BILL REQ. #:  S-1586.1 

Read first time 02/19/2003.   Referred to Committee on Ways & Means.

     AN ACT Relating to government accountability; adding a new section to chapter 43.88 RCW; adding new sections to chapter 43.131 RCW; adding a new chapter to Title 43 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   LEGISLATIVE FINDINGS. The legislature finds that:
     (1) Public confidence in government is essential. Public programs must continuously improve in quality, efficiency, and effectiveness in order to increase public trust;
     (2) Washington state government and other entities that receive tax dollars must continuously improve the way they operate and deliver services so citizens receive maximum value for their tax dollars;
     (3) State government must establish priorities for the delivery of governmental services and continually reassess the ability of state agencies, programs, and activities to contribute to those priorities. The highest priority programs must be evaluated to determine if they are operating at maximum efficiency, while the lowest priority programs must be assessed to determine their continued viability;
     (4) Fair, independent, professional performance audits of state agencies by the state auditor are essential to improving the efficiency and effectiveness of government.

NEW SECTION.  Sec. 2   PRIORITIES OF GOVERNMENT. (1) The legislature finds that the highest priority functions of state government serve the following objectives:
     (a) Improve student achievement in elementary, middle, and high schools;
     (b) Improve the quality and productivity of the state's work force;
     (c) Improve the value of a state college or university education;
     (d) Improve the health of the state's citizens;
     (e) Improve the security of the state's vulnerable children and adults;
     (f) Improve the economic vitality of businesses and individuals;
     (g) Improve statewide mobility of people, goods, information, and energy;
     (h) Improve the safety of people and property;
     (i) Improve the quality of the state's natural resources; and
     (j) Improve cultural and recreational opportunities throughout the state.
     (2) The ten priority functions of state government identified in this section shall form the basis of the activity assessment under section 4 of this act.

NEW SECTION.  Sec. 3   PRIORITIES OF GOVERNMENT OVERSIGHT BOARD.
(1) The priorities of government oversight board is established to oversee performance audits and priority-based activity assessments of state government agencies, programs, and activities as provided in sections 4 and 5 of this act.
     (2) The board shall consist of fifteen members as follows:
     (a) The director of financial management, who shall serve as chair;
     (b) The state auditor;
     (c) The chairs and ranking minority members of the senate committee on ways and means and the house of representatives committee on appropriations;
     (d) The legislative auditor of the joint legislative audit and review committee;
     (e) The director of the state institute for public policy;
     (f) One representative of the private sector with expertise in organizational improvement strategies, to be appointed by and serve at the pleasure of the governor;
     (g) One representative of state employees, to be appointed by and serve at the pleasure of the governor, in consultation with state employee organizations; and
     (h) Five citizens to be selected by the governor as follows: Each major caucus of the house of representatives and the senate shall submit a list of three names. The lists shall not include members of the legislature. The governor shall select one person from each list provided by each caucus and shall also select a fifth citizen of the governor's choice. The citizen appointees under this subsection (2)(h) shall be individuals who have a basic understanding of state government operations with knowledge and expertise in performance management, quality management, strategic planning, performance assessments, or closely related fields. The citizen appointees 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, two members shall serve four-year terms, two members shall serve three-year terms, and one member shall serve a two-year term, 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 office of financial management shall provide lead staff support to the priorities of government oversight board. Additional staff support shall be provided by the other public members of the board.
     (4) The members of the priorities of government oversight board shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. Members of the committee who are not otherwise employed by the state shall be compensated under RCW 43.03.220.

