S-4083.1                   _______________________________________________

 

                                                     SENATE BILL 6222

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1994 Regular Session

 

By Senators Fraser, Amondson, L. Smith, Anderson, M. Rasmussen, Morton and Roach

 

Read first time 01/17/94.  Referred to Committee on Ecology & Parks.

 

Establishing the Washington state horse park.



          AN ACT Relating to the establishment of a Washington state horse park; reenacting and amending RCW 41.06.070 and 43.19.190; adding a new section to chapter 41.05 RCW; adding a new section to chapter 41.04 RCW; adding a new section to chapter 41.40 RCW; adding a new section to chapter 43.01 RCW; and adding a new chapter to Title 67 RCW.

 

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

 

          NEW SECTION.  Sec. 1.  FINDINGS.  (1) The legislature finds that:

          (a) Horses are part of a large, highly diverse and vital industry with significant economic, recreational, and educational contributions to our way of life;

          (b) Horses contribute approximately fifteen billion dollars annually to the gross national product and four hundred forty-one million dollars to Washington state's economy;

          (c) Horse-related businesses are a source of full and part-time employment for thousands of state residents;

          (d) Horses provide recreation for equestrians and spectators alike, through such organized equestrian events as racing, polo, horse shows, draft horse pulls, mule and donkey events, dressage, jumping, gymkhana, competitive trail riding, barrel racing, rodeo, driving, stock horse classes with cattle, and steeplechase;

          (e) Horses provide recreation and personal development for youth and therapeutic service and treatment to disabled citizens of all ages with varied physical and mental disabilities;

          (f) There is no facility in the Pacific Northwest with the acreage, services, and capacity to host large regional horse shows, national championships, or Olympics-quality events;

          (g) Establishment of a first-class horse park facility can meet important needs of the state's horse industry, attract investment, and bring thousands of new exhibitors and tourists to the state from throughout the region and beyond; and

          (h) The feasibility of a major horse park has been examined positively in a study prepared for the Lewis county economic development council.

          (2) It is therefore the purpose of this chapter to support and advance the public and private partnerships necessary for the establishment, development, and operation of a Washington state horse park as being in the public interest and contributing to the public welfare.

 

          NEW SECTION.  Sec. 2.  DEFINITIONS.  Unless the context clearly indicates otherwise, the definitions in this section apply throughout this chapter.

          (1) "Horses" means and includes all domesticated members of the taxonomic family Equidae, including, but not limited to, horses, donkeys, and mules.

          (2) "Center" means the Mount St. Helens equestrian center facility, established pursuant to this chapter.

          (3) "Authority" means the Washington state horse park authority, a public nonprofit corporation authorized to be established pursuant to this chapter.

          (4) "Foundation" means the Mount St. Helens equestrian center foundation, a private nonprofit corporation authorized to be established pursuant to this chapter.

          (5) "Master plan" means the Mount St. Helens equestrian center development plan and associated design documents produced under the contract to the Washington state parks and recreation commission, or subsequent versions or alternatives, if any, as might be adopted by the authority board.

          (6) "Authority fund" means the Washington state horse park authority fund, which shall consist of all moneys under the control of a treasurer or custodian responsible to the board of directors of the Washington state horse park authority.

          (7) "Authority board" means the board of directors of the Washington state horse park authority.

          (8) "Foundation board" means the board of directors of the Mount St. Helens equestrian center foundation.

 

          NEW SECTION.  Sec. 3.  CENTER ESTABLISHMENT.  The Mount St. Helens equestrian center is hereby established and shall be located at a site in Lewis county approved by the Washington state parks and recreation commission.  The center shall be owned and operated by the authority.

 

          NEW SECTION.  Sec. 4.  AUTHORITY FORMATION.  (1) The governor is authorized to form a public nonprofit corporation in the same manner as a private nonprofit corporation is formed under chapter 24.03 RCW, which corporation shall be designated the Washington state horse park authority.  The authority shall be an instrumentality of the state and have all the powers and be subject to the same restrictions as are private nonprofit corporations, but shall exercise those powers only for carrying out the purposes of this chapter and those purposes necessarily implied therefrom.

