S-2042

AN ACT Relating to improvement of the state's human resource systems; amending RCW 41.06.030, 41.06.070, 41.06.080, 41.06.120, 41.06.130, 41.06.140, 41.06.150, 41.06.160, 41.06.163, 41.06.167, 41.06.169, 41.06.170, 41.06.280, 41.06.350, 41.06.400, 41.06.420, 41.06.430, 41.64.090, 43.03.028, 28B.16.090, 28B.16.100, and 28B.16.110; reenacting and amending RCW 41.06.020 and 28B.16.020; adding new sections to chapter 41.06 RCW; adding new sections to chapter 28B.16 RCW; decodifying RCW 41.06.230, 41.06.240, and 41.06.310; and providing an effective date.

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

Sec. 1. RCW 41.06.020 and 1985 c 461 s 1 and 1985 c 365 s 3 are each reenacted and amended to read as follows:

Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.

(1) "Agency" means an office, department, board, commission, or other separate unit or division, however designated, of the state government and all personnel thereof; it includes any unit of state government established by law, the executive officer or members of which are either elected or appointed, upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature.

(2) "Board" means the state personnel board established under the provisions of RCW 41.06.110, except that this definition does not apply to the words "board" or "boards" when used in RCW 41.06.070.

(3) "Classified service" means all positions in the state service subject to the provisions of this chapter.

(4) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment.

(5) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions.

(6) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required.

(7) "Department" means ((an agency of government that has as its governing officer a person, or combination of persons such as a commission, board, or council, by law empowered to operate the agency responsible either to (a) no other public officer or (b) the governor)) the department of personnel and human resources.

(8) "Career development" means the progressive development of employee capabilities to facilitate productivity, job satisfaction, and upward mobility through work assignments as well as education and training that are both state-sponsored and are achieved by individual employee efforts, all of which shall be consistent with the needs and obligations of the state and its agencies.

(9) "Training" means activities designed to develop job-related knowledge and skills of employees.

(10) "Director" means the director of personnel and human resources appointed under the provisions of RCW 41.06.130.

(11) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system.

(12) "Manager" or "management" means an employee who: (a) Directs and controls program operations and is accountable for allocation of resources and program results; or (b) is primarily responsible for participating in selecting and training staff, planning and assigning work, evaluating performance, and taking corrective action, and who exercises individual judgment in the management or supervision of other employees that is not of a routine nature; or (c) has substantial responsibility for the formulation of basic agency or executive policy; or (d) has substantial responsibility in an agency for carrying out functions relating to personnel or labor relations, legislative relations, or public information.

Sec. 2. RCW 41.06.030 and 1961 c 1 s 3 are each amended to read as follows:

A department of personnel and human resources, governed by a state personnel board and administered by a director of personnel and human resources, is hereby established as a separate agency within the state government.

Sec. 3. RCW 41.06.070 and 1990 c 60 s 101 are each amended to read as follows:

The provisions of this chapter do not apply to:

(1) 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, legislative budget committee, statute law committee, and any interim committee of the legislature;

(2) 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;

(3) Officers, academic personnel, and employees of state institutions of higher education, the state board for community college education, and the higher education personnel board;

(4) The officers of the Washington state patrol;

(5) Elective officers of the state;

(6) The chief executive officer of each agency;

(7) In the departments of employment security, fisheries, social and health services, the director and his confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his confidential secretary, and his statutory assistant directors;

(8) 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:

(a) All members of such boards, commissions, or committees;

(b) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer: (i) The secretary of the board, commission, or committee; (ii) the chief executive officer of the board, commission, or committee; and (iii) the confidential secretary of the chief executive officer of the board, commission, or committee;

(c) If the members of the board, commission, or committee serve on a full-time basis: (i) The chief executive officer or administrative officer as designated by the board, commission, or committee; and (ii) a confidential secretary to the chairman of the board, commission, or committee;

(d) If all members of the board, commission, or committee serve ex officio: (i) The chief executive officer; and (ii) the confidential secretary of such chief executive officer;

(9) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

(10) Assistant attorneys general;

(11) Commissioned and enlisted personnel in the military service of the state;

(12) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the state personnel board or the board having jurisdiction;

(13) The public printer or to any employees of or positions in the state printing plant;

(14) Officers and employees of the Washington state fruit commission;

(15) Officers and employees of the Washington state apple advertising commission;

(16) Officers and employees of the Washington state dairy products commission;

(17) Officers and employees of the Washington tree fruit research commission;

(18) Officers and employees of the Washington state beef commission;

(19) Officers and employees of any commission formed under the provisions of chapter 191, Laws of 1955, and chapter 15.66 RCW;

(20) Officers and employees of the state wheat commission formed under the provisions of chapter 87, Laws of 1961 (chapter 15.63 RCW);

(21) Officers and employees of agricultural commissions formed under the provisions of chapter 256, Laws of 1961 (chapter 15.65 RCW);

(22) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

(23) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050: PROVIDED, HOWEVER, That rules and regulations adopted by the state personnel board pursuant to RCW 41.06.150 regarding the basis for, and procedures to be followed for, the dismissal, suspension, or demotion of an employee, and appeals therefrom shall be fully applicable to liquor vendors except those part time agency vendors employed by the liquor control board when, in addition to the sale of liquor for the state, they sell goods, wares, merchandise, or services as a self-sustaining private retail business;

(24) 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;

(25) 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;

(26) All employees of the marine employees' commission;

(27) Up to a total of five senior staff positions of the western library network under chapter 27.26 RCW responsible for formulating policy or for directing program management of a major administrative unit. This subsection shall expire on June 30, 1997;

(28) In addition to the exemptions specifically provided by this chapter, the state personnel board may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the personnel board stating the reasons for requesting such exemptions. The personnel board shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the board 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 personnel board shall grant the request and such determination shall be final. The total number of additional exemptions permitted under this subsection shall not exceed one hundred eighty-seven 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 state personnel board shall report to each regular session of the legislature during an odd-numbered year all exemptions granted under subsections (24), (25), and (28) of this section, together with the reasons for such exemptions.

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 (10) through (22) of this section, shall be determined by the ((~~state personnel board~~)) director.

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.

Sec. 4. RCW 41.06.080 and 1970 ex.s. c 12 s 2 are each amended to read as follows:

Notwithstanding the provisions of this chapter, the department ((~~of personnel~~)) may make its services available on request, on a reimbursable basis, to:

(1) Either the legislative or the judicial branch of the state government;

(2) Any county, city, town, or other municipal subdivision of the state;

(3) The institutions of higher learning;

(4) Any agency, class, or position set forth in RCW 41.06.070.

Sec. 5. RCW 41.06.120 and 1981 c 311 s 17 are each amended to read as follows:

(1) In the necessary conduct of its work, the board shall meet monthly unless there is no pending business requiring board action and may hold hearings, such hearings to be called by (a) the chairman of the board, or (b) a majority of the members of the board. An official notice of the calling of the hearing shall be filed with the secretary, and all members shall be notified of the hearing within a reasonable period of time prior to its convening.

