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NINETY-NINTH DAY


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MORNING SESSION


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Senate Chamber, Olympia, Monday, April 19, 1993

     The Senate was called to order at 10:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Haugen, McAuliffe, McDonald, Owen, Sellar, Sheldon and von Reichbauer. On motion of Senator Oke, Senators McDonald, Sellar and von Reichbauer were excused. On motion of Senator Loveland, Senator Haugen was excused.

     The Sergeant at Arms Color Guard, consisting of Pages Stephanie Picha and Shawn Thomas, presented the Colors. Dr. Morris Belling of the Temple Beth Hatfiloh of Olympia, offered the prayer.


MOTION


     On motion of Senator Jesernig, the reading of the Journal of the previous day was dispensed with and it was approved.


MESSAGES FROM THE HOUSE


April 18, 1993


MR. PRESIDENT:

     The House has passed:

     SUBSTITUTE SENATE BILL NO. 5957,

     SENATE BILL NO. 5973,

     SENATE BILL NO. 5975,

     SENATE BILL NO. 5984, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


April 18, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5727, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk


SIGNED BY THE PRESIDENT

     The President signed:

     SUBSTITUTE SENATE BILL NO. 5727,

     SUBSTITUTE SENATE BILL NO. 5957,

     SENATE BILL NO. 5973,

     SENATE BILL NO. 5975,

     SENATE BILL NO. 5984.



SIGNED BY THE PRESIDENT

     The President signed:

     SUBSTITUTE SENATE BILL NO. 5556,

     SUBSTITUTE SENATE BILL NO. 5567,

     SUBSTITUTE SENATE BILL NO. 5606,

     SUBSTITUTE SENATE BILL NO. 5612,

     SUBSTITUTE SENATE BILL NO. 5625,

     SUBSTITUTE SENATE BILL NO. 5634,

     ENGROSSED SENATE BILL NO. 5694,

     SUBSTITUTE SENATE BILL NO. 5751,

     ENGROSSED SENATE BILL NO. 5768,

     SUBSTITUTE SENATE BILL NO. 5839,

     SUBSTITUTE SENATE BILL NO. 5849,

     SENATE BILL NO. 5856,

     SUBSTITUTE SENATE BILL NO. 5858,

     SUBSTITUTE SENATE BILL NO. 5876.


MESSAGE FROM THE HOUSE


April 8, 1993


MR. PRESIDENT:

     The House had passed SENATE BILL NO. 5883 with the following amendment(s):

     On page 2, line 2, after "or" strike all material through "high school" on line 6, and insert "((vocational-technical institute a sum not exceeding the amount of state funds under RCW 28A.150.260 generated by a full time equivalent student and in proportion to the number of hours of instruction the pupil receives at the community college or vocational-technical institute and at the high school)) technical college 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.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Bauer, the Senate concurred in the House amendments to Senate Bill No. 5883.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5883, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5883, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 1; Absent, 3; Excused, 4.

     Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McCaslin, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 41.

     Voting nay: Senator Barr - 1.

     Absent: Senators McAuliffe, Owen and Sheldon - 3.

     Excused: Senators Haugen, McDonald, Sellar and von Reichbauer - 4.

     SENATE BILL NO. 5883, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


     On motion of Senator Loveland, Senators McAuliffe and Sheldon were excused.


MESSAGE FROM THE HOUSE


April 12, 1993


MR. PRESIDENT:

     The House had passed SENATE BILL NO. 5903 with the following amendment(s):

     On page 1, line 10, after "enrolled in a" strike "community or"

     On page 1, line 15, after "districts." insert "This section does not apply to students enrolled in the running start program established in RCW 28A.600.310.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Bauer, the Senate concurred in the House amendments to Senate Bill No. 5903.



     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5903, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5903, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 2; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 42.

     Absent: Senators Bauer and Owen - 2.

     Excused: Senators Haugen, McAuliffe, Sellar, Sheldon and von Reichbauer - 5.

     SENATE BILL NO. 5903, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


     On motion of Senator Loveland, Senator Owen was excused.


MESSAGE FROM THE HOUSE


April 13, 1993


MR. PRESIDENT:

     The House had passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5911 with the following amendment(s):

     On page 1, line 14, after "((ninety))" strike "fifty" and insert "seventy-five", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Skratek, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5911.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5911, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5911, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 2; Absent, 1; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Loveland, McCaslin, McDonald, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, West, Williams, Winsley and Wojahn - 41.

     Voting nay: Senators Moore and Talmadge - 2.

     Absent: Senator Jesernig - 1.

     Excused: Senators Haugen, McAuliffe, Owen, Sheldon and von Reichbauer - 5.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 5911, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 7, 1993


MR. PRESIDENT:

     The House had passed SUBSTITUTE SENATE BILL NO. 5913 with the following amendment(s):

     On page 2, line 32, beginning with "RCW 70.44.200" strike all the matter through "filed" on line 37, and insert "((RCW 70.44.200)) this section shall be an alternative method of annexation applicable only ((when)) if at the time ((a)) the annexation petition is filed ((pursuant to RCW 70.44.200)) either there are no ((qualified electors)) registered voters residing in the territory proposed to be annexed or the petition is also signed by all of the registered voters residing in the territory proposed to be annexed", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Drew, the Senate concurred in the House amendment to Substitute Senate Bill No. 5913.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5913, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5913, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

     Excused: Senators Haugen, McAuliffe, Owen, Sheldon and von Reichbauer - 5.

     SUBSTITUTE SENATE BILL NO. 5913, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 8, 1993


MR. PRESIDENT:

     The House had passed ENGROSSED SENATE BILL NO. 5917 with the following amendment(s):

     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."

     Renumber the remaining sections consecutively., and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Vognild, the Senate concurred in the House amendment to Engrossed Senate Bill No. 5917.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5917, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5917, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

     Excused: Senators Haugen, McAuliffe, Owen, Sheldon and von Reichbauer - 5.

     ENGROSSED SENATE BILL NO. 5917, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


     On motion of Senator Jesernig, the Senate advanced to the eighth order of business.


MOTION


     On motion of Senator Rasmussen, the following resolution was adopted:


SENATE RESOLUTION 1993-8638


By Senator Rasmussen


     WHEREAS, The Eatonville Cruisers are the 1992 State A Boys' Football Champions; and

     WHEREAS, The Cruisers became state champions by defeating the outstanding football team, the Leopards of Zillah; and

     WHEREAS, Head Coach Steve Gervais, Assistant Coaches Bill Jacobs, George Fairhart, Darrell Babcock, Sean McNabb and each and every member of the Cruiser squad worked together to create the will that fought the odds and enabled the Cruisers to make the biggest comeback in state championship history; and

     WHEREAS, This will to win would not have been possible without the support and encouragement of all the students of Eatonville High School, the parents and families, staff, district members, and members of the community;

     NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize and honor the Eatonville Cruisers Boys' Football Team for this hard-earned championship and for its contribution to the spirit of the entire student body; and

     BE IT FURTHER RESOLVED, That this resolution be immediately transmitted by the Secretary of the Senate to the Captain of the Eatonville Cruisers Championship Boys' Football Team, the Head Coach, the Student Body President, and the School Principal.


     Senators Rasmussen, Amondson and Gaspard spoke to Senate Resolution 1993-8638.


INTRODUCTION OF SPECIAL GUESTS


     The President introduced and congratulated the Eatonville Cruisers Basketball Team and the coaches who were seated in the gallery.


MOTION


     On motion of Senator Jesernig, the Senate returned to the fourth order of business.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House had passed SUBSTITUTE SENATE BILL NO. 5922 with the following amendment(s):

     On page 3, line 23, after "anesthetist." insert ""Protocol" means a statement regarding practice and documentation concerning such items as categories of patients, categories of medications, or categories of procedures rather than detailed case-specific formulas for the practice of nurse anesthesia."

     On page 3, line 24, strike all of section 2 and renumber the remaining section, and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Talmadge, the Senate concurred in the House amendments to Substitute Senate Bill No. 5922.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5922, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5922, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

     Excused: Senators Haugen, McAuliffe, Owen, Sheldon and von Reichbauer - 5.

     SUBSTITUTE SENATE BILL NO. 5922, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 15, 1993


MR. PRESIDENT:

     The House had passed ENGROSSED SUBSTITUTE SENATE JOINT MEMORIAL NO. 8016 with the following amendment(s):

     On page 1, beginning on line 1, strike everything through "Washington." on page 3, line 2, and insert the following:

     "TO THE HONORABLE BILL CLINTON, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED, AND TO THE SECRETARY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE, AND TO THE FEDERAL FOOD SAFETY AND INSPECTION SERVICE, AND TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION, AND TO THE FOOD AND DRUG ADMINISTRATION:

     We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:



     WHEREAS, A great public health alarm has been caused in Washington state with over four hundred fifty people confirmed as having contracted Escherichia coli 0157:H7 since early December of 1992; and

     WHEREAS, E. coli 0157:H7 has caused the death of three children, over one hundred fifty people have been hospitalized as of February 20, 1993, and thirty children have suffered hemolytic uremic syndrome, a serious side effect that causes kidney dysfunction and affects the blood clotting system; and

     WHEREAS, People have contracted the infection by eating insufficiently cooked hamburger that had this particular strain of E. coli bacteria which contaminated the meat during or after the time of slaughter; and

     WHEREAS, The extent that this newly detected strain of highly toxic bacteria is causing infections elsewhere in the United States is not accurately known because most other states have not designated E. coli 0157:H7 as a reportable disease; and

     WHEREAS, Though citizens of the United States have enjoyed the safest food supply in the world, this outbreak has eroded confidence in food safety in general and meat inspection in particular, and unless the problem is fully addressed, additional outbreaks are likely to occur;

     NOW, THEREFORE, Your memorialists respectfully pray that the appropriate federal agencies, including, but not limited to, the Food Safety and Inspection Service of the United States Department of Agriculture, the Centers for Disease Control and Prevention, and the Food and Drug Administration form a task force to: (1) Promptly and fully investigate and monitor outbreaks of E. coli 0157:H7 throughout the United States in cooperation with state and local governments; (2) examine the full food chain process from farm to table to determine how improvements may be made to better guarantee the safety of our food supply; (3) examine whether meat and meat products imported into this country comply with comparable inspection and health standards as does domestically processed meat; (4) designate E. coli 0157:H7 as a reportable disease throughout the nation; and (5) start the process needed to update the Food and Drug Administration Model Food Code to reflect the new knowledge and technology that impact food safety.

     BE IT RESOLVED, That the federal Food Safety and Inspection Service is requested to provide a written report to the Washington state legislature in January 1994 of the changes and improvements that have been accomplished to address this public health issue; and

     BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable Bill Clinton, President of the United States, Mike Espy, Secretary of the United States Department of Agriculture, the federal Food Safety and Inspection Service, the Centers for Disease Control and Prevention, the Food and Drug Administration, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Rasmussen, the Senate concurred in the House amendment to Engrossed Substitute Senate Joint Memorial No. 8016.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Joint Memorial No. 8016, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Substitute Senate Joint Memorial No. 8016, as amended by the House, and the joint memorial passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 47.

     Absent: Senator McDonald - 1.

     Excused: Senator von Reichbauer - 1.

     ENGROSSED SUBSTITUTE SENATE JOINT MEMORIAL NO. 8016, as amended by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House had passed SENATE JOINT MEMORIAL NO. 8021 with the following amendment(s):

     On page 2, line 21, strike "approximately double its budget and", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Fraser, the Senate concurred in the House amendment to Senate Joint Memorial No. 8021.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Joint Memorial No. 8021, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Joint Memorial No. 8021, as amended by the House, and the joint memorial passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 49.

     SENATE JOINT MEMORIAL. 8021, as amended by the House, having received the constitutional majority, was declared passed.


MOTION


     On motion of Senator Jesernig, the Senate advanced to the sixth order of business.


MOTION


     On motion of Senator Jesernig, the following bills, which were on the second reading calendar, were referred to the Committee on Rules:

                        SHB 1108       Nonpartisan local elections

                        HB 1132         Electric spa equipment

                        ESHB 1298     School/library dist levies

                        ESHB 1309     Wild salmonid protection

                        ESHB 1369     Vocational education

                        HB 1376         Mobile home parks/access

                        ESHB 1519     Housing affordability office

                        EHB 1536       Mobile home park mntence

                         SHB 1703      Alternate operator service

                        ESHB 1739     Citizen suggestion program

                        EHB 1756       Certified electricians use

                        SHB 1795       Vehicular pursuit

                        HB 1929         Regional transportation plan

                        HB 1942         Transportation planning

                        ESHB 1949     Nonprofit org/political actv

                        SHB 2007       Low-income housing funding

                        HB 2112         Taxation


MOTION


     On motion of Senator Jesernig, the Senate reverted to the first order of business.


REPORTS OF STANDING COMMITTEES

GUBERNATORIAL APPOINTMENTS


April 19, 1993

GA 9126         ROBERT A. TURNER, appointed January 18, 1993, for a term ending at the Governor's pleasure, as Director of the Department of Fisheries.

                        Reported by Committee on Natural Resources


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Owen, Chairman; Amondson, Haugen, Oke, Snyder, and Spanel.


     Passed to Committee on Rules.


April 19, 1993

GA 9270         ROBERT V. JENSEN, appointed February 9, 1993, for a term ending June 30, 1998, as a member of the Pollution Control/Shorelines Hearings Board.

                        Reported by Committee on Natural Resources


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Owen, Chairman; Amondson, Erwin, Haugen, Oke, Snyder, and Spanel.


     Passed to Committee on Rules.


April 19, 1993

GA 9292         SENATOR DEAN SUTHERLAND, reappointed March 4, 1993, for a term ending June 12, 1995, as a member of the Pacific Marine Fisheries Commission.

                        Reported by Committee on Natural Resources


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Owen, Chairman; Amondson, Erwin, Haugen, Oke, Snyder, and Spanel.


     Passed to Committee on Rules.


April 19, 1993

GA 9313         SENATOR HARRIET A. SPANEL, reappointed February 26, 1993, for a term ending June 12, 1995, as a member of the Pacific Marine Fisheries Commission.

                        Reported by Committee on Natural Resources


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Owen, Chairman; Amondson, Erwin, Haugen, Oke, Snyder, and Spanel.


     Passed to Committee on Rules.


April 19, 1993

GA 9318         RICHARD KELLY, appointed April 1, 1993, for a term ending June 30, 1996, as a member of the Pollution Control/Shorelines Hearings Board.

                        Reported by Committee on Natural Resources


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Owen, Chairman; Amondson, Erwin, Haugen, Oke, Snyder, and Spanel.


     Passed to Committee on Rules.


MOTION


     At 10:55 a.m., on motion of Senator Jesernig, the Senate recessed until 11:15 a.m.


     The Senate was called to order at 11:54 a.m. by President Pritchard.


MOTION


     At 11:54 a.m., on motion of Senator Jesernig, the Senate recessed until 1:00 p.m.


     The Senate was called to order at 1:09 p.m. by President Pritchard.

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


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

     The House had passed SUBSTITUTE SENATE BILL NO. 5332 with the following amendment(s):

     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.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Fraser, the Senate concurred in the House amendments to Substitute Senate Bill No. 5332.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5332, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5332, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 2; Excused, 0.

     Voting yea: Senators Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Absent: Senators Amondson and McCaslin - 2.

     SUBSTITUTE SENATE BILL NO. 5332, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


     On motion of Senator Oke, Senators Roach and Sellar were excused.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House had passed SUBSTITUTE SENATE BILL NO. 5443 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 16.65.030 and 1991 c 17 s 1 are each amended to read as follows:

     (1) On and after June 10, 1959, no person shall operate a public livestock market without first having obtained a license from the director. Application for such license or renewal thereof shall be in writing on forms prescribed by the director, and shall include the following:

     (a) A legal description of the property upon which the public livestock market shall be located.

     (b) A complete description and blueprints or plans of the public livestock market physical plant, yards, pens, and all facilities the applicant proposes to use in the operation of such public livestock market.

     (c) A detailed statement showing all the assets and liabilities of the applicant which must reflect a sufficient net worth to construct or operate a public livestock market.

     (d) The schedule of rates and charges the applicant proposes to impose on the owners of livestock for services rendered in the operation of such livestock market.

     (e) The weekly or monthly sales day or days on which the applicant proposes to operate his or her public livestock market sales.

     (f) Projected source and quantity of livestock, by county, anticipated to be handled.

     (g) Projected income and expense statements for the first year's operation.

     (h) Facts upon which are based the conclusion that the trade area and the livestock industry will benefit because of the proposed market.

     (i) Such other information as the director may reasonably require.

     (2) The director shall, after public hearing as provided by chapter 34.05 RCW, grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to all of the requirements of this section and giving reasonable consideration at the same hearing to:

     (a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application; and

     (b) The present market services elsewhere available to the trade area proposed to be served.

     (3) Such application shall be accompanied by a license fee based on the average gross sales volume per official sales day of that market:

     (a) Markets with an average gross sales volume up to and including ten thousand dollars, a fee of no less than one hundred ((dollar fee)) dollars or more than one hundred fifty dollars;

     (b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a fee of no less than two hundred ((dollar fee)) dollars or more than three hundred fifty dollars; and

     (c) Markets with an average gross sales volume over fifty thousand dollars, a fee of no less than three hundred ((dollar fee)) dollars or more than four hundred fifty dollars.

     The fees for public livestock market licensees shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act.

     (4) Any applicant operating more than one public livestock market shall make a separate application for a license to operate each such public livestock market, and each such application shall be accompanied by the appropriate license fee.

     (5) Upon the approval of the application by the director and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof. Any license issued under the provisions of this chapter shall only be valid at location and for the sales day or days for which the license was issued.

     Sec. 2. RCW 16.65.090 and 1983 c 298 s 8 are each amended to read as follows:

     The director shall provide for brand inspection. When such brand inspection is required the licensee shall collect from the consignor and pay to the department, as provided by law, a fee for brand inspection for each animal consigned to the public livestock market or special open consignment horse sale((: PROVIDED, That if in any one sale day the total fees collected for brand inspection do not exceed sixty dollars, then such licensee shall pay sixty dollars for such brand inspection or as much thereof as the director may prescribe)). The director shall set by rule, adopted after a hearing under chapter 34.05 RCW and in conformance with section 10 of this act, a minimum daily inspection fee that shall be paid to the department by the licensee. Such a fee shall be not less than sixty dollars and not more than ninety dollars.

