BILL REQ. #:  H-3298.3 

Read first time 01/20/2004.   Referred to Committee on State Government.

     AN ACT Relating to establishing uniform administrative districts for certain state agencies and educational service districts; amending RCW 43.88C.020, 43.88.094, 82.33.020, and 44.48.070; adding new sections to chapter 43.17 RCW; adding new sections to chapter 28A.310 RCW; adding a new section to chapter 44.04 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION.  Sec. 1   It is the intent of the legislature to significantly improve the financial accountability and service delivery of state activities and functions by establishing standardized administrative districts for all state agencies. Uniform administrative districts will result in enhanced reporting of revenue and expense by region, better state program customer service, integrated planning and development of state infrastructure, and improved regional economic development opportunities.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.17 RCW to read as follows:
     (1) The following state agencies shall organize services and functions according to uniform administrative districts: Social and health services; ecology; labor and industries; agriculture; fish and wildlife; transportation; licensing; general administration; community, trade, and economic development; veterans affairs; revenue; retirement systems; corrections; health; financial institutions; information services; military department; personnel; and the state auditor.
     (2) State campuses shall be established in each district and each state agency shall have an administrative office in every state campus of each administrative district. Existing field offices of state agencies shall be aligned with the campus center.
     (3) Administrative districts and campus centers are as follows:

NEW SECTION.  Sec. 3   A new section is added to chapter 43.17 RCW to read as follows:
     The office of financial management shall maintain state agency data by uniform administrative districts created in section 2 of this act and shall report this information to the legislature at least semiannually. The office of financial management shall fund conversion costs within existing appropriations and shall provide a progress report on these conversions to the legislature on or before July 1, 2005.

Sec. 4   RCW 43.88C.020 and 1997 c 168 s 2 are each amended to read as follows:
     (1) In consultation with the caseload forecast work group established under RCW 43.88C.030, and subject to the approval of the caseload forecast council under RCW 43.88C.010, the supervisor shall prepare:
     (a) An official state caseload forecast; and
     (b) Other caseload forecasts based on alternative assumptions as the council may determine.
     (2) The supervisor shall submit caseload forecasts prepared under this section, along with any unofficial forecasts provided under RCW 43.88C.010, to the governor and the members of the legislative fiscal committees, including one copy to the staff of each of the committees. Caseload forecasts shall be organized and reported according to uniform administrative districts created in section 2 of this act. The forecasts shall be submitted at least three times each year and on such dates as the council determines will facilitate the development of budget proposals by the governor and the legislature.
     (3) All agencies of state government shall provide to the supervisor immediate access to all information relating to caseload forecasts.
     (4) The administrator of the legislative evaluation and accountability program committee may request, and the supervisor shall provide, alternative caseload forecasts based on assumptions specified by the administrator.
     (5) The official state caseload forecast under this section shall be the basis of the governor's budget document as provided in RCW 43.88.030 and utilized by the legislature in the development of the omnibus biennial appropriations act.

Sec. 5   RCW 43.88.094 and 1998 c 299 s 4 are each amended to read as follows:
     (1) The budget amount designated in RCW 43.88.093(1) is the sum of the base amount and the growth component as calculated under subsection (2) of this section.
     (2) The director of the department of community, trade, and economic development shall calculate the tourism development division budget, organized as a whole and by uniform administrative districts created in section 2 of this act, in consultation with the appropriate agencies in the following manner:
     (a) The base amount, beginning in the budget for the biennium ending June 30, 2001, and for each subsequent biennium thereafter, equals the previous biennial budget, including any supplemental allocations and any growth component amounts from previous biennia.
     (b) For the growth component, beginning in the budget for the biennium ending June 30, 2001: (i) Compute the state retail sales tax revenues for the target business categories for the calendar year two years prior to the beginning of the biennium for which the budget request will be made; (ii) compute the state retail sales tax revenues for the target business categories for the calendar year four years prior to the beginning of the biennium for which the budget request will be made; (iii) calculate the percentage change in these two sales tax revenue amounts; (iv) if the percentage exceeds eight percent growth, calculate the amount of sales tax revenue that represents the excess in revenue growth greater than six percent; and (v) calculate the growth component by dividing the excess revenue growth by two. The amount of the growth component for any biennium shall not exceed two million dollars per fiscal year for the biennium.
     (3) As used in this section:
     (a) "Target business categories" means businesses in standard industrial classification codes 58 (eating and drinking), 70 (lodging), 7514 (auto rental), and 79 (recreation). If at any time the United States office of management and budget or a successor agency should change or replace the present standard industrial classification code system, the department of community, trade, and economic development shall use the code system issued by the office of management and budget or its successor agency to determine codes corresponding to those listed in this definition.
     (b) "Retail sales" means the gross sales subject to the tax imposed in chapter 82.08 RCW received by businesses identified in department of revenue records by standard industrial classification codes 58, 70, 7514, and 79.
     (4) This section expires June 30, 2008.

