Z‑0325.4   _____________________________________________

 

HOUSE BILL 1421

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Representatives Romero, D. Schmidt, Ogden, Kenney and Miloscia; by request of Governor Locke

 

Read first time 01/25/2001.  Referred to Committee on State Government.

_1      AN ACT Relating to consolidating the department of retirement

_2  systems and the department of personnel; amending RCW 41.06.020,

_3  41.06.130, 41.50.010, 41.54.010, 43.17.020, 42.17.2401, and

_4  43.33A.020; reenacting and amending RCW 43.17.010; adding a new

_5  section to chapter 41.06 RCW; adding a new chapter to Title 43

_6  RCW; creating new sections; repealing RCW 41.06.030, 41.50.020,

_7  and 41.50.050; and providing an effective date.

     

_8  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_9      NEW SECTION.  Sec. 1.  The legislature recognizes that the

10  challenge of attracting and retaining skilled employees to carry

11  out vital state government functions is of utmost importance.  This

12  task is even more critical as state agencies face an increasingly

13  competitive job market and an aging state work force that is

14  retiring in record numbers.

15      To meet this challenge effectively, the state must have an

16  integrated human resources management structure to address

17  comprehensively present and future work force needs.  The state's

18  pension, compensation, and personnel laws, policies, and practices

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_1  must be coordinated and focused on ensuring productive employees

_2  and well-managed systems to support agencies, employees, the

_3  legislature, and the public.  The current state structure is

_4  fragmented, with personnel, compensation, and retirement functions

_5  in separate agencies.  This makes administrative efficiencies and

_6  economies, improvements in customer service and employee

_7  communications, and strategic planning and systems integration

_8  more difficult to achieve.

_9      It is, therefore, the intent of the legislature to consolidate

10  operations of the departments of personnel and retirement systems

11  to unify human resources functions for state government.  To

12  accomplish this goal, this act transfers the powers, duties, and

13  functions of the departments of personnel and retirement systems

14  to a new department of human resources.

15      By combining the two agencies, the legislature expects a

16  strengthened and streamlined department of human resources.  In

17  addition to current duties, it is the intent of the legislature

18  that the new department, subject to available resources,

19  concentrate its efforts on the following goals and objectives:

20      (1) Implementation of an integrated state work force plan that

21  addresses the present and future skill needs of state agencies;

22      (2) Development of coordinated personnel, compensation, and

23  retirement information services and systems to support employees,

24  management, the legislature, and the public; and

25      (3) Achievement of efficiencies and economies in

26  administration.

     

27      NEW SECTION.  Sec. 2.  Unless the context clearly requires

28  otherwise, the definitions in this section apply throughout this

29  chapter.

30      (1) "Department" means the department of human resources.

31      (2) "Director" means the director of human resources.

     

32      NEW SECTION.  Sec. 3.  There is created a department of state

33  government to be known as the department of human resources.  The

34  department is vested with all powers and duties transferred to it

35  under this chapter and such other powers and duties as may be

36  authorized by law.  The department of personnel and the department

HB 1421                        p. 2

_1  of retirement systems are abolished and their powers, duties, and

_2  functions are transferred to the department of human resources.  All

_3  references in the Revised Code of Washington to the director or

_4  department of personnel or the director or department of

_5  retirement systems shall be construed to mean the director or

_6  department of human resources.

     

_7      NEW SECTION.  Sec. 4.  The executive head and appointing

_8  authority of the department is the director.  The director shall be

_9  appointed by the governor, subject to confirmation by the senate,

10  and shall serve at the pleasure of the governor.  The director shall

11  be paid a salary to be fixed by the governor in accordance with

12  RCW 43.03.040.

     

13      NEW SECTION.  Sec. 5.  In addition to other powers and duties

14  granted or transferred to the director, the director shall have

15  the following powers and duties:

16      (1) Supervise and administer the department in accordance with

17  law;

18      (2) Appoint personnel and prescribe their duties.  Except as

19  otherwise provided by law, personnel of the department are subject

20  to chapter 41.06 RCW, the state civil service law;

