BILL REQ. #:  H-3663.1 

Read first time 01/10/2006.   Referred to Committee on State Government Operations & Accountability.

     AN ACT Relating to performance and outcome measure reviews; amending RCW 43.09.435; adding new sections to chapter 43.06 RCW; recodifying RCW 43.09.435 and 43.09.460; and repealing RCW 43.09.430, 43.09.440, 43.09.445, 43.09.450, 43.09.455, 43.09.460, 43.88.162, and 2.56.200.

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

Sec. 1   RCW 43.09.435 and 2005 c 385 s 3 are each amended to read as follows:
     (1) The citizen advisory board is created to improve efficiency, effectiveness, and accountability in state government.
     (2) The board shall consist of ten members as follows:
     (a) One member shall be the state auditor or his or her designee, who shall be a nonvoting member;
     (b) One member shall be the legislative auditor or his or her designee, who shall be a nonvoting member;
     (c) One member shall be the director of the office of financial management or his or her designee, who shall be a nonvoting member;
     (d) Four of the members shall be selected by the governor as follows: Each major caucus of the house of representatives and the senate shall submit a list of three names. The lists may not include the names of members of the legislature or employees of the state. The governor shall select a person from each list provided by each caucus; and
     (e) The governor shall select three citizen members who are not state employees.
     (3) The board shall elect a chair. The legislative auditor, the state auditor, and the director of the office of financial management may not serve as chair.
     (4) Appointees shall be individuals who have a basic understanding of state government operations with knowledge and expertise in performance management, quality management, strategic planning, performance assessments, or closely related fields.
     (5) Members selected under subsection (2)(d) and (e) of this section shall serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial members, two members shall serve four-year terms, two members shall serve three-year terms, and one member shall serve a two-year term, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.
     (6) The office of the state auditor shall provide clerical, technical, and management personnel to the board to serve as the board's staff.
     (7) The board shall meet at least once a quarter and may hold additional meetings at the call of the chair or by a majority vote of the members of the board.
     (8) The members of the board shall be compensated in accordance with RCW 43.03.220 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.06 RCW to read as follows:
     (1) The citizen advisory board shall advise the governor regarding agency performance and outcome measures.
     (2) The board shall develop a schedule and common methodology for conducting ongoing performance and outcome measure reviews of all state agencies and programs. The reviews shall include, but not be limited to, the following:
     (a) Determining whether the performance and outcome measures are consistent with legislative mandates, strategic plans, mission statements, and goals and objectives;
     (b) Examining how agency management uses the measures to manage resources in an efficient and effective manner;
     (c) Assessing how performance benchmarks are established for the purpose of assessing overall performance compared to external standards and benchmarks;
     (d) Examining how an analysis of the measurement data is used to make planning and operational improvements;
     (e) Determining how performance and outcome measures are used in the budget planning, development, and allotment processes;
     (f) Reviewing how performance data are reported to and used by the legislature;
     (g) Assessing whether the performance measure data are reliable and collected in a uniform and timely manner; and
     (h) Making recommendations as necessary.
     (3) The board may contract for the performance reviews with private entities or with the joint legislative audit and review committee.
     (4) The board shall solicit comments on preliminary performance and outcome measure reviews from the reviewed agency. Those comments must be included in the final report. Final reports on performance and outcome measure reviews shall be submitted to the governor, the joint legislative audit and review committee, the state auditor, the appropriate committees of the legislature, and the public. Final reports must be posted on the internet.
     (5) Based on the results of a performance and outcome measure review, the board may recommend to the governor, the joint legislative audit and review committee, and the state auditor that a full performance audit of an agency be undertaken.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.06 RCW to read as follows:
     An agency reviewed under RCW 43.09.435 (as recodified by this act) is responsible for any follow-up and corrective action identified in the review. The reviewed agency must submit a plan for addressing any findings and recommendations identified in the final report. The plan shall include the name of the contact person responsible for each action, the action planned, and the anticipated completion date. If the reviewed agency does not agree with the findings and recommendations or believes action is not required, then the action plan must include an explanation and specific reasons.

NEW SECTION.  Sec. 4   RCW 43.09.435 and 43.09.460 are recodified as new sections in chapter 43.06 RCW.

NEW SECTION.  Sec. 5   The following acts or parts of acts are each repealed:
     (1) RCW 43.09.430 (Performance audits -- Definitions) and 2005 c 385 s 2;
     (2) RCW 43.09.440 (Performance audits -- Collaboration with joint legislative audit and review committee -- Criteria -- Statewide performance review -- Contracting out -- Release of audit reports) and 2005 c 385 s 5;
     (3) RCW 43.09.445 (Performance audits -- Local jurisdictions) and 2005 c 385 s 6;
     (4) RCW 43.09.450 (Performance audits -- Audit of performance audit program) and 2005 c 385 s 8;
     (5) RCW 43.09.455 (Performance audits -- Follow-up and corrective action -- Progress reports) and 2005 c 385 s 9;
     (6) RCW 43.09.460 (Performance audits -- Appropriation -- Budget request) and 2005 c 385 s 11;
     (7) RCW 43.88.162 (State auditor's powers and duties--Performance audits) and 2005 c 385 s 7; and
     (8) RCW 2.56.200 (Performance audits) and 2005 c 385 s 10.