H-2133

AN ACT Relating to state government reorganization; amending RCW 72.09.040, 43.17.020, 43.17.010, and 43.17.020; reenacting and amending RCW 43.17.010; adding new sections to chapter 41.06 RCW; adding a new section to chapter 72.09 RCW; adding a new section to chapter 43.20A RCW; adding new chapters to Title 43 RCW; creating new sections; providing effective dates; providing contingent effective dates; providing expiration dates; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that the department of social and health services is required to perform an overwhelming number of responsibilities. Due to this, the department of social and health services has grown to an unmanageable and unwieldy bureaucracy that cannot function effectively and must be reorganized. The legislature further recognizes that changes in federal law have affected service delivery. It is the intent of this legislature to reorganize the department of social and health services and to divide its functions among four newly created and one existing state agency. The legislature further intends to consolidate within these new agencies related functions performed by other existing state agencies.

PART 1

DEPARTMENT OF MEDICAL ASSISTANCE

NEW SECTION. Sec. 101. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of medical assistance.

(2) "Director" means the director of medical assistance.

NEW SECTION. Sec. 102. There is created a department of state government to be known as the department of medical assistance. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 103. (1) All powers, duties, and functions of the department of social and health services pertaining to medical assistance are transferred to the department of medical assistance. This includes all functions performed by the medical assistance administration as it existed on November 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of medical assistance when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of social and health services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of medical assistance. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services in carrying out the powers, functions, and duties transferred shall be made available to the department of medical assistance. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of medical assistance.

(b) Any appropriations made to the department of social and health services for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of medical assistance.

(c) Whenever 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 department of social and health services engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of medical assistance. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of medical assistance 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 department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of medical assistance. All existing contracts and obligations shall remain in full force and shall be performed by the department of medical assistance.

(5) The transfer of the powers, duties, functions, and personnel of the department of social and health services 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. 104. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 105. (1) The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. In creating administrative structures, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions.

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

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

NEW SECTION. Sec. 106. The director may appoint such advisory committees or councils as required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state-wide committees or councils on such subject matters as are or come within the department's responsibilities. The state-wide committees and councils shall have representation from both major political parties and shall have substantial consumer representation. The committees or councils shall be constituted as required by federal law or as the director may determine. The members of the committees or councils shall hold office as follows: One-third to serve one year; one-third to serve two years; and one-third to serve three years. Upon expiration of the original terms, subsequent appointments shall be for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member may serve more than two consecutive terms.

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

NEW SECTION. Sec. 107. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 108. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of medical assistance to the director, the director's personal secretary, all assistant directors, and one confidential secretary for each assistant director.

PART 2

DEPARTMENT OF LONG-TERM CARE SERVICES

NEW SECTION. Sec. 201. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of long-term care services.

(2) "Director" means the director of long-term care services.

NEW SECTION. Sec. 202. There is created a department of state government to be known as the department of long-term care services. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 203. (1) All powers, duties, and functions of the department of social and health services pertaining to long-term care and health are transferred to the department of long-term care and health. This includes all functions performed by the aging and adult services administration and the health and rehabilitative services administration except vocational rehabilitation as they existed on November 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of long-term care services when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of social and health services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of long-term care services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services in carrying out the powers, functions, and duties transferred shall be made available to the department of long-term care services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of long-term care services.

(3) All employees of the department of social and health services engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of long-term care services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of long-term care services 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 department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of long-term care services. All existing contracts and obligations shall remain in full force and shall be performed by the department of long-term care services.

NEW SECTION. Sec. 204. (1) All powers, duties, and functions of the department of health relating to boarding homes, adult family homes, and nursing homes are transferred to the department of long-term care services. All references to the secretary of health and the department of health in the Revised Code of Washington shall be construed to mean the director or the department of long-term care services when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of health pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of long-term care services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of health in carrying out the powers, functions, and duties transferred shall be made available to the department of long-term care services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of long-term care services.

(b) Any appropriations made to the department of health for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of long-term care services.

(3) All employees of the department of health engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of long-term care services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of long-term care services 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 department of health pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of long-term care services. All existing contracts and obligations shall remain in full force and shall be performed by the department of long-term care services.