21      (3) Appoint a deputy director and such assistant directors and

22  special assistants as may be needed to administer the

23  department.  These employees are exempt from the provisions of

24  chapter 41.06 RCW, the state civil service law;

25      (4) Enter into contracts on behalf of the department;

26      (5) Adopt such rules as are necessary to carry out the powers,

27  duties, and functions of the department, except where rule-making

28  authority is otherwise granted by law to the personnel resources

29  board;

30      (6) Delegate powers, duties, and functions as the director

31  deems necessary for efficient administration, but the director

32  shall be responsible for the official acts of the officers and

33  employees of the department;

34      (7) Advise the governor and the legislature with respect to

35  matters under the jurisdiction of the department;

                               p. 3                       HB 1421

 

_1      (8) Accept and expend grants, gifts, or other funds that are

_2  related to the purposes of the department;

_3      (9) Carry out the policies of the governor;

_4      (10) Create or abolish such administrative structures internal

_5  to the department as the director deems appropriate, except as

_6  otherwise specified by law; and

_7      (11) Establish advisory groups as may be necessary to carry out

_8  the purposes of the department.

     

_9      NEW SECTION.  Sec. 6.  This chapter shall not be construed to

10  interfere with the powers, duties, and authority of the Washington

11  personnel resources board created in RCW 41.06.110.

     

12      NEW SECTION.  Sec. 7.  A new section is added to chapter 41.06

13  RCW to read as follows:

14      In addition to the exemptions under RCW 41.06.070, the

15  provisions of this chapter shall not apply in the department of

16  human resources to the director, the director's personal

17  secretary, the deputy director, all assistant directors and

18  special assistants, and one confidential secretary for each of

19  these officers.

     

20      NEW SECTION.  Sec. 8.  (1)(a) All reports, documents, surveys,

21  books, records, files, papers, or written material connected with

22  the powers, duties, and functions transferred by this act shall be

23  delivered to the custody of the department of human resources.  All

24  cabinets, furniture, office equipment, motor vehicles, and other

25  tangible property employed in connection with the powers, duties,

26  and functions transferred by this act shall be made available to

27  the department of human resources.  All funds, credits, or other

28  assets held in connection with the powers, duties, and functions

29  transferred by this act shall be assigned to the department of

30  human resources.

31      (b) Any appropriations made in connection with the powers,

32  duties, and functions transferred by this act shall, on the

33  effective date of this section, be transferred and credited to the

34  department of human resources.

35      (c) If any question arises as to the transfer of any personnel,

HB 1421                        p. 4

_1  funds, books, documents, records, papers, files, equipment, or

_2  other tangible property used or held in the exercise of the powers

_3  and the performance of the duties and functions transferred, the

_4  director of financial management shall make a determination as to

_5  the proper allocation and certify the same to the state agencies

_6  concerned.

_7      (2) All employees of the department of retirement systems and

_8  the department of personnel are transferred to the jurisdiction of

_9  the department of human resources.  All employees classified under

10  chapter 41.06 RCW, the state civil service law, are assigned to

11  the department of human resources to perform their usual duties

12  upon the same terms as formerly, without any loss of rights,

13  subject to any action that may be appropriate thereafter in

14  accordance with the laws and rules governing state civil service.

15      (3) All rules and all pending business before any agency of

16  state government pertaining to the powers, duties, and functions

17  transferred by this act shall be continued and acted upon by the

18  department of human resources.  All existing contracts and

19  obligations shall remain in full force and shall be performed by

20  the department of human resources.

21      (4) The transfer of the powers, duties, functions, and

22  personnel under this section shall not affect the validity of any

23  act performed before the effective date of this section.

24      (5) If apportionments of budgeted funds are required because of

25  the transfers directed by this section, the director of financial

26  management shall certify the apportionments to the agencies

27  affected, the state auditor, and the state treasurer.  Each of these

28  shall make the appropriate transfer and adjustments in funds and

29  appropriation accounts and equipment records in accordance with

30  the certification.

31      (6) Nothing contained in this section may be construed to alter

32  any existing collective bargaining unit or the provisions of any

33  existing collective bargaining agreement until the agreement has

34  expired or until the bargaining unit has been modified by action

35  of the personnel resources board as provided by law.

