HB 1197

HOUSE BILL REPORT
HB 1197

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:
State Government & Tribal Affairs

Sponsors: Representatives Miloscia, Ormsby, Hunt, McDermott, Armstrong, P. Sullivan and Haigh.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Hunt, Chair; Appleton, Vice Chair; Chandler, Ranking Minority Member; Armstrong, Assistant Ranking Minority Member; Green, Kretz, McDermott, Miloscia and Ormsby.

Background:

In 2005, the Legislature enacted requirements that all state agencies must develop and implement a quality management, accountability, and performance system to improve public service. A quality management accountability and performance system is defined as a nationally recognized, integrated, interdisciplinary system of measures, tools, and reports used to improve the performance of a work unit or organization.

Regular assessment is an integral component of these management systems. Such assessment identifies best practices and opportunities for improvement. Starting no later than 2008, and at least once every three years thereafter, each agency must apply to the Washington State Quality Award (Quality Award), or similar organization, for an independent assessment of its quality management, accountability, and performance system. The assessment must consider the effectiveness of all elements of the management system, evaluating leadership, strategic planning, customer focus, analysis, and information.

The Quality Award offers three options for evaluation:

Both the application for the quarterly assessment and the annual award are referred to as award applications. Applicants for both the quarterly assessment and the annual award must commit two examiners to the Quality Award the year prior to application, the year of application, or the year after application.

The annual Quality Award has a 50 page application that receives a phased review, using the Quality Award full criteria for performance excellence. The review process includes a possible site visit. Upon completion of the review process, applicants receive a Certificate of Commitment, an Achievement Award, a Leadership Award, or an Excellence Award. The annual award is accompanied by an overall score.

The quarterly assessment, or "Lite Award," is accepted by the Quality Award on a quarterly basis. This is a 15-page application that does not receive an actual award or overall score. The feedback is in the form of a 5-10 page report completed by the examiners with scores for each of the seven categories assessed.

Summary of Substitute Bill:

The University of Washington, Washington State University, the Department of Social and Health Services, the Department of Transportation, the Department of Labor and Industries, the Washington State Patrol, the Employment Security Department, the Department of Health, and the Department of Licensing are required to apply for the Quality Award once every three years beginning in 2011. From 2011, these agencies are exempted from applying for an assessment by the Quality Award.

The Governor is required to post applications for the annual Quality Award and for the quarterly assessment on a web page for public viewing.

Substitute Bill Compared to Original Bill:

Changes the number of agencies required to apply for the annual Washington State Quality Award from all state agencies to those named in the substitute; the date for application to the annual award for the agencies who must apply is changed from 2010 to 2011; and, the Governor must post award applications for public viewing and not actual scores.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony:

(In support) Passing HB 1970 in 2005 was a significant achievement. The bill requires state agencies to implement quality management and performance systems. For the first time, the Governor can now hold her agencies accountable in a public forum. It also requires state agencies to apply for the Washington State Quality Award (Quality Award), which is based on the Baldridge criteria. The Quality Award has two assessments, the high-school version and the graduate version. This bill will require state agencies to move beyond the high-school version to the graduate version by 2010. Some agencies, such as Department of Community Trade and Economic Development, the Washington Department of Veterans Affairs, the Transportation Investment Board, and the Attorney General's Office, have already demonstrated their excellence and volunteered to do this. They should be recognized. Finally, this bill has the requirement that the Governor make available on her website the applications. This is important to sharing best practices among agencies.

(With concerns) There has been significant progress since 2005 in implementing HB 1970. There are three phases of implementation: the self-assessment, which agencies are currently doing; the assessment, which agencies must do by 2008; and the award application, which would be required by 2010 under this bill, but perhaps beginning in 2011. The agencies are in the middle of phase one. This phase is about identifying where agencies can make improvement so they are prepared for the external assessment process. Very few agencies have moved to the next phase. The Governor's office needs to assess the results on those phases before making a determination about what time and effort is appropriate for further implementation. Regarding application for the Quality Award, the Governor feels that it is important to encourage agencies to apply, but that a mandate can be counter-productive. Further, it is not clear how beneficial it would be to publish the scores for viewing, and this is against Quality Award policy.

(Opposed) None.

Persons Testifying: (In support) Representative Miloscia, prime sponsor.

(With concerns) Larisa Benson, Governor's Office.