BP BHEAD INT S

AN ACT Relating to civil service and collective bargaining reform for state government; amending RCW 41.06.030, 41.06.022, 41.06.110, 41.06.160, 41.06.167, 41.06.170, 41.06.186, 41.06.196, 41.06.270, 41.06.350, 41.06.400, 41.06.410, 41.06.450, 41.06.475, 41.06.490, 41.06.520, 34.05.030, 34.12.020, 41.04.340, 41.50.804, 43.06.425, 43.33A.100, 43.131.090, and 49.46.010; reenacting and amending RCW 41.06.150, 41.06.070, and 28B.12.060; adding new sections to chapter 41.06 RCW; adding a new chapter to Title 41 RCW; creating new sections; repealing RCW 41.06.140, 41.06.163, 41.06.165, 41.06.340, 41.06.380, 41.06.382, 41.50.804, 41.64.010, 41.64.020, 41.64.030, 41.64.040, 41.64.050, 41.64.060, 41.64.070, 41.64.080, 41.64.090, 41.64.100, 41.64.110, 41.64.120, 41.64.130, 41.64.140, and 41.64.910; prescribing penalties; and providing effective dates.

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

PART I

LEGISLATIVE INTENT

NEW SECTION. Sec. 101. SHORT TITLE. This act shall be known and may be cited as the civil service and collective bargaining reform act.

NEW SECTION. Sec. 102. POLICY. (1) The legislature finds that civil service reform and collective bargaining reform are necessary to modernize and improve the state personnel system and to assure the effective and orderly operations of state government. The legislature also finds that recognizing the principles of collective bargaining through negotiations about wages, hours, and other terms and conditions of employment with the state's employees can promote constructive relationships and encourage the involvement of employees and their representatives in the efficient improvement and effective delivery of government services.

(2) It is the purpose of this act to create flexible agencies to become more cost-effective, to operate more efficiently, and to deliver public services of the highest quality. It is also the intent of the legislature to develop the best possible procedures for involving state employees and their representatives in the effort to modernize and streamline state government and public services, through better communications and development of flexible responses to changing conditions.

PART II

CIVIL SERVICE REFORM

Sec. 201. RCW 41.06.030 and 1993 c 281 s 20 are each amended to read as follows:

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

Sec. 202. RCW 41.06.150 and 1993 sp.s. c 24 s 913 and 1993 c 281 s 27 are each reenacted and amended to read as follows:

The ((~~board~~)) director of personnel 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 six 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 of probationary employees, 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~~));

(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, in accordance with rules adopted by the board under section 203 of this act, for all positions in the classified service((~~, based on investigation and analysis of the duties and responsibilities of each such position~~)) and allocation and reallocation of positions within the classification plan. However, beginning July 1, 1993, through June 30, 1995, the ((~~board~~)) director shall not adopt job classification revisions or class studies unless implementation of the proposed revision or study will result in net cost savings, increased efficiencies, or improved management of personnel or services, and the proposed revision or study has been approved by the director of financial management in accordance with chapter 43.88 RCW;

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

~~(17)~~)) (12) 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 and that, for institutions of higher education and related boards, shall be competitive for positions of a similar nature in the state or the locality in which an institution of higher education or related board is located, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW;

((~~(18)~~)) (13) 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. However, beginning July 1, 1993, through June 30, 1995, increment increases shall not be provided to any classified or exempt employees under the jurisdiction of the ((~~board~~)) director whose monthly salary on or after July 1, 1993, exceeds three thousand seven hundred fifty dollars;

((~~(19)~~)) (14) 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 surviving spouses by giving such eligible veterans and their surviving spouses additional credit in computing their seniority by adding to their unbroken state service, as defined by the ((~~board~~)) director, 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 surviving spouse 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)~~)) (15) 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~~)) director may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

((~~(21)~~)) (16) Assuring persons who are or have been employed in classified positions under chapter 28B.16 RCW before July 1, 1993, will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter;

((~~(22)~~)) (17) 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~~)) director 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.

Rules adopted by the director pursuant to subsections (1), (2) only with respect to the number of names to be certified, (4) except for initial employment appointments and the names of appointees, (5) through (10), (12) through (14), and (16) of this section may be superseded by the effect of a collective bargaining agreement negotiated pursuant to sections 301 through 317 of this act. However, the supersession of such rules shall only affect employees in the respective collective bargaining units.

NEW SECTION. Sec. 203. A new section is added to chapter 41.06 RCW to read as follows:

(1) The board shall conduct a comprehensive review of all rules in effect on the effective date of this section governing the classification, allocation, and reallocation of positions within the classified service. The review shall include analysis of the duties, responsibilities, and skills held by each job classification. In conducting this review, the board shall consult with state agencies, institutions of higher education, employee organizations, and members of the general public. The department shall assist the board in the conduct of this review, which shall be completed by the board no later than July 1, 1995.

(2) By September 15, 1995, the board shall adopt new rules governing the classification, allocation, and reallocation of positions in the classified service. In adopting such rules, the board shall adhere to the following goals:

(a) To improve the effectiveness and efficiency of the delivery of services to the citizens of the state through the use of the most current personnel management processes and to promote a workplace where the overall focus is on the recipient of governmental services;

(b) To develop the most simplified classification system that will substantially reduce the number of job classifications in the classified service and facilitate the most effective use of the state personnel resources;

(c) To develop the most flexible possible classification system to permit state agencies to respond to changing technologies, economic and social conditions, and the needs of its citizens;

(d) To value workplace diversity;

(e) To facilitate the reorganization and decentralization of governmental services; and

(f) To enhance mobility and career advancement opportunities.

(3) Rules adopted by the board under subsection (2) of this section shall permit an appointing authority and an employee organization representing classified employees of the appointing authority for collective bargaining purposes to make a joint request for the initiation of a classification study.

NEW SECTION. Sec. 204. A new section is added to chapter 41.06 RCW to read as follows:

In accordance with rules adopted by the board under section 203 of this act, the director shall, by March 15, 1997, implement a new classification system for positions in the classified service. Any employee who believes that the director has incorrectly applied the rules of the board in determining a job classification for a job held by that employee may appeal the director's decision to the board by filing a notice in writing within thirty days of the action from which the appeal is taken. Decisions of the board concerning such appeals are final.

Sec. 205. RCW 41.06.022 and 1993 c 281 s 8 are each amended to read as follows:

For purposes of this chapter, "manager" means any employee who:

(1) Formulates state-wide policy or directs the work of an agency or agency subdivision;

(2) Is responsible to administer one or more state-wide policies or programs of an agency or agency subdivision;

(3) Manages, administers, and controls a local branch office of an agency or agency subdivision, including the physical, financial, or personnel resources;

(4) Has substantial responsibility in personnel administration, legislative relations, public information, or the preparation and administration of budgets; or

(5) Functionally is above the first level of supervision and exercises authority that is not merely routine or clerical in nature and requires the consistent use of independent judgment.

No employee who is a member of the Washington management service may be included in a collective bargaining unit established under sections 301 through 317 of this act.

NEW SECTION. Sec. 206. A new section is added to chapter 41.06 RCW to read as follows:

(1) A department, agency, or institution of higher education or related board may purchase services by contract with individuals, businesses, or nonprofit entities except that no contract may cause the displacement of employees in accordance with subsection (2)(d) of this section.

(2) Contracts in excess of one hundred thousand dollars shall be subject to the following criteria:

(a) The affected department, agency, or institution of higher education or related board has conducted an analysis to determine that contracting will result in a significant cost savings or productivity increase. The analysis shall include both direct and indirect costs and shall also detail why equivalent cost savings or productivity increases cannot be achieved through alternative management practices or through the more efficient use of existing personnel.

(b) Departments, agencies, or institutions of higher education or related boards shall use a public competitive procurement process and shall notify in advance any exclusive bargaining representative that represents any employee whose employment status will be affected by the potential contract. The exclusive bargaining representative shall have the right to offer alternatives to the proposed contract, including compensation alternatives, restructuring of work, work methods, and service delivery models, or to use state employees in submitting an alternative to contracting out through the procurement process. For any contract awarded, the bid price shall be binding for the initial contract term. Contract extensions beyond the initial contract term shall be made at the option of the procuring agency and advance notification shall be given to affected exclusive bargaining representatives. Price increases for extended contracts shall be subject to review by the office of financial management.

