c 332 s 11 are each amended to read as follows:

      (1) No execution shall issue against the state on any judgment.

      (2) Whenever a final judgment against the state is obtained in an action on a claim arising out of tortious conduct, the claim shall be paid from the liability account.

      (3) Whenever a final judgment against the state shall have been obtained in any other action, the clerk of the court shall make and furnish to the office of risk management ((division)) a duly certified copy of such judgment; the office of risk management ((division)) shall thereupon audit the amount of damages and costs therein awarded, and the same shall be paid from appropriations specifically provided for such purposes by law.

      (4) Final judgments for which there are no provisions in state law for payment shall be transmitted by the office of risk management ((division)) to the senate and house of representatives committees on ways and means as follows:

      (a) On the first day of each session of the legislature, the office of risk management ((division)) shall transmit judgments received and audited since the adjournment of the previous session of the legislature.

      (b) During each session of legislature, the office of risk management ((division)) shall transmit judgments immediately upon completion of audit.

      (5) All claims, other than judgments, made to the legislature against the state of Washington for money or property, shall be accompanied by a statement of the facts on which such claim is based and such evidence as the claimant intends to offer in support of the claim and shall be filed with the office of risk management ((division)), which shall retain the same as a record.  All claims of two thousand dollars or less shall be approved or rejected by the office of risk management ((division)), and if approved shall be paid from appropriations specifically provided for such purpose by law.  Such decision, if adverse to the claimant in whole or part, shall not preclude the claimant from seeking relief from the legislature.  If the claimant accepts any part of his or her claim which is approved for payment by the office of risk management ((division)), such acceptance shall constitute a waiver and release of the state from any further claims relating to the damage or injury asserted in the claim so accepted.  The office of risk management ((division)) shall submit to the house and senate committees on ways and means, at the beginning of each regular session, a comprehensive list of all claims paid pursuant to this subsection during the preceding year.  For all claims not approved by the office of risk management ((division)), the office of risk management ((division)) shall recommend to the legislature whether such claims should be approved or rejected.  Recommendations shall be submitted to the senate and house of representatives committees on ways and means not later than the thirtieth day of each regular session of the legislature.  Claims which cannot be processed for timely submission of recommendations shall be held for submission during the following regular session of the legislature.  The recommendations shall include, but not be limited to:

      (a) A summary of the facts alleged in the claim, and a statement as to whether these facts can be verified by the office of risk management ((division));

      (b) An estimate by the office of risk management ((division)) of the value of the loss or damage which was alleged to have occurred;

      (c) An analysis of the legal liability, if any, of the state for the alleged loss or damage; and

      (d) A summary of equitable or public policy arguments which might be helpful in resolving the claim.

      (6) The legislative committees to whom such claims are referred shall make a transcript, recording, or statement of the substance of the evidence given in support of such a claim.  If the legislature approves a claim the same shall be paid from appropriations specifically provided for such purpose by law.

      (7) Subsections (3) through (6) of this section do not apply to judgments or claims against the state housing finance commission created under chapter 43.180 RCW.

Sec. 513.  RCW 4.92.130 and 2009 c 560 s 15 are each amended to read as follows:

      A liability account in the custody of the treasurer is hereby created as a nonappropriated account to be used solely and exclusively for the payment of liability settlements and judgments against the state under 42 U.S.C. Sec. 1981 et seq. or for the tortious conduct of its officers, employees, and volunteers and all related legal defense costs.

      (1) The purpose of the liability account is to:  (a) Expeditiously pay legal liabilities and defense costs of the state resulting from tortious conduct; (b) promote risk control through a cost allocation system which recognizes agency loss experience, levels of self- retention, and levels of risk exposure; and (c) establish an actuarially sound system to pay incurred losses, within defined limits.

      (2) The liability account shall be used to pay claims for injury and property damages and legal defense costs exclusive of agency- retained expenses otherwise budgeted.

      (3) No money shall be paid from the liability account, except for defense costs, unless all proceeds available to the claimant from any valid and collectible liability insurance shall have been exhausted and unless:

      (a) The claim shall have been reduced to final judgment in a court of competent jurisdiction; or

      (b) The claim has been approved for payment.

      (4) The liability account shall be financed through annual premiums assessed to state agencies, based on sound actuarial principles, and shall be for liability coverage in excess of agency-budgeted self- retention levels.

      (5) Annual premium levels shall be determined by the risk manager.  An actuarial study shall be conducted to assist in determining the appropriate level of funding.

      (6) Disbursements for claims from the liability account shall be made to the claimant, or to the clerk of the court for judgments, upon written request to the state treasurer from the risk manager.

      (7) The director may direct agencies to transfer moneys from other funds and accounts to the liability account if premiums are delinquent.

      (8) The liability account shall not exceed fifty percent of the actuarial value of the outstanding liability as determined annually by the office of risk management ((division)).  If the account exceeds the maximum amount specified in this section, premiums may be adjusted by the office of risk management ((division)) in order to maintain the account balance at the maximum limits.  If, after adjustment of premiums, the account balance remains above the limits specified, the excess amount shall be prorated back to the appropriate funds.

Sec. 514.  RCW 4.92.150 and 2002 c 332 s 15 are each amended to read as follows:

      After commencement of an action in a court of competent jurisdiction upon a claim against the state, or any of its officers, employees, or volunteers arising out of tortious conduct or pursuant to 42 U.S.C. Sec. 1981 et seq., or against a foster parent that the attorney general is defending pursuant to RCW 4.92.070, or upon petition by the state, the attorney general, with the prior approval of the office of risk management ((division)) and with the approval of the court, following such testimony as the court may require, may compromise and settle the same and stipulate for judgment against the state, the affected officer, employee, volunteer, or foster parent.

Sec. 515.  RCW 4.92.160 and 2002 c 332 s 16 are each amended to read as follows:

      Payment of claims and judgments arising out of tortious conduct or pursuant to 42 U.S.C. Sec. 1981 et seq. shall not be made by any agency or department of state government with the exception of the office of risk management ((division)), and that ((division)) office shall authorize and direct the payment of moneys only from the liability account whenever:

      (1) The head or governing body of any agency or department of state or the designee of any such agency certifies to the office of risk management ((division)) that a claim has been settled; or

      (2) The clerk of court has made and forwarded a certified copy of a final judgment in a court of competent jurisdiction and the attorney general certifies that the judgment is final and was entered in an action on a claim arising out of tortious conduct or under and pursuant to 42 U.S.C. Sec. 1981 et seq.  Payment of a judgment shall be made to the clerk of the court for the benefit of the judgment creditors.  Upon receipt of payment, the clerk shall satisfy the judgment against the state.

Sec. 516.  RCW 4.92.210 and 2002 c 332 s 17 are each amended to read as follows:

      (1) All liability claims arising out of tortious conduct or under 42 U.S.C. Sec. 1981 et seq. that the state of Washington or any of its officers, employees, or volunteers would be liable for shall be filed with the office of risk management ((division)).

      (2) A centralized claim tracking system shall be maintained to provide agencies with accurate and timely data on the status of liability claims.  Information in this claim file, other than the claim itself, shall be privileged and confidential.

      (3) Standardized procedures shall be established for filing, reporting, processing, and adjusting claims, which includes the use of qualified claims management personnel.

      (4) All claims shall be reviewed by the office of risk management ((division)) to determine an initial valuation, to delegate to the appropriate office to investigate, negotiate, compromise, and settle the claim, or to retain that responsibility on behalf of and with the assistance of the affected state agency.

      (5) All claims that result in a lawsuit shall be forwarded to the attorney general's office.  Thereafter the attorney general and the office of risk management ((division)) shall collaborate in the investigation, denial, or settlement of the claim.

      (6) Reserves shall be established for recognizing financial liability and monitoring effectiveness.  The valuation of specific claims against the state shall be privileged and confidential.

      (7) All settlements shall be approved by the responsible agencies, or their designees, prior to settlement.

Sec. 517.  RCW 4.92.270 and 2002 c 332 s 21 are each amended to read as follows:

      The risk manager shall develop procedures for standard indemnification agreements for state agencies to use whenever the agency agrees to indemnify, or be indemnified by, any person or party.  The risk manager shall also develop guidelines for the use of indemnification agreements by state agencies.  On request of the risk manager, an agency shall forward to the office of risk management ((division)) for review and approval any contract or agreement containing an indemnification agreement.

Sec. 518.  RCW 4.92.280 and 1998 c 217 s 4 are each amended to read as follows:

      If chapter 217, Laws of 1998 mandates an increased level of service by local governments, the local government may, under RCW 43.135.060 and chapter 4.92 RCW, submit claims for reimbursement by the legislature.  The claims shall be subject to verification by the ((office of financial management)) department of enterprise services.

Sec. 519.  RCW 10.92.020 and 2008 c 224 s 2 are each amended to read as follows:

      (1) Tribal police officers under subsection (2) of this section shall be recognized and authorized to act as general authority Washington peace officers.  A tribal police officer recognized and authorized to act as a general authority Washington peace officer under this section has the same powers as any other general authority Washington peace officer to enforce state laws in Washington, including the power to make arrests for violations of state laws.

      (2) A tribal police officer may exercise the powers of law enforcement of a general authority Washington peace officer under this section, subject to the following:

      (a) The appropriate sovereign tribal nation shall submit to the ((office of financial management)) department of enterprise services proof of public liability and property damage insurance for vehicles operated by the peace officers and police professional liability insurance from a company licensed to sell insurance in the state.  For purposes of determining adequacy of insurance liability, the sovereign tribal government must submit with the proof of liability insurance a copy of the interlocal agreement between the sovereign tribal government and the local governments that have shared jurisdiction under this chapter where such an agreement has been reached pursuant to subsection (10) of this section.

      (i) Within the thirty days of receipt of the information from the sovereign tribal nation, the ((office of financial management)) department of enterprise services shall either approve or reject the adequacy of insurance, giving consideration to the scope of the interlocal agreement.  The adequacy of insurance under this chapter shall be subject to annual review by the ((state office of financial management)) department of enterprise services.

      (ii) Each policy of insurance issued under this chapter must include a provision that the insurance shall be available to satisfy settlements or judgments arising from the tortious conduct of tribal police officers when acting in the capacity of a general authority Washington peace officer, and that to the extent of policy coverage neither the sovereign tribal nation nor the insurance carrier will raise a defense of sovereign immunity to preclude an action for damages under state or federal law, the determination of fault in a civil action, or the payment of a settlement or judgment arising from the tortious conduct.

      (b) The appropriate sovereign tribal nation shall submit to the ((office of financial management)) department of enterprise services proof of training requirements for each tribal police officer.  To be authorized as a general authority Washington peace officer, a tribal police officer must successfully complete the requirements set forth under RCW 43.101.157.  Any applicant not meeting the requirements for certification as a tribal police officer may not act as a general authority Washington peace officer under this chapter.  The criminal justice training commission shall notify the ((office of financial management)) department of enterprise services if:

      (i) A tribal police officer authorized under this chapter as a general authority Washington state peace officer has been decertified pursuant to RCW 43.101.157; or

      (ii) An appropriate sovereign tribal government is otherwise in noncompliance with RCW 43.101.157.

      (3) A copy of any citation or notice of infraction issued, or any incident report taken, by a tribal police officer acting in the capacity of a general authority Washington peace officer as authorized by this chapter must be submitted within three days to the police chief or sheriff within whose jurisdiction the action was taken.  Any citation issued under this chapter shall be to a Washington court, except that any citation issued to Indians within the exterior boundaries of an Indian reservation may be cited to a tribal court.  Any arrest made or citation issued not in compliance with this chapter is not enforceable.

      (4) Any authorization granted under this chapter shall not in any way expand the jurisdiction of any tribal court or other tribal authority.

      (5) The authority granted under this chapter shall be coextensive with the exterior boundaries of the reservation, except that an officer commissioned under this section may act as authorized under RCW 10.93.070 beyond the exterior boundaries of the reservation.

      (6) For purposes of civil liability under this chapter, a tribal police officer shall not be considered an employee of the state of Washington or any local government except where a state or local government has deputized a tribal police officer as a specially commissioned officer.  Neither the state of Washington and its individual employees nor any local government and its individual employees shall be liable for the authorization of tribal police officers under this chapter, nor for the negligence or other misconduct of tribal officers.  The authorization of tribal police officers under this chapter shall not be deemed to have been a nondelegable duty of the state of Washington or any local government.

      (7) Nothing in this chapter impairs or affects the existing status and sovereignty of those sovereign tribal governments whose traditional lands and territories lie within the borders of the state of Washington as established under the laws of the United States.

      (8) Nothing in this chapter limits, impairs, or nullifies the authority of a county sheriff to appoint duly commissioned state or federally certified tribal police officers as deputy sheriffs authorized to enforce the criminal and traffic laws of the state of Washington.

      (9) Nothing in this chapter limits, impairs, or otherwise affects the existing authority under state or federal law of state or local law enforcement officers to enforce state law within the exterior boundaries of an Indian reservation or to enter Indian country in fresh pursuit, as defined in RCW 10.93.120, of a person suspected of violating state law, where the officer would otherwise not have jurisdiction.

      (10) An interlocal agreement pursuant to chapter 39.34 RCW is required between the sovereign tribal government and all local government law enforcement agencies that will have shared jurisdiction under this chapter prior to authorization taking effect under this chapter.  Nothing in this chapter shall limit, impair, or otherwise affect the implementation of an interlocal agreement completed pursuant to chapter 39.34 RCW by July 1, 2008, between a sovereign tribal government and a local government law enforcement agency for cooperative law enforcement.

      (a) Sovereign tribal governments that meet all of the requirements of subsection (2) of this section, but do not have an interlocal agreement pursuant to chapter 39.34 RCW and seek authorization under this chapter, may submit proof of liability insurance and training certification to the ((office of financial management)) department of enterprise services.  Upon confirmation of receipt of the information from the ((office of financial management)) department of enterprise services, the sovereign tribal government and the local government law enforcement agencies that will have shared jurisdiction under this chapter have one year to enter into an interlocal agreement pursuant to chapter 39.34 RCW.  If the sovereign tribal government and the local government law enforcement agencies that will have shared jurisdiction under this chapter are not able to reach agreement after one year, the sovereign tribal governments and the local government law enforcement agencies shall submit to binding arbitration pursuant to chapter 7.04A RCW with the American arbitration association or successor agency for purposes of completing an agreement prior to authorization going into effect.

      (b) For the purposes of (a) of this subsection, those sovereign tribal government and local government law enforcement agencies that must enter into binding arbitration shall submit to last best offer arbitration.  For purposes of accepting a last best offer, the arbitrator must consider other interlocal agreements between sovereign tribal governments and local law enforcement agencies in Washington state, any model policy developed by the Washington association of sheriffs and police chiefs or successor agency, and national best practices.

Sec. 520.  RCW 48.62.021 and 2004 c 255 s 2 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Local government entity" or "entity" means every unit of local government, both general purpose and special purpose, and includes, but is not limited to, counties, cities, towns, port districts, public utility districts, water-sewer districts, school districts, fire protection districts, irrigation districts, metropolitan municipal corporations, conservation districts, and other political subdivisions, governmental subdivisions, municipal corporations, and quasi-municipal corporations.

      (2) "Risk assumption" means a decision to absorb the entity's financial exposure to a risk of loss without the creation of a formal program of advance funding of anticipated losses.

      (3) "Self-insurance" means a formal program of advance funding and management of entity financial exposure to a risk of loss that is not transferred through the purchase of an insurance policy or contract.

      (4) "Health and welfare benefits" means a plan or program established by a local government entity or entities for the purpose of providing its employees and their dependents, and in the case of school districts, its district employees, students, directors, or any of their dependents, with health care, accident, disability, death, and salary protection benefits.

      (5) "Property and liability risks" includes the risk of property damage or loss sustained by a local government entity and the risk of claims arising from the tortious or negligent conduct or any error or omission of the local government entity, its officers, employees, agents, or volunteers as a result of which a claim may be made against the local government entity.

      (6) "State risk manager" means the risk manager of the office of risk management ((division)) within the ((office of financial management)) department of enterprise services.

      (7) "Nonprofit corporation" or "corporation" has the same meaning as defined in RCW 24.03.005(3).

Sec. 521.  RCW 48.64.010 and 2009 c 314 s 2 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Affordable housing" means housing projects in which some of the dwelling units may be purchased or rented on a basis that is affordable to households with an income of eighty percent or less of the county median family income, adjusted for family size.

      (2) "Affordable housing entity" means any of the following:

      (a) A housing authority created under the laws of this state or another state and any agency or instrumentality of a housing authority including, but not limited to, a legal entity created to conduct a joint self-insurance program for housing authorities that is operating in accordance with chapter 48.62 RCW;

      (b) A nonprofit corporation, whether organized under the laws of this state or another state, that is engaged in providing affordable housing and is necessary for the completion, management, or operation of a project because of its access to funding sources that are not available to a housing authority, as described in this section; or

      (c) A general or limited partnership or limited liability company, whether organized under the laws of this state or another state, that is engaged in providing affordable housing as defined in this section.  A partnership or limited liability company may only be considered an affordable housing entity if a housing authority or nonprofit corporation, as described in this subsection, satisfies any of the following conditions:  (i) It has, or has the right to acquire, a financial or ownership interest in the partnership or limited liability company; (ii) it possesses the power to direct management or policies of the partnership or limited liability company; or (iii) it has entered into a contract to lease, manage, or operate the affordable housing owned by the partnership or limited liability company.

      (3) "Property and liability risks" includes the risk of property damage or loss sustained by an affordable housing entity and the risk of claims arising from the tortious or negligent conduct or any error or omission of the entity, its officers, employees, agents, or volunteers as a result of which a claim may be made against the entity.

      (4) "Self-insurance" means a formal program of advance funding and management of entity financial exposure to a risk of loss that is not transferred through the purchase of an insurance policy or contract.

      (5) "State risk manager" means the risk manager of the office of risk management ((division)) within the ((office of financial management)) department of enterprise services.

Sec. 522.  RCW 39.29.011 and 2009 c 486 s 7 are each amended to read as follows:

      All personal service contracts shall be entered into pursuant to competitive solicitation, except for:

      (1) Emergency contracts;

      (2) Sole source contracts;

      (3) Contract amendments;

      (4) Contracts between a consultant and an agency of less than twenty thousand dollars.  However, contracts of five thousand dollars or greater but less than twenty thousand dollars shall have documented evidence of competition, which must include agency posting of the contract opportunity on the state's common vendor registration and bid notification system.  Agencies shall not structure contracts to evade these requirements; and

      (5) Other specific contracts or classes or groups of contracts exempted from the competitive solicitation process by the director of the ((office of financial management)) department of enterprise services when it has been determined that a competitive solicitation process is not appropriate or cost-effective.

Sec. 523.  RCW 39.29.016 and 1998 c 101 s 4 are each amended to read as follows:

      Emergency contracts shall be filed with the ((office of financial management)) department of enterprise services and made available for public inspection within three working days following the commencement of work or execution of the contract, whichever occurs first.  Documented justification for emergency contracts shall be provided to the ((office of financial management)) department of enterprise services when the contract is filed.

Sec. 524.  RCW 39.29.018 and 2009 c 486 s 8 are each amended to read as follows:

      (1) Sole source contracts shall be filed with the ((office of financial management)) department of enterprise services and made available for public inspection at least ten working days prior to the proposed starting date of the contract.  Documented justification for sole source contracts shall be provided to the ((office of financial management)) department of enterprise services when the contract is filed, and must include evidence that the agency posted the contract opportunity on the state's common vendor registration and bid notification system.  For sole source contracts of twenty thousand dollars or more, documented justification shall also include evidence that the agency attempted to identify potential consultants by advertising through statewide or regional newspapers.

      (2) The ((office of financial management)) department of enterprise services shall approve sole source contracts of twenty thousand dollars or more before any such contract becomes binding and before any services may be performed under the contract.  These requirements shall also apply to sole source contracts of less than twenty thousand dollars if the total amount of such contracts between an agency and the same consultant is twenty thousand dollars or more within a fiscal year.  Agencies shall ensure that the costs, fees, or rates negotiated in filed sole source contracts of twenty thousand dollars or more are reasonable.

Sec. 525.  RCW 39.29.025 and 1998 c 101 s 6 are each amended to read as follows:

      (1) Substantial changes in either the scope of work specified in the contract or in the scope of work specified in the formal solicitation document must generally be awarded as new contracts.  Substantial changes executed by contract amendments must be submitted to the ((office of financial management)) department of enterprise services, and are subject to approval by the ((office of financial management)) department of enterprise services.

      (2) An amendment or amendments to personal service contracts, if the value of the amendment or amendments, whether singly or cumulatively, exceeds fifty percent of the value of the original contract must be provided to the ((office of financial management)) department of enterprise services.

      (3) The ((office of financial management)) department of enterprise services shall approve amendments provided to it under this section before the amendments become binding and before services may be performed under the amendments.

      (4) The amendments must be filed with the ((office of financial management)) department of enterprise services and made available for public inspection at least ten working days prior to the proposed starting date of services under the amendments.

      (5) The ((office of financial management)) department of enterprise services shall approve amendments provided to it under this section only if they meet the criteria for approval of the amendments established by the director of the ((office of financial management)) department of enterprise services.

Sec. 526.  RCW 39.29.055 and 1998 c 101 s 8 are each amended to read as follows:

      (1) Personal service contracts subject to competitive solicitation shall be (a) filed with the ((office of financial management)) department of enterprise services and made available for public inspection; and (b) reviewed and approved by the ((office of financial management)) department of enterprise services when those contracts provide services relating to management consulting, organizational development, marketing, communications, employee training, or employee recruiting.

      (2) Personal service contracts subject to competitive solicitation that provide services relating to management consulting, organizational development, marketing, communications, employee training, or employee recruiting shall be made available for public inspection at least ten working days before the proposed starting date of the contract.  All other contracts shall be effective no earlier than the date they are filed with the ((office of financial management)) department of enterprise services.

Sec. 527.  RCW 39.29.065 and 2009 c 486 s 9 are each amended to read as follows:

      To implement this chapter, the director of the ((office of financial management)) department of enterprise services shall establish procedures for the competitive solicitation and award of personal service contracts, recordkeeping requirements, and procedures for the reporting and filing of contracts.  The director shall develop procurement policies and procedures, such as unbundled contracting and subcontracting, that encourage and facilitate the purchase of products and services by state agencies and institutions from Washington small businesses to the maximum extent practicable and consistent with international trade agreement commitments.  For reporting purposes, the director may establish categories for grouping of contracts.  The procedures required under this section shall also include the criteria for amending personal service contracts.  At the beginning of each biennium, the director may, by administrative policy, adjust the dollar thresholds prescribed in RCW 39.29.011, 39.29.018, and 39.29.040 to levels not to exceed the percentage increase in the implicit price deflator.  Adjusted dollar thresholds shall be rounded to the nearest five hundred dollar increment.

Sec. 528.  RCW 39.29.068 and 1998 c 245 s 33 and 1998 c 101 s 10 are each reenacted and amended to read as follows:

      The ((office of financial management)) department of enterprise services shall maintain a publicly available list of all personal service contracts entered into by state agencies during each fiscal year.  The list shall identify the contracting agency, the contractor, the purpose of the contract, effective dates and periods of performance, the cost of the contract and funding source, any modifications to the contract, and whether the contract was competitively procured or awarded on a sole source basis.  The ((office of financial management)) department of enterprise services shall also ensure that state accounting definitions and procedures are consistent with RCW 39.29.006 and permit the reporting of personal services expenditures by agency and by type of service.  Designations of type of services shall include, but not be limited to, management and organizational services, legal and expert witness services, financial services, computer and information services, social or technical research, marketing, communications, and employee training or recruiting services.  The ((office of financial management)) department of enterprise services shall report annually to the fiscal committees of the senate and house of representatives on sole source contracts filed under this chapter.  The report shall describe:  (1) The number and aggregate value of contracts for each category established in this section; (2) the number and aggregate value of contracts of five thousand dollars or greater but less than twenty thousand dollars; (3) the number and aggregate value of contracts of twenty thousand dollars or greater; (4) the justification provided by agencies for the use of sole source contracts; and (5) any trends in the use of sole source contracts.

Sec. 529.  RCW 39.29.075 and 1987 c 414 s 9 are each amended to read as follows:

      As requested by the legislative auditor, the ((office of financial management)) department of enterprise services shall provide information on contracts filed under this chapter for use in preparation of summary reports on personal services contracts.

Sec. 530.  RCW 39.29.090 and 1998 c 101 s 11 are each amended to read as follows:

      Personal service contracts awarded by institutions of higher education from nonstate funds do not have to be filed in advance and approved by the ((office of financial management)) department of enterprise services.  Any such contract is subject to all other requirements of this chapter, including the requirements under RCW 39.29.068 for annual reporting of personal service contracts to the ((office of financial management)) department of enterprise services.

Sec. 531.  RCW 39.29.100 and 2002 c 260 s 7 are each amended to read as follows:

      (1) The ((office of financial management)) department of enterprise services shall adopt uniform guidelines for the effective and efficient management of personal service contracts and client service contracts by all state agencies.  The guidelines must, at a minimum, include:

      (a) Accounting methods, systems, measures, and principles to be used by agencies and contractors;

      (b) Precontract procedures for selecting potential contractors based on their qualifications and ability to perform;

      (c) Incorporation of performance measures and measurable benchmarks in contracts, and the use of performance audits;

      (d) Uniform contract terms to ensure contract performance and compliance with state and federal standards;

      (e) Proper payment and reimbursement methods to ensure that the state receives full value for taxpayer moneys, including cost settlements and cost allowance;

      (f) Postcontract procedures, including methods for recovering improperly spent or overspent moneys for disallowance and adjustment;

      (g) Adequate contract remedies and sanctions to ensure compliance;

      (h) Monitoring, fund tracking, risk assessment, and auditing procedures and requirements;

      (i) Financial reporting, record retention, and record access procedures and requirements;

      (j) Procedures and criteria for terminating contracts for cause or otherwise; and

      (k) Any other subject related to effective and efficient contract management.

      (2) The ((office of financial management)) department of enterprise services shall submit the guidelines required by subsection (1) of this section to the governor and the appropriate standing committees of the legislature no later than December 1, 2002.

      (3) The ((office of financial management)) department of enterprise services shall publish a guidebook for use by state agencies containing the guidelines required by subsection (1) of this section.

Sec. 532.  RCW 39.29.110 and 2002 c 260 s 8 are each amended to read as follows:

      (1) A state agency entering into or renewing personal service contracts or client service contracts shall follow the guidelines required by RCW 39.29.100.