(2) No release of material or statement of findings shall be made except with the approval of a majority of the board;

(3) In the conduct of hearings or investigations, a member of the board ((or)), the director ((~~of personnel~~)), or the hearing officer, may administer oaths.

Sec. 6. RCW 41.06.130 and 1982 1st ex.s. c 53 s 3 are each amended to read as follows:

The office of director of personnel and human resources is hereby established.

(1) ((Within ninety days after December 8, 1960, a director of personnel shall be appointed. The merit system director then serving under RCW 50.12.030, whose position is terminated by this chapter, may serve as director of personnel hereunder until a permanent director of personnel is appointed as herein provided, and may be appointed as director of personnel by the governor alone; or the governor may fill the position in the manner hereinafter provided for subsequent vacancies therein on the basis of competitive examination, in conformance with board rules for competitive examinations, for which examinations the merit system director is eligible.

~~(2)~~)) The director of personnel shall be appointed by the governor from a list of three names submitted to him by the board with its recommendations. The names on such list shall be those of the three standing highest upon competitive examination conducted by a committee of three persons appointed by the board solely for that purpose whenever the position is vacant. Only persons with substantial experience in the field of personnel management are eligible to take such examination.

((~~(3)~~)) (2) The director of personnel is removable for cause by the governor with the approval of a majority of the board or by a majority of the board.

((~~(4)~~)) (3) The requirements of subsections (1) and (2) of this section for the appointment and removal of the director apply only to appointments made before July 1, 1992.

(4) For any appointment to the position of director made after June 30, 1992, the following requirements apply:

(a) The governor shall appoint the director with the approval of a majority of the board and with the consent of the senate. The director shall have substantial experience in the field of personnel management;

(b) The director is removable by the governor with the approval of a majority of the board.

(5) The director ((~~of personnel~~)) shall direct and supervise all the ((~~department of personnel's~~)) department's administrative and technical activities in accordance with ((~~the provisions of~~)) this chapter and the rules ((~~and regulations approved and promulgated thereunder. He~~)) adopted under it. The director shall prepare for consideration by the board proposed rules ((~~and regulations~~)) required ((by)) to be adopted by the board under this chapter. ((~~His salary shall be fixed by the board~~)) The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. The director shall adopt rules pursuant to chapter 34.05 RCW that are required to be adopted by the director under this chapter.

((~~(5)~~)) (6) The director ((~~of personnel~~)) may delegate to any agency the authority to perform administrative and technical personnel activities if the agency requests such authority and the director ((~~of personnel~~)) is satisfied that the agency has the personnel management capabilities to effectively perform the delegated activities. The director ((~~of personnel~~)) shall prescribe standards and guidelines for the performance of delegated activities. If the director ((~~of personnel~~)) determines that an agency is not performing delegated activities within the prescribed standards and guidelines, the director shall withdraw the authority from the agency to perform such activities.

(7) After consultation with state agencies and employee organizations, the board, notwithstanding any other provisions of this chapter, shall by rule establish procedures that permit the director to approve all uncontested personnel actions except for adoption of rules and comprehensive and trend salary survey results.

Sec. 7. RCW 41.06.140 and 1961 c 1 s 14 are each amended to read as follows:

((~~It shall be the duty of~~)) The board ((to)) shall make rules ((~~and regulations~~)) providing for employee participation in the development and administration of personnel policies required to be adopted by the board. To assure this right, personnel policies, rules, classification and pay plans, and amendments thereto except as provided in RCW 41.06.130(7), shall be acted on only after the board has given twenty days notice to, and considered proposals from, employee representatives and agencies affected. Complete and current compilations of all rules ((~~and regulations~~)) of the board in printed, mimeographed, or multigraphed form shall be available to the public in the office of the director ((~~of personnel~~)) free of charge.

Sec. 8. RCW 41.06.150 and 1990 c 60 s 103 are each amended to read as follows:

The board shall adopt rules, consistent with the purposes and provisions of this chapter, ((~~as now or hereafter amended,~~)) and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

(1) The reduction, dismissal, suspension, or demotion of an employee;

(2) Certification of names for vacancies, including departmental promotions, with the number of names equal to four more names than there are vacancies to be filled, such names representing applicants rated highest on eligibility lists: PROVIDED, That when other applicants have scores equal to the lowest score among the names certified, their names shall also be certified;

(3) Examinations for all positions in the competitive and noncompetitive service;

(4) Appointments;

(5) Training and career development;

(6) Probationary periods of six to twelve months and rejections therein, depending on the job requirements of the class, except that entry level state park rangers shall serve a probationary period of twelve months;

(7) Transfers;

(8) Sick leaves and vacations;

(9) Hours of work;

(10) Layoffs when necessary and subsequent reemployment, both according to seniority. However, for reemployment, if the position to be filled is one that has been approved in advance by the director as requiring specialized qualifications, the most senior person on the layoff list who has the specialized qualifications shall be certified. If no person on the layoff list has the specialized qualifications, certification shall be in accordance with subsection (2) of this section;

(11) Determination of appropriate bargaining units within any agency: PROVIDED, That in making such determination the board shall consider the duties, skills, and working conditions of the employees, the history of collective bargaining by the employees and their bargaining representatives, the extent of organization among the employees, and the desires of the employees;

(12) Certification and decertification of exclusive bargaining representatives: PROVIDED, That after certification of an exclusive bargaining representative and upon the representative's request, the director shall hold an election among employees in a bargaining unit to determine by a majority whether to require as a condition of employment membership in the certified exclusive bargaining representative on or after the thirtieth day following the beginning of employment or the date of such election, whichever is the later, and the failure of an employee to comply with such a condition of employment constitutes cause for dismissal: PROVIDED FURTHER, That no more often than once in each twelve-month period after expiration of twelve months following the date of the original election in a bargaining unit and upon petition of thirty percent of the members of a bargaining unit the director shall hold an election to determine whether a majority wish to rescind such condition of employment: PROVIDED FURTHER, That for purposes of this clause, membership in the certified exclusive bargaining representative is satisfied by the payment of monthly or other periodic dues and does not require payment of initiation, reinstatement, or any other fees or fines and includes full and complete membership rights: AND PROVIDED FURTHER, That in order to safeguard the right of nonassociation of public employees, based on bona fide religious tenets or teachings of a church or religious body of which such public employee is a member, such public employee shall pay to the union, for purposes within the program of the union as designated by such employee that would be in harmony with his or her individual conscience, an amount of money equivalent to regular union dues minus any included monthly premiums for union-sponsored insurance programs, and such employee shall not be a member of the union but is entitled to all the representation rights of a union member;

(13) Agreements between agencies and certified exclusive bargaining representatives providing for grievance procedures and collective negotiations on all personnel matters over which the appointing authority of the appropriate bargaining unit of such agency may lawfully exercise discretion;

