2054-S

AN ACT Relating to state government; amending RCW 41.06.070, 41.06.080, 41.06.140, 41.06.150, 41.06.150, 41.06.160, 41.06.167, 41.06.169, 41.06.170, 41.06.186, 41.06.196, 41.06.220, 41.06.260, 41.06.270, 41.06.280, 41.06.400, 41.06.410, 41.06.420, 41.06.430, 41.06.450, 41.06.455, 41.06.475, 41.06.490, 43.03.028, 43.17.010, and 43.17.020; amending 1982 c 208 s 9 (uncodified); reenacting and amending RCW 41.06.020, 41.56.030, 28B.50.140, and 41.04.230; adding new sections to chapter 41.06 RCW; adding new sections to chapter 41.56 RCW; adding a new chapter to Title 43 RCW; adding a new chapter to Title 41 RCW; creating new sections; repealing RCW 28B.16.010, 28B.16.020, 28B.16.030, 28B.16.040, 28B.16.041, 28B.16.042, 28B.16.043, 28B.16.060, 28B.16.070, 28B.16.080, 28B.16.090, 28B.16.100, 28B.16.101, 28B.16.105, 28B.16.110, 28B.16.112, 28B.16.113, 28B.16.116, 28B.16.120, 28B.16.130, 28B.16.140, 28B.16.150, 28B.16.160, 28B.16.170, 28B.16.180, 28B.16.190, 28B.16.200, 28B.16.210, 28B.16.220, 28B.16.230, 28B.16.240, 28B.16.255, 28B.16.265, 28B.16.275, 28B.16.300, 28B.16.900, 28B.16.910, 28B.16.920, 28B.16.930, 41.06.010, 41.06.030, 41.06.110, 41.06.120, 41.06.130, 41.06.163, 41.06.165, 41.06.230, 41.06.240, 41.06.310, 41.06.340, 41.06.350, and 41.06.380; providing effective dates; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that the best interests of the citizens of Washington are served by eliminating unnecessary duplication in the organization of state government and recognizes the need of the executive branch for increased flexibility to meet new challenges the state faces in providing effective and cost-efficient services. This can be accomplished by streamlining the management of the state's human resources including decentralizing the provision of personnel services, encouraging the adoption of modern management techniques, and continuing to increase the diversity of its work force, and by granting employees the right to bargain collectively as provided in this act.

NEW SECTION. Sec. 2. The department of personnel, the higher education personnel board, and the personnel board are hereby abolished and except as provided in section 149 of this act their powers, duties, and functions are hereby transferred to the department of human resources.

PART I

CIVIL SERVICE REFORM AND REORGANIZATION

NEW SECTION. Sec. 101. It is the purpose of this chapter to create the department of human resources.

NEW SECTION. Sec. 102. As used in this chapter, unless the context indicates otherwise:

(1) "Department" means the department of human resources.

(2) "Director" means the director of human resources.

NEW SECTION. Sec. 103. There is hereby created a department of state government to be known as the department of human resources. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 104. The executive head and appointing authority of the department shall be the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 105. (1) It is the intent of the legislature that the internal affairs of the department be under the control of the director. Therefore, unless the director's authority is specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may establish subdivisions and create other administrative structures as the director considers appropriate, except as otherwise specified by law. The director may employ the assistants and other personnel that are necessary for the general administration of the department. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW, except as otherwise provided.

(2) The department of human resources shall be organized consistent with the following goals:

(a) To promote efficient public management;

(b) To improve programs administered by the department; and

(c) To take full advantage of the economies, both fiscal and administrative, that may be gained from the consolidation of functions and agencies under this chapter.

(3) The director may delegate any power or duty vested in or transferred to the director by law or executive order to the deputy director or to any other assistant or subordinate, but the director shall be responsible for the official acts of the officers and employees of the department.

NEW SECTION. Sec. 106. (1) The director shall appoint advisory committees or councils as may be required by any federal legislation as a condition to the receipt of federal funds by the department. The director may also appoint state advisory committees or councils on subject matters as are or come within the department's responsibilities.

(2) Members of state advisory committees or councils appointed by the director may be paid their travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 107. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements which are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department which may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements which are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is declared to be inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 108. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, this chapter shall not apply in the department of human resources to the director, the director's personal secretary, the deputy director, all division directors and assistant directors, and one confidential secretary for each of these officers.

Sec. 109. RCW 41.06.020 and 1985 c 461 s 1 and 1985 c 365 3 are each reenacted and amended to read as follows:

Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.

(1) "Agency" means an office, department, board, commission, or other separate unit or division, however designated, of the state government and all personnel thereof; it includes any unit of state government established by law, the executive officer or members of which are either elected or appointed, upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature.

(2) ((~~"Board" means the state personnel board established under the provisions of RCW 41.06.110, except that this definition does not apply to the words "board" or "boards" when used in RCW 41.06.070.~~

~~(3)~~)) "Classified service" means all positions in the state service subject to the provisions of this chapter.

((~~(4)~~)) (3) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment.

((~~(5)~~)) (4) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions.

((~~(6)~~)) (5) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required.

((~~(7)~~)) (6) "Department" means an agency of government that has as its governing officer a person, or combination of persons such as a commission, board, or council, by law empowered to operate the agency responsible either to (a) no other public officer or (b) the governor.

((~~(8)~~)) (7) "Career development" means the progressive development of employee capabilities to facilitate productivity, job satisfaction, and upward mobility through work assignments as well as education and training that are both state-sponsored and are achieved by individual employee efforts, all of which shall be consistent with the needs and obligations of the state and its agencies.

((~~(9)~~)) (8) "Institutions of higher education" means the same as defined in RCW 28B.10.016, but does not include technical colleges.

(9) "Related boards" means the state board for community and technical colleges, the higher education coordinating board, and such other boards, councils, and commissions related to higher education as may be established.

(10) "Training" means activities designed to develop job-related knowledge and skills of employees.

((~~(10)~~)) (11) "Director" means the director of ((~~personnel appointed under the provisions of RCW 41.06.130~~)) human resources.

((~~(11)~~)) (12) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system.

NEW SECTION. Sec. 110. A new section is added to chapter 41.06 RCW to read as follows:

In addition to other 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 the exemptions. The personnel board shall hold a public hearing, after proper notice, on requests submitted pursuant to this section. If the board determines that the position for which the 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 section and RCW 41.06.070(28) shall not exceed two percent of the number of employees in the classified service 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 under this section, together with the reasons for such exemptions.

Sec. 111. RCW 41.06.070 and 1990 c 60 s 101 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 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)~~)) (4) Elective officers of the state;

((~~(6)~~)) (5) The chief executive officer of each agency;

((~~(7)~~)) (6) In the departments of employment security, fisheries, social and health services, the director and his or her confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his or her confidential secretary, and his or her statutory assistant directors;

((~~(8)~~)) (7) 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)~~)) (8) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

((~~(10)~~)) (9) Assistant attorneys general;

((~~(11)~~)) (10) Commissioned and enlisted personnel in the military service of the state;

((~~(12)~~)) (11) Within agencies, inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the ((~~state personnel board or the board having jurisdiction~~)) director of human resources;

((~~(13)~~)) (12) The public printer or to any employees of or positions in the state printing plant;

((~~(14)~~)) (13) Officers and employees of the Washington state fruit commission;

((~~(15)~~)) (14) Officers and employees of the Washington state apple advertising commission;

((~~(16)~~)) (15) Officers and employees of the Washington state dairy products commission;

((~~(17)~~)) (16) Officers and employees of the Washington tree fruit research commission;

((~~(18)~~)) (17) Officers and employees of the Washington state beef commission;

((~~(19)~~)) (18) Officers and employees of any commission formed under the provisions of chapter 191, Laws of 1955, and chapter 15.66 RCW;

((~~(20)~~)) (19) Officers and employees of the state wheat commission formed under the provisions of chapter 87, Laws of 1961 (chapter 15.63 RCW);

((~~(21)~~)) (20) Officers and employees of agricultural commissions formed under the provisions of chapter 256, Laws of 1961 (chapter 15.65 RCW);

((~~(22)~~)) (21) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

((~~(23)~~)) (22) 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~~)) director 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)~~)) (23) 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)~~)) (24) In each agency with fifty or more employees: Deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency heads;

((~~(26)~~)) (25) All employees of the marine employees' commission;

((~~(27)~~)) (26) Up to a total of five senior staff positions of the western library network under chapter 27.26 RCW responsible for formulating policy or for directing program management of a major administrative unit. This subsection shall expire on June 30, 1997;

((~~(28)~~)) (27) In addition to the exemptions specifically provided by this chapter, the ((~~state personnel board~~)) director 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~~)) director 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~~)) director 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~~)) director 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 eighty-seven~~)) two percent of the number of employees in the classified service not including employees of higher education, 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((.));

(28) The following classifications, positions, and employees of institutions of higher education and related boards:

(a) Members of the governing board of each institution of higher education and related boards, all presidents, vice-presidents and their confidential secretaries, administrative and personal assistants; deans, directors, and chairpersons; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; principal assistants to executive heads of major administrative or academic divisions; other managerial or professional employees in an institution of higher education or related board having substantial responsibility for directing or controlling program operations and accountable for allocation of resources and program results, or for the formulation of institutional policy, or for carrying out personnel administration or labor relations functions, legislative relations, public information, development, senior computer systems and network programming, or internal audits and investigations; and any employee of a community college district whose place of work is one that is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington;

(b) Students, part-time, or temporary employees, and part-time professional consultants, as defined by the director, employed by institutions of higher education and related boards;

(c) The director, the director's confidential secretary, assistant directors, and professional education employees of the state board for community and technical colleges;

(d) Printing craft employees in the department of printing at the University of Washington;

(e) The governing board of each institution of higher education, and related boards, may also exempt from this chapter, subject to the employees' right of appeal to the personnel appeals board, classifications involving research activities, counseling of students, extension or continuing education activities, and graphic arts or publications activities requiring prescribed academic preparation or special training, as determined by the director, however no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the director under this subsection (28)(d);

(29) The governor's designee under section 317 of this act for collective bargaining and any employees working for the governor's designee;

(30) The ((~~state personnel board~~)) director shall report to each regular session of the legislature during an odd-numbered year all exemptions granted under subsections ((~~(24), (25), and (28)~~)) (23), (24), and (27) of this section, 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)~~)) (9) through (21) and (28) of this section, shall be determined by the ((~~state personnel board~~)) director.

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.

A person occupying an exempt position who is terminated from the position for gross misconduct or malfeasance does not have the right of reversion to a classified position as provided for in this section.

Sec. 112. RCW 41.06.080 and 1970 ex.s. c 12 s 2 are each amended to read as follows:

Notwithstanding the provisions of this chapter, the department of ((~~personnel~~)) human resources may make its services available on request, on a reimbursable basis, to:

(1) Either the legislative or the judicial branch of the state government;

(2) Any county, city, town, or other municipal subdivision of the state;

(3) ((~~The institutions of higher learning;~~

~~(4)~~)) Any agency, class, or position set forth in RCW 41.06.070.

NEW SECTION. Sec. 113. A new section is added to chapter 41.06 RCW to read as follows:

The director may delegate to any agency the authority to perform administrative and technical personnel activities if the agency requests such authority and the director is satisfied that the agency has the personnel management capabilities to effectively perform the delegated activities. The director shall prescribe standards and guidelines for the performance of delegated activities. If the director determines that an agency is not performing delegated activities within the prescribed standards and guidelines, the director shall withdraw the authority from the agency to perform such activities.

NEW SECTION. Sec. 114. A new section is added to chapter 41.06 RCW to read as follows:

Each institution of higher education and each related board shall designate an officer who shall perform duties as personnel officer. The personnel officer at each institution of higher education or related board shall direct, supervise, and manage administrative and technical personnel activities for the classified service at the institution of higher education or related board consistent with policies established by the institution of higher education or related board and in accordance with the provisions of this chapter and the rules adopted under it. Institutions of higher education may undertake jointly with one or more other institutions of higher education to appoint a person qualified to perform the duties of personnel officer, provide staff and financial support, and may engage consultants to assist in the performance of specific projects.

The state board for community and technical colleges shall have general supervision and control over activities undertaken by the various state community and technical colleges under this section.

Sec. 115. RCW 41.06.140 and 1961 c 1 s 14 are each amended to read as follows:

It shall be the duty of the ((~~board~~)) director to make rules ((~~and regulations~~)) providing for employee participation in the development and administration of personnel policies. To assure this right, permanent personnel policies, rules, classification and pay plans, and amendments thereto, shall be acted on only after the ((~~board~~)) director has given twenty days notice to, and considered proposals from, employee representatives and agencies affected. Complete and current compilations of all rules ((~~and regulations~~)) of the ((~~board in printed, mimeographed or multigraphed form~~)) department of human resources shall be available to the public in the office of the director ((~~of personnel free of charge~~)).