      (2) A state agency that has entered into or renewed personal service contracts or client service contracts during a calendar year shall, on or before January 1st of the following calendar year, provide the ((office of financial management)) department of enterprise services with a report detailing the procedures the agency employed in entering into, renewing, and managing the contracts.

      (3) The provisions of this section apply to state agencies entering into or renewing contracts after January 1, 2003.

Sec. 533.  RCW 39.29.120 and 2002 c 260 s 9 are each amended to read as follows:

      (1) The ((office of financial management)) department of enterprise services shall provide a training course for agency personnel responsible for executing and managing personal service contracts and client service contracts.  The course must contain training on effective and efficient contract management under the guidelines established under RCW 39.29.100.  State agencies shall require agency employees responsible for executing or managing personal service contracts and client service contracts to complete the training course to the satisfaction of the ((office of financial management)) department of enterprise services.  Beginning January 1, 2004, no agency employee may execute or manage personal service contracts or client service contracts unless the employee has completed the training course.  Any request for exception to this requirement shall be submitted to the ((office of financial management)) department of enterprise services in writing and shall be approved by the ((office of financial management)) department of enterprise services prior to the employee executing or managing the contract.

      (2)(a) The ((office of financial management)) department of enterprise services shall conduct risk-based audits of the contracting practices associated with individual personal service and client service contracts from multiple state agencies to ensure compliance with the guidelines established in RCW 39.29.110.  The ((office of financial management)) department of enterprise services shall conduct the number of audits deemed appropriate by the director of the ((office of financial management)) department of enterprise services based on funding provided.

      (b) The ((office of financial management)) department of enterprise services shall forward the results of the audits conducted under this section to the governor, the appropriate standing committees of the legislature, and the joint legislative audit and review committee.

Sec. 534.  RCW 43.88.580 and 2008 c 326 s 3 are each amended to read as follows:

      (1) The ((office of financial management)) department of enterprise services shall make electronically available to the public a database of state agency contracts for personal services required to be filed with the ((office of financial management)) department of enterprise services under chapter 39.29 RCW.

      (2) The state expenditure information web site described in RCW 44.48.150 shall include a link to the ((office of financial management)) department of enterprise services database described in subsection (1) of this section.

NEW SECTION.  Sec. 535.  RCW 43.41.280, 43.41.290, 43.41.300, 43.41.310, 43.41.320, 43.41.330, 43.41.340, 43.41.350, and 43.41.360 are each recodified as sections in chapter 43.19 RCW.

PART VI
POWERS AND DUTIES TRANSFERRED FROM THE
DEPARTMENT OF INFORMATION SERVICES

Sec. 601.  RCW 43.105.080 and 2010 1st sp.s. c 37 s 931 are each amended to read as follows:

      There is created a revolving fund to be known as the data processing revolving fund in the custody of the state treasurer.  The revolving fund shall be used for the acquisition of equipment, software, supplies, and services and the payment of salaries, wages, and other costs incidental to the acquisition, development, operation, and administration of information services, telecommunications, systems, software, supplies and equipment, including the payment of principal and interest on bonds issued for capital projects, by the department, Washington State University's computer services center, the department of ((personnel's)) enterprise services' personnel information systems ((division, the office of financial management's)) group and financial systems management group, and other users as ((jointly)) determined by the ((department and the)) office of financial management.  The revolving fund is subject to the allotment procedure provided under chapter 43.88 RCW.  Disbursements from the revolving fund for the services component of the department are not subject to appropriation.  The chief information officer or the chief information officer's designee, with the approval of the technology services board, is authorized to expend up to one million dollars per fiscal biennium for the technology services board to conduct independent technical and financial analysis of proposed information technology projects, and such expenditures do not require an appropriation.  Disbursements for the strategic planning and policy component of the department are subject to appropriation.  All disbursements from the fund are subject to the allotment procedures provided under chapter 43.88 RCW.  The department shall establish and implement a billing structure to assure all agencies pay an equitable share of the costs.

      During the 2009-2011 fiscal biennium, the legislature may transfer from the data processing revolving account to the state general fund such amounts as reflect the excess fund balance associated with the information technology pool.

      As used in this section, the word "supplies" shall not be interpreted to delegate or abrogate the division of purchasing's responsibilities and authority to purchase supplies as described in RCW 43.19.190 and 43.19.200.

Sec. 602.  RCW 43.105.320 and 1999 c 287 s 18 are each amended to read as follows:

      The department of ((information)) enterprise services may become a licensed certification authority, under chapter 19.34 RCW, for the purpose of providing services to agencies, local governments, and other entities and persons for purposes of official state business.  The department is not subject to RCW 19.34.100(1)(a).  The department shall only issue certificates, as defined in RCW 19.34.020, in which the subscriber is:

      (1) The state of Washington or a department, office, or agency of the state;

      (2) A city, county, district, or other municipal corporation, or a department, office, or agency of the city, county, district, or municipal corporation;

      (3) An agent or employee of an entity described by subsection (1) or (2) of this section, for purposes of official public business;

      (4) Any other person or entity engaged in matters of official public business, however, such certificates shall be limited only to matters of official public business.  The department may issue certificates to such persons or entities only if after issuing a request for proposals from certification authorities licensed under chapter 19.34 RCW and review of the submitted proposals, makes a determination that such private services are not sufficient to meet the department's published requirements.  The department must set forth in writing the basis of any such determination and provide procedures for challenge of the determination as provided by the state procurement requirements; or

      (5) An applicant for a license as a certification authority for the purpose of compliance with RCW 19.34.100(1)(a).

Sec. 603.  RCW 43.105.370 and 2009 c 509 s 2 are each amended to read as follows:

      (1) The broadband mapping account is established in the custody of the state treasurer.  The department shall deposit into the account such funds received from legislative appropriation, federal ((grants authorized under the federal broadband data improvement act, P.L. 110- 385, Title I)) funding, and donated funds from private and public sources.  Expenditures from the account may be used only for the purposes of RCW 43.105.372 through 43.105.376 (as recodified by this act).  Only the director of the department or the director's designee may authorize expenditures from the account.  The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

      (2) The department ((of information services)) is the single eligible entity in the state for purposes of the federal broadband ((data improvement act, P.L. 110-385, Title I)) mapping activities.

      (3) Federal funding received by the department ((under the federal broadband data improvement act, P.L. 110-385, Title I,)) for broadband mapping activities must be used in accordance with ((the)) any federal requirements ((of that act)) and, subject to those requirements, may be distributed by the department on a competitive basis to other entities in the state ((to achieve the purposes of that act)).

      (4) The department ((of information services)) shall consult with ((the department of community, trade, and economic development or its successor agency,)) the office of financial management((,)) and the utilities and transportation commission in coordinating broadband mapping activities.  In carrying out any broadband mapping activities, the provisions of P.L. 110-385, Title I, regarding trade secrets, commercial or financial information, and privileged or confidential information submitted by the federal communications commission or a broadband provider are deemed to encompass the consulted agencies.

Sec. 604.  RCW 43.105.372 and 2009 c 509 s 3 are each amended to read as follows:

      (1) Subject to the availability of federal or state funding, the department may:

      (a) Develop an interactive web site to allow residents to self- report whether high-speed internet is available at their home or residence and at what speed; and

      (b) Conduct a detailed survey of all high-speed internet infrastructure owned or leased by state agencies and ((creating [create])) create a geographic information system map of all high-speed internet infrastructure owned or leased by the state.

      (2) State agencies responding to a survey request from the department under subsection (1)(b) of this section shall respond in a reasonable and timely manner, not to exceed one hundred twenty days.  The department shall request of state agencies, at a minimum:

      (a) The total bandwidth of high-speed internet infrastructure owned or leased;

      (b) The cost of maintaining that high-speed internet infrastructure, if owned, or the price paid for the high-speed internet infrastructure, if leased; and

      (c) The leasing entity, if applicable.

      (3) The department may adopt rules as necessary to carry out the provisions of this section.

      (4) For purposes of this section, "state agency" includes every state office, department, division, bureau, board, commission, or other state agency.

Sec. 605.  RCW 43.105.374 and 2009 c 509 s 4 are each amended to read as follows:

      (1) The department is authorized, through a competitive bidding process, to procure on behalf of the state a geographic information system map detailing high-speed internet infrastructure, service availability, and adoption.  This geographic information system map may include adoption information, availability information, type of high- speed internet deployment technology, and available speed tiers for high-speed internet based on any publicly available data.

      (2) The department may procure this map either by:

      (a) Contracting for and purchasing a completed map or updates to a map from a third party; or

      (b) Working directly with the federal communications commission to accept publicly available data.

      (3) The department shall establish an accountability and oversight structure to ensure that there is transparency in the bidding and contracting process and full financial and technical accountability for any information or actions taken by a third-party contractor creating this map.

      (4) In contracting for purchase of the map or updates to a map in subsection (2)(a) of this section, the department may take no action, nor impose any condition on the third party, that causes any record submitted by a public or private broadband service provider to the third party to meet the standard of a public record as defined in RCW 42.56.010.  This prohibition does not apply to any records delivered to the department by the third party as a component of the ((completed)) map.  For the purpose of RCW 42.56.010(((2))) (3), the purchase by the department of a completed map or updates to a map may not be deemed use or ownership by the department of the underlying information used by the third party to complete the map.

      (5) Data or information that is publicly available as of July 1, 2009, will not cease to be publicly available due to any provision of chapter 509, Laws of 2009.

Sec. 606.  RCW 43.105.376 and 2009 c 509 s 5 are each amended to read as follows:

      (1) The department, in coordination with ((the department of community, trade, and economic development and)) the utilities and transportation commission, and such advisors as the department chooses, may prepare regular reports that identify the following:

      (a) The geographic areas of greatest priority for the deployment of advanced telecommunications infrastructure in the state;

      (b) A detailed explanation of how any amount of funding received from the federal government for the purposes of broadband mapping, deployment, and adoption will be or have been used; and

      (c) A determination of how nonfederal sources may be utilized to achieve the purposes of broadband mapping, deployment, and adoption activities in the state.

      (2) To the greatest extent possible, the initial report should be based upon the information identified in the geographic system maps developed under the requirements of this chapter.

      (3) The initial report should be delivered to the appropriate committees of the legislature as soon as feasible, but no later than January 18, 2010.

      (4) Any future reports prepared by the department based upon the requirements of subsection (1) of this section should be delivered to the appropriate committees of the legislature by January 15th of each year.

Sec. 607.  RCW 43.105.380 and 2009 c 509 s 6 are each amended to read as follows:

      The community technology opportunity program is created to support the efforts of community technology programs throughout the state.  The community technology opportunity program must be administered by the department ((of information services)).  The department may contract for services in order to carry out the department's obligations under this section.

      (1) In implementing the community technology opportunity program the ((administrator)) director must, to the extent funds are appropriated for this purpose:

      (a) Provide organizational and capacity building support to community technology programs throughout the state, and identify and facilitate the availability of other public and private sources of funds to enhance the purposes of the program and the work of community technology programs.  No more than fifteen percent of funds received by the ((administrator)) director for the program may be expended on these functions;

      (b) Establish a competitive grant program and provide grants to community technology programs to provide training and skill-building opportunities; access to hardware and software; internet connectivity; digital media literacy; assistance in the adoption of information and communication technologies in low-income and underserved areas of the state; and development of locally relevant content and delivery of vital services through technology.

      (2) Grant applicants must:

      (a) Provide evidence that the applicant is a nonprofit entity or a public entity that is working in partnership with a nonprofit entity;

      (b) Define the geographic area or population to be served;

      (c) Include in the application the results of a needs assessment addressing, in the geographic area or among the population to be served:  The impact of inadequacies in technology access or knowledge, barriers faced, and services needed;

      (d) Explain in detail the strategy for addressing the needs identified and an implementation plan including objectives, tasks, and benchmarks for the applicant and the role that other organizations will play in assisting the applicant's efforts;

      (e) Provide evidence of matching funds and resources, which are equivalent to at least one-quarter of the grant amount committed to the applicant's strategy;

      (f) Provide evidence that funds applied for, if received, will be used to provide effective delivery of community technology services in alignment with the goals of this program and to increase the applicant's level of effort beyond the current level; and

      (g) Comply with such other requirements as the ((administrator)) director establishes.

      (3) The ((administrator)) director may use no more than ten percent of funds received for the community technology opportunity program to cover administrative expenses.

      (4) The ((administrator)) director must establish expected program outcomes for each grant recipient and must require grant recipients to provide an annual accounting of program outcomes.

Sec. 608.  RCW 43.105.382 and 2009 c 509 s 8 are each amended to read as follows:

      The Washington community technology opportunity account is established in the state treasury.  The governor or the governor's designee and the director or the director's designee shall deposit into the account federal grants to the state ((authorized under Division B, Title VI of the American recovery and reinvestment act of 2009)), legislative appropriations, and donated funds from private and public sources for purposes related to broadband deployment and adoption, including matching funds required by the act.  Donated funds from private and public sources may be deposited into the account.  Expenditures from the account may be used only as matching funds for federal and other grants to fund the operation of the community technology opportunity program under this chapter, and to fund other broadband-related activities authorized in chapter 509, Laws of 2009.  Only the director or the director's designee may authorize expenditures from the account.

Sec. 609.  RCW 43.105.390 and 2009 c 509 s 9 are each amended to read as follows:

      (1) The governor may take all appropriate steps to ((carry out the purposes of Division B, Title VI of the American recovery and reinvestment act of 2009, P.L. 111-5, and)) seek federal funding in order to maximize investment in broadband deployment and adoption in the state of Washington ((consistent with chapter 509, Laws of 2009)).  Such steps may include the designation of a broadband deployment and adoption coordinator; review and prioritization of grant applications by public and private entities as directed by the national telecommunications and information administration, the rural utility services, and the federal communications commission; disbursement of block grant funding; and direction to state agencies to provide staffing as necessary to carry out this section.  The authority for overseeing broadband adoption and deployment efforts on behalf of the state is vested in the department.

      (2) The department may apply for federal funds and other grants or donations, may deposit such funds in the Washington community technology opportunity account created in RCW 43.105.382 (as recodified by this act), may oversee implementation of federally funded or mandated broadband programs for the state and may adopt rules to administer the programs.  These programs may include but are not limited to the following:

      (a) Engaging in periodic statewide surveys of residents, businesses, and nonprofit organizations concerning their use and adoption of high-speed internet, computer, and related information technology for the purpose of identifying barriers to adoption;

      (b) Working with communities to identify barriers to the adoption of broadband service and related information technology services by individuals, nonprofit organizations, and businesses;

      (c) Identifying broadband demand opportunities in communities by working cooperatively with local organizations, government agencies, and businesses;

      (d) Creating, implementing, and administering programs to improve computer ownership, technology literacy, digital media literacy, and high-speed internet access for populations not currently served or underserved in the state.  This may include programs to provide low- income families, community-based nonprofit organizations, nonprofit entities, and public entities that work in partnership with nonprofit entities to provide increased access to computers and broadband, with reduced cost internet access;

      (e) Administering the community technology opportunity program under RCW 43.105.380 and 43.105.382 (as recodified by this act);

      (f) Creating additional programs to spur the development of high- speed internet resources in the state;

      (g) Establishing technology literacy and digital inclusion programs and establishing low-cost hardware, software, and internet purchasing programs that may include allowing participation by community technology programs in state purchasing programs; and

      (h) Developing technology loan programs targeting small businesses or businesses located in unserved and underserved areas.

Sec. 610.  RCW 43.105.400 and 2009 c 509 s 10 are each amended to read as follows:

      (((1))) Subject to the availability of federal or state funding, the department may ((reconvene the high-speed internet work group previously established by chapter 262, Laws of 2008.  The work group is renamed the advisory council on digital inclusion, and is)) convene an advisory group ((to the department)) on digital inclusion and technology planning.  The ((council must)) advisory group may include, but is not limited to, volunteer representatives from community technology organizations, telecommunications providers, higher education institutions, K-12 education institutions, public health institutions, public housing entities, and local government and other governmental entities that are engaged in community technology activities.

      (((2) The council shall prepare a report by January 15th of each year and submit it to the department, the governor, and the appropriate committees of the legislature.  The report must contain: 
      (a) An analysis of how support from public and private sector partnerships, the philanthropic community, and other not-for-profit organizations in the community, along with strong relationships with the state board for community and technical colleges, the higher education coordinating board, and higher education institutions, could establish a variety of high-speed internet access alternatives for citizens;
      (b) Proposed strategies for continued broadband deployment and adoption efforts, as well as further development of advanced telecommunications applications;
      (c) Recommendations on methods for maximizing the state's research and development capacity at universities and in the private sector for developing advanced telecommunications applications and services, and recommendations on incentives to stimulate the demand for and development of these applications and services;
      (d) An identification of barriers that hinder the advancement of technology entrepreneurship in the state; and
      (e) An evaluation of programs designed to advance digital literacy and computer access that are made available by the federal government, local agencies, telecommunications providers, and business and charitable entities.))

Sec. 611.  RCW 41.07.030 and 1975 1st ex.s. c 239 s 3 are each amended to read as follows:

      The costs of administering, maintaining, and operating the central personnel-payroll system shall be distributed to the using state agencies.  In order to insure proper and equitable distribution of costs the department of personnel shall utilize cost accounting procedures to identify all costs incurred in the administration, maintenance, and operation of the central personnel-payroll system.  In order to facilitate proper and equitable distribution of costs to the using state agencies the department of personnel is authorized to utilize the data processing revolving fund created by RCW 43.105.080 (as recodified by this act) and the ((department of)) personnel service fund created by RCW 41.06.280.

Sec. 612.  RCW 43.99I.040 and 1997 c 456 s 39 are each amended to read as follows:

      (1) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020(4), the state treasurer shall transfer from property taxes in the state general fund levied for this support of the common schools under RCW 84.52.065 to the general fund of the state treasury for unrestricted use the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(4).

      (2) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020(5), the state treasurer shall transfer from higher education operating fees deposited in the general fund to the general fund of the state treasury for unrestricted use, or if chapter 231, Laws of 1992 (Senate Bill No. 6285) becomes law and changes the disposition of higher education operating fees from the general fund to another account, the state treasurer shall transfer the proportional share from the University of Washington operating fees account, the Washington State University operating fees account, and the Central Washington University operating fees account the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(6).

      (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020(6), the state treasurer shall transfer from the data processing revolving fund created in RCW 43.105.080 (as recodified by this act) to the general fund of the state treasury the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(6).

      (4) On each date on which any interest or principal and interest payment is due on bonds issued for the purpose of RCW 43.99I.020(7), the Washington state dairy products commission shall cause the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(7) to be paid out of the commission's general operating fund to the state treasurer for deposit into the general fund of the state treasury.

      (5) The higher education operating fee accounts for the University of Washington, Washington State University, and Central Washington University established by chapter 231, Laws of 1992 and repealed by chapter 18, Laws of 1993 1st sp. sess. are reestablished in the state treasury for purposes of fulfilling debt service reimbursement transfers to the general fund required by bond resolutions and covenants for bonds issued for purposes of RCW 43.99I.020(5).

      (6) For bonds issued for purposes of RCW 43.99I.020(5), on each date on which any interest or principal and interest payment is due, the board of regents or board of trustees of the University of Washington, Washington State University, or Central Washington University shall cause the amount as determined by the state treasurer to be paid out of the local operating fee account for deposit by the universities into the state treasury higher education operating fee accounts.  The state treasurer shall transfer the proportional share from the University of Washington operating fees account, the Washington State University operating fees account, and the Central Washington University operating fees account the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(6) to reimburse the general fund.

NEW SECTION.  Sec. 613.  The following acts or parts of acts are each repealed:

      (1) RCW 43.105.300 (Education in use of technology encouraged) and 1996 c 171 s 14; and

      (2) RCW 43.105.360 (Web directory‑-Public community technology programs) and 2008 c 262 s 5.

NEW SECTION.  Sec. 614.  RCW 43.105.080, 43.105.320, and 43.105.410 are each recodified as sections in chapter 43.19 RCW.

NEW SECTION.  Sec. 615.  RCW 43.105.370, 43.105.372, 43.105.374, 43.105.376, 43.105.380, 43.105.382, 43.105.390, and 43.105.400 are each recodified as sections in chapter 43.330 RCW.

PART VII
CREATING THE OFFICE OF THE CHIEF INFORMATION OFFICER

NEW SECTION.  Sec. 701.  Information technology is a tool used by state agencies to improve their ability to deliver public services efficiently and effectively.  Advances in information technology - including advances in hardware, software, and business processes for implementing and managing these resources - offer new opportunities to improve the level of support provided to citizens and state agencies and to reduce the per-transaction cost of these services.  These advances are one component in the process of reengineering how government delivers services to citizens.

      To fully realize the service improvements and cost efficiency from the effective application of information technology to its business processes, state government must establish decision-making structures that connect business processes and information technology in an operating model.  Many of these business practices transcend individual agency processes and should be worked at the enterprise level.  To do this requires an effective partnership of executive management, business processes owners, and providers of support functions necessary to efficiently and effectively deliver services to citizens.

      To maximize the potential for information technology to contribute to government business process reengineering the state must establish clear central authority to plan, set enterprise standards, and provide project oversight and management analysis of the various aspects of a business process.

      Establishing the office of the chief information officer and partnering it with the director of financial management will provide state government with the cohesive structure necessary to develop improved operating models with agency directors and reengineer business process to enhance service delivery while capturing savings.

NEW SECTION.  Sec. 702.  (1) The office of the chief information officer is created within the office of financial management.

      (2) Powers, duties, and functions assigned to the department of information services as specified in this chapter shall be transferred to the office of the chief information officer as provided in this chapter.

      (3) The primary duties of the office are:

      (a) To prepare and lead the implementation of a strategic direction and enterprise architecture for information technology for state government;

      (b) To enable the standardization and consolidation of information technology infrastructure across all state agencies to support enterprise-based system development and improve and maintain service delivery;

      (c) To establish standards and policies for the consistent and efficient operation of information technology services throughout state government;

      (d) To establish statewide enterprise architecture that will serve as the organizing standard for information technology for state agencies;

      (e) Educate and inform state managers and policymakers on technological developments, industry trends and best practices, industry benchmarks that strengthen decision making and professional development, and industry understanding for public managers and decision makers.

      (4) In the case of institutions of higher education, the powers of the office and the provisions of this chapter apply to business and administrative applications but do not apply to (a) academic and research applications; and (b) medical, clinical, and health care applications, including the business and administrative applications for such operations.  However, institutions of higher education must disclose to the office any proposed academic applications that are enterprise-wide in nature relative to the needs and interests of other institutions of higher education.

      (5) The legislature and the judiciary, which are constitutionally recognized as separate branches of government, are strongly encouraged to coordinate with the office and participate in shared services initiatives and the development of enterprise-based strategies, where appropriate.

NEW SECTION.  Sec. 703.  (1) The executive head and appointing authority of the office is the chief information officer.  The chief information officer shall be appointed by the governor, subject to confirmation by the senate.  The chief information officer shall serve at the pleasure of the governor.  The chief information officer shall be paid a salary fixed by the governor.  If a vacancy occurs in the position of the chief information officer while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate at which time he or she shall present to that body his or her nomination for the position.

      (2) The chief information officer may employ staff members, some of whom may be exempt from chapter 41.06 RCW, and any additional staff members as are necessary to administer this chapter, and such other duties as may be authorized by law.  The chief information officer may delegate any power or duty vested in him or her by this chapter or other law.

      (3) The internal affairs of the office shall be under the control of the chief information officer in order that the chief information officer may manage the office in a flexible and intelligent manner as dictated by changing contemporary circumstances.  Unless specifically limited by law, the chief information officer shall have complete charge and supervisory powers over the office.  The chief information officer may create such administrative structures as the chief information officer deems appropriate, except as otherwise specified by law, and the chief information officer may employ staff members as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

NEW SECTION.  Sec. 704.  The chief information officer shall:

      (1) Supervise and administer the activities of the office of the chief information officer;

      (2) Exercise all the powers and perform all the duties prescribed by law with respect to the administration of this chapter including:

      (a) Appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed by this chapter; and

      (b) Report to the governor any matters relating to abuses and evasions of this chapter.

      (3) In addition to other powers and duties granted, the chief information officer has the following powers and duties:

      (a) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

      (b) Accept and expend gifts and grants that are related to the purposes of this chapter, whether such grants be of federal or other funds;

      (c) Apply for grants from public and private entities, and receive and administer any grant funding received for the purpose and intent of this chapter;

      (d) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter;

      (e) Delegate powers, duties, and functions as the chief information officer deems necessary for efficient administration, but the chief information officer shall be responsible for the official acts of the officers and employees of the office; and

      (f) Perform other duties as are necessary and consistent with law.

NEW SECTION.  Sec. 705.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities.  It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network.

      (2) "Board" means the technology services board.

      (3) "Committee" means the state interoperability executive committee.

      (4) "Educational sectors" means those institutions of higher education, school districts, and educational service districts that use the network for distance education, data transmission, and other uses permitted by the board.

      (5) "Enterprise architecture" means an ongoing program for translating business vision and strategy into effective enterprise change.  It is a continuous activity.  Enterprise architecture creates, communicates, and improves the key principles and models that describe the enterprise's future state and enable its evolution.

      (6) "Equipment" means the machines, devices, and transmission facilities used in information processing, including but not limited to computers, terminals, telephones, wireless communications system facilities, cables, and any physical facility necessary for the operation of such equipment.

      (7) "Information" includes, but is not limited to, data, text, voice, and video.

      (8) "Information technology" includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines.

      (9) "Information technology portfolio" or "portfolio" means a strategic management process documenting relationships between agency missions and information technology and telecommunications investments.

      (10) "K-20 network" means the network established in section 718 of this act.

      (11) "Local governments" includes all municipal and quasi-municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately.

      (12) "Office" means the office of the chief information officer.

      (13) "Oversight" means a process of comprehensive risk analysis and management designed to ensure optimum use of information technology resources and telecommunications.

      (14) "Proprietary software" means that software offered for sale or license.

      (15) "State agency" or "agency" means every state office, department, division, bureau, board, commission, or other state agency, including offices headed by a statewide elected official.

      (16) "Telecommunications" includes, but is not limited to, wireless or wired systems for transport of voice, video, and data communications, network systems, requisite facilities, equipment, system controls, simulation, electronic commerce, and all related interactions between people and machines.  "Telecommunications" does not include public safety communications.

STANDARDS AND POLICIES

NEW SECTION.  Sec. 706.  (1) The chief information officer shall establish standards and policies to govern information technology in the state of Washington.