(14) Written agreements may contain provisions for payroll deductions of employee organization dues upon authorization by the employee member and for the cancellation of such payroll deduction by the filing of a proper prior notice by the employee with the appointing authority and the employee organization: PROVIDED, That nothing contained herein permits or grants to any employee the right to strike or refuse to perform his or her official duties;

(15) Adoption and revision of a comprehensive classification plan for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position;

(16) Allocation and reallocation of positions within the classification plan;

(17) Adoption and revision of a state salary schedule to reflect the prevailing rates in Washington state private industries and other governmental units but the rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 41.06.155, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW;

(18) Increment increases within the series of steps for each pay grade based on length of service for all employees whose standards of performance are such as to permit them to retain job status in the classified service;

(19) Providing for veteran's preference as required by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and their widows by giving such eligible veterans and their widows additional credit in computing their seniority by adding to their unbroken state service, as defined by the board, the veteran's service in the military not to exceed five years. For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given: PROVIDED, HOWEVER, That the widow of a veteran is entitled to the benefits of this section regardless of the veteran's length of active military service: PROVIDED FURTHER, That for the purposes of this section "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month;

(20) Permitting agency heads to delegate the authority to appoint, reduce, dismiss, suspend, or demote employees within their agencies if such agency heads do not have specific statutory authority to so delegate: PROVIDED, That the board may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

(21) Assuring persons who are or have been employed in classified positions under chapter 28B.16 RCW will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter;

(22) Affirmative action in appointment, promotion, transfer, recruitment, training, and career development; development and implementation of affirmative action goals and timetables; and monitoring of progress against those goals and timetables.

The board shall consult with the human rights commission in the development of rules pertaining to affirmative action. The department of personnel shall transmit a report annually to the human rights commission which states the progress each state agency has made in meeting affirmative action goals and timetables.

Sec. 9. RCW 41.06.160 and 1985 c 94 s 2 are each amended to read as follows:

In preparing classification and salary schedules as set forth in RCW 41.06.150 ((~~as now or hereafter amended~~)) and section 19 of this act the department ((~~of personnel~~)) shall give full consideration to prevailing rates in other public employment and in private employment in this state. For this purpose the department shall undertake comprehensive salary and fringe benefit surveys to be planned and conducted on a joint basis with the higher education personnel board, with such surveys to be conducted in the year prior to the convening of every other one hundred five day regular session of the state legislature. In the year prior to the convening of each one hundred five day regular session during which a comprehensive salary and fringe benefit survey is not conducted, the department shall plan and conduct on a joint basis with the higher education personnel board a trend salary and fringe benefit survey. This survey shall measure average salary and fringe benefit movement for broad occupational groups which has occurred since the last comprehensive salary and fringe benefit survey was conducted. The results of each comprehensive and trend salary and fringe benefit survey shall be completed and forwarded by September 30 with a recommended state salary schedule to the governor and director of financial management for their use in preparing budgets to be submitted to the succeeding legislature. A copy of the data and supporting documentation shall be furnished by the department of personnel to the standing committees for appropriations of the senate and house of representatives.

In the case of comprehensive salary and fringe benefit surveys, the department shall furnish the following supplementary data in support of its recommended salary schedule:

(1) A total dollar figure which reflects the recommended increase or decrease in state salaries as a direct result of the specific salary and fringe benefit survey that has been conducted and which is categorized to indicate what portion of the increase or decrease is represented by salary survey data and what portion is represented by fringe benefit survey data;

(2) An additional total dollar figure which reflects the impact of recommended increases or decreases to state salaries based on other factors rather than directly on prevailing rate data obtained through the survey process and which is categorized to indicate the sources of the requests for deviation from prevailing rates and the reasons for the changes;

(3) A list of class codes and titles indicating recommended monthly salary ranges for all state classes under the control of the department of personnel with:

(a) Those salary ranges which do not substantially conform to the prevailing rates developed from the salary and fringe benefit survey distinctly marked and an explanation of the reason for the deviation included; and

(b) Those ((~~department of personnel~~)) classes which are substantially the same as classes being used by the higher education personnel board clearly marked to show the commonality of the classes between the two jurisdictions;

(4) A supplemental salary schedule which indicates the additional salary to be paid state employees for hazardous duties or other considerations requiring extra compensation under specific circumstances. Additional compensation for these circumstances shall not be included in the basic salary schedule but shall be maintained as a separate pay schedule for purposes of full disclosure and visibility; and

(5) A supplemental salary schedule which indicates those cases where the board determines that prevailing rates do not provide similar salaries for positions that require or impose similar responsibilities, judgment, knowledge, skills, and working conditions. This supplementary salary schedule shall contain proposed salary adjustments necessary to eliminate any such dissimilarities in compensation. Additional compensation needed to eliminate such salary dissimilarities shall not be included in the basic salary schedule but shall be maintained as a separate salary schedule for purposes of full disclosure and visibility.

It is the intention of the legislature that requests for funds to support recommendations for salary deviations from the prevailing rate survey data shall be kept to a minimum, and that the requests be fully documented when forwarded by the department ((~~of personnel~~)). Further, it is the intention of the legislature that the department ((~~of personnel~~)) and the higher education personnel board jointly determine job classes which are substantially common to both jurisdictions and that basic salaries for these job classes shall be equal based on salary and fringe benefit survey findings.

Salary and fringe benefit survey information collected from private employers which identifies a specific employer with the salary and fringe benefit rates which that employer pays to its employees shall not be subject to public disclosure under chapter 42.17 RCW.

The first comprehensive salary and fringe benefit survey required by this section shall be completed and forwarded to the governor and the director of financial management by September 30, 1986. The first trend salary and fringe benefit survey required by this section shall be completed and forwarded to the governor and the director of financial management by September 30, 1988.

Sec. 10. RCW 41.06.163 and 1987 c 185 s 9 are each amended to read as follows:

(1) In the conduct of salary and fringe benefit surveys under RCW 41.06.160 as now or hereafter amended, it is the intention of the legislature that the surveys be undertaken in a manner consistent with statistically accurate sampling techniques. For this purpose, a comprehensive salary and fringe benefit survey plan shall be submitted to the director of financial management, employee organizations, and the standing committees for appropriations of the senate and house of representatives six months before the beginning of each periodic survey required before regular legislative sessions. This comprehensive plan shall include but not be limited to the following:

(a) A complete explanation of the technical, statistical process to be used in the salary and fringe benefit survey including the percentage of accuracy expected from the planned statistical sample chosen for the survey and a definition of the term "prevailing rates" which is to be used in the planned survey;

(b) A comprehensive salary and fringe benefit survey model based on scientific statistical principles which:

(i) Encompasses the interrelationships among the various elements of the survey sample including sources of salary and fringe benefit data by organization type, size, and regional location;

(ii) Is representative of private and public employment in this state;

(iii) Ensures that, wherever practical, data from smaller, private firms are included and proportionally weighted in the survey sample; and

(iv) Indicates the methodology to be used in application of survey data to job classes used by state government;

(c) A prediction of the increase or decrease in total funding requirements expected to result from the pending salary and fringe benefit survey based on consumer price index information and other available trend data pertaining to Washington state salaries and fringe benefits.

