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AN ACT Relating to state employee child care; amending RCW 41.04.370, 41.04.375, 41.04.380, 41.04.385, 43.88.160, and 74.13.090; adding new sections to chapter 41.04 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. A new section is added to chapter 41.04 RCW to read as follows:

In order to implement the state's child care policy established by RCW 41.04.385, the director of personnel shall:

(1) Provide technical assistance to state agencies for addressing employee child care needs;

(2) Conduct periodic needs assessments to determine the demand for various child care services by state employees and to determine the availability and costs of child care services accessible to employees within a surveyed community;

(3) Assist state employees with establishing nonprofit employee organizations to contract for the provision of child care services;

(4) Develop, in consultation with the department of general administration, model contracts for agencies to use when contracting with nonprofit employee organizations to use state-owned or state-leased buildings for child care services;

(5) Develop, in consultation with the departments of general administration, social and health services, and the office of financial management, model contracts and quality standards for nonprofit employee organizations to use when contracting with child care providers;

(6) Inform state employees of the child care and family services available to them through state programs, policies, or merit system rules;

(7) Assist state agencies and employees with developing alternatives to state employee child care centers for meeting child care needs;

(8) Administer state employee child care facility grants;

(9) Conduct research and develop pilot programs to measure changes in employee productivity, recruitment, retention, and absenteeism, associated with state-supported child care services;

(10) Establish policies, subject to the approval of the director of financial management, for the development of partnerships with private employers for the provision of child care services; and

(11) Establish a state employee child care advisory committee to provide coordination among state agencies that assist employees with child care services, to advise the director regarding the development of child care programs, services, and policies, and to enhance communication among state agencies regarding the state's child care services, programs, and policies.

The policies established under this section shall apply to all state agencies subject to chapter 41.06 RCW that provide, or assist with the provision of, child care services for state employees. The cost of department of personnel services provided to agencies exempted by RCW 41.06.070 from the provisions of chapter 41.06 RCW shall be reimbursed in accordance with RCW 41.06.080.

NEW SECTION. Sec. 2. A new section is added to chapter 41.04 RCW to read as follows:

The director of personnel shall attempt to develop a program of flexible child care and family policies and services so that state employees may choose among those that best meet their needs.

NEW SECTION. Sec. 3. By June 30, 1993, the director of personnel shall provide a plan for the development of a child care program that includes objective, quantifiable, and measurable standards and goals to be achieved. Such goals shall be established in consultation with the state employee child care advisory committee.

The director shall report to the governor by September 1996 describing the results achieved through the child care program compared to original performance standards and goals.

Sec. 4. RCW 41.04.370 and 1984 c 162 s 1 are each amended to read as follows:

The legislature recognizes that ((~~on-site~~)) supporting child ((~~day~~)) care for employees of public and private organizations is a worthwhile pursuit. To further the goals of affordable, accessible, and quality child care for working parents, the legislature intends to ((~~establish a~~)) provide for the development of self-supporting child care ((~~demonstration project~~)) programs for employees of state government. ((~~The legislature recognizes that appropriate child day care services may enhance productivity and lower absenteeism among state employees.~~))

Sec. 5. RCW 41.04.375 and 1984 c 162 s 2 are each amended to read as follows:

Subsequent to the completion of needs assessments indicating a demand for additional accessible center-based child care, and at the request of the director of personnel, the department of general administration shall identify ((~~an amount of~~)) the availability of suitable space ((~~in state-owned or state-leased buildings in the Olympia area~~)) for use as child ((~~day~~)) care centers for the children of state employees.

If suitable space is identified in state-owned or state-leased buildings, the department of general administration shall establish a ((~~fair~~)) rental rate for ((~~the~~)) organizations to pay for the space used by persons who are not state employees.

Sec. 6. RCW 41.04.380 and 1984 c 162 s 3 are each amended to read as follows:

((~~(1)~~)) After the department of personnel ((~~shall conduct~~)) has conducted a needs assessment under section 1 of this act to determine the need for and interest in child ((~~day~~)) care facilities for the children of state employees;

((~~(2) The department of personnel shall determine the number of children which may participate in the demonstration project required under RCW 41.04.370 through 41.04.380; and~~

~~(3) If the~~)) and the assessment has indicated a need for additional child care services accessible to state employees; and suitable space ((is)) has been determined to be available, the department of personnel ((~~shall~~)) may assist state employees with establishing nonprofit organizations in order to contract with one or more ((~~organizations~~)) providers to operate child ((~~day~~)) care facilities ((~~for the children identified under this section. Such facilities may be located in one or more buildings as identified under RCW 41.04.375~~)).

