2010 session laws - washingtonleg.wa.gov/codereviser/documents/sessionlaw/2010pam1.pdf2010 session...

2010

SESSION LAWSOF THE

STATE OF WASHINGTON

REGULAR SESSIONSIXTY-FIRST LEGISLATURE

Convened January 11, 2010. Adjourned March 11, 2010.

Published at Olympia by the Statute Law Committee under Chapter 44.20 RCW.

K. KYLE THIESSENCode Reviser

http://www1.leg.wa.gov/codereviser

WASHINGTON SESSION LAWSGENERAL INFORMATION

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1. EDITIONS AVALIABLE.(a) General Information. The session laws are printed in a permanent softbound edi-

tion containing the accumulation of all laws adopted in the legislative session. Theedition contains a subject index and tables indicating Revised Code of Washingtonsections affected.

(b) Where and how obtained - price. The permanent session laws may be orderedfrom the Statute Law Committee, Pritchard Building, P.O. Box 40552, Olympia,Washington 98504-0552. The edition costs $25.00 per set plus applicable stateand local sales taxes and $7.00 shipping and handling. All orders must be accom-panied by payment.

2. PRINTING STYLE - INDICATION OF NEW OR DELETED MATTER.The session laws are presented in the form in which they were enacted by the legisla-ture. This style quickly and graphically portrays the current changes to existing law as follows:(a) In amendatory sections

(i) underlined matter is new matter.(ii) deleted matter is ((lined out and bracketed between double parentheses)).

(b) Complete new sections are prefaced by the words NEW SECTION.3. PARTIAL VETOES.

(a) Vetoed matter is printed in bold italics.(b) Pertinent excerpts of the governors explanation of partial vetoes are printed at the

end of the chapter concerned.4. EDITORIAL CORRECTIONS. Words and clauses inserted in the session laws under

the authority of RCW 44.20.060 are enclosed in [brackets].5. EFFECTIVE DATE OF LAWS.

(a)The state Constitution provides that unless otherwise qualified, the laws of anysession take effect ninety days after adjournment sine die. The Secretary of Statehas determined the pertinent date for the Laws of the 2010 regular session to be thefirst moment of June 10, 2010.

(b) Laws that carry an emergency clause take effect immediately upon approval bythe Governor.

(c) Laws that prescribe an effective date take effect upon that date.6. INDEX AND TABLES.

A cumulative index and tables of all 2010 laws may be found at the back of the final volume.

TABLE OF CONTENTS

ChapterNo.

BillNo. Subject Page

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1 SSB 6382 State employeesCompensation restrictions . . . . . . . . . . . . . . . 12 SHB 2998 State employeesMonetary awards and salary increases

Suspension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 ESHB 2921 2009-11 operating budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 ESSB 6130 Tax and fee increasesInitiative 960Suspension . . . . . . . . . 865 ESB 5041 Veteran-owned businessesState assistance . . . . . . . . . . . . . . 886 SSB 5046 Symphony musiciansCollective bargaining . . . . . . . . . . . . . . 917 ESSB 6241 Community facilities districtsCreation. . . . . . . . . . . . . . . . . . 968 SSB 6239 RCW technical correctionGender-based terms . . . . . . . . . . 1069 ESB 5516 Drug overdose prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386

10 SB 5582 Washington state patrol chief for a day program . . . . . . . . . . . 39311 SSB 6831 Wills and trustsDraftingFederal tax laws . . . . . . . . . . . . . 39412 2ESB 5617 Early learning advisory councilMembership

Advisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39513 SSB 6197 Group life insuranceAvailability . . . . . . . . . . . . . . . . . . . . . 39714 SSB 6211 Scenic and recreational highway systemAgricultural scenic

corridor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39815 SSB 6213 Railroad crossingsStopping requirement . . . . . . . . . . . . . . . 40316 SB 6227 Opticianry studentsPractice under supervision . . . . . . . . . . 40517 SB 6229 Dairy inspection programExpiration date . . . . . . . . . . . . . . 40618 SSB 6251 Resident surplus line brokersLicensing requirements . . . . . 40719 SSB 6271 Regional transit authoritiesAnnexation of territory . . . . . . . 41420 E2SHB 1418 Dropout reengagement program. . . . . . . . . . . . . . . . . . . . . . . . 41621 SHB 1545 Higher education employeesAnnuities and retirement

income plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42022 SHB 2789 Underground economy activityInvestigations

Subpoenas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42223 HB 1576 Marine fuel taxRefunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42424 ESHB 2399 Solid waste collectionCertificatePenalties . . . . . . . . . . . . 42625 SHB 2649 Employment security actCorrections . . . . . . . . . . . . . . . . . . 42726 HB 2406 JLARCProcessMembershipPerformance audits . . . . . 43327 SHB 2585 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43628 SHB 2422 Escape or disappearance notificationCommitted persons

Mental health facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 44829 HB 2428 Unclaimed propertyRecovery fees . . . . . . . . . . . . . . . . . . . . 44830 SHB 2704 Main street programTransfer . . . . . . . . . . . . . . . . . . . . . . . . 45031 SHB 2429 Vehicles with nonconformitiesResale . . . . . . . . . . . . . . . . . 45332 ESHB 2496 Ballot design and layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45533 SHB 2546 Electrical traineesClassroom training. . . . . . . . . . . . . . . . . . 45634 ESHB 2564 Escrow agents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45935 HB 2608 Residential loan modificationsLicensure . . . . . . . . . . . . . . . 46736 SSB 6298 Public fundsDepositsCredit unions . . . . . . . . . . . . . . . . . 48537 SHB 2661 WSU extension energy programPlant operations support

program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48538 EHB 2667 Forest fire responseJurisdictionCommunications . . . . . . 48639 SHB 2678 Horse racing commissionFunds distributionNonprofit

race meets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48940 SHB 2684 Community collegeOpportunity employment and

education center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491

TABLE OF CONTENTS

ChapterNo.


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41 HB 2877 Educational employeesRegulated company stock . . . . . . . . 49242 SHB 3145 Wage payment requirementsWage complaints . . . . . . . . . . 49443 SB 6209 County road fundsPark and ride lots . . . . . . . . . . . . . . . . . . 50044 SSB 6273 Insurance coverageSales taxDurable medical and

mobility enhancing equipment . . . . . . . . . . . . . . . . . . . . . 50145 SB 6275 Harbor line commissionAuthorityHarbor lines . . . . . . . . 50246 ESSB 6286 Flood prevention and navigationCities and special

districtsAuthority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50347 SB 6288 County, city, or town authorityBackground checks

Occupational licensees . . . . . . . . . . . . . . . . . . . . . . . . . . . 50448 SB 6330 Human traffickingInformational posters . . . . . . . . . . . . . . . 50549 SB 6450 Court reportersContinuing education requirements . . . . . . . 50650 SB 6453 LEOFF plan 2Shared leave . . . . . . . . . . . . . . . . . . . . . . . . . 50751 SB 6467 Honorary degreesInternment camps. . . . . . . . . . . . . . . . . . . 50852 2SHB 2396 Emergency cardiac and stroke care . . . . . . . . . . . . . . . . . . . . . 51553 HB 2465 Breath test instrumentsResultsAdmissibility . . . . . . . . . . 52254 SHB 2487 Deferred prosecutionAdministrationCosts . . . . . . . . . . . . 52455 SHB 2555 Electrical industryViolationsIssuance of subpoenas . . . . 52656 HB 2592 Tow truck operatorsIncentive programsProhibition. . . . . 52657 HB 2598 Mount St. Helen's eruptionDredged riverbed materials

Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52758 HB 2707 PUD commissioner compensationCalculation . . . . . . . . . . . 52959 HB 2740 Land use petition actDefinition of "land use decision" . . . . 53160 HB 2823 Volunteer firefighters, emergency workers, reserve officers

RetireesResuming service . . . . . . . . . . . . . . . . . . . . . . 53261 HB 2858 Higher educationPurchasing authorityGroup purchasing

organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53462 SB 6279 Public facilitiesRegional transit authority facilities . . . . . . . 53663 ESB 6287 Voter-approved indebtednessRepaymentAnnexation

