BILL REQ. #:  H-4341.1 

Read first time 02/23/12.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to government performance; amending RCW 42.52.320, 43.17.390, 82.08.020, 82.12.0201, 43.06.335, 43.17.390, 43.185C.210, 43.330.080, and 43.330.084; adding new sections to chapter 42.52 RCW; adding new sections to chapter 43.09 RCW; adding a new section to chapter 44.04 RCW; adding a new section to chapter 44.28 RCW; and making appropriations.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 42.52 RCW to read as follows:
     It is the intent of the legislature to improve the ethical and moral standards, culture, and conduct of all elected senior leadership and staff to become the highest in the nation. In addition, the legislature intends to increase public confidence in the state's governmental processes, in the legislature, and the leadership of its public agencies to be the highest in the nation. The legislature also intends to improve ethics and integrity education and training programs and to make the ethics and integrity of all clients, partners, and vendors to be the best in the nation. With this work, the legislature, elected officials, senior executive leadership, and staff will be recognized as state and national leaders in ethics and integrity.

Sec. 2   RCW 42.52.320 and 1994 c 154 s 202 are each amended to read as follows:
     (1) The legislative ethics board shall enforce this chapter and rules adopted under it with respect to members and employees of the legislature.
     (2) The legislative ethics board shall:
     (a) Develop educational materials and training with regard to legislative ethics for legislators and legislative employees;
     (b) Issue advisory opinions;
     (c) Adopt rules or policies governing the conduct of business by the board, and adopt rules defining working hours for purposes of RCW 42.52.180 and where otherwise authorized under chapter 154, Laws of 1994;
     (d) Investigate, hear, and determine complaints by any person or on its own motion;
     (e) Impose sanctions including reprimands and monetary penalties;
     (f) Recommend suspension or removal to the appropriate legislative entity, or recommend prosecution to the appropriate authority; ((and))
     (g) Establish criteria regarding the levels of civil penalties appropriate for different types of violations of this chapter and rules adopted under it;
     (h) Develop a legislative plan to provide overall direction and accountability for legislators and staff;
     (i) Coordinate and work with the executive ethics board and the commission on judicial conduct;
     (j) Assess and evaluate the house of representatives' and the senate's ethical culture through employee and stakeholder surveys and publish an annual report that shall be made public; and
     (k) Solicit outside evaluations, studies, and recommendations for improvements from academics, nonprofit organizations, the public disclosure commission, and other entities with expertise in ethics, integrity, and the public sector.
     (3) The board may:
     (a) Issue subpoenas for the attendance and testimony of witnesses and the production of documentary evidence relating to any matter under examination by the board or involved in any hearing;
     (b) Administer oaths and affirmations;
     (c) Examine witnesses; and
     (d) Receive evidence.
     (4) Subject to RCW 42.52.540, the board has jurisdiction over any alleged violation that occurred before January 1, 1995, and that was within the jurisdiction of any of the boards established under chapter 44.60 RCW. The board's jurisdiction with respect to any such alleged violation shall be based on the statutes and rules in effect at (([the])) the time of the violation.

NEW SECTION.  Sec. 3   A new section is added to chapter 42.52 RCW to read as follows:
     The governor's integrity and ethics award program is created, to be administered by the executive ethics board. Annually, the executive ethics board shall recognize local governments, private sectors businesses, educational institutions, and nonprofit organizations with the best ethics and integrity program.

NEW SECTION.  Sec. 4   A new section is added to chapter 42.52 RCW to read as follows:
     All state officers and employees must attend annual ethics and integrity training. Failure to fulfill this annual obligations shall result in the forfeiture of all compensation related to a person's office or employment.

