AN ACT Relating to state employees; amending RCW 34.05.030, 41.04.230, 41.06.070, 41.06.110, 41.06.170, 28B.10.824, 28B.10.650, 28B.12.060, 28B.50.060, 28B.80.350, 28B.80.430, 28C.15.020, 34.12.020, 41.04.340, 41.06.155, 41.06.163, 41.48.140, 41.60.015, 41.60.041, 42.17.2401, 43.06.410, 43.06.425, 43.88.280, 43.105.052, 49.46.010, 49.74.020, 49.74.030, 49.74.040, 50.13.060, and 70.24.300; reenacting and amending RCW 41.06.020 and 41.06.150; adding a new chapter to Title 41 RCW; adding new sections to chapter 41.06 RCW; adding a new section to chapter 41.05 RCW; creating new sections; repealing RCW 28B.16.010, 28B.16.020, 28B.16.030, 28B.16.040, 28B.16.041, 28B.16.042, 28B.16.060, 28B.16.070, 28B.16.080, 28B.16.090, 28B.16.100, 28B.16.101, 28B.16.105, 28B.16.110, 28B.16.112, 28B.16.113, 28B.16.116, 28B.16.120, 28B.16.130, 28B.16.140, 28B.16.150, 28B.16.160, 28B.16.170, 28B.16.180, 28B.16.190, 28B.16.200, 28B.16.210, 28B.16.220, 28B.16.230, 28B.16.240, 28B.16.255, 28B.16.265, 28B.16.275, 28B.16.900, 28B.16.910, 28B.16.920, 28B.16.930, 41.64.010, 41.64.020, 41.64.030, 41.64.040, 41.64.050, 41.64.060, 41.64.070, 41.64.080, 41.64.090, 41.64.100, 41.64.110, 41.64.120, 41.64.130, 41.64.140, 41.64.900, 41.64.910, 41.06.230, 41.06.300, 41.06.310, 41.06.320, 41.06.330, and 41.06.340; and providing effective dates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. POLICY STATEMENT. It is the purpose of this chapter to promote orderly and constructive relationships between the state of Washington and its employees, and to assure the effective and orderly operations of state government.

Such a public policy is best effectuated by recognizing the principles of collective bargaining, and by granting state employees the right to organize for the purpose of negotiating wages, hours, and other terms and conditions of employment.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Agency" means any agency as defined in RCW 41.06.020 and covered by chapter 41.06 RCW.

(2) "Arbitration" means the procedure whereby parties involved in an impasse mutually agree to submit their differences to a third party for a final and binding determination.

(3) "Collective bargaining" means the performance of the mutual obligation of the representatives of the employer and the exclusive bargaining representative to meet at reasonable times and to bargain in good faith in an effort to reach agreement with respect to the subjects of bargaining specified under section 9 of this act.

(4) "Commission" means the state employees' relations commission.

(5) "Confidential employee" means an employee who, in the regular course of his or her duties, assists in a confidential capacity to persons who formulate, determine, and effectuate management policies with regard to labor relations or who, in the regular course of his or her duties, has authorized access to information relating to the effectuation or review of the employer's collective bargaining policies.

(6) "Director" means the director of the state employees' relations commission.

(7) "Employee" means any employee, including employees whose work has ceased in connection with the pursuit of lawful activities protected by this chapter, covered by chapter 41.06 RCW, except confidential employees.

(8) "Employee organization" means any organization, union, or association which exists for the purpose, in whole or in part, of collective bargaining with employers.

(9) "Employer" means the state of Washington.

(10) "Essential employee" means any employee performing functions so essential that the interruption or termination of the function will constitute a clear and present danger to the health and safety of the state.

(11) "Exclusive bargaining representative" means any employee organization that has been certified or recognized under the provisions of this chapter as the representative of the employees in an appropriate bargaining unit.

(12) "Institutions of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges.

(13) "Labor dispute" means any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee.

(14) "Supervisor" means any employee having authority in the interest of the employer to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(15) "Unfair labor practice" means any unfair labor practice listed in section 17 of this act.

NEW SECTION. Sec. 3. STATE EMPLOYEES' RELATIONS COMMISSION. (1) There is created the state employees' relations commission to administer the provisions of this chapter. The commission shall consist of three members who shall be appointed by the governor. One of the original members shall be appointed for a term of two years, one for a term of three years, and one for a term of four years. Their successors shall be appointed for terms of four years each, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whom he or she succeeds. Commission members shall be eligible for reappointment. Persons so appointed shall not hold any other employment with the state, shall not have been an officer of a political party for a period of one year immediately prior to the appointment, and shall not be or become a candidate for partisan elective public office during the term to which they are appointed. Any member of the commission may be removed by the governor, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause. Commission members shall not be eligible for state retirement under chapter 41.40 RCW by virtue of their service on the commission.

(2) In making member appointments initially, and subsequently thereafter, the governor shall appoint persons knowledgeable in the area of labor relations and personnel practices. Persons with experience in negotiating labor contracts are eligible for appointment only if the experience includes negotiations on behalf of both employers and employees.

(3) A vacancy in the commission shall not impair the right of the remaining members to exercise all of the powers of the commission, and two members of the commission shall, at all times, constitute a quorum of the commission.

(4) At its first meeting following the appointment of all of its members, and annually thereafter, the commission shall elect a chair and vice-chair from among its members to serve one year.

NEW SECTION. Sec. 4. COMMISSION COMPENSATION. (1) Each member of the commission shall be compensated in accordance with RCW 43.03.250. Members of the commission shall also be reimbursed for travel expenses incurred in the discharge of their official duties on the same basis as is provided in RCW 43.03.050 and 43.03.060.

(2) The commission shall appoint a director whose annual salary shall be determined under the provisions of RCW 43.03.028. The director shall perform such duties and have such powers as the commission shall prescribe in order to implement and enforce the provisions of this chapter. In addition to the performance of administrative duties, the commission may delegate to the director authority with respect to, but not limited to, representation proceedings, unfair labor practice proceedings, mediation of labor disputes, arbitration of disputes concerning the interpretation or application of a collective bargaining agreement, and, in certain cases, fact-finding or arbitration of disputes concerning the terms of a collective bargaining agreement. Such delegation shall not eliminate a party's right of appeal to the commission. The director, with such assistance as may be provided by the attorney general and such additional legal assistance consistent with chapter 43.10 RCW, shall have authority on behalf of the commission, when necessary to carry out or enforce any action or decision of the commission, to petition any court of competent jurisdiction for an order requiring compliance with the action or decision.

(3) The commission shall employ such employees as it may from time to time find necessary for the proper performance of its duties, consistent with the provisions of this chapter.

(4) The payment of all of the expenses of the commission, including travel expenses incurred by the members or employees of the commission under its orders, shall be subject to the provisions of RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 5. COMMISSION DUTIES. (1) It shall be the duty of the commission, in order to prevent or minimize interruptions growing out of labor disputes, to assist employers and employees to settle such disputes through mediation.

(2) The commission, through the director, may provide its services in any state employee labor dispute either upon its own motion or upon the request of one or more of the parties to the dispute, whenever in its judgment the dispute threatens to cause a substantial disruption to the public welfare.

(3) If the director is not able to bring the parties to agreement by mediation within a reasonable time, he or she shall seek to induce the parties to voluntarily seek other means of settling the dispute without resort to strike or other coercion, including submission to the employees in the bargaining unit of the employer's last offer of settlement for approval or rejection in a secret ballot. The failure or refusal of either party to agree to any procedure suggested by the director shall not be deemed a violation of any duty or obligation imposed by this chapter.

NEW SECTION. Sec. 6. COMMISSION AUTHORITY. (1) The commission shall have authority to adopt rules in accordance with chapter 34.05 RCW as necessary to carry out the provisions of this chapter, consistent with the best standards of labor management relations.

(2) The commission shall adopt rules providing for employee participation in the development and administration of this chapter. To assure this right, the commission shall act on rules or rule changes only after the commission has given thirty days notice to, and considered proposals from, employee representatives and affected agencies. Complete and current compilations of all rules of the commission in printed form shall be available to the public free of charge.

NEW SECTION. Sec. 7. RIGHTS OF EMPLOYEES. Employees shall have the right to self-organization, to form, join, or assist employee organizations, to bargain collectively through representatives of their own choosing, and to engage in other lawful concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all such activities except to the extent that employees may be required to pay a fee to an exclusive bargaining representative under a union security provision authorized by this chapter.

NEW SECTION. Sec. 8. MANAGEMENT RIGHTS. Nothing in this chapter shall interfere with the right of the employer to carry out the statutory mandate and goals assigned to the agency using personnel, methods, and means in the most appropriate and efficient manner possible. The employer shall not be required to bargain over matters of inherent managerial policy, which shall include such areas of discretion or policy as the functions of the employer, standards of services, its overall budget, the organizational structure, and selection of new employees and direction of employees.

NEW SECTION. Sec. 9. SCOPE OF BARGAINING. (1) Except as otherwise provided in this section, the subjects of bargaining shall include wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.

(2) The scope of bargaining shall not include matters pertaining to:

(a) Recruitment of employment candidates, conduct and grading of examinations, rating of candidates, maintenance of eligible lists, and original appointments from eligible lists; and

(b) Retirement benefits.

(3) The employer and the exclusive bargaining representative shall not agree to any proposal that would be inconsistent with the principle of comparable worth embodied in RCW 41.06.155.

(4) In case of any conflict between the provisions of this chapter and any other law, executive order, administrative rule, or agency policy relating to wages, hours, and conditions of employment or personnel relations, the provisions of this chapter or any collective bargaining agreement negotiated under this chapter shall prevail.

NEW SECTION. Sec. 10. CONTENTS OF COLLECTIVE BARGAINING AGREEMENTS. (1) A collective bargaining agreement shall contain provisions that:

(a) Provide for mandatory arbitration of grievances arising under the collective bargaining agreement, in accordance with section 11 of this act;

(b) Require layoffs and subsequent reemployment to be implemented according to seniority;

(c) Provide for reopening of the agreement during its term in accordance with section 16(5) of this act, if a reduction of allotments is ordered by the governor pursuant to RCW 43.88.110(2); and

(d) Make the agreement effective for periods coinciding with the fiscal biennium of the state.

(2) Where an employee covered by this chapter has a right to contest a disciplinary action or termination of employment under the provisions of any statute or administrative rule, any collective bargaining agreement provision permitting the employee to contest the disciplinary action or termination of employment through the grievance procedure and arbitration shall specify an election of remedies by the employee such that the matter be resolved entirely under the procedures of the collective bargaining agreement or entirely under the procedures of the applicable statute or rule. Any employee, when fully reinstated after appeal under either remedy, shall be guaranteed all employee rights and benefits, including back pay, sick leave, vacation accrual, retirement, and OASDI credits.

(3) Whenever a collective bargaining agreement between an employer and an exclusive bargaining representative is concluded after the termination date of the previous collective bargaining agreement between the employer and an employee organization representing the same or a substantially similar bargaining unit, the effective date of the collective bargaining agreement shall be the day after the termination of the previous collective bargaining agreement, and all benefits included in the new collective bargaining agreement, including wage or salary increases, shall accrue beginning with such effective date.

NEW SECTION. Sec. 11. ENFORCEMENT OF COLLECTIVE BARGAINING AGREEMENTS. (1) Every collective bargaining agreement negotiated pursuant to the provisions of this chapter shall contain provisions for the final and binding arbitration of grievances.

(2) The parties to a collective bargaining agreement may agree on one or more permanent umpires to serve as arbitrator, or may agree on any impartial person to serve as arbitrator, or may agree to select arbitrators from any source available to them, including federal and private agencies, in addition to the staff and dispute resolution panel maintained by the commission.

(3) An arbitrator may require any person to attend as a witness and to bring with him or her any book, record, document, or other evidence. The fees for such attendance shall be paid by the party requesting issuance of the subpoena and shall be the same as the fees of witnesses in the superior court. Arbitrators shall have the power to administer oaths. Subpoenas shall issue and be signed by the arbitrator or the director and shall be served in the same manner as subpoenas to testify before a court of record in this state. If any person so summoned to testify shall refuse or neglect to obey such subpoena, upon petition authorized by the arbitrator or director, the superior court may compel the attendance of such person before the arbitrator or punish said person for contempt in the same manner provided for the attendance of witnesses or the punishment of them in the courts of this state.

(4) The arbitrator shall appoint a time and place for the hearing and notify the parties thereof, and may adjourn the hearing from time to time as may be necessary, and, on application of either party and for good cause, may postpone the hearing to a time not extending beyond the date fixed by the collective bargaining agreement for making the award. The arbitration award shall be in writing and signed by the arbitrator or a majority of the members of the arbitration panel. The arbitrator shall, promptly upon its rendition, serve a true copy of the award on each of the parties or their attorneys.

(5) If a party to a collective bargaining agreement negotiated pursuant to the provisions of this chapter refuses to submit a grievance for arbitration, the other party to the collective bargaining agreement may invoke the jurisdiction of the superior court for any county in which the labor dispute exists and such court shall have jurisdiction to issue an order compelling arbitration. Disputes concerning compliance with grievance procedures shall be reserved for determination by the arbitrator. Arbitration shall be ordered if the grievance states a claim which on its face is covered by the collective bargaining agreement, and doubts as to the coverage of the arbitration clause shall be resolved in favor of arbitration.