Subject to the approval of the director of financial management, suitable space for child care centers may be provided to nonprofit organizations of state employees without charge or at reduced charge for rent or services solely for the purpose of reducing employee child care costs.

NEW SECTION. Sec. 7. A new section is added to chapter 41.04 RCW to read as follows:

In order to qualify for services under RCW 41.04.380, state employee child care organizations shall be organized under chapter 24.03 RCW. Such organizations shall be subject to the policies established under section 1 of this act when contracting for space in state-owned or state-leased buildings.

Sec. 8. RCW 41.04.385 and 1986 c 135 s 1 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 ((~~day~~)) care in the state of Washington; (2) working parents and their children benefit when the employees' child care needs have been resolved; ((~~and~~)) (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 ((~~day~~)) care needs; and (4) the state of Washington should encourage the development of partnerships between state agencies, state employees, and private employers to expand the availability of affordable quality child care. The legislature finds further that resolving employee child ((~~day~~)) 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 ((~~day~~)) care needs.

Sec. 9. RCW 43.88.160 and 1991 c 358 s 4 are each amended to read as follows:

This section sets forth the major fiscal duties and responsibilities of officers and agencies of the executive branch. The regulations issued by the governor pursuant to this chapter shall provide for a comprehensive, orderly basis for fiscal management and control, including efficient accounting and reporting therefor, for the executive branch of the state government and may include, in addition, such requirements as will generally promote more efficient public management in the state.

(1) Governor; director of financial management. The governor, through the director of financial management, shall devise and supervise a modern and complete accounting system for each agency to the end that all revenues, expenditures, receipts, disbursements, resources, and obligations of the state shall be properly and systematically accounted for. The accounting system shall include the development of accurate, timely records and reports of all financial affairs of the state. The system shall also provide for central accounts in the office of financial management at the level of detail deemed necessary by the director to perform central financial management. The director of financial management shall adopt and periodically update an accounting procedures manual. Any agency maintaining its own accounting and reporting system shall comply with the updated accounting procedures manual and the rules of the director adopted under this chapter. An agency may receive a waiver from complying with this requirement if the waiver is approved by the director. Waivers expire at the end of the fiscal biennium for which they are granted. The director shall forward notice of waivers granted to the appropriate legislative fiscal committees. The director of financial management may require such financial, statistical, and other reports as the director deems necessary from all agencies covering any period.

(2) The director of financial management is responsible for quarterly reporting of primary operating budget drivers such as applicable workloads, caseload estimates, and appropriate unit cost data. These reports shall be transmitted to the legislative fiscal committees or by electronic means to the legislative evaluation and accountability program committee. Quarterly reports shall include actual monthly data and the variance between actual and estimated data to date. The reports shall also include estimates of these items for the remainder of the budget period.

(3) The director of financial management shall report at least annually to the appropriate legislative committees regarding the status of all appropriated capital projects, including transportation projects, showing significant cost overruns or underruns. If funds are shifted from one project to another, the office of financial management shall also reflect this in the annual variance report. Once a project is complete, the report shall provide a final summary showing estimated start and completion dates of each project phase compared to actual dates, estimated costs of each project phase compared to actual costs, and whether or not there are any outstanding liabilities or unsettled claims at the time of completion.

(4) In addition, the director of financial management, as agent of the governor, shall:

(a) Make surveys and analyses of agencies with the object of determining better methods and increased effectiveness in the use of manpower and materials; and the director shall authorize expenditures for employee training to the end that the state may benefit from training facilities made available to state employees;

(b) Establish policies for state agencies that contract for specialized child care services including resources and referral, sick child care, and after-hour care;

((~~(c)~~)) (d) Review any pay and classification plans, and changes thereunder, developed by any agency for their fiscal impact: PROVIDED, That none of the provisions of this subsection shall affect merit systems of personnel management now existing or hereafter established by statute relating to the fixing of qualifications requirements for recruitment, appointment, or promotion of employees of any agency. The director shall advise and confer with agencies including appropriate standing committees of the legislature as may be designated by the speaker of the house and the president of the senate regarding the fiscal impact of such plans and may amend or alter said plans, except that for the following agencies no amendment or alteration of said plans may be made without the approval of the agency concerned: Agencies headed by elective officials;

