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EIGHTY-SECOND DAY

__________


AFTERNOON SESSION

__________


House Chamber, Olympia, Friday, April 2, 1993


              The House was called to order at 3:30 p.m. by the Speaker (Representative R. Johnson presiding).


              Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.


MESSAGES FROM THE SENATE


April 1, 1993


Mr. Speaker:


              The Senate has passed:


HOUSE BILL NO. 1216,

HOUSE BILL NO. 1217,

SUBSTITUTE HOUSE BILL NO. 1253,

HOUSE BILL NO. 1255,

HOUSE BILL NO. 1400,

SUBSTITUTE HOUSE BILL NO. 1480,

ENGROSSED HOUSE BILL NO. 1481,

SUBSTITUTE HOUSE BILL NO. 1527,

HOUSE BILL NO. 1643,



and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


April 1, 1993


Mr. Speaker:


              The Senate has passed:


ENGROSSED SUBSTITUTE SENATE BILL NO. 5967,


and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


April 1, 1993


Mr. Speaker:


              The Senate has passed:


SUBSTITUTE SENATE BILL NO. 5968,


and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


              There being no objection, the House advanced to the fourth order of business.


INTRODUCTIONS AND FIRST READING


 

HB 2114              by Representative G. Fisher; by request of Office of Financial Management

 

AN ACT Relating to earnings on the balances of certain treasury accounts; amending RCW 43.84.092 and 43.79A.040; and providing an effective date.

 

Referred to Committee on Revenue.

 

HB 2115              by Representative G. Fisher; by request of Office of Financial Management

 

AN ACT Relating to charitable solicitations; amending RCW 19.09.020, 19.09.100, 19.09.190, 19.09.275, 19.09.340, 9.91.30, 42.17.095, and 42.17.243; adding new sections to chapter 19.09 RCW; repealing RCW 19.09.010, 19.09.065, 19.09.075, 19.09.076, 19.09.78, 19.09.79, 19.09.085, 19.09.095, 19.09.097, 19.09.2271, 19.09.315, and 19.09.355; and prescribing penalties.

 

Referred to Committee on Appropriations.

 

HB 2116              by Representative G. Fisher; by request of Office of Financial Management

 

AN ACT Relating to voter registration tapes for political parties; amending RCW 29.04.150 and 29.04.160; providing an effective date; and declaring an emergency.

 

Referred to Committee on Revenue.

 

HB 2117              by Representatives Leonard and Anderson; by request of Governor Lowry

 

AN ACT Relating to child nutrition programs; adding new sections to chapter 28A.235 RCW; and creating new sections.

 

Referred to Committee on Appropriations.

 

HB 2118              by Representatives Wolfe, Kessler and Karahalios; by request of Office of Financial Management

 

AN ACT Relating to the budgeting, accounting, and reporting system; amending RCW 43.79.280, 43.88.020, 43.88.120, 43.88.122, 43.88.160, and 43.88.265; and reenacting and amending RCW 43.88.030 and 43.88.110.

 

Referred to Committee on Appropriations.

 

HB 2119              by Representatives Dunshee, Lemmon and Wolfe; by request of Office of Financial Management

 

AN ACT Relating to abolition of the state professional athletic commission; amending RCW 67.08.002, 67.08.007, 67.08.010, 67.08.015, 67.08.030, 67.08.040, 67.08.050, 67.08.055, 67.08.060, 67.08.080, 67.08.090, 67.08.100, 67.08.110, 67.08.120, 67.08.130, 67.08.140, and 67.08.170; adding a new section to chapter 67.08 RCW; creating new sections; repealing RCW 67.08.001, 67.08.003, 67.08.005, and 67.08.009; providing an effective date; and declaring an emergency.

 

Referred to Committee on Appropriations.

 

HB 2120              by Representative R. Fisher; by request of Office of Financial Management

 

AN ACT Relating to disposition of motor vehicle excise tax revenue; amending RCW 82.44.110; reenacting and amending RCW 82.44.150; providing an effective date; and declaring an emergency.

 

Referred to Committee on Transportation.

 

HB 2121              by Representative R. Fisher; by request of Office of Financial Management

 

AN ACT Relating to funding for state patrol criminal justice activities; amending RCW 43.08.250; providing an effective date; and declaring an emergency.

 

Referred to Committee on Appropriations.

 

HB 2122              by Representatives Linville, Locke, Peery, Lemmon, Dellwo and Anderson; by request of Office of Financial Management

 

AN ACT Relating to early retirement under the public employees' and teachers' retirement systems; amending RCW 43.01.170 and 28A.400.212; creating new sections; and declaring an emergency.

 

Referred to Committee on Appropriations.

 

HB 2123              by Representatives Jacobsen, Quall and Brumsickle; by request of Office of Financial Management

 

AN ACT Relating to graduate service appointments; and amending RCW 28B.10.660.

 

Referred to Committee on Appropriations.


              On motion of Representative Eide, the bills listed on today's introduction sheet under the fourth order of businesses were referred to the committees so designated.


              There being no objection, the House advanced to the fifth order of business.



REPORTS OF STANDING COMMITTEES


March 31, 1993

SSB 5025            Prime Sponsor, Committee on Natural Resources: Clarifying forest fire fighting duties. Reported by Committee on Natural Resources & Parks


              MAJORITY recommendation: Do pass with the following amendment:


              On page 3, strike lines 4 through 18 and insert:

              (c) Investigate the origin and cause of all forest fires to determine whether either a criminal act or negligence by any person, firm, or corporation caused the starting, spreading, or existence of the fire. In conducting investigations, the department shall work cooperatively, to the extent possible, with utilities, property owners, and other interested parties to identify and preserve evidence. Except as provided otherwise in this subsection, the department in conducting investigations is authorized, without court order, to take possession or control of relevant evidence found in plain view and belonging to any person, firm, or corporation. To the extent possible, the department shall notify the person, firm, or corporation of its intent to take possession or control of the evidence. The person, firm, or corporation shall be afforded reasonable opportunity to view the evidence and, before the department takes possession or control of the evidence, also shall be afforded reasonable opportunity to examine, document, and photograph it. If the person, firm, or corporation objects in writing to the department's taking possession or control of the evidence, the department must either return the evidence within seven days after the day on which the department is provided with the written objections or obtain a court order authorizing the continued possession or control.

              Absent a court order authorizing otherwise, the department may not take possession or control of evidence over the objection of the owner of the evidence if: (i) The evidence is used by the owner in conducting a business or in providing an electric utility service; and (ii) the department's taking possession or control of the evidence would substantially and materially interfere with the operation of the business or provision of electric utility service.               Absent a court order authorizing otherwise, the department may not take possession or control of evidence over the objection of an electric utility when the evidence is not owned by the utility but has caused damage to property owned by the utility. However, this paragraph does not apply if the department has notified the utility of its intent to take possession or control of the evidence and provided the utility with reasonable time to examine, document, and photograph the evidence.

              Only personnel qualified to work on electrical equipment may take possession or control of evidence owned or controlled by an electric utility."



On page 3, strike line 25 through 34.


              Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Dunshee; Linville; Sheldon; Valle; and Wolfe.


              MINORITY recommendation: Do not pass. Signed by Representatives Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Schoesler; and Thomas.


              Passed to Committee on Rules for second reading.


March 30, 1993

ESB 5101            Prime Sponsor, Vognild: Adjusting certain motorcycle-related fees. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; J. Kohl; Miller; H. Myers; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Excused: Representatives Johanson, R. Meyers, Orr and Patterson.


              Passed to Committee on Rules for second reading.


March 31, 1993

ESSB 5226          Prime Sponsor, Committee on Ways & Means: Providing for additional evaluation of state programs. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature finds that many of the systems currently in place for assuring accountability in state government programs are not operated comprehensively, do not take advantage of modern management techniques, and do not contribute adequately to the optimum use of scarce resources. Critical variables that are not always taken into account include whether stated goals and objectives are being achieved, and whether desired results are being accomplished.

              Agency executives need more accurate information for setting policy, determining whether new or existing programs are effective, and improving internal controls for agency management. These needs must be met at all levels of operation, and must be clearly communicated to the legislature and all interested parties.

              Ensuring accountability in government involves a long-term commitment to policy planning, quality management, and results-oriented evaluation. It is the intent of this act to facilitate program evaluations and performance audits of selected state agencies and programs through the coordinated resources of the executive and legislative branches of state government.


PART I - STATE GOVERNMENT PERFORMANCE PLAN


              Sec. 2. RCW 43.88.020 and 1991 c 358 s 6 are each amended to read as follows:

              (1) "Budget" means a proposed plan of expenditures for a given period or purpose and the proposed means for financing these expenditures.

              (2) "Budget document" means a formal, written statement offered by the governor to the legislature, as provided in RCW 43.88.030.

              (3) "Director of financial management" means the official appointed by the governor to serve at the governor's pleasure and to whom the governor may delegate necessary authority to carry out the governor's duties as provided in this chapter. The director of financial management shall be head of the office of financial management which shall be in the office of the governor.

              (4) "Agency" means and includes every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided in this chapter.

              (5) "Public funds", for purposes of this chapter, means all moneys, including cash, checks, bills, notes, drafts, stocks, and bonds, whether held in trust, for operating purposes, or for capital purposes, and collected or disbursed under law, whether or not such funds are otherwise subject to legislative appropriation, including funds maintained outside the state treasury.

              (6) "Regulations" means the policies, standards, and requirements, stated in writing, designed to carry out the purposes of this chapter, as issued by the governor or the governor's designated agent, and which shall have the force and effect of law.

              (7) "Ensuing biennium" means the fiscal biennium beginning on July 1st of the same year in which a regular session of the legislature is held during an odd-numbered year pursuant to Article II, section 12 of the Constitution and which biennium next succeeds the current biennium.

              (8) "Dedicated fund" means a fund in the state treasury, or a separate account or fund in the general fund in the state treasury, that by law is dedicated, appropriated or set aside for a limited object or purpose; but "dedicated fund" does not include a revolving fund or a trust fund.

              (9) "Revolving fund" means a fund in the state treasury, established by law, from which is paid the cost of goods or services furnished to or by a state agency, and which is replenished through charges made for such goods or services or through transfers from other accounts or funds.

              (10) "Trust fund" means a fund in the state treasury in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.

              (11) "Administrative expenses" means expenditures for: (a) Salaries, wages, and related costs of personnel and (b) operations and maintenance including but not limited to costs of supplies, materials, services, and equipment.

              (12) "Fiscal year" means the year beginning July 1st and ending the following June 30th.

              (13) "Lapse" means the termination of authority to expend an appropriation.

              (14) "Legislative fiscal committees" means the legislative budget committee, the legislative evaluation and accountability program committee, the ways and means committees of the senate and house of representatives, and, where appropriate, the legislative transportation committee.

              (15) "Fiscal period" means the period for which an appropriation is made as specified within the act making the appropriation.

              (16) "Primary budget driver" means the primary determinant of a budget level, other than a price variable, which causes or is associated with the major expenditure of an agency or budget unit within an agency, such as a caseload, enrollment, workload, or population statistic.

              (17) "Stabilization account" means the budget stabilization account created under RCW 43.88.525 as an account in the general fund of the state treasury.

              (18) "State tax revenue limit" means the limitation created by chapter 43.135 RCW.

              (19) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.

              (20) "Annual growth rate in real personal income" means the estimated percentage growth in personal income for the state during the current fiscal year, expressed in constant value dollars, as published by the office of financial management or its successor agency.

              (21) "Estimated revenues" means estimates of revenue in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast including estimates of revenues to support financial plans under RCW 44.40.070, that are prepared by the office of financial management in consultation with the interagency task force.

              (22) "Estimated receipts" means the estimated receipt of cash in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast.

              (23) "State budgeting, accounting, and reporting system" means a system that gathers, maintains, and communicates fiscal information. The system links fiscal information beginning with development of agency budget requests through adoption of legislative appropriations to tracking actual receipts and expenditures against approved plans.

              (24) "Allotment of appropriation" means the agency's statement of proposed expenditures, the director of financial management's review of that statement, and the placement of the approved statement into the state budgeting, accounting, and reporting system.

              (25) "Statement of proposed expenditures" means a plan prepared by each agency that breaks each appropriation out into monthly detail representing the best estimate of how the appropriation will be expended.

              (26) "Undesignated fund balance (or deficit)" means unreserved and undesignated current assets or other resources available for expenditure over and above any current liabilities which are expected to be incurred by the close of the fiscal period.

              (27) "Internal audit" means an independent appraisal activity within an agency for the review of operations as a service to management, including a systematic examination of accounting and fiscal controls to assure that human and material resources are guarded against waste, loss, or misuse; and that reliable data are gathered, maintained, and fairly disclosed in a written report of the audit findings.

              (28) "Performance audit" means an audit which determines the following: (a) Whether a government entity is acquiring, protecting, and using its resources economically and efficiently; (b) the causes of inefficiencies or uneconomical practices; (c) whether the entity has complied with laws and regulations applicable to the program; (d) the extent to which the desired results or benefits established by the legislature are being achieved; and (e) the effectiveness of organizations, programs, activities, or functions.

              (29) "Program evaluation" means the use of a variety of policy and fiscal research methods to (a) determine the extent to which a program is achieving its legislative intent in terms of producing the effects expected, and (b) make an objective judgment of the implementation, outcomes, and net cost or benefit impact of programs in the context of their goals and objectives. It includes the application of systematic methods to measure the results, intended or unintended, of program activities.


              NEW SECTION. Sec. 3. By July 1, 1994, each state agency shall define its mission or missions and establish measurable goals for achieving desirable results or outcomes for its customers. Agency customers shall include, but not be limited to, service recipients, regulated entities, and the public at large. This section shall not be construed to require an agency to develop a new mission or goals in place of existing identifiable missions or goals which meet the intent of this provision. Each state agency should involve affected stakeholders in planning its missions and goals. By January 1, 1995, each state agency shall submit its missions and goals to the appropriate standing committees of the legislature for review.


              Sec. 4. RCW 43.88.090 and 1989 c 273 s 26 are each amended to read as follows:

              (1) For purposes of developing budget proposals to the legislature, the governor shall have the power, and it shall be the governor's duty, to require from proper agency officials such detailed estimates and other information in such form and at such times as the governor shall direct. The estimates for the legislature and the judiciary shall be transmitted to the governor and shall be included in the budget without revision. The estimates for state pension contributions shall be based on the rates provided in chapter 41.45 RCW. Copies of all such estimates shall be transmitted to the standing committees on ways and means of the house and senate at the same time as they are filed with the governor and the office of financial management.

              (2) ((Estimates from each agency shall include goals and objectives for each program administered by the agency. The goals and objectives shall, whenever possible, be stated in terms of objective measurable results.)) For the purpose of assessing program performance, each state agency shall establish program objectives for each major program in its budget. The objectives shall be consistent with the missions and goals developed under section 3 of this act. These objectives shall be established for the biennium and for a six-year planning cycle. Each agency shall express the objectives in an outcome based, objective, quantifiable, and measurable form unless permitted by the office of financial management to adopt a different standard.

              The estimates shall include statements or tables which indicate, by agency, the state funds which are required for the receipt of federal matching revenues. The estimates shall be revised as necessary to reflect legislative enactments and adopted appropriations and shall be included with the initial biennial allotment submitted under RCW 43.88.110.

              (3) In the year of the gubernatorial election, the governor shall invite the governor-elect or the governor-elect's designee to attend all hearings provided in RCW 43.88.100; and the governor shall furnish the governor-elect or the governor-elect's designee with such information as will enable the governor-elect or the governor-elect's designee to gain an understanding of the state's budget requirements. The governor-elect or the governor-elect's designee may ask such questions during the hearings and require such information as the governor-elect or the governor-elect's designee deems necessary and may make recommendations in connection with any item of the budget which, with the governor-elect's reasons therefor, shall be presented to the legislature in writing with the budget document. Copies of all such estimates and other required information shall also be submitted to the standing committees on ways and means of the house and senate.


              Sec. 5. RCW 43.88.160 and 1992 c 118 s 8 are each amended to read as follows:

              This section sets forth the major fiscal duties and responsibilities of officers and agencies of the executive branch. The regulations issued by the governor pursuant to this chapter shall provide for a comprehensive, orderly basis for fiscal management and control, including efficient accounting and reporting therefor, for the executive branch of the state government and may include, in addition, such requirements as will generally promote more efficient public management in the state.

              (1) Governor; director of financial management. The governor, through the director of financial management, shall devise and supervise a modern and complete accounting system for each agency to the end that all revenues, expenditures, receipts, disbursements, resources, and obligations of the state shall be properly and systematically accounted for. The accounting system shall include the development of accurate, timely records and reports of all financial affairs of the state. The system shall also provide for central accounts in the office of financial management at the level of detail deemed necessary by the director to perform central financial management. The director of financial management shall adopt and periodically update an accounting procedures manual. Any agency maintaining its own accounting and reporting system shall comply with the updated accounting procedures manual and the rules of the director adopted under this chapter. An agency may receive a waiver from complying with this requirement if the waiver is approved by the director. Waivers expire at the end of the fiscal biennium for which they are granted. The director shall forward notice of waivers granted to the appropriate legislative fiscal committees. The director of financial management may require such financial, statistical, and other reports as the director deems necessary from all agencies covering any period.

              (2) The director of financial management is responsible for quarterly reporting of primary operating budget drivers such as applicable workloads, caseload estimates, and appropriate unit cost data. These reports shall be transmitted to the legislative fiscal committees or by electronic means to the legislative evaluation and accountability program committee. Quarterly reports shall include actual monthly data and the variance between actual and estimated data to date. The reports shall also include estimates of these items for the remainder of the budget period.

              (3) The director of financial management shall report at least annually to the appropriate legislative committees regarding the status of all appropriated capital projects, including transportation projects, showing significant cost overruns or underruns. If funds are shifted from one project to another, the office of financial management shall also reflect this in the annual variance report. Once a project is complete, the report shall provide a final summary showing estimated start and completion dates of each project phase compared to actual dates, estimated costs of each project phase compared to actual costs, and whether or not there are any outstanding liabilities or unsettled claims at the time of completion.

              (4) In addition, the director of financial management, as agent of the governor, shall:

              (a) Develop and maintain a system of internal controls and internal audits comprising methods and procedures to be adopted by each agency which will safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies for accounting and financial controls. The system developed by the director shall include criteria for determining the scope and comprehensiveness of internal controls required by classes of agencies, depending on the level of resources at risk.

              Each agency head or authorized designee shall be assigned the responsibility and authority for establishing and maintaining internal audits following the standards of internal auditing of the institute of internal auditors;

              (b) Make surveys and analyses of agencies with the object of determining better methods and increased effectiveness in the use of manpower and materials; and the director shall authorize expenditures for employee training to the end that the state may benefit from training facilities made available to state employees;

              (((b))) (c) Report to the governor with regard to duplication of effort or lack of coordination among agencies;

              (((c))) (d) Review any pay and classification plans, and changes thereunder, developed by any agency for their fiscal impact: PROVIDED, That none of the provisions of this subsection shall affect merit systems of personnel management now existing or hereafter established by statute relating to the fixing of qualifications requirements for recruitment, appointment, or promotion of employees of any agency. The director shall advise and confer with agencies including appropriate standing committees of the legislature as may be designated by the speaker of the house and the president of the senate regarding the fiscal impact of such plans and may amend or alter said plans, except that for the following agencies no amendment or alteration of said plans may be made without the approval of the agency concerned: Agencies headed by elective officials;

              (((d))) (e) Fix the number and classes of positions or authorized man years of employment for each agency and during the fiscal period amend the determinations previously fixed by the director except that the director shall not be empowered to fix said number or said classes for the following: Agencies headed by elective officials;

              (((e))) (f) Provide for transfers and repayments between the budget stabilization account and the general fund as directed by appropriation and RCW 43.88.525 through 43.88.540;

              (((f) Promulgate regulations)) (g) Adopt rules to effectuate provisions contained in (a) through (((e))) (f) of this subsection.

              (5) The treasurer shall:

              (a) Receive, keep, and disburse all public funds of the state not expressly required by law to be received, kept, and disbursed by some other persons: PROVIDED, That this subsection shall not apply to those public funds of the institutions of higher learning which are not subject to appropriation;

              (b) Disburse public funds under the treasurer's supervision or custody by warrant or check;

              (c) Keep a correct and current account of all moneys received and disbursed by the treasurer, classified by fund or account;

              (d) Perform such other duties as may be required by law or by regulations issued pursuant to this law.

              It shall be unlawful for the treasurer to issue any warrant or check for public funds in the treasury except upon forms duly prescribed by the director of financial management. Said forms shall provide for authentication and certification by the agency head or the agency head's designee that the services have been rendered or the materials have been furnished; or, in the case of loans or grants, that the loans or grants are authorized by law; or, in the case of payments for periodic maintenance services to be performed on state owned equipment, that a written contract for such periodic maintenance services is currently in effect and copies thereof are on file with the office of financial management; and the treasurer shall not be liable under the treasurer's surety bond for erroneous or improper payments so made: PROVIDED, That when services are lawfully paid for in advance of full performance by any private individual or business entity other than as provided for by RCW 42.24.035, such individual or entity other than central stores rendering such services shall make a cash deposit or furnish surety bond coverage to the state as shall be fixed in an amount by law, or if not fixed by law, then in such amounts as shall be fixed by the director of the department of general administration but in no case shall such required cash deposit or surety bond be less than an amount which will fully indemnify the state against any and all losses on account of breach of promise to fully perform such services: AND PROVIDED FURTHER, That no payments shall be made in advance for any equipment maintenance services to be performed more than three months after such payment. Any such bond so furnished shall be conditioned that the person, firm or corporation receiving the advance payment will apply it toward performance of the contract. The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency head's designee in accordance with regulations issued pursuant to this chapter. Nothing in this section shall be construed to permit a public body to advance funds to a private service provider pursuant to a grant or loan before services have been rendered or material furnished.

              (6) The state auditor shall:

              (a) Report to the legislature the results of current post audits that have been made of the financial transactions of each agency; to this end the auditor may, in the auditor's discretion, examine the books and accounts of any agency, official or employee charged with the receipt, custody or safekeeping of public funds. Where feasible in conducting examinations, the auditor shall utilize data and findings from the internal control system prescribed by the office of financial management. The current post audit of each agency may include a section on recommendations to the legislature as provided in (c) of this subsection.

              (b) Give information to the legislature, whenever required, upon any subject relating to the financial affairs of the state.

              (c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include ((at least the following:)) determinations as to whether agencies, in making expenditures, complied with the laws of this state((: PROVIDED, That nothing in this section may be construed to grant)). The state auditor ((the right)) is authorized to perform or participate in performance audits only as expressly authorized by the legislature in the omnibus biennial appropriations acts. A performance audit for the purpose of this section is the examination of the effectiveness of the administration, its efficiency, and its adequacy in terms of the programs of departments or agencies as previously approved by the legislature. ((The authority and responsibility to conduct such an examination shall be vested in the legislative budget committee as prescribed in RCW 44.28.085.)) The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW, may report to the legislative budget committee or other appropriate committees of the legislature, in a manner prescribed by the legislative budget committee, on facts relating to the management or performance of governmental programs where such facts are discovered incidental to the legal and financial audit: PROVIDED, That the auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts.

              (d) Be empowered to take exception to specific expenditures that have been incurred by any agency or to take exception to other practices related in any way to the agency's financial transactions and to cause such exceptions to be made a matter of public record, including disclosure to the agency concerned and to the director of financial management. It shall be the duty of the director of financial management to cause corrective action to be taken promptly, such action to include, as appropriate, the withholding of funds as provided in RCW 43.88.110.

              (e) Promptly report any irregularities to the attorney general.

              (f) Investigate improper governmental activity under chapter 42.40 RCW.

              (7) The legislative budget committee may:

              (a) Make post audits of the financial transactions of any agency and management surveys and program reviews as provided for in RCW 44.28.085 as well as performance audits and program evaluations. To this end the committee may in its discretion examine the books, accounts, and other records of any agency, official, or employee.

              (b) Give information to the legislature or any legislative committee whenever required upon any subject relating to the performance and management of state agencies.

              (c) Make a report to the legislature which shall include at least the following:

              (i) Determinations as to the extent to which agencies in making expenditures have complied with the will of the legislature and in this connection, may take exception to specific expenditures or financial practices of any agencies; and

              (ii) Such plans as it deems expedient for the support of the state's credit, for lessening expenditures, for promoting frugality and economy in agency affairs and generally for an improved level of fiscal management.


              NEW SECTION. Sec. 6. A new section is added to chapter 44.28 RCW to read as follows:

              (1) In conducting program evaluations as defined in RCW 43.88.020, the legislative budget committee shall establish a biennial work plan that identifies state agency programs for which formal evaluation appears necessary. Among the factors to be considered in preparing the work plan are:

              (a) Whether a program newly created or significantly altered by the legislature warrants continued oversight because (i) the fiscal impact of the program is significant, or (ii) the program represents a relatively high degree of risk in terms of reaching the stated goals and objectives for that program;

              (b) Whether implementation of an existing program has failed to meet its goals and objectives by any significant degree.

              (2) The project description for each program evaluation shall include start and completion dates, the proposed research approach, and cost estimates.

              (3) The overall plan may include proposals to employ contract evaluators. As conditions warrant, the program evaluation work plan may be amended from time to time. All biennial work plans shall be transmitted to the appropriate fiscal and policy committees of the senate and the house of representatives.


              Sec. 7. RCW 44.28.085 and 1975 1st ex.s. c 293 s 15 are each amended to read as follows:

              The legislative budget committee shall make management surveys and program reviews as to every public body, officer or employee subject to the provisions of RCW 43.09.290 through 43.09.340. The legislative budget committee may also make management surveys and program reviews of local school districts, intermediate school districts, and other units of local government receiving state funds as grants-in-aid or as shared revenues. Management surveys for the purposes of this section shall be an independent examination for the purpose of providing the legislature with an evaluation and report of the manner in which any public agency, officer, administrator, or employee has discharged the responsibility to faithfully, efficiently, and effectively administer any legislative purpose of the state. Program reviews for the purpose of this section shall be an examination of state or local government programs to ascertain whether or not such programs continue to serve their intended purposes, are conducted in an efficient and effective manner, or require modification or elimination: PROVIDED, That nothing in this section shall limit the power or duty of the state auditor to report to the legislature as directed by ((subsection (3) of)) RCW 43.88.160 ((as now or hereafter amended. The authority in this section conferred excludes a like authority in the state auditor)).

              The legislative budget committee shall receive a copy of each report of examination issued by the state auditor under RCW 43.09.310, shall review all such reports, and shall make such recommendations to the legislature and to the state auditor as it deems appropriate.


PART II - GOVERNMENT ACCOUNTABILITY TASK FORCE


              NEW SECTION. Sec. 8. There is created a government accountability task force to advise the legislature on establishing a comprehensive, integrated program accountability system for state government. The composition of the task force shall be as follows:

              (1) Four members to be appointed by the governor, with at least one representative each from private sector business and industry, state employee labor unions, and public interest organizations;

              (2) One representative from each of the four legislative caucuses, to be appointed by the president of the senate and the speaker of the house of representatives;

              (3) The state auditor;

              (4) The chair of the legislative budget committee;

              (5) The director of the office of financial management;

              (6) The superintendent of public instruction; and

              (7) The chair of the higher education coordinating board.

The chair of the task force shall be selected by its members. Staffing for the task force shall be provided by the legislative budget committee.

              This section shall expire December 31, 1995.


              NEW SECTION. Sec. 9. The government accountability task force shall develop recommendations to improve the accountability of state government including recommendations that address compliance with the law in the use of resources, efficiency in the use of resources, effectiveness in meeting program goals and objectives, and appropriateness of program activity in fulfilling the identified public need. The task force shall address the following issues:

              (1) The development of a plan for performance audits of state agencies in the executive branch of state government. This plan shall include identification of the proper roles for state agencies, the state auditor, the legislative budget committee, and the commission for efficiency and accountability in government in conducting these performance audits. The plan shall designate the scope and type of audits to be performed.

              (2) The development of a plan for a state-wide performance-based evaluations system that addresses:

              (a) The development of standard program evaluation definitions and suggested guidelines for conducting program evaluations;

              (b) The provision of technical assistance and training programs to agencies in conducting evaluations and using the results of evaluations to improve programs;

              (c) The establishment of automated data systems for streamlining the program evaluation process and for tracking results;

              (d) The establishment of a clearinghouse for program evaluation results and information from other states and the federal government; and

              (e) How to develop indicators of performance for the measurable goals established under section 3 of this act.

              (3) Recommendations regarding a plan for a state reporting process on program accountability that addresses to what extent agencies are meeting the goals established in section 3 of this act.

              The task force shall present these recommendations to the legislature by December 31, 1995.


PART IV - MISCELLANEOUS


              NEW SECTION. Sec. 10. This act may be known and cited as the performance-based government act of 1993.


              NEW SECTION. Sec. 11. CAPTIONS. Captions and part headings as used in this act constitute no part of the law."


              Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.



              Referred to Committee on Appropriations.


April 1, 1993

E2SSB 5306        Prime Sponsor, Committee on Ways & Means: Reforming education. As Reported by Committee on Education


              MAJORITY Recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature finds that the educational needs of our students have increased dramatically in the past several decades. If our young people, families, communities, and nation are to prosper, it is imperative that the achievement of our students in public K-12 schools be significantly increased.

              To increase student achievement, the legislature finds that the state of Washington needs to develop a public school education system that focuses more on the educational performance of our students, and less on complying with state laws that dictate how instruction must be offered.

              The legislature further finds that improving the state's public schools will require:

              (1) Greater involvement of parents in the education of their children, and allowing parents to play a significantly greater role in local school decision making;

              (2) Students being held more accountable for their performance and for meeting higher expectations;

              (3) Additional time and resources for educators to collaboratively develop and implement strategies for improved student learning;

              (4) Making instructional programs more relevant to students' future plans;

              (5) All parties responsible for education focus more on what is best for students; and

              (6) An educational environment that fosters mutually respectful interactions in an atmosphere of collaboration and cooperation, and in which students develop awareness, understanding, and sensitivity to differences among people, including but not limited to race, gender, color, national origin, and religion.

              The legislature further finds that students will learn more when parents take more responsibility for their child's education, when businesses assume greater responsibility for supporting schools, when educators take responsibility for meeting the diverse educational needs of all students, and when students take more responsibility for their own learning.

              It is the intent of the legislature that any student who is having difficulty meeting the essential academic learning requirements in RCW 28A.630.885 be provided alternative or additional instructional opportunities to help him or her meet the requirements. It is also the intent of the legislature that highly capable students who have met or exceeded the essential academic learning requirements be provided with alternative or additional instructional opportunities to help advance their educational experience.

              The provisions of this act shall not be construed to change current state requirements for students who receive home-based instruction pursuant to chapter 28A.200 RCW.


PART I

STUDENT LEARNING GOALS


              Sec. 101. RCW 28A.150.210 and 1992 c 141 s 501 are each amended to read as follows:

              The goal of the Basic Education Act for the schools of the state of Washington set forth in this chapter shall be to ((provide students with the opportunity to master the essential academic learning requirements necessary for their roles as citizens and potential participants in the economic marketplace and in the marketplace of ideas identified by the commission established in RCW 28A.630.885)) enable people to be responsible citizens, to contribute to their own economic well-being and to that of their families and communities, and to enjoy productive and satisfying lives. To these ends, each school district, with the involvement of parents and community members, shall provide opportunities for all students to develop the knowledge and skills essential to:

              (1) Read with comprehension, write with skill, and communicate effectively and responsibly in a variety of ways and settings;

              (2) Know and apply the core concepts and principles of mathematics; social, physical, and life sciences; history; geography; arts; and health and fitness;

              (3) Think analytically, logically, and creatively, and integrate experience and knowledge to form reasoned judgments and solve problems;

              (4) Understand the importance of work and how performance and decisions directly affect future career and educational opportunities; and

              (5) Function as responsible individuals and contributing members of families, work groups, and communities.


              NEW SECTION. Sec. 102. Section 101 of this act shall take effect September 1, 1998. However, section 101 of this act shall not take effect if, by September 1, 1998, a law is enacted stating that a school accountability and academic assessment system is not in place.


PART II

COMMISSION ON STUDENT LEARNING


              NEW SECTION. Sec. 201. A new section is added to chapter 28A.630 RCW to read as follows:

              Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28A.630.885.

              (1) "Commission" means the commission on student learning created in RCW 28A.630.885.

              (2) "Student learning goals" mean the goals established in RCW 28A.150.210.

              (3) "Essential academic learning requirements" means more specific academic and technical skills and knowledge that must be learned by students. The essential academic learning requirements shall be determined in accordance with RCW 28A.630.885.

              (4) "Performance standards" or "standards" means the criteria used to determine if a student has successfully learned the specific knowledge or skill being assessed. The performance standards shall be determined in accordance with RCW 28A.630.885.

              (5) "Assessment system" or "student assessment system" means a series of assessments used to determine if students have successfully learned the essential academic learning requirements. The assessment system shall be developed in accordance with RCW 28A.630.885.

              (6) "Performance-based education system" means an education system in which a significantly greater emphasis is placed on how well students are learning, and significantly less emphasis on the compliance by schools of state-level accountability laws and rules that dictate how instruction is to be provided. The performance-based education system does not require that schools use an outcome-based instructional model. Decisions regarding how instruction is provided are to be made, to the greatest extent possible, by schools and school districts, not by the state.


              Sec. 202. RCW 28A.630.885 and 1992 c 141 s 202 are each amended to read as follows:

              (((2))) (1) The Washington commission on student learning is hereby established. The primary purposes of the commission are to identify ((what)) the knowledge and skills all public school students need to know and be able to do based on the student learning goals ((of the governor's council on education reform and funding)) in RCW 28A.150.210, to develop student assessment and school accountability systems, and to take other steps necessary to develop a performance-based education system. The commission shall include three members of the state board of education, three members appointed by the governor before July 1, 1992, and ((three)) five members appointed no later than ((February)) July 1, 1993, by the governor elected in the November 1992 election. The governor shall appoint a chair from the commission members, and fill any vacancies in gubernatorial appointments that may occur. The state board of education shall fill any vacancies in state board of education appointments that may occur. In making the appointments, educators, business leaders, and parents shall be represented, and nominations from state-wide education, business, and parent organizations shall be requested. Efforts shall be made to ensure that the commission reflects the cultural diversity of the state's K-12 student population and that the major geographic regions in the state are represented. Appointees shall be qualified individuals who are supportive of ((educational restructuring)) improving education for all children, who have a positive record of service, and who will devote sufficient time to the responsibilities of the commission to ensure that the objectives of the commission are achieved.

              (((3) The commission shall begin its substantive work subject to subsection (1) of this section.

              (4))) (2) The commission shall establish ((technical)) advisory committees. Membership of the ((technical)) advisory committees shall include, but not necessarily be limited to, professionals from the office of the superintendent of public instruction and the state board of education, and other state and local educational practitioners and student assessment specialists.

              (((5))) (3) The commission, with the assistance of the ((technical)) advisory committees, shall:

              (a) ((Identify what all elementary and secondary students need to know and be able to do. At a minimum, these)) Develop essential academic learning requirements ((shall include reading, writing, speaking, science, history, geography, mathematics, and critical thinking. In developing these essential academic learning requirements, the commission shall incorporate)) based on the student learning goals ((identified by the council on education reform and funding)) in RCW 28A.150.210. The essential academic learning requirements are more specific skills and knowledge that students are expected to have learned at designated stages of their education. Essential academic learning requirements shall be developed, to the extent possible, for each of the student learning goals in RCW 28A.150.210. Proposed essential academic learning requirements for RCW 28A.150.210(1), goal one, and the mathematics component of RCW 28A.150.210(2), goal two, shall be completed no later than September 1, 1994. Proposed essential academic learning requirements that incorporate the remainder of RCW 28A.150.210 (2), (3), and (4), goals two, three, and four, shall be completed no later than September 1, 1995. Essential academic learning requirements for RCW 28A.150.210(5), goal five, shall be completed no later than September 1, 1996. To the maximum extent possible, the commission shall integrate goal four and the knowledge and skill areas in the other four goals in the development of the essential academic learning requirements;

              (b) ((By December 1, 1995,)) Present to the state board of education and superintendent of public instruction a state-wide academic assessment system for use in the elementary ((grades)), middle, and high school years designed to determine if each student has mastered the essential academic learning requirements identified in (a) of this subsection. The academic assessment system shall include a variety of ((methodologies)) assessment methods, including performance-based measures that are criterion-referenced, and shall include assessments developed, administered, or evaluated by both the commission and local school districts. Performance standards for determining if a student has successfully completed an assessment shall be determined by the commission in consultation with the advisory committees required in subsection (2) of this section. The assessment system shall be designed so that the results under the assessment system are used by educators as tools to evaluate instructional practices, and to initiate appropriate educational support for students who do not master the essential academic learning requirements. ((Mastery of each component of the essential academic learning requirements)) After a determination by the state board of education that the assessment system has been implemented and that it is sufficiently reliable and valid, successful completion of the assessment by students shall be ((required before students progress in subsequent components of the essential academic learning requirements. The state board of education and superintendent of public instruction shall implement the elementary academic assessment system beginning in the 1996-97 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements)) reviewed by school districts for purposes of assessing the adequacy of its curriculum and teaching methods in educating students in the essential academic learning requirements. Assessments measuring the essential academic learning requirements developed for RCW 28A.150.210(1), goal one, and the mathematics component of RCW 28A.150.210(2), goal two, shall be initially implemented by the state board of education and superintendent of public instruction no later than the 1996-97 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements. Assessments measuring the essential academic learning requirements developed for RCW 28A.150.210 (2), (3), and (4), goals two, three, and four, shall be initially implemented by the state board of education and superintendent of public instruction no later than the 1997-98 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements. Prior to beginning the development of assessments for RCW 28A.150.210(5), goal five, the commission shall submit a report to the legislature on the feasibility of developing assessments for this goal. The report shall be submitted by December 1, 1996. To the maximum extent possible, the commission shall integrate knowledge and skill areas in development of the assessments. The state board of education and superintendent of public instruction may modify the academic assessment system, as needed, in subsequent school years;

              (c) ((By December 1, 1996, present to the state board of education and superintendent of public instruction a state-wide academic assessment system for use in the secondary grades designed to determine if each student has mastered the essential academic learning requirements identified for secondary students in (a) of this subsection. The academic assessment system shall use a variety of methodologies, including performance-based measures, to determine if students have mastered the essential academic learning requirements, and)) The high school assessments shall be administered to students by about the age of sixteen. After a determination is made by the state board of education that the assessment has been implemented and that it is sufficiently reliable and valid, successful completion of the high school assessment shall lead to a certificate of mastery. The certificate of mastery shall be required for graduation. ((The assessment system shall be designed so that the results are used by educators to evaluate instructional practices, and to initiate appropriate educational support for students who do not master the essential academic learning requirements.)) The commission shall ((recommend)) make recommendations to the state board of education ((whether the certificate of mastery should take the place of the graduation requirements or be required for graduation in addition to graduation requirements. The state board of education and superintendent of public instruction shall implement the secondary academic assessment system beginning in the 1997-98 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements. The state board of education and superintendent of public instruction may modify the assessment system, as needed, in subsequent school years)) regarding the relationship between the certificate of mastery and high school graduation requirements. However, the certificate of mastery is not intended to be the sole criterion for graduation. Upon achieving the certificate of mastery, all students shall continue to pursue career and educational objectives through educational pathways that emphasize integration of academic and vocational education. Educational pathways may include, but are not limited to, work-based learning, school-to-work transition, tech prep, vocational-technical education, running start, and preparation for technical college, community college, and/or university education;

              (d) Prepare and distribute information designed to inform teachers, other educators, and parents of the essential academic learning requirements;

              (e) Consider methods to address the unique needs of special education students when developing the assessments in (b) and (c) of this subsection;

              (((e) Develop strategies that will assist educators in helping students master the essential academic learning requirements;

              (f) Establish a center the primary role of which is to plan, implement, and evaluate a high quality professional development process. The quality schools center shall: Have an advisory council composed of educators, parents, and community and business leaders; use best practices research regarding instruction, management, curriculum development, and assessment; coordinate its activities with the office of the superintendent of public instruction and the state board of education; employ and contract with individuals who have a commitment to quality reform; prepare a six-year plan to be updated every two years; and be able to accept resources and funding from private and public sources;

              (g) Develop recommendations for the repeal or amendment of federal, state, and local laws, rules, budgetary language, regulations, and other factors that inhibit schools from adopting strategies designed to help students achieve the essential academic learning requirements;

              (h))) (f) Develop ((recommendations on the time, support, and resources, including technical assistance, needed by schools and school districts to help students achieve the essential academic learning requirements. These recommendations shall include)) an estimate for the legislature, superintendent of public instruction, and governor on the expected cost of implementing the elementary and secondary academic assessment systems during the 1995-97 biennium and beyond;

              (((i))) (g) Develop recommendations for consideration by the higher education coordinating board for adopting college and university entrance requirements that ((would assist schools in adopting strategies designed to help students achieve the essential learning requirements)) are consistent with the essential academic learning requirements and the certificate of mastery;

              (((j))) (h) By December 1, 1996, recommend to the legislature, governor, state board of education, and superintendent of public instruction: (i) A state-wide accountability system to evaluate accurately and fairly the level of learning occurring in individual schools and school districts. ((The commission also shall recommend to the legislature steps that should be taken to assist school districts and schools in which learning is significantly below expected levels of performance as measured by the academic assessment systems established under this section)) The accountability system shall be designed so that it can monitor the performance of students and school districts based on the gender and racial, ethnic, economic, and special need status of students, and shall include new school-site, school district, and state-level accountability reporting systems. The commission is authorized to collect baseline and other data from school districts for the purposes of the school-site and school district reports; (ii) a school assistance program to help schools and districts that are having difficulty helping students meet the essential academic learning requirements; (iii) a system to intervene in districts or schools in which significant numbers of students dramatically and persistently fail to learn the essential academic learning requirements; and (iv) an awards program to provide incentives to school staff to help their students learn the essential academic learning requirements, with each school being assessed individually against its own baseline. Incentives shall be based on the rate of percentage change of students achieving the essential academic learning requirements, and school staff shall determine how the awards will be spent.

