5607-S.E

AN ACT Relating to performance audits of state government; amending RCW 44.48.070, 44.48.080, 44.48.090, 44.48.130, 44.28.110, 44.28.120, 44.28.150, 43.88.020, 43.88.090, 43.88.160, 43.132.020, 43.88A.030, 43.88A.040, 43.132.040, 28A.415.020, 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, 43.72.830, 43.79.270, 43.79.280, 43.88.205, 43.88.230, 43.88.310, 43.88.510, 43.88.899, 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, 82.33.030, 82.33.040, and 88.46.920; reenacting and amending RCW 43.88.030; adding a new chapter to Title 44 RCW; creating a new section; recodifying RCW 44.28.110, 44.28.120, 44.28.150, 44.48.070, 44.48.080, 44.28.090, and 44.28.130; and repealing RCW 44.28.010, 44.28.020, 44.28.030, 44.28.040, 44.28.050, 44.28.060, 44.28.080, 44.28.085, 44.28.086, 44.28.087, 44.28.100, 44.28.130, 44.28.140, 44.28.180, 44.28.900, 44.48.010, 44.48.020, 44.48.030, 44.48.040, 44.48.050, 44.48.060, 44.48.100, 44.48.110, 44.48.120, 44.48.140, and 44.48.900.

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. In creating the Washington performance partnership, the legislature established improved service delivery and responsiveness as significant priorities for 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.

It is the intent of the legislature to thoroughly examine all expenditures for state government. The base expenditure level for each agency and program must be subject to the same scrutiny as incremental changes to the base level. 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 other states; and alternatives for service delivery, including other levels of government and the private sector. 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.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Performance measures" means realistic estimates, generally in quantifiable terms, of what the state or any of its agencies or programs is expected to achieve.

(2) "Performance audit" means an objective and systematic assessment of state government or any of its agencies, programs, functions, or activities, or any 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, program audits, and performance verifications.

(3) "Economy and efficiency audits" means performance audits that establish: (a) Whether the state or any of its agencies 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 or any of its agencies has complied with significant laws and rules in acquiring, protecting, and using its resources.

(4) "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.

(5) "Performance verification" means an analysis that verifies: (a) The accuracy of data used by state agencies in quantifying intended results and measuring performance toward those results; and (b) whether the reported results were achieved.

(6) "Director" means the director of the legislative office of performance audit and fiscal analysis.

NEW SECTION. Sec. 3. The joint committee on performance audits is established.

(1) The committee shall consist of:

(a) The majority leader of the senate;

(b) The speaker of the house of representatives;

(d) The minority leader of the house of representatives;

(e) The chair and ranking minority member of the senate ways and means committee;

(f) The chair and ranking minority member of the house of representatives appropriations committee; and

(g) Four additional members, one each from the majority and minority caucuses of the senate and the house of representatives.

(2) The chair of the committee shall be selected by the committee, to serve for a period not to exceed one year. The chair shall alternate between the members of the senate and the house of representatives, and between each political party.

(3) Members of the committee shall serve without additional compensation but shall be reimbursed for travel expenses in accordance with RCW 44.04.120 while attending meetings of the committee or any subcommittee or on other business authorized by the committee.

(4) An executive committee is established consisting of the majority leader and minority leader of the senate and the speaker and minority leader of the house of representatives. The function of the executive committee is to appoint the director. Approval by an affirmative vote of at least three members of the committee is required for any decisions regarding employment of the director. Employment of the director shall terminate after each term of three years. At the end of the first year of each three-year term, the executive committee shall consider extension of the term by one year. However, at any time during the term of office, the employment of the director may be terminated by a unanimous vote of the executive committee. The salary of the director shall be set by the executive committee.

(5) The director shall hire additional staff and direct the performance review and fiscal analysis functions described in this chapter.

NEW SECTION. Sec. 4. (1) The director shall establish and manage a legislative office of performance audit and fiscal analysis to carry out the functions described in this chapter.

(2) In consultation with the executive committee, the director is empowered to select and employ personnel necessary to carry out the purposes of this act and fix their salary. Salaries for employees of the legislative office of performance audit and fiscal analysis, other than the director, shall be set with the approval of the executive committee, the secretary of the senate, and the chief clerk of the house of representatives.

NEW SECTION. Sec. 5. (1) The director shall have the primary responsibility for performance audits of state agencies, programs, functions, and activities, including economy and efficiency audits and program audits.