(2) Every comprehensive survey plan shall fully consider fringe benefits as an element of compensation in addition to basic salary data. The plans prepared under this section shall be developed jointly by the department ((~~of personnel~~)) in conjunction with the higher education personnel board established under chapter 28B.16 RCW. All comprehensive salary and fringe benefit survey plans shall be submitted on a joint signature basis by the department ((~~of personnel~~)) and the higher education personnel board.

(3) Interim or special surveys conducted under RCW 41.06.160 as now or hereafter amended shall conform when possible to the statistical techniques and principles developed for regular periodic surveys under this section.

(4) The term "fringe benefits" as used in this section and in conjunction with salary surveys shall include but not be limited to compensation for:

(a) Leave time, including vacation, holiday, civil, and personal leave;

(b) Employer retirement contributions;

(c) Health and insurance payments, including life, accident, and health insurance, workers' compensation, and sick leave; and

(d) Stock options, bonuses, and purchase discounts where appropriate.

Sec. 11. RCW 41.06.167 and 1986 c 158 s 7 are each amended to read as follows:

The department ((~~of personnel~~)) shall undertake comprehensive salary and fringe benefit surveys for officers of the Washington state patrol, with such surveys to be conducted in the year prior to the convening of every other one hundred five day regular session of the state legislature. In the year prior to the convening of each one hundred five day regular session during which a comprehensive salary and fringe benefit survey is not conducted, the department shall conduct a trend salary and fringe benefit survey. This survey shall measure average salary and fringe benefit movement which has occurred since the last comprehensive salary and fringe benefit survey was conducted. The results of each comprehensive and trend survey shall be completed and forwarded by September 30, after review and concurrence by the chief of the Washington state patrol, to the governor and director of financial management for their use in preparing budgets to be submitted to the succeeding legislature. A copy of the data and supporting documentation shall be furnished by the department of personnel to the standing committees for appropriations of the senate and house of representatives. The office of financial management shall analyze the survey results and conduct investigations which may be necessary to arbitrate differences between interested parties regarding the accuracy of collected survey data and the use of such data for salary adjustment.

Surveys conducted by the department ((~~of personnel~~)) for the Washington state patrol shall be undertaken in a manner consistent with statistically accurate sampling techniques, including comparisons of weighted averages of salaries. This service performed by the department ((~~of personnel~~)) shall be on a reimbursable basis in accordance with the provisions of RCW 41.06.080 ((~~as now existing or hereafter amended~~)).

A comprehensive salary and fringe benefits survey plan shall be submitted jointly by the department ((~~of personnel~~)) and the Washington state patrol to the director of financial management, the committee on ways and means of the senate, and the committee on appropriations of the house of representatives six months before the beginning of each periodic survey.

Sec. 12. RCW 41.06.169 and 1985 c 461 s 3 are each amended to read as follows:

After consultation with state agency heads, employee organizations, and other interested parties, the ((~~state personnel~~)) director shall develop standardized employee performance evaluation procedures and forms which shall be used by state agencies for the appraisal of employee job performance at least annually. These procedures shall include means whereby individual agencies may supplement the standardized evaluation process with special performance factors peculiar to specific organizational needs. Performance evaluation procedures shall place primary emphasis on recording how well the employee has contributed to efficiency, effectiveness, and economy in fulfilling state agency and job objectives.

Sec. 13. RCW 41.06.170 and 1981 c 311 s 19 are each amended to read as follows:

(1) The board, in the ((~~promulgation~~)) adoption of rules ((~~and regulations~~)) governing suspensions for cause, shall not authorize an appointing authority to suspend an employee for more than fifteen calendar days as a single penalty or more than thirty calendar days in any one calendar year as an accumulation of several penalties. The board shall require that the appointing authority give written notice to the employee not later than one day after the suspension takes effect, stating the reasons for and the duration thereof. The authority shall file a copy of the notice with the director of personnel.

(2) Any employee who is reduced, dismissed, suspended, or demoted, after completing his probationary period of service as provided by the rules ((~~and regulations~~)) of the board or the director, or any employee who is adversely affected by a violation of the state civil service law, chapter 41.06 RCW, ((~~as now or hereafter amended,~~)) or rules ((~~promulgated~~)) adopted pursuant thereto, shall have the right to appeal to the personnel appeals board created by RCW 41.64.010 not later than thirty days after the effective date of such action. The employee shall be furnished with specified charges in writing when a reduction, dismissal, suspension, or demotion action is taken. Such appeal shall be in writing.

(3) An employee incumbent in a position at the time of its allocation or reallocation, or the agency utilizing the position, may appeal the allocation or reallocation to the personnel appeals board created by RCW 41.64.010. Notice of such appeal must be filed in writing within thirty days of the action from which appeal is taken.

Sec. 14. RCW 41.06.280 and 1987 c 248 s 4 are each amended to read as follows:

There is hereby created a fund within the state treasury, designated as the "Department of Personnel and Human Resources Service Fund," referred to in this section as "the fund," to be used by the ((~~board~~)) director as a revolving fund for the payment of salaries, wages, and operations required for the administration of the provisions of this chapter, applicable provisions of chapter 41.04 RCW, and chapter 41.60 RCW. An amount not to exceed one percent of the approved allotments of salaries and wages for all positions in the classified service in each of the agencies subject to this chapter, except the institutions of higher learning, shall be charged to the operations appropriations of each agency and credited to the ((~~department of personnel service~~)) fund as the allotments are approved pursuant to chapter 43.88 RCW. Subject to the above limitations, the amount shall be charged against the allotments pro rata, at a rate to be fixed by the director from time to time which, together with income derived from services rendered under RCW 41.06.080, will provide the department with funds to meet its anticipated expenditures during the allotment period.

The director ((~~of personnel~~)) shall fix the terms and charges for services rendered by the department ((~~of personnel~~)) pursuant to RCW 41.06.080, which amounts shall be credited to the ((~~department of personnel service~~)) fund and charged against the proper fund or appropriation of the recipient of such services on a quarterly basis. Payment for services so rendered under RCW 41.06.080 shall be made on a quarterly basis to the state treasurer and deposited by ((~~him~~)) the treasurer in the ((~~department of personnel service~~)) fund.

Moneys from the ((~~department of personnel service~~)) fund shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the ((~~board~~)) director.

Sec. 15. RCW 41.06.350 and 1969 ex.s. c 152 s 1 are each amended to read as follows:

The ((~~state personnel board is authorized to~~)) director may receive federal funds now available or hereafter made available for the assistance and improvement of public personnel administration, which may be expended in addition to the ((~~department of personnel service~~)) fund established by RCW 41.06.280.

