Z-0988.2  _______________________________________________

                          HOUSE BILL 2441

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representatives Wensman, Ogden, Rockefeller, McMorris, Alexander, Regala, Mielke, Doumit, Thomas, Kessler, Hatfield, O'Brien, Lisk, McDonald, Carlson, Conway, Mulliken, Koster, Woods, Talcott, Huff, Radcliff, Wolfe, Ruderman, Edmonds, Pflug, Parlette, Esser, Hurst and Benson; by request of Joint Legislative Audit & Review Committee

Read first time 01/13/2000.  Referred to Committee on State Government.

Increasing government accountability through the state sunset review process.

    AN ACT Relating to government accountability through the state sunset review process; amending RCW 43.131.020, 43.131.030, 43.131.040, 43.131.090, 43.131.100, 43.131.130, 43.131.150, and 43.131.900; adding new sections to chapter 43.131 RCW; repealing RCW 43.131.050, 43.131.060, 43.131.070, and 43.131.080; providing an expiration date; and declaring an emergency.

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

    Sec. 1.  RCW 43.131.020 and 1977 ex.s. c 289 s 2 are each amended to read as follows:

    The state legislature finds that state ((agencies)) entities may fail to deliver services as effectively and efficiently as is expected by the general public and as originally contemplated by the legislature.  It further finds that state government actions have produced a substantial increase in numbers of ((agencies)) entities, growth of programs, and proliferation of rules ((and regulations)), and that the entire process has evolved without sufficient legislative and executive oversight, regulatory accountability, or a system of checks and balances.  The legislature further finds that by establishing a system for the termination, continuation, or modification of state ((agencies)) entities, coupled with a system of scheduled review of such ((agencies)) entities, it will be in a better position to:  Evaluate the need for the continued existence of existing and future state ((agencies)) entities; assess the effectiveness and performance of agencies, boards, commissions, and programs; and ensure public accountability.  The legislature recognizes that the executive branch shares in this duty and responsibility to assure that state government operates in an efficient, orderly, and responsive manner.

    Sec. 2.  RCW 43.131.030 and 1983 1st ex.s. c 27 s 1 are each amended to read as follows:

    As used in this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise.

    (1) (("Committees of reference" means the standing legislative committees designated by the senate and house of representatives to consider termination, modification, or reestablishment of state agencies pursuant to this chapter.)) "Entity" includes every state office, department, board, commission, unit or subunit, and agency of the state, and where provided by law, programs and activities involving less than the full responsibility of a state agency.  "Entity" also includes any part of the Revised Code of Washington scheduled for repeal, expiration, or program termination.

    (2) "Person" includes every natural person, firm, partnership, corporation, association, or organization.

    (((3) "Regulatory entity" means any board, commission, agency, division, or other unit or subunit of state government which licenses or regulates one or more professions, occupations, industries, businesses, or other endeavors in the state of Washington.

    (4) "State agency" includes every state office, department, board, commission, regulatory entity and agency of the state, and where provided by law, programs and activities involving less than the full responsibility of a state agency.))

    Sec. 3.  RCW 43.131.040 and 1983 1st ex.s. c 27 s 2 are each amended to read as follows:

    Any state ((agency)) entity scheduled for termination by the processes provided in this chapter may be reestablished by the legislature for a specified period of time or indefinitely.  The legislature may again review the state ((agency)) entity in a manner consistent with the provisions of this chapter and reestablish, modify, or consolidate such state ((agency)) entity or allow it to be terminated.

NEW SECTION. Sec. 4.  A new section is added to chapter 43.131 RCW to read as follows:

    The joint legislative audit and review committee shall conduct a program and fiscal review of any entity scheduled for termination under this chapter.  This program and fiscal review shall be completed and a preliminary report prepared during the calendar year prior to the date established for termination.  These reports shall be prepared in the manner set forth in RCW 44.28.071 and 44.28.075.  Upon completion of its preliminary report, the joint legislative audit and review committee shall transmit copies of the report to the office of financial management and any affected entity.  The final report shall include the response, if any, of the affected entity and the office of financial management in the same manner as set forth in RCW 44.28.088.  The joint legislative audit and review committee shall transmit the final report to the legislature, to the state entity affected, to the governor, and to the state library.

NEW SECTION. Sec. 5.  A new section is added to chapter 43.131 RCW to read as follows:

    (1) Any entity may be scheduled for sunset termination and review under this chapter by the legislature.

    (2) An entity scheduled for sunset termination shall establish performance measures, as required under subsection (3) of this section, and must be evaluated, in part, in terms of the results.  The entity has the burden of proof for demonstrating compliance with the performance measures.  The sunset termination legislation shall name a lead entity, if more than one entity is impacted by scheduled termination.  The affected entity or lead entity has the responsibility for developing a data collection plan and submitting information to the joint legislative audit and review committee.

    (3)(a) An entity shall develop performance measures and a data collection plan and submit them to the joint legislative audit and review committee within one year of the effective date of the legislation establishing the sunset termination.