Sec. 6   RCW 82.33.020 and 1992 c 231 s 34 are each amended to read as follows:
     (1) Four times each year the supervisor shall prepare, subject to the approval of the economic and revenue forecast council under RCW 82.33.010:
     (a) An official state economic and revenue forecast;
     (b) An unofficial state economic and revenue forecast based on optimistic economic and revenue projections; and
     (c) An unofficial state economic and revenue forecast based on pessimistic economic and revenue projections.
     (2) The supervisor shall submit forecasts prepared under this section, along with any unofficial forecasts provided under RCW 82.33.010, to the governor and the members of the committees on ways and means and the chairs of the committees on transportation of the senate and house of representatives and the chair of the legislative transportation committee, including one copy to the staff of each of the committees, on or before November 20th, February 20th in the even-numbered years, March 20th in the odd-numbered years, June 20th, and September 20th. All forecasts shall include both estimated receipts and estimated revenues in conformance with generally accepted accounting principles as provided by RCW 43.88.037. All forecasts shall be organized and reported according to uniform administrative districts created in section 2 of this act.
     (3) All agencies of state government shall provide to the supervisor immediate access to all information relating to economic and revenue forecasts. Revenue collection information shall be available to the supervisor the first business day following the conclusion of each collection period.
     (4) The economic and revenue forecast supervisor and staff shall co-locate and share information, data, and files with the tax research section of the department of revenue but shall not duplicate the duties and functions of one another.
     (5) As part of its forecasts under subsection (1) of this section, the supervisor shall provide estimated revenue from tuition fees as defined in RCW 28B.15.020.
     (6) The caseload forecast council shall create and maintain an index of uniform economic indicators and a uniform purchasing power index and track these activities according to the uniform administrative districts created in section 2 of this act. The council shall report this information to the legislature on a semiannual basis beginning on or before July 1, 2005.

Sec. 7   RCW 44.48.070 and 1977 ex.s. c 373 s 7 are each amended to read as follows:
     The committee shall acquire a data processing service capability under the exclusive jurisdiction and control of the legislature acting through the committee and its administrator 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 committee shall be able to provide information according to the uniform administrative districts created in section 2 of this act. The legislative evaluation and accountability program established in this section may be referred to in this chapter as the LEAP administration.

NEW SECTION.  Sec. 8   A new section is added to chapter 28A.310 RCW to read as follows:
     (1) The superintendent of public instruction shall organize educational service district services and functions according to administrative districts created in section 2 of this act. An educational service district shall have an administrative office in the designated administrative center of each district.
     (2) Educational service districts shall report all revenues and expenditures, in aggregate and by program or project, to the superintendent of public instruction by uniform administrative district.

NEW SECTION.  Sec. 9   A new section is added to chapter 28A.310 RCW to read as follows:
     The superintendent of public instruction shall maintain educational service district data by uniform administrative districts created in section 2 of this act and shall report this information to the legislature at least quarterly. The superintendent of public instruction shall fund conversion costs within existing appropriations and shall provide reporting conversions to the legislature on or before July 1, 2005.

NEW SECTION.  Sec. 10   A new section is added to chapter 44.04 RCW to read as follows:
     (1) The legislature shall establish a joint committee to review and assess the effectiveness of the uniform administrative districts in meeting its legislative intent. The joint committee shall include four members, one from each major caucus from the senate and the house of representatives selected by the caucus leadership.
     (2) The committee shall hold at least four public meetings each year to allow for public comment and to gather information on the effectiveness of uniform administrative districts.
     (3) The committee shall evaluate the effectiveness of the uniform administrative districts and make recommendations to expand the number of state agencies required to organize by uniform administrative district and procedures to align agency efforts to successfully accomplish that goal.
     (4) This section expires December 31, 2008.