BILL REQ. #:  S-0586.4 



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SENATE BILL 5405
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State of Washington62nd Legislature2011 Regular Session

By Senators Haugen, King, Sheldon, Fain, Hargrove, Becker, Prentice, Shin, and Tom

Read first time 01/24/11.   Referred to Committee on Transportation.



     AN ACT Relating to promoting efficiency in the Washington state ferry system through personnel and administration reforms; amending RCW 47.64.120, 47.64.170, 47.64.011, 47.64.210, 47.64.150, and 41.58.060; reenacting and amending RCW 47.64.090 and 41.06.070; adding a new section to chapter 47.64 RCW; creating new sections; repealing RCW 47.64.080, 47.64.200, 47.64.230, 47.64.280, 47.64.300, 47.64.310, 47.64.320, and 47.64.330; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the Washington state ferry system is a critical component of the state's highway system. The current system is financially unsustainable and the legislature intends for this act to provide guidance for efficiently managing scarce resources. The legislature recognizes that labor is one of the main cost drivers for operating the system and it is time to take on the difficult task of controlling labor costs. Furthermore, the legislature finds that ferry system management must play a strong role in improving the system and controlling costs, and this act is intended to provide the tools necessary for management to be held accountable for the performance of the system. Finally, this act intends to reign in abuses that have been brought to light and to give clear guidance so that the relationship between employees and management can move from an adversarial one to one where the focus is on improving efficiencies, customer service, and working cohesively.

Sec. 2   RCW 47.64.120 and 2010 c 283 s 10 are each amended to read as follows:
     (1) Except as otherwise provided in this chapter, the employer and ferry system employee organizations, through their collective bargaining representatives, shall meet at reasonable times to negotiate in good faith with respect to wages, hours, ((working conditions,)) and insurance, and other matters mutually agreed upon. Employer funded retirement benefits shall be provided under the public employees' retirement system under chapter 41.40 RCW and shall not be included in the scope of collective bargaining. Except as provided under RCW 47.64.270, the employer is not required to bargain over health care benefits. Any retirement system or retirement benefits shall not be subject to collective bargaining.
     (2) ((Upon ratification of bargaining agreements, ferry employees are entitled to an amount equivalent to the interest earned on retroactive compensation increases. For purposes of this section, the interest earned on retroactive compensation increases is the same monthly rate of interest that was earned on the amount of the compensation increases while held in the state treasury. The interest will be computed for each employee until the date the retroactive compensation is paid, and must be allocated in accordance with appropriation authority. The interest earned on retroactive compensation is not considered part of the ongoing compensation obligation of the state and is not compensation earnable for the purposes of chapter 41.40 RCW. Negotiations shall also include grievance procedures for resolving any questions arising under the agreement, which shall be embodied in a written agreement and signed by the parties.
     (3)
)) An agreement may not contain provisions that allow:
     (a) Overtime, standby, call out, holiday, or any other pay to be paid at a rate greater than time and one-half base pay;
     (b) Rounding of regular time, overtime, compensatory time, or any other time at greater than six minute increments;
     (c) Compensatory time to be earned at a rate greater than time and one-half;
     (d) Exchange time to be earned at a rate greater than straight time;
     (e) Entitlement to any type of compensation or penalty for other than work performed;
     (f) A guaranteed minimum shift period;
     (g) Minimum call back time or pay at a rate greater than three hours;
     (h) Penalty pay;
     (i) Provisions for parking or parking fees; or
     (j) Free passage on Washington state ferry vessels for employees or their families unless passage is for an active employee during that employee's work shift for work purposes.
     (3) Effective January 1, 2013, an employee may not have a compensatory time balance greater than two hundred forty hours. If an employee's compensatory time balance is above two hundred forty hours on the employee's employment anniversary date, the hours above two hundred forty hours must be extinguished. An employee may not receive monetary reimbursement for compensatory time.
     (4) The department shall not provide for and an agreement may not contain provisions that allow the following at a rate greater than what employees who are subject to chapter 41.80 RCW receive:
     (a) Annual vacation leave, sick leave, or personal holiday leave accruals;
     (b) Accruals of other types of leave not mentioned in this subsection;
     (c) Number of compensated holidays;
     (d) Travel time pay for commuting to and from work;
     (e) Compensation for meals; or
     (f) Provisions for take-home vehicles.
     (5) The employer shall make decisions regarding working conditions to best suit the operational needs of the state and may not bargain its own decision or the effects of a decision for any working condition other than shift bidding, scheduling leave time, and grievance procedures, provided that the grievance procedures do not expand the scope of grievances beyond the interpretation and application of terms permissible under this chapter. The employer shall not bargain over rights of management which, in addition to all powers, duties, and rights established by constitutional provision or statute, must include, but not be limited to, the following:
     (a) Assigning employees to work stations, vessels, or terminals;
     (b) Directing promotions;
     (c) Directing who will be laid off in the event of a layoff action, bumping rights, or layoff options;
     (d) Directing staffing levels; or
     (e) Providing for training.
     (6) A collective bargaining agreement may not contain any provision that extends the term of an existing collective bargaining agreement or applicability of items incompatible with this section in an existing collective bargaining agreement.
     (7)
Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages((,)) or hours((, and terms and conditions of employment)) and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail. A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.