Fire protection district . . . . . . . . . . . . . . . . . . . . . . . . . . . 53764 SSB 6749 Commercial real estateSellersDisclosure . . . . . . . . . . . . . 53865 SB 6297 Speech-language pathology assistantsCertification . . . . . . . 54466 SSB 6299 Animal health inspectionsProof of ownership . . . . . . . . . . . 55167 ESSB 6306 Crop insuranceCrop adjusters. . . . . . . . . . . . . . . . . . . . . . . . 55968 SSB 6341 Food assistance programsTransferDepartment of

agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56569 SSB 6367 Public records requestsOnline access. . . . . . . . . . . . . . . . . . 56870 SSB 6556 Agricultural burningFees . . . . . . . . . . . . . . . . . . . . . . . . . . . 56971 SSB 6357 Academic credit policiesPrior learning . . . . . . . . . . . . . . . . 57272 SSB 6524 Unemployment insuranceDelinquent employers . . . . . . . . . 57273 SSB 6371 Money transmitters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58274 SSB 6577 Transportation system policy goalsEconomic vitality . . . . . 59375 SSB 6342 Washington soldiers' homeLeases . . . . . . . . . . . . . . . . . . . . 59476 SB 6365 Motor vehicle emissions standardsExemptionMilitary

personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59577 SSB 6510 State route number 166Port Orchard city limits. . . . . . . . . . 59578 SB 6543 Washington tree fruit research commissionPowers . . . . . . . 59679 SSB 6544 Approval of platsExtension of time . . . . . . . . . . . . . . . . . . . 59780 SB 6546 State director of fire protectionState retirement plans . . . . . 598

TABLE OF CONTENTS

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81 SB 6555 State route number 908Removal . . . . . . . . . . . . . . . . . . . . . 60282 SSB 6558 Railroad crossing closuresPetitions for administrative

review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60383 SB 6627 Advance registered nurse practitionersOut-of-state

Prescriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60484 SSB 6634 Dairy nutrient management recordkeepingPenalties . . . . . . 60585 SSB 6591 Human rights commissionComplaintsReview and

investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60986 HB 1080 Impact feesPublic facilitiesFire protection facilities . . . . 61087 EHB 2830 Credit unionsRegulatory authority and enforcement . . . . . . 61188 EHB 2831 Commercial and savings banks and trust companies

Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62289 ESHB 3032 Motor vehicle service contractsNormal wear and tear. . . . . 66190 2EHB 1876 Disabled veteransFundingVoluntary donations . . . . . . . . 66391 SHB 2403 Military leavePublic employees . . . . . . . . . . . . . . . . . . . . . . 66492 SHB 2430 Cardiovascular invasive specialists . . . . . . . . . . . . . . . . . . . . . 66593 HB 2419 Foreign or alien insurersCertificate of authority

Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66894 HB 2490 RCWRespectful languagePersons with intellectual

disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66895 HB 2510 Public hospital districtsIssuance of bondsSecurity

instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69596 SHB 2515 Fuel pump labelingBiodiesel blends . . . . . . . . . . . . . . . . . . 69897 ESHB 2842 Insurance receivershipsDocumentsConfidentiality . . . . . 69998 HB 2861 Court reportersTaking of testimony . . . . . . . . . . . . . . . . . . . 70299 ESHB 2913 Innovative interdistrict cooperative high school programs . . . 703

100 HB 2996 Record checksPrivate schools . . . . . . . . . . . . . . . . . . . . . . . 710101 SB 6540 Combined fund driveOperation . . . . . . . . . . . . . . . . . . . . . . 711102 SHB 2990 City taxing authorityWater-sewer districts. . . . . . . . . . . . . . 713103 HB 1541 State employeesRetirementHalf-time service credit . . . . 716104 E2SHB 1560 Higher education institutionsCollective bargaining . . . . . . . 718105 2SHB 1591 Transportation benefit district funds . . . . . . . . . . . . . . . . . . . . 720106 E2SHB 1597 Excise, estate, property taxesConfidentiality

Clarifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722107 EHB 1653 Growth management actShoreline management act . . . . . . 796108 SHB 1913 Process serversRequirements . . . . . . . . . . . . . . . . . . . . . . . . 803109 HB 2460 Organic productsCertification and labelingFees

Registered materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803110 HB 2521 Health insurance coverageTerminationConversion . . . . . 811111 SHB 2620 Digital productsTaxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 814112 SHB 2758 Wholesale purchasesReseller permits . . . . . . . . . . . . . . . . . 835113 SHB 2828 HospitalsRequired reportsInfectionsSurgery sites . . . . 863114 SHB 3066 Tax incentivesAccountability reports and surveys. . . . . . . . 866115 SB 6218 Voter approved excess property tax leviesCapital asset

lending program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 914116 SSB 6337 Inmate savings accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917117 SSB 6356 Law enforcement and emergency equipment and vehicles

Sale or transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920

TABLE OF CONTENTS

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118 SSB 6395 Public participation lawsuitsSpecial motion to strike claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921

119 SSB 6398 Malicious harassmentThreat. . . . . . . . . . . . . . . . . . . . . . . . . 924120 SSB 6674 ContractsIndemnificationMotor carriers . . . . . . . . . . . . . 926121 SB 6487 ChiropractorsReimbursement for servicesEqual

payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 927122 E2SSB 6504 Crime victims' compensation programEligibility

Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 927123 SB 6745 Veterinary technician licenses . . . . . . . . . . . . . . . . . . . . . . . . . 937124 SSB 6816 Farm implement special permitsAdministrative review. . . . 938125 PV HB 1880 Ballot envelopesSecrecy flap . . . . . . . . . . . . . . . . . . . . . . . . 938126 2SHB 2481 Forest biomass on state lands . . . . . . . . . . . . . . . . . . . . . . . . . . 940127 ESHB 3179 Local excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 950128 SSB 5295 Public records exemption accountability committee

Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 957129 ESSB 5529 Architects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 966130 ESSB 5543 Mercury-containing lightsCollection, transportation, and

recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 975131 ESSB 5704 Flood district creationThree or more counties . . . . . . . . . . . 986132 2ESSB 5742 Crime-free rental housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 988133 SSB 6202 Vulnerable adultsFinancial institutionsReports of

abuse or neglect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990134 SSB 6192 Juvenile casesRestitution . . . . . . . . . . . . . . . . . . . . . . . . . . . 996135 ESB 6261 Utility services collectionsResidential rental property. . . . . 997136 SB 6418 Fire protection districtsEstablishmentAnnexation . . . . . . 999137 SB 6206 Tax incentive accountability reports and surveysFiling

due dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1000138 SSB 6208 Temporary agricultural directional signs . . . . . . . . . . . . . . . . 1001139 SB 6219 Time certificate of deposit programFunding sources. . . . . 1003140 SSB 6248 Bisphenol ARestrictions on sale. . . . . . . . . . . . . . . . . . . . . 1004141 SSB 6329 Beer and wine tastingGrocery stores . . . . . . . . . . . . . . . . . 1005142 SSB 6332 Human traffickingForeign workersInformation . . . . . . . 1011143 SSB 6340 Forensic investigations councilMembership . . . . . . . . . . . 1012144 SSB 6346 Electric vehiclesRequirements for operation . . . . . . . . . . . 1013145 SSB 6350 Marine waters planning and management . . . . . . . . . . . . . . . 1016146 SSB 6373 Greenhouse gas emissionsReporting . . . . . . . . . . . . . . . . . 1027147 SSB 6557 Brake friction materialRestrictions on use . . . . . . . . . . . . . 1033148 SSB 6459 Rental propertiesInspections by local municipalities . . . . . 1038149 ESB 6764 Tort judgmentsAccrual of interest . . . . . . . . . . . . . . . . . . . 1045150 E2SSB 6561 Juvenile offender recordsAccess . . . . . . . . . . . . . . . . . . . . 1046151 E2SHB 1149 Financial informationSecurity breachesCredit and

debit cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1053152 SHB 2527 Energy facility site evaluation council . . . . . . . . . . . . . . . . . . 1055153 ESHB 2538 Comprehensive planningCompact, high-density urban

development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1061154 E2SHB 2539 Solid waste management planningResidential recycling . . 1066155 HB 3007 Airport propertyRentalPublic uses . . . . . . . . . . . . . . . . . 1068156 HB 2697 Real estate broker licensing fees . . . . . . . . . . . . . . . . . . . . . . 1072157 HB 2734 Department of transportation surplus propertyDisposal. . . 1073

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158 SHB 2745 State lead-based paint programRenovation activities . . . . 1075159 SHB 3105 State agency fleetsFuel economy requirements . . . . . . . . . 1083160 PV SSB 6349 Farm internship program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1084

WASHINGTON LAWS, 2010 Ch. 1

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CHAPTER 1[Substitute Senate Bill 6382]

STATE EMPLOYEESCOMPENSATION RESTRICTIONS1 AN ACT Relating to reducing the cost of state government operations by restrictingcompensation; amending RCW 41.06.500, 43.03.030, 43.03.040, and 41.60.150; reenacting andamending RCW 41.06.070 and 41.06.133; creating new sections; and declaring an emergency.

