2969-S AMH BAXS 1

SHB 2969 - H AMD Failed March 1, 2002

By Representative

On page 1, beginning on line 12, strike all material through page 5, line 22 and insert:

NEW SECTION. Sec. 101. It is essential that the legislature improve the accountability and efficiency of the department of transportation. Taxpayers must know that their tax dollars are being well spent to deliver critically needed transportation projects. To accomplish this, an independent transportation accountability process must be established to provide oversight on these transportation projects. This process will provide reports back to the public on how their tax dollars are spent on major projects funded by new transportation taxes.

NEW SECTION. Sec. 102. (1) A transportation audit committee shall be appointed by the chairs of the joint legislative audit and review committee and the legislative transportation committee.

(2) The committee shall consist of eight members, with four members of and appointed by the chair of the joint legislative audit and review committee, and four members of and appointed by the chair of the legislative transportation. Of the four members appointed from each committee, a member of each house and of each of the major political parties must be represented. Serving on the committee shall be considered as being engaged in the business of each of the respective committees from which they are named.

(3) The members of the committee shall elect a chair and vice-chair and shall adopt rules for operation of the committee, including recorded resolutions or motions adopted by the committee.

NEW SECTION. Sec. 103. (1) Staff support to the transportation audit committee must be provided by the joint legislative audit and review committee, which shall provide professional support for the duties, functions, responsibilities, and activities of the committee, including but not limited to information technology systems; data collection, processing, analysis, and reporting; project management; and office space, equipment, and secretarial support.

(2) The committee may also retain other organizations as provided for in section 108 of this chapter in the performance of its duties.

NEW SECTION. Sec. 104. The transportation audit committee shall serve as a single, independent point of accountability for reporting, analyzing, and monitoring the department's performance in delivering improvement projects and programs costing in excess of fifty million dollars funded with new revenues under this act. The department of transportation and the transportation commission must work cooperatively with the committee to carry out the purposes of this chapter. The committee has the following responsibilities:

(1) Direct the department of transportation to submit a quarterly audit report as required under section 105 of this act;

(2) Develop and issue requests for proposals by contracting organizations for quarterly audit report reviews and audit review letters pursuant to section 108 of this act.

(3) Report annually to the governor and the legislature on the department's progress on each project as further defined in section 107 of this act;

(4) When necessary, make policy recommendations for improving efficiencies, savings or improvements in the department's project management, accountability measures, or project delivery mechanisms;

(5) Recommend any leading edge transportation project delivery strategies, oversight, accountability, or efficiency measures.

NEW SECTION. Sec. 105. The department of transportation shall prepare and submit to the audit review contractor as provided for in section 108 of this act, once each quarter, a comprehensive audit report on each transportation project costing in excess of fifty million dollars funded by this act. At a minimum, the audit report must include the following elements:

(1) Project status and any scope changes;

(2) Estimated completion date and cost, noting any changes from past estimates;

(3) Actual project expenditures as compared with projected expenditures;

(4) Any changes in financing for each project;

(5) Claim or change orders that result in greater than a five percent cumulative increase in project cost, or greater than sixty days of delay;

(6) Status of any required permits;

(7) Mitigation efforts to relieve both traffic and environmental impacts;

(8) Evaluation of work force effectiveness, including both state employees and contractors;

(9) Outlook for the upcoming year, including projected accomplishments and challenges;

(10) Copies of any accountability reports filed with the federal highway administration;

(11) Any other useful information the committee requests.

NEW SECTION. Sec. 106. The audit review contractor must review the proposed audit report submitted by the department. After reviewing the information contained therein, the contractor may request additional information or data, or ask for clarifications. The contractor is prohibited from changing any of the data contained in the audit report.

NEW SECTION. Sec. 107. (1) Upon completion of its review under section 106 of this act, the audit review contractor shall forward the quarterly audit report to the transportation audit committee. The committee will accept or reject the audit report.

(a) In determining whether to accept or reject the audit report, the committee:

(i) Will analyze, investigate, and evaluate the data contained in the quarterly audit report;

(ii) Will receive staff support for this evaluation from the joint legislative audit and review committee; and

(iii) May request additional information or data from the department of transportation or the contractor.

(b) As part of the evaluation process, the committee may make recommendations to the department and the transportation commission for efficiencies, savings, or improvements in the department's project management, accountability measures or project delivery mechanisms. The chairman will work with the department and the transportation commission on behalf of the committee to implement changes recommended by the committee.

(2) Upon final acceptance, the committee must forward the audit report to the transportation standing committees of the house of representatives and senate, and to the office of financial management, along with any recommendations of the committee.

(3) The committee must publish and make the audit report available to the public in both print and electronic media.

NEW SECTION. Sec. 108. (1) The committee shall develop and issue requests for proposals from qualified contracting organizations for quarterly audit report reviews and audit review letters. To meet minimum qualifications, a contractor must have experience and expertise relating to major civil engineering and construction works and facilities to include: (a) Design, estimating, contract packaging, and procurement; (b) construction means and methods and construction management and administration; (c) project finance, accounting, controls, and reporting; (d) procedures for obtaining permits and for assuring regulatory compliance; (e) dispute resolution; (f) construction work force training and safety; (g) general public administration; and (h) experience crafting and implementing environmental mitigation plans.

(2) The committee shall select and contract with, with the joint legislative audit and review committee as the contracting agent, a qualified contractor to conduct the quarterly audit report reviews.

(3)Periodically update and reissue the request for proposals for quarterly audit report reviews.

NEW SECTION. Sec. 109. A new section is added to chapter 43.131 RCW to read as follows:

The quarterly audit reporting process, including the contracting out of audit report reviews, shall be reviewed under this chapter before June 30, 2007. The transportation commission and the department transportation shall provide the information necessary for the joint legislative audit and review committee to provide the required review.

NEW SECTION. Sec. 110. Sections 101 through 108 of this act constitute a new chapter in Title 47 RCW.