Sec. 116. RCW 41.06.150 and 1990 c 60 s 103 are each amended to read as follows:

The board shall adopt rules, consistent with the purposes and provisions of this chapter, as now or hereafter amended, and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

(1) The reduction, dismissal, suspension, or demotion of an employee;

(2) Certification of names for vacancies, including departmental promotions, with the number of names equal to ((~~four~~)) fourteen more names than there are vacancies to be filled, such names representing applicants rated highest on eligibility lists((~~: PROVIDED, That when~~)). However, if other applicants have scores equal to the lowest score among the names certified, their names shall also be certified;

(3) Examinations for all positions in the competitive and noncompetitive service;

(4) Appointments;

(5) Training and career development;

(6) Probationary periods of six to twelve months and rejections therein, depending on the job requirements of the class, except that entry level state park rangers shall serve a probationary period of twelve months;

(7) Transfers;

(8) Sick leaves and vacations;

(9) Hours of work;

(10) Layoffs when necessary and subsequent reemployment, both ((~~according to~~)) based on seniority and maintenance and implementation of approved affirmative action plans;

(11) Determination of appropriate bargaining units within any agency: PROVIDED, That in making such determination the board shall consider the duties, skills, and working conditions of the employees, the history of collective bargaining by the employees and their bargaining representatives, the extent of organization among the employees, and the desires of the employees;

(12) Certification and decertification of exclusive bargaining representatives: PROVIDED, That after certification of an exclusive bargaining representative and upon the representative's request, the director shall hold an election among employees in a bargaining unit to determine by a majority whether to require as a condition of employment membership in the certified exclusive bargaining representative on or after the thirtieth day following the beginning of employment or the date of such election, whichever is the later, and the failure of an employee to comply with such a condition of employment constitutes cause for dismissal: PROVIDED FURTHER, That no more often than once in each twelve-month period after expiration of twelve months following the date of the original election in a bargaining unit and upon petition of thirty percent of the members of a bargaining unit the director shall hold an election to determine whether a majority wish to rescind such condition of employment: PROVIDED FURTHER, That for purposes of this clause, membership in the certified exclusive bargaining representative is satisfied by the payment of monthly or other periodic dues and does not require payment of initiation, reinstatement, or any other fees or fines and includes full and complete membership rights: AND PROVIDED FURTHER, That in order to safeguard the right of nonassociation of public employees, based on bona fide religious tenets or teachings of a church or religious body of which such public employee is a member, such public employee shall pay to the union, for purposes within the program of the union as designated by such employee that would be in harmony with his or her individual conscience, an amount of money equivalent to regular union dues minus any included monthly premiums for union-sponsored insurance programs, and such employee shall not be a member of the union but is entitled to all the representation rights of a union member;

(13) Agreements between agencies and certified exclusive bargaining representatives providing for grievance procedures and collective negotiations on all personnel matters over which the appointing authority of the appropriate bargaining unit of such agency may lawfully exercise discretion;

(14) Written agreements may contain provisions for payroll deductions of employee organization dues upon authorization by the employee member and for the cancellation of such payroll deduction by the filing of a proper prior notice by the employee with the appointing authority and the employee organization: PROVIDED, That nothing contained herein permits or grants to any employee the right to strike or refuse to perform his or her official duties;

(15) Adoption and revision of a comprehensive classification plan for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position;

(16) Allocation and reallocation of positions within the classification plan;

(17) Adoption and revision of a state salary schedule to reflect the prevailing rates in Washington state private industries and other governmental units but the rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 41.06.155, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW;

(18) Increment increases within the series of steps for each pay grade based on length of service for all employees whose standards of performance are such as to permit them to retain job status in the classified service;

(19) Providing for veteran's preference as required by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and their widows by giving such eligible veterans and their widows additional credit in computing their seniority by adding to their unbroken state service, as defined by the board, the veteran's service in the military not to exceed five years. For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given: PROVIDED, HOWEVER, That the widow of a veteran is entitled to the benefits of this section regardless of the veteran's length of active military service: PROVIDED FURTHER, That for the purposes of this section "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month;

(20) Permitting agency heads to delegate the authority to appoint, reduce, dismiss, suspend, or demote employees within their agencies if such agency heads do not have specific statutory authority to so delegate: PROVIDED, That the board may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

(21) Assuring persons who are or have been employed in classified positions under chapter 28B.16 RCW will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter;

(22) Affirmative action in appointment, promotion, transfer, recruitment, training, and career development; development and implementation of affirmative action goals and timetables; and monitoring of progress against those goals and timetables.

The board shall consult with the human rights commission in the development of rules pertaining to affirmative action. The department of personnel shall transmit a report annually to the human rights commission which states the progress each state agency has made in meeting affirmative action goals and timetables.

Sec. 117. RCW 41.06.150 and 1990 c 60 s 103 are each amended to read as follows:

The ((~~board~~)) director shall adopt rules, consistent with the purposes and provisions of this chapter((~~, as now or hereafter amended,~~)) and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

(1) The reduction, dismissal, suspension, or demotion of an employee;

(3) Examinations for all positions in the competitive and noncompetitive service;

(4) Appointments;

(5) Training and career development;

(7) Transfers;

(8) Sick leaves and vacations;

(9) Hours of work;

(10) Layoffs when necessary and subsequent reemployment, both ((~~according to~~)) based on seniority and maintenance and implementation of approved affirmative action plans;

(11) ((Determination of appropriate bargaining units within any agency: PROVIDED, That in making such determination the board shall consider the duties, skills, and working conditions of the employees, the history of collective bargaining by the employees and their bargaining representatives, the extent of organization among the employees, and the desires of the employees;

~~(15)~~)) Adoption and revision of a comprehensive classification plan for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position;

((~~(16)~~)) (12) Allocation and reallocation of positions within the classification plan;

((~~(17)~~)) (13) Adoption and revision of a state salary schedule to reflect the prevailing rates in Washington state private industries and other governmental units but the rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 41.06.155, and in the institutions of higher education and related boards shall be competitive in the state or locality in which the institution of higher education or related boards are located, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW and after consultation with the chief financial officer of each institution of higher education or related board, as applicable;

((~~(18)~~)) (14) Increment increases within the series of steps for each pay grade based on length of service for all employees whose standards of performance are such as to permit them to retain job status in the classified service;

((~~(19)~~)) (15) Providing for veteran's preference as required by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and ((~~their widows~~)) deceased veterans' surviving spouses by giving such eligible veterans and ((~~their widows~~)) deceased veterans' surviving spouses additional credit in computing their seniority by adding to their unbroken state service, as defined by the ((~~board~~)) director, the veteran's service in the military not to exceed five years. For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given: PROVIDED, HOWEVER, That the ((~~widow of a veteran~~)) deceased veteran's surviving spouse is entitled to the benefits of this section regardless of the veteran's length of active military service: PROVIDED FURTHER, That for the purposes of this section "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month;

((~~(20)~~)) (16) Permitting agency heads to delegate the authority to appoint, reduce, dismiss, suspend, or demote employees within their agencies if such agency heads do not have specific statutory authority to so delegate: PROVIDED, That the ((~~board~~)) director may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

((~~(21)~~)) (17) Assuring that persons who are or have been employed in classified positions under this chapter ((~~28B.16 RCW~~)) in an agency or institution of higher education or related boards will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter at any other agency or institution of higher education or related boards;

((~~(22)~~)) (18) Affirmative action in appointment, promotion, transfer, layoff and subsequent reemployment, recruitment, training, and career development; development and implementation of affirmative action goals and timetables; and monitoring of progress against those goals and timetables.

The ((~~board~~)) director shall consult with the human rights commission in the development of rules pertaining to affirmative action. The ((~~department of personnel~~)) director shall transmit a report annually to the human rights commission which states the progress each state agency has made in meeting affirmative action goals and timetables.

NEW SECTION. Sec. 118. A new section is added to chapter 41.06 RCW to read as follows:

(1) Rules adopted by the director shall provide for local administration and management by the institutions of higher education and related boards, subject to periodic audit and review by the director, of the following:

(a) Appointment, promotion, and transfer of employees;

(b) Dismissal, suspension, or demotion of an employee;

(d) Probationary periods of six to twelve months and rejections therein;

(e) Sick leaves and vacations;

(f) Hours of work;

(g) Layoffs when necessary and subsequent reemployment;

(h) Allocation and reallocation of positions within the classification plans;

(i) Training programs; and

(j) Maintenance of personnel records.

(2) The director may authorize local administration and management by agencies other than institutions of higher education and related boards.

Sec. 119. RCW 41.06.160 and 1985 c 94 s 2 are each amended to read as follows:

(1) In preparing classification and salary schedules as set forth in RCW 41.06.150 ((~~as now or hereafter amended~~)) the department of ((~~personnel~~)) human resources shall give full consideration to prevailing rates in other public employment and in private employment in this state. For this purpose the department shall undertake ((~~comprehensive~~)) salary and fringe benefit surveys ((~~to be planned and conducted on a joint basis with the higher education personnel board, with such surveys~~)) to be conducted in the year prior to the convening of every ((~~other~~)) one hundred five day regular session of the state legislature or as requested by the governor or the governor's designee for the purpose of collective bargaining. ((In the year prior to the convening of each one hundred five day regular session during which a comprehensive salary and fringe benefit survey is not conducted, the department shall plan and conduct on a joint basis with the higher education personnel board a trend salary and fringe benefit survey. This survey shall measure average salary and fringe benefit movement for broad occupational groups which has occurred since the last comprehensive salary and fringe benefit survey was conducted. The results of each comprehensive and trend salary and fringe benefit survey shall be completed and forwarded by September 30 with a recommended state salary schedule 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 standing committees for appropriations of the senate and house of representatives.

~~In the case of comprehensive salary and fringe benefit surveys, the department shall furnish the following supplementary data in support of its recommended salary schedule:~~

(1) A total dollar figure which reflects the recommended increase or decrease in state salaries as a direct result of the specific salary and fringe benefit survey that has been conducted and which is categorized to indicate what portion of the increase or decrease is represented by salary survey data and what portion is represented by fringe benefit survey data;

(2) An additional total dollar figure which reflects the impact of recommended increases or decreases to state salaries based on other factors rather than directly on prevailing rate data obtained through the survey process and which is categorized to indicate the sources of the requests for deviation from prevailing rates and the reasons for the changes;

~~(3) A list of class codes and titles indicating recommended monthly salary ranges for all state classes under the control of the department of personnel with:~~

(a) Those salary ranges which do not substantially conform to the prevailing rates developed from the salary and fringe benefit survey distinctly marked and an explanation of the reason for the deviation included; and

(b) Those department of personnel classes which are substantially the same as classes being used by the higher education personnel board clearly marked to show the commonality of the classes between the two jurisdictions;

(4) A supplemental salary schedule which indicates the additional salary to be paid state employees for hazardous duties or other considerations requiring extra compensation under specific circumstances. Additional compensation for these circumstances shall not be included in the basic salary schedule but shall be maintained as a separate pay schedule for purposes of full disclosure and visibility; and

(5) A supplemental salary schedule which indicates those cases where the board determines that prevailing rates do not provide similar salaries for positions that require or impose similar responsibilities, judgment, knowledge, skills, and working conditions. This supplementary salary schedule shall contain proposed salary adjustments necessary to eliminate any such dissimilarities in compensation. Additional compensation needed to eliminate such salary dissimilarities shall not be included in the basic salary schedule but shall be maintained as a separate salary schedule for purposes of full disclosure and visibility.

It is the intention of the legislature that requests for funds to support recommendations for salary deviations from the prevailing rate survey data shall be kept to a minimum, and that the requests be fully documented when forwarded by the department of personnel. Further, it is the intention of the legislature that the department of personnel and the higher education personnel board jointly determine job classes which are substantially common to both jurisdictions and that basic salaries for these job classes shall be equal based on salary and fringe benefit survey findings.))

(2) Salary and fringe benefit survey information collected from private employers which identifies a specific employer with the salary and fringe benefit rates which that employer pays to its employees shall not be subject to public disclosure under chapter 42.17 RCW.

((The first comprehensive salary and fringe benefit survey required by this section shall be completed and forwarded to the governor and the director of financial management by September 30, 1986. The first trend salary and fringe benefit survey required by this section shall be completed and forwarded to the governor and the director of financial management by September 30, 1988.))

Sec. 120. RCW 41.06.167 and 1991 c 196 s 1 are each amended to read as follows:

The department of ((~~personnel~~)) human resources shall undertake comprehensive compensation surveys for officers and entry-level officer candidates of the Washington state patrol, with such surveys to be conducted in the year prior to the convening of every other one hundred five day regular session of the state legislature. In the year prior to the convening of each one hundred five day regular session during which a comprehensive compensation survey is not conducted, the department of human resources shall conduct a trend compensation survey. This survey shall measure average compensation movement which has occurred since the last comprehensive compensation survey was conducted. The results of each comprehensive and trend survey shall be completed and forwarded by September 30th, after review and preparation of recommendations 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~~)) human resources to the legislative transportation 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~~)) human resources for the Washington state patrol shall be undertaken in a manner consistent with statistically accurate sampling techniques, including comparisons of medians, base ranges, and weighted averages of salaries. The surveys shall compare competitive labor markets of law enforcement officers. This service performed by the department of ((~~personnel~~)) human resources shall be on a reimbursable basis in accordance with the provisions of RCW 41.06.080.

A comprehensive compensation survey plan and the recommendations of the chief of the Washington state patrol shall be submitted jointly by the department of ((~~personnel~~)) human resources and the Washington state patrol to the director of financial management, the legislative transportation committee, the committee on ways and means of the senate, and the committee on appropriations of the house of representatives six months before the beginning of each periodic survey.