          (2) The purpose of the authority shall be to oversee and direct the planning, development, marketing, and operation of the center, consistent with the master plan for center development, and to work in creative partnership with the foundation to coordinate the development, operation, and maintenance of the center with the fund-raising, financial management, and other functions of the foundation.

          (3) The authority shall be governed by an eleven-member board of directors composed as follows:

          (a) The director of the Washington state parks and recreation commission, ex officio;

          (b) The director of the department of community, trade, and economic development, ex officio;

          (c) The dean of the college of veterinary medicine, Washington State University, ex officio;

          (d) One member to be appointed to a three-year term by the county commissioners of Lewis county;

          (e) One member to be appointed to a three-year term by the foundation board;

          (f) Six members who shall be appointed by the governor to three-year terms, except that two of these original appointees shall serve for one year, two for two years, and two for three years.

          (4) The governor shall solicit nominations of candidates for appointment from the Washington state horse council, the back country horsemen of Washington, the Washington state horsemen, the equestrians institute, and such other active horse organizations as will contribute to the identification, nomination, and appointment of individuals knowledgeable about horses and the organized Washington equestrian community.  The governor shall make appointments with a view to fairly represent the geographic and sports discipline diversity of the state's equestrians.  At least one of the gubernatorial appointees shall have business experience relevant to the organization of horse shows or operation of a horse show facility.

          (5) Authority board members shall serve without compensation, except they shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

          (6) The authority board shall elect from among its members a chairperson and a vice-chairperson, and such other officers as it deems appropriate.  The authority shall be authorized to make and alter bylaws, not inconsistent with its articles of incorporation or the laws of this state, providing for the call of its meetings, which shall be held at least quarterly, and for its operating procedures.  A majority of members serving at any one time shall constitute a quorum for the transaction of business.

 

          NEW SECTION.  Sec. 5.  POWERS.  In order to carry out its purposes, the authority is empowered to:

          (1) Maintain an office or offices;

          (2) Sue and be sued in its own name;

          (3) Engage consultants, agents, attorneys (subject to approval by the attorney general), bond underwriters, financing experts, and other advisers, contract with federal, state, and local governmental entities for services, and employ and discharge at its discretion such employees, agents, and other personnel as the authority deems necessary, useful, or convenient to accomplish its purposes;

          (4) Make and execute all manner of contracts, agreements, instruments and financing documents with public and private parties as the authority deems necessary, useful, or convenient to accomplish its purposes:  PROVIDED, That such contracts or other obligations shall not be undertaken in the name of the state of Washington but only in the name of the authority;

          (5) Acquire, accept, hold, administer, and receive gifts and bequests of money, services, securities, real estate, or other property from whatever source derived, absolutely or in trust; sell, assign, lease, encumber, mortgage, or otherwise dispose of the same in such a manner as the authority deems necessary, useful, or convenient to accomplish its purposes;

          (6) Place, hold, and administer the authority fund, into which such moneys and liquidated properties as the authority acquires shall be deposited, through operating capital, or other accounts as it deems advisable;

          (7) Open and maintain accounts in public depositories qualified under chapter 39.58 RCW, and otherwise provide for the investment of any funds not required for immediate disbursement, and provide for the selection of investments;

          (8) Borrow money and pledge the assets of the authority as security for any indebtedness:  PROVIDED, That the full faith and credit of the state of Washington shall not be pledged to pay any indebtedness;

          (9) Apply for and accept subventions, grants, loans, advances, and contributions from any source of money, property, labor, or other things of value, to be held, used, and applied as the authority deems necessary, useful, or convenient to accomplish its purposes;

          (10) Issue tax-exempt, nonrecourse revenue bonds in the name of the authority, which bonds shall be obligations only of the authority, and shall be payable only from the special fund or funds created by the authority for their payment;

          (11) Appear in its own behalf before boards, commissions, departments, or agencies of federal, state, or local government;

          (12) Establish, revise, and collect such fees and charges as the authority deems necessary, useful, or convenient to accomplish its purposes;