(c) Proposals to contract for services shall be eligible for approval if the contractors' wage rates correspond substantially to market wage rates and if no more than twenty percent of the expected cost savings are derived from employee wages and benefits.

(d) Proposals to contract for services shall not cause displacement of employees covered under this chapter. For the purposes of this subsection "displacement" includes layoff, demotion, transfer to an inappropriate classification, involuntary transfer to a new location requiring a change of residence, and time base reductions, but does not include changes in shifts or days off, or reassignment to other positions without a loss of pay and within the same general location.

(e) Contracts shall not adversely affect the state's affirmative action efforts and shall include provisions requiring the contractor to comply with chapter 39.19 RCW.

(f) The department, agency, or institution of higher education or related board may determine that the potential economic advantage of contracting for services is not outweighed by the public's interest in having a particular function performed directly by state government.

(3) Contracts for one hundred thousand dollars or less shall, in addition to meeting the displacement standard established in subsection (2)(d) of this section, meet one of the following conditions:

(a) Services procured by such contracts shall be of a highly specialized or technical nature or require special equipment, products, tools, software, physical space, or other technologies so as to make it cost-effective to contract for such services rather than to use personnel in the classified service;

(b) Services to be performed are in a locale that is so substantially remote from the place where services are traditionally provided as to make it more cost-effective to contract for services than to use personnel in the classified service;

(c) Services to be performed are of such an urgent or emergency nature that the delay incumbent in their implementation under existing personnel procedures or rules would frustrate their very purpose; or

(d) Services to be performed by the contract are of an intermittent, occasional, or temporary nature.

(4) This section does not apply to the purchase of services or to any contracting for services that was authorized by law before the effective date of this section.

Sec. 207. 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;

(d) The officers of the Washington state patrol;

(e) Elective officers of the state;

(f) The chief executive officer of each agency;

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

(h) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

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

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

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

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

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

(j) Assistant attorneys general;

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

(l) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the ((~~Washington personnel resources board~~)) director of personnel, unless coverage of students, part-time or temporary employees, or part-time professional consultants is provided by a collective bargaining agreement negotiated under sections 301 through 317 of this act;

(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;

(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~~)) director of personnel 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)~~)) (c) Printing craft employees in the department of printing at the University of Washington.

(3) In addition to the exemptions specifically provided by this chapter, the ((~~Washington personnel resources board~~)) director of personnel may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the ((~~Washington personnel resources board~~)) director of personnel stating the reasons for requesting such exemptions. The ((~~Washington personnel resources board~~)) director of personnel shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the ((~~board~~)) director of personnel 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~~)) director of personnel shall grant the request and such determination shall be final as to any decision made before July 1, 1993. The total number of additional exemptions permitted under this subsection shall not exceed one percent of the number of employees in the classified service not including employees of institutions of higher education and related boards for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor. The ((~~Washington personnel resources board~~)) director of personnel 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~~)) director of personnel.

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. 208. RCW 41.06.110 and 1993 c 281 s 25 are each amended to read as follows:

(1) There is hereby created a Washington personnel resources board composed of three members appointed by the governor, subject to confirmation by the senate. The members of the personnel board serving June 30, 1993, shall be the members of the Washington personnel resources board, and they shall complete their terms as under the personnel board. Each odd-numbered year thereafter the governor shall appoint a member for a six-year term. Each member shall continue to hold office after the expiration of the member's term until a successor has been appointed. Persons so appointed shall have clearly demonstrated an interest and belief in the merit principle, shall not hold any other employment with the state, shall not have been an officer of a political party for a period of one year immediately prior to such appointment, and shall not be or become a candidate for partisan elective public office during the term to which they are appointed;

(2) Each member of the board shall be compensated in accordance with RCW 43.03.250. The members of the board may receive any number of daily payments for official meetings of the board actually attended. Members of the board shall also be reimbursed for travel expenses incurred in the discharge of their official duties in accordance with RCW 43.03.050 and 43.03.060.

(3) At its first meeting following the appointment of all of its members, and annually thereafter, the board shall elect a chair and vice-chair from among its members to serve one year. The presence of at least two members of the board shall constitute a quorum to transact business. A written public record shall be kept by the board of all actions of the board. The director of personnel shall serve as secretary.

(4) The board may appoint and compensate hearing officers to hear and conduct appeals ((~~until December 31, 1982~~)). Such compensation shall be paid on a contractual basis for each hearing, in accordance with the provisions of chapter 43.88 RCW and rules adopted pursuant thereto, as they relate to personal service contracts.

Sec. 209. RCW 41.06.160 and 1993 c 281 s 29 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~~)) 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((, 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 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 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;

(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)).

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. 210. RCW 41.06.167 and 1991 c 196 s 1 are each amended to read as follows:

The department of personnel shall undertake comprehensive compensation surveys for officers and entry-level officer candidates 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 compensation survey is not conducted, the department shall conduct a trend compensation survey. This survey shall measure average compensation movement which has occurred since the last comprehensive compensation survey was conducted. The results of each comprehensive and trend survey shall be completed and forwarded by September 30th, after review and preparation of recommendations 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 legislative transportation committee and 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 medians, base ranges, and weighted averages of salaries. The surveys shall compare competitive labor markets of law enforcement officers. This service performed by the department of personnel shall be on a reimbursable basis in accordance with the provisions of RCW 41.06.080.

A comprehensive compensation survey plan and the recommendations of the chief of the Washington state patrol shall be submitted jointly by the department of personnel and the Washington state patrol to the director of financial management, the legislative transportation committee, 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. 211. RCW 41.06.170 and 1993 c 281 s 31 are each amended to read as follows:

(1) The ((~~board or~~)) director, in the adoption of rules 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 or~~)) director 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.

(2) Any employee who is reduced, dismissed, suspended, or demoted, after completing his or her probationary period of service as provided by the rules of the ((~~board~~)) director, or any employee who is adversely affected by a violation of the state civil service law, chapter 41.06 RCW, or rules adopted under it, or in either case his or her authorized representative, 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. The decision of the board shall be final.

(3) Any employee whose position has been exempted after July 1, 1993, or his her authorized representative, 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.

(4) 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~~)) Washington personnel resources board. Notice of such appeal must be filed in writing within thirty days of the action from which appeal is taken.

(5) Subsections (1) and (2) of this section do not apply to any employee who is subject to the provisions of a collective bargaining agreement negotiated under sections 301 through 317 of this act.

Sec. 212. RCW 41.06.186 and 1993 c 281 s 32 are each amended to read as follows:

The ((~~Washington personnel resources board~~)) director shall adopt rules designed to terminate the state employment of any employee whose performance is so inadequate as to warrant termination.

Sec. 213. RCW 41.06.196 and 1993 c 281 s 33 are each amended to read as follows:

The ((~~Washington personnel resources board~~)) director shall adopt rules designed to remove from supervisory positions those supervisors who in violation of the rules adopted under RCW 41.06.186 have tolerated the continued employment of employees under their supervision whose performance has warranted termination from state employment.

Sec. 214. RCW 41.06.270 and 1979 c 151 s 61 are each amended to read as follows:

A disbursing officer shall not pay any employee holding a position covered by this chapter unless the employment is in accordance with this chapter or the rules, regulations and orders issued hereunder. The ((~~board and the~~)) directors of personnel and financial management shall jointly establish procedures for the certification of payrolls.

Sec. 215. RCW 41.06.350 and 1993 c 281 s 36 are each amended to read as follows:

The ((~~Washington personnel resources board~~)) director is authorized to 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. 216. 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~~)) director 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.

Sec. 217. RCW 41.06.410 and 1980 c 118 s 5 are each amended to read as follows:

Each agency subject to the provisions of this chapter shall:

(1) Prepare an employee training and career development plan which shall at least meet minimum standards established by the ((~~board~~)) director. A copy of such plan shall be submitted to the director for purposes of administering the provisions of RCW 41.06.400(2);

(2) Provide for training and career development for its employees in accordance with the agency plan;

(3) Report on its training and career development program operations and costs to the director in accordance with reporting procedures adopted by the ((~~board~~)) director;

(4) Budget for training and career development in accordance with procedures of the office of financial management.