Sec. 3   RCW 47.64.170 and 2010 c 283 s 11 are each amended to read as follows:
     (1) Any ferry employee organization certified as the bargaining representative shall be the exclusive representative of all ferry employees in the bargaining unit and shall represent all such employees fairly.
     (2) A ferry employee organization or organizations and the governor may each designate any individual as its representative to engage in collective bargaining negotiations.
     (3) Negotiating sessions, including strategy meetings of the employer or employee organizations, and mediation((, and the deliberative process of arbitrators)) are exempt from the provisions of chapter 42.30 RCW. ((Hearings conducted by arbitrators may be open to the public by mutual consent of the parties.))
     (4) Terms of any collective bargaining agreement may be enforced by civil action in Thurston county superior court upon the initiative of either party.
     (5) Ferry system employees or any employee organization shall not negotiate or attempt to negotiate directly with anyone other than the person who has been appointed or authorized a bargaining representative for the purpose of bargaining with the ferry employees or their representative.
     (6)(a) ((Within ten working days after the first Monday in September of every odd-numbered year, the parties shall attempt to agree on an interest arbitrator to be used if the parties are not successful in negotiating a comprehensive collective bargaining agreement. If the parties cannot agree on an arbitrator within the ten-day period, either party may request a list of seven arbitrators from the federal mediation and conciliation service. The parties shall select an interest arbitrator using the coin toss/alternate strike method within thirty calendar days of receipt of the list. Immediately upon selecting an interest arbitrator, the parties shall cooperate to reserve dates with the arbitrator for potential arbitration between August 1st and September 15th of the following even-numbered year. The parties shall also prepare a schedule of at least five negotiation dates for the following year, absent an agreement to the contrary. The parties shall execute a written agreement before November 1st of each odd-numbered year setting forth the name of the arbitrator and the dates reserved for bargaining and arbitration. This subsection (6)(a) imposes minimum obligations only and is not intended to define or limit a party's full, good faith bargaining obligation under other sections of this chapter.
     (b)
)) The negotiation of a proposed collective bargaining agreement by representatives of the employer and a ferry employee organization shall commence on or about February 1st of every even-numbered year.
     (((c))) (b) For negotiations covering the 2009-2011 biennium and subsequent biennia, the time periods specified in this section((,)) and ((in)) RCW 47.64.210 ((and 47.64.300 through 47.64.320,)) must ensure conclusion of all agreements on or before October 1st of the even-numbered year next preceding the biennial budget period during which the agreement should take effect. These time periods may only be altered by mutual agreement of the parties in writing. Any such agreement ((and any impasse procedures agreed to by the parties under RCW 47.64.200)) must include an agreement regarding the new time periods that will allow final resolution by negotiations ((or arbitration)) by October 1st of each even-numbered year.
     (7) It is the intent of this section that the collective bargaining agreement ((or arbitrator's award)) shall commence on July 1st of each odd-numbered year and shall terminate on June 30th of the next odd-numbered year to coincide with the ensuing biennial budget year, as defined by RCW 43.88.020(7), to the extent practical. It is further the intent of this section that all collective bargaining agreements be concluded by October 1st of the even-numbered year before the commencement of the biennial budget year during which the agreements are to be in effect. After the expiration date of a collective bargaining agreement negotiated under this chapter, all of the terms and conditions specified in the collective bargaining agreement remain in effect until the effective date of a subsequently negotiated agreement, not to exceed one year from the expiration date stated in the agreement. Thereafter, the employer may unilaterally implement according to law.
     (8) The office of financial management shall conduct a salary survey, for use in collective bargaining ((and arbitration)), which must be conducted through a contract with a firm nationally recognized in the field of human resources management consulting.
     (9)(a) The governor shall submit a request either for funds necessary to implement the collective bargaining agreements including, but not limited to, the compensation and fringe benefit provisions or for legislation necessary to implement the agreement, or both. Requests for funds necessary to implement the collective bargaining agreements shall not be submitted to the legislature by the governor unless such requests:
     (i) Have been submitted to the director of the office of financial management by October 1st before the legislative session at which the requests are to be considered; and
     (ii) Have been certified by the director of the office of financial management as being feasible financially for the state.
     (b) ((The governor shall submit a request either for funds necessary to implement the arbitration awards or for legislation necessary to implement the arbitration awards, or both. Requests for funds necessary to implement the arbitration awards shall not be submitted to the legislature by the governor unless such requests:
     (i) Have been submitted to the director of the office of financial management by October 1st before the legislative session at which the requests are to be considered; and
     (ii) Have been certified by the director of the office of financial management as being feasible financially for the state.
     (c)
)) The legislature shall approve or reject the submission of the request for funds necessary to implement the collective bargaining agreements ((or arbitration awards)) as a whole for each agreement ((or award)). The legislature shall not consider a request for funds to implement a collective bargaining agreement ((or arbitration award)) unless the request is transmitted to the legislature as part of the governor's budget document submitted under RCW 43.88.030 and 43.88.060. If the legislature rejects or fails to act on the submission, either party may reopen all or part of the agreement and award or the exclusive bargaining representative may seek to implement the procedures provided for in RCW 47.64.210 ((and 47.64.300)).
     (10) If, after the compensation and fringe benefit provisions of an agreement are approved by the legislature, a significant revenue shortfall occurs resulting in reduced appropriations, as declared by proclamation of the governor or by resolution of the legislature, both parties shall immediately enter into collective bargaining for a mutually agreed upon modification of the agreement.