          (13) Make such expenditures as are appropriate for paying the administrative costs and expenses of the authority in carrying out the provisions of this chapter;

          (14) Establish such reserves and special funds, and controls on deposits to and disbursements from them, as the authority deems necessary, useful, or convenient to accomplish its purposes;

          (15) Enact such procedures governing the operation, maintenance, or use of property under its custody and control as it deems necessary, useful, or convenient to accomplish its purposes;

          (16) Authorize use of the center facilities by the general public and by and for compatible nonequestrian events as the authority board determines reasonable, so long as the primacy of the center for equine-related purposes is not compromised;

          (17) Insure its obligations and potential liability through the mechanism of the self-insurance fund provided by chapter 4.92 RCW, and if the authority determines it economically or otherwise advantageous, procure such insurance in such amounts and from such insurers as the authority deems desirable, including, but not limited to, insurance against any loss or damage to its property or other assets, public liability insurance for injuries to persons or property, and directors and officers liability insurance for injuries;

          (18) Delegate any of its powers and duties, if consistent with the purposes of this chapter;

          (19) Enter into cooperative agreements with and provide for private nonprofit groups to use center facilities and property to raise money to contribute gifts, grants, and support to the authority for the purposes of this chapter, and such gifts may be in the form of volunteer labor and facilities developed or built, in part or in whole, for public use;

          (20) Grant concessions or leases at the center upon such rentals, fees, or percentage of income or profits and for such terms, in no event longer than twenty-five years, and upon such conditions as shall be approved by the authority;

          (21) Honor credit cards in payment for food and beverage purchases, rentals of space or facilities, and other goods and services offered by the authority in effecting the purposes for which it is formed; and

          (22) Generally to do any and all lawful acts necessary or appropriate to carry out the purposes for which the authority and the center are created.

 

          NEW SECTION.  Sec. 6.  LIABILITY OF STATE, ETC.  Obligations incurred by the authority and any other liabilities or claims against the authority shall be enforced only against the assets of such authority and no liability for the debts or actions of the authority shall exist against either the state of Washington, the Washington state parks and recreation commission, or any other subdivision or instrumentality of the state, or against any board member, officer, employee, or agent of the authority in his or her individual capacity.  The members of the authority board and employees of the authority shall not be held responsible individually in any way whatsoever to any person for errors in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, person, or employee, except for their own individual acts of dishonesty or crime.  No such person or employee shall be held responsible individually for any act or omission of any other member of the authority board, or of any employee of the authority.  The liability of such members and employees shall be several and not joint and no such member or employee shall be liable for the default of any other member or employee.  However, nothing in this section shall prevent the authority from insuring its obligations and potential liability through the mechanism of the self-insurance fund provided by chapter 4.92 RCW.

 

          NEW SECTION.  Sec. 7.  REVENUE BONDS‑-INSURANCE.  (1) The authority may issue nonrecourse revenue bonds in order to obtain the funds to carry out the purposes authorized in this chapter.  The bonds shall be special obligations of the authority, payable solely out of the special fund or funds established by the authority for their repayment.

          (2) Any bonds issued under this chapter may be secured by a financing document between the authority and the purchasers or owners of such bonds or between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state.

          (a) The financing document may pledge or assign, in whole or in part, the revenues and funds held or to be received by the authority, any present or future contract or other rights to receive the same, and the proceeds thereof.

          (b) The financing document may contain such provisions for protecting and enforcing the rights, security, and remedies of bond owners as may be reasonable and proper, including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event of default which may include the acceleration of maturities, restrictions on the individual rights of action by bond owners, and covenants setting forth duties of and limitations on the authority in the conduct of its programs and the management of its property.

          (c) In addition to other security provided in this chapter or otherwise by law, bonds issued by the authority may be secured, in whole or in part, by financial guaranties, by insurance or by letters of credit issued to the authority or a trustee or any other person, by any bank, trust company, insurance or surety company, or other financial institution, within or without the state.  The authority may pledge or assign, in whole or in part, the revenues and funds held or to be received by the authority, any present or future contract or other rights to receive the same, and the proceeds thereof, as security for such guaranties or insurance or for the reimbursement by the authority to any issuer of such letter of credit of any payments made under such letter of credit.