               It is the intent of the legislature to begin implementation of these programs on September 1, 1998;

              (((k))) (i) Report annually by December 1st to the legislature, the governor, the superintendent of public instruction, and the state board of education on the progress, findings, and recommendations of the commission; and

              (((l) Complete other tasks, as appropriate)) (j) Make recommendations to the legislature and take other actions necessary or desirable to help meet the student learning goals.

              (((6))) (4) The commission shall coordinate its activities with the state board of education and the office of the superintendent of public instruction.

              (((7))) (5) The commission shall seek advice broadly from the public and all interested educational organizations in the conduct of its work, including holding periodic regional public hearings.

              (((8))) (6) The commission shall select an entity to provide staff support and the office of ((financial management)) the superintendent of public instruction shall ((contract with that entity)) provide administrative oversight and be the fiscal agent for the commission. The commission may direct the office of ((financial management)) the superintendent of public instruction to enter into subcontracts with school districts, teachers, higher education faculty, state agencies, business organizations, and other individuals and organizations to assist the commission in its deliberations.

              (((9))) (7) Members of the commission shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.


PART III

EDUCATION RESTRUCTURING GRANTS


              NEW SECTION. Sec. 301. A new section is added to chapter 28A.300 RCW to read as follows:

              (1) From appropriated funds, the office of the superintendent of public instruction shall provide education restructuring grants to eligible school districts for the final months of the 1993-94 school year and the 1994-95 school year. The purpose of the grants is to develop and implement strategic restructuring plans that include school-based strategies and programs designed to improve student learning for all students, including students with unique and diverse needs, consistent with the student learning goals in RCW 28A.150.210. Funds from the program shall be used for nonstudent days for staff, for participation in the advisory committees of the commission on student learning established in RCW 28A.630.885, and for other actions and activities intended to achieve the purposes of the grant program.

              (2) To be eligible for education restructuring grants, districts shall submit an application to the superintendent of public instruction by January 15, 1994. The application shall include the following:

              (a) Either a completed district-wide restructuring plan, or the process to be used to develop or complete a district-wide restructuring plan. Restructuring plans shall include actions the district has taken, or will take, to implement a process to ensure continuous improvement in the quality of instruction, and a process for sharing instructional decisions with building staff, parents, and community members;

              (b) Proposed activities and actions to be funded by the grant;

              (c) How parents, business leaders, and other community members will be involved; and

              (d) A proposed budget.

              (3) If the requirements of subsection (2) of this section are met, the superintendent of public instruction shall approve the district's application by March 1, 1994.

              (4) The amount of district grants shall be determined by the average number of full-time equivalent certificated and classified staff employed by the district during the 1992-93 school year. The allocations shall be figured on two hundred dollars per day multiplied by up to five days for each certificated staff person, and one hundred twenty-five dollars per day multiplied by five days for each classified staff person.

              (5) Schools receiving schools for the twenty-first century grants pursuant to RCW 28A.630.100 for the 1994-95 school year shall not be eligible to receive restructuring grants.

              (6) The superintendent of public instruction shall adopt rules as necessary under chapter 34.05 RCW to administer the program. A copy of the proposed rules shall be submitted to the joint select committee on education restructuring established in section 1001 of this act at least forty-five days prior to adoption of the rules.

              (7) Funding under this section shall not become a part of the state's basic program of education obligation as set forth under Article IX of the state Constitution.

              (8) If specific funding for education restructuring grants, referencing this act by bill number and specifying that the funding is for education restructuring grants, is not provided by June 30, 1993, in the omnibus appropriation act, this section is null and void.


              NEW SECTION. Sec. 302. A new section is added to chapter 28A.300 RCW to read as follows:

              (1) From appropriated funds, the office of the superintendent of public instruction shall provide education restructuring grants to eligible local districts for the 1995-96 and 1996-97 school years. The purpose of the grants is to implement strategic restructuring plans that include school-based strategies and programs designed to improve student learning for all students, including students with unique and diverse needs, consistent with the student learning goals in RCW 28A.150.210. Funds from the program shall be used for nonstudent days for staff, for participation in the advisory committees of the commission on student learning established in RCW 28A.630.885, and for other actions and activities intended to achieve the purposes of the grant program.

              (2) To be eligible for education restructuring grants, school districts shall submit an application to the superintendent of public instruction by March 15, 1995. The application shall include the following:

              (a) A district-wide strategic restructuring plan that includes, but is not limited to, actions the district has taken to implement a process to ensure continuous improvement in the quality of instruction, and a process for sharing instructional decisions with building staff, parents, and community members;

              (b) Proposed activities and actions to be funded by the grant;

              (c) How parents, business leaders, and other community members will be involved; and

              (d) A proposed budget.

              (3) If the requirements of subsection (2) of this section are met, the superintendent of public instruction shall approve the district's application by May 15, 1995, for the 1995-96 and 1996-97 school years.

              (4) The amount of district grants shall be determined by the average number of full-time equivalent certificated and classified staff employed by the district during the 1993-94 school year. The annual allocations shall be figured on two hundred dollars per day multiplied by up to ten days for each certificated staff person, and one hundred twenty-five dollars per day multiplied by ten days for each classified staff person.

              (5) The superintendent of public instruction shall adopt rules as necessary under chapter 34.05 RCW to administer the grant program. A copy of the proposed rules shall be submitted to the joint select committee on education restructuring established in section 1001 of this act at least forty-five days prior to adoption of the rules.

              (6) By December 15, 1996, the superintendent of public instruction shall submit a report to the appropriate committees of the legislature that summarizes the effectiveness of the grant program, and includes a recommendation as to whether or not the program should be continued in the 1997-98 school year and beyond.

              (7) Funding under this section shall not become a part of the state's basic program of education obligation as set forth under Article IX of the state Constitution.

              (8) If specific funding for education restructuring grants, referencing this act by bill number and specifying that the funding is for education restructuring grants, is not provided by June 30, 1995, in the omnibus appropriation act for the 1995-97 biennium, this section is null and void.


PART IV

EDUCATOR TRAINING AND ASSISTANCE PROGRAMS


              Sec. 401. RCW 28A.415.250 and 1991 c 116 s 19 are each amended to read as follows:

              The superintendent of public instruction shall adopt rules to establish and operate a teacher assistance program. For the purposes of this section, the terms "mentor teachers," "beginning teachers," and "experienced teachers" may include any person possessing any one of the various certificates issued by the superintendent of public instruction under RCW 28A.410.010. The program shall provide for:

              (1) Assistance by mentor teachers who will provide a source of continuing and sustained support to beginning teachers, or experienced teachers, or both, both in and outside the classroom. A mentor teacher may not be involved in evaluations under RCW 28A.405.100 of a teacher who receives assistance from said mentor teacher under the teacher assistance program established under this section. The mentor teachers shall also periodically inform their principals respecting the contents of training sessions and other program activities;

              (2) Stipends for mentor teachers and beginning teachers which shall not be deemed compensation for the purposes of salary lid compliance under RCW 28A.58.095: PROVIDED, That stipends shall not be subject to the continuing contract provisions of this title;

              (3) Workshops for the training of mentor and beginning teachers;

              (4) The use of substitutes to give mentor teachers, beginning teachers, and experienced teachers opportunities to jointly observe and evaluate teaching situations and to give mentor teachers opportunities to observe and assist beginning and experienced teachers in the classroom;

              (5) Mentor teachers who are superior teachers based on their evaluations, pursuant to RCW 28A.405.010 through 28A.405.240, and who hold valid continuing certificates;

              (6) Mentor teachers for experienced teachers who are having difficulties;

              (7) Mentor teachers shall be selected by the district and may serve as mentors full time. If a bargaining unit, certified pursuant to RCW 41.59.090 exists within the district, classroom teachers representing the bargaining unit shall participate in the mentor teacher selection process; and

              (((7))) (8) Periodic consultation by the superintendent of public instruction or the superintendent's designee with representatives of educational organizations and associations, including educational service districts and public and private institutions of higher education, for the purposes of improving communication and cooperation and program review.


              Sec. 402. RCW 28A.405.140 and 1990 c 33 s 387 are each amended to read as follows:

              After an evaluation conducted pursuant to RCW 28A.405.100, the ((school district)) principal or the evaluator may require the teacher to take in-service training provided by the district in the area of teaching skills needing improvement, and may require the teacher to have a mentor for purposes of achieving such improvement.


              NEW SECTION. Sec. 403. The superintendent of public instruction shall, by December 1, 1995, develop recommendations for an expanded teacher assistance program that would use, to the extent feasible, full-time, year-round mentors.


              NEW SECTION. Sec. 404. A new section is added to chapter 28A.405 RCW to read as follows:

              (1) The Washington state principal internship support program is hereby created. The purpose of the program is to provide funds to school districts to hire substitutes for district employees who are in a principal preparation program to complete an internship with a mentor principal.

              (2) The process for selecting participants in the principal internship support program shall be as follows:

              (a) The candidate shall be enrolled in a state board-approved school principal preparation program;

              (b) The candidate shall apply in writing to his or her local school district;

              (c) Each school district shall determine which applicants meet its criteria for participation in the principal internship support program and shall notify its educational service district of the school district's selected applicants. When submitting the names of applicants, the school district shall identify a mentor principal for each principal intern applicant, and shall agree to provide the internship applicant at least forty-five student days of release time for the internship; and

              (d) Educational service districts, with the assistance of an advisory board, shall select internship participants.

              (3)(a) Beginning in the 1994-95 school year, a maximum of one hundred seventy-five principal internships shall be funded annually.

              (b) The maximum amount of state funding for each internship shall be four thousand five hundred dollars.

              (c) Funds appropriated for the principal internship support program shall be allocated by the superintendent of public instruction to the educational service districts based on the percentage of full-time equivalent public school students enrolled in school districts in each educational service district. To the extent practicable, participants should be selected to reflect the racial and ethnic diversity of the student population in the educational service district region and represent an equal number of women and men.

              (d) Once principal internship participants have been selected, the educational service districts shall allocate the funds to the appropriate school districts. The funds shall be used to pay for replacement substitute staff while the school district employee is completing the principal internship.

              (e) Educational service districts may be reimbursed for costs associated with implementing the program. Reimbursement rates shall be determined by the superintendent of public instruction.


              NEW SECTION. Sec. 405. A new section is added to chapter 28A.405 RCW to read as follows:

              (1) The Washington state superintendent and program administrator internship support program is hereby created. The purpose of the program is to provide funds to school districts to hire substitutes for district employees who are in a superintendent or program administrator preparation program to complete an internship with a mentor administrator.

              (2) The process for selecting participants in the superintendent and program administrator internship support program shall be as follows:

              (a) The candidate shall be enrolled in a state board-approved school district superintendent or program administrator preparation program;

              (b) The candidate shall apply in writing to his or her local school district;

              (c) Each school district shall determine which applicants meet its criteria for participation in the internship support program and shall notify its educational service district of the school district's selected applicants. When submitting the names of applicants, the school district shall identify a mentor administrator for each intern applicant and shall agree to provide the internship applicant at least forty-five student days of release time for the internship; and

              (d) Educational service districts, with the assistance of an advisory board, shall select internship participants.

              (3)(a) Beginning in the 1994-95 school year, a maximum of twenty-five internships shall be funded annually.

              (b) The maximum amount of state funding for each internship shall be four thousand five hundred dollars.

              (c) Funds appropriated for the internship support program shall be allocated by the superintendent of public instruction to the educational service districts based on the percentage of full-time equivalent public school students enrolled in school districts in each educational service district. To the extent practicable, participants should be selected to reflect the racial and ethnic diversity of the student population in the educational service district region, and represent an equal number of women and men.

              (d) Once internship participants have been selected, the educational service districts shall allocate the funds to the appropriate school districts. The funds shall be used to pay for replacement substitute staff while the school district employee is completing the internship.

              (e) Educational service districts may be reimbursed for costs associated with implementing the program. Reimbursement rates shall be determined by the superintendent of public instruction.


              NEW SECTION. Sec. 406. (1) The state board of education shall appoint an administrator internship advisory task force to develop and recommend to the board standards for the principal and superintendent and program administrator support programs created in sections 404 and 405 of this act. Interns shall be required to complete the state board standards in order to successfully complete the internship program. These standards shall be adopted by the state board of education before the allocation of funds by the superintendent of public instruction pursuant to sections 404(3)(c) and 405(3)(c) of this act. Colleges, universities, and school districts may establish additional standards.

              (2) Task force membership shall include, but not be limited to, representatives of the office of the superintendent of public instruction, principals, superintendents, program administrators, teachers, school directors, parents, higher education administrative preparation programs, and educational service districts. The task force membership shall, to the extent possible, be culturally diverse.


              NEW SECTION. Sec. 407. A new section is added to chapter 28A.300 RCW to read as follows:

              The superintendent of public instruction shall adopt rules as necessary under chapter 34.05 RCW to administer the principal and superintendent and program administrator internship support programs.


              NEW SECTION. Sec. 408. A new section is added to chapter 28A.300 RCW to read as follows:

              (1) The paraprofessional training program is created. The primary purpose of the program is to provide training for classroom assistants to assist them in helping students achieve the essential academic learning requirements pursuant to RCW 28A.630.885. Another purpose of the program is to provide training to certificated personnel who work with classroom assistants.

              (2) The superintendent of public instruction may allocate funds, from moneys appropriated for this program, to educational service districts, school districts, and other organizations for providing the training in subsection (1) of this section.


PART V

CENTER FOR THE IMPROVEMENT OF STUDENT LEARNING


              NEW SECTION. Sec. 501. A new section is added to chapter 28A.300 RCW to read as follows:

              (1) The Washington center for the improvement of student learning is created in the office of the superintendent of public instruction. The primary purpose of the center is to provide assistance and advice to parents, school board members, educators, and the public regarding strategies for assisting students to learn the essential academic learning requirements as in RCW 28A.630.885. The center shall work in conjunction with the commission on student learning, educational service districts, and institutions of higher education.

              (2) The center shall:

              (a) Serve as a clearinghouse for information regarding successful educational restructuring and parental involvement programs in schools and districts;

              (b) Provide best practices research and advice that can be used to help schools and districts develop and implement:

              (i) Strategic restructuring plans;

              (ii) Building-based shared decision-making models;

              (iii) Academic and technical integration programs;

              (iv) Programs to meet the diverse needs of students based on gender, racial, ethnic, economic, and special needs status; and

              (v) Other programs that will assist educators in helping students learn the essential academic learning;

              (c) Develop and distribute, in conjunction with the commission on student learning, parental involvement materials, including instructional guides developed to inform parents of the essential academic learning requirements. The instructional guides also shall provide actions parents may take to assist their children in meeting the requirements;

              (d) Take other actions to increase public awareness of the importance of parental involvement in education;

              (e) By December 1994, develop alternatives for grade designations in elementary schools;

              (f) Provide training and consultation services;

              (g) Coordinate with the commission on student learning established in RCW 28A.630.885; and

              (h) Perform other functions consistent with the purpose of the center as prescribed in subsection (1) of this section.

              (3) The center shall have an eleven-member advisory committee composed of educators, including teachers, principals, classified staff, higher education faculty or deans or directors of educator preparation programs, and educational service district representatives; school board members; parents; students; and labor and business leaders. Advisory committee members shall be selected jointly by the superintendent of public instruction and the commission on student learning from recommendations submitted by individuals and appropriate state-wide organizations. The advisory council shall provide recommendations to the superintendent regarding staffing, allocation of expenditures, and other policy matters of the center.

              (4) The superintendent may enter into contracts with school districts, teachers, higher education faculty, institutions of higher education, state agencies, business organizations, and other individuals and organizations to accomplish the duties and responsibilities of the center.


              NEW SECTION. Sec. 502. A new section is added to chapter 28A.300 RCW to read as follows:

              (1) The center for the improvement of student learning fund is hereby established in the custody of the state treasurer. The superintendent of public instruction shall deposit in the fund all moneys received from gifts, grants, or endowments for the center. Moneys in the fund may be spent only for activities of the center. Disbursements from the fund shall be on authorization of the superintendent of public instruction or the superintendent's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

              (2) The superintendent of public instruction may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the superintendent of public instruction and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.


PART VI

SCHOOL-TO-WORK TRANSITIONS


              NEW SECTION. Sec. 601. (1) The legislature finds that demonstrated relevancy and practical application of school work is essential to improving student learning and to increasing the ability of students to transition successfully to the world of work. Employers have an increasing need for highly skilled people whether they are graduating from high school, a community college, a four-year university, or a technical college.

              (2) The legislature further finds that the school experience must prepare students to make informed career direction decisions at appropriate intervals in their educational progress. The elimination of rigid tracking into educational programs will increase students' posthigh school options and will expose students to a broad range of interrelated career and educational opportunities.

              (3) The legislature further finds that student motivation and performance can be greatly increased by the demonstration of practical application of course work content and its relevancy to potential career directions.

              (4) The legislature further finds that secondary schools should provide students with multiple, flexible educational pathways. Each educational pathway should:

              (a) Prepare students to demonstrate both core competencies common for all students and competencies in a career or interest area;

              (b) Integrate academic and vocational education into a single curriculum; and

              (c) Provide both classroom and workplace experience.

              (5) The purpose of RCW 28A.630.862 through 28A.630.880 and section 611 of this act is to equip students with improved school-to-work transition opportunities through the establishment of school-to-work transition model projects throughout the state.


              Sec. 602. RCW 28A.630.862 and 1992 c 137 s 2 are each amended to read as follows:

              There is established in the office of the superintendent of public instruction ((an academic and vocational integration development)) a school-to-work transitions program which shall fund and coordinate ((pilot)) projects to develop model secondary school ((projects)) programs. The projects shall combine academic and vocational education into a single instructional system that is responsive to the educational needs of all students in secondary schools and shall provide multiple educational pathway options for all secondary students. Goals of the projects within the program shall include at a minimum:

              (1) Integration of vocational and academic instructional curriculum into a single curriculum;

              (2) Providing each student with a choice of multiple, flexible educational pathways based on the student's career or interest area;

              (3) Emphasis on increased vocational((, personal,)) and academic guidance and counseling for students as an essential component of the student's high school experience;

              (((3))) (4) Development of student essential academic learning requirements, methods of accurately measuring student performance, and goals for improved student learning;

              (5) Partnership with local employers and employees to incorporate work sites as part of work-based learning experiences;

              (6) Active participation of educators in the planning, implementation, and operation of the project, including increased opportunities for professional development and in-service training; and

              (((4))) (7) Active participation by employers, private and public community service providers, parents, and community members in the development and operation of the project.


              Sec. 603. RCW 28A.630.864 and 1992 c 137 s 3 are each amended to read as follows:

              (1) The superintendent of public instruction shall develop a process for schools or school districts to apply to participate in the ((academic and vocational integration development)) school-to-work transitions program. The office of the superintendent of public instruction shall review and select projects for grant awards, and monitor and evaluate the ((academic and vocational integration development)) program.

              (2) The superintendent of public instruction, in selecting projects for grant awards, shall give additional consideration to schools or school districts whose proposals include collaboration with middle schools or junior high schools to develop school-to-work transition objectives. Middle school or junior high school programs may include career awareness and exploration, preparation for school-to-school transition, and preparation for educational pathway decisions.

              (3) The superintendent of public instruction, in selecting projects for grant awards, shall give additional consideration to schools or school districts whose proposals include a tech prep site selected under P.L. 101-392 or other articulation agreements with a community or technical college.

              (4) The superintendent of public instruction, in selecting projects for grant awards, shall give additional consideration to schools or school districts whose proposals include the following elements: Paid student employment in an occupational area with growing labor market demand, instruction on the job from a mentor, demonstration of competency standards for program completion, and a contract to be signed by the participating student, the student's parent or legal guardian, the participating employer, and an education representative.

              (5) The superintendent of public instruction and the state board of education may develop a process for teacher preparation programs to apply to participate in the school-to-work transitions program. The office of the superintendent of public instruction and the state board of education may review and select projects for grant awards. Teacher preparation grants shall be used to improve teacher preparation in school-to-work transitions, including course work related to integrated curriculum, tech prep concepts, updating technical skills, improving school and private sector partnerships, and assessing students.


              Sec. 604. RCW 28A.630.866 and 1992 c 137 s 4 are each amended to read as follows:

              The superintendent of public instruction shall appoint a ten-member task force on ((academic and vocational integration)) school-to-work transitions. The task force shall include at least one representative from the work force training and education coordinating board and the state board for community and technical colleges. The task force shall advise the superintendent of public instruction in the development of the process for applying to participate in the ((academic and vocational integration development)) school-to-work transitions program, in the review and selection of projects under RCW 28A.630.864, and the monitoring and evaluation of the projects.


              Sec. 605. RCW 28A.630.868 and 1992 c 137 s 6 are each amended to read as follows:

              (1) The superintendent of public instruction shall administer RCW 28A.630.860 through RCW 28A.630.880.

              (2) The ((academic and vocational integration development)) school-to-work transitions projects may be conducted for up to six years, if funds are provided.


              Sec. 606. RCW 28A.630.870 and 1992 c 137 s 7 are each amended to read as follows:

              (1) The superintendent of public instruction may accept, receive, and administer for the purposes of RCW 28A.630.860 through 28A.630.880 such gifts, grants, and contributions as may be provided from public and private sources for the purposes of RCW 28A.630.860 through 28A.630.880.

              (2) The ((academic and vocational integration development)) school-to-work transitions program account is hereby established in the custody of the state treasurer. The superintendent of public instruction shall deposit in the account all moneys received under this section. Moneys in the account may be spent only for the purposes of 28A.630.860 through 28A.630.880. Disbursements from this account shall be on the authorization of the superintendent of public instruction or the superintendent's designee. The account is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.


              Sec. 607. RCW 28A.630.874 and 1992 c 137 s 9 are each amended to read as follows:

              (1) The superintendent of public instruction, in coordination with the state board of education, the state board for community and technical colleges, the work force training and education coordinating board, and the higher education coordinating board, shall provide technical assistance to selected schools and shall develop a process that coordinates and facilitates linkages among participating school districts, secondary schools, junior high schools, middle schools, technical colleges, and colleges and universities.

              (2) The superintendent of public instruction and the state board of education may adopt rules under chapter 34.05 RCW as necessary to implement its duties under RCW 28A.630.860 through RCW 28A.630.880.


              Sec. 608. RCW 28A.630.876 and 1992 c 137 s 10 are each amended to read as follows:

              (1) The superintendent of public instruction shall report to the education committees of the legislature on the progress of the schools for the ((academic and vocational integration development)) school-to-work transitions program by December 15 of each odd-numbered year.

              (2) Each school district selected to participate in the academic and vocational integration development program shall submit an annual report to the superintendent of public instruction on the progress of the ((pilot)) project as a condition of receipt of continued funding.


              Sec. 609. RCW 28A.630.878 and 1992 c 137 s 11 are each amended to read as follows:

              The superintendent of public instruction, through the state clearinghouse for education information, shall collect and disseminate to all school districts and other interested parties information about the ((academic and vocational integration development pilot)) school-to-work transitions projects.


              Sec. 610. RCW 28A.630.880 and 1992 c 137 s 12 are each amended to read as follows:

              RCW 28A.630.860 through 28A.630.880 may be known and cited as the ((academic and vocational integration development)) school-to-work transitions program.


              NEW SECTION. Sec. 611. A new section is added to chapter 28A.630 RCW to read as follows:

              Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28A.630.862 through 28A.630.880.

              (1) "Integration of vocational and academic instruction" means an educational program that combines vocational and academic concepts into a single curriculum to increase the relevancy of course work, to strengthen and increase academic standards, and to enable students to apply knowledge and skills to career and educational objectives.

              (2) "School-to-work transition" means a restructuring effort which provides multiple learning options and seamless integrated pathways to increase all students' opportunities to pursue their career and educational interests.

              (3) "Work-based learning" means a competency-based educational experience that coordinates and integrates classroom instruction with structured, work site employment in which the student receives occupational training that advances student knowledge and skills in essential academic learning requirements.


              NEW SECTION. Sec. 612. RCW 28A.630.860 and 1992 c 137 s 1 are each repealed.


PART VII

TECHNOLOGY


              NEW SECTION. Sec. 701. The legislature recognizes the ongoing necessity for public schools to use up-to-date tools for learning to meet goals for education. To participate successfully in the contemporary workplace, students must be knowledgeable in the use of state of the art technologies and be able to access information electronically and efficiently. Workplace technology requirements will continue to change and schools must mirror these changes.

              Furthermore, the legislature finds that the Washington systemic initiative is a broad-based effort to promote widespread public literacy in mathematics, science, and technology. A critical component of the systemic initiative is the universal electronic access to information by students. It is the intent of the legislature that components of sections 702 through 706 of this act will support the state-wide systemic reform effort in mathematics, science, and technology as envisioned by the Washington systemic initiative.


              NEW SECTION. Sec. 702. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter and section 705 of this act.

              (1) "Education technology" or "technology" means the effective use of electronic and optical tools, including telephones, and electronic and optical pathways in meeting the student learning goals established in RCW 28A.150.210.

              (2) "Network" means integrated linking of education technology systems in schools for transmission of voice, data, video, or imaging, or a combination of these.


              NEW SECTION. Sec. 703. (1) The superintendent of public instruction shall develop and implement a Washington state K-12 education technology plan. The technology plan, which shall be completed by December 15, 1993, and updated on at least an annual basis, shall be developed to coordinate and expand the use of education technology in the common schools of the state. The plan shall be consistent with applicable provisions of chapter 43.105 RCW. The plan, at a minimum, shall address:

              (a) The provision of technical assistance to schools and school districts for the planning, implementation, and training of staff in the use of technology in curricular and administrative functions;

              (b) The continued development of a network to connect school districts, institutions of higher learning, and other sources of on-line information; and

              (c) Methods to equitably increase the use of education technology by students and school personnel throughout the state.

              (2) The superintendent of public instruction shall appoint an educational technology advisory committee to assist in the development and implementation of the technology plan in subsection (1) of this section. The committee shall include, but is not limited to, persons representing: The state board of education, the commission on student learning, the department of information services, educational service districts, school directors, school administrators, school principals, teachers, classified staff, higher education faculty, parents, students, business, labor, scientists and mathematicians, the higher education coordinating board, the work force training and education coordinating board, and the state library.


              NEW SECTION. Sec. 704. In conjunction with the plan required in section 703 of this act, the superintendent of public instruction shall prepare recommendations to the legislature regarding the development of a grant program for school districts for the purchase and installation of computers, computer software, telephones, and other types of education technology. The recommendations shall address methods to ensure equitable access to technology by students throughout the state, and methods to ensure that school districts have prepared technology implementation plans before applying for grant funds. The recommendations, with proposed legislation, shall be submitted to the appropriate committees of the legislature by December 15, 1993.


              NEW SECTION. Sec. 705. A new section is added to chapter 28A.310 RCW to read as follows:

              Educational service districts shall establish, subject to available funding, regional educational technology support centers for the purpose of providing ongoing educator training, school district cost-benefit analysis, long-range planning, network planning, distance learning access support, and other technical and programmatic support. Each educational service district shall establish a representative advisory council to advise the educational service district in the expenditure of funds provided to the technology support centers.


              NEW SECTION. Sec. 706. The superintendent of public instruction shall distribute appropriated funds to educational service districts on a grant basis for the regional educational technology support centers established in section 705 of this act.


              NEW SECTION. Sec. 707. The superintendent of public instruction shall distribute funds to the Washington school information processing cooperative and to school districts on a grant basis, from moneys appropriated for the purposes of this section, for equipment, networking, and software to expand the current K-12 education state-wide network.


              NEW SECTION. Sec. 708. (1) The superintendent of public instruction may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the superintendent of public instruction and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

              (2) The education technology fund is hereby established in the custody of the state treasurer. The superintendent of public instruction shall deposit in the fund all moneys received from gifts, grants, or endowments for education technology. Moneys in the fund may be spent only for education technology. Disbursements from the fund shall be on authorization of the superintendent of public instruction or the superintendent's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.


              NEW SECTION. Sec. 709. The superintendent of public instruction shall adopt rules as necessary under chapter 34.05 RCW governing the operation and scope of this chapter.


              NEW SECTION. Sec. 710. Sections 701 through 704 and 706 through 709 of this act shall constitute a new chapter in Title 28A RCW.


PART VIII

EDUCATOR PERFORMANCE ASSESSMENT


              Sec. 801. RCW 28A.410.030 and 1991 c 116 s 21 are each amended to read as follows:

              (1) Effective August 31, 1995, the state board of education shall require ((a uniform state admission to practice examination for)) teacher certification candidates((. Commencing August 31, 1993, teacher certification candidates completing a teacher preparation program shall be required)) to pass an ((admission to practice examination)) individual assessment before being granted an initial certificate. The ((examination)) assessment shall test knowledge and competence in subjects including, but not limited to, instructional skills, classroom management, ((and)) student behavior and development((. The examination shall consist primarily of essay questions)), oral and written language skills, student performance-based assessment skills, and other knowledge, skills, and attributes needed to be successful in assisting all students, including students with diverse and unique needs, in achieving mastery of the essential academic learning requirements established pursuant to RCW 28A.630.885. In administering the assessment, the state board shall address the needs of certification candidates who have specific learning disabilities, such as dyslexia.

              (2) The state board of education shall adopt such rules as may be necessary to implement this section, including, but not limited to, rules establishing the fees assessed persons who apply to take the assessment and the circumstances, if any, under which such fees may be refunded in whole or part. Fee revenues received under this section shall be deposited in the teacher assessment revolving fund hereby established in the custody of the state treasurer. The fund is subject to the allotment procedures provided under chapter 43.88 RCW, but no appropriation is required for disbursement. The superintendent of public instruction shall be responsible for administering the assessment program consistent with state board of education rules, and may enter into contracts for six or fewer years with public and private contracts to establish, equip, maintain, and operate the program, in whole or part. The superintendent of public instruction shall expend moneys from the teacher assessment revolving fund exclusively for the direct and indirect costs of establishing, equipping, maintaining, and operating the assessment program.


              NEW SECTION. Sec. 802. By August 31, 1997, the state board of education shall develop and implement a new system for approving educator preparation programs pursuant to RCW 28A.305.130(1). The new approval system shall be based primarily on how successful the graduates of each preparation program are in passing the individual performance-based assessment in RCW 28A.410.030.


PART IX

COORDINATED SCHOOL AND HUMAN SERVICES


              NEW SECTION. Sec. 901. A new section is added to chapter 28A.215 RCW to read as follows:

              (1) The purpose of this section is to enhance the quantity, quality, efficiency, and effectiveness of services for children and families in order to enable all children to arrive at school ready to learn throughout their educational experience.

              (2) From appropriated funds, the family policy council established in chapter 70.190 RCW shall provide grants for selected programs geographically distributed throughout the state to provide coordinated social, health, and educational services to children and families.

              (3) Coordinated educational, health, and social services shall be delivered in a manner that recognizes the need for strong and self-sufficient families and has as the ultimate goal the empowerment of parents to become the self-sufficient providers of care to their children.

              (4) In allocating funding under this section, the family policy council shall select and allocate funding to consortiums, as defined by RCW 70.190.010, for a service or services that are identified under a comprehensive plan that meets the requirements of chapter 70.190 RCW and that meets one or more of the following objectives:

              (a) Support services that recognize that every parent is the first and most essential teacher and that provide parents of newborn children with assistance to prepare their children to achieve success in school;

              (b) Strategies to ensure that children experience a safe and nurturing family environment;

              (c) Delivery of services that are culturally relevant and sensitive to the diverse nature of the community's population;

              (d) Strategies to ensure that all children have the skills, self-esteem, and support to make informed decisions about sex, drugs, alcohol, and other influences or activities that could obstruct their education and development.

              (5) The council shall ensure each of the objectives in subsection (4) of this section is included in at least one of the funded projects.


              Sec. 902. RCW 70.190.005 and 1992 c 198 s 1 are each amended to read as follows:

              The legislature finds that a primary goal of public involvement in the lives of children has been to strengthen the family unit.

              However, the legislature recognizes that traditional two-parent families with one parent routinely at home are now in the minority. In addition, extended family and natural community supports have eroded drastically. The legislature recognizes that public policy assumptions must be altered to account for this new social reality. Public effort must be redirected to expand, support, strengthen, and help refashion family and community associations to care for children.

              The legislature finds that a broad variety of services for children and families has been independently designed over the years and that the coordination and cost-effectiveness of these services will be enhanced through the adoption of a common approach to their delivery. The legislature further finds that the most successful programs for reaching and working with at-risk families and children treat individuals' problems in the context of the family, offer a broad spectrum of services, are flexible in the use of program resources, and use staff who are trained in crossing traditional program categories in order to broker services necessary to fully meet a family's needs.

              The legislature further finds that eligibility criteria, expenditure restrictions, and reporting requirements of state and federal categorical programs often create barriers toward the effective use of resources for addressing the multiple problems of at-risk families and children.

              The purposes of this chapter are (1) to modify public policy and programs to empower communities to support and respond to the needs of individual families and children ((and)), (2) to improve the responsiveness of services for children and families at risk by facilitating greater coordination and flexibility in the use of funds by state and local service agencies, and (3) to improve support services for children and families to enable all students to arrive at school ready to learn.


              Sec. 903. RCW 70.190.010 and 1992 c 198 s 3 are each amended to read as follows:

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

              (1) "Comprehensive plan" means a two-year plan that examines available resources and unmet needs for a school district, municipal, county, or multicounty area or areas, barriers that limit the effective use of resources, and a plan to address these issues that is broadly supported.

              (2) "Participating state agencies" means the office of the superintendent of public instruction, the department of social and health services, the department of health, the employment security department, the department of community development, and such other departments as may be specifically designated by the governor.

              (3) "Family policy council" or "council" means the superintendent of public instruction, the secretary of social and health services, the secretary of health, the commissioner of the employment security department, and the director of the department of community development or their designees, one legislator from each caucus of the senate and house of representatives, and one representative of the governor.

              (4) "((Outcome based)) Indicators" means defined and measurable ((outcomes and indicators that make it possible for communities to evaluate progress in meeting their goals and whether systems are fulfilling their responsibilities)) evaluative tools that assess the performance of the consortium in accomplishing the desired state and local outcomes.

              (5) "Matching funds" means an amount no less than twenty-five percent of the amount budgeted for a consortium's project. Up to half of the consortium's matching funds may be in-kind goods and services. Funding sources allowable for match include appropriate federal or local levy funds, fair start funds, private charitable funding, and other charitable giving. Basic education funds shall not be used as a match.

              (6) "Consortium" means a diverse group of individuals that includes at least representatives of local service providers, service recipients, local government administering or funding children or family service programs, participating state agencies, school districts, existing children's commissions, ethnic and racial minority populations, and other interested persons organized for the purpose of designing and providing collaborative and coordinated services under this chapter. Consortiums shall represent a county, multicounty, or municipal service area. In addition, consortiums may represent Indian tribes applying either individually or collectively.


              Sec. 904. RCW 70.190.030 and 1992 c 198 s 5 are each amended to read as follows:

              (1) The family policy council shall annually solicit from consortiums proposals to facilitate greater flexibility, coordination, and responsiveness of services at the community level. The council shall consider such proposals only if:

              (a) A comprehensive plan has been prepared by the consortium; and

              (b) The consortium has identified and agreed to contribute matching funds as specified in RCW 70.190.010; and

              (c) An interagency agreement has been prepared by the family policy council and the participating local service and support agencies that governs the use of funds, specifies the relationship of the project to the principles listed in RCW 74.14A.025, and identifies specific outcomes and indicators; and

              (d) Funds are to be used to provide support or services needed to implement a family's or child's case plan that are not otherwise adequately available through existing categorical services or community programs; (([and])) and

              (e) The consortium has provided written agreements that identify a lead agency that will assume fiscal and programmatic responsibility for the project, and ((identify)) has identified participants in a consortium council with broad participation and that shall have responsibility for ensuring effective coordination of resources; and

              (f) The consortium has designed into its comprehensive plan standards for accountability. Accountability standards include, but are not limited to, the public hearing process eliciting public comment about the appropriateness of the proposed comprehensive plan. The consortium must submit reports to the family policy council outlining the public response regarding the appropriateness and effectiveness of the comprehensive plan.

              (2) The family policy council may submit a prioritized list of projects recommended for funding in the governor's budget document.

              (3) The participating state agencies shall identify funds to implement the proposed projects from budget requests or existing appropriations for services to children and their families.

              (4) The family policy council shall propose broad state statutory goals for successful outcomes for children and families receiving services from consortiums. The family policy council shall report to the appropriate committees of the legislature on these recommendations before December 1, 1993. Upon adoption by the legislature of the broad state goals for successful children and family outcomes, the family policy council shall (a) develop methods to assist consortiums in establishing indicators of whether the desired outcomes are being accomplished, and (b) develop strategies to assist consortiums to achieve the state and community goals.

              (5) To the extent not inconsistent with federal law the family policy council may waive regulatory provisions related to health, mental health, protective services, and other children and family services that present barriers to meeting consortiums' outcome goals, that limit entities' abilities to collaborate effectively, and that inhibit the delivery of services to children and families. The council shall recommend to the legislature statutory changes necessary to eliminate such barriers.


PART X

DEREGULATION AND LEGISLATIVE OVERSIGHT


              NEW SECTION. Sec. 1001. (1) There is hereby created a joint select committee on education restructuring composed of twelve members as follows:

              (a) Six members of the senate, three from each of the major caucuses, to be appointed by the president of the senate; and

              (b) Six members of the house of representatives, three from each of the major caucuses, to be appointed by the speaker of the house of representatives.

              (2) The staff support shall be provided by the senate committee services and the office of program research as mutually agreed by the cochairs of the joint select committee. The cochairs shall be designated by the speaker of the house of representatives and the president of the senate.

