AN ACT Relating to legislative reorganization; amending RCW 44.28.085, 44.28.086, 44.28.087, 44.28.110, 44.28.120, 44.28.130, 44.44.010, 44.44.030, 44.44.040, 2.56.120, 18.11.910, 19.91.911, 28A.61.030, 28A.61.070, 28A.97.100, 28B.15.766, 28B.16.112, 39.19.900, 39.29.010, 40.07.050, 41.06.070, 41.06.163, 41.06.167, 41.60.130, 43.03.260, 43.09.310, 43.10.067, 43.19.19052, 43.19.200, 43.19.532, 43.19.650, 43.19.660, 43.52.378, 43.52.510, 43.52.618, 43.79.270, 43.79.280, 43.88.020, 43.88.030, 43.88.090, 43.88.111, 43.88.160, 43.88.205, 43.88.230, 43.88.310, 43.88.510, 43.88A.030, 43.105.016, 43.131.050, 43.131.060, 43.131.070, 43.131.080, 43.131.110, 43.132.040, 43.132.050, 43.136.030, 43.136.040, 43.136.050, 44.40.025, 46.08.066, 67.08.910, 67.70.050, 67.70.310, 67.70.900, 72.09.180, 74.04.630, 82.01.125, and 82.01.135; adding new sections to chapter 44.28 RCW; creating new sections; and repealing RCW 7.68.160, 44.44.020, 44.28.010, 44.28.020, 44.28.030, 44.28.040, 44.28.050, 44.28.060, 44.28.080, 44.28.100, 44.28.140, 44.28.150, 44.28.900, 44.48.010, 44.48.020, 44.48.030, 44.48.040, 44.48.050, 44.48.060, 44.48.070, 44.48.080, 44.48.090, 44.48.100, 44.48.110, 44.48.120, 44.48.130, 44.48.140, and 44.48.900.

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

NEW SECTION. Sec. 1. There is created a legislative oversight committee consisting of eight members of the senate appointed by the president of the senate and eight members of the house of representatives appointed by the speaker of the house of representatives. Not more than four members from each house shall be from the same political party. The appointments shall be made before the adjournment of the regular session of the legislature held in an odd-numbered year. Senate members are subject to confirmation by the senate and the house members are subject to confirmation by the house of representatives.

NEW SECTION. Sec. 2. The term of office of the members of the legislative oversight committee who continue to be members of the legislature shall be from the adjournment of the session in which they were appointed until the adjournment of the next regular session of the legislature held in an odd-numbered year. The term of office of a committee member who is not reelected to the senate or house of representatives shall cease upon the convening of the next regular session of the legislature. Vacancies on the committee shall be filled by appointment by the remaining members. All such vacancies shall be filled from the same political party and from the same house as the member whose seat was vacated.

NEW SECTION. Sec. 3. The members of the legislative oversight committee shall serve without additional compensation but shall be reimbursed in accordance with RCW 44.04.120 while attending meetings of the committee or meetings of any subcommittee of the committee, or on other committee business authorized by the committee.

NEW SECTION. Sec. 4. All expenses incurred by the legislative oversight committee, including but not limited to salaries and expenses of employees, shall be paid upon voucher forms as provided by the director of the office of legislative oversight and signed by the chairman or vice-chairman of the committee. The authority of the chairman to sign vouchers shall continue until a successor is selected. Vouchers may be drawn on funds appropriated by law for the committee. However, the senate and house of representatives may authorize the committee to draw on funds appropriated by the legislature for legislative expenses.

NEW SECTION. Sec. 5. The legislative oversight committee shall elect from its membership a chairman and such other officers as it deems appropriate. The initial chairman shall be a member of the house of representatives and shall serve until the end of the 1987 regular session of the legislature. Succeeding chairmen shall alternately be members of the senate and the house of representatives and shall serve two-year terms. The committee may make rules for orderly procedure.

NEW SECTION. Sec. 6. The legislative oversight committee shall:

(1) Provide the legislature and its staff with the information necessary for the in-depth analysis of expenditures, budgets, cash flow, and related fiscal matters for state agencies individually and for state government as a whole;

(2) Perform functions relating to improving the economy, efficiency, and effectiveness of state agency management by performance audits and other staff studies of state government, its officers, boards, committees, commissions, institutions, and other state agencies; and

(3) Direct and oversee the activities of the office of legislative oversight created under section 7 of this act and the office of the state actuary created under chapter 44.44 RCW.

NEW SECTION. Sec. 7. The office of legislative oversight is hereby created. The office of legislative oversight shall include a director and such additional professional and support employees, either permanent or temporary, as the legislative oversight committee deems necessary to carry out the provisions of this chapter and other duties assigned the committee by state law. The legislative oversight committee shall fix salaries of the employees of the office of legislative oversight.

NEW SECTION. Sec. 8. To carry out the provisions of section 6 of this act, the legislative oversight committee, through the office of legislative oversight, shall:

(1) Develop and maintain automated data bases and application systems in support of legislative requirements to monitor, evaluate, analyze, report, and review fiscal matters;

(2) Assist the standing committees of the house of representatives and senate in the consideration of legislation with fiscal impact, when so requested;

(3) Conduct such program reviews as may be required to monitor conformance with legislative intent and to examine program costs and benefits. These reviews and examinations may include, but are not limited to, those concerning:

(a) Whether or not appropriations are being expended for the purposes and within the statutory restrictions provided by the legislature; and

(b) Organization and procedures necessary or desirable to promote economy, efficiency, and effectiveness in state government, its officers, boards, committees, commissions, institutions and other state agencies, and to make recommendations and reports to the legislature; and

(4) Provide assistance to the legislature and its committees on special projects.

NEW SECTION. Sec. 9. The legislative oversight committee has the following powers:

(1) To have timely access, upon the written request of the director of the office of legislative oversight, to all machine readable, printed, and other data of state agencies relative to expenditures, budgets, and related fiscal matters;

(2) To recommend to the office of financial management changes relative to state accounting and reporting systems and to require timely written responses to the recommendations;

(3) To make such studies and examinations of economy, efficiency, and effectiveness of state government and its state agencies as it may find advisable, and to hear complaints, hold hearings, gather information, and make findings of fact; and

(4) To enter into contracts. When entering into any contract for computer access, the committee may make necessary provisions regarding the scheduling of computer time and usage in recognition of the unique requirements and priorities of the legislative process.

NEW SECTION. Sec. 10. The legislative oversight committee may make reports to the legislature. The committee shall keep minutes of its meetings. The committee shall make and distribute an annual report to the members of the legislature at least ten days prior to the convening of a regular session of the legislature.

NEW SECTION. Sec. 11. The legislative oversight committee shall appoint an officer to be known as the director of the office of legislative oversight. The director shall be the executive officer of the committee and assist in its duties and shall compile information for the committee.

The director shall:

(1) Manage the operations of the office;

(2) Assist the several standing committees of the house of representatives and senate, appear before other legislative committees, and assist any other legislative committee upon the instruction by the legislative oversight committee;

(3) Provide the legislature with information obtained under the direction of the legislative oversight committee; and

(4) Maintain a record of all work performed by the office of legislative oversight under the direction of the committee and keep and make available to the legislature all documents, data, and reports submitted to the director by any legislative committee.

NEW SECTION. Sec. 12. The office of legislative oversight shall cooperate, act, and work with the committees of the legislature and may cooperate with the councils or committees of other states which are similar to the legislative oversight committee and with interstate research organizations as authorized by the committee.

Sec. 13. Section 3, chapter 170, Laws of 1971 ex. sess. as amended by section 15, chapter 293, Laws of 1975 1st ex. sess. andRCW 44.28.085 are each amended to read as follows:

The legislative ((~~budget~~)) oversight committee shall make management surveys and program reviews as to every public body, officer or employee subject to the provisions of RCW 43.09.290 through 43.09.340. The legislative ((~~budget~~)) oversight committee may also make management surveys and program reviews of local school districts, intermediate school districts, and other units of local government receiving state funds as grants-in-aid or as shared revenues. Management surveys for the purposes of this section shall be an independent examination for the purpose of providing the legislature with an evaluation and report of the manner in which any public agency, officer, administrator, or employee has discharged the responsibility to faithfully, efficiently, and effectively administer any legislative purpose of the state. Program reviews for the purpose of this section shall be an examination of state or local government programs to ascertain whether or not such programs continue to serve their intended purposes, are conducted in an efficient and effective manner, or require modification or elimination: PROVIDED, That nothing in this section shall limit the power or duty of the state auditor to report to the legislature as directed by subsection (3) of RCW 43.88.160 as now or hereafter amended. The authority in this section conferred excludes a like authority in the state auditor.

The legislative ((~~budget~~)) oversight committee shall receive a copy of each report of examination issued by the state auditor under RCW 43.09.310, shall review all such reports, and shall make such recommendations to the legislature and to the state auditor as it deems appropriate.

Sec. 14. Section 1, chapter 197, Laws of 1973 1st ex. sess. and RCW 44.28.086 are each amended to read as follows:

The legislative ((~~budget~~)) oversight committee authority for management surveys contained in RCW 44.28.085 shall include reviews of program goals and objectives of public bodies, officers or employees to determine conformity with legislative intent and shall include comprehensive performance audits to ensure that agency programs are being conducted in accordance with legislative intent and program goals and objectives.

Sec. 15. Section 2, chapter 197, Laws of 1973 1st ex. sess. and RCW 44.28.087 are each amended to read as follows:

All agency reports concerning program performance, including administrative review, quality control, and other internal audit or performance reports, as requested by the legislative ((~~budget~~)) oversight committee, shall be furnished by the agency requested to provide such report.

Sec. 16. Section 8, chapter 43, Laws of 1951 as amended by section 8, chapter 206, Laws of 1955 and RCW 44.28.110 are each amended to read as follows:

In the discharge of any duty herein imposed, the legislative oversight committee or any personnel under its authority and its subcommittees shall have the authority to examine and inspect all properties, equipment, facilities, files, records and accounts of any state office, department, institution, board, committee, commission or agency, and to administer oaths, issue subpoenas, compel the attendance of witnesses and the production of any papers, books, accounts, documents and testimony, and to cause the deposition of witnesses, either residing within or without the state, to be taken in the manner prescribed by laws for taking depositions in civil actions in the superior courts.

Sec. 17. Section 9, chapter 43, Laws of 1951 and RCW 44.28.120 are each amended to read as follows:

In case of the failure on the part of any person to comply with any subpoena issued in behalf of the legislative oversight committee, or on the refusal of any witness to testify to any matters regarding which he may be lawfully interrogated, it shall be the duty of the superior court of any county, or of the judge thereof, on application of the committee, to compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

Sec. 18. Section 10, chapter 43, Laws of 1951 and RCW 44.28.130 are each amended to read as follows:

Each witness who appears before the legislative oversight committee by its order, other than a state official or employee, shall receive for his attendance the fees and mileage provided for witnesses in civil cases in courts of record, which shall be audited and paid upon the presentation of proper vouchers signed by such witness and approved by the ((~~secretary and~~)) chairman of the committee.

NEW SECTION. Sec. 19. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the legislative budget committee or the legislative evaluation and accountability program committee shall be delivered to the custody of the legislative oversight committee. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the legislative budget committee or the legislative evaluation and accountability program committee shall be made available to the legislative oversight committee. All funds, credits, or other assets held by the legislative budget committee or the legislative evaluation and accountability program committee shall be assigned to the legislative oversight committee.

Any appropriations made to the legislative budget committee or the legislative evaluation and accountability program committee shall, on the effective date of this act, be transferred and credited to the legislative oversight committee.

NEW SECTION. Sec. 20. All rules and all pending business before the legislative budget committee or the legislative evaluation and accountability program committee shall be continued and acted upon by the legislative oversight committee. All existing contracts and obligations shall remain in full force and shall be performed by the legislative oversight committee.

