2226-S

AN ACT Relating to state government reorganization; amending RCW 72.09.040 and 43.17.020; reenacting and amending RCW 43.17.010; adding a new section to chapter 41.06 RCW; adding a new section to chapter 72.09 RCW; adding a new section to chapter 43.43 RCW; adding new chapters to Title 43 RCW; creating new sections; providing an effective date; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that the department of social and health services is required to perform an overwhelming number of responsibilities. Due to this, the department of social and health services has grown to an unmanageable and unwieldy bureaucracy that cannot function effectively and must be reorganized. The legislature finds a study is warranted of the long-term effects and advantages of locally designed and administered social service programs presently administered by the state. The legislature recognizes that pending changes in federal law may impact organization and necessitate the amendment of any reorganization plan. In the meantime, it is the intent of the legislature to have a task force created by this act specifically review the potential for dividing the department of social and health services into the three new departments of medical assistance, transitional services, and long-term care and health, and report back to the legislature by November 1, 1997. It is also the intent of the legislature to consider the elimination of the executive division of the department of social and health services, including but not limited to the office of the secretary. The legislature recognizes that many recipients of services from the department of social and health services receive those services from more than one division of the agency. The legislature intends that proper linkage between the new and existing departments of government will be established so clients will continue to be served through effective means.

NEW SECTION. Sec. 2. (1) A bipartisan task force is created to develop specific policy recommendations concerning restructuring the department of social and health services by transferring its functions to new or existing agencies. The task force shall have fifteen members, eight of whom are legislative members. Two members shall be from each caucus in the house of representatives, appointed by the speaker of the house of representatives and two members shall be from each caucus in the senate, appointed by the president of the senate. The governor shall appoint seven remaining members, one of whom shall be designated chair with approval of the speaker of the house of representatives and the president of the senate. The gubernatorial appointees shall include individuals served by the department of social and health services as clients and individuals within the department of social and health services performing caseworker or first-level supervisory functions as well as contractors and vendors.

(2) Task force members shall serve without pay. Nonlegislative members shall be paid travel expenses incurred in their travel to and from meetings of the task force and while attending meetings of the task force in accordance with RCW 43.03.050 and 43.03.060. Legislative members shall be paid travel expenses incurred in their travel to and from meetings of the task force and while attending meetings of the task force in accordance with RCW 44.04.120.

(3) The task force shall examine the existing functions and responsibilities of the department of social and health services and recommend their transfer into the new departments established under this act, or propose alternative methods of restructuring the department of social and health services into separate or existing state agencies. Further, the task force shall:

(a) Examine all health care functions within the department of social and health services together with related health care functions elsewhere in state government including the department of health and the state health care authority; consider integration of those functions into a single or separate agencies or other alternatives;

(b) Examine the juvenile rehabilitation administration functions; consider whether to transfer them to the new department of children and family services, or to a new independent department of juvenile rehabilitation, or divide the functions between the department of corrections and the new department of children and family services;

(c) Examine child protective service functions; recommend structures that would continue them with the new department of children and family services, or require a separate independent agency, or other alternatives;

(d) Review the department of social and health services economic services administration; recommend transferring those functions to a new agency, or combine it with the employment security department or other alternatives;

(e) Examine the restructuring of the department of social and health services in this act and recommendations of the task force as to their impact upon more effective local service delivery systems; recommend how to continue the interrelationship between state and local nonprofit organizations in a cost-effective manner; and

(f) Examine the licensing and placement functions within the children's administration; recommend alternative structures to eliminate conflicting pressure of ensuring a child's health and safety, and the placement requirements for abused and neglected children.

(4) By November 1, 1997, the task force shall submit to the legislature recommendations for proposed legislation implementing the task force recommendations of the committee for the restructuring of the department of social and health services.

(5) The task force shall terminate June 30, 1998, unless further extended by legislative act.

PART 1

DEPARTMENT OF CHILDREN AND FAMILY SERVICES

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of children and family services.