      (2) The office shall have the following powers and duties related to information services:

      (a) To develop statewide standards and policies governing the acquisition and disposition of equipment, software, and personal and purchased services, licensing of the radio spectrum by or on behalf of state agencies, and confidentiality of computerized data;

      (b) To develop statewide or interagency technical policies, standards, and procedures;

      (c) To review and approve standards and common specifications for new or expanded telecommunications networks proposed by agencies, public postsecondary education institutions, educational service districts, or statewide or regional providers of K-12 information technology services;

      (d) To provide direction concerning strategic planning goals and objectives for the state.  The office shall seek input from the legislature and the judiciary; and

      (e) To establish policies for the periodic review by the office of agency performance which may include but are not limited to analysis of:

      (i) Planning, management, control, and use of information services;

      (ii) Training and education; and

      (iii) Project management.

      (3) Statewide technical standards to promote and facilitate electronic information sharing and access are an essential component of acceptable and reliable public access service and complement content- related standards designed to meet those goals.  The office shall:

      (a) Establish technical standards to facilitate electronic access to government information and interoperability of information systems, including wireless communications systems; and

      (b) Require agencies to include an evaluation of electronic public access needs when planning new information systems or major upgrades of systems.

      In developing these standards, the office is encouraged to include the state library, state archives, and appropriate representatives of state and local government.

      (4) The office shall perform other matters and things necessary to carry out the purposes and provisions of this chapter.

STRATEGIC PLANNING

NEW SECTION.  Sec. 707.  (1) The office shall prepare a state strategic information technology plan which shall establish a statewide mission, goals, and objectives for the use of information technology, including goals for electronic access to government records, information, and services.  The plan shall be developed in accordance with the standards and policies established by the office.  The office shall seek the advice of the board in the development of this plan.

      The plan shall be updated as necessary and submitted to the governor and the legislature.

      (2) The office shall prepare a biennial state performance report on information technology based on agency performance reports required under section 710 of this act and other information deemed appropriate by the office.  The report shall include, but not be limited to:

      (a) An analysis, based upon agency portfolios, of the state's information technology infrastructure, including its value, condition, and capacity;

      (b) An evaluation of performance relating to information technology;

      (c) An assessment of progress made toward implementing the state strategic information technology plan, including progress toward electronic access to public information and enabling citizens to have two-way access to public records, information, and services; and

      (d) An analysis of the success or failure, feasibility, progress, costs, and timeliness of implementation of major information technology projects under section 712 of this act.  At a minimum, the portion of the report regarding major technology projects must include:

      (i) The total cost data for the entire life-cycle of the project, including capital and operational costs, broken down by staffing costs, contracted service, hardware purchase or lease, software purchase or lease, travel, and training.  The original budget must also be shown for comparison;

      (ii) The original proposed project schedule and the final actual project schedule;

      (iii) Data regarding progress towards meeting the original goals and performance measures of the project;

      (iv) Discussion of lessons learned on the project, performance of any contractors used, and reasons for project delays or cost increases; and

      (v) Identification of benefits generated by major information technology projects developed under section 712 of this act.

      Copies of the report shall be distributed biennially to the governor and the legislature.  The major technology section of the report must examine major information technology projects completed in the previous biennium.

PORTFOLIO MANAGEMENT

NEW SECTION.  Sec. 708.  Management of information technology across state government requires managing resources and business processes across multiple agencies.  It is no longer sufficient to pursue efficiencies within agency or individual business process boundaries.  The state must manage the business process changes and information technology in support of business processes as a statewide portfolio.  The chief information officer will use agency information technology portfolio planning as input to develop a statewide portfolio to guide resource allocation and prioritization decisions.

NEW SECTION.  Sec. 709.  An agency information technology portfolio shall serve as the basis for making information technology decisions and plans which may include, but are not limited to:

      (1) System refurbishment, acquisitions, and development efforts;

      (2) Setting goals and objectives for using information technology;

      (3) Assessments of information processing performance, resources, and capabilities;

      (4) Ensuring the appropriate transfer of technological expertise for the operation of new systems developed using external resources;

      (5) Guiding new investment demand, prioritization, selection, performance, and asset value of technology and telecommunications; and

      (6) Progress toward providing electronic access to public information.

NEW SECTION.  Sec. 710.  (1) Each agency shall develop an information technology portfolio consistent with RCW 43.105.172 (as recodified by this act).  The superintendent of public instruction shall develop its portfolio in conjunction with educational service districts and statewide or regional providers of K-12 education information technology services.

      (2) Agency portfolios shall include, but not be limited to, the following:

      (a) A baseline assessment of the agency's information technology resources and capabilities that will serve as the benchmark for subsequent planning and performance measures;

      (b) A statement of the agency's mission, goals, and objectives for information technology, including goals and objectives for achieving electronic access to agency records, information, and services;

      (c) An explanation of how the agency's mission, goals, and objectives for information technology support and conform to the state strategic information technology plan developed under section 707 of this act;

      (d) An implementation strategy to provide electronic access to public records and information.  This implementation strategy must be assembled to include:

      (i) Compliance with Title 40 RCW;

      (ii) Adequate public notice and opportunity for comment;

      (iii) Consideration of a variety of electronic technologies, including those that help transcend geographic locations, standard business hours, economic conditions of users, and disabilities;

      (iv) Methods to educate both state employees and the public in the effective use of access technologies;

      (e) Projects and resources required to meet the objectives of the portfolio; and

      (f) Where feasible, estimated schedules and funding required to implement identified projects.

      (3) Portfolios developed under subsection (1) of this section shall be submitted to the office for review and approval.  The chief information officer may reject, require modification to, or approve portfolios as deemed appropriate.  Portfolios submitted under this subsection shall be updated and submitted for review and approval as necessary.

      (4) Each agency shall prepare and submit to the office a biennial performance report that evaluates progress toward the objectives articulated in its information technology portfolio and the strategic priorities of the state.  The superintendent of public instruction shall develop its portfolio in conjunction with educational service districts and statewide or regional providers of K-12 education information technology services.  The report shall include:

      (a) An evaluation of the agency's performance relating to information technology;

      (b) An assessment of progress made toward implementing the agency information technology portfolio;

      (c) Progress toward electronic access to public information and enabling citizens to have two-way interaction for obtaining information and services from agencies; and

      (d) An inventory of agency information services, equipment, and proprietary software.

      (5) The office shall establish standards, elements, form, and format for plans and reports developed under this section.

      (6) Agency activities to increase electronic access to public records and information, as required by this section, must be implemented within available resources and existing agency planning processes.

      (7) The office may exempt any agency from any or all of the requirements of this section.

BUDGET REVIEW

NEW SECTION.  Sec. 711.  (1) At the request of the director of financial management, the office shall evaluate both state agency information technology current spending and technology budget requests, including those proposed by the superintendent of public instruction, in conjunction with educational service districts, or statewide or regional providers of K-12 education information technology services.  The office shall submit recommendations for funding all or part of such requests to the director of financial management.  The office shall also submit recommendations regarding consolidation and coordination of similar proposals or other efficiencies it finds in reviewing proposals.

      (2) The office shall establish criteria, consistent with portfolio- based information technology management, for the evaluation of agency budget requests under this section.  Technology budget requests shall be evaluated in the context of the state's information technology portfolio; technology initiatives underlying budget requests are subject to review by the office.  Criteria shall include, but not be limited to:  Feasibility of the proposed projects, consistency with the state strategic information technology plan and the state enterprise architecture, consistency with information technology portfolios, appropriate provision for public electronic access to information, evidence of business process streamlining and gathering of business and technical requirements, services, duration of investment, costs, and benefits.

PROJECT MANAGEMENT OVERSIGHT

NEW SECTION.  Sec. 712.  (1) The office shall establish standards and policies governing the planning, implementation, and evaluation of major information technology projects, including those proposed by the superintendent of public instruction, in conjunction with educational service districts, or statewide or regional providers of K-12 education information technology services.  The standards and policies shall:

      (a) Establish criteria to identify projects which are subject to this section.  Such criteria shall include, but not be limited to, significant anticipated cost, complexity, or statewide significance of the project; and

      (b) Establish a model process and procedures which state agencies shall follow in developing and implementing projects within their information technology portfolios.  This process may include project oversight experts or panels, as appropriate.  Agencies may propose, for approval by the office, a process and procedures unique to the agency.  The office may accept or require modification of such agency proposals or the office may reject such agency proposals and require use of the model process and procedures established under this subsection.  Any process and procedures developed under this subsection shall require (i) distinct and identifiable phases upon which funding may be based, (ii) user validation of products through system demonstrations and testing of prototypes and deliverables, and (iii) other elements identified by the office.

      The chief information officer may suspend or terminate a major project, and direct that the project funds be placed into unallotted reserve status, if the chief information officer determines that the project is not meeting or is not expected to meet anticipated performance standards.

      (2) The office of financial management shall establish policies and standards consistent with portfolio-based information technology management to govern the funding of projects developed under this section.  The policies and standards shall provide for:

      (a) Funding of a project under terms and conditions mutually agreed to by the chief information officer, the director of financial management, and the head of the agency proposing the project.  However, the office of financial management may require incremental funding of a project on a phase-by-phase basis whereby funds for a given phase of a project may be released only when the office of financial management determines, with the advice of the office, that the previous phase is satisfactorily completed; and

      (b) Other elements deemed necessary by the office of financial management.

NEW SECTION.  Sec. 713.  (1) Prior to making a commitment to purchase, acquire, or develop a major information technology product or service, state agencies must provide a proposal to the office outlining the business case of the proposed product or service, including the upfront and ongoing cost of the proposal.

      (2) Within sixty days of receipt of a proposal, the office shall approve the proposal, reject it, or propose modifications.

      (3) In reviewing a proposal, the office must determine whether the product or service is consistent with:

      (a) The standards and policies developed by the office pursuant to section 706 of this act; and

      (b) The state's enterprise-based strategy.

      (4) If a substantially similar product or service is offered by the consolidated technology services agency established in RCW 43.105.047, the office may require the agency to procure the product or service through the consolidated technology services agency, if doing so would benefit the state as an enterprise.

      (5) The office shall provide guidance to agencies as to what threshold of information technology spending constitutes a major information technology product or service under this section.  If the total cost of ownership of a proposed information technology product or service exceeds ten million dollars, the office shall require that the agency conduct an independent technical and financial analysis of the product or service prior to submitting a technology budget request to the office of financial management for inclusion in any proposed capital, operating, or transportation budget.

ENTERPRISE ARCHITECTURE

NEW SECTION.  Sec. 714.  (1) The office shall develop an enterprise-based strategy for information technology in state government informed by portfolio management planning and information technology expenditure information collected from state agencies pursuant to RCW 43.88.092.

      (2)(a) The office shall develop an ongoing enterprise architecture program for translating business vision and strategy into effective enterprise change.  This program will create, communicate, and improve the key principles and models that describe the enterprise's future state and enable its evolution, in keeping with the priorities of government and the information technology strategic plan.

      (b) The enterprise architecture program will facilitate business process collaboration among agencies statewide; improving the reliability, interoperability, and sustainability of the business processes that state agencies use.

      In developing an enterprise-based strategy for the state, the office is encouraged to consider the following strategies as possible opportunities for achieving greater efficiency:

      (i) Developing evaluation criteria for deciding which common enterprise-wide business processes should become managed as enterprise services;

      (ii) Developing a roadmap of priorities for creating enterprise services;

      (iii) Developing decision criteria for determining implementation criteria for centralized or decentralized enterprise services;

      (iv) Developing evaluation criteria for deciding which technology investments to continue, hold, or drop; and

      (v) Performing such other duties as may be assigned by the office to promote effective enterprise change.

      (c) The program will establish performance measurement criteria for each of its initiatives; will measure the success of those initiatives; and will assess its quarterly results with the chief information officer to determine whether to continue, revise, or disband the initiative.

ADVISORY BOARD--CREATION AND DUTIES

NEW SECTION.  Sec. 715.  The technology services board is created within the office of the chief information officer.

      (1) The board shall be composed of eleven members.  Six members shall be appointed by the governor, three of whom shall be representatives of state agencies or institutions, and three of whom shall be representatives of the private sector.  Of the state agency representatives, at least one of the representatives must have direct experience using the software projects overseen by the board or reasonably expect to use the new software developed under the oversight of the board.  Two members shall represent the house of representatives and shall be selected by the speaker of the house of representatives with one representative chosen from each major caucus of the house of representatives; two members shall represent the senate and shall be appointed by the president of the senate with one representative chosen from each major caucus of the senate.  One member shall be the chief information officer who shall be a voting member of the board and serve as chair.

      (2) Of the initial members, two must be appointed for a one-year term, three must be appointed for a two-year term, and three must be appointed for a three-year term.  Thereafter, members must be appointed for three-year terms.

      (3) Vacancies shall be filled in the same manner that the original appointments were made for the remainder of the member's term.

      (4) Members of the board shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

      (5) The office shall provide staff support to the board.

NEW SECTION.  Sec. 716.  The board shall have the following powers and duties related to information services:

      (1) To review and approve standards and procedures, developed by the office of the chief information officer, governing the acquisition and disposition of equipment, proprietary software, and purchased services, licensing of the radio spectrum by or on behalf of state agencies, and confidentiality of computerized data;

      (2) To review and approve statewide or interagency technical policies, standards, and procedures developed by the office of the chief information officer;

      (3) To review, approve, and provide oversight of major information technology projects to ensure that no major information technology project proposed by a state agency is approved or authorized funding by the board without consideration of the technical and financial business case for the project, including a review of:

      (a) The total cost of ownership across the life of the project;

      (b) All major technical options and alternatives analyzed, and reviewed, if necessary, by independent technical sources; and

      (c) Whether the project is technically and financially justifiable when compared against the state's enterprise-based strategy, long-term technology trends, and existing or potential partnerships with private providers or vendors.

      (4) To review and approve standards and common specifications for new or expanded telecommunications networks proposed by agencies, public postsecondary education institutions, educational service districts, or statewide or regional providers of K-12 information technology services, and to assure the cost-effective development and incremental implementation of a statewide video telecommunications system to serve:  Public schools; educational service districts; vocational-technical institutes; community colleges; colleges and universities; state and local government; and the general public through public affairs programming;

      (5) To consider, on an ongoing basis, ways to promote strategic investments in enterprise-level information technology projects that will result in service improvements and cost efficiency;

      (6) To provide a forum to solicit external expertise and perspective on developments in information technology, enterprise architecture, standards, and policy development; and

      (7) To provide a forum where ideas and issues related to information technology plans, policies, and standards can be reviewed.

INTEROPERABILITY COMMITTEE--TRANSFER FROM DEPARTMENT OF
INFORMATION SERVICES

NEW SECTION.  Sec. 717.  (1) The chief information officer shall appoint a state interoperability executive committee, the membership of which must include, but not be limited to, representatives of the military department, the Washington state patrol, the department of transportation, the office of the chief information officer, the department of natural resources, city and county governments, state and local fire chiefs, police chiefs, and sheriffs, and state and local emergency management directors.  The chair and legislative members of the board will serve as nonvoting ex officio members of the committee.  Voting membership may not exceed fifteen members.

      (2) The chief information officer shall appoint the chair of the committee from among the voting members of the committee.

      (3) The state interoperability executive committee has the following responsibilities:

      (a) Develop policies and make recommendations to the office for technical standards for state wireless radio communications systems, including emergency communications systems.  The standards must address, among other things, the interoperability of systems, taking into account both existing and future systems and technologies;

      (b) Coordinate and manage on behalf of the office the licensing and use of state-designated and state-licensed radio frequencies, including the spectrum used for public safety and emergency communications, and serve as the point of contact with the federal communications commission on matters relating to allocation, use, and licensing of radio spectrum;

      (c) Coordinate the purchasing of all state wireless radio communications system equipment to ensure that:

      (i) After the transition from a radio over internet protocol network, any new trunked system shall be, at a minimum, project‑25;

      (ii) Any new system that requires advanced digital features shall be, at a minimum, project-25; and

      (iii) Any new system or equipment purchases shall be, at a minimum, upgradable to project-25;

      (d) Seek support, including possible federal or other funding, for state-sponsored wireless communications systems;

      (e) Develop recommendations for legislation that may be required to promote interoperability of state wireless communications systems;

      (f) Foster cooperation and coordination among public safety and emergency response organizations;

      (g) Work with wireless communications groups and associations to ensure interoperability among all public safety and emergency response wireless communications systems; and

      (h) Perform such other duties as may be assigned by the office to promote interoperability of wireless communications systems.

      (4) The office shall provide administrative support to the committee.

K-20 GOVERNANCE AND OPERATIONS OVERSIGHT--TRANSFER FROM
DEPARTMENT OF INFORMATION SERVICES

NEW SECTION.  Sec. 718.  (1) The office has the duty to govern and oversee the technical design, implementation, and operation of the K-20 network including, but not limited to, the following duties:  Establishment and implementation of K-20 network technical policy, including technical standards and conditions of use; review and approval of network design; and resolving user/provider disputes.

      (2) The office has the following powers and duties:

      (a) In cooperation with the educational sectors and other interested parties, to establish goals and measurable objectives for the network;

      (b) To ensure that the goals and measurable objectives of the network are the basis for any decisions or recommendations regarding the technical development and operation of the network;

      (c) To adopt, modify, and implement policies to facilitate network development, operation, and expansion.  Such policies may include but need not be limited to the following issues:  Quality of educational services; access to the network by recognized organizations and accredited institutions that deliver educational programming, including public libraries; prioritization of programming within limited resources; prioritization of access to the system and the sharing of technological advances; network security; identification and evaluation of emerging technologies for delivery of educational programs; future expansion or redirection of the system; network fee structures; and costs for the development and operation of the network;

      (d) To prepare and submit to the governor and the legislature a coordinated budget for network development, operation, and expansion.  The budget shall include the chief information officer's recommendations on (i) any state funding requested for network transport and equipment, distance education facilities and hardware or software specific to the use of the network, and proposed new network end sites, (ii) annual copayments to be charged to public educational sector institutions and other public entities connected to the network, and (iii) charges to nongovernmental entities connected to the network;

      (e) To adopt and monitor the implementation of a methodology to evaluate the effectiveness of the network in achieving the educational goals and measurable objectives;

      (f) To establish by rule acceptable use policies governing user eligibility for participation in the K-20 network, acceptable uses of network resources, and procedures for enforcement of such policies.  The office shall set forth appropriate procedures for enforcement of acceptable use policies, that may include suspension of network connections and removal of shared equipment for violations of network conditions or policies.  The office shall have sole responsibility for the implementation of enforcement procedures relating to technical conditions of use.

NEW SECTION.  Sec. 719.  The office shall maintain, in consultation with the K-20 network users, the K-20 operations cooperative, which shall be responsible for day-to-day network management, technical network status monitoring, technical problem response coordination, and other duties as agreed to by the office and the educational sectors.  Funding for the K-20 operations cooperative shall be provided from the education technology revolving fund under RCW 43.105.835 (as recodified by this act).

NEW SECTION.  Sec. 720.  The chief information officer, in conjunction with the K-20 network users, shall maintain a technical plan of the K-20 telecommunications system and ongoing system enhancements.  The office shall ensure that the technical plan adheres to the goals and objectives established under section 706 of this act.  The technical plan shall provide for:

      (1) A telecommunications backbone connecting educational service districts, the main campuses of public baccalaureate institutions, the branch campuses of public research institutions, and the main campuses of community colleges and technical colleges.

      (2)(a) Connection to the K-20 network by entities that include, but need not be limited to:  School districts, public higher education off- campus and extension centers, and branch campuses of community colleges and technical colleges, as prioritized by the chief information officer; (b) distance education facilities and components for entities listed in this subsection and subsection (1) of this section; and (c) connection for independent nonprofit institutions of higher education, provided that:

      (i) The chief information officer and each independent nonprofit institution of higher education to be connected agree in writing to terms and conditions of connectivity.  The terms and conditions shall ensure, among other things, that the provision of K-20 services does not violate Article VIII, section 5 of the state Constitution and that the institution shall adhere to K-20 network policies; and

      (ii) The chief information officer determines that inclusion of the independent nonprofit institutions of higher education will not significantly affect the network's eligibility for federal universal service fund discounts or subsidies.

      (3) Subsequent phases may include, but need not be limited to, connections to public libraries, state and local governments, community resource centers, and the private sector.

NEW SECTION.  Sec. 721.  (1) In overseeing the technical aspects of the K-20 network, the office is not intended to duplicate the statutory responsibilities of the higher education coordinating board, the superintendent of public instruction, the state librarian, or the governing boards of the institutions of higher education.

      (2) The office may not interfere in any curriculum or legally offered programming offered over the K-20 network.

      (3) The responsibility to review and approve standards and common specifications for the K-20 network remains the responsibility of the office under section 706 of this act.

      (4) The coordination of telecommunications planning for the common schools remains the responsibility of the superintendent of public instruction.  Except as set forth in section 706(2)(e) of this act, the office may recommend, but not require, revisions to the superintendent's telecommunications plans.

Sec. 722.  RCW 43.105.835 and 2004 c 276 s 910 are each amended to read as follows:

      (1) The education technology revolving fund is created in the custody of the state treasurer.  All receipts from billings under subsection (2) of this section must be deposited in the revolving fund.  Only the ((director of the department of information services or the director's designee)) chief information officer or the chief information officer's designee may authorize expenditures from the fund.  The revolving fund shall be used to pay for K-20 network operations, transport, equipment, software, supplies, and services, maintenance and depreciation of on-site data, and shared infrastructure, and other costs incidental to the development, operation, and administration of shared educational information technology services, telecommunications, and systems.  The revolving fund shall not be used for the acquisition, maintenance, or operations of local telecommunications infrastructure or the maintenance or depreciation of on-premises video equipment specific to a particular institution or group of institutions.

      (2) The revolving fund and all disbursements from the revolving fund are subject to the allotment procedure under chapter 43.88 RCW, but an appropriation is not required for expenditures.  The ((department of information services)) office shall, ((in consultation with entities connected to the network under RCW 43.105.820 and)) subject to the review and approval of the office of financial management, establish and implement a billing structure for network services identified in subsection (1) of this section.

      (3) The ((department)) office shall charge those public entities connected to the K-20 ((telecommunications [telecommunication system] under RCW 43.105.820)) telecommunications system under section 720 of this act an annual copayment per unit of transport connection as determined by the legislature after consideration of the ((K-20)) board's recommendations.  This copayment shall be deposited into the revolving fund to be used for the purposes in subsection (1) of this section.  It is the intent of the legislature to appropriate to the revolving fund such moneys as necessary to cover the costs for transport, maintenance, and depreciation of data equipment located at the individual public institutions, maintenance and depreciation of the K-20 network backbone, and services provided to the network under ((RCW 43.105.815.
      (4) During the 2003-05 biennium, the legislature may transfer moneys from the education technology revolving fund to the state general fund and the data processing revolving fund such amounts as reflect the excess fund balance of the account)) section 718 of this act.

GENERAL PROVISIONS RELATED TO OFFICE OF THE CHIEF INFORMATION OFFICER

NEW SECTION.  Sec. 723.  A new section is added to chapter 41.06 RCW to read as follows:

      In addition to the exemptions under RCW 41.06.070, the provisions of this chapter do not apply in the office of the chief information officer to the chief information officer, the chief information officer's confidential secretary, assistant directors, and any other exempt staff members provided for in section 703 of this act.

Sec. 724.  RCW 43.105.290 and 1996 c 171 s 13 are each amended to read as follows:

      The state library, with the assistance of the ((department of information services)) office and the state archives, shall establish a pilot project to design and test an electronic information locator system, allowing members of the public to locate and access electronic public records.  In designing the system, the following factors shall be considered:  (1) Ease of operation by citizens; (2) access through multiple technologies, such as direct dial and toll-free numbers, kiosks, and the internet; (3) compatibility with private online services; and (4) capability of expanding the electronic public records included in the system.  The pilot project may restrict the type and quality of electronic public records that are included in the system to test the feasibility of making electronic public records and information widely available to the public.

Sec. 725.  RCW 28A.650.015 and 2009 c 556 s 17 are each amended to read as follows:

      (1) The superintendent of public instruction, to the extent funds are appropriated, shall develop and implement a Washington state K-12 education technology plan.  The technology plan shall be updated on at least a biennial basis, shall be developed to coordinate and expand the use of education technology in the common schools of the state.  The plan shall be consistent with applicable provisions of chapter 43.105 RCW.  The plan, at a minimum, shall address:

      (a) The provision of technical assistance to schools and school districts for the planning, implementation, and training of staff in the use of technology in curricular and administrative functions;

      (b) The continued development of a network to connect school districts, institutions of higher learning, and other sources of online information; and

      (c) Methods to equitably increase the use of education technology by students and school personnel throughout the state.

      (2) The superintendent of public instruction shall appoint an educational technology advisory committee to assist in the development and implementation of the technology plan in subsection (1) of this section.  The committee shall include, but is not limited to, persons representing:  The ((department of information services)) office of the chief information officer, educational service districts, school directors, school administrators, school principals, teachers, classified staff, higher education faculty, parents, students, business, labor, scientists and mathematicians, the higher education coordinating board, the workforce training and education coordinating board, and the state library.

      (3) The plan adopted and implemented under this section may not impose on school districts any requirements that are not specifically required by federal law or regulation, including requirements to maintain eligibility for the federal schools and libraries program of the universal service fund.

Sec. 726.  RCW 39.94.040 and 2010 1st sp.s. c 36 s 6015 and 2010 1st sp.s. c 35 s 406 are each reenacted and amended to read as follows:

      (1) Except as provided in RCW 28B.10.022, the state may not enter into any financing contract for itself if the aggregate principal amount payable thereunder is greater than an amount to be established from time to time by the state finance committee or participate in a program providing for the issuance of certificates of participation, including any contract for credit enhancement, without the prior approval of the state finance committee.  Except as provided in RCW 28B.10.022, the state finance committee shall approve the form of all financing contracts or a standard format for all financing contracts.  The state finance committee also may:

      (a) Consolidate existing or potential financing contracts into master financing contracts with respect to property acquired by one or more agencies, departments, instrumentalities of the state, the state board for community and technical colleges, or a state institution of higher learning; or to be acquired by another agency;

      (b) Approve programs providing for the issuance of certificates of participation in master financing contracts for the state or for other agencies;

      (c) Enter into agreements with trustees relating to master financing contracts; and

      (d) Make appropriate rules for the performance of its duties under this chapter.

      (2) In the performance of its duties under this chapter, the state finance committee may consult with representatives from the department of general administration, the office of financial management, and the ((department of information services)) office of the chief information officer.

      (3) With the approval of the state finance committee, the state also may enter into agreements with trustees relating to financing contracts and the issuance of certificates of participation.

