5048-S

AN ACT Relating to disclosure of compensation for local government chief administrative officers; adding a new section to chapter 42.16 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. It is the policy of the legislature that citizens have a right to know the total compensation that is paid to local government chief administrative officers.

NEW SECTION. Sec. 2. A new section is added to chapter 42.16 RCW to read as follows:

(1)(a) All local governments shall fully disclose in their adopted budget the total compensation to be paid or provided to chief administrative officers when that total exceeds one hundred thousand dollars in any one calendar year. The one hundred thousand dollar amount shall be adjusted annually based on the governmental price index established by the department of revenue under RCW 82.14.200. The disclosure must be on a separate page in the budget and must include the employee's name, title, and a list of the compensation elements and their respective dollar amounts or values. Those items of compensation listed that are not available to all employees must be identified. Any change in compensation for the chief administrative officer not available to all employees must be identified as an agenda item and disclosed at an open public meeting.

(b) After a chief administrative officer is retained, a local government shall disclose, as an agenda item at an open public meeting, the terms and conditions of employment when the total compensation will exceed one hundred thousand dollars in any one calendar year. The terms and conditions disclosed shall include:

(i) Compensation;

(ii) Moving expenses paid;

(iii) Terms of a separation agreement including severance pay; and

(iv) Any other nonrecurring expenses.

(c) Upon termination of a chief administrative officer subject to (a) of this subsection, the local government shall disclose, as an agenda item at an open public meeting, the terms and conditions of any separation agreement, including severance pay, costs of outplacement counseling, and any other compensation.

(2)(a) For the purposes of this section, "local government" means a city, town, county, special purpose district, school district, or other municipal corporation or quasi-municipal corporation.

(b) For the purposes of this section, "chief administrative officer" means that person who has general administrative responsibility over the affairs of the local government as determined by the legislative authority, the elected executive of the local government, or the board of directors of a school district and any person who has general administrative responsibility of a function of the local government when that person is appointed by a governing board or other authority that is appointed by the elected executive of the local government or the legislative authority of the local government.

(3) For the purposes of this section, "compensation" includes, but is not limited to, the annual dollar value of the following cash and noncash compensation:

(a) Base salary and benefits, listed separately, available to all employees;

(b) Perquisites and other personal benefits;

(d) Performance incentives;

(e) Contributions to trusts or retirement plans;

(f) Insurance premiums;

(g) Vehicle allowances or vehicles furnished to the employee;

(h) Tax or financial planning services;

(i) Health, recreation, professional, service, or social organization membership dues;

(j) Annuities; and

(k) Child and elder care services.

NEW SECTION. Sec. 3. The state auditor shall establish and consult with a temporary committee to develop definitions and guidelines that meet the intent and requirements of section 2 of this act. The committee shall include but not be limited to representatives from local government as defined in section 2 of this act. Definitions and guidelines under this section shall be established before September 1, 1995.