SENATE BILL REPORT

SSB 5480

BYSenate Committee on Education (originally sponsored by Senators Patterson, Metcalf, Barr and Bailey)

Permitting second-class school districts to hire officers' spouses as certificated or classified employees.

Senate Committee on Education

Senate Hearing Date(s):February 9, 1987; February 10, 1987; February 2, 1988

Majority Report:  That Substitute Senate Bill No. 5480 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Bailey, Chairman; Kiskaddon, Vice Chairman; Bender, Benitz, Craswell, Gaspard, Lee, Rinehart.

Senate Staff:Don Bennett (786-7424)

                  February 10, 1988

AS PASSED SENATE, FEBRUARY 8, 1988

BACKGROUND:

Municipal officers are prevented from directly or indirectly benefitting from any contract under their supervision by conflict of interest law.  The Legislature recognized the effect an absolute ban would have on small municipalities and districts by providing several exceptions including unskilled labor contracts not exceeding $100 in any month and other contracts for goods or services not exceeding $750 in any month.

In 1980 the Legislature created two exceptions specifically for second class school districts, those with fall enrollments of less than 2000.  Contracts for school bus driving, with terms commensurate with the district pay plan or collective bargaining agreement, and employment contracts with the spouse of an officer of a school district with less than 200 students may be made notwithstanding the conflict of interest provisions.

Many of the second class school districts in the state are located in isolated areas where job opportunities are limited.  The school district is the single largest employer in some of these communities.  A small pool of applicants may be available for any position due to the difficulty in attracting candidates to these districts.  Even though the spouse of a director or other officer of the school district may be qualified for the position, he or she is barred from consideration because the officer is prohibited from having any interest in a contract which would indirectly benefit the officer.  The only option currently available to the officer is to resign from his or her position.

Few individuals in any community may be willing to serve as school directors.  A prospective candidate whose spouse is employed by the school district may be discouraged from seeking office and, if elected, may be barred from taking office under interpretations of current law.

SUMMARY:

Second class school districts of up to 2,000 students may contract with the spouse of an officer for employment as a certificated or classified employee as long as the terms are commensurate with the district pay plan or collective bargaining agreement.

Each second class school district board of directors shall adopt a policy governing employment contracts with spouses of officers which ensures fairness and the appearance of fairness in all matters pertaining to such contracts.

The substitute bill contains an emergency clause and is effective immediately.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Shirley Doty (for); Robert Say (for)