      (4) Except for financing contracts for real property used for the purposes described under chapter 28B.140 RCW, the state may not enter into any financing contract for real property of the state without prior approval of the legislature.  For the purposes of this requirement, a financing contract must be treated as used for real property if it is being entered into by the state for the acquisition of land; the acquisition of an existing building; the construction of a new building; or a major remodeling, renovation, rehabilitation, or rebuilding of an existing building.  Prior approval of the legislature is not required under this chapter for a financing contract entered into by the state under this chapter for energy conservation improvements to existing buildings where such improvements include:  (a) Fixtures and equipment that are not part of a major remodeling, renovation, rehabilitation, or rebuilding of the building, or (b) other improvements to the building that are being performed for the primary purpose of energy conservation.  Such energy conservation improvements must be determined eligible for financing under this chapter by the office of financial management in accordance with financing guidelines established by the state treasurer, and are to be treated as personal property for the purposes of this chapter.

      (5) The state may not enter into any financing contract on behalf of another agency without the approval of such a financing contract by the governing body of the other agency.

Sec. 727.  RCW 40.14.020 and 2002 c 358 s 4 are each amended to read as follows:

      All public records shall be and remain the property of the state of Washington.  They shall be delivered by outgoing officials and employees to their successors and shall be preserved, stored, transferred, destroyed or disposed of, and otherwise managed, only in accordance with the provisions of this chapter.  In order to insure the proper management and safeguarding of public records, the division of archives and records management is established in the office of the secretary of state.  The state archivist, who shall administer the division and have reasonable access to all public records, wherever kept, for purposes of information, surveying, or cataloguing, shall undertake the following functions, duties, and responsibilities:

      (1) To manage the archives of the state of Washington;

      (2) To centralize the archives of the state of Washington, to make them available for reference and scholarship, and to insure their proper preservation;

      (3) To inspect, inventory, catalog, and arrange retention and transfer schedules on all record files of all state departments and other agencies of state government;

      (4) To insure the maintenance and security of all state public records and to establish safeguards against unauthorized removal or destruction;

      (5) To establish and operate such state record centers as may from time to time be authorized by appropriation, for the purpose of preserving, servicing, screening and protecting all state public records which must be preserved temporarily or permanently, but which need not be retained in office space and equipment;

      (6) To adopt rules under chapter 34.05 RCW:

      (a) Setting standards for the durability and permanence of public records maintained by state and local agencies;

      (b) Governing procedures for the creation, maintenance, transmission, cataloging, indexing, storage, or reproduction of photographic, optical, electronic, or other images of public documents or records in a manner consistent with current standards, policies, and procedures of the ((department of information services)) office of the chief information officer for the acquisition of information technology;

      (c) Governing the accuracy and durability of, and facilitating access to, photographic, optical, electronic, or other images used as public records; or

      (d) To carry out any other provision of this chapter;

      (7) To gather and disseminate to interested agencies information on all phases of records management and current practices, methods, procedures, techniques, and devices for efficient and economical management and preservation of records;

      (8) To operate a central microfilming bureau which will microfilm, at cost, records approved for filming by the head of the office of origin and the archivist; to approve microfilming projects undertaken by state departments and all other agencies of state government; and to maintain proper standards for this work;

      (9) To maintain necessary facilities for the review of records approved for destruction and for their economical disposition by sale or burning; directly to supervise such destruction of public records as shall be authorized by the terms of this chapter;

      (10) To assist and train state and local agencies in the proper methods of creating, maintaining, cataloging, indexing, transmitting, storing, and reproducing photographic, optical, electronic, or other images used as public records;

      (11) To solicit, accept, and expend donations as provided in RCW 43.07.037 for the purpose of the archive program.  These purposes include, but are not limited to, acquisition, accession, interpretation, and display of archival materials.  Donations that do not meet the criteria of the archive program may not be accepted.

Sec. 728.  RCW 42.17.460 and 1999 c 401 s 1 are each amended to read as follows:

      It is the intent of the legislature to ensure that the commission provide the general public timely access to all contribution and expenditure reports submitted by candidates, continuing political committees, bona fide political parties, lobbyists, and lobbyists' employers.  The legislature finds that failure to meet goals for full and timely disclosure threatens to undermine our electoral process.

      Furthermore, the legislature intends for the commission to consult with the ((department of information services)) office of the chief information officer as it seeks to implement chapter 401, Laws of 1999, and that the commission follow the standards and procedures established by the ((department of information services)) office of the chief information officer in chapter 43.105 RCW as they relate to information technology.

Sec. 729.  RCW 42.17.467 and 1999 c 401 s 5 are each amended to read as follows:

      In preparing the information technology plan, the commission shall consult with affected state agencies, the ((department of information services)) office of the chief information officer, and stakeholders in the commission's work, including representatives of political committees, bona fide political parties, news media, and the general public.

Sec. 730.  RCW 42.17.469 and 1999 c 401 s 6 are each amended to read as follows:

      The commission shall submit the information technology plan to the senate and house of representatives fiscal committees, the governor, the senate state and local government committee, the house of representatives state government committee, and the ((department of information services)) office of the chief information officer by February 1, 2000.  It is the intent of the legislature that the commission thereafter comply with the requirements of chapter 43.105 RCW with respect to preparation and submission of biennial performance reports on the commission's information technology.

Sec. 731.  RCW 42.17.471 and 1999 c 401 s 7 are each amended to read as follows:

      The commission shall prepare and submit to the ((department of information services)) office of the chief information officer a biennial performance report ((in accordance with chapter 43.105 RCW)).

      The report must include:

      (1) An evaluation of the agency's performance relating to information technology;

      (2) An assessment of progress made toward implementing the agency information technology plan;

      (3) An analysis of the commission's performance measures, set forth in RCW 42.17.463, that relate to the electronic filing of reports and timely public access to those reports via the commission's web site;

      (4) A comprehensive description of the methods by which citizens may interact with the agency in order to obtain information and services from the commission; and

      (5) An inventory of agency information services, equipment, and proprietary software.

Sec. 732.  RCW 42.17A.060 and 1999 c 401 s 1 are each amended to read as follows:

      It is the intent of the legislature to ensure that the commission provide the general public timely access to all contribution and expenditure reports submitted by candidates, continuing political committees, bona fide political parties, lobbyists, and lobbyists' employers.  The legislature finds that failure to meet goals for full and timely disclosure threatens to undermine our electoral process.

      Furthermore, the legislature intends for the commission to consult with the ((department of information services)) office of the chief information officer as it seeks to implement chapter 401, Laws of 1999, and that the commission follow the standards and procedures established by the ((department of information services)) office of the chief information officer in chapter 43.105 RCW as they relate to information technology.

Sec. 733.  RCW 43.88.092 and 2010 c 282 s 3 are each amended to read as follows:

      (1) As part of the biennial budget process, the office of financial management shall collect from agencies, and agencies shall provide, information to produce reports, summaries, and budget detail sufficient to allow review, analysis, and documentation by the office of financial management and the chief information officer of all current and proposed expenditures for information technology by state agencies.  Information technology budget detail must be included as part of the budget submittal documentation required pursuant to RCW 43.88.030.

      (2) The office of financial management must collect, and present as part of the biennial budget documentation, information for all existing information technology projects as defined by information services board policy.  The office of financial management must work with the ((department of information services)) office of the chief information officer to maximize the ability to draw this information from the information technology portfolio management data collected by the ((department of information services)) office of the chief information officer pursuant to ((RCW 43.105.170)) section 710 of this act. Connecting project information collected through the portfolio management process with financial data developed under subsection (1) of this section provides transparency regarding expenditure data for existing technology projects.

      (3) The biennial budget documentation submitted by the office of financial management pursuant to RCW 43.88.030 must include an information technology plan and a technology budget for the state identifying current baseline funding for information technology, proposed ((large)) and ongoing major information technology projects, and their associated costs.  This plan and technology budget must be presented using a method similar to the capital budget, identifying project costs through stages of the project and across fiscal periods and biennia from project initiation to implementation.  This information must be submitted electronically, in a format to be determined by the office of financial management and the legislative evaluation and accountability program committee.

      (4) The office of financial management shall also institute a method of accounting for information technology-related expenditures, including creating common definitions for what constitutes an information technology investment.

(5) For the purposes of this section, "major information technology projects" includes projects that have a significant anticipated cost, complexity, or are of statewide significance such as enterprise level solutions, enterprise resource planning, and shared services initiatives.

Sec. 734.  RCW 43.105.410 and 2010 c 282 s 2 are each amended to read as follows:

      (1) State agencies that are purchasing wireless devices or services must make such purchases through the state master contract, unless the state agency provides to the office of ((financial management)) the chief information officer evidence that the state agency is securing its wireless devices or services from another source for a lower cost than through participation in the state master contract.

      (2) For the purposes of this section, "state agency" means any office, department, board, commission, or other unit of state government, but does not include a unit of state government headed by a statewide elected official, an institution of higher education as defined in RCW 28B.10.016, the higher education coordinating board, the state board for community and technical colleges, or agencies of the legislative or judicial branches of state government.

STATE DATA CENTER

NEW SECTION.  Sec. 735.  (1) Except as provided by subsection (2) of this section, state agencies shall locate all existing and new servers in the state data center.

      (2) Agencies with a service requirement that requires servers to be located outside the state data center must receive a waiver from the office.  Waivers must be based upon written justification from the requesting agency citing specific service or performance requirements for locating servers outside the state's common platform.

      (3) The office, in consultation with the office of financial management, shall continue to develop the business plan and migration schedule for moving all state agencies into the state data center.

      (4) The legislature and the judiciary, which are constitutionally recognized as separate branches of government, may enter into an interagency agreement with the office to migrate its servers into the state data center.

      (5) This section does not apply to institutions of higher education.

MIGRATION TO A CENTRAL SERVICE PROVIDER

NEW SECTION.  Sec. 736.  (1) The office shall conduct a needs assessment and develop a migration strategy to ensure that, by July 1, 2013, all state agencies are moving towards using the consolidated technology services agency established in RCW 43.105.047 as their central service provider for all utility-based infrastructure services, including centralized PC and infrastructure support.  Agency specific application services shall remain managed within individual agencies.

      (2) The office shall develop short-term and long-term objectives as part of the migration strategy.

      (3) For the purposes of this section, "utility-based infrastructure services" includes personal computer and portable device support, servers and server administration, security administration, network administration, telephony, e-mail, and other information technology services commonly utilized by state agencies.

      (4) This section does not apply to institutions of higher education.

PART VIII
 CREATING THE CONSOLIDATED TECHNOLOGY SERVICES AGENCY

NEW SECTION.  Sec. 801.  A new section is added to chapter 43.105 RCW to read as follows:

      To achieve maximum benefit from advances in information technology the state establishes a centralized provider and procurer of certain information technology services as an agency to support the needs of state agencies.  This agency shall be known as the consolidated technology services agency.  To ensure maximum benefit to the state, state agencies shall rely on the consolidated technology services agency for those services with a business case of broad use, uniformity, scalability, and price sensitivity to aggregation and volume.

      To successfully meet agency needs and meet its obligation as the primary service provider for these services, the consolidated technology services agency must offer high quality services at the lowest possible price.  It must be able to attract an adaptable and competitive workforce, be authorized to procure services where the business case justifies it, and be accountable to its customers for the efficient and effective delivery of critical business services.

      The consolidated technology services agency is established as an agency in state government.  The agency is established with clear accountability to the agencies it serves and to the public.  This accountability will come through enhanced transparency in the agency's operation and performance.  The agency is also established with broad flexibility to adapt its operations and service catalog to address the needs of customer agencies, and to do so in the most cost-effective ways.

Sec. 802.  RCW 43.105.020 and 2010 1st sp.s. c 7 s 64 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) (("Administrator" means the community technology opportunity program administrator designated by the department.
      (2) "Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities.  It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network.
      (3) "Board" means the information services board.
      (4) "Broadband" means a high-speed, high capacity transmission medium, using land-based, satellite, wireless, or any other mechanism, that can carry either signals or transmit data, or both, over long distances by using a wide range of frequencies.
      (5) "Committee" means the state interoperability executive committee.
      (6) "Common vendor registration and bid notification system" has the definition in RCW 39.29.006.
      (7) "Community technology programs" means programs that are engaged in diffusing information and communications technology in local communities, particularly in unserved and underserved areas of the state.  These programs may include, but are not limited to, programs that provide education and skill-building opportunities, hardware and software, internet connectivity, digital media literacy, development of locally relevant content, and delivery of vital services through technology.
      (8) "Council" means the advisory council on digital inclusion created in RCW 43.105.400.
      (9) "Department" means the department of information services.
      (10))) "Agency" means the consolidated technology services agency.
      (2) "Board" means the consolidated technology services board.
      (3) "Customer agencies" means all entities that purchase or use information technology resources, telecommunications, or services from the consolidated technology services agency.
      (4) "Director" means the director of the ((department)) consolidated technology services agency.

      (((11) "Educational sectors" means those institutions of higher education, school districts, and educational service districts that use the network for distance education, data transmission, and other uses permitted by the K-20 board.
      (12))) (5) "Equipment" means the machines, devices, and transmission facilities used in information processing, ((such as)) including but not limited to computers, ((word processors,)) terminals, telephones, wireless communications system facilities, cables, and any physical facility necessary for the operation of such equipment.

      (((13) "High-speed internet" means broadband.
      (14) "Information" includes, but is not limited to, data, text, voice, and video.
      (15) "Information processing" means the electronic capture, collection, storage, manipulation, transmission, retrieval, and presentation of information in the form of data, text, voice, or image and includes telecommunications and office automation functions.
      (16) "Information services" means data processing, telecommunications, office automation, and computerized information systems.
      (17))) "Enterprise architecture" means an ongoing program for translating business vision and strategy into effective enterprise change.  It is a continuous activity.  Enterprise architecture creates, communicates, and improves the key principles and models that describe the enterprise's future state and enable its evolution.
      (7) "Information technology" includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines.
      (8) "Information technology portfolio" or "portfolio" means a strategic management process documenting relationships between agency missions and information technology and telecommunications investments.

      (((18) "K-20 network" means the network established in RCW 43.105.820.
      (19))) (9) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately.

      (((20))) (10) "Oversight" means a process of comprehensive risk analysis and management designed to ensure optimum use of information technology resources and telecommunications.

      (((21))) (11) "Proprietary software" means that software offered for sale or license.

      (((22) "Purchased services" means services provided by a vendor to accomplish routine, continuing, and necessary functions.  This term includes, but is not limited to, services acquired for equipment maintenance and repair, operation of a physical plant, security, computer hardware and software installation and maintenance, telecommunications installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing.
      (23) "Small business" has the definition in RCW 39.29.006.
      (24) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means.
      (25) "Video telecommunications" means the electronic interconnection of two or more sites for the purpose of transmitting and/or receiving visual and associated audio information.  Video telecommunications shall not include existing public television broadcast stations as currently designated by the department of commerce under chapter 43.330 RCW.)) (12) "Telecommunications" includes, but is not limited to, wireless or wired systems for transport of voice, video, and data communications, network systems, requisite facilities, equipment, system controls, simulation, electronic commerce, and all related interactions between people and machines.  "Telecommunications" does not include public safety communications.

Sec. 803.  RCW 43.105.047 and 1999 c 80 s 5 are each amended to read as follows:

      There is created the ((department of information services)) consolidated technology services agency, an agency of state government.  The ((department)) agency shall be headed by a director appointed by the governor with the consent of the senate.  The director shall serve at the governor's pleasure and shall receive such salary as determined by the governor.  The director shall:

      (1) Appoint a confidential secretary and such deputy and assistant directors as needed to administer the ((department)) agency; and

      (2) ((Maintain and fund a strategic planning and policy component separate from the services component of the department;
      (3) Appoint, after consulting with the board, the assistant or deputy director for the planning component;
      (4))) Appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed by this chapter((;
      (5) Report to the governor and the board any matters relating to abuses and evasions of this chapter; and
      (6) Recommend statutory changes to the governor and the board)).

Sec. 804.  RCW 43.105.052 and 2010 1st sp.s. c 7 s 16 are each amended to read as follows:

      The ((department)) agency shall:

      (1) ((Perform all duties and responsibilities the board delegates to the department, including but not limited to:
      (a) The review of agency information technology portfolios and related requests; and
      (b) Implementation of statewide and interagency policies, standards, and guidelines;
      (2))) Make available information services to ((state)) public agencies ((and local governments)) and public benefit nonprofit corporations ((on a full cost-recovery basis)).  For the purposes of this section "public agency" means any agency of this state or another state; any political subdivision, or unit of local government of this state or another state including, but not limited to, municipal corporations, quasi-municipal corporations, special purpose districts, and local service districts; any agency of the United States; and any Indian tribe recognized as such by the federal government and "public benefit nonprofit corporation" means a public benefit nonprofit corporation as defined in RCW 24.03.005 that is receiving local, state, or federal funds either directly or through a public agency other than an Indian tribe or political subdivision of another state((.  These services may include, but are not limited to:
      (a) Telecommunications services for voice, data, and video;
      (b) Mainframe computing services;
      (c) Support for departmental and microcomputer evaluation, installation, and use;
      (d) Equipment acquisition assistance, including leasing, brokering, and establishing master contracts;
      (e) Facilities management services for information technology equipment, equipment repair, and maintenance service;
      (f) Negotiation with local cable companies and local governments to provide for connection to local cable services to allow for access to these public and educational channels in the state;
      (g) Office automation services;
      (h) System development services; and
      (i) Training.
      These services are for discretionary use by customers and customers may elect other alternatives for service if those alternatives are more cost-effective or provide better service.  Agencies may be required to use the backbone network portions of the telecommunications services during an initial start-up period not to exceed three years));

      (((3))) (2) Establish rates and fees for services provided by the ((department to assure that the services component of the department is self-supporting)) agency.  A billing rate plan shall be developed for a two-year period to coincide with the budgeting process.  The rate plan shall be subject to review at least annually by the office of financial management.  The rate plan shall show the proposed rates by each cost center and will show the components of the rate structure as mutually determined by the ((department)) agency and the office of financial management.  ((The same rate structure will apply to all user agencies of each cost center.))  The rate plan and any adjustments to rates shall be approved by the office of financial management((.  The services component shall not subsidize the operations of the strategic planning and policy component));

      (((4))) (3) With the advice of the ((information services)) board and customer agencies, develop a state strategic information technology plan and performance reports as required under ((RCW 43.105.160)) section 707 of this act;

      (((5))) (4) Develop plans for the ((department's)) agency's achievement of statewide goals and objectives set forth in the state strategic information technology plan required under ((RCW 43.105.160.  These plans shall address such services as telecommunications, central and distributed computing, local area networks, office automation, and end user computing.  The department shall seek the advice of the board in the development of these plans;
      (6) Under direction of the information services board and in collaboration with the department of personnel, and other agencies as may be appropriate, develop training plans and coordinate training programs that are responsive to the needs of agencies;
      (7) Identify opportunities for the effective use of information services and coordinate appropriate responses to those opportunities;
      (8) Assess agencies' projects, acquisitions, plans, information technology portfolios, or overall information processing performance as requested by the board, agencies, the director of financial management, or the legislature.  Agencies may be required to reimburse the department for agency-requested reviews)) section 707 of this act;

      (((9) Develop planning, budgeting, and expenditure reporting requirements, in conjunction with the office of financial management, for agencies to follow;
      (10) Assist the office of financial management with budgetary and policy review of agency plans for information services;
      (11) Provide staff support from the strategic planning and policy component to the board for:
      (a) Meeting preparation, notices, and minutes;
      (b) Promulgation of policies, standards, and guidelines adopted by the board;
      (c) Supervision of studies and reports requested by the board;
      (d) Conducting reviews and assessments as directed by the board;
      (12) Be the lead agency in coordinating video telecommunications services for all state agencies and develop, pursuant to board policies, standards and common specifications for leased and purchased telecommunications equipment.  The department shall not evaluate the merits of school curriculum, higher education course offerings, or other education and training programs proposed for transmission and/or reception using video telecommunications resources.  Nothing in this section shall abrogate or abridge the legal responsibilities of licensees of telecommunications facilities as licensed by the federal communication commission on March 27, 1990;)) and

      (((13))) (5) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

NEW SECTION.  Sec. 805.  A new section is added to chapter 43.105 RCW to read as follows:

      (1) There is hereby created the consolidated technology services board.  The board shall be composed of eleven members appointed by the governor.  Seven of the board members shall consist of customer representatives either in the position of chief executive officer, chief financial officer, or chief information officer.  Four of the board members shall be legislators, who serve as ex officio, nonvoting members of the board.

      (2)(a) Nonlegislative members shall serve three-year terms.  Members may not serve more than two consecutive terms.

      (b) Of the initial nonlegislative members, two must be appointed for a one-year term, two must be appointed for a two-year term, and three must be appointed for a three-year term.  Thereafter, members must be appointed for three-year terms.

      (c) Vacancies shall be filled in the same manner that the original appointments were made for the remainder of the member's term.

      (3)(a) Of the initial legislative members, the president of the senate and the speaker of the house of representatives shall make the appointments.

      (b) The president of the senate shall appoint one member from each of the two largest caucuses in the senate.

      (c) The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives.

      (4) A majority of the members of the board shall constitute a quorum for the transaction of business.

Sec. 806.  RCW 43.19.190 and 2002 c 200 s 3 are each amended to read as follows:

      The director of general administration, through the state purchasing and material control director, shall:

      (1) Establish and staff such administrative organizational units within the division of purchasing as may be necessary for effective administration of the provisions of RCW 43.19.190 through 43.19.1939;

      (2) Purchase all material, supplies, services, and equipment needed for the support, maintenance, and use of all state institutions, colleges, community colleges, technical colleges, college districts, and universities, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of state government, and the offices of all appointive officers of the state:  PROVIDED, That the provisions of RCW 43.19.190 through 43.19.1937 do not apply in any manner to the operation of the state legislature except as requested by the legislature:  PROVIDED, That the provisions of this section and RCW 43.19.1901 through 43.19.1925 do not apply to the consolidated technology services agency created in RCW 43.105.047:  PROVIDED, That any agency may purchase material, supplies, services, and equipment for which the agency has notified the purchasing and material control director that it is more cost-effective for the agency to make the purchase directly from the vendor:  PROVIDED, That primary authority for the purchase of specialized equipment, instructional, and research material for their own use shall rest with the colleges, community colleges, and universities:  PROVIDED FURTHER, That universities operating hospitals and the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, may make purchases for hospital operation by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations:  PROVIDED FURTHER, That primary authority for the purchase of materials, supplies, and equipment for resale to other than public agencies shall rest with the state agency concerned:  PROVIDED FURTHER, That authority to purchase services as included herein does not apply to personal services as defined in chapter 39.29 RCW, unless such organization specifically requests assistance from the division of purchasing in obtaining personal services and resources are available within the division to provide such assistance:  PROVIDED FURTHER, That the authority for the purchase of insurance and bonds shall rest with the risk manager under RCW ((43.19.1935)) 43.41.310:  PROVIDED FURTHER, That, except for the authority of the risk manager to purchase insurance and bonds, the director is not required to provide purchasing services for institutions of higher education that choose to exercise independent purchasing authority under RCW 28B.10.029:  PROVIDED FURTHER, That the authority to purchase interpreter services and interpreter brokerage services on behalf of limited-English speaking or sensory-impaired applicants and recipients of public assistance shall rest with the department of social and health services;

      (3) Have authority to delegate to state agencies authorization to purchase or sell, which authorization shall specify restrictions as to dollar amount or to specific types of material, equipment, services, and supplies.  Acceptance of the purchasing authorization by a state agency does not relieve such agency from conformance with other sections of RCW 43.19.190 through 43.19.1939, or from policies established by the director.  Also, delegation of such authorization to a state agency, including an educational institution to which this section applies, to purchase or sell material, equipment, services, and supplies shall not be granted, or otherwise continued under a previous authorization, if such agency is not in substantial compliance with overall state purchasing and material control policies as established herein;

      (4) Contract for the testing of material, supplies, and equipment with public and private agencies as necessary and advisable to protect the interests of the state;

      (5) Prescribe the manner of inspecting all deliveries of supplies, materials, and equipment purchased through the division;

      (6) Prescribe the manner in which supplies, materials, and equipment purchased through the division shall be delivered, stored, and distributed;

      (7) Provide for the maintenance of a catalogue library, manufacturers' and wholesalers' lists, and current market information;

      (8) Provide for a commodity classification system and may, in addition, provide for the adoption of standard specifications;

      (9) Provide for the maintenance of inventory records of supplies, materials, and other property;

      (10) Prepare rules and regulations governing the relationship and procedures between the division of purchasing and state agencies and vendors;

      (11) Publish procedures and guidelines for compliance by all state agencies, including those educational institutions to which this section applies, which implement overall state purchasing and material control policies;

      (12) Advise state agencies, including educational institutions, regarding compliance with established purchasing and material control policies under existing statutes.

NEW SECTION.  Sec. 807.  A new section is added to chapter 43.105 RCW to read as follows:

      The board has the following powers and duties:

      (1) Approve rates for services offered by the agency;

      (2) Approve the budget proposal to the office of financial management for the agency;

      (3) Approve the catalog of services to be provided or procured for client agencies;

      (4) Prepare and submit an annual performance evaluation of the director to the governor;

      (5) Prepare and submit a performance assessment of the agency to the governor annually; and

      (6) Advise the director on operational issues and plans brought before the board by the director.

NEW SECTION.  Sec. 808.  A new section is added to chapter 43.105 RCW to read as follows:

      The director in consultation with the board shall set performance targets and approve plans for achieving measurable and specific goals for the agency.  By January 2012, the appropriate organizational performance and accountability measures and performance targets shall be submitted to the governor.  These measures and targets shall include measures of performance demonstrating specific and measurable improvements related to service delivery and costs, operational efficiencies, and overall customer satisfaction.  The agency shall develop a dashboard of key performance measures that will be updated quarterly and made available on the agency public web site.

      The director shall report to the governor on agency performance at least quarterly.  The reports shall be included on the agency's web site and accessible to the public.

NEW SECTION.  Sec. 809.  (1) The state auditor shall complete a two-part performance audit of the consolidated state data center.  The first part of the performance audit may include, but is not limited to:

      (a) A review of the business case developed prior to the state entering into financial agreements for the consolidated state data center, including an assessment of:

      (i) The methodology used to determine the requisite size and scale of the project;

      (ii) The cost assumptions developed as part of the business case for building a data center in Thurston county as compared to building a data center in other locations in the state;

      (iii) To what extent private sector alternatives were considered; and

      (iv) An assessment of the decision-making process leading up to the decision to enter into financial agreements for the consolidated state data center, including who made the decision to pursue the consolidated state data center over other alternatives; and

      (b) A review of the timeline under which milestone decisions were made regarding the consolidated state data center.