NEW SECTION.  Sec. 5   A new section is added to chapter 42.52 RCW to read as follows:
     (1) Each head of agency must develop an annual ethics and integrity plan for leadership and staff of the agency. The plan must be updated annually, be made available to the public, and:
     (a) Include project management, targets, and timelines;
     (b) Integrate with other accountability, ethics, and integrity programs;
     (c) Identify national and international best practices and superior results;
     (d) Identify opportunities for improvement and barriers to success;
     (e) Develop public-private partnerships where appropriate; and
     (f) Provide an annual report to the legislature that includes recommendations for improving applicable statutes and existing programs and results.
     (2) In addition, each head of agency must create an independent advisory committee of employees and citizens.
     (3) The governor must perform a government accountability and performance review on a quarterly basis.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.09 RCW to read as follows:
     The state auditor must:
     (1) Develop a governor's integrity and ethics award program, including criteria for determining annual award recipients;
     (2) Develop a statewide plan to provide overall direction and accountability in all executive branch agencies and statewide elected offices;
     (3) Coordinate and work with the commission on judicial conduct and the legislative ethics board;
     (4) Assess and evaluate each agency's ethical culture through employee and stakeholder surveys and publish an annual report on the results to the public; and
     (5) Solicit outside evaluations, studies, and recommendations for improvements from academics, nonprofit organizations, the public disclosure commission, or other entities with expertise in ethics, integrity, and the public sector.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.09 RCW to read as follows:
     The auditor shall establish an annual assessment and performance grading program. The program shall consist of conducting annual performance assessments and grading state agency performance. Areas to be assessed shall include quality management, productivity, fiscal efficiency, program effectiveness, contract management and oversight, internal audit, internal and external customer satisfaction, statutory and regulatory compliance, and technology systems and data management services. As part of this program, the auditor shall:
     (1) Consult with and seek input from elected officials, state employees including front-line employees, and professionals with a background in performance management for establishing the grading standards. In developing the criteria, the auditor shall consider already developed best practices and audit criteria used by government or nongovernment organizations. Before the assessment, the agencies must be given the criteria for the assessment and the standards for grading;
     (2) Contract or partner with public or private entities that have expertise in either public sector reviews or technical expertise, or both, in individual assessment areas to perform the assessments and grading of all state agencies. The auditor may contract or partner with more than one entity for different assessment areas; and
     (3) Submit the results of the assessment and grading program to the governor, the office of financial management, appropriate legislative committees, and the public by December 15th of each year. The results of the annual assessments and performance grading must be posted on the internet.

NEW SECTION.  Sec. 8   A new section is added to chapter 43.09 RCW to read as follows:
     Beginning January 1, 2013, and every four years thereafter, the state auditor must audit the executive ethics board.

Sec. 9   RCW 43.17.390 and 2009 c 564 s 931 are each amended to read as follows:
     (1) Starting in 2012, and at least once every three years thereafter, each agency shall apply to the Washington ((state quality)) performance audit award((, or similar organization,)) using Baldrige criteria for an independent assessment of its quality management, accountability, and performance system. The assessment shall evaluate the effectiveness of all elements of its management, accountability, and performance system, including: Leadership, strategic planning, customer focus, analysis and information, employee performance management, and process improvement. The purpose of the assessment is to recognize best practice and identify improvement opportunities.
     (2) Pursuant to subsection (1) of this section, state agencies must provide electronic copies of Washington performance audit award assessments, feedback reports, and corrective action plans to the government management accountability and performance program, the joint legislative audit and review committee, and the state auditor. Each of these entities must post the assessments, feedback reports, and corrective action plans on its web site.
     (3) Agencies must track employees trained in performance management and report to the government management accountability and performance program.
     (4) The government management accountability and performance program must coordinate with the Washington performance audit award to develop an implementation plan with dates for all state agencies to accomplish a full assessment by 2013 and every three years thereafter until a score of sixty percent is obtained.
     (5) The office of financial management must use the Washington performance audit award assessments as a measure for the priorities of government program.
     (6) A performance audit of the priorities of government program must be completed by January 2013. The state auditor must review each state agency's performance management system, Washington performance audit award assessment, annual self-assessments, and corrective action plans for all performance audits.
     (7) As used in this section, "agency" has the definition in RCW 42.56.010.