Sec. 121. RCW 41.06.169 and 1985 c 461 s 3 are each amended to read as follows:

After consultation with state agency heads, heads of institutions of higher education and related boards, employee organizations, and other interested parties, the ((~~state personnel~~)) director shall develop standardized employee performance evaluation procedures and forms which shall be used by state agencies and institutions of higher education and related boards for the appraisal of employee job performance at least annually. These procedures shall include means whereby individual agencies and institutions of higher education and related boards may supplement the standardized evaluation process with special performance factors peculiar to specific organizational needs. Performance evaluation procedures shall place primary emphasis on recording how well the employee has contributed to efficiency, effectiveness, and economy in fulfilling state agency and job objectives.

Sec. 122. RCW 41.06.170 and 1981 c 311 s 19 are each amended to read as follows:

(1) The ((~~board~~)) director, in the ((~~promulgation~~)) adoption of rules ((~~and regulations~~)) governing suspensions for cause, shall not authorize an appointing authority to suspend an employee for more than fifteen calendar days as a single penalty or more than thirty calendar days in any one calendar year as an accumulation of several penalties. The ((~~board~~)) director shall require that the appointing authority give written notice to the employee not later than one day after the suspension takes effect, stating the reasons for and the duration thereof. ((~~The authority shall file a copy of the notice with the director of personnel.~~))

(2) Any employee who is reduced, dismissed, suspended, or demoted, after completing his or her probationary period of service as provided by the rules ((~~and regulations~~)) of the ((~~board~~)) director, whose position has been exempted after the effective date of this section, or any employee who is adversely affected by a violation of the state civil service law, chapter 41.06 RCW((~~, as now or hereafter amended~~)), or rules ((~~promulgated pursuant thereto~~)) adopted under it, shall have the right to appeal to the personnel appeals board created by RCW 41.64.010 not later than thirty days after the effective date of such action. The employee shall be furnished with specified charges in writing when a reduction, dismissal, suspension, or demotion action is taken. Such appeal shall be in writing.

(3) An employee incumbent in a position at the time of its allocation or reallocation, or the agency utilizing the position, may appeal the allocation or reallocation to the personnel appeals board created by RCW 41.64.010. Notice of such appeal must be filed in writing within thirty days of the action from which appeal is taken.

Sec. 123. RCW 41.06.186 and 1985 c 461 s 5 are each amended to read as follows:

The ((~~personnel board~~)) director shall adopt rules designed to terminate the state employment of any employee whose performance is so inadequate as to warrant termination.

Sec. 124. RCW 41.06.196 and 1985 c 461 s 6 are each amended to read as follows:

The ((~~personnel board~~)) director shall adopt rules designed to remove from supervisory positions those supervisors who in violation of the rules adopted under RCW 41.06.186 have tolerated the continued employment of employees under their supervision whose performance has warranted termination from state employment.

Sec. 125. RCW 41.06.220 and 1961 c 1 s 22 are each amended to read as follows:

(1) An employee who is terminated from state service may request the ((~~board~~)) director to place his or her name on an appropriate reemployment list and the ((~~board~~)) director shall grant this request where the circumstances are found to warrant reemployment.

(2) Any employee, when fully reinstated after appeal, shall be guaranteed all employee rights and benefits, including back pay, sick leave, vacation accrual, retirement and OASDI credits.

Sec. 126. RCW 41.06.260 and 1961 c 1 s 26 are each amended to read as follows:

If any part of this chapter ((~~shall be~~)) is found to be in conflict with federal requirements which are a condition precedent to the allocation of federal funds to the state, such conflicting part of this chapter is hereby declared to be inoperative solely to the extent of such conflict and with respect to the agencies directly affected, and such findings or determination shall not affect the operation of the remainder of this chapter in its application to the agencies concerned. The ((~~board~~)) director shall make such rules ((~~and regulations~~)) as may be necessary to meet federal requirements which are a condition precedent to the receipt of federal funds by the state.

Sec. 127. RCW 41.06.270 and 1979 c 151 s 61 are each amended to read as follows:

A disbursing officer shall not pay any employee holding a position covered by this chapter unless the employment is in accordance with this chapter or the rules, regulations and orders issued hereunder. The ((~~board~~)) director and the director of financial management shall jointly establish procedures for the certification of payrolls.

Sec. 128. RCW 41.06.280 and 1987 c 248 s 4 are each amended to read as follows:

(1) There is hereby created a fund within the state treasury, designated as the "department of ((~~Personnel~~)) human resources service fund," to be used by the ((~~board~~)) director as a revolving fund for the payment of salaries, wages, and operations required for the administration of the provisions of this chapter, applicable provisions of chapter 41.04 RCW, and chapter 41.60 RCW. An amount not to exceed one percent of the approved allotments of salaries and wages for all positions in the classified service in each of the agencies subject to this chapter, ((~~except~~)) and an amount not to exceed one-half of one percent of the approved allotments of salaries and wages in the institutions of higher ((~~learning~~)) education, shall be charged to the operations appropriations of each agency, institution of higher education, and the state board for community and technical colleges and credited to the department of ((~~personnel~~)) human resources service fund as the allotments are approved pursuant to chapter 43.88 RCW. Subject to the above limitations, the amount shall be charged against the allotments pro rata, at a rate to be fixed by the director from time to time which, together with income derived from services rendered under RCW 41.06.080, will provide the department with funds to meet its anticipated expenditures during the allotment period.

The director of ((~~personnel~~)) human resources shall fix the terms and charges for services rendered by the department of ((~~personnel~~)) human resources pursuant to RCW 41.06.080, which amounts shall be credited to the department of ((~~personnel~~)) human resources service fund and charged against the proper fund or appropriation of the recipient of such services on a quarterly basis. Payment for services so rendered under RCW 41.06.080 shall be made on a quarterly basis to the state treasurer and deposited by him or her in the department of ((~~personnel~~)) human resources service fund.

(2) If employees cease to be classified under this chapter pursuant to an agreement authorized by section 203 of this act, each institution of higher education and the state board for community and technical colleges shall continue, for six months after the effective date of the agreement, to make contributions to the department of human resources service fund based on employee salaries and wages that includes the employees under the agreement. At the expiration of the six-month period, the director of financial management shall make across-the-board reductions in allotments of the department of human resources service fund for the remainder of the biennium so that the charge to the institutions of higher education and state board based on the salaries and wages of the remaining employees classified under this chapter does not increase during the biennium, unless an increase is authorized by the legislature. The director of financial management shall report the amount and impact of any across-the-board reductions made under this section to the appropriations committee of the house of representatives and the ways and means committee of the senate, or appropriate successor committees, within thirty days of making the reductions.

(3) Moneys from the department of ((~~personnel~~)) human resources service fund shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the ((~~board~~)) director.

(4) The director is authorized to receive federal funds available on the effective date of this section or thereafter made available for the assistance and improvement of public personnel administration, which may be expended in addition to the department of human resources service fund established by this section.

NEW SECTION. Sec. 129. A new section is added to chapter 41.06 RCW to read as follows:

(1) An agency may purchase services customarily and historically provided by employees in classified service under this chapter by contracting with individuals or business entities, without the necessity of showing that classified employees could not provide these services, if the purchase would be fiscally prudent and result in reduced expenditures of public funds. However, decisions to contract for services may be made only after the affected agency has conducted a feasibility study determining the potential costs and benefits that would result from contracting for the services and the decision to contract for the services has been reviewed and approved by the director of financial management. A contract to purchase services shall provide that the contractor will pay to its employees performing the contract work wages that are similar to those generally paid for such work in the locality in which the work is to be performed and will provide health benefits that are similar to, but in any case no less than, the benefits provided for basic health care services under chapter 70.47 RCW.

(2) No provision contrary to or in conflict with this section in any existing collective bargaining agreement may be renewed or extended by any means beyond the expiration date next following the effective date of this section.

(3) Nothing in this section may be construed to modify, reduce, or otherwise affect the purchase of services that were authorized to be purchased by contract under this chapter on the effective date of this section.

Sec. 130. RCW 41.06.400 and 1980 c 118 s 4 are each amended to read as follows:

(1) In addition to other powers and duties specified in this chapter, the ((~~board~~)) director shall, by rule, prescribe the purpose and minimum standards for training and career development programs and, in so doing, regularly consult with and consider the needs of individual agencies and employees.

(2) In addition to other powers and duties specified in this chapter, the director shall:

(a) Provide for the evaluation of training and career development programs and plans of agencies based on minimum standards established by the ((~~board~~)) director. The director shall report the results of such evaluations to the agency which is the subject of the evaluation;

(b) Provide training and career development programs which may be conducted more efficiently and economically on an interagency basis;

(d) Monitor and review the impact of training and career development programs to ensure that the responsibilities of the state to provide equal employment opportunities are diligently carried out. The director shall report to the ((~~board~~)) governor the impact of training and career development programs on the fulfillment of such responsibilities.

(3) At an agency's request, the director may provide training and career development programs for an agency's internal use which may be conducted more efficiently and economically by the department of ((~~personnel~~)) human resources.

(4) The director may provide career development services that: (a) Assist in the establishment of mentor programs for state employees; (b) provide a clearinghouse for information on successful public and private sector career development programs; (c) offer instruction and resource materials on test taking, writing resumes, interviewing, and other career skills; and (d) provide career counseling.

Sec. 131. RCW 41.06.410 and 1980 c 118 s 5 are each amended to read as follows:

Each agency subject to the provisions of this chapter shall:

(1) Prepare an employee training and career development plan which shall at least meet minimum standards established by the ((~~board~~)) director. A copy of such plan shall be submitted to the director for purposes of administering the provisions of RCW 41.06.400(2);

(2) Provide for training and career development for its employees in accordance with the agency plan;

(3) Report on its training and career development program operations and costs to the director in accordance with reporting procedures adopted by the ((~~board~~)) director;

(4) Budget for training and career development in accordance with procedures of the office of financial management.

Sec. 132. RCW 41.06.420 and 1980 c 118 s 6 are each amended to read as follows:

(1) The ((~~board~~)) director, by rule, shall prescribe the conditions under which an employee appointed to a supervisory or management position after June 12, 1980, shall be required to successfully complete an entry-level management training course as approved by the director. The training course shall focus on the critical knowledge, skills, and abilities for successful management performance and include instruction on managing and valuing diversity in the workplace. Such training shall not be required of any employee who has completed a management training course prior to the employee's appointment which is, in the judgment of the director, at least equivalent to the entry-level course required by this section.

(2) The ((~~board~~)) director, by rule, shall establish procedures for the suspension of the entry-level training requirement in cases where the ability of an agency to perform its responsibilities is adversely affected, or for the waiver of this requirement in cases where a person has demonstrated experience as a substitute for training.

(3) Agencies subject to the provisions of this chapter, in accordance with rules prescribed by the ((~~board~~)) director, shall designate individual positions, or groups of positions, as being "supervisory" or "management" positions. Such designations shall be subject to review by the director as part of the director's evaluation of training and career development programs prescribed by RCW 41.06.400(2).

Sec. 133. RCW 41.06.430 and 1990 c 60 s 102 are each amended to read as follows:

(1) The ((~~board~~)) director, by rule, shall develop a career executive program which recognizes the profession of management and recognizes excellence in managerial skills in order to (a) identify, attract, and retain highly qualified executive candidates, (b) provide outstanding employees a broad opportunity for career development, and (c) provide for the mobility of such employees among agencies, it being to the advantage of the state to make the most beneficial use of individual managerial skills.

(2) To accomplish the purposes of subsection (1) of this section, the ((~~board~~)) director, notwithstanding any other provision of this chapter, may provide policies and standards for recruitment, appointment, examination, training, probation, employment register control, certification, classification, salary administration, transfer, promotion, reemployment, conditions of employment, and separation separate from procedures established for other employment.

(3) The director, in consultation with affected agencies, shall ((~~recommend to the board~~)) determine the classified positions which may be filled by participants in the career executive program. Upon the request of an agency, management positions that are exempt from the state civil service law pursuant to RCW 41.06.070 may be included in all or any part of the career executive program: PROVIDED, That an agency may at any time, after providing written notice to the ((~~board~~)) director, withdraw an exempt position from the career executive program. No employee may be placed in the career executive program without the employee's consent.

(4) The number of employees participating in the career executive program shall not exceed two percent of the employees subject to the provisions of this chapter.

(5) The director shall monitor and review the impact of the career executive program to ensure that the responsibilities of the state to provide equal employment opportunities are diligently carried out. The director shall report to the ((~~board~~)) governor the impact of the career executive program on the fulfillment of such responsibilities.

(6) Any classified state employee, upon entering a position in the career executive program, shall be entitled subsequently to revert to any class or position previously held with permanent status, or, if such position is not available, revert to a position similar in nature and salary to the position previously held.

NEW SECTION. Sec. 134. A new section is added to chapter 41.06 RCW to read as follows:

(1) The Washington management service is created. The purpose of the management service is to strive for excellence in the management of the state's resources, attract and retain qualified managers, and establish a management identity in state government through separate personnel rules for management employees that are unique to the responsibilities of management employees.

