AN ACT Relating to
legislative oversight of state and local government programs; amending RCW
44.28.010, 44.28.020, 44.28.030, 44.28.040, 44.28.060, 44.28.140, 44.28.080,
44.28.180, 44.28.087, 44.28.100, 44.28.120, 44.28.130, 44.28.150, 43.88.020,
43.88.090, 43.88.160, 28A.630.830, 28B.20.382, 39.19.060, 39.29.016, 39.29.018,
39.29.025, 39.29.055, 41.06.070, 42.48.060, 43.09.310, 43.21J.800, 43.79.270,
43.79.280, 43.88.205, 43.88.230, 43.88.310, 43.88.510, 43.131.050, 43.131.060,
43.131.070, 43.131.080, 43.131.110, 43.250.080, 44.40.025, 67.70.310,
79.01.006, 44.--.--- (1996 c . . . (ESSB 6680) s 4), and 43.88.030; adding new
sections to chapter 44.28 RCW; creating new sections; recodifying RCW
44.28.140, 44.28.180, and 44.28.087; and repealing RCW 44.28.085 and 44.28.086.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. The public expects the
legislature to address citizens' increasing demand for the basic services of
state government, while limiting the growth in spending. The public demands
that public officials and state employees be accountable to provide maximum
value for every dollar entrusted to state government. The public believes that
it is possible to improve the responsiveness of state government and to save
the taxpayers' money, and that efficiency and effectiveness should result in
savings.
The legislature, public
officials, state employees, and citizens need to know the extent to which state
agencies, programs, and activities are achieving the purposes for which they
were created. It is essential to compare the conditions, problems, and
priorities that led to the creation of government programs with current
conditions, problems, and priorities, and to examine the need for and
performance of those programs in the current environment.
Along with examining
the performance of state agencies and programs, the legislature, public
officials, state employees, and citizens must also consider the effect that
state government programs can reasonably expect to have on citizens' lives, how
the level of programs and services of Washington state government compares with
that of other states, and alternatives for service delivery, including other
levels of government and the private sector including not-for-profit
organizations. It is essential that the legislature, public officials, state
employees, and citizens share a common understanding of the role of state government.
The performance and relative priority of state agency programs and activities
must be the basis for managing and allocating resources within Washington state
government.
It is the intent of the
legislature to strengthen the role of the current legislative budget committee
so that it may more effectively examine how efficiently state agencies perform
their responsibilities and whether the agencies are achieving their goals, and
whether units of local government are using state funds for their intended
purpose in an efficient and effective manner. It is also the intent of the
legislature to enact a clear set of definitions for different types of audits
in order to eliminate confusion with regard to government reviews.
NEW SECTION. Sec.
2. Unless the context
clearly requires otherwise, the definitions in this section apply throughout
this chapter.
(1) "Legislative
auditor" means the executive officer of the joint legislative audit and
review committee.
(2) "Economy and efficiency
audits" means performance audits that establish: (a) Whether a state
agency or unit of local government receiving state funds is acquiring,
protecting, and using its resources such as personnel, property, and space
economically and efficiently; (b) the causes of inefficiencies or uneconomical
practices; and (c) whether the state agency or local government has complied
with significant laws and rules in acquiring, protecting, and using its
resources.
(3) "Final
compliance report" means a written document, as approved by the joint
committee, that states the specific actions a state agency or unit of local
government receiving state funds has taken to implement recommendations
contained in the final performance audit report and the preliminary compliance
report. Any recommendations, including proposed legislation and changes in the
agency's rules and practices or the local government's practices, based on
testimony received, must be included in the final compliance report.
(4) "Final
performance audit report" means a written document adopted by the joint
legislative audit and review committee that contains the findings and proposed
recommendations made in the preliminary performance audit report, the final
recommendations adopted by the joint committee, any comments to the preliminary
performance audit report by the joint committee, and any comments to the
preliminary performance audit report by the state agency or local government
that was audited.
(5) "Joint
committee" means the joint legislative audit and review committee.
(6) "Local
government" means a city, town, county, special purpose district,
political subdivision, municipal corporation, or quasi-municipal corporation,
including a public corporation created by such an entity.
(7) "Performance
audit" means an objective and systematic assessment of a state agency or
any of its programs, functions, or activities, or a unit of local government
receiving state funds, by an independent evaluator in order to help public officials
improve efficiency, effectiveness, and accountability. Performance audits
include economy and efficiency audits and program audits. A performance audit
of a local government may only be made to determine whether the local
government is using state funds for their intended purpose in an efficient and
effective manner.
(8) "Performance
measures" are a composite of key indicators of a program's or activity's
inputs, outputs, outcomes, productivity, timeliness, and/or quality. They are
means of evaluating policies and programs by measuring results against agreed
upon program goals or standards.
(9) "Preliminary
compliance report" means a written document that states the specific
actions a state agency or unit of local government receiving state funds has
taken to implement any recommendations contained in the final performance audit
report.
(10) "Preliminary
performance audit report" means a written document prepared for review and
comment by the joint legislative audit and review committee after the
completion of a performance audit. The preliminary performance audit report
must contain the audit findings and any proposed recommendations to improve the
efficiency, effectiveness, or accountability of the state agency or local
government audited.
(11) "Program audits"
means performance audits that determine: (a) The extent to which desired
outcomes or results are being achieved; (b) the causes for not achieving
intended outcomes or results; and (c) compliance with significant laws and
rules applicable to the program.
(12) "State
agency" or "agency" means a state agency, department, office,
officer, board, commission, bureau, division, institution, or institution of
higher education. "State agency" includes all elective offices in
the executive branch of state government.
Sec. 3. RCW 44.28.010 and 1983 c
52 s 1 are each amended to read as follows:
((There is hereby
created a)) The joint legislative ((budget)) audit and
review committee is created, which shall consist of eight senators
and eight representatives from the legislature. The senate members of the
committee shall be appointed by the president of the senate, and the
house members of the committee shall be appointed by the speaker of the house.
Not more than four members from each house shall be from the same political
party. Members shall be appointed before the close of each regular session of
the legislature during an odd-numbered year((: PROVIDED, That if prior to)).
If before the close of a regular session during an odd-numbered year, the
governor issues a proclamation convening the legislature into special session,
or the legislature by resolution convenes the legislature into special session,
following such regular session, then such appointments shall be made as a matter
of closing business of such special session. Members shall be subject to
confirmation, as to the senate members by the senate, and as to the house
members by the house. In the event of a failure to appoint or confirm joint
committee members, ((either on the part of the president of the senate or on
the part of the speaker of the house, or in the event of a refusal by either
the senate or the house to confirm appointments on the committee, then))
the members of the joint committee from either house in which there is a
failure to appoint or confirm shall be elected ((forthwith)) by the
members of such house.
Sec. 4. RCW 44.28.020 and 1980 c
87 s 31 are each amended to read as follows:
The term of office of
the members of the joint committee who continue to be members of the
senate and house shall be from the close of the session in which they were
appointed or elected as provided in RCW 44.28.010 until the close of the next
regular session during an odd-numbered year or special session following such
regular session, or, in the event that such appointments or elections are not
made, until the close of the next regular session during an odd-numbered year
during which successors are appointed or elected. The term of office of ((such))
joint committee members ((as shall)) who do not continue
to be members of the senate and house ((shall)) ceases upon the
convening of the next regular session of the legislature during an odd-numbered
year after their confirmation, election or appointment. Vacancies on the joint
committee shall be filled by appointment by the remaining members. All such
vacancies shall be filled from the same political party and from the same house
as the member whose seat was vacated.
Sec. 5. RCW 44.28.030 and 1955 c
206 s 6 are each amended to read as follows:
On and after the
commencement of a succeeding general session of the legislature, those members
of the joint committee who continue to be members of the senate and
house, respectively, shall continue as members of the joint committee as
indicated in RCW 44.28.020 and the joint committee shall continue with
all its powers, duties, authorities, records, papers, personnel and staff, and
all funds made available for its use.
Sec. 6. RCW 44.28.040 and
1975-'76 2nd ex.s. c 34 s 134 are each amended to read as follows:
The members of the joint
committee shall serve without additional compensation, but shall be reimbursed
for their travel expenses((,)) in accordance with RCW 44.04.120 ((as
now existing or hereafter amended, incurred while)) for attending ((sessions))
meetings of the joint committee or ((meetings of any)) a
subcommittee of the joint committee, or while engaged on other ((committee))
business authorized by the joint committee((, and while going to and
coming from committee sessions or committee meetings)).
