Strike everything after the enacting clause and insert the following:

Sec. 1. "RCW 43.09.185 and 1995 c 301 s 8 are each amended to read as follows:

State agencies and local governments shall ((immediately)) report to the state auditor's office known or suspected loss of public funds or assets or other illegal activity. The state auditor may adopt policies as necessary to implement this section.

Sec. 2. RCW 43.09.186 and 2007 c 41 s 1 are each amended to read as follows:

(1) Within existing funds, the state auditor must establish a toll-free telephone line that is available to public employees and members of the public to recommend measures to improve efficiency in state and local government and to report waste, inefficiency, or abuse, as well as examples of efficiency or outstanding achievement, by state and local agencies, public employees, or persons under contract with state and local agencies.

(2) The state auditor must prepare information that explains the purpose of the hotline, and the hotline telephone number must be prominently displayed in the information. Hotline information must be posted in all government offices in locations where it is most likely to be seen by the public. The state auditor must publicize the availability of the toll-free hotline through print and electronic media and other means of communication with the public.

(3) The state auditor must designate staff to be responsible for processing recommendations for improving efficiency and reports of waste, inefficiency, or abuse received through the hotline. The state auditor must conduct an initial review of each recommendation for efficiency and report of waste, inefficiency, or abuse made by public employees and members of the public. Following the initial review, the state auditor must determine which assertions require further examination or audit under the auditor's current authority and must assign qualified staff.

(4) The identity of a person making a report through the hotline, by email through the state auditor's web site, or other means of communication is confidential at all times unless the person making a report consents to disclosure by written waiver, or until the investigation described in subsection (3) of this section is complete. All documents related to the report and subsequent investigation are also confidential until completion of the investigation or audit or when the documents are otherwise statutorily exempt from public disclosure.

(5) The state auditor must prepare a written determination of the results of the investigation performed, including any background information that the auditor deems necessary. The state auditor must report publicly the conclusions of each investigation and recommend ways to correct any deficiency and to improve efficiency. The reports must be distributed to the affected state and local agencies.

(6) The state auditor must provide an annual overview and update of hotline investigations, including the results and efficiencies achieved, to the legislature and to the appropriate legislative committees.

Sec. 3. RCW 43.09.420 and 1993 c 216 s 1 are each amended to read as follows:

As part of the routine audits of state agencies, the state auditor shall audit all revolving funds, local funds, and other state funds and state accounts that are not managed by or in the care of the state treasurer and that are under the control of state agencies, including but not limited to state departments, boards, and commissions. In conducting the audits of these funds and accounts, the auditor shall examine revenues and expenditures or assets and liabilities, accounting methods and procedures, and recordkeeping practices. ((In addition to including the results of these examinations as part of the routine audits of the agencies, the auditor shall report to the legislature on the status of all such funds and accounts that have been examined during the preceding biennium and any recommendations for their improved financial management. Such a report shall be filed with the legislature within five months of the end of each biennium regarding the funds and accounts audited during the biennium. The first such report shall be filed by December 1, 1993, regarding any such funds and accounts audited during the 1991-93 biennium.))

(1) 2012 c 164 s 709 (uncodified);

(2) 2012 c 1 s 201 (uncodified);

(3) 2005 c 385 s 1 (uncodified);

(4) RCW 43.09.430 (Performance audits—Definitions) and 2005 c 385 s 2;

(5) RCW 43.09.435 (Performance audits—Citizen advisory board) and 2005 c 385 s 3;

(6) 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 2012 c 229 s 817 & 2005 c 385 s 5;

(7) RCW 43.09.445 (Performance audits—Local jurisdictions) and 2005 c 385 s 6;

(8) RCW 43.09.450 (Performance audits—Audit of performance audit program) and 2005 c 385 s 8;

(9) RCW 43.09.455 (Performance audits—Follow-up and corrective action—Progress reports) and 2005 c 385 s 9;

(10) RCW 43.09.460 (Performance audits—Appropriation—Budget request) and 2005 c 385 s 11; and

(11) RCW 43.88.162 (State auditor's powers and duties—Performance audits) and 2005 c 385 s 7."

On page 1, line 1 of the title, after "procedures;" strike the remainder of the title and insert "amending RCW 43.09.185, 43.09.186, and 43.09.420; repealing RCW 43.09.265, 43.09.430, 43.09.435, 43.09.440, 43.09.445, 43.09.450, 43.09.455, 43.09.460, and 43.88.162; and repealing 2012 c 164 s 709, 2012 c 1 s 201, and 2005 c 385 s 1 (uncodified)."