              (3) The expenses of the committee members shall be paid by the legislature.

              (4) The committee shall seek input from educators, business and labor leaders, parents, and others during its deliberations.


              NEW SECTION. Sec. 1002. The joint select committee on education restructuring shall monitor, review, and periodically report upon the enactment and implementation of education restructuring in Washington both at the state and local level, including the following:

              (1) The progress of the commission on student learning in the completion of its tasks as designated in RCW 28A.630.885 and in any subsequent legislation relating to education restructuring;

              (2) The success of the center for improvement of student learning established under section 501 of this act;

              (3) The state board of education's implementation of new educator performance assessments required in RCW 28A.410.030, and whether such requirements as implemented are actually consistent with higher student achievement envisioned under a performance-based education system;

              (4) The number of school districts seeking waivers from basic education act requirements under RCW 28A.305.140 or other legislation, and the success of alternative programs pursued by those school districts;

              (5) The progress and success of the commission on student learning, the superintendent of public instruction, the state board of education, the higher education coordinating board, and the state board for community and technical colleges in carrying out RCW 28A.630.885(3)(g), and any subsequent legislation relating to education restructuring; and

              (6) Such other areas as the committee may deem appropriate.


              NEW SECTION. Sec. 1003. In addition to the duties in section 1002 of this act, the select committee on education restructuring shall:

              (1) Review all laws pertaining to K-12 public education and to educator preparation and certification, except those that protect the health, safety, and civil rights of students and staff, with the intent of identifying laws that inhibit the achievement of the new system of performance-based education. As a result of the review, the select committee shall, by November 15, 1994, present proposed legislation that repeals or modifies those laws that inhibit the new system of performance-based education to the appropriate committees of the legislature; and

              (2) By October 31, 1995, develop recommendations and proposed legislation, as appropriate, to create a new student performance-based funding system to be implemented, if adopted by the legislature, beginning in the 1998-99 school year. The funding system shall be developed to enhance the performance-based education system as outlined in chapter . . ., Laws of 1993 (this act). It shall allow for local control and maximum flexibility, and it shall affirm the constitutional "paramount duty" of the state to provide an education for all of its children. It shall emphasize student mastery of the student learning goals rather than input formulas, and shall be ample, flexible, stable, equitable, simple, and accountable. The formula shall be structured to provide and encourage local flexibility, creativity, and decision making. The formula shall support every student with varying abilities and shall ensure that every student will have equitable opportunities to achieve the essential academic learning requirements. Special provisions shall be made for students who have more difficulty in mastering the essential academic learning requirements, and for highly capable students. The formula shall comply with the state Constitution and federal law and funding requirements. The formula shall reflect the state's responsibility to fully fund a basic education.


              NEW SECTION. Sec. 1004. By September 1, 1994, and each September 1st thereafter, the commission on student learning, the superintendent of public instruction, the state board of education, the higher education coordinating board, and the state board for community and technical colleges shall each report to the joint select committee on education restructuring regarding their progress in completing tasks as designated in chapter . . ., Laws of 1993 (this act), and tasks in any subsequent legislation relating to education restructuring.


              NEW SECTION. Sec. 1005. The joint select committee on education restructuring shall report its initial findings to the legislature by December 31, 1993, and shall annually report its findings thereafter until December 31, 1998, at which time the committee shall make its final report.


              Sec. 1006. RCW 28A.225.220 and 1990 1st ex.s. c 9 s 201 are each amended to read as follows:

              (1) Any board of directors may make agreements with adults choosing to attend school: PROVIDED, That unless such arrangements are approved by the state superintendent of public instruction, a reasonable tuition charge, fixed by the state superintendent of public instruction, shall be paid by such students as best may be accommodated therein.

              (2) A district is strongly encouraged to honor the request of a parent or guardian for his or her child to attend a school in another district.

              (3) A district shall release a student to a nonresident district that agrees to accept the student if:

              (a) A financial, educational, safety, or health condition affecting the student would likely be reasonably improved as a result of the transfer; or

              (b) Attendance at the school in the nonresident district is more accessible to the parent's place of work or to the location of child care; or

              (c) There is a special hardship or detrimental condition.

              (4) A district may deny the request of a resident student to transfer to a nonresident district if the release of the student would adversely affect the district's existing desegregation plan.

              (5) For the purpose of helping a district assess the quality of its education program, a resident school district may request an optional exit interview or questionnaire with the parents or guardians of a child transferring to another district. No parent or guardian may be forced to attend such an interview or complete the questionnaire.

              (6) Beginning with the 1993-94 school year, school districts may ((establish annual)) not charge transfer fees or tuition for nonresident students enrolled under subsection (3) of this section and RCW 28A.225.225. ((Until rules are adopted under section 202, chapter 9, Laws of 1990 1st ex. sess. for the calculation of the transfer fee, the transfer fee shall be calculated by the same formula as the fees authorized under section 10, chapter 130, Laws of 1969. These fees, if applied, shall be applied uniformly for all such nonresident students except as provided in this section. The superintendent of public instruction, from available funds, shall pay any transfer fees for low-income students assessed by districts under this section. All transfer fees must be paid over to the county treasurer within thirty days of its collection for the credit of the district in which such students attend.)) Reimbursement of a high school district for cost of educating high school pupils of a nonhigh school district shall not be deemed a transfer fee as affecting the apportionment of current state school funds.


              NEW SECTION. Sec. 1007. Sections 1001 through 1005 of this act are each added to chapter 28A.630 RCW.


              NEW SECTION. Sec. 1008. Sections 1001 through 1005 of this act shall expire January 1, 1999.


PART XI

PRIVATE SCHOOL AND HOME SCHOOL STUDENT EXEMPTIONS


              Sec. 1101. RCW 28A.195.010 and 1992 c 141 s 505 are each amended to read as follows:

              The legislature hereby recognizes that private schools should be subject only to those minimum state controls necessary to ensure the health and safety of all the students in the state and to ensure a sufficient basic education to meet usual graduation requirements. The state, any agency or official thereof, shall not restrict or dictate any specific educational or other programs for private schools except as hereinafter in this section provided.

              Principals of private schools or superintendents of private school districts shall file each year with the state superintendent of public instruction a statement certifying that the minimum requirements hereinafter set forth are being met, noting any deviations. After review of the statement, the state superintendent will notify schools or school districts of those deviations which must be corrected. In case of major deviations, the school or school district may request and the state board of education may grant provisional status for one year in order that the school or school district may take action to meet the requirements. Minimum requirements shall be as follows:

              (1) The minimum school year for instructional purposes shall consist of no less than one hundred eighty school days or the equivalent in annual minimum instructional hour offerings as prescribed in RCW 28A.150.220.

              (2) All classroom teachers shall hold appropriate Washington state certification except as follows:

              (a) Teachers for religious courses or courses for which no counterpart exists in public schools shall not be required to obtain a state certificate to teach those courses.

              (b) In exceptional cases, people of unusual competence but without certification may teach students so long as a certified person exercises general supervision. Annual written statements shall be submitted to the office of the superintendent of public instruction reporting and explaining such circumstances.

              (3) An approved private school may operate an extension program for parents, guardians, or persons having legal custody of a child to teach children in their custody. The extension program shall require at a minimum that:

              (a) The parent, guardian, or custodian be under the supervision of an employee of the approved private school who is certified under chapter 28A.410 RCW;

              (b) The planning by the certified person and the parent, guardian, or person having legal custody include objectives consistent with this subsection and subsections (1), (4), (5), and (6) of this section;

              (c) The certified person spend a minimum average each month of one contact hour per week with each student under his or her supervision who is enrolled in the approved private school extension program;

              (d) Each student's progress be evaluated by the certified person; and

              (e) The certified employee shall not supervise more than thirty students enrolled in the approved private school's extension program.

              (4) Appropriate measures shall be taken to safeguard all permanent records against loss or damage.

              (5) The physical facilities of the school or district shall be adequate to meet the program offered by the school or district: PROVIDED, That each school building shall meet reasonable health and fire safety requirements. A residential dwelling of the parent, guardian, or custodian shall be deemed to be an adequate physical facility when a parent, guardian, or person having legal custody is instructing his or her child under subsection (3) of this section.

              (6) Private school curriculum shall include, but not be limited to, instruction in the basic skills of occupational education, science, mathematics, language, social studies, history, health, reading, writing, spelling, and the development of appreciation of art and music, all in sufficient units ((so that students are able to master the essential academic learning requirements under RCW 28A.630.885 and meet)) for meeting state board of education graduation requirements. However, the state board shall not require private school students to obtain a certificate of mastery to graduate from high school, to master the essential academic learning requirements, or to be assessed pursuant to RCW 28A.630.885. However, private schools may choose, on a voluntary basis, to have their students master these essential academic learning requirements, take these assessments, and obtain certificates of mastery.

              (7) Each school or school district shall be required to maintain up-to-date policy statements related to the administration and operation of the school or school district.

              All decisions of policy, philosophy, selection of books, teaching material, curriculum, except as provided in subsection (6) of this section, school rules and administration, or other matters not specifically referred to in this section, shall be the responsibility of the administration and administrators of the particular private school involved.


              Sec. 1102. RCW 28A.200.010 and 1990 c 33 s 178 are each amended to read as follows:

              Each parent whose child is receiving home-based instruction under RCW 28A.225.010(4) shall have the duty to:

              (1) File annually a signed declaration of intent that he or she is planning to cause his or her child to receive home-based instruction. The statement shall include the name and age of the child, shall specify whether a certificated person will be supervising the instruction, and shall be written in a format prescribed by the superintendent of public instruction. Each parent shall file the statement by September 15 of the school year or within two weeks of the beginning of any public school quarter, trimester, or semester with the superintendent of the public school district within which the parent resides;

              (2) Ensure that test scores or annual academic progress assessments and immunization records, together with any other records that are kept relating to the instructional and educational activities provided, are forwarded to any other public or private school to which the child transfers. At the time of a transfer to a public school, the superintendent of the local school district in which the child enrolls may require a standardized achievement test to be administered and shall have the authority to determine the appropriate grade and course level placement of the child after consultation with parents and review of the child's records; and

              (3) Ensure that a standardized achievement test approved by the state board of education is administered annually to the child by a qualified individual or that an annual assessment of the student's academic progress is written by a certificated person who is currently working in the field of education. The board shall not require these children to master the essential academic learning requirements, to take the assessments, or to obtain a certificate of mastery pursuant to RCW 28A.630.885. The standardized test administered or the annual academic progress assessment written shall be made a part of the child's permanent records. If, as a result of the annual test or assessment, it is determined that the child is not making reasonable progress consistent with his or her age or stage of development, the parent shall make a good faith effort to remedy any deficiency.

              Failure of a parent to comply with the duties in this section shall be deemed a failure of such parent's child to attend school without valid justification under RCW 28A.225.020. Parents who do comply with the duties set forth in this section shall be presumed to be providing home-based instruction as set forth in RCW 28A.225.010(4).


              NEW SECTION. Sec. 1103. Section 1101 of this act shall take effect September 1, 1998. However, this section shall not take effect if, by September 1, 1998, a law is enacted stating that a school accountability and academic assessment system is not in place.


PART XII

MISCELLANEOUS


              NEW SECTION. Sec. 1201. RCW 28A.630.884 and 1992 c 141 s 201 are each repealed.


              NEW SECTION. Sec. 1202. Sections 201 and 202 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.


              NEW SECTION. Sec. 1203. Part headings as used in this act constitute no part of the law.


              NEW SECTION. Sec. 1204. If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1993, in the omnibus appropriations act, this act is null and void."


              Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Brumsickle; Carlson; Eide; G. Fisher; Hansen; Holm; Jones; Karahalios; J. Kohl; Patterson; Pruitt; Roland; and Vance.


              MINORITY Recommendation: Do not pass. Signed by Representative Stevens.


              Excused: Representative G. Cole.


              Referred to Committee on Appropriations.


April 1, 1993

SB 5324              Prime Sponsor, Pelz: Correcting a double amendment related to reimbursement of school transportation costs. Reported by Committee on Education


              MAJORITY recommendation: Do pass. Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Brumsickle; Carlson; Eide; G. Fisher; Hansen; Holm; Jones; Karahalios; J. Kohl; Patterson; Pruitt; Roland; Stevens; and Vance.


              Excused: Representative G. Cole.


              Passed to Committee on Rules for second reading.


March 30, 1993

SSB 5332            Prime Sponsor, Committee on Ecology & Parks: Permitting the establishment of an underwater parks system. Reported by Committee on Natural Resources & Parks


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, line 21, after "appropriation." insert "Before implementing a fee program for underwater park uses, the commission shall submit to the appropriate committees of the legislature an estimate of what the fees would be and a plan for collecting these fees."


              On page 2, strike lines 29 through 30 and insert the following:

              "NEW SECTION. Sec. 5. The commission is not liable for unintentional injuries to users of underwater parks, whether the facilities are administered by the commission or by another entity or person. However, nothing in this section prevents the liability of the commission for injuries sustained by a user by reason of a known dangerous artificial latent condition for which warning signs have not been conspicuously posted.

              NEW SECTION. Sec. 6. Sections 1 through 5 of this act are each added to chapter 43.51 RCW."


              Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Dunshee; Linville; Schoesler; Sheldon; Thomas; Valle; and Wolfe.


              Referred to Committee on Appropriations.


April 1, 1993

ESB 5355            Prime Sponsor, Vognild: Extending the prohibition on mandatory local measured service. Reported by Committee on Energy & Utilities


              MAJORITY recommendation: Do pass with the following amendment:


              On page 3, after line 17, insert:

              "NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."


              Signed by Representatives Grant, Chair; Finkbeiner, Vice Chair; Casada, Ranking Minority Member; Miller, Assistant Ranking Minority Member; Johanson; Kessler; Kremen; Long; and Ludwig.


              Passed to Committee on Rules for second reading.


March 31, 1993

SB 5375              Prime Sponsor, Bauer: Regulating personal service contracts. Reported by Committee on State Government


              MAJORITY recommendation: Do pass. Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5390            Prime Sponsor, Committee on Energy & Utilities: Relating to conservation tariffs allowing transfer of payment obligations to successive property owners. Reported by Committee on Energy & Utilities


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert:

              "NEW SECTION. Sec. 1. (1) The legislature finds that:

              (a) The ability of utilities to acquire cost effective conservation measures is instrumental in assuring that Washington citizens have reasonable energy rates and that utilities have adequate energy resources to meet future energy demands;

              (b) Customers may be more willing to accept investments in energy efficiency and conservation if real and perceived impediments to property transactions are avoided;

              (c) Potential purchasers of real property should be notified of any utility conservation charges at the earliest point possible in the sale.

              (2) It is the intent of the legislature to encourage utilities to develop innovative approaches designed to promote energy efficiency and conservation that have limited rate impacts on utility customers. It is not the intent of the legislature to restrict the authority of the utilities and transportation commission to approve tariff schedules.

              (3) It is also the intent of the legislature that utilities which establish conservation tariffs should undertake measures to assure that potential purchasers of property are aware of the existence of any conservation tariffs. Measures that may be considered include, but are not limited to:

              (a) Recording notification of conservation tariff obligations with a legal description with the county property records;

              (b) Annually notifying customers who have entered agreements of the conservation tariff obligation;

              (c) Working with the real estate industry to provide for disclosure of conservation tariff obligations in standardized listing agreements and earnest money agreements; and

              (d) Working with title insurance companies to provide recorded conservation tariff obligations as an informational note to the preliminary commitment for a policy of title insurance.


              NEW SECTION. Sec. 2. A new section is added to chapter 80.28 RCW to read as follows:

              (1) Upon request by an electrical or gas company, the commission may approve a tariff schedule that contains rates or charges for energy conservation measures, services, or payments provided to individual property owners or customers. The tariff schedule shall require the electrical or gas company to enter into an agreement with the property owner or customer receiving services at the time the conservation measures, services, or payments are initially provided. The tariff schedule may allow for the payment of the rates or charges over a period of time and for the application of the payment obligation to successive property owners or customers at the premises where the conservation measures or services were installed or performed or with respect to which the conservation payments were made.

              (2) The electrical or gas company shall record a notice of a payment obligation with a legal description resulting from an agreement under this section with the county auditor or recording officer as provided in RCW 65.04.030.

              (3) The commission may prescribe by rule other methods by which an electrical or gas company shall notify property owners or customers of any such payment obligation.


              NEW SECTION. Sec. 3. A new section is added to chapter 64.04 RCW to read as follows:

              Prior to closing, the seller of real property subject to a rate or charge for energy conservation measures, services, or payments provided under a tariff approved by the utilities and transportation commission pursuant to section 2 of this act shall disclose to the purchaser of the real property the existence of the obligation and the possibility that the purchaser may be responsible for the payment obligation.


              NEW SECTION. Sec. 4. A new section is added to chapter 48.29 RCW to read as follows:

              A title insurer may disclose as an informational note to a preliminary commitment for a policy of title insurance the existence of a notice of payment obligation provided for under section 2 of this act. Neither the inclusion nor the exclusion of such an informational note shall create any liability against the title insurer under a preliminary commitment for title insurance, policy or otherwise."


              Signed by Representatives Grant, Chair; Finkbeiner, Vice Chair; Casada, Ranking Minority Member; Miller, Assistant Ranking Minority Member; Johanson; Kessler; Kremen; Long; and Ludwig.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5405            Prime Sponsor, Committee on Education: Raising the minimum dollar amount requiring competitive bidding by school districts. Reported by Committee on Education


              MAJORITY recommendation: Do pass. Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Eide; G. Fisher; Holm; Jones; Karahalios; J. Kohl; Patterson; Pruitt; and Roland.


              MINORITY recommendation: Do not pass. Signed by Representatives Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Brumsickle; and Vance.


              Excused: Representatives G. Cole, Carlson, Hansen and Stevens.


              Referred to Committee on Appropriations.


March 31, 1993

ESB 5411            Prime Sponsor, Vognild: Modifying provisions regarding fuel taxes. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Passed to Committee on Rules for second reading.


March 31, 1993

ESSB 5515          Prime Sponsor, Committee on Labor & Commerce: Changing provisions relating to industrial insurance claims. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Conway; King; Springer; and Veloria.


              MINORITY recommendation: Do not pass. Signed by Representatives Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; and Horn.


              Passed to Committee on Rules for second reading.


March 31, 1993

SSB 5535            Prime Sponsor, Committee on Transportation: Taxing large trucks. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Passed to Committee on Rules for second reading.


March 31, 1993

ESB 5545            Prime Sponsor, Williams: Modifying qualifications for registered architects. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass with the following amendment:


              On page 1, line 17, after "board" insert ", which may include designing buildings as a principal activity"


              On page 1, beginning on line 18, after "must be" strike "under the direct supervision of" and insert "((under the direct supervision of)) supervised by"


              On page 1, line 19, after "architect" insert "with detailed professional knowledge of the work of the applicant"


              On page 2, beginning on line 1, after "(b)" strike all material through "(c)" on line 4


              On page 2, at the beginning of line 9, strike "(((c))) (d)" and insert "(c)"

              On page 2, after line 21, insert the following:


              "Sec. 2. RCW 18.08.350 and 1993 c ... s 1 (section 1 of this act) are each amended to read as follows:

              (1) A certificate of registration shall be granted by the director to all qualified applicants who are certified by the board as having passed the required examination and as having given satisfactory proof of completion of the required experience.

              (2) Applications for examination shall be filed as the board prescribes by rule. The application and examination fees shall be determined by the director under RCW 43.24.086.

              (3) An applicant for registration as an architect shall be of a good moral character, at least eighteen years of age, and shall possess any of the following qualifications:

              (a) Have an accredited architectural degree and three years' practical architectural work experience approved by the board, which may include designing buildings as a principal activity. At least two years' work experience must be supervised by an architect with detailed professional knowledge of the work of the applicant; or

              (b) Have eight years' practical architectural work experience approved by the board. Each year spent in an accredited architectural program approved by the board shall be considered one year of practical experience. At least four years' practical work experience shall be under the direct supervision of an architect((; or

              (c) Be a person who has been designing buildings as a principal activity for eight years, or has an equivalent combination of education and experience, but who was not registered under chapter 323, Laws of 1959, as amended, as it existed before July 28, 1992, provided that application is made within four years after July 28, 1992. Nothing in this chapter prevents such a person from designing buildings for four years after July 28, 1992, or the five-year period allowed for completion of the examination process, after that person has applied for registration. A person who has been designing buildings and is qualified under this subsection shall, upon application to the board of registration for architects, be allowed to take the examination for architect registration on an equal basis with other applicants)).


              NEW SECTION. Sec. 3. Section 2 of this act shall take effect July 29, 2001."


              Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5556            Prime Sponsor, Committee on Education: Changing provisions relating to state schools for the blind, deaf, and sensory impaired. Reported by Committee on Education


              MAJORITY recommendation: Do pass with the following amendment:


              On page 4, line 34, after "schools" strike "on a contractual basis with students, parents, or both"


              Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Brumsickle; Carlson; Eide; G. Fisher; Hansen; Holm; Jones; Karahalios; J. Kohl; Patterson; Pruitt; Roland; Stevens; and Vance.


              Excused: Representative G. Cole.


              Passed to Committee on Rules for second reading.


March 31, 1993

SSB 5557            Prime Sponsor, Committee on Labor & Commerce: Regulating alcohol servers. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "Sec. 1. RCW 66.04.010 and 1991 c 192 s 1 are each amended to read as follows:

              In this title, unless the context otherwise requires:

              (1) "Alcohol" is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation or distillation of grain, starch, molasses, or sugar, or other substances including all dilutions and mixtures of this substance. The term "alcohol" does not include alcohol in the possession of a manufacturer or distiller of alcohol fuel, as described in RCW 66.12.130, which is intended to be denatured and used as a fuel for use in motor vehicles, farm implements, and machines or implements of husbandry.

              (2) "Alcohol server" means any person serving or selling alcohol, spirits, wines, or beer for consumption at an on-premises retail licensed facility as a regular requirement of his or her employment, and shall include those persons eighteen years of age or older permitted by the liquor laws of this state to serve alcoholic beverages with meals.

              (3) "Beer" means any malt beverage or malt liquor as these terms are defined in this chapter.

              (((3))) (4) "Brewer" means any person engaged in the business of manufacturing beer and malt liquor.

              (((4))) (5) "Board" means the liquor control board, constituted under this title.

              (((5))) (6) "Club" means an organization of persons, incorporated or unincorporated, operated solely for fraternal, benevolent, educational, athletic or social purposes, and not for pecuniary gain.

              (((6))) (7) "Consume" includes the putting of liquor to any use, whether by drinking or otherwise.

              (((7))) (8) "Dentist" means a practitioner of dentistry duly and regularly licensed and engaged in the practice of his profession within the state pursuant to chapter 18.32 RCW.

              (((8))) (9) "Distiller" means a person engaged in the business of distilling spirits.

              (((9))) (10) "Druggist" means any person who holds a valid certificate and is a registered pharmacist and is duly and regularly engaged in carrying on the business of pharmaceutical chemistry pursuant to chapter 18.64 RCW.

              (((10))) (11) "Drug store" means a place whose principal business is, the sale of drugs, medicines and pharmaceutical preparations and maintains a regular prescription department and employs a registered pharmacist during all hours the drug store is open.

              (((11))) (12) "Employee" means any person employed by the board, including a vendor, as hereinafter in this section defined.

              (((12))) (13) "Fund" means 'liquor revolving fund.'

              (((13))) (14) "Hotel" means every building or other structure kept, used, maintained, advertised or held out to the public to be a place where food is served and sleeping accommodations are offered for pay to transient guests, in which twenty or more rooms are used for the sleeping accommodation of such transient guests and having one or more dining rooms where meals are served to such transient guests, such sleeping accommodations and dining rooms being conducted in the same building and buildings, in connection therewith, and such structure or structures being provided, in the judgment of the board, with adequate and sanitary kitchen and dining room equipment and capacity, for preparing, cooking and serving suitable food for its guests: PROVIDED FURTHER, That in cities and towns of less than five thousand population, the board shall have authority to waive the provisions requiring twenty or more rooms.

              (((14))) (15) "Imprisonment" means confinement in the county jail.

              (((15))) (16) "Liquor" includes the four varieties of liquor herein defined (alcohol, spirits, wine and beer), and all fermented, spirituous, vinous, or malt liquor, or combinations thereof, and mixed liquor, a part of which is fermented, spirituous, vinous or malt liquor, or otherwise intoxicating; and every liquid or solid or semisolid or other substance, patented or not, containing alcohol, spirits, wine or beer, and all drinks or drinkable liquids and all preparations or mixtures capable of human consumption, and any liquid, semisolid, solid, or other substance, which contains more than one percent of alcohol by weight shall be conclusively deemed to be intoxicating. Liquor does not include confections or food products that contain one percent or less of alcohol by weight.

              (((16))) (17) "Manufacturer" means a person engaged in the preparation of liquor for sale, in any form whatsoever.

              (((17))) (18) "Malt beverage" or "malt liquor" means any beverage such as beer, ale, lager beer, stout, and porter obtained by the alcoholic fermentation of an infusion or decoction of pure hops, or pure extract of hops and pure barley malt or other wholesome grain or cereal in pure water containing not more than eight percent of alcohol by weight, and not less than one-half of one percent of alcohol by volume. For the purposes of this title, any such beverage containing more than eight percent of alcohol by weight shall be referred to as "strong beer."

              (((18))) (19) "Package" means any container or receptacle used for holding liquor.

              (((19))) (20) "Permit" means a permit for the purchase of liquor under this title.

              (((20))) (21) "Person" means an individual, copartnership, association, or corporation.

              (((21))) (22) "Physician" means a medical practitioner duly and regularly licensed and engaged in the practice of his profession within the state pursuant to chapter 18.71 RCW.

              (((22))) (23) "Prescription" means a memorandum signed by a physician and given by him to a patient for the obtaining of liquor pursuant to this title for medicinal purposes.

              (((23))) (24) "Public place" includes streets and alleys of incorporated cities and towns; state or county or township highways or roads; buildings and grounds used for school purposes; public dance halls and grounds adjacent thereto; those parts of establishments where beer may be sold under this title, soft drink establishments, public buildings, public meeting halls, lobbies, halls and dining rooms of hotels, restaurants, theatres, stores, garages and filling stations which are open to and are generally used by the public and to which the public is permitted to have unrestricted access; railroad trains, stages, and other public conveyances of all kinds and character, and the depots and waiting rooms used in conjunction therewith which are open to unrestricted use and access by the public; publicly owned bathing beaches, parks, and/or playgrounds; and all other places of like or similar nature to which the general public has unrestricted right of access, and which are generally used by the public.

              (((24))) (25) "Regulations" means regulations made by the board under the powers conferred by this title.

              (((25))) (26) "Restaurant" means any establishment provided with special space and accommodations where, in consideration of payment, food, without lodgings, is habitually furnished to the public, not including drug stores and soda fountains.

              (27) "Retail licensed premises" means any premises licensed to sell alcohol by the glass or by the drink, or in original containers primarily for consumption on the premises as authorized by RCW 66.24.320, 66.24.330, 66.24.340, 66.24.350, 66.24.400, 66.24.425, 66.24.490, and 66.24.495. Domestic wineries holding class C licenses shall not be classified as retail licensed premises for purposes of this act.

              (((26))) (28) "Sale" and "sell" include exchange, barter, and traffic; and also include the selling or supplying or distributing, by any means whatsoever, of liquor, or of any liquid known or described as beer or by any name whatever commonly used to describe malt or brewed liquor or of wine, by any person to any person; and also include a sale or selling within the state to a foreign consignee or his agent in the state. "Sale" and "sell" shall not include the giving, at no charge, of a reasonable amount of liquor by a person not licensed by the board to a person not licensed by the board, for personal use only. "Sale" and "sell" also does not include a raffle authorized under RCW 9.46.0315: PROVIDED, That the nonprofit organization conducting the raffle has obtained the appropriate permit from the board.

              (((27))) (29) "Soda fountain" means a place especially equipped with apparatus for the purpose of dispensing soft drinks, whether mixed or otherwise.

              (((28))) (30) "Spirits" means any beverage which contains alcohol obtained by distillation, including wines exceeding twenty-four percent of alcohol by volume.

              (((29))) (31) "Store" means a state liquor store established under this title.

              (((30))) (32) "Tavern" means any establishment with special space and accommodation for sale by the glass and for consumption on the premises, of beer, as herein defined.

              (((31))) (33) "Vendor" means a person employed by the board as a store manager under this title.

              (((32))) (34) "Winery" means a business conducted by any person for the manufacture of wine for sale, other than a domestic winery.

              (((33))) (35) "Domestic winery" means a place where wines are manufactured or produced within the state of Washington.

              (((34))) (36) "Wine" means any alcoholic beverage obtained by fermentation of fruits (grapes, berries, apples, et cetera) or other agricultural product containing sugar, to which any saccharine substances may have been added before, during or after fermentation, and containing not more than twenty-four percent of alcohol by volume, including sweet wines fortified with wine spirits, such as port, sherry, muscatel and angelica, not exceeding twenty-four percent of alcohol by volume and not less than one-half of one percent of alcohol by volume. For purposes of this title, any beverage containing no more than fourteen percent of alcohol by volume when bottled or packaged by the manufacturer shall be referred to as "table wine," and any beverage containing alcohol in an amount more than fourteen percent by volume when bottled or packaged by the manufacturer shall be referred to as "fortified wine." However, "fortified wine" shall not include: (a) Wines that are both sealed or capped by cork closure and aged two years or more; and (b) wines that contain more than fourteen percent alcohol by volume solely as a result of the natural fermentation process and that have not been produced with the addition of wine spirits, brandy, or alcohol.

              This subsection shall not be interpreted to require that any wine be labeled with the designation "table wine" or "fortified wine."

              (((35))) (37) "Beer wholesaler" means a person who buys beer from a brewer or brewery located either within or beyond the boundaries of the state for the purpose of selling the same pursuant to this title, or who represents such brewer or brewery as agent.

              (((36))) (38) "Wine wholesaler" means a person who buys wine from a vintner or winery located either within or beyond the boundaries of the state for the purpose of selling the same not in violation of this title, or who represents such vintner or winery as agent.


              Sec. 2. RCW 66.44.270 and 1987 c 458 s 3 are each amended to read as follows:

              (1) It is a gross misdemeanor for any person to sell, give, or otherwise supply liquor to any person under the age of twenty-one years or permit any person under that age to consume liquor on his or her premises or on any premises under his or her control, with knowledge that the person receiving or consuming the liquor is under the age of twenty-one years. A minimum fine of two hundred fifty dollars shall be imposed on any person who is convicted of a violation of this subsection.

              (2) It is ((unlawful)) a misdemeanor for any person to sell, give, or otherwise supply liquor to any person under the age of twenty-one years or permit any person under that age to consume liquor on his or her premises or on any premises under his or her control, without knowledge of the fact that the person receiving or consuming the liquor is under the age of twenty-one years.

              (((2))) (3) It is unlawful for any person under the age of twenty-one years to possess, consume, or otherwise acquire any liquor.

              (((3))) (4) This section does not apply to liquor given or permitted to be given to a person under the age of twenty-one years by a parent or guardian and consumed in the presence of the parent or guardian. This subsection shall not authorize consumption or possession of liquor by a person under the age of twenty-one years on any premises licensed under chapter 66.24 RCW.

              (((4))) (5) This section does not apply to liquor given for medicinal purposes to a person under the age of twenty-one years by a parent, guardian, physician, or dentist.

              (((5))) (6) This section does not apply to liquor given to a person under the age of twenty-one years when such liquor is being used in connection with religious services and the amount consumed is the minimal amount necessary for the religious service.

              (((6))) (7) Conviction or forfeiture of bail for a violation of this section by a person under the age of twenty-one years at the time of such conviction or forfeiture shall not be a disqualification of that person to acquire a license to sell or dispense any liquor after that person has attained the age of twenty-one years.


              NEW SECTION. Sec. 3. A new section is added to chapter 66.44 RCW to read as follows:

              It is a gross misdemeanor for a person to knowingly present the identification of another person or a forged, fraudulent, altered, counterfeit, or otherwise false identification card to acquire, possess, purchase, or obtain liquor. A minimum fine of two hundred fifty dollars shall be imposed on any person who is convicted of a violation of this section.


              Sec. 4. RCW 66.44.310 and 1981 1st ex.s. c 5 s 24 are each amended to read as follows:

              (1) Except as otherwise provided by RCW 66.44.270, 66.44.316, and 66.44.350((,)) it shall be a misdemeanor((,)):

              (a) To serve or allow to remain on the premises of any tavern, or cocktail lounge portion of any class H licensed premises, any person under the age of twenty-one years;

              (b) For any person under the age of twenty-one years to enter or remain on the premises of any tavern, or cocktail lounge portion of any public class H licensed premises; or

              (c) For any person under the age of twenty-one years to represent his or her age as being twenty-one or more years for the purpose of securing admission to, or remaining on the premises of, any tavern or cocktail lounge portion of any class H licensed premises.

              (2) The Washington state liquor control board shall have the power and it shall be its duty to classify the various licensees, as taverns or otherwise, within the meaning of this title, except bona fide restaurants, dining rooms and cafes serving commercial food to the public shall not be classified as taverns during the hours such food service is made available to the public.


              NEW SECTION. Sec. 5. A new section is added to chapter 66.20 RCW to read as follows:

              (1) There is an alcohol seller permit to be known as a class 12 permit, authorizing the holder to provide the services of an alcohol server for a period of five years or more for the initial permit and renewable every five years thereafter. The permit shall be in a form prescribed by the board.

              (a) Training requirements for persons seeking the class 12 permit will be established by the board.

              (b) Training for a class 12 permit must be through a board-certified program provided by the licensee, labor organizations, independent contractors, private or public schools, or licensee associations, such as the nationally recognized training for intervention programs or techniques in alcohol management programs or by the board itself. The board shall offer the option of live classroom training or a videotaped training session produced and distributed by the board.

              (c) Multiple copies of the videotape will be made available by the board at a nominal fee to cover the cost of reproduction and shipment with any fees so collected being deposited in the liquor revolving fund.

              (d) Every class 12 permit issued shall be issued in the name of the applicant and no other person shall use the permit of another permit holder. The holder shall present the permit upon request to inspection by any representative of the liquor control board or peace officer.

              (e) No licensee shall employ or accept the services of an alcohol server, as defined in RCW 66.04.010, without the alcohol server first having taken the training and examination for a class 12 permit. The board shall correct the examination and issue a permit for anyone successfully completing the examination within thirty days from the date the person commences work for the licensee. An individual may sell or serve liquor during the time which the board takes to process the permit. An individual may retake the examination any time after being notified by the board that he or she has failed the examination. However, an individual may not sell or serve liquor more than thirty days after completing the training requirements unless he or she has obtained a valid class 12 permit, or if the board has failed to correct the examination and issue a permit within thirty days after receiving the examination.

              (2) Every permit issued under this section is valid for a period of at least five years unless earlier denied, suspended, or revoked. A person whose permit has been denied, suspended, or revoked shall immediately return the permit to the board.

              (3) The board may suspend the permit of a permittee who has been convicted of two or more violations of RCW 66.44.270(2) or 66.44.200 or one or more violations of RCW 66.44.270(1). Subsequent convictions may result in revocation of the permit.

              (4)(a) It is a violation of this title for a licensee or permittee to allow or require an employee to provide the services of an alcohol server if the employee has not taken the required training or completed the prescribed examination, or whose current class 12 permit is either revoked or suspended. An employee of a licensee shall be paid his or her usual wage and benefits for the time taken to fulfill the alcohol server training and examination requirements. If an employer does not pay for the training, then the employee may choose which training program to attend.

              (b) It is a violation of this title for a person whose class 12 permit has been denied, suspended, or revoked to accept employment as an alcohol server.


              NEW SECTION. Sec. 6. A new section is added to chapter 66.44 RCW to read as follows:

              (1) The board shall administer the required alcohol server training program by:

              (a) Reviewing and certifying training programs that fulfill the requirements under section 5 of this act;

              (b) Producing and distributing for employers to administer to their employees an examination and examination procedure to be administered following completion of the certified training program or training provided by the board;

              (c) Correcting examinations and issuing class 12 permits to those individuals who successfully complete the examination;

              (d) Taking administrative actions against those class 12 permit holders who have violated the provisions of this title and taking appropriate actions against others who have been involved in violations of this title.

              (2) The annual cost of a class A, B, C, D, H, I, and L retail liquor license, except a class C license held by a domestic winery, shall be increased in the amount of twenty dollars in order to provide funding for the alcohol server training program.

              (3) The board shall review and update the curricula to maintain accuracy with existing statutes and rules adopted to administer the liquor laws of the state.


              NEW SECTION. Sec. 7. This act shall take effect January 1, 1994, except for section 5 of this act which shall take effect July 1, 1995.


              NEW SECTION. Sec. 8. The liquor control board may take such steps as are necessary to ensure that this act is implemented on its effective date, including issuing class 12 permits, beginning on January 1, 1994, which will be valid for five years or more, in order to facilitate a balanced and orderly transition. Any class 12 permit issued on July 1, 1995, or later, shall be valid for five years.


              NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 10. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the general fund to the liquor revolving fund for the purpose of funding the initial cost of implementing this act. The full amount of the appropriation shall be repaid by June 30, 1995, from the proceeds of the increased license fees provided in section 6 of this act."


              Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              MINORITY recommendation: Without recommendation. Signed by Representative Chandler, Assistant Ranking Minority Member;


              Referred to Committee on Appropriations.


March 30, 1993

SB 5572              Prime Sponsor, Prentice: Assessing environmental costs of transportation projects. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; J. Kohl; Miller; H. Myers; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Excused: Representative Johanson, R. Meyers, Orr and Patterson.


              Passed to Committee on Rules for second reading.


March 31, 1993

SSB 5596            Prime Sponsor, Committee on Government Operations: Destroying redeemed warrants. Reported by Committee on State Government


              MAJORITY recommendation: Do pass. Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.


              Passed to Committee on Rules for second reading.


March 31, 1993

SSB 5606            Prime Sponsor, Committee on Ways & Means: Directing the state auditor to scrutinize funds and accounts under the control of state agencies. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. A new section is added to chapter 43.09 RCW to read as follows:

              As part of the routine audits of state agencies, the state auditor shall audit all revolving funds, local funds, and other state funds and state accounts that are not managed by or in the care of the state treasurer and that are under the control of state agencies, including but not limited to state departments, boards, and commissions. In conducting the audits of these funds and accounts, the auditor shall examine revenues and expenditures or assets and liabilities, accounting methods and procedures, and recordkeeping practices. In addition to including the results of these examinations as part of the routine audits of the agencies, the auditor shall report to the legislature on the status of all such funds and accounts that have been examined during the preceding biennium and any recommendations for their improved financial management. Such a report shall be filed with the legislature within five months of the end of each biennium regarding the funds and accounts audited during the biennium. The first such report shall be filed by December 1, 1993, regarding any such funds and accounts audited during the 1991-93 biennium."


              Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5636            Prime Sponsor, Committee on Education: Promoting lifelong learning and community involvement in education. Reported by Committee on Education


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, beginning on line 13, after "the" strike all material through "communities" on page 3, line 10, and insert "lifelong learning and positive community involvement of Washington's citizens. To promote lifelong learning and community involvement in education, the legislature intends:

              (1) For relevant state agencies to coordinate efforts in encouraging and providing technical assistance to local communities;

              (2) For agencies, groups, and interested persons within a community to coordinate efforts in providing lifelong learning and community involvement in education services; and

              (3) For local citizens to participate in coordinated planning of community efforts.


              NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, as used in this chapter, "lifelong learning and community involvement in education" means coordinated efforts in communities to provide education to citizens of all ages in a variety of settings using, to the extent possible, shared funding, sites, and staffing.


              NEW SECTION. Sec. 3. (1) In carrying out his or her duties under subsection (2) of this section, the superintendent of public instruction shall consult with the family policy council, the state board of education, the state board for community and technical colleges, the higher education coordinating board, the department of labor and industries, the state library, and other groups, including business and labor, that provide lifelong learning and community involvement in education services.

