FINAL BILL REPORT

ESSB 6503

PARTIAL VETO

C 32 L 10 E 1

Synopsis as Enacted

Brief Description: Closing state agencies on specified dates.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senator Prentice).

Senate Committee on Ways & Means

House Committee on Ways & Means

Background: State offices must be open at least forty-hours per week, with an exception for weeks containing one or more of the ten legal holidays designated in statute.

Summary: State agencies are directed to achieve a reduction in employee compensation costs through mandatory and voluntary furloughs, leave without pay, reduced work hours, voluntary retirements and separations, layoffs, and other methods. The amount of the savings will be specified in the omnibus appropriations act. Agencies that fail to submit an approved compensation reduction plan will be subject to ten specified agency closure dates beginning in July 2010. The cost reduction plans submitted by institutions of higher education may provide for reductions to operations, as well as compensation. Agencies are encouraged to preserve family wage jobs.

Exceptions to the agency expenditure reductions include state corrections and social service institutions, child protective services, law enforcement, military operations, state hospitals, emergency management, state parks, highways, and ferries, the Department of Revenue, Insurance Commissioner, Attorney General, higher education classroom instruction and student employees, state liquor stores, state lottery, unemployment insurance and reemployment services, workers compensation and workplace safety programs, agricultural commodity commissions and food inspections, employees necessary to protect state assets and public safety, and state legislative agencies, the Office of Financial Management, the Governor, and Lieutenant Governor during legislative sessions.

State agency closures will result in the temporary layoff (furlough) and reduction of compensation of affected state employees. These temporary layoffs and reduction in compensation do not affect employee seniority, vacation and sick leave accrual, or retirement benefits.

Agencies that do not adopt an approved compensation reduction plan will be subject to ten closure dates specified in the act.

Employees earning less than $30,000 per year are allowed to use annual leave or shared leave in lieu of temporary layoffs during agency closures.

Votes on Final Passage:

First Special Session

Partial Veto Summary: The Governor vetoed the section requiring at least $10 million in compensation savings from management positions exempt from civil service.