HOUSE BILL REPORT

HB 1310

BYRepresentatives Pruitt, Brekke and Moyer

Reorganizing the department of social and health services.

House Committe on State Government

Majority Report:  Do pass with amendment.  (10)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Rector, Sayan and Silver.

House Staff:Barbara McLain (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT FEBRUARY 28, 1989

BACKGROUND:

In 1970, the Department of Social and Health Services (DSHS) was created as an umbrella agency, combining the Departments of Health, Public Assistance, and Institutions, the Veteran's Rehabilitation Council and the Division of Vocational Rehabilitation.

Since that time DSHS has undergone a major internal reorganization at least six times.  Several divisions have been made into separate departments:  the Department of Veteran's Affairs (1976), the Department of Corrections (1981), the Department of Services for the Blind (1983), and the Schools for the Deaf and Blind (1985).

In recent years the legislature has considered two additional reorganization proposals:  to create a Department of Health and a Department of Children and Family Services.

SUMMARY:

BILL AS AMENDED:  Agencies delivering social and health services should be organized and managed to meet the following standards:

            oClear lines of authority to avoid functional duplication;

            oElimination of barriers that impede effective service delivery;

            oEffective means of communication, integration, and coordination across agencies and programs;

            oFlexibility, adaptability, revitalization, and innovation;

            oEmpowerment of employees and clients to participate in problem- solving;

            oStructural simplicity;

            oA reasonable span of management control; and

            oClear goals and missions for service delivery.

To achieve these standards, a temporary Commission on Social and Health Services is created.  The Commission consists of 16 members:  two legislators from each of the four caucuses of the legislature, and eight persons with knowledge and expertise in public policy and administration appointed by the Governor.  One of the Governor's appointees is to be a member of the Efficiency Commission.  The Governor also appoints the Chair of the Commission from among the members.

The Commission may appoint or contract staff to carry out its duties and is to be located within the Office of Financial Management.  Through the Efficiency Commission, it may receive funding or assistance from private sources.

The Commission shall examine and analyze the following:

            oThe organization and structure of state agencies and programs providing social and health services and any laws which would affect changes in that structure, both in Washington and in other states;

            oThe structure and process of cross-agency program planning and evaluation;

            oVarious approaches for funding social and health services; and

            oThe advantages and disadvantages of alternative service delivery and case management systems, and management structures.

The Commission is to coordinate its research with other study efforts and is to make periodic reports to the Governor, the Efficiency Commission, and appropriate standing committees.

By October 1, 1990, the Commission will submit recommendations, including any proposed legislation, regarding the structure and organization of social and health services to the Governor and the legislature.  By January 1, 1991, the Governor will submit any comments or proposed revisions on the plan to the legislature, which is to approve or disapprove the legislation within the first 30 days of the 1991 session.

Beginning with the effective date of the bill and continuing through any legislative actions on the Commission's recommendations, there is to be a moratorium on reorganization of the Department of Social and Health Services above the division level.

If a Department of Health is created during the 1989 legislative session, the powers and duties transferred to that department and the organization of the department are not to be part of the Commission's study.

AMENDED BILL COMPARED TO ORIGINAL:  If a Department of Health is created during the 1989 legislative session, it is to be exempt from study by the Commission.

Appropriation:    $37,500 from the House of Representatives; $37,500 from the Senate, and $75,000 from the Department of Social and Health Services.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Representative Wes Pruitt, prime sponsor; Representative Joanne Brekke; and Paul Trause, Department of Social and Health Services (partly for).

House Committee - Testified Against:      Mark Brown, Washington Federation of State Employees; and Paul Trause, Department of Social and Health Services (partly against).

House Committee - Testimony For:    Any further study of social and health services needs to take place in an orderly and open public process with legislative participation; there also needs to be protection against dismantling DSHS piece by piece without sufficient forethought.  A major aim of this process would be to rebuild public faith in the state's social and health services.

House Committee - Testimony Against:      Organizational change is not a panacea to solve all problems.  Line employees are demoralized by innumerable studies and reorganizations.  What is needed is stability and a balanced management approach.  The timing of this proposal conflicts with the organizational goals of a new Secretary of DSHS, and with the possible creation of a new Department of Health.