BILL REQ. #:  H-1459.3 

Read first time 02/19/13.   Referred to Committee on Appropriations.

     AN ACT Relating to creating the office of the forecast council; amending RCW 82.33.010, 82.33.030, 43.88C.020, 43.88.120, and 41.06.087; reenacting and amending RCW 82.33.020; adding a new chapter to Title 43 RCW; recodifying chapters 43.88C and 82.33 RCW; repealing RCW 43.88C.010; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise:
     (1) "Caseload," as used in this chapter, means the number of persons expected to meet entitlement requirements and require the services of public assistance programs, state correctional institutions, state correctional noninstitutional supervision, state institutions for juvenile offenders, the common school system, long-term care, medical assistance, foster care, adoption support, and the number of students who are eligible for the Washington college bound scholarship program and are expected to attend an institution of higher education as defined in RCW 28B.92.030.
     (2) "Council" means the forecast council.
     (3) "Director" means the director of the office of the forecast council.
     (4) "Office" means the office of the forecast council.

NEW SECTION.  Sec. 2   (1) The office is headed by a director appointed by the council. The council shall develop a process for the selection of the director. Approval by an affirmative vote of at least five members of the council is required for any decisions regarding employment of the director. The director must be employed for a term of three years. At the end of the first year of each three-year term the council shall consider extension of the director's term by one year. The council may fix the compensation of the director.
     (2) The director may employ staff as necessary to perform the duties imposed by this chapter and to perform the duties necessary to support the work of the council.

Sec. 3   RCW 82.33.010 and 2012 1st sp.s. c 8 s 2 are each amended to read as follows:
     (1) The ((economic and revenue)) office of the forecast council is hereby created. The council ((shall)) consists of two individuals appointed by the governor, the state treasurer, and four individuals, one of whom is appointed by the chairperson of each of the two largest political caucuses in the senate and house of representatives. The chair of the council ((shall)) must be selected from among the four caucus appointees. The council may select such other officers as the members deem necessary.
     (2) The ((council)) director shall ((employ an economic and revenue forecast supervisor to)) supervise the preparation of all economic and revenue forecasts ((and)) under RCW 82.33.020 (as recodified by this act), the presentation of the state budget outlook((s)) under RCW 82.33.060 (as recodified by this act), and the preparation of all caseload forecasts under RCW 43.88C.020 (as recodified by this act). ((As used in this chapter, "supervisor" means the economic and revenue forecast supervisor. Approval by an affirmative vote of at least five members of the council is required for any decisions regarding employment of the supervisor. Employment of the supervisor shall terminate after each term of three years. At the end of the first year of each three-year term the council shall consider extension of the supervisor's term by one year. The council may fix the compensation of the supervisor. The supervisor shall employ staff sufficient to accomplish the purposes of this section.))
     (3) The ((economic and revenue forecast)) council ((shall)) oversees the preparation of and ((approve)) approves the forecasts and outlooks under subsection (2) of this section, by an affirmative vote of at least five members, the official, optimistic, and pessimistic state economic and revenue forecasts prepared under RCW 82.33.020 (as recodified by this act), the state budget outlook under RCW 82.33.060 (as recodified by this act), and the caseload forecasts under RCW 43.88C.020 (as recodified by this act). If the council is unable to approve a forecast before a date required in RCW 82.33.020 (as recodified by this act), or a budget outlook, the ((supervisor)) director shall submit the forecast or outlook without approval and the forecast ((shall have)) or outlook has the same effect as if approved by the council.
     (4) ((The economic and revenue forecast council shall oversee the preparation of and approve, by an affirmative vote of at least five members, the state budget outlook prepared under RCW 43.88.060. If the council is unable to approve a state budget outlook before a date required in RCW 43.88.060, the supervisor shall submit the outlook prepared under RCW 43.88.060 without approval and the outlook shall have the same effect as if approved by the council.
     (5))) A councilmember who does not cast an affirmative vote for approval of the official economic and revenue forecast, the caseload forecast, or the state budget outlook may request, and the ((supervisor)) director shall provide, an alternative economic and revenue forecast, caseload forecast, or state budget outlook based on assumptions specified by the member including, for purposes of the state budget outlook, revenues to and expenditures from additional funds.
     (((6))) (5) Members of the ((economic and revenue forecast)) council ((shall)) serve without additional compensation but ((shall be)) are reimbursed for travel expenses in accordance with RCW 44.04.120 while attending sessions of the council or on official business authorized by the council. Nonlegislative members of the council ((shall be)) are reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