Sec. 16. RCW 41.06.400 and 1980 c 118 s 4 are each amended to read as follows:

(1) In addition to other powers and duties specified in this chapter, the board shall, by rule, prescribe the purpose and minimum standards for training and career development programs and, in so doing, regularly consult with and consider the needs of individual agencies and employees.

(2) In addition to other powers and duties specified in this chapter, the director shall:

(a) Provide for the evaluation of training and career development programs and plans of agencies based on minimum standards established by the board. The director shall report the results of such evaluations to the agency which is the subject of the evaluation;

(b) Provide training and career development programs which may be conducted more efficiently and economically on an interagency basis;

(d) Monitor and review the impact of training and career development programs to ensure that the responsibilities of the state to provide equal employment opportunities are diligently carried out. The director shall report to the board the impact of training and career development programs on the fulfillment of such responsibilities.

(3) At an agency's request, the director may provide training and career development programs for an agency's internal use which may be conducted more efficiently and economically by the department of personnel.

(4) The director may provide career development services that: (a) Assist in the establishment of mentorship programs for state employees; (b) provide a clearinghouse for information on successful public and private sector career development programs; (c) offer instruction and resource materials on test taking, writing resumes, interviewing, and other career skills; and (d) provide career counseling. These services shall be made available to employees of higher education institutions as authorized by RCW 41.06.080.

Sec. 17. RCW 41.06.420 and 1980 c 118 s 6 are each amended to read as follows:

(1) The ((~~board, by rule,~~)) director shall prescribe the conditions under which an employee appointed to a supervisory or management position after June 12, 1980, shall be required to successfully complete an entry-level management training course ((~~as approved by the director~~)). The training course shall focus on the critical knowledge, skills, and abilities for successful management performance and include instruction on managing and valuing diversity in the workplace. Such training shall not be required of any employee who has completed a management training course prior to the employee's appointment which is, in the judgment of the director, at least equivalent to the entry-level course required by this section.

(2) The ((~~board~~)) director, by rule, shall establish procedures for the suspension of the entry-level training requirement in cases where the ability of an agency to perform its responsibilities is adversely affected, or for the waiver of this requirement in cases where a person has demonstrated experience as a substitute for training.

(3) Agencies subject to the provisions of this chapter, in accordance with rules prescribed by the ((~~board~~)) director, shall designate individual positions, or groups of positions, as being "supervisory" or "management" positions. Such designations shall be subject to review by the director as part of the director's evaluation of training and career development programs prescribed by RCW 41.06.400(2).

Sec. 18. RCW 41.06.430 and 1990 c 60 s 102 are each amended to read as follows:

(1) The ((~~board~~)) director, by rule, shall, after consultation with agency heads, develop a career executive program which recognizes the profession of management and recognizes excellence in managerial skills in order to (a) identify, attract, and retain highly qualified executive candidates, (b) provide outstanding employees a broad opportunity for career development, and (c) provide for the mobility of such employees among agencies, it being to the advantage of the state to make the most beneficial use of individual managerial skills. The career executive program is a part of the Washington management service.

(2) ((To accomplish the purposes of subsection (1) of this section, the board, notwithstanding any other provision of this chapter, may provide policies and standards for recruitment, appointment, examination, training, probation, employment register control, certification, classification, salary administration, transfer, promotion, reemployment, conditions of employment, and separation separate from procedures established for other employment.)) To the extent practicable, rules adopted for the career executive program shall be consistent with rules established for the Washington management service in section 19 of this act.

(3) The director, in consultation with affected agencies, shall ((~~recommend to the board~~)) determine the classified positions which may be filled by participants in the career executive program. Upon the request of an agency, management positions that are exempt from the state civil service law pursuant to RCW 41.06.070 may be included in all or any part of the career executive program: PROVIDED, That an agency may at any time, after providing written notice to the ((~~board~~)) director, withdraw an exempt position from the career executive program. No employee may be placed in the career executive program without the employee's consent.

(4) The number of employees participating in the career executive program shall not exceed two percent of the employees subject to the provisions of this chapter.

(5) The director shall monitor and review the impact of the career executive program to ensure that the responsibilities of the state to provide equal employment opportunities are diligently carried out. The director shall report to the board the impact of the career executive program on the fulfillment of such responsibilities.

(6) Any classified state employee, upon entering a position in the career executive program, shall be entitled subsequently to revert to any class or position previously held with permanent status, or, if such position is not available, revert to a position similar in nature and salary to the position previously held.

NEW SECTION. Sec. 19. A new section is added to chapter 41.06 RCW to read as follows:

(1) The Washington management service is created. The purpose of the management service is to strive for excellence in the management of the state's resources, attract and retain qualified managers, and establish a management identity in state government through separate personnel rules that are unique to the responsibilities of management employees.

(2) Notwithstanding any other provisions of this chapter, the director, after consultation with state agencies and employee organizations, shall adopt personnel rules for the classified members of the management service. These rules shall govern recruitment, appointment, classification and allocation of positions, examination, training and career development, hours of work, probation, certification, compensation, transfer, affirmative action, promotion, layoff, reemployment, performance appraisals, discipline, and other personnel practices. These rules shall be separate from rules established for other employees. In developing rules for the management service, the director shall consult with the higher education personnel board to achieve consistency, where appropriate, with rules adopted under section 33 of this act.

(3) In establishing rules for the management service, the director shall adhere to the following goals:

(a) To develop a simplified classification system that facilitates movement of managers between agencies and promotes upward mobility;

(b) To create a compensation system consistent with the policy set forth in RCW 41.06.150(17). The system shall provide agency flexibility in setting and changing salaries and allow incentives for outstanding performance;

(c) To establish a performance appraisal system that emphasizes individual accountability for program results and efficient management of resources; effective planning, organization, and communication skills; valuing and managing workplace diversity; development of leadership and interpersonal abilities; and employee development;

(d) To strengthen management training and career development programs that build critical management knowledge, skills, and abilities; focus on managing and valuing workplace diversity; and enhance mobility and career advancement opportunities;

(e) To permit flexible recruitment and hiring procedures that enable agencies to compete effectively with other employers, both public and private, for managers with appropriate skills and training; allow consideration of all qualified candidates for positions in the management service; and achieve affirmative action goals and diversity in the workplace; and

(f) To provide that members of the classified management service may only be reduced, dismissed, suspended, or demoted for cause.

(4) After consultation with, or upon the request of, agency heads, the director shall determine which classified management positions shall be included in the Washington management service. Persons occupying those positions on the effective date of this act may voluntarily become members of the management service or they may retain their current civil service status for not more than three years, after which time they will be subject to rules governing the management service. Persons appointed to vacant positions in the management service shall be members of the management service and be subject to the rules specified in this section. Career executive positions are included in the management service.

NEW SECTION. Sec. 20. A new section is added to chapter 41.06 RCW to read as follows:

(1) The legislature recognizes that:

(a) The labor market and the state government work force are becoming increasingly diverse in terms of gender, race, ethnicity, age, and the presence of disabilities.