(2) "Director" means the director of children and family services.

NEW SECTION. Sec. 2. There is hereby created a department of state government to be known as the department of children and family services. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 3. (1)(a) All powers, duties, and functions of the department of social and health services pertaining to children and family services are transferred to the department of children and family services. This includes all functions performed by the children's administration, including children's protective services, as it exists on July 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of children and family services when referring to the functions transferred in this section.

(b) All powers, duties, and functions of the department of community, trade, and economic development pertaining to early childhood education assistance programs, head start programs, and youth violence contracts are transferred to the department of children and family services. All references to the director or the department of community, trade, and economic development in the Revised Code of Washington shall be construed to mean the director or the department of children and family services 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 social and health services or the department of community, trade, and economic development pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of children and family services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services or the department of community, trade, and economic development in carrying out the powers, functions, and duties transferred shall be made available to the department of children and family services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of children and family services.

(b) Any appropriations made to the department of social and health services or the department of community, trade, and economic development 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 children and family services.

(c) Whenever any question arises as to the transfer of any 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 social and health services or the department of community, trade, and economic development pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of children and family services. All existing contracts and obligations shall remain in full force and shall be performed by the department of children and family services.

(4) The transfer of the powers, duties, and functions of the department of social and health services and the department of community, trade, and economic development 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) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 4. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 5. (1) The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. In creating administrative structures, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions.

(2) The director may appoint assistant directors as may be needed to administer the department. The director may employ such personnel as may be necessary for the administration of the department. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW, except as otherwise provided.

(3) Any power or duty vested in or transferred to the director by law or executive order may be delegated by the director to any officer or employee; but the director shall be responsible for the official acts of the officers and employees of the department.

NEW SECTION. Sec. 6. The director may appoint such advisory committees or councils as required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state-wide committees or councils on such subject matters as are or come within the department's responsibilities. The state-wide committees and councils shall have representation from both major political parties and shall have substantial consumer representation. The committees or councils shall be constituted as required by federal law or as the director may determine. The members of the committees or councils shall hold office as follows: One-third to serve one year; one-third to serve two years; and one-third to serve three years. Upon expiration of the original terms, subsequent appointments shall be for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member may serve more than two consecutive terms.

Members of state advisory committees or councils created under this section may be paid their travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 7. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 8. 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 shall not apply in the department of children and family services to the director, the director's personal secretary, all assistant directors, and one confidential secretary for each assistant director.

PART 2

TRANSFER OF JUVENILE REHABILITATION TO THE DEPARTMENT

OF CORRECTIONS AND THE DEPARTMENT OF

CHILDREN AND FAMILY SERVICES

NEW SECTION. Sec. 201. A new section is added to chapter 72.09 RCW to read as follows:

(1) All powers, duties, and functions of the department of social and health services pertaining to juvenile rehabilitation and the juvenile justice system are transferred to the department of corrections and to the department of children and family services in accordance with the provisions of this section. The first implementation plan required by section 304 of this act shall include allocation details of all administrative functions of the juvenile rehabilitation administration to the department of children and family services and the department of corrections. The legislature intends that: (a) The plan take into account recommendations from interested individuals, as well as state and local agencies; and (b) the plan incorporate the functions of treatment and sentencing provisions of law as of July 1, 1997, over juvenile offenders including, but not limited to juvenile rehabilitation and the juvenile justice system. This includes all functions performed by the juvenile rehabilitation administration as it exists on June 30, 1997. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the secretary or the department of corrections or the director or the department of children and family services 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 social and health services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of corrections or the department of children and family services, as determined by the office of financial management. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services in carrying out the powers, functions, and duties transferred shall be made available to either the department of corrections or the department of children and family services, as determined by the office of financial management. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of corrections or the department of children and family services, as determined by the office of financial management.

(b) Any appropriations made to the department of social and health services for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited between the department of corrections and the department of children and family services, as determined by the office of financial management.