(6) If a party to a collective bargaining agreement negotiated pursuant to the provisions of this chapter refuses to comply with the award of an arbitrator determining a grievance arising under such collective bargaining agreement, the other party to the collective bargaining agreement, or any affected employee may invoke the jurisdiction of the superior court for Thurston county or any county in which the labor dispute exists and such court shall have jurisdiction to issue an order enforcing the arbitration award. The court shall not substitute its judgment for that of the arbitrator and shall enforce any arbitration award which is based on the collective bargaining agreement, except that an arbitration award shall not be enforced and a new arbitration proceeding may be ordered if:

(a) The award was procured by corruption, fraud, or undue means;

(b) The arbitrator or arbitrators were guilty of misconduct, in refusing to postpone a hearing upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy, or of any other misbehavior by which the rights of any party have been prejudiced; or

(c) The arbitrator or arbitrators have exceeded their powers, or so imperfectly executed them that a final and definite award on the subject matter was not made, in which event the court shall also have discretion to remand the matter to the arbitrator or arbitrators who issued the defective award.

NEW SECTION. Sec. 12. REPRESENTATION. (1) The commission shall certify an employee organization as the exclusive bargaining representative of the employees of a bargaining unit when the organization shows proof that it represents a majority of the employees at the close of the last preceding payroll period and such proof is not contested by the agency that is the appointing authority, the director, or any other interested party. Prior to certification, the commission shall give ten calendar days' notice that an employee representative has petitioned to be named the exclusive bargaining representative of a bargaining unit. The notice shall inform all other interested parties that an election may be requested as provided in this section and that the proof of representation may be contested. If proof of representation is not satisfactory to the commission, the commission may require an election to be held.

(2) The commission shall conduct a secret vote for selection of an exclusive bargaining representative of the employees of a bargaining unit upon request from an employee organization showing satisfactory proof of at least thirty percent representation within the unit at the close of the last preceding payroll period. Upon granting a request for an election, the commission shall give notice of the election and allow ten calendar days for other employee organizations desiring their names placed on the ballot to show satisfactory proof of at least ten percent representation within the unit at the close of the last preceding payroll period.

(3) The commission, after consultation with interested employee organizations and the appointing authority, shall set forth procedures for the conduct of the election and shall distribute sample ballots. The ballot shall contain the name of the requesting employee organization and the name of any other employee organization showing satisfactory proof of at least ten percent representation within the unit and shall provide a choice for any employee within the unit to designate that he or she does not desire any representation. Where more than one organization is on the ballot and none of the choices receives a majority of all votes cast in such election, a run-off election shall be held. The run-off ballot shall contain the two choices which received the largest and the second largest number of votes.

(4) An employee organization receiving a majority of all votes cast in such an election, or run-off election, shall be certified by the commission as the exclusive bargaining representative of the employees of the bargaining unit. If no employee organization receives a majority of votes cast, the commission shall issue notification to that effect.

(5) When an employee organization has been certified as the exclusive bargaining representative of the employees of a bargaining unit, the employee organization shall be entitled to act for and to negotiate collective bargaining agreements covering all employees in the bargaining unit. The certified exclusive bargaining representative shall be responsible for representing the interests of all the employees in the bargaining unit.

(6)(a) Upon petition to the commission by no less than thirty percent of the employees of a bargaining unit, decertification or a new certification shall be determined by an election as prescribed in subsection (8) of this section. However, no question concerning representation may be raised if:

(i) Less than twelve months have elapsed since the last certification or election; or

(ii) A valid collective bargaining agreement exists for the unit, except for that period of no more than ninety calendar days nor less than sixty calendar days prior to the expiration of the contract.

(b) The election shall be conducted at the close of the contract term, or at an appropriate time, if no contract exists for the unit.

(c) To provide that certification and decertification elections are truly representative of the desires of the employees and that all employees eligible to vote have every opportunity to do so, employee participation in these elections shall be encouraged to the greatest extent possible.

(7) The commission shall administer all elections and be responsible for the processing and adjudication of all disputes that arise as a consequence of elections.

(8) The commission shall conduct decertification or new certification elections in accordance with the requirements of this subsection.

(a) Upon being notified by the commission that a valid petition for an election has been received, the affected appointing authority shall submit to the commission, the petitioning party, and exclusive bargaining representative, if any, a list of all employees included in the bargaining unit as of the preceding payroll period. This list shall contain the employees' names, job classifications, work locations, and home mailing addresses. For purposes of an election, the commission shall also provide such listing to an affected employee organization that has submitted proof that it represents at least ten percent of the employees in the bargaining unit.

(b) Upon receipt of a valid petition for an election, the commission shall conduct a preelection conference that shall include representatives of the appointing authority, the employee organization, and the petitioning party. At the preelection conference, determinations shall be made on such matters as method of balloting, date of election, absentee voting, eligibility of voters, locations, personnel at each election site, campaign activities, and any other matter that should be resolved concerning that election. Following the preelection conference, the commission shall establish rules and procedures for holding the election.

(c) At least ten days prior to the scheduled date, the commission shall distribute a notice of election for posting in the work areas of affected employees. The notice shall contain information regarding the date, time, and location of balloting, the rules and procedures established for the election, and a sample ballot.

(d) To the extent feasible, as determined by the commission, on-site voting shall take place during the employees' regular work schedules. Eligible voters shall be given ample opportunity to vote during work time while the polls are open.

(e) An employee who cannot appear at the voting site on the date of the vote may vote by absentee ballot. A request for an absentee ballot shall be submitted to the commission prior to the close of voting at the employee's voting site. To be counted, absentee ballots shall be postmarked within five calendar days of the close of the polls and shall be received by the commission within ten calendar days of the close of the polls.

(f) Employees on leave of absence without pay for the entire calendar month preceding the start of the balloting shall not be eligible to vote.

(g) Rules governing campaign activities shall be determined at the preelection conference. Employees included in the affected bargaining unit and representatives of the petitioning party and the affected employee organization shall have the right to conduct such activities on the employer's grounds during work hours so long as the work of the employee and the operation of the employer are not disturbed.

(h) Each party to an election may have one observer present during on-site voting to assist the election agent in identifying eligible voters. An employee who serves as such an observer shall be released with pay from duties normally performed during his or her work hours.

(i) The commission shall maintain the official voter eligibility list and shall provide a copy of that list to each party. The official observer for either party may bring a copy of that list to the on-site polling place for his or her own use, provided such use does not interfere with the conduct of the election.

(j) Within five working days of the date of the tally of the ballots, the petitioning party, the affected employee organization, or an employee in the bargaining unit may file objections to the election. The objections shall be in writing and shall be received by the commission within the five working day period. The commission shall investigate and determine an appropriate remedy if the objection is found to be meritorious.

(9) Any violation of these rules should be immediately reported to the commission. Upon receiving a complaint, the commission shall immediately investigate and, if necessary, take steps to stop the violation. If the commission finds that violations of these rules or the preelection agreements have affected the outcome of the election, the commission may invalidate the election, order a new election, or take other appropriate remedial action.

NEW SECTION. Sec. 13. BARGAINING UNITS. In any dispute concerning the unit appropriate for collective bargaining or the allocation of employees or positions to bargaining units, the commission, after hearing, shall determine the dispute, taking into consideration the duties, skills, and working conditions of the employees; the history of collective bargaining; the extent of organization among the employees; and the desires of the employees, except that a unit shall not be considered appropriate if it includes:

(1) Both supervisors and nonsupervisory employees. A unit that includes only supervisors may be considered appropriate if a majority of the supervisory employees indicate by vote that they desire to be included in such unit; or

(2) More than one institution of higher education. For the purposes of this section, any branch or regional campus of an institution of higher education is part of that institution of higher education.

In any case in which the commission includes as part of a bargaining unit employees that were in a unit existing prior to the effective date of this act, the commission shall notify the affected employees. The commission shall not include the affected employees in the bargaining unit created by the commission unless a majority of the affected employees vote to be included.

NEW SECTION. Sec. 14. UNION SECURITY. (1) The employer shall require as a condition of employment the payment no later than the thirtieth day following the beginning of employment of a union shop fee to the employee organization that, in accordance with the provisions of this chapter, is duly recognized by the employer or designated by the commission as the exclusive bargaining representative for the bargaining unit in which the employee is employed. The amount of the fee shall be equal to the amount required to become a member in good standing of the employee organization. Each employee organization shall establish a procedure by which any employee so requesting may obtain a rebate of that part of the union shop fee, if any, that represents a pro rata share of expenditures for purposes not germane to the collective bargaining process, to contract administration, or to pursuing matters affecting wages, hours, and other conditions of employment.

(2) Upon filing with the employer the written authorization of a bargaining unit employee under this chapter, the employee organization that is the exclusive bargaining representative of the bargaining unit shall have the right to have deducted from the salary of the employee an amount equal to the fees and dues uniformly required as a condition of acquiring or retaining membership in the employee organization. The fees and dues shall be deducted each pay period from the pay of all employees who have given authorization for the deduction and shall be transmitted by the employer as provided for by agreement between the employer and the employee organization.

(3) To safeguard the right of nonassociation of employees, based on bona fide religious tenets or teachings of a church or religious body of which the employee is a member, such employee shall pay to the employee organization, for purposes within the program of the employee organization as designated by the employee that would be in harmony with his or her individual conscience, an amount of money equivalent to the union shop fee minus any included monthly premiums for insurance programs sponsored by the employee organization. The employee shall not be a member of the employee organization but is entitled to all the representation rights of a member of the employee organization.

NEW SECTION. Sec. 15. TRANSITION OF EXISTING EXCLUSIVE BARGAINING REPRESENTATIVES AND BARGAINING UNITS. The transition of exclusive bargaining representatives and bargaining units existing prior to the effective date of this act to the units prescribed in section 13 of this act and to exclusive bargaining representatives under this chapter shall be implemented as follows:

(1)(a) When the employees in a bargaining unit or units existing prior to the effective date of this act and represented by a single certified exclusive bargaining representative comprise a majority of the employees to be included in a bargaining unit prescribed in section 13 of this act, then the certified exclusive bargaining representative for the existing unit or units shall be entitled to a certification by the commission for the new bargaining unit without the necessity of a representation election.

(b) When the employees in two or more bargaining units existing prior to the effective date of this act are represented by two or more certified exclusive bargaining representatives that together comprise at least eighty percent of the employees to be included in a bargaining unit prescribed in section 13 of this act, an election shall be held between the certified exclusive bargaining representatives for the existing units to determine which should be certified by the commission as the exclusive bargaining representative for the new bargaining unit. The competing bargaining representatives shall be the only choices on the ballot. If either of the competing bargaining representatives disclaims an interest in certification for the new bargaining unit, the remaining bargaining representative, if it represents a majority of the employees to be included in the new bargaining unit, shall be entitled to a certification by the commission for the new bargaining unit without the necessity of a representation election. The disclaimer shall be in writing and submitted to the competing bargaining representative and the commission.

(c) When, on the effective date of this act, less than a majority of the employees to be included in a bargaining unit prescribed in section 13 of this act are represented by existing certified bargaining representatives, representation of employees in the new bargaining unit shall be determined pursuant to section 12 of this act.

(2) Any employee organization that prior to the effective date of this act has been the exclusive bargaining representative of any employees may disclaim any interest in representation of the employees. The disclaimer shall be in writing and submitted to the competing exclusive bargaining representative and the commission.

NEW SECTION. Sec. 16. NEGOTIATION AND RATIFICATION OF COLLECTIVE BARGAINING AGREEMENTS. (1) Collective bargaining agreement negotiations under this chapter shall commence on July 1, 1990, and, thereafter, on July 1 of each even-numbered year. For the purpose of negotiating collective bargaining agreements other than supplemental agreements, the employer shall be represented by the governor's office. Supplementary bargaining with agencies is authorized on behalf of employees in part of a bargaining unit concerning matters uniquely affecting the employees. Nothing in this chapter shall prohibit cooperation and coordination of bargaining between two or more bargaining units.

(2) Any collective bargaining agreement reached between the employer and the exclusive representative shall be subject to ratification by the employees concerned. The agreement shall be reduced to writing and executed by both parties. Except as provided in subsection (3) of this section, agreements shall be effective for two years from July 1 of the odd-numbered year through and including June 30 of the next odd-numbered year, to correspond with the state's fiscal biennium.

(3) Agreements may provide that compensation and fringe benefit provisions are effective for the first year of the contract only. In such a case, negotiations on compensation and fringe benefit provisions for the second year of the contract shall commence on July 1 of the first odd-numbered year preceding the year of the contract expiration.

(4) The governor's office shall submit a request for funds necessary to implement the compensation and fringe benefit provisions in an agreement and for approval by the legislature of these funds within ten days of the date on which the parties ratify the agreement or, if the legislature is not in session, within ten days after the legislature convenes. The legislature shall approve or reject the submission of the request for funds as a whole and the submission shall be deemed approved if the legislature fails to act by March 31 of the odd-numbered year in which the contract will become effective. If the legislature rejects the submission, either party may reopen all or part of the agreement.

(5) If, after the compensation and fringe benefit provisions are approved by a the legislature, a significant revenue shortfall occurs resulting in reduction of allotments by the governor pursuant to RCW 43.88.110(2), the parties may reopen the contract and renegotiate all or part of the agreement to ensure continuation of an adequate level of service to meet the state's needs.

NEW SECTION. Sec. 17. UNFAIR LABOR PRACTICES ENUMERATED. (1) It shall be an unfair labor practice for an employer to:

(a) Interfere with, restrain, or coerce employees in the exercise of their rights guaranteed by this chapter;

(b) Control, dominate, or interfere with an exclusive bargaining representative;

(d) Refuse to engage in collective bargaining.

(2) It shall be an unfair labor practice for an exclusive bargaining representative to:

(a) Interfere with, restrain, or coerce employees in the exercise of their rights guaranteed by this chapter;

(b) Induce the employer to commit an unfair labor practice;

(d) Refuse to engage in collective bargaining.