    (b) The joint legislative audit and review committee shall review the performance measures and data collection plan for sufficiency and notify the entity of approval or disapproval.  If disapproved or approved conditionally, the committee shall notify the entity, in writing, of the necessary changes.

    (4) Unless specified otherwise, sunset terminations under this chapter shall be a minimum of seven years.  The joint legislative  audit and review committee shall complete its review in the year prior to the date of termination.  An entity scheduled for termination is terminated on the date scheduled unless legislation is enacted prior to the termination date.

NEW SECTION. Sec. 6.  A new section is added to chapter 43.131 RCW to read as follows:

    (1) In conducting the review of an entity, the joint legislative audit and review committee shall determine the scope and objectives of the review and consider, but not be limited to, the following factors, if applicable:

    (a) The extent to which the entity has complied with legislative intent;

    (b) The extent to which the entity is operating in an efficient and economical manner which results in optimum performance;

    (c) The extent to which the entity is operating in the public interest by controlling costs;

    (d) The extent to which the entity duplicates the activities of other entities or of the private sector;

    (e) The extent to which the entity is meeting the performance measures developed under section 5 of this act; and

    (f) The possible impact of the termination or modification of the entity.

    (2) After completing the review under subsection (1) of this section, the committee shall make its recommendations to the legislature.

    Sec. 7.  RCW 43.131.090 and 1993 c 281 s 54 are each amended to read as follows:

    Unless the legislature specifies a shorter period of time, a terminated ((state agency)) 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 ((state agency)) entity shall not be reduced or otherwise limited during this period.  Unless otherwise provided:

    (1) All employees of terminated ((state agencies)) 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 Washington personnel resources board pursuant to RCW 41.06.150;

    (2) All documents and papers, equipment, or other tangible property in the possession of the terminated ((state agency)) entity shall be delivered to the custody of the ((agency)) entity assuming the responsibilities of the terminated ((agency)) 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;

    (3) All funds held by, or other moneys due to, the terminated ((state agency)) 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 ((state agency)) entity shall be repealed, without further action by the ((state agency)) entity, at the end of the period provided in this section, unless assumed and reaffirmed by the ((agency)) entity assuming the related legal responsibilities of the terminated ((state agency)) entity;

    (5) All contractual rights and duties of ((a state agency)) an entity shall be assigned or delegated to the ((agency)) entity assuming the responsibilities of the terminated ((state agency)) entity, or if there is none to such ((agency)) entity as the governor shall direct.

    Sec. 8.  RCW 43.131.100 and 1977 ex.s. c 289 s 10 are each amended to read as follows:

    This chapter shall not affect the right to institute or prosecute any cause of action by or against ((a state agency)) an entity terminated pursuant to this chapter if the cause of action arose prior to the end of the period provided in RCW 43.131.090.  Such causes of action may be instituted, prosecuted, or defended in the name of the state of Washington by the office of the attorney general.  Any hearing or other proceeding pending before ((a state agency)) an entity to be terminated and not completed before the end of the period provided in RCW 43.131.090, may be completed by the ((agency)) entity assuming the responsibilities of the terminated ((state agency)) entity.

    Sec. 9.  RCW 43.131.130 and 1977 ex.s. c 289 s 13 are each amended to read as follows:

    Nothing in this chapter or RCW 43.06.010 ((as now or hereafter amended,)) shall prevent the legislature from abolishing or modifying ((a state agency)) an entity scheduled for termination prior to the ((agency's)) entity's established termination date or from abolishing or modifying any other ((state agency)) entity.

    Sec. 10.  RCW 43.131.150 and 1983 1st ex.s. c 27 s 8 are each amended to read as follows:

    The ((state agencies and programs)) entities scheduled for termination under this chapter shall be subject to all of the processes provided in this chapter.

NEW SECTION. Sec. 11.  The following acts or parts of acts are each repealed:

(1) RCW 43.131.050 (Joint legislative audit and review committee and office of financial management--Duties--Reports required) and 1996 c 288 s 43, 1990 c 297 s 2, 1979 c 22 s 1, & 1977 ex.s. c 289 s 5;

(2) RCW 43.131.060 (Joint legislative audit and review committee review of regulatory entity--Factors for consideration) and 1996 c 288 s 44, 1988 c 17 s 1, & 1977 ex.s. c 289 s 6;

(3) RCW 43.131.070 (Joint legislative audit and review committee review of a state agency other than a regulatory entity--Factors for consideration) and 1996 c 288 s 45 & 1977 ex.s. c 289 s 7; and

(4) RCW 43.131.080 (Committees of reference--Powers and duties) and 1996 c 288 s 46, 1989 c 175 s 109, 1983 1st ex.s. c 27 s 3, & 1977 ex.s. c 289 s 8.

    Sec. 12.  RCW 43.131.900 and 1988 c 17 s 2 are each amended to read as follows:

    RCW 43.131.010 through 43.131.150 shall expire on June 30, ((2000)) 2015, unless extended by law for an additional fixed period of time.

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.  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.

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