     Sec. 3. RCW 16.58.050 and 1979 c 81 s 2 are each amended to read as follows:

     The application for an annual license to engage in the business of operating one or more certified feed lots shall be accompanied by a license fee of no less than five hundred dollars or no more than seven hundred fifty dollars. The actual license fee for a certified feed lot license shall be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act. Upon approval of the application by the director and compliance with the provisions of this chapter and rules ((and regulations)) adopted hereunder, the applicant shall be issued a license or a renewal thereof.

     Sec. 4. RCW 16.58.130 and 1991 c 109 s 14 are each amended to read as follows:

     Each licensee shall pay to the director a fee of no less than ten cents but no more than fifteen cents for each head of cattle handled through the licensee's feed lot. The fee shall be set by the director by rule after a hearing under chapter 34.05 RCW and in conformance with section 10 of this act. Payment of such fee shall be made by the licensee on a monthly basis. Failure to pay as required shall be grounds for suspension or revocation of a certified feed lot license. Further, the director shall not renew a certified feed lot license if a licensee has failed to make prompt and timely payments.

     Sec. 5. RCW 16.57.080 and 1991 c 110 s 1 are each amended to read as follows:

     The director shall establish by rule a schedule for the renewal of registered brands. The fee for renewal of the brands shall be no less than twenty-five dollars for each two-year period of brand ownership, except that the director may, in adopting a renewal schedule, provide for the collection of renewal fees on a prorated basis and may by rule increase the registration and renewal fee for brands by no more than fifty percent subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act. At least one hundred twenty days before the expiration of a registered brand, the director shall notify by letter the owner of record of the brand that on the payment of the requisite application fee and application of renewal the director shall issue the proof of payment allowing the brand owner exclusive ownership and use of the brand for the subsequent registration period. The failure of the registered owner to pay the renewal fee by the date required by rule shall cause such owner's brand to revert to the department. The director may for a period of one year following such reversion, reissue such brand only to the prior registered owner upon payment of ((twenty-five dollars and an additional fee of ten dollars)) the registration fee and a late filing fee to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act, for renewal subsequent to the regular renewal period. The director may at ((his)) the director's discretion, if such brand is not reissued within one year to the prior registered owner, issue such brand to any other applicant.

     Sec. 6. RCW 16.57.090 and 1974 ex.s. c 64 s 3 are each amended to read as follows:

     A brand is the personal property of the owner of record. Any instrument affecting the title of such brand shall be acknowledged in the presence of the recorded owner and a notary public. The director shall record such instrument upon presentation and payment of a ((ten dollar)) recording fee not to exceed fifteen dollars to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act. Such recording shall be constructive notice to all the world of the existence and conditions affecting the title to such brand. A copy of all records concerning the brand, certified by the director, shall be received in evidence to all intent and purposes as the original instrument. The director shall not be personally liable for failure of ((his)) the director's agents to properly record such instrument.

     Sec. 7. RCW 16.57.140 and 1974 ex.s. c 64 s 4 are each amended to read as follows:

     The owner of a brand of record may procure from the director a certified copy of the record of ((his)) the owner's brand upon payment of ((five dollars)) a fee not to exceed seven dollars and fifty cents to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act.

     Sec. 8. RCW 16.57.220 and 1981 c 296 s 17 are each amended to read as follows:

     The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules ((and regulations)) adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection ((shall)) may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection ((performed at inspection points according to schedules established by the director)) shall be not less than ((thirty cents nor more than)) fifty cents nor more than seventy-five cents per head for cattle and not less than two dollars nor more than three dollars per head for horses as prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with section 10 of this act. Fees for brand inspection of cattle and horses performed by the director at points other than those designated by the director or not in accord with the schedules established by ((him)) the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. Such schedule of fees shall be established subsequent to a hearing and all regulations concerning fees shall be adopted in accord with the provisions of chapter 34.05 RCW, the Administrative Procedure Act, concerning the adoption of rules as enacted or hereafter amended.

     Sec. 9. RCW 16.57.400 and 1981 c 296 s 23 are each amended to read as follows:



     The director may provide by rules and regulations adopted pursuant to chapter 34.05 RCW for the issuance of individual horse and cattle identification certificates or other means of horse and cattle identification deemed appropriate. Such certificates or other means of identification shall be valid only for the use of the horse and cattle owner in whose name it is issued.

     Horses and cattle identified pursuant to the provisions of this section and the rules and regulations adopted hereunder shall not be subject to brand inspection except when sold at points provided for in RCW 16.57.380. The director shall charge a fee for the certificates or other means of identification authorized pursuant to this section and no identification shall be issued until the director has received the fee. The schedule of fees shall be established in accordance with the provisions of chapter 34.05 RCW.

     NEW SECTION. Sec. 10. A new section is added to chapter 16.57 RCW to read as follows:

     (1) The director shall establish a livestock identification advisory board. The board shall be composed of six members appointed by the director. One member shall represent each of the following groups: Beef producers, public livestock market operators, horse owners, dairy farmers, cattle feeders, and meat processors. In making appointments, the director shall solicit nominations from organizations representing these groups state-wide.

     (2) The purpose of the board is to provide advice to the director regarding livestock identification programs administered under this chapter and regarding brand inspection fees and related licensing fees. The director shall consult the board before adopting, amending, or repealing a rule under this chapter or altering a fee under RCW 16.58.050, 16.58.130, 16.65.030, or 16.65.090. If the director publishes in the state register a proposed rule to be adopted under the authority of this chapter or a proposed rule setting a fee under RCW 16.58.050, 16.58.130, 16.65.030, or 16.65.090 and the rule has not received the approval of the advisory board, the director shall file with the board a written statement setting forth the director's reasons for proposing the rule without the board's approval.

     (3) The members of the advisory board serve three-year terms. However, the director shall by rule provide shorter initial terms for some of the members of the board to stagger the expiration of the initial terms. The members serve without compensation. The director may authorize the expenses of a member to be reimbursed if the member is selected to attend a regional or national conference or meeting regarding livestock identification. Any such reimbursement shall be in accordance with RCW 43.03.050 and 43.03.060.

     Sec. 11. RCW 16.57.410 and 1989 c 286 s 25 are each amended to read as follows:

     (1) No person may act as a registering agency without a permit issued by the department. The director may issue a permit to any person or organization to act as a registering agency for the purpose of issuing permanent identification symbols for horses in a manner prescribed by the director. Application for such permit, or the renewal thereof by January 1 of each year, shall be on a form prescribed by the director, and accompanied by the proof of registration to be issued, any other documents required by the director, and a fee of one hundred dollars.

     (2) Each registering agency shall maintain a permanent record for each individual identification symbol. The record shall include, but need not be limited to, the name, address, and phone number of the horse owner and a general description of the horse. A copy of each permanent record shall be forwarded to the director, if requested by the director.

     (3) Individual identification symbols shall be inspected as required for brands under RCW 16.57.220 and 16.57.380 ((and 16.57.390)). Any horse presented for inspection and bearing such a symbol, but not accompanied by proof of registration and certificate of permit, shall be sold as provided under RCW 16.57.290 through 16.57.330.

     (4) The director shall adopt such rules as are necessary for the effective administration of this section pursuant to chapter 34.05 RCW.

     NEW SECTION. Sec. 12. RCW 16.57.390 and 1974 ex.s. c 38 s 2 are each repealed.", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Rasmussen, the Senate concurred in the House amendment to Substitute Senate Bill No. 5443.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5443, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5443, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 3; Absent, 0; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 44.

     Voting nay: Senators Cantu, Deccio and McDonald - 3.

     Excused: Senators Roach and Sellar - 2.

     SUBSTITUTE SENATE BILL NO. 5443, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


     On motion of Senator Jesernig, the Senate advanced to the sixth order of business.


STATEMENT FOR THE JOURNAL


     Pursuant to Senate Rule 34, the undersigned submit the following statement protesting passage of Substitute House Bill No. 1988 for entry in the Journal:


     "We protest the extraordinary action of the Senate in diverting funds placed in trust by Washington employers. However, our votes against Substitute House Bill No. 1988, which diverts such funds, must not be construed as opposition to workforce training for dislocated workers.

     Diversion of unemployment insurance trust funds would not be necessary if the majority party had not reduced community college funding in the first place. To rob the fund that supports unemployed workers and their families while unemployment is increasing sets a dangerous precedent and shows a lack of foresight.

     In recent years, we have provided aid to timber-dependent communities and made dramatic investments in higher education (since 1988, we have helped provide an average or $22 million per year, allowing over 5,500 new students to attend community colleges).

     Through the debate and final vote on Substitute House Bill No. 1988, we fought to protect a fund that is the only financial support available to most unemployed workers in our state. We could not support this measure knowing it may reduce future benefits for unemployed workers or increase future payroll taxes for employers.

     To workforce training, we say 'yes.' To stealing money from community colleges, then offering it back by robbing from employers and the unemployed, we say 'no.'"

SENATOR ANN ANDERSON, 42nd District,

SENATOR GARY A. NELSON, 21st District,

SENATOR HAROLD HOCHSTATTER, 13th District,

SENATOR IRV NEWHOUSE, 15th District,

SENATOR NEIL AMONDSON, 20th District,

SENATOR BOB OKE, 26th District,

SENATOR GEORGE SELLAR, 12th District,

SENATOR BOB McCASLIN, 4th District,

SENATOR ALEX DECCIO, 14th District,

SENATOR EMILIO CANTU, 41st District,

SENATOR LINDA A. SMITH, 18th District,

SENATOR DAN McDONALD, 48th District,

SENATOR SCOTT BARR, 7th District,

SENATOR EUGENE PRINCE, 9th District,

SENATOR JAMES WEST, 6th District.



STATEMENT FOR THE JOURNAL


                        I submit the following statement in protest to passage of Substitute House Bill No. 1988.


     "Workforce training benefits workers and employers alike. I have been a strong supporter of workforce training programs. As a community college graduate and advocate, I was troubled when the general fund budgets were offered which cut deeply into community college funding. I voted no on these budgets.

     Substitute House Bill No. 1988 seeks to fund these good programs with a bad funding source: the unemployment insurance trust fund.

     It is a trust fund because the workers trust the money will be there when they need it for unemployment compensation. Businesses trust that these monies will not be squandered on the general needs of government.

     Today, we steal from the fund for workforce training. What additional worthy causes will this fund be asked to bear tomorrow? Drug rehabilitation? Day care? These are general fund expenditures. Workforce training should continue to be a general fund investment.

     Amendments I supported to use general fund money for workforce training were offered, but turned down.

     On final passage, the Senate had the choice of stealing from laid-off workers to support community colleges. It's a choice we should never have been asked to make and one which I reject."

SENATOR TIM ERWIN, 44th District


SECOND READING


     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1988, by House Committee on Trade, Economic Development & Housing (originally sponsored by Representatives Sheldon, Forner, Wineberry, Wood, Shin, Jones, Peery, Roland, Flemming, Quall, Springer, Conway, Morris, Valle, Dorn, Campbell, Linville, Karahalios, Eide, J. Kohl, H. Myers, Kessler, Holm, Wang, Wolfe, Anderson, Appelwick, Orr, Ogden, G. Cole, Scott, Lemmon, Leonard, Locke, R. Fisher, L. Johnson, Rayburn, Pruitt and Patterson)

 

Providing for employment and training services.


     The bill was read the second time.


MOTION


     On motion of Senator Rinehart, the following Committee on Trade, Technology, and Economic Development amendment was not adopted:

     Strike everything after the enacting clause and insert the following:

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

      (1) The economy of the state depends on a well-trained work force and a strong employment and unemployment system. A well-trained work force generates the productivity employers need in order to compete in the global economy and to pay workers good wages. A strong employment and unemployment system ameliorates the negative impacts of unemployment and matches the needs of employers with individuals seeking employment.

      (2) The legislature further finds that too many Washington workers are unemployed, many of whom need new or enhanced work force skills in order to meet current demand in the labor market. With the increasing pace of economic change, employees must become life-long learners who periodically obtain additional education and training. The state should provide unemployed workers a variety of effective services, including timely payment of unemployment benefits, job and career counseling, job referral services, and training.

      (3) At the same time, too many employers report problems finding workers with the right skills. The state should provide employers with an effective training system and an efficient method for locating well-qualified workers.

      Therefore, the legislature finds it necessary and in the public interest to create an employment and training trust fund in order to provide state funding for employment and training services.

      NEW SECTION. Sec. 2. A new section is added to chapter 50.24 RCW to read as follows:

      Employment and training trust fund contributions to the employment and training trust fund shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, those employers who are required to make payments in lieu of contributions, and those qualified employers assigned rate class 20 under RCW 50.29.025 at the rate of twelve one-hundredths of one percent for rate years 1994, 1995, 1996, and 1997. The amount of wages subject to tax shall be determined under RCW 50.24.010.

      NEW SECTION. Sec. 3. A new section is added to chapter 50.16 RCW to read as follows:

      There is hereby established the employment and training trust fund. All moneys in this fund are irrevocably vested for the administration of this title. The employment and training trust fund shall consist of all moneys from employment and training trust fund contributions as established in section 2 of this act. The treasurer of the employment security department shall deposit, administer, and disburse all moneys in the fund under rules adopted by the commissioner and RCW 43.01.050 and 43.84.092 are not applicable to this fund. The treasurer of the employment security department shall be the treasurer of the employment and training trust fund as described in RCW 50.16.020 and shall give a bond conditioned upon the faithful performance of his or her duties in connection with the fund. All sums recovered on the official bond for losses sustained by the employment and training trust fund must be deposited in the fund. Notwithstanding any provision of this section, all moneys received and deposited in the fund under chapter . . ., Laws of 1993 (this act), remain part of the employment and training trust fund and may be used solely for the following purposes:

      (1) Providing training and related support services, including financial aid, to individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months;

      (2) Assisting workers in finding employment through job referral, job development, counseling, and referral to training resources;

      (3) Obtaining labor market information necessary for the administration of the unemployment insurance program and to assist unemployed workers in finding employment;

      (4) Performing research by an independent state auditing agency or an independent contractor to determine effectiveness of unemployment insurance programs and to determine whether program changes would benefit workers and employers;

      (5) Collecting contributions for and administration of the employment and training trust fund;

      (6) Improving service through improved use of information technology; and

      (7) Establishing collocation employment security and job service outstations at seven community and technical college campuses across the state.

      NEW SECTION. Sec. 4. A new section is added to chapter 50.16 RCW to read as follows:

      An individual may be eligible for applicable employment security benefits while participating in work force training. Eligibility is at the discretion of the commissioner of employment security after submitting a commissioner-approved training waiver and developing a detailed individualized training plan.

      Benefits paid under this section may not be charged to the experience rating accounts of individual employers.

      The commissioner shall adopt rules as necessary to implement this section.

      NEW SECTION. Sec. 5. Aerospace workers unemployed as the result of downsizing and restructuring of the aerospace industry will be deemed to be dislocated workers for the purpose of commissioner approval of training under RCW 50.20.043.

      NEW SECTION. Sec. 6. (1) The treasurer of the employment security department shall disburse the amounts appropriated by section 15, chapter . . ., Laws of 1993 (section 15 of this act) to the state board for community and technical colleges. These funds shall be allotted for, and only for, training programs and related support services, including financial aid, in the community and technical college system that:

      (a) Are consistent with work force training priorities and based upon the comprehensive plan for work force training developed by the work force training and education coordinating board. The state board for community and technical colleges shall develop a plan for use and evaluation of these funds which is to be approved by the work force training and education coordinating board for consistency with their work force priorities. Further, the state board for community and technical colleges shall report to the work force training and education coordinating board and the legislature annually on the progress and results of the training and support services provided to eligible participants;

      (b) Provide increased enrollments for individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months, with first priority given to individuals who are unlikely to return to employment in the individuals' principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry; and

      (c) Provide increased enrollments and support services, including financial aid, that do not replace or supplant any existing enrollments, programs, support services, or funding sources. For fiscal year 1994, the state board for community and technical colleges may borrow from the general fund to initiate the programs authorized under this act. However, the board shall repay the borrowed amount by the end of the fiscal biennium from funds appropriated to it from the employment and training trust fund.

      (2) For purposes of chapter . . ., Laws of 1993 (this act), training provided by the community and technical colleges shall only consist of basic skills and literacy, occupational skills, vocational education, and related or supplemental instruction for apprentices who are enrolled in a registered, state-approved apprenticeship program. Community and technical colleges may contract with skill centers to provide training authorized in this section. Upon the request of an eligible recipient, a community and technical college may contract with a private technical school for specialized vocational training. Available tuition for the training is limited to the amount that would otherwise be obtained per enrolled quarter to a public institution. Furthermore, the funding is only available to students who seek training in a course of study not available at a public institution within an eligible recipient's congressional district.

      Sec. 7. RCW 50.16.010 and 1991 sp.s. c 13 s 59 are each amended to read as follows:

      There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, an employment and training trust fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 and 43.84.092 shall not be applicable.

      (1) The unemployment compensation fund shall consist of

      (((1))) (a) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

      (((2))) (b) any property or securities acquired through the use of moneys belonging to the fund,

      (((3))) (c) all earnings of such property or securities,

      (((4))) (d) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

      (((5))) (e) all money recovered on official bonds for losses sustained by the fund,

      (((6))) (f) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

      (((7))) (g) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

      (((8))) (h) all moneys received for the fund from any other source.

      All moneys in the unemployment compensation fund shall be commingled and undivided.

      (2)(a) The administrative contingency fund shall consist of:

      (i) All interest on delinquent contributions collected pursuant to this title((,));

      (ii) All fines and penalties collected pursuant to the provisions of this title((,));

      (iii) All sums recovered on official bonds for losses sustained by the fund((,)); and

      (iv) Revenue received under RCW 50.24.014:

      PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

      (b) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

      (((a))) (i) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

      (((b))) (ii) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

      Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW ((74.09.035, 74.09.510, 74.09.520, and 74.09.700)) 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

      (3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 2 of this act.

      Sec. 8. RCW 50.16.010 and 1993 c .... s 7 (section 7 of this act) are each amended to read as follows:

      There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, ((an employment and training trust fund,)) and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 ((and 43.84.092)) shall not be applicable.

      (((1))) The unemployment compensation fund shall consist of

      (((a))) (1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

      (((b))) (2) any property or securities acquired through the use of moneys belonging to the fund,

      (((c))) (3) all earnings of such property or securities,

      (((d))) (4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

      (((e))) (5) all money recovered on official bonds for losses sustained by the fund,

      (((f))) (6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

      (((g))) (7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

      (((h))) (8) all moneys received for the fund from any other source.

      All moneys in the unemployment compensation fund shall be commingled and undivided.

