5748-S AMH TR H2550.1




SSB 5748 - H COMM AMD

By Representative on Transportation

 

ADOPTED 04/02/2003

 

Strike everything after the enacting clause and insert the following:

 

"NEW SECTION. Sec. 1. It is essential that the legislature improve the accountability and efficiency of transportation-related agencies and measure transportation system performance against benchmarks established in chapter 5, Laws of 2002. Taxpayers must know that their tax dollars are being well spent to deliver critically needed transportation projects and services. To accomplish this, the legislative transportation committee will oversee a system of transportation performance reviews and audits established to provide oversight and accountability of transportation agencies.

 

NEW SECTION. Sec. 2. A new section is added to chapter 44.40 RCW to read as follows:

The definitions in this section apply throughout this chapter.

(1) "Committee" means the legislative transportation committee.

(2) "Legislative auditor" has the meaning contained in chapter 44.28 RCW.

(3) "Performance audit" has the meaning contained in chapter 44.28 RCW.

(4) "Performance review" means an evaluation of how a state agency uses its performance measures to assess the outcomes of its legislatively authorized activities.

(5) "Program audit" has the meaning contained in chapter 44.28 RCW.

(6) "Transportation-related agencies" means any state agency, board, or commission that receives funding primarily for transportation-related purposes. At a minimum, the department of transportation, the Washington state patrol, the department of licensing, the transportation improvement board or its successor entity, the county road administration board or its successor entity, and the traffic safety commission are considered transportation-related agencies.

 

NEW SECTION. Sec. 3. A new section is added to chapter 44.40 RCW to read as follows:

(1) The legislative transportation committee shall review the performance and outcome measures of transportation-related agencies. The purpose of these reviews is to ensure that the legislature has the means to adequately and accurately assess the performance and outcomes of those agencies and departments. Where two or more agencies have shared responsibility for functions or priorities of government, the performance reviews may also determine whether effective interagency cooperation and collaboration occurs in areas such as program coordination, administrative structures, information systems, and administration of grants and loans.

(2) In conducting these reviews, the legislative transportation committee may work with the joint legislative audit and review committee, the office of financial management, and other state agencies as needed.

(3) The committee shall determine the occurrence and frequency of the performance reviews. In setting the schedule and the extent of performance reviews, the committee shall consider the timing and results of other recent state, federal, and independent reviews and audits, the seriousness of past findings, any inadequate remedial action taken by an agency or department, whether an agency or department lacks performance and outcome measures, and the desirability to include a diverse range of agencies or programs each year.

 

NEW SECTION. Sec. 4. A new section is added to chapter 44.40 RCW to read as follows:

The performance reviews by the committee may include, but are not limited to:

(1) A determination of whether the performance and outcome measures are consistent with legislative mandates, strategic plans, mission statements, and goals and objectives, and whether the legislature has established clear mandates, strategic plans, mission statements, and goals and objectives that lend themselves to performance and outcome measurement;

(2) An examination of how agency management uses the measures to manage resources in an efficient and effective manner;

(3) An assessment of how performance benchmarks are established for the purpose of assessing overall performance compared to external standards and benchmarks;

(4) An examination of how an analysis of the measurement data is used to make planning and operational improvements;

(5) A determination of how performance and outcome measures are used in the budget planning, development, and allotment processes and the extent to which the agency is in compliance with its responsibilities under RCW 43.88.090;

(6) A review of how performance data are reported to and used by the legislature both in policy development and resource allocation;

(7) An assessment of whether the performance measure data are reliable and collected in a uniform and timely manner;

(8) A determination of whether targeted funding investments and established priorities of government actually produce the intended and expected services and benefits; and

(9) Recommendations as necessary or appropriate.

 

NEW SECTION. Sec. 5. A new section is added to chapter 44.40 RCW to read as follows:

(1) After reviewing the performance or outcome measures and benchmarks of a transportation-related agency or department, or at any time it so determines, the committee shall determine if a full performance or program audit of an agency or department, or a specific program within the agency or department, is appropriate. The committee, or its executive committee, may request the joint legislative audit and review committee to conduct performance or program audits, or it may retain a private consultant to do so. The committee shall pay for all costs associated with audits requested and pursued by them.