NEW SECTION.  Sec. 4   A new section is added to chapter 47.64 RCW to read as follows:
     (1) Effective January 1, 2012, all captains of Washington state ferry vessels are subject to RCW 41.06.500 and may not be included in a collective bargaining unit. Salary increases for captains must be directly related to the performance of their responsibilities.
     (2) The captain, also known as the master of a vessel or the commanding officer, is the ultimate authority on and has responsibility for the entire vessel. The captain's responsibilities include, but are not limited to:
     (a) Ensuring the safe navigation of the vessel and its crew and passengers;
     (b) Following all applicable federal, state, and agency policies and regulations;
     (c) Supervising crew in performance, operations, training, security, and environmental protection; and
     (d) Overseeing all aspects of vessel operations including, but not limited to:
     (i) Schedule adherence;
     (ii) Customer service;
     (iii) Cost containment; and
     (iv) Fuel efficiency.
     (3) When a vessel has more than one captain, the senior captain has the ultimate responsibility of the vessel and the other captains of that vessel shall report to the senior captain.
     (4) Effective January 1, 2013, all chief officers and chief engineers of Washington state ferry vessels are subject to RCW 41.06.500 and may not be included in a collective bargaining unit. Salary increases for chief officers and chief engineers must be directly related to the performance of their responsibilities.
     (5) The chief officer, also known as a first mate or first officer, is the second in command of a vessel and directly assists and supports the captain in conducting operations. The chief officer's duties include, but are not limited to:
     (a) Directly supervising the crew in navigation, cleaning, training, and discipline matters;
     (b) Supervising the loading and unloading of passengers and vehicles;
     (c) Investigating accidents and safety incidents;
     (d) Following all applicable federal, state, and agency policies and regulations;
     (e) Overseeing vessel security procedures; and
     (f) Preparing and training to assume command.
     (6) The chief engineer is the engineering department head and reports directly to the captain. The chief engineer's duties include, but are not limited to:
     (a) Overseeing all aspects of engineering propulsion, electrical, and machinery components;
     (b) Ensuring safe and efficient engineering plant operations;
     (c) Advising the captain of factors affecting the vessel's operation from an engineering perspective;
     (d) Supervising the conduct of engineering watchstanders and directing work and maintenance routines;
     (e) Following federal, state, and agency policies and regulations; and
     (f) Overseeing all fueling to ensure efficient and environmentally safe operations.
     (7) With each biennial budget submittal, the department shall include recommendations for distributing any appropriations the legislature may provide for incentive pay for vessel captains, chief officers, or chief engineers.
     (8) Any employee who is a captain, chief officer, or chief engineer may not belong to a collective bargaining unit covered under this chapter for twelve months following their status as a captain, chief officer, or chief engineer.

