HOUSE BILL REPORT

HB 1375

BYRepresentatives Unsoeld, Allen, Belcher, Miller, Jacobsen, Anderson, Wineberry and Holm

Establishing a leave contribution program for state employees.

House Committe on State Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives H. Sommers, Chair; Anderson, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Peery, Taylor and Walk.

House Staff:Ken Conte (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT JANUARY 28, 1988

BACKGROUND:

Federal Leave Sharing Program.  The concept of leave sharing first received national recognition in 1987 when congress authorized an experimental program in which federal employees could donate accrued annual leave or sick leave to another employee of the same agency suffering from a personal emergency.  This experimental program was limited to three individual cases of personal emergency.

The three cases authorized under the experimental program were selected by the federal Office of Personnel Management from over 240 applications.  Selections were based upon 1) an evaluation of how severe a hardship existed, 2) an evaluation of the extent to which the use of donated leave would minimize the individual's financial loss, and 3) geographic locations and grade levels.

Last month, the experimental program was extended until September 30, 1988.  In addition to the extension, the program was 1) expanded to allow leave to be transferred to any federal employee meeting personal emergency criteria and 2) limited to the transfer of only annual leave.

Alaska and Connecticut.  Most state employees in both Alaska and Connecticut are covered by collective bargaining agreements.  In both states, these agreements can and do include provisions allowing members of a bargaining unit to donate leave to another member in need.

In both states, the specific leave sharing program varies from contract to contract.  Very little information is available from Alaska, however, some of the key requirements of leave sharing agreements in Connecticut are as follows:  1) leave donations are limited to annual and personal leave (no sick leave) and to cases of long term illness or injury, and 2) the employee receiving leave must have exhausted all of his or her own leave and must be on leave without pay status.

City of Alexandria, Virginia.  Alexandria, Virginia has a shared leave program that operates in a slightly different manner.  Alexandria has established a "leave bank" into which employees can donate annual leave on a quarterly basis (no sick leave donations).  The leave bank is used only for catastrophic illnesses, and determinations regarding who will or will not receive leave are made by a review board on a case by case basis.  Three employees have used leave from the leave bank in the last three years.  The bank currently has over 3,000 hours available for use.

SUMMARY:

SUBSTITUTE BILL:  Leave Contribution Program.  The Washington State Leave Contribution Program is created.  The State Personnel Board and the Higher Education Personnel Board are required to adopt joint rules establishing parameters on the program and providing for the administration of the program.  The rules adopted by the Boards apply to all employees eligible to participate in the program.

Agency heads are given the discretionary authority to permit state employees to receive annual leave or sick leave from other state employees.  Agency heads have the discretionary authority to transfer leave, at the employee's request, to another employee.  Leave may be transferred from employees of one agency to employees of the same agency or, with the approval of the heads of both agencies, to an employee of another agency.

Employees may participate in the leave contribution program only if they are entitled to accrue annual leave and sick leave and if accurate records of their accrued leave are maintained.  The program does not apply to school district employees.

Limitations On Receiving Contributed Leave.  The following limitations are placed on receiving contributed leave:

            othe employee or a relative or household member must be suffering from a severe or extraordinary illness or injury which has caused or is likely to cause the employee to 1) go on leave without pay status or 2) terminate state employment;

            othe employee's absence and use of contributed leave must be justified;

            othe employee must have diligently attempted to accrue sick leave;

            othe employee must have depleted or will shortly deplete his or her annual and sick leave reserves; and

            othe employee must have diligently attempted and been found to be ineligible for Workers Compensation benefits.

The agency head is to determine the amount of leave that an employee may receive, however, it can not exceed a total of 261 days.  Unused leave is to be returned to the donors on a pro rata basis.

Limitations On Donating Leave.  The following limitations are placed on transferring contributed leave to another employee:

            oleave may only be transferred to a specific employee who has been authorized by the agency head to receive such leave;

            oany amount of annual leave may be transferred;

            othe transfer of sick leave is limited to that which has been accrued in excess of 60 days; and

            oleave is to be transferred at the rate of pay of the employee transferring the leave.

Salary, Wages, Benefits and FTE's.  Employees on contributed leave are to continue to be classified as state employees and are to receive the same treatment in regards to salary, wages, and employee benefits as they would normally receive while on accrued annual leave or sick leave.

Salary and wages are to be paid by the agency employing the person receiving the leave and, where two agencies are involved, the appropriate transfers of leave and funds are to be made.  Funds shall not be transferred if the transfer would violate any Constitutional or statutory restrictions relating to such transfers.  The Office of Financial Management may adjust an agency's appropriation authority if necessary in order for the agency to spend funds transferred under this program.  If any questions arise regarding the transfer of funds or adjustments to an agency's allocation authority, the Director of Financial Management is to make the determination.

Transferred leave can not be used to calculate an agency's allocation of full time equivalent staff positions.

The Leave Contribution Program is scheduled for sunset review and possible termination on June 30, 1992.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The bill is clarified to indicate the intent that it apply only to cases of severe or extraordinary illness or injury and that the agency head has the discretionary authority to permit leave to be transferred or received.  An employee is not eligible to receive leave under this program unless the employee has diligently pursued and been found to be ineligible to receive Worker's Compensation benefits.  Funds transferred from one agency to another agency are to be transferred at the rate of pay of the transferring employee.  Funds may not be transferred under this program if doing so would violate any constitutional or statutory restrictions on such transfers.

The Office of Financial Management is authorized to adjust an agency's appropriation authority if necessary in order to allow an agency to spend funds transferred under this program.  Any questions regarding the transfer of funds or adjustments of appropriation authority are to be resolved by the Director of Financial Management.  The personnel boards are to adopt joint rules which shall apply to all employees eligible to participate in the program.  The program does not apply to school district employees.  The Leave Contribution Program is scheduled for sunset review by June 30, 1992.

Fiscal Note:      Requested January 28, 1988.

House Committee ‑ Testified For:    Representative Jolene Unsoeld, prime sponsor; Gary Moore, Washington Federation of State Employees; and Eugene St. John, Washington Public Employees Association (testified for bill, with concerns).

House Committee - Testified Against:      Larry Lael, State Board for Community College Education.

House Committee - Testimony For:    This is a humanitarian proposal designed to help people who are having serious, catastrophic problems; it will apply to very few cases.  It is best to leave the specific rules to the personnel boards.  This bill has many safeguards such as voluntary participation.  Employees themselves are the best enforcers; they won't give leave to employees who will abuse it.  WPEA supports the concept but would prefer a more general authorization with details worked out through collective bargaining.

House Committee - Testimony Against:      In concept, this is a good idea but this bill creates a cumbersome and expensive program.  Cashing out the leave and giving the cash to the needy people would be much simpler.