(2) Notwithstanding any other provisions of this chapter, the director, after consultation with state agencies and employee organizations, shall adopt personnel rules for the classified members of the management service. These rules shall govern recruitment, appointment, classification and allocation of positions, examination, training and career development, hours of work, probation, certification, compensation, transfer, affirmative action, promotion, layoff, reemployment, performance appraisals, discipline, and other personnel practices for management employees. These rules shall be separate from rules established for other employees.

(3) In establishing rules for the management service, the director shall adhere to the following goals:

(a) To develop a simplified classification system that facilitates movement of managers between agencies and promotes upward mobility;

(b) To create a compensation system consistent with the policy set forth in RCW 41.06.150(13). The system shall provide agency flexibility in setting and changing salaries;

(c) To establish a performance appraisal system that emphasizes individual accountability for program results and efficient management of resources; effective planning, organization, and communication skills; valuing and managing workplace diversity; development of leadership and interpersonal abilities; and employee development;

(d) To strengthen management training and career development programs that build critical management knowledge, skills, and abilities; focus on managing and valuing workplace diversity; and enhance mobility and career advancement opportunities;

(e) To permit flexible recruitment and hiring procedures that enable agencies to compete effectively with other employers, both public and private, for managers with appropriate skills and training; allow consideration of all qualified candidates for positions in the management service; and achieve affirmative action goals and diversity in the workplace; and

(f) To provide that members of the classified management service may only be reduced, dismissed, suspended, or demoted for cause.

(4) For the purposes of this section, "managers" or "management employees" means employees who:

(a) Formulate policy or direct the work of an agency or subdivision thereof; or

(b) Are responsible to administer and carry out policies and programs of an agency or subdivision thereof; or

(c) Manage, administer, and control a local branch office of an agency or subdivision thereof, including the physical, financial, or personnel resources thereof; or

(d) Have substantial responsibility in personnel administration, legislative relations, public information, or the preparation and administration of budgets; or

(e) Functionally or organizationally are above the first level of supervision.

NEW SECTION. Sec. 135. A new section is added to chapter 41.06 RCW to read as follows:

(1) The legislature recognizes that:

(a) The labor market and the state government work force are becoming increasingly diverse in terms of gender, race, ethnicity, age, and the presence of disabilities.

(b) The state's human resource and management practices must be responsive to these fundamental changes in work force composition.

It is therefore the policy of the state to create an organizational culture in state government that respects and values individual differences and encourages the productive potential of every employee.

(2) To implement this policy, the department shall:

(a) In consultation with agencies, review civil service rules and related agency policies to ensure that they support the state's policy of valuing and managing diversity in the workplace;

(b) In consultation with agencies, institutions of higher education, and related boards, develop model policies, procedures, and technical information to be made available to such entities for the support of workplace diversity programs, including, but not limited to:

(i) Voluntary mentorship programs;

(ii) Alternative testing practices for persons of disability where deemed appropriate;

(iii) Career counseling;

(iv) Training opportunities, including management and employee awareness and skills training, English as a second language, and individual tutoring;

(v) Recruitment strategies;

(vi) Management performance appraisal techniques that focus on valuing and managing diversity in the workplace; and

(vii) Alternative work arrangements.

(3) The department shall coordinate implementation of this section with the office of financial management and institutions of higher education and related boards to reduce duplication of effort.

(4) This section shall not apply to institutions of higher education and related boards until July 1, 1994.

Sec. 136. RCW 41.06.450 and 1982 c 208 s 10 are each amended to read as follows:

(1) ((~~By January 1, 1983,~~)) The ((~~personnel board~~)) director shall adopt rules applicable to each agency and institution of higher education and related boards to ensure that information relating to employee misconduct or alleged misconduct is destroyed or maintained as follows:

(a) All such information determined to be false and all such information in situations where the employee has been fully exonerated of wrongdoing, shall be promptly destroyed;

(b) All such information having no reasonable bearing on the employee's job performance or on the efficient and effective management of the agency, shall be promptly destroyed;

(c) All other information shall be retained only so long as it has a reasonable bearing on the employee's job performance or on the efficient and effective management of the agency.

(2) Notwithstanding subsection (1) of this section, an agency or institution of higher education or related board may retain information relating to employee misconduct or alleged misconduct if:

(a) The employee requests that the information be retained; or

(b) The information is related to pending legal action or legal action may be reasonably expected to result.

(3) In adopting rules under this section, the ((~~personnel board~~)) director shall consult with the public disclosure commission to ensure that the public policy of the state, as expressed in chapter 42.17 RCW, is adequately protected.

Sec. 137. RCW 41.06.455 and 1982 c 208 s 11 are each amended to read as follows:

RCW 41.06.450 does not prohibit an agency, institution of higher education, or related board from destroying identifying information in records relating to employee misconduct or alleged misconduct if the agency, institution of higher education, or related board deems the action is consistent with the policy expressed in RCW 41.06.450 and in chapter 42.17 RCW.

Sec. 138. 1982 c 208 s 9 (uncodified) is amended to read as follows:

The legislature finds that, under some circumstances, maintaining information relating to state employee misconduct or alleged misconduct is unfair to employees and serves no useful function to the state. The purpose of RCW 41.06.450 is to direct the ((~~personnel board~~)) director of human resources to adopt rules governing maintenance of employee records so that the records are maintained in a manner which is fair to employees, which ensures proper management of state governmental affairs, and which adequately protects the public interest.

Sec. 139. RCW 41.06.475 and 1986 c 269 s 2 are each amended to read as follows:

The ((~~state personnel board~~)) director shall adopt rules, in cooperation with the secretary of social and health services, for the background investigation of persons being considered for state employment in positions directly responsible for the supervision, care, or treatment of children or developmentally disabled persons.

Sec. 140. RCW 41.06.490 and 1990 c 204 s 3 are each amended to read as follows:

(1) In addition to the rules adopted under RCW 41.06.150, the ((~~board~~)) director shall adopt rules establishing a state employee return-to-work program. The program shall, at a minimum:

(a) Direct each agency to adopt a return-to-work policy. The program shall allow each agency program to take into consideration the special nature of employment in the agency;

(b) Provide for eligibility in the return-to-work program, for a minimum of two years from the date the temporary disability commenced, for any permanent employee who is receiving compensation under RCW 51.32.090 and who is, by reason of his or her temporary disability, unable to return to his or her previous work, but who is physically capable of carrying out work of a lighter or modified nature;

(c) Allow opportunity for return-to-work state-wide when appropriate job classifications are not available in the agency that is the appointing authority at the time of injury;

(d) Require each agency to name an agency representative responsible for coordinating the return-to-work program of the agency;

(e) Provide that applicants receiving appointments for classified service receive an explanation of the return-to-work policy;

(f) Require training of supervisors on implementation of the return-to-work policy, including but not limited to assessment of the appropriateness of the return-to-work job for the employee; and

(g) Coordinate participation of applicable employee assistance programs, as appropriate.

(2) The agency full-time equivalents necessary to implement the return-to-work program established under this section shall be used only for the purposes of the return-to-work program and the net increase in full-time equivalents shall be temporary.

NEW SECTION. Sec. 141. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of personnel, state personnel board, and higher education personnel board pertaining to the powers, duties, and functions transferred in section 2 of this act shall be delivered to the custody of the department of human resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in connection with the powers, duties, and functions transferred in section 2 of this act shall be made available to the department of human resources. All funds, credits, or other assets held in connection with the powers, duties, and functions transferred in section 2 of this act shall be assigned to the department of human resources.

Any appropriations made in connection with the powers, duties, and functions transferred in section 2 of this act shall, on the effective date of this section, be transferred and credited to the department of human resources.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, or as to the powers, duties, and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 142. All employees employed in connection with the powers, duties, and functions transferred in section 2 of this act are transferred to the jurisdiction of the department of human resources. All employees classified under chapter 41.06 or 28B.16 RCW, the state civil service and higher education personnel law, are assigned to the department of human resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 143. All rules adopted by the state personnel board pursuant to chapter 41.06 RCW and all rules adopted by the higher education personnel board under chapter 28B.16 RCW that relate to functions transferred to the department of human resources in section 2 of this act shall continue in effect until acted upon by the director. All pending business before any agency of state government pertaining to the powers, duties, and functions transferred in section 2 of this act shall be continued and acted upon by the department of human resources. All existing contracts and obligations shall remain in full force and shall be performed by the department of human resources.

NEW SECTION. Sec. 144. The transfer of the powers, duties, functions, and personnel shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 145. If apportionments of budgeted funds are required because of the transfers directed by sections 141 through 144 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.

Sec. 146. RCW 43.03.028 and 1991 c 3 s 294 are each amended to read as follows:

(1) There is hereby created a state committee on agency officials' salaries to consist of seven members, or their designees, as follows: The president of the University of Puget Sound; the chairperson of the council of presidents of the state's four-year institutions of higher education; the chairperson of the State Personnel Board; the president of the Association of Washington Business; the president of the Pacific Northwest Personnel Managers' Association; the president of the Washington State Bar Association; and the president of the Washington State Labor Council. If any of the titles or positions mentioned in this subsection are changed or abolished, any person occupying an equivalent or like position shall be qualified for appointment by the governor to membership upon the committee.

(2) The committee shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:

The arts commission; the human rights commission; the board of accountancy; the board of pharmacy; the capitol historical association and museum; the eastern Washington historical society; the Washington state historical society; the interagency committee for outdoor recreation; the criminal justice training commission; the department of personnel; the state finance committee; the state library; the traffic safety commission; the horse racing commission; the advisory council on vocational education; the public disclosure commission; the state conservation commission; the commission on Hispanic affairs; the commission on Asian-American affairs; the state board for volunteer fire fighters; the transportation improvement board; the public ((~~employees~~)) employment relations commission; the forest practices appeals board; and the energy facilities site evaluation council.

The committee shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.

(3) Committee members shall be reimbursed by the department of ((~~personnel~~)) human resources for travel expenses under RCW 43.03.050 and 43.03.060.

Sec. 147. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of trade and economic development, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, (15) the department of community development, ((~~and~~)) (16) the department of health, and (17) the director of human resources which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 148. RCW 43.17.020 and 1989 1st ex.s. c 9 s 811 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of wildlife, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of trade and economic development, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, (15) the director of community development, ((~~and~~)) (16) the secretary of health, and (17) the director of human resources.

Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The director of wildlife, however, shall be appointed according to the provisions of RCW 77.04.080. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. A temporary director of wildlife shall not serve more than one year. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.

NEW SECTION. Sec. 149. All powers, duties, and functions of the department of personnel, the personnel board, and the higher education personnel board pertaining to collective bargaining are transferred to the public employment relations commission except that arbitration of grievances filed under a collective bargaining agreement existing before the effective date of this section and not yet finally determined by the effective date of this section, shall be transferred to the personnel appeals board as specified in section 156 of this act.

NEW SECTION. Sec. 150. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of personnel, the personnel board, and the higher education personnel board pertaining to the powers, functions, and duties transferred in section 149 of this act shall be delivered to the custody of the public employment relations commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of personnel in carrying out the powers, functions, and duties transferred in section 149 of this act shall be made available to the public employment relations commission. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred in section 149 of this act shall be assigned to the public employment relations commission.

Any appropriations made to the department of personnel, the personnel board, or the higher education personnel board for carrying out the powers, functions, and duties transferred in section 149 of this act shall, on the effective date of this section, be transferred and credited to the public employment relations commission.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 151. All employees of the department of personnel engaged in performing the powers, functions, and duties transferred in section 149 of this act are transferred to the jurisdiction of the public employment relations commission. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the public employment relations commission without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 152. All business pending before the department of personnel, the personnel board, and the higher education personnel board pertaining to the powers, functions, and duties transferred in section 149 of this act shall be continued and acted upon by the public employment relations commission under the rules in effect at the time of the transfer. All existing contracts and obligations of the department of personnel, the personnel board, and the higher education personnel board shall remain in full force and shall be performed by the public employment relations commission.

NEW SECTION. Sec. 153. The transfer of the powers, duties, functions, and personnel of the department of personnel, the personnel board, and the higher education personnel board shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 154. If apportionments of budgeted funds are required because of the transfers directed by sections 150 through 153 or 156 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. 155. All rules adopted by the state personnel board under chapter 41.06 RCW and all rules adopted by the higher education personnel board under chapter 28B.16 RCW that relate to functions transferred to the public employment relations commission or the personnel appeals board pursuant to section 149 of this act shall continue in effect until acted upon by the agency assuming those functions.

NEW SECTION. Sec. 156. All business pending before the department of personnel or the higher education personnel board pertaining to arbitration of grievances transferred by section 148 of this act shall be continued and acted upon by the personnel appeals board unless the parties to the grievance agree to submit the matter to an independent arbitrator for resolution of the grievance. Determinations of grievances transferred under this section shall be made according to the rules in effect and applicable to the grievance at the time of filing the grievance.