Sec. 218. RCW 41.06.450 and 1993 c 281 s 37 are each amended to read as follows:

(1) ((~~By January 1, 1983, the Washington personnel resources board~~)) The director shall adopt rules applicable to each agency to ensure that information relating to employee misconduct or alleged misconduct is destroyed or maintained as follows:

(a) All such information determined to be false and all such information in situations where the employee has been fully exonerated of wrongdoing, shall be promptly destroyed;

(b) All such information having no reasonable bearing on the employee's job performance or on the efficient and effective management of the agency, shall be promptly destroyed;

(c) All other information shall be retained only so long as it has a reasonable bearing on the employee's job performance or on the efficient and effective management of the agency.

(2) Notwithstanding subsection (1) of this section, an agency may retain information relating to employee misconduct or alleged misconduct if:

(a) The employee requests that the information be retained; or

(b) The information is related to pending legal action or legal action may be reasonably expected to result.

(3) In adopting rules under this section, the ((~~Washington personnel resources board~~)) director shall consult with the public disclosure commission to ensure that the public policy of the state, as expressed in chapter 42.17 RCW, is adequately protected.

Sec. 219. RCW 41.06.475 and 1993 c 281 s 38 are each amended to read as follows:

The ((~~Washington personnel resources board~~)) director shall adopt rules, in cooperation with the secretary of social and health services, for the background investigation of persons being considered for state employment in positions directly responsible for the supervision, care, or treatment of children or developmentally disabled persons.

Sec. 220. RCW 41.06.490 and 1990 c 204 s 3 are each amended to read as follows:

(1) In addition to the rules adopted under RCW 41.06.150, the ((~~board~~)) director shall adopt rules establishing a state employee return-to-work program. The program shall, at a minimum:

(a) Direct each agency to adopt a return-to-work policy. The program shall allow each agency program to take into consideration the special nature of employment in the agency;

(b) Provide for eligibility in the return-to-work program, for a minimum of two years from the date the temporary disability commenced, for any permanent employee who is receiving compensation under RCW 51.32.090 and who is, by reason of his or her temporary disability, unable to return to his or her previous work, but who is physically capable of carrying out work of a lighter or modified nature;

(c) Allow opportunity for return-to-work state-wide when appropriate job classifications are not available in the agency that is the appointing authority at the time of injury;

(d) Require each agency to name an agency representative responsible for coordinating the return-to-work program of the agency;

(e) Provide that applicants receiving appointments for classified service receive an explanation of the return-to-work policy;

(f) Require training of supervisors on implementation of the return-to-work policy, including but not limited to assessment of the appropriateness of the return-to-work job for the employee; and

(g) Coordinate participation of applicable employee assistance programs, as appropriate.

(2) The agency full-time equivalents necessary to implement the return-to-work program established under this section shall be used only for the purposes of the return-to-work program and the net increase in full-time equivalents shall be temporary.

Sec. 221. RCW 41.06.520 and 1993 c 281 s 11 are each amended to read as follows:

(1) Rules adopted by the ((~~board~~)) director shall provide for local administration and management by the institutions of higher education and related boards, subject to periodic audit and review by the ((~~board~~)) director, of the following:

((~~(1)~~)) (a) Appointment, promotion, and transfer of employees;

((~~(2)~~)) (b) Dismissal, suspension, or demotion of an employee;

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

((~~(4)~~)) (d) Probationary periods of six to twelve months and rejection of probationary employees;

((~~(5)~~)) (e) Sick leaves and vacations;

((~~(6)~~)) (f) Hours of work;

((~~(7)~~)) (g) Layoffs when necessary and subsequent reemployment;

((~~(8)~~)) (h) Allocation and reallocation of positions within the classification plans;

((~~(9)~~)) (i) Training programs; and

((~~(10)~~)) (j) Maintenance of personnel records.

(2) A collective bargaining agreement negotiated under sections 301 through 317 of this act may supersede rules adopted with respect to subsections (1)(a) except for initial employment appointments and the names of appointees, (1)(b), (d) through (g), and (i) of this section. However, the supersession of such rules shall only effect employees in the respective collective bargaining units.

Sec. 222. RCW 28B.12.060 and 1993 sp.s. c 18 s 3 and 1993 c 281 s 14 are each reenacted and amended to read as follows:

The higher education coordinating board shall adopt rules as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter 34.05 RCW, the state higher education administrative procedure act. Such rules shall include provisions designed to make employment under such work-study program reasonably available, to the extent of available funds, to all eligible students in eligible post-secondary institutions in need thereof. Such rules shall include:

(1) Providing work under the college work-study program which will not result in the displacement of employed workers or impair existing contracts for services.

(2) Furnishing work only to a student who:

(a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and

(b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and

(3) Placing priority on the securing of work opportunities for students who are residents of the state of Washington as defined in RCW 28B.15.012 and 28B.15.013 except resident students defined in RCW 28B.15.012(2)(e).

(4) Provisions to assure that in the state institutions of higher education utilization of this student work-study program:

(a) Shall only supplement and not supplant classified positions under jurisdiction of chapter 41.06 RCW;

(b) That all positions established which are comparable shall be identified to a job classification under the ((~~Washington personnel resources board's~~)) director of personnel's classification plan and shall receive equal compensation;

(d) That work study positions shall only be established at entry level positions of the classified service.

Sec. 223. RCW 34.05.030 and 1993 c 281 s 15 are each amended to read as follows:

(1) This chapter shall not apply to:

(a) The state militia, or

(b) The board of clemency and pardons, or

(c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.

(2) The provisions of RCW 34.05.410 through 34.05.598 shall not apply:

(a) To adjudicative proceedings of the board of industrial insurance appeals except as provided in RCW 7.68.110 and 51.48.131;

(b) Except for actions pursuant to chapter 46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;

(c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;

(d) To actions of the Washington personnel resources board((,)) or the director of personnel((~~, or the personnel appeals board~~)); or

(e) To the extent they are inconsistent with any provisions of chapter 43.43 RCW.

(3) Unless a party makes an election for a formal hearing pursuant to RCW 82.03.140 or 82.03.190, RCW 34.05.410 through 34.05.598 do not apply to a review hearing conducted by the board of tax appeals.

(4) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the Administrative Procedure Act, shall be subject to the entire act.

Sec. 224. RCW 34.12.020 and 1993 c 281 s 16 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Office" means the office of administrative hearings.

(2) "Administrative law judge" means any person appointed by the chief administrative law judge to conduct or preside over hearings as provided in this chapter.

(3) "Hearing" means an adjudicative proceeding within the meaning of RCW 34.05.010(1) conducted by a state agency under RCW 34.05.413 through 34.05.476.

(4) "State agency" means any state board, commission, department, or officer authorized by law to make rules or to conduct adjudicative proceedings, except those in the legislative or judicial branches, the pollution control hearings board, the shorelines hearings board, the forest practices appeals board, the environmental hearings office, the board of industrial insurance appeals, the Washington personnel resources board, the public employment relations commission, ((~~the personnel appeals board,~~)) and the board of tax appeals.

Sec. 225. RCW 41.04.340 and 1993 c 281 s 17 are each amended to read as follows:

(1) An attendance incentive program is established for all eligible employees. As used in this section the term "eligible employee" means any employee of the state, other than teaching and research faculty at the state and regional universities and The Evergreen State College, entitled to accumulate sick leave and for whom accurate sick leave records have been maintained. No employee may receive compensation under this section for any portion of sick leave accumulated at a rate in excess of one day per month. The state and regional universities and The Evergreen State College shall maintain complete and accurate sick leave records for all teaching and research faculty.

(2) In January of the year following any year in which a minimum of sixty days of sick leave is accrued, and each January thereafter, any eligible employee may receive remuneration for unused sick leave accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued sick leave in excess of sixty days. Sick leave for which compensation has been received shall be deducted from accrued sick leave at the rate of four days for every one day's monetary compensation.

(3) At the time of separation from state service due to retirement or death, an eligible employee or the employee's estate may elect to receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days of accrued sick leave.