Sec. 5   RCW 47.64.011 and 2006 c 164 s 1 are each amended to read as follows:
     As used in this chapter, unless the context otherwise requires, the definitions in this section shall apply.
     (1) "Collective bargaining representative" means the persons designated by the governor and employee organizations to be the exclusive representatives during collective bargaining negotiations.
     (2) "Commission" means the ((marine employees')) public employment relations commission created in RCW ((47.64.280)) 41.58.010.
     (3) "Department of transportation" means the department as defined in RCW 47.01.021.
     (4) "Employer" means the state of Washington.
     (5) "Ferry employee" means any employee of the marine transportation division of the department of transportation who is a member of a collective bargaining unit represented by a ferry employee organization and does not include an exempt employee pursuant to RCW 41.06.079.
     (6) "Ferry employee organization" means any labor organization recognized to represent a collective bargaining unit of ferry employees.
     (7) "Lockout" means the refusal of the employer to furnish work to ferry employees in an effort to get ferry employee organizations to make concessions during collective bargaining, grievance, or other labor relation negotiations. Curtailment of employment of ferry employees due to lack of work resulting from a strike or work stoppage shall not be considered a lockout.
     (8) "Office of financial management" means the office as created in RCW 43.41.050.
     (9) "Strike or work stoppage" means a ferry employee's refusal, in concerted action with others, to report to duty, or his or her willful absence from his or her position, or his or her stoppage or slowdown of work, or his or her abstinence in whole or in part from the full, faithful, and proper performance of the duties of employment, for the purpose of inducing, influencing, or coercing a change in conditions, compensation, rights, privileges, or obligations of his, her, or any other ferry employee's employment. A refusal, in good faith, to work under conditions which pose an endangerment to the health and safety of ferry employees or the public, as determined by the master of the vessel, shall not be considered a strike for the purposes of this chapter.

Sec. 6   RCW 47.64.210 and 2007 c 160 s 2 are each amended to read as follows:
     In the ((absence of an impasse)) event there is no agreement between the parties ((or the failure of either party to utilize its procedures)) by August 1st in the even-numbered year preceding the biennium, either party may request the commission to appoint an impartial and disinterested person to act as mediator. It is the function of the mediator to bring the parties together to effectuate a settlement of the dispute, but the mediator shall not compel the parties to agree.