(2) The director shall work in consultation with the state auditor to conduct performance audits and performance verification. The director shall also work closely with the chairs and staff of standing committees of the senate and house of representatives.

(3) In conducting performance audits, the director shall use public and private independent professional and technical experts as necessary in conducting performance audits.

(4) The director shall involve front-line employees and internal auditors to the degree possible in the performance audit process.

(5) The legislative office of performance audit and fiscal analysis shall work with the Washington performance partnership 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 shall be the basis for performance audits carried out under this chapter.

(6) A provision of law directing the director, or another entity, to conduct a performance audit of any state agency, program, or function shall be deemed a request to the joint committee on performance audits to direct the director to undertake that audit. The request shall be considered by the joint committee for inclusion in the subsequent annual audit plan approved by the joint committee.

(7) Subject to the requirements of the annual performance audit plan approved by the joint committee, performance audits may require the director to:

(a) Determine whether an agency, program, or function is using its resources economically and efficiently;

(b) Identify causes for inefficient or uneconomical practices;

(d) Determine the extent to which results desired by the legislature are being achieved;

(e) Identify causes for not achieving desired results;

(f) Examine the costs and benefits of agency programs, functions, and activities;

(g) Identify viable alternatives for reducing costs or improving service delivery, including elimination of functions or transferring functions to the private sector;

(h) Identify gaps and overlaps in service delivery, along with corrective action; and

(i) Identify agencies, programs, functions, and processes that can be improved with the assistance of the Washington performance partnership to redesign and improve processes.

(8) The legislative office of performance audit and fiscal analysis shall develop information system capabilities necessary for the performance review requirements of this chapter.

(9) The joint committee on performance audits shall receive a copy of each report of examination issued by the state auditor under RCW 43.09.310, shall review the reports, and shall make the recommendations to the legislature and the state auditor as it deems appropriate.

NEW SECTION. Sec. 6. In examining state agencies and programs subject to the annual audit plan, the director shall thoroughly examine all expenditures. The base expenditure level for each agency and program shall be examined without consideration of or reference to past incremental funding provided to the agency or program.

The zero-base review shall include a delineation of the costs and full-time equivalent staff associated with each discreet program, function, and activity included in the base budget. The review should also include estimates of administrative costs and staffing levels and, where appropriate, an estimate of the amount of funds that reach the intended recipients of the program or activity.

NEW SECTION. Sec. 7. The legislative office of performance audit and fiscal analysis shall coordinate a process for procurement, independent analysis, and distribution of legislative fiscal notes to all standing committees of the senate and house of representatives under chapters 43.88A and 43.132 RCW. Requests for fiscal notes to state agencies shall be transmitted by the office, and completed fiscal notes shall be submitted to the office.

Upon receipt of fiscal notes from state agencies, the office shall analyze each note. Based on an independent analysis, the director shall either endorse the fiscal note as submitted, facilitate revision of the fiscal note by the submitting agency, or prepare a replacement or amended fiscal note that will be the approved fiscal note for consideration before committees of the legislature. No fiscal notes shall be submitted to standing committees of the legislature without the approval of the director or a designee.

The office shall facilitate the timely revision of fiscal notes to reflect legislative action on pending legislation.

In conducting performance audits, the director shall 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.

The office shall work with the staff of the standing committees of the legislature to improve understanding and evaluation of fiscal notes of legislation pending in those committees. In addition, the director shall recommend to the joint committee on performance audits additional modifications intended to improve the objectivity and timeliness of fiscal notes necessary for legislative consideration.

NEW SECTION. Sec. 8. (1) Prior to the completion of each legislative session, the joint committee on performance audits shall approve a performance audit plan for the subsequent twelve to fifteen-month period. The audit plan shall include a schedule of agencies, programs, and activities for which performance audits will be initiated during the period. The audit plan shall include timelines for the start and completion of each audit. The plan shall also identify the role of the legislative office of performance audit and fiscal analysis, the state auditor, and public and private sector experts necessary to complete each performance audit. The director may submit revisions to the plan for consideration by the joint committee throughout the year.

In developing a draft plan for submission to the joint committee, the director shall consult with the state auditor, the director of financial management, chairs and staff of appropriate legislative committees, and representatives of state employee organizations.