Be it enacted by the Legislature of the State of Washington: Sec. 1. RCW 41.06.070 and 2009 c 33 s 36 and 2009 c 5 s 1 are each

reenacted and amended to read as follows:(1) The provisions of this chapter do not apply to:(a) The members of the legislature or to any employee of, or position in, the

legislative branch of the state government including members, officers, andemployees of the legislative council, joint legislative audit and reviewcommittee, statute law committee, and any interim committee of the legislature;

(b) The justices of the supreme court, judges of the court of appeals, judgesof the superior courts or of the inferior courts, or to any employee of, or positionin the judicial branch of state government;

(c) Officers, academic personnel, and employees of technical colleges;(d) The officers of the Washington state patrol;(e) Elective officers of the state;(f) The chief executive officer of each agency;(g) In the departments of employment security and social and health

services, the director and the director's confidential secretary; in all otherdepartments, the executive head of which is an individual appointed by thegovernor, the director, his or her confidential secretary, and his or her statutoryassistant directors;

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

(i) All members of such boards, commissions, or committees;(ii) If the members of the board, commission, or committee serve on a part-

time basis and there is a statutory executive officer: The secretary of the board,commission, or committee; the chief executive officer of the board, commission,or committee; and the confidential secretary of the chief executive officer of theboard, commission, or committee;

(iii) If the members of the board, commission, or committee serve on a full-time basis: The chief executive officer or administrative officer as designated bythe board, commission, or committee; and a confidential secretary to the chair ofthe board, commission, or committee;

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

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

(j) Assistant attorneys general;(k) Commissioned and enlisted personnel in the military service of the state;(l) Inmate, student, part-time, or temporary employees, and part-time

professional consultants, as defined by the Washington personnel resourcesboard;

Ch. 1 WASHINGTON LAWS, 2010

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(m) The public printer or to any employees of or positions in the stateprinting plant;

(n) Officers and employees of the Washington state fruit commission;(o) Officers and employees of the Washington apple commission;(p) Officers and employees of the Washington state dairy products

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

commission;(r) Officers and employees of the Washington state beef commission;(s) Officers and employees of the Washington grain commission;(t) Officers and employees of any commission formed under chapter 15.66

RCW;(u) Officers and employees of agricultural commissions formed under

chapter 15.65 RCW;(v) Officers and employees of the nonprofit corporation formed under

chapter 67.40 RCW;(w) Executive assistants for personnel administration and labor relations in

all state agencies employing such executive assistants including but not limitedto all departments, offices, commissions, committees, boards, or other bodiessubject to the provisions of this chapter and this subsection shall prevail over anyprovision of law inconsistent herewith unless specific exception is made in suchlaw;

(x) In each agency with fifty or more employees: Deputy agency heads,assistant directors or division directors, and not more than three principal policyassistants who report directly to the agency head or deputy agency heads;

(y) All employees of the marine employees' commission;(z) Staff employed by the department of ((community, trade, and economic

development)) commerce to administer energy policy functions and manageenergy site evaluation council activities under RCW 43.21F.045(2)(m);

(aa) Staff employed by Washington State University to administer energyeducation, applied research, and technology transfer programs under RCW43.21F.045 as provided in RCW 28B.30.900(5).

(2) The following classifications, positions, and employees of institutions ofhigher education and related boards are hereby exempted from coverage of thischapter:

(a) Members of the governing board of each institution of higher educationand related boards, all presidents, vice presidents, and their confidentialsecretaries, administrative, and personal assistants; deans, directors, and chairs;academic personnel; and executive heads of major administrative or academicdivisions employed by institutions of higher education; principal assistants toexecutive heads of major administrative or academic divisions; other managerialor professional employees in an institution or related board having substantialresponsibility for directing or controlling program operations and accountablefor allocation of resources and program results, or for the formulation ofinstitutional policy, or for carrying out personnel administration or laborrelations functions, legislative relations, public information, development, seniorcomputer systems and network programming, or internal audits andinvestigations; and any employee of a community college district whose place ofwork is one which is physically located outside the state of Washington and who


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is employed pursuant to RCW 28B.50.092 and assigned to an educationalprogram operating outside of the state of Washington;

(b) The governing board of each institution, and related boards, may alsoexempt from this chapter classifications involving research activities, counselingof students, extension or continuing education activities, graphic arts orpublications activities requiring prescribed academic preparation or specialtraining as determined by the board: PROVIDED, That no nonacademicemployee engaged in office, clerical, maintenance, or food and trade servicesmay be exempted by the board under this provision;

(c) Printing craft employees in the department of printing at the Universityof Washington.

(3) In addition to the exemptions specifically provided by this chapter, thedirector of personnel may provide for further exemptions pursuant to thefollowing procedures. The governor or other appropriate elected official maysubmit requests for exemption to the director of personnel stating the reasons forrequesting such exemptions. The director of personnel shall hold a publichearing, after proper notice, on requests submitted pursuant to this subsection. Ifthe director determines that the position for which exemption is requested is oneinvolving substantial responsibility for the formulation of basic agency orexecutive policy or one involving directing and controlling program operationsof an agency or a major administrative division thereof, the director of personnelshall grant the request and such determination shall be final as to any decisionmade before July 1, 1993. The total number of additional exemptions permittedunder this subsection shall not exceed one percent of the number of employeesin the classified service not including employees of institutions of highereducation and related boards for those agencies not directly under the authorityof any elected public official other than the governor, and shall not exceed a totalof twenty-five for all agencies under the authority of elected public officialsother than the governor.

The salary and fringe benefits of all positions presently or hereafterexempted except for the chief executive officer of each agency, full-timemembers of boards and commissions, administrative assistants and confidentialsecretaries in the immediate office of an elected state official, and the personnellisted in subsections (1)(j) through (v) and (y) and (2) of this section, shall bedetermined by the director of personnel. Changes to the classification planaffecting exempt salaries must meet the same provisions for classified salaryincreases resulting from adjustments to the classification plan as outlined inRCW 41.06.152.

((For the twelve months following)) From February 18, 2009, through June30, 2011, a salary or wage increase shall not be granted to any position exemptfrom classification under this chapter, except that a salary or wage increase maybe granted to employees pursuant to collective bargaining agreements negotiatedunder chapters 28B.52, 41.56, 47.64, or 41.76 RCW, or negotiated by thenonprofit corporation formed under chapter 67.40 RCW, and except thatincreases may be granted for positions for which the employer has demonstrateddifficulty retaining qualified employees if the following conditions are met:

(a) The salary increase can be paid within existing resources; and(b) The salary increase will not adversely impact the provision of client

services.


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Any agency granting a salary increase from the effective date of this sectionthrough June 30, 2011, to a position exempt from classification under thischapter shall submit a report to the fiscal committees of the legislature no laterthan July 31, 2011, detailing the positions for which salary increases weregranted, the size of the increases, and the reasons for giving the increases.

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

Any classified employee having civil service status in a classified positionwho accepts an appointment in an exempt position shall have the right ofreversion to the highest class of position previously held, or to a position ofsimilar nature and salary.

