AN ACT Relating to state government; adding new sections to chapter 41.06 RCW; adding new sections to chapter 28B.16 RCW; creating a new section; 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. 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 authorized temporary exchanges or assignments.

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

(1) The state personnel board shall adopt rules under which all state agencies within its jurisdiction may enter into employee exchange or assignment 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 by benefiting from the experience or knowledge of employees of other organizations, and by giving other organizations a better understanding of the operations of state agencies. For the purposes of this section an "exchange" agreement is the temporary exchange of employees between two organizations, an "assignment" agreement is the temporary assignment of one employee to another organization, and "state employee" means each permanent employee of Washington state government, regardless of whether the employee occupies an exempt or classified position under chapter 41.06 RCW.

(2) The rules shall ensure that employee exchange and assignment agreements do not result in conflicts of interest or in persons or organizations regulated by a state agency achieving undue influence with the regulating agency or with the employees of the agency.

(3) A state agency may not enter into an employee exchange or assignment agreement unless: (a) The consent of the state employee affected 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 at least twenty days before the effective date of the action. This twenty-day provision may be waived by the personnel director.

(4) Whenever an employee is temporarily exchanged or assigned to another organization as provided for in this section, the employee shall continue to be an employee of the assigning organization for all purposes. The assigning organization shall maintain the employee on its payroll and shall continue to pay all compensation, fringe benefits, and other payroll costs, including but not limited to, salary, insurance, retirement programs, social security, industrial insurance, and unemployment compensation. All compensation and fringe benefits of a state or local government employee shall continue as if the employee was working in his or her position with the assigning organization. This subsection does not require the state or any local government to pay or reimburse an employee, or the organization receiving the employee, for any travel expenses incurred in connection with an exchange or assignment agreement with a nongovernmental organization nor does it require the state or any local government to pay or reimburse the employee or receiving organization for any overtime work performed while exchanged or assigned to a nongovernmental organization.

(5) An individual shall neither acquire nor lose any rights or benefits under any public retirement system to which the individual belonged immediately before the exchange or assignment as a result of an exchange or assignment agreement.

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 exchanged or assigned under section 2 of this act shall only be covered by this chapter and by the rules adopted under this chapter to the extent that the board finds it appropriate. Similarly, except to the extent that the board finds it appropriate, persons exchanged or assigned 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 exchanged or assigned under section 2 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 41.06 RCW to read as follows:

In developing and adopting the rules required by sections 2 and 3 of this act, the board shall work closely with the higher education personnel board under chapter 28B.16 RCW to ensure that the rules adopted will accommodate and facilitate exchange and assignment agreements between classified and exempt employees under this chapter and chapter 28B.16 RCW.

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

(1) The higher education personnel board shall adopt rules under which all institutions of higher education and related boards within its jurisdiction may enter into employee exchange or assignment 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 by benefiting from the experience or knowledge of employees of other organizations, and by giving other organizations a better understanding of the operations of institutions of higher education and related boards. For the purposes of this section an "exchange" agreement is the temporary exchange of employees between two organizations, an "assignment" agreement is the temporary assignment of one employee to another organization, and "state employee" means each permanent employee of Washington state government, regardless of whether the employee occupies an exempt position or a classified position under chapter 28B.16 RCW.

(3) An institution of higher education or related board may not enter into an employee exchange or assignment agreement unless: (a) The consent of the state employee affected 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 at least twenty days before the effective date of the action. This twenty-day provision may be waived by the personnel director.

(4) Whenever an employee is temporarily exchanged or assigned to another organization as provided for in this section, the employee shall continue to be an employee of the assigning organization for all purposes. The assigning organization shall maintain the employee on its payroll and shall continue to pay all compensation, fringe benefits, and other payroll costs, including but not limited to, salary, insurance, retirement programs, social security, industrial insurance, and unemployment compensation. All compensation and fringe benefits of an employee of an institution of higher education or related board shall continue as if the employee was working in his or her position with the assigning organization. This subsection does not require the institution of higher education or related board to pay or reimburse an employee, or the organization receiving the employee, for any travel expenses incurred in connection with an exchange or assignment agreement with a nongovernmental organization nor does it require the institution of higher education or related board to pay or reimburse the employee or receiving organization for any overtime work performed while exchanged or assigned to a nongovernmental organization.

NEW SECTION. Sec. 6. A new section is added to chapter 28B.16 RCW to read as follows:

Washington state employees who occupy positions in the classified service and who are exchanged or assigned under section 5 of this act shall only be covered by this chapter and by the rules adopted under this chapter to the extent that the board finds it appropriate. Similarly, except to the extent that the board finds it appropriate, persons exchanged or assigned 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 exchanged or assigned under section 5 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 28B.16 RCW to read as follows:

In developing and adopting the rules required by sections 5 and 6 of this act, the board shall work closely with the state personnel board under chapter 41.06 RCW so as to ensure that the rules adopted will accommodate and facilitate exchange and assignment agreements between classified and exempt employees under this chapter and chapter 41.06 RCW.

NEW SECTION. Sec. 8. 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.