NEW SECTION. Sec. 18. UNFAIR LABOR PRACTICE PROCEDURES. (1) The commission is empowered and directed to prevent any unfair labor practice and to issue appropriate remedial orders. A complaint shall not be processed for any unfair labor practice occurring more than six months before the filing of the complaint with the commission. This power shall not be affected or impaired by any means of adjustment, mediation, or conciliation in labor disputes that have been or may hereafter be established by law.

(2) Whenever a complaint is filed concerning any unfair labor practice, the commission shall have power to issue and cause to be served a notice of hearing before the commission at a place therein fixed to be held not less than seven days after the serving of the complaint. Any such complaint may be amended by the commission any time prior to the issuance of an order based thereon. The person so complained of shall have the right to file an answer to the original or amended complaint and to appear in person or otherwise to give testimony at the place and time set in the complaint. In the discretion of the commission, any other person may be allowed to intervene in the proceedings and to present testimony. In any such proceeding the commission shall not be bound by technical rules of evidence prevailing in the courts of law or equity.

(3) For the purpose of all hearings and investigations, which, in the opinion of the commission, are necessary and proper for the exercise of the powers vested in it by this section, the commission shall at all reasonable times have access to, for the purposes of examination, and the right to examine, copy, or photograph any evidence, including payrolls or lists of employees, of any person being investigated or proceeded against that relates to any matter under investigation or in question. The commission shall have power to issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence that relates to any matter under investigation or in question before the commission. The commission, or any agent or agency designated by the commission for such purposes, may administer oaths and affirmations, examine witnesses, and receive evidence.

(4) The commission, or any party to the commission proceedings, thirty days after the commission has entered its findings of fact, shall have power to petition the superior court of Thurston county or the superior court within the county where the unfair labor practice in question occurred or where any person charged with the unfair labor practice resides or transacts business, or if such court be on vacation or in recess, then to the superior court of any county adjoining the county where the unfair labor practice in question occurred or where any person charged with the unfair labor practice resides or transacts business, for the enforcement of such order and for appropriate temporary relief or restraining order, and shall certify and file in the court a transcript of the entire record in the proceeding, including the pleadings and testimony upon which such order was made and the findings and order of the commission. Upon filing the record, the court shall cause notice thereof to be served upon such person, and thereupon shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to grant such temporary relief or restraining order as it deems just and proper, and to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree enforcing, modifying, and enforcing as so modified, or setting aside in whole or in part the order of the commission.

NEW SECTION. Sec. 19. RIGHT TO STRIKE. It is lawful for an employee, except an essential employee covered by section 20 of this act, to participate in a strike if:

(1) The employee is included in a bargaining unit for which an exclusive bargaining representative has been certified by the commission;

(2) The employer and the exclusive bargaining representative have not mutually agreed to submit the dispute to final and binding arbitration;

(3) The exclusive bargaining representative has requested a mediator for the purpose of mediation or conciliation of the dispute and the parties have participated in good faith mediation; and

(4) The exclusive bargaining representative has given ten days' notice of its intent to strike to the commission and the public employer.

NEW SECTION. Sec. 20. INTEREST ARBITRATION IN CERTAIN DISPUTES. (1) The uninterrupted and dedicated service of certain classes of state employees is so vital to the welfare and public safety of the citizens of the state of Washington that the usual procedures of collective bargaining shall be suspended under certain circumstances and an alternative means of settling such disputes be substituted, as provided in this section. Employee strikes arising from disputes regulated by this section are hereby expressly prohibited.

(2) The procedures of this section are applicable only to essential employees.

(3) If no agreement has been reached sixty days after the commencement of negotiations between an employer and the exclusive bargaining representative of a bargaining unit of employees covered by this section, then, at any time thereafter, either party may declare that an impasse exists and may submit the dispute to the commission for mediation, with or without the concurrence of the other party.

(4) If an agreement has not been reached following a reasonable period of negotiations and mediation, and the parties remain at impasse, then either party may request an interest arbitrator to resolve the dispute. The issues for determination by the interest arbitrator shall be limited to the issues at impasse in the mediation proceedings.

(5) Within seven days of either party's request for arbitration, the commission shall submit three arbitrators' names to the parties. Each party shall strike one name from the list. The remaining arbitrator shall be appointed as the arbitrator. Each party shall share equally in paying the fees and expenses of the arbitrator.

(6) Within seven days following the designation of the arbitrator, each party shall file with the arbitrator and the commission and serve on the opposite party, the complete written proposals it intends to submit to interest arbitration.

(7) The arbitrator shall promptly establish a date, time, and place for hearing and shall provide reasonable notice thereof to the parties to the dispute. A hearing, which shall be informal, shall be held, and each party shall have the opportunity to present evidence and make argument. The arbitrator may not act as a witness or present the case for a party to the proceedings. The rules of evidence prevailing in judicial proceedings may be considered, but are not binding. Any oral testimony or documentary evidence or other data deemed relevant by the arbitrator may be received in evidence. A recording of the proceedings shall be taken. The arbitrator shall have the power to administer oaths, require the attendance of witnesses, and require the production of books, papers, contracts, agreements, and documents deemed to be material to a just determination of the issues in dispute. If any person refuses to obey a subpoena issued by the arbitrator or refuses to be sworn or to make an affirmation to testify, or any witness, party, or attorney for a party is guilty of any contempt while in attendance at any hearing held hereunder, the arbitrator or any party may invoke the jurisdiction of the superior court of Thurston county, and the court shall have jurisdiction to issue an appropriate order. Any failure to obey such order may be punished by the court as a contempt thereof. The hearing conducted by the arbitrator shall be concluded within twenty-five days following the designation of the arbitrator unless the parties agree to a longer period.

(8) The arbitrator shall, within thirty days following the conclusion of the hearing, make written findings of fact and a written determination of the issues in dispute, based on the evidence presented. The parties may agree, prior to the close of the hearing before the arbitrator, to limit the arbitrator to selecting: (a) Between the entire final offer of the employer presented by the employer to the mediator and to the exclusive bargaining representative at the close of the mediation proceedings or the entire final offer of the exclusive bargaining representative as presented by the exclusive bargaining representative to the mediator and to the employer at the close of the mediation proceedings; or (b) on each impasse item, between the final offers of the parties as presented to the mediator and the other party at the close of the mediation proceedings. A copy of the interest arbitration award shall be served on the commission and on each of the parties to the dispute. The determination shall be final and binding upon both parties.

(9) In making the determination, the arbitrator shall be mindful of the legislative purpose enumerated in this section and, as additional standards or guidelines to aid it in reaching a decision, shall take into consideration the following factors:

(a) The constitutional and statutory authority of the employer;

(b) Stipulations of the parties;

(c) Comparison of the wages, hours, and conditions of employment of the employees involved in the proceedings with the wages, hours, and conditions of employment of like personnel of like employers;

(d) The average consumer prices for goods and services, commonly known as the cost of living;

(e) Changes in any of the foregoing circumstances during the pendency of such proceedings; and

(f) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment.

(10) In the performance of his or her duties under this chapter, the arbitrator exercises a state function and is, for the purposes of this chapter, a state agency. The provisions of chapter 34.05 RCW do not apply to proceedings before an interest arbitrator.

(11) Except as ordered through proceedings before an interest arbitrator, existing wages, hours, and other terms and conditions of employment shall not be changed by action of either party without the consent of the other, but a party may so consent without prejudice to its rights or position under this section.

(12) If a party to negotiations subject to this section refuses to submit to the procedures set forth in this section, the other party or the commission, on its own motion, may invoke the jurisdiction of the superior court for Thurston county and the court shall have jurisdiction to issue an appropriate order. A failure to obey such order may be punished by the court as a contempt thereof.

NEW SECTION. Sec. 21. COURT JURISDICTION. Unless specifically provided otherwise, nothing in this chapter shall prohibit any party to a collective bargaining agreement from seeking enforcement of the rights granted under this chapter in a court of competent jurisdiction.

NEW SECTION. Sec. 22. A new section is added to chapter 41.06 RCW to read as follows:

(1) In addition to the exemptions set forth in RCW 41.06.070, the following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

(a) Members of the governing board of each institution and related boards, all presidents, vice-presidents, and their confidential secretaries, administrative, and personal assistants; deans, directors, and chairpersons; academic personnel; executive heads of major administrative or academic divisions employed by institutions of higher education; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington.

(b) The director, the director's confidential secretary, assistant directors, and professional education employees of the state board for community college education.

(c) The governing board of each institution, and related boards, may also exempt from this chapter, subject to the employees' right of appeal to the state personnel board, classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training, and principal assistants to executive heads of major administrative or academic divisions, as determined by the higher education personnel board: PROVIDED, That no nonacademic employee engaged in office clerical, maintenance, or food and trade services may be exempted by the state personnel board under this provision.

(2) For the purposes of this section, "related boards" means the state board for community college education and such other boards, councils, and commissions related to higher education as may be established.

NEW SECTION. Sec. 23. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions set forth in RCW 41.06.070, the provisions of this chapter do not apply to printing craft employees in the department of printing of the University of Washington.

NEW SECTION. Sec. 24. A new section is added to chapter 41.06 RCW to read as follows:

In case of any conflict between the provisions of this chapter or administrative rules adopted under this chapter and the provisions of chapter 41.-- RCW (sections 1 through 21 of this act) or a collective bargaining agreement negotiated under chapter 41.-- RCW (sections 1 through 21 of this act), the provisions of chapter 41.-- RCW (sections 1 through 21 of this act) or the collective bargaining agreement shall prevail.

NEW SECTION. Sec. 25. A new section is added to chapter 41.06 RCW to read as follows:

The board may appoint one or more hearings examiners to preside over, conduct, and make recommended decisions, including findings of fact and conclusions of law in all cases of employee appeals to the board. The hearings examiner shall conduct hearings in the same manner and shall have the same authority as provided in hearings by the board. The recommended decisions shall be forthwith served upon the parties and transmitted to the board together with the record of the evidence. Within thirty days of service of the recommended decision, any party adversely affected may file exceptions, and thereafter all parties may present written and oral argument to the board, which shall consider the whole record or such portions of the record as may be cited by the parties.

NEW SECTION. Sec. 26. A new section is added to chapter 41.06 RCW to read as follows:

(1) In all appeals over which the board has jurisdiction involving reduction, dismissal, suspension, or demotion, the board shall set the case for hearing, and the final decision, including an appeal to the board from the hearing examiner, if any, shall be rendered within ninety days from the date the appeal was first received. An extension may be permitted if agreed to by the employee and the employing agency. The board shall furnish the agency with a copy of the appeal in advance of the hearing.

(2) In all appeals made pursuant to RCW 41.06.170(3), the decision of the board is final and not appealable to court.

NEW SECTION. Sec. 27. A new section is added to chapter 41.06 RCW to read as follows:

(1) Hearings on appeals shall be open to the public, except for cases in which the board determines there is substantial reason for not having an open hearing or in cases where the employee so requests, and shall be informal with technical rules of evidence not applying to the proceedings except the rules of privilege recognized by law. Both the employee and his or her appointing agency shall be notified reasonably in advance of the hearing and may select representatives of their choosing, present and cross-examine witnesses, and give evidence before the board.

(2) Members of the board or the director may, and shall at the request of either party, issue subpoenas and subpoenas duces tecum. All testimony shall be on oath administered by a member of the board. The board shall certify to the superior court the facts of any refusals to obey a subpoena, take the oath, or testify. The court shall summarily hear the evidence on such refusal and, if the evidence warrants, punish such refusal in the same manner and to the same extent as for contempt committed before, or in connection with the proceedings of, the court.

(3) The board shall prepare an official record of the hearing, including all testimony, recorded manually or by mechanical device, and exhibits; but it may not be required to transcribe such record unless requested by the employee, who shall be furnished with a complete transcript upon payment of a reasonable charge. However, payment of the cost of a transcript used on appeal shall await determination of the appeal and shall be made by the employing agency if the employee prevails.

(4) Within thirty days after the conclusion of the hearing, the board shall make and fully record in its permanent records the following: (a) Findings of fact; (b) conclusions of law when the construction of a rule or statute is in question; (c) reasons for the action taken; and (d) the board's order based thereon. The order is final, subject to action by the court on appeal as provided in this chapter.

(5) The board shall simultaneously send a copy of the findings, conclusions, and order by certified mail to the employing agency and to the employee or the employee's designated representative.

NEW SECTION. Sec. 28. A new section is added to chapter 41.06 RCW to read as follows:

(1) Within thirty days after the recording of the order and the mailing thereof, the employee may appeal the decision and order of the board on appeals made pursuant to RCW 41.06.170(2) to the superior court of Thurston county on one or more of the grounds that the order was:

(a) Founded on or contained an error of law, which shall specifically include error in construction or application of any pertinent rules;

(b) Contrary to a preponderance of the evidence as disclosed by the entire record with respect to any specified finding or findings of fact;

(d) Based on violation of any constitutional provision; or

(e) Arbitrary or capricious.

(2) Such grounds shall be stated in a written notice of appeal filed with the court, with copies thereof served on a member of the board or the director and on the employing agency, all within the time stated.

(3) Within thirty days after service of such notice, or within such further time as the court may allow, the board shall transmit to the court a certified transcript, with exhibits, of the hearing; but by stipulation between the employing agency and the employee the transcript may be shortened, and either party unreasonably refusing to stipulate to such limitation may be ordered by the court to pay the additional cost involved. The court may require or permit subsequent corrections or additions to the transcript.