      (2) The first part of the performance audit conducted under this section will be used to inform the second part of the performance audit conducted under section 810 of this act.  The full two-part performance audit must be completed and submitted to the governor and the legislature by December 1, 2011.

NEW SECTION.  Sec. 810.  (1) Upon completion of the first part of a two-part performance audit of the consolidated state data center as outlined under section 809 of this act, the state auditor shall complete the second part of the performance audit.  The second part of the performance audit may include, but is not limited to, a technical and financial assessment of the current business plan developed for the consolidated state data center, which may include:

      (a) A detailed comparison of the consolidated state data center business plan with business plans developed for state data centers in other states;

      (b) The costs associated with transitioning to, and operating, the consolidated state data center, including analysis of the fixed lease costs, the up-front transition costs, and the ongoing maintenance and operation costs;

      (c) The potential budgetary impacts on the general fund in the short and long term;

      (d) The predictability of the cost of occupying the consolidated state data center for state agencies;

      (e) The risks associated with transitioning to the consolidated state data center, including the possibility of service interruptions, cost overruns, and other unforeseen costs;

      (f) The potential return on investment for state taxpayers, including the future value of the consolidated state data center once the state has paid the lease costs in full; and

      (g) A review of the business and financial viability of the state receiving revenue from leasing equipment or excess capacity, or both, in data halls 3 and 4 of the consolidated state data center.

      (2) The full performance audit must be completed and submitted to the governor and the legislature by December 1, 2011.

Sec. 811.  RCW 43.105.057 and 1992 c 20 s 11 are each amended to read as follows:

      The ((department of information services and the information services board, respectively,)) agency shall adopt rules as necessary under chapter 34.05 RCW to implement the provisions of this chapter.

Sec. 812.  RCW 43.105.060 and 1987 c 504 s 10 are each amended to read as follows:

      State and local government agencies are authorized to enter into any contracts with the ((department or its successor)) agency which may be necessary or desirable to effectuate the purposes and policies of this chapter or for maximum utilization of facilities and services which are the subject of this chapter.

Sec. 813.  RCW 19.34.231 and 1999 c 287 s 12 are each amended to read as follows:

      (1) If a signature of a unit of state or local government, including its appropriate officers or employees, is required by statute, administrative rule, court rule, or requirement of the office of financial management, that unit of state or local government shall become a subscriber to a certificate issued by a licensed certification authority for purposes of conducting official public business with electronic records.

      (2) A city or county may become a licensed certification authority under RCW 19.34.100 for purposes of providing services to local government, if authorized by ordinance adopted by the city or county legislative authority.

      (3) A unit of state government, except the secretary ((and the department of information services)), may not act as a certification authority.

Sec. 814.  RCW 19.34.420 and 1998 c 33 s 2 are each amended to read as follows:

      (1) The following information, when in the possession of the secretary((, the department of information services,)) or the state auditor for purposes of this chapter, shall not be made available for public disclosure, inspection, or copying, unless the request is made under an order of a court of competent jurisdiction based upon an express written finding that the need for the information outweighs any reason for maintaining the privacy and confidentiality of the information or records:

      (a) A trade secret, as defined by RCW 19.108.010; and

      (b) Information regarding design, security, or programming of a computer system used for purposes of licensing or operating a certification authority or repository under this chapter.

      (2) The state auditor, or an authorized agent, must be given access to all information referred to in subsection (1) of this section for the purpose of conducting audits under this chapter or under other law, but shall not make that information available for public inspection or copying except as provided in subsection (1) of this section.

Sec. 815.  RCW 46.20.157 and 1999 c 6 s 21 are each amended to read as follows:

      (1) Except as provided in subsection (2) of this section, the department shall annually provide to the ((department of information services)) consolidated technology services agency an electronic data file.  The data file must:

      (a) Contain information on all licensed drivers and identicard holders who are eighteen years of age or older and whose records have not expired for more than two years;

      (b) Be provided at no charge; and

      (c) Contain the following information on each such person:  Full name, date of birth, residence address including county, sex, and most recent date of application, renewal, replacement, or change of driver's license or identicard.

      (2) Before complying with subsection (1) of this section, the department shall remove from the file the names of any certified participants in the Washington state address confidentiality program under chapter 40.24 RCW that have been identified to the department by the secretary of state.

Sec. 816.  RCW 2.36.054 and 1993 c 408 s 3 are each amended to read as follows:

      Unless otherwise specified by rule of the supreme court, the jury source list and master jury list for each county shall be created as provided by this section.

      (1) The superior court of each county, after consultation with the county clerk and county auditor of that jurisdiction, shall annually notify the ((department of information services)) consolidated technology services agency not later than March 1 of each year of its election to use either a jury source list that is merged by the county or a jury source list that is merged by the ((department of information services)) consolidated technology services agency.  The ((department of information services)) consolidated technology services agency shall annually furnish at no charge to the superior court of each county a separate list of the registered voters residing in that county as supplied annually by the secretary of state and a separate list of driver's license and identicard holders residing in that county as supplied annually by the department of licensing, or a merged list of all such persons residing in that county, in accordance with the annual notification required by this subsection.  The lists provided by the ((department of information services)) consolidated technology services agency shall be in an electronic format mutually agreed upon by the superior court requesting it and the department of information services.  The annual merger of the list of registered voters residing in each county with the list of licensed drivers and identicard holders residing in each county to form a jury source list for each county shall be in accordance with the standards and methodology established in this chapter or by superseding court rule whether the merger is accomplished by the ((department of information services)) consolidated technology services agency or by a county.

      (2) Persons on the lists of registered voters and driver's license and identicard holders shall be identified by a minimum of last name, first name, middle initial where available, date of birth, gender, and county of residence.  Identifying information shall be used when merging the lists to ensure to the extent reasonably possible that persons are only listed once on the merged list.  Conflicts in addresses are to be resolved by using the most recent record by date of last vote in a general election, date of driver's license or identicard address change or date of voter registration.

      (3) The ((department of information services)) consolidated technology services agency shall provide counties that elect to receive a jury source list merged by ((department of information services)) the consolidated technology services agency with a list of names which are possible duplicates that cannot be resolved based on the identifying information required under subsection (2) of this section.  If a possible duplication cannot subsequently be resolved satisfactorily through reasonable efforts by the county receiving the merged list, the possible duplicate name shall be stricken from the jury source list until the next annual jury source list is prepared.

Sec. 817.  RCW 29A.08.760 and 2009 c 369 s 35 are each amended to read as follows:

      The secretary of state shall provide a duplicate copy of the master statewide computer file or electronic data file of registered voters to the ((department of information services)) consolidated technology services agency for purposes of creating the jury source list without cost.  Restrictions as to the commercial use of the information on the statewide computer tape or data file of registered voters, and penalties for its misuse, shall be the same as provided in RCW 29A.08.720 and 29A.08.740.

Sec. 818.  RCW 43.63A.550 and 1998 c 245 s 71 are each amended to read as follows:

      (1) The department shall assist in the process of inventorying and collecting data on public and private land for the acquisition of data describing land uses, demographics, infrastructure, critical areas, transportation corridors physical features, housing, and other information useful in managing growth throughout the state.  For this purpose the department ((shall)) may contract with the ((department of information services)) consolidated technology services agency and shall form an advisory group consisting of representatives from state, local, and federal agencies, colleges and universities, and private firms with expertise in land planning, and geographic information systems.

      (2) The department shall establish a sequence for acquiring data, giving priority to rapidly growing areas.  The data shall be retained in a manner to facilitate its use in preparing maps, aggregating with data from multiple jurisdictions, and comparing changes over time.  Data shall further be retained in a manner which permits its access via computer.

      (3) The department shall work with other state agencies, local governments, and private organizations that are inventorying public and private lands to ensure close coordination and to ensure that duplication of efforts does not occur.

PART IX
EDUCATION RESEARCH AND DATA CENTER

Sec. 901.  RCW 43.41.400 and 2009 c 548 s 201 are each amended to read as follows:

      (((1) An education data center shall be established in the office of financial management.  The education data center shall jointly, with the legislative evaluation and accountability program committee, conduct collaborative analyses of early learning, K-12, and higher education programs and education issues across the P-20 system, which includes the department of early learning, the superintendent of public instruction, the professional educator standards board, the state board of education, the state board for community and technical colleges, the workforce training and education coordinating board, the higher education coordinating board, public and private nonprofit four-year institutions of higher education, and the employment security department.  The education data center shall conduct collaborative analyses under this section with the legislative evaluation and accountability program committee and provide data electronically to the legislative evaluation and accountability program committee, to the extent permitted by state and federal confidentiality requirements.  The education data center shall be considered an authorized representative of the state educational agencies in this section under applicable federal and state statutes for purposes of accessing and compiling student record data for research purposes.
      (2) The education data center shall:
      (a) In consultation with the legislative evaluation and accountability program committee and the agencies and organizations participating in the education data center, identify the critical research and policy questions that are intended to be addressed by the education data center and the data needed to address the questions;
      (b) Coordinate with other state education agencies to compile and analyze education data, including data on student demographics that is disaggregated by distinct ethnic categories within racial subgroups, and complete P-20 research projects;
      (c) Collaborate with the legislative evaluation and accountability program committee and the education and fiscal committees of the legislature in identifying the data to be compiled and analyzed to ensure that legislative interests are served;
      (d) Annually provide to the K-12 data governance group a list of data elements and data quality improvements that are necessary to answer the research and policy questions identified by the education data center and have been identified by the legislative committees in (c) of this subsection.  Within three months of receiving the list, the K-12 data governance group shall develop and transmit to the education data center a feasibility analysis of obtaining or improving the data, including the steps required, estimated time frame, and the financial and other resources that would be required.  Based on the analysis, the education data center shall submit, if necessary, a recommendation to the legislature regarding any statutory changes or resources that would be needed to collect or improve the data;
      (e) Monitor and evaluate the education data collection systems of the organizations and agencies represented in the education data center ensuring that data systems are flexible, able to adapt to evolving needs for information, and to the extent feasible and necessary, include data that are needed to conduct the analyses and provide answers to the research and policy questions identified in (a) of this subsection;
      (f))) The office of financial management shall:
      (1) Track enrollment and outcomes through the public centralized higher education enrollment system;

      (((g))) (2) Assist other state educational agencies' collaborative efforts to develop a long-range enrollment plan for higher education including estimates to meet demographic and workforce needs;

      (((h) Provide research that focuses on student transitions within and among the early learning, K-12, and higher education sectors in the P-20 system; and
      (i) Make recommendations to the legislature as necessary to help ensure the goals and objectives of this section and RCW 28A.655.210 and 28A.300.507 are met.
      (3) The department of early learning, superintendent of public instruction, professional educator standards board, state board of education, state board for community and technical colleges, workforce training and education coordinating board, higher education coordinating board, public four-year institutions of higher education, and employment security department shall work with the education data center to develop data-sharing and research agreements, consistent with applicable security and confidentiality requirements, to facilitate the work of the center.  Private, nonprofit institutions of higher education that provide programs of education beyond the high school level leading at least to the baccalaureate degree and are accredited by the Northwest association of schools and colleges or their peer accreditation bodies may also develop data-sharing and research agreements with the education data center, consistent with applicable security and confidentiality requirements.  The education data center shall make data from collaborative analyses available to the education agencies and institutions that contribute data to the education data center to the extent allowed by federal and state security and confidentiality requirements applicable to the data of each contributing agency or institution))

(3) Develop data-sharing and research agreements with the legislative evaluation and accountability program and public institutions of higher education, consistent with applicable security and confidentiality requirements, to facilitate the work of the education research and data center under section 902 of this act; and
      (4) Cooperate with the education research and data center to compile and analyze education data.

NEW SECTION.  Sec. 902.  A new section is added to chapter 44.48 RCW to read as follows:

      (1) An education research and data center is established under the legislative evaluation and accountability program committee.  The purpose of the center is to:

      (a) Serve as a data warehouse for education data across the P-20 education system, which includes the department of early learning, the office of the superintendent of public instruction, the professional educator standards board, the state board of education, the state board for community and technical colleges, the workforce training and education coordinating board, the office of financial management, the higher education coordinating board, public and private nonprofit four- year institutions of higher education, and the employment security department;

      (b) Coordinate with other state education agencies to compile and analyze education data, including data on student demographics that is disaggregated by distinct ethnic categories within racial subgroups, and conduct collaborative analyses of early learning, K-12, and higher education programs and education issues across the P-20 system;

      (c) Disseminate education data and information, consistent with applicable security and confidentiality requirements, to the education agencies and institutions that contribute data to the center and to school districts, policymakers, educators, researchers, and the public; and

      (d) Develop and maintain a searchable web site with education data and information, including downloadable files and customizable reports.

      (2) The education research and data center shall be considered an authorized representative of the state educational agencies in this section under applicable federal and state statutes for purposes of accessing and compiling student record data for research purposes.

      (3) The education research and data center shall:

      (a) In consultation with the agencies and organizations participating in the center, identify the critical research and policy questions that are intended to be addressed by the center, the data needed to address the questions, key clients for the data and their needs, and the role these clients can play in addressing the questions;

      (b) Collaborate with the office of financial management and the education and fiscal committees of the legislature in identifying the data to be compiled and analyzed;

      (c) Annually provide to the K-12 data governance group under RCW 28A.300.507 a list of data elements and data quality improvements that are necessary to answer critical research and policy questions.  Within three months of receiving the list, the K-12 data governance group shall develop and transmit to the center a feasibility analysis of obtaining or improving the data, including the steps required, estimated time frame, and the financial and other resources that would be required.  Based on the analysis, the education research and data center shall submit, if necessary, a recommendation to the legislature regarding any statutory changes or resources that would be needed to collect or improve the data;

      (d) Monitor and evaluate the education data collection systems of the state educational agencies to ensure that data systems are flexible and able to adapt to evolving needs for information, and to the extent feasible and necessary, include data needed to conduct the analyses and provide answers to the research and policy questions identified in (a) of this subsection;

      (e) Facilitate use of the data to support academic research and studies by the state educational agencies, independent academic researchers, legislative research agencies, and others; and

      (f) Make recommendations to the legislature as necessary so that the goals and objectives of this section and RCW 28A.655.210 and 28A.300.507 are met.

      (4) The department of early learning, office of the superintendent of public instruction, professional educator standards board, state board of education, state board for community and technical colleges, workforce training and education coordinating board, higher education coordinating board, office of financial management, public four-year institutions of higher education, and employment security department shall work with the education research and data center to develop data- sharing and research agreements, consistent with applicable security and confidentiality requirements, to facilitate the work of the center.  Private, nonprofit institutions of higher education that provide programs of education beyond the high school level leading at least to the baccalaureate degree and are accredited by the Northwest association of schools and colleges or their peer accreditation bodies may also develop data-sharing and research agreements with the education research and data center, consistent with applicable security and confidentiality requirements.

      (5) The education research and data center and the superintendent of public instruction shall take all actions necessary to secure federal funds to implement this section, RCW 28A.655.210, and 28A.300.507.

Sec. 903.  RCW 44.48.090 and 2001 c 259 s 14 are each amended to read as follows:

      The committee shall have the following powers:

      (1) To have timely access, upon written request of the administrator, to all machine readable, printed, and other data of state agencies relative to expenditures, budgets, and related fiscal matters;

      (2) To suggest changes relative to state accounting and reporting systems to the office of financial management or its successor and to require timely written responses to such suggestions; ((and))

      (3) Subject to RCW 44.04.260, to enter into contracts; and when entering into any contract for computer access, make necessary provisions relative to the scheduling of computer time and usage in recognition of the unique requirements and priorities of the legislative process; and
      (4) To manage and oversee the education research and data center as provided in section 902 of this act.

NEW SECTION.  Sec. 904.  (1) The education data center in the office of financial management is abolished.

      (2)(a) All reports, documents, surveys, books, records, files, papers, databases, or other written or electronic material in the possession of the education data center shall be delivered to the custody of the legislative evaluation and accountability program committee for purposes of the education research and data center established under section 902 of this act.  Written or electronic materials and data sets pertaining solely to the public centralized higher education enrollment system shall be retained by the office of financial management, but written or electronic materials and data sets that are the result of the work of the education data center to link data in the public centralized higher education enrollment system to other educational databases shall be delivered to the legislative evaluation and accountability program committee.  All funds, credits, or other monetary assets held by the education data center shall be assigned to the legislative evaluation and accountability program committee.

      (b) Any appropriations made to the office of financial management for purposes of the education data center shall, on the effective date of this section, be transferred and credited to the legislative evaluation and accountability program committee.

      (c) If any questions arise as to the transfer of any funds, books, documents, records, papers, files, databases, or other written or electronic material previously used or held in the exercise of the powers and performance of the education data center, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (d) The elimination of the education data center shall not affect the validity of any act performed before the effective date of this section.

      (e) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and property records in accordance with the certification.

      (3) All data-sharing and research agreements developed between the state educational agencies under section 902 of this act and the education data center before the effective date of this section shall be transferred to the education research and data center under the legislative evaluation and accountability program committee and shall be continued and acted upon by the education research and data center as the successor agency and authorized representative of the state educational agencies.  All existing contracts and obligations shall remain in full force and shall be performed by the education research and data center.

      (4) The education research and data center under the legislative evaluation and accountability program committee shall assume the role of program director for purposes of the federal evergreen state P-20 longitudinal education data system grant.

Sec. 905.  RCW 28A.300.500 and 2007 c 401 s 2 are each amended to read as follows:

      (1) The office of the superintendent of public instruction is authorized to establish a longitudinal student data system for and on behalf of school districts in the state.  The primary purpose of the data system is to better aid research into programs and interventions that are most effective in improving student performance, better understand the state's public educator workforce, and provide information on areas within the educational system that need improvement.

      (2) The confidentiality of personally identifiable student data shall be safeguarded consistent with the requirements of the federal family educational rights privacy act and applicable state laws.  Consistent with the provisions of these federal and state laws, data may be disclosed for educational purposes and studies, including but not limited to:

      (a) Educational studies authorized or mandated by the state legislature;

      (b) Studies initiated by other state educational authorities and authorized by the office of the superintendent of public instruction, including analysis conducted by the education research and data center established under ((RCW 43.41.400)) section 902 of this act; and

      (c) Studies initiated by other public or private agencies and organizations and authorized by the office of the superintendent of public instruction.

      (3) Any agency or organization that is authorized by the office of the superintendent of public instruction to access student-level data shall adhere to all federal and state laws protecting student data and safeguarding the confidentiality and privacy of student records.

      (4) Nothing in this section precludes the office of the superintendent of public instruction from collecting and distributing aggregate data about students or student-level data without personally identifiable information.

Sec. 906.  RCW 28A.300.507 and 2009 c 548 s 203 are each amended to read as follows:

      (1) A K-12 data governance group shall be established within the office of the superintendent of public instruction to assist in the design and implementation of a K-12 education data improvement system for financial, student, and educator data.  It is the intent that the data system reporting specifically serve requirements for teachers, parents, superintendents, school boards, the office of the superintendent of public instruction, the legislature, and the public.

      (2) The K-12 data governance group shall include representatives of the education research and data center, the office of the superintendent of public instruction, ((the legislative evaluation and accountability program committee,)) the professional educator standards board, the state board of education, and school district staff, including information technology staff.  Additional entities with expertise in education data may be included in the K-12 data governance group.

      (3) The K-12 data governance group shall:

      (a) Identify the critical research and policy questions that need to be addressed by the K-12 education data improvement system;

      (b) Identify reports and other information that should be made available on the internet in addition to the reports identified in subsection (5) of this section;

      (c) Create a comprehensive needs requirement document detailing the specific information and technical capacity needed by school districts and the state to meet the legislature's expectations for a comprehensive K-12 education data improvement system as described under RCW 28A.655.210;

      (d) Conduct a gap analysis of current and planned information compared to the needs requirement document, including an analysis of the strengths and limitations of an education data system and programs currently used by school districts and the state, and specifically the gap analysis must look at the extent to which the existing data can be transformed into canonical form and where existing software can be used to meet the needs requirement document;

      (e) Focus on financial and cost data necessary to support the new K-12 financial models and funding formulas, including any necessary changes to school district budgeting and accounting, and on assuring the capacity to link data across financial, student, and educator systems; and

      (f) Define the operating rules and governance structure for K-12 data collections, ensuring that data systems are flexible and able to adapt to evolving needs for information, within an objective and orderly data governance process for determining when changes are needed and how to implement them.  Strong consideration must be made to the current practice and cost of migration to new requirements.  The operating rules should delineate the coordination, delegation, and escalation authority for data collection issues, business rules, and performance goals for each K-12 data collection system, including:

      (i) Defining and maintaining standards for privacy and confidentiality;

      (ii) Setting data collection priorities;

      (iii) Defining and updating a standard data dictionary;

      (iv) Ensuring data compliance with the data dictionary;

      (v) Ensuring data accuracy; and

      (vi) Establishing minimum standards for school, student, financial, and teacher data systems.  Data elements may be specified "to the extent feasible" or "to the extent available" to collect more and better data sets from districts with more flexible software.  Nothing in ((RCW 43.41.400)) section 902 of this act, this section, or RCW 28A.655.210 should be construed to require that a data dictionary or reporting should be hobbled to the lowest common set.  The work of the K-12 data governance group must specify which data are desirable.  Districts that can meet these requirements shall report the desirable data.  Funding from the legislature must establish which subset data are absolutely required.

      (4)(a) The K-12 data governance group shall provide updates on its work as requested by the education research and data center ((and the legislative evaluation and accountability program committee)).

      (b) The work of the K-12 data governance group shall be periodically reviewed and monitored by the ((educational)) education research and data center ((and the legislative evaluation and accountability program committee)).

      (5) To the extent data is available, the office of the superintendent of public instruction shall make the following minimum reports available on the internet.  The reports must either be run on demand against current data, or, if a static report, must have been run against the most recent data:

      (a) The percentage of data compliance and data accuracy by school district;

      (b) The magnitude of spending per student, by student estimated by the following algorithm and reported as the detailed summation of the following components:

      (i) An approximate, prorated fraction of each teacher or human resource element that directly serves the student.  Each human resource element must be listed or accessible through online tunneling in the report;

      (ii) An approximate, prorated fraction of classroom or building costs used by the student;

      (iii) An approximate, prorated fraction of transportation costs used by the student; and

      (iv) An approximate, prorated fraction of all other resources within the district.  District‑wide components should be disaggregated to the extent that it is sensible and economical;

      (c) The cost of K-12 basic education, per student, by student, by school district, estimated by the algorithm in (b) of this subsection, and reported in the same manner as required in (b) of this subsection;

      (d) The cost of K-12 special education services per student, by student receiving those services, by school district, estimated by the algorithm in (b) of this subsection, and reported in the same manner as required in (b) of this subsection;

      (e) Improvement on the statewide assessments computed as both a percentage change and absolute change on a scale score metric by district, by school, and by teacher that can also be filtered by a student's length of full-time enrollment within the school district;

      (f) Number of K-12 students per classroom teacher on a per teacher basis;

      (g) Number of K-12 classroom teachers per student on a per student basis;

      (h) Percentage of a classroom teacher per student on a per student basis; and

      (i) The cost of K-12 education per student by school district sorted by federal, state, and local dollars.

      (6) The superintendent of public instruction shall submit a preliminary report to the legislature by November 15, 2009, including the analyses by the K-12 data governance group under subsection (3) of this section and preliminary options for addressing identified gaps.  A final report, including a proposed phase-in plan and preliminary cost estimates for implementation of a comprehensive data improvement system for financial, student, and educator data shall be submitted to the legislature by September 1, 2010.

      (7) All reports and data referenced in this section ((and RCW 43.41.400)), section 902 of this act, and RCW 28A.655.210 shall be made available in a manner consistent with the technical requirements of the ((legislative evaluation and accountability program committee and the)) education research and data center so that selected data can be provided to the legislature, governor, school districts, and the public.

      (8) Reports shall contain data to the extent it is available.  All reports must include documentation of which data are not available or are estimated.  Reports must not be suppressed because of poor data accuracy or completeness.  Reports may be accompanied with documentation to inform the reader of why some data are missing or inaccurate or estimated.

Sec. 907.  RCW 28A.655.210 and 2009 c 548 s 202 are each amended to read as follows:

      (1) It is the legislature's intent to establish a comprehensive K- 12 education data improvement system for financial, student, and educator data.  The objective of the system is to monitor student progress, have information on the quality of the educator workforce, monitor and analyze the costs of programs, provide for financial integrity and accountability, and have the capability to link across these various data components by student, by class, by teacher, by school, by district, and statewide.  Education data systems must be flexible and able to adapt to evolving needs for information, but there must be an objective and orderly data governance process for determining when changes are needed and how to implement them.  It is the further intent of the legislature to provide independent review and evaluation of a comprehensive K-12 education data improvement system by assigning the review and monitoring responsibilities to the education research and data center ((and the legislative evaluation and accountability program committee)).

      (2) It is the intent that the data system specifically service reporting requirements for teachers, parents, superintendents, school boards, the legislature, the office of the superintendent of public instruction, and the public.

      (3) It is the legislature's intent that the K-12 education data improvement system used by school districts and the state include but not be limited to the following information and functionality:

      (a) Comprehensive educator information, including grade level and courses taught, building or location, program, job assignment, years of experience, the institution of higher education from which the educator obtained his or her degree, compensation, class size, mobility of class population, socioeconomic data of class, number of languages and which languages are spoken by students, general resources available for curriculum and other classroom needs, and number and type of instructional support staff in the building;

      (b) The capacity to link educator assignment information with educator certification information such as certification number, type of certification, route to certification, certification program, and certification assessment or evaluation scores;

      (c) Common coding of secondary courses and major areas of study at the elementary level or standard coding of course content;

      (d) Robust student information, including but not limited to student characteristics, course and program enrollment, performance on statewide and district summative and formative assessments to the extent district assessments are used, and performance on college readiness tests;

      (e) A subset of student information elements to serve as a dropout early warning system;

      (f) The capacity to link educator information with student information;

      (g) A common, standardized structure for reporting the costs of programs at the school and district level with a focus on the cost of services delivered to students;

      (h) Separate accounting of state, federal, and local revenues and costs;

      (i) Information linking state funding formulas to school district budgeting and accounting, including procedures:

      (i) To support the accuracy and auditing of financial data; and

      (ii) Using the prototypical school model for school district financial accounting reporting;

      (j) The capacity to link program cost information with student performance information to gauge the cost-effectiveness of programs;

      (k) Information that is centrally accessible and updated regularly; and

      (l) An anonymous, nonidentifiable replicated copy of data that is updated at least quarterly, and made available to the public by the state.

      (4) It is the legislature's goal that all school districts have the capability to collect state-identified common data and export it in a standard format to support a statewide K-12 education data improvement system under this section.