      (((2)(a))) The administrative contingency fund shall consist of((:

      (i))) all interest on delinquent contributions collected pursuant to this title((;

      (ii))), all fines and penalties collected pursuant to the provisions of this title((;

      (iii))), all sums recovered on official bonds for losses sustained by the fund((;)), and

      (((iv))) revenue received under RCW 50.24.014:

      PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

      (((b))) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

      (((i))) (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

      (((ii))) (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

      Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

      (((3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 2 of this act.))

      Sec. 9. RCW 50.16.020 and 1983 1st ex.s. c 23 s 10 are each amended to read as follows:

      The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the employment and training trust fund, and ((of)) the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. ((He)) The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

      (1) a clearing account,

      (2) an unemployment trust fund account, and

      (3) a benefit account.

      All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

      After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

      The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

      Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

      The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

      Sec. 10. RCW 50.16.020 and 1993 c .... s 9 (section 9 of this act) are each amended to read as follows:

      The commissioner shall designate a treasurer and custodian of the unemployment compensation fund((, the employment and training trust fund,)) and of the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

      (1) a clearing account,

      (2) an unemployment trust fund account, and

      (3) a benefit account.

      All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

      After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

      The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

      Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

      The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

      Sec. 11. RCW 50.29.025 and 1990 c 245 s 7 are each amended to read as follows:

      The contribution rate for each employer shall be determined under this section.

      (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

      (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                  Interval of the

                 Fund Balance Ratio                                              Effective

              Expressed as a Percentage                                      Tax Schedule


                              3.40 and above                                       A

                              2.90 to 3.39                                             B

                              2.40 to 2.89                                             C

                              1.90 to 2.39                                             D

                              1.40 to 1.89                                             E

                              Less than 1.40                                         F


      (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

      (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

      (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                             Schedule((s)) of Contribution((s)) Rates

       Taxable Payrolls                             for Effective Tax Schedule

                                              Rate

From     To                           Class        A B C D E F


 0.00 5.00                            1            0.48 0.58 0.98 1.48 1.88 2.48

 5.01 10.00                           2            0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00                         3            0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00                         4            0.78 1.18 1.58 1.98 2.48 3.08

20.01 25.00                         5            0.98 1.38 1.78 2.18 2.68 3.18

25.01 30.00                         6            1.18 1.58 1.98 2.38 2.78 3.28

30.01 35.00                         7            1.38 1.78 2.18 2.58 2.98 3.380

35.01 40.00                         8            1.58 1.98 2.38 2.78 3.18 3.58

40.01 45.00                         9            1.78 2.18 2.58 2.98 3.38 3.78

45.01 50.00                         10           1.98 2.38 2.78 3.18 3.58 3.98

50.01 55.00                         11           2.28 2.58 2.98 3.38 3.78 4.08

55.01 60.00                         12           2.48 2.78 3.18 3.58 3.98 4.28

60.01 65.00                         13           2.68 2.98 3.38 3.78 4.18 4.48

65.01 70.00                         14           2.88 3.18 3.58 3.98 4.38 4.68

70.01 75.00                         15           3.08 3.38 3.78 4.18 4.58 4.78

75.01 80.00                         16           3.28 3.58 3.98 4.38 4.68 4.88

80.01 85.00                         17           3.48 3.78 4.18 4.58 4.88 4.98

85.01 90.00                         18           3.88 4.18 4.58 4.88 4.98 5.18

90.01 95.00                         19           4.28 4.58 4.98 5.08 5.18 5.38

95.01 100.00                        20           5.40 5.40 5.40 5.40 5.40 5.40))


 0.00 5.00                            1            0.36 0.46 0.86 1.36 1.76 2.36

 5.01 10.00                           2            0.36 0.66 1.06 1.56 1.96 2.56

10.01 15.00                         3            0.46 0.86 1.26 1.66 2.16 2.76

15.01 20.00                         4            0.66 1.06 1.46 1.86 2.36 2.96

20.01 25.00                         5            0.86 1.26 1.66 2.06 2.56 3.06

25.01 30.00                         6            1.06 1.46 1.86 2.26 2.66 3.16

30.01 35.00                         7            1.26 1.66 2.06 2.46 2.86 3.26

35.01 40.00                         8            1.46 1.86 2.26 2.66 3.06 3.46

40.01 45.00                         9            1.66 2.06 2.46 2.86 3.26 3.66

45.01 50.00                         10           1.86 2.26 2.66 3.06 3.46 3.86

50.01 55.00                         11           2.16 2.46 2.86 3.26 3.66 3.96

55.01 60.00                         12           2.36 2.66 3.06 3.46 3.86 4.16

60.01 65.00                         13           2.56 2.86 3.26 3.66 4.06 4.36

65.01 70.00                         14           2.76 3.06 3.46 3.86 4.26 4.56

70.01 75.00                         15           2.96 3.26 3.66 4.06 4.46 4.66

75.01 80.00                         16           3.16 3.46 3.86 4.26 4.56 4.76

80.01 85.00                         17           3.36 3.66 4.06 4.46 4.76 4.86

85.01 90.00                         18           3.76 4.06 4.46 4.76 4.86 5.06

90.01 95.00                         19           4.16 4.46 4.86 4.96 5.06 5.26

95.01 100.00                        20           5.40 5.40 5.40 5.40 5.40 5.40


      (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

      (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

      (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

      (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

      Sec. 12. RCW 50.29.025 and 1993 c .... s 11 (section 11 of this act) are each amended to read as follows:

      The contribution rate for each employer shall be determined under this section.

      (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

      (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                  Interval of the

                 Fund Balance Ratio                                                              Effective

              Expressed as a Percentage                                                      Tax Schedule


                              3.40 and above                                                       A

                              2.90 to 3.39                                                             B

                              2.40 to 2.89                                                             C

                              1.90 to 2.39                                                             D

                              1.40 to 1.89                                                             E

                              Less than 1.40                                                         F


      An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

      (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

      (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                                             Schedules of Contributions Rates

       Taxable Payrolls                                             for Effective Tax Schedule

                                                              Rate 

              From       To                           Class        A B C D E F


         ((0.00         5.00                            1          0.36 0.46 0.86 1.36 1.78 2.36

            5.01       10.00                            2         0.36 0.66 1.06 1.56 1.96 2.56

          10.01       15.00                            3          0.46 0.86 1.26 1.66 2.16     2.76

          15.01       20.00                            4          0.66 1.06 1.46 1.86 2.36 2.96

          20.01       25.00                            5          0.86 1.26 1.66 2.06 2.56     3.06

          25.01       30.00                            6          1.06 1.46 1.86 2.26 2.66 3.16

          30.01       35.00                            7          1.26 1.66 2.06 2.46 2.86 3.26

          35.01       40.00                            8          1.46 1.86 2.26 2.66 3.06 3.46

          40.01       45.00                            9          1.66 2.06 2.46 2.86 3.26 3.66

          45.01       50.00                            10         1.86 2.26 2.66 3.06 3.46 3.86

          50.01       55.00                            11         2.16 2.46 2.86 3.26 3.66 3.96

          55.01       60.00                            12         2.36 2.66 3.06 3.46 3.86 4.16

          60.01       65.00                            13         2.56 2.86 3.26 3.66 4.06 4.36

          65.01       70.00                            14         2.76 3.06 3.46 3.86 4.26 4.56

          70.01       75.00                            15         2.96 3.26 3.66 4.06 4.46 4.66

          75.01       80.00                            16         3.16 3.46 3.86 4.26 4.56 4.76

          80.01       85.00                            17         3.36 3.66 4.06 4.46 4.76 4.86

          85.01       90.00                            18         3.76 4.06 4.46 4.76 4.86 5.06

          90.01       95.00                            19         4.16 4.46 4.86 4.96 5.06 5.26

          95.01     100.00                            20         5.40 5.40 5.40 5.40 5.40 5.40))


               0.00 5.00                              1            0.48 0.58 0.98 1.48 1.88 2.48

               5.01 10.00                             2            0.48 0.78 1.18 1.68 2.08 2.68

              10.01 15.00                           3            0.58 0.98 1.38 1.78 2.28 2.88

              15.01 20.00                           4            0.78 1.18 1.58 1.98 2.48 3.08

              20.01 25.00                           5            0.98 1.38 1.78 2.18 2.68 3.18

              25.01 30.00                           6            1.18 1.58 1.98 2.38 2.78 3.28

              30.01 35.00                           7            1.38 1.78 2.18 2.58 2.98 3.38

              35.01 40.00                           8            1.58 1.98 2.38 2.78 3.18 3.58

              40.01 45.00                           9            1.78 2.18 2.58 2.98 3.38 3.78

              45.01 50.00                           10           1.98 2.38 2.78 3.18 3.58 3.98

              50.01 55.00                           11           2.28 2.58 2.98 3.38 3.78 4.08

              55.01 60.00                           12           2.48 2.78 3.18 3.58 3.98 4.28

              60.01 65.00                           13           2.68 2.98 3.38 3.78 4.18 4.48

              65.01 70.00                           14           2.88 3.18 3.58 3.98 4.38 4.68

              70.01 75.00                           15           3.08 3.38 3.78 4.18 4.58 4.78

              75.01 80.00                           16           3.28 3.58 3.98 4.38 4.68 4.88

              80.01 85.00                           17           3.48 3.78 4.18 4.58 4.88 4.98

              85.01 90.00                           18           3.88 4.18 4.58 4.88 4.98 5.18

              90.01 95.00                           19           4.28 4.58 4.98 5.08 5.18 5.38

              95.01 100.00                          20           5.40 5.40 5.40 5.40 5.40 5.40

      (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

      (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

      (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

      (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

      NEW SECTION. Sec. 13. A new section is added to chapter 50.29 RCW to read as follows:

      For the purpose of simplification of employer reports, the "combined contribution rate" shall be used in the calculation of employer taxes. The combined contribution rate shall include the regular contribution rate as determined under RCW 50.29.025, employment and training trust fund contributions as determined under section 2 of this act, and special contributions required under RCW 50.24.014. A mention of the "combined contribution rate" may not be made on a tax form or publication unless the form or publication specifically identifies the specific contributions. The combined contribution rate may not be quoted on a form unless the specific component rates are also quoted. The sole purpose of the combined contribution rate is to allow an employer to perform a single calculation on a tax return rather than four separate calculations.

      NEW SECTION. Sec. 14. Prior to any increase in the employer tax schedule as provided in section 11 of this act, the commissioner shall provide a report to the appropriate committees of the legislature specifying to what extent the work force training expenditures in chapter . . ., Laws of 1993 (this act) elevated employer contribution rates for the effective tax schedule.

      NEW SECTION. Sec. 15. The sum of twenty-nine million three hundred thirty thousand dollars, or as much thereof as may be necessary, is appropriated from the employment and training trust fund to the state board for community and technical colleges for the biennium ending June 30, 1995, to carry out training and related support services under this act. Of the amount appropriated by this section, twenty-six million four hundred thousand dollars shall provide for training enrollments, two million dollars may provide for child care for dependents of individuals being trained under this section, and nine hundred thousand dollars shall provide for transportation costs to individuals being trained under this section.

      NEW SECTION. Sec. 16. The sum of fourteen million six hundred seventy thousand dollars, or as much thereof as may be necessary, is appropriated from the employment and training trust fund to the employment security department for the biennium ending June 30, 1995, to carry out the purposes of section 3 of this act.

      NEW SECTION. Sec. 17. To the extent that available funding from the employment and training trust fund is in excess of or is not sufficient to provide the appropriations in sections 15 and 16, chapter . . ., Laws of 1993 (sections 15 and 16 of this act), the available funds shall be appropriated to the state board for community and technical colleges and the employment security department in the same ratio as funds are appropriated in sections 15 and 16, chapter . . ., Laws of 1993 (sections 15 and 16 of this act).

      NEW SECTION. Sec. 18. (1) The employment security department shall report to the appropriate committees of the legislature by December 1, 1994, and every year thereafter, on the status of the programs provided in this act and the resulting outcomes. The department shall include in its report quantitative and demographic information on the increase in job orders, placement referrals, individualized training plans, skill assessments, and other interventions achieved. The department also shall include in its report the number of repeat clients as a percentage of all clients served by programs provided in chapter . . ., Laws of 1933 (this act).

      (2) The state board for community and technical colleges shall report to the appropriate standing committees of the legislature by December 1, 1994, and every year thereafter, the number of certified student full-time equivalents receiving training as provided in this act. In addition, the report must include information on the outcomes of the provided training. The report also must include indices of placement rates, student demographics, training plan completion rates, and comparisons of preprogram and postprogram wage levels.

      (3) Each community and technical college shall confer and consult with its respective labor-management advisory board concerning the college's efforts to provide the training and services rendered in chapter ..., Laws of 1993 (this act) and meet the completion and placement goals of the work force training and education coordinating board.

      NEW SECTION. Sec. 19. A new section is added to chapter 43.131 RCW to read as follows:

      The work force employment and training program created in chapter . . ., Laws of 1993 (this act) shall expire June 30, 1998.

      NEW SECTION. Sec. 20. A new section is added to chapter 43.131 RCW to read as follows:

      The following acts or parts of acts are each repealed, effective June 30, 1999:

      (1) Section 1 of this act;

      (2) Section 2 of this act;

      (3) Section 3 of this act;

      (4) Section 4 of this act;

      (5) Section 6 of this act;

      (6) Section 13 of this act; and

      (7) Section 18 of this act.

      NEW SECTION. Sec. 21. (1) Sections 8 and 10 of this act shall take effect June 30, 1999;

      (2) Section 12 of this act shall take effect January 1, 1998.

      NEW SECTION. Sec. 22. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

      NEW SECTION. Sec. 23. 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. 24. This act applies to tax rate years beginning with tax rate year 1994."



MOTION


     On motion of Senator Rinehart, the following Committee on Ways and Means amendment to the Committee on Trade, Technology and Economic Development amendment was not adopted:

     On page 1, after line 6 of the amendment, strike everything through "1994." on page 20, line 16 and insert the following:

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

      (1) The economy of the state depends on a well-trained work force and a strong employment and unemployment system. A well-trained work force generates the productivity employers need in order to compete in the global economy and to pay workers good wages. A strong employment and unemployment system ameliorates the negative impacts of unemployment and matches the needs of employers with individuals seeking employment.

      (2) The legislature further finds that too many Washington workers are unemployed, many of whom need new or enhanced work force skills in order to meet current demand in the labor market. With the increasing pace of economic change, employees must become life-long learners who periodically obtain additional education and training. The state should provide unemployed workers a variety of effective services, including timely payment of unemployment benefits, job and career counseling, job referral services, and training.

      (3) At the same time, too many employers report problems finding workers with the right skills. The state should provide employers with an effective training system and an efficient method for locating well-qualified workers.

      Therefore, the legislature finds it necessary and in the public interest to create an employment and training trust fund in order to provide state funding for employment and training services.

      NEW SECTION. Sec. 2. A new section is added to chapter 50.24 RCW to read as follows:

      Employment and training trust fund contributions to the employment and training trust fund shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, those employers who are required to make payments in lieu of contributions, and those qualified employers assigned rate class 20 under RCW 50.29.025 at the rate of twelve one-hundredths of one percent for rate years 1994, 1995, 1996, and 1997. The amount of wages subject to tax shall be determined under RCW 50.24.010.

      NEW SECTION. Sec. 3. A new section is added to chapter 50.16 RCW to read as follows:

      There is hereby established the employment and training trust fund. All moneys in this fund are irrevocably vested for the administration of this title. The employment and training trust fund shall consist of all moneys from employment and training trust fund contributions as established in section 2 of this act. The treasurer of the employment security department shall deposit, administer, and disburse all moneys in the fund under rules adopted by the commissioner and RCW 43.01.050 and 43.84.092 are not applicable to this fund. The treasurer of the employment security department shall be the treasurer of the employment and training trust fund as described in RCW 50.16.020 and shall give a bond conditioned upon the faithful performance of his or her duties in connection with the fund. All sums recovered on the official bond for losses sustained by the employment and training trust fund must be deposited in the fund. Notwithstanding any provision of this section, all moneys received and deposited in the fund under chapter . . ., Laws of 1993 (this act), remain part of the employment and training trust fund and may be used solely for the following purposes:

      (1) Providing training and related support services, including financial aid, to individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months;

      (2) Assisting workers in finding employment through job referral, job development, counseling, and referral to training resources;

      (3) Obtaining labor market information necessary for the administration of the unemployment insurance program and to assist unemployed workers in finding employment;

      (4) Performing research by an independent state auditing agency or an independent contractor to determine effectiveness of unemployment insurance programs and to determine whether program changes would benefit workers and employers;

      (5) Collecting contributions for and administration of the employment and training trust fund;

      (6) Improving service through improved use of information technology; and

      (7) Establishing collocation employment security and job service outstations at seven community and technical college campuses across the state.

      NEW SECTION. Sec. 4. A new section is added to chapter 50.16 RCW to read as follows:

      An individual may be eligible for applicable employment security benefits while participating in work force training. Eligibility is at the discretion of the commissioner of employment security after submitting a commissioner-approved training waiver and developing a detailed individualized training plan.

      Benefits paid under this section may not be charged to the experience rating accounts of individual employers.

      The commissioner shall adopt rules as necessary to implement this section.

      NEW SECTION. Sec. 5. Aerospace workers unemployed as the result of downsizing and restructuring of the aerospace industry will be deemed to be dislocated workers for the purpose of commissioner approval of training under RCW 50.20.043.

      NEW SECTION. Sec. 6. (1) The employment security department shall disburse the amounts appropriated by the legislature for the purposes of chapter . . ., Laws of 1993 (this act) to the state board for community and technical colleges. The community and technical college system may contract or otherwise work in partnership with other public and private providers of training services to serve the individuals eligible for training under chapter . . ., Laws of 1993 (this act). These funds shall be allotted for, and only for, training programs and related support services, including financial aid, in the community and technical college system that:

      (a) Are consistent with work force training priorities and based upon the comprehensive plan for work force training developed by the work force training and education coordinating board. The state board for community and technical colleges shall develop a plan for use and evaluation of these funds which is to be approved by the work force training and education coordinating board for consistency with their work force priorities. Further, the state board for community and technical colleges shall report to the work force training and education coordinating board and the legislature annually on the progress and results of the training and support services provided to eligible participants;

      (b) Provide increased enrollments for individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months, with first priority given to individuals who are unlikely to return to employment in the individuals' principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry; and

      (c) Provide increased enrollments and support services, including financial aid, that do not replace or supplant any existing enrollments, programs, support services, or funding sources. For fiscal year 1994, the state board for community and technical colleges may borrow from the general fund to initiate the programs authorized under this act. However, the board shall repay the borrowed amount by the end of the fiscal biennium from funds appropriated to it from the employment and training trust fund.