Sec. 7. RCW 44.28.060 and 1975
1st ex.s. c 293 s 13 are each amended to read as follows:
The members of the
joint committee shall ((have the power and duty to appoint its own
chairman, vice chairman, and other officers; to make rules and regulations for
orderly procedure; to perform, either through the legislative budget committee
or through subcommittees of the legislative budget committee, all duties and
functions relating to improving the economy, efficiency, and effectiveness of
state agency management by performance audits and other staff studies of state
government, its officers, boards, committees, commissions, institutions, and
other state agencies)) form an executive committee consisting of one
member from each of the four major political caucuses, which shall include a
chair and a vice-chair. The chair and vice-chair shall serve for a period not
to exceed two years. The chair and the vice-chair may not be members of the
same political party. The chair shall alternate between the members of the
majority parties in the senate and the house of representatives.
The executive
committee is responsible for performing all general administrative and
personnel duties assigned to it in the rules and procedures adopted by the
joint committee, as well as other duties delegated to it by the joint
committee. The executive committee shall recommend applicants for the position
of the legislative auditor to the membership of the joint committee. The
legislative auditor shall be hired with the approval of a majority of the
membership of the joint committee. The executive committee shall set the
salary of the legislative auditor.
The
joint committee shall adopt rules and procedures for its orderly operation.
The joint committee may create subcommittees to perform duties under this
chapter.
Sec. 8. RCW 44.28.140 and 1975
1st ex.s. c 293 s 17 are each amended to read as follows:
((The committee is
hereby authorized and empowered to appoint an officer to be known as the
legislative auditor, and to fix his compensation, who shall be the executive
officer of the committee and assist in its duties and shall compile information
for the committee. The committee is hereby authorized and empowered to select
and employ other clerical, legal, accounting, research and other personnel that
it may deem desirable in the performance of its duties, and the compensation
and salaries shall be fixed by the legislative budget committee.))
The ((duties of the))
legislative auditor shall ((be as follows)):
(1) ((To ascertain
the facts and make recommendations to the committee and under their direction
to the committees of the state legislature concerning
(a) revenues and
expenditures of the state; and
(b) the organization
and functions of the state, its departments, subdivisions and agencies.
(2) To)) Establish and manage the office of the
joint legislative audit and review committee to carry out the functions of this
chapter;
(2) Direct the audit
and review functions described in this chapter and ensure that performance
audits are performed in accordance with the "Government Auditing
Standards" published by the comptroller general of the United States as
applicable to the scope of the audit;
(3) Make findings
and recommendations to the joint committee and under its direction to the
committees of the state legislature concerning the organization and operation
of state agencies and the expenditure of state funds by units of local
government;
(4) In consultation
with and with the approval of the executive committee, hire staff necessary to
carry out the purposes of this chapter. Employee salaries, other than the
legislative auditor, shall be set by the legislative auditor with the approval
of the executive committee;
(5) Assist the
several standing committees of the house and senate in consideration of
legislation affecting state departments and their efficiency; ((to))
appear before other legislative committees; and ((to)) assist any
other legislative committee upon instruction by the joint legislative ((budget))
audit and review committee.
(((3) To)) (6)
Provide the legislature with information obtained under the direction of
the joint legislative ((budget)) audit and review
committee((.));
(((4) To)) (7)
Maintain a record of all work performed by the legislative auditor under
the direction of the joint legislative ((budget)) audit and
review committee and ((to)) keep and make available all documents,
data, and reports submitted to ((him)) the legislative auditor
by any legislative committee.
NEW SECTION. Sec.
9. (1) In conducting
performance audits and other reviews, the legislative auditor shall work
closely with the chairs and staff of standing committees of the senate and
house of representatives, and may work in consultation with the state auditor
and the director of financial management.
(2) The legislative
auditor may contract with and consult with public and private independent
professional and technical experts as necessary in conducting the performance
audits. The legislative auditor should also involve front-line employees and
internal auditors in the performance audit process to the highest possible
degree.
(3) The legislative
auditor shall work with the legislative evaluation and accountability program
committee and the office of financial management to develop information system
capabilities necessary for the performance audit requirements of this chapter.
(4) The legislative
auditor shall work with the legislative office of performance review and the
office of financial management to facilitate the implementation of effective
performance measures throughout state government. In agencies and programs
where effective systems for performance measurement exist, the measurements
incorporated into those systems should be a basis for performance audits
conducted under this chapter.
NEW SECTION. Sec.
10. (1) Subject to the
requirements of the performance audit work plan approved by the joint
committee under RCW 44.28.180, as recodified by this act, performance audits
may, in addition to the determinations that may be made in such an audit as
specified in section 2 of this act, include the following:
(a) An examination of
the costs and benefits of agency programs, functions, and activities;
(b) Identification of
viable alternatives for reducing costs or improving service delivery;
(c) Identification of
gaps and overlaps in service delivery, along with corrective action; and
(d) Comparison with
other states whose agencies perform similar functions, as well as their
relative funding levels and performance.
(2) As part of a
performance audit, the legislative auditor may review the costs of programs
recently implemented by the legislature to compare actual agency costs with the
appropriations provided and the cost estimates that were included in the fiscal
note for the program at the time the program was enacted.
Sec. 11. RCW 44.28.080 and 1975
1st ex.s. c 293 s 14 are each amended to read as follows:
The joint
committee ((shall have)) has the following powers:
(1) To make examinations
and reports concerning whether or not appropriations are being expended for the
purposes and within the statutory restrictions provided by the legislature; ((concerning
the economic outlook and estimates of revenue to meet expenditures;)) and
concerning the organization and operation of procedures necessary or desirable
to promote economy, efficiency, and effectiveness in state government, its
officers, boards, committees, commissions, institutions, and other state
agencies, and to make recommendations and reports to the legislature.
(2) To make such other
studies and examinations of economy, efficiency, and effectiveness of state
government and its state agencies as it may find advisable, and to hear
complaints, hold hearings, gather information, and make findings of fact
with respect thereto.
(3) ((The committee
shall have the power)) To conduct program and fiscal reviews of any
state agency or program scheduled for termination under the process provided
under chapter 43.131 RCW.
(4) To perform other
legislative staff studies of state government or the use of state funds.
(5) To conduct
performance audits in accordance with the work plan adopted by the joint
committee under RCW 44.28.180.
(6) To receive a
copy of each report of examination or audit issued by the state auditor for
examinations or audits that were conducted at the request of the joint
committee and to make recommendations as it deems appropriate as a separate
addendum to the report or audit.
(7) To develop
internal tracking procedures that will allow the legislature to measure the
effectiveness of performance audits conducted by the joint committee including,
where appropriate, measurements of cost-savings and increases in efficiency and
effectiveness in how state agencies deliver their services.
(8) To receive
messages and reports in person or in writing from the governor or any other
state officials and to study generally any and all business relating to
economy, efficiency, and effectiveness in state government and state agencies.
Sec. 12. RCW 44.28.180 and 1993 c
406 s 5 are each amended to read as follows:
(1) ((In conducting
program evaluations as defined in RCW 43.88.020, the legislative budget
committee may establish a biennial work plan)) During the regular
legislative session of each odd-numbered year, beginning with 1997, the joint
legislative audit and review committee shall develop and approve a performance
audit work plan for the subsequent sixteen to twenty‑four‑month
period and an overall work plan that identifies state agency programs for
which formal evaluation appears necessary. Among the factors to be considered
in preparing the work plans are:
(a) Whether a program
newly created or significantly altered by the legislature warrants continued
oversight because (i) the fiscal impact of the program is significant, or (ii)
the program represents a relatively high degree of risk in terms of reaching
the stated goals and objectives for that program;
(b) Whether
implementation of an existing program has failed to meet its goals and
objectives by any significant degree; and
(c) Whether a
follow-up audit would help ensure that previously identified recommendations
for improvements were being implemented.
(2) The project
description for each ((program evaluation shall)) performance audit
must include start and completion dates, the proposed ((research))
approach, and cost estimates.
(3) The legislative
auditor may consult with the chairs and staff of appropriate legislative
committees, the state auditor, and the director of financial management in
developing the performance audit work plan.
(4) The performance
audit work plan and the overall work plan may include proposals to
employ contract ((evaluators)) resources. As conditions warrant,
the ((program evaluation)) performance audit work plan and the
overall work plan may be amended from time to time. All ((biennial))
performance audit work plans shall be transmitted to the appropriate
fiscal and policy committees of the senate and the house of representatives no
later than the sixtieth day of the regular legislative session of each
odd-numbered year, beginning with 1997. All overall work plans shall be
transmitted to the appropriate fiscal and policy committees of the senate and
the house of representatives.
NEW SECTION. Sec.