     

36      Sec. 9.  RCW 41.06.020 and 1993 c 281 s 19 are each amended to read

37  as follows:

 

                               p. 5                       HB 1421

_1      Unless the context clearly indicates otherwise, the words used

_2  in this chapter have the meaning given in this section.

_3      (1) "Agency" means an office, department, board, commission, or

_4  other separate unit or division, however designated, of the state

_5  government and all personnel thereof; it includes any unit of

_6  state government established by law, the executive officer or

_7  members of which are either elected or appointed, upon which the

_8  statutes confer powers and impose duties in connection with

_9  operations of either a governmental or proprietary nature.

10      (2) "Board" means the Washington personnel resources board

11  established under the provisions of RCW 41.06.110, except that

12  this definition does not apply to the words "board" or "boards"

13  when used in RCW 41.06.070.

14      (3) "Classified service" means all positions in the state

15  service subject to the provisions of this chapter.

16      (4) "Competitive service" means all positions in the classified

17  service for which a competitive examination is required as a

18  condition precedent to appointment.

19      (5) "Comparable worth" means the provision of similar salaries

20  for positions that require or impose similar responsibilities,

21  judgments, knowledge, skills, and working conditions.

22      (6) "Noncompetitive service" means all positions in the

23  classified service for which a competitive examination is not

24  required.

25      (7) "Department" means an agency of government that has as its

26  governing officer a person, or combination of persons such as a

27  commission, board, or council, by law empowered to operate the

28  agency responsible either to (a) no other public officer or (b)

29  the governor.

30      (8) "Career development" means the progressive development of

31  employee capabilities to facilitate productivity, job

32  satisfaction, and upward mobility through work assignments as well

33  as education and training that are both state-sponsored and are

34  achieved by individual employee efforts, all of which shall be

35  consistent with the needs and obligations of the state and its

36  agencies.

37      (9) "Training" means activities designed to develop job-related

38  knowledge and skills of employees.

HB 1421                        p. 6

 

_1      (10) "Director" means the director of ((personnel)) human

_2  resources appointed under ((the provisions of RCW 41.06.130))

_3  section 4 of this act.

_4      (11) "Affirmative action" means a procedure by which racial

_5  minorities, women, persons in the protected age category, persons

_6  with disabilities, Vietnam-era veterans, and disabled veterans are

_7  provided with increased employment opportunities.  It shall not mean

_8  any sort of quota system.

_9      (12) "Institutions of higher education" means the University of

10  Washington, Washington State University, Central Washington

11  University, Eastern Washing­ton University, Western Washington

12  University, The Evergreen State College, and the various state

13  community colleges.

14      (13) "Related boards" means the state board for community and

15  technical colleges; and such other boards, councils, and

16  commissions related to higher education as may be established.

     

17      Sec. 10.  RCW 41.06.130 and 1993 c 281 s 26 are each amended to read

18  as follows:

19      ((The office of director of personnel is hereby established.

20      (1) The director of personnel shall be appointed by the

21  governor.  The governor shall consult with, but shall not be

22  obligated by recommendations of the board.  The director's

23  appointment shall be subject to confirmation by the senate.

24      (2) The director of personnel shall serve at the pleasure of

25  the governor.

26      (3) The director of personnel shall direct and supervise all

27  the department of personnel's administrative and technical

28  activities in accordance with the provisions of this chapter and

29  the rules adopted under it.))

30      (1) The director of human resources shall prepare for

31  consideration by the board proposed rules required by this

32  chapter.  ((The director's salary shall be fixed by the governor.

33      (4))) (2) The director of ((personnel)) human resources may

34  delegate to any agency the authority to perform administrative and

35  technical personnel activities if the agency requests such

36  authority and the director of ((personnel)) human resources is

37  satisfied that the agency has the personnel management

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_1  capabilities to effectively perform the delegated activities.  The

_2  director of ((personnel)) human resources shall prescribe

_3  standards and guidelines for the performance of delegated

_4  activities.  If the director of ((personnel)) human resources

_5  determines that an agency is not performing delegated activities

_6  within the prescribed standards and guidelines, the director shall

_7  withdraw the authority from the agency to perform such activities.