(2) When the director has completed a performance audit authorized in the annual performance audit plan, the director shall transmit the audit to the affected state or local agency for its comments. The agency shall provide any response to the director within thirty days after receipt of the performance audit. The response of the agency shall be incorporated into the final performance audit report.

(3) Before releasing the results of any performance audit to the legislature or the public, the director shall submit the performance audit to the joint committee on performance audits for its review and comment. Upon consideration and incorporation of the review and comments of the joint committee, the director shall transmit the final performance audit report to the agency, the director of financial management, and appropriate legislative committees and shall make the report available for public review.

NEW SECTION. Sec. 9. The performance audit revolving fund is established in the state treasury. Expenditures from the fund may be spent only by appropriation. The fund is established to assist in recovering the costs of performance audits and zero-based budget reviews from the audited agency or program. Subject to appropriation, the director shall assess agencies all or a portion of the cost of performance audits and zero-based budget reviews.

The cost of performance audits and budget reviews shall include all direct and indirect costs and any other expenses incurred by the director in fulfilling his or her statutory responsibilities.

Costs of audits may also be paid from other funds appropriated to the legislative office of performance audit and fiscal analysis.

NEW SECTION. Sec. 10. To ensure the accuracy and timeliness of information used as the basis for performance audits and other responsibilities of the legislature, the director shall be provided direct and unrestricted access to information held by any state agency. Agencies shall submit directly to the legislature, on a confidential basis, all data and other information requested, including tax records and client data.

Sec. 11. RCW 44.48.070 and 1977 ex.s. c 373 s 7 are each amended to read as follows:

The joint committee on performance audits, in consultation with the legislative systems administrative committee under RCW 44.68.030, shall acquire a data processing service capability under the exclusive jurisdiction and control of the legislature acting through the committee and ((~~its administrator~~)) the director of the legislative office of performance audit and fiscal analysis for the purpose of providing the legislature and its staff with the type of information required for in-depth analysis and monitoring of state agency expenditures, budgets, and related fiscal matters. ((~~The legislative evaluation and accountability program established in this section may be referred to in this chapter as the LEAP administration.~~))

Sec. 12. RCW 44.48.080 and 1977 ex.s. c 373 s 8 are each amended to read as follows:

To carry out the provisions of RCW 44.48.070 (as recodified by this act) the ((~~LEAP administration~~)) joint committee on performance audits shall provide for:

(1) Automated data bases and application systems in support of legislative requirements to monitor, evaluate, analyze, report, and review;

(2) Maintenance of computer software, application programs, data bases, and related documentation;

(3) Education, training, and programming services;

(4) Procedural documentation support; and

(5) Consulting assistance on special projects.

Sec. 13. RCW 44.48.090 and 1979 c 151 s 158 are each amended to read as follows:

The joint committee on performance audits shall have the following powers:

(1) To have timely access, upon written request of the ((~~administrator~~)) director of the legislative office of performance audit and fiscal analysis, to all machine readable, printed, and other data of state agencies relative to expenditures, budgets, and related fiscal matters;

(2) To suggest changes relative to state accounting and reporting systems to the office of financial management or its successor and to require timely written responses to such suggestions; and

(3) To enter into contracts; and when entering into any contract for computer access, make necessary provisions relative to the scheduling of computer time and usage in recognition of the unique requirements and priorities of the legislative process.

Sec. 14. RCW 44.48.130 and 1977 ex.s. c 373 s 13 are each amended to read as follows:

The joint committee on performance audits is hereby expressly exempted from the provisions of chapter 43.105 RCW.

Sec. 15. RCW 44.28.110 and 1955 c 206 s 8 are each amended to read as follows:

In the discharge of any duty herein imposed, the joint committee on performance audits or any personnel under its authority and its subcommittees shall have the authority to examine and inspect all properties, equipment, facilities, files, records and accounts of any state office, department, institution, board, committee, commission or agency, and to administer oaths, issue subpoenas, compel the attendance of witnesses and the production of any papers, books, accounts, documents and testimony, and to cause the deposition of witnesses, either residing within or without the state, to be taken in the manner prescribed by laws for taking depositions in civil actions in the superior courts.

Sec. 16. 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 on performance audits, 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 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. 17. RCW 44.28.150 and 1975 1st ex.s. c 293 s 18 are each amended to read as follows:

The joint committee on performance audits shall cooperate, act, and function with legislative committees and with the councils or committees of other states similar to this committee and with other interstate research organizations.

