BILL REQ. #:  H-1753.1 

READ FIRST TIME 03/07/05.   

     AN ACT Relating to the creation of the office of inspector general; amending RCW 49.60.210; adding a new chapter to Title 43 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Disclosable information" means public information that (a) is not exempt from disclosure under chapter 42.17 RCW; and (b) does not pertain to an ongoing investigation.
     (2) "Fraud" means acts and practices of fraud in programs administered by a government entity, including criminal or administrative misconduct by staff, clients, or vendors.
     (3) "Fraud unit" means a fraud or investigation unit, division, or service created within the employment security department, the department of labor and industries, and except for the medicaid fraud unit, the department of social and health services, to review state programs and activities.
     (4) "Government entity" means a state agency, department, office, officer, board commission, bureau, division, institution, or institution of higher education. This includes individual state agencies and programs, as well as those programs and activities that cross agency lines. State government includes all elective offices in the executive branch of government.
     (5) "Office" means the office of inspector general.

NEW SECTION.  Sec. 2   The office of inspector general is created within the office of the governor in order to create an independent unit to:
     (1) Conduct and supervise investigations relating to allegations of fraud; and
     (2) Inform the governor and the legislature about vulnerabilities and deficiencies relating to the detection and prevention of fraud as may be discovered as a result of completed investigations conducted or coordinated by the office.

NEW SECTION.  Sec. 3   The inspector general is the head of the office and is appointed by the governor on the basis of integrity and demonstrated ability in law enforcement management, public administration, and investigations. The appointment of the inspector general is subject to the confirmation of the senate. The inspector general shall report directly to the governor.

NEW SECTION.  Sec. 4   (1) The inspector general shall:
     (a) Conduct, supervise, and coordinate fraud investigations and provide policy direction as it relates to program integrity and fraud;
     (b) Review proposed legislation and rules relating to the detection and prevention of fraud in programs reviewed by fraud units, and make recommendations for improvement;
     (c) Recommend policies for, and conduct, supervise, and coordinate, relationships between fraud units and federal, state, and local governmental agencies, and nongovernmental entities, with respect to:
     (i) Matters relating to the prevention and detection of fraud in programs and operations reviewed by fraud units; or
     (ii) The identification and prosecution of participants in the fraud; and
     (d) Provide reports to the governor and the legislature in accordance with section 6 of this act, concerning the detection and prevention of fraud, and to make recommendations for improvement of the activities.
     (2) In carrying out the duties and responsibilities established in this chapter, the inspector general must refer all investigations in which the inspector general has found substantial evidence supporting a finding of a violation of federal or state criminal law to the appropriate prosecuting authority for possible criminal prosecution.

NEW SECTION.  Sec. 5   (1) The office of inspector general has the authority to apply for and execute all warrants and serve process of law issued by the courts in enforcing the provisions of this chapter.
     (2) The office of the inspector general has the full authority to administer oaths and take testimony thereunder, to issue subpoenas requiring the attendance of witnesses before the office, together with all books, memoranda, papers, and other documents, articles, or instruments, and to compel the disclosure by such witnesses of all facts known to them relative to the matters under investigation.
     (3) Subpoenas issued in adjudicative proceedings are governed by RCW 34.05.588(1).
     (4) Subpoenas issued in the conduct of investigations required or authorized by other statutory provisions or necessary in the enforcement of other statutory provisions are governed by RCW 34.05.588(2).