NEW SECTION.  Sec. 10   A new section is added to chapter 44.04 RCW to read as follows:
     The house of representatives must complete a Washington performance audit award assessment by June 30, 2013, and every two years thereafter until a score of sixty percent is obtained.

NEW SECTION.  Sec. 11   A new section is added to chapter 44.28 RCW to read as follows:
     Beginning January 1, 2013, and every four years thereafter, the joint legislative audit and review committee must audit the legislative ethics board and the house of representatives' and the senate's ethics and integrity programs.

Sec. 12   RCW 82.08.020 and 2011 c 171 s 120 are each amended to read as follows:
     (1) There is levied and collected a tax equal to six and five-tenths percent of the selling price on each retail sale in this state of:
     (a) Tangible personal property, unless the sale is specifically excluded from the RCW 82.04.050 definition of retail sale;
     (b) Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050 definition of retail sale;
     (c) Services, other than digital automated services, included within the RCW 82.04.050 definition of retail sale;
     (d) Extended warranties to consumers; and
     (e) Anything else, the sale of which is included within the RCW 82.04.050 definition of retail sale.
     (2) There is levied and collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.
     (3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.
     (4) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, ((off-road vehicles as defined in RCW 46.04.365,)) nonhighway vehicles as defined in RCW 46.09.310, and snowmobiles as defined in RCW 46.04.546.
     (5) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section must be dedicated to funding comprehensive performance audits required under RCW 43.09.470 and the performance assessments and scorecard program in section 7 of this act. The revenue identified in this subsection must be deposited in the performance audits of government account created in RCW 43.09.475.
     (6) The taxes imposed under this chapter apply to successive retail sales of the same property.
     (7) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 13   RCW 82.12.0201 and 2006 c 1 s 4 are each amended to read as follows:
     Beginning on December 8, 2005, 0.16 percent of the taxes collected under RCW 82.12.020 based on the rate in RCW 82.08.020(1) shall be dedicated to funding comprehensive performance audits under RCW 43.09.470 and the performance assessments and scorecard program under section 7 of this act. Revenue identified in this section shall be deposited in the performance audits of government account created in RCW 43.09.475.

Sec. 14   RCW 43.06.335 and 2004 c 245 s 1 are each amended to read as follows:
     (1) The Washington ((quality)) performance audit award council shall be organized as a private, nonprofit corporation, in accordance with chapter 24.03 RCW and this section.
     (2) The council shall oversee the governor's Washington ((state quality)) performance audit award program. The purpose of the program is to improve the overall competitiveness of the state's economy by stimulating Washington state industries, business, and organizations to bring about measurable success through setting standards of organizational excellence, encouraging organizational self-assessment, identifying successful organizations as role models, and providing a valuable mechanism for promoting and strengthening a commitment to continuous quality improvement in all sectors of the state's economy. The governor shall annually present the award to organizations that improve the quality of their products and services and are noteworthy examples of high-performing work organizations, as determined by the council in consultation with the governor or appointed representative.
     (3) The governor shall appoint a representative to serve on the board of directors of the council.
     (4) The council shall establish a board of examiners, a recognition committee, and such other committees or subgroups as it deems appropriate to carry out its responsibilities.
     (5) The council may conduct such public information, research, education, and assistance programs as it deems appropriate to further quality improvement in organizations operating in the state of Washington.
     (6) The council shall:
     (a) Approve and announce award recipients;
     (b) Approve guidelines to examine applicant organizations;
     (c) Approve appointment of board of examiners; and
     (d) Arrange appropriate annual awards and recognition for recipients.

Sec. 15   RCW 43.17.390 and 2009 c 564 s 931 are each amended to read as follows:
     Starting in 2012, and at least once every three years thereafter, each agency shall apply to the Washington ((state quality)) performance audit award council, or similar organization, for an independent assessment of its quality management, accountability, and performance system. The assessment shall evaluate the effectiveness of all elements of its management, accountability, and performance system, including: Leadership, strategic planning, customer focus, analysis and information, employee performance management, and process improvement. The purpose of the assessment is to recognize best practice and identify improvement opportunities.