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

Sec. 2. RCW 41.06.133 and 2009 c 534 s 2 and 2009 c 5 s 2 are eachreenacted and amended to read as follows:

(1) The director shall adopt rules, consistent with the purposes andprovisions of this chapter and with the best standards of personneladministration, regarding the basis and procedures to be followed for:

(a) The reduction, dismissal, suspension, or demotion of an employee;(b) Training and career development;(c) Probationary periods of six to twelve months and rejections of

probationary employees, depending on the job requirements of the class, exceptthat entry level state park rangers shall serve a probationary period of twelvemonths;

(d) Transfers;(e) Promotional preferences;(f) Sick leaves and vacations;(g) Hours of work;(h) Layoffs when necessary and subsequent reemployment, except for the

financial basis for layoffs;(i) The number of names to be certified for vacancies;(j) Adoption and revision of a state salary schedule to reflect the prevailing

rates in Washington state private industries and other governmental units. Therates in the salary schedules or plans shall be increased if necessary to attaincomparable worth under an implementation plan under RCW 41.06.155 and, forinstitutions of higher education and related boards, shall be competitive forpositions of a similar nature in the state or the locality in which an institution ofhigher education or related board is located. Such adoption and revision issubject to approval by the director of financial management in accordance withchapter 43.88 RCW;

(k) Increment increases within the series of steps for each pay grade basedon length of service for all employees whose standards of performance are suchas to permit them to retain job status in the classified service. ((For the twelvemonths following)) From February 18, 2009, through June 30, 2011, a salary or


[ 5 ]

wage increase shall not be granted to any exempt position under this chapter,except that a salary or wage increase may be granted to employees pursuant tocollective bargaining agreements negotiated under chapters 28B.52, 41.56,47.64, or 41.76 RCW, or negotiated by the nonprofit corporation formed underchapter 67.40 RCW, and except that increases may be granted for positions forwhich the employer has demonstrated difficulty retaining qualified employees ifthe following conditions are met:

(i) The salary increase can be paid within existing resources; and(ii) The salary increase will not adversely impact the provision of client

services;Any agency granting a salary increase from the effective date of this section

through June 30, 2011, to a position exempt under this chapter shall submit areport to the fiscal committees of the legislature no later than July 31, 2011,detailing the positions for which salary increases were granted, the size of theincreases, and the reasons for giving the increases.

(l) Optional lump sum relocation compensation approved by the agencydirector, whenever it is reasonably necessary that a person make a domiciliarymove in accepting a transfer or other employment with the state. An agencymust provide lump sum compensation within existing resources. If the personreceiving the relocation payment terminates or causes termination with the state,for reasons other than layoff, disability separation, or other good cause asdetermined by an agency director, within one year of the date of theemployment, the state is entitled to reimbursement of the lump sumcompensation from the person;

(m) Providing for veteran's preference as required by existing statutes, withrecognition of preference in regard to layoffs and subsequent reemployment forveterans and their surviving spouses by giving such eligible veterans and theirsurviving spouses additional credit in computing their seniority by adding totheir unbroken state service, as defined by the director, the veteran's service inthe 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 anybranch of the armed forces of the United States or who has less than one year'sservice and is discharged with a disability incurred in the line of duty or isdischarged at the convenience of the government and who, upon termination ofsuch service, has received an honorable discharge, a discharge for physicalreasons with an honorable record, or a release from active military service withevidence of service other than that for which an undesirable, bad conduct, ordishonorable discharge shall be given. However, the surviving spouse of aveteran is entitled to the benefits of this section regardless of the veteran's lengthof active military service. For the purposes of this section, "veteran" does notinclude any person who has voluntarily retired with twenty or more years ofactive military service and whose military retirement pay is in excess of fivehundred dollars per month.

(2) Rules adopted under this section by the director shall provide for localadministration and management by the institutions of higher education andrelated boards, subject to periodic audit and review by the director.

(3) Rules adopted by the director under this section may be superseded bythe provisions of a collective bargaining agreement negotiated under RCW


[ 6 ]

41.80.001 and 41.80.010 through 41.80.130. The supersession of such rulesshall only affect employees in the respective collective bargaining units.

(4)(a) The director shall require that each state agency report annually thefollowing data:

(i) The number of classified, Washington management service, and exemptemployees in the agency and the change compared to the previous report;

(ii) The number of bonuses and performance-based incentives awarded toagency staff and the base wages of such employees; and

(iii) The cost of each bonus or incentive awarded.(b) A report that compiles the data in (a) of this subsection for all agencies

will be provided annually to the governor and the appropriate committees of thelegislature and must be posted for the public on the department of personnel'sagency web site.

Sec. 3. RCW 41.06.500 and 2009 c 5 s 3 are each amended to read asfollows:

(1) Except as provided in RCW 41.06.070, notwithstanding any otherprovisions of this chapter, the director is authorized to adopt, after consultationwith state agencies and employee organizations, rules for managers as defined inRCW 41.06.022. These rules shall not apply to managers employed byinstitutions of higher education or related boards or whose positions are exempt.The rules shall govern recruitment, appointment, classification and allocation ofpositions, examination, training and career development, hours of work,probation, certification, compensation, transfer, affirmative action, promotion,layoff, reemployment, performance appraisals, discipline, and any and all otherpersonnel practices for managers. These rules shall be separate from rulesadopted for other employees, and to the extent that the rules adopted under thissection apply only to managers shall take precedence over rules adopted forother employees, and are not subject to review by the board.

(2) In establishing rules for managers, the director shall adhere to thefollowing goals:

(a) Development of a simplified classification system that facilitatesmovement of managers between agencies and promotes upward mobility;

(b) Creation of a compensation system that provides flexibility in settingand changing salaries, and shall require review and approval by the director inthe case of any salary changes greater than five percent proposed for any groupof employees;

(c) Establishment of a performance appraisal system that emphasizesindividual accountability for program results and efficient management ofresources; effective planning, organization, and communication skills; valuingand managing workplace diversity; development of leadership and interpersonalabilities; and employee development;

(d) Strengthening management training and career development programsthat build critical management knowledge, skills, and abilities; focusing onmanaging and valuing workplace diversity; empowering employees by enablingthem to share in workplace decision making and to be innovative, willing to takerisks, and able to accept and deal with change; promoting a workplace where theoverall focus is on the recipient of the government services and how theseservices can be improved; and enhancing mobility and career advancementopportunities;


[ 7 ]

(e) Permitting flexible recruitment and hiring procedures that enableagencies to compete effectively with other employers, both public and private,for managers with appropriate skills and training; allowing consideration of allqualified candidates for positions as managers; and achieving affirmative actiongoals and diversity in the workplace;

(f) Providing that managers may only be reduced, dismissed, suspended, ordemoted for cause; and

(g) Facilitating decentralized and regional administration.(3) ((For the twelve months following)) From February 18, 2009, through

June 30, 2011, a salary or wage increase shall not be granted to any positionunder this section, except that increases may be granted for positions for whichthe employer has demonstrated difficulty retaining qualified employees if thefollowing conditions are met:


services.Any agency granting a salary increase from the effective date of this section

through June 30, 2011, to a position under this section shall submit a report tothe fiscal committees of the legislature no later than July 31, 2011, detailing thepositions for which salary increases were granted, the size of the increases, andthe reasons for giving the increases.

Sec. 4. RCW 43.03.030 and 2009 c 549 s 5007 are each amended to readas follows:

(1) Wherever the compensation of any appointive state officer or employeeis fixed by statute, it may be hereafter increased or decreased in the mannerprovided by law for the fixing of compensation of other appointive state officersor employees; but this subsection shall not apply to the heads of statedepartments.

(2) Wherever the compensation of any state officer appointed by thegovernor, or of any employee in any office or department under the control ofany such officer, is fixed by statute, such compensation may hereafter, from timeto time, be changed by the governor, and he or she shall have power to fix suchcompensation at any amount not to exceed the amount fixed by statute.

(3) ((For the twelve months following)) From February 18, 2009, throughJune 30, 2011, a salary or wage increase shall not be granted to any positionunder this section, except that increases may be granted for positions for whichthe employer has demonstrated difficulty retaining qualified employees if thefollowing conditions are met:



through June 30, 2011, to a position exempt under this section shall submit areport to the fiscal committees of the legislature no later than July 31, 2011,detailing the positions for which salary increases were granted, the size of theincreases, and the reasons for giving the increases.