NEW SECTION.  Sec. 6   (1) The inspector general must submit a report summarizing the activities of the office to the appropriate committees of the senate and house of representatives by November 30, 2005, by November 30, 2006, and by November of every even-numbered year thereafter. The report shall contain only disclosable information, including:
     (a) A description of significant fraud, and of vulnerabilities or deficiencies relating to the prevention and detection of fraud, discovered as a result of investigations completed during the reporting period;
     (b) A description of corrective action taken by government entities regarding fraud discovered as a result of investigations conducted by the office;
     (c) Recommendations for improving the activities of the office with respect to the vulnerabilities or deficiencies identified under (a) of this subsection;
     (d) An identification of each significant recommendation described in the previous reports on which corrective action has or has not been completed; and
     (e) A summary of matters referred to prosecution authorities during the reporting period and the charges filed and convictions entered during the reporting period that have resulted from referrals by the office.
     (2) The inspector general must forward a draft of the report to any government entity identified in the report not less than twenty days before the date that the report is to be issued.
     (3) The governor must make copies of the report available to the public upon request and at a reasonable cost at the same time the report of the inspector general is provided to legislative committees.

NEW SECTION.  Sec. 7   In carrying out the provisions of this chapter, the inspector general may:
     (1) Request information or assistance as is necessary for carrying out the duties and responsibilities in this chapter from a federal, state, or local governmental agency or unit of a governmental agency;
     (2) Issue subpoenas for witnesses, documents, information, and other data necessary in the furtherance of an investigation conducted by the office. Before issuing subpoenas to a government entity, the inspector general must make a reasonable request to the government entity for documents and information in possession of the government entity;
     (3) Administer oaths and take testimony, when appropriate in the performance of the duties and responsibilities in this chapter, unless otherwise prohibited by law;
     (4) To the extent and in the amount as may be provided by appropriation, select, appoint, and employ personnel as may be necessary to carry out the provisions of this chapter;
     (5) To the extent and in the amount as may be provided by appropriation, enter into contracts and other arrangements for audits, studies, analyses, and other services with public agencies and with private persons, and make the payments necessary to carry out the provisions of this chapter, subject to compliance with civil service laws, collective bargaining agreements, and other applicable law; and
     (6) To the extent and in the amount as may be provided by appropriation, purchase or lease facilities, equipment, and supplies necessary to carry out the provisions of this chapter.

NEW SECTION.  Sec. 8   (1) In carrying out the provisions of this chapter, the inspector general shall have prompt access to all individuals, records, electronic data, reports, audits, reviews, documents, and other materials available to a government entity that relate to operations of the office that is not otherwise prohibited from disclosure to the inspector general.
     (2) Whenever information or assistance requested under subsection (1) of this section is, in the judgment of the inspector general, unreasonably refused or not provided, the inspector general must report the circumstances to the governor immediately.

NEW SECTION.  Sec. 9   (1) All powers, duties, and functions of the fraud units are transferred to the office of the inspector general.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the fraud units pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the office of the inspector general. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the fraud units in carrying out the powers, functions, and duties transferred shall be made available to the office of the inspector general. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the office of the inspector general.
     (b) Any appropriations made to the fraud units for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the office of the inspector general.
     (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 fraud units engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the office of the inspector general, however they may remain physically located within the department from which they were transferred. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of the inspector general 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 fraud units pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the office of the inspector general. All existing contracts and obligations shall remain in full force and shall be performed by the office of the inspector general.
     (5) The transfer of the powers, duties, functions, and personnel of the fraud units 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 resources board as provided by law.

Sec. 10   RCW 49.60.210 and 1992 c 118 s 4 are each amended to read as follows:
     (1) It is an unfair practice for any employer, employment agency, labor union, or other person to discharge, expel, or otherwise discriminate against any person because he or she has opposed any practices forbidden by this chapter, or because he or she has filed a charge, testified, or assisted in any proceeding under this chapter.
     (2) It is an unfair practice for a government agency or government manager or supervisor to retaliate against a whistleblower as defined in chapter 42.40 RCW.
     (3) It is an unfair practice for any employer, employment agency, labor union, government agency, government manager, or government supervisor to discharge, expel, discriminate, or otherwise retaliate against an individual assisting with an office of inspector general investigation under chapter 43.-- RCW (sections 1 through 9 of this act), unless the individual has made willful disregard for the truth.

NEW SECTION.  Sec. 11   Sections 1 through 9 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 12   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 July 1, 2005.