Sec. 16   RCW 43.185C.210 and 2011 c 353 s 6 are each amended to read as follows:
     (1) The transitional housing operating and rent program is created in the department to assist individuals and families who are homeless or who are at risk of becoming homeless to secure and retain safe, decent, and affordable housing. The department shall provide grants to eligible organizations, as described in RCW 43.185.060, to provide assistance to program participants. The eligible organizations must use grant moneys for:
     (a) Rental assistance, which includes security or utility deposits, first and last month's rent assistance, and eligible moving expenses to be determined by the department;
     (b) Case management services designed to assist program participants to secure and retain immediate housing and to transition into permanent housing and greater levels of self-sufficiency;
     (c) Operating expenses of transitional housing facilities that serve homeless families with children; and
     (d) Administrative costs of the eligible organization, which must not exceed limits prescribed by the department.
     (2) Eligible to receive assistance through the transitional housing operating and rent program are:
     (a) Families with children who are homeless or who are at risk of becoming homeless and who have household incomes at or below fifty percent of the median household income for their county;
     (b) Families with children who are homeless or who are at risk of becoming homeless and who are receiving services under chapter 13.34 RCW;
     (c) Individuals or families without children who are homeless or at risk of becoming homeless and who have household incomes at or below thirty percent of the median household income for their county;
     (d) Individuals or families who are homeless or who are at risk of becoming homeless and who have a household with an adult member who has a mental health or chemical dependency disorder; and
     (e) Individuals or families who are homeless or who are at risk of becoming homeless and who have a household with an adult member who is an offender released from confinement within the past eighteen months.
     (3) All program participants must be willing to create and actively participate in a housing stability plan for achieving permanent housing and greater levels of self-sufficiency.
     (4) Data on all program participants must be entered into and tracked through the Washington homeless client management information system as described in RCW 43.185C.180. For eligible organizations serving victims of domestic violence or sexual assault, compliance with this subsection must be accomplished in accordance with 42 U.S.C. Sec. 11383(a)(8).
     (5)(a) Except as provided in (b) of this subsection, beginning in 2011, each eligible organization receiving over five hundred thousand dollars during the previous calendar year from the transitional housing operating and rent program and from sources including: (i) State housing-related funding sources; (ii) the affordable housing for all surcharge in RCW 36.22.178; (iii) the home security fund surcharges in RCW 36.22.179 and 36.22.1791; and (iv) any other surcharge imposed under chapter 36.22 ((or 43.185C)) RCW or this chapter to fund homelessness programs or other housing programs, shall apply to the Washington ((state quality)) performance audit award program for an independent assessment of its quality management, accountability, and performance system, once every three years.
     (b) Cities and counties are exempt from the provisions of (a) of this subsection until 2018.
     (6) The department may develop rules, requirements, procedures, and guidelines as necessary to implement and operate the transitional housing operating and rent program.
     (7) The department shall produce an annual transitional housing operating and rent program report that must be included in the department's homeless housing strategic plan as described in RCW 43.185C.040. The report must include performance measures to be determined by the department that address, at a minimum, the following issue areas:
     (a) The success of the program in helping program participants transition into permanent affordable housing and achieve self-sufficiency or increase their levels of self-sufficiency, which shall be defined by the department based upon the costs of living, including housing costs, needed to support: (i) One adult individual; and (ii) two adult individuals and one preschool-aged child and one school-aged child;
     (b) The financial performance of the program related to efficient program administration by the department and program operation by selected eligible organizations, including an analysis of the costs per program participant served;
     (c) The quality, completeness, and timeliness of the information on program participants provided to the Washington homeless client management information system database; and
     (d) The satisfaction of program participants in the assistance provided through the program.