(b) The state's personnel and management systems must be responsive to these fundamental changes in work force composition.

It is therefore the policy of the state to create an organizational culture in state government that respects and values individual differences and encourages the productive potential of every employee.

(2) To implement this policy, the department shall:

(a) In consultation with agencies, review civil service rules and related agency policies to ensure that they support the state's policy of valuing and managing diversity in the workplace;

(b) In consultation with agencies, institutions of higher education, and related boards, develop model policies, procedures, and technical information to be made available to such entities for the support of workplace diversity programs, including, but not limited to:

(i) Voluntary mentorship programs;

(ii) Alternative testing practices for persons of disability where deemed appropriate;

(iii) Career counseling;

(iv) Training opportunities, including management and employee awareness and skills training, English as a second language, and individual tutoring;

(v) Recruitment strategies;

(vi) Management performance appraisal techniques that focus on valuing and managing diversity in the workplace; and

(vii) Alternative work arrangements.

(3) The department shall coordinate implementation of this section with the office of financial management, the higher education personnel board, and related institutions and boards to reduce duplication of effort.

NEW SECTION. Sec. 21. A new section is added to chapter 41.06 RCW to read as follows:

(1) The college career entry program is created. The purpose of the program is to: (a) Recognize the value of higher education in a state government work environment that is characterized by rapid change and increasing technology demands; (b) enable state agencies to compete effectively with other employers for qualified job applicants who have undergraduate and graduate degrees; (c) attract degree recipients to careers in state government; and (d) encourage and support student internship and fellowship programs.

(2) To implement the college career entry program, the director, after consultation with state agencies and employee organizations, shall adopt rules for recruitment and appointment of qualified undergraduate and graduate degree candidates or recipients. Notwithstanding any other provisions of this chapter, the rules shall be separate from other rules governing recruitment announcements, examinations, and employment registers. The rules shall be designed to permit agencies to make timely and firm employment offers in a competitive recruitment environment.

(3) The college career entry program applies only to job classifications established at the entry professional level of a career series for which an undergraduate college degree without experience is one of the eligibility requirements, or at the advanced levels within a career series for which a graduate degree without experience is one of the eligibility requirements. Agency directors shall determine the positions to be included in the program. The number of appointments under the program shall not exceed twenty-five percent of the number of such vacant positions in each participating agency in any fiscal biennium.

(4) Persons appointed to student intern or executive fellowship positions, upon completion of their undergraduate or graduate degrees, are eligible to be appointed to positions under this program, as determined by the employing agency.

(5) A classified employee appointed to a college career entry program position has the same rights and benefits as other classified employees.

(6) The director shall monitor and review the college career entry program to ensure compliance with the requirements of this chapter and with state policies and goals for affirmative action and workplace diversity.

NEW SECTION. Sec. 22. A new section is added to chapter 41.06 RCW to read as follows:

(1) The legislature recognizes that the state as an employer must have the capacity to compete effectively with other employers for the attraction and retention of qualified job candidates who possess scarce and highly sought-after skills. The purpose of this section is to provide agencies with recruitment and appointment flexibility to attract and employ qualified applicants for designated hard-to-fill positions. For purposes of this section, "hard-to-fill position" or "positions" means positions where there are documented shortages of qualified applicants and where there is evidence that good-faith recruitment efforts have failed to fill vacant positions.

(2) With the approval of the director of personnel and human resources, agency directors may designate hard-to-fill positions. The director, after consultation with state agencies and employee organizations, shall adopt rules for the recruitment and appointment of hard-to-fill positions. Notwithstanding any other provisions of this chapter, these rules shall be separate from other rules governing recruitment announcements, examinations, and employment registers. The rules shall be designed to permit agencies to make timely and firm employment offers in a competitive recruitment environment.

(3) To assist agencies in attracting and retaining qualified applicants for hard-to-fill positions, agencies may provide recruitment and retention incentives, including salary adjustments for positions in a geographic area, interview expenses, and job relocation assistance, including paid leave. The provision of incentives is subject to prior approval by the office of financial management of an agency's plan for the incentives. Salary adjustments for positions in a geographic area are also subject to review and approval by the director.

Sec. 23. RCW 41.64.090 and 1981 c 311 s 10 are each amended to read as follows:

The board shall have jurisdiction to decide appeals ((~~filed on or after July 1, 1981,~~)) of employees ((~~under the jurisdiction of the state personnel board~~)) pursuant to RCW 41.06.170((~~, as now or hereafter amended~~)).

Sec. 24. RCW 43.03.028 and 1988 c 167 s 9 are each amended to read as follows:

(1) There is hereby created a state committee on agency officials' salaries to consist of seven members, or their designees, as follows: The president of the University of Puget Sound; the chairperson of the council of presidents of the state's four-year institutions of higher education; the chairperson of the State Personnel Board; the president of the Association of Washington Business; the president of the Pacific Northwest Personnel Managers' Association; the president of the Washington State Bar Association; and the president of the Washington State Labor Council. If any of the titles or positions mentioned in this subsection are changed or abolished, any person occupying an equivalent or like position shall be qualified for appointment by the governor to membership upon the committee.

(2) The committee shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:

The arts commission; the human rights commission; the board of accountancy; the board of pharmacy; the capitol historical association and museum; the eastern Washington historical society; the Washington state historical society; the interagency committee for outdoor recreation; the criminal justice training commission; ((~~the department of personnel;~~)) the state finance committee; the state library; the traffic safety commission; the horse racing commission; the advisory council on vocational education; the public disclosure commission; ((~~the hospital commission;~~)) the state conservation commission; the commission on Hispanic affairs; the commission on Asian-American affairs; the state board for volunteer ((~~firemen~~)) fire fighters; the transportation improvement board; the public ((~~employees~~)) employment relations commission; the forest practices appeals board; and the energy facilities site evaluation council.

The committee shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.

(3) Committee members shall be reimbursed by the department of personnel for travel expenses under RCW 43.03.050 and 43.03.060.

Sec. 25. RCW 28B.16.020 and 1985 c 461 s 8 and 1985 c 365 s 2 are each reenacted and amended to read as follows:

Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.

(1) "Institutions of higher education" are the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges;

(2) "Board" means the higher education personnel board established under the provisions of RCW 28B.16.060;

(3) "Related boards" means the state board for community college education and the higher education personnel board; and such other boards, councils and commissions related to higher education as may be established;

(4) "Classified service" means all positions at the institutions of higher education subject to the provisions of this chapter;

(5) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions;

(6) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment;

(7) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required;

(8) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system;

(9) "Manager" or "management" means an employee who: (a) Directs and controls program operations and is accountable for allocation of resources and program results; or (b) is primarily responsible for participating in selecting and training staff, planning and assigning work, evaluating performance, and taking corrective action, and who exercises individual judgment in the management or supervision of other employees that is not of a routine nature; or (c) has substantial responsibility in an institution or related board for the formulation of basic institution or executive policy; or (d) has substantial responsibility in an institution or related board for carrying out functions relating to personnel or labor relations, legislative relations, or public information.