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The directors of the several departments and members of the several boardsand commissions, whose salaries are fixed by the governor and the chiefexecutive officers of the agencies named in RCW 43.03.028(2) as now orhereafter amended shall each severally receive such salaries, payable in monthlyinstallments, as shall be fixed by the governor or the appropriate salary fixingauthority, in an amount not to exceed the recommendations of the committee onagency officials' salaries. ((For the twelve months following)) From February18, 2009, through June 30, 2011, a salary or wage increase shall not be grantedto any position under this section, except that increases may be granted forpositions for which the employer has demonstrated difficulty retaining qualifiedemployees if the following conditions are met:

(1) The salary increase can be paid within existing resources; and(2) The salary increase will not adversely impact the provision client


through June 30, 2011, to a position under this section shall submit a report tothe fiscal committees of the legislature no later than July 31, 2011, detailing thepositions for which salary increases were granted, the size of the increases, andthe reasons for giving the increases.


Other than suggestion awards and incentive pay unit awards, agencies shallhave the authority to recognize employees, either individually or as a class, foraccomplishments including outstanding achievements, safety performance,longevity, outstanding public service, or service as employee suggestionevaluators and implementors. Recognition awards may not exceed two hundreddollars in value per award. Such awards may include, but not be limited to, cashor such items as pen and desk sets, plaques, pins, framed certificates, clocks, andcalculators. Award costs shall be paid by the agency giving the award. From theeffective date of this section through June 30, 2011, recognition awards may notbe given in the form of cash or cash equivalents such as gift certificates or giftcards.

NEW SECTION. Sec. 7. This act does not apply to a salary or wageincrease that may be granted to employees whose salary or wage is paidpredominately through agriculture commodity assessments under Title 15 RCW.

NEW SECTION. Sec. 8. (1) Notwithstanding sections 1 through 5 of thisact, institutions of higher education may grant a wage or salary increase foradditional academic responsibilities during the summer quarter if the followingconditions are met:


services.(2) Any institution granting a wage or salary increase under this section

from the effective date of this section through June 30, 2011, shall submit areport to the fiscal committees of the legislature no later than July 31, 2011,


[ 9 ]

detailing the positions for which salary increases were granted, the size of theincreases, and the reasons for giving the increases.

NEW SECTION. Sec. 9. This act is necessary for the immediatepreservation of the public peace, health, or safety, or support of the stategovernment and its existing public institutions, and takes effect immediately.

Passed by the Senate February 9, 2010.Passed by the House January 28, 2010.Approved by the Governor February 15, 2010.Filed in Office of Secretary of State February 16, 2010.

1 ____________________________________

CHAPTER 2[Substitute House Bill 2998]

STATE EMPLOYEESMONETARY AWARDS AND SALARY INCREASESSUSPENSION2 AN ACT Relating to suspension of certain monetary awards and salary increases; amendingRCW 41.06.500 and 43.180.080; reenacting and amending RCW 41.06.070 and 41.06.133; adding anew section to chapter 41.06 RCW; creating a new section; and declaring an emergency.

Be it enacted by the Legislature of the State of Washington:NEW SECTION. Sec. 1. The legislature finds that the current economic

crisis is requiring sacrifices by citizens and businesses all across the state. Thelegislature acknowledges the sacrifices also being made by the many stateemployees who have volunteered for unpaid furlough days including those, suchas our ferry workers, who volunteered for pay freezes. The recession requires usto continue to find every possible cost savings while striving to continue todeliver key services to our citizens. Therefore, the legislature finds it necessaryto immediately suspend recognition awards given to state employees. Until theeconomic climate permits the resumption of appropriate cash awards, thelegislature encourages supervisors throughout state agencies to look fornonmonetary ways to acknowledge outstanding contributions to Washington'scitizens by our state's civil servants.


(1) The provisions of this chapter do not apply to:(a) The members of the legislature or to any employee of, or position in, the

legislative branch of the state government including members, officers, andemployees of the legislative council, joint legislative audit and reviewcommittee, statute law committee, and any interim committee of the legislature;

(b) The justices of the supreme court, judges of the court of appeals, judgesof the superior courts or of the inferior courts, or to any employee of, or positionin the judicial branch of state government;

(c) Officers, academic personnel, and employees of technical colleges;(d) The officers of the Washington state patrol;(e) Elective officers of the state;(f) The chief executive officer of each agency;(g) In the departments of employment security and social and health

services, the director and the director's confidential secretary; in all otherdepartments, the executive head of which is an individual appointed by the


[ 10 ]

governor, the director, his or her confidential secretary, and his or her statutoryassistant directors;

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

(i) All members of such boards, commissions, or committees;(ii) If the members of the board, commission, or committee serve on a part-

time basis and there is a statutory executive officer: The secretary of the board,commission, or committee; the chief executive officer of the board, commission,or committee; and the confidential secretary of the chief executive officer of theboard, commission, or committee;

(iii) If the members of the board, commission, or committee serve on a full-time basis: The chief executive officer or administrative officer as designated bythe board, commission, or committee; and a confidential secretary to the chair ofthe board, commission, or committee;

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

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

(j) Assistant attorneys general;(k) Commissioned and enlisted personnel in the military service of the state;(l) Inmate, student, part-time, or temporary employees, and part-time

professional consultants, as defined by the Washington personnel resourcesboard;

(m) The public printer or to any employees of or positions in the stateprinting plant;

(n) Officers and employees of the Washington state fruit commission;(o) Officers and employees of the Washington apple commission;(p) Officers and employees of the Washington state dairy products

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

commission;(r) Officers and employees of the Washington state beef commission;(s) Officers and employees of the Washington grain commission;(t) Officers and employees of any commission formed under chapter 15.66

RCW;(u) Officers and employees of agricultural commissions formed under

chapter 15.65 RCW;(v) Officers and employees of the nonprofit corporation formed under

chapter 67.40 RCW;(w) Executive assistants for personnel administration and labor relations in

all state agencies employing such executive assistants including but not limitedto all departments, offices, commissions, committees, boards, or other bodiessubject to the provisions of this chapter and this subsection shall prevail over anyprovision of law inconsistent herewith unless specific exception is made in suchlaw;


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(x) In each agency with fifty or more employees: Deputy agency heads,assistant directors or division directors, and not more than three principal policyassistants who report directly to the agency head or deputy agency heads;

(y) All employees of the marine employees' commission;(z) Staff employed by the department of ((community, trade, and economic

development)) commerce to administer energy policy functions and manageenergy site evaluation council activities under RCW 43.21F.045(2)(m);

(aa) Staff employed by Washington State University to administer energyeducation, applied research, and technology transfer programs under RCW43.21F.045 as provided in RCW 28B.30.900(5).

(2) The following classifications, positions, and employees of institutions ofhigher education and related boards are hereby exempted from coverage of thischapter:

(a) Members of the governing board of each institution of higher educationand related boards, all presidents, vice presidents, and their confidentialsecretaries, administrative, and personal assistants; deans, directors, and chairs;academic personnel; and executive heads of major administrative or academicdivisions employed by institutions of higher education; principal assistants toexecutive heads of major administrative or academic divisions; other managerialor professional employees in an institution or related board having substantialresponsibility for directing or controlling program operations and accountablefor allocation of resources and program results, or for the formulation ofinstitutional policy, or for carrying out personnel administration or laborrelations functions, legislative relations, public information, development, seniorcomputer systems and network programming, or internal audits andinvestigations; and any employee of a community college district whose place ofwork is one which is physically located outside the state of Washington and whois employed pursuant to RCW 28B.50.092 and assigned to an educationalprogram operating outside of the state of Washington;

(b) The governing board of each institution, and related boards, may alsoexempt from this chapter classifications involving research activities, counselingof students, extension or continuing education activities, graphic arts orpublications activities requiring prescribed academic preparation or specialtraining as determined by the board: PROVIDED, That no nonacademicemployee engaged in office, clerical, maintenance, or food and trade servicesmay be exempted by the board under this provision;

(c) Printing craft employees in the department of printing at the Universityof Washington.

(3) In addition to the exemptions specifically provided by this chapter, thedirector of personnel may provide for further exemptions pursuant to thefollowing procedures. The governor or other appropriate elected official maysubmit requests for exemption to the director of personnel stating the reasons forrequesting such exemptions. The director of personnel shall hold a publichearing, after proper notice, on requests submitted pursuant to this subsection. Ifthe director determines that the position for which exemption is requested is oneinvolving substantial responsibility for the formulation of basic agency orexecutive policy or one involving directing and controlling program operationsof an agency or a major administrative division thereof, the director of personnelshall grant the request and such determination shall be final as to any decision


[ 12 ]

made before July 1, 1993. The total number of additional exemptions permittedunder this subsection shall not exceed one percent of the number of employeesin the classified service not including employees of institutions of highereducation and related boards for those agencies not directly under the authorityof any elected public official other than the governor, and shall not exceed a totalof twenty-five for all agencies under the authority of elected public officialsother than the governor.

