[atlas:bill]

AN ACT Relating to public accountability and the review of state agency performance and outcome measures; amending RCW 44.28.071; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that the use of outcome and performance measures is necessary for demonstrating the accountability of state government to the public. The legislature also finds that performance measurement is integral to the efficient and effective management and operation of state agencies and programs. Thus, the legislature intends to increase the review of these measures to provide greater accountability to the public and to ensure that state government has effective systems for assessing performance.

NEW SECTION. Sec. 2. (1) The joint legislative audit and review committee, with the cooperation of the office of the state auditor, shall conduct reviews of the performance and outcome measures of those state agencies and programs identified in this section. In conducting the reviews, the joint legislative audit and review committee and the office of the state auditor shall work in cooperation with the office of financial management and state agency personnel. During the 2001-03 biennium, the following reviews shall be undertaken and completed:

(a) The joint legislative audit and review committee shall conduct reviews of the division of alcohol and substance abuse and the children's administration in the department of social and health services, as well as the department of ecology.

(b) The office of the state auditor shall conduct reviews of the department of licensing, the department of general administration, and the department of revenue.

(2) Both the joint legislative audit and review committee and the office of the state auditor shall develop a schedule and common methodology for conducting these reviews. The reviews shall include, but not be limited to, the following:

(a) Determine whether the performance and outcome measures are consistent with legislative mandates, strategic plans, mission statements, and goals and objectives;

(b) Examine how agency management uses the measures to manage resources in an efficient and effective manner;

(c) Assess how performance benchmarks are established for the purpose of assessing overall performance compared to external standards and benchmarks;

(d) Examine how an analysis of the measurement data is used to make planning and operational improvements;

(e) Determine how performance and outcome measures are used in the budget planning, development, and allotment processes;

(f) Review how performance data are reported to and used by the legislature;

(g) Assess whether the performance measure data are reliable and collected in a uniform and timely manner; and

(h) Make recommendations as necessary.

(3) Completed performance measure reviews shall be presented to the joint legislative audit and review committee and published in the same manner as prescribed for performance audits in RCW 44.28.088. Final reports shall also be transmitted to the appropriate policy and fiscal committees of the legislature.

Sec. 3. RCW 44.28.071 and 1996 c 288 s 9 are each amended to read as follows:

(1) In conducting performance audits and other reviews, the legislative auditor shall work closely with the chairs and staff of standing committees of the senate and house of representatives, and may work in consultation with the state auditor and the director of financial management.

(2) The legislative auditor may contract with and consult with public and private independent professional and technical experts as necessary in conducting the performance audits. The legislative auditor should also involve front-line employees and internal auditors in the performance audit process to the highest possible degree.

(3) The legislative auditor shall work with the legislative evaluation and accountability program committee and the office of financial management to develop information system capabilities necessary for the performance audit requirements of this chapter.

(4) The legislative auditor shall work with the ((~~legislative office of performance review and the~~)) office of financial management and the office of the state auditor to facilitate the implementation of effective performance measures throughout state government. In agencies and programs where effective systems for performance measurement exist, the measurements incorporated into those systems should be a basis for performance audits conducted under this chapter.

NEW SECTION. Sec. 4. 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 immediately.