     

_8      Sec. 11.  RCW 41.50.010 and 1994 c 197 s 30 are each amended to read

_9  as follows:

10      As used in this chapter, unless the context clearly indicates

11  otherwise:

12      (1) "Actuarial value" means the present value of a change in

13  actuarial liability((;)).

14      (2) "Department" means the department of ((retirement systems;

15  and)) human resources.

16      (3) "Director" means the director of the department of

17  ((retirement systems)) human resources.

     

18      Sec. 12.  RCW 41.54.010 and 1998 c 341 s 702 are each amended to

19  read as follows:

20      The definitions in this section apply throughout this chapter

21  unless the context clearly requires otherwise.

22      (1) "Base salary" means salaries or wages earned by a member of

23  a system during a payroll period for personal services and

24  includes wages and salaries deferred under provisions of the

25  United States internal revenue code, but shall exclude overtime

26  payments, nonmoney maintenance compensation, and lump sum payments

27  for deferred annual sick leave, unused accumulated vacation,

28  unused accumulated annual leave, any form of severance pay, any

29  bonus for voluntary retirement, any other form of leave, or any

30  similar lump sum payment.

31      (2) "Department" means the department of ((retirement systems))

32  human resources.

33      (3) "Director" means the director of the department of

34  ((retirement systems)) human resources.

35      (4) "Dual member" means a person who (a) is or becomes a member

36  of a system on or after July 1, 1988, (b) has been a member of one

HB 1421                        p. 8

_1  or more other systems, and (c) has never been retired for service

_2  from a retirement system and is not receiving a disability

_3  retirement or disability leave benefit from any retirement system

_4  listed in RCW 41.50.030 or subsection (6) of this section.

_5      (5) "Service" means the same as it may be defined in each

_6  respective system.  For the purposes of RCW 41.54.030, military

_7  service granted under RCW 41.40.170(3) or 43.43.260 may only be

_8  based on service accrued under chapter 41.40 or 43.43 RCW,

_9  respectively.

10      (6) "System" means the retirement systems established under

11  chapters 41.32, 41.40, 41.44, 41.35, and 43.43 RCW; plan 2 of the

12  system established under chapter 41.26 RCW; and the city employee

13  retirement systems for Seattle, Tacoma, and Spokane.  The inclusion

14  of an individual first class city system is subject to the

15  procedure set forth in RCW 41.54.061.

     

16      Sec. 13.  RCW 43.17.010 and 1993 sp.s. c 2 s 16, 1993 c 472 s 17,

17  and 1993 c 280 s 18 are each reenacted and amended to read as

18  follows:

19      There shall be departments of the state government which shall

20  be known as (1) the department of social and health services, (2)

21  the department of ecology, (3) the department of labor and

22  industries, (4) the department of agriculture, (5) the department

23  of fish and wildlife, (6) the department of transportation, (7)

24  the department of licensing, (8) the department of general

25  administration, (9) the department of community, trade, and

26  economic development, (10) the department of veterans affairs,

27  (11) the department of revenue, (12) the department of

28  ((retirement systems)) human resources, (13) the department of

29  corrections, ((and)) (14) the department of health, and (15) the

30  department of financial institutions, which shall be charged with

31  the execution, enforcement, and administration of such laws, and

32  invested with such powers and required to perform such duties, as

33  the legislature may provide.

     

34      Sec. 14.  RCW 43.17.020 and 1995 1st sp.s. c 2 s 2 are each amended

35  to read as follows:

36      There shall be a chief executive officer of each department to

                               p. 9                       HB 1421

_1  be known as:  (1) The secretary of social and health services, (2)

_2  the director of ecology, (3) the director of labor and industries,

_3  (4) the director of agriculture, (5) the director of fish and

_4  wildlife, (6) the secretary of transportation, (7) the director of

_5  licensing, (8) the director of general administration, (9) the

_6  director of community, trade, and economic development, (10) the

_7  director of veterans affairs, (11) the director of revenue, (12)

_8  the director of ((retirement systems)) human resources, (13) the

_9  secretary of corrections, ((and)) (14) the secretary of health,

10  and (15) the director of financial institutions.