The salary and fringe benefits of all positions presently or hereafterexempted except for the chief executive officer of each agency, full-timemembers of boards and commissions, administrative assistants and confidentialsecretaries in the immediate office of an elected state official, and the personnellisted in subsections (1)(j) through (v) and (y) and (2) of this section, shall bedetermined by the director of personnel. Changes to the classification planaffecting exempt salaries must meet the same provisions for classified salaryincreases resulting from adjustments to the classification plan as outlined inRCW 41.06.152.

For the twelve months following February 18, 2009, a salary or wageincrease shall not be granted to any position exempt from classification underthis chapter.

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

Any classified employee having civil service status in a classified positionwho accepts an appointment in an exempt position shall have the right ofreversion to the highest class of position previously held, or to a position ofsimilar nature and salary.

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

From the effective date of this section until June 30, 2011, no monetaryperformance-based awards or incentives may be granted by the director oremployers to employees covered by rules adopted under this section. Thissubsection does not prohibit the payment of awards provided for in chapter41.60 RCW.


(1) The director shall adopt rules, consistent with the purposes andprovisions of this chapter and with the best standards of personneladministration, regarding the basis and procedures to be followed for:

(a) The reduction, dismissal, suspension, or demotion of an employee;(b) Training and career development;(c) Probationary periods of six to twelve months and rejections of

probationary employees, depending on the job requirements of the class, exceptthat entry level state park rangers shall serve a probationary period of twelvemonths;

(d) Transfers;


[ 13 ]

(e) Promotional preferences;(f) Sick leaves and vacations;(g) Hours of work;(h) Layoffs when necessary and subsequent reemployment, except for the

financial basis for layoffs;(i) The number of names to be certified for vacancies;(j) Adoption and revision of a state salary schedule to reflect the prevailing

rates in Washington state private industries and other governmental units. Therates in the salary schedules or plans shall be increased if necessary to attaincomparable worth under an implementation plan under RCW 41.06.155 and, forinstitutions of higher education and related boards, shall be competitive forpositions of a similar nature in the state or the locality in which an institution ofhigher education or related board is located. Such adoption and revision issubject to approval by the director of financial management in accordance withchapter 43.88 RCW;

(k) Increment increases within the series of steps for each pay grade basedon length of service for all employees whose standards of performance are suchas to permit them to retain job status in the classified service. For the twelvemonths following February 18, 2009, a salary or wage increase shall not begranted to any exempt position under this chapter;

(l) Optional lump sum relocation compensation approved by the agencydirector, whenever it is reasonably necessary that a person make a domiciliarymove in accepting a transfer or other employment with the state. An agencymust provide lump sum compensation within existing resources. If the personreceiving the relocation payment terminates or causes termination with the state,for reasons other than layoff, disability separation, or other good cause asdetermined by an agency director, within one year of the date of theemployment, the state is entitled to reimbursement of the lump sumcompensation from the person;

(m) Providing for veteran's preference as required by existing statutes, withrecognition of preference in regard to layoffs and subsequent reemployment forveterans and their surviving spouses by giving such eligible veterans and theirsurviving spouses additional credit in computing their seniority by adding totheir unbroken state service, as defined by the director, the veteran's service inthe 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 anybranch of the armed forces of the United States or who has less than one year'sservice and is discharged with a disability incurred in the line of duty or isdischarged at the convenience of the government and who, upon termination ofsuch service, has received an honorable discharge, a discharge for physicalreasons with an honorable record, or a release from active military service withevidence of service other than that for which an undesirable, bad conduct, ordishonorable discharge shall be given. However, the surviving spouse of aveteran is entitled to the benefits of this section regardless of the veteran's lengthof active military service. For the purposes of this section, "veteran" does notinclude any person who has voluntarily retired with twenty or more years ofactive military service and whose military retirement pay is in excess of fivehundred dollars per month.


[ 14 ]

(2) Rules adopted under this section by the director shall provide for localadministration and management by the institutions of higher education andrelated boards, subject to periodic audit and review by the director.

(3) Rules adopted by the director under this section may be superseded bythe provisions of a collective bargaining agreement negotiated under RCW41.80.001 and 41.80.010 through 41.80.130. The supersession of such rulesshall only affect employees in the respective collective bargaining units.

(4)(a) The director shall require that each state agency report annually thefollowing data:

(i) The number of classified, Washington management service, and exemptemployees in the agency and the change compared to the previous report;

(ii) The number of bonuses and performance-based incentives awarded toagency staff and the base wages of such employees; and

(iii) The cost of each bonus or incentive awarded.(b) A report that compiles the data in (a) of this subsection for all agencies

will be provided annually to the governor and the appropriate committees of thelegislature and must be posted for the public on the department of personnel'sagency web site.

(5) From the effective date of this section until June 30, 2011, no monetaryperformance-based awards or incentives may be granted by the director oremployers to employees covered by rules adopted under this section. Thissubsection does not prohibit the payment of awards provided for in chapter41.60 RCW.


(1) Except as provided in RCW 41.06.070, notwithstanding any otherprovisions of this chapter, the director is authorized to adopt, after consultationwith state agencies and employee organizations, rules for managers as defined inRCW 41.06.022. These rules shall not apply to managers employed byinstitutions of higher education or related boards or whose positions are exempt.The rules shall govern recruitment, appointment, classification and allocation ofpositions, examination, training and career development, hours of work,probation, certification, compensation, transfer, affirmative action, promotion,layoff, reemployment, performance appraisals, discipline, and any and all otherpersonnel practices for managers. These rules shall be separate from rulesadopted for other employees, and to the extent that the rules adopted under thissection apply only to managers shall take precedence over rules adopted forother employees, and are not subject to review by the board.

(2) In establishing rules for managers, the director shall adhere to thefollowing goals:

(a) Development of a simplified classification system that facilitatesmovement of managers between agencies and promotes upward mobility;

(b) Creation of a compensation system that provides flexibility in settingand changing salaries, and shall require review and approval by the director inthe case of any salary changes greater than five percent proposed for any groupof employees;

(c) Establishment of a performance appraisal system that emphasizesindividual accountability for program results and efficient management ofresources; effective planning, organization, and communication skills; valuing


[ 15 ]

and managing workplace diversity; development of leadership and interpersonalabilities; and employee development;

(d) Strengthening management training and career development programsthat build critical management knowledge, skills, and abilities; focusing onmanaging and valuing workplace diversity; empowering employees by enablingthem to share in workplace decision making and to be innovative, willing to takerisks, and able to accept and deal with change; promoting a workplace where theoverall focus is on the recipient of the government services and how theseservices can be improved; and enhancing mobility and career advancementopportunities;

(e) Permitting flexible recruitment and hiring procedures that enableagencies to compete effectively with other employers, both public and private,for managers with appropriate skills and training; allowing consideration of allqualified candidates for positions as managers; and achieving affirmative actiongoals and diversity in the workplace;

(f) Providing that managers may only be reduced, dismissed, suspended, ordemoted for cause; and

(g) Facilitating decentralized and regional administration.(3) For the twelve months following February 18, 2009, a salary or wage

increase shall not be granted to any position under this section.(4) From the effective date of this section until June 30, 2011, no monetary

performance-based awards or growth and development progression adjustmentsmay be granted by the director or employers to the Washington managementservice employees covered by the rules adopted under this section. Thissubsection does not prohibit the payment of awards provided for in chapter41.60 RCW.