Sec. 7   RCW 47.64.090 and 2003 c 373 s 3 and 2003 c 91 s 1 are each reenacted and amended to read as follows:
     (1) Except as provided in RCW 47.60.656 and subsections (2) and (4) of this section, or as provided in RCW 36.54.130 and subsection (3) of this section, if any party assumes the operation and maintenance of any ferry or ferry system by rent, lease, or charter from the department of transportation, such party shall assume and be bound by all the provisions herein and any agreement or contract for such operation of any ferry or ferry system entered into by the department shall provide that the wages to be paid, hours of employment, working conditions, and seniority rights of employees will be established by the ((marine employees')) commission in accordance with the terms and provisions of this chapter and it shall further provide that all labor disputes shall be adjudicated in accordance with chapter 47.64 RCW.
     (2) If a public transportation benefit area meeting the requirements of RCW 36.57A.200 has voter approval to operate passenger-only ferry service, it may enter into an agreement with Washington State Ferries to rent, lease, or purchase passenger-only vessels, related equipment, or terminal space for purposes of loading and unloading the passenger-only ferry. Charges for the vessels, equipment, and space must be fair market value taking into account the public benefit derived from the ferry service. A benefit area or subcontractor of that benefit area that qualifies under this subsection is not subject to the restrictions of subsection (1) of this section, but is subject to:
     (a) The terms of those collective bargaining agreements that it or its subcontractors negotiate with the exclusive bargaining representatives of its or its subcontractors' employees under chapter 41.56 RCW or the National Labor Relations Act, as applicable;
     (b) Unless otherwise prohibited by federal or state law, a requirement that the benefit area and any contract with its subcontractors, give preferential hiring to former employees of the department of transportation who separated from employment with the department because of termination of the ferry service by the state of Washington; and
     (c) Unless otherwise prohibited by federal or state law, a requirement that the benefit area and any contract with its subcontractors, on any questions concerning representation of employees for collective bargaining purposes, may be determined by conducting a cross-check comparing an employee organization's membership records or bargaining authorization cards against the employment records of the employer.
     (3) If a ferry district is formed under RCW 36.54.110 to operate passenger-only ferry service, it may enter into an agreement with Washington State Ferries to rent, lease, or purchase vessels, related equipment, or terminal space for purposes of loading and unloading the ferry. Charges for the vessels, equipment, and space must be fair market value taking into account the public benefit derived from the ferry service. A ferry district or subcontractor of that district that qualifies under this subsection is not subject to the restrictions of subsection (1) of this section, but is subject to:
     (a) The terms of those collective bargaining agreements that it or its subcontractors negotiate with the exclusive bargaining representatives of its or its subcontractors' employees under chapter 41.56 RCW or the National Labor Relations Act, as applicable;
     (b) Unless otherwise prohibited by federal or state law, a requirement that the ferry district and any contract with its subcontractors, give preferential hiring to former employees of the department of transportation who separated from employment with the department because of termination of the ferry service by the state of Washington; and
     (c) Unless otherwise prohibited by federal or state law, a requirement that the ferry district and any contract with its subcontractors, on any questions concerning representation of employees for collective bargaining purposes, may be determined by conducting a cross-check comparing an employee organization's membership records or bargaining authorization cards against the employment records of the employer.
     (4) The department of transportation shall make its terminal, dock, and pier space available to private operators of passenger-only ferries if the space can be made available without limiting the operation of car ferries operated by the department. These private operators are not bound by the provisions of subsection (1) of this section. Charges for the equipment and space must be fair market value taking into account the public benefit derived from the passenger-only ferry service.

