BP BHEAD INT S

AN ACT Relating to economic development; amending RCW 41.06.070; reenacting and amending RCW 41.40.023; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 9.46.040, 9.46.050, 66.08.012, 66.08.014, 66.08.016, 67.16.012, 67.16.014, and 67.16.017; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) The legislature finds that the horse racing commission, the gambling commission, and the liquor control board:

(a) Each has major regulatory functions and the need for enforcement personnel;

(b) Each is in business to produce revenue for the state;

(d) Each does business with private sector industries.

(2) The legislature further finds that combining these three entities into a single board would increase state economic development and reduce duplication of efforts with beneficial savings to the state.

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

(1) "Board" means the gambling and liquor control board.

(2) "Chair" means the chair of the gambling and liquor control board.

NEW SECTION. Sec. 3. (1) The gambling and liquor control board is created.

(2) The board shall consist of five members, appointed by the governor with the consent of the senate. One member shall represent the gambling industry, one member shall represent the alcoholic beverage industry, one member shall represent the horse racing industry, and two members shall represent the public.

(3) The members shall be appointed to four‑year, staggered terms, and shall hold office until their successors are appointed and qualified. Vacancies shall be filled by appointment by the governor for the unexpired term. A member may be removed at any time at the pleasure of the governor.

(4) Each member shall be paid an annual salary fixed by the governor in accordance with RCW 43.03.040. Members of the board shall be reimbursed for travel expenses as provided in RCW 43.03.050.

(5) The board shall elect one of its members chair and shall appoint and employ a secretary and such other clerical, office, and other help as is necessary to perform the duties imposed by this chapter.

Sec. 4. RCW 41.06.070 and 1990 c 60 s 101 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 and technical colleges ((~~education~~)), and the higher education personnel board;

(4) The officers of the Washington state patrol;

(5) Elective officers of the state;

(6) The chief executive officer of each agency;

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

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

(10) Assistant attorneys general;

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

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

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

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

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

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

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

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

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

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

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

(23) Liquor vendors appointed by the ((~~Washington state~~)) gambling and 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 gambling and 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) 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) In each agency with fifty or more employees: Deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency heads;

(26) All employees of the marine employees' commission;

(27) 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. This subsection shall expire on June 30, 1997;

(28) 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 under subsections (24), (25), and (28) of this section, 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) through (22) 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.

A person occupying an exempt position who is terminated from the position for gross misconduct or malfeasance does not have the right of reversion to a classified position as provided for in this section.

Sec. 5. RCW 41.40.023 and 1990 c 274 s 10 and 1990 c 192 s 4 are each reenacted and amended to read as follows:

Membership in the retirement system shall consist of all regularly compensated employees and appointive and elective officials of employers, as defined in this chapter, with the following exceptions:

(1) Persons in ineligible positions;

(2) Employees of the legislature except the officers thereof elected by the members of the senate and the house and legislative committees, unless membership of such employees be authorized by the said committee;

(3)(a) Persons holding elective offices or persons appointed directly by the governor: PROVIDED, That such persons shall have the option of applying for membership during such periods of employment: AND PROVIDED FURTHER, That any persons holding or who have held elective offices or persons appointed by the governor who are members in the retirement system and who have, prior to becoming such members, previously held an elective office, and did not at the start of such initial or successive terms of office exercise their option to become members, may apply for membership to be effective during such term or terms of office, and shall be allowed to establish the service credit applicable to such term or terms of office upon payment of the employee contributions therefor by the employee with interest as determined by the director and employer contributions therefor by the employer or employee with interest as determined by the director: AND PROVIDED FURTHER, That all contributions with interest submitted by the employee under this subsection shall be placed in the employee's individual account in the employee's savings fund and be treated as any other contribution made by the employee, with the exception that any contributions submitted by the employee in payment of the employer's obligation, together with the interest the director may apply to the employer's contribution, shall not be considered part of the member's annuity for any purpose except withdrawal of contributions;

(b) A member holding elective office in a town or city who has elected to apply for membership pursuant to (a) of this subsection and who later wishes to be eligible for a retirement allowance shall have the option of ending his or her membership in the retirement system. A member wishing to end his or her membership under this subsection must file, on a form supplied by the department, a statement indicating that the member agrees to irrevocably abandon any claim for service for future periods served as an elected official of a town or city. A member who receives more than ten thousand dollars per year in compensation for his or her elective service is not eligible for the option provided by this subsection (3)(b);