Sec. 26. RCW 28B.16.090 and 1969 ex.s. c 36 s 9 are each amended to read as follows:

It shall be the duty of the personnel board to promulgate rules and regulations providing for employee participation in the development and administration of personnel policies. To assure this right, personnel policies, rules, classification and pay plans, and amendments thereto, except as provided in section 29 of this act, shall be acted on only after the board has given twenty days' notice to, and considered proposals from, employee representatives and institutions or related boards affected. In matters involving the various state community colleges, notice shall also be given to the state board for community college education. Complete and current compilations of all rules and regulations of the board in printed, mimeographed, or multigraphed form shall be available from the board without charge.

Sec. 27. RCW 28B.16.100 and 1990 c 60 s 202 are each amended to read as follows:

The higher education personnel board shall adopt rules, consistent with the purposes and provisions of this chapter and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

(1) The dismissal, suspension, or demotion of an employee, and appeals therefrom;

(2) Certification of names for vacancies, including promotions, with the number of names equal to four more names than there are vacancies to be filled, such names representing applicants rated highest on eligibility lists: PROVIDED, That when other applicants have scores equal to the lowest score among the names certified, their names shall also be certified;

(3) Examination for all positions in the competitive and noncompetitive service;

(4) Appointments;

(5) Probationary periods of six to twelve months and rejections therein, depending on the job requirements of the class;

(6) Transfers;

(7) Sick leaves and vacations;

(8) Hours of work;

(9) Layoffs when necessary and subsequent reemployment, both according to seniority. However, for reemployment, if the position to be filled is one that has been approved in advance by the director of the higher education personnel board as requiring specialized qualifications, the most senior person on the layoff list who has the specialized qualifications shall be certified. If no person on the layoff list has the specialized qualifications, certification shall be in accordance with subsection (2) of this section;

(10) Determination of appropriate bargaining units within any institution or related boards: PROVIDED, That in making such determination the board shall consider the duties, skills, and working conditions of the employees, the history of collective bargaining by the employees and their bargaining representatives, the extent of organization among the employees, and the desires of the employees;

(11) Certification and decertification of exclusive bargaining representatives: PROVIDED, That after certification of an exclusive bargaining representative and upon the representative's request, the director shall hold an election among employees in a bargaining unit to determine by a majority whether to require as a condition of employment membership in the certified exclusive bargaining representative on or after the thirtieth day following the beginning of employment or the date of such election, whichever is the later, and the failure of an employee to comply with such condition of employment constitutes cause for dismissal: PROVIDED FURTHER, That no more often than once in each twelve-month period after expiration of twelve months following the date of the original election in a bargaining unit and upon petition of thirty percent of the members of a bargaining unit the director shall hold an election to determine whether a majority wish to rescind such condition of employment: PROVIDED FURTHER, That for purposes of this clause, membership in the certified exclusive bargaining representative is satisfied by the payment of monthly or other periodic dues and does not require payment of initiation, reinstatement, or any other fees or fines and includes full and complete membership rights: AND PROVIDED FURTHER, That in order to safeguard the right of nonassociation of public employees, based on bona fide religious tenets or teachings of a church or religious body of which such public employee is a member, such public employee shall pay to the union, for purposes within the program of the union as designated by such employee that would be in harmony with his individual conscience, an amount of money equivalent to regular union dues minus any included monthly premiums for union-sponsored insurance programs, and such employee shall not be a member of the union but is entitled to all the representation rights of a union member;

(12) Agreements between institutions or related boards and certified exclusive bargaining representatives providing for grievance procedures and collective negotiations on all personnel matters over which the institution or the related board may lawfully exercise discretion;

(13) Written agreements may contain provisions for payroll deductions of employee organization dues upon authorization by the employee member and for the cancellation of such payroll deduction by the filing of a proper prior notice by the employee with the institution and the employee organization: PROVIDED, That nothing contained herein permits or grants to any employee the right to strike or refuse to perform his official duties;

(14) Adoption and revision of comprehensive classification plans for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position;

(15) Allocation and reallocation of positions within the classification plan;

(16) Adoption and revision of salary schedules and compensation plans which reflect the prevailing rates in Washington state private industries and other governmental units for positions of a similar nature but the rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 28B.16.116 and which shall be competitive in the state or the locality in which the institution or related boards are located, such adoption, revision, and implementation subject to approval as to availability of funds by the director of financial management in accordance with the provisions of chapter 43.88 RCW, and after consultation with the chief financial officer of each institution or related board for that institution or board, or in the case of community colleges, by the chief financial officer of the state board for community college education for the various community colleges;

(17) Training programs including in-service, promotional, and supervisory;

(19) Providing for veteran's preference as provided by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and their widows by giving such eligible veterans and their widows additional credit in computing their seniority by adding to their unbroken higher education service, as defined by the board, the veteran's service in the military not to exceed five years of such service. For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service, has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given: PROVIDED, HOWEVER, That the widow of a veteran is entitled to the benefits of this section regardless of the veteran's length of active military service: PROVIDED FURTHER, That for the purposes of this section "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month;

(20) Assuring that persons who are or have been employed in classified positions under chapter 41.06 RCW will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter; ((~~and~~))

(21) Assuring that any person who is or has been employed in a classified position under this chapter will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions at any other institution of higher education or related board((.)); and

The board shall consult with the human rights commission in the development of rules consistent with federal guidelines pertaining to affirmative action. The board shall transmit a report annually to the human rights commission which states the progress each institution of higher education has made in meeting affirmative action goals and timetables.

Sec. 28. RCW 28B.16.110 and 1985 c 94 s 1 are each amended to read as follows:

The salary schedules and compensation plans, adopted and revised as provided in RCW 28B.16.100 ((~~as now or hereafter amended~~)) and section 33 of this act, shall reflect prevailing rates in other public employment and in private employment in this state or in the locality in which the institution or related board is located. For this purpose comprehensive salary and fringe benefit surveys shall be undertaken by the board with the assistance of the various personnel officers of the institutions of higher education and on a joint basis with the department of personnel, with such surveys to be conducted in the year prior to the convening of every other one hundred five day regular session of the state legislature. In the year prior to the convening of each one hundred five day regular session during which a comprehensive salary and fringe benefit survey is not conducted, the board with assistance of the various personnel officers of the institutions of higher education and on a joint basis with the department of personnel, shall conduct a trend salary and fringe benefit survey. This survey shall measure average salary and fringe benefit movement for broad occupational groups which has occurred since the last comprehensive salary and fringe benefit survey was conducted. The results of each comprehensive and trend salary and fringe benefit survey shall be completed and forwarded by September 30 with recommended salary adjustments, which recommendations shall be advisory only, to the governor and the director of financial management for their use in preparing budgets to be submitted to the succeeding legislature. A copy of the data and supporting documentation shall be furnished by the board to the standing committees for appropriations of the senate and house of representatives.