(4) Pursuant to this subsection, in lieu of cash remuneration the state may, with equivalent funds, provide eligible employees with a benefit plan providing for reimbursement of medical expenses. The committee for deferred compensation shall develop any benefit plan established under this subsection, but may offer and administer the plan only if (a) each eligible employee has the option of whether to receive cash remuneration or to have his or her employer transfer equivalent funds to the plan; and (b) the committee has received an opinion from the United States internal revenue service stating that participating employees, prior to the time of receiving reimbursement for expenses, will incur no United States income tax liability on the amount of the equivalent funds transferred to the plan.

(5) Remuneration or benefits received under this section shall not be included for the purpose of computing a retirement allowance under any public retirement system in this state.

(6) With the exception of subsection (4) of this section, this section shall be administered, and rules shall be adopted to carry out its purposes, by the ((~~Washington personnel resources board~~)) director of personnel for persons subject to chapter 41.06 RCW: PROVIDED, That determination of classes of eligible employees shall be subject to approval by the office of financial management.

(7) Should the legislature revoke any remuneration or benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right.

Sec. 226. RCW 41.50.804 and 1993 c 281 s 40 are each amended to read as follows:

Nothing contained in this chapter shall be construed to alter any existing collective bargaining agreement until any such agreement has expired or until any such bargaining unit has been modified by action of the ((~~Washington personnel resources board~~)) state employment relations commission as provided by law.

Sec. 227. RCW 43.06.425 and 1993 c 281 s 48 are each amended to read as follows:

The ((~~Washington personnel resources board~~)) director of personnel shall adopt rules to provide that:

(1) Successful completion of an internship under RCW 43.06.420 shall be considered as employment experience at the level at which the intern was placed;

(2) Persons leaving classified or exempt positions in state government in order to take an internship under RCW 43.06.420: (a) Have the right of reversion to the previous position at any time during the internship or upon completion of the internship; and (b) shall continue to receive all fringe benefits as if they had never left their classified or exempt positions;

(3) Participants in the undergraduate internship program who were not public employees prior to accepting a position in the program receive sick leave allowances commensurate with other state employees;

(4) Participants in the executive fellows program who were not public employees prior to accepting a position in the program receive sick and vacation leave allowances commensurate with other state employees.

Sec. 228. RCW 43.33A.100 and 1993 c 281 s 50 are each amended to read as follows:

The state investment board shall maintain appropriate offices and employ such personnel as may be necessary to perform its duties. Employment by the investment board shall include but not be limited to an executive director, investment officers, and a confidential secretary, which positions are exempt from classified service under chapter 41.06 RCW. Employment of the executive director by the board shall be for a term of three years, and such employment shall be subject to confirmation of the state finance committee: PROVIDED, That nothing shall prevent the board from dismissing the director for cause before the expiration of the term nor shall anything prohibit the board, with the confirmation of the state finance committee, from employing the same individual as director in succeeding terms. Compensation levels for the investment officers employed by the investment board shall be established by the ((~~Washington personnel resources board~~)) director of personnel.

As of July 1, 1981, all employees classified under chapter 41.06 RCW and engaged in duties assumed by the state investment board on July 1, 1981, are assigned to the state investment board. The transfer shall not diminish any rights granted these employees under chapter 41.06 RCW nor exempt the employees from any action which may occur thereafter in accordance with chapter 41.06 RCW.

All existing contracts and obligations pertaining to the functions transferred to the state investment board in this 1980 act shall remain in full force and effect, and shall be performed by the board. None of the transfers directed by this 1980 act shall affect the validity of any act performed by a state entity or by any official or employee thereof prior to July 1, 1981.

Sec. 229. RCW 43.131.090 and 1993 c 281 s 54 are each amended to read as follows:

Unless the legislature specifies a shorter period of time, a terminated state agency shall continue in existence until June 30th of the next succeeding year for the purpose of concluding its affairs: PROVIDED, That the powers and authority of the state agency shall not be reduced or otherwise limited during this period. Unless otherwise provided:

(1) All employees of terminated state agencies classified under chapter 41.06 RCW, the state civil service law, shall be transferred as appropriate or as otherwise provided in the procedures adopted by the ((~~Washington personnel resources board~~)) director of personnel pursuant to RCW 41.06.150;

(2) All documents and papers, equipment, or other tangible property in the possession of the terminated state agency shall be delivered to the custody of the agency assuming the responsibilities of the terminated agency or if such responsibilities have been eliminated, documents and papers shall be delivered to the state archivist and equipment or other tangible property to the department of general administration;

(3) All funds held by, or other moneys due to, the terminated state agency shall revert to the fund from which they were appropriated, or if that fund is abolished to the general fund;

(4) Notwithstanding the provisions of RCW 34.05.020, all rules made by a terminated state agency shall be repealed, without further action by the state agency, at the end of the period provided in this section, unless assumed and reaffirmed by the agency assuming the related legal responsibilities of the terminated state agency;

(5) All contractual rights and duties of a state agency shall be assigned or delegated to the agency assuming the responsibilities of the terminated state agency, or if there is none to such agency as the governor shall direct.

Sec. 230. RCW 49.46.010 and 1993 c 281 s 56 are each amended to read as follows:

As used in this chapter:

(1) "Director" means the director of labor and industries;

(2) "Wage" means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director;

(3) "Employ" includes to permit to work;

(4) "Employer" includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee;

(5) "Employee" includes any individual employed by an employer but shall not include:

(a) Any individual (i) employed as a hand harvest laborer and paid on a piece rate basis in an operation which has been, and is generally and customarily recognized as having been, paid on a piece rate basis in the region of employment; (ii) who commutes daily from his or her permanent residence to the farm on which he or she is employed; and (iii) who has been employed in agriculture less than thirteen weeks during the preceding calendar year;

(b) Any individual employed in casual labor in or about a private home, unless performed in the course of the employer's trade, business, or profession;

(c) Any individual employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman as those terms are defined and delimited by rules of the director. However, those terms shall be defined and delimited by the ((~~Washington personnel resources board~~)) director of personnel pursuant to chapter 41.06 RCW for employees employed under the director of personnel's jurisdiction;

(d) Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body or agency, or nonprofit organization where the employer-employee relationship does not in fact exist or where the services are rendered to such organizations gratuitously. If the individual receives reimbursement in lieu of compensation for normally incurred out-of-pocket expenses or receives a nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed not to exist for the purpose of this section or for purposes of membership or qualification in any state, local government or publicly supported retirement system other than that provided under chapter 41.24 RCW;

(e) Any individual employed full time by any state or local governmental body or agency who provides voluntary services but only with regard to the provision of the voluntary services. The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement or benefit rights under any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

(f) Any newspaper vendor or carrier;

(g) Any carrier subject to regulation by Part 1 of the Interstate Commerce Act;

(h) Any individual engaged in forest protection and fire prevention activities;

(i) Any individual employed by any charitable institution charged with child care responsibilities engaged primarily in the development of character or citizenship or promoting health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;

(j) Any individual whose duties require that he or she reside or sleep at the place of his or her employment or who otherwise spends a substantial portion of his or her work time subject to call, and not engaged in the performance of active duties;

(k) Any resident, inmate, or patient of a state, county, or municipal correctional, detention, treatment or rehabilitative institution;

(l) Any individual who holds a public elective or appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of the state legislature;

(m) All vessel operating crews of the Washington state ferries operated by the department of transportation;

(n) Any individual employed as a seaman on a vessel other than an American vessel.

(6) "Occupation" means any occupation, service, trade, business, industry, or branch or group of industries or employment or class of employment in which employees are gainfully employed.

NEW SECTION. Sec. 231. A new section is added to chapter 41.06 RCW to read as follows:

The personnel appeals board is hereby abolished and its powers, duties, and functions are hereby transferred to the Washington personnel resources board. All references to the director or personnel appeals board in the Revised Code of Washington shall be construed to mean the director or Washington personnel resources board.

NEW SECTION. Sec. 232. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the personnel appeals board shall be delivered to the custody of the Washington personnel resources board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the personnel appeals board shall be made available to the Washington personnel resources board. All funds, credits, or other assets held by the personnel appeals board shall be assigned to the Washington personnel resources board.

Any appropriations made to the personnel appeals board shall, on the effective date of this section, be transferred and credited to the Washington personnel resources board.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 233. All employees of the personnel appeals board are transferred to the jurisdiction of the Washington personnel resources board. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the Washington personnel resources board to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 234. All rules and all pending business before the personnel appeals board shall be continued and acted upon by the Washington personnel resources board. All existing contracts and obligations shall remain in full force and shall be performed by the Washington personnel resources board.