      (5) It is the legislature's intent that the K-12 education data improvement system be developed to provide the capability to make reports as required under RCW 28A.300.507 available.

      (6) It is the legislature's intent that school districts collect and report new data elements to satisfy the requirements of ((RCW 43.41.400)) section 902 of this act, this section, and RCW 28A.300.507, only to the extent funds are available for this purpose.

Sec. 908.  RCW 28A.657.110 and 2010 c 235 s 111 are each amended to read as follows:

      (1) The state board of education shall continue to refine the development of an accountability framework that creates a unified system of support for challenged schools, that aligns with basic education, increases the level of support based upon the magnitude of need, and uses data for decisions.

      (2) The state board of education shall develop an accountability index to identify schools and districts for recognition, for continuous improvement, and for additional state support.  The index shall be based on criteria that are fair, consistent, and transparent.  Performance shall be measured using multiple outcomes and indicators including, but not limited to, graduation rates and results from statewide assessments.  The index shall be developed in such a way as to be easily understood by both employees within the schools and districts, as well as parents and community members.  It is the legislature's intent that the index provide feedback to schools and districts to self-assess their progress, and enable the identification of schools with exemplary student performance and those that need assistance to overcome challenges in order to achieve exemplary student performance.

      (3) The state board of education, in cooperation with the office of the superintendent of public instruction, shall annually recognize schools for exemplary performance as measured on the state board of education accountability index.  The state board of education shall have ongoing collaboration with the achievement gap oversight and accountability committee regarding the measures used to measure the closing of the achievement gaps and the recognition provided to the school districts for closing the achievement gaps.

      (4) In coordination with the superintendent of public instruction, the state board of education shall seek approval from the United States department of education for use of the accountability index and the state system of support, assistance, and intervention, to replace the federal accountability system under P.L. 107-110, the no child left behind act of 2001.

      (5) The state board of education shall work with the education research and data center ((established within the office of financial management)) and the technical working group established in ((section 112, chapter 548, Laws of 2009)) RCW 28A.290.020 to determine the feasibility of using the prototypical funding allocation model as not only a tool for allocating resources to schools and districts but also as a tool for schools and districts to report to the state legislature and the state board of education on how the state resources received are being used.

NEW SECTION.  Sec. 909.  RCW 43.41.405 (K-12 data‑-Securing federal funds) and 2009 c 548 s 204 are each repealed.

PART X
ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

NEW SECTION.  Sec. 1001.  A new section is added to chapter 41.80 RCW to read as follows:

      (1) Consistent with the procedures for applications for certification set forth in RCW 41.80.070, the public employment relations commission may review the appropriateness of the collective bargaining units transferred under sections 1002 through 1004 and 1009 of this act.

      (2) If the commission determines that an existing collective bargaining unit is appropriate pursuant to RCW 41.80.070, the exclusive bargaining representative certified to represent the bargaining unit prior to January 1, 2012, shall continue as the exclusive bargaining representative without the necessity of an election.

      (3) If the commission determines that existing collective bargaining units are not appropriate, the commission may modify the units and order an election pursuant to RCW 41.80.080.  Certified bargaining representatives will not be required to demonstrate a showing of interest to be included on the ballot.

      (4) The commission may require an election pursuant to RCW 41.80.080 if similarly situated employees are represented by more than one employee organization.  Certified bargaining representatives will not be required to demonstrate a showing of interest to be included on the ballot.

NEW SECTION.  Sec. 1002.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The department of general administration is hereby abolished and its powers, duties, and functions are transferred to the department of enterprise services.  All references to the director or department of general administration in the Revised Code of Washington shall be construed to mean the director or the department of enterprise services.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of general administration shall be delivered to the custody of the department of enterprise services.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of general administration shall be made available to the department of enterprise services.  All funds, credits, or other assets held by the department of general administration shall be assigned to the department of enterprise services.

      (b) Any appropriations made to the department of general administration shall, on the effective date of this section, be transferred and credited to the department of enterprise services.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the department of general administration shall be continued and acted upon by the department of enterprise services.  All existing contracts and obligations shall remain in full force and shall be performed by the department of enterprise services.

      (4) The transfer of the powers, duties, functions, and personnel of the department of general administration shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the department of general administration engaged in performing the powers, functions, and duties transferred to the department of enterprise services, are transferred to the department of enterprise services.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of enterprise services to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

      (7) Unless or until modified by the public employment relations commission pursuant to section 1001 of this act:

      (a) The bargaining units of employees at the department of general administration existing on the effective date of this section shall be considered appropriate units at the department of enterprise services and will be so certified by the public employment relations commission.

      (b) The exclusive bargaining representatives recognized as representing the bargaining units of employees at the department of general administration existing on the effective date of this section shall continue as the exclusive bargaining representatives of the transferred bargaining units without the necessity of an election.

NEW SECTION.  Sec. 1003.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The public printer is hereby abolished and its powers, duties, and functions, to the extent provided in this act, are transferred to the department of enterprise services.  All references to the public printer in the Revised Code of Washington shall be construed to mean the director or the department of enterprise services.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the public printer shall be delivered to the custody of the department of enterprise services.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the public printer shall be made available to the department of enterprise services.  All funds, credits, or other assets held by the public printer shall be assigned to the department of enterprise services.

      (b) Any appropriations made to the public printer shall, on the effective date of this section, be transferred and credited to the department of enterprise services.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the public printer shall be continued and acted upon by the department of enterprise services.  All existing contracts and obligations shall remain in full force and shall be performed by the department of enterprise services.

      (4) The transfer of the powers, duties, functions, and personnel of the public printer shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the public printer engaged in performing the powers, functions, and duties transferred to the department of enterprise services are transferred to the department of enterprise services.

      (a) The commercial agreement between the graphic communications conference of the international brotherhood of teamsters, local 767M and the department of printing-bindery that became effective July 1, 2007, shall remain in effect during its duration.  Upon expiration, the parties may extend the terms of the agreement; however, the agreement may not be extended beyond September 30, 2011.  Beginning October 1, 2011, chapter 41.80 RCW shall apply to the department of enterprise services with respect to employees in positions formerly covered under the expired commercial agreement.

      (b) The commercial agreement between the graphic communications conference of the international brotherhood of teamsters, local 767M and the department of printing-litho that became effective July 1, 2007, shall remain in effect during its duration.  Upon expiration, the parties may extend the terms of the agreement; however, the agreement may not be extended beyond September 30, 2011.  Beginning October 1, 2011, chapter 41.80 RCW shall apply to the department of enterprise services with respect to the employees in positions formerly covered under the expired commercial agreement.

      (c) The typographical contract between the communications workers of America, the newspaper guild, local 37082, and the department of printing-typographical that became effective July 1, 2007, shall remain in effect during its duration.  Upon expiration, the parties may extend the terms of the agreement; however, the agreement may not be extended beyond September 30, 2011.  Beginning October 1, 2011, chapter 41.80 RCW shall apply to the department of enterprise services with respect to the employees in positions formerly covered under the expired typographical contract.

      (d) All other employees of the public printer not covered by the contracts and agreements specified in (a) through (c) of this subsection shall be exempt from chapter 41.06 RCW until October 1, 2011, at which time these employees shall be subject to chapter 41.06 RCW, unless otherwise deemed exempt in accordance with that chapter.

      (7) Unless or until modified by the public employment relations commission pursuant to section 1001 of this act:

      (a) The bargaining units of printing craft employees existing on the effective date of this section shall be considered an appropriate unit at the department of enterprise services and will be so certified by the public employment relations commission; and

      (b) The exclusive bargaining representatives recognized as representing the bargaining units of printing craft employees existing on the effective date of this section shall continue as the exclusive bargaining representatives of the transferred bargaining units without the necessity of an election.

NEW SECTION.  Sec. 1004.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The powers, duties, and functions of the department of information services as set forth in sections 601, 602, and 614 of this act are hereby transferred to the department of enterprise services.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of information services pertaining to the powers, duties, and functions transferred shall be delivered to the custody of the department of enterprise services.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of information services in carrying out the powers, duties, and functions transferred shall be made available to the department of enterprise services.  All funds, credits, or other assets held by the department of information services in connection with the powers, duties, and functions transferred shall be assigned to the department of enterprise services.

      (b) Any appropriations made to the department of information services for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of enterprise services.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the department of information services pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the department of enterprise services.  All existing contracts and obligations shall remain in full force and shall be performed by the department of enterprise services.

      (4) The transfer of the powers, duties, functions, and personnel of the department of information services shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the department of information services engaged in performing the powers, functions, and duties transferred to the department of enterprise services, are transferred to the department of enterprise services.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of enterprise services to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

      (7) Unless or until modified by the public employment relations commission pursuant to section 1001 of this act:

      (a) The portions of the bargaining units of employees at the department of information services existing on the effective date of this section shall be considered appropriate units at the department of enterprise services and will be so certified by the public employment relations commission.

      (b) The exclusive bargaining representatives recognized as representing the portions of the bargaining units of employees at the department of information services existing on the effective date of this section shall continue as the exclusive bargaining representative of the transferred bargaining units without the necessity of an election.

NEW SECTION.  Sec. 1005.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) Those powers, duties, and functions of the department of personnel being transferred to the department of enterprise services as set forth in Part IV of this act are hereby transferred to the department of enterprise services.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of personnel pertaining to the powers, duties, and functions transferred shall be delivered to the custody of the department of enterprise services.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of personnel in carrying out the powers, duties, and functions transferred shall be made available to the department of enterprise services.  All funds, credits, or other assets held by the department of personnel in connection with the powers, duties, and functions transferred shall be assigned to the department of enterprise services.

      (b) Any appropriations made to the department of personnel for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of enterprise services.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the department of personnel pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the department of enterprise services.  All existing contracts and obligations shall remain in full force and shall be performed by the department of enterprise services.

      (4) The transfer of the powers, duties, functions, and personnel of the department of personnel shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the department of personnel engaged in performing the powers, functions, and duties transferred to the department of enterprise services, are transferred to the department of enterprise services.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of enterprise services to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

NEW SECTION.  Sec. 1006.  A new section is added to chapter 43.41 RCW to read as follows:

      (1) Those powers, duties, and functions of the department of personnel being transferred to the office of financial management as set forth in Part IV of this act are hereby transferred to the office of financial management.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of personnel pertaining to the powers, duties, and functions transferred shall be delivered to the custody of the office of financial management.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of personnel in carrying out the powers, duties, and functions transferred shall be made available to the office of financial management.  All funds, credits, or other assets held by the department of personnel in connection with the powers, duties, and functions transferred shall be assigned to the office of financial management.

      (b) Any appropriations made to the department of personnel for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the office of financial management.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the department of personnel pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the office of financial management.  All existing contracts and obligations shall remain in full force and shall be performed by the office of financial management.

      (4) The transfer of the powers, duties, functions, and personnel of the department of personnel shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the department of personnel engaged in performing the powers, functions, and duties transferred to the office of financial management, are transferred to the office of financial management.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of financial management to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

NEW SECTION.  Sec. 1007.  A new section is added to chapter 43.19 RCW to read as follows:

      (1) The powers, duties, and functions of the office of financial management as set forth in Part V of this act are hereby transferred to the department of enterprise services.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of financial management pertaining to the powers, duties, and functions transferred shall be delivered to the custody of the department of enterprise services.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the office of financial management in carrying out the powers, duties, and functions transferred shall be made available to the department of enterprise services.  All funds, credits, or other assets held by the office of financial management in connection with the powers, duties, and functions transferred shall be assigned to the department of enterprise services.

      (b) Any appropriations made to the office of financial management for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of enterprise services.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the office of financial management pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the department of enterprise services.  All existing contracts and obligations shall remain in full force and shall be performed by the department of enterprise services.

      (4) The transfer of the powers, duties, functions, and personnel of the office of financial management shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the office of financial management engaged in performing the powers, functions, and duties transferred to the department of enterprise services, are transferred to the department of enterprise services.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to department of enterprise services to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

NEW SECTION.  Sec. 1008.  A new section is added to chapter 43.330 RCW to read as follows:

      (1) All powers, duties, and functions of the department of information services pertaining to high-speed internet activities are transferred to the department of commerce.  All references to the director or the department of information services in the Revised Code of Washington shall be construed to mean the director or the department of commerce when referring to the functions transferred in this section.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of information services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of commerce.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of information services in carrying out the powers, functions, and duties transferred shall be made available to the department of commerce.  All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of commerce.

      (b) Any appropriations made to the department of information services for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of commerce.

      (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All employees of the department of information services engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of commerce.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of commerce to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

      (4) All rules and all pending business before the department of information services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of commerce.  All existing contracts and obligations shall remain in full force and shall be performed by the department of commerce.

      (5) The transfer of the powers, duties, functions, and personnel of the department of information services shall not affect the validity of any act performed before the effective date of this section.

      (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (7) All classified employees of the department of information services assigned to the department of commerce under this section whose positions are within an existing bargaining unit description at the department of commerce shall become a part of the existing bargaining unit at the department of commerce and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 1009.  (1) Those powers, duties, and functions of the department of information services being transferred to the consolidated technology services agency as set forth in sections 801 through 818 of this act are hereby transferred to the consolidated technology services agency.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of information services shall be delivered to the custody of the consolidated technology services agency.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of information services shall be made available to the consolidated technology services agency.  All funds, credits, or other assets held by the department of information services shall be assigned to the consolidated technology services agency.

      (b) Any appropriations made to the department of information services shall, on the effective date of this section, be transferred and credited to the consolidated technology services agency.

      (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All rules and all pending business before the department of information services pertaining to the powers, duties, and functions transferred shall be continued and acted upon by the consolidated technology services agency.  All existing contracts and obligations shall remain in full force and shall be performed by the consolidated technology services agency.

      (4) The transfer of the powers, duties, functions, and personnel of the department of information services shall not affect the validity of any act performed before the effective date of this section.

      (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (6) All employees of the department of information services engaged in performing the powers, functions, and duties transferred to the consolidated technology services agency, are transferred to the consolidated technology services agency.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the consolidated technology services agency to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service law.

      (7) Unless or until modified by the public employment relations commission pursuant to section 1001 of this act:

      (a) The portions of the bargaining units of employees at the department of information services existing on the effective date of this section shall be considered appropriate units at the consolidated technology services agency and will be so certified by the public employment relations commission.

      (b) The exclusive bargaining representatives recognized as representing the portions of the bargaining units of employees at the department of information services existing on the effective date of this section shall continue as the exclusive bargaining representatives of the transferred bargaining units without the necessity of an election.

Sec. 1010.  RCW 41.06.070 and 2010 c 271 s 801, 2010 c 2 s 2, and 2010 c 1 s 1 are each reenacted and amended to read as follows:

      (1) The provisions of this chapter do not apply to:

      (a) The members of the legislature or to any employee of, or position in, the legislative branch of the state government including members, officers, and employees of the legislative council, joint legislative audit and review committee, statute law committee, and any interim committee of the legislature;

      (b) The justices of the supreme court, judges of the court of appeals, judges of the superior courts or of the inferior courts, or to any employee of, or position in the judicial branch of state government;

      (c) Officers, academic personnel, and employees of technical colleges;

      (d) The officers of the Washington state patrol;

      (e) Elective officers of the state;

      (f) The chief executive officer of each agency;

      (g) In the departments of employment security and social and health services, the director and the director's confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his or her confidential secretary, and his or her statutory assistant directors;

      (h) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

      (i) All members of such boards, commissions, or committees;

      (ii) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer:  The secretary of the board, commission, or committee; the chief executive officer of the board, commission, or committee; and the confidential secretary of the chief executive officer of the board, commission, or committee;

      (iii) If the members of the board, commission, or committee serve on a full-time basis:  The chief executive officer or administrative officer as designated by the board, commission, or committee; and a confidential secretary to the chair of the board, commission, or committee;

      (iv) If all members of the board, commission, or committee serve ex officio:  The chief executive officer; and the confidential secretary of such chief executive officer;

      (i) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

      (j) Assistant attorneys general;

      (k) Commissioned and enlisted personnel in the military service of the state;

      (l) Inmate, student, part-time, or temporary employees, and part- time professional consultants, as defined by the Washington personnel resources board;

      (m) ((The public printer or to any employees of or positions in the state printing plant;
      (n))) Officers and employees of the Washington state fruit commission;

      (((o))) (n) Officers and employees of the Washington apple commission;

      (((p))) (o) Officers and employees of the Washington state dairy products commission;

      (((q))) (p) Officers and employees of the Washington tree fruit research commission;

      (((r))) (q) Officers and employees of the Washington state beef commission;

      (((s))) (r) Officers and employees of the Washington grain commission;

      (((t))) (s) Officers and employees of any commission formed under chapter 15.66 RCW;

      (((u))) (t) Officers and employees of agricultural commissions formed under chapter 15.65 RCW;

      (((v))) (u) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

      (((w))) (v) Executive assistants for personnel administration and labor relations in all state agencies employing such executive assistants including but not limited to all departments, offices, commissions, committees, boards, or other bodies subject to the provisions of this chapter and this subsection shall prevail over any provision of law inconsistent herewith unless specific exception is made in such law;

      (((x))) (w) In each agency with fifty or more employees:  Deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency heads;

      (((y))) (x) All employees of the marine employees' commission;

      (((z))) (y) Staff employed by the department of commerce to administer energy policy functions;

      (((aa))) (z) The manager of the energy facility site evaluation council;

      (((bb))) (aa) A maximum of ten staff employed by the department of commerce to administer innovation and policy functions, including the three principal policy assistants exempted under (x) of this subsection;

      (((cc))) (bb) Staff employed by Washington State University to administer energy education, applied research, and technology transfer programs under RCW 43.21F.045 as provided in RCW 28B.30.900(5);
      (cc) Officers and employees of the consolidated technology services agency created in section 801 of this act that perform the following functions or duties:  Systems integration; data center engineering and management; network systems engineering and management; information technology contracting; information technology customer relations management; senior expert in enterprise information technology infrastructure, engineering, or systems; and network and systems security.

      (2) The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

      (a) Members of the governing board of each institution of higher education and related boards, all presidents, vice presidents, and their confidential secretaries, administrative, and personal assistants; deans, directors, and chairs; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; principal assistants to executive heads of major administrative or academic divisions; other managerial or professional employees in an institution or related board having substantial responsibility for directing or controlling program operations and accountable for allocation of resources and program results, or for the formulation of institutional policy, or for carrying out personnel administration or labor relations functions, legislative relations, public information, development, senior computer systems and network programming, or internal audits and investigations; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington;

      (b) The governing board of each institution, and related boards, may also exempt from this chapter classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training as determined by the board:  PROVIDED, That no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the board under this provision;

      (c) Printing craft employees in the department of printing at the University of Washington.

      (3) In addition to the exemptions specifically provided by this chapter, the director ((of personnel)) may provide for further exemptions pursuant to the following procedures.  The governor or other appropriate elected official may submit requests for exemption to the ((director of personnel)) office of financial management stating the reasons for requesting such exemptions.  The director ((of personnel)) shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection.  If the director determines that the position for which exemption is requested is one involving substantial responsibility for the formulation of basic agency or executive policy or one involving directing and controlling program operations of an agency or a major administrative division thereof, the director ((of personnel)) shall grant the request ((and such determination shall be final as to any decision made before July 1, 1993)).  The total number of additional exemptions permitted under this subsection shall not exceed one percent of the number of employees in the classified service not including employees of institutions of higher education and related boards for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor.

      The salary and fringe benefits of all positions presently or hereafter exempted except for the chief executive officer of each agency, full-time members of boards and commissions, administrative assistants and confidential secretaries in the immediate office of an elected state official, and the personnel listed in subsections (1)(j) through (((v))) (u) and (((y))) (x) and (2) of this section, shall be determined by the director ((of personnel)).  Changes to the classification plan affecting exempt salaries must meet the same provisions for classified salary increases resulting from adjustments to the classification plan as outlined in RCW 41.06.152.

      From February 18, 2009, through June 30, 2011, a salary or wage increase shall not be granted to any position exempt from classification under this chapter, except that a salary or wage increase may be granted to employees pursuant to collective bargaining agreements negotiated under chapter 28B.52, 41.56, 47.64, or 41.76 RCW, or negotiated by the nonprofit corporation formed under chapter 67.40 RCW, and except that increases may be granted for positions for which the employer has demonstrated difficulty retaining qualified employees if the following conditions are met:

      (a) The salary increase can be paid within existing resources; and

      (b) The salary increase will not adversely impact the provision of client services.

      Any agency granting a salary increase from February 15, 2010, through June 30, 2011, to a position exempt from classification under this chapter shall submit a report to the fiscal committees of the legislature no later than July 31, 2011, detailing the positions for which salary increases were granted, the size of the increases, and the reasons for giving the increases.

      Any person holding a classified position subject to the provisions of this chapter shall, when and if such position is subsequently exempted from the application of this chapter, be afforded the following rights:  If such person previously held permanent status in another classified position, such person shall have a right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

      Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

      A person occupying an exempt position who is terminated from the position for gross misconduct or malfeasance does not have the right of reversion to a classified position as provided for in this section.

      From February 15, 2010, until June 30, 2011, no monetary performance-based awards or incentives may be granted by the director or employers to employees covered by rules adopted under this section.  This subsection does not prohibit the payment of awards provided for in chapter 41.60 RCW.

NEW SECTION.  Sec. 1011.  Sections 701 through 721 of this act constitute a new chapter in Title 43 RCW to be codified as chapter 43.41A RCW.

NEW SECTION.  Sec. 1012.  RCW 43.105.052, 43.105.172, 43.105.250, 43.105.260, 43.105.270, 43.105.280, 43.105.290, 43.105.310, and 43.105.835 are each recodified as sections in chapter 43.--- RCW (the new chapter created in section 1011 of this act).

NEW SECTION.  Sec. 1013.  The following acts or parts of acts are each repealed:

      (1) RCW 43.105.005 (Purpose) and 1990 c 208 s 1 & 1987 c 504 s 1;

      (2) RCW 43.105.013 (Finding‑-Intent) and 2010 c 282 s 1;

      (3) RCW 43.105.019 (Enterprise-based strategy‑-Coordination with legislative and judicial branches) and 2010 c 282 s 10;

      (4) RCW 43.105.032 (Information services board‑-Members‑- Chairperson‑-Vacancies‑-Quorum‑-Compensation and travel expenses) and 2007 c 158 s 1, 1999 c 241 s 2, 1996 c 137 s 10, 1992 c 20 s 8, 1987 c 504 s 4, 1984 c 287 s 86, 1975-'76 2nd ex.s. c 34 s 128, & 1973 1st ex.s. c 219 s 5;

      (5) RCW 43.105.041 (Powers and duties of board) and 2010 1st sp.s. c 7 s 65, 2009 c 486 s 13, 2003 c 18 s 3, & 1999 c 285 s 5;

      (6) RCW 43.105.095 (Management and oversight structure) and 1999 c 80 s 3;

      (7) RCW 43.105.105 (Information technology decisions and plans) and 1999 c 80 s 4;

      (8) RCW 43.105.160 (Strategic information technology plan‑-Biennial state performance report on information technology) and 2010 c 282 s 9, 2005 c 319 s 110, 1999 c 80 s 9, 1998 c 177 s 3, 1996 c 171 s 9, & 1992 c 20 s 1;

      (9) RCW 43.105.170 (Information technology portfolios‑-Contents‑- Performance reports) and 1999 c 80 s 10;

      (10) RCW 43.105.180 (Evaluation of budget requests for information technology projects) and 2010 c 282 s 6 & 1999 c 80 s 11;

      (11) RCW 43.105.190 (Major information technology projects standards and policies‑-Project evaluation and reporting) and 2005 c 319 s 111, 1999 c 80 s 12, 1998 c 177 s 4, 1996 c 137 s 15, & 1992 c 20 s 4;

      (12) RCW 43.105.200 (Application to institutions of higher education) and 1992 c 20 s 5;

      (13) RCW 43.105.210 (Data processing expenditures‑-Authorization‑- Penalties) and 1993 sp.s. c 1 s 903;

      (14) RCW 43.105.330 (State interoperability executive committee) and 2006 c 76 s 2 & 2003 c 18 s 4;

      (15) RCW 43.105.805 (Information services board‑-Powers and duties) and 2010 1st sp.s. c 9 s 1, 2010 1st sp.s. c 7 s 66, & 1999 c 285 s 3;

      (16) RCW 43.105.815 (K-20 operations cooperative‑-Ongoing management) and 1999 c 285 s 8; and

      (17) RCW 43.105.820 (K-20 telecommunication system‑-Technical plan) and 2010 1st sp.s. c 7 s 67, 1999 c 285 s 11, & 1996 c 137 s 8.

NEW SECTION.  Sec. 1014.  Sections 728 through 731 of this act expire January 1, 2012.

NEW SECTION.  Sec. 1015.  Section 732 of this act takes effect January 1, 2012.

NEW SECTION.  Sec. 1016.  The code reviser shall note wherever the director or department of any agency or agency's duties transferred or consolidated under this act is used or referred to in statute that the name of the director or department has changed.  The code reviser shall prepare legislation for the 2012 regular session that (1) changes all statutory references to the director or department of any agency transferred or consolidated under this act, and (2) changes statutory references to sections recodified by this act but not amended in this act.

NEW SECTION.  Sec. 1017.  Except for sections 109, 448, 462, 732, and 901 through 909 of this act, this act takes effect October 1, 2011.

NEW SECTION.  Sec. 1018.  Sections 901 through 909 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2011."

                Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Carlyle; Cody; Haigh; Hudgins; Hunt; Kagi; Kenney; Ormsby; Seaquist; Springer and Sullivan.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Chandler; Dickerson; Haler; Hinkle; Parker; Ross; Schmick and Wilcox.

 

May 23, 20110)

ESSB 5942         Prime Sponsor, Committee on Ways & Means: Concerning the warehousing and distribution of liquor, including the lease and modernization of the state's liquor warehousing and distribution facilities.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass.  Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hudgins; Hunt; Kagi; Kenney; Ormsby; Seaquist; Springer and Sullivan.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Hinkle; Parker; Ross; Schmick and Wilcox.

 

May 23, 20110)

ESSB 5960         Prime Sponsor, Committee on Ways & Means: Concerning medicaid fraud.  Reported by Committee on Ways & Means

 

MAJORITY recommendation:  Do pass as amended.

 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 9A.04.080 and 2009 c 61 s 1 and 2009 c 53 s 1 are each reenacted and amended to read as follows:

      (1) Prosecutions for criminal offenses shall not be commenced after the periods prescribed in this section.

      (a) The following offenses may be prosecuted at any time after their commission:

      (i) Murder;

      (ii) Homicide by abuse;

      (iii) Arson if a death results;

      (iv) Vehicular homicide;

      (v) Vehicular assault if a death results;

      (vi) Hit-and-run injury-accident if a death results (RCW 46.52.020(4)).