13. (1) When the legislative
auditor has completed a performance audit authorized in the performance audit
work plan, the legislative auditor shall transmit the preliminary performance
audit report to the affected state agency or local government and the office of
financial management for comment. The agency or local government and the
office of financial management shall provide any response to the legislative
auditor within thirty days after receipt of the preliminary performance audit
report unless a different time period is approved by the joint committee. The
legislative auditor shall incorporate the response of the agency or local
government and the office of financial management into the final performance
audit report.
(2) Before releasing
the results of a performance audit to the legislature or the public, the
legislative auditor shall submit the preliminary performance audit report to
the joint committee for its review, comments, and final recommendations. Any
comments by the joint committee must be included as a separate addendum to the
final performance audit report. Upon consideration and incorporation of the
review, comments, and recommendations of the joint committee, the legislative
auditor shall transmit the final performance audit report to the affected
agency or local government, the director of financial management, the
leadership of the senate and the house of representatives, and the appropriate
standing committees of the house of representatives and the senate and shall
publish the results and make the report available to the public. For purposes
of this section, "leadership of the senate and the house of
representatives" means the speaker of the house, the majority leaders of
the senate and the house of representatives, the minority leaders of the senate
and the house of representatives, the caucus chairs of both major political
parties of the senate and the house of representatives, and the floor leaders
of both major political parties of the senate and the house of representatives.
NEW SECTION. Sec.
14. (1) No later than nine
months after the final performance audit has been transmitted by the joint
committee to the appropriate standing committees of the house of
representatives and the senate, the joint committee in consultation with the
standing committees may produce a preliminary compliance report on the agency's
or local government's compliance with the final performance audit
recommendations. The agency or local government may attach its comments to the
joint committee's preliminary compliance report as a separate addendum.
(2) Within three months
after the issuance of the preliminary compliance report, the joint committee
may hold at least one public hearing and receive public testimony regarding the
findings and recommendations contained in the preliminary compliance report.
The joint committee may waive the public hearing requirement if the preliminary
compliance report demonstrates that the agency or local government is in
compliance with the audit recommendations. The joint committee shall issue any
final compliance report within four weeks after the public hearing or
hearings. The legislative auditor shall transmit the final compliance report
in the same manner as a final performance audit is transmitted under section 13
of this act.
NEW SECTION. Sec.
15. Subject to the joint
committee's approval, the office of the joint committee shall undergo an
external quality control review within three years of the effective date of
this act and at regular intervals thereafter. The review must be conducted by
an independent organization that has experience in conducting performance
audits. The quality control review must include, at a minimum, an evaluation
of the quality of the audits conducted by the joint committee, an assessment of
the audit procedures used by the joint committee, and an assessment of the qualifications
of the joint committee staff to conduct performance audits.
NEW SECTION. Sec.
16. (1) The performance audit
revolving fund is established in the state treasury. Expenditures from the
fund may only be used for payment of the costs of performance audits performed
pursuant to the performance audit work plan approved by the joint legislative
audit and review committee under RCW 44.28.180. The costs of a performance
audit shall include all direct and indirect costs. Moneys in the fund may only
be spent after appropriation.
(2) The legislative
auditor shall assess state agencies all or a portion of the costs of a
performance audit from funds appropriated to the agencies for administrative
expenses. Agencies operating in whole or in part from nonappropriated funds
must pay into the revolving fund such funds as will fully reimburse for the
costs of a performance audit.
(3) The costs of
performance audits may also be paid from appropriations made for that purpose.
NEW SECTION. Sec.
17. To ensure the accuracy
and timeliness of information used as the basis for performance audits and
other responsibilities of the legislature, the legislative auditor or the
legislative auditor's staff must be provided direct access to information held
by any state agency. Agencies shall submit directly to the joint legislative
audit and review committee all data and other information requested, including
tax records and client data. Any confidential data or information provided to
the committee must be kept confidential by the joint committee.
Sec. 18. RCW 44.28.087 and 1973
1st ex.s. c 197 s 2 are each amended to read as follows:
All agency reports
concerning program performance, including administrative review, quality
control, and other internal audit or performance reports, as requested by the
((legislative budget)) joint committee, shall be furnished by the
agency requested to provide such report.
Sec. 19. RCW 44.28.100 and 1987 c
505 s 45 are each amended to read as follows:
The joint
committee ((shall have the power to)) may make reports from time
to time to the members of the legislature and to the public with respect to any
of its findings or recommendations. The joint committee shall keep
complete minutes of its meetings.
Sec. 20. RCW 44.28.120 and 1951 c
43 s 9 are each amended to read as follows:
In case of the failure
on the part of any person to comply with any subpoena issued in behalf of the joint
committee, or on the refusal of any witness to testify to any matters regarding
which he or she may be lawfully interrogated, it shall be the duty of
the superior court of any county, or of the judge thereof, on application of
the joint committee, to compel obedience by proceedings for contempt, as
in the case of disobedience of the requirements of a subpoena issued from such
court or a refusal to testify therein.
Sec. 21. RCW 44.28.130 and 1951 c
43 s 10 are each amended to read as follows:
Each witness who
appears before the joint committee by its order, other than a state
official or employee, shall receive for his or her attendance the fees
and mileage provided for witnesses in civil cases in courts of record, which
shall be audited and paid upon the presentation of proper vouchers signed by
such witness, verified by the legislative auditor, and approved by the
((secretary and chairman)) chair and the vice-chair of the joint
committee.
Sec. 22. RCW 44.28.150 and 1975
1st ex.s. c 293 s 18 are each amended to read as follows:
The joint
committee shall cooperate, act, and function with legislative committees
and with the councils or committees of other states similar to this joint
committee and with other interstate research organizations.
Sec. 23. RCW 43.88.020 and 1995 c
155 s 1 are each amended to read as follows:
(1) "Budget"
means a proposed plan of expenditures for a given period or purpose and the
proposed means for financing these expenditures.
(2) "Budget
document" means a formal statement, either written or provided on any
electronic media or both, offered by the governor to the legislature, as
provided in RCW 43.88.030.
(3) "Director of
financial management" means the official appointed by the governor to
serve at the governor's pleasure and to whom the governor may delegate
necessary authority to carry out the governor's duties as provided in this
chapter. The director of financial management shall be head of the office of
financial management which shall be in the office of the governor.
(4) "Agency"
means and includes every state office, officer, each institution, whether
educational, correctional, or other, and every department, division,
board, and commission, except as otherwise provided in this chapter.
(5) "Public
funds", for purposes of this chapter, means all moneys, including cash,
checks, bills, notes, drafts, stocks, and bonds, whether held in trust, for
operating purposes, or for capital purposes, and collected or disbursed under
law, whether or not such funds are otherwise subject to legislative
appropriation, including funds maintained outside the state treasury.
(6)
"Regulations" means the policies, standards, and requirements, stated
in writing, designed to carry out the purposes of this chapter, as issued by
the governor or the governor's designated agent, and which shall have the force
and effect of law.
(7) "Ensuing
biennium" means the fiscal biennium beginning on July 1st of the same year
in which a regular session of the legislature is held during an odd-numbered
year pursuant to Article II, section 12 of the Constitution and which biennium
next succeeds the current biennium.
(8) "Dedicated
fund" means a fund in the state treasury, or a separate account or fund in
the general fund in the state treasury, that by law is dedicated, appropriated,
or set aside for a limited object or purpose; but "dedicated fund"
does not include a revolving fund or a trust fund.
(9) "Revolving
fund" means a fund in the state treasury, established by law, from which
is paid the cost of goods or services furnished to or by a state agency, and
which is replenished through charges made for such goods or services or through
transfers from other accounts or funds.
(10) "Trust
fund" means a fund in the state treasury in which designated persons or
classes of persons have a vested beneficial interest or equitable ownership, or
which was created or established by a gift, grant, contribution, devise, or
bequest that limits the use of the fund to designated objects or purposes.
(11)
"Administrative expenses" means expenditures for: (a) Salaries,
wages, and related costs of personnel and (b) operations and maintenance
including but not limited to costs of supplies, materials, services, and
equipment.
(12) "Fiscal
year" means the year beginning July 1st and ending the following June
30th.
(13) "Lapse"
means the termination of authority to expend an appropriation.
(14) "Legislative
fiscal committees" means the joint legislative ((budget)) audit
and review committee, the legislative evaluation and accountability program
committee, the ways and means committees of the senate and house of
representatives, and, where appropriate, the legislative transportation
committee.
(15) "Fiscal
period" means the period for which an appropriation is made as specified
within the act making the appropriation.