NEW SECTION. Sec. 21. If apportionments of budgeted funds are required because of the transfers directed by section 19 of this act, 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.

NEW SECTION. Sec. 22. Sections 1 through 12 of this act are added to chapter 44.28 RCW.

Sec. 23. Section 19, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.010 are each amended to read as follows:

(1) There is hereby created an office within the legislative ((~~branch~~)) oversight committee to be known as the office of the state actuary.

(2) The executive head of the office shall be the state actuary who shall be qualified by education and experience in the field of actuarial science and shall be a member of the American Academy of Actuaries. Such person shall be appointed by ((a special committee of the legislature consisting of: (a) Three members of the senate selected by the president, two of whom shall be members of the majority party and one of whom shall be a member of the minority party; and (b) three members of the house of representatives selected by the speaker, two of whom shall be members of the majority party and one of whom shall be a member of the minority party. The original appointment shall be made not later than ninety days after March 19, 1976. A two-thirds vote of the committee shall be required to make the appointment.

~~(3) If a vacancy occurs in the position of state actuary it shall be filled in the same manner as the original appointment~~)) the legislative oversight committee.

Sec. 24. Section 21, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.030 are each amended to read as follows:

The ((~~state actuary~~)) legislative oversight committee shall have the authority to select ((~~and~~)), employ, and fix the salary of such research, technical, clerical personnel, and consultants as the ((~~actuary~~)) legislative oversight committee deems necessary((, whose salaries shall be fixed by the actuary and approved by the committee of legislators referred to in RCW 44.44.010, and who shall be exempt from the provisions of the state civil service law, chapter 41.06 RCW)) for the administration of this chapter.

Sec. 25. Section 22, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.040 are each amended to read as follows:

To carry out section 6 of this 1985 act, the legislative oversight committee, through the state actuary, shall have the following powers and duties:

(1) Perform all actuarial services for the department of retirement systems, including all studies required by law. Reimbursement for such services shall be made to the state actuary pursuant to the provisions of RCW 39.34.130 as now or hereafter amended.

(2) Advise the legislature and the governor regarding the benefit provisions, funding policies, and investment policies of the department of retirement systems.

(3) Consult with the legislature and the governor concerning determination of actuarial assumptions used by the department of retirement systems.

(4) Prepare a report on each pension bill introduced in the legislature which shall briefly explain the financial impact of the bill.

(5) Provide such actuarial services to the legislature as may be requested from time to time.

Sec. 26. Section 604, chapter 258, Laws of 1984 and RCW 2.56.120 are each amended to read as follows:

(1) The office of the administrator for the courts, in cooperation with appropriate legislative committees and legislative staff, shall establish a procedure for the provision of judicial impact notes on the effect legislative bills will have on the workload and administration of the courts of this state. The administrator for the courts and the office of financial management shall coordinate the development of judicial impact notes with the preparation of fiscal notes under chapters 43.88A and 43.132 RCW.

(2) The administrator for the courts shall provide a judicial impact note on any legislative proposal at the request of any legislator. The note shall be provided to the requesting legislator and copies filed with the appropriate legislative committees in accordance with subsection (3) of this section when the proposed legislation is introduced in either house.

(3) When a judicial impact note is prepared and approved by the administrator for the courts, copies of the note shall be filed with:

(a) The chairperson of the committee to which the bill was referred upon introduction in the house of origin;

(b) The senate committee on ways and means;

(d) The senate judiciary committee;

(e) The house of representatives judiciary committee;

(f) The legislative ((~~budget~~)) oversight committee; and

(g) The office of financial management.

(4) This section shall not prevent either house of the legislature from acting on any bill before it as otherwise provided by the state Constitution, by law, and by the rules and joint rules of the senate and house of representatives, nor shall the lack of any judicial impact note as provided in this section or any error in the accuracy thereof affect the validity of any measure otherwise duly passed by the legislature.

Sec. 27. Section 19, chapter 205, Laws of 1982 and RCW 18.11.910 are each amended to read as follows:

Chapter 18.11 RCW shall expire on June 30, 1986, unless extended by law. The legislative ((~~budget~~)) oversight committee shall evaluate the effectiveness of chapter 18.11 RCW. The final report of the evaluation shall be available to the legislature at least six months prior to the scheduled termination date. The report shall include, but is not limited to, objective findings of fact, conclusions, and recommendations as to continuation, modification, or termination of chapter 18.11 RCW.

Sec. 28. Section 2, chapter 173, Laws of 1984 and RCW 19.91.911 are each amended to read as follows:

(1) This chapter shall expire on June 30, 1986, unless extended by law indefinitely or for an additional fixed period of time. The legislative ((~~budget~~)) oversight committee shall cause a performance audit to be conducted of this chapter. The final audit report shall be available to the legislature at least six months prior to the scheduled expiration date. The legislative ((~~budget~~)) oversight committee shall make objective findings of fact, conclusions, and recommendations as to the continuation, modification, or expiration of this chapter.

(2) In conducting its audit, the legislative ((~~budget~~)) oversight committee shall consider, but not be limited to, the following areas:

(a) Definition, adequacy, and methods of determining cigarette pricing;

(b) The advantages, disadvantages, and effects of including cash discounts in the act's pricing formula; and

(3) The legislative ((~~budget~~)) oversight committee shall hold meetings and hearings at the times and places it designates to accomplish the purposes of this section. It shall make use of existing legislative facilities and the staff of the senate and house of representatives.

Sec. 29. Section 28A.61.030, chapter 223, Laws of 1969 ex. sess. as last amended by section 1, chapter 187, Laws of 1983 and RCW 28A.61.030 are each amended to read as follows:

The school directors' association shall have the power:

(1) To prepare and adopt, amend and repeal a constitution and rules and regulations, and bylaws for its own organization including county or regional units and for its government and guidance: PROVIDED, That action taken with respect thereto is consistent with the provisions of this chapter or with other provisions of law;

(2) To arrange for and call such meetings of the association or of the officers and committees thereof as are deemed essential to the performance of its duties;

(3) To provide for the payment of travel and subsistence expenses incurred by members and/or officers of the association and association staff while engaged in the performance of duties under direction of the association in the manner provided by RCW 28A.58.310;

(4) To employ an executive secretary and other staff and pay such employees out of the funds of the association;

(5) To conduct studies and disseminate information therefrom relative to increased efficiency in local school board administration;

(6) To buy, sell or exchange such personal and real property as necessary for the efficient operation of the association;

(7) To purchase liability insurance for school directors, which insurance may indemnify said directors against any or all liabilities for personal or bodily injuries and property damage arising from their acts or omissions while performing or while in good faith purporting to perform their official duties as school directors;

(8) Upon request by a local school district board(s) of directors, to make available on a cost reimbursable contract basis (a) specialized services, (b) research information, and (c) consultants to advise and assist district board(s) in particular problem areas: PROVIDED, That such services, information, and consultants are not already available from other state agencies, educational service districts, or from the information and research services authorized by RCW 28A.58.530: PROVIDED FURTHER, That any such contract shall be filed with the office of financial management and the legislative ((~~budget~~)) oversight committee prior to the date any work commences under any such contract.

Sec. 30. Section 4, chapter 187, Laws of 1983 and RCW 28A.61.070 are each amended to read as follows:

The association shall contract with the department of personnel for the department of personnel to audit in odd-numbered years the association's staff classifications and employees' salaries. The association shall give copies of the audit reports to the office of financial management, the legislative ((~~budget~~)) oversight committee, and the committees of each house of the legislature dealing with common schools.

Sec. 31. Section 3, chapter 174, Laws of 1979 ex. sess. as amended by section 8, chapter 87, Laws of 1980 and RCW 28A.97.100 are each amended to read as follows:

The legislative ((~~budget~~)) oversight committee shall prepare a report to the legislature before each regular session during an odd-numbered year, detailing the fiscal impact of the several certified educational clinics receiving reimbursements from the state pursuant to the provisions of this chapter. The legislative ((~~budget~~)) oversight committee shall require such clinics to furnish such information as it deems necessary to meet the requirements of this section. Included within the information to be reported by the legislative ((~~budget~~)) oversight committee on each clinic shall be the following:

(1) The dollar amount of reimbursement received by the clinic from the state for each month available of the then current, and past, biennium;

(2) An analysis of the cost per student, the progress they have achieved, and comparisons with other educational and institutional alternatives; and

(3) A statement which identifies the owners of the clinic. In the case of profit or nonprofit corporations the officers, directors, and shareholders of record as of the close of the corporation's fiscal year shall be furnished.

Sec. 32. Section 4, chapter 74, Laws of 1983 1st ex. sess. and RCW 28B.15.766 are each amended to read as follows:

No loans shall be made after August 23, 1989, until the program is reviewed by the legislative ((~~budget~~)) oversight committee and is reenacted by the legislature.

Sec. 33. Section 11, chapter 152, Laws of 1977 ex. sess. as amended by section 17, chapter 151, Laws of 1979 and RCW 28B.16.112 are each amended to read as follows:

(1) In the conduct of salary and fringe benefit surveys under RCW 28B.16.110 as now or hereafter amended, it is the intention of the legislature that the surveys be undertaken in a manner consistent with statistically accurate sampling techniques. For this purpose, a comprehensive salary and fringe benefit survey plan shall be submitted to the director of financial management, employee organizations, the standing committees for appropriations in the senate and house of representatives, and to the legislative ((~~budget~~)) oversight committee six months before the beginning of each periodic survey required before regular legislative sessions. This comprehensive plan shall include but not be limited to the following:

(a) A complete explanation of the technical, statistical process to be used in the salary and fringe benefit survey including the percentage of accuracy expected from the planned statistical sample chosen for the survey and a definition of the term "prevailing rates" which is to be used in the planned survey;

(b) A comprehensive salary and fringe benefit survey model based on scientific statistical principles which:

(i) Encompasses the interrelationships among the various elements of the survey sample including sources of salary and fringe benefit data by organization type, size, and regional location;

(ii) Is representative of private and public employment in this state;

(iii) Ensures that, wherever practical, data from smaller, private firms are included and proportionally weighted in the survey sample; and

(iv) Indicates the methodology to be used in application of survey data to job classes used by state government;

(c) A prediction of the increase or decrease in total funding requirements expected to result from the pending salary and fringe benefit survey based on consumer price index information and other available trend data pertaining to Washington state salaries and fringe benefits.

(2) Every comprehensive survey plan shall fully consider fringe benefits as an element of compensation in addition to basic salary data. The plans prepared under this section shall be developed jointly by the higher education personnel board in conjunction with the department of personnel established under chapter 41.06 RCW. All comprehensive salary and fringe benefit survey plans shall be submitted on a joint signature basis by the higher education personnel board and the department of personnel. The legislative ((~~budget~~)) oversight committee shall review and evaluate all survey plans before final implementation.

(3) Interim or special surveys conducted under RCW 28B.16.110 as now or hereafter amended shall conform when possible to the statistical techniques and principles developed for regular periodic surveys under this section.

(4) The term "fringe benefits" as used in this section and in conjunction with salary surveys shall include but not be limited to compensation for:

(a) Leave time, including vacation, holiday, civil, and personal leave;

(b) Employer retirement contributions;

(c) Health and insurance payments, including life, accident, and health insurance, workmen's compensation, and sick leave; and

(d) Stock options, bonuses, and purchase discounts where appropriate.

Sec. 34. Section 19, chapter 120, Laws of 1983 and RCW 39.19.900 are each amended to read as follows:

(1) The legislative ((~~budget~~)) oversight committee shall cause to be conducted an initial program and fiscal review of the minority and women's business enterprise program under this chapter. Such program and fiscal review shall be completed and a report prepared by June 30, 1986. Upon completion of the report, the legislative ((~~budget~~)) oversight committee shall transmit copies of the report to the office of minority and women's business enterprises and to the office of financial management. Each office shall transmit its comments to the legislative ((~~budget~~)) oversight committee within thirty days. The legislative ((~~budget~~)) oversight committee shall prepare a final report, including the offices' comments, and transmit copies of such report to both offices, to the governor, and to all members of the legislature.