      (2) For purposes of chapter . . ., Laws of 1993 (this act), training provided by the community and technical colleges shall only consist of basic skills and literacy, occupational skills, vocational education, and related or supplemental instruction for apprentices who are enrolled in a registered, state-approved apprenticeship program. Community and technical colleges may contract with skill centers to provide training authorized in this section. Upon the request of an eligible recipient, a community and technical college may contract with a private technical school for specialized vocational training. Available tuition for the training is limited to the amount that would otherwise be obtained per enrolled quarter to a public institution. Furthermore, the funding is only available to students who seek training in a course of study not available at a public institution within an eligible recipient's congressional district.

      Sec. 7. RCW 50.16.010 and 1991 sp.s. c 13 s 59 are each amended to read as follows:

      There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, an employment and training trust fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 and 43.84.092 shall not be applicable.

      (1) The unemployment compensation fund shall consist of

      (((1))) (a) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

      (((2))) (b) any property or securities acquired through the use of moneys belonging to the fund,

      (((3))) (c) all earnings of such property or securities,

      (((4))) (d) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

      (((5))) (e) all money recovered on official bonds for losses sustained by the fund,

      (((6))) (f) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

      (((7))) (g) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

      (((8))) (h) all moneys received for the fund from any other source.

      All moneys in the unemployment compensation fund shall be commingled and undivided.

      (2)(a) The administrative contingency fund shall consist of:

      (i) All interest on delinquent contributions collected pursuant to this title((,));

      (ii) All fines and penalties collected pursuant to the provisions of this title((,));

      (iii) All sums recovered on official bonds for losses sustained by the fund((,)); and

      (iv) Revenue received under RCW 50.24.014:

      PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

      (b) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

      (((a))) (i) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

      (((b))) (ii) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

      Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW ((74.09.035, 74.09.510, 74.09.520, and 74.09.700)) 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

      (3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 2 of this act.

      Sec. 8. RCW 50.16.010 and 1993 c .... s 7 (section 7 of this act) are each amended to read as follows:

      There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, ((an employment and training trust fund,)) and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 ((and 43.84.092)) shall not be applicable.

      (((1))) The unemployment compensation fund shall consist of

      (((a))) (1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

      (((b))) (2) any property or securities acquired through the use of moneys belonging to the fund,

      (((c))) (3) all earnings of such property or securities,

      (((d))) (4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

      (((e))) (5) all money recovered on official bonds for losses sustained by the fund,

      (((f))) (6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

      (((g))) (7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

      (((h))) (8) all moneys received for the fund from any other source.

      All moneys in the unemployment compensation fund shall be commingled and undivided.

      (((2)(a))) The administrative contingency fund shall consist of((:

      (i))) all interest on delinquent contributions collected pursuant to this title((;

      (ii))), all fines and penalties collected pursuant to the provisions of this title((;

      (iii))), all sums recovered on official bonds for losses sustained by the fund((;)), and

      (((iv))) revenue received under RCW 50.24.014:

      PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

      (((b))) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

      (((i))) (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

      (((ii))) (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

      Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

      (((3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 2 of this act.))

      Sec. 9. RCW 50.16.020 and 1983 1st ex.s. c 23 s 10 are each amended to read as follows:

      The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the employment and training trust fund, and ((of)) the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. ((He)) The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

      (1) a clearing account,

      (2) an unemployment trust fund account, and

      (3) a benefit account.

      All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

      After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

      The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

      Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

      The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

      Sec. 10. RCW 50.16.020 and 1993 c .... s 9 (section 9 of this act) are each amended to read as follows:

      The commissioner shall designate a treasurer and custodian of the unemployment compensation fund((, the employment and training trust fund,)) and of the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

      (1) a clearing account,

      (2) an unemployment trust fund account, and

      (3) a benefit account.

      All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

      After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

      The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

      Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

      The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

      Sec. 11. RCW 50.29.025 and 1990 c 245 s 7 are each amended to read as follows:

      The contribution rate for each employer shall be determined under this section.

      (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

      (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                 Interval of the

                Fund Balance Ratio                               Effective

              Expressed as a Percentage                      Tax Schedule


              3.40 and above                                       A

              2.90 to 3.39                                             B

              2.40 to 2.89                                             C

              1.90 to 2.39                                             D

              1.40 to 1.89                                             E

              Less than 1.40                                         F


      (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

      (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

      (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                                             Schedule((s)) of Contribution((s)) Rates

       Taxable Payrolls                                             for Effective Tax Schedule

                                                              Rate

              From       To                           Class       A B C D E F


       (( 0.00              5.00                         1            0.48 0.58 0.98 1.48 1.88 2.48

               5.01         10.00                        2            0.48 0.78 1.18 1.68 2.08 2.68

              10.01       15.00                        3            0.58 0.98 1.38 1.78 2.28 2.88

              15.01       20.00                        4            0.78 1.18 1.58 1.98 2.48 3.08

              20.01       25.00                        5            0.98 1.38 1.78 2.18 2.68 3.18

              25.01       30.00                        6            1.18 1.58 1.98 2.38 2.78 3.28

              30.01       35.00                        7            1.38 1.78 2.18 2.58 2.98 3.38

              35.01       40.00                        8            1.58 1.98 2.38 2.78 3.18 3.58

              40.01       45.00                        9            1.78 2.18 2.58 2.98 3.38 3.78

              45.01       50.00                        10           1.98 2.38 2.78 3.18 3.58 3.98

              50.01       55.00                        11           2.28 2.58 2.98 3.38 3.78 4.08

              55.01       60.00                        12           2.48 2.78 3.18 3.58 3.98 4.28

              60.01       65.00                        13           2.68 2.98 3.38 3.78 4.18 4.48

              65.01       70.00                        14           2.88 3.18 3.58 3.98 4.38 4.68

              70.01       75.00                        15           3.08 3.38 3.78 4.18 4.58 4.78

              75.01       80.00                        16           3.28 3.58 3.98 4.38 4.68 4.88

              80.01       85.00                        17           3.48 3.78 4.18 4.58 4.88 4.98

              85.01       90.00                        18           3.88 4.18 4.58 4.88 4.98 5.18

              90.01       95.00                        19           4.28 4.58 4.98 5.08 5.18 5.38

              95.01       100.00                      20           5.40 5.40 5.40 5.40 5.40 5.40))


            0.00         5.00                            1           0.36 0.46 0.86 1.36 1.76 2.36

            5.01       10.00                            2           0.36 0.66 1.06 1.56 1.96 2.56

          10.01       15.00                            3           0.46 0.86 1.26 1.66 2.16 2.76

          15.01       20.00                            4           0.66 1.06 1.46 1.86 2.36 2.96

          20.01       25.00                            5           0.86 1.26 1.66 2.06 2.56 3.06

          25.01       30.00                            6           1.06 1.46 1.86 2.26 2.66 3.16

          30.01       35.00                            7           1.26 1.66 2.06 2.46 2.86 3.26

          35.01       40.00                            8           1.46 1.86 2.26 2.66 3.06 3.46

          40.01       45.00                            9           1.66 2.06 2.46 2.86 3.26 3.66

          45.01       50.00                           10          1.86 2.26 2.66 3.06 3.46 3.86

          50.01       55.00                           11          2.16 2.46 2.86 3.26 3.66 3.96

          55.01       60.00                           12          2.36 2.66 3.06 3.46 3.86 4.16

          60.01       65.00                           13          2.56 2.86 3.26 3.66 4.06 4.36

          65.01       70.00                           14          2.76 3.06 3.46 3.86 4.26 4.56

          70.01       75.00                           15          2.96 3.26 3.66 4.06 4.46 4.66

          75.01       80.00                           16          3.16 3.46 3.86 4.26 4.56 4.76

          80.01       85.00                           17          3.36 3.66 4.06 4.46 4.76 4.86

          85.01       90.00                           18          3.76 4.06 4.46 4.76 4.86 5.06

          90.01       95.00                           19          4.16 4.46 4.86 4.96 5.06 5.26

          95.01     100.00                           20          5.40 5.40 5.40 5.40 5.40 5.40


      (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

      (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

      (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

      (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

      Sec. 12. RCW 50.29.025 and 1993 c .... s 11 (section 11 of this act) are each amended to read as follows:

      The contribution rate for each employer shall be determined under this section.

      (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

      (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                  Interval of the

                 Fund Balance Ratio                                              Effective

              Expressed as a Percentage                                      Tax Schedule


              3.40 and above                                                       A

              2.90 to 3.39                                                             B

              2.40 to 2.89                                                             C

              1.90 to 2.39                                                             D

              1.40 to 1.89                                                             E

              Less than 1.40                                                         F


      (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

      (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

      (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                             Schedules of Contributions Rates

       Taxable Payrolls                             for Effective Tax Schedule

                                              Rate

              From       To           Class       A         B         C         D         E             F


         ((0.00         5.00         1              0.36         0.46         0.86         1.36         1.78         2.36

            5.01       10.00         2              0.36         0.66         1.06         1.56         1.96         2.56

          10.01       15.00         3              0.46         0.86         1.26         1.66         2.16         2.76

          15.01       20.00         4              0.66         1.06         1.46         1.86         2.36         2.96

          20.01       25.00         5              0.86         1.26         1.66         2.06         2.56         3.06

          25.01       30.00         6              1.06         1.46         1.86         2.26         2.66         3.16

          30.01       35.00         7              1.26         1.66         2.06         2.46         2.86         3.26

          35.01       40.00         8              1.46         1.86         2.26         2.66         3.06         3.46

          40.01       45.00         9              1.66         2.06         2.46         2.86         3.26         3.66

          45.01       50.00       10              1.86         2.26         2.66         3.06         3.46         3.86

          50.01       55.00       11              2.16         2.46         2.86         3.26         3.66         3.96

          55.01       60.00       12              2.36         2.66         3.06         3.46         3.86         4.16

          60.01       65.00       13              2.56         2.86         3.26         3.66         4.06         4.36

          65.01       70.00       14              2.76         3.06         3.46         3.86         4.26         4.56

          70.01       75.00       15              2.96         3.26         3.66         4.06         4.46         4.66

          75.01       80.00       16              3.16         3.46         3.86         4.26         4.56         4.76

          80.01       85.00       17              3.36         3.66         4.06         4.46         4.76         4.86

          85.01       90.00       18              3.76         4.06         4.46         4.76         4.86         5.06

          90.01       95.00       19              4.16         4.46         4.86         4.96         5.06         5.26

          95.01     100.00       20              5.40         5.40         5.40         5.40         5.40         5.40))


              0.00 5.00              1             0.48 0.58 0.98 1.48 1.88 2.48

              5.01 10.00             2             0.48 0.78 1.18 1.68 2.08 2.68

              10.01 15.00            3             0.58 0.98 1.38 1.78 2.28 2.88

              15.01 20.00            4             0.78 1.18 1.58 1.98 2.48 3.08

              20.01 25.00            5             0.98 1.38 1.78 2.18 2.68 3.18

              25.01 30.00            6             1.18 1.58 1.98 2.38 2.78 3.28

              30.01 35.00            7             1.38 1.78 2.18 2.58 2.98 3.38

              35.01 40.00            8             1.58 1.98 2.38 2.78 3.18 3.58

              40.01 45.00            9             1.78 2.18 2.58 2.98 3.38 3.78

              45.01 50.00           10            1.98 2.38 2.78 3.18 3.58 3.98

              50.01 55.00           11            2.28 2.58 2.98 3.38 3.78 4.08

              55.01 60.00           12            2.48 2.78 3.18 3.58 3.98 4.28

              60.01 65.00           13            2.68 2.98 3.38 3.78 4.18 4.48

              65.01 70.00           14            2.88 3.18 3.58 3.98 4.38 4.68

              70.01 75.00           15            3.08 3.38 3.78 4.18 4.58 4.78

              75.01 80.00           16            3.28 3.58 3.98 4.38 4.68 4.88

              80.01 85.00           17            3.48 3.78 4.18 4.58 4.88 4.98

              85.01 90.00           18            3.88 4.18 4.58 4.88 4.98 5.18

              90.01 95.00           19            4.28 4.58 4.98 5.08 5.18 5.38

              95.01 100.00          20            5.40 5.40 5.40 5.40 5.40 5.40

    (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

    (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

    (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

    (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

    NEW SECTION. Sec. 13. A new section is added to chapter 50.29 RCW to read as follows:

    For the purpose of simplification of employer reports, the "combined contribution rate" shall be used in the calculation of employer taxes. The combined contribution rate shall include the regular contribution rate as determined under RCW 50.29.025, employment and training trust fund contributions as determined under section 2 of this act, and special contributions required under RCW 50.24.014. A mention of the "combined contribution rate" may not be made on a tax form or publication unless the form or publication specifically identifies the specific contributions. The combined contribution rate may not be quoted on a form unless the specific component rates are also quoted. The sole purpose of the combined contribution rate is to allow an employer to perform a single calculation on a tax return rather than four separate calculations.

    NEW SECTION. Sec. 14. Prior to any increase in the employer tax schedule as provided in section 11 of this act, the commissioner shall provide a report to the appropriate committees of the legislature specifying to what extent the work force training expenditures in chapter . . ., Laws of 1993 (this act) elevated employer contribution rates for the effective tax schedule.

    NEW SECTION. Sec. 15. (1) The employment security department shall report to the appropriate committees of the legislature by December 1, 1994, and every year thereafter, on the status of the programs provided in this act and the resulting outcomes. The department shall include in its report quantitative and demographic information on the increase in job orders, placement referrals, individualized training plans, skill assessments, and other interventions achieved. The department also shall include in its report the number of repeat clients as a percentage of all clients served by programs provided in chapter . . ., Laws of 1993 (this act).

    (2) The state board for community and technical colleges shall report to the appropriate standing committees of the legislature by December 1, 1994, and every year thereafter, the number of certified student full-time equivalents receiving training as provided in this act. In addition, the report must include information on the outcomes of the provided training. The report also must include indices of placement rates, student demographics, training plan completion rates, and comparisons of preprogram and postprogram wage levels.

    (3) Each community and technical college shall confer and consult with its respective labor-management advisory board concerning the college's efforts to provide the training and services rendered in chapter ..., Laws of 1993 (this act) and meet the completion and placement goals of the work force training and education coordinating board.

    NEW SECTION. Sec. 16. A new section is added to chapter 43.131 RCW to read as follows:

    The work force employment and training program created in chapter . . ., Laws of 1993 (this act) shall expire June 30, 1998.

    NEW SECTION. Sec. 17. A new section is added to chapter 43.131 RCW to read as follows:

    The following acts or parts of acts are each repealed, effective June 30, 1999:

    (1) Section 1 of this act;

    (2) Section 2 of this act;

    (3) Section 3 of this act;

    (4) Section 4 of this act;

    (5) Section 6 of this act;

    (6) Section 13 of this act; and

    (7) Section 15 of this act.

    NEW SECTION. Sec. 18. (1) Sections 8 and 10 of this act shall take effect June 30, 1999;

    (2) Section 12 of this act shall take effect January 1, 1998.

    NEW SECTION. Sec. 19. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

    NEW SECTION. Sec. 20. 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. 21. This act applies to tax rate years beginning with tax rate year 1994."


MOTION


    Senator Rinehart moved that the following amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 1, after line 7, strike everything through "1994." on page 21, line 4 and insert the following:

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

    (1) The economy of the state depends on a well-trained work force and a strong employment and unemployment system. A well-trained work force generates the productivity employers need in order to compete in the global economy and to pay workers good wages. A strong employment and unemployment system ameliorates the negative impacts of unemployment and matches the needs of employers with individuals seeking employment.

    (2) The legislature further finds that too many Washington workers are unemployed, many of whom need new or enhanced work force skills in order to meet current demand in the labor market. With the increasing pace of economic change, employees must become life-long learners who periodically obtain additional education and training. The state should provide unemployed workers a variety of effective services, including timely payment of unemployment benefits, job and career counseling, job referral services, and training.

    (3) At the same time, too many employers report problems finding workers with the right skills. The state should provide employers with an effective training system and an efficient method for locating well-qualified workers.

    Therefore, the legislature finds it necessary and in the public interest to create an employment and training trust fund in order to provide state funding for employment and training services.

    NEW SECTION. Sec. 2. It is the purpose of this act to reduce the amount paid by employers in the state to the unemployment compensation fund by twelve one-hundredths of one percent of taxable wages.

    It is also the purpose of this act to establish a separate fund for training and employment services for dislocated workers. This fund shall consist of contributions of twelve one-hundredths of one percent of taxable wages.

    It is the intent of the legislature that this act not result in any net increase in employer tax rates.

    It is the further intent of the legislature that the employment security department and the state board for community and technical colleges shall work cooperatively to ensure expeditious training and placement of dislocated workers.

    NEW SECTION. Sec. 3. A new section is added to chapter 50.24 RCW to read as follows:

    Employment and training trust fund contributions to the employment and training trust fund shall accrue and become payable by each employer consistent with the tax schedule in RCW 50.29.025 as now existing or hereafter amended, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, those employers who are required to make payments in lieu of contributions, and those qualified employers assigned rate class 20 under RCW 50.29.025 at the rate of twelve one-hundredths of one percent for rate years 1994, 1995, 1996, and 1997. The amount of wages subject to tax shall be determined under RCW 50.24.010.

    NEW SECTION. Sec. 4. A new section is added to chapter 50.16 RCW to read as follows:

    There is hereby established the employment and training trust fund. All moneys in this fund are irrevocably vested for the administration of this title. The employment and training trust fund shall consist of all moneys from employment and training trust fund contributions as established in section 3 of this act. The treasurer of the employment security department shall deposit, administer, and disburse all moneys in the fund under rules adopted by the commissioner and RCW 43.01.050 and 43.84.092 are not applicable to this fund. The treasurer of the employment security department shall be the treasurer of the employment and training trust fund as described in RCW 50.16.020 and shall give a bond conditioned upon the faithful performance of his or her duties in connection with the fund. All sums recovered on the official bond for losses sustained by the employment and training trust fund must be deposited in the fund. Notwithstanding any provision of this section, all moneys received and deposited in the fund under chapter . . ., Laws of 1993 (this act), remain part of the employment and training trust fund and may be used solely for the following purposes:

    (1) Providing training and related support services, including financial aid, to individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months;

    (2) Assisting workers in finding employment through job referral, job development, counseling, and referral to training resources;

    (3) Obtaining labor market information necessary for the administration of the unemployment insurance program and to assist unemployed workers in finding employment. In obtaining the information the employment security department shall ensure the inclusion of information gathered from small businesses as defined in RCW 43.31.025, with particular emphasis on businesses with fifteen or fewer employees;

    (4) Performing research by an independent state auditing agency or an independent contractor to determine effectiveness of unemployment insurance programs and to determine whether program changes would benefit workers and employers;

    (5) Collecting contributions for and administration of the employment and training trust fund;

    (6) Improving service through improved use of information technology; and

    (7) Establishing collocation employment security and job service outstations at community and technical college campuses across the state. These outstations shall provide a one-stop point of access for unemployed and dislocated workers seeking job placement services, training program information, and labor market information. In communities without co-located outstations the local job service center and community or technical college shall collaborate to provide these services.