(16) "Primary
budget driver" means the primary determinant of a budget level, other than
a price variable, which causes or is associated with the major expenditure of
an agency or budget unit within an agency, such as a caseload, enrollment,
workload, or population statistic.
(17) (("Stabilization
account" means the budget stabilization account created under RCW
43.88.525 as an account in the general fund of the state treasury.
(18))) "State tax revenue limit" means the
limitation created by chapter 43.135 RCW.
(((19))) (18)
"General state revenues" means the revenues defined by Article VIII,
section 1(c) of the state Constitution.
(((20))) (19)
"Annual growth rate in real personal income" means the estimated
percentage growth in personal income for the state during the current fiscal
year, expressed in constant value dollars, as published by the office of
financial management or its successor agency.
(((21))) (20)
"Estimated revenues" means estimates of revenue in the most recent
official economic and revenue forecast prepared under RCW 82.33.020, and
prepared by the office of financial management for those funds, accounts, and
sources for which the office of the economic and revenue forecast council does
not prepare an official forecast including estimates of revenues to support
financial plans under RCW 44.40.070, that are prepared by the office of
financial management in consultation with the interagency task force.
(((22))) (21)
"Estimated receipts" means the estimated receipt of cash in the most
recent official economic and revenue forecast prepared under RCW 82.33.020, and
prepared by the office of financial management for those funds, accounts, and
sources for which the office of the economic and revenue forecast council does
not prepare an official forecast.
(((23))) (22)
"State budgeting, accounting, and reporting system" means a system
that gathers, maintains, and communicates fiscal information. The system links
fiscal information beginning with development of agency budget requests through
adoption of legislative appropriations to tracking actual receipts and
expenditures against approved plans.
(((24))) (23)
"Allotment of appropriation" means the agency's statement of proposed
expenditures, the director of financial management's review of that statement,
and the placement of the approved statement into the state budgeting,
accounting, and reporting system.
(((25))) (24)
"Statement of proposed expenditures" means a plan prepared by each
agency that breaks each appropriation out into monthly detail representing the
best estimate of how the appropriation will be expended.
(((26))) (25)
"Undesignated fund balance (or deficit)" means unreserved and
undesignated current assets or other resources available for expenditure over
and above any current liabilities which are expected to be incurred by the
close of the fiscal period.
(((27))) (26)
"Internal audit" means an independent appraisal activity within an
agency for the review of operations as a service to management, including a
systematic examination of accounting and fiscal controls to assure that human
and material resources are guarded against waste, loss, or misuse; and that
reliable data are gathered, maintained, and fairly disclosed in a written
report of the audit findings.
(((28))) (27)
"Performance verification" means an analysis that (a) verifies the
accuracy of data used by state agencies in quantifying intended results and measuring
performance toward those results, and (b) verifies whether or not the reported
results were achieved.
(((29) "Program
evaluation" means the use of a variety of policy and fiscal research
methods to (a) determine the extent to which a program is achieving its
legislative intent in terms of producing the effects expected, and (b) make an
objective judgment of the implementation, outcomes, and net cost or benefit
impact of programs in the context of their goals and objectives. It includes
the application of systematic methods to measure the results, intended or
unintended, of program activities.))
(28)
"Performance audit" has the same meaning as it is defined in section
2 of this act.
Sec. 24. RCW 43.88.090 and 1994 c
184 s 10 are each amended to read as follows:
(1) For purposes of
developing budget proposals to the legislature, the governor shall have the
power, and it shall be the governor's duty, to require from proper agency
officials such detailed estimates and other information in such form and at
such times as the governor shall direct. The estimates for the legislature and
the judiciary shall be transmitted to the governor and shall be included in the
budget without revision. The estimates for state pension contributions shall
be based on the rates provided in chapter 41.45 RCW. Copies of all such
estimates shall be transmitted to the standing committees on ways and means of
the house and senate at the same time as they are filed with the governor and
the office of financial management.
The estimates shall
include statements or tables which indicate, by agency, the state funds which
are required for the receipt of federal matching revenues. The estimates shall
be revised as necessary to reflect legislative enactments and adopted
appropriations and shall be included with the initial biennial allotment
submitted under RCW 43.88.110. The estimates must include consideration of
findings made by the legislative auditor of the office of the joint legislative
audit and review committee under a performance audit of the agency.
(2) In the year of the
gubernatorial election, the governor shall invite the governor-elect or the
governor-elect's designee to attend all hearings provided in RCW 43.88.100; and
the governor shall furnish the governor-elect or the governor-elect's designee
with such information as will enable the governor-elect or the governor-elect's
designee to gain an understanding of the state's budget requirements. The
governor-elect or the governor-elect's designee may ask such questions during
the hearings and require such information as the governor-elect or the
governor-elect's designee deems necessary and may make recommendations in
connection with any item of the budget which, with the governor-elect's reasons
therefor, shall be presented to the legislature in writing with the budget
document. Copies of all such estimates and other required information shall
also be submitted to the standing committees on ways and means of the house and
senate.
Sec. 25. RCW 43.88.160 and 1994 c
184 s 11 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) Develop and
maintain a system of internal controls and internal audits comprising methods
and procedures to be adopted by each agency that will safeguard its assets,
check the accuracy and reliability of its accounting data, promote operational
efficiency, and encourage adherence to prescribed managerial policies for
accounting and financial controls. The system developed by the director shall
include criteria for determining the scope and comprehensiveness of internal
controls required by classes of agencies, depending on the level of resources
at risk.
Each agency head or
authorized designee shall be assigned the responsibility and authority for
establishing and maintaining internal audits following the standards of
internal auditing of the institute of internal auditors;
(b) 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;
(c) Establish policies
for allowing the contracting of child care services;
(d) Report to the
governor with regard to duplication of effort or lack of coordination among
agencies;
(e) 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;
(f) 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;
(g) ((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;
(h))) Adopt rules to effectuate provisions contained
in (a) through (((g))) (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) Receive, disburse,
or transfer public funds under the treasurer's supervision or custody;
(c) Keep a correct and
current account of all moneys received and disbursed by the treasurer,
classified by fund or account;
(d) Coordinate
agencies' acceptance and use of credit cards and other payment methods, if the
agencies have received authorization under RCW 43.41.180;
(e) 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 disburse public funds in the treasury except upon forms or
by alternative means duly prescribed by the director of financial management.
These forms or alternative means 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. 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. 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. Where feasible in conducting examinations, the auditor shall utilize
data and findings from the internal control system prescribed by the office of
financial management. 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 determinations as to whether agencies, in making
expenditures, complied with the laws of this state. The state auditor is
authorized to perform or participate in performance verifications ((only))
and performance audits as expressly authorized by the legislature in the
omnibus biennial appropriations acts or in the performance audit work plan
approved by the joint legislative audit and review committee. The state
auditor, upon completing an audit for legal and financial compliance under
chapter 43.09 RCW or a performance verification, may report to the joint
legislative ((budget)) audit and review committee or other
appropriate committees of the legislature, in a manner prescribed by the joint
legislative ((budget)) audit and review committee, on facts
relating to the management or performance of governmental programs where such
facts are discovered incidental to the legal and financial audit or performance
verification. The auditor may make such a report to a legislative committee only
if the auditor has determined that the agency has been given an opportunity and
has failed to resolve the management or performance issues raised by the
auditor. If the auditor makes a report to a legislative committee, the agency
may submit to the committee a response to the report. This subsection (6)
shall not be construed to authorize the auditor to allocate other than de
minimis resources to performance audits except as expressly authorized in the
appropriations acts or in the performance audit work plan. The
results of a performance audit conducted by the state auditor that has been
requested by the joint legislative audit and review committee must only be
transmitted to the joint legislative audit and review committee.
(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.
(f) Investigate
improper governmental activity under chapter 42.40 RCW.
(7) The joint
legislative ((budget)) audit and review committee may:
(a) Make post audits of
the financial transactions of any agency and management surveys and program
reviews as provided for in chapter 44.28 RCW ((44.28.085)) as
well as performance audits and program evaluations. To this end the joint
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.
(c) Make a report to
the legislature which shall include at least the following:
(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. 26. RCW 28A.630.830 and 1994
c 13 s 5 are each amended to read as follows:
(1) The selection
advisory committee is created. The committee shall be composed of up to three
members from the house of representatives, up to three members from the senate,
up to two members from the office of the superintendent of public instruction,
and one member from each of the following: The office of financial management,
Washington state special education coalition, transitional bilingual
instruction educators, and Washington education association.
(2) The joint
legislative ((budget)) audit and review committee and the
superintendent of public instruction shall provide staff for the selection
advisory committee.