(2) The select joint committee on sunset, as defined in RCW 43.131.120, shall conduct a preliminary sunset program and fiscal review of the minority and women's business enterprise program under this chapter to determine if such program shall be scheduled for termination and full sunset review under chapter 43.131 RCW. Such preliminary sunset program and fiscal review shall be completed and a report prepared by June 30, 1990.

Sec. 35. Section 1, chapter 191, Laws of 1974 ex. sess. as last amended by section 3, chapter 61, Laws of 1979 ex. sess. and RCW 39.29.010 are each amended to read as follows:

All personal service contracts, including renewals and amendments of existing contracts, entered into by any state officer or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional and other types of institutions, shall be filed with the office of financial management and the legislative ((~~budget~~)) oversight committee at least ten days prior to the date any work commences under such contracts regardless of the source of funds. The director of financial management may exempt on a limited basis specific classes of personal service contracts involving activities of the executive and judicial branches after preparation of documented justification and consultation with the legislative ((~~budget~~)) oversight committee: PROVIDED, That approval of the exemption is granted prior to commencement of the contract work.

In special emergency cases when work commencement is clearly a major and overriding factor and immediate contract action is mandatory, filing may be delayed for personal service contracts involving executive and judicial branches by the director of financial management after consultation with the ((~~legislative auditor~~)) director of the office of legislative oversight: PROVIDED, That such filing shall be made prior to commencement of the contract work with documented justification for the filing delay.

Standing and other committees of the legislature and officers or employees of the legislative branch shall file personal service contracts with the legislative ((~~budget~~)) oversight committee and the office of financial management in accordance with the ten day time limitation set forth in this section. Requests by legislative committees or personnel for either exemptions or delays in filing individual personal service contracts shall be forwarded to the legislative ((~~budget~~)) oversight committee for review and maintenance of a central control file for use in preparation of summary reports on personal service contracts as directed by the legislature. Filing of personal service contracts delayed for emergency purposes shall be made not more than five days after commencement of the contract work involved.

Sec. 36. Section 5, chapter 232, Laws of 1977 ex. sess. and RCW 40.07.050 are each amended to read as follows:

Neither the public printer nor any state agency shall print or authorize for printing any state publication that has been determined by the director to be inconsistent with RCW 40.07.030 except to the extent this requirement may conflict with the laws of the United States or any rules or regulations lawfully promulgated under those laws. A copy of any state publication printed without the approval of the director under the exceptions authorized in this section shall be filed with the director with a letter of transmittal citing the federal statute, rule, or regulation requiring the publication. The director shall submit a report of such exceptions, as filed, to the legislative ((~~budget~~)) oversight committee at least annually.

Sec. 37. Section 1, chapter 11, Laws of 1972 ex. sess. as last amended by section 2, chapter 210, Laws of 1984 and RCW 41.06.070 are each amended to read as follows:

The provisions of this chapter do not apply to:

(1) The members of the legislature or to any employee of, or position in, the legislative branch of the state government including members, officers, and employees of the legislative council, legislative ((~~budget~~)) oversight committee, statute law committee, and any interim committee of the legislature;

(2) The justices of the supreme court, judges of the court of appeals, judges of the superior courts or of the inferior courts, or to any employee of, or position in the judicial branch of state government;

(3) Officers, academic personnel, and employees of state institutions of higher education, the state board for community college education, and the higher education personnel board;

(4) The officers of the Washington state patrol;

(5) Elective officers of the state;

(6) The chief executive officer of each agency;

(7) In the departments of employment security, fisheries, social and health services, the director and his confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his confidential secretary, and his statutory assistant directors;

(8) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

(a) All members of such boards, commissions, or committees;

(b) If the members of the board, commission, or committee serve on a part time basis and there is a statutory executive officer: (i) The secretary of the board, commission, or committee; (ii) the chief executive officer of the board, commission, or committee; and (iii) the confidential secretary of the chief executive officer of the board, commission, or committee;

(c) If the members of the board, commission, or committee serve on a full time basis: (i) The chief executive officer or administrative officer as designated by the board, commission, or committee; and (ii) a confidential secretary to the chairman of the board, commission, or committee;

(d) If all members of the board, commission, or committee serve ex officio: (i) The chief executive officer; and (ii) the confidential secretary of such chief executive officer;

(9) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

(10) Assistant attorneys general;

(11) Commissioned and enlisted personnel in the military service of the state;

(12) Inmate, student, part time, or temporary employees, and part time professional consultants, as defined by the state personnel board or the board having jurisdiction;

(13) The public printer or to any employees of or positions in the state printing plant;

(14) Officers and employees of the Washington state fruit commission;

(15) Officers and employees of the Washington state apple advertising commission;

(16) Officers and employees of the Washington state dairy products commission;

(17) Officers and employees of the Washington tree fruit research commission;

(18) Officers and employees of the Washington state beef commission;

(19) Officers and employees of any commission formed under the provisions of chapter 191, Laws of 1955, and chapter 15.66 RCW;

(20) Officers and employees of the state wheat commission formed under the provisions of chapter 87, Laws of 1961 (chapter 15.63 RCW);

(21) Officers and employees of agricultural commissions formed under the provisions of chapter 256, Laws of 1961 (chapter 15.65 RCW);

(22) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

(23) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050: PROVIDED, HOWEVER, That rules and regulations adopted by the state personnel board pursuant to RCW 41.06.150 regarding the basis for, and procedures to be followed for, the dismissal, suspension, or demotion of an employee, and appeals therefrom shall be fully applicable to liquor vendors except those part time agency vendors employed by the liquor control board when, in addition to the sale of liquor for the state, they sell goods, wares, merchandise, or services as a self-sustaining private retail business;

(24) Executive assistants for personnel administration and labor relations in all state agencies employing such executive assistants including but not limited to all departments, offices, commissions, committees, boards, or other bodies subject to the provisions of this chapter and this subsection shall prevail over any provision of law inconsistent herewith unless specific exception is made in such law;

(25) All employees of the marine employees' commission;

(26) In addition to the exemptions specifically provided by this chapter, the state personnel board may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the personnel board stating the reasons for requesting such exemptions. The personnel board shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the board determines that the position for which exemption is requested is one involving substantial responsibility for the formulation of basic agency or executive policy or one involving directing and controlling program operations of an agency or a major administrative division thereof, the personnel board shall grant the request and such determination shall be final. The total number of additional exemptions permitted under this subsection shall not exceed one hundred seventy-five for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor. The state personnel board shall report to each regular session of the legislature during an odd-numbered year all exemptions granted pursuant to the provisions of this subsection, together with the reasons for such exemptions.

The salary and fringe benefits of all positions presently or hereafter exempted except for the chief executive officer of each agency, full time members of boards and commissions, administrative assistants and confidential secretaries in the immediate office of an elected state official, and the personnel listed in subsections (10) through (22) of this section, shall be determined by the state personnel board.

Any person holding a classified position subject to the provisions of this chapter shall, when and if such position is subsequently exempted from the application of this chapter, be afforded the following rights: If such person previously held permanent status in another classified position, such person shall have a right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary, within four years from the date of appointment to the exempt position. However, (a) upon the prior request of the appointing authority of the exempt position, the personnel board may approve one extension of no more than four years; and (b) if an appointment was accepted prior to July 10, 1982, then the four-year period shall begin on July 10, 1982.

Sec. 38. Section 3, chapter 152, Laws of 1977 ex. sess. as amended by section 59, chapter 151, Laws of 1979 and RCW 41.06.163 are each amended to read as follows:

(1) In the conduct of salary and fringe benefit surveys under RCW 41.06.160 as now or hereafter amended, it is the intention of the legislature that the surveys be undertaken in a manner consistent with statistically accurate sampling techniques. For this purpose, a comprehensive salary and fringe benefit survey plan shall be submitted to the director of financial management, employee organizations, the standing committees for appropriations of the senate and house of representatives, and to the legislative ((~~budget~~)) oversight committee six months before the beginning of each periodic survey required before regular legislative sessions. This comprehensive plan shall include but not be limited to the following:

(b) A comprehensive salary and fringe benefit survey model based on scientific statistical principles which:

(i) Encompasses the interrelationships among the various elements of the survey sample including sources of salary and fringe benefit data by organization type, size, and regional location;

(ii) Is representative of private and public employment in this state;

(iii) Ensures that, wherever practical, data from smaller, private firms are included and proportionally weighted in the survey sample; and

(iv) Indicates the methodology to be used in application of survey data to job classes used by state government;

(2) Every comprehensive survey plan shall fully consider fringe benefits as an element of compensation in addition to basic salary data. The plans prepared under this section shall be developed jointly by the department of personnel in conjunction with the higher education personnel board established under chapter 28B.16 RCW. All comprehensive salary and fringe benefit survey plans shall be submitted on a joint signature basis by the department of personnel and the higher education personnel board. The legislative ((~~budget~~)) oversight committee shall review and evaluate all survey plans before final implementation.

(3) Interim or special surveys conducted under RCW 41.06.160 as now or hereafter amended shall conform when possible to the statistical techniques and principles developed for regular periodic surveys under this section.

(4) The term "fringe benefits" as used in this section and in conjunction with salary surveys shall include but not be limited to compensation for:

(a) Leave time, including vacation, holiday, civil, and personal leave;

(b) Employer retirement contributions;

(c) Health and insurance payments, including life, accident, and health insurance, workmen's compensation, and sick leave; and

(d) Stock options, bonuses, and purchase discounts where appropriate.

Sec. 39. Section 5, chapter 152, Laws of 1977 ex. sess. as last amended by section 2, chapter 11, Laws of 1980 and RCW 41.06.167 are each amended to read as follows:

The department of personnel shall undertake salary and fringe benefit surveys for officers of the Washington state patrol, with such surveys to be conducted at least in the year prior to the convening of each one hundred five day regular session of the state legislature. The results of each such survey shall be forwarded, after review and concurrence by the chief of the Washington state patrol, to the governor and director of financial management for their use in preparing budgets to be submitted to the succeeding legislature. A copy of the data and supporting documentation shall be furnished by the department of personnel to the legislative ((~~budget~~)) oversight committee and the standing committees for appropriations of the senate and house of representatives. The office of financial management shall analyze the survey results and conduct investigations which may be necessary to arbitrate differences between interested parties regarding the accuracy of collected survey data and the use of such data for salary adjustment.

Surveys conducted by the department of personnel for the Washington state patrol shall be undertaken in a manner consistent with statistically accurate sampling techniques, including comparisons of weighted averages of salaries. This service performed by the department of personnel shall be on a reimbursable basis in accordance with the provisions of RCW 41.06.080 as now existing or hereafter amended.

A comprehensive salary and fringe benefits survey plan shall be submitted jointly by the department of personnel and the Washington state patrol to the director of financial management, the committee on ways and means of the senate, the committee on appropriations of the house of representatives and to the legislative ((~~budget~~)) oversight committee six months before the beginning of each periodic survey. The legislative ((~~budget~~)) oversight committee shall review and evaluate the survey plan before final implementation.

Sec. 40. Section 5, chapter 167, Laws of 1982 and RCW 41.60.130 are each amended to read as follows:

The secretary of state shall prepare and submit to the legislative ((~~budget~~)) oversight committee a comprehensive annual status report on the board's activities, decisions, awards, and recommendations with respect to the employee incentive pay program.

Sec. 41. Section 113, chapter 287, Laws of 1984 and RCW 43.03.260 are each amended to read as follows:

The office of financial management shall review the compensation levels established for the various boards and commissions by RCW 43.03.220, 43.03.230, 43.03.240, and 43.03.250. The conclusions of the review, together with any proposed legislation, shall be submitted to the legislative ((~~budget~~)) oversight committee and the appropriate standing committees of the legislature by December 1, 1988, and every four years thereafter.