11      Such officers, except the secretary of transportation and the

12  director of fish and wildlife, shall be appointed by the governor,

13  with the consent of the senate, and hold office at the pleasure of

14  the governor.  The secretary of transportation shall be appointed by

15  the transportation commission as prescribed by RCW 47.01.041. The

16  director of fish and wildlife shall be appointed by the fish and

17  wildlife commission as prescribed by RCW 77.04.055.

     

18      Sec. 15.  RCW 42.17.2401 and 1996 c 186 s 504 are each amended to

19  read as follows:

20      For the purposes of RCW 42.17.240, the term "executive state

21  officer" includes:

22      (1) The chief administrative law judge, the director of

23  agriculture, the administrator of the office of marine safety, the

24  administrator of the Washington basic health plan, the director of

25  the department of services for the blind, the director of the

26  state system of community and technical colleges, the director of

27  community, trade, and economic development, the secretary of

28  corrections, the director of ecology, the commissioner of

29  employment security, the chairman of the energy facility site

30  evaluation council, the secretary of the state finance committee,

31  the director of financial management, the director of fish and

32  wildlife, the executive secretary of the forest practices appeals

33  board, the director of the gambling commission, the director of

34  general administration, the secretary of health, the administrator

35  of the Washington state health care authority, the executive

36  secretary of the health care facilities authority, the executive

37  secretary of the higher education facilities authority, the

HB 1421                        p. 10

_1  executive secretary of the horse racing commission, the director

_2  of human resources, the executive secretary of the human rights

_3  commission, the executive secretary of the indeterminate sentence

_4  review board, the director of the department of information

_5  services, the director of the interagency committee for outdoor

_6  recreation, the executive director of the state investment board,

_7  the director of labor and industries, the director of licensing,

_8  the director of the lottery commission, the director of the office

_9  of minority and women's business enterprises, the director of

10  parks and recreation, ((the director of personnel,)) the executive

11  director of the public disclosure commission, ((the director of

12  retirement systems,)) the director of revenue, the secretary of

13  social and health services, the chief of the Washington state

14  patrol, the executive secretary of the board of tax appeals, the

15  secretary of transportation, the secretary of the utilities and

16  transportation commission, the director of veterans affairs, the

17  president of each of the regional and state universities and the

18  president of The Evergreen State College, each district and each

19  campus president of each state community college;

20      (2) Each professional staff member of the office of the

21  governor;

22      (3) Each professional staff member of the legislature; and

23      (4) Central Washington University board of trustees, board of

24  trustees of each community college, each member of the state board

25  for community and technical colleges, state convention and trade

26  center board of directors, ((committee for deferred

27  compensation,)) Eastern Washington University board of trustees,

28  Washington economic development finance authority, The Evergreen

29  State College board of trustees, executive ethics board, forest

30  practices appeals board, forest practices board, gambling

31  commission, Washington health care facilities authority, each

32  member of the Washington health services commission, higher

33  education coordinating board, higher education facilities

34  authority, horse racing commission, state housing finance

35  commission, human rights commission, indeterminate sentence review

36  board, board of industrial insurance appeals, information services

37  board, interagency committee for outdoor recreation, state

38  investment board, commission on judicial conduct, legislative

                               p. 11                       HB 1421

_1  ethics board, liquor control board, lottery commission, marine

_2  oversight board, Pacific Northwest electric power and conservation

_3  planning council, parks and recreation commission, personnel

_4  appeals board, board of pilotage commissioners, pollution control

_5  hearings board, public disclosure commission, public pension

_6  commission, shorelines hearing board, public employees' benefits

_7  board, board of tax appeals, transportation commission, University

_8  of Washington board of regents, utilities and transportation

_9  commission, Washington state maritime commission, Washington

10  personnel resources board, Washington public power supply system

11  executive board, Washington State University board of regents,

12  Western Washington University board of trustees, and fish and

13  wildlife commission.

     

14      Sec. 16.  RCW 43.33A.020 and 1985 c 195 s 1 are each amended to read

15  as follows:

16      There is hereby created the state investment board to consist

17  of fourteen members to be appointed as provided in this section.