Sec. 18. RCW 43.88.020 and 1994 c 184 s 9 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, written statement 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 ((~~legislative budget committee, the legislative evaluation and accountability program~~)) joint committee on performance audits, 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) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.

(20) "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) "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) "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) "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) "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) "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) "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) "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) "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.))

Sec. 19. 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 shall include consideration of findings made by the director of the legislative office of performance audit and fiscal analysis pursuant to 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. 20. 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;

(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 annual performance audit plan approved by the joint committee on performance audits. 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 ((~~legislative budget~~)) joint committee on performance audits or other appropriate committees of the legislature, in a manner prescribed by the ((~~legislative budget~~)) joint committee on performance audits, 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~~)) The results of a performance audit or performance verification conducted by the state auditor shall be transmitted only to the director of the legislative office of performance audit and fiscal analysis for incorporation into the final performance audit report, subject to review and comment by the affected state agency under section 8(2) of this act.

(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 legislative budget committee may:~~

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

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

~~(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. 21. RCW 43.132.020 and 1984 c 125 s 16 are each amended to read as follows:

The director of financial management or the director's designee shall, in cooperation with appropriate legislative committees and legislative staff, establish a mechanism for the determination of the fiscal impact of proposed legislation which if enacted into law would directly or indirectly increase or decrease revenues received or expenditures incurred by counties, cities, towns, or any other political subdivisions of the state. The office of financial management shall, when requested by a member of the state legislature, report in writing as to such fiscal impact and said report shall be known as a "fiscal note".

Such fiscal notes shall indicate by fiscal year the total impact on the subdivisions involved for the first two years the legislation would be in effect and also a cumulative six year forecast of the fiscal impact. Where feasible and applicable, the fiscal note also shall indicate the fiscal impact on each individual county or on a representative sampling of cities, towns, or other political subdivisions.

A fiscal note as defined in this section shall be provided only upon request of the joint committee on performance audits on behalf of any member of the state legislature. ((~~A legislator~~)) The joint committee also may request that such a fiscal note be revised to reflect the impact of proposed amendments or substitute bills. Fiscal notes shall be completed within seventy-two hours of the request unless a longer time period is allowed by the ((~~requesting legislator~~)) joint committee. In the event a fiscal note has not been completed within seventy-two hours of a request, a daily report shall be prepared for the ((~~requesting legislator~~)) joint committee by the director of financial management which report summarizes the progress in preparing the fiscal note. If the request is referred to the director of community, trade, and economic development, the daily report shall also include the date and time such referral was made.

Sec. 22. RCW 43.88A.030 and 1986 c 158 s 16 are each amended to read as follows:

When a fiscal note is prepared and approved as to form, accuracy, and completeness by the office of financial management, which depicts the expected fiscal impact of a bill or resolution, copies shall be filed immediately with((:

~~(1) The chairperson of the committee to which the bill or resolution was referred upon introduction in the house of origin;~~

~~(2) The senate committee on ways and means, or its successor; and~~

~~(3) The house committees on revenue and appropriations, or their successors~~)) the joint committee on performance audits.

Whenever possible, such fiscal note shall be provided prior to or at the time the bill or resolution is first heard by the committee of reference in the house of origin.

((When a fiscal note has been prepared for a bill or resolution, a copy of the fiscal note shall be placed in the bill books or otherwise attached to the bill or resolution and shall remain with the bill or resolution throughout the legislative process insofar as possible.))

Sec. 23. RCW 43.88A.040 and 1979 c 151 s 148 are each amended to read as follows:

The office of financial management shall also provide a fiscal note on any legislative proposal at the request of the joint committee on performance audits on behalf of any legislator. ((~~Such~~)) The fiscal note shall be returned to the requesting legislator, and copies shall be filed with the appropriate legislative committees ((~~pursuant to~~)) under RCW 43.88A.030 at the time ((~~such~~)) the proposed legislation is introduced in either house.

Sec. 24. RCW 43.132.040 and 1986 c 158 s 18 are each amended to read as follows:

When a fiscal note is prepared and approved as to form and completeness by the director of financial management, the director shall transmit copies immediately to((:

~~(1) The requesting legislator;~~

(2) With respect to proposed legislation held by the senate, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairperson of the ways and means committee, the chairperson of the local government committee, and the secretary of the senate; and

(3) With respect to proposed legislation held by the house of representatives, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairpersons of the revenue and taxation and appropriations committees, the chairperson of the local government committee, and the chief clerk of the house of representatives)) the joint committee on performance audits.