Sec. 42. Section 1, chapter 17, Laws of 1975-'76 2nd ex. sess. as last amended by section 1, chapter 217, Laws of 1981 and RCW 43.09.310 are each amended to read as follows:

The state auditor, through the division of departmental audits, shall annually audit the state-wide combined financial statements prepared by the office of financial management and make post-audits of state agencies. Post-audits of state agencies shall be made at such periodic intervals as is determined by the state auditor. Audits of combined financial statements shall include determinations as to the validity and accuracy of accounting methods, procedures and standards utilized in their preparation, as well as the accuracy of the financial statements themselves. A report shall be made of each such audit and post-audit upon completion thereof, and one copy shall be transmitted to the governor, one to the director of financial management, one to the attorney general, one to the state department audited, one to the legislative ((~~budget~~)) oversight committee, one each to the standing committees on ways and means of the house and senate, one to the chief clerk of the house, one to the secretary of the senate, and at least one shall be kept on file in the office of the state auditor. For purposes of reporting the annual audit of state-wide combined financial statements, "state department audited" refers solely to the office of financial management.

Sec. 43. Section 43.10.067, chapter 8, Laws of 1965 as amended by section 1, chapter 268, Laws of 1981 and RCW 43.10.067 are each amended to read as follows:

No officer, director, administrative agency, board, or commission of the state, other than the attorney general, shall employ, appoint or retain in employment any attorney for any administrative body, department, commission, agency, or tribunal or any other person to act as attorney in any legal or quasi legal capacity in the exercise of any of the powers or performance of any of the duties specified by law to be performed by the attorney general, except where it is provided by law to be the duty of the judge of any court or the prosecuting attorney of any county to employ or appoint such persons: PROVIDED, That RCW 43.10.040, and RCW 43.10.065 through 43.10.080 shall not apply to the administration of the judicial council, the judicial qualifications commission, the state law library, the law school of the state university, or the administration of the state bar act by the Washington State Bar Association.

The authority granted by chapter 1.08 RCW((~~, RCW 44.24.050,~~)) and ((~~RCW 44.28.140~~)) chapter 44.28 RCW shall not be affected hereby.

Sec. 44. Section 6, chapter 21, Laws of 1975-'76 2nd ex. sess. as amended by section 98, chapter 151, Laws of 1979 and RCW 43.19.19052 are each amended to read as follows:

Initial policy determinations for the functions described in RCW 43.19.1905 shall be developed and published within the 1975-77 biennium by the director, after consultation with the supply management advisory board for guidance and compliance by all state agencies, including educational institutions, involved in purchasing and material control. Modifications to these initial supply management policies established during the 1975-77 biennium shall be instituted by the director, after consultation with the advisory board, in future biennia as required to maintain an efficient and up-to-date state supply management system. The director shall transmit to the governor and the legislature in June 1976 and June 1977 a progress report which indicates the degree of accomplishment of each of these assigned duties, and which summarizes specific achievements obtained in increased effectiveness and dollar savings or cost avoidance within the overall state purchasing and material control system. The second progress report in June 1977 shall include a comprehensive supply management plan which includes the recommended organization of a state-wide purchasing and material control system and development of an orderly schedule for implementing such recommendation. In the interim between these annual progress reports, the director shall furnish periodic reports to the office of financial management and the legislative ((~~budget~~)) oversight committee for review of progress being accomplished in achieving increased efficiencies and dollar savings or cost avoidance.

It is the intention of the legislature that measurable improvements in the effectiveness and economy of supply management in state government shall be achieved during the 1975-77 biennium, and each biennium thereafter. All agencies, departments, offices, divisions, boards, and commissions and educational, correctional, and other types of institutions are required to cooperate with and support the development and implementation of improved efficiency and economy in purchasing and material control. To effectuate this legislative intention, the director, in consultation with the supply management advisory board, and through the state purchasing and material control director, shall have the authority to direct and require the submittal of data from all state organizations concerning purchasing and material control matters.

Sec. 45. Section 43.19.200, chapter 8, Laws of 1965 as last amended by section 2, chapter 102, Laws of 1984 and RCW 43.19.200 are each amended to read as follows:

(1) The governing authorities of the state's educational institutions, the elective state officers, the supreme court, the court of appeals, the administrative and other departments of the state government, and all appointive officers of the state, shall prepare estimates of the supplies required for the proper conduct and maintenance of their respective institutions, offices, and departments, covering periods to be fixed by the director, and forward them to the director in accordance with his directions. No such authorities, officers, or departments, or any officer or employee thereof, may purchase any article for the use of their institutions, offices, or departments, except in case of emergency purchases as provided in subsection (2) of this section.

(2) The authorities, officers, and departments enumerated in subsection (1) of this section may make emergency purchases in response to unforeseen circumstances beyond the control of the agency which present a real, immediate, and extreme threat to the proper performance of essential functions or which may reasonably be expected to result in excessive loss or damage to property, bodily injury, or loss of life. When an emergency purchase is made, the agency head shall submit written notification of the purchase, within three days of the purchase, to the director of general administration. This notification shall contain a description of the purchase, description of the emergency and the circumstances leading up to the emergency, and an explanation of why the circumstances required an emergency purchase.

(3) Purchases made for the state's educational institutions, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of the state government, and the offices of all appointive officers of the state, shall be paid for out of the moneys appropriated for supplies, material, and service of the respective institutions, offices, and departments.

(4) The director of general administration shall submit, on an annual basis, the written notifications required by subsection (2) of this section to the legislative ((~~budget~~)) oversight committee and the director of financial management. The legislative ((~~budget~~)) oversight committee shall review these notifications for compliance with legislative intent.

Sec. 46. Section 1, chapter 164, Laws of 1982 and RCW 43.19.532 are each amended to read as follows:

(1) State agencies and departments shall purchase printing, related trade services, and total copy system services for projects under two hundred dollars directly from day training centers and group training homes as defined in RCW 72.33.800 or sheltered workshops as defined in RCW 82.04.385, if the agencies or departments are located within a reasonable distance from the sheltered workshops, training centers, or group training homes. State agencies and departments may purchase microfilming and related services from day training centers, group training homes or sheltered workshops. All microfilming and related services purchased under this section shall be purchased at a price equal to or less than the fair market value. Total copy system services offered by such centers, homes, and sheltered workshops shall not replace the use by agencies and departments of in-house convenience copiers, in-house printing and binding facilities, or in-place total copy systems. All printing services and related trade services purchased under this section shall be purchased at a price equal to or less than the fair market value as determined by the standard trade pricing manuals. Copy services shall be purchased at a price equal to or less than the competitive price that is standard in the county. Such homes, centers, or sheltered workshops shall only accept work for which they can provide normal quality in a reasonable time period. All the work that such home, center, or sheltered workshop contracts to do shall be performed at the home's or center's facility or at the sheltered workshop and not by any other printing company. State agencies and departments shall purchase from other authorized sources when the service cannot be supplied by such homes, centers, or sheltered workshops. Institutions of higher education are not required to purchase printing, related trade services, or total copy system services under this section.

(2) The regional directors for vocational rehabilitation shall provide homes, centers, and sheltered workshops with the name and address of each state agency or department requiring these services within the county and copies of this section. The regional directors shall provide the public printer with the names and addresses of such homes, centers, or sheltered workshops.

(3) The public printer shall investigate and have the authority to correct any claims that an agency or department is being overcharged for either printing or related trade or copying services.

(4) This section shall expire June 30, 1986, unless extended by law for an additional fixed period of time. The legislative ((~~budget~~)) oversight committee shall cause a performance audit to be conducted of the program under this section. The final audit report shall be available to the legislature at least six months prior to the scheduled expiration date. The audit shall include, but is not limited to, objective findings of fact, conclusions, and recommendations as to continuation, modification, or termination of the program under this section.

Sec. 47. Section 3, chapter 86, Laws of 1977 ex. sess. and RCW 43.19.650 are each amended to read as follows:

The director of general administration, through the printing and duplicating management center, shall hereafter approve or take such other action as is deemed necessary regarding the purchase or acquisition of any printing, microfilm, or other duplicating equipment, other than typewriters, by any official or agency of the state.

The staff of the printing and duplicating management center shall develop a copier, duplicating, printing, and microfilm plan for the state, shall monitor implementation of the plan, shall recommend any necessary changes in the plan to the director, and shall develop and promulgate status reports to the governor, the legislative ((~~budget~~)) oversight committee, and to the pertinent executive branch agencies.

Sec. 48. Section 5, chapter 86, Laws of 1977 ex. sess. as amended by section 106, chapter 151, Laws of 1979 and RCW 43.19.660 are each amended to read as follows:

The operation of the printing and duplicating management center shall be financed by the director of the department of general administration from moneys appropriated by the legislature.

The director of the department of general administration shall be responsible for establishing realistic fees to be charged for services rendered by the printing and duplicating management center. The director of financial management shall approve any fees prior to their implementation. All fees and charges collected for services rendered by the printing and duplicating management center shall be deposited in the general fund. It is the intent of RCW 43.19.640 through 43.19.665 that the fees paid by the agencies and the savings experienced from the activities of the printing and duplicating management center shall more than offset the operating costs of the center.

The director of the department of general administration shall, in December of each calendar year, submit a report of all reported savings by each agency for the year to the senate committee on ways and means, the house committee on appropriations, and the legislative ((~~budget~~)) oversight committee.

Sec. 49. Section 1, chapter 220, Laws of 1979 ex. sess. as last amended by section 8, chapter 43, Laws of 1982 1st ex. sess. and RCW 43.52.378 are each amended to read as follows:

The executive board of any operating agency constructing, operating, terminating, or decommissioning a nuclear power plant under a site certification agreement issued pursuant to chapter 80.50 RCW shall appoint an administrative auditor. The administrative auditor shall be deemed an officer under chapter 42.23 RCW. The appointment of the administrative auditor shall be in addition to the appointment of the auditor for the issuance of warrants and other purposes as provided in RCW 43.52.375. The executive board shall retain a qualified firm or firms to conduct performance audits which is in fact independent and does not have any interest, direct or indirect, in any contract with the operating agency other than its employment hereunder. No member or employee of any such firm shall be connected with the operating agency as an officer, employee, or contractor. The administrative auditor and the firm or firms shall be independently and directly responsible to the executive board of the operating agency. The executive board shall require a firm to conduct continuing audits of the methods, procedures and organization used by the operating agency to control costs, schedules, productivity, contract amendments, project design and any other topics deemed desirable by the executive board. The executive board may also require a firm to analyze particular technical aspects of the operating agency's projects and contract amendments. The firm or firms shall provide advice to the executive board in its management and control of the operating agency. At least once each year, the firm or firms shall prepare and furnish a report of its actions and recommendations to the executive board for the purpose of enabling it to attain the highest degree of efficiency in the management and control of any thermal power project under construction or in operation. The administrative auditor shall assist the firm or firms in the performance of its duties. The administrative auditor and the firm or firms shall consult regularly with the executive board and furnish any information or data to the executive board which the administrative auditor, firm, or executive board deems helpful in accomplishing the purpose above stated. The administrative auditor shall perform such other duties as the executive board shall prescribe to accomplish the purposes of this section.

In addition to the powers and duties conferred by chapter 44.28 RCW, the legislative ((~~budget~~)) oversight committee shall evaluate such management audits as to adequacy and effectiveness of procedure and shall consult with and make reports and recommendations to the executive board. The operating agency shall reimburse the legislative ((~~budget~~)) oversight committee for all costs of furnishing such services.

The operating agency shall file a copy of each firm's reports, and the legislative ((~~budget~~)) oversight committee shall file a copy of each of its reports or recommendations in a timely manner, prepared in accordance with this section, with the respective chairmen of the senate and house energy and utilities committees. Upon the concurrent request of the chairmen of the senate or house energy and utilities committees, the operating agency shall report to the committees on a quarterly basis.

