Z 0325

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

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_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;

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_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,

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_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:

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_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.

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_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

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_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

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_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

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_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

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_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.

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_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;

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_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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