AN ACT Relating to state government; adding new sections to chapter 41.06 RCW; adding new sections to chapter 28B.16 RCW; adding a new section to chapter 34.04 RCW; and repealing RCW 41.04.140, 41.04.150, 41.04.160, and 41.04.170.

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

NEW SECTION. Sec. 1. A new section is added to chapter 41.06 RCW to read as follows:

The legislature recognizes that in this increasingly complex and interdependent society the efficient operation of governmental and nongovernmental organizations requires understanding and cooperation between the employees of both organizations. The legislature further recognizes that many state government employees have had inadequate opportunities to acquire experience or knowledge with respect to the operations of nongovernmental organizations or of governmental organizations, other than their employing state agencies; and that, similarly, other employees have had inadequate opportunity to acquire experience or knowledge with respect to the operations of state government. Therefore, the legislature finds that the public interest and the efficient and effective operation of state government would benefit from the temporary exchanges or transfers authorized by this act.

NEW SECTION. Sec. 2. A new section is added to chapter 41.06 RCW to read as follows:

(1) The state personnel board and the higher education personnel board shall jointly adopt rules under which all state agencies within their respective jurisdictions may enter into employee exchange agreements with other governmental employers or with nongovernmental employers. These rules shall be designed to achieve efficiencies or enhance effectiveness in the operation of state government by providing employees with increased opportunities to gain relevant experience or knowledge. The rules shall be adopted by a majority vote of each board. For the purposes of this section an "exchange agreement" includes the temporary exchange of employees between two organizations or the temporary transfer of one employee from one organization to another and "state employee" means each permanent employee of Washington state government, regardless of whether the employee occupies an exempt or classified position under chapter 28B.16 or 41.06 RCW.

(2) The rules shall ensure that employee exchange agreements do not result in inappropriate conflicts of interest or do not result in permitting persons or organizations regulated by a state agency from becoming inappropriately close to the regulating agency or to the employees of the agency.

(3) A state agency may not enter into an employee exchange agreement unless: (a) The consent of the state employee to be transferred is obtained; (b) the agreement conforms to the rules adopted under this section; and (c) a copy of the agreement is filed with the personnel director for the appropriate board at least twenty days before the transfer occurs. This twenty-day provision may be waived by the applicable personnel director.

(4) Whenever a state employee is transferred to another employer as provided for in this section, the employee shall continue to be classified as a state employee for purposes of compensation and fringe benefits, including participation in state retirement systems. If a state employee is transferred to an employer other than a Washington state agency, the employee shall continue on the payroll of the agency from which the employee transferred as if the transfer had never occurred. If a nongovernmental employee is transferred to an employer that is a Washington state agency, the nongovernmental employee shall continue on the payroll of the organization from which the employee transferred as if the transfer had never occurred. This subsection does not require the state to pay or reimburse an employee for any expenses the employee incurs while transferring to or transferred to an employer other than a Washington state agency, nor does it require the state to pay the employee for any overtime work performed while transferred to an employer other than a Washington state agency.

NEW SECTION. Sec. 3. A new section is added to chapter 41.06 RCW to read as follows:

Washington state employees who occupy positions in the classified service and who are transferred under section 2 of this act shall only be covered by this chapter and by the rules adopted under it to the extent that the board finds it appropriate. Similarly, except to the extent that the board finds it appropriate, persons transferred to state agencies from organizations which are not Washington state agencies are not covered by the provisions of this chapter or by the board's rules. The board shall adopt rules specifying the extent, if any, to which the provisions of this chapter, and of the board's rules, will apply to employees transferred under section 2 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 28B.16 RCW to read as follows:

The board shall participate in the implementation of the employee exchange program created by section 2 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 28B.16 RCW to read as follows:

NEW SECTION. Sec. 6. A new section is added to chapter 34.04 RCW to read as follows:

The rules adopted under section 2 of this act shall be considered to be proposed and adopted only by the Washington state personnel board for purposes of application of any provision of this chapter.

NEW SECTION. Sec. 7. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 102, Laws of 1959 and RCW 41.04.140;

(2) Section 2, chapter 102, Laws of 1959 and RCW 41.04.150;

(3) Section 3, chapter 102, Laws of 1959 and RCW 41.04.160; and

(4) Section 4, chapter 102, Laws of 1959 and RCW 41.04.170.