In addition to other powers and duties specified in this chapter, thecommission may:

(1) Establish in resolutions relating to any issuance of bonds, or in anyfinancing documents relating to such issuance, such standards and requirementsapplicable to the purchase of mortgages and mortgage loans or the making ofloans to mortgage lenders as the commission deems necessary or desirable,including but not limited to: (a) The time within which mortgage lenders mustmake commitments and disbursements for mortgages or mortgage loans; (b) thelocation and other characteristics of single-family housing or multifamilyhousing to be financed by mortgages and mortgage loans; (c) the terms andconditions of mortgages and mortgage loans to be acquired; (d) the amounts andtypes of insurance coverage required on mortgages, mortgage loans, and bonds;(e) the representations and warranties of mortgage lenders confirmingcompliance with such standards and requirements; (f) restrictions as to interestrate and other terms of mortgages or mortgage loans or the return realizedtherefrom by mortgage lenders; (g) the type and amount of collateral security tobe provided to assure repayment of any loans from the commission and to assurerepayment of bonds; and (h) any other matters related to the purchase ofmortgages or mortgage loans or the making of loans to lending institutions asshall be deemed relevant by the commission;

(2) Sue and be sued in its own name;


[ 16 ]

(3) Make and execute contracts and all other instruments necessary orconvenient for the exercise of its purposes or powers, including but not limitedto contracts or agreements for the origination, servicing, and administration ofmortgages or mortgage loans, and the borrowing of money;

(4) Procure such insurance, including but not limited to insurance: (a)Against any loss in connection with its property and other assets, including butnot limited to mortgages or mortgage loans, in such amounts and from suchinsurers as the commission deems desirable, and (b) to indemnify members ofthe commission for acts done in the course of their duties;

(5) Provide for the investment of any funds, including funds held in reserve,not required for immediate disbursement, and provide for the selection ofinvestments;

(6) Fix, revise, and collect fees and charges in connection with theinvestigation and financing of housing or in connection with assignments,contracts, purchases of mortgages or mortgage loans, or any other actionspermitted under this chapter or by the commission; and receive grants andcontributions;

(7) Make such expenditures as are appropriate for paying the administrativecosts of the commission and for carrying out the provisions of this chapter.These expenditures may be made only from funds consisting of thecommission's receipts from fees and charges, grants and contributions, theproceeds of bonds issued by the commission, and other revenues; theseexpenditures shall not be made from funds of the state of Washington;

(8) Establish such special funds, and controls on deposits to anddisbursements from them, as it finds convenient for the implementation of thischapter;

(9) Conduct such investigations and feasibility studies as it deemsappropriate;

(10) Proceed with foreclosure actions or accept deeds in lieu of foreclosuretogether with the assignments of leases and rentals incidental thereto. Anyproperties acquired by the commission through such actions shall be sold assoon as practicable through persons licensed under chapter 18.85 RCW or atpublic auction, or by transfer to a public agency. In preparation for thedisposition of the properties, the commission may own, lease, clear, construct,reconstruct, rehabilitate, repair, maintain, manage, operate, assign, or encumberthe properties;

(11) Take assignments of leases and rentals;(12) Subject to any provisions of the commission's contracts with the

holders of obligations of the commission, consent to any modification withrespect to rate of interest, time, and payment of any installment of principal orinterest or any other term of any contract, mortgage, mortgage loan, mortgageloan commitment, contract, or agreement of any kind;

(13) Subject to provisions of the commission's contracts with the holders ofbonds, permit the reduction of rental or carrying charges to persons unable topay the regular rent or schedule of charges if, by reason of other income of thecommission or by reason of payment by any department, agency, orinstrumentality of the United States or of this state, the reduction can be madewithout jeopardizing the economic stability of the housing being financed;


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(14) Sell, at public or private sale, with or without public bidding, anymortgage, mortgage loan, or other instrument or asset held by the commission;

(15) Employ, contract with, or engage engineers, architects, attorneys,financial advisors, bond underwriters, mortgage lenders, mortgageadministrators, housing construction or financing experts, other technical orprofessional assistants, and such other personnel as are necessary. Thecommission may delegate to the appropriate persons the power to execute legalinstruments on its behalf;

(16) Receive contributions or grants from any source unless otherwiseprohibited;

(17) Impose covenants running with the land in order to satisfy and enforcethe requirements of applicable state and federal law and commission policy withrespect to housing or other facilities financed by the commission or assisted byfederal, state, or local programs administered by the commission, by executingand recording regulatory agreements or other covenants between thecommission and the person or entity to be bound. These regulatory agreementsand covenants shall run with the land and be enforceable by the commission orits successors or assigns against the person or entity making the regulatoryagreement or covenants or its successors or assigns, even though there may beno privity of estate or privity of contract between the commission or itssuccessors or assigns and the person or entity against whom enforcement issought. The term of any such covenant shall be set forth in the recordedagreement containing the covenant. This subsection shall apply to regulatoryagreements and covenants previously entered into by the commission as well asregulatory agreements and covenants entered into by the commission on or afterJuly 27, 1997;

(18) Delegate any of its powers and duties if consistent with the purposes ofthis chapter;

(19) Exercise any other power reasonably required to implement thepurposes of this chapter.

From the effective date of this section through June 30, 2011, neither thecommission nor its designees may grant any monetary performance-basedawards or incentives to any employee. This subsection does not prohibit thepayment of awards provided for in chapter 41.60 RCW.

NEW SECTION. Sec. 6. A new section is added to chapter 41.06 RCW toread as follows:

From the effective date of this section until June 30, 2011, no monetaryperformance-based awards or incentives may be granted by the director oremployers to employees covered by rules adopted under this section. Thissection does not prohibit the payment of awards provided for in chapter 41.60RCW.

NEW SECTION. Sec. 7. This act is necessary for the immediatepreservation of the public peace, health, or safety, or support of the stategovernment and its existing public institutions, and takes effect immediately.

Passed by the House February 10, 2010.Passed by the Senate February 9, 2010.Approved by the Governor February 15, 2010.Filed in Office of Secretary of State February 16, 2010.

2 ____________________________________


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CHAPTER 3[Engrossed Substitute House Bill 2921]

2009-11 OPERATING BUDGET3 AN ACT Relating to fiscal matters; amending 2009 c 564 ss 120, 125, 126, 127, 128, 129,130, 137, 139, 143, 151, 153, 154, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 215, 219,222, 223, 225, 302, 303, 306, 307, 309, 311, 401, 402, and 513 (uncodified); adding new sections to2009 c 564 (uncodified); and declaring an emergency.

Be it enacted by the Legislature of the State of Washington:

PART IGENERAL GOVERNMENT

Sec. 101. 2009 c 564 s 120 (uncodified) is amended to read as follows:FOR THE SECRETARY OF STATEGeneral FundState Appropriation (FY 2010) . . . . . . . . . . . . . . (($21,370,000))

$20,649,000General FundState Appropriation (FY 2011) . . . . . . . . . . . . . . (($18,444,000))

$17,733,000General FundFederal Appropriation . . . . . . . . . . . . . . . . . . . . . . . . $8,121,000Archives and Records Management AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,863,000Department of Personnel Service AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $760,000Local Government Archives AccountState Appropriation. . . . . . $11,777,000Election AccountFederal Appropriation . . . . . . . . . . . . . . . . . . . . $29,715,000

TOTAL APPROPRIATION . . . . . . . . . . . . . . . . . . . . . .(($99,050,000))$97,618,000

The appropriations in this section are subject to the following conditionsand limitations:

(1) $4,101,000 of the general fundstate appropriation for fiscal year 2010is provided solely to reimburse counties for the state's share of primary andgeneral election costs and the costs of conducting mandatory recounts on statemeasures. Counties shall be reimbursed only for those odd-year election coststhat the secretary of state validates as eligible for reimbursement.

(2)(a) $1,897,000 of the general fundstate appropriation for fiscal year2010 and $2,076,000 of the general fundstate appropriation for fiscal year2011 are provided solely for contracting with a nonprofit organization to producegavel-to-gavel television coverage of state government deliberations and otherevents of statewide significance during the 2009-2011 biennium. The fundinglevel for each year of the contract shall be based on the amount provided in thissubsection. The nonprofit organization shall be required to raise contributions orcommitments to make contributions, in cash or in kind, in an amount equal toforty percent of the state contribution. The office of the secretary of state maymake full or partial payment once all criteria in this subsection have beensatisfactorily documented.

(b) The legislature finds that the commitment of on-going funding isnecessary to ensure continuous, autonomous, and independent coverage of


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public affairs. For that purpose, the secretary of state shall enter into a contractwith the nonprofit organization to provide public affairs coverage.

(c) The nonprofit organization shall prepare an annual independent audit, anannual financial statement, and an annual report, including benchmarks thatmeasure the success of the nonprofit organization in meeting the intent of theprogram.