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

NEW SECTION. Sec. 205. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 206. (1) The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. In creating administrative structures, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions.

NEW SECTION. Sec. 207. The director may appoint such advisory committees or councils as required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state-wide committees or councils on such subject matters as are or come within the department's responsibilities. The state-wide committees and councils shall have representation from both major political parties and shall have substantial consumer representation. The committees or councils shall be constituted as required by federal law or as the director may determine. The members of the committees or councils shall hold office as follows: One-third to serve one year; one-third to serve two years; and one-third to serve three years. Upon expiration of the original terms, subsequent appointments shall be for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member may serve more than two consecutive terms.

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

NEW SECTION. Sec. 208. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 209. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of long-term care services to the director, the director's personal secretary, all assistant directors, and one confidential secretary for each assistant director.

PART 3

DEPARTMENT OF CHILDREN AND FAMILY SERVICES

NEW SECTION. Sec. 301. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

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

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

NEW SECTION. Sec. 302. The department of children and family services is created. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 303. (1)(a) All powers, duties, and functions of the department of social and health services pertaining to children and family services are transferred to the department of children and family services. This includes all functions performed by the children's administration except those child protective services functions transferred in section 310 of this act, as they existed on November 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of children and family services when referring to the functions transferred in this section.

(b) All powers, duties, and functions of the department of community, trade, and economic development pertaining to early childhood education assistance programs, head start programs, and youth violence contracts are transferred to the department of children and family services. All references to the director or the department of community, trade, and economic development in the Revised Code of Washington shall be construed to mean the director or the department of children and family services when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of social and health services or the department of community, trade, and economic development pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of children and family services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services or the department of community, trade, and economic development in carrying out the powers, functions, and duties transferred shall be made available to the department of children and family services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of children and family services.

(b) Any appropriations made to the department of social and health services or the department of community, trade, and economic development for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of children and family services.

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

(3) All employees of the department of social and health services and the department of community, trade, and economic development engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of children and family services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of children and family services 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 department of social and health services or the department of community, trade, and economic development pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of children and family services. All existing contracts and obligations shall remain in full force and shall be performed by the department of children and family services.

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

NEW SECTION. Sec. 304. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 305. (1) The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. In creating administrative structures, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions.

NEW SECTION. Sec. 306. The director may appoint such advisory committees or councils as required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state-wide committees or councils on such subject matters as are or come within the department's responsibilities. The state-wide committees and councils shall have representation from both major political parties and shall have substantial consumer representation. The committees or councils shall be constituted as required by federal law or as the director may determine. The members of the committees or councils shall hold office as follows: One-third to serve one year; one-third to serve two years; and one-third to serve three years. Upon expiration of the original terms, subsequent appointments shall be for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member may serve more than two consecutive terms.

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

NEW SECTION. Sec. 307. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 308. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of children and family services to the director, the director's personal secretary, all assistant directors, and one confidential secretary for each assistant director.

NEW SECTION. Sec. 309. A new section is added to chapter 72.09 RCW to read as follows:

(1)(a) All powers, duties, and functions of the department of social and health services pertaining to juvenile rehabilitation and the juvenile justice system are transferred to the department of corrections and to the department of children and family services in accordance with the provisions of chapter . . ., Laws of 1997 (this act).

(b) All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the secretary or the department of corrections or the director or the department of children and family services when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of social and health services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of corrections or the department of children and family services, as determined by the office of financial management. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services in carrying out the powers, functions, and duties transferred shall be made available to either the department of corrections or the department of children and family services, as determined by the office of financial management. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of corrections or the department of children and family services, as determined by the office of financial management.

(3) All employees of the department of social and health services engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of corrections or the department of children and family services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of corrections or the department of children and family services 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 department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by either the department of corrections or the department of children and family services, as determined by the office of financial management. All existing contracts and obligations shall remain in full force and shall be performed by the department of corrections or the department of children and family services, as determined by the office of financial management.