NEW SECTION. Sec. 157. The following acts or parts of acts are each repealed:

(1) RCW 28B.16.010 and 1969 ex.s. c 36 s 1;

(2) RCW 28B.16.020 and 1985 c 461 s 8, 1985 c 365 s 2, 1983 1st ex.s. c 75 s 1, 1982 1st ex.s. c 53 s 14, 1977 ex.s. c 169 s 41, & 1969 ex.s. c 36 s 2;

(3) RCW 28B.16.030 and 1969 ex.s. c 36 s 3;

(4) RCW 28B.16.040 and 1990 c 60 s 201, 1982 1st ex.s. c 53 s 15, 1977 ex.s. c 94 s 1, & 1969 ex.s. c 36 s 4;

(5) RCW 28B.16.041 and 1985 c 442 s 9;

(6) RCW 28B.16.042 and 1985 c 266 s 1;

(7) RCW 28B.16.043 and 1991 c 238 s 107;

(8) RCW 28B.16.060 and 1984 c 287 s 63, 1981 c 338 s 19, 1975-'76 2nd ex.s. c 34 s 73, & 1969 ex.s. c 36 s 6;

(9) RCW 28B.16.070 and 1983 c 23 s 1 & 1969 ex.s. c 36 s 7;

(10) RCW 28B.16.080 and 1969 ex.s. c 36 s 8;

(11) RCW 28B.16.090 and 1969 ex.s. c 36 s 9;

(12) RCW 28B.16.100 and 1990 c 60 s 202;

(13) RCW 28B.16.101 and 1982 1st ex.s. c 53 s 19 & 1977 ex.s. c 152 s 9;

(14) RCW 28B.16.105 and 1985 c 461 s 10, 1982 1st ex.s. c 53 s 17, & 1977 ex.s. c 152 s 13;

(15) RCW 28B.16.110 and 1985 c 94 s 1, 1980 c 11 s 3, 1979 c 151 s 16, 1977 ex.s. c 152 s 10, 1975 1st ex.s. c 122 s 2, & 1969 ex.s. c 36 s 11;

(16) RCW 28B.16.112 and 1987 c 185 s 3, 1986 c 158 s 4, 1979 c 151 s 17, & 1977 ex.s. c 152 s 11;

(17) RCW 28B.16.113 and 1977 ex.s. c 152 s 12;

(18) RCW 28B.16.116 and 1983 1st ex.s. c 75 s 3;

(19) RCW 28B.16.120 and 1969 ex.s. c 36 s 12;

(20) RCW 28B.16.130 and 1969 ex.s. c 36 s 13;

(21) RCW 28B.16.140 and 1969 ex.s. c 36 s 14;

(22) RCW 28B.16.150 and 1969 ex.s. c 36 s 15;

(23) RCW 28B.16.160 and 1988 c 202 s 27, 1971 c 81 s 72, & 1969 ex.s. c 36 s 16;

(24) RCW 28B.16.170 and 1969 ex.s. c 36 s 26;

(25) RCW 28B.16.180 and 1973 1st ex.s. c 46 s 3 & 1969 ex.s. c 36 s 17;

(26) RCW 28B.16.190 and 1969 ex.s. c 36 s 19;

(27) RCW 28B.16.200 and 1979 c 151 s 18 & 1969 ex.s. c 36 s 20;

(28) RCW 28B.16.210 and 1969 ex.s. c 36 s 29;

(29) RCW 28B.16.220 and 1969 ex.s. c 36 s 31;

(30) RCW 28B.16.230 and 1973 c 62 s 6 & 1969 ex.s. c 215 s 14;

(31) RCW 28B.16.240 and 1979 ex.s. c 46 s 1;

(32) RCW 28B.16.255 and 1985 c 461 s 11;

(33) RCW 28B.16.265 and 1985 c 461 s 12;

(34) RCW 28B.16.275 and 1985 c 461 s 13;

(35) RCW 28B.16.300 and 1990 c 204 s 4;

(36) RCW 28B.16.900 and 1969 ex.s. c 36 s 18;

(37) RCW 28B.16.910 and 1969 ex.s. c 36 s 27;

(38) RCW 28B.16.920 and 1969 ex.s. c 36 s 30;

(39) RCW 28B.16.930 and 1969 ex.s. c 36 s 28;

(40) RCW 41.06.010 and 1980 c 118 s 1 & 1961 c 1 s 1;

(41) RCW 41.06.030 and 1961 c 1 s 3;

(42) RCW 41.06.110 and 1984 c 287 s 69 & 1982 c 10 s 8;

(43) RCW 41.06.120 and 1981 c 311 s 17, 1975-'76 2nd ex.s. c 43 s 2, & 1961 c 1 s 12;

(44) RCW 41.06.130 and 1982 1st ex.s. c 53 s 3 & 1961 c 1 s 13;

(45) RCW 41.06.163 and 1987 c 185 s 9, 1986 c 158 s 6, 1979 c 151 s 59, & 1977 ex.s. c 152 s 3;

(46) RCW 41.06.165 and 1977 ex.s. c 152 s 4;

(47) RCW 41.06.230 and 1961 c 1 s 23;

(48) RCW 41.06.240 and 1961 c 1 s 24;

(49) RCW 41.06.310 and 1969 c 45 s 2;

(50) RCW 41.06.340 and 1969 ex.s. c 215 s 13;

(51) RCW 41.06.350 and 1969 ex.s. c 152 s 1; and

(52) RCW 41.06.380 and 1979 ex.s. c 46 s 2.

NEW SECTION. Sec. 158. Sections 101 through 107 of this act shall constitute a new chapter in Title 43 RCW.

PART II

COLLECTIVE BARGAINING FOR INSTITUTIONS OF HIGHER EDUCATION

NEW SECTION. Sec. 201. A new section is added to chapter 41.56 RCW to read as follows:

In addition to the entities listed in RCW 41.56.020, this chapter shall apply to institutions of higher education with respect to the employees classified under chapter 41.06 RCW or included in a bargaining unit that has exercised the option specified in section 203(3) of this act.

Sec. 202. RCW 41.56.030 and 1992 c 36 s 2 and 1991 c 363 s 119 are each reenacted and amended to read as follows:

As used in this chapter:

(1) "Public employer" means any officer, board, commission, council, or other person or body acting on behalf of any public body governed by this chapter ((~~as designated by RCW 41.56.020,~~)) or any subdivision of such public body. For the purposes of this section, the public employer of district court or superior court employees for wage-related matters is the respective county legislative authority, or person or body acting on behalf of the legislative authority, and the public employer for nonwage-related matters is the judge or judge's designee of the respective district court or superior court.

(2) "Public employee" means any employee of a public employer except any person (a) elected by popular vote, or (b) appointed to office pursuant to statute, ordinance or resolution for a specified term of office by the executive head or body of the public employer, or (c) whose duties as deputy, administrative assistant or secretary necessarily imply a confidential relationship to the executive head or body of the applicable bargaining unit, or any person elected by popular vote or appointed to office pursuant to statute, ordinance or resolution for a specified term of office by the executive head or body of the public employer, or (d) who is a personal assistant to a district court judge, superior court judge, or court commissioner. For the purpose of (d) of this subsection, no more than one assistant for each judge or commissioner may be excluded from a bargaining unit.

(3) "Bargaining representative" means any lawful organization which has as one of its primary purposes the representation of employees in their employment relations with employers.

(4) "Collective bargaining" means the performance of the mutual obligations of the public employer and the exclusive bargaining representative to meet at reasonable times, to confer and negotiate in good faith, and to execute a written agreement with respect to grievance procedures and collective negotiations on personnel matters, including wages, hours and working conditions, which may be peculiar to an appropriate bargaining unit of such public employer, except that by such obligation neither party shall be compelled to agree to a proposal or be required to make a concession unless otherwise provided in this chapter. In the case of the Washington state patrol, "collective bargaining" shall not include wages and wage-related matters.

(5) "Commission" means the public employment relations commission.

(6) "Executive director" means the executive director of the commission.

(7) "Uniformed personnel" means (a) law enforcement officers as defined in RCW 41.26.030 as now or hereafter amended, of cities with a population of fifteen thousand or more or law enforcement officers employed by the governing body of any county with a population of seventy thousand or more, or (b) fire fighters as that term is defined in RCW 41.26.030, as now or hereafter amended.

(8) "Institutions of higher education" means the same as defined in RCW 28B.10.016 but does not include technical colleges.

NEW SECTION. Sec. 203. A new section is added to chapter 41.56 RCW to read as follows:

On the effective date of this section, all collective bargaining rights and obligations concerning relations between the institutions of higher education and their employees classified under chapter 41.06 RCW shall be transferred to this chapter, subject to the following:

(1) The commission shall recognize, in their current form, all bargaining units certified by the higher education personnel board as of the effective date of this section.

(2) Except as provided in subsection (3) of this section:

(a) Collective bargaining under this section is limited to negotiation of grievance procedures and personnel matters over which the institution of higher education or related boards may lawfully exercise discretion; and

(b) Terms of a collective bargaining agreement negotiated under this section, if in conflict with rules or policies established by the director of human services under RCW 41.06.150, are void and unenforceable to the extent of the conflict.

(3) At any time after the effective date of this section, an institution of higher education and the exclusive bargaining representative of a bargaining unit of employees classified under chapter 41.06 RCW may exercise their option to have their relationship and corresponding obligations governed entirely by the provisions of chapter 41.56 RCW by filing notice of the parties' intent to be so governed, subject to the mutual adoption of a collective bargaining agreement recognizing the notice of intent. The parties shall provide the notice to the director of human resources and the commission. On the first day of the month following the month during which a collective bargaining agreement is executed by the parties recognizing the notice of intent and notice of the execution of the agreement and a copy of the agreement are received by the director and commission, chapter 41.06 RCW shall cease to apply to all employees in the bargaining unit covered by the agreement, and the limitations on collective bargaining contained in subsection (2) of this section shall cease to apply to that bargaining unit.

(4) If an institution of higher education and the exclusive bargaining representative of a bargaining unit of its employees agree to exercise the option to have their relationship and corresponding obligations governed entirely by this chapter, salary increases negotiated thereafter for the employees in the bargaining unit shall be subject to the following:

(a) Salary increases shall continue to be appropriated by the legislature. The exclusive bargaining representative shall meet before a legislative session with the governor or governor's designee and the representative of the institution of higher education concerning the total dollar amount for salary increases and health care contributions that will be contained in the appropriations proposed by the governor under RCW 43.88.060.

(b) The collective bargaining agreements may provide for salary increases that are different from or that exceed the amount or percentage for salary increases provided by the legislature in the appropriations act for the institution of higher education or allocated to the board of trustees by the state board for community and technical colleges, but the base for salary increases provided by the legislature under (a) of this subsection shall include only those amounts appropriated by the legislature and the base shall not include any additional salary increases provided under this subsection (4)(b).

(c) Any provisions of the collective bargaining agreements pertaining to salary increases provided under (a) of this subsection shall be subject to modification by the legislature. If any provision of a salary increase provided under (a) of this subsection is changed by subsequent modification of the appropriations act by the legislature, both parties shall immediately enter into collective bargaining for the sole purpose of arriving at a mutually agreed upon replacement for the modified provision.

(5) Nothing in this section may be construed to require any institution of higher education to bargain collectively with any exclusive bargain representative concerning any matter covered by chapter 41.05 RCW, except for the related cost or dollar contributions, or chapter 41.32 or 41.40 RCW.

NEW SECTION. Sec. 204. A new section is added to chapter 41.06 RCW to read as follows:

At any time after the effective date of this section, an institution of higher education and the exclusive bargaining representative of a bargaining unit of employees classified under this chapter may exercise their option to have their relationship and corresponding obligations governed entirely by the provisions of chapter 41.56 RCW as provided in section 203(3) of this act. The parties shall provide notice to the director of human resources and the public employment relations commission. On the first day of the month following the month during which a collective bargaining is executed by the parties recognizing the notice of intent and notice of the execution of the agreement and a copy of the agreement are received by the director and the commission, this chapter shall cease to apply to all employees in the bargaining unit covered by the agreement.

NEW SECTION. Sec. 205. A new section is added to chapter 41.56 RCW to read as follows:

Collective bargaining for classified employees of technical colleges covered under RCW 41.56.024 shall be subject to the following:

(1) Salary increases shall continue to be appropriated by the legislature.

(2) The collective bargaining agreements may provide for salary increases that are different from or that exceed the amount or percentage for salary increases established by the legislature in the appropriations act and allocated to the board of trustees by the state board for community and technical colleges, but the base for salary increases provided by the legislature shall include only those amounts appropriated by the legislature and the base shall not include any salary increases that exceed the amount appropriated.

(3) Any provisions of the collective bargaining agreements pertaining to salary increases provided under subsection (1) of this section shall be subject to modification. If any provision of a salary increase provided under subsection (1) of this section is changed by subsequent modification of the appropriations act by the legislature, both parties shall immediately enter into collective bargaining for the sole purpose of arriving at a mutually agreed upon replacement for the modified provision.

(4) Nothing in this chapter may be construed to require any board of trustees of a technical college to bargain collectively with any exclusive bargaining representative concerning any matter covered by chapter 41.05, 41.32, or 41.40 RCW.