              (2) The superintendent of public instruction shall:

              (a) Provide assistance to local communities wishing to coordinate services for lifelong learning and community involvement in education;

              (b) Encourage local communities to coordinate program and facility resources;

              (c) Identify statutory and regulatory provisions impeding local collaboration for lifelong learning and community involvement in education;

              (d) Identify and promote effective models of lifelong learning and community involvement in education programs; and

              (e) Assist communities in exchanging information concerning lifelong learning and community involvement in education services"


              On page 3, line 14, after "of" strike "persons in the community" and insert "the community's citizens"

              On page 3, after line 15, strike all of section 5


              Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Brumsickle; Eide; Hansen; Holm; Karahalios; J. Kohl; Patterson; Pruitt; and Roland.


              MINORITY recommendation: Do not pass. Signed by Representatives Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Carlson; G. Fisher; Jones; Stevens; and Vance.


              Excused: Representative G. Cole.


              Referred to Committee on Appropriations.


March 30, 1993

SB 5667              Prime Sponsor, Talmadge: Creating a water trail recreation program. Reported by Committee on Natural Resources & Parks


              MAJORITY recommendation: Do pass with the following amendment:


              On page 1, strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature recognizes the increase in water-oriented recreation by users of human and wind-powered, beachable vessels such as kayaks, canoes, or day sailors on Washington's waters. These recreationists frequently require overnight camping facilities along the shores of public or private beaches. The legislature now creates a water trail recreation program, to be administered by the Washington state parks and recreation commission.


              NEW SECTION. Sec. 2. In addition to its other powers, duties, and functions, the commission may:

              (1) Plan, construct, and maintain suitable facilities for water trail activities on lands administered or acquired by the commission or as authorized on lands administered by tribes or other public agencies or private landowners by agreement.

              (2) Provide and issue, upon payment of the proper fee, with the assistance of those authorized agents as may be necessary for the convenience of the public, water trail permits to utilize designated water trail facilities. The commission may, after consultation with the water trail advisory committee, adopt rules authorizing reciprocity of water trail permits provided by another state or Canadian province, but only to the extent that a similar exemption or provision for water trail permits is issued by that state or province.

              (3) Compile, publish, distribute, and charge a fee for maps or other forms of public information indicating areas and facilities suitable for water trail activities.

              (4) Contract with a public agency, private entity, or person for the actual conduct of these duties.

              (5) Work with individuals or organizations who wish to volunteer their time to support the water trail recreation program.

 

              NEW SECTION. Sec. 3. The commission may make water trail program grants to public agencies or tribal governments and may contract with any public agency, tribal government, entity, or person to develop and implement water trail programs.


              NEW SECTION. Sec. 4. The commission is not liable for unintentional injuries to users of facilities administered for water trail purposes under this chapter, whether the facilities are administered by the commission or by any other entity or person. However, nothing in this section prevents the liability of the commission for injuries sustained by a user by reason of a known dangerous artificial latent condition for which warning signs have not been conspicuously posted.


              NEW SECTION. Sec. 5. A person may not participate as a user of the water trail recreation program without first obtaining a water trail permit. A person must renew this permit on an annual basis in order to continue to participate as a user of the program. The fee for the issuance of the state-wide water trail permit for each year shall be determined by the commission after consultation with the water trail advisory committee. All state-wide water trail permits shall expire on the last day of December of the year for which the permit is issued.


              NEW SECTION. Sec. 6. The water trail program account is created in the state treasury. All receipts from sales of materials pursuant to section 2 of this act and from state-wide water trail permit fees collected pursuant to section 5 of this act shall be deposited in the water trail program account. Any gifts, grants, donations, or moneys from any source received by the commission for the water trail program shall also be deposited in the water trail program account. Moneys in the account may be spent only after appropriation to the commission, and may be used solely for water trail program purposes, including: (1) Administration, acquisition, development, operation, planning, and maintenance of water trail lands and facilities, and grants or contracts therefor; and (2) the development and implementation of water trail informational, safety, enforcement, and education programs, and grants or contracts therefor.


              NEW SECTION. Sec. 7. The commission may, after consultation with the water trail advisory committee, adopt rules to administer the water trail program and facilities on areas owned or administered by the commission. Where water trail facilities administered by other public or private entities are incorporated into the water trail system, the rules adopted by those entities shall prevail. The commission is not responsible or liable for enforcement of these alternative rules.


              NEW SECTION. Sec. 8. (1) There is created a water trail advisory committee to advise the parks and recreation commission in the administration of sections 1 through 7 of this act and to assist and advise the commission in the development of water trail facilities and programs.

              (2) The advisory committee shall consist of twelve members, who shall be appointed as follows:

              (a) Five public members representing recreational water trail users, to be appointed by the commission;

              (b) Two public members representing commercial sectors with an interest in the water trail system, to be appointed by the commission;

              (c) One representative each from the department of natural resources, the department of wildlife, the Washington state association of counties, and the association of Washington cities, to be appointed by the director of the agency or association. The director of the Washington state parks and recreation commission or the director's designee shall serve as secretary to the committee and shall be a nonvoting member.

              (3) Except as provided in this section, the terms of the public members appointed by the commission shall begin on January 1st of the year of appointment and shall be for three years or until a successor is appointed, except in the case of appointments to fill vacancies for the remainder of an unexpired term. In making the initial appointments to the advisory committee, the commission shall appoint two public members to serve for one year, two public members to serve for two years, and three public members to serve for three years. Public members of the advisory committee may be reimbursed from the water trail program account for travel expenses as provided in RCW 43.03.050 and 43.03.060.

              (4) The committee shall select a chair and adopt rules necessary to govern its proceedings. The committee shall meet at the times and places it determines, not less than twice a year, and additionally as required by the committee chair or by majority vote of the committee.


              NEW SECTION. Sec. 9. Sections 1 through 8 of this act are each added to chapter 43.51 RCW."


              Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Dunshee; Linville; Sheldon; Valle; and Wolfe.


MINORITY recommendation: Do not pass. Signed by Representatives Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Schoesler; and Thomas.


              Referred to Committee on Appropriations.


March 30, 1993

SSB 5688            Prime Sponsor, Committee on Natural Resources: Modifying enforcement of forest practices guidelines. Reported by Committee on Natural Resources & Parks


              MAJORITY recommendation: Do pass with the following amendment:


              On page 3, line 20, strike "and"


              On page 3, line 21, after "violation" insert "; and

              (f) The extent to which a penalty to be imposed on a forest landowner for a forest practice violation committed by another should be reduced because the owner was unaware of the violation and has not received substantial economic benefits from the violation"


              On page 4, after line 33, insert the following:

              "NEW SECTION. Sec. 3. The following portions of this act shall take effect on January 1, 1994: subsections (1) and (3) through (7) of section 2."


              Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Dunshee; Linville; Schoesler; Sheldon; Valle; and Wolfe.


              Excused: Representative Thomas.


              Passed to Committee on Rules for second reading.


March 31, 1993

SB 5693              Prime Sponsor, Vognild: Authorizing exemptions from county vehicle license fees. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Passed to Committee on Rules for second reading.


March 31, 1993

SB 5696              Prime Sponsor, Haugen: Authorizing the department of retirement systems to be divided into three divisions. Reported by Committee on State Government


              MAJORITY recommendation: Do pass. Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.


              Passed to Committee on Rules for second reading.


March 30, 1993

SSB 5744            Prime Sponsor, Committee on Transportation: Changing provisions concerning streets that are part of the state highway system. Reported by Committee on Transportation



              MAJORITY Recommendation: Do pass with the following amendment:


              On page 2, line 17, after "((fifteen))" strike "twenty-two thousand five hundred" and insert "twenty thousand"


              On page 2, line 23, after "exceeds" strike "twenty-two" and insert "twenty"


              On page 2, line 28, after "first))" strike "five hundred"


              On page 3, line 39, after "((fifteen))" strike "twenty-two thousand five hundred" and insert "twenty thousand"


              On page 4, line 9, after "((fifteen))" strike "twenty-two thousand five hundred" and insert "twenty thousand"


              On page 4, line 14, after "exceeds" strike "twenty-two" and insert "twenty"


              On page 4, line 19, after "first))" strike "five hundred"


              Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; J. Kohl; Miller; H. Myers; Quall; Sheldon; Shin; Wood; and Zellinsky.


              MINORITY Recommendation: Do not pass. Signed by Representatives Brough and Horn.


              Excused: Representatives Heavey, Johanson, R. Meyers, Orr and Patterson.


              Passed to Committee on Rules for second reading.


March 30, 1993

SSB 5751            Prime Sponsor, Committee on Government Operations: Authorizing rural partial-county library districts. Reported by Committee on Local Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. A new section is added to chapter 27.12 RCW to read as follows:

              A rural partial-county library district may be created in a portion of the unincorporated area of a county as provided in this section if a rural county library district, intercounty rural library district, or island library district has not been created in the county and the area proposed to be included in a rural partial-county library district has an assessed valuation of at least fifty million dollars.

              The procedure to create a rural partial-county library district is initiated by the filing of petitions with the county auditor proposing the creation of the district that have been signed by at least ten percent of the registered voters residing in the area proposed to be included in the rural partial-county library district. The county auditor shall review the petitions and certify the sufficiency or insufficiency of the signatures to the county legislative authority.

              If the petitions are certified as having sufficient valid signatures, the county legislative authority shall hold a public hearing on the proposed rural partial-county library district, may adjust the boundaries of the proposed district, and may cause a ballot proposition to be submitted to the voters of the proposed rural partial-county library district authorizing its creation if the county legislative authority finds that the creation of the rural partial-county library district is in the public interest. A subsequent public hearing shall be held if additional territory is added to the proposed rural partial-county library district by action of the county legislative authority.

              The rural partial-county library district shall be created if the ballot proposition authorizing the creation of the district is approved by a simple majority vote of the voters voting on the proposition. Immediately after creation of the rural partial-county library district the county legislative authority shall appoint a board of library trustees for the district as provided under RCW 27.12.190.

              Except as provided in this section, a rural partial-county library district is subject to all the provisions of law applicable to a rural county library district and shall have all the powers, duties, and authorities of a rural county library district, including, but not limited to, the authority to impose property taxes, incur debt, and annex a city or town with a population of less than one hundred thousand at the time of the annexation that is located in the same county as the rural partial-county library district.

              Adjacent unincorporated territory in the county may be annexed to a rural partial-county library district in the same manner as territory is annexed to a sewer district, except that an annexation is not subject to potential review by a boundary review board.

              If a ballot proposition is approved creating a rural county library district in the county, every rural partial-county library district in that county shall be dissolved and its assets and liabilities transferred to the rural county library district. Where a rural partial-county library district has annexed a city or town, the voters of the city or town shall be allowed to vote on the proposed creation of a rural county library district and, if created, the rural county library district shall include each city and town that was annexed to the rural partial-county library district.

              Nothing in this section authorizes the consolidation of a rural partial-county library district with any rural county library district; island library district; city, county, or regional library; intercounty library district; or other rural partial-county library district, unless, in addition to any other requirements imposed by statute, the boards of all library districts involved approve the consolidation.


              Sec. 2. RCW 27.12.010 and 1982 c 123 s 1 are each amended to read as follows:

              As used in this chapter ((and chapter 27.08 RCW)), unless the context requires a different meaning:

              (1) "Governmental unit" means any county, city, town, rural county library district, intercounty rural library district, rural partial-county library district, or island library district;

              (2) "Legislative body" means the body authorized to determine the amount of taxes to be levied in a governmental unit; in rural county library districts, in intercounty rural library districts, and in island library districts, the legislative body shall be the board of library trustees of the district;

              (3) "Library" means a free public library supported in whole or in part with money derived from taxation; ((and))

              (4) "Regional library" means a free public library maintained by two or more counties or other governmental units as provided in RCW 27.12.080; ((and))

              (5) "Rural county library district" means a library serving all the area of a county not included within the area of incorporated cities and towns: PROVIDED, That any city or town with a population of one hundred thousand or less at the time of annexation may be included therein as provided in RCW 27.12.360 through 27.12.390; ((and))

              (6) "Intercounty rural library district" means a municipal corporation organized to provide library service for all areas outside of incorporated cities and towns within two or more counties: PROVIDED, That any city or town with a population of one hundred thousand or less at the time of annexation may be included therein as provided in RCW 27.12.360 through 27.12.390; ((and))

              (7) "Island library district" means a municipal corporation organized to provide library service for all areas outside of incorporated cities and towns on a single island only, and not all of the area of the county, in counties composed entirely of islands and having a population of less than twenty-five thousand at the time the island library district was created: PROVIDED, That any city or town with a population of one hundred thousand or less at the time of annexation may be included therein as provided in RCW 27.12.360 through 27.12.390; and

              (8) "Rural partial-county library district" means a municipal corporation organized to provide library service for a portion of the unincorporated area of a county that has an assessed valuation of at least fifty million dollars. Any city or town located in the same county as a rural partial-county library district may annex to the district if the city or town has a population of one hundred thousand or less at the time of annexation.


              Sec. 3. RCW 27.12.070 and 1984 c 186 s 7 are each amended to read as follows:

              The county treasurer of the county in which any rural county library district or rural partial-county library district is created shall receive and disburse all district revenues and collect all taxes levied under this chapter.


              Sec. 4. RCW 84.52.052 and 1991 c 138 s 1 are each amended to read as follows:

              The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. As used in this section, the term "taxing district" means any county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, rural partial-county library district, intercounty rural library district, fire protection district, cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, or cultural arts, stadium, and convention district.

              Any such taxing district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and 84.52.043, or RCW 84.55.010 through 84.55.050, when authorized so to do by the voters of such taxing district in the manner set forth in Article VII, section 2(a) of the Constitution of this state, as amended by Amendment 64 and as thereafter amended, at a special or general election to be held in the year in which the levy is made.

              A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any such taxing district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no.""


              Signed by Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Rayburn; Romero; Springer; Van Luven; and Zellinsky.


              Passed to Committee on Rules for second reading.


March 31, 1993

2SSB 5781          Prime Sponsor, Committee on Ways & Means: Improving access to public institutions of higher education. As Reported by Committee on Higher Education


              MAJORITY Recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature finds that there is increasing need for postsecondary educational opportunities for citizens of the state of Washington. The legislature also finds that in the past twelve years postsecondary educational opportunities have been severely restricted by state budget policy. The proportion of the state budget dedicated to postsecondary educational programs has continued to decrease and, subsequently, the opportunity for this state's citizens to participate in such programs has also declined. At the same time, major technological, economic, and demographic changes have exacerbated the need for improved training and education to maintain a high-quality, competitive work force, and a well-educated populace to meet the challenges of the twenty-first century. The legislature finds that this state has not fulfilled its responsibility to provide sufficient opportunity, commensurate with the dramatic growth in this state's population, for its citizens to engage in the postsecondary educational programs that are necessary for their personal and professional improvement and this state's economic vitality.

              Therefore, the legislature declares that the policy of the state of Washington shall be to improve the access to, and quality of, this state's postsecondary educational system. The budgetary policy of the state of Washington shall be to provide a level of protection and commitment to the state's postsecondary educational system commensurate with the responsibility of this state to the educational and professional improvement of its citizens and work force.


              NEW SECTION. Sec. 2. It is the policy of the state of Washington that funding for the state institutions of higher education, provided in the governor's budget request, shall ensure adequate resources to maintain a state-funded full-time equivalent participation rate at a minimum of the participation rate funded in the last fiscal year of the previous biennium beginning with the 1993 fiscal year. The participation rate shall be based on the state's estimated population ages seventeen and above by appropriate age groups.

              The governor's budget request shall include a funding level per full-time equivalent enrollment established for this minimum number of full-time equivalent students that shall, each biennium, be equal to the rate assumed in the omnibus appropriations act for the last fiscal year of the previous biennium plus an inflation factor for, at a minimum, the instructional program, primary support program, and library program that is equivalent to the inflation factor used to calculate basic education in the common school system budget request submitted by the governor.


              NEW SECTION. Sec. 3. In addition to the minimum participation rate contained in section 2 of this act, it is the policy of the state of Washington that the governor's budget request provide for an enrollment increase to achieve the goal of reaching the ninetieth percentile in national participation rates system-wide, excepting work force training, by the year 2010. This shall be accomplished by increasing enrollments, in addition to any increases required by section 2 of this act, in regular increments each biennium in order to remain on target to achieve this goal by the end of the 2009-11 biennium.


              NEW SECTION. Sec. 4. The participation rate used to calculate enrollment levels pursuant to sections 2 and 3 of this act shall be based on fall enrollment reported in the higher education enrollment report as maintained by the office of financial management, fall enrollment as reported in the management information system of the state board for community and technical colleges, and the corresponding fall population forecast by the office of financial management. Formal estimates of the state participation rates and enrollment levels necessary to fulfill the requirements of sections 2 and 3 of this act shall be determined by the office of financial management as part of its responsibility to develop and maintain student enrollment forecasts for colleges and universities under RCW 43.62.050. Formal estimates of the state participation rates and enrollment levels required by this section shall be based on procedures and standards established by a technical work group consisting of staff from the higher education coordinating board, the state board for community and technical colleges, the fiscal and higher education committees of the house of representatives and the senate, and the office of financial management. Formal estimates of the state participation rates and enrollment levels required by this section shall be submitted to the fiscal committees of the house of representatives and senate on or before the fifteenth day of November of each even-numbered year. The higher education coordinating board shall periodically review the enrollment goals set forth in sections 2 and 3 of this act and submit recommendations concerning modification of these goals to the governor and to the higher education committees of the house of representatives and the senate.


              NEW SECTION. Sec. 5. It is the policy of the state of Washington that financial need not be a barrier to participation in the state higher education system. Funding for student financial aid in each governor's budget request shall, at a minimum, be equal to the amount provided in the previous biennium adjusted for increases in the state-funded full-time equivalent enrollment level pursuant to sections 2 and 3 of this act and increases in the cost of attendance as calculated by the higher education coordinating board. The higher education coordinating board shall provide these calculations to the office of financial management and the legislature by April 1st of each even-numbered year.


              Sec. 6. RCW 28B.15.515 and 1991 c 353 s 1 are each amended to read as follows:

              (1) The boards of trustees of the community college districts may operate summer schools on either a self-supporting or a state-funded basis.

              If summer school is operated on a self-supporting basis, the fees charged shall be retained by the colleges, and shall be sufficient to cover the direct costs, which are instructional salaries and related benefits, supplies, publications, and records.

              Community colleges that have self-supporting summer schools shall continue to receive general fund state support for vocational programs that require that students enroll in a four quarter sequence of courses that includes summer quarter due to clinical or laboratory requirements and for ungraded courses limited to adult basic education, vocational apprenticeship, aging and retirement, small business management, industrial first aid, and parent education.

              (2)(((a))) The board of trustees of a community college district may permit the district's state-funded, full-time equivalent enrollment level, as provided in the operating budget appropriations act, to vary ((by plus or minus two percent each fiscal year unless otherwise authorized in the operating budget appropriations act)). If the variance is above the state-funded level, the district may charge those students above the state-funded level a fee equivalent to the amount of tuition and fees that are charged students enrolled in state-funded courses. These fees shall be retained by the colleges.

              (((b) Any community college that in 1990-91 has an enrollment above the state-funded level but below the authorized variance may increase its excess enrollments to within the variance.

              (c) Community colleges that currently have excess enrollments more than the authorized variance, by means of enrollments that would have otherwise been eligible for state funding, shall reduce those excess enrollments to within the authorized variance by September 1, 1995, in at least equal annual reductions, commencing with the 1991-92 fiscal year.

              (d) Except as permitted by (c) of this subsection, should the number of student-supported, full-time equivalent enrollments in any fiscal year fall outside the authorized variance, the college shall return by September 1st to the state general fund, an amount equal to the college's full average state appropriations per full-time equivalent student for such student-funded full-time equivalent outside the variance, unless otherwise provided in the operating budget appropriations act.))

              (3) The state board for community and technical colleges ((education)) shall ensure compliance with this section.


              NEW SECTION. Sec. 7. To address the increasing need for postsecondary educational opportunities for citizens of Washington state, institutions of higher education may cosponsor educational programs with a nonprofit organization, as defined by the internal revenue code Sec. 501(c)(3).


              Sec. 8. RCW 82.04.170 and 1992 c 206 s 1 are each amended to read as follows:

              "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the internal revenue code Sec. 501(c)(3), if such educational institution grants college credit for some or any coursework successfully completed through the educational program, or defined as a degree granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions.


              NEW SECTION. Sec. 9. Sections 2 through 5 and 7 of this act are each added to chapter 28B.10 RCW.


              NEW SECTION. Sec. 10. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."


              Signed by Representatives Jacobsen, Chair; Quall, Vice Chair; Brumsickle, Ranking Minority Member; Sheahan, Assistant Ranking Minority Member; Basich; Bray; Carlson; Casada; Finkbeiner; Flemming; Kessler; J. Kohl; Ogden; Orr; Rayburn; Shin; and Wood.


              Excused: Representative Mielke.


              Referred to Committee on Appropriations.


March 31, 1993

SB 5787              Prime Sponsor, Gaspard: Regulating professional athletics. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Passed to Committee on Rules for second reading.


April 1, 1993

ESB 5831            Prime Sponsor, Barr: Limiting certain payments by electrical utilities to owners of residences in which the primary heat source is electric resistance space heat. Reported by Committee on Energy & Utilities


              MAJORITY recommendation: Do pass. Signed by Representatives Grant, Chair; Finkbeiner, Vice Chair; Casada, Ranking Minority Member; Miller, Assistant Ranking Minority Member; Johanson; Kessler; Kremen; Long; and Ludwig.


              Passed to Committee on Rules for second reading.


April 1, 1993

SB 5883              Prime Sponsor, Bauer: Changing funding procedures for high school students enrolled in the running start program in community or technical colleges. Reported by Committee on Education


              MAJORITY recommendation: Do pass with the following amendments:


              On page 2, line 2, after "technical college" strike "a sum" and insert "((a sum)) an amount"


              On page 2, at the beginning of line 7, strike all material down to and including "act." on line 10 and insert "each full-time equivalent college student at statewide uniform rates for vocational and nonvocational students. The superintendent of public instruction shall separately calculate and allocate moneys appropriated for basic education under RCW 28A.150.260 to school districts for purposes of making such payments and for granting school districts seven percent thereof to offset program related costs. The calculations and allocations shall be based upon the estimated statewide annual average per full-time equivalent high school student allocations under RCW 28A.150.260, excluding small high school enhancements, and applicable rules adopted under chapter 34.05 RCW."


              On page 2, line 12, after "on" insert "the calculation and"

               On page 2, after line 20, insert the following:

              "NEW SECTION. Sec. 2. This act shall take effect September 1, 1993."


              Signed by Representatives Dorn, Chair; Cothern, Vice Chair; Brough, Ranking Minority Member; Thomas, Assistant Ranking Minority Member; Brumsickle; Carlson; Eide; G. Fisher; Hansen; Holm; Jones; Karahalios; J. Kohl; Patterson; Pruitt; Roland; Stevens; and Vance.


              Excused: Representative G. Cole.


              Referred to Committee on Appropriations.


March 31, 1993

SB 5906              Prime Sponsor, Moore: Modifying electrical inspection standards. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Referred to Committee on Appropriations.


March 31, 1993

SSB 5909            Prime Sponsor, Committee on Trade, Technology & Economic Development: Enhancing the community diversification program. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, line 32, after "Sec. 2." strike all material through "section" on page 3, line 2, and insert "If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1993, in the omnibus appropriations act, this act is null and void"


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Quall; Schoesler; Sheldon; Springer; and Valle.


              Excused: Representatives Morris and Wood.


              Referred to Committee on Appropriations.


March 30, 1993

ESB 5917            Prime Sponsor, Drew: Restructuring statutes on state participation in rail freight service. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass with the following amendment:


              On page 10, after line 35, insert:

              "NEW SECTION. Sec. 14. A new section is added to chapter 47.30 RCW to read as follows:

              For purposes of 43 U.S.C. 912 and related provisions of federal law involving federally granted railroad rights of way, a bicycle, equestrian or pedestrian path shall be deemed to be a public highway under the laws of the state of Washington."


              Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Horn; J. Kohl; Miller; H. Myers; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Excused: Representatives Heavey, Johanson, R. Meyers, Orr and Patterson.


              Passed to Committee on Rules for second reading.


              On motion of Representative Eide, the bills listed on today's committee reports under the fifth order of business were referred to the committees so designated.


              The Speaker (Representative R. Johnson presiding) declared the House to be at ease.


              The Speaker (Representative Wolf presiding) called the House to order.


 

MESSAGE FROM THE SENATE

April 2, 1993

Mr. Speaker:


              The President has signed:


HOUSE BILL NO. 1036,

HOUSE BILL NO. 1037,

HOUSE BILL NO. 1790,

HOUSE BILL NO. 1956,

HOUSE JOINT MEMORIAL NO. 4010,



and the same are herewith transmitted.

Marty Brown, Secretary


              There being no objection, the House reverted to the fifth order of business.


REPORTS OF STANDING COMMITTEES (FIRST SUPPLEMENTAL)


April 1, 1993

SSB 5176            Prime Sponsor, Committee on Labor & Commerce: Concerning the cashing of government issued checks or warrants. Reported by Committee on Financial Institutions & Insurance


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The supervisor of banking and the supervisor of savings and loan in conjunction with the state treasurer's office and the department of social and health services shall study methods by which the state of Washington can facilitate the movement of funds to individuals who receive public assistance including but not limited to: Methods to limit the fees charged by financial institutions and other entities for the cashing of government checks and warrants; methods to ensure that presenters of government checks and warrants are properly identified; methods to encourage the offering by financial institutions of low cost checking accounts; and methods to encourage the development and use of debit cards and similar automated systems for the transfer of government funds to persons receiving public assistance. The supervisor of banking and supervisor of savings and loan shall report their findings and recommendations to the legislature by January 1, 1994."


              Signed by Representatives Zellinsky, Chair; Scott, Vice Chair; Mielke, Ranking Minority Member; Dyer, Assistant Ranking Minority Member; Anderson; Dellwo; Dorn; Grant; R. Johnson; Kessler; Kremen; Lemmon; R. Meyers; Reams; Schmidt; and Tate.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5195            Prime Sponsor, Committee on Labor & Commerce: Regulating excessive securities transactions. Reported by Committee on Financial Institutions & Insurance


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. A new section is added to chapter 21.20 RCW to read as follows:

              It is unlawful for a broker-dealer, salesperson, investment adviser, or investment adviser salesperson knowingly to effect or cause to be effected, with or for a customer's account, transactions of purchase or sale (1) that are excessive in size or frequency in view of the financial resources and character of the account and (2) that are effected because the broker-dealer, salesperson, investment adviser, or investment adviser salesperson is vested with discretionary power or is able by reason of the customer's trust and confidence to influence the volume and frequency of the trades.


              NEW SECTION. Sec. 2. A new section is added to chapter 21.20 RCW to read as follows:

              (1) In recommending to a customer the purchase, sale, or exchange of a security, a broker-dealer, salesperson, investment adviser, or investment adviser salesperson must have reasonable grounds for believing that the recommendation is suitable for the customer upon the basis of the facts, if any, disclosed by the customer as to his or her other security holdings and as to his or her financial situation and needs.

              (2) Before the execution of a transaction recommended to a noninstitutional customer, other than transactions with customers where investments are limited to money market mutual funds, a broker-dealer, salesperson, investment adviser, or investment adviser salesperson shall make reasonable efforts to obtain information concerning:

              (a) The customer's financial status;

              (b) The customer's tax status;

              (c) The customer's investment objectives; and

              (d) Such other information used or considered to be reasonable by the broker-dealer, salesperson, investment adviser, or investment adviser salesperson or registered representative in making recommendations to the customer.


              Sec. 3. RCW 21.20.110 and 1986 c 14 s 45 are each amended to read as follows:

              The director may by order deny, suspend, or revoke registration of any broker-dealer, salesperson, investment adviser salesperson, or investment adviser; censure or fine the registrant or an officer, director, partner, or person occupying similar functions for a registrant; or restrict or limit a registrant's function or activity of business for which registration is required in this state; if the director finds that the order is in the public interest and that the applicant or registrant or, in the case of a broker-dealer or investment adviser, any partner, officer, or director:

              (1) Has filed an application for registration under this section which, as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in the light of the circumstances under which it was made, false, or misleading with respect to any material fact;

              (2) Has willfully violated or willfully failed to comply with any provision of this chapter or a predecessor act or any rule or order under this chapter or a predecessor act, or any provision of chapter 21.30 RCW or any rule or order thereunder;

              (3) Has been convicted, within the past five years, of any misdemeanor involving a security, or a commodity contract or commodity option as defined in RCW 21.30.010, or any aspect of the securities or investment commodities business, or any felony involving moral turpitude;

              (4) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities or investment commodities business;

              (5) Is the subject of an order of the director denying, suspending, or revoking registration as a broker-dealer, salesperson, investment adviser, or investment adviser salesperson;

              (6) Is the subject of an order entered within the past five years by the securities administrator of any other state or by the federal securities and exchange commission denying or revoking registration as a broker-dealer or salesperson, or a commodity broker-dealer or sales representative, or the substantial equivalent of those terms as defined in this chapter or by the commodity futures trading commission denying or revoking registration as a commodity merchant as defined in RCW 21.30.010, or is the subject of an order of suspension or expulsion from membership in or association with a self-regulatory organization registered under the securities exchange act of 1934 or the federal commodity exchange act, or is the subject of a United States post office fraud order; but (a) the director may not institute a revocation or suspension proceeding under this clause more than one year from the date of the order relied on, and (b) the director may not enter any order under this clause on the basis of an order unless that order was based on facts which would currently constitute a ground for an order under this section;

              (7) Has engaged in dishonest or unethical practices in the securities or investment commodities business;

              (8) Is insolvent, either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature; but the director may not enter an order against a broker-dealer or investment adviser under this clause without a finding of insolvency as to the broker-dealer or investment adviser;

              (9) Has not complied with a condition imposed by the director under RCW 21.20.100, or is not qualified on the basis of such factors as training, experience, or knowledge of the securities business; or

              (10)(a) Has failed to supervise reasonably ((his or her)) a salesperson((s if he or she is a broker-dealer)) or ((his or her)) an investment adviser salesperson ((if he or she is an investment adviser.

              The director may by order summarily postpone or suspend registration pending final determination of any proceeding under this section)). For the purposes of this subsection, no person fails to supervise reasonably another person, if:

              (i) There are established procedures, and a system for applying those procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by another person of this chapter, or a rule or order under this chapter; and

              (ii) The supervising person has reasonably discharged the duties and obligations required by these procedures and system without reasonable cause to believe that another person was violating this chapter or rules or orders under this chapter.

              (b) The director may issue a summary order pending final determination of a proceeding under this section upon a finding that it is in the public interest and necessary or appropriate for the protection of investors. The director may not impose a fine under this section except after notice and opportunity for hearing. The fine imposed under this section may not exceed five thousand dollars for each act or omission that constitutes the basis for issuing the order.


              Sec. 4. RCW 21.20.005 and 1989 c 391 s 1 are each amended to read as follows:

              The definitions set forth in this section shall apply throughout this chapter, unless the context otherwise requires:

              (1) "Director" means the director of licensing of this state.

              (2) "Salesperson" means any individual other than a broker-dealer who represents a broker-dealer or issuer in effecting or attempting to effect sales of securities, but "salesperson" does not include an individual who represents an issuer in (a) effecting a transaction in a security exempted by RCW 21.20.310 (1), (2), (3), (4), (9), (10), (11), (12), or (13), as now or hereafter amended, (b) effecting transactions exempted by RCW 21.20.320, or (c) effecting transactions with existing employees, partners, or directors of the issuer if no commission or other remuneration is paid or given directly or indirectly for soliciting any person in this state.

              (3) "Broker-dealer" means any person engaged in the business of effecting transactions in securities for the account of others or for that person's own account. "Broker-dealer" does not include (a) a salesperson, issuer, bank, savings institution, or trust company, (b) a person who has no place of business in this state if the person effects transactions in this state exclusively with or through the issuers of the securities involved in the transactions, other broker-dealers, or banks, savings institutions, trust companies, insurance companies, investment companies as defined in the investment company act of 1940, pension or profit-sharing trusts, or other financial institutions or institutional buyers, whether acting for themselves or as trustees, or (c) a person who has no place of business in this state if during any period of twelve consecutive months that person does not direct more than fifteen offers to sell or to buy into this state in any manner to persons other than those specified in subsection (b) above.

              (4) "Guaranteed" means guaranteed as to payment of principal, interest, or dividends.

              (5) "Full business day" means all calendar days, excluding therefrom Saturdays, Sundays, and all legal holidays, as defined by statute.

              (6) "Investment adviser" means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. "Investment adviser" also includes financial planners and other persons who, as an integral component of other financially related services, (a) provide the foregoing investment advisory services to others for compensation as part of a business or (b) hold themselves out as providing the foregoing investment advisory services to others for compensation. Investment adviser shall also include any person who holds himself out as a financial planner.

              "Investment adviser" does not include (a) a bank, savings institution, or trust company, (b) a lawyer, accountant, certified public accountant licensed under chapter 18.04 RCW, engineer, or teacher whose performance of these services is solely incidental to the practice of his or her profession, (c) a broker-dealer, (d) a publisher of any bona fide newspaper, news magazine, or business or financial publication of general, regular, and paid circulation, (e) a radio or television station, (f) a person whose advice, analyses, or reports relate only to securities exempted by RCW 21.20.310(1), (g) a person who has no place of business in this state if (i) that person's only clients in this state are other investment advisers, broker-dealers, banks, savings institutions, trust companies, insurance companies, investment companies as defined in the investment company act of 1940, pension or profit-sharing trust, or other financial institutions or institutional buyers, whether acting for themselves or as trustees, or (ii) during any period of twelve consecutive months that person does not direct business communications into this state in any manner to more than five clients other than those specified in clause (i) above, or (h) such other persons not within the intent of this paragraph as the director may by rule or order designate.

              (7) "Issuer" means any person who issues or proposes to issue any security, except that with respect to certificates of deposit, voting trust certificates, or collateral-trust certificates, or with respect to certificates of interest or shares in an unincorporated investment trust not having a board of directors (or persons performing similar functions) or of the fixed, restricted management, or unit type; the term "issuer" means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which the security is issued.

              (8) "Nonissuer" means not directly or indirectly for the benefit of the issuer.

              (9) "Person" means an individual, a corporation, a partnership, an association, a joint-stock company, a trust where the interest of the beneficiaries are evidenced by a security, an unincorporated organization, a government, or a political subdivision of a government.

              (10) "Sale" or "sell" includes every contract of sale of, contract to sell, or disposition of, a security or interest in a security for value. "Offer" or "offer to sell" includes every attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security for value.

              Any security given or delivered with, or as a bonus on account of, any purchase of securities or any other thing is considered to constitute part of the subject of the purchase and to have been offered and sold for value. A purported gift of assessable stock is considered to involve an offer and sale. Every sale or offer of a warrant or right to purchase or subscribe to another security of the same or another issuer, as well as every sale or offer of a security which gives the holder a present or future right or privilege to convert into another security of the same or another issuer, is considered to include an offer of the other security.

              (11) "Securities Act of 1933", "Securities Exchange Act of 1934", "Public Utility Holding Company Act of 1935", and "Investment Company Act of 1940" means the federal statutes of those names as amended before or after June 10, 1959.

              (12) "Security" means any note; stock; treasury stock; bond; debenture; evidence of indebtedness; certificate of interest or participation in any profit-sharing agreement; collateral-trust certificate; preorganization certificate or subscription; transferable share; investment contract; investment of money or other consideration in the risk capital of a venture with the expectation of some valuable benefit to the investor where the investor does not receive the right to exercise practical and actual control over the managerial decisions of the venture; voting-trust certificate; certificate of deposit for a security; certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under such a title or lease; charitable gift annuity; or, in general, any interest or instrument commonly known as a "security", or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing; or any sale of or indenture, bond or contract for the conveyance of land or any interest therein where such land is situated outside of the state of Washington and such sale or its offering is not conducted by a real estate broker licensed by the state of Washington. "Security" does not include any insurance or endowment policy or annuity contract under which an insurance company promises to pay money either in a lump sum or periodically for life or some other specified period.

              (13) "State" means any state, territory, or possession of the United States, as well as the District of Columbia and Puerto Rico.

              (14) "Investment adviser salesperson" means a person retained or employed by an investment adviser to solicit clients or offer the services of the investment adviser or manage the accounts of said clients.

              (15) "Relatives", as used in RCW 21.20.310(11) as now or hereafter amended, shall include:

              (a) A member's spouse;

              (b) Parents of the member or the member's spouse;

              (c) Grandparents of the member or the member's spouse;

              (d) Natural or adopted children of the member or the member's spouse;

              (e) Aunts and uncles of the member or the member's spouse; and

              (f) First cousins of the member or the member's spouse.

              (16) "Customer" means a person other than a broker-dealer or investment adviser."


              Signed by Representatives Zellinsky, Chair; Scott, Vice Chair; Mielke, Ranking Minority Member; Dyer, Assistant Ranking Minority Member; Anderson; Dellwo; Dorn; Grant; R. Johnson; Kessler; Kremen; Lemmon; R. Meyers; Reams; Schmidt; and Tate.


              Referred to Committee on Appropriations.


April 2, 1993

SSB 5221            Prime Sponsor, Committee on Trade, Technology & Economic Development: Establishing the Washington rural development council. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              On page 4, strike lines 26 through 29 and insert:

              "NEW SECTION. Sec. 12. If specific funding for the purposes of this act, referencing this act by bill number, is not provided in the omnibus appropriations act by June 30, 1993, this act is null and void."

              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Campbell; Conway; Schoesler; Sheldon; Springer; Valle; and Wood.


              MINORITY Recommendation: Do no pass. Signed by Representative Morris.


              Excused: Representatives Forner, Ranking Minority Member, Chandler, Assistant Ranking Minority Member, Casada and Quall.


              Referred to Committee on Appropriations.


April 1, 1993

SSB 5261            Prime Sponsor, Committee on Health & Human Services: Modifying the background check requirement on persons providing services for physically disabled or mentally impaired persons. Reported by Committee on Human Services


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "Sec. 1. RCW 43.20A.710 and 1989 c 334 s 13 are each amended to read as follows:

              The secretary shall investigate the conviction records, pending charges or disciplinary board final decisions of: (1) Persons being considered for state employment in positions directly responsible for the supervision, care, or treatment of children((, mentally ill persons)) or individuals with mental illness or ((developmentally disabled persons)) developmental disabilities; and (2) individual providers who are paid by the state for in-home services and hired by individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment. The investigation may include an examination of state and national criminal identification data and the child abuse and neglect register established under chapter 26.44 RCW. The secretary shall provide the results of the state background check on individual providers to the individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment who hired them and to their legal guardians, if any. The secretary shall use the information solely for the purpose of determining the character, suitability, and competence of these applicants except that in the case of individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment who employ individual providers, the determination of character, suitability, and competence of applicants shall be made by the individual with a physical disability, developmental disability, mental illness, or mental impairment. Criminal justice agencies shall provide the secretary such information as they may have and that the secretary may require for such purpose. If necessary, persons may be employed on a conditional basis pending completion of the background investigation.


              NEW SECTION. Sec. 2. This act applies prospectively except individuals who currently employ individual providers paid by the state may be given the option to request a state background check during reassessment for services."


              Signed by Representatives Leonard, Chair; Cooke, Ranking Minority Member; Brown; Karahalios; Lisk; Padden; Patterson; Thibaudeau; and Wolfe.


              Excused: Representatives Riley, Vice Chair and Talcott, Assistant Ranking Minority Member.


              Passed to Committee on Rules for second reading.