Sec. 50. Section 5, chapter 173, Laws of 1981 and RCW 43.52.510 are each amended to read as follows:

The administrative auditor shall file with the executive board or executive committee of the operating agency a quarterly report relating to compliance by the operating agency with RCW 43.52.490 through 43.52.505. The administrative auditor shall file copies of the report with the legislative ((~~budget~~)) oversight committee, which shall file a copy of each report with the respective chairpersons of the energy and utilities committees of the senate and house of representatives under RCW 43.52.378.

Sec. 51. Section 7, chapter 44, Laws of 1982 1st ex. sess. and RCW 43.52.618 are each amended to read as follows:

(1) Except as provided otherwise in this chapter, a joint operating agency shall purchase any item or items of materials, equipment or supplies, the estimated cost of which is in excess of five thousand dollars exclusive of sales tax, or order work for construction of generating projects and associated facilities, the estimated cost of which is in excess of ten thousand dollars exclusive of sales tax, by contract in accordance with RCW 54.04.070 and 54.04.080, which require sealed bids for contracts.

(2) When a joint operating agency chooses to use one or more of the exceptions to sealed bid contracting specified in this chapter, the agency shall certify to the senate and house committees on energy and utilities and the legislative ((~~budget~~)) oversight committee in writing within thirty days after the contract is signed, that such contract is in the public interest, state the reason or reasons why, and indicate the estimated cost savings or schedule improvement to the project compared to contracting for the same material, supplies, equipment or work through completion of work as contracted, including termination costs, or through sealed bids.

Sec. 52. Section 43.79.270, chapter 8, Laws of 1965 as amended by section 2, chapter 144, Laws of 1973 and RCW 43.79.270 are each amended to read as follows:

Whenever any money, from the federal government, or from other sources, which was not anticipated in the budget approved by the legislature has actually been received and is designated to be spent for a specific purpose, the head of any department, agency, board, or commission through which such expenditure shall be made is to submit to the governor a statement which may be in the form of a request for an allotment amendment setting forth the facts constituting the need for such expenditure and the estimated amount to be expended: PROVIDED, That no expenditure shall be made in excess of the actual amount received, and no money shall be expended for any purpose except the specific purpose for which it was received. A copy of any proposal submitted to the governor to expend money from an appropriated fund or account in excess of appropriations provided by law which is based on the receipt of unanticipated revenues shall be submitted to the legislative ((~~budget~~)) oversight committee and also to the standing committees on ways and means of the house and senate if the legislature is in session at the same time as it is transmitted to the governor.

Sec. 53. Section 43.79.280, chapter 8, Laws of 1965 as amended by section 3, chapter 144, Laws of 1973 and RCW 43.79.280 are each amended to read as follows:

If the governor approves such estimate in whole or part, he shall endorse on each copy of the statement his approval, together with a statement of the amount approved in the form of an allotment amendment, and transmit one copy to the head of the department, agency, board, or commission authorizing the expenditure. An identical copy of the governor's statement of approval and a statement of the amount approved for expenditure shall be transmitted simultaneously to the legislative ((~~budget~~)) oversight committee and also to the standing committee on ways and means of the house and senate of all executive approvals of proposals to expend money in excess of appropriations provided by law.

Sec. 54. Section 1, chapter 36, Laws of 1982 1st ex. sess. as amended by section 6, chapter 138, Laws of 1984 and RCW 43.88.020 are each amended to read as follows:

(1) "Budget" shall mean a proposed plan of expenditures for a given period or purpose and the proposed means for financing these expenditures.

(2) "Budget document" shall mean a formal, written statement offered by the governor to the legislature, as provided in RCW 43.88.030.

(3) "Director of financial management" shall mean the official appointed by the governor to serve at the governor's pleasure and to whom the governor may delegate necessary authority to carry out the governor's duties as provided in this chapter. The director of financial management shall be head of the office of financial management which shall be in the office of the governor.

(4) "Agency" shall mean and include every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided in this chapter.

(5) "Public funds", for purposes of this chapter, shall mean all moneys, including cash, checks, bills, notes, drafts, stocks and bonds, whether held in trust, for operating purposes, or for capital purposes, and collected or disbursed under law, whether or not such funds are otherwise subject to legislative appropriation, including funds maintained outside the state treasury.

(6) "Regulations" shall mean the policies, standards and requirements, stated in writing, designed to carry out the purposes of this chapter, as issued by the governor or his designated agent, and which shall have the force and effect of law.

(7) "Ensuing biennium" shall mean the fiscal biennium beginning on July 1st of the same year in which a regular session of the legislature is held during an odd-numbered year pursuant to Article II, section 12 of the Constitution and which biennium next succeeds the current biennium.

(8) "Dedicated fund" means a fund in the state treasury, or a separate account or fund in the general fund in the state treasury, that by law is dedicated, appropriated or set aside for a limited object or purpose; but "dedicated fund" shall not include a revolving fund or a trust fund.

(9) "Revolving fund" means a fund in the state treasury, established by law, from which is paid the cost of goods or services furnished to or by a state agency, and which is replenished through charges made for such goods or services or through transfers from other accounts or funds.

(10) "Trust fund" means a fund in the state treasury in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.

(11) "Administrative expenses" means expenditures for: (a) Salaries, wages, and related costs of personnel and (b) operations and maintenance including but not limited to costs of supplies, materials, services, and equipment.

(12) "Fiscal year" means the year beginning July 1st and ending the following June 30th.

(13) "Lapse" means the termination of authority to expend an appropriation.

(14) "Legislative fiscal committees" means the legislative ((~~budget committee, the legislative evaluation and accountability program~~)) oversight committee, the ways and means committees of the senate and house of representatives, and, where appropriate, the legislative transportation committee.

(15) "Fiscal period" means the period for which an appropriation is made as specified within the act making the appropriation.

(16) "Primary budget driver" means the primary determinant of a budget level, other than a price variable, which causes or is associated with the major expenditure of an agency or budget unit within an agency, such as a caseload, enrollment, workload, or population statistic.

(17) "Stabilization account" means the budget stabilization account created under RCW 43.88.525 as an account in the general fund of the state treasury.

(18) "State tax revenue limit" means the limitation created by chapter 43.135 RCW.

(19) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.

(20) "Annual growth rate in real personal income" means the estimated percentage growth in personal income for the state during the current fiscal year, expressed in constant value dollars, as published by the office of financial management or its successor agency.

(21) "Estimated revenues" means estimates of revenue in the most recent official economic and revenue forecast prepared under RCW 82.01.120.

Sec. 55. Section 43.88.030, chapter 8, Laws of 1965 as last amended by section 7, chapter 138, Laws of 1984 and RCW 43.88.030 are each amended to read as follows:

(1) The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period based upon estimated revenues for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document: PROVIDED, That the governor may additionally submit, as an appendix to each agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

The budget document or documents shall also contain:

(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, and those anticipated for the ensuing biennium;

(b) Cash surplus or deficit, by fund, to the extent provided by RCW 43.88.040 and 43.88.050;

(c) Such additional information dealing with expenditures, revenues, workload, performance and personnel as the legislature may direct by law or concurrent resolution;

(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

(e) Tabulations showing expenditures classified by fund, function, activity and object; and

(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury.

(2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of anticipated revenues shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

(a) Interest, amortization and redemption charges on the state debt;

(b) Payments of all reliefs, judgments and claims;

(d) Expenditures incident to the operation for each agency;

(e) Revenues derived from agency operations;

(f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium.

(3) A separate budget document or schedule may be submitted consisting of:

(a) Expenditures incident to current or pending capital projects and to proposed new capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget and the respective amounts proposed to be raised therefor by the issuance of bonds during the fiscal period;

(b) A capital program consisting of proposed capital projects for at least the two fiscal periods succeeding the next fiscal period. The capital program shall include for each proposed project a statement of the reason or purpose for the project along with an estimate of its cost;

(d) Such other information relating to capital improvement projects as the legislature may direct by law or concurrent resolution.

(4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative ((~~evaluation and accountability program~~)) oversight committee if the legislature is not in session.

Sec. 56. Section 43.88.090, chapter 8, Laws of 1965 as last amended by section 3, chapter 247, Laws of 1984 and RCW 43.88.090 are each amended to read as follows:

(1) For purposes of developing budget proposals to the legislature, the governor shall have the power, and it shall be the governor's duty, to require from proper agency officials such detailed estimates and other information in such form and at such times as the governor shall direct. The estimates for the legislature and the judiciary shall be transmitted to the governor and shall be included in the budget without revision. Copies of all such estimates shall be transmitted to the standing committees on ways and means of the house and senate at the same time as they are filed with the governor and the office of financial management.

(2) Estimates from each agency shall include goals and objectives for each program administered by the agency. The goals and objectives shall, whenever possible, be stated in terms of objective measurable results. The estimates shall include statements or tables which indicate, by agency, the state funds which are required for the receipt of federal matching revenues. The estimates shall be revised as necessary to reflect legislative enactments and adopted appropriations and shall be included with the initial biennial allotment submitted under RCW 43.88.110.

(3) Each agency shall submit to the office of financial management a report by September 15 of each odd-numbered year on its performance toward the goals and objectives established for the previous fiscal biennium and the goals and objectives established for the current fiscal biennium. Copies of the reports shall be transmitted by the office of financial management to the standing committees on ways and means of the house of representatives and senate and the legislative ((~~budget~~)) oversight committee by December 31 of each odd-numbered year.

(4) In the year of the gubernatorial election, the governor shall invite the governor-elect or the governor-elect's designee to attend all hearings provided in RCW 43.88.100; and the governor shall furnish the governor-elect or the governor-elect's designee with such information as will enable the governor-elect or the governor-elect's designee to gain an understanding of the state's budget requirements. The governor-elect or the governor-elect's designee may ask such questions during the hearings and require such information as the governor-elect or the governor-elect's designee deems necessary and may make recommendations in connection with any item of the budget which, with the governor-elect's reasons therefor, shall be presented to the legislature in writing with the budget document. Copies of all such estimates and other required information shall also be submitted to the standing committees on ways and means of the house and senate.

Sec. 57. Section 6, chapter 270, Laws of 1981 and RCW 43.88.111 are each amended to read as follows:

(1) The director of financial management shall enter approved allotments into the central accounting system within ninety days after the effective date of any act making an appropriation. In the case of the omnibus appropriation bill or bills, this shall be completed within ninety days and in no event later than September 1st following enactment. For the department of social and health services and any agency having primary jurisdiction over adult corrections, the allotment plan shall include monthly estimates of primary budget drivers such as workloads, caseloads, and population statistics for budget areas as specified by the director of financial management.

Exceptions for the timely filing of allotments by agencies under this section may be made only by the written authorization of the director of financial management, who shall report the authorization to the legislative fiscal committees.

(2) Allotments of public funds shall not be revised retroactively. Allotments may be revised for future months, but the revised allotments of an appropriation shall not exceed the total amount appropriated. If the director of financial management believes that a revised allotment which conforms to the amount appropriated will not accurately reflect the actual expected expenditure requirements, then the agency, or budget unit within the agency, shall in a timely manner provide to the director of financial management a second estimate of anticipated monthly expenditures without regard to the amount appropriated. After an appropriate review, the director of financial management shall provide a copy of the agency's second estimate and the director of financial management's comments thereon to the legislative ((~~evaluation and accountability program~~)) oversight committee.

Sec. 58. Section 11, chapter 10, Laws of 1982 and RCW 43.88.160 are each amended to read as follows:

This section sets forth the major fiscal duties and responsibilities of officers and agencies of the executive branch. The regulations issued by the governor pursuant to this chapter shall provide for a comprehensive, orderly basis for fiscal management and control, including efficient accounting and reporting therefor, for the executive branch of the state government and may include, in addition, such requirements as will generally promote more efficient public management in the state.