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

NEW SECTION. Sec. 310. A new section is added to chapter 43.20A RCW to read as follows:

(1) All powers, duties, and functions of the department of social and health services pertaining to child protective services are transferred to the department of children and family services and county sheriffs in accordance with chapter . . ., Laws of 1997 (this act). All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of children and family services and county sheriffs when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of social and health services pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of children and family services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of social and health services in carrying out the powers, functions, and duties transferred shall be made available to the department of children and family services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of children and family services.

(3) All employees of the department of social and health services engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of children and family services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of children and family services 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 department of social and health services pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of children and family services and county sheriffs. All existing contracts and obligations shall remain in full force and shall be performed by the department of children and family services and county sheriffs.

PART 4

DEPARTMENT OF EMPLOYMENT SERVICES

NEW SECTION. Sec. 401. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of employment services.

(2) "Director" means the director of employment services.

NEW SECTION. Sec. 402. There is hereby created a department of state government to be known as the department of employment services. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 403. (1)(a) All powers, duties, and functions of the department of social and health services pertaining to economic services are transferred to the department of employment services. This includes all functions performed by the economic services administration as it existed on November 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of employment services when referring to the functions transferred in this subsection (1)(a).

(b) All powers, duties, and functions of the department of social and health services pertaining to vocational rehabilitation services are transferred to the department of employment services. This includes all functions performed by the division of vocational rehabilitation as it existed on November 1, 1996. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of employment services when referring to the functions transferred in this subsection (1)(b).

(c) All powers, duties, and functions of the department of labor and industries relating to the provision of vocational rehabilitation services to injured workers under Title 51 RCW are transferred to the department of employment services. All references to the director or the department of labor and industries in the Revised Code of Washington shall be construed to mean the director or the department of employment services when referring to the functions transferred in this subsection (1)(c).

(d) All powers, duties, and functions of the employment security department are transferred to the department of employment services. All references to the commissioner or the employment security department in the Revised Code of Washington shall be construed to mean the director or the department of employment services when referring to the functions transferred in this subsection (1)(d).

(e) All powers, duties, and functions of the department of social and health services pertaining to the office of special investigations are transferred to the department of employment services. All references to the secretary or the department of social and health services in the Revised Code of Washington shall be construed to mean the director or the department of employment services when referring to the functions transferred in this subsection (1)(e).

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the departments identified in subsection (1) of this section pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of employment services. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the departments in carrying out the powers, functions, and duties transferred shall be made available to the department of employment services. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of employment services.

(b) Any appropriations made to the departments identified in subsection (1) of this section for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of employment services.

(3) All employees of the departments identified in subsection (1) of this section engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of employment services. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of employment services 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 departments identified in subsection (1) of this section pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of employment services. All existing contracts and obligations shall remain in full force and shall be performed by the department of employment services.

(5) The transfer of the powers, duties, functions, and personnel of the departments identified in subsection (1) of this section shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 404. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 405. (1) The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. In creating administrative structures, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions.

NEW SECTION. Sec. 406. The director may appoint such advisory committees or councils as required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state-wide committees or councils on such subject matters as are or come within the department's responsibilities. The state-wide committees and councils shall have representation from both major political parties and shall have substantial consumer representation. The committees or councils shall be constituted as required by federal law or as the director may determine. The members of the committees or councils shall hold office as follows: One-third to serve one year; one-third to serve two years; and one-third to serve three years. Upon expiration of the original terms, subsequent appointments shall be for three years except in the case of a vacancy, in which event appointment shall be only for the remainder of the unexpired term for which the vacancy occurs. No member may serve more than two consecutive terms.

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

NEW SECTION. Sec. 407. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 408. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of employment services to the director, the director's personal secretary, all assistant directors, and one confidential secretary for each assistant director.

PART 5

GENERAL DEPARTMENTAL PROVISIONS

NEW SECTION. Sec. 501. (1) The director of financial management, the secretary of corrections, the secretary of social and health services, and the director of the department of community, trade, and economic development shall jointly develop a reorganization implementation plan to implement sections 301 through 310 of this act. The plan shall take into account recommendations from interested individuals, as well as state and local agencies.