(4) The court shall review the hearing without a jury on the basis of the transcript and exhibits, except that, in case of alleged irregularities in procedure before the board not shown by the transcript, the court may order testimony to be given thereon. The court shall upon request by either party hear oral argument and receive written briefs.

(5) The court may affirm the order of the board, remand the matter for further proceedings before the board, or reverse or modify the order if it finds that the objection to the order is well taken on any of the grounds stated. Appellate review of the order of the superior court may be sought as in other civil cases.

Sec. 29. Section 15, chapter 234, Laws of 1959 as last amended by section 103, chapter 288, Laws of 1988 and RCW 34.05.030 are each amended to read as follows:

(1) This chapter shall not apply to:

(a) The state militia, or

(b) The board of clemency and pardons, or

(c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.

(2) The provisions of RCW 34.05.410 through 34.05.594 shall not apply:

(a) To adjudicative proceedings of the board of industrial insurance appeals;

(b) Except for actions pursuant to chapter 46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;

(c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;

(d) To actions of the state personnel board((~~, the higher education personnel board, or the personnel appeals board~~)) or the state employees' relations commission; or

(e) To the extent they are inconsistent with any provisions of chapter 43.43 RCW.

(3) Unless a party makes an election for a formal hearing pursuant to RCW 82.03.140 or 82.03.190, RCW 34.05.410 through 34.05.494 do not apply to a review hearing conducted by the board of tax appeals.

(4) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the administrative procedure act, shall be subject to the entire act.

Sec. 30. Section 5, chapter 59, Laws of 1969 as last amended by section 19, chapter 107, Laws of 1988 and RCW 41.04.230 are each amended to read as follows:

Any official of the state authorized to disburse funds in payment of salaries and wages of public officers or employees is authorized, upon written request of the officer or employee, to deduct from the salaries or wages of the officers or employees, the amount or amounts of subscription payments, premiums, contributions, or continuation thereof, for payment of the following:

(1) Credit union deductions: PROVIDED, That the credit union is organized solely for public employees: AND PROVIDED FURTHER, That twenty-five or more employees of a single state agency or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same credit union.

(2) Parking fee deductions: PROVIDED, That payment is made for parking facilities furnished by the agency or by the department of general administration.

(3) U.S. savings bond deductions: PROVIDED, That a person within the particular agency shall be appointed to act as trustee. The trustee will receive all contributions; purchase and deliver all bond certificates; and keep such records and furnish such bond or security as will render full accountability for all bond contributions.

(4) Board, lodging or uniform deductions when such board, lodging and uniforms are furnished by the state, or deductions for academic tuitions or fees or scholarship contributions payable to the employing institution.

(5) Dues and other fees deductions: PROVIDED, That the deduction is for payment of membership dues to any professional organization formed primarily for public employees or college and university professors: AND PROVIDED, FURTHER, That twenty-five or more employees of a single state agency, or a total of one hundred or more state employees of several agencies have authorized such a deduction for payment to the same professional organization.

(6) Labor or employee organization dues may be deducted in the event that a payroll deduction is not provided under a collective bargaining agreement under the provisions of ((~~RCW 41.06.150~~)) chapter 41.-- RCW (sections 1 through 21 of this act): PROVIDED, That twenty-five or more officers or employees of a single agency, or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same labor or employee organization: PROVIDED, FURTHER, That labor or employee organizations with five hundred or more members in state government may have payroll deduction for employee benefit programs.

(7) Voluntary deductions for political committees duly registered with the public disclosure commission and/or the federal election commission: PROVIDED, That twenty-five or more officers or employees of a single agency or a total of one hundred or more officers or employees of several agencies have authorized such a deduction for payment to the same political committee.

(8) Insurance contributions to the authority for payment of premiums under contracts authorized by the state health care authority.

Deductions from salaries and wages of public officers and employees other than those enumerated in this section or by other law, may be authorized by the director of financial management for purposes clearly related to state employment or goals and objectives of the agency and for plans authorized by the state health care authority.

The authority to make deductions from the salaries and wages of public officers and employees as provided for in this section shall be in addition to such other authority as may be provided by law: PROVIDED, That the state or any department, division, or separate agency of the state shall not be liable to any insurance carrier or contractor for the failure to make or transmit any such deduction.

NEW SECTION. Sec. 31. A new section is added to chapter 41.05 RCW to read as follows:

Sec. 32. Section 1, chapter 12, Laws of 1970 ex. sess. as last amended by section 3, chapter 365, Laws of 1985 and by section 1, chapter 461, Laws of 1985 and RCW 41.06.020 are each reenacted and amended to read as follows:

Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.

(1) "Agency" means an office, department, board, commission, institution of higher education, or other separate unit or division, however designated, of the state government and all personnel thereof; it includes any unit of state government established by law, the executive officer or members of which are either elected or appointed, upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature.

(2) "Board" means the state personnel board established under the provisions of RCW 41.06.110, except that this definition does not apply to the words "board" or "boards" when used in RCW 41.06.070.

(3) "Classified service" means all positions in the state service subject to the provisions of this chapter.

(4) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment.

(5) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions.

(6) "Institutions of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges.

(7) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required.

((~~(7)~~)) (8) "Department" means an agency of government that has as its governing officer a person, or combination of persons such as a commission, board, or council, by law empowered to operate the agency responsible either to (a) no other public officer or (b) the governor.

((~~(8)~~)) (9) "Career development" means the progressive development of employee capabilities to facilitate productivity, job satisfaction, and upward mobility through work assignments as well as education and training that are both state-sponsored and are achieved by individual employee efforts, all of which shall be consistent with the needs and obligations of the state and its agencies.

((~~(9)~~)) (10) "Training" means activities designed to develop job-related knowledge and skills of employees.

((~~(10)~~)) (11) "Director" means the director of personnel appointed under the provisions of RCW 41.06.130.

((~~(11)~~)) (12) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system.

Sec. 33. Section 1, chapter 11, Laws of 1972 ex. sess. as last amended by section 2, chapter 389, Laws of 1987 and RCW 41.06.070 are each amended to read as follows:

The provisions of this chapter do not apply to:

(1) The members of the legislature or to any employee of, or position in, the legislative branch of the state government including members, officers, and employees of the legislative council, legislative budget committee, statute law committee, and any interim committee of the legislature;

(2) The justices of the supreme court, judges of the court of appeals, judges of the superior courts or of the inferior courts, or to any employee of, or position in the judicial branch of state government;

(3) ((~~Officers, academic personnel, and employees of state institutions of higher education, the state board for community college education, and the higher education personnel board;~~

~~(4)~~)) The officers of the Washington state patrol;

((~~(5)~~)) (4) Elective officers of the state;

((~~(6)~~)) (5) The chief executive officer of each agency;

((~~(7)~~)) (6) In the departments of employment security, fisheries, social and health services, the director and his confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his confidential secretary, and his statutory assistant directors;

((~~(8)~~)) (7) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

(a) All members of such boards, commissions, or committees;

(b) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer: (i) The secretary of the board, commission, or committee; (ii) the chief executive officer of the board, commission, or committee; and (iii) the confidential secretary of the chief executive officer of the board, commission, or committee;

(c) If the members of the board, commission, or committee serve on a full-time basis: (i) The chief executive officer or administrative officer as designated by the board, commission, or committee; and (ii) a confidential secretary to the chairman of the board, commission, or committee;

(d) If all members of the board, commission, or committee serve ex officio: (i) The chief executive officer; and (ii) the confidential secretary of such chief executive officer;

((~~(9)~~)) (8) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

((~~(10)~~)) (9) Assistant attorneys general;

((~~(11)~~)) (10) Commissioned and enlisted personnel in the military service of the state;

((~~(12)~~)) (11) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the state personnel board or the board having jurisdiction;

((~~(13)~~)) (12) The public printer or to any employees of or positions in the state printing plant;

((~~(14)~~)) (13) Officers and employees of the Washington state fruit commission;

((~~(15)~~)) (14) Officers and employees of the Washington state apple advertising commission;

((~~(16)~~)) (15) Officers and employees of the Washington state dairy products commission;

((~~(17)~~)) (16) Officers and employees of the Washington tree fruit research commission;

((~~(18)~~)) (17) Officers and employees of the Washington state beef commission;

((~~(19)~~)) (18) Officers and employees of any commission formed under the provisions of chapter 191, Laws of 1955, and chapter 15.66 RCW;

((~~(20)~~)) (19) Officers and employees of the state wheat commission formed under the provisions of chapter 87, Laws of 1961 (chapter 15.63 RCW);

((~~(21)~~)) (20) Officers and employees of agricultural commissions formed under the provisions of chapter 256, Laws of 1961 (chapter 15.65 RCW);

((~~(22)~~)) (21) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

((~~(23)~~)) (22) Liquor vendors appointed by the Washington state liquor control board pursuant to RCW 66.08.050: PROVIDED, HOWEVER, That rules and regulations adopted by the state personnel board pursuant to RCW 41.06.150 regarding the basis for, and procedures to be followed for, the dismissal, suspension, or demotion of an employee, and appeals therefrom shall be fully applicable to liquor vendors except those part time agency vendors employed by the liquor control board when, in addition to the sale of liquor for the state, they sell goods, wares, merchandise, or services as a self-sustaining private retail business;

((~~(24)~~)) (23) Executive assistants for personnel administration and labor relations in all state agencies employing such executive assistants including but not limited to all departments, offices, commissions, committees, boards, or other bodies subject to the provisions of this chapter and this subsection shall prevail over any provision of law inconsistent herewith unless specific exception is made in such law;

((~~(25)~~)) (24) All employees of the marine employees' commission;

((~~(26)~~)) (25) Up to a total of five senior staff positions of the western library network under chapter 27.26 RCW responsible for formulating policy or for directing program management of a major administrative unit;

((~~(27)~~)) (26) In addition to the exemptions specifically provided by this chapter, the state personnel board may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the personnel board stating the reasons for requesting such exemptions. The personnel board shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the board determines that the position for which exemption is requested is one involving substantial responsibility for the formulation of basic agency or executive policy or one involving directing and controlling program operations of an agency or a major administrative division thereof, the personnel board shall grant the request and such determination shall be final. The total number of additional exemptions permitted under this subsection shall not exceed one hundred eighty-seven for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor. The state personnel board shall report to each regular session of the legislature during an odd-numbered year all exemptions granted pursuant to the provisions of this subsection, together with the reasons for such exemptions.

The salary and fringe benefits of all positions presently or hereafter exempted except for the chief executive officer of each agency, full-time members of boards and commissions, administrative assistants and confidential secretaries in the immediate office of an elected state official, and the personnel listed in subsections ((~~(10)~~)) (9) through ((~~(22)~~)) (21) of this section, shall be determined by the state personnel board.

Any person holding a classified position subject to the provisions of this chapter shall, when and if such position is subsequently exempted from the application of this chapter, be afforded the following rights: If such person previously held permanent status in another classified position, such person shall have a right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary, within four years from the date of appointment to the exempt position. However, (a) upon the prior request of the appointing authority of the exempt position, the personnel board may approve one extension of no more than four years; and (b) if an appointment was accepted prior to July 10, 1982, then the four-year period shall begin on July 10, 1982.

Sec. 34. Section 8, chapter 10, Laws of 1982 as amended by section 69, chapter 287, Laws of 1984 and RCW 41.06.110 are each amended to read as follows:

(1) There is hereby created a state personnel board composed of three members appointed by the governor, subject to confirmation by the senate. The first such board shall be appointed within thirty days after December 8, 1960, for terms of two, four, and six years. Each odd-numbered year thereafter the governor shall appoint a member for a six-year term. Each member shall continue to hold office after the expiration of the member's term until a successor has been appointed. Persons so appointed shall have clearly demonstrated an interest and belief in the merit principle, shall not hold any other employment with the state, shall not have been an officer of a political party for a period of one year immediately prior to such appointment, and shall not be or become a candidate for partisan elective public office during the term to which they are appointed;

(2) Each member of the board shall be compensated in accordance with RCW 43.03.250. The members of the board may receive any number of daily payments for official meetings of the board actually attended. Members of the board shall also be reimbursed for travel expenses incurred in the discharge of their official duties in accordance with RCW 43.03.050 and 43.03.060.

(3) At its first meeting following the appointment of all of its members, and annually thereafter, the board shall elect a chairman and vice chairman from among its members to serve one year. The presence of at least two members of the board shall constitute a quorum to transact business. A written public record shall be kept by the board of all actions of the board. The director of personnel shall serve as secretary.

(4) The board may appoint and compensate hearing officers to hear and conduct appeals ((~~until December 31, 1982~~)). Such compensation shall be paid on a contractual basis for each hearing, in accordance with the provisions of chapter 43.88 RCW and rules adopted pursuant thereto, as they relate to personal service contracts.