(1) Governor; director of financial management. The governor, through the director of financial management, shall devise and supervise a modern and complete accounting system for each agency to the end that all revenues, expenditures, receipts, disbursements, resources and obligations of the state shall be properly and systematically accounted for. The accounting system shall include the development of accurate, timely records and reports of all financial affairs of the state. The system shall also provide for comprehensive central accounts in the office of financial management. The director of financial management shall adopt and periodically update an accounting procedures manual. Any agency maintaining its own accounting and reporting system shall comply with the updated accounting procedures manual and the rules of the director adopted under this chapter. An agency may receive a waiver from complying with this requirement if the waiver is approved by the director. Waivers expire at the end of the fiscal biennium for which they are granted. The director shall forward notice of waivers granted to the legislative fiscal committees. The director of financial management may require such financial, statistical, and other reports as the director deems necessary from all agencies covering any period. This shall include the timely reporting of primary budget drivers such as actual workloads, caseloads, and unit cost data for applicable areas. The director of financial management shall review the data for accuracy and consistency. The director shall submit the data to the legislative ((~~evaluation and accountability program~~)) oversight committee. The legislative ((~~evaluation and accountability program~~)) oversight committee shall provide reports on the data at least quarterly to the legislative fiscal committees and the office of financial management.

The director of financial management is responsible for quarterly reporting of primary budget drivers such as applicable workloads, caseload estimates, and appropriate unit cost data. These reports shall be updated concurrently with the quarterly revenue and economic forecast and transmitted to the legislative fiscal committees. Quarterly reports shall include actual monthly data and the variance between actual and estimated data to date. The reports shall also include estimates of these items for the remainder of the budget period.

In addition, the director of financial management, as agent of the governor, shall:

(a) Make surveys and analyses of agencies with the object of determining better methods and increased effectiveness in the use of manpower and materials; and the director shall authorize expenditures for employee training to the end that the state may benefit from training facilities made available to state employees;

(b) Report to the governor with regard to duplication of effort or lack of coordination among agencies;

(c) Review any pay and classification plans, and changes thereunder, developed by any agency for their fiscal impact: PROVIDED, That none of the provisions of this subsection shall affect merit systems of personnel management now existing or hereafter established by statute relating to the fixing of qualifications requirements for recruitment, appointment, or promotion of employees of any agency. The director shall advise and confer with agencies including appropriate standing committees of the legislature as may be designated by the speaker of the house and the president of the senate regarding the fiscal impact of such plans and may amend or alter said plans, except that for the following agencies no amendment or alteration of said plans may be made without the approval of the agency concerned: Agencies headed by elective officials;

(d) Fix the number and classes of positions or authorized man years of employment for each agency and during the fiscal period amend the determinations previously fixed by the director except that the director shall not be empowered to fix said number or said classes for the following: Agencies headed by elective officials;

(e) Provide for transfers and repayments between the budget stabilization account and the general fund as directed by appropriation and RCW 43.88.525 through 43.88.540;

(f) Promulgate regulations to effectuate provisions contained in subsections (a) through (e) hereof.

(2) The treasurer shall:

(a) Receive, keep and disburse all public funds of the state not expressly required by law to be received, kept and disbursed by some other persons: PROVIDED, That this subsection shall not apply to those public funds of the institutions of higher learning which are not subject to appropriation;

(b) Disburse public funds under the treasurer's supervision or custody by warrant or check;

(c) Keep a correct and current account of all moneys received and disbursed by the treasurer, classified by fund or account;

(d) Perform such other duties as may be required by law or by regulations issued pursuant to this law.

It shall be unlawful for the treasurer to issue any warrant or check for public funds in the treasury except upon forms duly prescribed by the director of financial management. Said forms shall provide for authentication and certification by the agency head or his designee that the services have been rendered or the materials have been furnished; or, in the case of payments for periodic maintenance services to be performed on state owned equipment, that a written contract for such periodic maintenance services is currently in effect and copies thereof are on file with the office of financial management; and the treasurer shall not be liable under the treasurer's surety bond for erroneous or improper payments so made: PROVIDED, That when services are lawfully paid for in advance of full performance by any private individual or business entity other than as provided for by RCW 42.24.035, such individual or entity other than central stores rendering such services shall make a cash deposit or furnish surety bond coverage to the state as shall be fixed in an amount by law, or if not fixed by law, then in such amounts as shall be fixed by the director of the department of general administration but in no case shall such required cash deposit or surety bond be less than an amount which will fully indemnify the state against any and all losses on account of breach of promise to fully perform such services: AND PROVIDED FURTHER, That no payments shall be made in advance for any equipment maintenance services to be performed more than three months after such payment. Any such bond so furnished shall be conditioned that the person, firm or corporation receiving the advance payment will apply it toward performance of the contract. The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency head's designee in accordance with regulations issued pursuant to this chapter.

(3) The state auditor shall:

(a) Report to the legislature the results of current post audits that have been made of the financial transactions of each agency; to this end he may, in the auditor's discretion, examine the books and accounts of any agency, official or employee charged with the receipt, custody or safekeeping of public funds. The current post audit of each agency may include a section on recommendations to the legislature as provided in subsection (3)(c) of this section.

(b) Give information to the legislature, whenever required, upon any subject relating to the financial affairs of the state.

(c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include at least the following:

Determinations as to whether agencies, in making expenditures, complied with the laws of this state: PROVIDED, That nothing in this act shall be construed to grant the state auditor the right to perform performance audits. A performance audit for the purpose of this act shall be the examination of the effectiveness of the administration, its efficiency and its adequacy in terms of the programs of departments or agencies as previously approved by the legislature. The authority and responsibility to conduct such an examination shall be vested in the legislative ((~~budget~~)) oversight committee as prescribed in RCW 44.28.085 as now or hereafter amended.

(d) Be empowered to take exception to specific expenditures that have been incurred by any agency or to take exception to other practices related in any way to the agency's financial transactions and to cause such exceptions to be made a matter of public record, including disclosure to the agency concerned and to the director of financial management. It shall be the duty of the director of financial management to cause corrective action to be taken promptly, such action to include, as appropriate, the withholding of funds as provided in RCW 43.88.110.

(e) Promptly report any irregularities to the attorney general.

(4) The legislative ((~~budget~~)) oversight committee may:

(a) Make post audits of the financial transactions of any agency and management surveys and program reviews as provided for in RCW 44.28.085 as now or hereafter amended. To this end the committee may in its discretion examine the books, accounts, and other records of any agency, official, or employee.

(b) Give information to the legislature or any legislative committee whenever required upon any subject relating to the performance and management of state agencies.

(i) Determinations as to the extent to which agencies in making expenditures have complied with the will of the legislature and in this connection, may take exception to specific expenditures or financial practices of any agencies; and

(ii) Such plans as it deems expedient for the support of the state's credit, for lessening expenditures, for promoting frugality and economy in agency affairs and generally for an improved level of fiscal management.

Sec. 59. Section 4, chapter 41, Laws of 1967 ex. sess. as last amended by section 141, chapter 151, Laws of 1979 and RCW 43.88.205 are each amended to read as follows:

(1) Whenever an agency makes application, enters into a contract or agreement, or submits state plans for participation in, and for grants of federal funds under any federal law, the agency making such application shall at the time of such action, give notice in such form and manner as the director of financial management may prescribe, or the chairman of the legislative ((~~budget~~)) oversight committee, standing committees on ways and means of the house and senate, the chief clerk of the house, or the secretary of the senate may request.

(2) Whenever any such application, contract, agreement, or state plan is amended, such agency shall notify each such officer of such action in the same manner as prescribed or requested pursuant to subsection (1) of this section.

(3) Such agency shall promptly furnish such progress reports in relation to each such application, contract, agreement, or state plan as may be requested following the date of the filing of the application, contract, agreement, or state plan; and shall also file with each such officer a final report as to the final disposition of each such application, contract, agreement, or state plan if such is requested.

Sec. 60. Section 43.88.230, chapter 8, Laws of 1965 as last amended by section 12, chapter 270, Laws of 1981 and RCW 43.88.230 are each amended to read as follows:

For the purposes of this chapter, the statute law committee, the legislative ((~~budget~~)) oversight committee, the legislative transportation committee, ((~~the legislative evaluation and accountability program committee,~~)) the office of state actuary, and all legislative standing committees of both houses shall be deemed a part of the legislative branch of state government.

Sec. 61. Section 4, chapter 320, Laws of 1977 ex. sess. and RCW 43.88.310 are each amended to read as follows:

(1) The ((~~legislative auditor~~)) director of the office of legislative oversight, with the concurrence of the legislative ((~~budget~~)) oversight committee, may file with the attorney general any audit exceptions or other findings of any performance audit, management study, or special report prepared for the legislative ((~~budget~~)) oversight committee, any standing or special committees of the house or senate, or the entire legislature which indicate a violation of RCW 43.88.290.

(2) The attorney general shall promptly review each filing received from the ((~~legislative auditor~~)) director of the office of legislative oversight and proceed to act thereon as provided in RCW 43.88.300. If for any reason the attorney general is unable to proceed the attorney general shall report this fact and the reasons therefor to the legislative ((~~budget~~)) oversight committee.

Sec. 62. Section 3, chapter 23, Laws of 1977 as amended by section 144, chapter 151, Laws of 1979 and RCW 43.88.510 are each amended to read as follows:

Not later than ninety days after the beginning of each biennium, the director of financial management shall submit the compiled list of boards, commissions, councils, and committees, together with the information on each such group, that is required by RCW 43.88.505 to:

(1) The speaker of the house and the president of the senate for distribution to the appropriate standing committees; and

(2) The legislative ((~~budget~~)) oversight committee.

Sec. 63. Section 3, chapter 25, Laws of 1977 ex. sess. as last amended by section 1, chapter 112, Laws of 1979 ex. sess. and RCW 43.88A.030 are each amended to read as follows:

When a fiscal note is prepared and approved as to form, accuracy, and completeness by the office of financial management, which depicts the expected fiscal impact of a bill or resolution, copies shall be filed immediately with:

(1) The chairperson of the committee to which the bill or resolution was referred upon introduction in the house of origin;

(2) The senate committee on ways and means, or its successor;

(3) The house committees on revenue and appropriations, or their successors; and

(4) The legislative ((~~budget~~)) oversight committee.

Whenever possible, such fiscal note shall be provided prior to or at the time the bill or resolution is first heard by the committee of reference in the house of origin.

When a fiscal note has been prepared for a bill or resolution, a copy of the fiscal note shall be placed in the bill books or otherwise attached to the bill or resolution and shall remain with the bill or resolution throughout the legislative process insofar as possible.

Sec. 64. Section 2, chapter 219, Laws of 1973 1st ex. sess. and RCW 43.105.016 are each amended to read as follows:

It is the intention of the legislature that this chapter shall form the basis for the formulation of a long range state automated data processing plan to satisfy the requirements of the legislative, executive, and judicial branches of state government. Each legislative, executive, and judicial agency of state government shall study and define its automated data processing requirements in order that the plan allow for the unique requirements of each branch. All agencies of state government are required to cooperate with and support the development and implementation of this plan. To effectuate this intention, the state data processing authority shall have the authority to direct and require the submittal of data from all state agencies, including data from the state auditor, concerning local government agencies. In addition, the state auditor shall conduct a fiscal-legal audit of the completion of the tasks for the authority specified by RCW 43.105.043, and the legislative ((~~budget~~)) oversight committee, or its successor, shall conduct a performance audit of such tasks.

