SENATE BILL REPORT

ESB 5480

BYSenators Patterson, Metcalf, Barr and Bailey

Permitting second-class school districts to hire officers' spouses on a half-time basis.

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 3, 1988

AS REPORTED BY COMMITTEE ON EDUCATION, FEBRUARY 2, 1988

BACKGROUND:

Municipal officers are prevented from directly or indirectly benefitting from any contract under their supervision by current 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--districts with fall enrollment of less than 2000.  A contract for school bus driving with terms commensurate with the district pay plan or collective bargaining agreement may be made notwithstanding the conflict of interest provisions.  The spouse of an officer of a second class school district in which less than 200 students are enrolled may be under contract with the district as a certificated or classified employee.

Many of the second class school districts in the state are located in isolated areas where job opportunities for certificated professionals are limited.  A very small pool of applicants may be available for a particular position due to the difficulty in attracting candidates to these districts.  If the spouse of a director or other officer of the school district is qualified for the position, he or she is barred from consideration because the officer is prohibited from having an 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.

SUMMARY:

Second class school districts of any size may contract with the spouse of an officer if the contract is for employment at half time or less as a certificated or classified employee.

Each second class school district is required to adopt a written policy on hiring the spouse of a school district officer.

EFFECT OF PROPOSED SUBSTITUTE:

Additional Background:  In addition to the above background information: The number of prospective candidates for school director positions in small communities is limited.  A person whose spouse is employed by the school district may be discouraged from seeking office under law, even though the financial interest represented by the spouse's employment contract is not significant.

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)