(2) The plan shall detail the implementation steps to effectuate the transfer of the:

(a) Children's administration and the functions of the department of community, trade, and economic development relating to children to the new children and family services agency;

(b) Juvenile rehabilitation administration to the department of corrections and the new children and family services agency; and

(3) The plan shall include allocation of the functions of the juvenile rehabilitation administration to the new department of children and family services and the department of corrections. The legislature intends that:

(a) The plan consider which state agency is best suited to address the needs of various groups of juvenile offenders, and the needs of society with respect to those juveniles; and

(b) The plan incorporate the functions of treatment and sentencing provisions of law as of July 1, 1998, over juvenile offenders including, but not limited to juvenile rehabilitation and the juvenile justice system, including functions performed by the juvenile rehabilitation administration as it exists June 30, 1998. Any juvenile offenders transferred as a result of chapter . . ., Laws of 1997 (this act) shall be housed separately from adult offenders.

(4) The legislature intends that because child abuse or neglect investigations frequently reveal criminal activity, the authority to conduct such investigations should be transferred to the county sheriffs in larger counties. The legislature further finds that the authority to conduct investigations to determine whether there is evidence that would support a judicial determination that a child is a dependent child should be vested in the county sheriff in the larger counties. The reorganization plan shall include recommendations as to the allocation of functions between the new department of children and family services, the county sheriffs, and other appropriate agencies.

(5) In developing the recommendations required under this section, the directors, secretaries, and commissioner shall consult with the directors of the departments of general administration and personnel to ensure that no duplication of functions will occur between the departments of general administration, personnel, and other departments.

(6) The completed reorganization implementation plan shall be submitted to the governor and the appropriate standing committees of the legislature by November 15, 1997.

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

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

(b) Quantifiable outcomes for all transferred functions;

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

(d) Staffing support and caseload management enhancements;

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

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

(g) Promotion of public and private partnerships; and

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

(8) By December 15, 1997, the director of financial management, the secretary of the department of social and health services, the secretary of the department of corrections, and the director of the department of community, trade, and economic development shall jointly submit to the governor and the appropriate standing committees of the legislature any proposed legislation necessary to implement the reorganization implementation plan.

(9) This section expires June 30, 1998.

NEW SECTION. Sec. 502. (1) The director of the office of financial management, the secretary of the department of social and health services, and other departments affected by the transfers to occur July 1, 2000, shall jointly develop a reorganization implementation plan to effectuate the transfer of functions to occur July 1, 2000. The plans shall also address strategies for ensuring collaboration among programs and among the new and existing departments.

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

(a) The family policy council;

(b) Community and legislative relations;

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

(d) The office of special investigations.

(3) In developing the recommendations required under subsection (2)(c) of this section, the directors, secretaries, and commissioner shall consult with the directors of the departments of general administration and personnel to ensure that no duplication of functions will occur between the departments of general administration, personnel, corrections, and labor and industries, the employment security department, and the four new agencies created in chapter . . ., Laws of 1997 (this act).

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

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

(b) Quantifiable outcomes for all transferred functions;

(d) Staffing support and caseload management enhancements;

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

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

(g) Promotion of public and private partnerships; and

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

(5) The reorganization implementation plan shall be submitted to the governor and the appropriate standing committees of the legislature by November 15, 1999.

(6) By December 15, 1999, the director of financial management, the secretary of the department of social and health services, the secretary of the department of health, the commissioner of the employment security department, and the director of the department of labor and industries shall jointly submit to the governor and the appropriate standing committees of the legislature any proposed legislation necessary to implement the second reorganization implementation plan.

(7) This section expires January 1, 2000.

Sec. 503. RCW 72.09.040 and 1981 c 136 s 4 are each amended to read as follows:

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

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

Sec. 504. RCW 43.17.010 and 1993 sp.s. c 2 s 16, 1993 c 472 s 17, and 1993 c 280 s 18 are each reenacted and amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fish and wildlife, (6) the department of transportation, (7) the department of licensing, (8) the department of general administration, (9) the department of community, trade, and economic development, (10) the department of veterans affairs, (11) the department of revenue, (12) the department of retirement systems, (13) the department of corrections, ((~~and~~)) (14) the department of health, ((~~and~~)) (15) the department of financial institutions, and (16) the department of children and family services which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 505. RCW 43.17.020 and 1995 1st sp.s. c 2 s 2 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fish and wildlife, (6) the secretary of transportation, (7) the director of licensing, (8) the director of general administration, (9) the director of community, trade, and economic development, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, ((~~and~~)) (14) the secretary of health, ((~~and~~)) (15) the director of financial institutions, and (16) the director of children and family services.