    NEW SECTION. Sec. 5. For calculations occurring on or after June 30, 1994, and in accordance with RCW 50.29.025, if the commissioner determines that the employment and training trust fund contributions for the most recent rate year have increased employer unemployment compensation contribution rates, the revenues received by the department from the employment and training contribution for calendar quarters beginning the following July 1st shall not be deposited in the employment and training trust fund but shall be deposited in the unemployment compensation fund.

    NEW SECTION. Sec. 6. A new section is added to chapter 50.16 RCW to read as follows:

    An individual may be eligible for applicable employment security benefits while participating in work force training. Eligibility is at the discretion of the commissioner of employment security after submitting a commissioner-approved training waiver and developing a detailed individualized training plan.

    Benefits paid under this section may not be charged to the experience rating accounts of individual employers.

    The commissioner shall adopt rules as necessary to implement this section.

    NEW SECTION. Sec. 7. Aerospace workers unemployed as the result of downsizing and restructuring of the aerospace industry will be deemed to be dislocated workers for the purpose of commissioner approval of training under RCW 50.20.043.

    NEW SECTION. Sec. 8. (1) The employment security department shall disburse the amounts appropriated by the legislature for the purposes of chapter . . ., Laws of 1993 (this act) to the state board for community and technical colleges. These funds shall be allotted for, and only for, training programs and related support services, including financial aid, in the community and technical college system that:

    (a) Are consistent with work force training priorities and based upon the comprehensive plan for work force training developed by the work force training and education coordinating board. The state board for community and technical colleges shall develop a plan for use and evaluation of these funds which is to be approved by the work force training and education coordinating board for consistency with their work force priorities. In developing and approving the plan, information shall be gathered from small businesses as defined in RCW 43.31.025, with particular emphasis on businesses with fifteen or fewer employees. Further, the state board for community and technical colleges shall report to the work force training and education coordinating board and the legislature annually on the progress and results of the training and support services provided to eligible participants;

    (b) Provide increased enrollments for individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months, with first priority given to individuals who are unlikely to return to employment in the individuals' principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry; and

    (c) Provide increased enrollments and support services, including financial aid, that do not replace or supplant any existing enrollments, programs, support services, or funding sources. For fiscal year 1994, the state board for community and technical colleges may borrow from the general fund to initiate the programs authorized under this act. However, the board shall repay the borrowed amount by the end of the fiscal biennium from funds appropriated to it from the employment and training trust fund.

    (2) For purposes of chapter . . ., Laws of 1993 (this act), training provided by the community and technical colleges shall only consist of basic skills and literacy, occupational skills, vocational education, and related or supplemental instruction for apprentices who are enrolled in a registered, state-approved apprenticeship program. Community and technical colleges may contract with skill centers to provide training authorized in this section. Upon the request of an eligible recipient, a community and technical college may contract with a private technical school for specialized vocational training. Available tuition for the training is limited to the amount that would otherwise be obtained per enrolled quarter to a public institution. Furthermore, the funding is only available to students who seek training in a course of study not available at a public institution within an eligible recipient's congressional district.

    Sec. 9. RCW 50.16.010 and 1991 sp.s. c 13 s 59 are each amended to read as follows:

    There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, an employment and training trust fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 and 43.84.092 shall not be applicable.

    (1) The unemployment compensation fund shall consist of

    (((1))) (a) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

    (((2))) (b) any property or securities acquired through the use of moneys belonging to the fund,

    (((3))) (c) all earnings of such property or securities,

    (((4))) (d) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

    (((5))) (e) all money recovered on official bonds for losses sustained by the fund,

    (((6))) (f) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

    (((7))) (g) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

    (((8))) (h) all moneys received for the fund from any other source.

    All moneys in the unemployment compensation fund shall be commingled and undivided.

    (2)(a) The administrative contingency fund shall consist of:

    (i) All interest on delinquent contributions collected pursuant to this title((,));

    (ii) All fines and penalties collected pursuant to the provisions of this title((,));

    (iii) All sums recovered on official bonds for losses sustained by the fund((,)); and

    (iv) Revenue received under RCW 50.24.014:

    PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

    (b) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

    (((a))) (i) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

    (((b))) (ii) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

    Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW ((74.09.035, 74.09.510, 74.09.520, and 74.09.700)) 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

    (3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 3 of this act.

    Sec. 10. RCW 50.16.010 and 1993 c .... s 9 (section 9 of this act) are each amended to read as follows:

    There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, ((an employment and training trust fund,)) and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 ((and 43.84.092)) shall not be applicable.

    (((1))) The unemployment compensation fund shall consist of

    (((a))) (1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

    (((b))) (2) any property or securities acquired through the use of moneys belonging to the fund,

    (((c))) (3) all earnings of such property or securities,

    (((d))) (4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

    (((e))) (5) all money recovered on official bonds for losses sustained by the fund,

    (((f))) (6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

    (((g))) (7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

    (((h))) (8) all moneys received for the fund from any other source.

    All moneys in the unemployment compensation fund shall be commingled and undivided.

    (((2)(a))) The administrative contingency fund shall consist of((:

    (i))) all interest on delinquent contributions collected pursuant to this title((;

    (ii))), all fines and penalties collected pursuant to the provisions of this title((;

    (iii))), all sums recovered on official bonds for losses sustained by the fund((;)), and

    (((iv))) revenue received under RCW 50.24.014:

    PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

    (((b))) Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

    (((i))) (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

    (((ii))) (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

    Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

    (((3) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 2 of this act.))

    Sec. 11. RCW 50.16.020 and 1983 1st ex.s. c 23 s 10 are each amended to read as follows:

    The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the employment and training trust fund, and ((of)) the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. ((He)) The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

    (1) a clearing account,

    (2) an unemployment trust fund account, and

    (3) a benefit account.

    All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

    After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

    The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

    Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

    The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

    Sec. 12. RCW 50.16.020 and 1993 c .... s 11 (section 11 of this act) are each amended to read as follows:

    The commissioner shall designate a treasurer and custodian of the unemployment compensation fund((, the employment and training trust fund,)) and of the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

    (1) a clearing account,

    (2) an unemployment trust fund account, and

    (3) a benefit account.

    All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

    After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

    The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

    Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

    The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

    Sec. 13. RCW 50.29.025 and 1990 c 245 s 7 are each amended to read as follows:

    The contribution rate for each employer shall be determined under this section.

    (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

    (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                  Interval of the

                 Fund Balance Ratio                              Effective

              Expressed as a Percentage                      Tax Schedule


              3.40 and above                                       A

              2.90 to 3.39                                             B

              2.40 to 2.89                                             C

              1.90 to 2.39                                             D

              1.40 to 1.89                                             E

              Less than 1.40                                         F


    (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

    (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

    (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                             Schedule((s)) of Contribution((s)) Rates

       Taxable Payrolls                             for Effective Tax Schedule

                                              Rate

From     To                           Class       A B C D E F


((0.00    5.00                          1            0.48 0.58 0.98 1.48 1.88 2.48

 5.01 10.00                           2            0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00                         3            0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00                         4            0.78 1.18 1.58 1.98 2.48 3.08

20.01 25.00                         5            0.98 1.38 1.78 2.18 2.68 3.18

25.01 30.00                         6            1.18 1.58 1.98 2.38 2.78 3.28

30.01 35.00                         7            1.38 1.78 2.18 2.58 2.98 3.38

35.01 40.00                         8            1.58 1.98 2.38 2.78 3.18 3.58

40.01 45.00                         9            1.78 2.18 2.58 2.98 3.38 3.78

45.01 50.00                         10           1.98 2.38 2.78 3.18 3.58 3.98

50.01 55.00                         11           2.28 2.58 2.98 3.38 3.78 4.08

55.01 60.00                         12           2.48 2.78 3.18 3.58 3.98 4.28

60.01 65.00                         13           2.68 2.98 3.38 3.78 4.18 4.48

65.01 70.00                         14           2.88 3.18 3.58 3.98 4.38 4.68

70.01 75.00                         15           3.08 3.38 3.78 4.18 4.58 4.78

75.01 80.00                         16           3.28 3.58 3.98 4.38 4.68 4.88

80.01 85.00                         17           3.48 3.78 4.18 4.58 4.88 4.98

85.01 90.00                         18           3.88 4.18 4.58 4.88 4.98 5.18

90.01 95.00                         19           4.28 4.58 4.98 5.08 5.18 5.38

95.01 100.00                        20           5.40 5.40 5.40 5.40 5.40 5.40))


 0.00     5.00                            1           0.36 0.46 0.86 1.36 1.76 2.36

 5.01   10.00                            2           0.36 0.66 1.06 1.56 1.96 2.56

10.01 15.00                            3           0.46 0.86 1.26 1.66 2.16 2.76

15.01 20.00                            4           0.66 1.06 1.46 1.86 2.36 2.96

20.01 25.00                            5           0.86 1.26 1.66 2.06 2.56 3.06

25.01 30.00                            6           1.06 1.46 1.86 2.26 2.66 3.16

30.01 35.00                            7           1.26 1.66 2.06 2.46 2.86 3.26

35.01 40.00                            8           1.46 1.86 2.26 2.66 3.06 3.46

40.01 45.00                            9           1.66 2.06 2.46 2.86 3.26 3.66

45.01 50.00                           10          1.86 2.26 2.66 3.06 3.46 3.86

50.01 55.00                           11          2.16 2.46 2.86 3.26 3.66 3.96

55.01 60.00                           12          2.36 2.66 3.06 3.46 3.86 4.16

60.01 65.00                           13          2.56 2.86 3.26 3.66 4.06 4.36

65.01 70.00                           14          2.76 3.06 3.46 3.86 4.26 4.56

70.01 75.00                           15          2.96 3.26 3.66 4.06 4.46 4.66

75.01 80.00                           16          3.16 3.46 3.86 4.26 4.56 4.76

80.01 85.00                           17          3.36 3.66 4.06 4.46 4.76 4.86

85.01 90.00                           18          3.76 4.06 4.46 4.76 4.86 5.06

90.01 95.00                           19          4.16 4.46 4.86 4.96 5.06 5.26

95.01100.00                          20          5.40 5.40 5.40 5.40 5.40 5.40


    (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

    (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

    (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

    (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

    Sec. 14. RCW 50.29.025 and 1993 c .... s 13 (section 13 of this act) are each amended to read as follows:

    The contribution rate for each employer shall be determined under this section.

    (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

    (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:


                  Interval of the

                 Fund Balance Ratio                                              Effective

              Expressed as a Percentage                                      Tax Schedule


              3.40 and above                                                       A

              2.90 to 3.39                                                             B

              2.40 to 2.89                                                             C

              1.90 to 2.39                                                             D

              1.40 to 1.89                                                             E

              Less than 1.40                                                         F

    (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

    (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

    (5) The contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:


               Percent of

               Cumulative                             Schedules of Contributions Rates

       Taxable Payrolls                             for Effective Tax Schedule

                                              Rate

From     To                           Class       A B C D E F


((0.00  5.00                            1           0.36 0.46 0.86 1.36 1.78 2.36

5.01   10.00                            2           0.36 0.66 1.06 1.56 1.96 2.56

10.01 15.00                            3           0.46 0.86 1.26 1.66 2.16 2.76

15.01 20.00                            4           0.66 1.06 1.46 1.86 2.36 2.96

20.01 25.00                            5           0.86 1.26 1.66 2.06 2.56 3.06

25.01 30.00                            6           1.06 1.46 1.86 2.26 2.66 3.16

30.01 35.00                            7           1.26 1.66 2.06 2.46 2.86 3.26

35.01 40.00                            8           1.46 1.86 2.26 2.66 3.06 3.46

40.01 45.00                            9           1.66 2.06 2.46 2.86 3.26 3.66

45.01 50.00                           10          1.86 2.26 2.66 3.06 3.46 3.86

50.01 55.00                           11          2.16 2.46 2.86 3.26 3.66 3.96

55.01 60.00                           12          2.36 2.66 3.06 3.46 3.86 4.16

60.01 65.00                           13          2.56 2.86 3.26 3.66 4.06 4.36

65.01 70.00                           14          2.76 3.06 3.46 3.86 4.26 4.56

70.01 75.00                           15          2.96 3.26 3.66 4.06 4.46 4.66

75.01 80.00                           16          3.16 3.46 3.86 4.26 4.56 4.76

80.01 85.00                           17          3.36 3.66 4.06 4.46 4.76 4.86

85.01 90.00                           18          3.76 4.06 4.46 4.76 4.86 5.06

90.01 95.00                           19          4.16 4.46 4.86 4.96 5.06 5.26

95.01100.00                          20          5.40 5.40 5.40 5.40 5.40 5.40))


 0.00 5.00                            1            0.48 0.58 0.98 1.48 1.88 2.48

 5.01 10.00                           2            0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00                         3            0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00                         4            0.78 1.18 1.58 1.98 2.48 3.08

20.01 25.00                         5            0.98 1.38 1.78 2.18 2.68 3.18

25.01 30.00                         6            1.18 1.58 1.98 2.38 2.78 3.28

30.01 35.00                         7            1.38 1.78 2.18 2.58 2.98 3.38

35.01 40.00                         8            1.58 1.98 2.38 2.78 3.18 3.58

40.01 45.00                         9            1.78 2.18 2.58 2.98 3.38 3.78

45.01 50.00                         10           1.98 2.38 2.78 3.18 3.58 3.98

50.01 55.00                         11           2.28 2.58 2.98 3.38 3.78 4.08

55.01 60.00                         12           2.48 2.78 3.18 3.58 3.98 4.28

60.01 65.00                         13           2.68 2.98 3.38 3.78 4.18 4.48

65.01 70.00                         14           2.88 3.18 3.58 3.98 4.38 4.68

70.01 75.00                         15           3.08 3.38 3.78 4.18 4.58 4.78

75.01 80.00                         16           3.28 3.58 3.98 4.38 4.68 4.88

80.01 85.00                         17           3.48 3.78 4.18 4.58 4.88 4.98

85.01 90.00                         18           3.88 4.18 4.58 4.88 4.98 5.18

90.01 95.00                         19           4.28 4.58 4.98 5.08 5.18 5.38

95.01 100.00                        20           5.40 5.40 5.40 5.40 5.40 5.40


    (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

    (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and four-tenths percent for the current rate year;

    (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

    (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

    NEW SECTION. Sec. 15. A new section is added to chapter 50.29 RCW to read as follows:

    For the purpose of simplification of employer reports, the "combined contribution rate" shall be used in the calculation of employer taxes. The combined contribution rate shall include the regular contribution rate as determined under RCW 50.29.025, employment and training trust fund contributions as determined under section 3 of this act, and special contributions required under RCW 50.24.014. A mention of the "combined contribution rate" may not be made on a tax form or publication unless the form or publication specifically identifies the specific contributions. The combined contribution rate may not be quoted on a form unless the specific component rates are also quoted. The sole purpose of the combined contribution rate is to allow an employer to perform a single calculation on a tax return rather than four separate calculations.

    NEW SECTION. Sec. 16. Prior to any increase in the employer tax schedule as provided in section 13, chapter ..., Laws of 1993 (section 13 of this act), the commissioner shall provide a report to the appropriate committees of the legislature specifying to what extent the work force training expenditures in chapter . . ., Laws of 1993 (this act) elevated employer contribution rates for the effective tax schedule.

    NEW SECTION. Sec. 17. (1) The employment security department shall report to the appropriate committees of the legislature by December 1, 1994, and every year thereafter, on the status of the programs provided in this act and the resulting outcomes. The department shall include in its report quantitative and demographic information on the increase in job orders, placement referrals, individualized training plans, skill assessments, and other interventions achieved. The department also shall include in its report the number of repeat clients as a percentage of all clients served by programs provided in chapter . . ., Laws of 1993 (this act).

    (2) The state board for community and technical colleges shall report to the appropriate standing committees of the legislature by December 1, 1994, and every year thereafter, the number of certified student full-time equivalents receiving training as provided in this act. In addition, the report must include information on the outcomes of the provided training. The report also must include indices of placement rates, student demographics, training plan completion rates, and comparisons of preprogram and postprogram wage levels.

    (3) Each community and technical college shall confer and consult with its respective labor-management advisory board concerning the college's efforts to provide the training and services rendered in chapter ..., Laws of 1993 (this act) and meet the completion and placement goals of the work force training and education coordinating board. Each community and technical college shall ensure the participation on its labor-management advisory board of small businesses as defined in RCW 43.31.025, with particular emphasis on businesses with fifteen or fewer employees.

    (4) The work force training and education coordinating board shall conduct a study in consultation with the higher education coordinating board on the feasibility of: (a) Redirecting all state and federal job training and retraining funds distributed in the state into a separate job training trust fund; and (b) distributing the funds according to uniform criteria. The work force training and education coordinating board shall report to the appropriate committees of the legislature on the results of the study by January 1, 1995.

    NEW SECTION. Sec. 18. A new section is added to chapter 43.131 RCW to read as follows:

    The work force employment and training program created in chapter . . ., Laws of 1993 (this act) shall expire June 30, 1998.

    NEW SECTION. Sec. 19. A new section is added to chapter 43.131 RCW to read as follows:

    The following acts or parts of acts are each repealed, effective June 30, 1999:

    (1) Section 1 of this act;

    (2) Section 2 of this act;

    (3) Section 3 of this act;

    (4) Section 4 of this act;

    (5) Section 5 of this act;

    (6) Section 6 of this act;

    (7) Section 8 of this act;

    (8) Section 15 of this act; and

    (9) Section 17 of this act.

    NEW SECTION. Sec. 20. (1) Sections 10 and 12 of this act shall take effect June 30, 1999;

    (2) Section 14 of this act shall take effect January 1, 1998.

    NEW SECTION. Sec. 21. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

    NEW SECTION. Sec. 22. 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. 23. This act applies to tax rate years beginning with tax rate year 1994."