NEW SECTION. Sec. 235. The transfer of the powers, duties, functions, and personnel of the personnel appeals board shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 236. If apportionments of budgeted funds are required because of the transfers directed by sections 232 through 235 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

PART III

COLLECTIVE BARGAINING REFORM

NEW SECTION. Sec. 301. NEGOTIATION AND RATIFICATION OF COLLECTIVE BARGAINING AGREEMENTS. (1) For the purpose of negotiating collective bargaining agreements under this chapter, the employer shall be represented by the governor or governor's designee. For institutions of higher education, the governing body of the institution of higher education shall select management representatives who shall participate in the negotiations.

(2)(a) If an exclusive bargaining representative represents more than one bargaining unit, the exclusive bargaining representative shall negotiate one master collective bargaining agreement on behalf of all the employees in bargaining units that the exclusive bargaining representative represents. For those exclusive bargaining representatives who represent fewer than a total of five hundred employees each, negotiation shall be by a coalition of exclusive bargaining representatives that collectively represents at least five hundred employees and that includes one or more exclusive bargaining representatives that independently represent fewer than five hundred employees. The coalition shall bargain for a master collective bargaining agreement covering all of the employees represented by the coalition. Supplemental bargaining of agency-specific issues for inclusion in or as an addendum to the master collective bargaining agreement by the governor's designee and the exclusive bargaining representative is authorized, subject to the parties' agreement regarding the issues and procedures for supplemental bargaining. This section does not prohibit cooperation and coordination of bargaining between two or more exclusive bargaining representatives.

(b) This subsection (2) does not apply to exclusive bargaining representatives who represent employees of institutions of higher education.

(3) Collective bargaining negotiations under this chapter shall commence no later than October 1, 1994, for collective bargaining agreements that are to become effective no earlier than July 1, 1995. For subsequent agreements, negotiations shall commence and contracts become effective as the parties agree.

(4) The governor shall submit a request for funds necessary to implement the compensation and fringe benefit provisions in the master collective bargaining agreement or for legislation necessary to implement the agreement within ten days of the date on which the exclusive bargaining representative ratifies the agreement or, if the legislature is not in session, within ten days after the legislature next convenes. The legislature shall approve or reject the submission of the request for funds or legislation, or both, as a whole. If the legislature rejects or fails to act on the submission, either party may reopen all or part of the agreement or the exclusive bargaining representative may exercise its rights as provided in section 306 of this act.

(5) After the expiration date of a collective bargaining agreement negotiated under this chapter, all of the terms and conditions specified in the collective bargaining agreement remain in effect until the effective date of a subsequently negotiated agreement, not to exceed one year from the expiration date stated in the agreement. Thereafter, the employer may unilaterally implement according to law.

NEW SECTION. Sec. 302. SCOPE OF BARGAINING. (1) Except as otherwise provided in this chapter, the matters subject to bargaining include wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.

(2) The employer is not required to bargain over matters pertaining to:

(a) Inherent managerial policy such as the functions and programs of the employer, the employer's budget, the use of technology, and the organizational structure of the employer;

(b) Any retirement system or retirement benefit;

(d) Rules of the director of personnel or the Washington personnel resources board adopted under RCW 41.06.150 (2), (3), (4) only with respect to initial employment appointments, and the names of appointees, (11), (15), or (17) except as required in subsection (3) of this section.

(3) Matters subject to bargaining shall include the number of names to be certified for vacancies, promotional preferences, and the dollar amount expended on behalf of each employee for health care benefits. However, negotiations regarding promotional preferences shall be conducted between the employer and one coalition of all the exclusive bargaining representatives subject to this chapter and any provision agreed to by the employer and the coalition shall be included in all master collective bargaining agreements negotiated by the parties.

(4) The employer and the exclusive bargaining representative shall not agree to any proposal that would prevent the implementation of approved affirmative action plans or that would be inconsistent with the comparable worth agreement that provided the basis for the salary changes implemented beginning with the 1983-1985 biennium to achieve comparable worth.

(5) Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages, hours, and terms and conditions of employment and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail. A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.

NEW SECTION. Sec. 303. CONTENTS OF COLLECTIVE BARGAINING AGREEMENTS. (1) The employer and the exclusive bargaining representative who are the parties to a collective bargaining agreement shall reduce the agreement to writing and both shall execute it.

(2) A collective bargaining agreement shall contain provisions that:

(a) Provide for a grievance procedure that culminates with final and binding arbitration of all disputes arising over the interpretation or application of the collective bargaining agreement and that is valid and enforceable under its terms when entered into in accordance with this chapter; and

(b) Require processing of disciplinary actions or terminations of employment of employees covered by the collective bargaining agreement entirely under the procedures of the collective bargaining agreement. Any employee, when fully reinstated, shall be guaranteed all employee rights and benefits, including back pay, sick leave, vacation accrual, retirement and federal old age, survivors, and disability insurance act credits, but without back pay for any period of suspension.

(3) If a collective bargaining agreement between an employer and an exclusive bargaining representative is concluded after the termination date of the previous collective bargaining agreement between the employer and an employee organization representing the same or substantially the same employees, the effective date of the collective bargaining agreement may be the day after the termination of the previous collective bargaining agreement, and all benefits included in the new collective bargaining agreement, including wage or salary increases, may accrue beginning with that effective date.

NEW SECTION. Sec. 304. RIGHTS OF EMPLOYEES. Employees shall have the right to self-organization, to form, join, or assist employee organizations, to bargain collectively through representatives of their own choosing, and, except as may be limited by this chapter, to engage in other lawful concerted activities for the purpose of collective bargaining or other mutual aid or protection free from interference, restraint, or coercion, and shall also have the right to refrain from any or all such activities except to the extent that employees may be required to pay a fee to an exclusive bargaining representative under a union security provision authorized by this chapter.

NEW SECTION. Sec. 305. BARGAINING UNITS. (1) A bargaining unit of employees covered by this chapter existing on the effective date of this section shall be considered an appropriate unit, unless the unit does not meet the requirements of (a) and (b) of this subsection. The commission, after hearing upon reasonable notice to all interested parties, shall decide in each application for certification as an exclusive bargaining representative, the unit appropriate for certification. In determining the new units or modifications of existing units, the commission shall consider: The duties, skills, and working conditions of the employees; the history of collective bargaining; the extent of organization among the employees; the desires of the employees; and the avoidance of excessive fragmentation. However, a unit is not appropriate if it includes:

(a) Both supervisors and nonsupervisory employees. A unit that includes only supervisors may be considered appropriate if a majority of the supervisory employees indicates by vote that they desire to be included in such a unit; or

(b) More than one institution of higher education. For the purposes of this section, any branch or regional campus of an institution of higher education is part of that institution of higher education.

(2) The exclusive bargaining representatives certified to represent the bargaining units existing on the effective date of this section shall continue as the exclusive bargaining representative without the necessity of an election.

(3) If a single employee organization is the exclusive bargaining representative for two or more units, upon petition by the employee organization, the units may be consolidated into a single larger unit if the commission considers the larger unit to be appropriate. If consolidation is appropriate, the commission shall certify the employee organization as the exclusive bargaining representative of the new unit.

NEW SECTION. Sec. 306. REPRESENTATION. (1) The commission shall determine all questions pertaining to representation and shall administer all elections and be responsible for the processing and adjudication of all disputes that arise as a consequence of elections. The commission shall adopt rules that provide for at least the following:

(a) Secret balloting;

(b) Consulting with employee organizations;

(d) Absentee voting;

(e) Procedures for the greatest possible participation in voting;

(f) Campaigning on the employer's property during working hours; and

(g) Election observers.

(2)(a) If an employee organization has been certified as the exclusive bargaining representative of the employees of a bargaining unit, the employee organization may act for and negotiate master collective bargaining agreements that will include within the coverage of the agreement all employees in the bargaining unit as provided in section 301(2) of this act. However, if a master collective bargaining agreement is in effect for the exclusive bargaining representative, it shall apply to the bargaining unit for which the certification has been issued. Nothing in this section requires the parties to engage in new negotiations during the term of that agreement.

(b) This subsection (2) does not apply to exclusive bargaining representatives who represent employees of institutions of higher education.