(3) The selection
advisory committee shall:
(a) Develop appropriate
criteria for selecting demonstration projects;
(b) Issue requests for
proposals in accordance with RCW 28A.630.820 through 28A.630.845 for
demonstration projects;
(c) Review proposals
and recommend demonstration projects for approval by the superintendent of
public instruction; and
(d) Advise the
superintendent of public instruction on the evaluation design.
Sec. 27. RCW 28B.20.382 and 1987
c 505 s 13 are each amended to read as follows:
Until authorized and
empowered to do so by statute of the legislature, the board of regents of the
university, with respect to that certain tract of land in the city of Seattle
originally known as the "old university grounds" and more recently
known as the "Metropolitan Tract" and any land contiguous thereto,
shall not sell ((said)) the land or any part thereof or any
improvement thereon, or lease ((said)) the land or any part
thereof or any improvement thereon or renew or extend any lease thereof for a
term ending more than sixty years beyond midnight, December 31, 1980. Any sale
of ((said)) the land or any part thereof or any improvement
thereon, or any lease or renewal or extension of any lease of ((said)) the
land or any part thereof or any improvement thereon for a term ending more than
sixty years after midnight, December 31, 1980, made or attempted to be made by
the board of regents shall be null and void unless and until the same has been
approved or ratified and confirmed by legislative act.
The board of regents
shall have power from time to time to lease ((said)) the land, or
any part thereof or any improvement thereon for a term ending not more than
sixty years beyond midnight, December 31, 1980: PROVIDED, That the board of
regents shall make a full, detailed report of all leases and transactions
pertaining to ((said)) the land or any part thereof or any
improvement thereon to the joint legislative ((budget)) audit
and review committee, including one copy to the staff of the committee,
during an odd-numbered year: PROVIDED FURTHER, That any and all records,
books, accounts ((and/or)), and agreements of any lessee or
sublessee under this section, pertaining to compliance with the terms and
conditions of such lease or sublease, shall be open to inspection by the board
of regents ((and/or)), the ways and means committee((s))
of the senate ((or)), the appropriations committee of the
house of representatives ((or)), and the joint legislative
((budget)) audit and review committee or any successor
committees. It is not intended by this proviso that unrelated records, books,
accounts ((and/or)), and agreements of lessees, sublessees,
or related companies be open to such inspection.
Sec. 28. RCW 39.19.060 and 1993 c
512 s 9 are each amended to read as follows:
Each state agency and
educational institution shall comply with the annual goals established for that
agency or institution under this chapter for public works and procuring goods
or services. This chapter applies to all public works and procurement by state
agencies and educational institutions, including all contracts and other
procurement under chapters 28B.10, 39.04, 39.29, 43.19, and 47.28 RCW. Each
state agency shall adopt a plan, developed in consultation with the director
and the advisory committee, to insure that minority and women-owned businesses
are afforded the maximum practicable opportunity to directly and meaningfully
participate in the execution of public contracts for public works and goods and
services. The plan shall include specific measures the agency will undertake
to increase the participation of certified minority and women-owned
businesses. The office shall annually notify the governor, the state auditor,
and the joint legislative ((budget)) audit and review
committee of all agencies and educational institutions not in compliance with
this chapter.
Sec. 29. RCW 39.29.016 and 1987 c
414 s 4 are each amended to read as follows:
Emergency contracts
shall be filed with the office of financial management and the joint
legislative ((budget)) audit and review committee 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 and the joint legislative ((budget)) audit
and review committee when the contract is filed.
Sec. 30. RCW 39.29.018 and 1993 c
433 s 5 are each amended to read as follows:
(1) Sole source
contracts shall be filed with the office of financial management and the joint
legislative ((budget)) audit and review committee 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 and the joint
legislative ((budget)) audit and review committee when the
contract is filed. For sole source contracts of ten thousand dollars or more
that are state funded, documented justification shall include evidence that the
agency attempted to identify potential consultants by advertising through
state-wide or regional newspapers.
(2) The office of
financial management shall approve sole source contracts of ten thousand
dollars or more that are state funded, 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 ten
thousand dollars if the total amount of such contracts between an agency and
the same consultant is ten thousand dollars or more within a fiscal year.
Agencies shall ensure that the costs, fees, or rates negotiated in filed sole
source contracts of ten thousand dollars or more are reasonable.
Sec. 31. RCW 39.29.025 and 1993 c
433 s 3 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 and the joint
legislative ((budget)) audit and review committee, and are
subject to approval by the office of financial management.
(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
and the joint legislative ((budget)) audit and review
committee.
(3) The office of
financial management 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 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 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.
Sec. 32. RCW 39.29.055 and 1993 c
433 s 7 are each amended to read as follows:
(1) State-funded
personal service contracts subject to competitive solicitation shall be filed
with the office of financial management and the joint legislative ((budget))
audit and review committee and made available for public inspection at
least ten working days before the proposed starting date of the contract.
(2) The office of
financial management shall review and approve state-funded personal service
contracts subject to competitive solicitation that provide services relating to
management consulting, organizational development, marketing, communications,
employee training, or employee recruiting.
Sec. 33. RCW 41.06.070 and 1995 c
163 s 1 are each 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 ((budget)) 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) Officers and
employees of the Washington state apple advertising commission;
(p) Officers and
employees of the Washington state dairy products commission;
(q) Officers and
employees of the Washington tree fruit research commission;
(r) Officers and
employees of the Washington state beef commission;
(s) Officers and
employees of any commission formed under chapter 15.66 RCW;
(t) Officers and
employees of the state wheat commission formed under chapter 15.63 RCW;
(u) Officers and
employees of agricultural commissions formed under chapter 15.65 RCW;
(v) Officers and
employees of the nonprofit corporation formed under chapter 67.40 RCW;
(w) 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) 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) All employees of
the marine employees' commission;
(z) Up to a total of
five senior staff positions of the western library network under chapter 27.26
RCW responsible for formulating policy or for directing program management of a
major administrative unit. This subsection (1)(z) shall expire on June 30,
1997.
(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) Student, part-time,
or temporary employees, and part-time professional consultants, as defined by
the Washington personnel resources board, employed by institutions of higher
education and related boards;
(c) 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;
(d) 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 Washington personnel
resources board may provide for further exemptions pursuant to the following
procedures. The governor or other appropriate elected official may submit
requests for exemption to the Washington personnel resources board stating the
reasons for requesting such exemptions. The Washington personnel resources
board shall hold a public hearing, after proper notice, on requests submitted
pursuant to this subsection. If the board 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 Washington personnel resources board 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 Washington personnel resources board shall report
to each regular session of the legislature during an odd-numbered year all
exemptions granted under subsections (1)(w) and (x) and (2) of this section,
together with the reasons for such exemptions.
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) and (2) of this section, shall be determined by the Washington
personnel resources board.
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.
Sec. 34. RCW 42.48.060 and 1985 c
334 s 6 are each amended to read as follows:
Nothing in this chapter
is applicable to, or in any way affects, the powers and duties of the state
auditor or the joint legislative ((budget)) audit and review
committee.
Sec. 35. RCW 43.09.310 and 1995 c
301 s 22 are each amended to read as follows:
The state auditor shall
annually audit the state-wide combined financial statements prepared by the
office of financial management and make post-audits of state agencies.
Post-audits of state agencies shall be made at such periodic intervals as is
determined by the state auditor. Audits of combined financial statements shall
include determinations as to the validity and accuracy of accounting methods,
procedures and standards utilized in their preparation, as well as the accuracy
of the financial statements themselves. A report shall be made of each such
audit and post-audit upon completion thereof, and one copy shall be transmitted
to the governor, one to the director of financial management, one to the state
agency audited, one to the joint legislative ((budget)) audit
and review committee, one each to the standing committees on ways and means
of the house and senate, one to the chief clerk of the house, one to the
secretary of the senate, and at least one shall be kept on file in the office
of the state auditor. A copy of any report containing findings of
noncompliance with state law shall be transmitted to the attorney general.
Sec. 36. RCW 43.21J.800 and 1993
c 516 s 11 are each amended to read as follows:
On or before June 30,
1998, the joint legislative ((budget)) audit and review
committee shall prepare a report to the legislature evaluating the
implementation of the environmental restoration jobs act of 1993, chapter 516,
Laws of 1993.