NEW SECTION.  Sec. 4   PRIORITIES OF GOVERNMENT ACTIVITY ASSESSMENTS. (1) By January 1st of each year, the priorities of government oversight board shall select one of the priority functions of government identified in section 2 of this act. By July 1st of each year, for all agency programs and activities within this priority function of government, the board shall determine the relative priority of each program and activity based on the program or activity's contribution to the overall objectives of the function.
     (2) Based on the priority list developed under subsection (1) of this section, the board shall select up to two priority programs or activities to be the subject of performance audits conducted under section 5 of this act. One of the programs or activities selected for a performance audit may be from a different priority objective under section 2 of this act. The programs or activities shall be selected for performance audits based on evidence that the program or activity would likely benefit from the evaluation and review.
     (3) Based on the priority list developed under subsection (1) of this section, one or more of the lowest priority programs or activities shall be the subject of activity assessments as provided in this subsection. The number and scope of activity assessments conducted under this subsection shall be determined by the board, subject to the availability of funds.
     (a) Each activity assessment shall be conducted by an independent contractor selected by the board. For each activity assessment, the contractor shall address the following questions:
     (i) Does the program or activity continue to serve the purpose for which it was created?
     (ii) In comparison to other programs and priorities, does this purpose continue to merit the use of the state's limited resources?
     (iii) Does this program or activity continue to contribute to the priorities of government identified in section 2 of this act?
     (iv) Are there better alternatives for the use of these resources or to accomplish the objective of the program or activity?
     (b) The board shall release the activity assessment to the citizens of the state, the governor, and the appropriate legislative committees. The board shall also submit proposed legislation, as appropriate, to implement the findings of the activity assessment.

NEW SECTION.  Sec. 5   PERFORMANCE AUDITS. (1) The priorities of government oversight board and the state auditor shall jointly oversee performance audits of those agencies, programs, and activities identified by the board under the activity assessment process in section 4 of this act.
     (2) The board shall establish criteria for performance audits. Agencies shall be audited using criteria that include generally accepted government auditing standards as well as legislative mandates and performance objectives established by state agencies. Mandates include, but are not limited to, agency strategies, timelines, program objectives, and mission and goals as required in RCW 43.88.090.
     (3) The state auditor shall contract with public and private organizations to conduct the performance audits under this section. The audits may include an evaluation of:
     (a) Programs and services that can be eliminated, reduced, consolidated, or enhanced;
     (b) Identification of funding sources of the state agency, program, or activity that can be eliminated, reduced, consolidated, or enhanced;
     (c) Analysis of gaps and overlaps in programs and services and recommendations for improving, eliminating, blending, or separating functions to correct gaps or overlaps;
     (d) Evaluation of planning, budgeting, and program evaluation policies and practices;
     (e) Evaluation of personnel systems operation and management;
     (f) Evaluation of state purchasing operations and management policies and practices; and
     (g) Evaluation of organizational structure and staffing levels, particularly in terms of the ratio of managers and supervisors to nonmanagement personnel.
     (4) Audit staff shall have access to any state agency records, data, and other information deemed necessary to carry out the audit. State agencies shall provide the requested information at no cost and in a timely manner.
     (5) The state auditor shall solicit comments on preliminary performance audit reports from the audited state agency, the governor, the office of financial management, the board, and the joint legislative audit and review committee.
     (6) The final reports shall be submitted to the board by the state auditor. The board and the state auditor shall jointly release final reports to the citizens of the state, the governor, and the appropriate legislative committees. The board and the state auditor shall also submit proposed legislation, as appropriate, to implement the findings of the performance audit. Final performance audit reports shall be available on the internet.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.88 RCW to read as follows:
     In addition to the authority given the state auditor in RCW 43.88.160(6), the state auditor is authorized to conduct performance audits identified in section 5 of this act.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.131 RCW to read as follows:
     The priorities of government oversight board created in section 3 of this act and the board's powers and duties shall be terminated June 30, 2010, as provided in section 8 of this act. The joint legislative audit and review committee shall contract with a private entity for the review in this chapter.

NEW SECTION.  Sec. 8   A new section is added to chapter 43.131 RCW to read as follows:
     The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2011:
     (1) Section 1 of this act;
     (2) Section 2 of this act;
     (3) Section 3 of this act;
     (4) Section 4 of this act; and
     (5) Section 5 of this act.

NEW SECTION.  Sec. 9   Sections 1 through 5 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 10   Section captions used in this act are not any part of the law.

NEW SECTION.  Sec. 11   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2003, in the omnibus appropriations act, this act is null and void.