(3) All rules and all pending business before the department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by either the department of corrections or the department of children and family services, as determined by the office of financial management. All existing contracts and obligations shall remain in full force and shall be performed by the department of corrections or the department of children and family services, as determined by the office of financial management.

(4) The transfer of the powers, duties, and functions of the department of social and health services shall not affect the validity of any act performed before the effective date of this section.

Sec. 202. RCW 72.09.040 and 1981 c 136 s 4 are each amended to read as follows:

All powers, duties, and functions assigned to the secretary of social and health services and to the department of social and health services relating to adult correctional programs and institutions are hereby transferred to the secretary of corrections and to the department of corrections. ((Except as may be specifically provided, all functions of the department of social and health services relating to juvenile rehabilitation and the juvenile justice system shall remain in the department of social and health services. Where functions of the department of social and health services and the department of corrections overlap in the juvenile rehabilitation and/or juvenile justice area, the governor may allocate such functions between these departments.

The secretaries of the department of social and health services and the department of corrections shall submit to the 1983 session of the Washington state legislature a joint report which addresses the question of in which agency juvenile rehabilitation and state level juvenile justice programs should be located.))

PART 3

GENERAL DEPARTMENTAL PROVISIONS

Sec. 301. RCW 43.17.010 and 1993 sp.s. c 2 s 16, 1993 c 472 s 17, and 1993 c 280 s 18 are each reenacted and 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, (9) the department of community, trade, and economic development, (10) the department of veterans affairs, (11) the department of revenue, (12) the department of retirement systems, (13) the department of corrections, ((~~and~~)) (14) the department of health, ((~~and~~)) (15) the department of financial institutions, and (16) the department of children and family services 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. 302. RCW 43.17.020 and 1995 1st sp.s. c 2 s 2 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, (9) the director of community, trade, and economic development, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, ((~~and~~)) (14) the secretary of health, ((~~and~~)) (15) the director of financial institutions, and (16) the director of children and family services.

Such officers, except the secretary of transportation and 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 secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041. The director of fish and wildlife shall be appointed by the fish and wildlife commission as prescribed by RCW 77.04.055.

NEW SECTION. Sec. 303. A new section is added to chapter 43.43 RCW to read as follows:

(1) All powers, duties, and functions of the department of social and health services pertaining to the office of special investigations are transferred in accordance with the following provisions. Program fraud investigations and internal investigations are transferred to the Washington state patrol. However, local law enforcement agencies shall have the option of contracting for these program fraud responsibilities. Such agreements may be based on the interlocal cooperation act, chapter 39.34 RCW, or other statutory authority of single or joint law enforcement agencies. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the chief of the Washington state patrol when referring to the functions transferred in this subsection (1)(e).

(3) All rules and all pending business before the department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the Washington state patrol. All existing contracts and obligations shall remain in full force and shall be performed by the Washington state patrol.

(4) The transfer of the powers, duties, and functions of the department of social and health services identified in subsection (1) of this section shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 304. (1) The director of the office of financial management, the secretary of the department of social and health services, the secretary of the department of corrections, the chief of the Washington state patrol, and the director of the department of community, trade, and economic development shall jointly develop a reorganization implementation plan that restructures the department of social and health services in accordance with this act. The plan shall detail the implementation steps necessary to effectuate the transfer of program fraud to the Washington state patrol with a local option and functions of the juvenile rehabilitation administration to the department of corrections and the new children and family services agency, together with commencement of the operation of this new agency July 1, 1997. The plan shall also address strategies for ensuring collaboration among programs and among the departments.

(2) The reorganization implementation plan shall include recommendations for restructuring other functions performed by the department of social and health services, including the functions of:

(a) The family policy council;

(b) Community and legislative relations; and

(c) The divisions of administrative services, information services, finance, budget, employee services, and land and buildings.

(3) In developing the recommendations required under subsection (2)(c) of this section, the directors, secretaries, and commissioner shall consult with the directors of the departments of general administration and personnel to ensure that no duplication of functions will occur between the departments of general administration, personnel, corrections, and labor and industries, and the employment security department.