Sec. 25. RCW 28A.415.020 and 1990 c 33 s 415 are each amended to read as follows:

(1) Certificated personnel shall receive for each ten clock hours of approved in-service training attended the equivalent of a one credit college quarter course on the salary schedule developed by the ((~~legislative evaluation and accountability program~~)) joint committee on performance audits.

(2) Certificated personnel shall receive for each ten clock hours of approved continuing education earned, as continuing education is defined by rule adopted by the state board of education, the equivalent of a one credit college quarter course on the salary schedule developed by the ((~~legislative evaluation and accountability program~~)) joint committee on performance audits.

(3) An approved in-service training program shall be a program approved by a school district board of directors, which meet standards adopted by the state board of education, and the development of said program has been participated in by an in-service training task force whose membership is the same as provided under RCW 28A.415.040, or a program offered by an education agency approved to provide in-service for the purposes of continuing education as provided for under rules adopted by the state board of education, or both.

(4) Clock hours eligible for application to the salary schedule developed by the ((~~legislative evaluation and accountability program~~)) joint committee on performance audits as described in subsections (1) and (2) of this section, shall be those hours acquired after August 31, 1987.

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 ((~~legislative budget committee~~)) joint committee on performance audits 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;

(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~~)) land or any part thereof or any improvement thereon, or any lease or renewal or extension of any lease of ((~~said~~)) 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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 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 committees of the senate or the house of representatives or the ((~~legislative budget committee~~)) joint committee on performance audits or any successor committees. It is not intended by this proviso that unrelated records, books, accounts and/or 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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 ((~~legislative budget committee~~)) joint committee on performance audits.

(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 ((~~legislative budget committee~~)) joint committee on performance audits 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 1994 c 264 s 13 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, legislative budget committee~~)) the joint committee on performance audits, 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;

(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) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050: PROVIDED, HOWEVER, That rules adopted by the Washington personnel resources board pursuant to RCW 41.06.150 regarding the basis for, and procedures to be followed for, the dismissal, suspension, or demotion of an employee, and appeals therefrom shall be fully applicable to liquor vendors except those part time agency vendors employed by the liquor control board when, in addition to the sale of liquor for the state, they sell goods, wares, merchandise, or services as a self-sustaining private retail business;

(x) 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;

(y) 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;

(z) All employees of the marine employees' commission;

(aa) 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 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) (x) and (y) 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 ((~~legislative budget committee~~)) joint committee on performance audits.

Sec. 35. RCW 43.09.310 and 1981 c 217 s 1 are each amended to read as follows:

The state auditor, through the division of departmental audits, 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 attorney general, one to the state department audited, one to the ((~~legislative budget committee~~)) joint committee on performance audits, 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. For purposes of reporting the annual audit of state-wide combined financial statements, "state department audited" refers solely to the office of financial management.

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 ((~~legislative budget committee~~)) joint committee on performance audits 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 43.72.830 and 1993 c 492 s 476 are each amended to read as follows:

(1) By July 1, 1997, the ((~~legislative budget committee~~)) joint committee on performance audits either directly or by contract shall conduct the following study:

A study to determine the desirability and feasibility of consolidating the following programs, services, and funding sources into the delivery and financing of uniform benefits package services through certified health plans:

(a) State and federal veterans' health services;

(b) Civilian health and medical program of the uniformed services (CHAMPUS) of the federal department of defense and other federal agencies; and

(2) The ((~~legislative budget committee~~)) joint committee on performance audits shall evaluate the implementation of the provisions of chapter 492, Laws of 1993. The study shall determine to what extent chapter 492, Laws of 1993 has been implemented consistent with the principles and elements set forth in chapter 492, Laws of 1993 and shall report its findings to the governor and appropriate committees of the legislature by July 1, 2003.

Sec. 38. 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 ((~~legislative budget committee~~)) joint committee on performance audits 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. 39. 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 or she shall endorse on each copy of the statement his or her 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 ((~~legislative budget committee~~)) joint committee on performance audits 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. 40. RCW 43.88.030 and 1994 c 247 s 7 and 1994 c 219 s 2 are each reenacted and 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;

(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; and

(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.