          (3) Without limiting the powers of the authority contained in this chapter, in connection with each issue of its bonds, the authority shall create and establish one or more special funds, including, but not limited to, debt service and sinking funds, reserve funds, project funds, and such other special funds as the authority deems necessary, useful, or convenient.

          (4) Any security interest created against the unexpected bond proceeds and against the special funds created by the authority shall be immediately valid and binding against the money and any securities in which the money may be invested without authority or trustee possession.  The security interest shall be prior to any securities, without filing or recording under article 9 of the uniform commercial code, Title 62A RCW, and regardless of whether the party has notice of the security interest.

          (5) The bonds may be issued as serial bonds, term bonds, or any other type of bond instrument consistent with the provisions of this chapter.  The bonds shall bear such date or dates; mature at such time or times; bear interest at such rate or rates, either fixed or variable; be payable at such time or times; be in such denominations; be in such form; bear such privileges of transferability, exchangeability, and interchangeability; be subject to such terms of redemption; and be sold at public or private sale, in such manner, at such time or times, and at such price or prices as the authority shall determine.  The bonds shall be executed by the manual or facsimile signatures of the authority's chairperson and either its secretary or executive director, if any, and may be authenticated by the trustee (if the authority determines to use a trustee) or any registrar which may be designated for the bonds by the authority.

          (6) Bonds may be issued by the authority to refund other outstanding authority bonds, at or prior to maturity of, and to pay any redemption premium on, the outstanding bonds.  Bonds issued for refunding purposes may be combined with bonds issued for the financing or refinancing of new projects.  Pending the application of the proceeds of the refunding bonds to the redemption of the bonds to be redeemed, the authority may enter into an agreement or agreements with a corporate trustee regarding the interim investment of the proceeds and the application of the proceeds and the earnings on the proceeds to the payment of the principal and interest on, and the redemption of, the bonds to be redeemed.

          (7) The bonds of the authority may be negotiable instruments under Title 62A RCW.

          (8) Neither the members of the authority board, nor the authority's employees or agents, nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance of the bonds.

          (9) The authority may purchase its bonds with any of its funds available for the purchase.  The authority may hold, pledge, cancel, or resell the bonds subject to and in accordance with agreements with bond owners.

          (10) The authority shall not exceed fifty million dollars in total outstanding debt at any time.

          (11) The state finance committee shall be notified in advance of the issuance of bonds by the authority in order to promote the orderly offering of obligations in the financial markets.

 

          NEW SECTION.  Sec. 8.  REVENUE BONDS‑-CONTRACTS‑-RESTRICTIONS.  (1) Bonds issued by the authority under this chapter shall not be deemed to constitute obligations, either general, special, or moral, of the state or of any political subdivision of the state, or pledge of the faith and credit of the state or of any political subdivision, or general obligations of the authority.  The bonds shall be special obligations of the authority and shall be payable solely from the special fund or funds created by the authority for their repayment.  The issuance of bonds under this chapter shall not obligate, directly, indirectly, or contingently, the state or any political subdivision of the state to levy any taxes or appropriate or expend any funds for the payment of the principal or interest on the bonds.  The substance of the limitations included in this subsection shall be plainly printed, written, engraved, or reproduced on each bond and in any disclosure document prepared in conjunction with the offer of or sale of bonds.

          (2) Neither the proceeds or bonds issued under this chapter nor any money used or to be used to pay the principal of, premium, if any, or interest on the bonds shall constitute public money or property.  All of such money shall be kept segregated and set apart from funds of the state and any political subdivision of the state and shall not be subject to appropriation or allotment by the state or subject to the provisions of chapter 43.88 RCW.

          (3) Contracts entered into by the authority shall be entered into in the name of the authority and not in the name of the state.  The obligations of the authority under such contracts shall be obligations only of the authority and shall not, in any way, constitute obligations of the state.