Sec. 8   RCW 47.64.150 and 1983 c 15 s 6 are each amended to read as follows:
     An agreement with a ferry employee organization that is the exclusive representative of ferry employees in an appropriate unit may provide procedures for the consideration of ferry employee grievances and of disputes over the interpretation and application of agreements. Negotiated procedures may provide for binding arbitration of ferry employee grievances and of disputes over the interpretation and application of existing agreements. An arbitrator's decision on a grievance shall not change or amend the terms, conditions, or applications of the collective bargaining agreement. The procedures shall provide for the invoking of arbitration only ((with the approval)) by mutual agreement of the employee organization and management. The costs of arbitrators shall be shared equally by the parties.
     Ferry system employees shall follow ((either)) the grievance procedures provided in a collective bargaining agreement((, or if no such procedures are so provided, shall submit the grievances to the marine employees' commission as provided in RCW 47.64.280)).

Sec. 9   RCW 41.58.060 and 1983 c 15 s 22 are each amended to read as follows:
     For any matter concerning the state ferry system and employee relations, collective bargaining, or labor disputes or stoppages, the provisions of chapter 47.64 RCW and this chapter shall govern. However, if a conflict exists between the provisions of chapter 47.64 RCW and this chapter, the provisions of chapter 47.64 RCW shall govern.

Sec. 10   RCW 41.06.070 and 2010 c 271 s 801, 2010 c 2 s 2, and 2010 c 1 s 1 are each reenacted and amended to read as follows:
     (1) The provisions of this chapter do not apply to:
     (a) 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, joint legislative audit and review committee, statute law committee, and any interim committee of the legislature;
     (b) 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;
     (c) Officers, academic personnel, and employees of technical colleges;
     (d) The officers of the Washington state patrol;
     (e) Elective officers of the state;
     (f) The chief executive officer of each agency;
     (g) In the departments of employment security and social and health services, the director and the director's 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;
     (h) 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:
     (i) All members of such boards, commissions, or committees;
     (ii) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer: The secretary of the board, commission, or committee; the chief executive officer of the board, commission, or committee; and the confidential secretary of the chief executive officer of the board, commission, or committee;
     (iii) If the members of the board, commission, or committee serve on a full-time basis: The chief executive officer or administrative officer as designated by the board, commission, or committee; and a confidential secretary to the chair of the board, commission, or committee;
     (iv) If all members of the board, commission, or committee serve ex officio: The chief executive officer; and the confidential secretary of such chief executive officer;
     (i) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;
     (j) Assistant attorneys general;
     (k) Commissioned and enlisted personnel in the military service of the state;
     (l) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel resources board;
     (m) The public printer or to any employees of or positions in the state printing plant;
     (n) Officers and employees of the Washington state fruit commission;
     (o) Officers and employees of the Washington apple commission;
     (p) Officers and employees of the Washington state dairy products commission;
     (q) Officers and employees of the Washington tree fruit research commission;
     (r) Officers and employees of the Washington state beef commission;
     (s) Officers and employees of the Washington grain commission;
     (t) Officers and employees of any commission formed under chapter 15.66 RCW;
     (u) Officers and employees of agricultural commissions formed under chapter 15.65 RCW;
     (v) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;
     (w) 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;
     (x) 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;
     (y) ((All employees of the marine employees' commission;
     (z)
)) Staff employed by the department of commerce to administer energy policy functions;
     (((aa))) (z) The manager of the energy facility site evaluation council;
     (((bb))) (aa) A maximum of ten staff employed by the department of commerce to administer innovation and policy functions, including the three principal policy assistants exempted under (x) of this subsection;
     (((cc))) (bb) Staff employed by Washington State University to administer energy education, applied research, and technology transfer programs under RCW 43.21F.045 as provided in RCW 28B.30.900(5).
     (2) 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 of higher education and related boards, all presidents, vice presidents, and their confidential secretaries, administrative, and personal assistants; deans, directors, and chairs; 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 which 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) The governing board of each institution, and related boards, may also exempt from this chapter classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training as determined by the board: PROVIDED, That no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the board under this provision;
     (c) Printing craft employees in the department of printing at the University of Washington.
     (3) In addition to the exemptions specifically provided by this chapter, the director of personnel may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the director of personnel stating the reasons for requesting such exemptions. The director of personnel shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the 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 director of personnel shall grant the request and such determination shall be final as to any decision made before July 1, 1993. The total number of additional exemptions permitted under this subsection shall not exceed one percent of the number of employees in the classified service not including employees of institutions of higher education and related boards 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.
     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 (1)(j) through (v) ((and (y))) and (2) of this section, shall be determined by the director of personnel. Changes to the classification plan affecting exempt salaries must meet the same provisions for classified salary increases resulting from adjustments to the classification plan as outlined in RCW 41.06.152.
     From February 18, 2009, through June 30, 2011, a salary or wage increase shall not be granted to any position exempt from classification under this chapter, except that a salary or wage increase may be granted to employees pursuant to collective bargaining agreements negotiated under chapter 28B.52, 41.56, 47.64, or 41.76 RCW, or negotiated by the nonprofit corporation formed under chapter 67.40 RCW, and except that increases may be granted for positions for which the employer has demonstrated difficulty retaining qualified employees if the following conditions are met:
     (a) The salary increase can be paid within existing resources; and
     (b) The salary increase will not adversely impact the provision of client services.
     Any agency granting a salary increase from February 15, 2010, through June 30, 2011, to a position exempt from classification under this chapter shall submit a report to the fiscal committees of the legislature no later than July 31, 2011, detailing the positions for which salary increases were granted, the size of the increases, and the reasons for giving the increases.
     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.
     From February 15, 2010, until June 30, 2011, no monetary performance-based awards or incentives may be granted by the director or employers to employees covered by rules adopted under this section. This subsection does not prohibit the payment of awards provided for in chapter 41.60 RCW.