Sec. 35. Section 4, chapter 53, Laws of 1982 1st ex. sess. as last amended by section 5, chapter 365, Laws of 1985 and by section 2, chapter 461, Laws of 1985 and RCW 41.06.150 are each reenacted and amended to read as follows:

The board shall adopt rules, consistent with the purposes and provisions of this chapter, as now or hereafter amended, and with the best standards of personnel administration, regarding the basis and procedures to be followed for:

(1) The reduction, dismissal, suspension, or demotion of an employee;

(2) Certification of names for vacancies, including departmental promotions, with the number of names equal to four more names than there are vacancies to be filled, such names representing applicants rated highest on eligibility lists;

(3) Examinations for all positions in the competitive and noncompetitive service;

(4) Appointments;

(5) Training and career development;

(6) Probationary periods of six to twelve months and rejections therein, depending on the job requirements of the class, except that entry level state park rangers shall serve a probationary period of twelve months;

(7) Transfers;

(8) Sick leaves and vacations;

(9) Hours of work;

(10) Layoffs when necessary and subsequent reemployment, both according to seniority;

(11) ((Determination of appropriate bargaining units within any agency: PROVIDED, That in making such determination the board shall consider the duties, skills, and working conditions of the employees, the history of collective bargaining by the employees and their bargaining representatives, the extent of organization among the employees, and the desires of the employees;

(12) Certification and decertification of exclusive bargaining representatives: PROVIDED, That after certification of an exclusive bargaining representative and upon the representative's request, the director shall hold an election among employees in a bargaining unit to determine by a majority whether to require as a condition of employment membership in the certified exclusive bargaining representative on or after the thirtieth day following the beginning of employment or the date of such election, whichever is the later, and the failure of an employee to comply with such a condition of employment constitutes cause for dismissal: PROVIDED FURTHER, That no more often than once in each twelve-month period after expiration of twelve months following the date of the original election in a bargaining unit and upon petition of thirty percent of the members of a bargaining unit the director shall hold an election to determine whether a majority wish to rescind such condition of employment: PROVIDED FURTHER, That for purposes of this clause, membership in the certified exclusive bargaining representative is satisfied by the payment of monthly or other periodic dues and does not require payment of initiation, reinstatement, or any other fees or fines and includes full and complete membership rights: AND PROVIDED FURTHER, That in order to safeguard the right of nonassociation of public employees, based on bona fide religious tenets or teachings of a church or religious body of which such public employee is a member, such public employee shall pay to the union, for purposes within the program of the union as designated by such employee that would be in harmony with his individual conscience, an amount of money equivalent to regular union dues minus any included monthly premiums for union-sponsored insurance programs, and such employee shall not be a member of the union but is entitled to all the representation rights of a union member;

(13) Agreements between agencies and certified exclusive bargaining representatives providing for grievance procedures and collective negotiations on all personnel matters over which the appointing authority of the appropriate bargaining unit of such agency may lawfully exercise discretion;

(14) Written agreements may contain provisions for payroll deductions of employee organization dues upon authorization by the employee member and for the cancellation of such payroll deduction by the filing of a proper prior notice by the employee with the appointing authority and the employee organization: PROVIDED, That nothing contained herein permits or grants to any employee the right to strike or refuse to perform his official duties;

~~(15)~~)) Adoption and revision of a comprehensive classification plan for all positions in the classified service, based on investigation and analysis of the duties and responsibilities of each such position;

((~~(16)~~)) (12) Allocation and reallocation of positions within the classification plan;

((~~(17)~~)) (13) Adoption and revision of a state salary schedule to reflect the prevailing rates in Washington state private industries and other governmental units but the rates in the salary schedules or plans shall be increased if necessary to attain comparable worth under an implementation plan under RCW 41.06.155, such adoption and revision subject to approval by the director of financial management in accordance with the provisions of chapter 43.88 RCW;

((~~(18)~~)) (14) Increment increases within the series of steps for each pay grade based on length of service for all employees whose standards of performance are such as to permit them to retain job status in the classified service;

((~~(19)~~)) (15) Providing for veteran's preference as required by existing statutes, with recognition of preference in regard to layoffs and subsequent reemployment for veterans and their widows by giving such eligible veterans and their widows additional credit in computing their seniority by adding to their unbroken state service, as defined by the board, the veteran's service in the military not to exceed five years. For the purposes of this section, "veteran" means any person who has one or more years of active military service in any branch of the armed forces of the United States or who has less than one year's service and is discharged with a disability incurred in the line of duty or is discharged at the convenience of the government and who, upon termination of such service has received an honorable discharge, a discharge for physical reasons with an honorable record, or a release from active military service with evidence of service other than that for which an undesirable, bad conduct, or dishonorable discharge shall be given: PROVIDED, HOWEVER, That the widow of a veteran is entitled to the benefits of this section regardless of the veteran's length of active military service: PROVIDED FURTHER, That for the purposes of this section "veteran" does not include any person who has voluntarily retired with twenty or more years of active military service and whose military retirement pay is in excess of five hundred dollars per month;

((~~(20)~~)) (16) Permitting agency heads to delegate the authority to appoint, reduce, dismiss, suspend, or demote employees within their agencies if such agency heads do not have specific statutory authority to so delegate: PROVIDED, That the board may not authorize such delegation to any position lower than the head of a major subdivision of the agency;

(((21) Assuring persons who are or have been employed in classified positions under chapter 28B.16 RCW will be eligible for employment, reemployment, transfer, and promotion in respect to classified positions covered by this chapter.

~~(22)~~)) (17) Affirmative action in appointment, promotion, transfer, recruitment, training, and career development; development and implementation of affirmative action goals and timetables; and monitoring of progress against those goals and timetables.

The board shall consult with the human rights commission in the development of rules pertaining to affirmative action. The department of personnel shall transmit a report annually to the human rights commission which states the progress each state agency has made in meeting affirmative action goals and timetables.

Sec. 36. Section 17, chapter 1, Laws of 1961 as last amended by section 19, chapter 311, Laws of 1981 and RCW 41.06.170 are each amended to read as follows:

(1) The board, in the promulgation of rules and regulations governing suspensions for cause, shall not authorize an appointing authority to suspend an employee for more than fifteen calendar days as a single penalty or more than thirty calendar days in any one calendar year as an accumulation of several penalties. The board shall require that the appointing authority give written notice to the employee not later than one day after the suspension takes effect, stating the reasons for and the duration thereof. The authority shall file a copy of the notice with the director of personnel.

(2) Any employee who is reduced, dismissed, suspended, or demoted, after completing his probationary period of service as provided by the rules and regulations of the board, or any employee who is adversely affected by a violation of the state civil service law, chapter 41.06 RCW, as now or hereafter amended, or rules promulgated pursuant thereto, shall have the right to appeal to the ((~~personnel appeals~~)) board ((~~created by RCW 41.64.010~~)) not later than thirty days after the effective date of such action. The employee shall be furnished with specified charges in writing when a reduction, dismissal, suspension, or demotion action is taken. Such appeal shall be in writing.

(3) An employee incumbent in a position at the time of its allocation or reallocation, or the agency utilizing the position, may appeal the allocation or reallocation to the ((~~personnel appeals~~)) board ((~~created by RCW 41.64.010~~)). Notice of such appeal must be filed in writing within thirty days of the action from which appeal is taken.

Sec. 37. Section 20, chapter 222, Laws of 1969 ex. sess. as amended by section 5, chapter 62, Laws of 1973 and RCW 28B.10.824 are each amended to read as follows:

Subject to the provisions of chapter ((~~28B.16~~)) 41.06 RCW, the state ((~~higher education personnel~~)) civil service law, the commission shall appoint an executive director as chief administrator of the commission, and such employees as it deems advisable, and shall fix their compensation and prescribe their duties.

Sec. 38. Section 3, chapter 14, Laws of 1979 as last amended by section 53, chapter 370, Laws of 1985 and RCW 28B.10.650 are each amended to read as follows:

It is the intent of the legislature that when the state and regional universities, The Evergreen State College, and community colleges grant professional leaves to faculty and exempt staff, such leaves be for the purpose of providing opportunities for study, research, and creative activities for the enhancement of the institution's instructional and research programs.

The boards of regents of the state universities, the boards of trustees of the regional universities and of The Evergreen State College and the board of trustees of each community college district may grant remunerated professional leaves to faculty members and exempt staff, as defined in RCW 28B.16.040, in accordance with regulations adopted by the respective governing boards for periods not to exceed twelve consecutive months in accordance with the following provisions:

(1) The remuneration from state general funds and general local funds for any such leave granted for any academic year shall not exceed the average of the highest quartile of a rank order of salaries of all full time teaching faculty holding academic year contracts or appointments at the institution or in the district.

(2) Remunerated professional leaves for a period of more or less than an academic year shall be compensated at rates not to exceed a proportional amount of the average salary as otherwise calculated for the purposes of subsection (1) of this section.

(3) The grant of any such professional leave shall be contingent upon a signed contractual agreement between the respective governing board and the recipient providing that the recipient shall return to the granting institution or district following his or her completion of such leave and serve in a professional status for a period commensurate with the amount of leave so granted. Failure to comply with the provisions of such signed agreement shall constitute an obligation of the recipient to repay to the institution any remuneration received from the institution during the leave.

(4) The aggregate cost of remunerated professional leaves awarded at the institution or district during any year, including the cost of replacement personnel, shall not exceed the cost of salaries which otherwise would have been paid to personnel on leaves: PROVIDED, That for community college districts the aggregate cost shall not exceed one hundred fifty percent of the cost of salaries which would have otherwise been paid to personnel on leaves: PROVIDED FURTHER, That this subsection shall not apply to any community college district with fewer than seventy-five full time faculty members and granting fewer than three individuals such leaves in any given year.

(5) The average number of annual remunerated professional leaves awarded at any such institution or district shall not exceed four percent of the total number of full time equivalent faculty, as defined by the office of financial management, who are engaged in instruction, and exempt staff as defined in ((~~RCW 28B.16.040~~)) chapter 41.06 RCW.

(6) Negotiated agreements made in accordance with chapter 28B.52 RCW and entered into after July 1, 1977, shall be in conformance with the provisions of this section.

(7) The respective institutions and districts shall maintain such information which will ensure compliance with the provisions of this section. The higher education coordinating board shall periodically request such information as to ensure institutions are in compliance.

Sec. 39. Section 6, chapter 177, Laws of 1974 ex. sess. as last amended by section 202, chapter 330, Laws of 1987 and RCW 28B.12.060 are each amended to read as follows:

The higher education coordinating board shall adopt rules and regulations as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter ((~~28B.19~~)) 34.05 RCW, the ((~~state higher education~~)) administrative procedure act. Such rules and regulations shall include provisions designed to make employment under such work-study program reasonably available, to the extent of available funds, to all eligible students in eligible post-secondary institutions in need thereof. Such rules and regulations shall include:

(1) Providing work under the college work-study program which will not result in the displacement of employed workers or impair existing contracts for services.

(2) Furnishing work only to a student who:

(a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and

(b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and

(3) Placing priority on the securing of work opportunities for students who are residents of the state of Washington as defined in RCW 28B.15.011 through 28B.15.014.

(4) Provisions to assure that in the state institutions of higher education utilization of this student work-study program:

(a) Shall only supplement and not supplant classified positions under jurisdiction of chapter ((~~28B.16~~)) 41.06 RCW;

(b) That all positions established which are comparable shall be identified to a job classification under the ((~~higher education~~)) state personnel board's classification plan and shall receive equal compensation;

(d) That work study positions shall only be established at entry level positions of the classified service.

Sec. 40. Section 28B.50.060, chapter 223, Laws of 1969 ex. sess. as last amended by section 75, chapter 34, Laws of 1975-'76 2nd ex. sess. and RCW 28B.50.060 are each amended to read as follows:

A director of the state system of community colleges shall be appointed by the college board and shall serve at the pleasure of the college board. He shall be appointed with due regard to his fitness and background in education, by his knowledge of and recent practical experience in the field of educational administration particularly in institutions beyond the high school level. The college board may also take into consideration an applicant's proven management background even though not particularly in the field of education.

The director shall devote his time to the duties of his office and shall not have any direct pecuniary interest in or any stock or bonds of any business connected with or selling supplies to the field of education within this state, in keeping with chapter 42.18 RCW, the executive conflict of interest act.

He shall receive a salary to be fixed by the college board and shall be reimbursed for travel expenses incurred by him in the discharge of his official duties in accordance with RCW 43.03.050 and 43.03.060, as now existing or hereafter amended.

He shall be the executive officer of the college board and serve as its secretary and under its supervision shall administer the provisions of this chapter and the rules, regulations and orders established thereunder and all other laws of the state. He shall attend, but not vote at, all meetings of the college board. He shall be in charge of offices of the college board and responsible to the college board for the preparation of reports and the collection and dissemination of data and other public information relating to the state system of community colleges. At the direction of the college board, he shall, together with the chairman of the college board, execute all contracts entered into by the college board.

The director shall, with the approval of the college board: (1) Employ necessary assistant directors of major staff divisions who shall serve at his pleasure on such terms and conditions as he determines, and (2) subject to the provisions of chapter ((~~28B.16~~)) 41.06 RCW, the ((~~higher education personnel~~)) state civil service law, the director shall, with the approval of the college board, appoint and employ such field and office assistants, clerks and other employees as may be required and authorized for the proper discharge of the functions of the college board and for whose services funds have been appropriated.

The board may, by written order filed in its office, delegate to the director any of the powers and duties vested in or imposed upon it by this chapter. Such delegated powers and duties may be exercised by the director in the name of the college board.

Sec. 41. Section 6, chapter 370, Laws of 1985 as amended by section 4, chapter 172, Laws of 1988 and RCW 28B.80.350 are each amended to read as follows:

The board shall coordinate educational activities among all segments of higher education taking into account the educational programs, facilities, and other resources of both public and independent two and four-year colleges and universities. The four-year institutions and the state board for community college education shall coordinate information and activities with the board. The board shall have the following additional responsibilities:

(1) Promote interinstitutional cooperation;

(2) Establish minimum admission standards for four-year institutions, including a requirement that coursework in sign language shall satisfy any foreign language requirement the board or the institutions may establish as a general undergraduate admissions requirement;

(3) Establish transfer policies;

(4) Adopt rules implementing statutory residency requirements;

(5) Develop and administer reciprocity agreements with bordering states and the province of British Columbia;

(6) Review and recommend compensation practices and levels for administrative employees, exempt under chapter ((~~28B.16~~)) 41.06 RCW, and faculty using comparative data from peer institutions;

(7) Monitor higher education activities for compliance with all relevant state policies for higher education;

(8) Arbitrate disputes between and among four-year institutions or between and among four-year institutions and community colleges at the request of one or more of the institutions involved, or at the request of the governor, or from a resolution adopted by the legislature. The decision of the board shall be binding on the participants in the dispute;

(9) Establish and implement a state system for collecting, analyzing, and distributing information;

(10) Recommend to the governor and the legislature ways to remove any economic incentives to use off-campus program funds for on-campus activities; and

(11) Make recommendations to increase minority participation, and monitor and report on the progress of minority participation in higher education.