(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;

(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~~)) joint committee on performance audits, 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~~)) joint committee on performance audits if the legislature is not in session.

Sec. 41. 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 ((~~legislative budget committee,~~)) joint committee on performance audits or 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. 42. 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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. 43. RCW 43.88.310 and 1993 c 157 s 1 are each amended to read as follows:

(1) The ((~~legislative auditor~~)) director of the legislative office of performance audit and fiscal analysis, with the concurrence of the ((~~legislative budget committee~~)) joint committee on performance audits, may file with the attorney general any audit exceptions or other findings of any performance audit, management study, or special report prepared for the ((~~legislative budget committee~~)) joint committee on performance audits, 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~~)) director of the legislative office of performance audit and fiscal analysis 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 ((~~legislative budget committee~~)) joint committee on performance audits of the status of exceptions or findings referred under this section.

Sec. 44. 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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. 45. RCW 43.88.899 and 1986 c 215 s 8 are each amended to read as follows:

The amendments to chapter 43.88 RCW by chapter 215, Laws of 1986 are intended to improve the reporting of state budgeting, accounting, and other fiscal data. The ((~~legislative evaluation and accountability program~~)) joint committee on performance audits shall periodically review chapter 43.88 RCW and shall recommend further revisions if needed.

Sec. 46. RCW 43.131.050 and 1990 c 297 s 2 are each amended to read as follows:

The ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits. The ((~~legislative budget committee~~)) joint committee on performance audits shall prepare a final report that includes the reports of both the office of financial management and the ((~~legislative budget committee~~)) joint committee on performance audits. The ((~~legislative budget committee~~)) joint committee on performance audits 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 ((~~legislative budget committee~~)) joint committee on performance audits shall transmit the final report to the legislature, to the state agency concerned, to the governor, and to the state library.

Sec. 47. 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 ((~~legislative budget committee~~)) joint committee on performance audits 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. 48. 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 ((~~legislative budget committee~~)) joint committee on performance audits 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. 49. 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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. 50. 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 ((~~legislative budget committee~~)) joint committee on performance audits shall also refer to the successor of that committee.

Sec. 51. 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 ((~~legislative budget committee~~)) joint committee on performance audits 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. 52. 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 ((~~legislative budget committee, the legislative evaluation and accountability program committee,~~)) joint committee on performance audits 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 ((~~legislative budget committee, the legislative evaluation and accountability program committee,~~)) joint committee on performance audits 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. 53. 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 ((~~legislative budget committee~~)) joint committee on performance audits, 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. 54. 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 ((~~legislative budget committee~~)) joint committee on performance audits.

(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. 55. RCW 82.33.030 and 1984 c 138 s 3 are each amended to read as follows:

The ((~~administrator of the legislative evaluation and accountability program committee~~)) director of the legislative office of performance audit and fiscal analysis may request, and the supervisor shall provide, alternative economic and revenue forecasts based on assumptions specified by the ((~~administrator~~)) director of the legislative office of performance audit and fiscal analysis.

Sec. 56. RCW 82.33.040 and 1986 c 158 s 23 are each amended to read as follows:

(1) To promote the free flow of information and to promote legislative input in the preparation of forecasts, immediate access to all information relating to economic and revenue forecasts shall be available to the economic and revenue forecast work group, hereby created. Revenue collection information shall be available to the economic and revenue forecast work group the first business day following the conclusion of each collection period. The economic and revenue forecast work group shall consist of one staff member selected by the executive head or chairperson of each of the following agencies or committees:

(a) Department of revenue;

(b) Office of financial management;

(d) Ways and means committee of the senate; and

(e) Ways and means committee of the house of representatives.

(2) The economic and revenue forecast work group shall provide technical support to the economic and revenue forecast council. Meetings of the economic and revenue forecast work group may be called by any member of the group for the purpose of assisting the economic and revenue forecast council, reviewing the state economic and revenue forecasts, or reviewing monthly revenue collection data or for any other purpose which may assist the economic and revenue forecast council.

Sec. 57. RCW 88.46.920 and 1991 c 200 s 429 are each amended to read as follows:

On or before November 15, 1996, the ((~~legislative budget committee~~)) joint committee on performance audits shall prepare a report to the legislature on the means for future implementation of the provisions in chapter 88.46 RCW.

