Read first time 01/30/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to transferring the powers, duties, and functions of the developmental disabilities endowment; amending RCW 43.70.733; adding new sections to chapter 43.330 RCW; creating a new section; recodifying RCW 43.70.730, 43.70.731, 43.70.732, 43.70.733, 43.70.734, 43.70.735, 43.70.736, and 43.70.737; and repealing RCW 43.330.906.

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

Sec. 1   RCW 43.70.733 and 2010 c 271 s 201 are each amended to read as follows:
     The developmental disabilities endowment governing board is established to design and administer the developmental disabilities endowment. To the extent funds are appropriated for this purpose, the ((secretary)) director of the department shall provide staff and administrative support to the governing board.
     (1) The governing board shall consist of seven members as follows:
     (a) Three of the members, who shall be appointed by the governor, shall be persons who have demonstrated expertise and leadership in areas such as finance, actuarial science, management, business, or public policy.
     (b) Three members of the board, who shall be appointed by the governor, shall be persons who have demonstrated expertise and leadership in areas such as business, developmental disabilities service design, management, or public policy, and shall be family members of persons with developmental disabilities.
     (c) The seventh member of the board, who shall serve as chair of the board, shall be appointed by the remaining six members of the board.
     (2) Members of the board shall serve terms of four years and may be appointed for successive terms of four years at the discretion of the appointing authority. However, the governor may stagger the terms of the initial six members of the board so that approximately one-fourth of the members' terms expire each year.
     (3) Members of the board shall be compensated for their service under RCW 43.03.240 and shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.
     (4) The board shall meet periodically as specified by the call of the chair, or a majority of the board.
     (5) Members of the governing board and the state investment board shall not be considered an insurer of the funds or assets of the endowment trust fund or the individual trust accounts. Neither of these two boards or their members shall be liable for the action or inaction of the other.
     (6) Members of the governing board and the state investment board are not liable to the state, to the fund, or to any other person as a result of their activities as members, whether ministerial or discretionary, except for willful dishonesty or intentional violations of law. The department and the state investment board, respectively, may purchase liability insurance for members.

NEW SECTION.  Sec. 2   (1) All powers, duties, and functions of the department of health pertaining to the developmental disabilities endowment are transferred to the department of commerce. All references to the director or the department of health in the Revised Code of Washington shall be construed to mean the director or the department of commerce when referring to the functions transferred in this section.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of health pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of commerce. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of health in carrying out the powers, functions, and duties transferred shall be made available to the department of commerce. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of commerce.
     (b) Any appropriations made to the department of health for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of commerce.
     (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the department of health engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of commerce. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of commerce to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the department of health pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of commerce. All existing contracts and obligations shall remain in full force and shall be performed by the department of commerce.
     (5) The transfer of the powers, duties, functions, and personnel of the department of health shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the department of health assigned to the department of commerce under this section whose positions are within an existing bargaining unit description at the department of commerce shall become a part of the existing bargaining unit at the department of commerce and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 3   RCW 43.330.906 (Transfer of powers, duties, and functions pertaining to the developmental disabilities endowment) and 2010 c 271 s 204 are each repealed.

NEW SECTION.  Sec. 4   RCW 43.70.730, 43.70.731, 43.70.732, 43.70.733, 43.70.734, 43.70.735, 43.70.736, and 43.70.737 are each recodified as sections in chapter 43.330 RCW.