 

          NEW SECTION.  Sec. 9.  REVENUE BONDS‑-MONEY RECEIVED‑-TRUST FUND.  All money received by or on behalf of the authority with respect to this issuance of its bonds shall be trust funds to be held and applied solely as provided in this chapter.  The authority, in lieu of receiving and applying the moneys itself, may enter into trust agreement or indenture with one or more banks or trust companies having the power and authority to conduct trust business in the state to:

          (1) Perform all or any part of the obligations of the authority with respect to:

          (a) Bonds issued by it;

          (b) The receipt, investment, and application of the proceeds of the bonds and money available from other sources for the payment of the bonds; and

          (c) Other matters relating to the exercise of the authority's powers under this chapter;

          (2) Receive, hold, preserve, and enforce any security interest or evidence of security interest granted by a participant for purposes of securing the payment of the bonds; and

          (3) Act on behalf of the authority for purposes of assuring or enforcing the payment of the bonds, when due.

 

          NEW SECTION.  Sec. 10.  REVENUE BONDS‑-OWNER AND TRUSTEE‑-ENFORCEMENT OF RIGHTS.  Any owner of bonds of the authority issued under this chapter, and the trustee under any trust agreement or indenture, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any of their respective rights, and may become the purchaser at any foreclosure sale if the person is the highest bidder, except to the extent the rights given are restricted by the authority in any bond resolution or trust agreement or indenture authorizing the issuance of the bonds.

 

          NEW SECTION.  Sec. 11.  REVENUE BONDS‑-BONDS AS LEGAL INVESTMENT.  The bonds of the authority are securities in which all public officers and bodies of this state and all counties, cities, municipal corporations, and political subdivisions, all banks, eligible banking organizations, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, insurance companies and associations, all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control.

 

          NEW SECTION.  Sec. 12.  REVENUE BONDS‑-CHAPTER AS AN ALTERNATIVE BOND ISSUANCE METHOD.  This chapter provides a complete, additional and alternative method for accomplishing the purposes of this chapter and shall be regarded as supplemental and additional to powers conferred by other laws.  The issuance of bonds and refunding bonds under this chapter need not comply with the requirements of any other law applicable to the issuance of bonds.

 

          NEW SECTION.  Sec. 13.  REVENUE BONDS‑-CONSTRUCTION.  The provisions of this chapter should be construed liberally to effectuate its purpose.  Insofar as the provisions of this chapter are inconsistent with the provisions of any general or special law, or parts thereof, the provisions of this chapter are controlling.

 

          NEW SECTION.  Sec. 14.  AUTHORITY FUND A TRUST FUND.  All moneys received by the authority from any and all sources for, and in support of, the purposes for which the authority and center are established under this chapter, including those derived from center operations, shall be trust funds to be held and applied solely as provided in this chapter.

 

          NEW SECTION.  Sec. 15.  OTHER FUNCTIONS AUTHORIZED.  The following additional purposes and functions are explicitly recognized as appropriate for the center in achieving the purposes for which it is established, whenever the authority board determines such functions to be economically and otherwise feasible and desirable:

          (1) Developing and leasing administrative and other office space, or other compatible facilities, for organizations served by the center or compatible with the purposes for which it is established;

          (2) Providing space and facilities for Washington State University's veterinary medicine and animal science programs as they relate to animal research, education, and extension; and

          (3) Providing opportunity for the center to further the responsibility of the horse racing commission under RCW 67.16.101 to encourage the training and development of the equine industry in the state of Washington whether the result of this training and development results in legalized horse racing or in the recreational use of horses.  The center shall be a qualifying facility for financial assistance under RCW 67.16.101(4).