(2) In addition to the definitions in this chapter of what a performance or program audit is comprised of, the audits sought by the committee may also assess activity areas. Audits of this nature would be designed to augment the information collected under a performance or program audit and would at a minimum, include identifying the entities and agencies involved in or connected to a specific activity, and assessing and determining the impact the activity has on each entity and agency involved.

 

NEW SECTION. Sec. 6. A new section is added to chapter 44.40 RCW to read as follows:

In conducting performance or program audits, the legislative auditor with the joint legislative audit and review committee, or the private consultant retained by the committee, shall determine in writing the scope of an audit requested by the committee or its executive committee. The committee, or its executive committee, must approve the final scope of the audit. In determining the scope, the legislative auditor and the committee, or its executive committee, shall consider inclusion of the following elements:

(1) Identification of potential cost savings in the agency, its programs, and its services;

(2) Identification and recognition of best practices;

(3) Identification of funding to the agency, to programs, and to services that can be eliminated or reduced;

(4) Identification of programs and services that can be eliminated, reduced, or transferred to the private sector;

(5) Analysis of gaps and overlaps in programs and services and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps;

(6) Analysis and recommendations for pooling information technology systems;

(7) Analysis of the roles and functions of the agency, its programs, and its services and their compliance with statutory authority and recommendations for eliminating or changing those roles and functions and ensuring compliance with statutory authority;

(8) Recommendations for eliminating or changing statutes, rules, and policy directives as may be necessary to ensure that the agency carry out reasonably and properly those functions expressly vested in the department by statute; and

(9) Verification of the reliability and validity of department performance data, self-assessments, and performance measurement systems as required under RCW 43.88.090.

 

NEW SECTION. Sec. 7. A new section is added to chapter 44.40 RCW to read as follows:

(1) When conducting a full performance audit of an agency or department, or a specific program within an agency or department, or multiple agencies, in accordance with section 5 of this act, the legislative auditor or private consultant, as determined by the committee, shall solicit input from appropriate industry representatives or experts.

(2) The completed audit report must include but not be limited to the following: (a) Make recommendations regarding the continuation, abolition, consolidation, or reorganization of each affected agency, department, or program; (b) identify opportunities to develop government partnerships, and eliminate program redundancies that will result in increased quality, effectiveness, and efficiency of state agencies.

(3) Completed performance audits must be presented to the committee or its executive committee. Published performance audits must be made available to the public through the legislative transportation committee's web site and through customary public communications. Final reports must also be transmitted to the appropriate policy and fiscal standing committees of the legislature, the office of financial management, and the affected agencies and entities.

 

NEW SECTION. Sec. 8. The committee shall take steps to ensure that the department of transportation is the first agency subject to the performance review and audit process established in this act.

 

NEW SECTION. Sec. 9. 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."

 

Correct the title.

 

 

 

EFFECT: The Legislative Transportation Committee (LTC) is required to review the performance and outcome measures of transportation-related agencies. The schedule and frequency of the reviews is to be determined by the LTC. The Department of Transportation must be the first agency subject to the review process.

Criteria is established for the performance reviews to be conducted by the LTC, and include such things as examining how agency management uses the performance measures to manage resources, assessing how benchmarks are established, determining how the measures are used to make budget decisions, etc.

Based on the outcome of the performance reviews, the LTC may retain a consultant or request the Joint Legislative Audit and Review Committee (JLARC) to conduct performance or program audits of an agency, a specific program, or an activity area. The LTC will pay for all costs associated with the requested audits.

The scope of the audit must be approved by the LTC. The LTC and the entity retained to do the audit must consider inclusion of specific audit elements that are established in the bill and include such things as identifying potential cost savings in the agency or program, identifying funding that could be eliminated, identifying programs or services that could be eliminated, etc.

Completed audit reports must be submitted to the LTC or its executive committee, and must include, at a minimum, recommendations on: (a) The continuation, abolition, consolidation, or reorganization of each affected agency or program; and (b) opportunities to develop government partnerships, and eliminate redundant programs.

This act takes effect immediately.

 

 

 

 

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