(4) The completed reorganization implementation plan shall be submitted to the governor and the appropriate standing committees of the legislature by November 15, 1996.

(5) The plan shall include details addressing the following areas of legislative, public, and departmental concerns:

(a) Assessment and increased accountability measures over all transferred functions;

(b) Quantifiable outcomes for all transferred functions;

(c) Equitable cost-effective coordinated service delivery and continuity of care enhancements, including coordination with all relevant service delivery components at the state, local, and private level for the family and individuals in need;

(d) Staffing support and caseload management enhancements;

(e) Retention of the collocation of facilities wherever economically possible until at least the year 2005, including procedures for client referrals to new departments;

(f) Federal requirements, including but not limited to federal reforms and the ability to continue participating to the maximum extent possible in the receipt of federal funds and grants;

(g) Promotion of public and private partnerships; and

(h) Retention of centralized core administrative services such as payment, financial, and information systems, until at least the year 2005.

(6) By December 15, 1996, the director of financial management, the secretary of the department of social and health services, the secretary of the department of corrections, the director of the department of community, trade, and economic development, and the chief of the Washington state patrol shall jointly submit to the governor and the appropriate standing committees of the legislature any proposed legislation necessary to implement the reorganization implementation plan.

(7) This section expires June 30, 1997.

PART 4

OFFICE OF CITIZENS' COMPLAINTS

NEW SECTION. Sec. 401. The legislature finds citizens who have complaints about children and family services of the state and related operations, licensed by the state, often need an independent review over allegations of abuse, neglect, and fraud concerning such activity and the individuals involved. The office of citizens' complaints established in this chapter meets this need.

NEW SECTION. Sec. 402. The legislature intends to establish an office that will hear complaints about the operation of the department of children and family services. It is to be established as an independent office of state government.

NEW SECTION. Sec. 403. (1) The office should:

(a) Conduct, supervise, and provide policy direction for fraud or abuse investigations;

(b) Recommend policies and improved systems to prevent fraud or abuse;

(c) Recommend policies for improving relationships between federal, state, and local governmental agencies, and nongovernmental entities, with respect to prevention; and detection of fraud or abuse over children and family programs.

(2) The office should:

(a) Refer to the appropriate prosecuting authority for possible criminal prosecution all investigations where it is concluded there is probable cause to believe a violation of federal or state criminal law has occurred;

(b) Review the facilities and procedures of all state institutions serving children and youth; state-licensed group-care facilities as defined in RCW 74.15.020; and overnight youth shelters. The office may also review other state-licensed facilities or residences;

(c) Review reports relating to the unexpected deaths of minors receiving children, youth, and family services and develop recommendations as appropriate;

(d) Recommend changes in the procedures for addressing children, youth, and family programs.

NEW SECTION. Sec. 404. The office shall treat all matters under investigation, including the identities of service recipients, complainants, and individuals from whom information is acquired, as confidential, except as far as disclosures may be necessary to enable the office to perform the duties of the office and to support any recommendations resulting from an investigation. However, the office shall honor the request of a service recipient, complainant, or individual from whom information is acquired, or the legal representative of any of these individuals, not to disclose his or her identity. Upon receipt of information that by law is confidential or privileged, the office shall maintain the confidentiality of such information and shall not further disclose or disseminate the information except as provided by applicable state or federal law. An investigative record of the office is confidential, and shall only be used for purposes set forth in this chapter. An investigative record of the office is to be exempt from disclosure under chapter 42.17 RCW.

PART 5

MISCELLANEOUS

NEW SECTION. Sec. 501. Part headings used in this act do not constitute any part of the law.

NEW SECTION. Sec. 502. Sections 101 through 107 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 503. Sections 401 through 404 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 504. Sections 1, 2, and 304 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 shall take effect immediately.

NEW SECTION. Sec. 505. Sections 101 through 108, 201, 202, and 303 of this act shall take effect July 1, 1997.