Sec. 65. Section 5, chapter 289, Laws of 1977 ex. sess. as amended by section 1, chapter 22, Laws of 1979 and RCW 43.131.050 are each amended to read as follows:

The legislative ((~~budget~~)) oversight committee shall cause to be conducted a program and fiscal review of each state agency scheduled for termination by the processes provided in this chapter. Such program and fiscal review shall be completed and a report prepared on or before June 30th of the year prior to the date established for termination. Upon completion of its report, the legislative ((~~budget~~)) oversight committee shall transmit copies of the report to the office of financial management. The office of financial management may then conduct its own program and fiscal review of the agency scheduled for termination and shall prepare a report on or before September 30th of the year prior to the date established for termination. Upon completion of its report the office of financial management shall transmit copies of its report to the legislative ((~~budget~~)) oversight committee. The legislative ((~~budget~~)) oversight committee shall prepare a final report that includes the reports of both the office of financial management and the legislative ((~~budget~~)) oversight committee. The legislative ((~~budget~~)) oversight committee and the office of financial management shall, upon request, make available to each other all working papers, studies, and other documents which relate to reports required under this section. The legislative ((~~budget~~)) oversight committee shall transmit the final report to all members of the legislature, to the state agency concerned, to the governor, and to the state library.

Sec. 66. Section 6, chapter 289, Laws of 1977 ex. sess. and RCW 43.131.060 are each amended to read as follows:

In conducting the review of a regulatory entity, the legislative ((~~budget~~)) oversight committee shall consider, but not be limited to, the following factors where applicable:

(1) The extent to which the regulatory entity has permitted qualified applicants to serve the public;

(2) The extent to which the regulatory entity restricts or inhibits competition or otherwise adversely affects the state's economic climate;

(3) The extent to which the system of regulation has contributed directly or indirectly to increasing or decreasing the costs of any goods or services involved;

(4) The duties of the regulatory entity and the costs incurred in carrying out such duties;

(5) Whether the regulatory entity has operated in the public interest, including the extent to which the regulatory entity has:

(a) Sought and achieved public participation in making its rules and decisions including consideration of recommending appointment of one or more "public" members to the entity;

(b) Processed to completion in a timely and equitable manner the formal complaints filed with it;

(c) Implemented an effective system of evaluating the impact on the public of its rules and decisions regarding economy, availability, and improvement of the services rendered to the persons it regulates;

(d) Initiated administrative procedures or recommended statutory changes to the legislature that would benefit the public as opposed to the persons it regulates; and

(e) Identified the needs and problems of the recipients of goods and services provided by those regulated;

(6) The extent to which persons regulated by the regulatory entity have been encouraged to participate in assessing problems in their profession, occupation, or industry which affect the public;

(7) The impact and effectiveness of the regulatory entity with respect to the problems or needs the entity was intended to address;

(8) The consequences of eliminating or modifying the program of the regulatory entity;

(9) The extent to which the regulatory entity duplicates the activities of other regulatory entities or of the private sector, where appropriate; and

(10) The extent to which the absence or modification of regulation would adversely affect the public health, safety, or welfare.

Sec. 67. Section 7, chapter 289, Laws of 1977 ex. sess. and RCW 43.131.070 are each amended to read as follows:

In conducting the review of a state agency other than a regulatory entity, the legislative ((~~budget~~)) oversight committee shall consider, but not be limited to, the following factors where applicable:

(1) The extent to which the state agency has complied with legislative intent;

(2) The extent to which the state agency is operating in an efficient and economical manner which results in optimum performance;

(3) The extent to which the state agency is operating in the public interest by effectively providing a needed service that should be continued rather than modified, consolidated, or eliminated;

(4) The extent to which the state agency duplicates the activities of other state agencies or of the private sector, where appropriate; and

(5) The extent to which the termination or modification of the state agency would adversely affect the public health, safety, or welfare.

Sec. 68. Section 8, chapter 289, Laws of 1977 ex. sess. as amended by section 3, chapter 27, Laws of 1983 1st ex. sess. and RCW 43.131.080 are each amended to read as follows:

(1) Following receipt of the final report from the legislative ((~~budget~~)) oversight committee, the appropriate committees of reference in the senate and the house of representatives shall each hold a public hearing, unless a joint hearing is held, to consider the final report and any related data. The committees shall also receive testimony from representatives of the state agency or agencies involved, which shall have the burden of demonstrating a public need for its continued existence; and from the governor or the governor's designee, and other interested parties, including the general public.

(2) When requested by either of the presiding members of the appropriate senate and house committees of reference, a regulatory entity under review shall mail an announcement of any hearing to the persons it regulates who have requested notice of agency rule-making proceedings as provided in RCW 34.04.025(1)(a), as now existing or hereafter amended, or who have requested notice of hearings held pursuant to the provisions of this section. On request of either presiding member, such mailing shall include an explanatory statement not exceeding one page in length prepared and supplied by the member's committee.

(3) The presiding members of the senate committee on ways and means and the house committee on appropriations may designate one or more liaison members to each committee of reference in their respective chambers for purposes of participating in any hearing and in subsequent committee of reference discussions and to seek a coordinated approach between the committee of reference and the committee they represent in a liaison capacity.

(4) Following any hearing under subsection (1) of this section by the committees of reference, such committees may hold additional meetings or hearings to come to a final determination as to whether a state agency has demonstrated a public need for its continued existence or whether modifications in existing procedures are needed. In the event that a committee of reference concludes that a state agency shall be reestablished or modified or its functions transferred elsewhere, it shall make such determination as a bill. No more than one state agency shall be reestablished or modified in any one bill.

Sec. 69. Section 11, chapter 289, Laws of 1977 ex. sess. and RCW 43.131.110 are each amended to read as follows:

Any reference in this chapter to a committee of the legislature including the legislative ((~~budget~~)) oversight committee shall also refer to the successor of that committee.

Sec. 70. Section 4, chapter 19, Laws of 1977 ex. sess. as amended by section 151, chapter 151, Laws of 1979 and RCW 43.132.040 are each amended to read as follows:

When a fiscal note is prepared and approved as to form and completeness by the director of financial management, the director shall transmit copies immediately to:

(1) The requesting legislator;

(2) With respect to proposed legislation held by the senate, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairperson of the ways and means committee, the chairperson of the local government committee, and the secretary of the senate;

(3) With respect to proposed legislation held by the house of representatives, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairpersons of the revenue and taxation and appropriations committees, the chairperson of the local government committee, and the chief clerk of the house of representatives; and

(4) The legislative ((~~budget~~)) oversight committee.

Sec. 71. Section 5, chapter 19, Laws of 1977 ex. sess. as amended by section 152, chapter 151, Laws of 1979 and RCW 43.132.050 are each amended to read as follows:

The office of financial management and the legislative ((~~budget~~)) oversight committee may make additional copies of the fiscal note available to members of the legislature and others on request.

At the request of any member of the senate or house of representatives, whichever is considering the proposed legislation, and unless it is prohibited by the rules of the body, copies of the fiscal note or a synopsis thereof shall be placed on the members' desks at the time the proposed legislation takes its place on the second reading calendar.

Whenever proposed legislation accompanied by such a fiscal note is passed by either the senate or the house of representatives, the fiscal note shall be transmitted with the bill to the other house.

Sec. 72. Section 41, chapter 35, Laws of 1982 1st ex. sess. and RCW 43.136.030 are each amended to read as follows:

The legislative ((~~budget~~)) oversight committee shall review each tax preference for termination by the processes provided in this chapter. The review shall be completed and a report prepared on or before June 30th of the year prior to the date established for termination. Upon completion of its report, the legislative ((~~budget~~)) oversight committee shall transmit copies of the report to the department of revenue. The department of revenue may then conduct its own review of the tax preference scheduled for termination and shall prepare a report on or before September 30th of the year prior to the date established for termination. Upon completion of its report the department of revenue shall transmit copies of its report to the legislative ((~~budget~~)) oversight committee. The legislative ((~~budget~~)) oversight committee shall prepare a final report that includes the reports of both the department of revenue and the legislative ((~~budget~~)) oversight committee. The legislative ((~~budget~~)) oversight committee and the department of revenue shall, upon request, make available to each other all working papers, studies, and other documents which relate to reports required under this section. The legislative ((~~budget~~)) oversight committee shall transmit the final report to all members of the legislature, to the governor, and to the state library.

Sec. 73. Section 42, chapter 35, Laws of 1982 1st ex. sess. and RCW 43.136.040 are each amended to read as follows:

In reviewing a tax preference, the legislative ((~~budget~~)) oversight committee shall develop information needed by the legislature to determine if the tax preference should be terminated as scheduled, modified, or reestablished without modification. The legislative ((~~budget~~)) oversight committee shall consider, but not be limited to, the following factors in the review.

(1) The persons or organizations whose state tax liabilities are directly affected by the tax preference.

(2) Legislative objectives that might provide a justification for the tax preference.

(3) Evidence that the existence of the tax preference has contributed to the achievement of any of the objectives identified in subsection (2) of this section.

(4) The extent to which continuation of the tax preference beyond its scheduled termination date might contribute to any of the objectives identified in subsection (2) of this section.

(5) Fiscal impacts of the tax preference, including past impacts and expected future impacts if it is not terminated as scheduled.

(6) The extent to which termination of the tax preference would affect the distribution of liability for payment of state taxes.

Sec. 74. Section 43, chapter 35, Laws of 1982 1st ex. sess. and RCW 43.136.050 are each amended to read as follows:

(1) Following receipt of the final report from the legislative ((~~budget~~)) oversight committee, the ways and means committees of the house of representatives and the senate shall jointly hold a public hearing to consider the final report and any related data. The committees shall also receive testimony from the governor, or the governor's designee, and other interested parties, including the general public.

(2) Following the joint hearing, the committees may separately hold additional meetings or hearings to come to a final determination as to whether a continuation, modification, or termination of a tax preference is in the public interest. If a committee determines that a tax preference should be continued or modified, it shall make the determination as a bill. No more than one tax preference shall be reestablished or modified in any one bill.

Sec. 75. Section 2, chapter 195, Laws of 1971 ex. sess. as last amended by section 15, chapter 270, Laws of 1981 and RCW 44.40.025 are each amended to read as follows:

In addition to the powers and duties authorized in RCW 44.40.020, the committee and the standing committees on transportation of the house and senate shall, in coordination with the legislative ((~~budget committee, the legislative evaluation and accountability program~~)) oversight committee, and the ways and means committees of the senate and house of representatives, ascertain, study, and/or analyze all available facts and matters relating or pertaining to sources of revenue, appropriations, expenditures, and financial condition of the motor vehicle fund and accounts thereof, the highway safety fund, and all other funds or accounts related to transportation programs of the state.

The legislative ((~~budget committee, the legislative evaluation and accountability program~~)) oversight committee, and the ways and means committees of the senate and house of representatives shall coordinate their activities with the legislative transportation committee in carrying out the committees' powers and duties under chapter 43.88 RCW in matters relating to the transportation programs of the state.

Sec. 76. Section 2, chapter 169, Laws of 1975 1st ex. sess. as last amended by section 14, chapter 163, Laws of 1982 and RCW 46.08.066 are each amended to read as follows:

(1) Except as provided in subsection (3) of this section, the department of licensing is authorized to issue confidential motor vehicle license plates to units of local government and to agencies of the federal government for law enforcement purposes only.

(2) Except as provided in subsections (3) and (4) of this section the use of confidential plates on vehicles owned or operated by the state of Washington by any officer or employee thereof, shall be limited to confidential, investigative, or undercover work of state law enforcement agencies, confidential public health work, and confidential public assistance fraud or support investigations.

(3) Any state official elected on a state-wide basis shall be provided on request with one set of confidential plates for use on official business. When necessary for the personal security of any other public officer, or public employee, the chief of the Washington state patrol may recommend that the director issue confidential plates for use on an unmarked publicly owned or controlled vehicle of the appropriate governmental unit for the conduct of official business for the period of time that the personal security of such state official, public officer, or other public employee may require. The office of the state treasurer may use an unmarked state owned or controlled vehicle with confidential plates where required for the safe transportation of either state funds or negotiable securities to or from the office of the state treasurer.

