AN ACT Relating to quality awards; amending RCW 43.330.140; adding new sections to chapter 43.07 RCW; and recodifying RCW 43.330.140.

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

Sec. 1. RCW 43.330.140 and 1994 c 306 s 1 are each amended to read as follows:

(1) The Washington quality award council shall be organized as a ((~~part of the~~)) private, nonprofit corporation ((~~quality for Washington state foundation, with the assistance of the department~~)), in accordance with chapter 24.03 RCW and this section, with limited staff assistance by the secretary of state as provided by section 2 of this act.

((~~(1)~~)) (2) The council shall oversee the governor's Washington state quality achievement award program. The purpose of the program is to improve the overall competitiveness of the state's economy by stimulating Washington state industries, business, and organizations to bring about measurable success through setting standards of organizational excellence, encouraging organizational self-assessment, identifying successful organizations as role models, and providing a valuable mechanism for promoting and strengthening a commitment to continuous quality improvement in all sectors of the state's economy. The program shall annually recognize organizations that improve the quality of their products and services and are noteworthy examples of high-performing work organizations.

((~~(2)~~)) (3) The council shall consist of the governor and the ((~~director~~)) secretary of state, or their designees, as chair and vice-chair, respectively, ((~~and~~)) the director of the department of community, trade, and economic development, or his or her designee, and twenty-seven members appointed by the governor. Those twenty-seven council members must be selected from recognized professionals who shall have backgrounds in or experience with effective quality improvement techniques, employee involvement quality of work life initiatives, ((~~and~~)) development of innovative labor-management relations, and other recognized leaders in state and local government and private business. The ((~~initial~~)) membership of the board beyond the chair and vice-chair shall be appointed by the governor ((from a list of nominees submitted by the quality for Washington state foundation. The list of nominees shall include representatives from the governor's small business improvement council, the Washington state efficiency commission, the Washington state productivity board, the Washington state service quality network, the association for quality and participation, the American society for quality control, business and labor associations, educational institutions, elected officials, and representatives from former recipients of international, national, or state quality awards)) for terms of three years.

((~~(3)~~)) (4) The council shall establish a board of examiners, a recognition committee, and such other subcouncil groups as it deems appropriate to carry out its responsibilities. Subcouncil groups established by the council may be composed of noncouncilmembers.

((~~(4) The council shall receive its administrative support and operational expenses from the quality for Washington state foundation.~~))

(5) The council shall((~~, in conjunction with the quality for Washington state foundation,~~)) compile a list of resources available for organizations interested in productivity improvement, quality techniques, effective methods of work organization, and upgrading work force skills as a part of the quality for Washington state foundation's ongoing educational programs. The council shall make the list of resources available to the general public((~~, including labor, business, nonprofit and public agencies, and the department~~)).

(6) The council((~~, in conjunction with the quality for Washington state foundation,~~)) may conduct such public information, research, education, and assistance programs as it deems appropriate to further quality improvement in organizations operating in the state of Washington.

(7) The council shall:

(a) Approve and announce achievement award recipients;

(b) Approve guidelines to examine applicant organizations;

(d) Arrange appropriate annual awards and recognition for recipients, in conjunction with the quality for Washington state foundation;

(e) Formulate recommendations for change in the nomination form or award categories, in cooperation with the quality for Washington state foundation; and

(f) Review any related education, training, technology transfer, and research initiatives proposed ((~~by the quality for Washington state foundation~~)) to it, and that it determines merits such a review.

(8) By January 1st of each even-numbered year, the council shall report to the governor and the appropriate committees of the legislature on its activities in the proceeding two years and on any recommendations in state policies or programs that could encourage quality improvement and the development of high-performance work organizations.

(9) The council shall cease to exist on July 1, ((~~2004~~)) 1999, unless otherwise extended by law.

NEW SECTION. Sec. 2. A new section is added to chapter 43.07 RCW to read as follows:

(1) The secretary of state shall provide administrative assistance and support to the Washington quality award council only to the extent that the legislature appropriates funds specifically designated for this purpose. The secretary of state has no duty to provide assistance or support except to the extent specifically provided by appropriation.

(2) The Washington quality award council may develop private sources of funding, including the establishment of a private foundation. Except as provided in subsection (1) of this section, the council shall receive all administrative support and expenses through private sources of funding and arrangements with a private foundation. Public funds shall not be used to purchase awards, be distributed as awards, or be utilized for any expenses of the board of examiners, recognition committee, and such other subcouncil groups as the council may establish. Public funds shall not be used to pay overtime or travel expenses of secretary of state staff, for purposes related to the council, unless funded by specific appropriation.

NEW SECTION. Sec. 3. RCW 43.330.140 is recodified as a section in chapter 43.07 RCW.