Sec. 37. RCW 43.79.270 and 1973 c
144 s 2 are each amended to read as follows:
Whenever any money,
from the federal government, or from other sources, which was not anticipated
in the budget approved by the legislature has actually been received and is designated
to be spent for a specific purpose, the head of any department, agency, board,
or commission through which such expenditure shall be made is to submit to the
governor a statement which may be in the form of a request for an allotment
amendment setting forth the facts constituting the need for such expenditure
and the estimated amount to be expended: PROVIDED, That no expenditure shall
be made in excess of the actual amount received, and no money shall be expended
for any purpose except the specific purpose for which it was received. A copy
of any proposal submitted to the governor to expend money from an appropriated
fund or account in excess of appropriations provided by law which is based on
the receipt of unanticipated revenues shall be submitted to the joint
legislative ((budget)) audit and review committee and also to the
standing committees on ways and means of the house and senate if the
legislature is in session at the same time as it is transmitted to the
governor.
Sec. 38. RCW 43.79.280 and 1973 c
144 s 3 are each amended to read as follows:
If the governor
approves such estimate in whole or part, he shall endorse on each copy of the
statement his approval, together with a statement of the amount approved in the
form of an allotment amendment, and transmit one copy to the head of the
department, agency, board, or commission authorizing the expenditure. An
identical copy of the governor's statement of approval and a statement of the
amount approved for expenditure shall be transmitted simultaneously to the joint
legislative ((budget)) audit and review committee and also to the
standing committee on ways and means of the house and senate of all executive
approvals of proposals to expend money in excess of appropriations provided by
law.
Sec. 39. RCW 43.88.205 and 1979 c
151 s 141 are each amended to read as follows:
(1) Whenever an agency
makes application, enters into a contract or agreement, or submits state plans
for participation in, and for grants of federal funds under any federal law,
the agency making such application shall at the time of such action, give
notice in such form and manner as the director of financial management may
prescribe, or the ((chairman)) chair of the joint
legislative ((budget)) audit and review committee, standing
committees on ways and means of the house and senate, the chief clerk of the
house, or the secretary of the senate may request.
(2) Whenever any such
application, contract, agreement, or state plan is amended, such agency shall
notify each such officer of such action in the same manner as prescribed or
requested pursuant to subsection (1) of this section.
(3) Such agency shall
promptly furnish such progress reports in relation to each such application,
contract, agreement, or state plan as may be requested following the date of
the filing of the application, contract, agreement, or state plan; and shall
also file with each such officer a final report as to the final disposition of
each such application, contract, agreement, or state plan if such is requested.
Sec. 40. RCW 43.88.230 and 1981 c
270 s 12 are each amended to read as follows:
For the purposes of
this chapter, the statute law committee, the joint legislative ((budget))
audit and review committee, the legislative transportation committee,
the legislative evaluation and accountability program committee, the office of
state actuary, and all legislative standing committees of both houses shall be
deemed a part of the legislative branch of state government.
Sec. 41. RCW 43.88.310 and 1993 c
157 s 1 are each amended to read as follows:
(1) The legislative
auditor of the office of the joint legislative audit and review committee,
with the concurrence of the joint legislative ((budget)) audit
and review committee, may file with the attorney general any audit
exceptions or other findings of any performance audit, management study, or
special report prepared for the joint legislative ((budget)) audit
and review committee, any standing or special committees of the house or
senate, or the entire legislature which indicate a violation of RCW 43.88.290,
or any other act of malfeasance, misfeasance, or nonfeasance on the part of any
state officer or employee.
(2) The attorney
general shall promptly review each filing received from the legislative auditor
and may act thereon as provided in RCW 43.88.300, or any other applicable
statute authorizing enforcement proceedings by the attorney general. The
attorney general shall advise the joint legislative ((budget)) audit
and review committee of the status of exceptions or findings referred under
this section.
Sec. 42. RCW 43.88.510 and 1987 c
505 s 37 are each amended to read as follows:
Not later than ninety
days after the beginning of each biennium, the director of financial management
shall submit the compiled list of boards, commissions, councils, and
committees, together with the information on each such group, that is required
by RCW 43.88.505 to:
(1) The speaker of the
house and the president of the senate for distribution to the appropriate
standing committees, including one copy to the staff of each of the committees;
(2) The chair of the joint
legislative ((budget)) audit and review committee, including a
copy to the staff of the committee;
(3) The chairs of the
committees on ways and means of the senate and house of representatives; and
(4) Members of the
state government committee of the house of representatives and of the
governmental operations committee of the senate, including one copy to the
staff of each of the committees.
Sec. 43. RCW 43.131.050 and 1990
c 297 s 2 are each amended to read as follows:
The joint
legislative ((budget)) audit and review committee shall cause to
be conducted a program and fiscal review of any state agency or program
scheduled for termination by the processes provided in this chapter. Such
program and fiscal review shall be completed and a preliminary report prepared
on or before June 30th of the year prior to the date established for
termination. Upon completion of its preliminary report, the joint legislative
((budget)) audit and review committee shall transmit copies of
the report to the office of financial management. The office of financial
management may then conduct its own program and fiscal review of the agency
scheduled for termination and shall prepare a report on or before September
30th of the year prior to the date established for termination. Upon
completion of its report the office of financial management shall transmit
copies of its report to the joint legislative ((budget)) audit
and review committee. The joint legislative ((budget)) audit
and review committee shall prepare a final report that includes the reports
of both the office of financial management and the joint legislative ((budget))
audit and review committee. The joint legislative ((budget))
audit and review committee and the office of financial management shall,
upon request, make available to each other all working papers, studies, and
other documents which relate to reports required under this section. The joint
legislative ((budget)) audit and review committee shall transmit
the final report to the legislature, to the state agency concerned, to the
governor, and to the state library.
Sec. 44. RCW 43.131.060 and 1988
c 17 s 1 are each amended to read as follows:
In conducting the
review of a regulatory entity, the joint legislative ((budget)) audit
and review committee shall consider, but not be limited to, the following
factors where applicable:
(1) The extent to which
the regulatory entity has operated in the public interest and fulfilled its
statutory obligations;
(2) The duties of the
regulatory entity and the costs incurred in carrying out those duties;
(3) The extent to which
the regulatory entity is operating in an efficient, effective, and economical
manner;
(4) The extent to which
the regulatory entity inhibits competition or otherwise adversely affects the
state's economic climate;
(5) The extent to which
the regulatory entity duplicates the activities of other regulatory entities or
of the private sector, where appropriate; and
(6) The extent to which
the absence or modification of regulation would adversely affect, maintain, or
improve the public health, safety, or welfare.
Sec. 45. RCW 43.131.070 and 1977
ex.s. c 289 s 7 are each amended to read as follows:
In conducting the
review of a state agency other than a regulatory entity, the joint
legislative ((budget)) audit and review committee shall consider,
but not be limited to, the following factors where applicable:
(1) The extent to which
the state agency has complied with legislative intent;
(2) The extent to which
the state agency is operating in an efficient and economical manner which
results in optimum performance;
(3) The extent to which
the state agency is operating in the public interest by effectively providing a
needed service that should be continued rather than modified, consolidated, or
eliminated;
(4) The extent to which
the state agency duplicates the activities of other state agencies or of the
private sector, where appropriate; and
(5) The extent to which
the termination or modification of the state agency would adversely affect the
public health, safety, or welfare.
Sec. 46. RCW 43.131.080 and 1989
c 175 s 109 are each amended to read as follows:
(1) Following receipt
of the final report from the joint legislative ((budget)) audit
and review committee, the appropriate committees of reference in the senate
and the house of representatives shall each hold a public hearing, unless a
joint hearing is held, to consider the final report and any related data. The
committees shall also receive testimony from representatives of the state
agency or agencies involved, which shall have the burden of demonstrating a
public need for its continued existence; and from the governor or the
governor's designee, and other interested parties, including the general
public.
(2) When requested by
either of the presiding members of the appropriate senate and house committees
of reference, a regulatory entity under review shall mail an announcement of
any hearing to the persons it regulates who have requested notice of agency
rule-making proceedings as provided in RCW 34.05.320, or who have requested
notice of hearings held pursuant to the provisions of this section. On request
of either presiding member, such mailing shall include an explanatory statement
not exceeding one page in length prepared and supplied by the member's
committee.
(3) The presiding
members of the senate committee on ways and means and the house committee on
appropriations may designate one or more liaison members to each committee of
reference in their respective chambers for purposes of participating in any
hearing and in subsequent committee of reference discussions and to seek a
coordinated approach between the committee of reference and the committee they
represent in a liaison capacity.
(4)
Following any hearing under subsection (1) of this section by the committees of
reference, such committees may hold additional meetings or hearings to come to
a final determination as to whether a state agency has demonstrated a public
need for its continued existence or whether modifications in existing
procedures are needed. In the event that a committee of reference concludes
that a state agency shall be reestablished or modified or its functions transferred
elsewhere, it shall make such determination as a bill. No more than one state
agency shall be reestablished or modified in any one bill.