Sec. 42. Section 14, chapter 370, Laws of 1985 as amended by section 301, chapter 330, Laws of 1987 and RCW 28B.80.430 are each amended to read as follows:

The board shall employ a director and may delegate agency management to the director. The director shall serve at the pleasure of the board, shall be the executive officer of the board, and shall, under the board's supervision, administer the provisions of this chapter. The executive director shall, with the approval of the board: (1) Employ necessary deputy and assistant directors and other exempt staff under chapter ((~~28B.16~~)) 41.06 RCW who shall serve at his or her pleasure on such terms and conditions as he or she determines and (2) subject to the provisions of chapter ((~~28B.16~~)) 41.06 RCW, appoint and employ such other employees as may be required for the proper discharge of the functions of the board. The executive director shall exercise such additional powers, other than rulemaking, as may be delegated by the board by resolution. In fulfilling the duties under this chapter, the board shall make extensive use of those state agencies with responsibility for implementing and supporting postsecondary education plans and policies including but not limited to appropriate legislative groups, the postsecondary education institutions, the office of financial management, ((~~the commission for vocational education,~~)) and the state board for community college education. Outside consulting and service agencies may also be employed. The board may compensate these groups and consultants in appropriate ways.

Sec. 43. Section 2, chapter 492, Laws of 1987 and RCW 28C.15.020 are each amended to read as follows:

(1) The governor is authorized to form a public nonprofit corporation in the same manner as a private nonprofit corporation is formed under chapter 24.03 RCW. The public corporation shall be an instrumentality of the state and have all the powers and be subject to the same restrictions as are permitted or prescribed to private nonprofit corporations, but shall exercise those powers only for carrying out the purposes of this chapter and those purposes necessarily implied therefrom. The governor shall appoint a board of fifteen directors for the corporation who shall serve terms of six years. The governor shall appoint the members as follows: Nine members shall represent the business community, three members shall represent the sixth community college district board of trustees, and three shall represent the Seattle school board. The terms of the initial members shall be staggered. The directors may provide for the payment of their expenses. The corporation may cause a vocational technical center to be designed and constructed on a site in the city of Seattle. The center shall be named the Washington institute of applied technology.

(2) The powers and duties of the directors shall include:

(a) Having full authority and responsibility for management, policy decisions, curriculum development, and resource allocations involving the center;

(b) Employing a director of the center, who shall serve at the pleasure of the directors of the corporation;

(c) Working with the Seattle school district and the sixth community college district to use existing resources of the Seattle school district and the sixth community college district to provide services for all normal operating functions of the center, including but not limited to, payroll, personnel, accounting, and disbursement of funds, as authorized by the director;

(d) Working closely with the office of the superintendent of public instruction on all fiscal matters;

(e) Negotiating an agreement with the sixth community college district and the Seattle school district which will commit all parties to a plan of governance and operation of the center and the plan shall be completed and agreed upon within forty-five days after May 19, 1987;

(f) Hiring staff as necessary to negotiate, with the approval of the directors, with the applicable public or private service providers to conduct the instructional activities of the center. However, the directors shall not hire instructional staff or faculty;

(g) Designing and implementing the programs offered through the center, but the directors shall not cause a training program in the construction trades to be offered unless the program is approved by recognized trade groups in this state and the directors;

(h) Awarding appropriate diplomas or certificates of completion, or other evidence of satisfactory performance may be awarded as appropriate;

(i) Initiating and causing to be conducted research regarding the needs of businesses and industries in the region and the state for a work force with appropriate training and evaluating the center's programs and courses based upon the research;

(j) Preparing a budget for the center consistent with the requirements applicable to common school districts;

(k) Receiving such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the center and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments; and

(l) Charging tuition and fees that shall not be higher than that provided for community colleges under RCW 28B.15.502 and that comply with the applicable provisions under chapter 28B.15 RCW, including but not limited to the provisions defining "resident student," and the board may provide for waivers of tuition and fees and provide scholarships.

(3) The directors shall enter into contracts with participating school districts that provide for a school district to reimburse the center for the costs of a student enrolled in a school in that district attending a course or courses at the center. The reimbursement shall not exceed the proportionate amount of full time equivalent funding received by the district for that student, and for state-funding purposes such student shall be deemed to be attending courses in the applicable school district.

(4) The corporation may acquire and transfer real and personal property by lease, purchase, or sale, and further acquire property by gift, accept grants, cause the vocational technical center facilities to be constructed if funds are so appropriated, and do whatever is necessary or appropriate to carry out those purposes. The corporation shall maintain, operate, promote, and manage the vocational technology center.

(5) In order to allow the corporation flexibility in its personnel policies, the corporation is exempt from chapter 41.06 RCW, chapter 41.05 RCW, RCW 43.01.040 through 43.01.044, chapter 41.04 RCW; ((~~chapter 28B.16 RCW;~~)) and chapter 41.40 RCW.

Sec. 44. Section 2, chapter 67, Laws of 1981 as amended by section 1, chapter 189, Laws of 1982 and RCW 34.12.020 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Office" means the office of administrative hearings.

(2) "Administrative law judge" means any person appointed by the chief administrative law judge to conduct or preside over hearings as provided in this chapter.

(3) "Hearing" means ((~~a "contested case"~~)) an adjudicative proceeding within the meaning of RCW ((~~34.04.010(3)~~)) 34.05.010(1) conducted by a state agency under RCW 34.05.413 through 34.05.476.

(4) "State agency" means any state board, commission, department, or officer authorized by law to make rules or to ((~~adjudicate contested cases~~)) conduct adjudicative proceedings, except those in the legislative or judicial branches, the pollution control hearings board, the shorelines hearings board, the forest practices appeals board, the environmental hearings office, the board of industrial insurance appeals, the state personnel board, ((~~the higher education personnel board,~~)) the state employees' relations commission, the public employment relations commission, ((~~personnel appeals board,~~)) and the board of tax appeals.

Sec. 45. Section 1, chapter 150, Laws of 1979 ex. sess. as amended by section 1, chapter 182, Laws of 1980 and RCW 41.04.340 are each amended to read as follows:

As used in this section the term "eligible employee" means any employee of the state, other than teaching and research faculty at the state and regional universities and The Evergreen State College, entitled to accumulate sick leave and for whom accurate sick leave records have been maintained: PROVIDED, That no employee may receive compensation under this section for any portion of sick leave accumulated at a rate in excess of one day per month.

An attendance incentive program is established for all eligible employees. In January of the year following any year in which a minimum of sixty days of sick leave is accrued, and each January thereafter, any eligible employee may receive remuneration for unused sick leave accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued sick leave in excess of sixty days. Sick leave for which compensation has been received shall be deducted from accrued sick leave at the rate of four days for every one day's monetary compensation.

At the time of separation from state service due to retirement or death, an eligible employee or the employee's estate shall receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days of accrued sick leave: PROVIDED, That community college districts may delay until July 1, 1981, payment due any eligible employee or employee's estate: PROVIDED FURTHER, That there shall be added to any such delayed payment interest at the rate of eight percent per year.

Moneys received under this section shall not be included for the purpose of computing a retirement allowance under any public retirement system in this state.

This section shall be administered, and rules shall be promulgated to carry out its purposes, by the state personnel board ((~~and the higher education personnel board~~)) for persons subject to chapter((s)) 41.06 ((~~and 28B.16~~)) RCW, ((~~respectively,~~)) and by their respective personnel authorities for other eligible employees: PROVIDED, That determination of classes of eligible employees shall be subject to approval by the office of financial management.

Should the legislature revoke any benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right.

Sec. 46. Section 6, chapter 75, Laws of 1983 1st ex. sess. and RCW 41.06.155 are each amended to read as follows:

Salary changes necessary to achieve comparable worth shall be implemented during the 1983-85 biennium under a schedule developed by the department ((~~in cooperation with the higher education personnel board~~)). Increases in salaries and compensation solely for the purpose of achieving comparable worth shall be made at least annually. Comparable worth for the jobs of all employees under this chapter shall be fully achieved not later than June 30, 1993.

Sec. 47. Section 3, chapter 152, Laws of 1977 ex. sess. as last amended by section 9, chapter 185, Laws of 1987 and RCW 41.06.163 are each amended to read as follows:

(1) In the conduct of salary and fringe benefit surveys under RCW 41.06.160 ((~~as now or hereafter amended~~)), it is the intention of the legislature that the surveys be undertaken in a manner consistent with statistically accurate sampling techniques. For this purpose, a comprehensive salary and fringe benefit survey plan shall be submitted to the director of financial management, employee organizations, and the standing committees for appropriations of the senate and house of representatives six months before the beginning of each periodic survey required before regular legislative sessions. This comprehensive plan shall include but not be limited to the following:

(a) A complete explanation of the technical, statistical process to be used in the salary and fringe benefit survey including the percentage of accuracy expected from the planned statistical sample chosen for the survey and a definition of the term "prevailing rates" which is to be used in the planned survey;

(b) A comprehensive salary and fringe benefit survey model based on scientific statistical principles which:

(i) Encompasses the interrelationships among the various elements of the survey sample including sources of salary and fringe benefit data by organization type, size, and regional location;

(ii) Is representative of private and public employment in this state;

(iii) Ensures that, wherever practical, data from smaller, private firms are included and proportionally weighted in the survey sample; and

(iv) Indicates the methodology to be used in application of survey data to job classes used by state government;

(c) A prediction of the increase or decrease in total funding requirements expected to result from the pending salary and fringe benefit survey based on consumer price index information and other available trend data pertaining to Washington state salaries and fringe benefits.

(2) Every comprehensive survey plan shall fully consider fringe benefits as an element of compensation in addition to basic salary data. The plans prepared under this section shall be developed ((~~jointly~~)) by the department of personnel ((in conjunction with the higher education personnel board established under chapter 28B.16 RCW. All comprehensive salary and fringe benefit survey plans shall be submitted on a joint signature basis by the department of personnel and the higher education personnel board)).

(3) Interim or special surveys conducted under RCW 41.06.160 as now or hereafter amended shall conform when possible to the statistical techniques and principles developed for regular periodic surveys under this section.

(4) The term "fringe benefits" as used in this section and in conjunction with salary surveys shall include but not be limited to compensation for:

(a) Leave time, including vacation, holiday, civil, and personal leave;

(b) Employer retirement contributions;

(c) Health and insurance payments, including life, accident, and health insurance, workers' compensation, and sick leave; and

(d) Stock options, bonuses, and purchase discounts where appropriate.

Sec. 48. Section 3, chapter 152, Laws of 1979 and RCW 41.48.140 are each amended to read as follows:

Nothing in RCW 41.48.120 or 41.48.130 shall affect the power of the state personnel board((~~, the higher education personnel board,~~)) or any other state personnel authority to establish sick leave regulations except as may be required under RCW 41.48.120 or 41.48.130: PROVIDED, That each personnel board and personnel authority shall establish the maximum number of working days an employee under its jurisdiction may be absent on account of sickness or accident disability without a medical certificate.

"Personnel authority" as used in this section, means a state agency, board, committee, or similar body having general authority to establish personnel regulations.

Sec. 49. Section 1, chapter 167, Laws of 1982 as last amended by section 2, chapter 387, Laws of 1987 and RCW 41.60.015 are each amended to read as follows:

(1) There is hereby created the productivity board. The board shall administer the employee suggestion program under this chapter and shall review applications for teamwork incentive pay for state employees under RCW 41.60.100, 41.60.110, and 41.60.120.

(2) The board shall be composed of:

(a) The secretary of state who shall act as chairperson;

(b) The director of personnel appointed under the provisions of RCW 41.06.130 or the director's designee;

(d) ((~~The personnel director appointed under the provisions of RCW 28B.16.060 or the director's designee;~~

~~(e)~~)) The director of general administration or the director's designee;

((~~(f)~~)) (e) Three persons with experience in administering incentives such as those used by industry, with the governor, lieutenant governor, and speaker of the house of representatives each appointing one person. The governor's appointee shall be a representative of an employee organization certified as an exclusive representative of at least one bargaining unit of classified employees, but no one organization may be represented for two consecutive terms;

((~~(g)~~)) (f) One person representing state agencies and institutions with employees subject to chapter 41.06 RCW((~~, and one person representing those subject to chapter 28B.16 RCW, both~~)) to be appointed by the governor; and

((~~(h)~~)) (g) In addition, the governor and board chairperson may jointly appoint persons to the board on an ad hoc basis. Ad hoc members shall serve in an advisory capacity and shall not have the right to vote.

Members under subsection (2) (e) and (f) ((~~and (g)~~)) of this section shall be appointed to serve three-year terms.

Members of the board appointed pursuant to subsection (2)((~~(f)~~)) (e) of this section may be compensated in accordance with RCW 43.03.240. Any board member who is not a state employee may be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

Sec. 50. Section 9, chapter 167, Laws of 1982 as last amended by section 3, chapter 387, Laws of 1987 and RCW 41.60.041 are each amended to read as follows:

(1) Cash awards for suggestions generating net savings to the state shall be ten percent of the net savings.