      (b) The following offenses shall not be prosecuted more than ten years after their commission:

      (i) Any felony committed by a public officer if the commission is in connection with the duties of his or her office or constitutes a breach of his or her public duty or a violation of the oath of office;

      (ii) Arson if no death results; or

      (iii)(A) Violations of RCW 9A.44.040 or 9A.44.050 if the rape is reported to a law enforcement agency within one year of its commission; except that if the victim is under fourteen years of age when the rape is committed and the rape is reported to a law enforcement agency within one year of its commission, the violation may be prosecuted up to the victim's twenty-eighth birthday.

      (B) If a violation of RCW 9A.44.040 or 9A.44.050 is not reported within one year, the rape may not be prosecuted:  (I) More than three years after its commission if the violation was committed against a victim fourteen years of age or older; or (II) more than three years after the victim's eighteenth birthday or more than seven years after the rape's commission, whichever is later, if the violation was committed against a victim under fourteen years of age.

      (c) Violations of the following statutes may be prosecuted up to the victim's twenty-eighth birthday:  RCW 9A.44.073, 9A.44.076, 9A.44.083, 9A.44.086, ((9A.44.070, 9A.44.080,)) 9A.44.100(1)(b), 9A.44.079, 9A.44.089, or 9A.64.020.

      (d) The following offenses shall not be prosecuted more than six years after their commission or their discovery, whichever occurs later:

      (i) Violations of RCW 9A.82.060 or 9A.82.080;

      (ii) Any felony violation of chapter 9A.83 RCW;

      (iii) Any felony violation of chapter 9.35 RCW; or

      (iv) Theft in the first or second degree under chapter 9A.56 RCW when accomplished by color or aid of deception.

      (e) The following offenses shall not be prosecuted more than five years after their commission:  Any class C felony under chapter ((74.09,)) 82.36((,)) or 82.38 RCW.

      (f) Any felony under chapter 74.09 RCW shall not be prosecuted more than ten years after their commission.
      (g) Bigamy shall not be prosecuted more than three years after the time specified in RCW 9A.64.010.

      (((g))) (h) A violation of RCW 9A.56.030 must not be prosecuted more than three years after the discovery of the offense when the victim is a tax exempt corporation under 26 U.S.C. Sec. 501(c)(3).

      (((h))) (i) No other felony may be prosecuted more than three years after its commission; except that in a prosecution under RCW 9A.44.115, if the person who was viewed, photographed, or filmed did not realize at the time that he or she was being viewed, photographed, or filmed, the prosecution must be commenced within two years of the time the person who was viewed or in the photograph or film first learns that he or she was viewed, photographed, or filmed.

      (((i))) (j) No gross misdemeanor may be prosecuted more than two years after its commission.

      (((j))) (k) No misdemeanor may be prosecuted more than one year after its commission.

      (2) The periods of limitation prescribed in subsection (1) of this section do not run during any time when the person charged is not usually and publicly resident within this state.

      (3) In any prosecution for a sex offense as defined in RCW 9.94A.030, the periods of limitation prescribed in subsection (1) of this section run from the date of commission or one year from the date on which the identity of the suspect is conclusively established by deoxyribonucleic acid testing, whichever is later.

      (4) If, before the end of a period of limitation prescribed in subsection (1) of this section, an indictment has been found or a complaint or an information has been filed, and the indictment, complaint, or information is set aside, then the period of limitation is extended by a period equal to the length of time from the finding or filing to the setting aside.

Sec. 2.  RCW 74.09.210 and 1989 c 175 s 146 are each amended to read as follows:

      (1) No person, firm, corporation, partnership, association, agency, institution, or other legal entity, but not including an individual public assistance recipient of health care, shall, on behalf of himself or others, obtain or attempt to obtain benefits or payments under this chapter in a greater amount than that to which entitled by means of:

      (a) A willful false statement;

      (b) By willful misrepresentation, or by concealment of any material facts; or

      (c) By other fraudulent scheme or device, including, but not limited to:

      (i) Billing for services, drugs, supplies, or equipment that were unfurnished, of lower quality, or a substitution or misrepresentation of items billed; or

      (ii) Repeated billing for purportedly covered items, which were not in fact so covered.

      (2) Any person or entity knowingly violating any of the provisions of subsection (1) of this section shall be liable for repayment of any excess benefits or payments received, plus interest at the rate and in the manner provided in RCW 43.20B.695.  Such person or other entity shall further, in addition to any other penalties provided by law, be subject to civil penalties.  The secretary or director, as appropriate, or the attorney general may assess civil penalties in an amount not to exceed three times the amount of such excess benefits or payments:  PROVIDED, That these civil penalties shall not apply to any acts or omissions occurring prior to September 1, 1979.  RCW 43.20A.215 governs notice of a civil fine assessed by the secretary or director, as appropriate, and provides the right to an adjudicative proceeding.

      (3) A criminal action need not be brought against a person for that person to be civilly liable under this section.

      (4) In all administrative proceedings under this section, service, adjudicative proceedings, and judicial review of such determinations shall be in accordance with chapter 34.05 RCW, the administrative procedure act.

      (5) Civil penalties shall be deposited ((in the general fund)) upon their receipt into the medicaid fraud penalty account established in section 3 of this act.

(6) The attorney general may contract with private attorneys and local governments in bringing actions under this section as necessary.

NEW SECTION.  Sec. 3.  A new section is added to chapter 74.09 RCW to read as follows:

      The medicaid fraud penalty account is created in the state treasury.  All receipts from civil penalties collected under RCW 74.09.210, all receipts received under settlements that originated under a filing under the federal false claims act, and all receipts received under settlements that originated under the state medicaid fraud false claims act, chapter 74.--- RCW (the new chapter created in section 17 of this act) must be deposited into the account.  Moneys in the account may be spent only after appropriation and must be used only for medicaid services and for medicaid fraud enforcement activities.

NEW SECTION.  Sec. 4.  A new section is added to chapter 74.09 RCW to read as follows:

      (1) For the purposes of this section:

      (a) "Employer" means any person, firm, corporation, partnership, association, agency, institution, or other legal entity.

      (b) "Whistleblower" means an employee of an employer that obtains or attempts to obtain benefits or payments under this chapter in violation of RCW 74.09.210, who in good faith reports a violation of RCW 74.09.210 to the department or the authority.

      (c) "Workplace reprisal or retaliatory action" includes, but is not limited to:  Denial of adequate staff to report duties; frequent staff changes; frequent and undesirable office changes; refusal to assign meaningful work; unwarranted and unsubstantiated report of misconduct under Title 18 RCW; unwarranted and unsubstantiated letters of reprimand or unsatisfactory performance evaluations; demotion; reduction in pay; denial of promotion; suspension; dismissal; denial of employment; or a supervisor or superior behaving in or encouraging coworkers to behave in a hostile manner toward the whistleblower; or a change in the physical location of the employee's workplace or a change in the basic nature of the employee's job, if either are in opposition to the employee's expressed wish.

      (2) A whistleblower who has been subjected to workplace reprisal or retaliatory action has the remedies provided under chapter 49.60 RCW.  RCW 4.24.500 through 4.24.520, providing certain protection to persons who communicate to government agencies, apply to complaints made under this section.  The identity of a whistleblower who complains, in good faith, to the department or the authority about a suspected violation of RCW 74.09.210 may remain confidential if requested.  The identity of the whistleblower must subsequently remain confidential unless the department or the authority, as appropriate, determines that the complaint was not made in good faith.

      (3) This section does not prohibit an employer from exercising its authority to terminate, suspend, or discipline an employee who engages in workplace reprisal or retaliatory action against a whistleblower.  The protections provided to whistleblowers under this chapter do not prevent an employer from:  (a) Terminating, suspending, or disciplining a whistleblower for other lawful purposes; or (b) reducing the hours of employment or terminating employment as a result of the demonstrated inability to meet payroll requirements.  The department or the authority, as appropriate, shall determine if the employer cannot meet payroll in cases where a whistleblower has been terminated or had hours of employment reduced due to the inability of a facility to meet payroll.

      (4) The department or the authority, as appropriate, shall adopt rules to implement procedures for filing, investigation, and resolution of whistleblower complaints that are integrated with complaint procedures under this chapter.  The department or the authority, as appropriate, shall adopt rules designed to discourage whistleblower complaints made in bad faith or for retaliatory purposes.

NEW SECTION.  Sec. 5.  A new section is added to chapter 74.09 RCW to read as follows:

      The following must be medicare providers in order to be paid under the medicaid program:  Providers of durable medical equipment and related supplies, providers of prosthetics, providers of orthotics, and providers of medical supplies and related services.

Sec. 6.  RCW 74.09.230 and 1979 ex.s. c 152 s 4 are each amended to read as follows:

      ((Any)) (1)(a) A person, including any corporation, who with intent to deprive wrongfully obtains, or exerts unauthorized control over, property or services, which exceed or exceeds five thousand dollars in value, from any program authorized by this chapter is guilty of medicaid theft.
      (b) A person, including any corporation, who by color or aid of deception, obtains control over property or services from any program authorized under this chapter, or the value thereof and intends to deprive the program of such property and services, which exceed or exceeds five thousand dollars in value is guilty of medicaid theft.
      (c) Medicaid theft is a class B felony:  PROVIDED, That the fine, if imposed, shall not be in an amount more than fifty thousand dollars, except as authorized by RCW 9A.20.030.
      (2) A person, including any corporation, ((that
      (1))) who
      (a) knowingly makes or causes to be made any false statement or representation of a material fact in any application for any payment under any medical care program authorized under this chapter, or

      (((2))) (b) at any time knowingly makes or causes to be made any false statement or representation of a material fact for use in determining rights to such payment, or knowingly falsifies, conceals, or covers up by any trick, scheme, or device a material fact in connection with such application or payment, or

      (((3))) (c) having knowledge of the occurrence of any event affecting (((a))) (i) the initial or continued right to any payment, or (((b))) (ii) the initial or continued right to any such payment of any other individual in whose behalf he or she has applied for or is receiving such payment, conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount or quantity than is due or when no such payment is authorized,

shall be guilty of a class C felony:  PROVIDED, That the fine, if imposed, shall not be in an amount more than twenty-five thousand dollars, except as authorized by RCW 9A.20.030.

(3) The definitions in RCW 9A.56.010 apply to this section.

Sec. 7.  RCW 43.43.830 and 2011 c 253 s 5 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.43.830 through 43.43.845.

      (1) "Applicant" means:

      (a) Any prospective employee who will or may have unsupervised access to children under sixteen years of age or developmentally disabled persons or vulnerable adults during the course of his or her employment or involvement with the business or organization;

      (b) Any prospective volunteer who will have regularly scheduled unsupervised access to children under sixteen years of age, developmentally disabled persons, or vulnerable adults during the course of his or her employment or involvement with the business or organization under circumstances where such access will or may involve groups of (i) five or fewer children under twelve years of age, (ii) three or fewer children between twelve and sixteen years of age, (iii) developmentally disabled persons, or (iv) vulnerable adults;

      (c) Any prospective adoptive parent, as defined in RCW 26.33.020; or

      (d) Any prospective custodian in a nonparental custody proceeding under chapter 26.10 RCW.

      (2) "Business or organization" means a person, business, or organization licensed in this state, any agency of the state, or other governmental entity, that educates, trains, treats, supervises, houses, or provides recreation to developmentally disabled persons, vulnerable adults, or children under sixteen years of age, or that provides child day care, early learning, or early learning childhood education services, including but not limited to public housing authorities, school districts, and educational service districts.

      (3) "Civil adjudication proceeding" is a judicial or administrative adjudicative proceeding that results in a finding of, or upholds an agency finding of, domestic violence, abuse, sexual abuse, neglect, abandonment, violation of a professional licensing standard regarding a child or vulnerable adult, or exploitation or financial exploitation of a child or vulnerable adult under any provision of law, including but not limited to chapter 13.34, 26.44, or 74.34 RCW, or rules adopted under chapters 18.51 and 74.42 RCW.  "Civil adjudication proceeding" also includes judicial or administrative findings that become final due to the failure of the alleged perpetrator to timely exercise a legal right to administratively challenge such findings.

      (4) "Conviction record" means "conviction record" information as defined in RCW 10.97.030 and 10.97.050 relating to a crime committed by either an adult or a juvenile.  It does not include a conviction for an offense that has been the subject of an expungement, pardon, annulment, certificate of rehabilitation, or other equivalent procedure based on a finding of the rehabilitation of the person convicted, or a conviction that has been the subject of a pardon, annulment, or other equivalent procedure based on a finding of innocence.  It does include convictions for offenses for which the defendant received a deferred or suspended sentence, unless the record has been expunged according to law.

      (5) "Crime against children or other persons" means a conviction of any of the following offenses:  Aggravated murder; first or second degree murder; first or second degree kidnapping; first, second, or third degree assault; first, second, or third degree assault of a child; first, second, or third degree rape; first, second, or third degree rape of a child; first or second degree robbery; first degree arson; first degree burglary; first or second degree manslaughter; first or second degree extortion; indecent liberties; incest; vehicular homicide; first degree promoting prostitution; communication with a minor; unlawful imprisonment; simple assault; sexual exploitation of minors; first or second degree criminal mistreatment; endangerment with a controlled substance; child abuse or neglect as defined in RCW 26.44.020; first or second degree custodial interference; first or second degree custodial sexual misconduct; malicious harassment; first, second, or third degree child molestation; first or second degree sexual misconduct with a minor; commercial sexual abuse of a minor; child abandonment; promoting pornography; selling or distributing erotic material to a minor; custodial assault; violation of child abuse restraining order; child buying or selling; prostitution; felony indecent exposure; criminal abandonment; or any of these crimes as they may be renamed in the future.

      (6) "Crimes relating to drugs" means a conviction of a crime to manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance.

      (7) "Crimes relating to financial exploitation" means a conviction for first, second, or third degree extortion; first, second, or third degree theft; medicaid theft or medicaid false statement (RCW 74.09.230); first or second degree robbery; forgery; or any of these crimes as they may be renamed in the future.

      (8) "Unsupervised" means not in the presence of:

      (a) Another employee or volunteer from the same business or organization as the applicant; or

      (b) Any relative or guardian of any of the children or developmentally disabled persons or vulnerable adults to which the applicant has access during the course of his or her employment or involvement with the business or organization.

      With regard to peer counselors, "unsupervised" does not include incidental contact with children under age sixteen at the location at which the peer counseling is taking place.  "Incidental contact" means minor or casual contact with a child in an area accessible to and within visual or auditory range of others.  It could include passing a child while walking down a hallway but would not include being alone with a child for any period of time in a closed room or office.

      (9) "Vulnerable adult" means "vulnerable adult" as defined in chapter 74.34 RCW, except that for the purposes of requesting and receiving background checks pursuant to RCW 43.43.832, it shall also include adults of any age who lack the functional, mental, or physical ability to care for themselves.

      (10) "Financial exploitation" means "financial exploitation" as defined in RCW 74.34.020.

      (11) "Agency" means any person, firm, partnership, association, corporation, or facility which receives, provides services to, houses or otherwise cares for vulnerable adults, juveniles, or children, or which provides child day care, early learning, or early childhood education services.

      (12) "Peer counselor" means a nonprofessional person who has equal standing with another person, providing advice on a topic about which the nonprofessional person is more experienced or knowledgeable, and who is a counselor for a peer counseling program that contracts with or is otherwise approved by the department, another state or local agency, or the court.

NEW SECTION.  Sec. 8.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

      (1)(a) "Claim" means any request or demand made for a medicaid payment under chapter 74.09 RCW, whether under a contract or otherwise, for money or property and whether or not a government entity has title to the money or property, that:

      (i) Is presented to an officer, employee, or agent of a government entity; or

      (ii) Is made to a contractor, grantee, or other recipient, if the money or property is to be spent or used on the government entity's behalf or to advance a government entity program or interest, and the government entity:

      (A) Provides or has provided any portion of the money or property requested or demanded; or

      (B) Will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.

      (b) A "claim" does not include requests or demands for money or property that the government entity has paid to an individual as compensation for employment or as an income subsidy with no restrictions on that individual's use of the money or property.

      (2) "Custodian" means the custodian, or any deputy custodian, designated by the attorney general.

      (3) "Documentary material" includes the original or any copy of any book, record, report, memorandum, paper, communication, tabulation, chart, or other document, or data compilations stored in or accessible through computer or other information retrieval systems, together with instructions and all other materials necessary to use or interpret the data compilations, and any product of discovery.

      (4) "False claims act investigation" means any inquiry conducted by any false claims act investigator for the purpose of ascertaining whether any person is or has been engaged in any violation of this chapter.

      (5) "False claims act investigator" means any attorney or investigator employed by the state attorney general who is charged with the duty of enforcing or carrying into effect any provision of this chapter, or any officer or employee of the state of Washington acting under the direction and supervision of the attorney or investigator in connection with an investigation pursuant to this chapter.

      (6) "Government entity" means all state agencies that administer medicaid funded programs under this title.

      (7)(a) "Knowing" and "knowingly" mean that a person, with respect to information:

      (i) Has actual knowledge of the information;

      (ii) Acts in deliberate ignorance of the truth or falsity of the information; or

      (iii) Acts in reckless disregard of the truth or falsity of the information.

      (b) "Knowing" and "knowingly" do not require proof of specific intent to defraud.

      (8) "Material" means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property.

      (9) "Obligation" means an established duty, whether or not fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee relationship, from a fee-based or similar relationship, from statute or rule, or from the retention of any overpayment.

      (10) "Official use" means any use that is consistent with the law, and the rules and policies of the attorney general, including use in connection with:  Internal attorney general memoranda and reports; communications between the attorney general and a federal, state, or local government agency, or a contractor of a federal, state, or local government agency, undertaken in furtherance of an investigation or prosecution of a case; interviews of any witness; oral examinations; depositions; preparation for and response to civil discovery requests; introduction into the record of a case or proceeding; applications, motions, memoranda, and briefs submitted to a court or other tribunal; and communications with attorney general investigators, auditors, consultants and experts, the counsel of other parties, and arbitrators or mediators, concerning an investigation, case, or proceeding.

      (11) "Person" means any natural person, partnership, corporation, association, or other legal entity, including any local or political subdivision of a state.

      (12) "Product of discovery" includes:

      (a) The original or duplicate of any deposition, interrogatory, document, thing, result of the inspection of land or other property, examination, or admission, which is obtained by any method of discovery in any judicial or administrative proceeding of an adversarial nature;

      (b) Any digest, analysis, selection, compilation, or derivation of any item listed in (a) of this subsection; and

      (c) Any index or other manner of access to any item listed in (a) of this subsection.

NEW SECTION.  Sec. 9.  (1) Subject to subsection (2) of this section, a person is liable to the government entity for a civil penalty of not less than five thousand dollars and not more than ten thousand dollars, plus three times the amount of damages which the government entity sustains because of the act of that person, if the person:

      (a) Knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;

      (b) Knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;

      (c) Conspires to commit one or more of the violations in this subsection (1);

      (d) Has possession, custody, or control of property or money used, or to be used, by the government entity and knowingly delivers, or causes to be delivered, less than all of that money or property;

      (e) Is authorized to make or deliver a document certifying receipt of property used, or to be used, by the government entity and, intending to defraud the government entity, makes or delivers the receipt without completely knowing that the information on the receipt is true;

      (f) Knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the government entity who lawfully may not sell or pledge property; or

      (g) Knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the government entity, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the government entity.

      (2) The court may assess not less than two times the amount of damages which the government entity sustains because of the act of a person, if the court finds that:

      (a) The person committing the violation of subsection (1) of this section furnished the Washington state attorney general with all information known to him or her about the violation within thirty days after the date on which he or she first obtained the information;

      (b) The person fully cooperated with any investigation by the attorney general of the violation; and

      (c) At the time the person furnished the attorney general with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this title with respect to the violation, and the person did not have actual knowledge of the existence of an investigation into the violation.

      (3) For the purposes of determining whether an insurer has a duty to provide a defense or indemnification for an insured and if coverage may be denied if the terms of the policy exclude coverage for intentional acts, a violation of subsection (1) of this section is an intentional act.

NEW SECTION.  Sec. 10.  Any information furnished pursuant to this chapter is exempt from disclosure under the public records act, chapter 42.56 RCW, until final disposition and all court ordered seals are lifted.

NEW SECTION.  Sec. 11.  Subject to funds appropriated for this purpose, the attorney general must diligently investigate a violation under section 9 of this act.  If the attorney general finds that a person has violated or is violating section 9 of this act, the attorney general may bring a civil action under this section against the person.

NEW SECTION.  Sec. 12.  Any person who is the original source of the information used by the attorney general to bring an action under section 9 of this act shall receive at least fifteen percent but no more than twenty-five percent of any recovery by the attorney general, as determined by the court.  As used in this section, "original source of information" means information no part of which has been previously disclosed to or known by the government or public.  If the court finds that the person who was the original source of the information used by the attorney general to bring an action under section 9 of this act planned, initiated, or participated in the conduct upon which the action is brought, such person shall not be entitled to any percentage of the recovery obtained in such action.

NEW SECTION.  Sec. 13.  (1) Any employee, contractor, or agent is entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, or agent or associated others in furtherance of an action under this section or other efforts to stop one or more violations of this chapter.

      (2) Relief under subsection (1) of this section must include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, two times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys' fees, and any and all relief available under RCW 49.60.030(2).  An action under this subsection may be brought in the appropriate superior court of the state of Washington for the relief provided in this subsection.

      (3) A civil action under this section may not be brought more than three years after the date when the retaliation occurred.

NEW SECTION.  Sec. 14.  (1) Any action under section 11 of this act may be brought in the superior court in any county in which the defendant or, in the case of multiple defendants, any one defendant can be found, resides, transacts business, or in which any act proscribed by section 9 of this act occurred.  The appropriate court must issue a summons as required by the superior court civil rules and service must occur at any place within the state of Washington.

      (2) The superior courts have jurisdiction over any action brought under the laws of any city or county for the recovery of funds paid by a government entity if the action arises from the same transaction or occurrence as an action brought under section 11 of this act.

NEW SECTION.  Sec. 15.  Beginning November 15, 2012, and annually thereafter, the attorney general in consultation with the department of social and health services and the health care authority must report results of implementing the medicaid false claims act.  This report must include:

      (1) The number of attorneys assigned to qui tam initiated actions;

      (2) The number of cases brought by the qui tam actions and indicate how many cases are brought by the attorney general and how many by the qui tam relator without attorney general participation;

      (3) The results of any actions brought under subsection (2) of this section, delineated by cases brought by the attorney general and cases brought by the qui tam relator without attorney general participation; and

      (4) The amount of recoveries attributable to the medicaid false claims.

NEW SECTION.  Sec. 16.  This chapter may be known and cited as the medicaid fraud false claims act.

NEW SECTION.  Sec. 17.  Sections 8 through 16 of this act constitute a new chapter in Title 74 RCW.

NEW SECTION.  Sec. 18.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

 

Signed by Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle; Chandler; Cody; Dickerson; Haigh; Haler; Hinkle; Hudgins; Hunt; Kagi; Kenney; Ormsby; Parker; Ross; Schmick; Seaquist; Springer; Sullivan and Wilcox.

 

      There being no objection, the bills listed on the day’s committee reports under the fifth order of business were placed on the second reading calendar.

 

MESSAGES FROM THE SENATE

 

May 23, 2011

MR. SPEAKER:

 

The Senate concurred in the House amendment(s) to the following bill and passed the bill as amended by the House:  

SECOND ENGROSSED SENATE BILL 5764

and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary

 

May 23, 2011

MR. SPEAKER:

 

The Senate has adopted the report of the Conference Committee on SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5742, and has passed the bill as recommended by the Conference Committee.

and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary

 

May 23, 2011

MR. SPEAKER:

 

The Senate has passed ENGROSSED HOUSE BILL 2123 and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary

 

May 23, 2011

MR. SPEAKER:

 

The President has signed:

ENGROSSED HOUSE BILL 1248

ENGROSSED SUBSTITUTE HOUSE BILL 1277

ENGROSSED SUBSTITUTE HOUSE BILL 1354

SECOND ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1738

HOUSE BILL 2070

ENGROSSED SUBSTITUTE HOUSE BILL 2115

and the same are herewith transmitted.

Thomas Hoemann, Secretary

 

There being no objection, the House advanced to the seventh order of business.

 

THIRD READING

 

MESSAGE FROM THE SENATE

May 21, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1981with the following amendment:

 

Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  The legislature intends that the retirement and annuity programs of the state's institutions of higher education be revised for future participants to reflect changes that have already occurred in state pension plans.  The legislature intends also that newly hired employees who are eligible for participation in an annuity or retirement income plan offered by a higher education institution have an opportunity to participate in either (1) that plan without a supplemental benefit under RCW 28B.10.400(1)(c), or (2) the public employees' retirement system plan 3 or the teachers' retirement system plan 3.  Plan 3 provides a combination of defined contribution and defined benefit pension, which will be available for newly hired employees.  The legislature also intends to reduce the expanded postretirement employment provisions for members of the public employees' retirement system and the teachers' retirement system plans 1 that were temporarily expanded due to the shortage of qualified workers in particular teaching and public employment categories, and eliminate postretirement employment exceptions that existed for annuity or retirement income plan-covered positions that have been the subject of abuse.