April 2, 1993

ESB 5280            Prime Sponsor, Hargrove: Creating a certification program for contractors. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The director of the department of labor and industries shall conduct a study to determine whether there is a need for increased regulation, such as a voluntary certificate of competency program, of general and specialty contractors registered under chapter 18.27 RCW. In conducting the study, the director shall consult with representatives of the following construction classifications: Commercial/retail construction; highway/industrial construction; municipal/utility construction; marine construction; residential single-family construction; and residential multifamily construction. The director shall also consult with representatives of state and local governmental agencies and members of the general public who are familiar with the business and trade of construction.

              No later than February 1, 1994, the director shall present findings and recommendations to the appropriate legislative committees concerning whether contractors should be subject to increased regulation by the state, such as a voluntary certificate of competency program.

              The study and recommendations of the director shall be guided by the principle that increased regulation by the state is appropriate only when: Unregulated practice can clearly harm or endanger the health, safety, or welfare of the public, and the potential harm is easily recognizable and not remote or dependent upon tenuous argument; the public needs and can reasonably be expected to benefit from an assurance of initial and continuing professional responsibility; and the public cannot be effectively protected by other means in a more cost-beneficial manner."


              Signed by Representatives Heavey, Chair; Conway; King; Springer; and Veloria.


              MINORITY recommendation: Do not pass. Signed by Representatives Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; and Horn.



              Excused: Representative G. Cole, Vice Chair.


              Passed to Committee on Rules for second reading.


April 2, 1993

SB 5330              Prime Sponsor, Haugen: Exempting auction sold property from a statutory holding period. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Excused: Representative G. Cole, Vice Chair.


              Passed to Committee on Rules for second reading.


March 31, 1993

SSB 5337            Prime Sponsor, Committee on Transportation: Regulating aeronautics. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass. Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              MINORITY recommendation: Without recommendation. Signed by Representative Hansen.


              Passed to Committee on Rules for second reading.


April 1, 1993

SB 5358              Prime Sponsor, Pelz: Creating an appropriated real estate education account. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass. Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Peery; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.


              Excused: Representative Dellwo.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5360            Prime Sponsor, Committee on Law & Justice: Creating new procedures for reporting domestic violence. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass with the following amendment by Committee on Judiciary as further amended by Committee on Appropriations:


              On page 3, after line 16, insert the following:

              "(4) The administrator for the courts shall arrange for translation of the instructions and informational brochures required by this section, which shall contain a sample of the standard petition and order for protection forms, into Spanish, Vietnamese, Laotian, Cambodian, and Chinese, and shall distribute a master copy of the translated instructions and informational brochures to all court clerks by January 1, 1995."



              On page 5, after line 37 insert:

              "New Section. Sec. 4 If specific funding for section 2 subsection (4) of this act, referencing this act by bill, section and subsection number, is not provided by June 30, 1993, in the omnibus appropriations act, section 2 subsection (4) is null and void."


              Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dorn; Dunshee; Jacobsen; Lemmon; Leonard; Linville; Morton; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.


              Excused: Representatives Dorn, G. Fisher and Peery.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5386            Prime Sponsor, Committee on Health & Human Services: Modifying licensure of home health, hospice, and home care agencies. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass. Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Peery; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.


              Excused: Representative Dellwo.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5391            Prime Sponsor, Committee on Health & Human Services: Providing a program to assess and monitor infants exposed to drugs. Reported by Committee on Human Services


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. LEGISLATIVE INTENT. The legislature finds that chemical drug exposure during pregnancy jeopardizes the long-term health and well-being of infants. The legislature declares that adequate medical care during and after pregnancy, chemical abuse treatment for pregnant women, and other support services for the child and mother are needed to minimize the adverse effects of chemical abuse. The legislature has demonstrated its commitment to providing these services through a significant expansion of maternity care and child health services. It has also expanded chemical abuse treatment and support services for pregnant women through the enhancement of inpatient and outpatient services, transitional housing, case management, and child care. The legislature further finds that early identification through medical assessment of chemically exposed infants can reduce long-term adverse medical, social, and economic consequences only when such identification results in the provision of needed medical and support services. It further declares that well integrated and coordinated delivery of services to mothers and infants is essential to promote the long-term health and well-being of chemically exposed infants.


              NEW SECTION. Sec. 2. DEFINITIONS. As used in this chapter, the terms in this section have the meanings indicated unless the context clearly requires otherwise.

              (1) "Drug" means a controlled substance under chapter 69.50 RCW used for nonmedical purposes.

              (2) "Fetal alcohol syndrome assessment" means a procedure established by section 3 of this act and conducted by a health care facility for screening and assessing infants to identify those who have a cluster of congenital features associated with the syndrome.

              (3) "Health care facility" means a hospital as licensed in chapter 70.41 RCW.

              (4) "Infant drug exposure assessment" means a procedure established by section 3 of this act and conducted by a health care facility for screening and assessing newborn infants and mothers to identify those who have been exposed to drugs prior to birth.

              (5) "Nonmedical purpose" means use of a controlled substance as defined in chapter 69.50 RCW for purposes other than prescribed by an authorized health care practitioner as defined in RCW 69.50.101.


              NEW SECTION. Sec. 3. ASSESSMENTS--UNIVERSITY OF WASHINGTON ACTIVITIES. The University of Washington shall, within existing resources, in consultation with the department of health, develop standards for conducting infant drug exposure assessments to determine possible drug exposure of infants prior to birth. The University of Washington shall also develop, within existing resources, in consultation with the department of health, standards for conducting fetal alcohol syndrome assessments to identify infants who may have the fetal alcohol syndrome. The standards may be updated from time to time. To the extent possible, the standards shall assure accurate, fair, and consistent medical assessments of newborn infants. The University of Washington shall, within existing resources, make the assessment standards available to every health care facility for the purposes of conducting the assessments.


              NEW SECTION. Sec. 4. ASSESSMENTS--USE--CONFIDENTIALITY OF ASSESSMENTS. (1) Health care facilities may conduct infant drug exposure assessments of newborn infants delivered at the facility to determine the presence of drugs acquired through exposure from the mother. The health care facilities may also conduct fetal alcohol syndrome assessments on infants in their facility to determine the possible presence of the syndrome. The assessments should be initiated prior to the discharge of the infant. The purpose of the assessments shall be to determine the need for immediate and postdischarge medical care, drug treatment, and support services for the mother and child.

              (2) The results of the infant drug exposure assessments and the fetal alcohol syndrome assessments shall not be used in any criminal proceeding as evidence of either guilt or innocence.


              NEW SECTION. Sec. 5. INTERAGENCY COORDINATION OF SERVICE DELIVERY. The department of social and health services and the department of health shall, within existing resources, assure that the delivery of available services to chemically dependent pregnant women and chemically dependent mothers and infants are coordinated so that (1) all available medical and support services offered through or paid by the agencies are provided to the extent of available resources, (2) existing community-based services are identified and utilized, (3) to the extent feasible, services be offered jointly to the mother and infant in a manner that promotes and preserves positive bonding of the mother and infant, and (4) possible long-term developmental disabilities are identified early to minimize adverse health consequences.


              NEW SECTION. Sec. 6. EDUCATION FOR HEALTH CARE PROFESSIONALS. The department of health may provide prenatal, obstetrical, and pediatric health care services providers with appropriate educational materials on the effects of substance abuse by pregnant women. The educational materials may include information on identifying signs of alcohol and drug usage, the effects of alcohol and drug exposure, conducting medical assessments as provided for by this chapter, and referring patients to appropriate treatment and services.


              NEW SECTION. Sec. 7. CAPTIONS NOT LAW. Section captions as used in this act constitute no part of the law.


              NEW SECTION. Sec. 8. Sections 1 through 6 of this act shall constitute a new chapter in Title 70 RCW.

              Signed by Representatives Leonard, Chair; Riley, Vice Chair; Cooke, Ranking Minority Member; Talcott, Assistant Ranking Minority Member; Brown; Karahalios; Lisk; Padden; Patterson; and Thibaudeau.


              Excused: Representative Wolfe.


              Referred to Committee on Appropriations.


April 1, 1993

SSB 5392            Prime Sponsor, Committee on Health & Human Services: Revising provisions relating to abuse of children and incompetent persons. Reported by Committee on Human Services


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. A new section is added to chapter 13.34 RCW to read as follows:

              (1) The provisions of this section shall apply when a court orders a party to undergo an alcohol or substance abuse diagnostic investigation and evaluation.

              (2) The facility conducting the investigation and evaluation shall make a written report to the court stating its findings and recommendations including family-based services or treatment when appropriate. If its findings and recommendations support treatment, it shall also recommend a treatment plan setting out:

              (a) Type of treatment;

              (b) Nature of treatment;

              (c) Length of treatment;

              (d) A treatment time schedule; and

              (e) Approximate cost of the treatment.

              The affected person shall be included in developing the appropriate plan of treatment. The plan of treatment must be signed by treatment provider and the affected person. The initial written report based on the treatment plan and response to treatment shall be sent to appropriate persons six weeks after initiation of treatment, and after three months, after six months, after twelve months, and thereafter every six months if treatment exceeds twelve months. Reports are to be filed in a timely manner. Close-out of the treatment record must include summary of pretreatment and posttreatment, with final outcome and disposition. The report shall also include recommendations for ongoing stability and decrease in destructive behavior.

              The report with the treatment plan shall be filed with the court and a copy given to the person evaluated and the person's counsel. A copy of the treatment plan shall also be given to the department's caseworker and to the guardian ad litem. Any program for chemical dependency shall meet the program requirements contained in chapter 70.96A RCW.

              (3) If the court has ordered treatment pursuant to a dependency proceeding it shall also require the treatment program to provide, in the reports required by subsection (2) of this section, status reports to the court, the department, the supervising child-placing agency if any, and the person or person's counsel regarding: (a) The person's cooperation with the treatment plan proposed; and (b) the person's progress in treatment.

              (4) In addition, if the party fails or neglects to carry out and fulfill any term or condition of the treatment plan, the program or agency administering the treatment shall report such breach to the court, the department, the guardian ad litem, the supervising child-placing agency if any, and the person or person's counsel, within twenty-four hours, together with its recommendation. These reports shall be made as a declaration by the person who is personally responsible for providing the treatment.

              (5) Nothing in this chapter may be construed as allowing the court to require the department to pay for the cost of any alcohol or substance abuse evaluation or treatment program.


              NEW SECTION. Sec. 2. A new section is added to chapter 13.34 RCW to read as follows:

              (1) The court or the department, upon receiving a report under section 1(4) of this act, may schedule a show cause hearing to determine whether the person is in violation of the treatment conditions. All parties shall be given notice of the hearing. The court shall hold the hearing within ten days of the request for a hearing. At the hearing, testimony, declarations, reports, or other relevant information may be presented on the person's alleged failure to comply with the treatment plan and the person shall have the right to present similar information on his or her own behalf.

              (2) If the court finds that there has been a violation of the treatment conditions it shall modify the dependency order, as necessary, to ensure the safety of the child. The modified order shall remain in effect until the party is in full compliance with the treatment requirements.


              Sec. 3. RCW 13.34.110 and 1991 c 340 s 3 are each amended to read as follows:

              The court shall hold a fact-finding hearing on the petition and, unless the court dismisses the petition, shall make written findings of fact, stating the reasons therefor, and after it has announced its findings of fact shall hold a hearing to consider disposition of the case immediately following the fact-finding hearing or at a continued hearing within fourteen days or longer for good cause shown. The parties need not appear at the fact-finding or dispositional hearing if ((all)) the parties, their attorneys, the guardian ad litem, and court-appointed special advocates are all in agreement((; but)). The court shall receive and review a social study before entering an order based on agreement. No social file or social study may be considered by the court in connection with the fact-finding hearing or prior to factual determination, except as otherwise admissible under the rules of evidence. Notice of the time and place of the continued hearing may be given in open court. If notice in open court is not given to a party, that party shall be notified by mail of the time and place of any continued hearing.

              All hearings may be conducted at any time or place within the limits of the county, and such cases may not be heard in conjunction with other business of any other division of the superior court. The general public shall be excluded, and only such persons may be admitted who are found by the judge to have a direct interest in the case or in the work of the court. If a child resides in foster care or in the home of a relative pursuant to a disposition order entered under RCW 13.34.130, the court may allow the child's foster parent or relative care provider to attend dependency review proceedings pertaining to the child for the sole purpose of providing information about the child to the court.

              Stenographic notes or any device which accurately records the proceedings may be required as provided in other civil cases pursuant to RCW 2.32.200.


              Sec. 4. RCW 13.34.120 and 1987 c 524 s 5 are each amended to read as follows:

              (1) To aid the court in its decision on disposition, a social study, consisting of a written evaluation of matters relevant to the disposition of the case, shall be made by the person or agency filing the petition. The study shall include all social records and may also include facts relating to the child's cultural heritage, and shall be made available to the court. The court shall consider the social file ((and)), social study, guardian ad litem report, the court-appointed special advocates report and any reports filed by a party at the disposition hearing in addition to evidence produced at the fact-finding hearing. At least ten working days before the disposition hearing, the department shall mail to the parent and his or her attorney a copy of the agency's social study and proposed service plan, which shall be in writing or in a form understandable to the parents or custodians. In addition, the department shall provide an opportunity for parents to review and comment on the plan at the community service office. If the parents disagree with the agency's plan or any part thereof, the parents shall submit to the court at least twenty-four hours before the hearing, in writing, or signed oral statement, an alternative plan to correct the problems which led to the finding of dependency. This section shall not interfere with the right of the parents or custodians to submit oral arguments regarding the disposition plan at the hearing.

              (2) In addition to the requirements set forth in subsection (1) of this section, a predisposition study to the court in cases of dependency alleged pursuant to RCW 13.34.030(2) (b) or (c) shall contain the following information:

              (a) A statement of the specific harm or harms to the child that intervention is designed to alleviate;

              (b) A description of the specific programs, for both the parents and child, that are needed in order to prevent serious harm to the child; the reasons why such programs are likely to be useful; the availability of any proposed services; and the agency's overall plan for ensuring that the services will be delivered;

              (c) If removal is recommended, a full description of the reasons why the child cannot be protected adequately in the home, including a description of any previous efforts to work with the parents and the child in the home; the in-home treatment programs which have been considered and rejected; and the parents' attitude toward placement of the child;

              (d) A statement of the likely harms the child will suffer as a result of removal. This section should include an exploration of the nature of the parent-child attachment and the meaning of separation and loss to both the parents and the child;

              (e) A description of the steps that will be taken to minimize harm to the child that may result if separation occurs; and

              (f) Behavior that will be expected before determination that supervision of the family or placement is no longer necessary.


              Sec. 5. RCW 13.34.145 and 1989 1st ex.s. c 17 s 18 are each amended to read as follows:

              (1) In all cases where a child has been placed in substitute care for at least fifteen months, a permanency planning hearing shall be held before the court no later than eighteen months following commencement of the placement episode.

              (2) At the permanency planning hearing, the court shall enter findings as required by RCW ((13.34.130(4))) 13.34.130(5). In addition the court shall: (a) Approve a permanent plan of care which can include one of the following: Adoption, guardianship, or placement of the child in the home of the child's parent; (b) require filing of a petition for termination of parental rights; or (c) dismiss the dependency, unless the court finds, based on clear, cogent, and convincing evidence, that it is in the best interest of the child to continue the dependency beyond eighteen months, based on a permanent plan of care. Extensions may only be granted in increments of twelve months or less.


              Sec. 6. RCW 13.34.150 and 1990 c 246 s 6 are each amended to read as follows:

              Any order made by the court in the case of a dependent child may be changed, modified, or set aside, only upon a showing of a change in circumstance or as provided in section 2 of this act.


              Sec. 7. RCW 13.34.162 and 1988 c 275 s 15 are each amended to read as follows:

              A determination of child support shall be based upon the child support schedule and standards ((adopted)) provided under chapter 26.19 RCW ((26.19.040)).


              NEW SECTION. Sec. 8. A new section is added to chapter 26.44 RCW to read as follows:

              (1) This chapter shall not be construed to authorize interference with child-raising practices, including reasonable parental discipline, which are not injurious to the child's health, welfare, and safety.

              (2) Nothing in this chapter may be used to prohibit the reasonable use of corporal punishment as a means of discipline.

              (3) No parent or guardian may be deemed abusive or neglectful solely by reason of the parent's or child's blindness, deafness, developmental disability, or other handicap.

              (4) A person reporting injury, abuse, or neglect to an adult dependent person shall not suffer negative consequences if the person reporting believes in good faith that the adult dependent person has been found legally incompetent or disabled.


              Sec. 9. RCW 26.44.020 and 1988 c 142 s 1 are each amended to read as follows:

              For the purpose of and as used in this chapter:

              (1) "Court" means the superior court of the state of Washington, juvenile department.

              (2) "Law enforcement agency" means the police department, the prosecuting attorney, the state patrol, the director of public safety, or the office of the sheriff.

              (3) "Practitioner of the healing arts" or "practitioner" means a person licensed by this state to practice ((podiatry)) podiatric medicine and surgery, optometry, chiropractic, nursing, dentistry, osteopathy and surgery, or medicine and surgery or to provide other health services. The term "practitioner" shall include a duly accredited Christian Science practitioner: PROVIDED, HOWEVER, That a person who is being furnished Christian Science treatment by a duly accredited Christian Science practitioner shall not be considered, for that reason alone, a neglected person for the purposes of this chapter.

              (4) "Institution" means a private or public hospital or any other facility providing medical diagnosis, treatment or care.

              (5) "Department" means the state department of social and health services.

              (6) "Child" or "children" means any person under the age of eighteen years of age.

              (7) "Professional school personnel" shall include, but not be limited to, teachers, counselors, administrators, child care facility personnel, and school nurses.

              (8) "Social service counselor" shall mean anyone engaged in a professional capacity during the regular course of employment in encouraging or promoting the health, welfare, support or education of children, or providing social services to adults or families, including mental health, drug and alcohol treatment, and domestic violence programs, whether in an individual capacity, or as an employee or agent of any public or private organization or institution.

              (9) "Psychologist" shall mean any person licensed to practice psychology under chapter 18.83 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.

              (10) "Pharmacist" shall mean any registered pharmacist under the provisions of chapter 18.64 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.

              (11) "Clergy" shall mean any regularly licensed or ordained minister, priest or rabbi of any church or religious denomination, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.

              (12) "((Child)) Abuse or neglect" shall mean the injury, sexual abuse, sexual exploitation, ((or)) negligent treatment, or maltreatment of a child, adult dependent, or developmentally disabled person by any person under circumstances which indicate that the child's or adult's health, welfare, and safety is harmed ((thereby)). An abused child is a child who has been subjected to child abuse or neglect as defined herein((: PROVIDED, That this subsection shall not be construed to authorize interference with child-raising practices, including reasonable parental discipline, which are not proved to be injurious to the child's health, welfare, and safety: AND PROVIDED FURTHER, That nothing in this section shall be used to prohibit the reasonable use of corporal punishment as a means of discipline. No parent or guardian shall be deemed abusive or neglectful solely by reason of the parent's or child's blindness, deafness, developmental disability, or other handicap)).

              (13) "Child protective services section" shall mean the child protective services section of the department.

              (14) "Adult dependent persons ((not able to provide for their own protection through the criminal justice system))" shall be defined as those persons over the age of eighteen years who have been found to be legally incompetent or disabled pursuant to chapter 11.88 RCW ((or found disabled to such a degree pursuant to said chapter, that such protection is indicated: PROVIDED, That no persons reporting injury, abuse, or neglect to an adult dependent person as defined herein shall suffer negative consequences if such a judicial determination of incompetency or disability has not taken place and the person reporting believes in good faith that the adult dependent person has been found legally incompetent pursuant to chapter 11.88 RCW)).

              (15) "Sexual exploitation" includes: (a) Allowing, permitting, or encouraging a child to engage in prostitution by any person; or (b) allowing, permitting, encouraging, or engaging in the obscene or pornographic photographing, filming, or depicting of a child ((for commercial purposes as those acts are defined by state law)) by any person.

              (16) "Negligent treatment or maltreatment" means an act or omission which evidences a serious disregard of consequences of such magnitude as to constitute a clear and present danger to the child's health, welfare, and safety.

              (17) "Developmentally disabled person" means a person who has a disability defined in RCW ((71.20.016)) 71A.10.020.

              (18) "Child protective services" means those services provided by the department designed to protect children from child abuse and neglect and safeguard the general welfare of such children and shall include investigations of child abuse and neglect reports, including reports regarding child care centers and family child care homes, and the development, management, and provision of or referral to services to ameliorate conditions which endanger the welfare of children, the coordination of necessary programs and services relevant to the prevention, intervention, and treatment of child abuse and neglect, and services to children to ensure that each child has a permanent home. In determining whether protective services should be provided, the department shall not decline to provide such services solely because of the child's unwillingness or developmental inability to describe the nature and severity of the abuse or neglect.

              (19) "Malice" or "maliciously" means an evil intent, wish, or design to vex, annoy, or injure another person. Such malice may be inferred from an act done in wilful disregard of the rights of another, or an act wrongfully done without just cause or excuse, or an act or omission of duty betraying a wilful disregard of social duty.


              Sec. 10. RCW 26.44.030 and 1991 c 111 s 1 are each amended to read as follows:

              (1) When any practitioner, professional school personnel, registered or licensed nurse, social service counselor, psychologist, pharmacist, licensed or certified child care providers or their employees, employee of the department, or juvenile probation officer has reasonable cause to believe that a child or adult dependent or developmentally disabled person, has suffered abuse or neglect, he or she shall report such incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040. The reporting requirement shall also apply to any adult who has previously reported or been the subject of a child abuse and neglect investigation involving a child or adult dependent or developmentally disabled person residing with them and has reasonable cause to believe that a child or adult dependent or developmentally disabled person, who resides with them, has suffered abuse or neglect. The report shall be made at the first opportunity, but in no case longer than forty-eight hours after there is reasonable cause to believe that the child or adult has suffered abuse or neglect. The report shall include the identity of the accused if known.

              (2) The reporting requirement of subsection (1) of this section does not apply to the discovery of abuse or neglect that occurred during childhood if it is discovered after the child has become an adult. However, if there is reasonable cause to believe other children, dependent adults, or developmentally disabled persons are or may be at risk of abuse or neglect by the accused, the reporting requirement of subsection (1) of this section shall apply.

              (3) Any other person who has reasonable cause to believe that a child or adult dependent or developmentally disabled person has suffered abuse or neglect may report such incident to the proper law enforcement agency or to the department of social and health services as provided in RCW 26.44.040.

              (4) The department, upon receiving a report of an incident of abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means or who has been subjected to sexual abuse, shall report such incident to the proper law enforcement agency. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the department shall notify the proper law enforcement agency within twenty-four hours after a report is received by the department. In all other cases, the department shall notify the law enforcement agency within seventy-two hours after a report is received by the department. If the department makes an oral report, a written report shall also be made to the proper law enforcement agency within five days thereafter.

              (5) Any law enforcement agency receiving a report of an incident of abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means, or who has been subjected to sexual abuse, shall report such incident in writing as provided in RCW 26.44.040 to the proper county prosecutor or city attorney for appropriate action whenever the law enforcement agency's investigation reveals that a crime may have been committed. The law enforcement agency shall also notify the department of all reports received and the law enforcement agency's disposition of them. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the law enforcement agency shall notify the department within twenty-four hours. In all other cases, the law enforcement agency shall notify the department within seventy-two hours after a report is received by the law enforcement agency.

              (6) Any county prosecutor or city attorney receiving a report under subsection (5) of this section shall notify the victim, any persons the victim requests, and the local office of the department, of the decision to charge or decline to charge a crime, within five days of making the decision.

              (7) The department may conduct ongoing case planning and consultation with those persons or agencies required to report under this section, with consultants designated by the department, and with designated representatives of Washington Indian tribes if the client information exchanged is pertinent to cases currently receiving child protective services or department case services for the developmentally disabled. Upon request, the department shall conduct such planning and consultation with those persons required to report under this section if the department determines it is in the best interests of the child or developmentally disabled person. Information considered privileged by statute and not directly related to reports required by this section shall not be divulged without a valid written waiver of the privilege.

              (8) Any case referred to the department by a physician licensed under chapter 18.57 or 18.71 RCW on the basis of an expert medical opinion that child abuse, neglect, or sexual assault has occurred and that the child's safety will be seriously endangered if returned home, the department shall file a dependency petition unless a second licensed physician of the parents' choice believes that such expert medical opinion is incorrect. If the parents fail to designate a second physician, the department may make the selection. If a physician finds that a child has suffered abuse or neglect but that such abuse or neglect does not constitute imminent danger to the child's health or safety, and the department agrees with the physician's assessment, the child may be left in the parents' home while the department proceeds with reasonable efforts to remedy parenting deficiencies.

              (9) Persons or agencies exchanging information under subsection (7) of this section shall not further disseminate or release the information except as authorized by state or federal statute. Violation of this subsection is a misdemeanor.

              (10) Upon receiving reports of abuse or neglect, the department or law enforcement agency may interview children. The interviews may be conducted on school premises, at day-care facilities, at the child's home, or at other suitable locations outside of the presence of parents. Parental notification of the interview shall occur at the earliest possible point in the investigation that will not jeopardize the safety or protection of the child or the course of the investigation. Prior to commencing the interview the department or law enforcement agency shall determine whether the child wishes a third party to be present for the interview and, if so, shall make reasonable efforts to accommodate the child's wishes. Unless the child objects, the department or law enforcement agency shall make reasonable efforts to include a third party in any interview so long as the presence of the third party will not jeopardize the course of the investigation.

              (11) Upon receiving a report of incidents, conditions, or circumstances of child abuse and neglect, the department shall have access to all relevant records of the child in the possession of mandated reporters and their employees.

              (12) The department shall maintain investigation records and conduct timely and periodic reviews of all cases constituting abuse and neglect. The department shall maintain a log of screened-out nonabusive cases.

              (13) The department ((of social and health services)) shall((, within funds appropriated for this purpose,)) use a risk assessment ((tool)) process when investigating child abuse and neglect referrals. ((The tool shall be used, on a pilot basis, in three local office service areas.)) The department shall present the risk factors at all hearings in which the placement of a dependent child is an issue. The department shall, within funds appropriated for this purpose, offer enhanced community-based services to persons who are determined not to require further state intervention.

              The department shall provide annual reports to the ((ways and means)) appropriate committees of the senate and house of representatives on the ((use)) effectiveness of the ((tool by December 1, 1989. The report shall include recommendations on the continued use and possible expanded use of the tool)) risk assessment process.

              (14) Upon receipt of ((such)) a report of abuse or neglect the law enforcement agency may arrange to interview the person making the report and any collateral sources to determine if any malice is involved in the reporting.


              Sec. 11. RCW 26.44.040 and 1987 c 206 s 4 are each amended to read as follows:

              An immediate oral report shall be made by telephone or otherwise to the proper law enforcement agency or the department of social and health services and, upon request, shall be followed by a report in writing. Such reports shall contain the following information, if known:

              (1) The name, address, and age of the child or adult dependent or developmentally disabled person;

              (2) The name and address of the child's parents, stepparents, guardians, or other persons having custody of the child or the residence of the adult dependent or developmentally disabled person;

              (3) The nature and extent of the injury or injuries;

              (4) The nature and extent of the neglect;

              (5) The nature and extent of the sexual abuse;

              (6) Any evidence of previous injuries, including their nature and extent; and

              (7) Any other information which may be helpful in establishing the cause of the child's or adult dependent or developmentally disabled person's death, injury, or injuries and the identity of the alleged perpetrator or perpetrators.


              Sec. 12. RCW 26.44.063 and 1988 c 190 s 3 are each amended to read as follows:

              (1) It is the intent of the legislature to minimize trauma to a child involved in an allegation of sexual or physical abuse. The legislature declares that removing the child from the home often has the effect of further traumatizing the child. It is, therefore, the legislature's intent that the alleged offender, rather than the child, shall be removed from the home and that this should be done at the earliest possible point of intervention in accordance with RCW 10.31.100, 13.34.130, this section, and RCW 26.44.130.

              (2) In any judicial proceeding in which it is alleged that a child has been subjected to sexual or physical abuse, if the court finds reasonable grounds to believe that an incident of sexual or physical abuse has occurred, the court may, on its own motion, or the motion of the guardian ad litem or other parties, issue a temporary restraining order or preliminary injunction restraining or enjoining the person accused of committing the abuse from:

              (a) Molesting or disturbing the peace of the alleged victim;

              (b) Entering the family home of the alleged victim except as specifically authorized by the court; or

              (c) Having any contact with the alleged victim, except as specifically authorized by the court.

              (3) In issuing a temporary restraining order or preliminary injunction, the court may impose any additional restrictions that the court in its discretion determines are necessary to protect the child from further abuse or emotional trauma pending final resolution of the abuse allegations.

              (4) The court shall issue a temporary restraining order prohibiting a person from entering the family home if the court finds that the order would eliminate the need for an out-of-home placement to protect the child's right to nurturance, health, and safety and is sufficient to protect the child from further sexual or physical abuse or coercion.

              (5) The court may issue a temporary restraining order without requiring notice to the party to be restrained or other parties only if it finds on the basis of the moving affidavit or other evidence that irreparable injury could result if an order is not issued until the time for responding has elapsed.

              (6) A temporary restraining order or preliminary injunction:

              (a) Does not prejudice the rights of a party or any child which are to be adjudicated at subsequent hearings in the proceeding; and

              (b) May be revoked or modified.

              (7) The person having physical custody of the child shall have an affirmative duty to assist in the enforcement of the restraining order including but not limited to a duty to notify the court as soon as practicable of any violation of the order, a duty to request the assistance of law enforcement officers to enforce the order, and a duty to notify the department of social and health services of any violation of the order as soon as practicable if the department is a party to the action. Failure by the custodial party to discharge these affirmative duties shall be subject to contempt proceedings.

              (8) Willful violation of a court order entered under this section is a misdemeanor. A written order shall contain the court's directive and shall bear the legend: "Violation of this order with actual notice of its terms is a criminal offense under chapter 26.44 RCW, is also subject to contempt proceedings, and will subject a violator to arrest."


              Sec. 13. RCW 26.44.067 and 1989 c 373 s 23 are each amended to read as follows:

              (1) Any person having had actual notice of the existence of a restraining order issued by a court of competent jurisdiction pursuant to RCW 26.44.063 who refuses to comply with the provisions of such order ((when requested by any peace officer of the state)) shall be guilty of a misdemeanor.

              (2) The notice requirements of subsection (1) of this section may be satisfied by the peace officer giving oral or written evidence to the person subject to the order by reading from or handing to that person a copy certified by a notary public or the clerk of the court to be an accurate copy of the original court order which is on file. The copy may be supplied by the court or any party.

              (3) The remedies provided in this section shall not apply unless restraining orders subject to this section shall bear this legend: VIOLATION OF THIS ORDER WITH ACTUAL NOTICE OF ITS TERMS IS A CRIMINAL OFFENSE UNDER CHAPTER 26.44 RCW AND IS ALSO SUBJECT TO CONTEMPT PROCEEDINGS.

              (4) It is a defense to prosecution under subsection (1) of this section that the court order was issued contrary to law or court rule. No right of action shall accrue against any peace officer acting upon a properly certified copy of a court order lawful on its face if such officer employs otherwise lawful means to effect the arrest.


              Sec. 14. RCW 26.44.100 and 1985 c 183 s 1 are each amended to read as follows:

              The legislature finds parents and children often are not aware of their due process rights when agencies are investigating allegations of child abuse and neglect. The legislature reaffirms that all citizens, including parents, shall be afforded due process, that protection of children remains the priority of the legislature, and that this protection includes protecting the family unit from unnecessary disruption. To facilitate this goal, the legislature wishes to ensure that parents and children be advised in writing and orally, if feasible, of their basic rights and other specific information as set forth in this ((act)) chapter, provided that nothing contained in this ((act)) chapter shall cause any delay in protective custody action.


              NEW SECTION. Sec. 15. A new section is added to chapter 26.44 RCW to read as follows:

              (1) If a person who has unsupervised visitation rights with a minor child pursuant to a court order is accused of sexually or physically abusing a child and the alleged abuse has been reported to the proper authorities for investigation, the law enforcement officer conducting the investigation may file an application for a preliminary injunction with the court to enjoin the alleged abuser from exercising visitation rights during the investigation. The investigating law enforcement officer shall submit an affidavit stating that the person is currently under investigation for sexual or physical abuse of a child, that there is a risk of harm to the child if a preliminary injunction is not entered, and that the prosecuting attorney has informed the officer that the attorney does not have enough information at the time to determine whether prosecution is warranted. The court shall schedule an emergency hearing on the application for a preliminary injunction, providing a minimum one-day notice requirement to the alleged abuser. The preliminary injunction shall be issued for up to ninety days or until the investigation has been concluded in favor of the alleged abuser, whichever is shorter.

              (2) Willful violation of a court order entered under this section is a misdemeanor. The court order shall state: "Violation of this order is a criminal offense under chapter 26.44 RCW and will subject the violator to arrest.""


              Signed by Representatives Leonard, Chair; Riley, Vice Chair; Brown; Karahalios; Patterson; Thibaudeau; and Wolfe.


              MINORITY recommendation: Do not pass. Signed by Representatives Cooke, Ranking Minority Member; Talcott, Assistant Ranking Minority Member; Lisk; and Padden.


              Passed to Committee on Rules for second reading.


April 1, 1993

SB 5441              Prime Sponsor, McAuliffe: Updating statutes for rehabilitation services for handicapped persons. Reported by Committee on Human Services


              MAJORITY recommendation: Do pass. Signed by Representatives Leonard, Chair; Riley, Vice Chair; Cooke, Ranking Minority Member; Talcott, Assistant Ranking Minority Member; Brown; Karahalios; Lisk; Padden; Patterson; Thibaudeau; and Wolfe.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5471            Prime Sponsor, Committee on Law & Justice: Changing provisions relating to nonprofit corporations. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass. Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.


              Excused: Representatives Dellwo and Peery.


              Passed to Committee on Rules for second reading.


April 1, 1993

2SSB 5511          Prime Sponsor, Committee on Ways & Means: Enabling voter registration by mail. Reported by Committee on State Government


              MAJORITY recommendation: Do pass. Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; and Pruitt.


              Excused: Representative King.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5512            Prime Sponsor, Committee on Trade, Technology & Economic Development: Studying the impact on state businesses of international trade agreements. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert:

              "NEW SECTION. Sec. 1. The legislature finds that the most recent round of negotiations on the general agreement on tariffs and trade and the North American free trade agreement of 1992 have the potential for significant impact on the state's economy, environment, and businesses.

              It is the purpose of this act to provide information to the state's increased opportunities as well as increased risks posed by recent international trade agreements.


              NEW SECTION. Sec. 2. (1) The department of trade and economic development shall undertake a study of the impact of the Uruguay round of the general agreement on tariffs and trade and the North American free trade agreement on the state's economy, environment, and businesses. The study shall:

              (a) Focus on the competitive threats and opportunities presented by the trade agreements to the state's economy and environment; and

              (b) Focus on the competitive threats and opportunities presented by the trade agreements to the state's six most significant traded sectors as measured by the number of employees in the sector and the aggregate dollar volume of goods and services traded in the sector, including:

              (i) Identify the competitive advantages and weaknesses of the state's firms in each of the six sectors;

              (ii) Identify the competitive advantages and weaknesses of the most competitive firms in each of the six sectors;

              (iii) Project the number of jobs which may be created or lost within each of the six sectors as a result of the agreements;

              (iv) Project the potential gain or loss of state revenue from each of the six sectors as a result of the agreements;

              (v) Discuss the effect of the agreements on the trade surplus or deficit, whichever is appropriate, for each of the six sectors, as well as the state's overall balance of trade;

              (vi) Identify those sectors, or firms within sectors, which exhibit the greatest potential to move their operations out-of-state as a result of the agreements;

              (vii) Identify what measures, if any, can be undertaken domestically to improve the competitiveness of each of these sectors under the agreements; and

              (viii) Identify traded sectors other than those comprising the six most significant that are presented with competitive advantages and exhibit significant potential for growth as a result of the agreements.

              (2) The department shall:

              (a) Consult with the department of agriculture, the department of community development, the employment security department, the department of social and health services, the department of labor and industries, the department of ecology, the private sector, and other appropriate organizations or individuals to assist the department compete this study; and

              (b) Identify and utilize in the study existing analyses, studies, and data from the federal government, national and state business and labor organizations, and educational and policy institutes.

              (3) The department of trade and economic development shall report the findings of the study conducted under this section before July 1, 1994, to the senate committee on trade, technology and economic development and the house of representatives committee on trade, economic development and housing.


              NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill number, is not provided in the omnibus appropriations act by June 30, 1993, this act is null and void."


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Campbell; Conway; Morris; Quall; Springer; and Valle.


              MINORITY recommendation: Do not pass. Signed by Representatives Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Casada; Schoesler; and Wood.


              Excused: Representative Sheldon.


              Referred to Committee on Appropriations.


April 1, 1993

2SSB 5514          Prime Sponsor, Committee on Ways & Means: Creating the economic development grants program. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, line 4, strike "office of financial management" and insert "department of community development"

              On page 2, line 7, after "in the" strike "office of financial management" and insert "department of community development"


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.


              Excused: Representative Sheldon.


              Referred to Committee on Appropriations.


April 1, 1993

SSB 5520            Prime Sponsor, Committee on Health & Human Services: Modifying controlled substances definitions, standards, and schedule. Reported by Committee on Health Care


              MAJORITY recommendation: Do pass. Signed by Representatives Dellwo, Chair; L. Johnson, Vice Chair; Dyer, Ranking Minority Member; Ballasiotes, Assistant Ranking Minority Member; Appelwick; Conway; Cooke; R. Johnson; Lisk; Mastin; Mielke; Morris; Thibaudeau; and Veloria.


              Excused: Representatives Campbell and Flemming.


              Passed to Committee on Rules for second reading.


April 1, 1993

ESB 5522            Prime Sponsor, Wojahn: Providing a program to reduce alcohol and drug use during pregnancy. Reported by Committee on Human Services


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature recognizes that the use of alcohol and other drugs during pregnancy can cause medical, psychological, and social problems for women and infants. The legislature further recognizes that communities are increasingly concerned about this problem and the associated costs to the mothers, infants, and society as a whole. The legislature recognizes that the department of health and other agencies are focusing on primary prevention activities to reduce the use of alcohol or drugs during pregnancy but few efforts have focused on secondary prevention efforts aimed at intervening in the lives of women already involved in the use of alcohol or other drugs during pregnancy. The legislature recognizes that the best way to prevent problems for chemically dependent pregnant women and their resulting children is to engage the women in alcohol or drug treatment. The legislature acknowledges that treatment professionals find pretreatment services to clients to be important in engaging women in alcohol or drug treatment. The legislature further recognizes that pretreatment services should be provided at locations where chemically dependent women are likely to be found, including correctional facilities, public health clinics, and domestic violence or homeless shelters. Therefore the legislature intends to prevent the detrimental effects of alcohol or other drug use to women and their resulting infants by promoting the establishment of local programs to help facilitate a woman's entry into alcohol or other drug treatment. These programs shall provide secondary prevention services and provision of opportunities for immediate treatment so that women who seek help are welcomed rather than ostracized.


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

              (1) "Alcoholism" means a disease, characterized by a dependency on alcoholic beverages, loss of control over the amount and circumstances of alcohol use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued and impairment of health or disruption of social or economic functioning.

              (2) "Approved treatment program" means a discrete program of chemical dependency treatment provided by a treatment program certified by the department of social and health services as meeting standards adopted under this chapter.

              (3) "Assessment" means an interview with an individual to determine if he or she is chemically dependent and in need of referral to an approved treatment program.

              (4) "Chemically dependent individual" means someone suffering from alcoholism or drug addiction, or dependence on alcohol or one or more other psychoactive chemicals.

              (5) "Department" means the department of social and health services.

              (6) "Domestic violence" is a categorization of offenses, as defined in RCW 10.99.020, committed by one family or household member against another.

              (7) "Domestic violence program" means a shelter or other program which provides services to victims of domestic violence.

