SENATE BILL REPORT

EHB 1360

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

Revising personnel administration.

House Committe on State Government

Rereferred House Committee on Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):April 3, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Newhouse, Saling, Smith.

Minority Report:  Do not pass as amended.

      Signed by Senators Bauer, Moore, Niemi, Talmadge, Warnke.

Senate Staff:Steve Jones (786-7440)

                  April 4, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 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:

      1.Statutory 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.

      2.Executive 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 years at the request of the appointing agency.

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 has established specific rules to govern career executives, who may come from both the classified service and exempt management positions.  Career executives are recruited both internally and from outside the state personnel system.  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 the following 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) in agencies of 50 or more employees, deputy director head, assistant directors or division directors, and principal policy assistants who report to the agency head or deputy agency head.

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 include 2 percent of all state civil service employees.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

The State Personnel Board is abolished, and all of its rulemaking power is transferred to the Director of Personnel.  The board's appeals powers are transferred to the Personnel Appeals Board.  The Director of Personnel is appointed directly by and serves at the pleasure of the Governor.  The position is subject to confirmation by the Senate.

The Personnel Appeals Board becomes a full-time board, with member compensation established by the Committee on Agency Officials' Salaries.  The specific appeals powers which are transferred to the board are those relating to employment applications, examinations and eligibility for employment, and arbitration of grievances and impasses.

Standard provisions are included for the transferred powers as appropriate, and statutory references are revised to conform with the new structure.

The number of exempt positions in the civil service system are increased by 96 and the maximum size of the Career Executive Program is increased from 1 percent of civil service to 2 percent.  The number of applicants certified by the Department of Personnel for job openings above Range 50 on the salary schedule is increased from five to ten.  Agencies re-employing persons following a reduction-in-force (RIF) may choose from among the top four names on the RIF register plus one name from other registers.  The probationary period for all classified positions is extended from six to twelve months.  Incremental salary increases for exempt personnel require the written approval of the agency director.  Compensatory time and overtime pay are prohibited for exempt personnel not covered by the federal Fair Labor Standards Act.  A management performance recognition payment program is established to provide one-time payments to exempt management personnel who meet agency management goals and objectives.

Senate Committee - Testified: No one