Sec. 2.  RCW 28B.10.400 and 2010 c 21 s 1 are each amended to read as follows:

(1) The boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College, ((and)) the state board for community and technical colleges, and the higher education coordinating board are authorized and empowered:

                     (((1))) (a) To assist the faculties and such other employees exempt from civil service pursuant to RCW 41.06.070 (1)(cc) and (2) as any such board may designate in the purchase of old age annuities or retirement income plans under such rules as any such board may prescribe, subject to the restrictions in subsection (2) of this section.  County agricultural agents, home demonstration agents, 4-H club agents, and assistant county agricultural agents paid jointly by the Washington State University and the several counties shall be deemed to be full time employees of the Washington State University for the purposes ((hereof)) of this section;

                     (((2))) (b) To provide, under such rules ((and regulations)) as any such board may prescribe for the faculty members or other employees exempt from civil service pursuant to RCW 41.06.070 (1)(cc) and (2) under its supervision, for the retirement of any such faculty member or other exempt employee on account of age or condition of health, retirement on account of age to be not earlier than the sixty-fifth birthday:  PROVIDED, That such faculty member or such other exempt employee may elect to retire at the earliest age specified for retirement by federal social security law:  PROVIDED FURTHER, That any supplemental payment authorized by (c) of this subsection (((3) of this section)) and paid as a result of retirement earlier than age sixty- five shall be at an actuarially reduced rate; and shall be provided only to those persons who participate in an annuity or retirement income plan under (a) of this subsection prior to July 1, 2011;

                     (((3))) (c) To pay ((to any such retired person)) only to those persons who participate in an annuity or retirement income plan under (a) of this subsection prior to July 1, 2011, or to his or her designated beneficiary(s), each year after his or her retirement, a supplemental amount which, when added to the amount of such annuity or retirement income plan, or retirement income benefit pursuant to RCW 28B.10.415, received by the retired person or the retired person's designated beneficiary(s) in such year, will not exceed fifty percent of the average annual salary paid to such retired person for his or her highest two consecutive years of full time service under an annuity or retirement income plan established pursuant to (a) of this subsection (((1) of this section)) at an institution of higher education:  PROVIDED, HOWEVER, That if such retired person prior to retirement elected a supplemental payment survivors option, any such supplemental payments to such retired person or the retired person's designated beneficiary(s) shall be at actuarially reduced rates:  PROVIDED FURTHER, That if a faculty member or other employee of an institution of higher education who is a participant in a retirement plan authorized by this section dies, or has died before retirement but after becoming eligible for retirement on account of age, the designated beneficiary(s) shall be entitled to receive the supplemental payment authorized by this subsection to which such designated beneficiary(s) would have been entitled had said deceased faculty member or other employee retired on the date of death after electing a supplemental payment survivors option:  PROVIDED FURTHER, That for the purpose of this subsection, the designated beneficiary(s) shall be (((a))) (i) the surviving spouse of the retiree; or, (((b))) (ii) with the written consent of such spouse, if any, such other person or persons as shall have an insurable interest in the retiree's life and shall have been nominated by written designation duly executed and filed with the retiree's institution of higher education((;)).

                     (((4))) (2) Boards are prohibited from offering a purchased annuity or retirement income plan authorized under this section to employees hired on or after July 1, 2011, who have retired or are eligible to retire from a public employees' retirement system described in RCW 41.50.030.  The higher education coordinating board ((is also authorized and empowered as described in this section, subject to the following:  The board)) shall only offer participation in a purchased annuity or retirement income plan authorized under this section to employees who have previously contributed premiums to a similar qualified plan((, and the board is prohibited from offering or funding such a plan authorized under this section for the benefit of any retiree who is receiving or accruing a retirement allowance from a public employees' retirement system under Title 41 RCW or chapter 43.43 RCW)).

Sec. 3.  RCW 28B.10.405 and 1977 ex.s. c 169 s 16 are each amended to read as follows:

                     Members of the faculties and ((such other)) senior academic administrator employees as are designated by the boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College, the higher education coordinating board, or the state board for community and technical colleges ((education)) who do not opt to become members of the teachers' retirement system or the public employees' retirement system under section 9 or 18 of this act, or who are not prevented from participation in an annuity or retirement plan under RCW 28B.10.400(2) shall be required to contribute not less than five percent of their salaries during each year of full time service after the first two years of such service toward the purchase of such annuity or retirement income plan; such contributions may be in addition to federal social security tax contributions, if any.

Sec. 4.  RCW 28B.10.410 and 1977 ex.s. c 169 s 17 are each amended to read as follows:

                     The boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College, the higher education coordinating board, or the state board for community and technical colleges ((education)) shall pay not more than one-half of the annual premium of any annuity or retirement income plan established under the provisions of RCW 28B.10.400 ((as now or hereafter amended)).  Such contribution shall not exceed ten percent of the salary of the faculty member or other employee on whose behalf the contribution is made.  This contribution may be in addition to federal social security tax contributions made by the boards, if any.

Sec. 5.  RCW 28B.10.415 and 1979 ex.s. c 259 s 2 are each amended to read as follows:

                     The boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College, the higher education coordinating board, or the state board for community and technical colleges ((education)) shall not pay any amount to be added to the annuity or retirement income plan of any retired person who was first hired on or after July 1, 2011, or who has served for less than ten years in one or more of the state institutions of higher education.  In the case of persons who have served more than ten years but less than twenty-five years no amount shall be paid in excess of four percent of the amount authorized in ((subdivision (3) of)) RCW 28B.10.400 ((as now or hereafter amended)) (1)(c), multiplied by the number of years of full time service rendered by such person:  PROVIDED, That credit for years of service at an institution of higher education shall be limited to those years in which contributions were made by a faculty member or other employee designated pursuant to RCW 28B.10.400(1)(a) and the institution or the state as a result of which a benefit is being received by a retired person from any Washington state public retirement plan:  PROVIDED FURTHER, That all such benefits that a retired person is eligible to receive shall reduce any supplementation payments provided for in RCW 28B.10.400 ((as now or hereafter amended)).

Sec. 6.  RCW 28B.10.417 and 1977 ex.s. c 169 s 19 are each amended to read as follows:

                     (1) This section applies only to those persons who are first employed by a higher education institution in a position eligible for participation in an annuity or retirement program under RCW 28B.10.400 prior to July 1, 2011.

                     (2) A faculty member or other employee exempt from civil service pursuant to RCW 41.06.070 (1)(cc) and (2) designated by the board of trustees of the applicable regional university or of The Evergreen State College as being subject to an annuity or retirement income plan and who, at the time of such designation, is a member of the Washington state teachers' retirement system, shall retain credit for such service in the Washington state teachers' retirement system and except as provided in subsection (((2))) (3) of this section, shall leave his or her accumulated contributions in the teachers' retirement fund.  Upon his or her attaining eligibility for retirement under the Washington state teachers' retirement system, such faculty member or other employee shall receive from the Washington state teachers' retirement system a retirement allowance consisting of an annuity which shall be the actuarial equivalent of his or her accumulated contributions at his or her age when becoming eligible for such retirement and a pension for each year of creditable service established and retained at the time of said designation as provided in RCW 41.32.497 ((as now or hereafter amended)).  Anyone who on July 1, 1967, was receiving pension payments from the teachers' retirement system based on thirty-five years of creditable service shall thereafter receive a pension based on the total years of creditable service established with the retirement system:  PROVIDED, HOWEVER, That any such faculty member or other employee exempt from civil service pursuant to RCW 41.06.070 (1)(cc) and (2) who, upon attainment of eligibility for retirement under the Washington state teachers' retirement system, is still engaged in public educational employment, shall not be eligible to receive benefits under the Washington state teachers' retirement system until he or she ceases such public educational employment.  Any retired faculty member or other employee who enters service in any public educational institution shall cease to receive pension payments while engaged in such service:  PROVIDED FURTHER, That such service may be rendered up to seventy-five days in a school year without reduction of pension.

                     (((2))) (3) A faculty member or other exempt employee designated by the board of trustees of the applicable regional university or of The Evergreen State College as being subject to the annuity and retirement income plan and who, at the time of such designation, is a member of the Washington state teachers' retirement system may, at his or her election and at any time, on and after midnight June 10, 1959, terminate his or her membership in the Washington state teachers' retirement system and withdraw his or her accumulated contributions and interest in the teachers' retirement fund upon written application to the board of trustees of the Washington state teachers' retirement system.  Faculty members or other employees who withdraw their accumulated contributions, on and after the date of withdrawal of contributions, shall no longer be members of the Washington state teachers' retirement system and shall forfeit all rights of membership, including pension benefits, theretofore acquired under the Washington state teachers' retirement system.

Sec. 7.  RCW 28B.10.423 and 1973 1st ex.s. c 149 s 8 are each amended to read as follows:

(1) For employees who are first employed by an institution of higher education in a position eligible for participation in an old age annuities or retirement income plan under this chapter prior to July 1, 2011, it is the intent of RCW 28B.10.400, 28B.10.405, 28B.10.410, 28B.10.415, 28B.10.420, 28B.10.423 and 83.20.030 that the retirement income resulting from the contributions described herein from the state of Washington and the employee shall be projected actuarially so that it shall not exceed sixty percent of the average of the highest two consecutive years salary.  Periodic review of the retirement systems established pursuant to RCW 28B.10.400, 28B.10.405, 28B.10.410, 28B.10.415, 28B.10.420, and 28B.10.423 ((and 83.20.030)) will be undertaken at such time and in such manner as determined by the committees on ways and means of the senate and of the house of representatives ((and the public pension commission)), the select committee on pension policy, and the pension funding council, and joint contribution rates will be adjusted if necessary to accomplish this intent.

(2) By June 30, 2013, and every two years thereafter, each institution of higher education that is responsible for payment of supplemental amounts under RCW 28B.10.400(1)(c) shall contract with the state actuary under chapter 41.44 RCW for an actuarial valuation of their supplemental benefit plan.  By June 30, 2013, and at least once every six years thereafter, each institution shall also contract with the state actuary under chapter 41.44 RCW for an actuarial experience study of the mortality, service, compensation, and other experience of the annuity or retirement income plans created in this chapter, and into the financial condition of each system.  At the discretion of the state actuary, the valuation or experience study may be performed by the state actuary or by an outside actuarial firm under contract to the office of the state actuary.  Each institution of higher education is required to provide the data and information required for the performance of the valuation or experience study to the office of the state actuary or to the actuary performing the study on behalf of the state actuary.  The state actuary may charge each institution for the actual cost of the valuation or experience study through an interagency agreement.  Upon completion of the valuation or experience study, the state actuary shall provide copies of the study to the institution of higher education and to the select committee on pension policy and the pension funding council.

                     (3)(a) A higher education retirement plan supplemental benefit fund is created in the custody of the state treasurer for the purpose of funding future benefit obligations of higher education retirement plan supplemental benefits.  The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the fund.

                     (b) Beginning January 1, 2014, an employer contribution rate of one-half of one percent of salary is established to begin prefunding the unfunded future obligations of the supplemental benefit established in RCW 28B.10.400.

                     (c) Consistent with chapter 41.50 RCW, the department of retirement systems shall collect the employer contribution rates established in this section from each state institution of higher education, and deposit those contributions into the higher education retirement plan supplemental benefit fund.  The contributions made by each employer into the higher education retirement plan supplemental benefit fund and the earnings on those contributions shall be accounted for separately within the fund.

                     (d) Following the completion and review of the initial actuarial valuations and experience study conducted pursuant to subsection (2) of this section, the pension funding council may:

                     (i) Adopt and make changes to the employer contribution rate established in (a) of this subsection consistent with the procedures established in chapter 41.45 RCW.  If the actuarial valuations of the higher education retirement plans of each institution contributing to the higher education retirement plan supplemental benefit fund suggest that different contribution rates are appropriate for each institution, different rates may be adopted.  Rates adopted by the pension funding council are subject to revision by the legislature.

                     (ii) Recommend legislation that will, upon accumulation of sufficient funding in the higher education retirement plan supplemental benefit fund transfer the responsibility for making supplemental benefit payments to the department of retirement systems, and adjust employer contribution rates to reflect the transfer of responsibility.

Sec. 8.  RCW 28B.10.430 and 1979 ex.s. c 96 s 5 are each amended to read as follows:

                     (1) This section applies only to those persons who are first employed by an institution of higher education in a position eligible for participation in an old age annuities or retirement income plan under this chapter prior to July 1, 2011.

                     (2) For any person receiving a monthly benefit pursuant to a program established under RCW 28B.10.400, the pension portion of such benefit shall be the sum of the following amounts:

                     (a) One-half of the monthly benefit payable under such program by a life insurance company; and

                     (b) The monthly equivalent of the supplemental benefit described in RCW 28B.10.400(((3))) (1)(c).

                     (((2))) (3) Notwithstanding any provision of law to the contrary, effective July 1, 1979, no person receiving a monthly benefit pursuant to RCW 28B.10.400 shall receive, as the pension portion of that benefit, less than ten dollars per month for each year of service creditable to the person whose service is the basis of the benefit.  Portions of a year shall be treated as fractions of a year and the decimal equivalent shall be multiplied by ten dollars.  Where the benefit was adjusted at the time benefit payments to the beneficiary commenced, the minimum pension provided in this section shall be adjusted in a manner consistent with that adjustment.

                     (((3))) (4) Notwithstanding any provision of law to the contrary, effective July 1, 1979, the monthly benefit of each person who commenced receiving a monthly benefit under this chapter as of a date no later than July 1, 1974, shall be permanently increased by a post- retirement adjustment.  Such adjustment shall be calculated as follows:

                     (a) Monthly benefits to which this subsection and subsection (((2))) (3) of this section are both applicable shall be determined by first applying subsection (((2))) (3) of this section and then applying this subsection.  The ((department)) institution shall determine the total years of creditable service and the total dollar benefit base accrued as of December 31, 1978, except that this determination shall take into account only those persons to whom this subsection applies;

                     (b) The ((department)) institution shall multiply the total benefits determined in (a) of this subsection by six percent and divide the dollar value thus determined by the total service determined in (a) of this subsection.  The resultant figure shall then be a post- retirement increase factor which shall be applied as specified in (c) of this subsection;

                     (c) Each person to whom this subsection applies shall receive an increase which is the product of the factor determined in (b) of this subsection multiplied by the years of creditable service.

NEW SECTION.  Sec. 9.  A new section is added to chapter 41.32 RCW to be codified under the subchapter heading "plan 3" to read as follows:

                     (1) All faculty members who are first employed by an institution of higher education in a position eligible for participation in old age annuities or retirement income plans under chapter 28B.10 RCW on or after July 1, 2011, have a period of thirty days to make an irrevocable choice to:

                     (a) Become a member of the teachers' retirement system plan 3 under this chapter; or

                     (b) Participate in the annuities or retirement income plan provided by the institution.

                     (2) At the end of thirty days, if the member has not made a choice to become a member of the teachers' retirement system, he or she becomes a participant in the institution's plan under RCW 28B.10.400, but does not become eligible for any supplemental benefit under RCW 28B.10.400(1)(c).

Sec. 10.  RCW 41.32.570 and 2007 c 50 s 3 are each amended to read as follows:

                     (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every seven hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month.  Any monthly benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2) Except under subsection (3) of this section, any retired teacher or retired administrator who enters service in any public educational institution in Washington state at least one calendar month after his or her accrual date shall cease to receive pension payments while engaged in such service, after the retiree has rendered service for more than eight hundred sixty-seven hours in a school year.

                     (3) Any retired teacher or retired administrator who retired prior to September 1, 2011, and who enters service in any public educational institution in Washington state one and one-half calendar months or more after his or her accrual date and:

                     (a) Is hired pursuant to a written policy into a position for which the school board has documented a justifiable need to hire a retiree into the position;

                     (b) Is hired through the established process for the position with the approval of the school board or other highest decision-making authority of the prospective employer;

                     (c) Whose employer retains records of the procedures followed and the decisions made in hiring the retired teacher or retired administrator and provides those records in the event of an audit; and

                     (d) The employee has not already rendered a cumulative total of more than one thousand nine hundred hours of service while in receipt of pension payments beyond an annual threshold of eight hundred sixty- seven hours;

shall cease to receive pension payments while engaged in that service after the retiree has rendered service for more than one thousand five hundred hours in a school year.  The one thousand nine hundred hour cumulative total limitation under this section applies prospectively after July 22, 2007.

                     (4) When a retired teacher or administrator renders service beyond eight hundred sixty-seven hours, the department shall collect from the employer the applicable employer retirement contributions for the entire duration of the member's employment during that fiscal year.

                     (5) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.

                     (6) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five hundred twenty-five hours per year without a reduction of his or her pension.

Sec. 11.  RCW 41.32.800 and 2004 c 242 s 55 are each amended to read as follows:

                     (1) Except as provided in RCW 41.32.802, no retiree under the provisions of plan 2 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, 41.37.010, or 41.35.010, or as a law enforcement officer or firefighter as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400.

                     If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended.  Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

                     (2) The department shall adopt rules implementing this section.

Sec. 12.  RCW 41.32.802 and 2004 c 242 s 61 are each amended to read as follows:

                     (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every seven hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month.  Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section, may work up to eight hundred sixty- seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a firefighter or law enforcement officer, as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, without suspension of his or her benefit.

                     (3) If the retiree opts to reestablish membership under RCW 41.32.044, he or she terminates his or her retirement status and immediately becomes a member.  Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit.  Such a member shall have the right to again retire if eligible.

Sec. 13.  RCW 41.32.860 and 2005 c 327 s 2 are each amended to read as follows:

                     (1) Except under RCW 41.32.862, no retiree shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, 41.35.010, or 41.37.010, or as a law enforcement officer or firefighter as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400.

                     (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused the suspension of benefits.  Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

Sec. 14.  RCW 41.32.862 and 2004 c 242 s 62 are each amended to read as follows:

                     (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every seven hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month.  Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section, may work up to eight hundred sixty- seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a firefighter or law enforcement officer, as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, without suspension of his or her benefit.

                     (3) If the retiree opts to reestablish membership under RCW 41.32.044, he or she terminates his or her retirement status and immediately becomes a member.  Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit.  Such a member shall have the right to again retire if eligible.

Sec. 15.  RCW 41.35.060 and 2004 c 242 s 64 are each amended to read as follows:

                     (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month.  Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section may work up to eight hundred sixty- seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a firefighter or law enforcement officer, as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, without suspension of his or her benefit.

                     (3) If the retiree opts to reestablish membership under RCW 41.35.030, he or she terminates his or her retirement status and becomes a member.  Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit.  Such a member shall have the right to again retire if eligible in accordance with RCW 41.35.420 or 41.35.680.  However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

Sec. 16.  RCW 41.35.230 and 2004 c 242 s 56 are each amended to read as follows:

                     (1) Except as provided in RCW 41.35.060, no retiree under the provisions of plan 2 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.35.010, 41.40.010, 41.37.010, or 41.32.010, or as a law enforcement officer or firefighter as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official.

                     (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended.  Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

                     (3) The department shall adopt rules implementing this section.

Sec. 17.  RCW 41.37.050 and 2005 c 327 s 6 are each amended to read as follows:

                     (1)(a) If a retiree enters employment in an eligible position with an employer as defined in this chapter sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) If a retiree enters employment in an eligible position with an employer as defined in chapter 41.32, 41.35, or 41.40 RCW sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (c) The benefit reduction provided in (a) and (b) of this subsection will accrue for a maximum of one hundred sixty hours per month.  Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section may work up to eight hundred sixty- seven hours per calendar year in an eligible position as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a law enforcement officer or firefighter as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, without suspension of his or her benefit.

                     (3) If the retiree opts to reestablish membership under this chapter, he or she terminates his or her retirement status and becomes a member.  Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit.  Such a member shall have the right to again retire if eligible in accordance with this chapter.  However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

                     (4) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.

NEW SECTION.  Sec. 18.  A new section is added to chapter 41.40 RCW to be codified under the subchapter heading "plan 3" to read as follows:

                     (1) All employees who are not qualified under section 9 of this act and who are first employed by an institution of higher education in a position eligible for participation in old age annuities or retirement income plans under RCW 28B.10.400 on or after July 1, 2011, have a period of thirty days to make an irrevocable choice to:

                     (a) Become a member of the public employees' retirement system plan 3 under this chapter; or

                     (b) Participate in the annuities or retirement income plan provided by the institution.

                     (2) At the end of thirty days, if the member has not made a choice to become a member of the public employees' retirement system, he or she becomes a participant in the institution's plan under RCW 28B.10.400, but does not become eligible for any supplemental benefit under RCW 28B.10.400(1)(c).

Sec. 19.  RCW 41.40.037 and 2007 c 50 s 5 are each amended to read as follows:

                     (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month.  This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

                     (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month.  Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

                     (2)(a) Except as provided in (b) of this subsection, a retiree from plan 1 who enters employment with an employer at least one calendar month after his or her accrual date may continue to receive pension payments while engaged in such service for up to eight hundred sixty- seven hours of service in a calendar year without a reduction of pension.

                     (b) A retiree from plan 1 who retired prior to September 1, 2011, and who enters employment with an employer at least three calendar months after his or her accrual date and:

                     (i) Is hired pursuant to a written policy into a position for which the employer has documented a justifiable need to hire a retiree into the position;

                     (ii) Is hired through the established process for the position with the approval of:  A school board for a school district; the chief executive officer of a state agency employer; the secretary of the senate for the senate; the chief clerk of the house of representatives for the house of representatives; the secretary of the senate and the chief clerk of the house of representatives jointly for the joint legislative audit and review committee, the select committee on pension policy, the legislative evaluation and accountability program, the legislative systems committee, and the statute law committee; or according to rules adopted for the rehiring of retired plan 1 members for a local government employer;

                     (iii) The employer retains records of the procedures followed and decisions made in hiring the retiree, and provides those records in the event of an audit; and

                     (iv) The employee has not already rendered a cumulative total of more than one thousand nine hundred hours of service while in receipt of pension payments beyond an annual threshold of eight hundred sixty- seven hours;

shall cease to receive pension payments while engaged in that service after the retiree has rendered service for more than one thousand five hundred hours in a calendar year.  The one thousand nine hundred hour cumulative total under this subsection applies prospectively to those retiring after July 27, 2003, and retroactively to those who retired prior to July 27, 2003, and shall be calculated from the date of retirement.

                     (c) When a plan 1 member renders service beyond eight hundred sixty-seven hours, the department shall collect from the employer the applicable employer retirement contributions for the entire duration of the member's employment during that calendar year.

                     (d) A retiree from plan 2 or plan 3 who has satisfied the break in employment requirement of subsection (1) of this section may work up to eight hundred sixty-seven hours in a calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a firefighter or law enforcement officer, as defined in RCW 41.26.030, without suspension of his or her benefit.

                     (3) If the retiree opts to reestablish membership under RCW 41.40.023(12), he or she terminates his or her retirement status and becomes a member.  Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit.  Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180.  However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

                     (4) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.

                     (5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five months in a calendar year without a reduction of his or her pension.

Sec. 20.  RCW 41.50.030 and 2004 c 242 s 42 are each amended to read as follows:

                     (1) As soon as possible but not more than one hundred and eighty days after March 19, 1976, there is transferred to the department of retirement systems, except as otherwise provided in this chapter, all powers, duties, and functions of:

                     (a) The Washington public employees' retirement system;

                     (b) The Washington state teachers' retirement system;

                     (c) The Washington law enforcement officers' and firefighters' retirement system;

                     (d) The Washington state patrol retirement system;

                     (e) The Washington judicial retirement system; and

                     (f) The state treasurer with respect to the administration of the judges' retirement fund imposed pursuant to chapter 2.12 RCW.

                     (2) On July 1, 1996, there is transferred to the department all powers, duties, and functions of the deferred compensation committee.

                     (3) The department shall administer chapter 41.34 RCW.

                     (4) The department shall administer the Washington school employees' retirement system created under chapter 41.35 RCW.

                     (5) The department shall administer the Washington public safety employees' retirement system created under chapter 41.37 RCW.

(6) The department shall administer the collection of employer contributions and initial prefunding of the higher education retirement plan supplemental benefits, also referred to as the annuity or retirement income plans created under chapter 28B.10 RCW.

Sec. 21.  RCW 41.50.080 and 2004 c 242 s 45 are each amended to read as follows:

                     The state investment board shall provide for the investment of all funds of the Washington public employees' retirement system, the teachers' retirement system, the school employees' retirement system, the Washington law enforcement officers' and firefighters' retirement system, the Washington state patrol retirement system, the Washington judicial retirement system, the Washington public safety employees' retirement system, the higher education retirement plan supplemental benefit fund, and the judges' retirement fund, pursuant to RCW 43.84.150, and may sell or exchange investments acquired in the exercise of that authority.

Sec. 22.  RCW 41.50.110 and 2009 c 564 s 924 are each amended to read as follows:

                     (1) Except as provided by RCW 41.50.255 and subsection (6) of this section, all expenses of the administration of the department, the expenses of administration of the retirement systems, and the expenses of the administration of the office of the state actuary created in chapters 2.10, 2.12, 28B.10, 41.26, 41.32, 41.40, 41.34, 41.35, 41.37, 43.43, and 44.44 RCW shall be paid from the department of retirement systems expense fund.

                     (2) In order to reimburse the department of retirement systems expense fund on an equitable basis the department shall ascertain and report to each employer, as defined in RCW 28B.10.400, 41.26.030, 41.32.010, 41.35.010, 41.37.010, or 41.40.010, the sum necessary to defray its proportional share of the entire expense of the administration of the retirement system that the employer participates in during the ensuing biennium or fiscal year whichever may be required.  Such sum is to be computed in an amount directly proportional to the estimated entire expense of the administration as the ratio of monthly salaries of the employer's members bears to the total salaries of all members in the entire system.  It shall then be the duty of all such employers to include in their budgets or otherwise provide the amounts so required.

                     (3) The department shall compute and bill each employer, as defined in RCW 28B.10.400, 41.26.030, 41.32.010, 41.35.010, 41.37.010, or 41.40.010, at the end of each month for the amount due for that month to the department of retirement systems expense fund and the same shall be paid as are its other obligations.  Such computation as to each employer shall be made on a percentage rate of salary established by the department.  However, the department may at its discretion establish a system of billing based upon calendar year quarters in which event the said billing shall be at the end of each such quarter.

                     (4) The director may adjust the expense fund contribution rate for each system at any time when necessary to reflect unanticipated costs or savings in administering the department.

                     (5) An employer who fails to submit timely and accurate reports to the department may be assessed an additional fee related to the increased costs incurred by the department in processing the deficient reports.  Fees paid under this subsection shall be deposited in the retirement system expense fund.

                     (a) Every six months the department shall determine the amount of an employer's fee by reviewing the timeliness and accuracy of the reports submitted by the employer in the preceding six months.  If those reports were not both timely and accurate the department may prospectively assess an additional fee under this subsection.

                     (b) An additional fee assessed by the department under this subsection shall not exceed fifty percent of the standard fee.

                     (c) The department shall adopt rules implementing this section.

                     (6) Expenses other than those under RCW 41.34.060(3) shall be paid pursuant to subsection (1) of this section.

                     (7) During the 2007-2009 and 2009-2011 fiscal biennia, the legislature may transfer from the department of retirement systems' expense fund to the state general fund such amounts as reflect the excess fund balance of the fund.

NEW SECTION.  Sec. 23.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011."

On page 1, line 2 of the title, after "plans;" strike the remainder of the title and insert "amending RCW 28B.10.400, 28B.10.405, 28B.10.410, 28B.10.415, 28B.10.417, 28B.10.423, 28B.10.430, 41.32.570, 41.32.800, 41.32.802, 41.32.860, 41.32.862, 41.35.060, 41.35.230, 41.37.050, 41.40.037, 41.50.030, 41.50.080, and 41.50.110; adding a new section to chapter 41.32 RCW; adding a new section to chapter 41.40 RCW; creating a new section; providing an effective date; and declaring an emergency."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, th