              (8) "Drug addiction" means a disease characterized by a dependency on psychoactive chemicals, loss of control over the amount and circumstances of use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued, and impairment of health or disruptions of social or economic functioning.

              (9) "Family or household members" means a family or household member as defined in RCW 10.99.020.

              (10) "Pretreatment" means the period of time prior to an individual's enrollment in alcohol or drug treatment.

              (11) "Pretreatment services" means activities taking place prior to treatment that include identification of individuals using alcohol or drugs, education, assessment of their use, evaluation of need for treatment, referral to an approved treatment program, and advocacy on a client's behalf with social service agencies or others to ensure and coordinate a client's entry into treatment.

              (12) "Primary prevention" means providing information about the effects of alcohol or drug use to individuals so they will avoid using these substances.

              (13) "Secondary prevention" means identifying and obtaining an assessment on individuals using alcohol or other drugs for referral to treatment when indicated.

              (14) "Secretary" means the secretary of the department of social and health services.

              (15) "Treatment" means the broad range of emergency detoxification, residential, and outpatient services and care, including diagnostic evaluation, chemical dependency education and counseling, medical, psychiatric, psychological, and social service care, vocational rehabilitation, and career counseling, that may be extended to chemically dependent individuals and their families.

              (16) "Treatment program" means an organization, institution, or corporation, public or private, engaged in the care, treatment, or rehabilitation of chemically dependent individuals.


              NEW SECTION. Sec. 3. The secretary shall develop and promote state-wide secondary prevention strategies designed to increase the use of alcohol and drug treatment services by women of child-bearing age, before, during, and immediately after pregnancy. These efforts are conducted through the division of alcohol and substance abuse. The secretary shall:

              (1) Promote development of four pilot demonstration projects in the state to be called pretreatment projects for women of child bearing age. Two of the pilot projects are in urban areas and two are in rural areas.

              (2) Ensure that two of the projects are located in public health department clinics that provide maternity services, and one is located with a domestic violence program.

              (3) Hire four certified chemical dependency counselors to work as substance abuse educators in each of the four demonstration projects. The counselors may rotate between more than one clinic or domestic violence program. The counselor for the domestic violence program shall also be trained in domestic violence issues.

              (4) Ensure that the duties and activities of the certified chemical dependency counselors include, at a minimum, the following:

              (a) Identifying substance-using pregnant women in the health clinics and domestic violence programs;

              (b) Educating the women and agency staff on the effects of alcohol or drugs on health, pregnancy, and unborn children;

              (c) Determining the extent of the women's substance use;

              (d) Evaluating the women's need for treatment;

              (e) Making referrals for chemical dependency treatment if indicated;

              (f) Facilitating the women's entry into treatment; and

              (g) Advocating on the client's behalf with other social service agencies or others to ensure and coordinate clients into treatment.

              (5) Ensure that administrative costs of the department are limited to ten percent of the funds appropriated for the project.


              NEW SECTION. Sec. 4. The department of social and health services shall operate the pilot demonstration projects established in this act within existing federal funding levels. No additional general fund-state expenditures shall be made for the purposes of this act.


              NEW SECTION. Sec. 5. Sections 2 and 3 of this act are each added to Title 70 RCW."


              Signed by Representatives Leonard, Chair; Riley, Vice Chair; Cooke, Ranking Minority Member; Talcott, Assistant Ranking Minority Member; Brown; Karahalios; Lisk; Padden; Patterson; Thibaudeau; and Wolfe.


              Referred to Committee on Appropriations.


April 1, 1993

SB 5584              Prime Sponsor, Franklin: Creating the Washington housing policy act. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. (1) The legislature finds that:

              (a) Housing is of vital state-wide importance to the health, safety, and welfare of the residents of the state;

              (b) Safe, affordable housing is an essential factor in stabilizing communities;

              (c) Residents must have a choice of housing opportunities within the community where they choose to live;

              (d) Housing markets are linked to a healthy economy and can contribute to the state's economy;

              (e) Land supply is a major contributor to the cost of housing;

              (f) Housing must be an integral component of any comprehensive community and economic development strategy;

              (g) State and local government must continue working cooperatively toward the enhancement of increased housing units by reviewing, updating, and removing conflicting regulatory language;

              (h) State and local government should work together in developing creative ways to reduce the shortage of housing;

              (i) The lack of a coordinated state housing policy inhibits the effective delivery of housing for some of the state's most vulnerable citizens and those with limited incomes; and

              (j) It is in the public interest to adopt a statement of housing policy objectives.

              (2) The legislature declares that the purposes of the Washington housing policy act are to:

              (a) Provide policy direction to the public and private sectors in their attempt to meet the shelter needs of Washington residents;

              (b) Reevaluate housing and housing-related programs and policies in order to ensure proper coordination of those programs and policies to meet the housing needs of Washington residents;

              (c) Improve the delivery of state services and assistance to very low-income and low-income households and special needs populations;

              (d) Strengthen partnerships among all levels of government, and the public and private sectors, including for-profit and nonprofit organizations, in the production and operation of housing to targeted populations including low-income and moderate-income households;

              (e) Increase the supply of housing for persons with special needs;

              (f) Encourage collaborative planning with social service providers;

              (g) Encourage financial institutions to increase residential mortgage lending; and

              (h) Coordinate housing into comprehensive community and economic development strategies at the state and local level.


              NEW SECTION. Sec. 2. It is the goal of the state of Washington to coordinate, encourage, and direct, when necessary, the efforts of the public and private sectors of the state and to cooperate and participate, when necessary, in the attainment of a decent home in a healthy, safe environment for every resident of the state. The legislature declares that attainment of that goal is a state priority.


              NEW SECTION. Sec. 3. The objectives of the Washington housing policy act shall be to attain the state's goal of a decent home in a healthy, safe environment for every resident of the state by strengthening public and private institutions that are able to:

              (1) Develop an adequate and affordable supply of housing for all economic segments of the population;

              (2) Assist very low-income and special needs households who cannot obtain affordable, safe, and adequate housing in the private market;

              (3) Encourage and maintain home ownership opportunities;

              (4) Reduce life cycle housing costs while preserving public health and safety;

              (5) Preserve the supply of existing affordable housing;

              (6) Provide housing for special needs populations;

              (7) Ensure fair and equal access to the housing market;

              (8) Increase the availability of mortgage credit at low interest rates; and

              (9) Coordinate and be consistent with the goals, objectives, and required housing element of the comprehensive plan in the state's growth management act in RCW 36.70A.070.


              NEW SECTION. Sec. 4. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

              (1) "Affordable housing" means residential housing that is rented or owned by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income.

              (2) "Department" means the department of community development.

              (3) "Director" means the director of community development.

              (4) "Nonprofit organization" means any public or private nonprofit organization that: (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes significant activities related to the provision of decent housing that is affordable to very low-income, low-income, or moderate-income households and special needs populations.

              (5) "Tenant-based organization" means a nonprofit organization whose governing body includes a majority of members who reside in the housing development and are considered low-income households.


              NEW SECTION. Sec. 5. (1) The department shall establish the affordable housing advisory board to consist of twenty-one members.

              (a) The following eighteen members shall be appointed by the governor:

              (i) Two representatives of the residential construction industry;

              (ii) Two representatives of the home mortgage lending profession;

              (iii) One representative of the real estate sales profession;

              (iv) One representative of the apartment management and operation industry;

              (v) One representative of the for-profit housing development industry;

              (vi) One representative of the nonprofit housing development industry;

              (vii) One representative of homeless shelter operators;

              (viii) One representative of lower-income persons;

              (ix) One representative of special needs populations;

              (x) One representative of public housing authorities as created under chapter 35.82 RCW;

              (xi) Two representatives of the Washington association of counties, one representative shall be from a county that is located east of the crest of the Cascade mountains;

              (xii) Two representatives of the association of Washington cities, one representative shall be from a city that is located east of the crest of the Cascade mountains;

              (xiii) One representative to serve as chair of the affordable housing advisory board;

              (xiv) One representative at large.

              (b) The following three members shall serve as ex officio, nonvoting members:

              (i) The director or the director's designee;

              (ii) The executive director of the Washington state housing finance commission or the executive director's designee; and

              (iii) The secretary of social and health services or the secretary's designee.

              (2)(a) The members of the affordable housing advisory board appointed by the governor shall be appointed for four-year terms, except that the chair shall be appointed to serve a two-year term. The terms of five of the initial appointees shall be for two years from the date of appointment and the terms of six of the initial appointees shall be for three years from the date of appointment. The governor shall designate the appointees who will serve the two-year and three-year terms. The members of the advisory board shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

              (b) The governor, when making appointments to the affordable housing advisory board, shall make appointments that reflect the cultural diversity of the state of Washington.

              (3) The affordable housing advisory board shall serve as the department's principal advisory body on housing and housing-related issues, and replaces the department's existing boards and task forces on housing and housing-related issues.

              (4) The affordable housing advisory board shall meet regularly and may appoint technical advisory committees, which may include members of the affordable housing advisory board, as needed to address specific issues and concerns.

              (5) The department, in conjunction with the Washington state housing finance commission and the department of social and health services, shall supply such information and assistance as are deemed necessary for the advisory board to carry out its duties under this section.

              (6) The department shall provide administrative and clerical assistance to the affordable housing advisory board.


              NEW SECTION. Sec. 6. The affordable housing advisory board shall:

              (1) Analyze those solutions and programs that could begin to address the state's need for housing that is affordable for all economic segments of the state, and special needs populations, including but not limited to programs or proposals which provide for:

              (a) Financing for the acquisition, rehabilitation, preservation, or construction of housing;

              (b) Use of publicly owned land and buildings as sites for affordable housing;

              (c) Coordination of state initiatives with federal initiatives and financing programs that are referenced in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended, and development of an approved housing strategy as required in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended;

              (d) Streamlining, where appropriate and not detrimental to the public health, safety, and welfare, of the various state and local regulations, and building codes governing the housing industry;

              (e) Stimulating public and private sector cooperation in the development of affordable housing; and

              (f) Development of solutions and programs affecting housing, including the equitable geographic distribution of housing for all economic segments, as the advisory board deems necessary;

              (2) Consider both homeownership and rental housing as viable options for the provision of housing. The advisory board shall give consideration to various types of residential construction and innovative housing options, including but not limited to manufactured housing;

              (3) Review, evaluate, and make recommendations regarding existing and proposed housing programs and initiatives including but not limited to tax policies, land use policies, and financing programs. The advisory board shall provide recommendations to the director, along with the department's response in the annual housing report to the legislature required in section 12 of this act; and

              (4) Prepare and submit to the director, by each December 1st, beginning December 1, 1993, a report detailing its findings and make specific program, legislative, and funding recommendations and any other recommendations it deems appropriate.


              NEW SECTION. Sec. 7. A new section is added to chapter 43.63A RCW to read as follows:

              (1) The department shall, in consultation with the affordable housing advisory board created in section 5 of this act, report to the legislature on the development and placement of accessory apartments. The department shall produce a written report by December 15, 1993, which:

              (a) Identifies local governments that allow the siting of accessory apartments in areas zoned for single-family residential use; and

              (b) Makes recommendations to the legislature designed to encourage the development and placement of accessory apartments in areas zoned for single-family residential use.

              (2) The recommendations made under subsection (1) of this section shall not take effect before ninety days following adjournment of the 1994 regular legislative session.

              (3) Unless provided otherwise by the legislature, by December 31, 1994, local governments shall incorporate in their development regulations, zoning regulations, or official controls the recommendations contained in subsection (1) of this section. The accessory apartment provisions shall be part of the local government's development regulation, zoning regulation, or official control. To allow local flexibility, the recommendations shall be subject to such regulations, conditions, procedures, and limitations as determined by the local legislative authority.

              (4) As used in this section, "local government" means:

              (a) A city or code city with a population that exceeds twenty thousand;

              (b) A county that is required to or has elected to plan under the state growth management act; and

              (c) A county with a population that exceeds one hundred twenty-five thousand.


              NEW SECTION. Sec. 8. A new section is added to chapter 35.63 RCW to read as follows:

              Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.


              NEW SECTION. Sec. 9. A new section is added to chapter 35A.63 RCW to read as follows:

              Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.


              NEW SECTION. Sec. 10. A new section is added to chapter 36.70 RCW to read as follows:

              Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.


              NEW SECTION. Sec. 11. A new section is added to chapter 36.70A RCW to read as follows:

              Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.


              NEW SECTION. Sec. 12. (1) The department shall, in consultation with the affordable housing advisory board created in section 5 of this act, prepare and from time to time amend a five-year housing advisory plan. The purpose of the plan is to document the need for affordable housing in the state and the extent to which that need is being met through public and private sector programs, to facilitate planning to meet the affordable housing needs of the state, and to enable the development of sound strategies and programs for affordable housing. The information in the five-year housing advisory plan must include:

              (a) An assessment of the state's housing market trends;

              (b) An assessment of the housing needs for all economic segments of the state and special needs populations;

              (c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;

              (d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state;

              (e) An identification of state and local regulatory barriers to affordable housing and proposed regulatory and administrative techniques designed to remove barriers to the development and placement of affordable housing; and

              (f) Specific recommendations, policies, or proposals for meeting the affordable housing needs of the state.

              (2)(a) The five-year housing advisory plan required under subsection (1) of this section must be submitted to the legislature on or before February 1, 1994, and subsequent plans must be submitted every five years thereafter.

              (b) Each February 1st, beginning February 1, 1995, the department shall submit an annual progress report, to the legislature, detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs.


              NEW SECTION. Sec. 13. A new section is added to chapter 43.63A RCW to read as follows:

              (1) The department shall be the principal state department responsible for coordinating federal and state resources and activities in housing, except for programs administered by the Washington state housing finance commission under chapter 43.180 RCW, and for evaluating the operations and accomplishments of other state departments and agencies as they affect housing.

              (2) The department shall work with local governments, tribal organizations, local housing authorities, nonprofit community or neighborhood-based organizations, and regional or state-wide nonprofit housing assistance organizations, for the purpose of coordinating federal and state resources with local resources for housing.


              Sec. 14. RCW 43.185.110 and 1991 c 204 s 4 are each amended to read as follows:

              ((The director shall prepare an annual report and shall send copies to the chair of the house of representatives committee on housing, the chair of the senate committee on commerce and labor, and one copy to the staff of each committee that summarizes the housing trust fund's income, grants and operating expenses, implementation of its program, and any problems arising in the administration thereof. The director shall promptly appoint a low-income housing assistance advisory committee composed of a representative from each of the following groups: Apartment owners, realtors, mortgage lending or servicing institutions, private nonprofit housing assistance programs, tenant associations, and public housing assistance programs.)) The affordable housing advisory ((group)) board established in section 5 of this act shall advise the director on housing needs in this state, including housing needs for persons who are mentally ill or developmentally disabled or youth who are blind or deaf or otherwise disabled, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter. Such advice shall be consistent with policies and plans developed by regional support networks according to chapter 71.24 RCW for the mentally ill and the developmental disabilities planning council for the developmentally disabled.


              Sec. 15. RCW 43.185A.020 and 1991 c 356 s 11 are each amended to read as follows:

              The affordable housing program is created in the department of community development for the purpose of developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income households in the state of Washington. The program shall be developed and administered by the department with advice and input from the ((low-income [housing] assistance advisory committee established in RCW 43.185.110)) affordable housing advisory board established in section 5 of this act.


              Sec. 16. RCW 35.82.070 and 1991 c 167 s 1 are each amended to read as follows:

              An authority shall constitute a public body corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others herein granted:

              (1) To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual succession; to make and execute contracts and other instruments, including but not limited to partnership agreements and joint venture agreements, necessary or convenient to the exercise of the powers of the authority; to participate in the organization or the operation of a nonprofit corporation which has as one of its purposes to provide or assist in the provision of housing for persons of low income; and to make and from time to time amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority.

              (2) Within its area of operation: To prepare, carry out, acquire, lease and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof; to agree to rent or sell dwellings forming part of the projects to or for persons of low income. Where an agreement or option is made to sell a dwelling to a person of low income, the authority may convey the dwelling to the person upon fulfillment of the agreement irrespective of whether the person is at the time of the conveyance a person of low income. Leases, options, agreements, or conveyances may include such covenants as the authority deems appropriate to assure the achievement of the objectives of this chapter.

              (3) To acquire, lease, rent, sell, or otherwise dispose of any commercial space located in buildings or structures containing a housing project or projects.

              (4) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; and (notwithstanding anything to the contrary contained in this chapter or in any other provision of law) to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor, and comply with any conditions which the federal government may have attached to its financial aid of the project.

              (5) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and (subject to the limitations contained in this chapter) to establish and revise the rents or charges therefor; to own or manage buildings containing a housing project or projects as well as commercial space or other dwelling units that do not constitute a housing project as that term is defined in this chapter: PROVIDED, That notwithstanding the provisions under subsection (1) of this section, dwelling units made available or sold to persons of low income, together with functionally related and subordinate facilities, shall occupy ((at least thirty percent of the interior space of any individual building other than a detached single-family or duplex residential building or mobile or manufactured home and)) at least fifty percent of the interior space in the total development owned by the authority or at least fifty percent of the total number of units in the development owned by the authority, whichever produces the greater number of units for persons of low income, and for mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park owned by the authority; to own, hold, and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise including financial assistance and other aid from the state or any public body, person or corporation, any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein; to sell, lease, exchange, transfer, or dispose of any real or personal property or interest therein at less than fair market value to a governmental entity for any purpose when such action assists the housing authority in carrying out its powers and purposes under this chapter, to a low-income person or family for the purpose of providing housing for that person or family, or to a nonprofit corporation provided the nonprofit corporation agrees to sell the property to a low-income person or family or to use the property for the provision of housing for persons of low income for at least twenty years; to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards; to procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or parts thereof issued by an authority, including the power to pay premiums on any such insurance.

              (6) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be canceled.

              (7) Within its area of operation: To investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where slum areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income; to make studies and recommendations relating to the problem of clearing, replanning and reconstructing of slum areas, and the problem of providing dwelling accommodations for persons of low income, and to cooperate with the city, the county, the state or any political subdivision thereof in action taken in connection with such problems; and to engage in research, studies and experimentation on the subject of housing.

              (8) Acting through one or more commissioners or other person or persons designated by the authority: To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; to administer oaths, issue subpoenas requiring the attendance of witnesses or the production of books and papers and to issue commissions for the examination of witnesses who are outside of the state or unable to attend before the authority, or excused from attendance; to make available to appropriate agencies (including those charged with the duty of abating or requiring the correction of nuisances or like conditions, or of demolishing unsafe or insanitary structures within its area of operation) its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare.

              (9) To initiate eviction proceedings against any tenant as provided by law. Activity occurring in any housing authority unit that constitutes a violation of chapter 69.41, 69.50 or 69.52 RCW shall constitute a nuisance for the purpose of RCW 59.12.030(5).

              (10) To exercise all or any part or combination of powers herein granted.

              No provisions of law with respect to the acquisition, operation or disposition of property by other public bodies shall be applicable to an authority unless the legislature shall specifically so state.

              (11) To agree (notwithstanding the limitation contained in RCW 35.82.210) to make such payments in lieu of taxes as the authority finds consistent with the achievement of the purposes of this chapter.

              (12) Upon the request of a county or city, to exercise any powers of an urban renewal agency under chapter 35.81 RCW or a public corporation, commission, or authority under chapter 35.21 RCW. However, in the exercise of any such powers the housing authority shall be subject to any express limitations contained in this chapter.

              (13) To exercise the powers granted in this chapter within the boundaries of any city, town, or county not included in the area in which such housing authority is originally authorized to function: PROVIDED, HOWEVER, The governing or legislative body of such city, town, or county, as the case may be, adopts a resolution declaring that there is a need for the authority to function in such territory.

              (((13))) (14) To administer contracts for assistance payments to persons of low income in accordance with section 8 of the United States Housing Act of 1937, as amended by Title II, section 201 of the Housing and Community Development Act of 1974, P.L. 93-383.

              (((14))) (15) To sell at public or private sale, with or without public bidding, for fair market value, any mortgage or other obligation held by the authority.

              (((15))) (16) To the extent permitted under its contract with the holders of bonds, notes, and other obligations of the authority, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest security, or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the authority is a party.

              (((16))) (17) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans to persons of low income to enable them to acquire, construct, reconstruct, rehabilitate, improve, lease, or refinance their dwellings, and to take such security therefor as is deemed necessary and prudent by the authority.

              (((17))) (18) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans for the acquisition, construction, reconstruction, rehabilitation, improvement, leasing, or refinancing of land, buildings, or developments for housing for persons of low income. For purposes of this subsection, development shall include either land or buildings or both.

              (a) Any development financed under this subsection shall be subject to an agreement that for at least twenty years the dwelling units made available to persons of low income together with functionally related and subordinate facilities shall occupy at least ((thirty percent of the interior space of any individual building other than a detached single-family or duplex residential building or mobile or manufactured home and shall occupy at least)) fifty percent of the interior space in the total development or at least fifty percent of the total number of units in the development, whichever produces the greater number of units for persons of low income. For mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park. During the term of the agreement, the owner shall use its best efforts in good faith to maintain the dwelling units or mobile home lots required to be made available to persons of low income at rents affordable to persons of low income. The twenty-year requirement under this subsection (18)(a) shall not apply when an authority finances the development by nonprofit corporations or governmental units of dwellings or mobile home lots intended for sale to persons of low and moderate income, and shall not apply to construction or other short-term financing provided to nonprofit corporations or governmental units when the financing has a repayment term of one year or less.

              (b) In addition, if the development is owned by a for-profit entity, the dwelling units or mobile home lots required to be made available to persons of low income shall be rented to persons whose incomes do not exceed fifty percent of the area median income, adjusted for household size, and shall have unit or lot rents that do not exceed fifteen percent of area median income, adjusted for household size, unless rent subsidies are provided to make them affordable to persons of low income.

              For purposes of this subsection (((17)))(18)(b), if the development is owned directly or through a partnership by a governmental entity or a nonprofit organization, which nonprofit organization is itself not controlled by a for-profit entity or affiliated with any for-profit entity that a nonprofit organization itself does not control, it shall not be treated as being owned by a for-profit entity when the governmental entity or nonprofit organization exercises legal control of the ownership entity and in addition, (i) the dwelling units or mobile home lots required to be made available to persons of low income are rented to persons whose incomes do not exceed sixty percent of the area median income, adjusted for household size, and (ii) the development is subject to an agreement that transfers ownership to the governmental entity or nonprofit organization or extends an irrevocable right of first refusal to purchase the development under a formula for setting the acquisition price that is specified in the agreement.

              (c) Commercial space in any building financed under this subsection that exceeds four stories in height shall not constitute more than twenty percent of the interior area of the building. Before financing any development under this subsection the authority shall make a written finding that financing is important for project feasibility or necessary to enable the authority to carry out its powers and purposes under this chapter.

              (((18))) (19) To contract with a public authority or corporation, created by a county, city, or town under RCW 35.21.730 through 35.21.755, to act as the developer for new housing projects or improvement of existing housing projects.


              NEW SECTION. Sec. 17. This chapter may be known and cited as the "Washington housing policy act."


              NEW SECTION. Sec. 18. Sections 1 through 6, 12, and 17 of this act shall constitute a new chapter in Title 43 RCW."


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.


              Excused: Representative Sheldon.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5612            Prime Sponsor, Committee on Transportation: Reorganizing the transportation improvement board. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, line 16, after "board" strike "((, except the executive director of the county road administration board,))" and insert ", except the executive director of the county road administration board,"

              Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Passed to Committee on Rules for second reading.


April 1, 1993

SB 5635              Prime Sponsor, Niemi: Modifying procedures regarding disclosure of address of a health professional subject to a disciplinary complaint. Reported by Committee on Health Care


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. A new section is added to chapter 18.130 RCW to read as follows:

              If the department communicates in writing to a complainant, or his or her representative, regarding his or her complaint, such communication shall not include the residential address or residential telephone number of the health care provider against whom he or she has complained, if the provider has furnished the department with an alternative or business address and business telephone number. The department shall inform all applicants for a health care provider license of the provisions of this section and RCW 42.17.310 regarding the release of address and telephone information.


              Sec. 2. RCW 42.17.310 and 1992 c 139 s 5 and 1992 c 71 s 12 are each reenacted and amended to read as follows:

              (1) The following are exempt from public inspection and copying:

              (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

              (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

              (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

              (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

              (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

              (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

              (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

              (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

              (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

              (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

              (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

              (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

              (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.

              (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

              (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW.

              (p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

              (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

              (r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapter 43.163 RCW and chapters 43.31, 43.63A, and 43.168 RCW.

              (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

              (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

              (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

              (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

              (w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying if the provider has provided the department with an accurate alternative or business address and telephone number.

              (x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

              (((x))) (y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

              (((y))) (z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

              (((z))) (aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

              (((aa))) (bb) Financial and valuable trade information under RCW 51.36.120.

              (((bb))) (cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.

              (((cc))) (dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

              (((dd))) (ee) Business related information protected from public inspection and copying under RCW 15.86.110.

              (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

              (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

              (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld."


              Signed by Representatives Dellwo, Chair; L. Johnson, Vice Chair; Dyer, Ranking Minority Member; Ballasiotes, Assistant Ranking Minority Member; Appelwick; Conway; Cooke; R. Johnson; Lisk; Mastin; Mielke; Morris; Thibaudeau; and Veloria.


              Excused: Representatives Campbell and Flemming.


              Passed to Committee on Rules for second reading.


April 1, 1993

SB 5660              Prime Sponsor, M. Rasmussen: Developing the Washington state citizens' exchange program. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass. Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Peery; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.


              MINORITY recommendation: Without recommendation. Signed by Representative Cooke.


              Excused: Representative Dellwo.


              Passed to Committee on Rules for second reading.


April 2, 1993

SB 5689              Prime Sponsor, Moore: Establishing a license to sell liquor in motels. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Excused: Representative G. Cole, Vice Chair.


              Referred to Committee on Appropriations.


April 1, 1993

SSB 5698            Prime Sponsor, Committee on Trade, Technology & Economic Development: Assisting companies to adopt ISO-9000 quality standards. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              On page 2, strike lines 30 through 33 and insert:

              "NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill number, is not provided in the omnibus appropriations act by June 30, 1993, this act is null and void."


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.


              Excused: Representative Sheldon.


              Referred to Committee on Appropriations.


April 1, 1993

SSB 5699            Prime Sponsor, Committee on Trade, Technology & Economic Development: Changing the organizational structure of the Pacific Northwest Economic Region. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass. Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.


              Excused: Representative Sheldon.


              Passed to Committee on Rules for second reading.


April 2, 1993

SB 5703              Prime Sponsor, Prentice: Codifying the labor market information and economic analysis responsibilities of the employment security department. Reported by Committee on Commerce & Labor


              MAJORITY recommendation: Do pass. Signed by Representatives Heavey, Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.


              Excused: Representative G. Cole, Vice Chair.


              Passed to Committee on Rules for second reading.


April 2, 1993

2SSB 5715          Prime Sponsor, Committee on Ways & Means: Assisting businesses to form flexible networks. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              On page 4, line 24, after "(5)" insert "The department shall promote and assist outreach services to minority and women-owned businesses in Washington state to inform them of and include them in flexible networks.

              (6)"

              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Campbell; Conway; Morris; Schoesler; Sheldon; Springer; Valle; and Wood.


              Excused: Representatives Forner, Ranking Minority Member, Chandler, Assistant Ranking Minority Member, Casada and Quall.


              Referred to Committee on Appropriations.


April 1, 1993

ESB 5729            Prime Sponsor, Rinehart: Changing the family emergency assistance program. Reported by Committee on Appropriations


              MAJORITY recommendation: Do pass. Signed by Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dorn; Dunshee; G. Fisher; Jacobsen; Lemmon; Leonard; Linville; Morton; Peery; Rust; Sehlin; Sheahan; Sommers; Stevens; Wang; Wineberry; and Wolfe.


              Excused: Representatives Dellwo and Talcott.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5739            Prime Sponsor, Committee on Labor & Commerce: Concerning the regulation of small businesses. Reported by Committee on Trade, Economic Development & Housing


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "Sec. 1. RCW 19.85.020 and 1989 c 374 s 1 are each amended to read as follows:

              Unless the context clearly indicates otherwise, the definitions in this section apply through this chapter.

              (1) "Small business" has the meaning given in RCW 43.31.025(4).

              (2) "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.

              (3) "Industry" means all of the businesses in this state in any one ((three-digit)) four-digit standard industrial classification as published by the United States department of commerce.


              Sec. 2. RCW 19.85.010 and 1982 c 6 s 1 are each amended to read as follows:

              The legislature finds that small businesses in ((the state of)) Washington ((have in the past been subjected)) are subject to rules adopted by agencies, departments, and instrumentalities of the state government which ((have placed)) place a proportionately higher burden on ((the small business community in Washington state)) them. The legislature also finds that such proportionately higher burdens placed on small businesses have reduced competition, reduced employment, reduced new employment opportunities, reduced innovation, and threatened the very existence of some small businesses. Therefore, it is the intent of the legislature that rules affecting the business community shall not place proportionately higher burdens on small businesses. The legislature therefore enacts this Regulatory Fairness Act to minimize such proportionately higher impacts of rules on small businesses in the future.


              Sec. 3. RCW 19.85.030 and 1989 c 374 s 2 and 1989 c 175 s 72 are each reenacted and amended to read as follows:

              ((In the adoption of any rule pursuant to RCW 34.05.320 that will have an economic impact on more than twenty percent of all industries, or more than ten percent of any one industry, the adopting agency:

              (1) Shall reduce the economic impact of the rule on small business by doing one or more of the following when it is legal and feasible in meeting the stated objective of the statutes which are the basis of the proposed rule:

              (a) Establish differing compliance or reporting requirements or timetables for small businesses;

              (b) Clarify, consolidate, or simplify the compliance and reporting requirements under the rule for small businesses;

              (c) Establish performance rather than design standards;

              (d) Exempt small businesses from any or all requirements of the rule;

              (2) Shall prepare a small business economic impact statement in accordance with RCW 19.85.040 and file such statement with the code reviser along with the notice required under RCW 34.05.320;

              (3))) (1) In the adoption of a rule pursuant to RCW 34.05.320, an agency shall prepare a small business economic impact statement: (a) If the proposed rule will impose more than minor costs on small business; or (b) if requested to do so by a majority vote of the joint administrative rules review committee within fifteen days after notice of the proposed rule is published in the state register.

              An agency shall prepare the small business economic impact statement in accordance with RCW 19.85.040, and file it with the code reviser along with the notice required under RCW 34.05.320. However, an agency shall file a statement prepared at the request of the joint administrative rules review committee with the code reviser upon its completion prior to the adoption of the rule. An agency shall notify each person who has requested a copy of the small business economic impact statement upon completion of the statement.

              The agency may request assistance from the business assistance center in the preparation of the small business economic impact statement.

              (2) A proposed rule will impose more than minor costs on small business if:

              (a) In order to comply with the rule, a small business will be required to:

              (i) Submit a new report or form to an agency;

              (ii) Keep a new record, cease or change an industrial process or business practice, or prepare a plan;

              (iii) Acquire additional equipment, supplies, or personnel; or

              (iv) Obtain legal, consulting, or accounting services; or

              (b) The proposed rule will be more stringent or substantially different than applicable federal statutes or regulations.

              (3) Upon a finding by the agency that a proposed rule imposes a disproportionate negative impact on small businesses identified in the statement prepared under RCW 19.85.040, the agency shall, unless reasonable justification exists to do otherwise, reduce the costs on small businesses. Methods to reduce the costs on small businesses may include, but are not limited to:

              (a) Reducing, modifying, or eliminating substantive regulatory requirements;

              (b) Establishing performance rather than design standards;

              (c) Simplifying, reducing, or eliminating recordkeeping and reporting requirements;

              (d) Reducing the frequency of inspections;

              (e) Delaying compliance time tables; or

              (f) Reducing or modifying fine schedules for noncompliance.


              Sec. 4. RCW 19.85.040 and 1989 c 374 s 3 and 1989 c 175 s 73 are each reenacted and amended to read as follows:

              (1) A small business economic impact statement ((must include a brief description of the reporting, recordkeeping, and other compliance requirements of the rule, and the kinds of professional services that a small business is likely to need in order to comply with such requirements. A small business economic impact statement shall analyze, based on existing data, the costs of compliance for businesses required to comply with the provisions of a rule adopted pursuant to RCW 34.05.320, including costs of equipment, supplies, labor, and increased administrative costs, and compare to the greatest extent possible the cost of compliance for small business with the cost of compliance for the ten percent of firms which are the largest businesses required to comply with the proposed new or amendatory rules. The small business economic impact statement shall use one or more of the following as a basis for comparing costs:

              (1) Cost per employee;

              (2) Cost per hour of labor;

              (3) Cost per one hundred dollars of sales;

              (4) Any combination of (1), (2), or (3))) shall clearly state the following with regard to a proposed rule:

              (a) A description of reports or recordkeeping that will be required to comply with the proposed rule, and an estimate of how much each will cost small businesses to prepare;

              (b) A description and estimate of the direct and indirect costs of compliance for small businesses affected by the proposed rule, including, but not limited to, lost sales or revenue and costs of equipment, supplies, labor, training, and increased administrative costs;

              (c) The nature and estimated cost of legal, consulting, and accounting services that small businesses would incur in complying with the proposed rule;

              (d) The general ability of small businesses to absorb the costs estimated under (a) through (c) of this subsection without adversely affecting competition in the marketplace;

              (e) The manner in which the agency reduced the costs of the rule on small businesses as required under RCW 19.85.030, or reasonable justification for not doing so;

              (f) Whether and how the agency has involved small businesses in the development of the rule;

              (g) A list of industries that would be required to comply with the proposed rule; and

              (h) The probable benefits of the proposed rule.

              (2) In order to obtain cost information for purposes of subsection (1) of this section, an agency may survey a representative sample of affected small businesses or trade associations. An agency may also use other reasonable means to collect information to accurately assess the costs and impact of a proposed rule on small businesses.

              (3) An agency may amend a small business economic impact statement based on information provided during the public participation process provided for in RCW 34.05.325. An amended small business economic impact statement shall be filed with the office of the code reviser along with the rule as adopted.


              Sec. 5. RCW 19.85.070 and 1992 c 197 s 1 are each amended to read as follows:

              When any rule is proposed for which a small business economic impact statement is ((required)) prepared, the adopting agency shall provide notice to small businesses of the proposed rule through any of the following:

              (1) Direct notification of known interested small businesses or trade organizations affected by the proposed rule, and notification of a representative sample of affected small businesses based on standard industrial classification codes; or

              (2) Providing information of the proposed rule making to publications likely to be obtained by small businesses of the types affected by the proposed rule.


              Sec. 6. RCW 34.05.310 and 1989 c 175 s 5 are each amended to read as follows:

              (1) In addition to seeking information by other methods, an agency, before publication of a notice of a proposed rule adoption under RCW 34.05.320, is encouraged to solicit comments from the public on a subject of possible rule making under active consideration within the agency, by causing notice to be published in the state register of the subject matter and indicating where, when, and how persons may comment.

              (2) Each agency may appoint committees to comment, before publication of a notice of proposed rule adoption under RCW 34.05.320, on the subject of a possible rule-making action under active consideration within the agency.

              (((3) Each agency shall designate a rules coordinator, who shall have knowledge of the subjects of rules being proposed or prepared within the agency for proposal, maintain the records of any such action, and respond to public inquiries about possible or proposed rules and the identity of agency personnel working, reviewing, or commenting on them. The office and mailing address of the rules coordinator shall be published in the state register at the time of designation and in the first issue of each calendar year thereafter for the duration of the designation. The rules coordinator may be an employee of another agency.))


              NEW SECTION. Sec. 7. A new section is added to chapter 34.05 RCW to read as follows:

              (1) Each agency shall designate a rules coordinator who shall:

              (a) Have experience with either the implementation of agency rules or administrative law;

              (b) Have knowledge of the subjects of rules, policies, or interpretive statements being proposed or developed within the agency;

              (c) Maintain the records of such action pursuant to this title and the index of agency records listed under RCW 42.17.260(5);

              (d) Maintain contact with other agency rules coordinators in order to coordinate rule-making hearings on similar subjects or for similar industries;

              (e) Develop and file the annual rule-making plan as required in section 8 of this act; and

              (f) Respond to public inquiries about possible or proposed rules, policies, or interpretive statements and the identity of agency personnel working, reviewing, or commenting on them.

              (2) The office, mailing address, and telephone number of the rules coordinator shall be published in the state register at the time of designation and in the first issue of each calendar year thereafter for the duration of the designation. The rules coordinator may be an employee of another agency.

              (3) Within six months of designation, the agency rules coordinator shall complete the administrative procedures training courses recommended by the business assistance center.


              NEW SECTION. Sec. 8. A new section is added to chapter 34.05 RCW to read as follows:

              (1) To encourage greater public participation in administrative rule making, each agency shall adopt an annual rule-making plan. The rule-making plan shall be prepared by the agency rules coordinator and shall list rules currently under development and rules that the agency may propose for adoption within the year. The rule-making plan may also include agency interpretive or policy statements to be issued or adopted within the year.

              (2) Activities in the rule-making plan shall be listed in order of priority. For each activity in the rule-making plan, the agency shall list:

              (a) A descriptive title for the activity;

              (b) A Washington Administrative Code citation for reference;

              (c) An intended adoption date; and

              (d) Agency personnel, with their telephone number, who are responsible for drafting or implementing the rule, policy, or interpretive statement.

              (3) Agency rule-making plans shall be published annually in the state register after January 1st, but prior to January 31st. Supplemental agency rule-making plans shall be published in the state register no later than sixty days after a regular session of the legislature. Upon filing the annual rule-making plan with the code reviser, the agency rules coordinator shall forward a copy of the plan to the appropriate standing committees of the legislature. Agencies are encouraged to publish rule-making plans in state newspapers or business publications to facilitate public review.


              NEW SECTION. Sec. 9. A new section is added to chapter 43.31 RCW to read as follows:

              To assist state agencies in reducing regulatory costs to small business and to promote greater public participation in the rule-making process, the business assistance center shall:

              (1) Develop agency guidelines for the preparation of a small business economic impact statement and compliance with chapter 19.85 RCW;

              (2) Review and provide comments to agencies on draft or final small business economic impact statements;

              (3) Provide information on the toll-free telephone line regarding how to participate in the rule-making process to small businesses requesting the information;

              (4) Advise the joint administrative rules review committee on whether an agency reasonably assessed the costs and impact of a proposed rule and reduced the costs for small business as required by chapter 19.85 RCW; and

              (5) Organize and chair a state rules coordinating committee, comprised of agency rules coordinators and interested members of the public, to develop an education and training program for agency personnel responsible for rule development and implementation. The business assistance center shall submit recommendations to the department of personnel for an administrative procedures training program that is based on the sharing of interagency resources.


              NEW SECTION. Sec. 10. RCW 19.85.060 and 1989 c 374 s 5 are each repealed."


              Signed by Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Springer; Valle; and Wood.


              Excused: Representative Sheldon.


              Referred to Committee on Appropriations.


April 1, 1993

ESB 5768            Prime Sponsor, Haugen: Providing for inspection services at an emergency scene upon the request of a public official. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:

              Strike everything after the enacting clause and insert the following:


              "Sec. 1. RCW 38.52.010 and 1986 c 266 s 23 are each amended to read as follows:

              As used in this chapter:

              (1) "Emergency management" or "comprehensive emergency management" means the preparation for and the carrying out of all emergency functions, other than functions for which the military forces are primarily responsible, to mitigate, prepare for, respond to, and recover from emergencies and disasters, and to aid victims suffering from injury or damage, resulting from disasters caused by all hazards, whether natural or man-made, and to provide support for search and rescue operations for persons and property in distress. However, "emergency management" or "comprehensive emergency management" does not mean preparation for emergency evacuation or relocation of residents in anticipation of nuclear attack.

