BILL REQ. #:  H-0646.1 

Read first time 01/14/2003.   Referred to Committee on State Government.

     AN ACT Relating to government accountability; adding new sections to chapter 43.41 RCW; adding a new section to chapter 43.09 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that:
     (1) Public confidence in government is essential and programs to continuously improve quality, efficiency, and effectiveness of public functions must be enhanced in order to restore public trust;
     (2) Washington state government and other entities that receive tax dollars must transform the way it operates and delivers services in order to respond to severe, ongoing budget shortfalls and declining revenues, and ensure citizens receive value for their tax dollars;
     (3) A strong, objective, and independent board is necessary to help develop, oversee, and monitor accountability systems for all government to ensure that public entities accomplish intended goals and outcomes, and that management systems, customer satisfaction, and efficiency are world class in performance; and
     (4) Fair, independent, professional performance audits of government systems by the state auditor are essential to improving the efficiency and effectiveness of government entities.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.41 RCW to read as follows:
     The citizen accountability and progress board is created to guide and assist agencies in developing data-driven, valid, and reliable performance standards, measures, outcomes, and goals, designed to manage the money agencies spend, the services they provide, the employees and processes they control, and the businesses, people, and resources they regulate. The board shall seek, review, and recommend best practices for all agencies.
     (1) The board shall consist of nine members appointed by the governor. Individuals appointed to the board shall be from a diverse range of backgrounds and be able to demonstrate knowledge and expertise in performance management, quality management, strategic planning, or closely related fields. The board shall elect a chair and a vice-chair. The governor, the president of the senate, the speaker of the house of representatives, the chief justice of the Washington supreme court, and the state auditor, or their designees, shall serve as ex officio nonvoting members of the board.
     (2) Appointed members shall serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial members, four members shall serve four-year terms, three members shall serve three-year terms, and two members shall serve two-year terms, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.
     (3) The department of community, trade, and economic development, office of community development, shall provide clerical, technical, and management personnel to the board to serve as the board's staff. Staff from the office of financial management and the state auditor's office shall assist the board as needed.
     (4) The board shall meet together as a board as the board determines necessary at times and places specified by the call of the chair or a majority of the members of the board.
     (5) The members of the board shall be compensated in accordance with RCW 43.03.220 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (6) The board may adopt rules in accordance with chapter 34.05 RCW.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.41 RCW to read as follows:
     The citizen accountability and progress board shall:
     (1) Review the various government performance measurement, audit, and accountability systems currently in place and develop recommendations to integrate into one performance measurement system for all governments by December 15, 2004, and continually review and provide recommendations for improvement every two years;
     (2) Establish a program and strategic plan for the conduct of a phased-in independent performance audit and yearly performance scoring of state agencies and other government entities and their programs and functions. As part of this program, the board shall:
     (a) Consult with and seek input from elected officials and professionals with a background in performance management. Performance audit criteria shall be distributed before an audit and scoring. The board shall consider already developed best practices and audit criteria used by government or nongovernment organizations;
     (b) Submit the results and advise the governor and the legislature on the conduct of the performance audit and scoring program by December 15th of each year; and
     (c) Contract or partner with public or private entities that have expertise in the conduct of public sector reviews to perform the audits and performance scoring of all government agencies. Initial areas to be audited and scored shall be quality management, productivity and fiscal efficiency, program effectiveness, contract management and oversite, internal audit, internal and external customer satisfaction, and statutory and regulatory compliance;
     (3) Assist in the development of criteria for performance audits conducted by the state auditor and advise in the implementation plan for performance audits for all state agencies. As part of this effort:
     (a) Submit the results of the state auditor's performance audit and performance scoring to the governor and the legislature by December 15th of each year; and
     (b) Release the state auditor's audit results and performance scoring to the public and provide public recognition for outstanding effort;
     (4) Identify and evaluate best practices, audit findings, and performance scoring in order to identify opportunities to develop government partnerships and eliminate program duplications and redundancies resulting in increased quality, effectiveness, and efficiency of state agencies; and
     (5) Collect, disseminate, and share appropriate best practices with all state agencies.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.41 RCW to read as follows:
     The definitions in this section apply to sections 2 through 4 of this act, unless the context clearly requires otherwise.
     (1) "Performance audit" means an objective systematic assessment, survey, or directed self-assessment of state agencies, programs, functions, or activities to provide for public accountability. Initial performance audits and performance scoring shall include, but are not limited to:
     (a) Quality and process management practices;
     (b) Independent and internal audit functions;
     (c) Internal and external customer satisfaction;
     (d) Program effectiveness;
     (e) Fiscal productivity and efficiency;
     (f) Regulatory and procedural compliance; and
     (g) Any other areas as appropriate.
     (2) "State agency" means elective officers and offices, and every other office, officer, department, board, council, committee, commission, or authority of the state government now existing or hereafter created, and their vendors or subcontractors, supported, wholly or in part, by appropriations from the state treasury or funds under its control, or by the levy, assessment, collection, or receipt of fines, penalties, fees, licenses, sales of commodities, service charges, rentals, grants-in-aid, or other income provided by law, and all state educational, penal, reformatory, charitable, eleemosynary, or other institutions, supported, wholly or in part, by appropriations from the state treasury or funds under its control.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.09 RCW to read as follows:
     (1) The state auditor, with advice from the citizen accountability and progress board, shall develop and implement a plan for conducting recurring performance audits of government systems and operations.
     (2) With advice from the board, the state auditor shall develop an implementation plan for a phased-in audit schedule for auditing all state government agencies and local governments and schools. All audits shall be designed to be completed within a six-month period.
     (3) The state auditor shall assist the board in the collection, dissemination, tracking, and sharing of appropriate best practices with all state agencies, schools, and local governments.
     (4) The state auditor shall submit a report of findings for the performance audits to the board December 1st of each year.
     (5) The state auditor may conduct performance audits.
     (6) The definitions in section 4 of this act apply to this section.