(3) The certified exclusive bargaining representative shall be responsible for representing the interests of all the employees in the bargaining unit. This section shall not be construed to limit an exclusive representative's right to exercise its discretion to refuse to process grievances of employees that are unmeritorious.

(4) No question concerning representation may be raised if:

(a) Fewer than twelve months have elapsed since the last certification or election; or

(b) A valid collective bargaining agreement exists covering the unit, except for that period of no more than one hundred twenty calendar days nor less than ninety calendar days before the expiration of the contract.

NEW SECTION. Sec. 307. RIGHT TO STRIKE. (1) Employees covered by this chapter who are eligible for collective bargaining may strike only as provided in this section, subject to the employer's right to seek an injunction under subsection (3) of this section. The right to strike must be exercised by an exclusive bargaining representative as a whole, as evidenced by an affirmative vote authorizing a strike, and may not be exercised by the membership of a single bargaining unit, unless the exclusive bargaining representative represents only a single bargaining unit. The right to strike may be exercised under the conditions of either (a) or (b) of this subsection as follows:

(a)(i) The master collective bargaining agreement between their exclusive bargaining representative and the employer has expired, or, if there is no agreement between their exclusive bargaining representative and the employer, an impasse has occurred;

(ii) At least a majority of the members of the exclusive bargaining representative votes by secret ballot affirmatively to authorize a strike; and

(iii) The exclusive bargaining representative and the employer have participated, in good faith, in mediation for a reasonable time; or

(b)(i) At least a majority of the members of the exclusive bargaining representative votes by secret ballot affirmatively to authorize a strike; and

(ii) The legislature rejects or fails to act on the submission of a request for funding a collective bargaining agreement as provided in section 301(4) of this act.

(2) In addition to the other requirements of subsection (1) of this section, the exclusive bargaining representative shall give ten days' written notice of its intent to strike to the commission and the employer.

(3) If it can be shown that a strike has begun to or will likely threaten the health, safety, or welfare of the public, the employer may apply to the superior court in Thurston county for an order enjoining some or all of the employees from striking. If some or all employees are enjoined from striking under this subsection, the impasse or dispute shall be submitted for final and binding arbitration as provided in section 308 of this act.

(4) Nothing in this section precludes enjoining an unlawful strike.

NEW SECTION. Sec. 308. INTEREST ARBITRATION. (1) If a strike is enjoined under section 307(3) of this act, final and binding arbitration of the dispute as provided in this section shall be substituted for the right to strike.

(2) The issues for determination by the interest arbitrator shall be limited to the issues at impasse in the mediation proceedings.

(3) The parties may voluntarily agree to select an arbitrator, or if agreement is not reached within seven days of the date the strike was enjoined, the commission shall submit seven arbitrators' names to the parties. Each party shall alternately strike three names from the list, the order of striking to be determined by lot. The remaining arbitrator shall be appointed as the arbitrator. Each party shall share equally in paying the fees and expenses of the arbitrator.

(4) Within seven days following the designation of the arbitrator, each party shall file with the arbitrator and the commission and serve on the opposite party, the complete written proposals it intends to submit to interest arbitration.

(5) The arbitrator, in consultation with the parties, shall promptly establish a date, time, and place for hearing and shall provide reasonable notice thereof to the parties to the dispute. A hearing, which shall be informal, shall be held, and each party shall have the opportunity to present evidence and make argument. Any oral testimony or documentary evidence or other data deemed relevant by the arbitrator may be received in evidence. The arbitrator may administer oaths, require the attendance of witnesses, and require the production of books, papers, contracts, agreements, and documents deemed to be material to a just determination of the issues in dispute. If any person refuses to obey a subpoena issued by the arbitrator or refuses to be sworn or to make an affirmation to testify, or any witness, party, or attorney for a party is guilty of any contempt while in attendance at any hearing held under this section, the arbitrator or any party may invoke the jurisdiction of the superior court of Thurston county, or of any county in which the labor dispute exists, and the court shall have jurisdiction to issue an appropriate order. Any failure to obey such an order may be punished by the court as a contempt. The hearing conducted by the arbitrator shall be concluded within twenty-five days following the designation of the arbitrator unless the parties agree to a longer period. Negotiations may continue throughout the impasse procedures.

(6) The arbitrator shall, within twenty days following the conclusion of the hearing, make written findings of fact and a written determination of the issues in dispute, based on the evidence presented. The parties shall submit a final offer on each separate issue remaining at impasse to the arbitrator and the other party. On each separate issue, the arbitrator shall determine that either the final offer of the employer or the final offer of the employee representative shall be incorporated into the final collective bargaining agreement. The arbitrator shall not amend the offer of either party on any issue. A copy of the interest arbitration award shall be served on the commission and on each of the parties to the dispute. Except as otherwise provided in subsection (8) of this section, the determination shall be final and binding upon both parties.

(7) In making the determination, the arbitrator shall take into consideration the following factors:

(a) The constitutional and statutory authority of the employer;

(b) Stipulations of the parties;

(c) A comparison of the wages, hours, and conditions of employment of the employees involved in the proceedings with the wages, hours, and conditions of employment of other employees performing similar services and with other employees generally;

(d) The average consumer prices for goods and services, commonly known as the cost of living;

(e) Changes in any of the circumstances in this subsection (7) during the pendency of such proceedings; and

(f) Such other factors, not confined to (a) through (e) of this subsection, that are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment.

(8) Those portions of an arbitrator's award made under subsection (6) of this section that require appropriation of funds or legislative action shall be submitted to the legislature for approval or rejection. If the legislature rejects or fails to act on the submission, the dispute shall be resubmitted for arbitration as provided in this section.

(9) In the performance of his or her duties under this chapter, the arbitrator exercises a state function and is, for the purposes of this chapter, a state agency. Chapter 34.05 RCW does not apply to proceedings before an interest arbitrator.

(10) Except as ordered through proceedings before an interest arbitrator, existing wages, hours, and other terms and conditions of employment shall not be changed by action of either party without the consent of the other, but a party may so consent without prejudice to its rights or position under this section.

(11) If a party to negotiations subject to this chapter refuses to submit to the procedures set forth in this section, the other party or the commission, on its own motion, may invoke the jurisdiction of the superior court of Thurston county, or of any county in which the labor dispute exists, and the court shall have jurisdiction to issue an appropriate order. A failure to obey such order may be punished by the court as a contempt thereof.

NEW SECTION. Sec. 309. UNION SECURITY. (1) A collective bargaining agreement may contain a union security provision requiring as a condition of employment the payment, no later than the thirtieth day following the beginning of employment or the effective date of this section, whichever is later, of an agency shop fee to the employee organization that is the exclusive bargaining representative for the bargaining unit in which the employee is employed. The amount of the fee shall be equal to the amount required to become a member in good standing of the employee organization. Each employee organization shall establish a procedure by which any employee so requesting may pay a representation fee no greater than the part of the membership fee that represents a pro rata share of expenditures for purposes germane to the collective bargaining process, to contract administration, or to pursuing matters affecting wages, hours, and other conditions of employment.

(2) An employee who is covered by a union security provision and who asserts a right of nonassociation based on bona fide religious tenets or teachings of a church or religious body of which the employee is a member, shall, as a condition of employment, make payments to the employee organization, for purposes within the program of the employee organization as designated by the employee that would be in harmony with his or her individual conscience. The amount of the payments shall be equal to the periodic dues and fees uniformly required as a condition of acquiring or retaining membership in the employee organization minus any included monthly premiums for insurance programs sponsored by the employee organization. The employee shall not be a member of the employee organization but is entitled to all the representation rights of a member of the employee organization.

(3) Upon filing with the employer the written authorization of a bargaining unit employee under this chapter, the employee organization that is the exclusive bargaining representative of the bargaining unit shall have the exclusive right to have deducted from the salary of the employee an amount equal to the fees and dues uniformly required as a condition of acquiring or retaining membership in the employee organization. The fees and dues shall be deducted each pay period from the pay of all employees who have given authorization for the deduction and shall be transmitted by the employer as provided for by agreement between the employer and the employee organization.

(4) Employee organizations that before the effective date of this section were entitled to the benefits of this section shall continue to be entitled to these rights.