              (2) "Local organization for emergency services or management" means an organization created in accordance with the provisions of this chapter by state or local authority to perform local emergency management functions.

              (3) "Political subdivision" means any county, city or town.

              (4) "Emergency worker" means any person, including but not limited to an architect registered under chapter 18.08 RCW or a professional engineer registered under chapter 18.43 RCW, who is registered with a local emergency management organization or the department of community development and holds an identification card issued by the local emergency management director or the department of community development for the purpose of engaging in authorized emergency management activities or is an employee of the state of Washington or any political subdivision thereof who is called upon to perform emergency management activities.

              (5) "Injury" as used in this chapter shall mean and include accidental injuries and/or occupational diseases arising out of emergency management activities.

              (6) "Emergency or disaster" as used in this chapter shall mean an event or set of circumstances which: (a) Demands immediate action to preserve public health, protect life, protect public property, or to provide relief to any stricken community overtaken by such occurrences, or (b) reaches such a dimension or degree of destructiveness as to warrant the governor declaring a state of emergency pursuant to RCW 43.06.010.

              (7) "Search and rescue" means the acts of searching for, rescuing, or recovering by means of ground, marine, or air activity any person who becomes lost, injured, or is killed while outdoors or as a result of a natural or man-made disaster, including instances involving searches for downed aircraft when ground personnel are used. Nothing in this section shall affect appropriate activity by the department of transportation under chapter 47.68 RCW.

              (8) "Executive head" and "executive heads" means the county executive in those charter counties with an elective office of county executive, however designated, and, in the case of other counties, the county legislative authority. In the case of cities and towns, it means the mayor.

              (9) "Director" means the director of community development.

              (10) "Local director" means the director of a local organization of emergency management or emergency services.

              (11) "Department" means the department of community development.


              NEW SECTION. Sec. 2. A new section is added to chapter 38.52 RCW to read as follows:

              For purposes of the liability of an architect or engineer serving as a volunteer emergency worker, the exemption from liability provided under RCW 38.52.195 extends to all damages, so long as the conditions specified in RCW 38.52.195 (1) through (5) occur."


              Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; and Pruitt.


              Excused: Representative King.


              Passed to Committee on Rules for second reading.


March 31, 1993

ESSB 5773          Prime Sponsor, Committee on Energy & Utilities: Allowing counties to establish coordinated water resources programs. Reported by Committee on Natural Resources & Parks


              MAJORITY recommendation: Do pass with the following amendment:


              On page 1, strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. RCW 19.27.097 and 1991 sp.s. c 32 s 28 are each amended to read as follows:

              (1) Each applicant for a building permit of a building necessitating potable water shall provide evidence of an adequate water supply for the intended use of the building. Evidence may be in the form of a water right permit from the department of ecology, a letter from an approved water purveyor stating the ability to provide water, or another form sufficient to verify the existence of an adequate water supply. In addition to other authorities, the county or city ((may)) shall, after August 1, 1994, impose conditions on building permits requiring connection to an existing public water system where the existing system is ((willing and)) able to provide safe and reliable potable water to the applicant with reasonable economy and efficiency. The department of community development shall, in consultation with the department of health, with water purveyors and local governments, before August 1, 1994, develop criteria for determining what constitutes reasonable economy and efficiency. An application for a water right shall not be sufficient proof of an adequate water supply.

              (2) Within counties not required or not choosing to plan pursuant to RCW 36.70A.040, the county and the state may mutually determine those areas in the county in which the requirements of subsection (1) of this section shall not apply. The departments of health and ecology shall coordinate on the implementation of this section. Should the county and the state fail to mutually determine those areas to be designated pursuant to this subsection, the county may petition the department of community development to mediate or, if necessary, make the determination.

              (3) Buildings that do not need potable water facilities are exempt from the provisions of this section. The department of ecology, after consultation with local governments, may adopt rules to implement this section, which may recognize differences between high-growth and low-growth counties.


              Sec. 2. RCW 43.20.050 and 1992 c 34 s 4 are each amended to read as follows:

              (1) The state board of health shall provide a forum for the development of health policy in Washington state. It is authorized to recommend to the secretary means for obtaining appropriate citizen and professional involvement in all health policy formulation and other matters related to the powers and duties of the department. It is further empowered to hold hearings and explore ways to improve the health status of the citizenry.

              (a) At least every five years, the state board shall convene regional forums to gather citizen input on health issues.

              (b) Every two years, in coordination with the development of the state biennial budget, the state board shall prepare the state health report that outlines the health priorities of the ensuing biennium. The report shall:

              (i) Consider the citizen input gathered at the health forums;

              (ii) Be developed with the assistance of local health departments;

              (iii) Be based on the best available information collected and reviewed according to RCW 43.70.050 and recommendations from the council;

              (iv) Be developed with the input of state health care agencies. At least the following directors of state agencies shall provide timely recommendations to the state board on suggested health priorities for the ensuing biennium: The secretary of social and health services, the health care authority administrator, the insurance commissioner, the administrator of the basic health plan, the superintendent of public instruction, the director of labor and industries, the director of ecology, and the director of agriculture;

              (v) Be used by state health care agency administrators in preparing proposed agency budgets and executive request legislation;

              (vi) Be submitted by the state board to the governor by June 1 of each even-numbered year for adoption by the governor. The governor, no later than September 1 of that year, shall approve, modify, or disapprove the state health report.

              (c) In fulfilling its responsibilities under this subsection, the state board shall create ad hoc committees or other such committees of limited duration as necessary. Membership should include legislators, providers, consumers, bioethicists, medical economics experts, legal experts, purchasers, and insurers, as necessary.

              (2) In order to protect public health, the state board of health shall:

              (a) Adopt rules necessary to assure safe and reliable public drinking water and to protect the public health. Such rules shall establish requirements regarding:

              (i) The design and construction of public water system facilities, including proper sizing of pipes and storage for the number and type of customers;

              (ii) Drinking water quality standards, monitoring requirements, and laboratory certification requirements;

              (iii) Public water system management and reporting requirements;

              (iv) Public water system planning and emergency response requirements;

              (v) Public water system operation and maintenance requirements including a requirement that no public community water system established after January 1, 1994, within the boundaries of an urban growth area established under RCW 36.70A.110, be approved unless it is owned or operated by a satellite system management agency in accordance with the provisions set forth in RCW 70.116.134, and a requirement that no public community water system established after January 1, 1994, outside of the boundaries of an urban growth area be approved unless it is owned or operated by a satellite system management agency in accordance with the provisions set forth in RCW 70.116.134, where a satellite system is available;

              (vi) Water quality, reliability, and management of existing but inadequate public water systems; and

              (vii) Quality standards for the source or supply, or both source and supply, of water for bottled water plants.

              (b) Adopt rules and standards for prevention, control, and abatement of health hazards and nuisances related to the disposal of wastes, solid and liquid, including but not limited to sewage, garbage, refuse, and other environmental contaminants; adopt standards and procedures governing the design, construction, and operation of sewage, garbage, refuse and other solid waste collection, treatment, and disposal facilities;

              (c) Adopt rules controlling public health related to environmental conditions including but not limited to heating, lighting, ventilation, sanitary facilities, cleanliness and space in all types of public facilities including but not limited to food service establishments, schools, institutions, recreational facilities and transient accommodations and in places of work;

              (d) Adopt rules for the imposition and use of isolation and quarantine;

              (e) Adopt rules for the prevention and control of infectious and noninfectious diseases, including food and vector borne illness, and rules governing the receipt and conveyance of remains of deceased persons, and such other sanitary matters as admit of and may best be controlled by universal rule; and

              (f) Adopt rules for accessing existing data bases for the purposes of performing health related research.

              (3) The state board may delegate any of its rule-adopting authority to the secretary and rescind such delegated authority.

              (4) All local boards of health, health authorities and officials, officers of state institutions, police officers, sheriffs, constables, and all other officers and employees of the state, or any county, city, or township thereof, shall enforce all rules adopted by the state board of health. In the event of failure or refusal on the part of any member of such boards or any other official or person mentioned in this section to so act, he shall be subject to a fine of not less than fifty dollars, upon first conviction, and not less than one hundred dollars upon second conviction.

              (5) The state board may advise the secretary on health policy issues pertaining to the department of health and the state.


              Sec. 3. RCW 90.44.050 and 1987 c 109 s 108 are each amended to read as follows:

              (1) After June 6, 1945, no withdrawal of public ground waters of the state shall be begun, nor shall any well or other works for such withdrawal be constructed, unless an application to appropriate such waters has been made to the department and a permit has been granted by it as herein provided((: EXCEPT, HOWEVER, That any withdrawal of public ground waters for stock-watering purposes, or for the watering of a lawn or of a noncommercial garden not exceeding one-half acre in area, or for single or group domestic uses in an amount not exceeding five thousand gallons a day, or for an industrial purpose in an amount not exceeding five thousand gallons a day, is and shall be exempt from the provisions of this section, but, to the extent that it is regularly used beneficially, shall be entitled to a right equal to that established by a permit issued under the provisions of this chapter: PROVIDED, HOWEVER, That the department from time to time may require the person or agency making any such small withdrawal to furnish information as to the means for and the quantity of that withdrawal: PROVIDED, FURTHER, That at the option of the party making withdrawals of ground waters of the state not exceeding five thousand gallons per day, applications under this section or declarations under RCW 90.44.090 may be filed and permits and certificates obtained in the same manner and under the same requirements as is in this chapter provided in the case of withdrawals in excess of five thousand gallons a day)).

              (2) Notwithstanding the requirement set forth in subsection (1) of this section, and subject to the provisions of subsection (3) of this section, a withdrawal of public ground waters in an amount not exceeding five thousand gallons per day for:

              (a) Stockwatering purposes;

              (b) The watering of a lawn or a noncommercial garden not exceeding one-half acre in area;

              (c) A single or group domestic use;

              (d) An industrial purpose;

              is and shall be exempt from the provisions of this section, but, to the extent it is regularly used beneficially and in conformance with all other applicable laws, is entitled to a right equal to that established under the provisions of this chapter.

              (3) Upon consultation with the appropriate general and special purpose local governments, the department shall, by rule, designate those areas where the exemption set forth in subsection (2) of this section shall not be available. The department shall, in making its determination and adopting its rules, use as guidance and be consistent with, where applicable, the ground water management plans created under RCW 90.44.400, regional plans as developed under RCW 90.54.045, coordinated water system plans developed under chapter 70.116 RCW, land use and growth management plans developed under chapter 36.70A RCW, aquifer protection areas created under chapter 36.36 RCW and critical water supply areas designated under chapter 70.116 RCW. In selecting areas for designation under this subsection, the department and the local government shall consider the following: water availability; potential effects on existing water rights and environmental resources; public health; coordinated development and use of water resources; and population densities and availability of alternate water sources. The department shall consult with any federally recognized Indian tribes within the affected area.  

              (4) The department may require the person or entity making a withdrawal under this section to furnish information as to the means for and the quantity of that withdrawal.

              (5) At the option of the person or entity making a withdrawal under this section, applications may be filed under RCW 90.44.090.


              Signed by Representatives Pruitt, Chair; R. Johnson, Vice Chair; Dunshee; Linville; Valle; and Wolfe.


              MINORITY recommendation: Do not pass. Signed by Representatives Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Schoesler; Sheldon; and Thomas.


              Passed to Committee on Rules for second reading.


April 1, 1993

ESSB 5794          Prime Sponsor, Committee on Labor & Commerce: Revising administrative law. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature finds that overlapping, conflicting, and duplicating provisions of federal, state, and local laws, ordinances, and rules create tremendous burdens for the citizens and businesses of the state of Washington. The legislature therefore encourages agencies to address overlapping, conflicting, and duplicative provisions in the rule-making process, and to attempt to mitigate the adverse impact of overlapping, conflicting, and duplicating provisions whenever it is within the agency's authority to do so. However, agency use of the procedures in section 5 of this act is discretionary, and agencies are not required to use these procedures in any particular instance of rule making.


              Sec. 2. RCW 34.05.620 and 1988 c 288 s 602 are each amended to read as follows:

              Whenever a majority of the members of the rules review committee determines that a proposed rule is not within the intent of the legislature as expressed in the statute which the rule implements, or that an agency may not be adopting a proposed rule in accordance with all applicable provisions of law, including chapter 19.85 RCW, the committee shall give the affected agency and the governor written notice of its decision. The notice shall be given at least seven days prior to any hearing scheduled for consideration of or adoption of the proposed rule pursuant to RCW 34.05.320. The notice shall include a statement of the review committee's findings and the reasons therefor. When the agency holds a hearing on the proposed rule, the agency shall consider the review committee's decision.


              Sec. 3. RCW 34.05.630 and 1988 c 288 s 603 are each amended to read as follows:

              (1) All rules required to be filed pursuant to RCW 34.05.380, and emergency rules adopted pursuant to RCW 34.05.350, are subject to selective review by the legislature.

              (2) The rules review committee may review an agency's use of policy statements, guidelines, and issuances that are of general applicability, or their equivalents to determine whether or not an agency has failed to adopt a rule.

              (3) If the rules review committee finds by a majority vote of its members: (a) That an existing rule is not within the intent of the legislature as expressed by the statute which the rule implements, (b) that the rule has not been adopted in accordance with all applicable provisions of law, ((or)) including chapter 19.85 RCW, (c) that the statute that the rule purports to implement has been repealed or ruled invalid by the courts, or (d) that an agency is using a policy statement, guideline, or issuance in place of a rule, the agency affected shall be notified of such finding and the reasons therefor. Within thirty days of the receipt of the rules review committee's notice, the agency shall file notice of a hearing on the rules review committee's finding with the code reviser and mail notice to all persons who have made timely request of the agency for advance notice of its rule-making proceedings as provided in RCW 34.05.320. The agency's notice shall include the rules review committee's findings and reasons therefor, and shall be published in the Washington state register in accordance with the provisions of chapter 34.08 RCW.

              (4) The agency shall consider fully all written and oral submissions regarding (a) whether the rule in question is within the intent of the legislature as expressed by the statute which the rule implements, (b) whether the rule was adopted in accordance with all applicable provisions of law, including chapter 19.85 RCW, or (c) whether the agency is using a policy statement, guideline, or issuance in place of a rule.


              Sec. 4. RCW 34.05.640 and 1988 c 288 s 604 are each amended to read as follows:

              (1) Within seven days of an agency hearing held after notification of the agency by the rules review committee pursuant to RCW 34.05.620 or 34.05.630, the affected agency shall notify the committee of its action on a proposed or existing rule to which the committee objected or on a committee finding of the agency's failure to adopt rules. If the rules review committee determines, by a majority vote of its members, that the agency has failed to provide for the required hearings or notice of its action to the committee, the committee may file notice of its objections, together with a concise statement of the reasons therefor, with the code reviser within thirty days of such determination.

              (2) If the rules review committee finds, by a majority vote of its members: (a) That the proposed or existing rule in question has not been modified, amended, withdrawn, or repealed by the agency so as to conform with the intent of the legislature, or (b) that an existing rule was not adopted in accordance with all applicable provisions of law, including chapter 19.85 RCW, or (c) that the agency is using a policy statement, guideline, or issuance in place of a rule, the rules review committee may, within thirty days from notification by the agency of its action, file with the code reviser notice of its objections together with a concise statement of the reasons therefor. Such notice and statement shall also be provided to the agency by the rules review committee.

              (3) If the rules review committee makes an adverse finding under subsection (2) of this section, the committee may, by a ((two-thirds)) majority vote of its members, recommend suspension of an existing rule. Within seven days of such vote the committee shall transmit to the appropriate standing committees of the legislature, the governor, the code reviser, and the agency written notice of its objection and recommended suspension and the concise reasons therefor. Within thirty days of receipt of the notice, the governor shall transmit to the committee, the code reviser, and the agency written approval or disapproval of the recommended suspension. If the suspension is approved by the governor, it is effective from the date of that approval and continues until ninety days after the expiration of the next regular legislative session.

              (4) The code reviser shall publish transmittals from the rules review committee or the governor issued pursuant to subsection (1), (2), or (3) of this section in the Washington state register and shall publish in the next supplement and compilation of the Washington Administrative Code a reference to the committee's objection or recommended suspension and the governor's action on it and to the issue of the Washington state register in which the full text thereof appears.

              (5) The reference shall be removed from a rule published in the Washington Administrative Code if a subsequent adjudicatory proceeding determines that the rule is within the intent of the legislature or was adopted in accordance with all applicable laws, whichever was the objection of the rules review committee.


              NEW SECTION. Sec. 5. A new section is added to chapter 34.05 RCW under the subchapter heading "rule-making procedures" to read as follows:

              Prior to or during the rule-making process, agencies are encouraged to survey other federal, state, and local entities that have jurisdiction over the subject matter of a proposed rule to determine whether conflict, overlap, or duplication exists. Agencies are encouraged to address these issues during the rule-making process and to mitigate the adverse impact of conflict, overlap, or duplication whenever it is within the agency's authority to do so. Agencies are encouraged to place information on conflict, overlap, or duplication in the rule-making file.


              NEW SECTION. Sec. 6. The following acts or parts of acts are each repealed:

              (1) RCW 34.05.670 and 1992 c 197 s 3; and

              (2) RCW 34.05.680 and 1992 c 197 s 4.


              NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 8. This act shall take effect July 1, 1994."


              Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; and Pruitt.


              Excused: Representative King.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5821            Prime Sponsor, Committee on Government Operations: Modifying public works board loan restrictions. Reported by Committee on Capital Budget


              MAJORITY recommendation: Do pass. Signed by Representatives Wang, Chair; Ogden, Vice Chair; Sehlin, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Brough; Eide; R. Fisher; Heavey; Jacobsen; Jones; Romero; Sommers; and Thomas.


              Excused: Representatives Ludwig and Silver.


              Passed to Committee on Rules for second reading.


April 1, 1993

SSB 5839            Prime Sponsor, Committee on Government Operations: Providing consolidated mail service for state agencies. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. It is the intent of the legislature to consolidate mail functions for state government in a manner that will provide timely, effective, efficient, and less-costly mail service for state government.


              NEW SECTION. Sec. 2. A new section is added to chapter 43.19 RCW to read as follows:

              Unless the context clearly requires otherwise, the definitions in this section apply throughout this section and section 3 of this act.

              (1) "Consolidated mail service" means incoming, outgoing, and internal mail processing.

              (2) "Department" means the department of general administration.

              (3) "Director" means the director of the department of general administration.

              (4) "Agency" means:

              (a) The office of the governor; and

              (b) Any office, department, board, commission, or other separate unit or division, however designated, of the state government, together with all personnel thereof: Upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature; and that has as its chief executive officer a person or combination of persons such as a commission, board, or council, by law empowered to operate it, responsible either to: (i) No other public officer or (ii) the governor.

              (5) "Incoming mail" means mail, packages, or similar items received by an agency, through the United States postal service, private carrier services, or other courier services.

              (6) "Outgoing mail" means mail, packages, or similar items processed for agencies to be sent through the United States postal service, private carrier services, or other courier services.

              (7) "Internal mail" means interagency mail, packages, or similar items that are delivered or to be delivered to a state agency, the legislature, the supreme court, or the court of appeals, and their officers and employees.


              NEW SECTION. Sec. 3. A new section is added to chapter 43.19 RCW to read as follows:

              The director shall establish a consolidated mail service to handle all incoming, outgoing, and internal mail in the 98504 zip code area or successor zip code areas for agencies in the Olympia, Tumwater, and Lacey area. The director may include additional geographic areas within the consolidated mail service, based upon his or her determination. The department shall also provide mail services to legislative and judicial agencies in the Olympia, Tumwater, and Lacey area upon request.

              The director may bill state agencies and other entities periodically for mail services rendered.


              NEW SECTION. Sec. 4. All employees of any state agency who are employed exclusively or principally in performing the powers, duties, or functions assigned to the department pursuant to section 3 of this act, may be transferred to the department of general administration. The office of financial management shall determine the number of employees to be transferred for efficient operation of the mail service. Upon such transfer to the department of general administration, such employees shall continue to be governed by the provisions of chapter 41.06 RCW, the state civil service law, and shall retain their permanent or probationary status together with all rights, privileges, and immunities attaching thereto.


              NEW SECTION. Sec. 5. The department, in cooperation with the office of financial management, shall review current and prospective needs of state agencies for any equipment to process mail throughout state government. If after such consultation, the department should find that the economy, efficiency, or effectiveness of state government would be improved by such a transfer or other disposition, then the property shall be transferred or otherwise disposed.

     After making such finding, the department shall direct the transfer of existing state property, facilities, and equipment pertaining to the consolidated mail service or United States postal service. Any dispute concerning the benefits in state governmental economy, efficiency, and effectiveness shall be resolved by the office of financial management.


              NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."


              Signed by Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; and Pruitt.


              Excused: Representative King.


              Passed to Committee on Rules for second reading.


March 31, 1993

SB 5856              Prime Sponsor, Vognild: Authorizing certain real property transactions. Reported by Committee on Transportation


              MAJORITY recommendation: Do pass with the following amendment:


              On page 1, following line 5 of the enacting clause, strike the remainder of the bill and insert:

              "NEW SECTION. Sec. 1. A new chapter is added to chapter 43.43 RCW to read as follows:

              Whenever real property owned by the state of Washington and under the jurisdiction of the Washington state patrol is no longer required, it may be sold at fair market value. All proceeds received from the sale of real property, less any real estate broker commissions, shall be deposited into the state patrol highway account."


              Signed by Representatives R. Fisher, Chair; Brown, Vice Chair; Jones, Vice Chair; Schmidt, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Brough; Brumsickle; Cothern; Eide; Finkbeiner; Forner; Fuhrman; Hansen; Heavey; Horn; Johanson; J. Kohl; R. Meyers; Miller; H. Myers; Orr; Patterson; Quall; Sheldon; Shin; Wood; and Zellinsky.


              Passed to Committee on Rules for second reading.


April 1, 1993

ESSB 5868          Prime Sponsor, Committee on Trade, Technology & Economic Development: Creating the department of economic and community development. Reported by Committee on State Government


              MAJORITY recommendation: Do pass with the following amendment:


              Strike everything after the enacting clause and insert the following:

              "NEW SECTION. Sec. 1. The legislature finds that the long-term health of the state and its citizens depends upon the strength and vitality of its communities. It is essential to the state's future that communities have the ability to: Manage growth and achieve sustainable development; provide equitable access to economic opportunity; stimulate innovation and entrepreneurship; meet the diverse needs of families; provide affordable housing; construct public infrastructure; protect their cultural heritage; and promote the health and safety of their citizens.

              The legislature further finds that as a result of the rapid pace of social and economic change, maintaining the quality of life and standard of living for the citizens of the state will require new and inventive responses by every segment of the community, including local governments, educational institutions, business firms and their employees, labor unions, nonprofit institutions, and individuals. The state can play a role in assisting such local efforts by reorganizing state assistance efforts to promote partnerships among these diverse segments.

              The legislature further finds that it is in the interest of the state to create one agency to coordinate and assist self-sufficiency programs in the state's communities. The consolidation of the department of trade and economic development and the department of community development into one department will: Improve the efficiency and effectiveness with which state services are delivered; give local communities the capacity to respond to economic and social change; and increase accountability to the public, the executive, and the legislature.

              It is the intent of the legislature in this consolidation to maximize the use of local expertise and resources in the delivery of community and economic development services. It is the further intent of the legislature that, unless otherwise specifically provided in this act, the existing responsibilities and functions of the agencies will continue to be administered in accordance with their implementing legislation. It is the further intent of the legislature that the plan provided for in section 9 of this act include recommendations as to how those responsibilities and functions will be changed and integrated into a cohesive and coordinated community and economic development program.


              NEW SECTION. Sec. 2. (1) The purpose of this chapter is to establish the broad outline of the structure of the department of community and economic resources, leaving specific details of its internal organization and management to those charged with its administration.

              (2) It is also the purpose of this chapter to establish a department of the state to:

              (a) Aid in providing financial and technical assistance to the communities of the state, to assist in improving the delivery of federal, state, and local programs, and to provide communities with opportunities for productive and coordinated development beneficial to the well-being of the communities and their residents;

              (b) Assist firms and industries increase their competitiveness in the world economy, diversify the state's economy, and increase the environmental sustainability of the state's industries, so that they may provide stable family-wage employment for the state's citizens; and

              (c) Support local government and nonprofit institution programs that help families and individuals reach economic self-sufficiency and stabilize the communities in which they live.


              NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

              (1) "Associate development organization" means a local economic development nonprofit corporation.

              (2) "Department" means the department of community and economic resources.

              (3) "Director" means the director of the department of community and economic resources.

              (4) "Small business" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, that has the purpose of making a profit, and that has fifty or fewer employees.

              (5) "Distressed area" has the meaning in RCW 43.165.010.

              (6) "Impact area" means (a) distressed counties as defined in RCW 43.165.010(3)(a); (b) subcounty areas in those counties which are not covered under (a) of this subsection which are timber impact areas as defined in RCW 43.31.601; (c) urban subcounty areas as defined in RCW 43.165.010(3)(c); and (d) areas not currently experiencing economic distress which the department anticipates as likely to experience distress in the near future, such as areas experiencing defense budget reductions or suffering dislocations from natural resource issues such as salmon recovery.


              NEW SECTION. Sec. 4. A state department of community and economic resources is created. The department shall be vested with all powers and duties established or transferred to it under this chapter and such other powers and duties as may be authorized by law.


              NEW SECTION. Sec. 5. The executive head of the department shall be the director. The director shall be appointed by the governor with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040.


              NEW SECTION. Sec. 6. (1) The director shall supervise and administer the activities of the department and shall advise the governor and the legislature with respect to economic and community development matters affecting the state.

              (a) The director may:

              (i) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

              (ii) Act for the state in the initiation of or participation in any multigovernmental program relative to the purpose of this chapter; and

              (iii) Accept gifts and grants, whether such grants be of federal or other funds;

              (b) The director shall:

              (i) Appoint such deputy directors, assistant directors, and up to seven special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;

              (ii) Prepare and submit for executive and legislative action on the budget for the department;

              (iii) Submit recommendations for legislative actions as are deemed necessary to further the purposes of this chapter; and

              (iv) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter.

              (2) When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer and thereafter expended only upon the approval of the director.

              (3) The director may request information and assistance from all other agencies, departments, and officials of the state, and may reimburse such agencies, departments, or officials if such a request imposes any additional expenses upon any such agency, department, or official.

              (4) The director shall, in carrying out the responsibilities of office, consult with governmental officials, private groups, and individuals and with officials of other states, and may, if the director deems it desirable, hold public hearings to obtain information to carry out the purposes of this chapter. All state agencies and their officials and the officials of any political subdivision of the state shall cooperate with and give such assistance to the department, including the submission of requested information, to allow the department to carry out its purposes under this chapter.

              (5) The director may establish additional advisory or coordinating groups with the legislature, within state government, with state and other governmental units, with the private sector and nonprofit entities or in specialized subject areas as may be necessary to carry out the purposes of this chapter.


              NEW SECTION. Sec. 7. The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW.


              NEW SECTION. Sec. 8. The department shall be responsible for promoting community and economic development within the state by assisting the state's communities to increase the quality of life of their citizens and their economic vitality, and by assisting the state's businesses to maintain and increase their economic competitiveness, while maintaining a healthy environment. Community and economic development efforts shall include: Efforts to increase economic opportunity; local planning to accommodate growth while maintaining a healthy environment; the promotion and provision of affordable housing and housing-related services; providing public infrastructure; business and trade development; assisting firms and industrial sectors to increase their competitiveness; technology development, transfer, and diffusion; community services; and public safety efforts. The department shall have the following functions and responsibilities:

              (1) Provide advisory assistance to the governor, other state agencies, and the legislature on community and economic development matters and issues;

              (2) Assist the governor in coordinating the activities of state agencies that have an impact on local government and communities;

              (3) Cooperate with the legislature and the governor in the development and implementation of strategic plans for the state's community and economic development efforts;

              (4) Cooperate with and provide technical and financial assistance to local governments, businesses and community-based organizations serving the communities of the state for the purpose of aiding and encouraging orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give priority to local communities with the greatest relative need and the fewest resources;

              (5) Solicit private and federal grants for economic and community development programs and administer such programs in conjunction with other programs assigned to the department by the governor or the legislature;

              (6) Administer community services programs directed to the poor and infirm through private, nonprofit organizations and units of general purpose local government and coordinate these programs using, to the extent possible, integrated case management methods, with other community and economic development and self-sufficiency efforts of the department;

              (7) Undertake business development and retention efforts in coordination with other state agencies, local governments, tribal governments, and public and private local development groups seeking new business investment and the expansion and retention of existing businesses, including providing assistance to local organizations to resolve environmental and natural resource issues related to economic development;

              (8) Identify and work with Washington businesses that can use local, state, and federal assistance to increase domestic and foreign exports and that are capable of increasing production of goods and services;

              (9) Market the state's products and services internationally in close cooperation with other private and public international trade efforts and act as a centralized location for the assimilation and distribution of trade information;

              (10) Assist in the production, development, rehabilitation, preservation, and operation of owner-occupied or rental housing for low and moderate-income persons; operate programs to assist home ownership, offer housing services, and provide special needs housing services and units; and qualify as a participating state agency for all programs of the federal department of housing and urban development or its successor;

              (11) Coordinate and administer energy assistance and residential energy rehabilitation programs of the federal and state government through nonprofit organizations, local governments, and housing authorities;

              (12) Administer state and federal categorical or block grants in a timely and cost-effective manner;

              (13) Administer and coordinate targeted education programs assigned to the department in an integrated manner in order to maximize the case management value of such programs;

              (14) Develop, or assist local governments in developing housing plans required by the state or federal government;

              (15) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal corporations, governmental conferences or councils, and regional planning commissions to participate with other states and provinces or their subdivisions;

              (16) Hold public hearings and meetings to carry out the purposes of this chapter;

              (17) Market and coordinate the attraction of visitors and conventions to the state and the expansion of the tourism industry throughout the state in cooperation with the visitor industry, as well as public and private tourism development organizations;

              (18) Promote, market, and encourage growth in the production of films and videos, as well as television commercials, within the state;

              (19) Administer family services and programs to promote the state's policy as provided in RCW 74.14A.025;

              (20) Conduct research and analysis in furtherance of the state's economic and community development efforts including maintenance of current information on market and economic trends as they affect different industrial sectors, geographic regions, and communities with special economic problems in the state;

              (21) Provide support to strengthen local capacity for controlling risk to life and property that may result from fires and emergencies, and provide a comprehensive state-level focus for fire protection services, funding, and policy;

              (22) Provide for the identification and preservation of the state's historical and cultural resources;

              (23) Coordinate a comprehensive state program for mitigating, preparing for, responding to, and recovering from emergencies and disasters;

              (24) Promote volunteerism and citizen service as a means for accomplishing local community and economic development goals and objectives; and

              (25) Assist local governments to plan for new growth while preserving environmental quality and open space.


              NEW SECTION. Sec. 9. (1) The director of the department of trade and economic development and the director of the department of community development shall, by November 15, 1993, jointly submit a plan to the governor for the consolidation and smooth transition of the department of trade and economic development and the department of community development into the department of community and economic resources so that the department will operate as a single entity on July 1, 1994.

              (2) The plan shall include, but is not limited to, the following elements:

              (a) Strategies for combining the existing functions and responsibilities of both agencies into a coordinated and unified department;

              (b) Recommendations for any changes in existing programs and functions of both agencies, including new initiatives and possible transfer of programs and functions from other departments;

              (c) Implementation steps necessary to bring about operation of the combined department as a single entity;

              (d) Benchmarks by which to measure progress and to evaluate the performance and effectiveness of the department's efforts; and

              (e) Strategies for coordinating and maximizing federal, state, and local community and economic development efforts and resources within the state.

              (3) In developing this plan, the directors shall establish an advisory committee of representatives of groups using services and programs of both departments. The advisory committee shall include representatives of cities, counties, port districts, businesses, labor unions, associate development organizations, low-income housing interests, Indian tribes, community action programs, public safety groups, community-based nonprofit development organizations, and any other organizations the directors determine should have input to the plan.


              NEW SECTION. Sec. 10. In the next four years after the effective date of this section, the department shall pursue the following policy objectives:

              (1) Develop, promote, and support partnerships at the local and regional level between local development organizations including local governments, associate development organizations, community action agencies, port districts, private industry councils, labor unions, community-based nonprofit development organizations, chambers of commerce, community colleges, technical colleges, and other institutions of higher education;

              (2) Diversify the state economy in economic sectors that offer the prospect of family-wage employment through (a) the establishment of flexible networks of firms and (b) identification of problems and opportunities in industrial competitiveness;

              (3) Encourage development that maintains the health of the state's environment while providing employment.


              NEW SECTION. Sec. 11. (1) The local economic development service program is established in the department. This program shall coordinate the delivery of economic development services to local communities or regional areas. It shall promote partnerships between the public and private sectors and between state and local officials to encourage appropriate economic growth in communities throughout the state. The program shall promote local economic development by assisting businesses to start up, maintain, or expand their operations, by encouraging public infrastructure investment and private capital investment in local communities, and by expanding employment opportunities.

              (2) The department's local economic development service program shall, among other things, (a) contract with associate development organizations for the delivery of economic development services to local communities or regional areas; (b) enter into interagency agreements with appropriate state agencies, such as the department of agriculture and the employment security department, to coordinate the delivery of economic development services to local communities or regional areas; (c) enter into agreements with other public organizations or institutions that provide economic development services, such as the small business development center, the Washington technology center, community colleges, technical colleges, the University of Washington, Washington State University, four-year colleges and universities, the federal small business administration, ports, and others, to coordinate the delivery of economic development services to local communities and regional areas; and (d) provide training, through contracts with public or private organizations, and other assistance to associate development organizations to the extent resources allow.

              (3) The department shall coordinate economic development efforts to minimize program redundancy and maximize accessibility. The department shall work to develop links between the state and service users as well as among the service users themselves.

              (4) It is the intent of the legislature that the associate development organizations contracted with under this program shall promote and coordinate, through local service agreements or other methods, the delivery of economic development services in their areas that are provided by public and private organizations, including state agencies.

              (5) The legislature encourages local associate development organizations to form partnerships with other associate development organizations in their region to combine resources for better access to available services, to encourage regional delivery of state services, and to more effectively build the local capacity of communities in the region.

              (6) In each service delivery region the department shall contract with one associate development organization or a consortium of such organizations, or another appropriate locally based organization to coordinate the delivery of economic development services within the region. The contracting organization shall work with local governments, associate development organizations, local chambers of commerce, private industry councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups within the region and shall involve them in the planning for and delivery of economic development services required by this section.

              The contracting organization shall designate five traded sectors of the region's economy that represent the five most significant sectors within the region. The contracting organization shall survey businesses and employees in these sectors on an annual basis to gather information on the sector's business needs, expansion plans, relocation decisions, training needs, potential layoffs, financing needs, availability of financing, and other appropriate information about economic trends and specific employer and employee needs in the region. The results of these surveys shall be compiled by the department. The contracting organization shall coordinate methodology for surveying training needs with the work force training and education coordinating board.

              The contracting organization shall participate with the work force training and education coordinating board, and any regional entities designated by that board, in providing for the coordination of job skills training within its region. The contracting organization shall inform businesses of training providers within its region, and shall inform training providers as to business training needs within its region.

              The contracting organization shall be responsible for coordinating the delivery of those public or private technical assistance services required by the businesses and employees in the targeted sectors within its region, as indicated by survey responses. Such services shall include entrepreneurial training, production process analysis, product development assistance, marketing, and financial and other management services. The contracting organization shall develop a list of individuals, organizations, and firms qualified to meet specialized training or business development needs.

              The department's selection of contracting organizations or consortiums shall be based on the sufficiency of the organization's or consortium's proposal to carry out the survey of targeted sectors within its region and coordinate the delivery of technical assistance as required by this section.


              NEW SECTION. Sec. 12. The department shall work with private sector organizations, local governments, local economic development organizations, and higher education and training institutions to assist in the development of a targeted sectors program. The targeted sectors may include, but are not limited to, software, forest products, biotechnology, environmental industries, aerospace, food processing, tourism, film and video, microelectronics, new materials, robotics, and machine tools. The department shall, on a continuing basis, evaluate the potential return to the state from devoting additional resources to a targeted sectors approach to economic development and including additional sectors in its efforts. The department shall use the sectorial surveys conducted in each service delivery region in formulating its sectorial strategies and in designating new targeted sectors.

              In assisting in the development of a targeted sector, the department's activities may include, but are not limited to:

              (1) Conducting focus group discussions, facilitating meetings, and conducting studies to identify members of the sector, appraise the current state of the sector, and identify issues of common concern within the sector;

              (2) Supporting the formation of industry associations, publications of association directories, and related efforts to create or expand the activities or industry associations;

              (3) Assisting in the formation of flexible networks by providing (a) agency employees or private sector consultants trained to act as flexible network brokers and (b) funding for potential flexible network participants for the purpose of organizing or implementing a flexible network;

              (4) Helping establish research consortia;

              (5) Facilitating joint training and education programs;

              (6) Promoting cooperative market development activities;

              (7) Analyzing the need, feasibility, and cost of establishing product certification and testing facilities and services; and

              (8) Providing for methods of electronic communication and information dissemination among firms and groups of firms to facilitate network activity.

              By January 10th of each year, the department shall report in writing on its targeted sector programs to the appropriate legislative committees. The department's report shall include an appraisal of the sector, activities the department has undertaken to assist in the development of each sector, and recommendations to the legislature regarding activities that the state should implement but are currently beyond the scope of the department's program or resources.


              NEW SECTION. Sec. 13. (1) The department shall establish a technical assistance and training program. The program shall be designed to increase the economic and community development skills available in local communities by providing training and funding for training for local citizens and businesses. Services shall be provided in impact areas and shall be targeted to those communities most in need of state assistance.

              (2) The department shall provide direct technical assistance to local communities to strengthen their role in building their local economies. This assistance shall include, but not be limited to:

              (a) Identifying emerging problems in impact areas for businesses, workers, and communities and providing timely assistance;

              (b) Evaluating the economic health of a community including its economic base and its strengths, weaknesses, and opportunities;

              (c) Assisting communities and nonprofit development entities in developing local economic development strategies, including the technical analysis necessary to carry out the strategies;

              (d) Providing assistance to communities in broadening their local economic base, including providing management and financial assistance, entrepreneurial training, and assistance to firms in identifying new markets and introducing new processes;

              (e) Assisting communities in responding to economic change, including supporting organizational and leadership development;

              (f) Assisting local governments to facilitate the siting of businesses;

              (g) Facilitating the formation of flexible networks among groups of businesses; and

              (h) Providing technical and managerial assistance to small businesses including assistance in securing available financing and industrial modernization.

              (3) The department shall administer a technical assistance funding pool for the delivery to impact areas of technical assistance.


              NEW SECTION. Sec. 14. (1) To provide local communities with flexible sources of funding, the department may establish and operate a local development grant program. If established, the program shall coordinate funding for eligible projects with other federal, state, local, private, and nonprofit funding sources.

              (2) To be eligible to receive funds under this program an organization must be a local government, community-based organization, nonprofit development organization, port district, or Indian tribe. Any local government, associate development organization, or port district requesting funds shall demonstrate the participation of a cultural, economic, and ethnic cross-section of the local community in the project, including business, labor, nonprofit community-based organizations, and educational institutions.

              (3) In awarding grants under this program, preference shall be given to efforts that have the prospect of resulting in long-term, family-wage employment, to development that is environmentally sustainable, and to projects that are developed and supported jointly with nonstate partners. Funds shall not be used for entertainment or hosting. Funds granted for economic development projects require a contribution of local funds or resources to the project.


              Sec. 15. RCW 28C.18.060 and 1991 c 238 s 7 are each amended to read as follows:

              The board, in cooperation with the operating agencies of the state training system shall:

              (1) Concentrate its major efforts on planning, coordination evaluation, policy analysis, and recommending improvements to the state's training system.

              (2) Advocate for the state training system and for meeting the needs of employers and the work force for work force education and training.