((~~(d)~~)) (e) Fix the number and classes of positions or authorized man years of employment for each agency and during the fiscal period amend the determinations previously fixed by the director except that the director shall not be empowered to fix said number or said classes for the following: Agencies headed by elective officials;

((~~(e)~~)) (f) Provide for transfers and repayments between the budget stabilization account and the general fund as directed by appropriation and RCW 43.88.525 through 43.88.540;

((~~(f) Promulgate regulations~~)) (g) Adopt rules to effectuate provisions contained in ((~~subsections~~)) (a) through ((~~(e) hereof~~)) (f) of this subsection.

(5) The treasurer shall:

(a) Receive, keep, and disburse all public funds of the state not expressly required by law to be received, kept, and disbursed by some other persons: PROVIDED, That this subsection shall not apply to those public funds of the institutions of higher learning which are not subject to appropriation;

(b) Disburse public funds under the treasurer's supervision or custody by warrant or check;

(c) Keep a correct and current account of all moneys received and disbursed by the treasurer, classified by fund or account;

(d) Perform such other duties as may be required by law or by regulations issued pursuant to this law.

It shall be unlawful for the treasurer to issue any warrant or check for public funds in the treasury except upon forms duly prescribed by the director of financial management. Said forms shall provide for authentication and certification by the agency head or the agency head's designee that the services have been rendered or the materials have been furnished; or, in the case of loans or grants, that the loans or grants are authorized by law; or, in the case of payments for periodic maintenance services to be performed on state owned equipment, that a written contract for such periodic maintenance services is currently in effect and copies thereof are on file with the office of financial management; and the treasurer shall not be liable under the treasurer's surety bond for erroneous or improper payments so made: PROVIDED, That when services are lawfully paid for in advance of full performance by any private individual or business entity other than as provided for by RCW 42.24.035, such individual or entity other than central stores rendering such services shall make a cash deposit or furnish surety bond coverage to the state as shall be fixed in an amount by law, or if not fixed by law, then in such amounts as shall be fixed by the director of the department of general administration but in no case shall such required cash deposit or surety bond be less than an amount which will fully indemnify the state against any and all losses on account of breach of promise to fully perform such services: AND PROVIDED FURTHER, That no payments shall be made in advance for any equipment maintenance services to be performed more than three months after such payment. Any such bond so furnished shall be conditioned that the person, firm or corporation receiving the advance payment will apply it toward performance of the contract. The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency head's designee in accordance with regulations issued pursuant to this chapter. Nothing in this section shall be construed to permit a public body to advance funds to a private service provider pursuant to a grant or loan before services have been rendered or material furnished.

(6) The state auditor shall:

(a) Report to the legislature the results of current post audits that have been made of the financial transactions of each agency; to this end the auditor may, in the auditor's discretion, examine the books and accounts of any agency, official or employee charged with the receipt, custody or safekeeping of public funds. The current post audit of each agency may include a section on recommendations to the legislature as provided in (c) of this subsection.

(b) Give information to the legislature, whenever required, upon any subject relating to the financial affairs of the state.

(c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include at least the following:

Determinations as to whether agencies, in making expenditures, complied with the laws of this state: PROVIDED, That nothing in this section may be construed to grant the state auditor the right to perform performance audits. A performance audit for the purpose of this section is the examination of the effectiveness of the administration, its efficiency, and its adequacy in terms of the programs of departments or agencies as previously approved by the legislature. The authority and responsibility to conduct such an examination shall be vested in the legislative budget committee as prescribed in RCW 44.28.085.

(d) Be empowered to take exception to specific expenditures that have been incurred by any agency or to take exception to other practices related in any way to the agency's financial transactions and to cause such exceptions to be made a matter of public record, including disclosure to the agency concerned and to the director of financial management. It shall be the duty of the director of financial management to cause corrective action to be taken promptly, such action to include, as appropriate, the withholding of funds as provided in RCW 43.88.110.

(e) Promptly report any irregularities to the attorney general.