Sec. 4   RCW 82.33.020 and 2012 1st sp.s. c 8 s 3 and 2012 c 182 s 1 are each reenacted and amended to read as follows:
     (1) Four times each year the ((supervisor)) director must prepare, subject to the approval of the ((economic and revenue forecast)) council under RCW 82.33.010 (as recodified by this act):
     (a) An official state economic and revenue forecast;
     (b) An unofficial state economic and revenue forecast based on optimistic economic and revenue projections; and
     (c) An unofficial state economic and revenue forecast based on pessimistic economic and revenue projections.
     (2) The ((supervisor)) director must submit forecasts prepared under this section, along with any unofficial forecasts provided under RCW 82.33.010 (as recodified by this act), to the governor and the members of the committees on ways and means and the chairs of the committees on transportation of the senate and house of representatives, including one copy to the staff of each of the committees, on or before November 20th, February 20th in the even-numbered years, March 20th in the odd-numbered years, June 27th, and September 27th. All forecasts must include both estimated receipts and estimated revenues in conformance with generally accepted accounting principles as provided by RCW 43.88.037. In odd-numbered years, the period covered by forecasts for the state general fund and related funds must cover the current fiscal biennium and the next ensuing fiscal biennium. In even-numbered years, the period covered by the forecasts for the state general fund and related funds shall be current fiscal and the next two ensuing fiscal biennia.
     (3) All agencies of state government must provide to the ((supervisor)) director immediate access to all information relating to economic and revenue forecasts. Revenue collection information must be available to the ((supervisor)) director the first business day following the conclusion of each collection period.
     (4) The ((economic and revenue forecast supervisor)) director and staff must ((co-locate and)) share information, data, and files with the tax research section of the department of revenue but may not duplicate the duties and functions of one another.
     (5) As part of its forecasts under subsection (1) of this section, the ((supervisor)) director must provide estimated revenue from tuition fees as defined in RCW 28B.15.020.
     (6) The ((economic and revenue forecast)) council must, in consultation with the economic and revenue forecast work group created in RCW 82.33.040 (as recodified by this act), review the existing ((economic and revenue forecast)) council revenue model, data, and methodologies and in light of recent economic changes, engage outside experts if necessary, and recommend changes to the ((economic and revenue forecast)) council ((revenue)) forecasting process to increase confidence and promote accuracy in the revenue forecast. The recommendations are due by September 30, 2012, and every five years thereafter.

Sec. 5   RCW 82.33.030 and 1984 c 138 s 3 are each amended to read as follows:
     The administrator of the legislative evaluation and accountability program committee may request, and the ((supervisor)) director shall provide, alternative economic and revenue forecasts based on assumptions specified by the administrator.

Sec. 6   RCW 43.88C.020 and 1997 c 168 s 2 are each amended to read as follows:
     (1) In consultation with the caseload forecast work group established under RCW 43.88C.030 (as recodified by this act), and subject to the approval of the ((caseload forecast)) council ((under RCW 43.88C.010)), the ((supervisor)) director shall prepare:
     (a) An official state caseload forecast; and
     (b) Other caseload forecasts based on alternative assumptions as the council may determine.
     (2) The ((supervisor)) director shall submit caseload forecasts prepared under this section((, along with any unofficial forecasts provided under RCW 43.88C.010,)) to the governor and the members of the legislative fiscal committees, including one copy to the staff of each of the committees. The forecasts ((shall)) must be submitted at least three times each year and on such dates as the council determines will facilitate the development of budget proposals by the governor and the legislature.
     (3) All agencies of state government shall provide to the ((supervisor)) director immediate access to all information relating to caseload forecasts.
     (4) The administrator of the legislative evaluation and accountability program committee may request, and the ((supervisor)) director shall provide, alternative caseload forecasts based on assumptions specified by the administrator.
     (5) The official state caseload forecast under this section ((shall)) must be the basis of the governor's budget document as provided in RCW 43.88.030 and utilized by the legislature in the development of the omnibus biennial appropriations act.