NEW SECTION. Sec. 58. (1) The legislative budget committee and the legislative evaluation and accountability program (LEAP) are hereby abolished and their powers, duties, and functions are hereby transferred to the joint committee on performance audits. All references to the legislative budget committee and the legislative evaluation and accountability program (LEAP) in the Revised Code of Washington shall be construed to mean the director of the legislative office of performance audit and fiscal analysis or the joint committee on performance audits.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall be delivered to the custody of the joint committee on performance audits. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall be made available to the joint committee on performance audits. All funds, credits, or other assets held by the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall be assigned to the joint committee on performance audits.

(b) Any appropriations made to the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall, on the effective date of this section, be transferred and credited to the joint committee on performance audits.

(c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

(3) All employees of the legislative budget committee and the legislative evaluation and accountability program (LEAP) are transferred to the jurisdiction of the joint committee on performance audits. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the joint committee on performance audits to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

(4) All rules and all pending business before the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall be continued and acted upon by the joint committee on performance audits. All existing contracts and obligations shall remain in full force and shall be performed by the joint committee on performance audits.

(5) The transfer of the powers, duties, functions, and personnel of the legislative budget committee and the legislative evaluation and accountability program (LEAP) shall not affect the validity of any act performed before the effective date of this section.

(6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

(7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 59. Sections 1 through 10 of this act shall constitute a new chapter in Title 44 RCW.

NEW SECTION. Sec. 60. RCW 44.28.110, 44.28.120, 44.28.150, 44.48.070, 44.48.080, 44.28.090, and 44.28.130 are each recodified as sections in the new chapter created in section 59 of this act.

NEW SECTION. Sec. 61. The following acts or parts of acts are each repealed:

(1) RCW 44.28.010 and 1983 c 52 s 1, 1980 c 87 s 30, 1969 c 10 s 4, 1967 ex.s. c 114 s 1, 1963 ex.s. c 20 s 1, 1955 c 206 s 4, & 1951 c 43 s 1;

(2) RCW 44.28.020 and 1980 c 87 s 31, 1969 c 10 s 5, 1955 c 206 s 5, & 1951 c 43 s 12;

(3) RCW 44.28.030 and 1955 c 206 s 6 & 1951 c 43 s 13;

(4) RCW 44.28.040 and 1975-'76 2nd ex.s. c 34 s 134 & 1951 c 43 s 14;

(5) RCW 44.28.050 and 1989 c 137 s 1, 1955 c 206 s 7, & 1951 c 43 s 15;

(6) RCW 44.28.060 and 1975 1st ex.s. c 293 s 13 & 1951 c 43 s 2;

(7) RCW 44.28.080 and 1975 1st ex.s. c 293 s 14, 1955 c 206 s 10, & 1951 c 43 s 4;

(8) 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;

(9) RCW 44.28.086 and 1973 1st ex.s. c 197 s 1;

(10) RCW 44.28.087 and 1973 1st ex.s. c 197 s 2;

(11) RCW 44.28.100 and 1987 c 505 s 45, 1975 1st ex.s. c 293 s 16, & 1951 c 43 s 6;

(12) RCW 44.28.130 and 1951 c 43 s 10;

(13) RCW 44.28.140 and 1975 1st ex.s. c 293 s 17, 1955 c 206 s 9, & 1951 c 43 s 11;

(14) RCW 44.28.180 and 1993 c 406 s 5;

(15) RCW 44.28.900 and 1951 c 43 s 16;

(16) RCW 44.48.010 and 1980 c 87 s 40 & 1977 ex.s. c 373 s 1;

(17) RCW 44.48.020 and 1980 c 87 s 41 & 1977 ex.s. c 373 s 2;

(18) RCW 44.48.030 and 1980 c 87 s 42 & 1977 ex.s. c 373 s 3;

(19) RCW 44.48.040 and 1977 ex.s. c 373 s 4;

(20) RCW 44.48.050 and 1977 ex.s. c 373 s 5;

(21) RCW 44.48.060 and 1977 ex.s. c 373 s 6;

(22) RCW 44.48.100 and 1987 c 505 s 46 & 1977 ex.s. c 373 s 10;

(23) RCW 44.48.110 and 1977 ex.s. c 373 s 11;

(24) RCW 44.48.120 and 1977 ex.s. c 373 s 12;

(25) RCW 44.48.140 and 1977 ex.s. c 373 s 14; and

(26) RCW 44.48.900 and 1977 ex.s. c 373 s 16.