Sec. 47. RCW 43.131.110 and 1977
ex.s. c 289 s 11 are each amended to read as follows:
Any reference in this
chapter to a committee of the legislature including the joint
legislative ((budget)) audit and review committee shall also
refer to the successor of that committee.
Sec. 48. RCW 43.250.080 and 1986
c 294 s 8 are each amended to read as follows:
At the end of each
fiscal year, the state treasurer shall submit to the governor, the state
auditor, and the joint legislative ((budget)) audit and review
committee a summary of the activity of the investment pool. The summary shall
indicate the quantity of funds deposited; the earnings of the pool; the
investments purchased, sold, or exchanged; the administrative expenses of the
investment pool; and such other information as the state treasurer deems
relevant.
Sec. 49. RCW 44.40.025 and 1981 c
270 s 15 are each amended to read as follows:
In addition to the
powers and duties authorized in RCW 44.40.020, the committee and the standing
committees on transportation of the house and senate shall, in coordination
with the joint legislative ((budget)) audit and review
committee, the legislative evaluation and accountability program committee, and
the ways and means committees of the senate and house of representatives,
ascertain, study, and/or analyze all available facts and matters relating or
pertaining to sources of revenue, appropriations, expenditures, and financial
condition of the motor vehicle fund and accounts thereof, the highway safety
fund, and all other funds or accounts related to transportation programs of the
state.
The joint
legislative ((budget)) audit and review committee, the
legislative evaluation and accountability program committee, and the ways and
means committees of the senate and house of representatives shall coordinate
their activities with the legislative transportation committee in carrying out
the committees' powers and duties under chapter 43.88 RCW in matters relating
to the transportation programs of the state.
Sec. 50. RCW 67.70.310 and 1982
2nd ex.s. c 7 s 31 are each amended to read as follows:
The director of
financial management may conduct a management review of the commission's
lottery operations to assure that:
(1) The manner and time
of payment of prizes to the holder of winning tickets or shares is consistent
with this chapter and the rules adopted under this chapter;
(2) The apportionment
of total revenues accruing from the sale of lottery tickets or shares and from
all other sources is consistent with this chapter;
(3) The manner and type
of lottery being conducted, and the expenses incidental thereto, are the most
efficient and cost‑effective; and
(4) The commission is
not unnecessarily incurring operating and administrative costs.
In conducting a
management review, the director of financial management may inspect the books,
documents, and records of the commission. Upon completion of a management
review, all irregularities shall be reported to the attorney general, the joint
legislative ((budget)) audit and review committee, and the state
auditor. The director of financial management shall make such recommendations
as may be necessary for the most efficient and cost-effective operation of the
lottery.
Sec. 51. RCW 79.01.006 and 1991 c
204 s 1 are each amended to read as follows:
(1) Every five years
the department of social and health services and other state agencies that
operate institutions shall conduct an inventory of all real property subject to
the charitable, educational, penal, and reformatory institution account and
other real property acquired for institutional purposes or for the benefit of
the blind, deaf, mentally ill, developmentally disabled, or otherwise
disabled. The inventory shall identify which of those real properties are not
needed for state-provided residential care, custody, or treatment. By December
1, 1992, and every five years thereafter the department shall report the
results of the inventory to the house of representatives committee on capital
facilities and financing, the senate committee on ways and means, and the joint
legislative ((budget)) audit and review committee.
(2) Real property
identified as not needed for state-provided residential care, custody, or
treatment shall be transferred to the corpus of the charitable, educational,
penal, and reformatory institution account. This subsection shall not apply to
real property subject to binding conditions that conflict with the other
provisions of this subsection.
(3) The department of
natural resources shall manage all property subject to the charitable,
educational, penal, and reformatory institution account and, in consultation
with the department of social and health services and other affected agencies,
shall adopt a plan for the management of real property subject to the account
and other real property acquired for institutional purposes or for the benefit
of the blind, deaf, mentally ill, developmentally disabled, or otherwise
disabled.
(a) The plan shall be
consistent with state trust land policies and shall be compatible with the
needs of institutions adjacent to real property subject to the plan.
(b) The plan may be
modified as necessary to ensure the quality of future management and to address
the acquisition of additional real property.
Sec. 52. RCW 44.--.--- and 1996 c
. . . (ESSB 6680) s 4 are each amended to read as follows:
(1) Performance reviews
under this chapter shall include a rethinking of the programs and functions of
state agencies to assess whether or not they have a vital purpose or valid
mission. The director shall work to involve frontline employees, agency and
program managers, customers of the program or service, other taxpayers,
legislators, legislative staff, office of financial management staff, and other
external public and private sector experts as deemed appropriate in conducting
performance reviews. The director shall, as necessary, contract with experts
from either the private or public sector to assist in performance reviews.
(2) In preparation for
a performance review, a state agency shall identify each of its discrete
functions or activities, along with associated costs and full-time equivalent
staff, as requested by the director. In reviewing the agency or program, the
director shall identify those activities and programs that should be
strengthened, those that should be abandoned, and those that need to be
redirected or other alternatives explored. The review should consider: (a)
Whether or not the purpose for which the agency or program was created is still
valid based on the circumstances under which the program was created versus
those that exist at the time of the review; (b) the extent to which the
particular activity or function is specifically authorized in statute or is
consistent with statutory direction and intent; (c) whether or not the agency
or program is achieving the results for which it was established; (d)
alternatives for delivering the program or service, either in the public or
private sector; (e) duplication of services with other government programs or
private enterprises or gaps in services; (f) the relative priority of the
program among the agency's functions; (((c))) (g) costs or
implications of not performing the function; (((d))) (h)
citizen's individual responsibilities and freedoms; (((e))) (i)
whether or not the mission of the agency or program is attainable considering
the effect of factors and circumstances beyond the control of the agency; and
(((f))) (j) in the event of inadequate performance by the
program, the potential for a workable, affordable plan to improve performance.
(3) Performance reviews
must also determine the existence and utility of an agency or program strategic
plan that includes a concise statement of the agency's or program's mission, a
vision for future direction, measurable goals and objectives, and clear
strategies and specific timelines to achieve them. The director shall
determine the extent to which the plan: (a) Forms the basis of agency
management practices and continuous process reevaluation and improvement; (b)
can be used to clearly identify and prioritize agency functions; (c) provides a
valuable basis for legislative policy and budget deliberations; (d) is used to
ensure accountability of employees, particularly managers, for achieving
program goals, and is a primary consideration in retention and promotion of
staff; (e) is used to assess the quality and effectiveness of the agency's
programs and activities; (f) appropriately balances cost objectives, quality
objectives, and performance objectives; and (g) is useful in demonstrating
public accountability. The agency strategic plan shall provide for periodic
self-assessment by the agency to determine whether the agency is achieving the
goals and objectives of its programs. Where self-assessments have been
completed by an agency, the assessments must be incorporated into a performance
review conducted under this chapter.
(4) If the state agency
or program being reviewed has not identified acceptable organizations or
programs in the public or private sector to be used as benchmarks against which
to measure its performance, the director shall conduct a review sufficient to
recommend such benchmarks to the agency, the governor, and the legislature.
(5) As a part of each
performance review and in consultation with the director of the agency being
reviewed and the director of financial management, the director of the
legislative office of performance review shall develop recommendations
regarding statutes that inhibit or do not contribute to the agency's ability to
perform its functions effectively and efficiently.
(6) Based on the
information and conclusions compiled from the work required in subsections (1)
through (5) of this section, the director shall develop an advisory
recommendation for the governor and the legislature regarding whether an
agency, programs of an agency, or activities within an agency should be
continued, abandoned, or restructured.