(d) No portion of any amounts disbursed pursuant to this subsection may beused, directly or indirectly, for any of the following purposes:

(i) Attempting to influence the passage or defeat of any legislation by thelegislature of the state of Washington, by any county, city, town, or otherpolitical subdivision of the state of Washington, or by the congress, or theadoption or rejection of any rule, standard, rate, or other legislative enactment ofany state agency;

(ii) Making contributions reportable under chapter 42.17 RCW; or(iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or

entertainment to a public officer or employee.(3) The appropriations in this section are based upon savings assumed from

the implementation of Senate Bill No. 6122 (election costs).(4) The secretary of state shall not reduce the services provided by the

talking book and Braille library below the service level provided in fiscal year2008.

(5) In implementing budget reductions, the office of the secretary of statemust make its first priority to maintain funding for the elections division.

Sec. 102. 2009 c 564 s 125 (uncodified) is amended to read as follows:FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTEDOFFICIALSGeneral FundState Appropriation (FY 2010) . . . . . . . . . . . . . . . . (($171,000))

$168,000General FundState Appropriation (FY 2011) . . . . . . . . . . . . . . . . (($212,000))

$209,000TOTAL APPROPRIATION . . . . . . . . . . . . . . . . . . . . . . . . (($383,000))

$377,000 Sec. 103. 2009 c 564 s 126 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERALGeneral FundState Appropriation (FY 2010) . . . . . . . . . . . . . . . (($5,325,000))

$5,285,000General FundState Appropriation (FY 2011) . . . . . . . . . . . . . . . (($5,654,000))

$5,614,000General FundFederal Appropriation . . . . . . . . . . . . . . . . . . . . . . . . $4,026,000New Motor Vehicle Arbitration AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,346,000Legal Services Revolving AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $221,515,000Tobacco Prevention and Control AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,000TOTAL APPROPRIATION . . . . . . . . . . . . . . . . . . . . . (($238,136,000))

$238,056,000


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(1) The attorney general shall report each fiscal year on actual legal servicesexpenditures and actual attorney staffing levels for each agency receiving legalservices. The report shall be submitted to the office of financial managementand the fiscal committees of the senate and house of representatives no later thanninety days after the end of each fiscal year. As part of its by agency report tothe legislative fiscal committees and the office of financial management, theoffice of the attorney general shall include information detailing the agency'sexpenditures for its agency-wide overhead and a breakdown by division ofdivision administration expenses.

(2) Prior to entering into any negotiated settlement of a claim against thestate that exceeds five million dollars, the attorney general shall notify thedirector of financial management and the chairs of the senate committee on waysand means and the house of representatives committee on ways and means.

(3) The office of the attorney general is authorized to expend $2,100,000from the Zyprexa and other cy pres awards towards consumer protection costs inaccordance with uses authorized in the court orders.

(4) The attorney general shall annually report to the fiscal committees of thelegislature all new cy pres awards and settlements and all new accounts,disclosing their intended uses, balances, the nature of the claim or account,proposals, and intended timeframes for the expenditure of each amount. Thereport shall be distributed electronically and posted on the attorney general's website. The report shall not be printed on paper or distributed physically.

Sec. 104. 2009 c 564 s 127 (uncodified) is amended to read as follows:FOR THE CASELOAD FORECAST COUNCILGeneral FundState Appropriation (FY 2010) . . . . . . . . . . . . . . . . (($779,000))

$766,000General FundState Appropriation (FY 2011) . . . . . . . . . . . . . . . . (($772,000))

$759,000TOTAL APPROPRIATION . . . . . . . . . . . . . . . . . . . . . . .(($1,551,000))

$1,525,000

The appropriations in this section are subject to the following conditionsand limitations: $13,000 of the general fundstate appropriation for fiscal year2010 and $7,000 of the general fundstate appropriation for fiscal year 2011 arefor the implementation of Second Substitute House Bill No. 2106 (improvingchild welfare outcomes through the phased implementation of strategic andproven reforms). If the bill is not enacted by June 30, 2009, the amountsprovided in this subsection shall lapse.

Sec. 105. 2009 c 564 s 128 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF ((COMMUNITY, TRADE, ANDECONOMIC DEVELOPMENT)) COMMERCEGeneral FundState Appropriation (FY 2010) . . . . . . . . . . . . . . (($51,240,000))

$51,015,000General FundState Appropriation (FY 2011) . . . . . . . . . . . . . . (($51,938,000))

$51,813,000General FundFederal Appropriation . . . . . . . . . . . . . . . . . . . . . . $384,540,000


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General FundPrivate/Local Appropriation . . . . . . . . . . . . . . . . . . $16,266,000Public Works Assistance AccountState Appropriation. . . . . . . . . . $2,990,000Tourism Development and Promotion AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,003,000Drinking Water Assistance Administrative

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $439,000Lead Paint AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . $18,000Building Code Council AccountState Appropriation . . . . . . . . . . . $1,286,000Home Security Fund AccountState Appropriation . . . . . . . . . . . . $23,498,000Affordable Housing for All AccountState Appropriation. . . . . . . $11,900,000Washington Auto Theft Prevention Authority

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000Independent Youth Housing AccountState Appropriation . . . . . . . . . . $80,000Community Preservation and Development Authority

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $350,000Financial Fraud and Identity Theft Crimes Investigation

and Prosecution AccountState Appropriation . . . . . . . . . . . . . $1,166,000Low-Income Weatherization Assistance AccountState

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,382,000Manufacturing Innovation and Modernization

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $246,000Community and Economic Development Fee

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . $1,833,000Washington Housing Trust AccountState Appropriation . . . . . . . $15,372,000Public Facility Construction Loan Revolving

AccountState Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $755,000TOTAL APPROPRIATION . . . . . . . . . . . . . . . . . . . . . (($573,602,000))

$573,252,000


(1) $2,520,000 of the general fundstate appropriation for fiscal year 2010and $2,521,000 of the general fundstate appropriation for fiscal year 2011 areprovided solely for a contract with the Washington technology center for workessential to the mission of the Washington technology center and conducted inpartnership with universities.

(2) Repayments of outstanding loans granted under RCW 43.63A.600, themortgage and rental assistance program, shall be remitted to the department,including any current revolving account balances. The department shall collectpayments on outstanding loans, and deposit them into the state general fund.Repayments of funds owed under the program shall be remitted to thedepartment according to the terms included in the original loan agreements.

(3) $100,000 of the general fundstate appropriation for fiscal year 2010and $100,000 of the general fundstate appropriation for fiscal year 2011 areprovided solely to implement section 2(7) of Engrossed Substitute House BillNo. 1959 (land use and transportation planning for marine container ports).

(4) $102,000 of the building code council accountstate appropriation isprovided solely for the implementation of sections 3 and 7 of Engrossed SecondSubstitute Senate Bill No. 5854 (built environment pollution). If sections 3 and


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7 of the bill are not enacted by June 30, 2009, the amounts provided in thissubsection shall lapse.

(5)(a) $10,500,000 of the general fundfederal appropriation is providedfor training and technical assistance associated with low income weatherizationprograms. Subject to federal requirements, the department shall provide: (i) Upto $4,000,000 to the state board for community and technical colleges to provideworkforce training related to weatherization and energy efficiency; (ii) up to$3,000,000 to the Bellingham opportunity council to provide workforce trainingrelated to energy efficiency and weatherization; and (iii) up to $3,500,000 tocommunity-based organizations and to community action agencies consistentwith the provisions of Engrossed Second Substitute House Bill No. 2227(evergreen jobs act). Any funding remaining shall be expended in project91000013, weatherization, in the omnibus capital appropriations act, SubstituteHouse Bill No. 1216 (capital budget).

(b) $6,787,000 of the general fundfederal appropriation is provided solelyfor the state energy program, including not less than $5,000,000 to provide creditenhancements consistent with the provisions of Engrossed Second SubstituteSenate Bill No. 5649 (energy efficiency in buildings).

(c) Of the general fundfederal appropriation the department shall provide:$14,500,000 to the Washington State University for the purpose of makinggrants for pilot projects providing community-wide urban, residential, andcommercial energy efficiency upgrades consistent with the provisions ofEngrossed Second Substitute Senate Bill No. 5649 (energy efficiency inbuildings); $500,000 to Washington State University to conduct farm energyassessments. In contracting with the Washington State University for theprovision of these services, the total administration of Washington StateUniversity a