(2) No award may be granted in excess of ten thousand dollars.

(3) If the suggestion is significantly modified when implemented, the percentage specified in subsection (1) of this section may be decreased at the option of the board.

(4) The board shall establish guidelines for making cash awards for suggestions for which benefits to the state are intangible or for which benefits cannot be calculated. In cases where cost avoidances are identified, the state personnel board ((~~and the higher education personnel board~~)) in consultation with the productivity board shall adopt rules which allow agencies and institutions of higher education to grant leave in lieu of cash awards.

(5) Funds for the awards shall be drawn from the appropriation of the agency benefiting from the employee's suggestion. If the suggestion reduces costs to a nonappropriated fund or reduces costs paid without appropriation from a nonappropriated portion of an appropriated fund, an award may be paid from the benefitting fund or account without appropriation.

(6) Awards and fees for suggestions which generate new or additional money for the general fund may be drawn from the general fund by joint approval of the productivity board and the director of financial management.

(7) In addition to the amount awarded, the agency shall transfer ten percent of the savings to the department of personnel service fund. Moneys so transferred shall be used exclusively for the operations of the productivity board or as an offset to any amount appropriated to the productivity board for administrative expenses from another revenue source, other than that provided under RCW 41.60.120.

The productivity board at least annually shall review amounts transferred to the department of personnel service fund under this section and may reduce the percentage of savings to be transferred or temporarily suspend transfer if cash receipts exceed needs for program administration.

Sec. 51. Section 2, chapter 34, Laws of 1984 as last amended by section 13, chapter 36, Laws of 1988 and RCW 42.17.2401 are each amended to read as follows:

For the purposes of RCW 42.17.240, the term "executive state officer" includes:

(1) The chief administrative law judge, the director of financial management, the director of personnel, the director of community development, the director of the state system of community colleges, the director of the department of information services, the executive secretary of the forest practices appeals board, the director of the gambling commission, ((~~the director of the higher education personnel board,~~)) the secretary of transportation, the executive secretary of the horse racing commission, the executive secretary of the human rights commission, the administrator of the interagency committee for outdoor recreation, the director of parks and recreation, the executive secretary of the ((~~board of prison terms and paroles~~)) indeterminate sentence review board, the administrator of the public disclosure commission, the director of retirement systems, the secretary of the utilities and transportation commission, the executive secretary of the board of tax appeals, the secretary of the state finance committee, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;

(2) Each professional staff member of the office of the governor;

(3) Each professional staff member of the legislature; and

(4) Each member of the state board for community college education, information services board, forest practices board, forest practices appeals board, gambling commission, wildlife commission, ((~~higher education personnel board,~~)) transportation commission, horse racing commission, human rights commission, board of industrial insurance appeals, liquor control board, interagency committee for outdoor recreation, parks and recreation commission, personnel board, ((~~personnel appeals board, board of prison terms and paroles~~)) indeterminate sentence review board, public disclosure commission, public employees' retirement system board, public pension commission, University of Washington board of regents, Washington State University board of regents, board of tax appeals, teachers' retirement system board of trustees, Central Washington University board of trustees, Eastern Washington University board of trustees, The Evergreen State College board of trustees, Western Washington University board of trustees, board of trustees of each community college, state housing finance commission, and the utilities and transportation commission.

Sec. 52. Section 1, chapter 442, Laws of 1985 and RCW 43.06.410 are each amended to read as follows:

There is established within the office of the governor the Washington state internship program to assist students and state employees in gaining valuable experience and knowledge in various areas of state government. In administering the program, the governor shall:

(1) Consult with the secretary of state, the director of personnel, ((~~the director of the higher education personnel board,~~)) the commissioner of the employment security department, and representatives of labor;

(2) Encourage and assist agencies in developing intern positions;

(3) Develop and coordinate a selection process for placing individuals in intern positions. This selection process shall give due regard to the responsibilities of the state to provide equal employment opportunities;

(4) Develop and coordinate a training component of the internship program which balances the need for training and exposure to new ideas with the intern's and agency's need for on-the-job work experience;

(5) Work with institutions of higher education in developing the program, soliciting qualified applicants, and selecting participants; and

(6) Develop guidelines for compensation of the participants.

Sec. 53. Section 4, chapter 442, Laws of 1985 and RCW 43.06.425 are each amended to read as follows:

The state personnel board ((~~and the higher education personnel board~~)) shall ((~~each~~)) adopt rules to provide that:

(1) Successful completion of an internship under RCW 43.06.420 shall be considered as employment experience at the level at which the intern was placed;

(2) Persons leaving classified or exempt positions in state government in order to take an internship under RCW 43.06.420: (a) Have the right of reversion to the previous position at any time during the internship or upon completion of the internship; and (b) shall continue to receive all fringe benefits as if they had never left their classified or exempt positions;

(3) Participants in the undergraduate internship program who were not public employees prior to accepting a position in the program receive sick leave allowances commensurate with other state employees;

(4) Participants in the executive fellows program who were not public employees prior to accepting a position in the program receive sick and vacation leave allowances commensurate with other state employees.

Sec. 54. Section 1, chapter 320, Laws of 1977 ex. sess. and RCW 43.88.280 are each amended to read as follows:

As used in RCW 43.88.290 and 43.88.300 the term "state officer or employee" includes the members of the governing body of any state agency, as state agency is defined in RCW 43.88.020(4) and those generally known as executive management but excludes nonsupervisory state employees covered by civil service under chapter((s)) 41.06 ((~~and 28B.16~~)) RCW.

Sec. 55. Section 8, chapter 504, Laws of 1987 and RCW 43.105.052 are each amended to read as follows:

The department shall:

(1) Perform all duties and responsibilities the board delegates to the department, including but not limited to (a) the review of agency acquisition plans and requests and (b) implementation of state-wide and interagency policies, standards, and guidelines;

(2) Make available information services to state agencies and local governments on a full cost-recovery basis. These services may include, but are not limited to: Telecommunications services for voice, data, and video; mainframe computing services; support for departmental and microcomputer evaluation, installation, and use; equipment acquisition assistance, including leasing, brokering, and establishing master contracts; facilities management services for information technology equipment, equipment repair, and maintenance service; office automation services; system development services; and training. These services are for discretionary use by customers and customers may elect other alternatives for service if those alternatives are more cost-effective or provide better service. Agencies may be required to use the backbone network portions of the telecommunications services during an initial start-up period not to exceed three years;

(3) Establish rates and fees for services provided by the department to assure that the services component of the department is self-supporting. A billing rate plan shall be developed for a two-year period to coincide with the budgeting process. The rate plan shall be subject to review at least annually by the customer oversight committees. The rate plan shall show the proposed rates by each cost center and will show the components of the rate structure as mutually determined by the department and the customer oversight committees. The same rate structure will apply to all user agencies of each cost center. The rate plan and any adjustments to rates shall be approved by the office of financial management. The services component shall not subsidize the operations of the planning component;

(4) With the advice of the information services board and agencies, develop and publish state-wide goals and objectives at least biennially;

(5) Develop plans for the department's achievement of state-wide goals and objectives. These plans shall address such services as telecommunications, central and distributed computing, local area networks, office automation, and end user computing. The department shall seek the advice of customer oversight committees and the board in the development of these plans;

(6) Develop training plans and coordinate training programs that are responsive to the needs of agencies, in collaboration with the department of personnel ((~~and the higher education personnel board~~));

(7) Identify opportunities for the effective use of information services and coordinate appropriate responses to those opportunities;

(8) Assess agencies' projects, acquisitions, plans, or overall information processing performance as requested by the board, agencies, the director of financial management, or the legislature. Agencies may be required to reimburse the department for agency-requested reviews;

(9) Develop planning, budgeting, and expenditure reporting requirements, in conjunction with the office of financial management, for agencies to follow;

(10) Assist the office of financial management with budgetary and policy review of agency plans for information services;

(11) Provide staff support from the planning component to the board for:

(a) Meeting preparation, notices, and minutes;

(b) Promulgation of policies, standards, and guidelines adopted by the board;

(d) Conducting reviews and assessments as directed by the board; and

(12) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

Sec. 56. Section 1, chapter 294, Laws of 1959 as last amended by section 1, chapter 1, Laws of 1989 (Initiative Measure No. 518) and RCW 49.46.010 are each amended to read as follows:

As used in this chapter:

(1) "Director" means the director of labor and industries;

(2) "Wage" means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by regulations of the director;

(3) "Employ" includes to permit to work;

(4) "Employer" includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee;

(5) "Employee" includes any individual employed by an employer but shall not include:

(a) Any individual (i) employed as a hand harvest laborer and paid on a piece rate basis in an operation which has been, and is generally and customarily recognized as having been, paid on a piece rate basis in the region of employment; (ii) who commutes daily from his or her permanent residence to the farm on which he or she is employed; and (iii) who has been employed in agriculture less than thirteen weeks during the preceding calendar year;

(b) Any individual employed in casual labor in or about a private home, unless performed in the course of the employer's trade, business, or profession;

(c) Any individual employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman as those terms are defined and delimited by regulations of the director. However, those terms shall be defined and delimited by the state personnel board pursuant to chapter 41.06 RCW ((~~and the higher education personnel board pursuant to chapter 28B.16 RCW~~)) for employees employed under ((~~their respective~~)) its jurisdiction((s));

(d) Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body or agency, or nonprofit organization where the employer-employee relationship does not in fact exist or where the services are rendered to such organizations gratuitously. If the individual receives reimbursement in lieu of compensation for normally incurred out-of-pocket expenses or receives a nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed not to exist for the purpose of this section or for purposes of membership or qualification in any state, local government or publicly supported retirement system other than that provided under chapter 41.24 RCW;

(e) Any individual employed full time by any state or local governmental body or agency who provides voluntary services but only with regard to the provision of the voluntary services. The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement or benefit rights under any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

(f) Any newspaper vendor or carrier;

(g) Any carrier subject to regulation by Part 1 of the Interstate Commerce Act;

(h) Any individual engaged in forest protection and fire prevention activities;

(i) Any individual employed by any charitable institution charged with child care responsibilities engaged primarily in the development of character or citizenship or promoting health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;

(j) Any individual whose duties require that he or she reside or sleep at the place of his or her employment or who otherwise spends a substantial portion of his or her work time subject to call, and not engaged in the performance of active duties;

(k) Any resident, inmate, or patient of a state, county, or municipal correctional, detention, treatment or rehabilitative institution;

(l) Any individual who holds a public elective or appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of the state legislature;

(m) All vessel operating crews of the Washington state ferries operated by the department of transportation;

(n) Any individual employed as a seaman on a vessel other than an American vessel.

(6) "Occupation" means any occupation, service, trade, business, industry, or branch or group of industries or employment or class of employment in which employees are gainfully employed.

Sec. 57. Section 9, chapter 365, Laws of 1985 and RCW 49.74.020 are each amended to read as follows:

If the commission reasonably believes that a state agency, an institution of higher education, or the state patrol has failed to comply with an affirmative action rule adopted under RCW ((~~28B.16.100,~~)) 41.06.150((,)) or 43.43.340, the commission shall notify the director of the state agency, president of the institution of higher education, or chief of the Washington state patrol of the noncompliance, as well as the director of personnel ((~~or the director of the higher education personnel board, whichever is appropriate~~)). The commission shall give the director of the state agency, president of the institution of higher education, or chief of the Washington state patrol an opportunity to be heard on the failure to comply.

Sec. 58. Section 10, chapter 365, Laws of 1985 and RCW 49.74.030 are each amended to read as follows:

The commission in conjunction with the department of personnel((~~, the higher education personnel board,~~)) or the state patrol, whichever is appropriate, shall attempt to resolve the noncompliance through conciliation. If an agreement is reached for the elimination of noncompliance, the agreement shall be reduced to writing and an order shall be issued by the commission setting forth the terms of the agreement. The noncomplying state agency, institution of higher education, or state patrol shall make a good faith effort to conciliate and make a full commitment to correct the noncompliance with any action that may be necessary to achieve compliance, provided such action is not inconsistent with the rules adopted under RCW ((~~28B.16.100(20), 41.06.150(21), and~~)) 41.06.150 or 43.43.340(5), whichever is appropriate.

Sec. 59. Section 11, chapter 365, Laws of 1985 and RCW 49.74.040 are each amended to read as follows:

If no agreement can be reached under RCW 49.74.030, the commission may refer the matter to the administrative law judge for hearing pursuant to RCW 49.60.250. If the administrative law judge finds that the state agency, institution of higher education, or state patrol has not made a good faith effort to correct the noncompliance, the administrative law judge shall order the state agency, institution of higher education, or state patrol to comply with this chapter. The administrative law judge may order any action that may be necessary to achieve compliance, provided such action is not inconsistent with the rules adopted under RCW ((~~28B.16.100(20), 41.06.150(21),~~)) 41.06.150 and 43.43.340(5), whichever is appropriate.

An order by the administrative law judge may be appealed to superior court.

