S-1775.2  _______________________________________________

                         SENATE BILL 5990

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Senators Long, Bauer, Cantu, Rinehart, Newhouse, Winsley, Wood, Deccio, Johnson, Finkbeiner, Loveland and Hochstatter

Read first time 02/21/95.  Referred to Committee on Ways & Means.

Requiring public notice regarding excess compensation.

    AN ACT Relating to requiring public notice prior to entering into agreements to pay certain types of excess compensation; and adding a new section to chapter 41.50 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 41.50 RCW to read as follows:

    (1) Unless in compliance with subsection (2) of this section, no governing body of an employer under chapter 41.26, 41.32, or 41.40 RCW may enter into a contract or collective bargaining agreement providing for:

    (a) A cash out of unused annual leave in excess of two hundred forty hours of such leave.  "Cash out" for purposes of this subsection means any payment in lieu of an accrual of annual leave or any payment added to regular salary, concurrent with a reduction of annual leave;

    (b) A cash out of any other form of leave;

    (c) A payment for, or in lieu of, any personal expense or transportation allowance;

    (d) The portion of any payment that exceeds twice the regular rate of pay; and

    (e) Any other termination or severance payment.

    (2) Before entering into a contract or collective bargaining agreement that includes a compensation provision listed in subsection (1) of this section, the governing body shall, with public notice in compliance with the open public meetings act under chapter 42.30 RCW, place the consideration of the proposed compensation provision on the agendas of two consecutive public meetings.  At the meetings, full disclosure shall be made of the nature of the proposed compensation provision, and the employer's estimate of the excess compensation billings under RCW 41.50.150 that the employing entity would have to pay as a result of the proposed compensation provision.  Only after the second of these public meetings may the governing body adopt the proposed compensation provisions.  The employer shall notify the department of its compliance with this section at the time the department bills the employer under RCW 41.40.150 for the pension impact of compensation provisions listed in subsection (1) of this section that are adopted after the effective date of this act.

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