 

          NEW SECTION.  Sec. 16.  AGENCY COLLABORATION.  The following agencies are directed to explore with the authority, foundation, and appropriate local governments, opportunities for collaboration and cooperation:

          (1) The department of agriculture to further its responsibilities for the well-being of the equine agricultural industry;

          (2) The department of community, trade, and economic development with respect to community development block grant assistance, community economic revitalization board projects, local development matching funds, public works trust fund, business development, and tourism development;

          (3) Washington State University, especially the college of agriculture and home economics, department of animal sciences, and the college of veterinary medicine with respect to opportunities for animal research, education, and extension, possible placement of related university facilities at the center;

          (4) The state parks and recreation commission with respect to site land acquisition, and other state parks purposes;

          (5) The department of natural resources with respect to site land acquisition in cooperation with Lewis county and the state parks and recreation commission;

          (6) The department of ecology, especially the water quality financial assistance and water quality programs, with respect to opportunities for making the center's human and animal waste treatment facilities demonstration models for waste handling to protect water quality;

          (7) South Puget Sound Community College with respect to opportunities for collaboration with its horseshoeing technology program; and

          (8) Centralia Community College with respect to opportunities for education and training related to business, tourism, and equine support services.

 

          NEW SECTION.  Sec. 17.  FINANCIAL REPORTS/AUDIT.  The authority shall keep accurate records of all its receipts and disbursements and shall prepare annual financial statements presenting the financial position and results of operations of the authority fund, and any other funds utilized to account for the operations of the center, as of June 30 for each fiscal year.  Copies of these statements shall be filed with the office of the secretary of state and with the state auditor, who may conduct audits of the authority as provided in chapter 43.09 RCW.

 

          NEW SECTION.  Sec. 18.  PERSONNEL EXEMPTIONS.  In order to allow the authority flexibility in its personnel policies, the authority is exempt from chapters 41.06, 41.05, 41.04, and 41.40 RCW and RCW 43.01.040 through 43.01.044.

 

        Sec. 19.  RCW 41.06.070 and 1993 sp.s. c 2 s 15 and 1993 c 379 s 306 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, legislative budget 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, 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 state apple advertising 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 any commission formed under chapter 15.66 RCW;

          (t) Officers and employees of the state wheat commission formed under chapter 15.63 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 and chapter 67.-- RCW (sections 1 through 18 of this act);

          (w) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050:  PROVIDED, HOWEVER, That rules adopted by the Washington personnel resources 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;

          (x) 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;

          (y) 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;

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

          (aa) 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.

          (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) Student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel resources board, employed by institutions of higher education and related boards;

          (c) 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;

          (d) 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 Washington personnel resources 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 Washington personnel resources board stating the reasons for requesting such exemp­tions.  The Washington personnel resources 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 Washington personnel resources board 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 Washington personnel resources board shall report to each regular session of the legislature during an odd-numbered year all exemptions granted under subsections (1) (x) and (y) and (2) 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 (1) (j) through (v) and (2) of this section, shall be determined by the Washington personnel resourc­es board.

          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.

 

          NEW SECTION.  Sec. 20.  A new section is added to chapter 41.05 RCW to read as follows:

          The provisions of this chapter shall not be applicable to the officers and employees of the nonprofit corporation formed under chapter 67.-- RCW (sections 1 through 18 of this act).

 

          NEW SECTION.  Sec. 21.  A new section is added to chapter 41.04 RCW to read as follows:

          The provisions of this chapter shall not be applicable to the officers and employees of the nonprofit corporation formed under chapter 67.-- RCW (sections 1 through 18 of this act).

 

          NEW SECTION.  Sec. 22.  A new section is added to chapter 41.40 RCW to read as follows:

          The provisions of this chapter shall not be applicable to the officers and employees of the nonprofit corporation formed under chapter 67.-- RCW (sections 1 through 18 of this act).

 

          NEW SECTION.  Sec. 23.  A new section is added to chapter 43.01 RCW to read as follows:

          The provisions of RCW 43.01.040 through 43.01.044 shall not be applicable to the officers and employees of the nonprofit corporation formed under chapter 67.-- RCW (sections 1 through 18 of this act).