Sec. 17   RCW 43.330.080 and 2011 c 286 s 2 are each amended to read as follows:
     In carrying out its obligations under RCW 43.330.070, the department must provide business services training to and contract with county-designated associate development organizations to increase the support for and coordination of community and economic development services in communities or regional areas. The business services training provided to the organizations contracted with must include, but need not be limited to, training in the fundamentals of export assistance and the services available from private and public export assistance providers in the state. The organizations contracted within each community or regional area must work closely with the department to carry out state-identified economic development priorities and must be broadly representative of community and economic interests. The organization must be capable of identifying key economic and community development problems, developing appropriate solutions, and mobilizing broad support for recommended initiatives. The contracting organization must work with and include local governments, local chambers of commerce, workforce development councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups. The scope of services delivered under these contracts must include two broad areas of work:
     (1) Direct assistance, including business planning, to companies throughout the county who need support to stay in business, expand, or relocate to Washington from out of state or other countries. Assistance must comply with business recruitment and retention protocols established in RCW 43.330.062, and includes:
     (a) Working with the appropriate partners throughout the county((,)) including, but not limited to, local governments, workforce development councils, port districts, community and technical colleges and higher education institutions, export assistance providers, the Washington manufacturing services, the Washington ((state quality)) performance audit award council, small business assistance programs, and other federal, state, and local programs to facilitate the alignment of planning efforts and the seamless delivery of business support services within the entire county;
     (b) Providing information on state and local permitting processes, tax issues, export assistance, and other essential information for operating, expanding, or locating a business in Washington;
     (c) Marketing Washington and local areas as excellent locations to expand or relocate a business and positioning Washington as a globally competitive place to grow business, which may include developing and executing regional plans to attract companies from out of state;
     (d) Working with businesses on site location and selection assistance;
     (e) Providing business retention and expansion services throughout the county, including business outreach and monitoring efforts to identify and address challenges and opportunities faced by businesses;
     (f) Participating in economic development system-wide discussions regarding gaps in business start-up assistance in Washington; and
     (g) Providing or facilitating the provision of export assistance through workshops or one-on-one assistance; and
     (2) Support for regional economic research and regional planning efforts to implement target industry sector strategies and other economic development strategies, including cluster-based strategies, that support increased living standards and increase foreign direct investment throughout Washington. Activities include:
     (a) Participation in regional planning efforts with workforce development councils involving coordinated strategies around workforce development and economic development policies and programs. Coordinated planning efforts must include, but not be limited to, assistance to industry clusters in the region;
     (b) Participation between the contracting organization and the state board for community and technical colleges as created in RCW 28B.50.050, and any community and technical colleges in providing for the coordination of the job skills training program and the customized training program within its region;
     (c) Collecting and reporting data as specified by the contract with the department for statewide systemic analysis. The department must consult with the Washington state economic development commission in the establishment of such uniform data as is needed to conduct a statewide systemic analysis of the state's economic development programs and expenditures. In cooperation with other local, regional, and state planning efforts, contracting organizations may provide insight into the needs of target industry clusters, business expansion plans, early detection of potential relocations or layoffs, training needs, and other appropriate economic information;
     (d) In conjunction with other governmental jurisdictions and institutions, participate in the development of a countywide economic development plan, consistent with the state comprehensive plan for economic development developed by the Washington state economic development commission.

Sec. 18   RCW 43.330.084 and 2007 c 249 s 4 are each amended to read as follows:
     Up to five associate development organizations per year contracting with the department under chapter 249, Laws of 2007 that apply for the Washington ((state quality)) performance audit award or its equivalent shall receive reimbursement for the award application fee, but may not be reimbursed more than once every three years.

NEW SECTION.  Sec. 19   The sum of fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2014, from the general fund to the Washington performance audit award council for Washington performance audit awards, or other quality management training, as provided in section 9(3) of this act.

NEW SECTION.  Sec. 20   The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2013, from the general fund to the state auditor for a performance audit of the priorities of government program as provided in section 9(6) of this act.