Sec. 206. RCW 28B.50.140 and 1991 c 238 s 39 and 1991 c 58 s 1 are each reenacted and amended to read as follows:

Each board of trustees:

(1) Shall operate all existing community and technical colleges in its district;

(2) Shall create comprehensive programs of community and technical college education and training and maintain an open-door policy in accordance with the provisions of RCW 28B.50.090(3). However, technical colleges, and college districts containing only technical colleges, shall maintain programs solely for occupational education, basic skills, and literacy purposes. For as long as a need exists, technical colleges may continue those programs, activities, and services they offered during the twelve-month period preceding September 1, 1991;

(3) Shall employ for a period to be fixed by the board a college president for each community and technical college and, may appoint a president for the district, and fix their duties and compensation, which may include elements other than salary. Compensation under this subsection shall not affect but may supplement retirement, health care, and other benefits that are otherwise applicable to the presidents as state employees. The board shall also employ for a period to be fixed by the board members of the faculty and such other administrative officers and other employees as may be necessary or appropriate and fix their salaries and duties. Compensation and salary increases under this subsection shall not exceed the amount or percentage established for those purposes in the state appropriations act by the legislature as allocated to the board of trustees by the state board for community and technical colleges, except that compensation and salary increases for classified employees of technical colleges covered under chapter 41.56 RCW shall be governed by chapter 41.56 RCW as authorized in RCW 28B.50.874. The state board for community and technical colleges shall adopt rules defining the permissible elements of compensation under this subsection;

(4) May establish, under the approval and direction of the college board, new facilities as community needs and interests demand. However, the authority of boards of trustees to purchase or lease major off-campus facilities shall be subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340(5);

(5) May establish or lease, operate, equip and maintain dormitories, food service facilities, bookstores and other self-supporting facilities connected with the operation of the community and technical college;

(6) May, with the approval of the college board, borrow money and issue and sell revenue bonds or other evidences of indebtedness for the construction, reconstruction, erection, equipping with permanent fixtures, demolition and major alteration of buildings or other capital assets, and the acquisition of sites, rights-of-way, easements, improvements or appurtenances, for dormitories, food service facilities, and other self-supporting facilities connected with the operation of the community and technical college in accordance with the provisions of RCW 28B.10.300 through 28B.10.330 where applicable;

(7) May establish fees and charges for the facilities authorized hereunder, including reasonable rules and regulations for the government thereof, not inconsistent with the rules and regulations of the college board; each board of trustees operating a community and technical college may enter into agreements, subject to rules and regulations of the college board, with owners of facilities to be used for housing regarding the management, operation, and government of such facilities, and any board entering into such an agreement may:

(a) Make rules and regulations for the government, management and operation of such housing facilities deemed necessary or advisable; and

(b) Employ necessary employees to govern, manage and operate the same;

(8) May receive such gifts, grants, conveyances, devises and bequests of real or personal property from private sources, as may be made from time to time, in trust or otherwise, whenever the terms and conditions thereof will aid in carrying out the community and technical college programs as specified by law and the regulations of the state college board; sell, lease or exchange, invest or expend the same or the proceeds, rents, profits and income thereof according to the terms and conditions thereof; and adopt regulations to govern the receipt and expenditure of the proceeds, rents, profits and income thereof;

(9) May establish and maintain night schools whenever in the discretion of the board of trustees it is deemed advisable, and authorize classrooms and other facilities to be used for summer or night schools, or for public meetings and for any other uses consistent with the use of such classrooms or facilities for community and technical college purposes;

(10) May make rules and regulations for pedestrian and vehicular traffic on property owned, operated, or maintained by the district;

(11) Shall prescribe, with the assistance of the faculty, the course of study in the various departments of the community and technical college or colleges under its control, and publish such catalogues and bulletins as may become necessary;

(12) May grant to every student, upon graduation or completion of a course of study, a suitable diploma, nonbaccalaureate degree or certificate. Technical colleges shall offer only nonbaccalaureate technical degrees, certificates, or diplomas for occupational courses of study under rules of the college board. Technical colleges in districts twenty-eight and twenty-nine may offer nonbaccalaureate associate of technical or applied arts degrees only in conjunction with a community college the district of which overlaps with the district of the technical college, and these degrees may only be offered after a contract or agreement is executed between the technical college and the community college. The authority and responsibility to offer transfer level academic support and general education for students of districts twenty-one and twenty-five shall reside exclusively with Whatcom Community College. The board, upon recommendation of the faculty, may also confer honorary associate of arts degrees upon persons other than graduates of the community college, in recognition of their learning or devotion to education, literature, art, or science. No degree may be conferred in consideration of the payment of money or the donation of any kind of property;

(13) Shall enforce the rules and regulations prescribed by the state board for community and technical colleges for the government of community and technical colleges, students and teachers, and promulgate such rules and regulations and perform all other acts not inconsistent with law or rules and regulations of the state board for community and technical colleges as the board of trustees may in its discretion deem necessary or appropriate to the administration of college districts: PROVIDED, That such rules and regulations shall include, but not be limited to, rules and regulations relating to housing, scholarships, conduct at the various community and technical college facilities, and discipline: PROVIDED, FURTHER, That the board of trustees may suspend or expel from community and technical colleges students who refuse to obey any of the duly promulgated rules and regulations;

(14) May, by written order filed in its office, delegate to the president or district president any of the powers and duties vested in or imposed upon it by this chapter. Such delegated powers and duties may be exercised in the name of the district board;

(15) May perform such other activities consistent with this chapter and not in conflict with the directives of the college board;

(16) Notwithstanding any other provision of law, may offer educational services on a contractual basis other than the tuition and fee basis set forth in chapter 28B.15 RCW for a special fee to private or governmental entities, consistent with rules and regulations adopted by the state board for community and technical colleges: PROVIDED, That the whole of such special fee shall go to the college district and be not less than the full instructional costs of such services including any salary increases authorized by the legislature for community and technical college employees during the term of the agreement: PROVIDED FURTHER, That enrollments generated hereunder shall not be counted toward the official enrollment level of the college district for state funding purposes;

(17) Notwithstanding any other provision of law, may offer educational services on a contractual basis, charging tuition and fees as set forth in chapter 28B.15 RCW, counting such enrollments for state funding purposes, and may additionally charge a special supplemental fee when necessary to cover the full instructional costs of such services: PROVIDED, That such contracts shall be subject to review by the state board for community and technical colleges and to such rules as the state board may adopt for that purpose in order to assure that the sum of the supplemental fee and the normal state funding shall not exceed the projected total cost of offering the educational service: PROVIDED FURTHER, That enrollments generated by courses offered on the basis of contracts requiring payment of a share of the normal costs of the course will be discounted to the percentage provided by the college;

(18) Shall be authorized to pay dues to any association of trustees that may be formed by the various boards of trustees; such association may expend any or all of such funds to submit biennially, or more often if necessary, to the governor and to the legislature, the recommendations of the association regarding changes which would affect the efficiency of such association;

(19) Subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340(4), may participate in higher education centers and consortia that involve any four-year public or independent college or university; and

(20) Shall perform any other duties and responsibilities imposed by law or rule and regulation of the state board.

PART III

COLLECTIVE BARGAINING FOR STATE EMPLOYEES

NEW SECTION. Sec. 301. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Agency" means any agency as defined in RCW 41.06.020 and covered by chapter 41.06 RCW.

(2) "Collective bargaining" means the performance of the mutual obligation of the representatives of the employer and the exclusive bargaining representative to meet at reasonable times and to bargain in good faith in an effort to reach agreement with respect to the subjects of bargaining specified under section 306 of this act except by such obligation neither party shall be compelled to agree to a proposal or be required to make a concession.

(3) "Commission" means the public employment relations commission created by chapter 41.58 RCW.

(4) "Confidential employee" means an employee who, in the regular course of his or her duties, assists in a confidential capacity persons who formulate, determine, and effectuate management policies with regard to labor relations or who, in the regular course of his or her duties, has authorized access to information relating to the effectuation or review of the employer's collective bargaining policies thereto or who assists or aids managerial employees.

(5) "Employee" means any employee covered by chapter 41.06 RCW, including employees whose work has ceased in connection with the pursuit of lawful activities protected by this chapter, except:

(a) Employees covered by chapter 41.56 RCW;

(b) Confidential employees;

(d) Internal auditors in any agency; and

(e) Any employee of the commission, the personnel appeals board, the office of financial management, the department of human resources, or the attorney general's office or their successor organizations.

(6) "Employee organization" means any organization, union, or association in which employees participate and that exists for the purpose, in whole or in part, of collective bargaining.

(7) "Employer" means the state of Washington as represented by the governor or the governor's designee.

(8) "Essential services personnel" means corrections officers employed by the division of prisons of the department of corrections.

(9) "Exclusive bargaining representative" means any employee organization that has been certified or recognized under this chapter as the representative of the employees in an appropriate bargaining unit.

(10) "Executive director" means the executive director of the public employment relations commission.

(11) "Labor dispute" means any controversy concerning terms, tenure, or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment with respect to the subjects of bargaining provided in this chapter, regardless of whether the disputants stand in the proximate relation of employer and employee.

(12) "Managers" or "management employees" means employees who:

(a) Formulate policy or direct the work of an agency or subdivision thereof; or

(b) Are responsible to administer and carry out policies and programs of an agency or subdivision thereof; or

(c) Manage, administer, and control a local branch office of an agency or subdivision thereof, including the physical, financial, or personnel resources thereof; or

(d) Have substantial responsibility in personnel administration, legislative relations, public information, or the preparation and administration of budgets; or

(e) Functionally or organizationally are above the first level of supervision.

(13) "Supervisor" means any employee who has authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or to adjust employee grievances, or to effectively recommend such an action, if, in connection with the foregoing, the exercise of authority is not of a merely routine or clerical nature but requires the consistent use of independent judgment. "First level of supervision" and "first level supervisor" means the lowest level at which an employee functions as a supervisor.

(14) "Unfair labor practice" means any unfair labor practice listed in section 315 of this act.

(15) "Union security provision" means a provision in a collective bargaining agreement under which some or all of the employees in the bargaining unit may be required, as a condition of continued employment on or after the thirtieth day following the beginning of such employment or the effective date of the provision, whichever is later, to become a member of the exclusive bargaining representative or pay a representation fee not greater than the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the exclusive bargaining representative.

(16) "Work stoppage" means any suspension, curtailment, or other interruption of normal work in connection with a labor dispute under this chapter or occurring during the course of collective bargaining, including a strike, which means any action by employees or employee organizations, acting in concert, wherein any or all of such employees withhold or otherwise fail or refuse to perform fully their normal duties or services as employees.

NEW SECTION. Sec. 302. DUTIES OF THE COMMISSION. Within the provisions set forth in this chapter, the duties of the commission shall be as follows:

(1) Through its executive director, to provide mediation services, either upon its own motion or upon the request of one or more of the parties to a labor dispute arising under this chapter:

(a) A mediator appointed by the commission shall meet with the representatives of the parties, either jointly or separately and shall take such other steps as the mediator deems appropriate in order to persuade the parties to resolve their differences and effect an agreement. A mediator does not have a power of compulsion;

(b) If the executive director is not able to bring the parties to agreement by mediation within a reasonable time the executive director shall seek to induce the parties voluntarily to seek other means of settling the dispute without resort to a work stoppage or other coercion, including submission to the employees in the bargaining unit of the employer's last offer of settlement for approval or rejection in a secret ballot. The failure or refusal of either party to agree to any procedure suggested by the executive director shall not be deemed a violation of any duty or obligation imposed by this chapter;

(c) No person who has served as a mediator under this chapter may thereafter be compelled in any civil hearing or proceeding to give testimony or produce evidence concerning any information obtained in the course of his or her activities as mediator;

(2) To resolve disputes concerning the assignment of classifications covered by this chapter to the appropriate bargaining unit established under section 310 of this act;

(3) To resolve any unfair labor practice filed by any employee, employee organization, or employer;

(4) To resolve any issue arising under this chapter with respect to representation matters covered by section 309 of this act.

NEW SECTION. Sec. 303. RULES. (1) The commission may adopt, amend, and rescind rules in the manner prescribed by chapter 34.05 RCW as necessary to carry out the provisions of this chapter, consistent with the best standards of labor management relations.

(2) In adopting rules under this chapter the commission shall give notice to, and consider proposals from, employee representatives and affected agencies. Complete and current compilations of all rules of the commission in printed form shall be available to the public free of charge.

NEW SECTION. Sec. 304. EMPLOYEE RIGHTS. Employees shall have the right to self-organize, form, join, or assist employee organizations, to bargain collectively through representatives of their own choosing, and to engage in other lawful concerted activities for the purposes of collective bargaining or other mutual aid or protection, free from interference, restraint, or coercion, and may also refrain from any or all such activities except to the extent that employees may be required to pay a fee to an exclusive bargaining representative under a union security provision authorized by this chapter.

NEW SECTION. Sec. 305. MANAGEMENT RIGHTS. This chapter shall not interfere with the right of the employer to carry out its statutory mandate. An employer shall not be required to bargain over matters of inherent managerial policy, which shall include such areas of discretion or policy as the functions and programs of the employer, its hours of operation, standards of service, use of technology, and organizational structure. Management rights, which in addition to all powers, duties, and rights established by constitutional provision, statute or special act, also include, but are not limited to, the exclusive power and right to:

(1) Direct, supervise, evaluate, or hire employees;

(2) Maintain and improve the efficiency and effectiveness of governmental operations;

(3) Determine and implement methods, process, means, procedures and type and number of personnel by which governmental operations are to be conducted;

(4) Suspend, reduce pay, demote, or discharge for just cause, or lay off, transfer, assign, schedule, promote, or retain employees; and

(5) Take whatever actions are deemed necessary to carry out the mission of the state and its agencies during an emergency.