NEW SECTION.  Sec. 11   (1) The marine employees' commission is hereby abolished and its powers, duties, and functions are hereby transferred to the public employment relations commission.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the marine employees' commission 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 marine employees' commission shall be made available to the public employment relations commission. All funds, credits, or other assets held by the marine employees' commission shall be assigned to the public employment relations commission.
     (b) Any appropriations made to the marine employees' commission shall, on the effective date of this section, be transferred and credited to the public employment relations commission.
     (c) If any question arises as to the transfer of any 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.
     (3) All rules and all pending business before the marine employees' commission shall be continued and acted upon by the public employment relations commission. All existing contracts and obligations shall remain in full force and shall be performed by the public employment relations commission.
     (4) The transfer of the powers, duties, and functions of the marine employees' commission shall not affect the validity of any act performed before the effective date of this section.
     (5) If apportionments of budgeted funds are required because of the transfers directed by this section, 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. 12   The following acts or parts of acts are each repealed:
     (1) RCW 47.64.080 (Employee seniority rights) and 1984 c 7 s 341 & 1961 c 13 s 47.64.080;
     (2) RCW 47.64.200 (Impasse procedures) and 2010 c 283 s 12, 2006 c 164 s 7, & 1983 c 15 s 11;
     (3) RCW 47.64.230 (Waiver of mediation) and 2007 c 160 s 3, 2006 c 164 s 11, & 1983 c 15 s 14;
     (4) RCW 47.64.280 (Marine employees' commission) and 2010 c 283 s 14, 2006 c 164 s 18, 1984 c 287 s 95, & 1983 c 15 s 19;
     (5) RCW 47.64.300 (Interest arbitration -- Procedures) and 2007 c 160 s 4 & 2006 c 164 s 12;
     (6) RCW 47.64.310 (Interest arbitration -- Function) and 2006 c 164 s 13;
     (7) RCW 47.64.320 (Parties not bound by arbitration -- Arbitration factors) and 2010 c 283 s 15 & 2006 c 164 s 14; and
     (8) RCW 47.64.330 (Collective bargaining limitations) and 2006 c 164 s 15.

NEW SECTION.  Sec. 13   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 takes effect immediately.

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