NEW SECTION. Sec. 310. UNFAIR LABOR PRACTICES ENUMERATED. (1) It is an unfair labor practice for an employer to:

(a) Interfere with, restrain, or coerce employees in the exercise of their rights guaranteed by this chapter;

(b) Control, dominate, or interfere with an exclusive bargaining representative;

(d) Refuse to engage in good faith collective bargaining.

(2) It is an unfair labor practice for an employee organization to:

(a) Interfere with, restrain, or coerce:

(i) Employees in the exercise of the rights guaranteed in this chapter. However, this subsection (2)(a)(i) shall not impair the right of an employee organization to prescribe its own rules with respect to the acquisition or retention of membership in the employee organization; or

(ii) An employer in the selection of its representatives for the purposes of collective bargaining or the adjustment of grievances;

(b) Induce the employer to commit an unfair labor practice;

(d) Refuse to engage in good faith collective bargaining.

NEW SECTION. Sec. 311. UNFAIR LABOR PRACTICE PROCEDURES. (1) The commission shall prevent any unfair labor practice and issue appropriate remedial orders. A complaint shall not be processed for any unfair labor practice occurring more than six months before the filing of the complaint with the commission. The commission's authority shall not be affected or impaired by any means of adjustment, mediation, or conciliation in labor disputes that have been or may hereafter be established by law.

(2) If a complaint is filed concerning any unfair labor practice, the commission may issue and cause to be served a notice of hearing before the commission at a place fixed in the complaint, to be held not less than seven days after the serving of the complaint. Any such complaint may be amended by the commission any time before the issuance of an order based on the complaint. The person so complained of may file an answer to the original or amended complaint and to appear in person or otherwise to give testimony at the place and time set in the complaint. In the discretion of the commission, any other person may be allowed to intervene in the proceedings and to present testimony. In any such proceeding the commission shall not be bound by technical rules of evidence prevailing in the courts of law or equity.

(3) For the purpose of all hearings and investigations, that, in the opinion of the commission, are necessary and proper for the exercise of the powers vested in it by this section, the commission shall at all reasonable times have access to, for the purposes of examination, and the right to examine, copy, or photograph any evidence, including payrolls or lists of employees, of any person being investigated or proceeded against that relates to any matter under investigation or in question. The commission may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence that relates to any matter under investigation or in question before the commission. The commission, or any agent or agency designated by the commission for such purposes, may administer oaths and affirmations, examine witnesses, and receive evidence.

(4) The commission, or any party to the commission proceedings, thirty days after the commission has entered its findings of fact, may petition the superior court of Thurston county or the superior court within the county where the unfair labor practice in question occurred or where any person charged with the unfair labor practice resides or transacts business, or if such court be on vacation or in recess, then to the superior court of any county adjoining the county where the unfair labor practice in question occurred or where any person charged with the unfair labor practice resides or transacts business, for the enforcement of the order and for appropriate temporary relief or restraining order, and shall certify and file in the court a transcript of the entire record in the proceeding, including the pleadings and testimony upon which the order was made and the findings and order of the commission. Upon filing the record, the court shall cause notice of the record to be served upon such person, and thereupon shall have jurisdiction of the proceeding and of the question determined in the record, and may grant such temporary relief or restraining order as it deems just and proper, and make and enter upon the pleadings, testimony, and proceedings set forth in the transcript a decree enforcing, modifying, and enforcing as so modified, or setting aside in whole or in part the order of the commission.

NEW SECTION. Sec. 312. ENFORCEMENT OF COLLECTIVE BARGAINING AGREEMENTS. (1) For the purposes of implementing arbitration under grievance procedures required by section 303 of this act, the parties to a collective bargaining agreement may agree on one or more permanent umpires to serve as arbitrator, or may agree on any impartial person to serve as arbitrator, or may agree to select arbitrators from any source available to them, including federal and private agencies, in addition to the staff and list of arbitrators maintained by the commission. If the parties cannot agree to the selection of an arbitrator, the commission shall supply a list of names in accordance with the procedures established by the commission.

(2) An arbitrator may require any person to attend as a witness and to bring with him or her any book, record, document, or other evidence. The fees for such attendance shall be paid by the party requesting issuance of the subpoena and shall be the same as the fees of witnesses in the superior court. Arbitrators may administer oaths. Subpoenas shall issue and be signed by the arbitrator or the director and shall be served in the same manner as subpoenas to testify before a court of record in this state. If any person so summoned to testify refuses or neglects to obey such subpoena, upon petition authorized by the arbitrator or director, the superior court may compel the attendance of the person before the arbitrator or punish the person for contempt in the same manner provided for the attendance of witnesses or the punishment of them in the courts of this state.

(3) The arbitrator shall appoint a time and place for the hearing and notify the parties thereof, and may adjourn the hearing from time to time as may be necessary, and, on application of either party and for good cause, may postpone the hearing to a time not extending beyond the date fixed by the collective bargaining agreement for making the award. The arbitration award shall be in writing and signed by the arbitrator. The arbitrator shall, promptly upon its rendition, serve a true copy of the award on each of the parties or their attorneys.

(4) If a party to a collective bargaining agreement negotiated under this chapter refuses to submit a grievance for arbitration, the other party to the collective bargaining agreement may invoke the jurisdiction of the superior court of Thurston county or of any county in which the labor dispute exists and such court shall have jurisdiction to issue an order compelling arbitration. Disputes concerning compliance with grievance procedures shall be reserved for determination by the arbitrator. Arbitration shall be ordered if the grievance states a claim that on its face is covered by the collective bargaining agreement. Doubts as to the coverage of the arbitration clause shall be resolved in favor of arbitration.

(5) If a party to a collective bargaining agreement negotiated under this chapter refuses to comply with the award of an arbitrator determining a grievance arising under the collective bargaining agreement, the other party to the collective bargaining agreement may invoke the jurisdiction of the superior court of Thurston county or of any county in which the labor dispute exists and such court shall have jurisdiction to issue an order enforcing the arbitration award.

NEW SECTION. Sec. 313. STATE EMPLOYMENT RELATIONS COMMISSION. (1) There is created the state employment relations commission to administer this chapter. The commission shall consist of three members who shall be appointed by the governor, subject to confirmation by the senate. One of the initial members shall be appointed for a term of two years, one for a term of three years, and one for a term of four years. Their successors shall be appointed for terms of four years each, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whom he or she succeeds. Commission members shall be eligible for reappointment. The governor shall designate one member to serve as chair of the commission. Persons so appointed shall not hold any other employment with the state, shall not have been an officer of a political party for a period of one year immediately before the appointment, and shall not be or become a candidate for partisan elective public office during the term to which they are appointed. Any member of the commission may be removed by the governor, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause. Commission members shall not be eligible for state retirement under chapter 41.40 RCW by virtue of their service on the commission.

(2) In making member appointments initially, and subsequently thereafter, the governor shall appoint persons knowledgeable in the area of labor and employment relations. One member shall have a background of expertise from a management perspective, one member shall have a background of expertise from a labor perspective, and one member shall be a neutral public member.

(3) A vacancy in the commission does not impair the right of the remaining members to exercise all of the powers of the commission, and two members of the commission shall, at all times, constitute a quorum of the commission.

(4) At the close of each fiscal year, the commission shall make a written report to the legislature and to the governor stating the cases it has heard, the decisions it has rendered, the names, salaries, and duties of all employees and officers in the employ or under the supervision of the commission, and an account of all moneys it has disbursed.

NEW SECTION. Sec. 314. COMMISSION COMPENSATION. Each member of the commission shall be compensated in accordance with RCW 43.03.250. Members of the commission shall also be reimbursed for travel expenses incurred in the discharge of their official duties on the same basis as is provided in RCW 43.03.050 and 43.03.060. The payment of all of the expenses of the commission, including travel expenses incurred by the members or employees of the commission under its orders, is subject to the provisions of RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 315. COMMISSION DUTIES. (1) The commission shall, in order to prevent or minimize interruptions growing out of labor disputes, assist employers and employees to settle such disputes through mediation.

