AN ACT Relating to education; amending RCW 28A.58.095 and 28A.58.095; reenacting and amending RCW 41.32.010; creating new sections; providing an expiration date; 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 there is an emergent need to attract and retain more professional teachers. This need exists because of probable increasing student enrollment and the current lack of sufficient monetary rewards and career advancement available to teachers. The legislature further finds that, to improve the quality of teaching, a professional climate should be fostered which encourages creativity and cooperation among teachers and enhances the intrinsic rewards teachers experience from helping students learn. The legislature recognizes that career ladders merit scrutiny as one means of enhancing the attractiveness of the teaching profession, but that implementation of such a system raises many issues, including but not limited to, the state's constitutional obligations, its method of funding, equity among school districts, local decision-making, the effectiveness of teacher evaluation systems, and types of career ladder models. Therefore, prior to determining whether to develop a state-wide system of career ladders, a career ladder system should be tested at the local level to examine which conceptual option or options might best meet the state's educational goals, be most effective and equitable, and be the most likely to improve the teaching climate and attract and retain additional teachers.

NEW SECTION. Sec. 2. The office of the superintendent of public instruction is hereby directed to award up to one million dollars or any additional amount appropriated by the legislature in grants to local school districts in the state for career ladder pilot projects. Grant proposals selected for funding shall contain the following features:

(1) The goals and objectives of the proposed project;

(2) The classifications of employees who are eligible and the number of career levels available;

(3) Differentiated responsibilities. Such responsibilities may include, but are not limited to, planning and evaluating curriculum, conducting research, assisting beginning teachers, team teaching in one or more grade levels, developing and conducting in-service training, diagnosing learning problems, serving as model or mentor teachers, and planning and developing effective teaching or management techniques or evaluation instruments. However, any teacher who is assigned additional responsibilities shall continue to be engaged primarily in classroom instruction;

(4) Criteria for movement from level to level. Such criteria may include, but are not limited to, the acceptance of additional responsibilities, demonstrated superior teaching ability, successful performance or productivity, years of experience, completion of programs of professional preparation and development, thorough and positive evaluations, leadership ability, and diagnostic ability;

(5) Differentiated compensation or rewards for each level;

(6) The method of evaluation to be used in determining differentiated responsibilities or movement on the ladder, or both. The type of evaluation measures and the range of skills to be measured shall be identified; and

(7) The career ladder model proposed shall have been agreed to in writing by the local school board and the appropriate employee organization or organizations. No local school district may obligate the state to the continued funding, beyond completion of the pilot project, of any salary or compensation increase which may be awarded under a career ladder pilot project. Planning of each proposed project should also involve parents and citizens residing in the local school district.

In determining which career ladder proposals shall be granted funding, the office of the superintendent of public instruction shall attempt to select proposals which are innovative or which vary in how the features identified in this section are addressed. Consideration should also be given to selecting proposals submitted by districts in different geographic locations and to choosing proposals from among districts with differing staff sizes.

This section shall expire August 31, 1987.

Sec. 3. Section 2, chapter 16, Laws of 1981 as last amended by section 1, chapter 245, Laws of 1984 and RCW 28A.58.095 are each amended to read as follows:

(1) Every school district board of directors shall fix, alter, allow, and order paid salaries and compensation for all district employees. No school district board of directors may grant salary and compensation increases from any fund source whatsoever in excess of the amount and/or percentage as may be provided for employees as set forth in the state operating appropriations act in effect at the time the compensation is payable. No school district administrative group or administrative bargaining unit, or other nonbargaining unit employees as defined in RCW 41.59.020(4), and 41.56.030 may receive a total annual salary and compensation increase in excess of the amount and/or percentage as set forth in the state operating appropriations act.

(2) Increases in school district employee fringe benefit contributions by school districts shall be included for purposes of determining salary and compensation increases under this section if contributions to fringe benefits provided by a district exceed or, by virtue of the increase, will exceed the amount provided for fringe benefits in the state operating appropriations act in effect at the time the compensation is payable.