Such officers, except the secretary of transportation and the director of fish and wildlife, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041. The director of fish and wildlife shall be appointed by the fish and wildlife commission as prescribed by RCW 77.04.055.

Sec. 506. RCW 43.17.010 and 1997 c . . . s 504 (section 504 of this act) are each amended to read as follows:

There shall be departments of the state government which shall be known as (1) ((~~the department of social and health services, (2)~~)) the department of ecology, ((~~(3)~~)) (2) the department of labor and industries, ((~~(4)~~)) (3) the department of agriculture, ((~~(5)~~)) (4) the department of fish and wildlife, ((~~(6)~~)) (5) the department of transportation, ((~~(7)~~)) (6) the department of licensing, ((~~(8)~~)) (7) the department of general administration, ((~~(9)~~)) (8) the department of community, trade, and economic development, ((~~(10)~~)) (9) the department of veterans affairs, ((~~(11)~~)) (10) the department of revenue, ((~~(12)~~)) (11) the department of retirement systems, ((~~(13)~~)) (12) the department of corrections, ((~~(14)~~)) (13) the department of health, ((~~(15)~~)) (14) the department of financial institutions, ((~~and (16)~~)) (15) the department of children and family services, (16) the department of medical assistance, (17) the department of long-term care services, and (18) the department of employment services which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 507. RCW 43.17.020 and 1997 c . . . s 505 (section 505 of this act) are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) ((~~The secretary of social and health services, (2)~~)) The director of ecology, ((~~(3)~~)) (2) the director of labor and industries, ((~~(4)~~)) (3) the director of agriculture, ((~~(5)~~)) (4) the director of fish and wildlife, ((~~(6)~~)) (5) the secretary of transportation, ((~~(7)~~)) (6) the director of licensing, ((~~(8)~~)) (7) the director of general administration, ((~~(9)~~)) (8) the director of community, trade, and economic development, ((~~(10)~~)) (9) the director of veterans affairs, ((~~(11)~~)) (10) the director of revenue, ((~~(12)~~)) (11) the director of retirement systems, ((~~(13)~~)) (12) the secretary of corrections, ((~~(14)~~)) (13) the secretary of health, ((~~(15)~~)) (14) the director of financial institutions, ((~~and (16)~~)) (15) the director of children and family services, (16) the director of medical assistance, (17) the director of long-term care services, and (18) the director of employment services.

PART 6

MISCELLANEOUS

NEW SECTION. Sec. 601. Part headings used in this act do not constitute any part of the law.

NEW SECTION. Sec. 602. Sections 101 through 107 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 603. Sections 201 through 208 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 604. Sections 301 through 307 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 605. Sections 401 through 407 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 606. Section 501 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION. Sec. 607. If chapter . . . (House Bill No. 1850), Laws of 1997 is enacted into law during the 1997 regular legislative session, sections 201 through 209 of this act are null and void. If chapter . . . (House Bill No. 1850), Laws of 1997 is not enacted into law during the 1997 regular legislative session, sections 201 through 209 of this act take effect July 1, 2000.

NEW SECTION. Sec. 608. If chapter . . . (House Bill No. 1861), Laws of 1997 is enacted into law during the 1997 regular legislative session, sections 401 through 408 of this act are null and void. If chapter . . . (House Bill No. 1861), Laws of 1997 is not enacted into law during the 1997 regular legislative session, sections 401 through 408 of this act take effect July 1, 2000.

NEW SECTION. Sec. 609. Sections 301 through 310 and 502 through 505 of this act take effect July 1, 1998.

NEW SECTION. Sec. 610. Sections 1, 101 through 108, 506, and 507 of this act take effect July 1, 2000.