 

        Sec. 24.  RCW 43.19.190 and 1993 sp.s. c 10 s 2 and 1993 c 379 s 102 are each reenacted and amended to read as follows:

          The director of general administration, through the state purchasing and material control director, shall:

          (1) Establish and staff such administrative organi­zational units within the division of purchasing as may be necessary for effective administration of the provisions of RCW 43.19.190 through 43.19.1939;

          (2) Purchase all material, supplies, services, and equipment needed for the support, maintenance, and use of all state institutions, colleges, community colleges, technical colleges, college districts, and universities, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of state government, and the offices of all appointive officers of the state:  PROVIDED, That the provisions of RCW 43.19.190 through 43.19.1937 do not apply in any manner to the operation of the state legislature except as requested by the legislature:  PROVIDED, That any agency may purchase material, supplies, services, and equipment for which the agency has notified the purchasing and material control director that it is more cost-effective for the agency to make the purchase directly from the vendor:  PROVIDED, That primary authority for the purchase of specialized equipment, instructional, and research material for their own use shall rest with the colleges, community colleges, and universities:  PROVIDED FURTHER, That universities operating hospitals and the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and vetera­ns' institutions as defined in RCW 72.36.010 and 72.36.070, may make purchases for hospital operation by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations:  PROVIDED FURTHER, That primary authority for the purchase of materials, supplies, and equipment for resale to other than public agencies shall rest with the state agency concerned:  PROVIDED FURTHER, That authority to purchase services as included herein does not apply to personal services as defined in chapter 39.29 RCW, unless such organization specifically requests assistance from the division of purchasing in obtaining personal services and resources are available within the division to provide such assistance:  PROVIDED FURTHER, That the authority for the purchase of insurance and bonds shall rest with the risk manager under RCW 43.19.1935:  PROVIDED FURTHER, That, except for the authority of the risk manager to purchase insurance and bonds, the director is not required to provide purchasing services for institutions of higher education that choose to exercise independent purchasing authority under RCW 28B.10.029:  PROVIDED FURTHER, That primary authority for the purchase of materials, supplies, equipment, and services by the public nonprofit corporation created pursuant to the authority in chapter 67.-- RCW (sections 1 through 18 of this act) shall rest with said public nonprofit corporation;

          (3) Provide the required staff assistance for the state supply management advisory board through the division of purchasing;

          (4) Have authority to delegate to state agencies authorization to purchase or sell, which authorization shall specify restrictions as to dollar amount or to specific types of material, equipment, services, and supplies:  PROVIDED, That acceptance of the purchasing authorization by a state agency does not relieve such agency from conformance with other sections of RCW 43.19.190 through 43.19.1939, or from policies established by the director after consultation with the state supply management advisory board:  PROVIDED FURTHER, That delegation of such authorization to a state agency, including an educational institution to which this section applies, to purchase or sell material, equipment, services, and supplies shall not be granted, or otherwise continued under a previous authorization, if such agency is not in substantial compliance with overall state purchasing and material control policies as established herein;

          (5) Contract for the testing of material, supplies, and equipment with public and private agencies as necessary and advisable to protect the interests of the state;

          (6) Prescribe the manner of inspecting all deliver­ies of supplies, materials, and equipment purchased through the division;

          (7) Prescribe the manner in which supplies, materi­als, and equipment purchased through the division shall be delivered, stored, and distributed;

          (8) Provide for the maintenance of a catalogue library, manufacturers' and wholesalers' lists, and current market information;

          (9) Provide for a commodity classification system and may, in addition, provide for the adoption of standard specifications after receiving the recommen­dation of the supply management advisory board;

          (10) Provide for the maintenance of inventory records of supplies, materials, and other property;

          (11) Prepare rules and regulations governing the relationship and procedures between the division of purchasing and state agencies and vendors;

          (12) Publish procedures and guidelines for compli­ance by all state agencies, including those educational institutions to which this section applies, which implement overall state purchasing and material control policies;

          (13) Conduct periodic visits to state agencies, including those educational institutions to which this section applies, to determine if statutory provisions and supporting purchasing and material control policies are being fully implemented, and based upon such visits, take corrective action to achieve compliance with established purchasing and material control policies under existing statutes when required.

 

          NEW SECTION.  Sec. 25.  CAPTIONS.  Captions as used in this chapter constitute no part of the law.

 

          NEW SECTION.  Sec. 26.  NEW CHAPTER IN RCW.  Sections 1 through 18 and 25 of this act shall constitute a new chapter in Title 67 RCW.

 


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