(4) Employees holding membership in, or receiving pension benefits under, any retirement plan operated wholly or in part by an agency of the state or political subdivision thereof, or who are by reason of their current employment contributing to or otherwise establishing the right to receive benefits from any such retirement plan: PROVIDED, HOWEVER, In any case where the retirement system has in existence an agreement with another retirement system in connection with exchange of service credit or an agreement whereby members can retain service credit in more than one system, such an employee shall be allowed membership rights should the agreement so provide: AND PROVIDED FURTHER, That an employee shall be allowed membership if otherwise eligible while receiving survivor's benefits: AND PROVIDED FURTHER, That an employee shall not either before or after June 7, 1984, be excluded from membership or denied service credit pursuant to this subsection solely on account of: (a) Membership in the plan created under chapter 2.14 RCW; or (b) enrollment under the relief and compensation provisions or the pension provisions of the volunteer fire fighters' relief and pension fund under chapter 41.24 RCW;

(5) Patient and inmate help in state charitable, penal, and correctional institutions;

(6) "Members" of a state veterans' home or state soldiers' home;

(7) Persons employed by an institution of higher learning or community college, primarily as an incident to and in furtherance of their education or training, or the education or training of a spouse;

(8) Employees of an institution of higher learning or community college during the period of service necessary to establish eligibility for membership in the retirement plans operated by such institutions;

(9) Persons rendering professional services to an employer on a fee, retainer, or contract basis or when the income from these services is less than fifty percent of the gross income received from the person's practice of a profession;

(10) Persons appointed after April 1, 1963, by the liquor control board or gambling and liquor control board as agency vendors;

(11) Employees of a labor guild, association, or organization: PROVIDED, That elective officials and employees of a labor guild, association, or organization which qualifies as an employer within this chapter shall have the option of applying for membership;

(12) Plan I retirees employed in eligible positions on a temporary basis for a period not to exceed five months in a calendar year: PROVIDED, That if such employees are employed for more than five months in a calendar year in an eligible position they shall become members of the system prospectively;

(13) Persons employed by or appointed or elected as an official of a first class city that has its own retirement system: PROVIDED, That any member elected or appointed to an elective office on or after April 1, 1971, shall have the option of continuing as a member of this system in lieu of becoming a member of the city system. A member who elects to continue as a member of this system shall pay the appropriate member contributions and the city shall pay the employer contributions at the rates prescribed by this chapter. The city shall also transfer to this system all of such member's accumulated contributions together with such further amounts as necessary to equal all employee and employer contributions which would have been paid into this system on account of such service with the city and thereupon the member shall be granted credit for all such service. Any city that becomes an employer as defined in RCW 41.40.010(4) as the result of an individual's election under this subsection shall not be required to have all employees covered for retirement under the provisions of this chapter. Nothing in this subsection shall prohibit a city of the first class with its own retirement system from: (a) Transferring all of its current employees to the retirement system established under this chapter, or (b) allowing newly hired employees the option of continuing coverage under the retirement system established by this chapter.

Notwithstanding any other provision of this chapter, persons transferring from employment with a first class city of over four hundred thousand population that has its own retirement system to employment with the state department of agriculture may elect to remain within the retirement system of such city and the state shall pay the employer contributions for such persons at like rates as prescribed for employers of other members of such system;

(14) Employees who (a) are not citizens of the United States, (b) do not reside in the United States, and (c) perform duties outside of the United States;

(15) Employees who (a) are not citizens of the United States, (b) are not covered by chapter 41.48 RCW, (c) are not excluded from membership under this chapter or chapter 41.04 RCW, (d) are residents of this state, and (e) make an irrevocable election to be excluded from membership, in writing, which is submitted to the director within thirty days after employment in an eligible position;

(16) Employees who are citizens of the United States and who reside and perform duties for an employer outside of the United States: PROVIDED, That unless otherwise excluded under this chapter or chapter 41.04 RCW, the employee may apply for membership (a) within thirty days after employment in an eligible position and membership service credit shall be granted from the first day of membership service, and (b) after this thirty-day period, but membership service credit shall be granted only from the date of application;

(17) The city manager or chief administrative officer of a city or town who serves at the pleasure of an appointing authority: PROVIDED, That such persons shall have the option of applying for membership within thirty days from date of their appointment to such positions. Persons serving in such positions as of April 4, 1986, shall continue to be members in the retirement system unless they notify the director in writing prior to December 31, 1986, of their desire to withdraw from membership in the retirement system. A member who withdraws from membership in the system under this section shall receive a refund of the member's accumulated contributions.

NEW SECTION. Sec. 6. The gambling commission is hereby abolished and its powers, duties, and functions are hereby transferred to the gambling and liquor control board. All references to the chairman or gambling commission in the Revised Code of Washington shall be construed to mean the chair or gambling and liquor control board.

NEW SECTION. Sec. 7. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the gambling commission shall be delivered to the custody of the gambling and liquor control board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the gambling commission shall be made available to the gambling and liquor control board. All funds, credits, or other assets held by the gambling commission shall be assigned to the gambling and liquor control board.