(4) The director of licensing may issue rules and regulations governing applications for, and the use of, such plates by law enforcement and other public agencies. The ((~~legislative auditor~~)) director of the office of legislative oversight shall periodically examine or require filing of a current listing of the total number of such plates issued to any law enforcement or other public agency. Reports on the utilization of such plates shall be submitted to the legislative ((~~budget~~)) oversight committee and to the legislature.

Sec. 77. Section 11, chapter 337, Laws of 1981 and RCW 67.08.910 are each amended to read as follows:

The state boxing commission shall cease to exist on June 30, 1987, unless extended by law indefinitely or for an additional fixed period of time. The legislative ((~~budget~~)) oversight committee shall cause a performance audit to be conducted of the state boxing commission. The final audit report shall be available to the legislature at least six months prior to the scheduled termination date. The audit shall include, but is not limited to, objective findings of fact, conclusions and recommendations as to continuation, modification, or termination of the state boxing commission.

Sec. 78. Section 5, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.050 are each amended to read as follows:

There is created the office of director of the state lottery. The director shall be appointed by the governor with the consent of the senate. The director shall serve at the pleasure of the governor and shall receive such salary as is determined by the governor, but in no case may the director's salary be more than ninety percent of the salary of the governor. The director shall:

(1) Supervise and administer the operation of the lottery in accordance with the provisions of this chapter and with the rules of the commission.

(2) Appoint such deputy and assistant directors as may be required to carry out the functions and duties of his office: PROVIDED, That the provisions of the state civil service law, chapter 41.06 RCW, shall not apply to such deputy and assistant directors.

(3) Appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed by this chapter: PROVIDED, That the provisions of the state civil service law, chapter 41.06 RCW, shall not apply to such employees as are engaged in undercover audit or investigative work or security operations but shall apply to other employees appointed by the director, except as provided for in subsection (2) of this section.

(4) In accordance with the provisions of this chapter and the rules of the commission, license as agents to sell or distribute lottery tickets such persons as in his opinion will best serve the public convenience and promote the sale of tickets or shares. The director may require a bond from every licensed agent, in such amount as provided in the rules of the commission. Every licensed agent shall prominently display his license, or a copy thereof, as provided in the rules of the commission. License fees may be established by the commission, and, if established, shall be deposited in the revolving fund created by RCW 67.70.260.

(5) Confer regularly as necessary or desirable with the commission on the operation and administration of the lottery; make available for inspection by the commission, upon request, all books, records, files, and other information and documents of the lottery; and advise the commission and recommend such matters as he deems necessary and advisable to improve the operation and administration of the lottery.

(6) Subject to the applicable laws relating to public contracts, enter into contracts for the operation of the lottery, or any part thereof, and into contracts for the promotion of the lottery. No contract awarded or entered into by the director may be assigned by the holder thereof except by specific approval of the commission: PROVIDED, That nothing in this chapter authorizes the director to enter into public contracts for the regular and permanent administration of the lottery after the initial development and implementation.

(7) Certify quarterly to the state treasurer, the legislative ((~~budget~~)) oversight committee, and the commission a full and complete statement of lottery revenues, prize disbursements, and other expenses for the preceding quarter.

(8) Publish quarterly reports showing the total lottery revenues, prize disbursements, and other expenses for the preceding quarter, and make an annual report, which shall include a full and complete statement of lottery revenues, prize disbursements, and other expenses, to the governor and the legislature, and including such recommendations for changes in this chapter as the director deems necessary or desirable.

(9) Report immediately to the governor and the legislature any matters which require immediate changes in the laws of this state in order to prevent abuses and evasions of this chapter or rules promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of the lottery.

(10) Carry on a continuous study and investigation of the lottery throughout the state: (a) For the purpose of ascertaining any defects in this chapter or in the rules issued thereunder by reason whereof any abuses in the administration and operation of the lottery or any evasion of this chapter or the rules may arise or be practiced, (b) for the purpose of formulating recommendations for changes in this chapter and the rules promulgated thereunder to prevent such abuses and evasions, (c) to guard against the use of this chapter and the rules issued thereunder as a cloak for the carrying on of professional gambling and crime, and (d) to insure that this chapter and rules shall be in such form and be so administered as to serve the true purposes of this chapter.

(11) Make a continuous study and investigation of: (a) The operation and the administration of similar laws which may be in effect in other states or countries, (b) any literature on the subject which from time to time may be published or available, (c) any federal laws which may affect the operation of the lottery, and (d) the reaction of the citizens of this state to existing and potential features of the lottery with a view to recommending or effecting changes that will tend to serve the purposes of this chapter.

(12) Have all enforcement powers granted in chapter 9.46 RCW.

(13) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

Sec. 79. Section 31, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.310 are each amended to read as follows:

The director of financial management may conduct a management review of the commission's lottery operations to assure that:

(1) The manner and time of payment of prizes to the holder of winning tickets or shares is consistent with this chapter and the rules adopted under this chapter;

(2) The apportionment of total revenues accruing from the sale of lottery tickets or shares and from all other sources is consistent with this chapter;

(3) The manner and type of lottery being conducted, and the expenses incidental thereto, are the most efficient and cost-effective; and

(4) The commission is not unnecessarily incurring operating and administrative costs.

In conducting a management review, the director of financial management may inspect the books, documents, and records of the commission. Upon completion of a management review, all irregularities shall be reported to the attorney general, the legislative ((~~budget~~)) oversight committee, and the state auditor. The director of financial management shall make such recommendations as may be necessary for the most efficient and cost-effective operation of the lottery.

Sec. 80. Section 34, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.900 are each amended to read as follows:

This chapter shall expire July 1, 1987, unless extended by law. The legislative ((~~budget~~)) oversight committee shall evaluate the effectiveness of this chapter. The final report of the evaluation shall be available to the legislature at least six months prior to the scheduled termination date. The report shall include, but is not limited to, objective findings of fact, conclusions, and recommendations as to continuation, modification, or termination of this chapter.

Sec. 81. Section 22, chapter 136, Laws of 1981 and RCW 72.09.180 are each amended to read as follows:

The corrections standards board shall cease to exist six years after July 1, 1981, unless extended by law. The legislative ((~~budget~~)) oversight committee shall review the board and recommend to the legislature by January of 1987 whether or not the board should be extended.

Sec. 82. Section 4, chapter 10, Laws of 1973 2nd ex. sess. and RCW 74.04.630 are each amended to read as follows:

The department shall enter into contractual agreements with the United States department of health, education and welfare, consistent with the provisions of Public Laws 92-603 and 93-66, and to be effective January 1, 1974, for the purpose of enabling the secretary of the department of health, education and welfare to perform administrative functions of state supplementation to the national supplemental security income program and the determination of medicaid eligibility on behalf of the state. The department is authorized to transfer and make payments of state funds to the secretary of the department of health, education and welfare as required by Public Laws 92-603 and 93-66: PROVIDED, HOWEVER, That such agreements shall be submitted for review and comment to the social and health services committees of the senate and house of representatives, and shall be subject to authorization and/or ratification by the legislative ((~~budget~~)) oversight committee, and such agreements shall not bind the state unless and until such authorization and/or ratification is given: PROVIDED FURTHER, HOWEVER, That if the authorization and ratification is not given, the department of social and health services shall administer the state supplemental program as established in RCW 74.04.620.

Sec. 83. Section 3, chapter 138, Laws of 1984 and RCW 82.01.125 are each amended to read as follows:

The ((~~administrator~~)) director of the office of legislative ((~~evaluation and accountability program~~)) oversight committee may request, and the supervisor shall provide, alternative economic and revenue forecasts based on assumptions specified by the ((~~administrator~~)) director.

Sec. 84. Section 5, chapter 138, Laws of 1984 and RCW 82.01.135 are each amended to read as follows:

(1) To promote the free flow of information and to promote legislative input in the preparation of forecasts, immediate access to all information relating to economic and revenue forecasts shall be available to the economic and revenue forecast work group, hereby created. Revenue collection information shall be available to the economic and revenue forecast work group the first business day following the conclusion of each collection period. The economic and revenue forecast work group shall consist of one staff member selected by the executive head or chairperson of each of the following agencies or committees:

(a) Department of revenue;

(b) Office of financial management;

(d) ((~~Legislative evaluation and accountability program committee;~~

~~(e)~~)) Ways and means committee of the senate; and

((~~(f)~~)) (e) Ways and means committee of the house of representatives.

(2) The economic and revenue forecast work group shall provide technical support to the economic and revenue forecast council. Meetings of the economic and revenue forecast work group may be called by any member of the group for the purpose of assisting the economic and revenue forecast council, reviewing the state economic and revenue forecasts, or reviewing monthly revenue collection data or for any other purpose which may assist the economic and revenue forecast council.

NEW SECTION. Sec. 85. The following acts or parts of acts are each repealed:

(1) Section 16, chapter 122, Laws of 1973 1st ex. sess. and RCW 7.68.160; and

(2) Section 20, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 44.44.020.

NEW SECTION. Sec. 86. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 43, Laws of 1951, section 4, chapter 206, Laws of 1955, section 1, chapter 20, Laws of 1963 ex. sess., section 1, chapter 114, Laws of 1967 ex. sess., section 4, chapter 10, Laws of 1969, section 30, chapter 87, Laws of 1980, section 1, chapter 52, Laws of 1983 and RCW 44.28.010;

(2) Section 12, chapter 43, Laws of 1951, section 5, chapter 206, Laws of 1955, section 5, chapter 10, Laws of 1969, section 31, chapter 87, Laws of 1980 and RCW 44.28.020;

(3) Section 13, chapter 43, Laws of 1951, section 6, chapter 206, Laws of 1955 and RCW 44.28.030;

(4) Section 14, chapter 43, Laws of 1951, section 134, chapter 34, Laws of 1975-'76 2nd ex. sess. and RCW 44.28.040;

(5) Section 15, chapter 43, Laws of 1951, section 7, chapter 206, Laws of 1955 and RCW 44.28.050;

(6) Section 2, chapter 43, Laws of 1951, section 13, chapter 293, Laws of 1975 1st ex. sess. and RCW 44.28.060;

(7) Section 4, chapter 43, Laws of 1951, section 10, chapter 206, Laws of 1955, section 14, chapter 293, Laws of 1975 1st ex. sess. and RCW 44.28.080;

(8) Section 6, chapter 43, Laws of 1951, section 16, chapter 293, Laws of 1975 1st ex. sess. and RCW 44.28.100;

(9) Section 11, chapter 43, Laws of 1951, section 9, chapter 206, Laws of 1955, section 17, chapter 293, Laws of 1975 1st ex. sess. and RCW 44.28.140;

(10) Section 7, chapter 43, Laws of 1951, section 18, chapter 293, Laws of 1975 1st ex. sess. and RCW 44.28.150; and

(11) Section 16, chapter 43, Laws of 1951 and RCW 44.28.900.

NEW SECTION. Sec. 87. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 373, Laws of 1977 ex. sess., section 40, chapter 87, Laws of 1980 and RCW 44.48.010;

(2) Section 2, chapter 373, Laws of 1977 ex. sess., section 41, chapter 87, Laws of 1980 and RCW 44.48.020;

(3) Section 3, chapter 373, Laws of 1977 ex. sess., section 42, chapter 87, Laws of 1980 and RCW 44.48.030;

(4) Section 4, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.040;

(5) Section 5, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.050;

(6) Section 6, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.060;

(7) Section 7, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.070;

(8) Section 8, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.080;

(9) Section 9, chapter 373, Laws of 1977 ex. sess, section 158, chapter 151, Laws of 1979 and RCW 44.48.090;

(10) Section 10, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.100;

(11) Section 11, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.110;

(12) Section 12, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.120;

(13) Section 13, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.130;

(14) Section 14, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.140; and

(15) Section 16, chapter 373, Laws of 1977 ex. sess. and RCW 44.48.900.