(2) The commission shall appoint a director whose annual salary shall be determined under the provisions of RCW 43.03.028. The director shall perform such duties and have such powers as the commission prescribes in order to implement and enforce this chapter. In addition to the performance of administrative duties, the commission may delegate to the director authority with respect to, but not limited to, representation proceedings, unfair labor practice proceedings, mediation of labor disputes, arbitration of disputes concerning the interpretation or application of a collective bargaining agreement, and arbitration of disputes concerning the terms of a collective bargaining agreement. Such delegation shall not eliminate a party's right of appeal to the commission. The director, with such assistance as may be provided by the attorney general and such additional legal assistance consistent with chapter 43.10 RCW, may on behalf of the commission, if necessary to carry out or enforce any action or decision of the commission, petition any court of competent jurisdiction for an order requiring compliance with the action or decision.

(3) The commission shall employ such employees as it may from time to time find necessary for the proper performance of its duties, consistent with this chapter.

(4) The commission, through the director, may provide its services in any state employee labor dispute upon the request of one or more of the parties to the dispute.

NEW SECTION. Sec. 316. COMMISSION AUTHORITY. The commission may adopt rules as necessary to carry out the provisions of this chapter, consistent with the best standards of labor management relations.

NEW SECTION. Sec. 317. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Agency" means any agency as defined in RCW 41.06.020 and covered by chapter 41.06 RCW.

(2) "Arbitration" means the procedure whereby parties involved in an impasse submit their differences to a third party for a final and binding determination.

(3) "Collective bargaining" means the performance of the mutual obligation of the representatives of the employer and the exclusive bargaining representative to meet at reasonable times and to bargain in good faith in an effort to reach agreement with respect to the subjects of bargaining specified under section 302 of this act. The obligation to bargain does not compel either party to agree to a proposal or to make a concession, except as otherwise provided in this chapter.

(4) "Commission" means the state employment relations commission.

(5) "Confidential employee" means an employee who, in the regular course of his or her duties, assists in a confidential capacity persons who formulate, determine, and effectuate management policies with regard to labor relations or who, in the regular course of his or her duties, has authorized access to information relating to the effectuation or review of the employer's collective bargaining policies, or who assists or aids a manager.

(6) "Director" means the director of the state employment relations commission.

(7) "Employee" means any employee, including employees whose work has ceased in connection with the pursuit of lawful activities protected by this chapter, covered by chapter 41.06 RCW, except:

(a) Employees covered for collective bargaining by chapter 41.56 RCW;

(b) Confidential employees;

(d) Internal auditors in any agency; or

(e) Any employee of the commission, the office of financial management, the department of personnel, or the attorney general's office.

(8) "Employee organization" means any organization, union, or association in which employees participate and that exists for the purpose, in whole or in part, of collective bargaining with employers.

(9) "Employer" means the state of Washington.

(10) "Exclusive bargaining representative" means any employee organization that has been certified under this chapter as the representative of the employees in an appropriate bargaining unit.

(11) "Institutions of higher education" means 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.

(12) "Labor dispute" means any controversy concerning terms, tenure, or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment with respect to the subjects of bargaining provided in this chapter, regardless of whether the disputants stand in the proximate relation of employer and employee.

(13) "Manager" means "manager" as defined in RCW 41.06.022.

(14) "Strike" means any action by employees or employee organizations, acting in concert, wherein any or all of the employees withhold or otherwise fail or refuse to perform fully their normal duties or services as employees.

(15) "Supervisor" means any employee whose principal work is substantially different from that of his or her subordinates and who has authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, direct, reward, or discipline employees, or to adjust employee grievances, or effectively to recommend such action, if the exercise of the authority is not merely routine or clerical in nature but requires the consistent exercise of independent judgment.

(16) "Unfair labor practice" means any unfair labor practice listed in section 310 of this act.

NEW SECTION. Sec. 318. All powers, duties, and functions of the department of personnel pertaining to collective bargaining are transferred to the state employment relations commission except that arbitration of grievances filed under a collective bargaining agreement existing before the effective date of this section and not yet finally determined by the effective date of this section, shall be transferred to the Washington personnel resources board.

NEW SECTION. Sec. 319. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of personnel pertaining to the powers, functions, and duties transferred in section 318 of this act shall be delivered to the custody of the state employment relations commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of personnel in carrying out the powers, functions, and duties transferred in section 318 of this act shall be made available to the state employment relations commission. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred in section 318 of this act shall be assigned to the state employment relations commission.

Any appropriations made to the department of personnel for carrying out the powers, functions, and duties transferred in section 318 of this act shall, on the effective date of this section, be transferred and credited to the state employment relations commission.

NEW SECTION. Sec. 320. All employees of the department of personnel engaged in performing the powers, functions, and duties transferred in section 318 of this act are transferred to the jurisdiction of the state employment relations commission. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the state employment relations commission without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 321. All business pending before the department of personnel pertaining to the powers, functions, and duties transferred in section 318 of this act shall be continued and acted upon by the state employment relations commission. All existing contracts and obligations of the department of personnel shall remain in full force and shall be performed by the state employment relations commission.

NEW SECTION. Sec. 322. The transfer of the powers, duties, functions, and personnel of the department of personnel shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 323. If apportionments of budgeted funds are required because of the transfers directed by sections 318 through 322 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

PART IV

MISCELLANEOUS

NEW SECTION. Sec. 401. The following acts or parts of acts are each repealed:

(1) RCW 41.06.140 and 1961 c 1 s 14;

(2) RCW 41.06.163 and 1993 c 281 s 30, 1987 c 185 s 9, 1986 c 158 s 6, 1979 c 151 s 59, & 1977 ex.s. c 152 s 3;

(3) RCW 41.06.165 and 1977 ex.s. c 152 s 4;

(4) RCW 41.06.340 and 1993 c 281 s 35 & 1969 ex.s. c 215 s 13;

(5) RCW 41.06.380 and 1979 ex.s. c 46 s 2;

(6) RCW 41.06.382 and 1979 ex.s. c 46 s 1;

(7) RCW 41.50.804 and 1993 c 281 s 40 & 1975-'76 2nd ex.s. c 105 s 17;

(8) RCW 41.64.010 and 1981 c 311 s 1;

(9) RCW 41.64.020 and 1981 c 311 s 3;

(10) RCW 41.64.030 and 1984 c 287 c 73, 1984 c 34 s 4, & 1981 c 311 s 4;

(11) RCW 41.64.040 and 1981 c 311 s 5;

(12) RCW 41.64.050 and 1981 c 311 s 6;

(13) RCW 41.64.060 and 1981 c 311 s 7;

(14) RCW 41.64.070 and 1981 c 311 s 8;

(15) RCW 41.64.080 and 1981 c 311 s 9;

(16) RCW 41.64.090 and 1993 c 281 s 41 & 1981 c 311 s 10;

(17) RCW 41.64.100 and 1981 c 311 s 11;

(18) RCW 41.64.110 and 1985 c 461 s 7 & 1981 c 311 s 12;

(19) RCW 41.64.120 and 1981 c 311 s 13;

(20) RCW 41.64.130 and 1981 c 311 s 14;

(21) RCW 41.64.140 and 1988 c 202 s 42 & 1981 c 311 s 15; and

(22) RCW 41.64.910 and 1981 c 311 s 24.

NEW SECTION. Sec. 402. SECTION CAPTIONS. Part and section captions used in this act constitute no part of the law.

NEW SECTION. Sec. 403. Sections 301 through 317 and 406 of this act shall constitute a new chapter in Title 41 RCW.

NEW SECTION. Sec. 404. The governor shall take such action as is necessary, including appointment of the members of the state employment relations commission, to ensure that sections 301 through 317 of this act are implemented on their effective date.

NEW SECTION. Sec. 405. Until July 1, 1995, the state employment relations commission shall contract with the department of personnel for labor relations staffing necessary to carry out its functions.

NEW SECTION. Sec. 406. Any collective bargaining agreement entered into before the effective date of sections 301 through 317 of this act covering employees affected by sections 301 through 317 of this act that expires after the effective date of sections 301 through 317 of this act shall, unless a superseding agreement complying with this chapter is negotiated by the parties, remain in full force during its duration, but shall not be renewed or extended.

NEW SECTION. Sec. 407. 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. 408. Sections 101, 102, 201 through 236, 301 through 317 and 401 through 407 of this act shall take effect July 1, 1994.

NEW SECTION. Sec. 409. Sections 318 through 323 of this act shall take effect July 1, 1995.