NEW SECTION. Sec. 306. SCOPE OF BARGAINING. (1) Except as otherwise provided in this section, the matters subject to collective bargaining are wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.

(2) The scope of bargaining shall not include matters pertaining to:

(a) Rules, policies, practices, and procedures regarding merit system principles relating to:

(i) Original appointments and promotions including recruitment, examinations, grading, certification, probationary and trial service periods and appointments;

(ii) The job evaluation system including position classification and reclassification, position qualification standards, establishment and abolition of classifications, allocation and reallocation of positions to classifications, and the determination of an incumbent's status resulting from position reallocations;

(iii) Training and career development, the career executive program, the Washington management services program, veteran's preferences, and equal opportunity and affirmative action;

(b) Any retirement system, retirement benefit, or retirement statute of the state of Washington;

(c) Health care benefits or other employee insurance benefits but the cost or dollar contributions related thereto may be bargained;

(d) A decision to contract for services as provided in section 129 of this act; and

(e) Management rights as covered by section 305 of this act.

(3) In the event of a dispute between the employer and the exclusive bargaining representative over which matters are mandatory subjects for bargaining, the dispute shall be submitted to the commission for determination. Prior law, practice, or interpretation shall be neither restrictive, expansive, nor determinative with respect to the scope of bargaining.

NEW SECTION. Sec. 307. COLLECTIVE BARGAINING AGREEMENTS. (1) The parties to a collective bargaining agreement shall reduce the agreement to writing and both shall execute it.

(2) A collective bargaining agreement shall contain provisions that:

(a) Require layoffs and subsequent reemployment to be implemented based on seniority and the maintenance and implementation of approved affirmative action plans; and

(b) Require processing of disciplinary actions or termination of employment entirely under the procedures of the collective bargaining agreement if an employee covered under this chapter has a right to contest the disciplinary action or termination of employment.

(3) If a collective bargaining agreement between an employer and the exclusive bargaining representative is concluded after the termination date of the previous collective bargaining agreement between the employer and an employee organization representing the same or a substantially similar bargaining unit, the effective date of the collective bargaining agreement may be the day after the termination of the previous collective bargaining agreement, and some or all benefits included in the new collective bargaining agreement, including wage or salary increases, may accrue beginning with that effective date.

NEW SECTION. Sec. 308. ENFORCEMENT OF COLLECTIVE BARGAINING AGREEMENTS. (1) Collective bargaining agreements negotiated under this chapter shall contain provisions for the final and binding arbitration of all disputes arising over the interpretation or application of the agreement.

(2) The parties to a collective bargaining agreement may agree on one or more permanent umpires to serve as arbitrator, may agree on any impartial person to serve as an ad hoc arbitrator, or may agree to select arbitrators from any source available to them including federal and private agencies or a list of arbitrators maintained by the commission.

(3) An arbitrator may require any person to attend as a witness and to bring with him or her any book, record, document, or other evidence. Subpoenas shall be issued and signed by the arbitrator and shall be served in the same manner as subpoenas to testify before a court of record in this state. The fees for attendance shall be paid by the party requesting issuance of the subpoena and shall be the same as the fees of witnesses in the superior court. If any person so summoned to testify refuses or neglects to obey the subpoena, upon petition authorized by the arbitrator, the superior court may compel the attendance of the person before the arbitrator or punish the person for contempt in the same manner provided for the attendance of witnesses or the punishment of them in the courts of this state.

(4) The arbitrator shall establish a time and place for a hearing and shall provide reasonable notice thereof to the parties to the dispute. The arbitrator may adjourn the hearing from time to time as may be necessary and, on application of either party and for good cause, postpone the hearing to a time not extending beyond a date fixed by the collective bargaining agreement for making the award. The arbitrator shall have the power to administer oaths. Each party shall have the opportunity to present evidence and make argument at the hearing. The rules of evidence prevailing in judicial proceedings may be considered, but are not binding, and any oral testimony or documentary evidence or other data deemed relevant by the arbitrator may be received in evidence. The arbitrator shall issue a written decision, which shall be signed by the arbitrator. The arbitrator shall promptly serve a copy of the decision on each of the parties or their attorneys.

(5) If a party to a collective bargaining agreement negotiated under this chapter refuses to submit a grievance for arbitration, the other party to the collective bargaining agreement may petition the jurisdiction of the superior court of Thurston county for issuance of an order compelling arbitration. Disputes concerning compliance with grievance procedures shall be reserved for determination by the arbitrator. Arbitration shall be ordered if the grievance states a claim which on its face is covered by the collective bargaining agreement, and doubts as to the arbitrability of an issue shall be referred to the arbitrator to be decided before hearing the merits of the case. Disputes concerning compliance with grievance procedures shall be reserved for determination by the arbitrator.

(6) If a party to a collective bargaining agreement negotiated under this chapter refuses to comply with the award of an arbitrator determining a grievance arising under the collective bargaining agreement, the other party to the collective bargaining agreement may petition the superior court of Thurston county for issuance of an order enforcing the arbitration award. The court shall not substitute its judgment for that of the arbitrator, and shall enforce any arbitration award that is based on the collective bargaining agreement, except that an arbitration award shall not be enforced if the court is satisfied that substantial rights of the parties have been prejudiced by:

(a) The arbitration award having been procured by corruption, fraud, or undue means; or

(b) Evident partiality or corruption in the arbitrator or arbitrators; or

(c) The arbitrator or arbitrators were guilty of misconduct in refusing to postpone a hearing upon sufficient cause shown or in refusing to hear evidence pertinent and material to the controversy, or of any other misbehavior by which the rights of any party have been prejudiced; or

(d) The arbitrator or arbitrators have exceeded their powers, or so imperfectly executed them that a final and definite award on the subject matter was not made.

(7) If an arbitration award is vacated, the court shall direct a rehearing either before the same arbitrator or before a new arbitrator to be chosen in the manner provided in the collective bargaining agreement for the selection of the original arbitrator. Any provision limiting the time in which the arbitrator may make a decision shall be deemed applicable to the new arbitration and to commence from the date of the court's order.

(8) Nothing in this chapter or rules adopted under it may be construed to authorize the commission or an arbitrator to direct in any manner the method, means, and number, and kinds of personnel by which agency operations are to be conducted or the number of clients to be served by agency programs and operations, or to spend money not already appropriated by the legislature, or that would have the effect of increasing the future appropriations or diminishing established programs.

(9) If there is any conflict between any collective bargaining agreement and any resolution, rule, or policy of the employer or its agents, the terms of the collective bargaining agreement shall prevail except with respect to those terms that conflict with sections 305 and 306(2) of this act.

NEW SECTION. Sec. 309. REPRESENTATION. (1) Transition from bargaining units certified under RCW 41.06.150 to bargaining units established by this chapter shall be in accordance with section 312 of this act. All subsequent questions pertaining to the issue of representation shall be resolved by the commission in accordance with the procedures in this section.

(a) Questions concerning representation may not be raised within one year following certification of an exclusive bargaining representative under this section.

(b) Questions concerning representation may not be raised within one year following an election or cross-check in which the employees failed to designate an exclusive bargaining representative.

(c) If there is a valid collective bargaining agreement in effect, questions concerning representation may not be raised except during the period not more than ninety nor less than sixty days before the expiration date of the agreement. In the event a valid collective bargaining agreement, together with any renewals or extensions thereof, has been or will be in existence for more than three years, questions concerning representation may be raised not more than ninety nor less than sixty days before the third anniversary date or any subsequent anniversary date of the agreement. If the exclusive bargaining representative is removed as the result of this procedure, the collective bargaining agreement shall be deemed to be terminated as of the date of the certification.

(d) An employee organization seeking certification as exclusive bargaining representative of a bargaining unit of employees, or bargaining unit employees seeking decertification of their exclusive bargaining representative, shall make a confidential showing to the commission of credible evidence demonstrating that at least thirty percent of the employees in the bargaining unit are in support of the petition.

(e) A petition filed by an employer shall be supported by credible evidence demonstrating the good faith basis on which the employer claims the existence of a question concerning the representation among its employees.

(f) Any employee organization that makes a confidential showing to the commission of credible evidence demonstrating that it has the support of at least ten percent of the employees in the bargaining unit involved may intervene in the proceedings under this section, and may have its name listed as a choice on the ballot in an election conducted by the commission.

(g) The commission shall determine any question concerning representation by conducting a secret ballot election among the employees in the bargaining unit, except:

(i) If only one employee organization is seeking certification as exclusive bargaining representative of a bargaining unit for which there is no incumbent exclusive bargaining representative, the commission may, upon the concurrence of the employer and the employee organization, determine the question concerning representation by conducting a cross-check comparing the employee organization's membership records or bargaining authorization cards against the employment records of the employer; or

(ii) Where the commission determines that a serious unfair labor practice has been committed that interfered with the election process and precludes the holding of a fair election, the commission may determine the question concerning representation by conducting a cross-check comparing the employee organization's membership records or bargaining authorization cards against the employment records of the employer.

(h) The representation election ballot shall contain a choice for each employee organization qualifying under subsection (d) or (f) of this section, together with a choice for no representation. The representation election shall be determined by the majority of the valid ballots cast. Where there are three or more choices on the ballot and none of the choices receives a majority of the valid ballots cast, a runoff election shall be conducted between the two choices receiving the highest and second highest numbers of votes.

(2) The employee organization that has been designated or selected by the majority of the employees in an appropriate bargaining unit as their representative for the purposes of collective bargaining shall be the exclusive bargaining representative of, and shall be required to represent, all the employees within the bargaining unit without regard to membership in that employee organization. However, any employee or group of employees may at any time present complaints or concerns to the employer and have such complaints or concerns adjusted without intervention of the exclusive bargaining representative, as long as the exclusive bargaining representative has been given an opportunity to be present at the adjustment and to make its views known, and as long as the adjustment is not inconsistent with the terms of a collective bargaining agreement then in effect.

NEW SECTION. Sec. 310. BARGAINING UNITS. The legislature finds that to foster meaningful collective bargaining, units must be structured to avoid excessive fragmentation whenever possible. In accordance with this policy, collective bargaining units under this chapter shall be structured on a state-wide basis and limited to one collective bargaining unit for each of the following:

(1) Clerical, office, and administrative support including but not limited to nonprofessional clerical and administrative classes: Typists, secretaries, accounting clerks, computer operators, office service personnel, and similar classes;

(2) Maintenance, services, operations support, trades, and technical classes including but not limited to generally recognized blue collar and technical classes, including highway maintenance workers, carpenters, plumbers, electricians, auto mechanics, engineering aides and associates, and similar classes;

(3) Health and human care professionals, including but not limited to community health, nutrition and health service professional employees, pharmacists, dietitians, licensed therapists, and similar classes;

(4) Direct care institutions and related nonprofessional classes involved in health and human care including but not limited to institutional care classes, including nursing aides, psychiatric aides, therapy aides, and similar classes;

(5) Corrections custody classes in adult corrections institutions, excluding employees of the division of community corrections;

(6) Engineering, science and resources, including but not limited to specialized professional scientific occupations, civil and other engineers, architects, chemists, biologists, geologists, surveyors, and similar classes;

(7) Professional and technical employees involved in financial and revenue collection, auditing, and examination;

(8) Professional and technical employees involved in nonfinancial regulatory and inspection activities;

(9) Professional and technical employees involved in forestry, natural resources, environmental, and related classes;

(10) Professional employees, excluding professional employees who meet the standards of other professional units;

(11) Teachers of the school for the blind and school for the deaf;

(12) Highway and transportation engineers, engineering technicians, and related classes;

(13) Liquor store clerks and related classes;

(14) Driver's licensing examiners;

(15) Registered nurses and job classes requiring licensure as a registered nurse;

(16) Licensed physicians, psychiatrists, psychologists, and dentists;

(17) Law enforcement, including all classes with power to arrest, whose work involves primarily the enforcement of statutes, ordinances, and rules and the preservation of public order; and

(18) Supervisory employees. However, an employee organization that is certified to represent nonsupervisory employees covered under this chapter that becomes the exclusive bargaining representative for this unit shall create a separate local for supervisory employees within its organization.

NEW SECTION. Sec. 311. UNION SECURITY. (1) The parties to a collective bargaining agreement may negotiate, as a condition of employment, a union security provision. However, agreements involving union security provisions shall safeguard the right of nonassociation based on employee preference or on bona fide religious tenets or teachings of a church or religious body of which the public employee is a member. Payment of dues or a representation fee shall begin on the thirtieth day following the beginning of employment or thirty days after the date of ratification of an agreement containing a union security provision, whichever is later. The failure of an employee to comply with such a condition of employment constitutes cause for dismissal. An exclusive bargaining representative may not require a bargaining unit employee to pay initiation, reinstatement, or any other fees or fines.

(2) Each employee organization shall establish a procedure by which any employee so requesting may obtain a rebate of that part of the membership dues or representation fee, if any, that represents a pro rata share of expenditures for purposes not germane to the collective bargaining process or to contract administration.

(3) Upon filing with the employer the voluntary written authorization of a bargaining unit employee under this chapter, the employee organization that is the exclusive bargaining representative of the bargaining unit has the right to have deducted from the salary of the employee an amount equal to the dues and/or fees uniformly required as a condition of acquiring or retaining membership in the employee organization. The dues and/or fees shall be deducted each pay period from the pay of all employees who have given authorization for the deduction and shall be transmitted by the employer as provided for by agreement between the employer and the employee organization. The right to deduct dues and/or fees shall be an exclusive right of the employee organization that represents the unit in which the employee is employed.