              (3) Establish and maintain an inventory of the programs of the state training system, and related state programs, and perform a biennial assessment of the vocational education, training, and adult basic education and literacy needs of the state; identify ongoing and strategic education needs; and assess the extent to which employment, training, vocational and basic education, rehabilitation services, and public assistance services represent a consistent, integrated approach to meet such needs.

              (4) Develop and maintain a state comprehensive plan for work force training and education, including but not limited to, goals, objectives, and priorities for the state training system, and review the state training system for consistency with the state comprehensive plan. In developing the state comprehensive plan for work force training and education, the board shall use, but shall not be limited to: Economic, labor market, and populations trends reports in office of financial management forecasts; joint office of financial management and employment security department labor force, industry employment, and occupational forecasts; the results of scientifically based outcome, net-impact and cost-benefit evaluations; the needs of employers as evidenced in formal employer surveys and other employer input; and the needs of program participants and workers as evidenced in formal surveys and other input from program participants and the labor community.

              (5) In consultation with the higher education coordinating board, review and make recommendations to the office of financial management and the legislature on operating and capital facilities budget requests for operating agencies of the state training system for purposes of consistency with the state comprehensive plan for work force training and education.

              (6) Provide for coordination among the different operating agencies of the state training system at the state level and at the regional level.

              (7) Develop a consistent and reliable data base on vocational education enrollments, costs, program activities, and job placements from publicly funded vocational education programs in this state.

              (8) Establish standards for data collection and maintenance for the operating agencies of the state training system in a format that is accessible to use by the board. The board shall require a minimum of common core data to be collected by each operating agency of the state training system.

              The board shall develop requirements for minimum common core data in consultation with the office of financial management and the operating agencies of the training system.

              (9) Establish minimum standards for program evaluation for the operating agencies of the state training system, including, but not limited to, the use of common survey instruments and procedures for measuring perceptions of program participants and employers of program participants, and monitor such program evaluation.

              (10) Every two years administer scientifically based outcome evaluations of the state training system, including, but not limited to, surveys of program participants, surveys of employers of program participants, and matches with employment security department payroll and wage files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state training system.

              (11) In cooperation with the employment security department, provide for the improvement and maintenance of quality and utility in occupational information and forecasts for use in training system planning and evaluation. Improvements shall include, but not be limited to, development of state-based occupational change factors involving input by employers and employees, and delineation of skill and training requirements by education level associated with current and forecasted occupations.

              (12) Provide for the development of common course description formats, common reporting requirements, and common definitions for operating agencies of the training system.

              (13) Provide for effectiveness and efficiency reviews of the state training system.

              (14) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between institutions of the state training system, and encourage articulation agreements for programs encompassing two years of secondary work force education and two years of postsecondary work force education.

              (15) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between private training institutions and institutions of the state training system.

              (16) Participate in the development of coordination criteria for activities under the job training partnership act with related programs and services provided by state and local education and training agencies.

              (17) Make recommendations to the commission of student assessment, the state board of education, and the superintendent of public instruction, concerning basic skill competencies and essential core competencies for K-12 education. Basic skills for this purpose shall be reading, writing, computation, speaking, and critical thinking, essential core competencies for this purpose shall be English, math, science/technology, history, geography, and critical thinking. The board shall monitor the development of and provide advice concerning secondary curriculum which integrates vocational and academic education.

              (18) Establish and administer programs for marketing and outreach to businesses and potential program participants.

              (19) Facilitate the location of support services, including but not limited to, child care, financial aid, career counseling, and job placement services, for students and trainees at institutions in the state training system, and advocate for support services for trainees and students in the state training system.

              (20) Facilitate private sector assistance for the state training system, including but not limited to: Financial assistance, rotation of private and public personnel, and vocational counseling.

              (21) Facilitate programs for school-to-work transition that combine classroom education and on-the-job training in industries and occupations without a significant number of apprenticeship programs.

              (22) Encourage and assess progress for the equitable representation of racial and ethnic minorities, women, and people with disabilities among the students, teachers, and administrators of the state training system. Equitable, for this purpose, shall mean substantially proportional to their percentage of the state population in the geographic area served. This function of the board shall in no way lessen more stringent state or federal requirements for representation of racial and ethnic minorities, women, and people with disabilities.

              (23) Participate in the planning and policy development of governor set-aside grants under P.L. 97-300, as amended.

              (24) Administer veterans' programs, licensure of private vocational schools, the job skills program, and the Washington award for vocational excellence.

              (25) Allocate funding from the state job training trust fund.

              (26) Work with the director of the department of community and economic resources to ensure coordination between work force training priorities and that department's economic development efforts.

              (27) Adopt rules as necessary to implement this chapter.

              The board may delegate to the director any of the functions of this section.


              Sec. 16. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:

              There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of ((trade)) community and economic ((development)) resources, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, and (15) ((the department of community development, and (16))) the department of health, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.


              Sec. 17. RCW 43.17.020 and 1989 1st ex.s. c 9 s 811 are each amended to read as follows:

              There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of wildlife, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of ((trade)) community and economic ((development)) resources, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, and (15) ((the director of community development, and (16))) the secretary of health.

              Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The director of wildlife, however, shall be appointed according to the provisions of RCW 77.04.080. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. A temporary director of wildlife shall not serve more than one year. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.


              NEW SECTION. Sec. 18. The department of community development is hereby abolished and its powers, duties, and functions are hereby transferred to the department of community and economic resources.


              NEW SECTION. Sec. 19. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of community development shall be delivered to the custody of the department of community and economic resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of community development shall be made available to the department of community and economic resources. All funds, credits, or other assets held by the department of community development shall be assigned to the department of community and economic resources.

              Any appropriations made to the department of community development shall, on the effective date of this section, be transferred and credited to the department of community and economic resources.

              Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.


              NEW SECTION. Sec. 20. All employees of the department of community development are transferred to the jurisdiction of the department of community and economic resources. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of community and economic resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.


              NEW SECTION. Sec. 21. All rules and all pending business before the department of community development shall be continued and acted upon by the department of community and economic resources. All existing contracts and obligations shall remain in full force and shall be performed by the department of community and economic resources.


              NEW SECTION. Sec. 22. The transfer of the powers, duties, functions, and personnel of the department of community development shall not affect the validity of any act performed prior to the effective date of this section.


              NEW SECTION. Sec. 23. If apportionments of budgeted funds are required because of the transfers directed by sections 19 through 22 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.


              NEW SECTION. Sec. 24. Nothing contained in sections 18 through 23 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.


              NEW SECTION. Sec. 25. The department of trade and economic development is hereby abolished and its powers, duties, and functions are hereby transferred to the department of community and economic resources.


              NEW SECTION. Sec. 26. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of trade and economic development shall be delivered to the custody of the department of community and economic resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of trade and economic development shall be made available to the department of community and economic resources. All funds, credits, or other assets held by the department of trade and economic development shall be assigned to the department of community and economic resources.

              Any appropriations made to the department of trade and economic development shall, on the effective date of this section, be transferred and credited to the department of community and economic resources.

              Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.


              NEW SECTION. Sec. 27. All employees of the department of trade and economic development are transferred to the jurisdiction of the department of community and economic resources. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of community and economic resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.


              NEW SECTION. Sec. 28. All rules and all pending business before the department of trade and economic development shall be continued and acted upon by the department of community and economic resources. All existing contracts and obligations shall remain in full force and shall be performed by the department of community and economic resources.


              NEW SECTION. Sec. 29. The transfer of the powers, duties, functions, and personnel of the department of trade and economic development shall not affect the validity of any act performed prior to the effective date of this section.


              NEW SECTION. Sec. 30. If apportionments of budgeted funds are required because of the transfers directed by sections 26 through 29 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.


              NEW SECTION. Sec. 31. Nothing contained in sections 25 through 30 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.


              Sec. 32. RCW 19.85.020 and 1989 c 374 s 1 are each amended to read as follows:

              Unless the context clearly indicates otherwise, the definitions in this section apply through this chapter.

              (1) "Small business" has the meaning given in ((RCW 43.31.025(4))) section 3 of this act.

              (2) "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.

              (3) "Industry" means all of the businesses in this state in any one three-digit standard industrial classification as published by the United States department of commerce.


              Sec. 33. RCW 42.17.310 and 1992 c 139 s 5 and 1992 c 71 s 12 are each reenacted and amended to read as follows:

              (1) The following are exempt from public inspection and copying:

              (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

              (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

              (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

              (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

              (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

              (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

              (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

              (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

              (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

              (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

              (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

              (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

              (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.

              (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

              (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW.

              (p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

              (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

              (r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapters 43.163 ((RCW and chapters 43.31, 43.63A)), 43.-- (sections 1 through 8, 10 through 14, and 76 of this act), and 43.168 RCW.

              (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

              (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

              (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

              (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

              (w) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

              (x) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

              (y) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

              (z) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

              (aa) Financial and valuable trade information under RCW 51.36.120.

              (bb) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.

              (cc) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

              (dd) Business related information protected from public inspection and copying under RCW 15.86.110.

              (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

              (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

              (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.


              Sec. 34. RCW 42.17.319 and 1989 c 312 s 7 are each amended to read as follows:

              Notwithstanding the provisions of RCW 42.17.260 through 42.17.340, no financial or proprietary information supplied by investors or entrepreneurs under chapter ((43.31)) 43.-- RCW (sections 1 through 8, 10 through 14, and 76 of this act) shall be made available to the public.


              Sec. 35. RCW 43.17.065 and 1991 c 314 s 28 are each amended to read as follows:

              (1) Where power is vested in a department to issue permits, licenses, certifications, contracts, grants, or otherwise authorize action on the part of individuals, businesses, local governments, or public or private organizations, such power shall be exercised in an expeditious manner. All departments with such power shall cooperate with officials of the business assistance center of the department of ((trade)) community and economic ((development)) resources, and any other state officials, when such officials request timely action on the part of the issuing department.

              (2) After August 1, 1991, any agency to which subsection (1) of this section applies shall, with regard to any permits or other actions that are necessary for economic development in timber impact areas, as defined in RCW 43.31.601, respond to any completed application within forty-five days of its receipt; any response, at a minimum, shall include:

              (a) The specific steps that the applicant needs to take in order to have the application approved; and

              (b) The assistance that will be made available to the applicant by the agency to expedite the application process.

              (3) The agency timber task force established in RCW 43.31.621 shall oversee implementation of this section.

              (4) Each agency shall define what constitutes a completed application and make this definition available to applicants.


              Sec. 36. RCW 43.20A.750 and 1992 c 21 s 4 are each amended to read as follows:

              (1) The department of social and health services shall help families and workers in timber impact areas make the transition through economic difficulties and shall provide services to assist workers to gain marketable skills. The department, as a member of the agency timber task force and in consultation with the economic recovery coordination board, and, where appropriate, under an interagency agreement with the department of community ((development)) and economic resources, shall provide grants through the office of the secretary for services to the unemployed in timber impact areas, including providing direct or referral services, establishing and operating service delivery programs, and coordinating delivery programs and delivery of services. These grants may be awarded for family support centers, reemployment centers, or other local service agencies.

              (2) The services provided through the grants may include, but need not be limited to: Credit counseling; social services including marital counseling; psychotherapy or psychological counseling; mortgage foreclosures and utilities problems counseling; drug and alcohol abuse services; medical services; and residential heating and food acquisition.

              (3) Funding for these services shall be coordinated through the economic recovery coordination board which will establish a fund to provide child care assistance, mortgage assistance, and counseling which cannot be met through current programs. No funds shall be used for additional full-time equivalents for administering this section.

              (4)(a) Grants for family support centers are intended to provide support to families by responding to needs identified by the families and communities served by the centers. Services provided by family support centers may include parenting education, child development assessments, health and nutrition education, counseling, and information and referral services. Such services may be provided directly by the center or through referral to other agencies participating in the interagency team.

              (b) The department shall consult with the council on child abuse or neglect regarding grants for family support centers.

              (5) "Timber impact area" means:

              (a) A county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average; or

              (b) Additional communities as the economic recovery coordinating board, established in RCW 43.31.631, designates based on a finding by the board that each designated community is socially and economically integrated with areas that meet the definition of a timber impact area under (a) of this subsection.


              Sec. 37. RCW 43.31.057 and 1986 c 183 s 2 are each amended to read as follows:

              The department of ((trade)) community and economic ((development)) resources is directed to develop and promote means to stimulate the expansion of the market for Washington products and shall have the following powers and duties:

              (1) To develop a pamphlet for state-wide circulation which will encourage the purchase of items produced in the state of Washington;

              (2) To include in the pamphlet a listing of products of Washington companies which individuals can examine when making purchases so they may have the opportunity to select one of those products in support of this program;

              (3) To distribute the pamphlets on the broadest possible basis through local offices of state agencies, business organizations, chambers of commerce, or any other means the department deems appropriate;

              (4) In carrying out these powers and duties the department shall cooperate and coordinate with other agencies of government and the private sector.


              Sec. 38. RCW 43.31.085 and 1989 c 430 s 2 are each amended to read as follows:

              The business assistance center shall:

              (1) Serve as the state's lead agency and advocate for the development and conservation of businesses.

              (2) Coordinate the delivery of state programs to assist businesses.

              (3) Provide comprehensive referral services to businesses requiring government assistance.

              (4) Serve as the business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist businesses.

              (5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.

              (6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.

              (7) The business assistance center shall work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.

              (8) In collaboration with the child care coordinating committee in the department of social and health services, prepare and disseminate information on child care options for employers and the existence of the program. As much as possible, and through interagency agreements where necessary, such information should be included in the routine communications to employers from (a) the department of revenue, (b) the department of labor and industries, (c) ((the department of community development, (d))) the employment security department, (((e))) (d) the department of ((trade)) community and economic ((development)) resources, (((f))) (e) the small business development center, and (((g))) (f) the department of social and health services.

              (9) In collaboration with the child care coordinating committee in the department of social and health services, compile information on and facilitate employer access to individuals, firms, organizations, and agencies that provide technical assistance to employers to enable them to develop and support child care services or facilities.

              (10) Actively seek public and private money to support the child care facility fund described in RCW 43.31.502, staff and assist the child care facility fund committee as described in RCW 43.31.504, and work to promote applications to the committee for loan guarantees, loans, and grants.


              Sec. 39. RCW 43.31.205 and 1992 c 228 s 2 are each amended to read as follows:

              In an effort to enhance the economy of the Tri-Cities area, the department of ((trade)) community and economic ((development)) resources is directed to promote the existence of the lease between the state of Washington and the federal government executed September 10, 1964, covering one thousand acres of land lying within the Hanford reservation near Richland, Washington, and the opportunity of subleasing the land to entities for nuclear-related industry, in agreement with the terms of the lease. When promoting the existence of the lease, the department shall work in cooperation with any associate development organization((s)) located in or near the Tri-Cities area.


              Sec. 40. RCW 43.31.409 and 1989 c 312 s 3 are each amended to read as follows:

              There is created in the business assistance center of the department of ((trade)) community and economic ((development)) resources the Washington investment opportunities office.


              Sec. 41. RCW 43.31.411 and 1989 c 312 s 4 are each amended to read as follows:

              The Washington investment opportunities office shall:

              (1) Maintain a list of all entrepreneurs engaged in manufacturing, wholesaling, transportation services, development of destination tourism resorts, or traded services throughout the state seeking capital resources and interested in the services of the investment opportunities office.

              (2) Maintain a file on each entrepreneur which may include the entrepreneur's business plan and any other information which the entrepreneur offers for review by potential investors.

              (3) Assist entrepreneurs in procuring the managerial and technical assistance necessary to attract potential investors. Such assistance shall include the automatic referral to the small business innovators opportunity program of any entrepreneur with a new product meriting the services of the program.

              (4) Provide entrepreneurs with information about potential investors and provide investors with information about those entrepreneurs which meet the investment criteria of the investor.

              (5) Promote small business securities financing.

              (6) Remain informed about investment trends in capital markets and preferences of individual investors or investment firms throughout the nation through literature surveys, conferences, and private meetings.

              (7) Publicize the services of the investment opportunities office through public meetings throughout the state, appropriately targeted media, and private meetings. Whenever practical, the office shall use the existing services of local associate development organizations in outreach and identification of entrepreneurs and investors.

              (8) Report to the ways and means committees and ((commerce and labor)) appropriate economic development committees of the senate and the house of representatives by December 1, 1989, and each year thereafter, on the accomplishments of the office. Such reports shall include:

              (a) The number of entrepreneurs on the list referred to in subsection (1) of this section, segregated by standard industrial classification codes;

              (b) The number of investments made in entrepreneurs, segregated as required by (a) of this subsection, as a result of contact with the investment opportunities office, the dollar amount of each such investment, the source, by state or nation, of each investment, and the number of jobs created as a result of each investment;

              (c) The number of entrepreneurs on the list referred to in subsection (1) of this section segregated by counties, the number of investments, the dollar amount of investments, and the number of jobs created through investments in each county as a result of contact with the investment opportunities office;

              (d) A categorization of jobs created through investments made as a result of contact with the investment opportunities office, the number of jobs created in each such category, and the average pay scale for jobs created in each such category;

              (e) The results of client satisfaction surveys distributed to entrepreneurs and investors using the services of the investment opportunities office; and

              (f) Such other information as the managing director finds appropriate.


              Sec. 42. RCW 43.31.422 and 1991 c 272 s 19 are each amended to read as follows:

              The Hanford area economic investment fund is established in the custody of the state treasurer. Moneys in the fund shall only be used pursuant to the recommendations of the committee created in RCW 43.31.425 and the approval of the director of the department of ((trade)) community and economic ((development)) resources for Hanford area revolving loan funds, Hanford area infrastructure projects, or other Hanford area economic development and diversification projects, but may not be used for government or nonprofit organization operating expenses. Up to five percent of moneys in the fund may be used for program administration. For the purpose of this chapter "Hanford area" means Benton and Franklin counties. Disbursements from the fund shall be on the authorization of the director of ((trade)) community and economic ((development)) resources or the director's designee after an affirmative vote of at least six members of the committee created in RCW 43.31.425 on any recommendations by the committee created in RCW 43.31.425. The fund is subject to the allotment procedures under chapter 43.88 RCW, but no appropriation is required for disbursements. The legislature intends to establish similar economic investment funds for areas that develop low-level radioactive waste disposal facilities.


              Sec. 43. RCW 43.31.504 and 1989 c 430 s 4 are each amended to read as follows:

              The child care facility fund committee is established within the business assistance center of the department of ((trade)) community and economic ((development)) resources. The committee shall administer the child care facility fund, with review by the director of the department of ((trade)) community and economic ((development)) resources.

              (1) The committee shall have five members. The director of the department of ((trade)) community and economic ((development)) resources shall appoint the members, who shall include:

              (a) Two persons experienced in investment finance and having skills in providing capital to new businesses, in starting and operating businesses, and providing professional services to small or expanding businesses;

              (b) One person representing a philanthropic organization with experience in evaluating funding requests;

              (c) One child care services expert; and

              (d) One early childhood development expert.

              In making these appointments, the director shall give careful consideration to ensure that the various geographic regions of the state are represented and that members will be available for meetings and are committed to working cooperatively to address child care needs in Washington state.

              (2) The committee shall elect officers from among its membership and shall adopt policies and procedures specifying the lengths of terms, methods for filling vacancies, and other matters necessary to the ongoing functioning of the committee.

              (3) Committee members shall serve without compensation, but may request reimbursement for travel expenses as provided in RCW 43.03.050 and 43.03.060.

              (4) Committee members shall not be liable to the state, to the child care facility fund, or to any other person as a result of their activities, whether ministerial or discretionary, as members except for willful dishonesty or intentional violation of the law. The department of ((trade)) community and economic ((development)) resources may purchase liability insurance for members and may indemnify these persons against the claims of others.


              Sec. 44. RCW 43.31.522 and 1990 c 57 s 2 are each amended to read as follows:

              Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.31.524 and 43.31.526:

              (1) "Department" means the department of ((trade)) community and economic ((development)) resources.

              (2) "Center" means the business assistance center established under RCW 43.31.083.

              (3) "Director" means the director of ((trade)) community and economic ((development)) resources.

              (4) "Local nonprofit organization" means a local nonprofit organization organized to provide economic development or community development services, including but not limited to associate development organizations, economic development councils, and community development corporations.


              Sec. 45. RCW 43.31.524 and 1990 c 57 s 3 are each amended to read as follows:

              There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist businesses to competitively meet their needs for goods and services within Washington state by providing information relating to the replacement of imports or the fulfillment of new requirements with Washington products produced in Washington state. The program shall place special emphasis on strengthening rural economies in economically distressed areas of the state meeting the criteria of an "eligible area" as defined in RCW 82.60.020(3). ((The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.))


              Sec. 46. RCW 43.31.526 and 1990 c 57 s 4 are each amended to read as follows:

              (1) The department shall contract with local nonprofit organizations in at least three economically distressed areas of the state that meet the criteria of an "eligible area" as defined in RCW 82.60.020(3) to implement the Washington marketplace program in these areas. The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations. Contracts with economic development organizations to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas shall be structured by the department and the distressed area marketplace programs. Contracts with economic development organizations shall:

              (a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

              (b) Give preference to nonprofit organizations representing a broad spectrum of community support; and

              (c) Ensure that each location contain sufficient business activity to permit effective program operation.

              The department may require that contractors contribute at least twenty percent local funding.

              (2) The contracts with local nonprofit organizations shall be for, but not limited to, the performance of the following services for the Washington marketplace program:

              (a) Contacting Washington state businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;

              (b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;

              (c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

              (d) Advertising market opportunities described in (c) of this subsection; and

              (e) Receiving bid responses from potential suppliers and sending them to that business for final selection.

              (3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.

              (4) The center shall also perform the following activities in order to promote the goals of the program:

              (a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;

              (b) Provide technical assistance to communities and organizations interested in developing an import replacement program;

              (c) Develop standardized procedures for operating the local component of the Washington marketplace program;

              (d) Provide continuing management and technical assistance to local contractors; and

              (e) Report by December 31 of each year to the ((senate)) appropriate economic development ((and labor committee and to)) committees of the senate and the house of representatives ((trade and economic development committee)) describing the activities of the Washington marketplace program.


              Sec. 47. RCW 43.31.621 and 1991 c 314 s 4 are each amended to read as follows:

              (1) There is established the agency timber task force. The task force shall be chaired by the timber recovery coordinator. It shall be the responsibility of the coordinator that all directives of chapter 314, Laws of 1991 are carried out expeditiously by the agencies represented in the task force. The task force shall consist of the directors, or representatives of the directors, of the following agencies: The department of ((trade)) community and economic ((development, department of community development)) resources, employment security department, department of social and health services, state board for community college education, state board for vocational education, or its replacement entity, department of natural resources, department of transportation, state energy office, department of wildlife, University of Washington center for international trade in forest products, and department of ecology. The task force may consult and enlist the assistance of the following: The higher education coordinating board, University of Washington college of forest resources, Washington State University school of forestry, Northwest policy center, state superintendent of public instruction, the Evergreen partnership, Washington association of counties, and rural development council.

              (2) This section shall expire June 30, 1993.


              Sec. 48. RCW 43.31.641 and 1991 c 314 s 7 are each amended to read as follows:

              The department of ((trade)) community and economic ((development)) resources, as a member of the agency timber task force and in consultation with the board, shall:

              (1) Implement an expanded value-added forest products development industrial extension program. The department shall provide technical assistance to small and medium-sized forest products companies to include:

              (a) Secondary manufacturing product development;

              (b) Plant and equipment maintenance;

              (c) Identification and development of domestic market opportunities;

              (d) Building products export development assistance;

              (e) At-risk business development assistance;

              (f) Business network development; and

              (g) Timber impact area industrial diversification.

              (2) Provide local contracts for small and medium-sized forest product companies, start-ups, and business organizations for business feasibility, market development, and business network contracts that will benefit value-added production efforts in the industry.

              (3) Contract with local business organizations in timber impact areas for development of programs to promote industrial diversification. ((In addition, the department shall develop an interagency agreement with the department of community development for local capacity-building grants to local governments and community-based organizations in timber impact areas, which may include long-range planning and needs assessments.))

              (4) Implement a community assistance program to enable communities to build local capacity for sustainable economic development efforts. The program shall provide resources and technical assistance to timber impact areas.

              (5) Develop and administer a program for local capacity-building grants for local governments and community-based organizations in timber impact areas that may include assistance for long-range planning and needs assessments.

              For the 1991-93 biennium, the department of ((trade)) community and economic ((development)) resources shall use funds appropriated for this section for contracts and for no more than two additional staff positions.


              Sec. 49. RCW 43.31.830 and 1987 c 195 s 7 are each amended to read as follows:

              (1) It shall be the duty of the director of community and economic resources to certify, from the applications received, the state international trade fair or fairs qualified and entitled to receive funds under RCW ((43.31.790 through 43.31.850 and)) 67.16.100, ((as now or hereafter amended)) and under rules established by the director.       (2) To be eligible for state financed aid an organization shall:

              (a) Have had at least two or more years of experience in the presentation of or participation in state international trade fairs; and

              (b) Be able to provide, from its own resources derived from general admission or otherwise, funds sufficient to match at least one-half of the amount of state financial aid allotted.

              (3) The director shall make annual allotments to state international trade fairs determined qualified to be entitled to participate in the state trade fair fund and shall fix times for the division of and payment from the state trade fair fund: PROVIDED, That total payment to any one state international trade fair shall not exceed sixty thousand dollars in any one year, where participation or presentation occurs within the United States, and eighty thousand dollars in any one year, where participation or presentation occurs outside the United States: PROVIDED FURTHER, That a state international trade fair may qualify for the full allotment of funds under either category. Upon certification of the allotment and division of fair funds by the director ((of trade and economic development)) the treasurer shall proceed to pay the same to carry out the purposes of RCW ((43.31.790 through 43.31.850 and)) 67.16.100((, as now or hereafter amended)).


              Sec. 50. RCW 43.31.840 and 1975 1st ex.s. c 292 s 6 are each amended to read as follows:

              The director of community and economic resources shall at the end of each year for which an annual allotment has been made, ((cause to be conducted,)) conduct a post audit of all of the books and records of each state international trade fair participating in the state trade fair fund. The purpose of such post audit shall be to determine how and to what extent each participating state international trade fair has expended all of its funds.

              The audit required by this section shall be a condition to future allotments of money from the state international trade fair fund, and the director shall make a report of the findings of each post audit and shall use such report as a consideration in an application for any future allocations.


              Sec. 51. RCW 43.31.850 and 1987 c 195 s 9 are each amended to read as follows:

              State international trade fair as used in RCW ((43.31.790 through 43.31.840 and)) 67.16.100((, as now or hereafter amended,)) shall mean a fair supported by public agencies basically for the purpose of introducing and promoting the sale of manufactured or cultural products and services of a given area, whether presented in this state, the United States or its territories, or in a foreign country.


              Sec. 52. RCW 43.160.020 and 1992 c 21 s 3 are each amended to read as follows:

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

              (1) "Board" means the community economic revitalization board.

              (2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

              (3) "Department" means the department of ((trade)) community and economic ((development or its successor with respect to the powers granted by this chapter)) resources.

              (4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

              (5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

              (6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

              (7) "Local government" means any port district, county, city, or town.

              (8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

              (9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

              (10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

              (11) "Timber impact area" means:

              (a) A county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average; or

              (b) Additional communities as the economic recovery coordinating board, established in RCW 43.31.631, designates based on a finding by the board that each designated community is socially and economically integrated with areas that meet the definition of a timber impact area under (a) of this subsection.


              Sec. 53. RCW 43.168.020 and 1991 c 314 s 19 are each amended to read as follows:

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

              (1) "Committee" means the Washington state development loan fund committee.

              (2) "Department" means the department of community ((development)) and economic resources.

              (3) "Director" means the director of the department of community ((development)) and economic resources.

              (4) "Distressed area" means: (a) A county which has an unemployment rate which is twenty percent above the state average for the immediately previous three years; (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent. Applications under this subsection (4)(b) shall be filed by April 30, 1989; (c) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate; or (d) a county designated as a timber impact area under RCW 43.31.601 if an application is filed by July 1, 1993. For purposes of this definition, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.

              (5) "Fund" means the Washington state development loan fund.

              (6) "Local development organization" means a nonprofit organization which is organized to operate within an area, demonstrates a commitment to a long-standing effort for an economic development program, and makes a demonstrable effort to assist in the employment of unemployed or underemployed residents in an area.

              (7) "Project" means the establishment of a new or expanded business in an area which when completed will provide employment opportunities. "Project" also means the retention of an existing business in an area which when completed will provide employment opportunities.


              Sec. 54. RCW 43.210.110 and 1991 c 314 s 12 are each amended to read as follows:

              (1) The small business export finance assistance center has the following powers and duties when exercising its authority under RCW 43.210.100(3):

              (a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other public or private sources to carry out its purposes;

              (b) Offer comprehensive export assistance and counseling to manufacturers relatively new to exporting with gross annual revenues less than twenty-five million dollars. As close to ninety percent as possible of each year's new cadre of clients must have gross annual revenues of less than five million dollars at the time of their initial contract. At least fifty percent of each year's new cadre of clients shall be from timber impact areas as defined in RCW 43.31.601. Counseling may include, but not be limited to, helping clients obtain debt or equity financing, in constructing competent proposals, and assessing federal guarantee and/or insurance programs that underwrite exporting risk; assisting clients in evaluating their international marketplace by developing marketing materials, assessing and selecting targeted markets; assisting firms in finding foreign customers by conducting foreign market research, evaluating distribution systems, selecting and assisting in identification of and/or negotiations with foreign agents, distributors, retailers, and by promoting products through attending trade shows abroad; advising companies on their products, guarantees, and after sales service requirements necessary to compete effectively in a foreign market; designing a competitive strategy for a firm's products in targeted markets and methods of minimizing their commercial and political risks; securing for clients specific assistance as needed, outside the center's field of expertise, by referrals to other public or private organizations. The Pacific Northwest export assistance project shall focus its efforts on facilitating export transactions for its clients, and in doing so, provide such technical services as are appropriate to accomplish its mission either with staff or outside consultants;

              (c) Sign three-year counseling agreements with its clients that provide for termination if adequate funding for the Pacific Northwest export assistance project is not provided in future appropriations. Counseling agreements shall not be renewed unless there are compelling reasons to do so, and under no circumstances shall they be renewed for more than two additional years. A counseling agreement may not be renewed more than once. The counseling agreements shall have mutual performance clauses, that if not met, will be grounds for releasing each party, without penalty, from the provisions of the agreement. Clients shall be immediately released from a counseling agreement with the Pacific Northwest export assistance project, without penalty, if a client wishes to switch to a private export management service and produces a valid contract signed with a private export management service, or if the president of the small business export finance assistance center determines there are compelling reasons to release a client from the provisions of the counseling agreement;

              (d) May contract with private or public international trade education services to provide Pacific Northwest export assistance project clients with training in international business. The president and board of directors shall decide the amount of funding allocated for educational services based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;

              (e) May contract with the Washington state international trade fair to provide services for Pacific Northwest export assistance project clients to participate in one trade show annually. The president and board of directors shall decide the amount of funding allocated for trade fair assistance based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;

              (f) Provide biennial assessments of its performance. Project personnel shall work with the department of revenue and employment security department to confidentially track the performance of the project's clients in increasing tax revenues to the state, increasing gross sales revenues and volume of products destined to foreign clients, and in creating new jobs for Washington citizens. A biennial report shall be prepared for the governor and legislature to assess the costs and benefits to the state from creating the project. The president of the small business export finance assistance center shall design an appropriate methodology for biennial assessments in consultation with the director of the department of ((trade)) community and economic ((development)) resources and the director of the Washington state department of agriculture. The department of revenue and the employment security department shall provide data necessary to complete this biennial evaluation, if the data being requested is available from existing data bases. Client-specific information generated from the files of the department of revenue and the employment security department for the purposes of this evaluation shall be kept strictly confidential by each department and the small business export finance assistance center;

              (g) Take whatever action may be necessary to accomplish the purposes set forth in RCW 43.210.070 and 43.210.100 through 43.210.120; and

              (h) Limit its assistance to promoting the exportation of value-added manufactured goods. The project shall not provide counseling or assistance, under any circumstances, for the importation of foreign made goods into the United States.

              (2) The Pacific Northwest export assistance project shall not, under any circumstances, assume ownership or take title to the goods of its clients.

              (3) The Pacific Northwest export assistance project may not use any Washington state funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement. Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement. Debts of the center shall be center debts only and may be satisfied only from the resources of the center. The state of Washington shall not in any way be liable for such debts.

              (4) The Pacific Northwest export assistance project shall make every effort to seek nonstate funds to supplement its operations.

              (5) The Pacific Northwest export assistance project shall take whatever steps are necessary to provide its services, if requested, to the states of Oregon, Idaho, Montana, Alaska, and the Canadian provinces of British Columbia and Alberta. Interstate services shall not be provided by the Pacific Northwest export assistance project during its first biennium of operation. The provision of services may be temporary and subject to the payment of fees, or each state may request permanent services contingent upon a level of permanent funding adequate for services provided. Temporary services and fees may be negotiated by the small business export finance assistance center's president subject to approval of the board of directors. The president of the small business export finance assistance center may enter into negotiations with neighboring states to contract for delivery of the project's services. Final contracts for providing the project's counseling and services outside of the state of Washington on a permanent basis shall be subject to approval of the governor, appropriate legislative oversight committees, and the small business export finance assistance center's board of directors.

              (6) The small business export finance assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the Pacific Northwest export assistance project and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

              (7) The president of the small business export finance assistance center, in consultation with the board of directors, may use the following formula in determining the number of clients that can be reasonably served by the Pacific Northwest export assistance project relative to its appropriation. Divide the amount appropriated for administration of the Pacific Northwest export assistance project by the marginal cost of adding each additional Pacific Northwest export assistance project client. For the purposes of this calculation, and only for the first biennium of operation, the biennial marginal cost of adding each additional Pacific Northwest export assistance project client shall be fifty-seven thousand ninety-five dollars. The biennial marginal cost of adding each additional client after the first biennium of operation shall be established from the actual operating experience of the Pacific Northwest export assistance project.

              (8) All receipts from the Pacific Northwest export assistance project shall be deposited into the general fund.


              Sec. 55. RCW 43.63A.066 and 1990 c 33 s 579 are each amended to read as follows:

              The department of community ((development)) and economic resources shall have primary responsibility for providing child abuse and neglect prevention training to preschool age children participating in the federal head start program or the early childhood education and assistance program established under RCW 28A.215.010 through 28A.215.200 and 28A.215.900 through 28A.215.908.


              Sec. 56. RCW 43.63A.075 and 1985 c 466 s 53 are each amended to read as follows:

              The department shall establish a community development finance program. Pursuant to this program, the department shall: (1) Develop expertise in federal, state, and local community and economic development programs; and (2) assist communities and businesses to secure available financing((; and (3) work closely with the department of trade and economic development on financial and technical assistance programs available to small and medium sized businesses)). To the extent permitted by federal law, the department is encouraged to use federal community block grant funds to make urban development action grants to communities which have not been eligible to receive such grants prior to June 30, 1984.


              Sec. 57. RCW 43.63A.115 and 1990 c 156 s 1 are each amended to read as follows:

              (1) The community action agency network, established initially under the federal economic opportunity act of 1964 and subsequently under the federal community services block grant program of 1981, as amended, shall be a delivery system for federal and state anti-poverty programs in this state, including but not limited to the community services block grant program, the low-income energy assistance program, and the federal department of energy weatherization program.

              (2) Local community action agencies comprise the community action agency network. The community action agency network shall serve low-income persons in the counties. Each community action agency and its service area shall be designated in the state federal community service block grant plan as prepared by the department of community ((development)) and economic resources.

              (3) Funds for anti-poverty programs may be distributed to the community action agencies by the department of community ((development)) and economic resources and other state agencies in consultation with the authorized representatives of community action agency networks.


              Sec. 58. RCW 43.63A.155 and 1989 c 225 s 5 are each amended to read as follows:

              The department of community ((development)) and economic resources shall retain the bond information it receives under RCW 39.44.210 and 39.44.230 and shall publish summaries of local government bond issues at least once a year.

              The department of community ((development)) and economic resources shall adopt rules under chapter 34.05 RCW to implement RCW 39.44.210 and 39.44.230.


              Sec. 59. RCW 43.63A.220 and 1987 c 505 s 34 are each amended to read as follows:

              (1) The department of community ((development)) and economic resources is directed to undertake a study as to the best means of providing encouragement and assistance to the formulation of employee stock ownership plans providing for the partial or total acquisition, through purchase, distribution in lieu of compensation, or a combination of these means or any other lawful means, of shares of stock or other instruments of equity in facilities by persons employed at these facilities in cases in which operations at these facilities would, absent employee equity ownership, be terminated, relocated outside of the state, or so reduced in volume as to entail the permanent layoff of a substantial number of the employees.

              (2) In conducting its study, the department shall:

              (a) Consider federal and state law relating directly or indirectly to plans proposed under subsection (1) of this section, and to the organization and operation of any trusts established pursuant to the plans, including but not limited to, the federal internal revenue code and any regulations promulgated under the internal revenue code, the federal securities act of 1933 as amended and other federal statutes providing for regulation of the issuance of securities, the federal employee retirement income and security act of 1974 as amended, the Chrysler loan guarantee legislation enacted by the United States congress in 1979, and other federal and state laws relating to employment, compensation, taxation, and retirement;

              (b) Consult with relevant persons in the public sector, relevant persons in the private sector, including trustees of any existing employee stock ownership trust, and employees of any firm operating under an employee stock ownership trust, and with members of the academic community and of relevant branches of the legal profession;

              (c) Examine the experience of trusts organized pursuant to an employee stock ownership plan in this state or in any other state; and

              (d) Make other investigations as it may deem necessary in carrying out the purposes of this section.

              (3) Pursuant to the findings and conclusions of the study conducted under subsection (2) of this section, the department of community ((development)) and economic resources shall develop a plan to encourage and assist the formulation of employee stock ownership plans providing for the acquisition of stock by employees of facilities in this state which are subject to closure or drastically curtailed operation. The department shall determine the amount of any costs of implementing the plan.

              (4) The director of community ((development)) and economic resources shall, within one year of July 28, 1985, report the findings and conclusion of the study, together with details of the plan developed pursuant to the study, to the legislature, and shall include in the report any recommendations for legislation which the director deems appropriate.

              (5) The department of community ((development)) and economic resources shall carry out its duties under this section using available resources.


              Sec. 60. RCW 43.63A.230 and 1988 c 186 s 17 are each amended to read as follows:

              (1) The department of community ((development)) and economic resources shall integrate an employee ownership program within its existing technical assistance programs. The employee ownership program shall provide technical assistance to cooperatives authorized under chapter 23.78 RCW and conduct educational programs on employee ownership and self-management. The department shall include information on the option of employee ownership wherever appropriate in its various programs.

              (2) The department shall maintain a list of firms and individuals with expertise in the field of employee ownership and utilize such firms and individuals, as appropriate, in delivering and coordinating the delivery of technical, managerial, and educational services. In addition, the department shall work with and rely on the services of ((the department of trade and economic development,)) the employment security department((,)) and state institutions of higher education to promote employee ownership.

              (3) The department shall report to the governor, the ((trade and)) appropriate economic development ((committee of)) committees of the senate and the house of representatives, ((the commerce and labor committee of the senate,)) and the ways and means committees of each house by December 1 of 1988, and each year thereafter, on the accomplishments of the employee-ownership program. Such reports shall include the number and types of firms assisted, the number of jobs created by such firms, the types of services, the number of workshops presented, the number of employees trained, and the results of client satisfaction surveys distributed to those using the services of the program.

              (4) For purposes of this section, an employee stock ownership plan qualifies as a cooperative if at least fifty percent, plus one share, of its voting shares of stock are voted on a one-person-one-vote basis.


              Sec. 61. RCW 43.63A.245 and 1992 c 63 s 2 are each amended to read as follows: