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AN ACT Relating to state government; amending RCW 41.06.030, 41.06.070, 41.06.080, 41.06.140, 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, 41.06.350, 41.06.380, 41.06.400, 41.06.410, 41.06.420, 41.06.430, 41.06.450, 41.06.475, 41.06.490, 43.17.010, and 43.17.020; amending 1982 c 208 s 9 (uncodified); reenacting and amending RCW 41.06.020; adding new sections to chapter 41.06 RCW; adding a new chapter to Title 43 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, 41.06.110, 41.06.120, 41.06.130, 41.06.163, 41.06.165, 41.06.230, 41.06.240, 41.06.310, and 41.06.340; providing an effective 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 state's human resources including decentralizing the provision of personnel services, encouraging the adoption of modern management techniques.

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 150 of this act and 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. It is the intent of the legislature wherever possible to place the internal affairs of the department under the control of the director. Therefore, whenever the director's authority is not specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. The director may employ such assistants and personnel as may be 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.

NEW SECTION. Sec. 106. The department of human resources shall be subdivided into divisions. Except as otherwise specified or as federal requirements may differently require, these divisions shall be established and organized in accordance with plans to be prepared by the director and approved by the governor. In preparing such plans, the director shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions and agencies under this chapter.

NEW SECTION. Sec. 107. Any power or duty vested in or transferred to the director by law, or executive order, may be delegated by the director 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. 108. The director may appoint such 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-wide committees or councils on such subject matters as are or come within the department's responsibilities.

Members of such state advisory committees or councils may be paid their travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 109. 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. 110. 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. 111. 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, institution of higher education and related boards, 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.

(6) "Managers" or "management" 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.

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

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

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

((~~(10)~~)) (12) "Director" means the director of ((~~personnel appointed under the provisions of RCW 41.06.130~~)) human resources.

((~~(11)~~)) (13) "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.

Sec. 112. RCW 41.06.030 and 1961 c 1 s 3 are each amended to read as follows:

A department of ((~~personnel, governed by a state personnel board and~~)) human resources administered by a director of ((~~personnel~~)) human resources, is hereby established as a separate agency within the state government.

Sec. 113. 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((,)) and academic personnel((~~, and employees~~)) of state institutions of higher education, and the state board for community and technical colleges ((~~education, and the higher education personnel board~~));

(4) The officers of the Washington state patrol;

(5) Elective officers of the state;

(6) The chief executive officer of each agency;

(7) In the departments of employment security, fisheries, social and health services, the director and his 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) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

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

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

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

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

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

(10) Assistant attorneys general;

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

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

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

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

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

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

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

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

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

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

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

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

(23) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050: PROVIDED, HOWEVER, That rules ((~~and regulations~~)) adopted by the ((~~state personnel board~~)) 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) 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) 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) All employees of the marine employees' commission;

(27) 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) 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((.));

(29) The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

(a) Members of the governing board of each institution 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 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 department, 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) The governing board of each institution, and related boards, may also be exempt from this chapter, subject to the employees' right of appeal to the director, 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 (29)(d);

(30) The governor's designee for collective bargaining and any employees working for the governor's designee;

(31) 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) 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) and (29) 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. 114. 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~~)) 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. 115. 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. 116. A new section is added to chapter 41.06 RCW to read as follows:

Each institution of higher education and related boards shall designate an officer who shall perform duties as personnel officer. The personnel officer at each institution or related board shall direct, supervise, and manage administrative and technical personnel activities for the classified service at the institution or related board consistent with policies established by the institution 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 college shall have general supervision and control over activities undertaken by the various state community and technical colleges under this section.

Sec. 117. 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 shall be available to the public in the office of the director ((~~of personnel free of charge~~)).

Sec. 118. 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;

(2) Certification of names for vacancies, including departmental promotions, ((~~with the number of names equal to four more names than there are vacancies to be filled, such names representing applicants rated highest on eligibility lists: PROVIDED, That when~~)) which shall consist of the top fifteen names of the eligible register. 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)~~)) (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, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW;

((~~(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 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~~)) 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 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 persons who are or have been employed in classified positions ((~~under chapter 28B.16 RCW~~)) in the state's general government or higher education systems will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter;

((~~(22)~~)) (18) Affirmative action in appointment, promotion, transfer, layoff and 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~~)) 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.

Rules adopted pursuant to this section supersede collective bargaining agreements relative to matters covered by sections 306(2) and 307 of this act for classified employees bargaining under chapter 41.-- RCW (sections 301 through 317 of this act).

The provisions of a collective bargaining agreement covering employees of institutions of higher education that are not negotiated under RCW 41.--.--- (2) and (3) (section 204 (2) and (3) of this act) shall not prevail if in conflict with rules adopted by the director of human resources pursuant to this section.

NEW SECTION. Sec. 119. 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 department, 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. 120. RCW 41.06.160 and 1985 c 94 s 2 are each amended to read as follows:

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.))

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

After consultation with state agency heads, 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 for the appraisal of employee job performance at least annually. These procedures shall include means whereby individual agencies 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. 123. 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, 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.

(4) Any employee who feels that his or her classification should not be exempt may appeal the action to the personnel appeals board.

Sec. 124. 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. 125. 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. 126. 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. 127. 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 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. 128. 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. 129. RCW 41.06.280 and 1987 c 248 s 4 are each amended to read as follows:

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 the institutions of higher ((~~learning~~)) education which shall be charged an amount not to exceed one-half of one percent, shall be charged to the operations appropriations of each agency 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.

If employees cease to be classified under this chapter pursuant to an agreement authorized by section 204 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.

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.

Sec. 130. RCW 41.06.350 and 1969 ex.s. c 152 s 1 are each amended to read as follows:

The ((~~state personnel board~~)) director is authorized to receive federal funds now available or hereafter made available for the assistance and improvement of public personnel administration, which may be expended in addition to the department of ((~~personnel~~)) human resources service fund established by RCW 41.06.280.

Sec. 131. RCW 41.06.380 and 1979 ex.s. c 46 s 2 are each amended to read as follows:

(1) Nothing contained in this chapter shall prohibit any department, as defined in RCW 41.06.020, from purchasing services by contract with individuals or business entities if such ((services were regularly purchased by valid contract by such department prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)) purchase would be fiscally prudent and result in reduced expenditures of public funds. Decisions to contract out shall be made only after the affected agency has conducted a feasibility study determining the potential costs and benefits that would result from contracting out the work in question and the decision has been reviewed and approved by the director of financial management who shall assure that the prospective subcontractor will pay salaries and wages to its employees who will perform the contract work that are similar to those generally paid for such work in the locality in which the work is to be performed and will provide benefits that are similar to those paid state employees who would otherwise perform the work.

(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.

Sec. 132. 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. 133. 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. 134. 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. 135. 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, 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. 136. 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 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. 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.

NEW SECTION. Sec. 137. 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 related institutions and boards to reduce duplication of effort.

Sec. 138. 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 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 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. 139. 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. 140. 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. 141. 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. 142. A new section is added to chapter 41.06 RCW to read as follows:

The comprehensive system for personnel administration and collective bargaining provided for in chapter . . ., Laws of 1993 (this act) is the exclusive system for all state employees covered by this chapter. The procedures provided in this chapter or negotiated in collective bargaining agreements under RCW 41.56.030 or 41.56.100 or sections 201, 204, or 205 of this act or chapter 41.-- RCW (sections 301 through 317 of this act) provide the exclusive forums for addressing all appeals, actions, complaints, grievances, claims, and remedies related to or arising from any incident of such employee's employment, except actions under other statutes applicable to state employees, and all such actions are governed solely by this chapter, the provisions of collective bargaining agreements, or chapter 41.64 RCW.

NEW SECTION. Sec. 143. 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 except for matters relating to collective bargaining 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 under this section 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 under this section shall be assigned to the department of human resources.

Any appropriations made in connection with the powers, duties, and functions transferred under this section 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. 144. All employees other than those employees to be transferred in accordance with section 152 of this act, employed in connection with the powers, duties, and functions transferred under section 143 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. 145. All rules adopted by the state personnel board pursuant to chapter 41.06 RCW and all rules adopted by the higher education personnel board that relate to functions transferred to the department of human resources 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 under section 143 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. 146. 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. 147. If apportionments of budgeted funds are required because of the transfers directed by sections 143 through 146 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. 148. 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 department 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. 149. 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 department 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. 150. 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 July 1, 1993, shall be transferred to the personnel appeals board unless the parties thereto agree to submit the matter to an independent arbitrator for resolution of the grievance.

NEW SECTION. Sec. 151. 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 150 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 150 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 150 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 150 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. 152. All employees of the department of personnel engaged in performing the powers, functions, and duties transferred in section 150 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. 153. 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 150 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. 154. 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. 155. If apportionments of budgeted funds are required because of the transfers directed by sections 151 through 154 or 157 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. 156. All rules adopted by the state personnel board pursuant to chapter 41.06 RCW and all rules adopted by the higher education personnel board that relate to functions transferred to the public employment relations commission or the personnel appeals board pursuant to section 150 of this act shall continue in effect until acted upon by the agency assuming those functions.

NEW SECTION. Sec. 157. All business pending before the department of personnel pertaining to arbitration of grievances filed under a collective bargaining agreement existing before July 1, 1993, shall be continued and acted upon by the personnel appeals board. All existing contracts and obligations under the rules in effect at the time of the transfer shall remain in full force and shall be performed by the personnel appeals board.

NEW SECTION. Sec. 158. 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 41.06.110 and 1984 c 287 s 69 & 1982 c 10 s 8;

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

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

(44) 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;

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

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

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

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

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

NEW SECTION. Sec. 159. Sections 101 through 109 of this act shall constitute a new chapter in Title 43 RCW.

PART II

MISCELLANEOUS

NEW SECTION. Sec. 201. Part headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 202. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.

NEW SECTION. Sec. 203. 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.