MOTIONS


    On motion of Senator McDonald, the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel was adopted:

    On page 1, line 9, after "employment" strike "and unemployment"


    Senator Cantu moved that the following amendments to the amendment by Senators Rinehart, Skratek and Bluechel be considered simultaneously and be adopted:

    On page 1, line 30, after "act to" strike all material through "act to" on page 1, line 33

    On page 2, line 1, after "consist of" strike "contributions of" and insert "an amount from the state general fund equal to"

    On page 2, after line 8, strike all material through "RCW 50.24.010" on page 2, line 21

    Renumber remaining sections consecutively and correct internal references accordingly.

    Debate ensued.

    Senator Nelson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendments by Senator Cantu on page 1, line 30; page 2, line 1; and page 2, after line 8; to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendments to the amendment were not adopted by the following vote: Yeas, 19; Nays, 27; Absent, 2; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., Vognild, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer and Williams - 27.

    Absent: Senators Rasmussen, M. and Wojahn - 2.

    Excused: Senator Roach - 1.


MOTION


    Senator West moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 1, line 30 of the amendment, after "Sec. 2." insert "For the purpose of identifying the cumulative effects of the tax, fee, and employer mandate policies enacted by the 1993 Washington legislature upon both employment rates and business climate in Washington, there is hereby created a "consumer and business impact task force," which shall consist of nine persons appointed by the governor from names submitted by organizations representing business or consumers. The task force shall submit recommendations periodically and shall issue a final report to the governor by December 31, 1994. The task force shall expire on June 31, 1995.

    NEW SECTION. Sec. 3."

    Renumber the remaining sections consecutively and correct internal references accordingly.

    Debate ensued.

    Senator Nelson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator West on page 1, line 30, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.


MOTION


    Senator Amondson moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 2, line 14, after "except" insert "employers negatively impacted in a financially measurable way be federal timber policies enacted within five years previous to the effective date of this act,"

    Debate ensued.

    Senator Amondson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Amondson on page 2, line 14, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.


MOTION


    On motion of Senator Loveland, Senator Vognild was excused.


MOTION


    Senator Anderson moved that the following amendment to the

amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 20, strike all material through "fund;" on page 3, line 22

    Renumber accordingly

    Debate ensued.


POINT OF INQUIRY


    Senator Deccio: "Senator Skratek, I think I have heard you say just the opposite in the response given by Senator Rinehart. My understanding is that all of the monies in this bill would go to the community colleges for workforce training. It would not be used for supplanting; it would not go to Employment Security. Would you respond to that please?"

    Senator Skratek: "I would be happy to, Senator Deccio. Senator Rinehart is correct. The bill does not contain any appropriation for either the community colleges or for the Employment Security Department. The Senate Budget, as written by Senator Rinehart and approved by this body, provided all of the dollars to the community and technical colleges. The House Budget, I must be honest, has provided a small funding source to the Employment Security Department. It is going to be the final determination made by this body, through the budget processes to which dollars go where. The bill, itself, does not appropriate money to the Employment Security Department, Senator."

    Senator Deccio: "May I continue, Mr. President? A further question, can we be guaranteed, on this floor, that none of these monies, in either the House version or the Senate version, none of these monies will go to Employment Security and none will go to administration to further supplant the community colleges budgets--that it will all go for this purpose? I would like to have Senator Skratek respond, if I could--Senator Rinehart. This is not the colloquy that I am referring to. Whatever, go ahead."


REMARKS BY SENATOR RINEHART


    Senator Rinehart: "To respond to Senator Deccio, you and I both know--we've been around here long enough--there are no guarantees of anything. I can reflect and remind you that the budget that came out of this body directed all of the money to the community colleges. The budget that I am defending whenever we get to a conference committee will include that."

    Further debate ensued.

    Senator Nelson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Anderson on page 3, line 20, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 28; Absent, 0; Excused, 2.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Williams and Wojahn - 28.

    Excused: Senators Roach and Vognild - 2.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32 of the amendment, insert the following:

    "Notwithstanding any provision of this section, funds from the employment and training trust fund shall not be expended for personal services contracts with persons who hold federal or state elective office or for salaries of persons who hold federal or state elective office."

    Debate ensued.

    Senator Linda Smith demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.



MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32 of the amendment, insert the following:

    "Notwithstanding any provision of this section, funds from the employment and training trust fund shall not be expended for per diem expenses or vehicle rental for persons who hold federal or state elective office."

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Linda Smith failed and the amendment to the amendment was not adopted.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32, insert the following:

    "(8) Transferred to the unemployment trust fund subject to the finding of Section 4 of this act.

    NEW SECTION. Sec. 4. The workforce training education coordinating board shall conduct a study to determine the amount of employment training and re-training funds available from all state agencies and determine the most effective use of those funds in meeting the intent of this act. The board shall make a determination if there is a need for additional funds to carry out the intent of this act. All funds in the employment and training trust fund that are not found necessary by the board to carry out the intent of this act by September 1 of each year, shall be transferred to the unemployment trust fund."

    Renumber the remaining sections consecutively.

    Debate ensued.

    Senator Linda Smith demanded a roll call and the demand was sustained.

    Further debate ensued.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32 of the amendment, insert the following:

    "Notwithstanding any provision of this section, funds from the employment and training trust fund shall not be expended for personal services contracts or for salaries of persons who hold stat elective office and who have received payments of more than $100,000 in the preceding calendar year for personal services contracts with the state of Washington."

    Debate ensued.


PARLIAMENTARY INQUIRY


    Senator Talmadge: "Mr. President, a point of parliamentary inquiry. Could you describe for the members of the Senate your policy with respect to the question of whether we start to get to the point at which amendments are frivolous within the meaning of Reed's Rules?"


REPLY BY THE PRESIDENT


    President Pritchard: "You know that gets to be sort of a gray area of what is a frivolous amendment. A frivolous amendment to one person isn't to another. If it doesn't bear on the bill--there is quite a bit of latitude in allowing amendments. I think we have to be pretty careful about not choking them off. As to what is frivolous and what isn't--we get to a certain point--I think that is as clear as I can say."

    The President declared the question before the Senate to be the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Linda Smith failed and the amendment to the amendment was not adopted.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32 of the amendment, insert the following:

    "Notwithstanding any provision of this section, funds from the employment and training trust fund shall not be expended for personal services contracts or for salaries of lobbyists, public information officers, or media representatives."

    Debate ensued.

    Senator Linda Smith demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32 of the amendment, insert the following:

    "Notwithstanding any provision of this section, funds from the employment and training trust fund shall not be disbursed to any agency, college or other entity that is a party to a personal services contract with a person who holds federal or state elective office."


POINT OF ORDER


    Senator Vognild: "Thank you, Mr. President. I would request a ruling from the Chair. I believe that the rule states that once a body has made a decision in the negative that the same basic concept cannot be brought before the body again. Although, a few words are changed, this will be the third time that this concept has been brought before the body."


REPLY BY THE PRESIDENT


    President Pritchard: "Well, we'll take a look at it. Do you want to respond Senator Smith?"


REMARKS BY SENATOR SMITH


    Senator Linda Smith: "Thank you, Mr. President. This is the first amendment that addresses the institution itself. There is nothing that withholds the money from the institution. This is the only one that says, 'notwithstanding any provision of this section, funds from the employment and training trust fund shall not be disbursed to any agency, college or other entity that is a party to a personal services contract.' So, it says that the money will not go to them. The other amendments did not go that direction."


FURTHER REPLY BY THE PRESIDENT


    President Pritchard: "I'm not going to rule this out. One, it is the last of the line. I think if we were to continue this line, I probably would. There are some differences; we are in a gray area and we will let this last one go."

    Further debate ensued.

    Senator Linda Smith demanded a roll call and the demand was not sustained.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Linda Smith on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Linda Smith failed and the amendment to the amendment was not adopted.


MOTION


    Senator Nelson moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32, insert the following:

    "It is the intent of the legislature that expenditures from the employment and training trust fund be used to provide training and related support services to persons with financial need. Demand for such services will likely outweigh available funds. Therefore, the office of financial management shall develop eligibility guidelines. The guidelines shall give priority to individuals who earned an average annual income at the time of termination or notice of termination that is less than the median average annual income in Washington state."

    Debate ensued.

    Senator Nelson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Nelson on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 29; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 29.

    Excused: Senator Roach - 1.


MOTION


    Senator McDonald moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 3, after line 32, insert the following:

    "(8) As retraining becomes a common part of adult work life, it is important that all vocational education opportunities be used to the maximum extend possible. Skill centers established to provide vocational training for high school students are used during the morning and early afternoon. These facilities are idle during the late afternoon and evening hours. At the same time, community colleges have more students applying than they can accommodate. To assure that we meet the needs of our citizens in seeking training or retraining, al vocational training facilities should be used to the maximum extent possible. The superintendent of public instruction and the state board for community and technical colleges shall jointly develop and adopt rules governing this program, if such rules are necessary. The rules shall be written to encourage the maximum use of the program and shall not narrow or limit the enrollment options in this program."



    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator McDonald on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator McDonald failed and the amendment to the amendment was not adopted on a rising vote.


MOTION


    Senator Linda Smith moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:                                                                                                                                                                                          

    On page 4, after line 14 of the amendment, insert the following:

    "NEW SECTION. Sec. 7. Under no circumstances shall current education and training programs be replaced by the program set out under chapter ...., Laws of 1993 (this act)."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Linda Smith on page 4, after line 14, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Linda Smith failed and the amendment to the amendment was not adopted.


MOTION


    Senator McDonald moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 4, line 18, after "RCW 50.20.043." insert "Workers unemployed as a result of the tax and fee policies enacted by the 1993 Washington legislature will be deemed to be dislocated workers for the purpose of commissioner approval of training under RCW 50.20.043 if so certified by the worker's former employer."

    Debate ensued.


POINT OF INQUIRY


    Senator Talmadge: "Senator McDonald, for purposes of the definition here, does a 'dislocated worder' mean all of the people that have been offering amendments to this bill?"

    Senator McDonald: "I will guarantee you that my typing skills are much inferior to my legislative skills, Senator."

    The President declared the question before the Senate to be the adoption of the amendment by Senator McDonald on page 4, line 18, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator McDonald failed and the amendment to the amendment was not adopted.


MOTION


    Senator Oke moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

     On page 4, after Section 7, insert the following:

    "NEW SECTION. Sec. 8. Military workers unemployed as the result of downsizing and restructuring of the military will be deemed to be dislocated workers for the purposes of commissioner approval of training under RCW 50.20.043."

    Renumber the remaining sections accordingly and correct any internal references.

    Debate ensued.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Oke on page 3, after line 32, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 20; Nays, 28; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Owen, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 20.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 28.

    Excused: Senator Roach - 1.



MOTION


    Senator Sellar moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 4, line 29, after "approved by the" insert "state apprenticeship council and the"

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Sellar on page 4, line 29, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Sellar failed and the amendment to the amendment was not adopted.


MOTION


    Senator Erwin moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 4, line 31, after "priorities." insert "For the purposes of voting on the approval of the plan, only business and labor representatives on the workforce training and education coordinating board shall have a vote."

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Erwin on page 4, line 31, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Erwin failed and the amendment to the amendment was not adopted on a rising vote.


MOTION


    Senator Anderson moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 19, after section 17, insert the following:

    "NEW SECTION. Sec. 18. The legislature finds: (1) That permits are a necessary part of regulating some public and private activity for the health, safety, and welfare of the citizens of this state; (2) that permit processing by state and local agencies should be done timely, fairly, and as efficiently as possible; (3) that permit processing by state and local agencies sometimes does not meet reasonable expectations of the citizens of this state; (4) that many projects require some regulatory review by several departments in the same agency or multiple review by different agencies; and (5) that better coordination of the issuance of permits in and between state and local agencies will enhance the permit process; and (6) permitting delays construction and results in less construction and ultimately fewer jobs. Sections 2 through 5 of this act intend to improve permit processing by state and local agencies by providing encouragement and technical assistance to establish coordinated, one-stop permit processes and by encouraging improved service to the citizens of this state.

    "NEW SECTION. Sec. 19. The workforce training education coordinating board shall conduct a study to determine the feasibility of and set the criteria for each city and county reviewing its procedures for the issuance of permits necessary for building or remodeling dwellings, subdivisions. The goal of this review is to evaluate current policies and practices to establish more efficient review of permit applications.

    "NEW SECTION. Sec. 20. The workforce training education coordinating board shall convene a task force of agency directors to recommend or implement changes to the processing of regulatory permits by state agencies. The goal of these recommendations or changes shall be to make the process more coordinated, more timely, more effective, and more service-oriented. The task force shall include, but not be limited to, the director of the department of ecology and the department of community development. The recommendations or changes shall consider at least the following: (1) Streamlining state environmental permit processing among natural resource and regulatory agencies, particularly regarding multiple agency permit processing and eliminating duplication; and (2) identifying a staff person in each regional office of regulatory agencies to coordinate cross-program or multiagency processing and decisions. The governor shall report to the appropriate legislative standing committees regarding this section by December 1, 1993."

    Renumber all sections consecutively and correct any internal references accordingly.

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Anderson on page 19, after Section 17, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Anderson failed and the amendment to the amendment was not adopted.


MOTION


    Senator Amondson moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 19, after section 17, insert the following:

    "NEW SECTION. Sec. 18. (1) The competitive strategies task force is established for the purposes of developing strategies for reducing the cost of government services or other public sector activities; improvising the quality of services, without increasing costs, that citizens require; and, minimizing the role of government where market competition is able to achieve the social good without significant government interference.

    (2) The task force shall be composed of the following fifteen members: The executive director of the commissionfor efficiency and accountability in government or his or her designee, who shall serve as chair; the governor or the governor's designee; the director of the department of general administration or his or her designee; a representative from each caucus of the hose of representatives to be appointed by the speaker of the house of representatives; a representative from each caucus of the senate to be appointed by the president of the senate; a representative from a major state-wide public employee union; two representatives from major state-wide private sector unions; three representatives from a major state-wide business organization that represents a cross section of private sector industry; and, two representatives from the general public.

    (3) The task force shall:

    (a) Perform a thorough review and inventory of all state services and other activities of state government.

    (b) Identify various arrangements that the state government might implement as alternative methods to the purchase or delivery of necessary services including but not limited to the transfer of facility operation to a private sector management company; cooperative public-private finance and development plans, joint public-private operation of existing facilities, infrastructure and services; sale or lease of government-owned real estate assets; transfer of selected services to the private sector; sale or recapitalization of government-owned companies; enhancement of cash management and debt restructuring; restructuring government organizations and management; use of leases and lease purchase arrangements for facilities and infrastructure; voucher-based programs; and intergovernmental agreements.

    (c) Consider incentives to encourage the active use of the arrangements identified under (b) of this subsection by stat agencies, departments, and institutions.

    (d) Develop comprehensive guidelines or procedures for the implementation of arrangements identified under (b) of this subsection that ensure satisfactory accountability measures and protection of the public interest.

    (e) Investigate efforts made by other states and nations to arrange for the use of competitive strategies.

    (f) Report its final findings and recommendations to the legislature no later than December 15, 1993, including any legislation the task force finds necessary for the implementation of the findings and recommendations.

    (4) The office of financial management shall provide the necessary staff support for the purposes of this task force.

    NEW SECTION. Sec. 19. It is the intent of the legislature that:

    (1) All agencies, departments, offices of elective or appointed state officers, state institutions, colleges, universities, community colleges, technical colleges, college districts, public school districts, the supreme court, the court of appeals and any other entity receiving appropriations from the legislature deliver high quality services to the people of the state of Washington in the most efficient and cost-effective manner possible.

    (2) The director of general administration, through the state purchasing and material control director established in RCW 43.19.180, be provided the highest level of flexibility in the purchase of all materials, supplies, services, and equipment necessary for the efficient support, maintenance, repair, and use of all agencies and departments under RCW 43.19.190.

    (3) Primary deliberation regarding the purchase or delivery of services by state agencies, departments, and institutions focus upon strategies that foster cost controls and increased quality or service levels through the use of free market enterprise competition.

    Sec. 20. RCW 41.06.380 and 1979 ex.s. c 46 s 2 are each amended to read as follows:

    ((Nothing contained in this chapter shall prohibit any department)) No agency, as defined in RCW 41.06.020, ((from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract by such department prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)) may purchase services or the delivery of services through contracts with individuals or business entities. The execution or renewal of the contract must be in compliance with the provisions of RCW 43.19.1906.

    Sec. 21. RCW 28B.16.040 and 1990 c 60 s 201 are each amended to read as follows:

    The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

    (1) Members of the governing board of each institution and related boards, all presidents, vice presidents and their confidential secretaries, administrative and personal assistants; deans, directors, and chairmen; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington.

    (2) Student, part time, or temporary employees, and part time professional consultants, as defined by the higher education personnel board, employed by institutions of higher education and related boards.

    (3) The director, his or her confidential secretary, assistant directors, and professional education employees of the state board for community and technical colleges ((education)).

    (4) The personnel director of the higher education personnel board and his or her confidential secretary.

    (5) The governing board of each institution, and related boards, may also exempt from this chapter, subject to the employees right of appeal to the higher education personnel board, classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training, and principal assistants to executive heads of major administrative or academic divisions, as determined by the higher education personnel board((: PROVIDED, That no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the higher education personnel board under this provision)).

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

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

    Sec. 22. RCW 28B.16.240 and 1979 ex.s. c 46 s 1 are each amended to read as follows:

    ((Nothing contained in this chapter shall prohibit any)) An institution of higher education, as defined in RCW 28B.10.016, or related board ((from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract at such institution prior to April 23, 1979: PROVIDED, That no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract)) may purchase services or the delivery of services through contracts with individuals or business entities. The execution or renewal of the contract must be in compliance with the provisions of RCW 43.19.1906.

    NEW SECTION. Sec. 23. A new section is added to chapter 28A.400 RCW to read as follows:

    Nothing in this chapter shall be construed as prohibiting the procurement or provision of nonacademic services. Directors of school districts may purchase services or the delivery of services through contracts with individuals or business entities. The execution or renewal of the contract must be in compliance with the provisions of RCW 43.19.1906."

    Renumber all sections consecutively and correct any internal references accordingly.

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Amondson on page 19, after Section 17, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator Amondson failed and the amendment to the amendment was not adopted.