(7) The legislative budget committee may:

(a) Make post audits of the financial transactions of any agency and management surveys and program reviews as provided for in RCW 44.28.085. To this end the committee may in its discretion examine the books, accounts, and other records of any agency, official, or employee.

(b) Give information to the legislature or any legislative committee whenever required upon any subject relating to the performance and management of state agencies.

(i) Determinations as to the extent to which agencies in making expenditures have complied with the will of the legislature and in this connection, may take exception to specific expenditures or financial practices of any agencies; and

(ii) Such plans as it deems expedient for the support of the state's credit, for lessening expenditures, for promoting frugality and economy in agency affairs and generally for an improved level of fiscal management.

Sec. 10. RCW 74.13.090 and 1989 c 381 s 3 are each amended to read as follows:

(1) There is established a child care coordinating committee to provide coordination and communication between state agencies responsible for child care and early childhood education services. The child care coordinating committee shall be composed of not less than seventeen nor more than thirty-three members who shall include:

(a) One representative each from the department of social and health services, the department of community development, the office of the superintendent of public instruction, and any other agency having responsibility for regulation, provision, or funding of child care services in the state;

(b) One representative from the department of labor and industries;

(d) One representative from the department of revenue;

(e) One representative from the employment security department;

(f) One representative from the department of personnel;

(g) One representative from the department of health;

(h) At least one representative of family home child care providers and one representative of center care providers;

((~~(g)~~)) (i) At least one representative of early childhood development experts;

((~~(h)~~)) (j) At least one representative of school districts and teachers involved in the provision of child care and preschool programs;

((~~(i)~~)) (k) At least one parent education specialist;

((~~(j)~~)) (l) At least one representative of resource and referral programs;

((~~(k)~~)) (m) One pediatric or other health professional;

((~~(l)~~)) (n) At least one representative of college or university child care providers;

((~~(m)~~)) (o) At least one representative of a citizen group concerned with child care;

((~~(n)~~)) (p) At least one representative of a labor organization;

((~~(o)~~)) (q) At least one representative of a head start - early childhood education assistance program agency;

((~~(p)~~)) (r) At least one employer who provides child care assistance to employees;

((~~(q)~~)) (s) Parents of children receiving, or in need of, child care, half of whom shall be parents needing or receiving subsidized child care and half of whom shall be parents who are able to pay for child care.

The named state agencies shall select their representative to the child care coordinating committee. The department of social and health services shall select the remaining members, considering recommendations from lists submitted by professional associations and other interest groups until such time as the committee adopts a member selection process. The department shall use any federal funds which may become available to accomplish the purposes of RCW 74.13.085 through 74.13.095.

The committee shall elect officers from among its membership and shall adopt policies and procedures specifying the lengths of terms, methods for filling vacancies, and other matters necessary to the ongoing functioning of the committee. The secretary of social and health services shall appoint a temporary chair until the committee has adopted policies and elected a chair accordingly. Child care coordinating committee members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(2) To the extent possible within available funds, the child care coordinating committee shall:

(a) Serve as an advisory coordinator for all state agencies responsible for early childhood or child care programs for the purpose of improving communication and interagency coordination;

(b) Annually review state programs and make recommendations to the agencies and the legislature which will maximize funding and promote furtherance of the policies set forth in RCW 74.13.085. Reports shall be provided to all appropriate committees of the legislature by December 1 of each year. At a minimum the committee shall:

(i) Review and propose changes to the child care subsidy system in its December 1989 report; and

(ii) Review alternative models for child care service systems, in the context of the policies set forth in RCW 74.13.085, and recommend to the legislature a new child care service structure; ((~~and~~

~~(iii) Review options and make recommendations on the feasibility of establishing an allocation for day care facilities when constructing state buildings;~~))

(c) Review department of social and health services administration of the child care expansion grant program described in RCW 74.13.095;

(d) Review rules regarding child care facilities and services for the purpose of identifying those which unnecessarily obstruct the availability and affordability of child care in the state;

(e) Advise and assist the child care resource coordinator in implementing his or her duties under RCW 74.13.0903; ((~~and~~))

(f) Assist the department of personnel in developing strategies for child care partnerships between state agencies and private employers; and

(g) Perform other functions to improve the quantity and quality of child care in the state, including compliance with existing and future prerequisites for federal funding.