(3) For purposes of this section, salary and compensation shall not include the following:

(a) Payment for unused leave for illness or injury under RCW 28A.58.096((,));

(b) Employer contributions for the following employee fringe benefits:

(i) Old Age Survivors Insurance

(ii) Workers' Compensation

(iii) Unemployment Compensation

(iv) Retirement benefits under the Washington State Retirement System;

(c) Any salary or compensation increases awarded pursuant to a career ladder pilot project which is selected by the office of the superintendent of public instruction under section 2 of this 1985 act. Employees who are awarded additional salary or compensation increases under the project may receive salary and compensation increases in the amount or percentage established by the legislature in the state operating appropriations act in the same manner as employees who do not receive awards pursuant to the projects. Any increase in salary or compensation increases awarded by local school districts to employees participating in career ladder pilot projects shall not obligate the state to provide funding for the increases beyond the completion of the projects.

(4) Provisions of any contract in force on March 20, 1981 which conflict with requirements of this section shall continue in effect until contract expiration. After expiration, any new contract executed between the parties shall be consistent with this section.

(5) The superintendent of public instruction shall ensure compliance with this section and shall adopt rules under chapter 34.04 RCW for that purpose. The superintendent shall monitor the salary and compensation increases provided to employees and administrators by school districts.

NEW SECTION. Sec. 4. Section 3 of this act shall expire August 31, 1987.

Sec. 5. Section 2, chapter 16, Laws of 1981 as last amended by section 3 of this 1985 act and RCW 28A.58.095 are each amended to read as follows:

(3) For purposes of this section, salary and compensation shall not include the following:

(a) Payment for unused leave for illness or injury under RCW 28A.58.096;

(b) Employer contributions for the following employee fringe benefits:

(i) Old Age Survivors Insurance

(ii) Workers' Compensation

(iii) Unemployment Compensation

(iv) Retirement benefits under the Washington State Retirement System((;

NEW SECTION. Sec. 6. Section 5 of this act shall take effect September 1, 1987.

Sec. 7. Section 1, chapter 80, Laws of 1947 as last amended by section 1, chapter 5, Laws of 1984 and by section 1, chapter 256, Laws of 1984 and RCW 41.32.010 are each reenacted and amended to read as follows:

As used in this chapter, unless a different meaning is plainly required by the context:

(1) (a) "Accumulated contributions" for persons who establish membership in the retirement system on or before September 30, 1977, means the sum of all regular annuity contributions with regular interest thereon.

(b) "Accumulated contributions" for persons who establish membership in the retirement system on or after October 1, 1977, means the sum of all contributions standing to the credit of a member in the member's individual account together with the regular interest thereon.

(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest.

(3) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member.

(4) "Annuity fund" means the fund in which all of the accumulated contributions of members are held.

(5) "Annuity reserve fund" means the fund to which all accumulated contributions are transferred upon retirement.

(6) (a) "Beneficiary" for persons who establish membership in the retirement system on or before September 30, 1977, means any person in receipt of a retirement allowance or other benefit provided by this chapter.

(b) "Beneficiary" for persons who establish membership in the retirement system on or after October 1, 1977, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

(7) "Contract" means any agreement for service and compensation between a member and an employer.

(8) "Creditable service" means membership service plus prior service for which credit is allowable. This subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

(9) "Dependent" means receiving one-half or more of support from a member.

(10) "Disability allowance" means monthly payments during disability. This subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

(11) (a) (i) "Earnable compensation" for persons who establish membership in the retirement system on or before September 30, 1977, means all salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year. In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money: PROVIDED, That retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit: PROVIDED FURTHER, That if a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee. In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years.

(ii) For members employed less than full time under written contract with a school district in an instructional position, for which the member receives service credit of less than one year in both of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, earnable compensation means the compensation the member would have received in the same position if employed on a regular full-time basis for the same contract period. For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent in preparation for and in classroom instruction. Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit.

(b) "Earnable compensation" for persons who establish membership in the retirement system on or after October 1, 1977, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, as reported by the employer on the wage and tax statement submitted to the federal internal revenue service, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b) and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay: PROVIDED, That any salary or compensation increases awarded pursuant to a career ladder pilot project under section 2 of this 1985 act is not earnable compensation: PROVIDED FURTHER, That retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit: PROVIDED FURTHER, That in any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of:

(i) the earnable compensation the member would have received had such member not served in the legislature; or

(ii) such member's actual earnable compensation received for teaching and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under subparagraph (i) of this subsection is greater than compensation earnable under subparagraph (ii) of this subsection shall be paid by the member for both member and employer contributions.

(12) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid.

(13) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year.

(14) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended.

(15) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended.

(16) "Member" means any teacher included in the membership of the retirement system. Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the annuity fund.

