"NEW SECTION.  Sec. 1   The legislature finds that eliminating waste, fraud, and abuse of public assistance benefits should be a top priority of the department of social and health services, and this can best be reflected in a newly organized, accountable, and proactive fraud unit directly under the secretary's authority with the resources necessary to combat fraud and to ensure the confidence of the public in the critical social safety net programs it funds.

NEW SECTION.  Sec. 2   A new section is added to chapter 74.04 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Abuse" means any use of public assistance resources that is contrary to purposes specified in statute whether or not it is defined as a criminal act.
     (2) "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.
     (3) "Fraud" means any of the unlawful practices enumerated in RCW 74.08.331.
     (4) "Office" means the office of program integrity.
     (5) "Public assistance" or "public assistance programs" means public aid to persons in need thereof including assistance grants, food assistance, work relief, disability lifeline benefits, temporary assistance for needy families, and working connections child care subsidies.

Sec. 3   RCW 74.04.012 and 2008 c 74 s 3 are each amended to read as follows:
     (1) There is established a unit within the department for the purpose of detection, investigation, and prosecution of any act prohibited or declared to be unlawful in the programs administered by the department. The secretary will employ qualified supervisory, legal, and investigative personnel for the program. Program staff must be qualified by training and experience.
     (2) For purposes of reducing fraud and abuse in public assistance programs, the office of program integrity is created.
     (a) The director of the office of program integrity is the head of the office and is selected by the secretary and must demonstrate suitable capacity and experience in law enforcement management, public administration, and criminal investigations. The director of the office of program integrity shall:
     (i) Report directly to the secretary;
     (ii) Ensure that each citizen complaint, employee complaint, law enforcement complaint, and agency referral is assessed and, when risk of fraud or abuse is present, each complaint is fully investigated, and is referred for prosecution or recovery when there is substantial evidence of wrongdoing;
     (iii) Develop policies and protocols to allow consistent and real-time review of all cash assistance programs administered by the department to assure that benefits are being used for their statutorily stated goals and analyze alternatives to the cash delivery system that are consistent with federal law, cost-effective, and can help ensure that benefits are being used for appropriate purposes; and
     (iv) Manage fraud investigative tools and resources to effectively balance them between field operations and data analytics.
     (b) The office shall:
     (i) Conduct independent and objective investigations into allegations of fraud and abuse, make appropriate referral to law enforcement when there is substantial evidence of criminal activity, and recover overpayment whenever possible and to the greatest possible degree;
     (ii) Recommend policies, procedures, and best practices designed to detect and prevent fraud and abuse, and to mitigate the risk for fraud and abuse;
     (iii) Inform the secretary, governor, and legislature about vulnerabilities and deficiencies relating to the detection and prevention of fraud and abuse as may be discovered as a result of completed investigations conducted or coordinated by the office; and
     (iv) Assist the fraud ombudsman in the state auditor's office with his or her responsibilities in auditing and overseeing the activities of the office of program integrity under this section.

Sec. 4   RCW 43.20A.605 and 2009 c 549 s 5078 are each amended to read as follows:
     (1) The secretary or a designee shall have full authority to administer oaths and take testimony thereunder, to issue subpoenas requiring the attendance of witnesses before him or her 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.
     (2) Subpoenas issued in adjudicative proceedings are governed by RCW 34.05.588(1).
     (3) Subpoenas issued in the conduct of investigations required or authorized by other statutory provisions or necessary in the enforcement of other statutory provisions shall be governed by RCW 34.05.588(2).

NEW SECTION.  Sec. 5   A new section is added to chapter 74.04 RCW to read as follows:
     (1) In carrying out the provisions of this chapter, the director of the office of program integrity shall have prompt access to all individuals, records, electronic data, reports, audits, reviews, documents, and other materials available to the department of revenue, department of labor and industries, department of early learning, employment security department, department of licensing, and any other government entity that can be used to help facilitate investigations of fraud or abuse as determined necessary by the director of the office of program integrity.
     (2) Whenever information or assistance requested under subsection (1) of this section is, in the judgment of the director, unreasonably refused or not provided, the director of the office of program integrity must report the circumstances to the secretary immediately.

Sec. 6   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 program integrity investigation under RCW 74.04.012, unless the individual has willfully disregarded the truth in providing information to the office.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.09 RCW to read as follows:
     (1) The auditor shall appoint a fraud ombudsman to oversee and annually audit the work of the office of program integrity within the department of social and health services. The ombudsman shall review the fraud investigative work done by the office including cases filed with local prosecuting authorities. The ombudsman shall also have authority to investigate citizen complaints made to the auditor's office related to fraud or abuse in any public assistance program. The department of social and health services shall provide the ombudsman with access to any relevant records it has in its possession related to a fraud or abuse investigation as determined by the fraud ombudsman, including access to historic and real-time electronic benefit transfer card transaction data.
     (2) The fraud ombudsman shall have access to front line personnel in the office of program integrity for purposes of interviews and evaluation.
     (3) The fraud ombudsman must submit a report summarizing its auditing activities of the office to the appropriate committees of the legislature by November 30, 2012, and biennially thereafter. The office of program integrity shall assist the ombudsman to the fullest extent practicable in producing this report. The report shall contain only disclosable information, including:
     (a) A description of significant fraud or abuse, and of vulnerabilities or deficiencies relating to the prevention and detection of fraud or abuse, discovered as a result of investigations completed during the reporting period;
     (b) A description of corrective action taken by the department of social and health services regarding fraud and abuse discovered as a result of investigations conducted by the office of program integrity;
     (c) Recommendations for improving the activities of the office of program integrity 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;
     (e) A summary of matters referred to prosecuting authorities during the reporting period and the charges filed and convictions entered during the reporting period that have resulted from referrals by the office of program integrity;
     (f) A description of the division of duties within the office of program integrity between fraud early detection and criminal investigative assignments and whether the office has appropriate resources to adequately respond to referrals from the department, other agencies, and the public concerning fraud or abuse;
     (g) A description of the ease of access allowed by the office of program integrity to all necessary data and personnel for purposes of conducting the audit; and
     (h) A determination of whether the director of the office of program integrity has met the requirements in RCW 74.04.012.

NEW SECTION.  Sec. 8   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, 2011."