SB 5065 — Concerning government performance and accountability.

S-1776.1SECONDS-0451.1SENATE SUBSTITUTE SENATE BILL 5065State of Washington65th Legislature2017 Regular SessionBy Senate Ways & Means (originally sponsored by Senators Miloscia and Zeiger)READZeigerRead FIRSTfirst TIMEtime 02/23/17.AN01/11/17. ACT Relating to government performance and accountability;

Referred to Committee on State Government.AN ACT Relating to government performance and accountability;

and(e) Analyze and report agency performance systems, data, and assessment results to the public, appropriate agencies, and the legislature.(2) The office's goal is to develop and implement documented world-class lean performance management systems that can be duplicated in all other states.NEW SECTION.  Sec. 2.  (1) SubjectThere to the availability of amounts appropriated for this specific purpose, there is created in the office of the governor the office of performance management.(2) The executive head of the office of performance management is a director appointed by the governor with the consent of the senate, who serves at the pleasure of the governor.(3) The director may employ personnel necessary for the administration of the office of performance management.NEW SECTION.  Sec. 3.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Agency" means every state agency, department, office, officer, board, commission, bureau, division, institution, or institution of higher education, and all offices of executive branch state government-elected officials, except agricultural commissions under TitlesTitle 15 and 16 RCW.(2) "Agency ethics plan" means a plan to promote ethical practices and to eliminate fraudulent practices in agency operations.(3) "Agency performance management implementation plan" means a detailed plan to implement a lean performance management system that:(a) Provides for gathering, monitoring, and analysis of data to measure performance and eliminate waste and inefficiency in agency operations;(b) Conforms to an internationally recognized quality management system, such as ISO 9001 or ISO 9004, or its equivalent;(c) Includes all activities and requirements necessary to reduce agency costs by one percent annually within two years of adoption and two percent annually within four years of adoption;(d) Allocates resources to improve performance;

and(d) Monitors implementation by all agencies.NEW SECTION.  Sec. 4.  SubjectSECTION.  Sec. 4.  The to the availability of amounts appropriated for this specific purpose, the office of performance management must:(1) Adopt, by January 1, 2018, and implement a state strategic plan and a state performance management implementation plan, and delegate authority, as necessary, to agencies best suited to implement elements of the state performance management implementation plan;(2) Assist agencies in developing agency strategic plans, agency ethics plans, workforce learning and training development and workforce performance management systems, and agency performance management implementation plans, and review and approve or disapprove the foregoing plans based on predetermined criteria;(3) Enter into a partnership with the national institutes of standards and technology, United States department of commerce, and performance excellence northwest and Washington state quality award to:(a) Ensure that a sufficient number of trained examiners are available to conduct excellence assessments of all agencies;(b) Coordinate and schedule excellence assessments of all agencies;(c) Develop criteria, as needed, for excellence assessments for very small agencies with fewer than twenty full-time equivalent employees;(d) Develop specific criteria for a statewide lean performance management system and agency lean performance management systems;

and(8) Adopt rules necessary to administer this chapter.NEW SECTION.  Sec. 5.  (1) SubjectEach to the availability of amounts appropriated for this specific purpose, each agency must:(a) Adopt an agency strategic plan pursuant to section 6 of this act, an agency ethics plan, a workforce learning and training development and workforce performance management system, and an agency performance management implementation plan;(b) Provide quarterly reports to the office of performance management regarding implementation of its agency performance management implementation plan;(c) Provide annual reports to pertinent legislative committees regarding implementation of its agency performance management implementation plan, including the number and type of lean management projects conducted during the reporting period, fiscal savings attributable to the projects, performance goals for the upcoming reporting period, and a summary of all previous performance audits conducted by the state auditor and the joint legislative audit and review committee, and previous excellence assessments;(d) Coordinate with the office of performance management to provide for excellence assessments of its operations every two years, and transmit completed excellence assessments and feedback reports to the office of performance management;

and(b) Fails to achieve the goal in subsection (2) of this section must achieve certification under an internationally recognized quality management system, such as ISO 9001, or its equivalent, within seven years of the first excellence assessment.NEW SECTION.  Sec. 6.  (1) SubjectEach to the availability of amounts appropriated for this specific purpose, each agency must adopt an agency strategic plan that:(a) Defines its mission and sets measurable goals for achieving desirable results for those receiving its services and taxpayers paying for its services.

and(iii) Specifically address the statutory purpose or intent of the program or activity and focus on data that measures whether the agency is achieving or making progress toward the purpose of the activity and toward statewide priorities.(2) SubjectEach to the availability of amounts appropriated for this specific purpose, each agency must also adopt an agency ethics plan and an agency performance management implementation plan pursuant to section 5 of this act.Sec. 7.  RCW 43.17.385 and 2014 c 68 s 6 are each amended to read as follows:(1) SubjectEach to the availability of amounts appropriated for this specific purpose, each state agency ((shall, within available funds, develop and implement a quality management, accountability, and performance system to improve the public services it provides.(2) Each agency shall ensure that managers and staff at all levels, including those who directly deliver services, are engaged in the system and shall provide managers and staff with the training necessary for successful implementation.(3) Each agency shall, within available funds, ensure that its quality management, accountability, and performance system:(a) Uses strategic business planning to establish goals, objectives, and activities consistent with the priorities of government, as provided in statute;(b) Engages stakeholders and customers in establishing service requirements and improving service delivery systems;(c) Includes clear, relevant, and easy-to-understand measures for each activity;(d) Gathers, monitors, and analyzes activity data;(e) Uses the data to evaluate the effectiveness of programs to manage process performance, improve efficiency, and reduce costs;(f) Establishes performance goals and expectations for employees that reflect the organization's objectives;