MOTION


    Senator West moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 19, after line 37, insert the following:

    "NEW SECTION. Sec. 19. (1) The subcommittee on the aerospace industry is established as a subcommittee of the executive-legislative committee on economic development created in chapter ...(Senate Bill No. 5300), Laws of 1993. The subcommittee is to examine the overall impacts of the aerospace industry work slowdown and make recommendations to the full committee, the governor, and the legislature regarding:

    (a) The need for short-term and long-term assistance for workers made unemployed by the slowdown, inducing extending unemployment benefits, job retraining, new employment assistance, family assistance, and other types of assistance; and

    (b) A long-term approach to diversification of the region most affected by aerospace business fluctuations.

    In conducting the examination, the subcommittee shall consider the impacts on: The state and substate regional economies; displaced workers and their families; and businesses not directly related to the aerospace industry

    (2) The subcommittee shall consist of at least three members of the full committee and may include advisory members. The advisory members may include representatives from: (a) The aerospace industry; (b) chambers of commerce and economic development councils; (c) unions representing aerospace workers; (d) county councils; (e) city governments; and (f) the work force training and education coordinating board.

    (3) The subcommittee shall as soon as is practicable and make a preliminary report to the full committee, the governor, and the appropriate standing committees of the legislature by September 15, 1993, and a final report before December 1, 1993.

    (4) This section shall expire December 31, 1993."

    Renumber the remaining sections.

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator West on page 19, after line 37, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator West failed and the amendment to the amendment was not adopted.


MOTION


    Senator Prince moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 20, after line 16 of the amendment, insert the following:

    "Sec. 21. RCW 28C.18.020 and 1991 c 238 s 3 are each amended to read as follows:

    (1) There is hereby created the work force training and education coordinating board as a state agency and as the successor agency to the state board for vocational education. Once the coordinating board has convened, all references to the state board for vocational education in the Revised Code of Washington shall be construed to mean the work force training and education coordinating board, except that reference to the state board for vocational education in RCW 49.04.030 shall mean the state board for community and technical colleges.

    (2)(a) The board shall consist of nine voting members appointed by the governor with the consent of the senate, as follows: ((Three)) Six representatives of business, three representatives of labor, and, serving as ex officio members, the superintendent of public instruction, the executive director of the state board for community and technical colleges, and the commissioner of the employment security department. The chair of the board shall be a nonvoting member selected by the governor with the consent of the senate, and shall serve at the pleasure of the governor. In selecting the chair, the governor shall seek a person who understands the future economic needs of the state and nation and the role that the state's training system has in meeting those needs. Each voting member of the board may appoint a designee to function in his or her place with the right to vote. In making appointments to the board, the governor shall seek to ensure geographic, ethnic, and gender diversity and balance. The governor shall also seek to ensure diversity and balance by the appointment of persons with disabilities.

    (b) The business representatives shall be selected from among nominations provided by a state-wide business organization representing a cross-section of industries. However, the governor may request, and the organization shall provide, an additional list or lists from which the governor shall select the business representatives. The nominations and selections shall reflect the cultural diversity of the state, including women, people with disabilities, and racial and ethnic minorities, and diversity in sizes of businesses.

    (c) The labor representatives shall be selected from among nominations provided by state-wide labor organizations. However, the governor may request, and the organizations shall provide, an additional list or lists from which the governor shall select the labor representatives. The nominations and selections shall reflect the cultural diversity of the state, including women, people with disabilities, and racial and ethnic minorities.

    (d) Each business member may cast a proxy vote or votes for any business member who is not present and who authorizes in writing the present member to cast such vote.

    (e) Each labor member may cast a proxy vote for any labor member who is not present and who authorizes in writing the present member to cast such vote.

    (f) The chair shall appoint to the board one nonvoting member to represent racial and ethnic minorities, women, and people with disabilities. The nonvoting member appointed by the chair shall serve for a term of four years with the term expiring on June 30th of the fourth year of the term.

    (g) The business members of the board shall serve for terms of four years, the terms expiring on June 30th of the fourth year of the term except that in the case of initial members, one shall be appointed to a two-year term and one appointed to a three-year term.

    (h) The labor members of the board shall serve for terms of four years, the terms expiring on June 30th of the fourth year of the term except that in the case of initial members, one shall be appointed to a two-year term and one appointed to a three-year term.

    (i) Any vacancies among board members representing business or labor shall be filled by the governor with nominations provided by state-wide organizations representing business or labor, respectively.

    (j) The board shall adopt bylaws and shall meet at least bimonthly and at such other times as determined by the chair who shall give reasonable prior notice to the members or at the request of a majority of the voting members.

    (k) Members of the board shall be compensated in accordance with RCW 43.03.040 and shall receive travel expenses in accordance with RCW 43.03.050 and 43.03.060.

    (l) The board shall be formed and ready to assume its responsibilities under this chapter by October 1, 1991.

    (m) The director of the board shall be appointed by the governor from a list of three names submitted by a committee made up of the business and labor members of the board. However, the governor may request, and the committee shall provide, an additional list or lists from which the governor shall select the director. The lists compiled by the committee shall not be subject to public disclosure. The governor may dismiss the director only with the approval of a majority vote of the board. The board, by a majority vote, may dismiss the director with the approval of the governor.

    (3) The state board for vocational education is hereby abolished and its powers, duties, and functions are hereby transferred to the work force training and education coordinating board. All references to the director or the state board for vocational education in the Revised Code of Washington shall be construed to mean the director or the work force training and education coordinating board.

    Sec. 22. RCW 28C.18.030 and 1991 c 238 s 4 are each amended to read as follows:

    The purpose of the board is to identify work force needs of Washington state employers and to provide planning, coordination, evaluation, monitoring, and policy analysis for the state training system as a whole, and advice to the governor and legislature concerning the state training system, in cooperation with the agencies which comprise the state training system, and the higher education coordinating board."

    Renumber the remaining sections consecutively and correct internal references accordingly.

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator Prince on page 20, after line 16, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator West failed and the amendment to the amendment was not adopted.


MOTION


    Senator Nelson moved that the following amendment by Senators Nelson and Sellar to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 20, line 31, after "Sec. 23." insert "If at any time Washington state's rate of unemployment falls below the national rate of unemployment, then sixty days thereafter this act shall be null and void.

    NEW SECTION. Sec. 24."

    Debate ensued.

    Senator Nelson demanded a roll call and the demand was sustained.

    The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Nelson and Sellar on page 20, line 31, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.


ROLL CALL


    The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 19; Nays, 28; Absent, 1; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., von Reichbauer, West and Winsley - 19.

    Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 28.

    Absent: Senator Owen - 1.

    Excused: Senator Roach - 1.




MOTION


    Senator West moved that the following amendment to the amendment by Senators Rinehart, Skratek and Bluechel be adopted:

    On page 1, after line 29, insert the following:

    "(4) That additional taxes are needed to enhance the existing state spending that is in excess of six hundred million per biennium to accomplish the intent of this legislation."

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the amendment by Senator West on page 1, line 29, to the amendment by Senators Rinehart, Skratek and Bluechel to Engrossed Substitute House Bill No. 1988.

    The motion by Senator West failed and the amendment to the amendment was not adopted.

    The President declared the question before the Senate to be the adoption of the amendment by Senators Rinehart, Skratek and Bluechel on page 1, after line 17, as amended, to Engrossed Substitute House Bill No. 1988.

    Debate ensued.


POINT OF INQUIRY


    Senator Newhouse: "Senator Skratek, we face a federal requirement of establishing a schedule of charges against employers around the state and one of the requirements in there is that the top rate--and there shall be a top-rate--and there shall be a group of employers in that top-rate of five point four percent. According to the machinery you have set up here, you would lower the rate, you say point one two and I don't believe that you can legally lower a rate. We'll then again have to raise it right to the five point four for the federal requirements and in addition, aren't you going to have an additional top-rate, so that the top-rate will be five point five two?"

    Senator Skratek: "Thank you, Senator Newhouse, for asking that question. You are correct regarding the Class 20, which is why you will find in Section 3 of the striking amendment that those employers have been exempted from this particular requirement."

    The amendment by Senators Rinehart, Skratek and Bluechel on page 1, after line 7, as amended, to Engrossed Substitute House Bill No. 1988 was adopted.


MOTIONS


    On motion of Senator Rinehart, the following title amendment was adopted:

    On page 1, line 1 of the title, after "training;" strike the remainder of the title and insert "amending RCW 50.16.010, 50.16.020, and 50.29.025; adding a new section to chapter 50.24 RCW; adding new sections to chapter 50.16 RCW; adding a new section to chapter 50.29 RCW; adding new sections to chapter 43.131 RCW; creating new sections; and providing effective dates."


    On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute House Bill No. 1988, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Debate ensued.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1988, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1988, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 25; Nays, 23; Absent, 0; Excused, 1.

    Voting yea: Senators Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, McAuliffe, Moyer, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Talmadge, von Reichbauer, Williams and Winsley - 25.

    Voting nay: Senators Amondson, Anderson, Barr, Bauer, Cantu, Deccio, Erwin, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moore, Nelson, Newhouse, Oke, Prince, Sellar, Smith, L., Sutherland, Vognild, West and Wojahn - 23.

    Excused: Senator Roach - 1.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1988, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Jesernig, the Senate returned to the fourth order of business.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

    The Speaker has signed:

    SUBSTITUTE HOUSE BILL NO. 1003,

    SUBSTITUTE HOUSE BILL NO. 1057,

    HOUSE BILL NO. 1395,

    ENGROSSED HOUSE BILL NO. 1415,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1435,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1461,

    HOUSE BILL NO. 1530,

    SUBSTITUTE HOUSE BILL NO. 1532,

    HOUSE BILL NO. 1535,

    ENGROSSED HOUSE BILL NO. 1824,

    ENGROSSED HOUSE BILL NO. 2111,

    HOUSE JOINT MEMORIAL NO. 4008, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


SIGNED BY THE PRESIDENT


    The President signed:

    SUBSTITUTE HOUSE BILL NO. 1003,

    SUBSTITUTE HOUSE BILL NO. 1057,

    HOUSE BILL NO. 1395,

    ENGROSSED HOUSE BILL NO. 1415,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1435,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1461,

    HOUSE BILL NO. 1530,

    SUBSTITUTE HOUSE BILL NO. 1532,

    HOUSE BILL NO. 1535,

    ENGROSSED HOUSE BILL NO. 1824,

    ENGROSSED HOUSE BILL NO. 2111,

    HOUSE JOINT MEMORIAL NO. 4008.


MOTION


    On motion of Senator Jesernig, the Senate advanced to the ninth order of business.


MOTION


    Senator Jesernig moved that the rules be suspended and the Committee on Ways and Means be relieved of further consideration of Senate Bill No. 5976 and Senate Bill No. 5977 and that the bills be placed on the second reading calendar.


POINT OF INQUIRY


    Senator McDonald: "Senator Jesernig, have any of these ever had a public hearing?"

    Senator Jesernig: "I believe they have, Senator McDonald."

    Senator McDonald: "According to my sources, they have not had a public hearing."

    Senator Jesernig: "We can speak to Senator Rinehart and we can work that out."

    Senator McDonald: "I think that these bills, as we discovered, have not had a hearing and it is not these bills, Senator Rinehart, that are the objection. I think the objection is pulling bills to the floor that have not had a public hearing. We did a number of them yesterday. We did not object at that time. This is an opportunity to do that. I think it is a poor public policy to be doing this particularly with bills that have not had a public hearing, period. I am going to raise this objection; I am not necessarily going to vote against this move, because I don't think these bills are detrimental, but I do think it is a very, very poor policy to do this."


REMARKS BY SENATOR RINEHART


    Senator Rinehart: "Thank you, Mr. President. Both of these measures were included in Governor Gardner's budget and were the subject of a hearing before the Ways and Means Committee. Secretary of State Ralph Munro came and testified



on both of these measures, so, while technically it is accurate that these bills separately have not been heard, the content of both of them has been heard in the Ways and Means Committee."

    The President declared the question before the Senate to be the motion by Senator Jesernig that the Committee on Ways and Means be relieved of further consideration of Senate Bill No. 5976 and Senate Bill No. 5977 and that the bills be placed on the second reading calendar.

    The motion by Senator Jesernig carried and Senate Bill No. 5976 and Senate Bill No. 5977 were placed on the second reading calendar.


MOTION


    At 4:12 p.m., on motion of Senator Jesernig, the Senate recessed until 5:15 p.m.


    The Senate was called to order at 6:34 p.m. by President Pritchard.


MOTION


    On motion of Senator Jesernig, the Senate reverted to the third order of business.


MESSAGE FROM THE GOVERNOR


April 19, 1993


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

    I have the honor to advise you that on April 19, 1993, Governor Lowry approved the following Senate Bills entitled:

    Substitute Senate Bill No. 5026

    Relating to regulation of funeral directors, embalmers, and crematories.

    Senate Bill No. 5077

    Relating to survival of actions and damages.

    Engrossed Substitute Senate Bill No. 5110

    Relating to water and sewer districts.

    Senate Bill No. 5112

    Relating to hiring procedures by cities and towns.

    Engrossed Senate Bill No. 5205

    Relating to infant morality review.

    Senate Bill No. 5233

    Relating to costs allowed to a prevailing party.

    Substitute Senate Bill No. 5255

    Relating to escheat lands suitable for operation for park and recreation purposes.

    Substitute Senate Bill No. 5262

    Relating to the beef commission.

    Senate Bill No. 5275

    Relating to abandoned cemeteries.

    Substitute Senate Bill No. 5313

    Relating to surcharges for recording documents.

    Senate Bill No. 5358

    Relating to the creation of an appropriated real estate education account.

    Senate Bill No. 5385

    Relating to creating an appropriated uniform commercial code fund.

    Substitute Senate Bill No. 5386

    Relating to the licensure of home health, hospice, and home care agencies under chapter 70.127 RCW.

    Engrossed Senate Bill No. 5411

    Relating to fuel taxes.

    Engrossed Senate Bill No. 5423

    Relating to development of a public transportation policy plan.

    Substitute Senate Bill No. 5432

    Relating to a study of discrimination based on race and national origin in mortgage lending.

    Senate Bill No. 5444

    Relating to medical assistance coverage of hospice care and services.



    Engrossed Substitute Senate Bill No. 5482

    Relating to mobile home parks.

    Substitute Senate Bill No. 5487

    Relating to agister liens.

    Senate Bill No. 5546

    Relating to unemployment compensation.

    Senate Bill No. 5572

    Relating to the identification of environmental costs for transportation projects.

    Substitute Senate Bill No. 5596

    Relating to warrants redeemed by the state treasurer.

    Senate Bill No. 5693

    Relating to county vehicle license fees.

    Senate Bill No. 5696

    Relating to divisions of the department of retirement systems.

    Senate Bill No. 5703

    Relating to codifying the labor market information and economic analysis responsibilities of the employment security department.

    Engrossed Senate Bill No. 5729

    Relating to the family emergency assistance program.

    Substitute Senate Bill No. 5821

    Relating to the public works board.

    Engrossed Senate Bill No. 5831

    Relating to specifying that payments to building owners authorized under RCW 19.27A.035 are available only if the primary heat source of a structure is electricity.

    Substitute Senate Bill No. 5896

    Relating to public restroom facilities.

    Senate Bill No. 5905

    Relating to the county road administration board.

    Substitute Senate Bill No. 5937

    Relating to inclusion in the statutory seven percent debt limitation of indebtedness for which the state treasury is reimbursed for the principal and interest payments on the indebtedness.

Sincerely,

ED FLEISHER, Legal Counsel to the Governor


MESSAGE FROM THE GOVERNOR


April 19, 1993


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

    I am returning herewith, without my approval, Senate Bill No. 5053 entitled:

"AN ACT Relating to the local vessel excise tax."

    Senate Bill No. 5053 requires counties to contract with the Department of Licensing for the administration and collection of the local vessel excise tax authorized under RCW 82.49.070. Currently, King County is the only county now imposing this tax.

    Sections 38, and 40 through 42 of Substitute House Bill No. 1318, as amended by the Senate, repeal the local vessel excise tax as of June 30, 1994 and replace it with an increase in the state vessel registration fee the proceeds of which will be used for local boating safety, education, and enforcement programs. The Chair of the House Committee on Natural Resources and Parks has recommended that the House Concur in these Senate Amendments to Substitute House Bill 1318 and, along with the Sponsor of Senate Bill No. 5053 and representatives of King County, has communicated a desire for a veto of Senate Bill 5053.

    The Senate amendments to Substitute House Bill No. 1318 will negate the need for the vessel excise tax administration and collection changes intended by Senate Bill No. 5053.

    For this reason, I have vetoed Senate Bill No. 5053 in its entirety.

Respectfully submitted,

MIKE LOWRY, Governor


    Senate Bill No. 5053 was held on the desk.

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


MESSAGES FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

    The Speaker has signed:

    HOUSE BILL NO. 1411,

    SUBSTITUTE HOUSE BILL NO. 1497,

    SUBSTITUTE HOUSE BILL NO. 1508,

    SUBSTITUTE HOUSE BILL NO. 1518,

    HOUSE BILL NO. 1559,

    SUBSTITUTE HOUSE BILL NO. 1582,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1622,

    HOUSE BILL NO. 1646,

    SUBSTITUTE HOUSE BILL NO. 1686,

    HOUSE BILL NO. 1757,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1758,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1760,

    HOUSE BILL NO. 1773,

    SUBSTITUTE HOUSE BILL NO. 1778,

    HOUSE BILL NO. 1815,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1820,

    HOUSE BILL NO. 1864,

    SUBSTITUTE HOUSE BILL NO. 1915,

    HOUSE BILL NO. 1923,

    SUBSTITUTE HOUSE BILL NO. 1926, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


April 19, 1992


MR. PRESIDENT:

    The Speaker has signed:

    SUBSTITUTE SENATE BILL NO. 5556,

    SUBSTITUTE SENATE BILL NO. 5567,

    SUBSTITUTE SENATE BILL NO. 5606,

    SUBSTITUTE SENATE BILL NO. 5612,

    SUBSTITUTE SENATE BILL NO. 5625,

    SUBSTITUTE SENATE BILL NO. 5634,

    ENGROSSED SENATE BILL NO. 5694,

    SUBSTITUTE SENATE BILL NO. 5727,

    SUBSTITUTE SENATE BILL NO. 5751, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


SIGNED BY THE PRESIDENT

    The President signed:

    HOUSE BILL NO. 1411,

    SUBSTITUTE HOUSE BILL NO. 1497,

    SUBSTITUTE HOUSE BILL NO. 1508,

    SUBSTITUTE HOUSE BILL NO. 1518,

    HOUSE BILL NO. 1559,

    SUBSTITUTE HOUSE BILL NO. 1582,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1622,

    HOUSE BILL NO. 1646,

    SUBSTITUTE HOUSE BILL NO. 1686,

    HOUSE BILL NO. 1757,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1758,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1760,

    HOUSE BILL NO. 1773,

    SUBSTITUTE HOUSE BILL NO. 1778,

    HOUSE BILL NO. 1815,

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1820,

    HOUSE BILL NO. 1864,

    SUBSTITUTE HOUSE BILL NO. 1915,

    HOUSE BILL NO. 1923,

    SUBSTITUTE HOUSE BILL NO. 1926.


