HOUSE BILL REPORT

HB 2639

BYRepresentatives Todd, McLean and Anderson

Compensating members of state boards, commissions, councils, and committees.

House Committe on State Government

Majority Report:  Do pass as amended.  (7)

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

Minority Report:  Do not pass.  (1)

      Signed by Representative Silver.

House Staff:Barbara McLain (786-7135)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on State Government.  (18)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Belcher, Braddock, Brekke, Dorn, Ebersole, Hine, Inslee, McLean, Peery, Rust, Sayan, Spanel, Sprenkle, Wang and Wineberry.

Minority Report:  Do not pass.  (8)

      Signed by Representatives Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Bowman, Doty, Ferguson, May, Nealey and Valle.

House Staff:      Karl Herzog (786-7271)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 5, 1990

BACKGROUND:

In 1984, the Legislature created a compensation plan for members of part-time boards and commissions.  The plan divides boards and commissions into four classes, with three levels of compensation based on type of responsibilities and time required of members to perform the group's statutory duties.  Compensation is allowed for each day spent either in an official meeting of the group or performing statutory duties of the group, and is granted in addition to authorized per diem and travel expenses.

            oClass I:  Class I groups function primarily in an advisory, coordinating, or planning capacity.  Class I groups receive no additional compensation.

            oClass II:  Any agricultural commodity commission established under the Department of Agriculture is considered a Class II group.  Members are to be paid $35 per day.

            oClass III:  Class III groups have rule-making authority, perform quasi-judicial functions, or have administrative or policy responsibility for a state agency or program.  Committees or boards that perform regulatory functions for a profession or business are also considered Class III groups.  Class III groups receive $50 per day.

            oClass IV:  Groups categorized as Class IV receive the highest level of compensation, $100 per day.  These groups: (a) have rule-making, quasi-judicial, or administrative and policy authority over a state agency; (b) have duties deemed by the Legislature to be of overriding sensitivity and importance; and (c) require service of their members of more than 100 hours of meeting time per year.

The Office of Financial Management is required to report to the Legislature every four years on the conformity of compensation practices with the above laws.  In 1988, OFM identified 28 statutes that did not appear to conform to the uniform compensation plan. An additional 9 statutes were identified in 1989, primarily for boards created during the 1989 session.

SUMMARY:

BILL AS AMENDED:  Compensation levels established in 37 different statutes for members of part-time boards and commissions are changed to be consistent with statutory criteria for compensation.

            oClass I:  (Advisory committees)  Thirteen advisory committees receiving compensation under current law are to receive no additional compensation beyond authorized per diem and travel expenses.  Nine of the 13 committees advise the Departments of Licensing and Health on regulation of occupations (acupuncture, cosmetology/barbering/manicuring, dietitians and nutritionists, naturopaths, respiratory care, social workers, mental health counselors, marriage and family therapists, and shorthand reporters).

            oClass II:  (Agricultural commodity commissions) The Washington Wine Commission and the Honey Bee Commission receive $35 per day, rather than no compensation.

            oClass III:  (Regulatory, quasi-judicial, or policy boards)  The compensation of 23 Class III boards or commissions is made $50 per day.  These include the Building Code Council, Public Works Board, Development Loan Fund Committee, Family Independence Program Executive Committee, Shoreline Hearings Board, Arts Commission, Transportation Improvement Board, and Committee for Deferred Compensation, among others.

            oClass IV:  (Policy boards with duties of overriding importance whose members serve more than 100 hours per year)  The State Board of Education is made a Class IV board with compensation of $100 per day.

Members of Class III boards and commissions which regulate an occupation, business, or industry are eligible to receive $100 per day in compensation as long as the compensation is fully paid by fees assessed against the regulated group.

None of the changes in compensation contained in the bill apply to members currently serving a term of office.  The changes in compensation take effect when a new member is appointed or when a current member begins a new term of office after the effective date of the bill.

AMENDED BILL COMPARED TO ORIGINAL:  Increased compensation to $100 per day is allowed for regulatory boards as long as the compensation is fully paid by fees assessed against the regulated group.  A grandfather clause is added so that the changes in compensation will not affect board members currently serving a term of office.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  None.

Fiscal Note:      Available, for original bill.  Requested February 1, 1990, for amended bill.

House Committee ‑ Testified For:    (State Government, on original bill)  Fred Hellberg, Governor's Office; Harry Peterson, State Board of Education; and Pete Butkus, Public Works Board, Department of Community Development.

(Appropriations) No one.

House Committee - Testified Against:      (State Government, on original bill) Cynthia Jones, Department of Licensing.

(Appropriations) No one.

House Committee - Testimony For:    (State Government, on original bill)  The bill implements a required study by the Office of Financial Management and brings compensation levels to conformity with the uniform statutory requirements for compensation of boards and commissions.  The State Board of Education holds two and one-half day meetings eight or nine times a year and has rule- making and policy authority for the common schools in the state. They could easily be considered a Class IV group.  For some groups, compensation is not an issue; the bill makes compensation available, but not mandatory.

(Appropriations) None.

House Committee - Testimony Against:      (State Government, on original bill)  Advisory boards work very hard in support of agency programs.  Many members are not wealthy and it is a hardship for them to take time away from work to attend meetings.  Costs of occupational licensing boards are borne by licensees, not by the state.

(Appropriations) None.