HOUSE BILL REPORT

HB 2327

BYRepresentatives Silver, H. Sommers, Schoon, Holland, McLean, Fuhrman and Smith; by request of Legislative Budget Committee

Changing provisions relating to sunset review of programs and agencies.

House Committe on State Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (8)

      Signed by Representatives Todd, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; R. Fisher, Hankins, Morris, O'Brien and Silver.

House Staff:Barbara McLain (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT

FEBRUARY 1, 1990

BACKGROUND:

When a state agency or program is scheduled for termination under the provisions of the Washington Sunset Act, the following process takes place:

            oThe Legislative Budget Committee (LBC) conducts a program and fiscal review of the agency or program and submits a report of its findings to the Office of Financial Management (OFM) no later than June 30 of the year prior to the scheduled termination date.

            oOFM may conduct its own review and return its findings to the LBC by September 30 of the same year.  LBC then prepares a final report.

            oThe appropriate standing committees of the Legislature hold public hearings on the recommendations of the LBC and OFM and then determine whether the agency or program should be terminated, continued, or modified.

In addition to conducting sunset reviews, the Legislative Budget Committee is also responsible for a number of other analyses, evaluations, and studies, many mandated by law.  In the next four years, the LBC will be required to complete 23 sunset reviews and nine additional program evaluations or reports, not including a major study of the Family Independence Program.

SUMMARY:

SUBSTITUTE BILL:  The following state agencies or programs scheduled for termination between 1991 and 1994 under the Washington Sunset Act are removed from the schedule of agencies under sunset.  Their termination dates are postponed and they are to be evaluated by the governor, who will make recommendations by December 1 of the year prior to their termination on whether they should be terminated, modified, or continued:

            oNursing Home Advisory Council

New termination: June 30, 1992

            oEmergency Medical Services Committee

New termination:  June 30, 1992

            oRegulation of Acupuncture Practice

New termination:  June 30, 1992

            oParimutuel Wagering on Horse Races at Satellite Facilities

New termination:  June 30, 1992

            oBusiness Assistance Center

New termination: June 30, 1993

            oRegulation of Counselors, Social Workers, Mental Health Counselors, and Marriage and Family Counselors

New termination:  June 30, 1994

            oRegulation of Naturopaths

New termination: June 30, 1994

            oExamining Board of Psychology

New termination: June 30, 1995

            oWashington Council for Child Abuse and Neglect

Retain termination of June 30, 1994

            oExport Trading Companies

Retain termination of June 30, 1994

The following agencies or programs are removed from the schedule of agencies under sunset and their termination dates are repealed:

            oPublic Works Board

            oCareer Executive Program

            oPublic Disclosure Commission

            oSmall Business Improvement Council

            oWashington Sunrise Act

            oWashington Ambassador Program

Statutory requirements for the LBC to conduct the following studies or analyses are repealed:

            oState Employee Incentive Programs (a cost- benefit analysis due December 1, 1990)

            oPhysical Therapists (an evaluation of a program of direct access in certain circumstances due January 1, 1991)

The termination dates and required LBC studies of the following are removed:

            oRegulation of Motor Vehicle Warranties ("Lemon Law")

            oWashington State Lottery

The termination dates of the following are retained, but they are removed from sunset review:

            oMigratory Waterfowl Art Committee

Termination:  June 30, 1994

            oEconomic Development Board

Termination: June 30, 1993

A technical change is made to place provisions setting a 1998 termination date for the School Directors' Association in the section of the code containing the Sunset Act.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill dealt with the Public Disclosure Commission, Small Business Improvement Council, Washington Sunrise Act, Washington Ambassador Program, Business Assistance Center, Washington State Lottery, and Physical Therapists.  The remaining committees and reports were addressed in two other bills rolled into a substitute.  The Economic Development Board is removed from sunset but its termination date is retained.  The due date of a report from the Office of Financial Management in the sunset process is unchanged, rather than moving forward one month as in the original bill.

Fiscal Note:      Requested February 1, 1990.

House Committee ‑ Testified For:    (Three bills made into one substitute bill) Representative Jean Silver, Legislative Budget Committee; Fred Tilker, Legislative Budget Committee; Cheryle Broom, Legislative Auditor; and Becky Sisler, Career Executive Program, Department of Personnel.

House Committee - Testified Against:      (Three bills made into one substitute bill) Fred Hellberg, Governor's Office; Kip Tokuda, Washington Council for the Prevention of Child Abuse and Neglect; and Margo Smith, Horse Racing Commission.

House Committee - Testimony For:    (Three bills made into one substitute bill) The purpose of the bills is to improve the effectiveness of the sunset process.  The LBC needs to prioritize its workload; one solution is to eliminate jobs that are less substantive.  The costs of staff time for reviews are high and there are many scheduling problems in conducting sunset reviews.  Overscheduling results in delay of other priority projects.

House Committee - Testimony Against:      (Three bills made into one substitute bill)  While the reasons for removing boards or programs from sunset or other review are understandable and the LBC has a need to manage its workload, transferring review responsibilities to the governor's office is a questionable response.  If the programs do not warrant LBC review, what benefit would there be to a review by the governor? The Council for Child Abuse has been reviewed twice and should be removed from review altogether.  The parimutuel wagering program at satellite facilities run by the Horse Racing Commission is quite successful and does not need review.