Sec. 7   RCW 43.88.120 and 2000 2nd sp.s. c 4 s 13 are each amended to read as follows:
     (1) Each agency engaged in the collection of revenues shall prepare estimated revenues and estimated receipts for the current and ensuing biennium and shall submit the estimates to the director of financial management and the director of revenue at times and in the form specified by the directors, along with any other information which the directors may request. For those agencies required to develop six-year programs and financial plans under RCW 44.40.070, six-year revenue estimates shall be submitted to the director of financial management and the transportation committees of the senate and the house of representatives unless the responsibility for reporting these revenue estimates is assumed elsewhere.
     (2) A copy of such revenue estimates shall be simultaneously submitted to the economic and revenue forecast work group when required by the office of the ((economic and revenue)) forecast council.

Sec. 8   RCW 41.06.087 and 1997 c 168 s 4 are each amended to read as follows:
     In addition to the exemptions set forth in RCW 41.06.070, this chapter does not apply to the ((economic and revenue forecast supervisor and staff employed under RCW 82.33.010 or the caseload forecast supervisor and staff employed under RCW 43.88C.010)) director and staff of the office of the forecast council under section 2 of this act.

NEW SECTION.  Sec. 9   (1) The economic and revenue forecast council is hereby abolished and its powers, duties, and functions are hereby transferred to the office of the forecast council. All references to the director or the economic and revenue forecast council in the Revised Code of Washington shall be construed to mean the director or the office of the forecast council.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the economic and revenue forecast council shall be delivered to the custody of the office of the forecast council. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the economic and revenue forecast council shall be made available to the office of the forecast council. All funds, credits, or other assets held by the economic and revenue forecast council shall be assigned to the office of the forecast council.
     (b) Any appropriations made to the economic and revenue forecast council shall, on the effective date of this section, be transferred and credited to the office of the forecast council.
     (c) If 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 economic and revenue forecast council are transferred to the jurisdiction of the office of the forecast council. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of the forecast council 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 economic and revenue forecast council shall be continued and acted upon by the office of the forecast council. All existing contracts and obligations shall remain in full force and shall be performed by the office of the forecast council.
     (5) The transfer of the powers, duties, functions, and personnel of the economic and revenue forecast council 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) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 10   (1) The caseload forecast council is hereby abolished and its powers, duties, and functions are hereby transferred to the office of the forecast council. All references to the director or the caseload forecast council in the Revised Code of Washington shall be construed to mean the director or the office of the forecast council.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the caseload forecast council shall be delivered to the custody of the office of the forecast council. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the caseload forecast council shall be made available to the office of the forecast council. All funds, credits, or other assets held by the caseload forecast council shall be assigned to the office of the forecast council.
     (b) Any appropriations made to the caseload forecast council shall, on the effective date of this section, be transferred and credited to the office of the forecast council.
     (c) If 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 caseload forecast council are transferred to the jurisdiction of the office of the forecast council. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of the forecast council 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 caseload forecast council shall be continued and acted upon by the office of the forecast council. All existing contracts and obligations shall remain in full force and shall be performed by the office of the forecast council.
     (5) The transfer of the powers, duties, functions, and personnel of the caseload forecast council 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) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 11   Sections 1, 2, 9, and 10 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 12   All provisions of chapters 43.88C and 82.33 RCW are recodified in chapter 43.--- RCW (the new chapter created under section 11 of this act).

NEW SECTION.  Sec. 13   RCW 43.88C.010 (Caseload forecast council--Caseload forecast supervisor -- Oversight and approval of official caseload forecast -- Alternative forecast -- Travel reimbursement--Definitions) and 2012 c 217 s 3, 2011 c 304 s 2, 2000 c 90 s 1, & 1997 c 168 s 1 are each repealed.

NEW SECTION.  Sec. 14   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 July 1, 2013.