In the case of comprehensive salary and fringe benefit surveys, the board shall furnish the following supplementary data in support of its recommended salary schedule:

(3) A list of class codes and titles indicating recommended monthly salary ranges for all state classes under the control of the higher education personnel board with:

(b) Those higher education personnel board classes which are substantially the same as classes being used by the department of personnel clearly marked to show the commonality of the classes between the two jurisdictions;

It is the intention of the legislature that requests for funds to support recommendations for salary deviations from the prevailing rate survey data shall be kept to a minimum, and that the requests be fully documented when forwarded by the board. Further, it is the intention of the legislature that the department of personnel and the higher education personnel board jointly determine job classes which are substantially common to both jurisdictions and that basic salaries for these job classes shall be equal based on salary and fringe benefit survey findings.

NEW SECTION. Sec. 29. A new section is added to chapter 28B.16 RCW to read as follows:

After consultation with institutions of higher education, related boards, and employee organizations, the board, notwithstanding any other provisions of this chapter, shall by rule establish procedures that permit the director of the higher education personnel board to approve all uncontested personnel actions except for adoption of rules and comprehensive and trend salary survey results.

NEW SECTION. Sec. 30. A new section is added to chapter 28B.16 RCW to read as follows:

(1) The legislature recognizes that:

(a) The labor market and the state government work force are becoming increasingly diverse in terms of gender, race, ethnicity, age, and the presence of disabilities;

(b) The state's personnel and management systems must be responsive to these fundamental changes in work force composition.

(2) To implement this policy, the personnel director of the higher education personnel board, with the cooperation of institutions and related boards, shall review civil service rules and related institutional policies to ensure that they support the state's policy of valuing and managing diversity in the workplace.

NEW SECTION. Sec. 31. A new section is added to chapter 28B.16 RCW to read as follows:

(1) The college career entry program is created. The purpose of the program is to: (a) Recognize the value of higher education in a state government work environment that is characterized by rapid change and increasing technology demands; (b) enable institutions of higher education and related boards to compete effectively with other employers for qualified job applicants who have undergraduate and graduate degrees; (c) attract degree recipients to careers in state government; and (d) encourage and support student internship and fellowship programs.

(2) To implement the college career entry program, the higher education personnel board, after consultation with institutions, related boards, and employee organizations, shall adopt rules for recruitment and appointment of qualified undergraduate and graduate degree candidates and recipients. Notwithstanding any other provisions of this chapter, the rules shall be separate from other rules governing recruitment announcements, examinations, and employment registers. The rules shall be designed to permit institutions and related boards to make timely and firm employment offers in a competitive recruitment environment.

(3) The college career entry program applies only to job classifications established at the entry professional level of a career series for which an undergraduate college degree without experience is one of the eligibility requirements, or at the advanced levels within a career series for which a graduate degree without experience is one of the eligibility requirements. Institutions and related boards shall determine the positions to be included in the program. The number of appointments under the program shall not exceed twenty-five percent of the number of such vacant positions in each participating institution and related board in any fiscal biennium.

(5) A classified employee appointed to a college career entry program position has the same rights and benefits as other classified employees.

(6) The director of the higher education personnel board shall monitor and review the college career entry program to ensure compliance with the requirements of this chapter and with state policies and goals for affirmative action and workplace diversity.

NEW SECTION. Sec. 32. A new section is added to chapter 28B.16 RCW to read as follows:

(1) The legislature recognizes that the state as an employer must have the capacity to compete effectively with other employers for the attraction and retention of qualified job candidates who possess scarce and highly sought-after skills. The purpose of this section is to provide institutions of higher education and related boards with recruitment and appointment flexibility to attract and employ qualified applicants for designated hard-to-fill positions. For purposes of this section, "hard-to-fill position" or "positions" means positions where there are documented shortages of qualified applicants and where there is evidence that good-faith recruitment efforts have failed to fill vacant positions.

(2) With the approval of the personnel director of the higher education personnel board, institutions and related boards may designate hard-to-fill positions. The board, after consultation with institutions of higher education and related boards and employee organizations, shall adopt rules for the recruitment and appointment of hard-to-fill positions. Notwithstanding any other provisions of this chapter, the rules shall be separate from other rules governing recruitment announcements, examinations, and employment registers. The rules shall be designed to permit institutions and related boards to make timely and firm employment offers in a competitive recruitment environment.

(3) To assist institutions in attracting and retaining qualified applicants for hard-to-fill positions, institutions and related boards may provide recruitment and retention incentives, including salary adjustments for positions in a geographic area, interview expenses, and job relocation assistance, including paid leave. The provision of incentives is subject to prior approval by the office of financial management of an institution's or related board's plan for the incentives.

NEW SECTION. Sec. 33. A new section is added to chapter 28B.16 RCW to read as follows:

(2) Notwithstanding any other provision of this chapter, the board, after consultation with the institutions of higher education and related boards and employee organizations, shall adopt personnel rules for the classified members of the management service. These rules shall govern recruitment, appointment, classification and allocation of positions, examination, training and career development, hours of work, probation, certification, compensation, transfer, promotion, layoff, reemployment, performance appraisals, discipline, and other personnel practices. These rules shall be separate from rules established for other employees. In developing rules for the management service, the board shall consult with the director of the department of personnel and human resources to achieve consistency, where appropriate, with rules adopted under section 19 of this act.

(3) In establishing rules for the management service, the board shall adhere to the following goals:

(a) To develop a simplified classification system that facilitates movement of managers between institutions and related boards and promotes upward mobility;

(b) To create a compensation system consistent with the policy set forth in RCW 28B.16.100(16). Such system shall provide institutional flexibility in setting and changing salaries and allow incentives for outstanding performance;

(d) To strengthen management training and career development programs that build critical management knowledge, skills and abilities; focus on managing and valuing workplace diversity; and enhance mobility and career advancement opportunities;

(e) To permit flexible recruitment and hiring procedures that enable institutions and related boards to compete effectively with other employers, both public and private, for managers with appropriate skills and training; allow consideration of all qualified candidates for positions in the management service; and achieve affirmative action goals and diversity in the workplace; and

(f) To provide that members of the classified management service may only be reduced, dismissed, suspended, or demoted for cause.

(4) After consultation with, or upon request of, the institutions of higher education and related boards, the board shall determine which classified management positions shall be included in the Washington management service. Persons occupying such positions on the effective date of this act may voluntarily become members of the management service or they may retain their current civil service status for not more than three years, after which time they will be subject to rules governing the management service. Persons appointed to vacant positions in the management service shall be members of the management service and be subject to the rules specified in this section.

NEW SECTION. Sec. 34. The following sections are each decodified:

(1) RCW 41.06.230;

(2) RCW 41.06.240; and

(3) RCW 41.06.310.

NEW SECTION. Sec. 35. 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.

NEW SECTION. Sec. 36. This act shall take effect on July 1, 1992. However, rules required under this act may be adopted before that date.