18      (1) One member who is an active member of the public employees'

19  retirement system and has been an active member for at least five

20  years.  This member shall be appointed by the governor, subject to

21  confirmation by the senate, from a list of nominations submitted

22  by organizations representing active members of the system.  The

23  initial term of appointment shall be one year.

24      (2) One member who is an active member of the law enforcement

25  officers' and fire fighters' retirement system and has been an

26  active member for at least five years.  This member shall be

27  appointed by the governor, subject to confirmation by the senate,

28  from a list of nominations submitted by organizations representing

29  active members of the system.  The initial term of appointment shall

30  be two years.

31      (3) One member who is an active member of the teachers'

32  retirement system and has been an active member for at least five

33  years.  This member shall be appointed by the superintendent of

34  public instruction subject to confirmation by the senate.  The

35  initial term of appointment shall be three years.

36      (4) The state treasurer or the assistant state treasurer if

37  designated by the state treasurer.

HB 1421                        p. 12

 

_1      (5) A member of the state house of representatives.  This member

_2  shall be appointed by the speaker of the house of representatives.

_3      (6) A member of the state senate.  This member shall be appointed

_4  by the president of the senate.

_5      (7) One member who is a retired member of a state retirement

_6  system shall be appointed by the governor, subject to confirmation

_7  by the senate.  The initial term of appointment shall be three

_8  years.

_9      (8) The director of the department of labor and industries.

10      (9) The director of the department of ((retirement systems))

11  human resources.

12      (10) Five nonvoting members appointed by the state investment

13  board who are considered experienced and qualified in the field of

14  investments.

15      The legislative members shall serve terms of two years.  The

16  initial legislative members appointed to the board shall be

17  appointed no sooner than January 10, 1983.  The position of a

18  legislative member on the board shall become vacant at the end of

19  that member's term on the board or whenever the member ceases to

20  be a member of the senate or house of representatives from which

21  the member was appointed.

22      After the initial term of appointment, all other members of the

23  state investment board, except ex officio members, shall serve

24  terms of three years and shall hold office until successors are

25  appointed.  Members' terms, except for ex officio members, shall

26  commence on January 1 of the year in which the appointments are

27  made.

28      Members may be reappointed for additional terms.  Appointments

29  for vacancies shall be made for the unexpired terms in the same

30  manner as the original appointments.  Any member may be removed from

31  the board for cause by the member's respective appointing

32  authority.

     

33      NEW SECTION.  Sec. 17.  The following acts or parts of acts are each

34  repealed:

35      (1) RCW 41.06.030 (Department of personnel established) and 1993 c

36  281 s 20 & 1961 c 1 s 3;

                               p. 13                       HB 1421

 

_1      (2) RCW 41.50.020 (Department of retirement systems‑-Created‑-

_2  Director) and 1975-'76 2nd ex.s. c 105 s 4; and

_3      (3) RCW 41.50.050 (Powers, duties, and functions of director) and

_4  1995 c 239 s 317, 1993 c 61 s 1, 1987 c 505 s 24, 1981 c 3 s 33,

_5  1977 ex.s. c 251 s 1, & 1975-'76 2nd ex.s. c 105 s 7.

     

_6      NEW SECTION.  Sec. 18.  The director of personnel and the director

_7  of retirement systems shall, by December 1, 2001, jointly submit a

_8  plan to the governor for consolidation and smooth transition of

_9  the department of personnel and the department of retirement

10  systems into the department of human resources.  The plan shall

11  include, but not be limited to, recommendations for any additional

12  statutory changes necessary to implement the consolidated agency.

     

13      NEW SECTION.  Sec. 19.  Sections 1 through 6 of this act

14  constitute a new chapter in Title 43 RCW.

     

15      NEW SECTION.  Sec. 20.  Sections 1 through 17 of this act take

16  effect July 1, 2002.

     

17      NEW SECTION.  Sec. 21.  If any provision of this act or its

18  application to any person or circumstance is held invalid, the

19  remainder of the act or the application of the provision to other

20  persons or circumstances is not affected.

 

‑‑‑ END ‑‑‑

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