Sec. 53. RCW 43.88.030 and 1996 c
. . . (ESSB 6680) s 9 are each amended to read as follows:
(1) The director of
financial management shall provide all agencies with a complete set of
instructions for submitting biennial budget requests to the director at least
three months before agency budget documents are due into the office of
financial management. The director shall provide agencies that are required
under RCW 44.40.070 to develop comprehensive six-year program and financial
plans with a complete set of instructions for submitting these program and
financial plans at the same time that instructions for submitting other budget
requests are provided. The budget document or documents shall consist of the
governor's budget message which shall be explanatory of the budget and shall
contain an outline of the proposed financial policies of the state for the
ensuing fiscal period, as well as an outline of the proposed six-year financial
policies where applicable, and shall describe in connection therewith the
important features of the budget. The message shall set forth the reasons for
salient changes from the previous fiscal period in expenditure and revenue
items and shall explain any major changes in financial policy. Attached to the
budget message shall be such supporting schedules, exhibits and other
explanatory material in respect to both current operations and capital
improvements as the governor shall deem to be useful to the legislature. The
budget document or documents shall set forth a proposal for expenditures in the
ensuing fiscal period, or six-year period where applicable, based upon the
estimated revenues as approved by the economic and revenue forecast council or
upon the estimated revenues of the office of financial management for those
funds, accounts, and sources for which the office of the economic and revenue
forecast council does not prepare an official forecast, including those
revenues anticipated to support the six-year programs and financial plans under
RCW 44.40.070. In estimating revenues to support financial plans under RCW
44.40.070, the office of financial management shall rely on information and
advice from the interagency revenue task force. Revenues shall be estimated
for such fiscal period from the source and at the rates existing by law at the
time of submission of the budget document, including the supplemental budgets
submitted in the even-numbered years of a biennium. However, the estimated
revenues for use in the governor's budget document may be adjusted to reflect
budgetary revenue transfers and revenue estimates dependent upon budgetary
assumptions of enrollments, workloads, and caseloads. All adjustments to the
approved estimated revenues must be set forth in the budget document. The
governor may additionally submit, as an appendix to each supplemental,
biennial, or six-year agency budget or to the budget document or documents, a
proposal for expenditures in the ensuing fiscal period from revenue sources
derived from proposed changes in existing statutes.
Supplemental and
biennial documents shall reflect a six-year expenditure plan consistent with
estimated revenues from existing sources and at existing rates for those
agencies required to submit six-year program and financial plans under RCW
44.40.070. Any additional revenue resulting from proposed changes to existing
statutes shall be separately identified within the document as well as related
expenditures for the six-year period.
The budget document or
documents shall also contain:
(a) Revenues classified
by fund and source for the immediately past fiscal period, those received or
anticipated for the current fiscal period, those anticipated for the ensuing
biennium, and those anticipated for the ensuing six-year period to support the
six-year programs and financial plans required under RCW 44.40.070;
(b) The undesignated
fund balance or deficit, by fund;
(c) Such additional
information dealing with expenditures, revenues, workload, performance, and
personnel as the legislature may direct by law or concurrent resolution;
(d) Such additional
information dealing with revenues and expenditures as the governor shall deem
pertinent and useful to the legislature;
(e) Tabulations showing
expenditures classified by fund, function, activity and object;
(f) A delineation of
each agency's activities, including those activities funded from nonbudgeted,
nonappropriated sources, including funds maintained outside the state treasury;
(g) Identification of
all proposed direct expenditures to implement the Puget Sound water quality
plan under chapter 90.70 RCW, shown by agency and in total; and
(h) Tabulations showing
each postretirement adjustment by retirement system established after fiscal
year 1991, to include, but not be limited to, estimated total payments made to
the end of the previous biennial period, estimated payments for the present
biennium, and estimated payments for the ensuing biennium.
(2) The budget document
or documents shall include detailed estimates of all anticipated revenues
applicable to proposed operating or capital expenditures and shall also include
all proposed operating or capital expenditures. The total of beginning
undesignated fund balance and estimated revenues less working capital and other
reserves shall equal or exceed the total of proposed applicable expenditures.
The budget document or documents shall further include:
(a) Interest,
amortization and redemption charges on the state debt;
(b) Payments of all
reliefs, judgments and claims;
(c) Other statutory expenditures;
(d) Expenditures
incident to the operation for each agency;
(e) Revenues derived
from agency operations;
(f) Expenditures and
revenues shall be given in comparative form showing those incurred or received
for the immediately past fiscal period and those anticipated for the current
biennium and next ensuing biennium, as well as those required to support the
six-year programs and financial plans required under RCW 44.40.070;
(g) A showing and
explanation of amounts of general fund and other funds obligations for debt
service and any transfers of moneys that otherwise would have been available
for appropriation;
(h) Common school
expenditures on a fiscal-year basis;
(i) A showing, by
agency, of the value and purpose of financing contracts for the lease/purchase
or acquisition of personal or real property for the current and ensuing fiscal
periods;
(j) A showing and
explanation of anticipated amounts of general fund and other funds required to
amortize the unfunded actuarial accrued liability of the retirement system
specified under chapter 41.45 RCW, and the contributions to meet such
amortization, stated in total dollars and as a level percentage of total
compensation; and
(k) For each agency, a
description of the findings and recommendations of any applicable review by the
legislative office of performance review conducted during the prior fiscal
period. The budget document must describe the potential costs and savings
associated with implementing the findings and recommendations, including any
recommendations for program eliminations and alternative delivery methods.
(3) A separate capital
budget document or schedule shall be submitted that will contain the following:
(a) A statement setting
forth a long-range facilities plan for the state that identifies and includes
the highest priority needs within affordable spending levels;
(b) A capital program
consisting of proposed capital projects for the next biennium and the two
biennia succeeding the next biennium consistent with the long-range facilities
plan. Insomuch as is practical, and recognizing emergent needs, the capital
program shall reflect the priorities, projects, and spending levels proposed in
previously submitted capital budget documents in order to provide a reliable
long-range planning tool for the legislature and state agencies;
(c) A capital plan
consisting of proposed capital spending for at least four biennia succeeding
the next biennium;
(d) A statement of the
reason or purpose for a project;
(e) Verification that a
project is consistent with the provisions set forth in chapter 36.70A RCW;
(f) A statement about
the proposed site, size, and estimated life of the project, if applicable;
(g) Estimated total
project cost;
(h) For major projects valued
over five million dollars, estimated costs for the following project
components: Acquisition, consultant services, construction, equipment, project
management, and other costs included as part of the project. Project component
costs shall be displayed in a standard format defined by the office of
financial management to allow comparisons between projects;
(i) Estimated total
project cost for each phase of the project as defined by the office of
financial management;
(j) Estimated ensuing
biennium costs;
(k) Estimated costs
beyond the ensuing biennium;
(l) Estimated
construction start and completion dates;
(m) Source and type of
funds proposed;
(n) Estimated ongoing
operating budget costs or savings resulting from the project, including staffing
and maintenance costs;
(o) For any capital
appropriation requested for a state agency for the acquisition of land or the
capital improvement of land in which the primary purpose of the acquisition or
improvement is recreation or wildlife habitat conservation, the capital budget
document, or an omnibus list of recreation and habitat acquisitions provided
with the governor's budget document, shall identify the projected costs of
operation and maintenance for at least the two biennia succeeding the next biennium.
Omnibus lists of habitat and recreation land acquisitions shall include
individual project cost estimates for operation and maintenance as well as a
total for all state projects included in the list. The document shall identify
the source of funds from which the operation and maintenance costs are proposed
to be funded;
(p) Such other
information bearing upon capital projects as the governor deems to be useful;
(q) Standard terms,
including a standard and uniform definition of maintenance for all capital
projects;
(r) Such other
information as the legislature may direct by law or concurrent resolution.
For purposes of this
subsection (3), the term "capital project" shall be defined
subsequent to the analysis, findings, and recommendations of a joint committee
comprised of representatives from the house capital appropriations committee,
senate ways and means committee, legislative transportation committee,
legislative evaluation and accountability program committee, and office of
financial management.
(4) No change affecting
the comparability of agency or program information relating to expenditures,
revenues, workload, performance and personnel shall be made in the format of
any budget document or report presented to the legislature under this section
or RCW 43.88.160(1) relative to the format of the budget document or report
which was presented to the previous regular session of the legislature during
an odd-numbered year without prior legislative concurrence. Prior legislative
concurrence shall consist of (a) a favorable majority vote on the proposal by
the standing committees on ways and means of both houses if the legislature is
in session or (b) a favorable majority vote on the proposal by members of the
legislative evaluation and accountability program committee if the legislature
is not in session.
NEW SECTION. Sec.
54. Sections 2, 9, 10, and 13
through 17 of this act are each added to chapter 44.28 RCW.
NEW SECTION. Sec.
55. RCW 44.28.140, 44.28.180,
and 44.28.087, as amended by this act, are each recodified within chapter 44.28
RCW in the order in which they appear in this act.
NEW SECTION. Sec.
56. If sections 4 and 9 of
chapter . . . , Laws of 1996 (ESSB 6680) do not become law, sections 52 and 53
of this act are null and void.
NEW SECTION. Sec.
57. The following acts or
parts of acts are each repealed:
(1) RCW 44.28.085 and 1993 c 406 s 6, 1975
1st ex.s. c 293 s 15, & 1971 ex.s. c 170 s 3; and
(2) RCW 44.28.086 and 1973 1st ex.s. c 197 s
1.