(17) "Membership service" means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system: PROVIDED, That where a member is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service is rendered. The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

(18) "Pension" means the moneys payable per year during life from the pension reserve fund.

(19) "Pension reserve fund" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid.

(20) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable. The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

(21) "Prior service contributions" means contributions made by a member to secure credit for prior service. The provisions of this subsection shall apply only to persons who establish membership in the retirement system on or before September 30, 1977.

(22) "Public school" means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof employing teachers, except the University of Washington and Washington State University.

(23) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the annuity fund. This subsection shall apply only to persons establishing membership in the retirement system on or before September 30, 1977.

(24) "Regular interest" means such rate as the director may determine.

(25) (a) "Retirement allowance" for persons who establish membership in the retirement system on or before September 30, 1977, means the sum of annuity and pension or any optional benefits payable in lieu thereof.

(b) "Retirement allowance" for persons who establish membership in the retirement system on or after October 1, 1977, means monthly payments to a retiree or beneficiary as provided in this chapter.

(26) "Retirement system" means the Washington state teachers' retirement system.

(27) (a) "Service" means the time during which a member has been employed by an employer for compensation: PROVIDED, That where a member is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service is rendered.

(b) "Service" for persons who establish membership in the retirement system on or after October 1, 1977, means periods of employment by a member for one or more employers for which earnable compensation is earned for ninety or more hours per calendar month. Members shall receive twelve months of service for each contract year or school year of employment.

Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive service credit for the time spent in a state elective position by making the required member contributions.

When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered.

Notwithstanding RCW 41.32.240, teachers covered by RCW 41.32.755 through 41.32.825, who render service need not serve for ninety days to obtain membership so long as the required contribution is submitted for such ninety-day period. Where a member did not receive service credit under RCW 41.32.775 through 41.32.825 due to the ninety-day period in RCW 41.32.240 the member may receive service credit for that period so long as the required contribution is submitted for the period. Anyone entering membership on or after October 1, 1977, and prior to July 1, 1979, shall have until June 30, 1980, to make the required contribution in one lump sum.

(28) "Survivors' benefit fund" means the fund from which survivor benefits are paid to dependents of deceased members. This subsection shall apply only to persons establishing membership in the retirement system on or before September 30, 1977.

(29) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature.

(30) "Average final compensation" for persons who establish membership in the retirement system on or after October 1, 1977, means the member's average earnable compensation of the highest consecutive sixty months of service prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation.

(31) "Retiree" for persons who establish membership in the retirement system on or after October 1, 1977, means any member in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

(32) "Department" means the department of retirement systems created in chapter 41.50 RCW.

(33) "Director" means the director of the department.

(34) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

(35) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

(36) "Retirement board" means the director of retirement systems.

NEW SECTION. Sec. 8. The office of the superintendent of public instruction shall create a select commission on career ladders. The commission shall be composed of persons representative of classroom teachers, lay citizens, superintendents, local school board members, principals, professional educators in teacher preparation programs in institutions of higher education, the state board of education, and the office of the superintendent of public instruction. The office of the superintendent of public instruction shall provide the necessary staff support for the commission. The commission shall cease to exist at the close of the regular session of the legislature in 1988.

The select commission on career ladders shall evaluate pilot projects selected by the office of the superintendent of public instruction under section 2 of this act and shall conduct a study and prepare recommendations on a comprehensive system for evaluating educational employees. The study shall include a review of the effectiveness of the pilot projects and the current evaluation system for all educational employees. The study shall particularly examine the use of the evaluation system in conjunction with career ladders and consideration shall be given to the use of team evaluation models utilizing teachers, administrators, and parents within or without the school; the uses of formative and summative approaches to evaluation; the number of evaluation sessions; whether evaluation measures should reflect productivity, performance, or professional competence; and the range of skills which could be measured. The study shall also examine the feasibility and advisability of whether to implement a state-wide career ladder system or provide for locally diverse systems in light of the state's constitutional obligations, its methods of funding, equity among school districts, and the state's policy of encouraging local decision-making.

The office of the superintendent of public instruction shall submit an initial report to the governor and legislature by January 1, 1987, and a final report by January 1, 1988, on the commission's findings and recommendations.

NEW SECTION. Sec. 9. Implementation of this act is subject to funds being appropriated or available for such purpose or purposes.

NEW SECTION. Sec. 10. Sections 1, 2, 3, 7, 8, and 9 of this act are necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 11. 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.