Any appropriations made to the gambling commission shall, on the effective date of this section, be transferred and credited to the gambling and liquor control 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. 8. All classified employees of the gambling commission are transferred to the jurisdiction of the gambling and liquor control board. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling and liquor control board 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. 9. All rules and all pending business before the gambling commission shall be continued and acted upon by the gambling and liquor control board. All existing contracts and obligations shall remain in full force and shall be performed by the gambling and liquor control board.

NEW SECTION. Sec. 10. The transfer of the powers, duties, functions, and personnel of the gambling commission shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 11. If apportionments of budgeted funds are required because of the transfers directed by sections 7 through 10 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. 12. Nothing contained in sections 6 through 11 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 13. The liquor control board is hereby abolished and its powers, duties, and functions are hereby transferred to the gambling and liquor control board. All references to the chairman or liquor control board in the Revised Code of Washington shall be construed to mean the chair or gambling and liquor control board.

NEW SECTION. Sec. 14. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the liquor control board shall be delivered to the custody of the gambling and liquor control board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the liquor control board shall be made available to the gambling and liquor control board. All funds, credits, or other assets held by the liquor control board shall be assigned to the gambling and liquor control board.

Any appropriations made to the liquor control board shall, on the effective date of this section, be transferred and credited to the gambling and liquor control board.

NEW SECTION. Sec. 15. All classified employees of the liquor control board are transferred to the jurisdiction of the gambling and liquor control board. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling and liquor control board 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. 16. All rules and all pending business before the liquor control board shall be continued and acted upon by the gambling and liquor control board. All existing contracts and obligations shall remain in full force and shall be performed by the gambling and liquor control board.

NEW SECTION. Sec. 17. The transfer of the powers, duties, functions, and personnel of the liquor control board shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 18. If apportionments of budgeted funds are required because of the transfers directed by sections 14 through 17 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. 19. Nothing contained in sections 13 through 18 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 20. The horse racing commission is hereby abolished and its powers, duties, and functions are hereby transferred to the gambling and liquor control board. All references to the chairman or horse racing commission in the Revised Code of Washington shall be construed to mean the chair or gambling and liquor control board.

NEW SECTION. Sec. 21. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the horse racing commission shall be delivered to the custody of the gambling and liquor control board. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the horse racing commission shall be made available to the gambling and liquor control board. All funds, credits, or other assets held by the horse racing commission shall be assigned to the gambling and liquor control board.

Any appropriations made to the horse racing commission shall, on the effective date of this section, be transferred and credited to the gambling and liquor control board.

NEW SECTION. Sec. 22. All classified employees of the horse racing commission are transferred to the jurisdiction of the gambling and liquor control board. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling and liquor control board 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. 23. All rules and all pending business before the horse racing commission shall be continued and acted upon by the gambling and liquor control board. All existing contracts and obligations shall remain in full force and shall be performed by the gambling and liquor control board.

NEW SECTION. Sec. 24. The transfer of the powers, duties, functions, and personnel of the horse racing commission shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 25. If apportionments of budgeted funds are required because of the transfers directed by sections 21 through 24 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. 26. Nothing contained in sections 20 through 25 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 27. The following acts or parts of acts are each repealed:

(1) RCW 9.46.040 and 1974 ex.s. c 155 s 12, 1974 ex.s. c 135 s 12, & 1973 1st ex.s. c 218 s 4;

(2) RCW 9.46.050 and 1984 c 287 s 9, 1975‑'76 2nd ex.s. c 34 s 7, & 1973 1st ex.s. c 218 s 5;

(3) RCW 66.08.012 and 1961 c 307 s 7, 1949 c 5 s 8, 1945 c 208 s 1, 1937 c 225 s 1, & 1933 ex.s. c 62 s 63;

(4) RCW 66.08.014 and 1986 c 105 s 1, 1949 c 5 s 9, 1947 c 113 s 1, 1945 c 208 s 2, & 1933 ex.s. c 62 s 64;

(5) RCW 66.08.016 and 1961 c 1 s 30, 1947 c 113 s 2, & 1933 ex.s. c 62 s 65;

(6) RCW 67.16.012 and 1987 c 453 s 2, 1973 1st ex.s. c 216 s 1, 1969 ex.s. c 233 s 1, & 1933 c 55 s 2;

(7) RCW 67.16.014 and 1991 c 270 s 2 & 1987 c 453 s 3; and

(8) RCW 67.16.017 and 1984 c 287 s 100, 1975‑'76 2nd ex.s. c 34 s 155, & 1969 ex.s. c 233 s 2.

NEW SECTION. Sec. 28. Sections 1 through 3, 6, 13, and 20 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 29. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.