(4) To safeguard the right of nonassociation of employees, based on bona fide religious tenets or teachings of a church or religious body of which the employee is a member, the employee shall pay to a charitable organization mutually agreed to between the employee and the employee organization, an amount of money not greater than the dues and/or fees assessed all other members or nonmembers of the organization. The employee shall be required to provide the employee organization with a monthly receipt from the charitable organization showing the amount of the cash contribution. Such an employee shall not be a member of the employee organization but is entitled to all the representation rights of a member of the employee organization. Disputes regarding the bona fide religious objections or charitable contributions shall be decided by the commission.

(5) Until an exclusive bargaining representative is selected for a bargaining unit under this chapter or July 1, 1995, whichever is earlier, employee organizations that, before the effective date of this section, were entitled to the union shop dues or representation fees pursuant to preexisting law or rules shall continue to be entitled to such dues and fees until an exclusive bargaining representative is certified under this chapter. Upon the selection of an exclusive bargaining representative, only the exclusive bargaining representative for the bargaining unit is entitled to the rights established under this section.

NEW SECTION. Sec. 312. TRANSITION OF BARGAINING REPRESENTATIVES AND UNITS. The transition of exclusive bargaining representatives and bargaining units existing before the effective date of this section to the units prescribed in section 310 of this act and to exclusive bargaining representatives under this chapter shall be implemented as follows:

(1) Any bargaining representative that has been certified under prior law and rules to represent employees now included in a unit established in section 310 of this act may use the number of its regular dues paying members included in the new unit to establish its status as a petitioner or intervenor under section 309 of this act if:

(a) One and only one employee organization has a majority of the employees in the unit who are regular dues paying members, then the employee organization shall be entitled to a certification as the exclusive bargaining representative by the commission for the new bargaining unit without the necessity of a representation election;

(b) Two or more employee organizations have more than a majority of the employees in the unit established in section 310 of this act as regular dues paying members, then an election shall be held under the provisions of section 309 of this act to determine which such employee organization shall be entitled to a certification as the exclusive bargaining representative by the commission for the new bargaining unit;

(c) On the effective date of this section, less than a majority of the employees to be included in a bargaining unit prescribed in section 310 of this act are represented by a single existing certified bargaining representative as evidenced by the number of employees paying regular dues to the organization, representation of employees in the new bargaining unit shall be determined pursuant to section 309 of this act.

(2) An employee organization that has been the certified exclusive bargaining representative of employees under any other law or rule before the effective date of this section may continue to represent such employees until they are included in a unit established under section 310 of this act. However, agencies may not renegotiate any existing agreement, enter into a new collective bargaining agreement, or extend an existing agreement beyond the agreement's expiration date in effect on the effective date of this section. No provision in any such agreement may be unilaterally changed by the employer before its next expiration date, or the date of certification of the new exclusive bargaining representative under this chapter, whichever occurs first, without the employer giving ninety days' advance notice to the certified exclusive bargaining representative and, if requested, bargaining with the representative over the proposed changes under the provisions of this chapter.

(3) An employee organization may not be initially certified as an exclusive bargaining representative in any bargaining unit established by this chapter if a dispute exists over the classification to be included in the unit that could affect the determination of its status as the representative of a majority of the employees included in the unit including the employees in disputed classifications.

NEW SECTION. Sec. 313. NEGOTIATION AND RATIFICATION OF COLLECTIVE BARGAINING AGREEMENTS. (1) Collective bargaining agreement negotiations under this chapter shall commence no later than October 1, 1994, for collective bargaining agreements that are to become effective no earlier than July 1, 1995, for those units in which an exclusive bargaining representative has been selected, or as soon thereafter as an exclusive bargaining representative has been selected for a bargaining unit. For subsequent agreements, negotiations shall commence and contracts become effective as the parties agree.

(2) After ratification of a tentative agreement by the employees in the bargaining unit, the items requiring funding shall be submitted to the joint committee on collective bargaining created in subsection (4) of this section. If the committee approves the submitted items, the governor shall request legislation necessary to implement the items requiring funding. If the legislature fails to act on the legislation submitted or rejects all or part of the legislation submitted, the tentative agreement shall be returned to the parties for renegotiation.

(3) Any provisions of these agreements pertaining to salary increases shall be subject to modification by the legislature. If any provision of a salary increase is changed by subsequent modification of the appropriations act by the legislature, both parties shall immediately enter into collective bargaining for the sole purpose of arriving at a mutually agreed upon replacement for the modified provision.

(4) The joint committee on collective bargaining is created, to consist of the speaker of the house of representatives, the majority leader of the house of representatives, the minority leader of the house of representatives, the chair of the house of representatives committee on appropriations, or successor committee, the majority leader of the senate, the minority leader of the senate, the president pro tempore of the senate, and the chair of the senate committee on ways and means, or successor committee.

NEW SECTION. Sec. 314. ESSENTIAL SERVICES PERSONNEL. (1) If, sixty days after commencement of negotiations, no agreement has been reached between essential services personnel and their employer, then at any time thereafter either party may declare that an impasse exists and may submit a request for mediation to the commission, with or without the concurrence of the other party. Until a new collective bargaining agreement involving essential services personnel is negotiated, the terms and conditions of the previous collective bargaining agreement shall remain in effect.

(2) This section does not prohibit the parties from agreeing to substitute at their own expense some other mediator or mediation procedure.

(3) Work stoppages involving essential services personnel are hereby expressly prohibited.

NEW SECTION. Sec. 315. UNFAIR LABOR PRACTICES. (1) It shall be an unfair labor practice for an employer to:

(a) Interfere with, restrain, or coerce employees in the exercise of their rights guaranteed by this chapter;

(b) Control, dominate, or interfere with the formation or administration of any employee organization or contribute financial or other support to it. However, an employer shall not be prohibited from permitting employees to confer with it or its representatives or agents during working hours without loss of time or pay;

(c) Encourage or discourage membership in any employee organization by discrimination with regard to hiring, tenure of employment, or any term or condition of employment, but this subsection does not prevent an employer from enforcing a union security provision authorized by this chapter;

(d) Discharge or otherwise discriminate against an employee who has filed charges or given testimony under this chapter; or

(e) Refuse to bargain collectively with the exclusive bargaining representative of its employees.

(2) It shall be an unfair labor practice for an employee organization or its agents to:

(a) Restrain or coerce:

(i) Employees in the exercise of the rights guaranteed in this chapter. However, this subsection does not impair the right of an employee organization to prescribe its own rules with respect to the acquisition or retention of membership therein; or

(ii) The employer in the selection of its representatives for the purposes of collective bargaining or the adjustment of grievances;

(b) Cause or attempt to cause the employer to discriminate against an employee in violation of subsection (1)(c) of this section, or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground other than his or her failure to tender the amounts required under a union security provision authorized by this chapter;

(d) Refuse to bargain collectively with the employer of an employee for whom it is the exclusive bargaining representative;

(e) Cause or attempt to cause the employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services that are not performed or not to be performed; or

(f) Breach its duty of fair representation with respect to any employee or employees in a bargaining unit for which the employee organization is exclusive bargaining representative, by action or inaction that is arbitrary, discriminatory, perfunctory, or lacking in good faith. It is not a violation of this section for an employee organization to refuse to pursue a grievance on behalf of one or more employees where, following investigation of the facts and circumstances, the employee organization makes a determination in good faith that the grievance is without merit.

(3) The expressing of any views, argument, or opinion, or the dissemination thereof, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this chapter, if the expression contains no threat of reprisal or force or promise of benefit.

NEW SECTION. Sec. 316. UNFAIR LABOR PRACTICE PROCEDURES. The commission shall resolve any unfair labor practice dispute in accordance with the procedures specified in this section.

(1) A complaint charging unfair labor practices shall be filed within six months following the act or event in question.

(2) The person or persons named as respondent in a complaint charging unfair labor practices may file an answer to the complaint and appear in person or otherwise to give testimony at the place and time set by the commission for hearing.

(3) If the commission determines that a person has engaged in or is engaging in any unfair labor practice, then the commission shall issue and cause to be served upon the person an order requiring the person to cease and desist from the unfair labor practice and to take such affirmative action as will effectuate the purposes and the policy of this chapter, including the reinstatement of employees with back pay.

(4) The commission may petition the Thurston county superior court for appropriate temporary relief or for the enforcement of its order.

NEW SECTION. Sec. 317. EMPLOYER RESPONSIBILITIES. (1) The governor may appoint a designee to fulfill the collective bargaining responsibilities as the state employer under this chapter.

(2) As directed by the governor, the designee shall:

(a) Develop and implement labor relations policies and programs;

(b) Represent the governor in: Negotiations with certified bargaining representatives; the determination of classifications to be included in bargaining units; elections to determine certified bargaining agents; and other proceedings arising under this chapter; and any other activities necessary to implement the collective bargaining policies established by this chapter;

(c) Consult with agencies as appropriate concerning agency-unique issues involved in the collective bargaining under this chapter;

(d) Administer and interpret collective bargaining agreements, and coordinate and direct agency activities as necessary to promote consistent policies and practices;

(e) Coordinate the state's resources as needed to represent the state in collective bargaining under this chapter; and

(f) Provide advice on labor relations to the various departments and agencies of state government, including providing for necessary supervisory and managerial training.

(3) All state departments and agencies shall provide such assistance, services, and information as required by the governor or his or her designee, and shall take such administrative or other action as directed to implement and administer the provisions of any binding agreement between the state and certified bargaining representatives entered into under this chapter.

Sec. 318. RCW 41.04.230 and 1993 c 2 s 26 (Initiative Measure No. 134, approved November 3, 1992) and 1992 c 192 s 1 are each reenacted and amended to read as follows:

Any official of the state authorized to disburse funds in payment of salaries and wages of public officers or employees is authorized, upon written request of the officer or employee, to deduct from the salaries or wages of the officers or employees, the amount or amounts of subscription payments, premiums, contributions, or continuation thereof, for payment of the following:

(1) Credit union deductions: PROVIDED, That twenty-five or more employees of a single state agency or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same credit union. An agency may, in its own discretion, establish a minimum participation requirement of fewer than twenty-five employees.

(2) Parking fee deductions: PROVIDED, That payment is made for parking facilities furnished by the agency or by the department of general administration.

(3) U.S. savings bond deductions: PROVIDED, That a person within the particular agency shall be appointed to act as trustee. The trustee will receive all contributions; purchase and deliver all bond certificates; and keep such records and furnish such bond or security as will render full accountability for all bond contributions.

(4) Board, lodging or uniform deductions when such board, lodging and uniforms are furnished by the state, or deductions for academic tuitions or fees or scholarship contributions payable to the employing institution.

(5) ((Dues and other fees deductions: PROVIDED, That the deduction is for payment of membership dues to any professional organization formed primarily for public employees or college and university professors: AND PROVIDED, FURTHER, That twenty-five or more employees of a single state agency, or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same professional organization.

(6) Labor or employee organization dues may be deducted in the event that a payroll deduction is not provided under a collective bargaining agreement under the provisions of RCW 41.06.150: PROVIDED, That twenty-five or more officers or employees of a single agency, or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same labor or employee organization: PROVIDED, FURTHER, That labor or employee organizations with five hundred or more members in state government may have payroll deduction for employee benefit programs.

~~(7)~~)) Insurance contributions to the authority for payment of premiums under contracts authorized by the state health care authority.

((~~(8)~~)) (6) Deductions to a bank, savings bank, or savings and loan association if (a) the bank, savings bank, or savings and loan association is authorized to do business in this state; and (b) twenty-five or more employees of a single agency, or fewer, if a lesser number is established by such agency, or a total of one hundred or more state employees of several agencies have authorized a deduction for payment to the same bank, savings bank, or savings and loan association.

Deductions from salaries and wages of public officers and employees other than those enumerated in this section or by other law, may be authorized by the director of financial management for purposes clearly related to state employment or goals and objectives of the agency and for plans authorized by the state health care authority.

The authority to make deductions from the salaries and wages of public officers and employees as provided for in this section shall be in addition to such other authority as may be provided by law: PROVIDED, That the state or any department, division, or separate agency of the state shall not be liable to any insurance carrier or contractor for the failure to make or transmit any such deduction.

NEW SECTION. Sec. 319. The public employment relations commission may take such steps as are necessary to ensure that chapter 41.--- RCW (sections 301 through 317 of this act) is implemented on its effective date.

NEW SECTION. Sec. 320. Sections 301 through 317 of this act shall constitute a new chapter in Title 41 RCW.

PART IV

MISCELLANEOUS

NEW SECTION. Sec. 401. Captions and part headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 402. Sections 1 through 109, 111 through 115, 117 through 128, 130 through 132, 136 through 205, 301 through 317, and 401 of this act shall take effect July 1, 1994.

NEW SECTION. Sec. 403. Sections 110, 116, 129, 134, 135, 206, 319, and 406 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.

NEW SECTION. Sec. 404. Section 318 of this act shall take effect July 1, 1995.

NEW SECTION. Sec. 405. Sections 110 and 116 of this act shall expire June 30, 1994.

NEW SECTION. Sec. 406. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.