HOUSE BILL REPORT

EHB 1360

BYRepresentatives R. Fisher, Ballard and Betrozoff; by request of Governor Gardner

Revising personnel administration.

House Committe on State Government

Majority Report:  Do pass with amendments.  (9)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Sayan and Silver.

House Staff:Barbara McLain (786-7135)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on State Government.  (24)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member, Appelwick, Belcher, Bowman, Braddock, Brekke, Dorn, Ebersole, Hine, May, McLean, Nealy, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Ken Conte (786-7136)

AS PASSED HOUSE MAY 18, 1989

BACKGROUND:

The broad purpose behind exempt positions within the state personnel system is to improve management of and within state government.

Exempt Positions.  There are two ways a civil service position can be designated exempt:

            oStatutory Exemptions.  Twenty-six classes of employees are designated exempt in statute.  These include members of the legislative and judicial branches, directors of state agencies, and the Washington State patrol.

            oExecutive Request Exemptions.  At the request of the Governor or other elective officials, the Personnel Board may designate a position exempt. The total number of additional exemptions allowed by request may not exceed 187 for the governor and 25 for elective officials.

Reversion Rights.  Employees who hold classified positions which are later designated exempt, or classified employees who accept appointments to an exempt position, are given the right to revert to civil service status.  They may return to the highest class of position previously held, or to a position of similar nature and salary.  Reversion must take place within four years of the exempt appointment, but the Personnel Board may extend the period an additional four.

Career Executives.  The Career Executive Program was established in 1980 to recognize management and excellence in managerial skills.  The Program is not to exceed 1 percent of the total number of state civil service employees and currently has 336 participants.

The Personnel Board may come from both the classified service and exempt management positions.  This year, 91 percent of the participants were recruited from state classified personnel.  Career executives from classified positions also have reversion rights.

SUMMARY:

The list of statutorily exempt employees is expanded to include in agencies of 50 or more employees:  deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency head.

The Director of Personnel is to report to the Legislature during each regular session all new exemptions in the following categories:  1) exemptions granted to the Governor or elected officials; 2) executive assistants for personnel administration and labor relations; and 3) exemptions granted under the new category listed above for agencies of 50 or more employees.

The four-year limit on the right of reversion is eliminated.  If an employee is fired for gross misconduct or malfeasance, that employee is denied the right of reversion.

The Career Executive Program is expanded to 2 percent of all state civil service employees.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (State Government)  Joe Dear, Department of Labor and Industries; Chuck Clark, Department of Community Development; Leonard Nord, citizen (partly for); Ken Stark, Department of Social and Health Services; Bob Boysen, Department of Personnel; Tom Hanson, Department of Transportation; Art Morse, Department of Transportation.

(Appropriations)  Joe Dear, Department of Labor and Industries; Bob Boysen, Department of Personnel; Art Morse, Department of Transportation.

House Committee - Testified Against:      (State Government)  Eugene St. John, Washington Public Employees Association; Gary Moore, Washington Federation of State Employees; Leonard Nord, citizen (partly against).

(Appropriations) Gary Moore, Washington Federation of State Employees.

House Committee - Testimony For:    (State Government)  The inconsistent distribution of exempt management positions within state government inhibits service delivery and efficiency.  More exemptions will support management in efforts to carry out the missions of their agencies.  The Career Executive Program is an excellent program, providing an opportunity for qualified state employees to receive career training in management.

(Appropriations)  This proposal provides for uniform distribution of exempt employees throughout state government and will allow managers to perform their duties more effectively.  The Career Executive Program is a highly successful program and a critical resource to state government.  Removing the limit on an exempt employee's right to revert to classified service will remove a barrier which currently discourages capable employees from entering exempt service. The Department of Personnel supports this measure contingent upon receiving funding for the expansion of the Career Executive Program.

House Committee - Testimony Against:      (State Government)  There is no indication that management will be able to manage better with more exempt positions.  The needs of the employees as well as managers need to be heard to balance the system.  Career executives are often used to circumvent the hiring process.

(Appropriations)  This proposal is a backdoor method of getting salary increases for management employees.  There are adequate mechanisms to get a management team in place without authorizing additional exempt positions.  While the Career Executive Program is well intended, there is concern over expanding the program at a time when not all of the currently authorized positions are filled.  The normal civil service selection process (including the use of registers) is not used when filling Career Executive positions.

VOTE ON FINAL PASSAGE:

      Yeas 89; Excused 9 - May 18, 1989

Excused:    Representatives Beck, Belcher, Betrozoff, Bowman, Braddock, Brooks, R. Meyers, H. Sommers and Wood