Sec. 60. Section 6, chapter 153, Laws of 1977 ex. sess. as last amended by section 1, chapter 177, Laws of 1981 and RCW 50.13.060 are each amended to read as follows:

(1) Governmental agencies, including law enforcement agencies, prosecuting agencies, and the executive branch, whether state, local, or federal shall have access to information or records deemed private and confidential under this chapter if the information or records are needed by the agency for official purposes and:

(a) The agency submits an application in writing to the employment security department for the records or information containing a statement of the official purposes for which the information or records are needed and specific identification of the records or information sought from the department; and

(b) The director, commissioner, chief executive, or other official of the agency has verified the need for the specific information in writing either on the application or on a separate document; and

(c) The agency requesting access has served a copy of the application for records or information on the individual or employing unit whose records or information are sought and has provided the department with proof of service. Service shall be made in a manner which conforms to the civil rules for superior court. The requesting agency shall include with the copy of the application a statement to the effect that the individual or employing unit may contact the public records officer of the employment security department to state any objections to the release of the records or information. The employment security department shall not act upon the application of the requesting agency until at least five days after service on the concerned individual or employing unit. The employment security department shall consider any objections raised by the concerned individual or employing unit in deciding whether the requesting agency needs the information or records for official purposes.

(2) The requirements of subsections (1) and (7) of this section shall not apply to the state legislative branch. The state legislature shall have access to information or records deemed private and confidential under this chapter, if the legislature or a legislative committee finds that the information or records are necessary and for official purposes. If the employment security department does not make information or records available as provided in this subsection, the legislature may exercise its authority granted by chapter 44.16 RCW.

(3) In cases of emergency the governmental agency requesting access shall not be required to formally comply with the provisions of subsection (1) of this section at the time of the request if the procedures required by subsection (1) of this section are complied with by the requesting agency following the receipt of any records or information deemed private and confidential under this chapter. An emergency is defined as a situation in which irreparable harm or damage could occur if records or information are not released immediately.

(4) The requirements of subsection (1)(c) of this section shall not apply to governmental agencies where the procedures would frustrate the investigation of possible violations of criminal laws.

(5) Governmental agencies shall have access to certain records or information, limited to such items as names, addresses, social security numbers, and general information about benefit entitlement or employer information possessed by the department, for comparison purposes with records or information possessed by the requesting agency to detect improper or fraudulent claims, or to determine potential tax liability or employer compliance with registration and licensing requirements. In those cases the governmental agency shall not be required to comply with subsection (1)(c) of this section, but the requirements of the remainder of subsection (1) must be satisfied.

(6) Disclosure to governmental agencies of information or records obtained by the employment security department from the federal government shall be governed by any applicable federal law or any agreement between the federal government and the employment security department where so required by federal law. When federal law does not apply to the records or information state law shall control.

(7) The disclosure of any records or information by a governmental agency which has obtained the records or information under this section is prohibited unless the disclosure is directly connected to the official purpose for which the records or information were obtained.

(8) In conducting periodic salary or fringe benefit studies pursuant to law, the department of personnel ((~~and the higher education personnel board~~)) shall have access to records of the employment security department as may be required for such studies. For such purposes, the requirements of subsection (1)(c) of this section need not apply.

Sec. 61. Section 607, chapter 206, Laws of 1988 and RCW 70.24.300 are each amended to read as follows:

The state personnel board((~~, the higher education personnel board,~~)) and each unit of local government shall determine whether any employees under their jurisdiction have a substantial likelihood of exposure in the course of their employment to the human immunodeficiency virus. If so, the agency or unit of government shall adopt rules requiring appropriate training and education for the employees on the prevention, transmission, and treatment of AIDS. The rules shall specifically provide for such training and education for law enforcement, correctional, and health care workers. The state personnel board((~~, the higher education personnel board,~~)) and each unit of local government shall work with the office on AIDS under RCW 70.24.250 to develop the educational and training material necessary for employees.

NEW SECTION. Sec. 62. (1) The state personnel appeals board and the higher education personnel board are hereby abolished. All powers, duties, and functions of these agencies are transferred to the state personnel board.

(2) All references to the abolished agencies in the Revised Code of Washington shall be construed to mean the state personnel board.

NEW SECTION. Sec. 63. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the agencies abolished in section 62 of this act and pertaining to the powers, functions, and duties transferred by section 62 of this act shall be delivered to the custody of the state personnel board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the abolished agencies in carrying out the powers, functions, and duties transferred by section 62 of this act shall be made available to the state personnel board. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 62 of this act shall be assigned to the state personnel board. Any appropriations made to the abolished agencies for carrying out the powers, functions, and duties transferred by section 62 of this act shall, on the effective date of this section, be transferred and credited to the state personnel board. Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 64. (1) All classified employees of the state personnel appeals board engaged in performing the powers, functions, and duties transferred by section 62 of this act are transferred to the jurisdiction of the state personnel board.

(2) All employees of the higher education personnel board classified under chapter 28B.16 RCW are assigned to the department of personnel to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

(3) All employees of the department of personnel assigned to labor relations functions are assigned to the state employees' relations commission to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 65. All rules and all pending business before the abolished agencies pertaining to the powers, functions, and duties transferred by section 62 of this act shall be continued and acted upon by the state personnel board. All existing contracts and obligations shall remain in full force and shall be performed by the state personnel board.

NEW SECTION. Sec. 66. The transfer of the powers, duties, functions, and personnel of the abolished agencies under section 62 of this act shall not affect the validity of any act performed by such employee prior to the effective date of this section.

NEW SECTION. Sec. 67. If apportionments of budgeted funds are required because of the transfers directed by sections 62 through 66 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 68. Rules, classification plans, compensation plans, and bargaining units adopted or established pursuant to chapter 28B.16 RCW shall remain in effect until superseded by action of the state personnel board or state employees' relations commission, respectively.

NEW SECTION. Sec. 69. SECTION CAPTIONS. Section captions used in this act constitute no part of the law.

NEW SECTION. Sec. 70. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.010;

(2) Section 2, chapter 36, Laws of 1969 ex. sess., section 41, chapter 169, Laws of 1977 ex. sess., section 14, chapter 53, Laws of 1982 1st ex. sess., section 1, chapter 75, Laws of 1983 1st ex. sess., section 2, chapter 365, Laws of 1985, section 8, chapter 461, Laws of 1985 and RCW 28B.16.020;

(3) Section 3, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.030;

(4) Section 4, chapter 36, Laws of 1969 ex. sess., section 1, chapter 94, Laws of 1977 ex. sess., section 15, chapter 53, Laws of 1982 1st ex. sess. and RCW 28B.16.040;

(5) Section 9, chapter 442, Laws of 1985 and RCW 28B.16.041;

(6) Section 1, chapter 266, Laws of 1985 and RCW 28B.16.042;

(7) Section 6, chapter 36, Laws of 1969 ex. sess., section 73, chapter 34, Laws of 1975-'76 2nd ex. sess., section 19, chapter 338, Laws of 1981, section 63, chapter 287, Laws of 1984 and RCW 28B.16.060;

(8) Section 7, chapter 36, Laws of 1969 ex. sess., section 1, chapter 23, Laws of 1983 and RCW 28B.16.070;

(9) Section 8, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.080;

(10) Section 9, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.090;

(11) Section 10, chapter 36, Laws of 1969 ex. sess., section 1, chapter 19, Laws of 1971 ex. sess., section 2, chapter 154, Laws of 1973, section 2, chapter 75, Laws of 1973 1st ex. sess., section 1, chapter 122, Laws of 1975 1st ex. sess., section 8, chapter 152, Laws of 1977 ex. sess., section 15, chapter 151, Laws of 1979, section 16, chapter 53, Laws of 1982 1st ex. sess., section 2, chapter 75, Laws of 1983 1st ex. sess., section 1, chapter 365, Laws of 1985, section 9, chapter 461, Laws of 1985 and RCW 28B.16.100;

(12) Section 9, chapter 152, Laws of 1977 ex. sess., section 19, chapter 53, Laws of 1982 1st ex. sess. and RCW 28B.16.101;

(13) Section 13, chapter 152, Laws of 1977 ex. sess., section 17, chapter 53, Laws of 1982 1st ex. sess., section 10, chapter 461, Laws of 1985 and RCW 28B.16.105;

(14) Section 11, chapter 36, Laws of 1969 ex. sess., section 2, chapter 122, Laws of 1975 1st ex. sess., section 10, chapter 152, Laws of 1977 ex. sess., section 16, chapter 151, Laws of 1979, section 3, chapter 11, Laws of 1980, section 1, chapter 94, Laws of 1985 and RCW 28B.16.110;

(15) Section 11, chapter 152, Laws of 1977 ex. sess., section 17, chapter 151, Laws of 1979, section 4, chapter 158, Laws of 1986, section 3, chapter 185, Laws of 1987 and RCW 28B.16.112;

(16) Section 12, chapter 152, Laws of 1977 ex. sess. and RCW 28B.16.113;

(17) Section 3, chapter 75, Laws of 1983 1st ex. sess. and RCW 28B.16.116;

(18) Section 12, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.120;

(19) Section 13, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.130;

(20) Section 14, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.140;

(21) Section 15, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.150;

(22) Section 16, chapter 36, Laws of 1969 ex. sess., section 72, chapter 81, Laws of 1971, section 27, chapter 202, Laws of 1988 and RCW 28B.16.160;

(23) Section 26, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.170;

(24) Section 17, chapter 36, Laws of 1969 ex. sess., section 3, chapter 46, Laws of 1973 1st ex. sess and RCW 28B.16.180;

(25) Section 19, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.190;

(26) Section 20, chapter 36, Laws of 1969 ex. sess., section 18, chapter 151, Laws of 1979 and RCW 28B.16.200;

(27) Section 29, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.210;

(28) Section 31, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.220;

(29) Section 14, chapter 215, Laws of 1969 ex. sess., section 6, chapter 62, Laws of 1973 and RCW 28B.16.230;

(30) Section 1, chapter 46, Laws of 1979 ex. sess. and RCW 28B.16.240;

(31) Section 11, chapter 461, Laws of 1985 and RCW 28B.16.255;

(32) Section 12, chapter 461, Laws of 1985 and RCW 28B.16.265;

(33) Section 13, chapter 461, Laws of 1985 and RCW 28B.16.275;

(34) Section 18, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.900;

(35) Section 27, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.910;

(36) Section 30, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.920;

(37) Section 28, chapter 36, Laws of 1969 ex. sess. and RCW 28B.16.930;

(38) Section 1, chapter 311, Laws of 1981 and RCW 41.64.010;

(39) Section 3, chapter 311, Laws of 1981 and RCW 41.64.020;

(40) Section 4, chapter 311, Laws of 1981, section 4, chapter 34, Laws of 1984, section 73, chapter 287, Laws of 1984 and RCW 41.64.030;

(41) Section 5, chapter 311, Laws of 1981 and RCW 41.64.040;

(42) Section 6, chapter 311, Laws of 1981 and RCW 41.64.050;

(43) Section 7, chapter 311, Laws of 1981 and RCW 41.64.060;

(44) Section 8, chapter 311, Laws of 1981 and RCW 41.64.070;

(45) Section 9, chapter 311, Laws of 1981 and RCW 41.64.080;

(46) Section 10, chapter 311, Laws of 1981 and RCW 41.64.090;

(47) Section 11, chapter 311, Laws of 1981 and RCW 41.64.100;

(48) Section 12, chapter 311, Laws of 1981, section 7, chapter 461, Laws of 1985 and RCW 41.64.110;

(49) Section 13, chapter 311, Laws of 1981 and RCW 41.64.120;

(50) Section 14, chapter 311, Laws of 1981 and RCW 41.64.130;

(51) Section 15, chapter 311, Laws of 1981, section 42, chapter 202, Laws of 1988 and RCW 41.64.140;

(52) Section 2, chapter 311, Laws of 1981 and RCW 41.64.900;

(53) Section 24, chapter 311, Laws of 1981 and RCW 41.64.910;

(54) Section 23, chapter 1, Laws of 1961 and RCW 41.06.230;

(55) Section 1, chapter 45, Laws of 1969 and RCW 41.06.300;

(56) Section 2, chapter 45, Laws of 1969 and RCW 41.06.310;

(57) Section 3, chapter 45, Laws of 1969 and RCW 41.06.320;

(58) Section 4, chapter 45, Laws of 1969 and RCW 41.06.330; and

(59) Section 13, chapter 215, Laws of 1969 ex. sess. and RCW 41.06.340.

NEW SECTION. Sec. 71. CODIFICATION DIRECTIONS. Sections 1 through 21 of this act shall constitute a new chapter in Title 41 RCW.

NEW SECTION. Sec. 72. SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 73. EFFECTIVE DATE AND TRANSITION PROVISIONS. (1) This act shall take effect on July 1, 1991, except for sections 1 through 21 of this act which shall take effect January 1, 1990. The governor shall take such action as is necessary, including appointment of the members of the state employees' relations board, to ensure that sections 1 through 21 of this act are implemented on their effective date. Until July 1, 1991, the state employees' relations board shall contract with the department of personnel for labor relations staffing necessary to carry out its functions.

(2) The provisions of all collective bargaining agreements in effect covering employees affected by sections 1 through 21 of this act as of the effective date of this act and that expire prior to July 1, 1991, shall be extended without change through and including June 30, 1991, at which time all such agreements shall expire.

(3) Any collective bargaining agreement entered into prior to the effective date of this act covering employees affected by sections 1 through 21 of this act that expires after the effective date of this act shall, unless a superseding agreement complying with this chapter is negotiated by the parties, remain in full force during its duration, but shall not be renewed or extended. Negotiations for an agreement to succeed agreements under this subsection shall commence one year prior to expiration of the agreement or by July 1 preceding expiration, whichever occurs first. The succeeding contract shall expire on July 1 of the next odd-numbered year.

(4) Collective bargaining under this act concerning employees affected by sections 1 through 21 of this act shall not commence prior to July 1, 1990, and the provisions of any collective bargaining agreement negotiated under this chapter shall not be effective prior to July 1, 1991.