SIGNED BY THE PRESIDENT

    The President signed:

    SUBSTITUTE SENATE BILL NO. 5332,

    SUBSTITUTE SENATE BILL NO. 5443,

    SENATE BILL NO. 5883,

    SENATE BILL NO. 5903,

    ENGROSSED SUBSTITUTE SENATE BILL NO. 5911,

    SUBSTITUTE SENATE BILL NO. 5913,

    ENGROSSED SENATE BILL NO. 5917,

    SUBSTITUTE SENATE BILL NO. 5922,

    ENGROSSED SUBSTITUTE SENATE JOINT MEMORIAL NO. 8016.

    SENATE JOINT MEMORIAL NO. 8021.


MOTION


    On motion of Senator Oke, Senator Anderson was excused.


MESSAGE FROM THE HOUSE


April 8, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5195 with the following amendment(s):

    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.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    Senator Moore moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5195 and requests of the House a conference thereon.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Moore that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5195 and requests of the House a conference thereon.

    The motion by Senator Moore carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5195 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


    The President appointed as members of the Conference Committee on Substitute Senate Bill No. 5195 and the House amendment thereto: Senators Moore, Amondson and Sheldon.


MOTION


    On motion of Senator Moore, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 15, 1993


MR. PRESIDENT:

    The House has passed ENGROSSED SENATE BILL NO. 5745 with the following amendment(s):

    On page 3, line 30, after "the" strike "PNWER-Networking subgroup" and insert "higher education coordinating board", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    Senator Bauer moved that the Senate refuse to concur in the House amendment to Engrossed Substitute Senate Bill No. 5745 and requests of the House a conference thereon.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Bauer that the Senate refuse to concur in the House amendment to Engrossed Senate Bill No. 5745 and requests of the House a conference thereon.

    The motion by Senator Bauer carried and the Senate refuses to concur in the House amendment to Engrossed Senate Bill No. 5745 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


    The President appointed as members of the Conference Committee on Engrossed Senate Bill No. 5745 and the House amendment thereto: Senators Bauer, Bluechel and Sheldon.


MOTION


    On motion of Senator Bauer, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 17, 1993


MR. PRESIDENT:

    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5948 with following amendment(s):

    Strike everything after the enacting clause and insert the following:

    "Sec. 1. RCW 18.130.090 and 1986 c 259 s 6 are each amended to read as follows:

    (1) If the disciplining authority determines, upon investigation, that there is reason to believe a violation of RCW 18.130.180 has occurred, a statement of charge or charges shall be prepared and served upon the license holder or applicant at the earliest practical time. The statement of charge or charges shall be accompanied by a notice that the license holder or applicant may request a hearing to contest the charge or charges. The license holder or applicant must file a request for hearing with the disciplining authority within twenty days after being served the statement of charges. If the twenty-day limit results in a hardship upon the license holder or applicant, he or she may request for good cause an extension not to exceed sixty additional days. If the disciplining authority finds that there is good cause, it shall grant the extension. The failure to request a hearing constitutes a default, whereupon the disciplining authority may enter a decision on the basis of the facts available to it.

    (2) If a hearing is requested, the time of the hearing shall be fixed by the disciplining authority as soon as convenient, but the hearing shall not be held earlier than thirty days after service of the charges upon the license holder or applicant. ((A notice of hearing shall be issued at least twenty days prior to the hearing, specifying the time, date, and place of the hearing. The notice shall also notify the license holder or applicant that a record of the proceeding will be kept, that he or she will have the opportunity to appear personally and to have counsel present, with the right to produce witnesses, who will be subject to cross-examination, and evidence in his or her own behalf, to cross-examine witnesses testifying against him or her, to examine such documentary evidence as may be produced against him or her, to conduct depositions, and to have subpoenas issued by the disciplining authority.))

    NEW SECTION. Sec. 2. A new section is added to chapter 18.130 RCW to read as follows:

    REQUIRED UNIFORM PROCEDURES. (1) The secretary shall develop uniform procedural rules to respond to public inquiries concerning complaints and their disposition, active investigations, statement of charges, findings of fact, and final orders involving a licensee, applicant, or unlicensed person. The uniform procedural rules adopted under this subsection apply to all adjudicative proceedings conducted under this chapter and shall include provisions for the establishing time lines for discovery, settlement, and scheduling hearings.

    (2) The uniform procedures for conducting investigations shall provide that prior to taking a written statement:

    (a) For violation of this chapter, the investigator shall inform such person, in writing of: (i) The nature of the complaint; (ii) that the person may consult with legal counsel at his or her expense prior to making a statement; and (iii) that any statement that the person makes may be used in an adjudicative proceeding conducted under this chapter; and

    (b) From a witness or potential witness in an investigation under this chapter, the investigator shall inform the person, in writing, that the statement may be released to the licensee, applicant, or unlicensed person under investigation if a statement of charges is issued.

    (3) In order to assure the uniform application of the procedural rules developed by the secretary, the secretary or his or her designee shall serve as presiding officer for all proceedings under this chapter, including those conducted by disciplinary authorities identified in RCW 18.130.040(2)(b), other than the board of funeral directors and embalmers, and shall perform all functions of the presiding officer under chapter 34.05 RCW. In those areas where the disciplining authority is a board, the secretary or his or her designee, shall not vote on the final decision.

    Sec. 3. RCW 18.130.175 and 1991 c 3 s 270 are each amended to read as follows:

    (1) In lieu of disciplinary action under RCW 18.130.160 and if the disciplining authority determines that the unprofessional conduct may be the result of substance abuse, the disciplining authority may refer the license holder to a voluntary substance abuse monitoring program approved by the disciplining authority.

    The cost of the treatment shall be the responsibility of the license holder, but the responsibility does not preclude payment by an employer, existing insurance coverage, or other sources. Primary alcoholism or drug treatment shall be provided by approved treatment ((facilities)) programs under RCW ((70.96A.020(2))) 70.96A.020: PROVIDED, That nothing shall prohibit the disciplining authority from approving additional services and programs as an adjunct to primary alcoholism or drug treatment. The disciplining authority may also approve the use of out-of-state programs. Referral of the license holder to the program shall be done only with the consent of the license holder. Referral to the program may also include probationary conditions for a designated period of time. If the license holder does not consent to be referred to the program or does not successfully complete the program, the disciplining authority may take appropriate action under RCW 18.130.160. The secretary shall adopt uniform rules for the evaluation by the disciplinary authority of a relapse or program violation on the part of a license holder in the substance abuse monitoring program. The evaluation shall encourage program participation with additional conditions, in lieu of disciplinary action, when the disciplinary authority determines that the license holder is able to continue to practice with reasonable skill and safety.

    (2) In addition to approving substance abuse monitoring programs that may receive referrals from the disciplining authority, the disciplining authority may establish by rule requirements for participation of license holders who are not being investigated or monitored by the disciplining authority for substance abuse. License holders voluntarily participating in the approved programs without being referred by the disciplining authority shall not be subject to disciplinary action under RCW 18.130.160 for their substance abuse, and shall not have their participation made known to the disciplining authority, if they meet the requirements of this section and the program in which they are participating.

    (3) The license holder shall sign a waiver allowing the program to release information to the disciplining authority if the licensee does not comply with the requirements of this section or is unable to practice with reasonable skill or safety. The substance abuse program shall report to the disciplining authority any license holder who fails to comply with the requirements of this section or the program or who, in the opinion of the program, is unable to practice with reasonable skill or safety. License holders shall report to the disciplining authority if they fail to comply with this section or do not complete the program's requirements. License holders may, upon the agreement of the program and disciplining authority, reenter the program if they have previously failed to comply with this section.

    (4) The treatment and pretreatment records of license holders referred to or voluntarily participating in approved programs shall be confidential, shall be exempt from RCW 42.17.250 through 42.17.450, and shall not be subject to discovery by subpoena or admissible as evidence except for monitoring records reported to the disciplining authority for cause as defined in subsection (3) of this section. Monitoring records relating to license holders referred to the program by the disciplining authority or relating to license holders reported to the disciplining authority by the program for cause, shall be released to the disciplining authority at the request of the disciplining authority. Records held by the disciplining authority under this section shall be exempt from RCW 42.17.250 through 42.17.450 and shall not be subject to discovery by subpoena except by the license holder.

    (5) "Substance abuse," as used in this section, means the impairment, as determined by the disciplining authority, of a license holder's professional services by an addiction to, a dependency on, or the use of alcohol, legend drugs, or controlled substances.

    (6) This section does not affect an employer's right or ability to make employment-related decisions regarding a license holder. This section does not restrict the authority of the disciplining authority to take disciplinary action for any other unprofessional conduct.

    (7) A person who, in good faith, reports information or takes action in connection with this section is immune from civil liability for reporting information or taking the action.

    (a) The immunity from civil liability provided by this section shall be liberally construed to accomplish the purposes of this section and the persons entitled to immunity shall include:

    (i) An approved monitoring treatment program;

    (ii) The professional association operating the program;

    (iii) Members, employees, or agents of the program or association;

    (iv) Persons reporting a license holder as being impaired or providing information about the license holder's impairment; and

    (v) Professionals supervising or monitoring the course of the impaired license holder's treatment or rehabilitation.

    (b) The immunity provided in this section is in addition to any other immunity provided by law.

    (((8) In addition to health care professionals governed by this chapter, this section also applies to pharmacists under chapter 18.64 RCW and pharmacy assistants under chapter 18.64A RCW. For that purpose, the board of pharmacy shall be deemed to be the disciplining authority and the substance abuse monitoring program shall be in lieu of disciplinary action under RCW 18.64.160 or 18.64A.050. The board of pharmacy shall adjust license fees to offset the costs of this program.))

    Sec. 4. RCW 18.130.040 and 1992 c 128 s 6 are each amended to read as follows:

    (1) This chapter applies only to the secretary and the boards having jurisdiction in relation to the professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.

    (2)(a) The secretary has authority under this chapter in relation to the following professions:

    (i) Dispensing opticians licensed under chapter 18.34 RCW;

    (ii) Naturopaths licensed under chapter 18.36A RCW;

    (iii) Midwives licensed under chapter 18.50 RCW;

    (iv) Ocularists licensed under chapter 18.55 RCW;

    (v) Massage operators and businesses licensed under chapter 18.108 RCW;

    (vi) Dental hygienists licensed under chapter 18.29 RCW;

    (vii) Acupuncturists certified under chapter 18.06 RCW;

    (viii) Radiologic technologists certified under chapter 18.84 RCW;

    (ix) Respiratory care practitioners certified under chapter 18.89 RCW;

    (x) Persons registered or certified under chapter 18.19 RCW;

    (xi) Persons registered as nursing pool operators;

    (xii) Nursing assistants registered or certified under chapter ((18.52B)) 18.88A RCW;

    (xiii) Health care assistants certified under chapter 18.135 RCW;

    (xiv) Dietitians and nutritionists certified under chapter 18.138 RCW;

    (((xiv))) (xv) Sex offender treatment providers certified under chapter 18.155 RCW; and

    (((xv))) (xvi) Persons licensed and certified under chapter 18.73 RCW or RCW 18.71.205.

    (b) The boards having authority under this chapter are as follows:

    (i) The podiatric medical board as established in chapter 18.22 RCW;

    (ii) The chiropractic disciplinary board as established in chapter 18.26 RCW governing licenses issued under chapter 18.25 RCW;

    (iii) The dental disciplinary board as established in chapter 18.32 RCW;

    (iv) The council on hearing aids as established in chapter 18.35 RCW;

    (v) The board of funeral directors and embalmers as established in chapter 18.39 RCW;

    (vi) The board of examiners for nursing home administrators as established in chapter 18.52 RCW;

    (vii) The optometry board as established in chapter 18.54 RCW governing licenses issued under chapter 18.53 RCW;

    (viii) The board of osteopathic medicine and surgery as established in chapter 18.57 RCW governing licenses issued under chapters 18.57 and 18.57A RCW;

    (ix) The board of pharmacy as established in chapter 18.64 RCW governing licenses issued under chapters 18.64 and 18.64A RCW;

    (x) The medical disciplinary board as established in chapter 18.72 RCW governing licenses and registrations issued under chapters 18.71 and 18.71A RCW;

    (((x))) (xi) The board of physical therapy as established in chapter 18.74 RCW;

    (((xi))) (xii) The board of occupational therapy practice as established in chapter 18.59 RCW;

    (((xii))) (xiii) The board of practical nursing as established in chapter 18.78 RCW;

    (((xiii))) (xiv) The examining board of psychology and its disciplinary committee as established in chapter 18.83 RCW;

    (((xiv))) (xv) The board of nursing as established in chapter 18.88 RCW; and

    (((xv))) (xvi) The veterinary board of governors as established in chapter 18.92 RCW.

    (3) In addition to the authority to discipline license holders, the disciplining authority has the authority to grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. However, the board of chiropractic examiners has authority over issuance and denial of licenses provided for in chapter 18.25 RCW, the board of dental examiners has authority over issuance and denial of licenses provided for in RCW 18.32.040, and the board of medical examiners has authority over issuance and denial of licenses and registrations provided for in chapters 18.71 and 18.71A RCW. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered pursuant to RCW 18.130.160 by the disciplining authority.

    Sec. 5. RCW 18.130.050 and 1987 c 150 s 2 are each amended to read as follows:

    The disciplining authority has the following authority:

    (1) To adopt, amend, and rescind such rules as are deemed necessary to carry out this chapter;

    (2) To investigate all complaints or reports of unprofessional conduct as defined in this chapter and to hold hearings as provided in this chapter;

    (3) To issue subpoenas and administer oaths in connection with any investigation, hearing, or proceeding held under this chapter;

    (4) To take or cause depositions to be taken and use other discovery procedures as needed in any investigation, hearing, or proceeding held under this chapter;

    (5) To compel attendance of witnesses at hearings;

    (6) In the course of investigating a complaint or report of unprofessional conduct, to conduct practice reviews;

    (7) To take emergency action ordering summary suspension of a license, or restriction or limitation of the licensee's practice pending proceedings by the disciplining authority;

    (8) To use the office of administrative hearings as authorized in chapter 34.12 RCW to conduct hearings. However, the disciplining authority shall make the final decision regarding disposition of the license;

    (9) To use individual members of the boards to direct investigations. However, the member of the board shall not subsequently participate in the hearing of the case;

    (10) To enter into contracts for professional services determined to be necessary for adequate enforcement of this chapter;

    (11) To contract with licensees or other persons or organizations to provide services necessary for the monitoring and supervision of licensees who are placed on probation, whose professional activities are restricted, or who are for any authorized purpose subject to monitoring by the disciplining authority;

    (12) To adopt standards of professional conduct or practice;

    (13) To grant or deny license applications, and in the event of a finding of unprofessional conduct by an applicant or license holder, to impose any sanction against a license applicant or license holder provided by this chapter;

    (14) ((To enter into an assurance of discontinuance in lieu of issuing a statement of charges or conducting a hearing. The assurance shall consist of a statement of the law in question and an agreement to not violate the stated provision. The applicant or license holder shall not be required to admit to any violation of the law, nor shall the assurance be construed as such an admission. Violation of an assurance under this subsection is grounds for disciplinary action;

    (15))) To designate individuals authorized to sign subpoenas and statements of charges.

    Sec. 6. RCW 18.130.160 and 1986 c 259 s 8 are each amended to read as follows:

    Upon a finding, after hearing, that a license holder or applicant has committed unprofessional conduct or is unable to practice with reasonable skill and safety due to a physical or mental condition, the disciplining authority may issue an order providing for one or any combination of the following:

    (1) Revocation of the license;

    (2) Suspension of the license for a fixed or indefinite term;

    (3) Restriction or limitation of the practice;

    (4) Requiring the satisfactory completion of a specific program of remedial education or treatment;

    (5) The monitoring of the practice by a supervisor approved by the disciplining authority;

    (6) Censure or reprimand;

    (7) Compliance with conditions of probation for a designated period of time;

    (8) Payment of a fine for each violation of this chapter, not to exceed ((one)) five thousand dollars per violation. Funds received shall be placed in the health professions account;

    (9) Denial of the license request;

    (10) Corrective action;

    (11) Refund of fees billed to and collected from the consumer.

    Any of the actions under this section may be totally or partly stayed by the disciplining authority. In determining what action is appropriate, the disciplining authority must first consider what sanctions are necessary to protect or compensate the public. Only after such provisions have been made may the disciplining authority consider and include in the order requirements designed to rehabilitate the license holder or applicant. All costs associated with compliance with orders issued under this section are the obligation of the license holder or applicant.

    The licensee or applicant may enter into a stipulated disposition of charges that includes one or more of the sanctions of this section, but only after a statement of charges has been issued and the licensee has been afforded the opportunity for a hearing and has elected on the record to forego such a hearing. The stipulation shall either contain one or more specific findings of unprofessional conduct or inability to practice, or a statement by the licensee acknowledging that evidence is sufficient to justify one or more specified findings of unprofessional conduct or inability to practice. The stipulation entered into pursuant to this subsection shall be considered formal disciplinary action for all purposes.

    NEW SECTION. Sec. 7. A new section is added to chapter 18.130 RCW to read as follows:

    (1) Prior to serving a statement of charges under RCW 18.130.090 or 18.130.170, the disciplinary authority may furnish a statement of allegations to the licensee or applicant along with a detailed summary of the evidence relied upon to establish the allegations and a proposed stipulation for informal resolution of the allegations. These documents shall be exempt from public disclosure until such time as the allegations are resolved either by stipulation or otherwise.

    (2) The disciplinary authority and the applicant or licensee may stipulate that the allegations may be disposed of informally in accordance with this subsection. The stipulation shall contain a statement of the facts leading to the filing of the complaint; the act or acts of unprofessional conducted alleged to have been committed or the alleged basis for determining that the applicant or licensee is unable to practice with reasonable skill and safety; a statement that the stipulation is not to be construed as a finding of either unprofessional conduct or inability to practice; an acknowledgement that a finding of unprofessional conduct or inability to practice, if proven, constitutes grounds for discipline under this chapter; and an agreement on the part of the licensee or applicant that the sanctions set forth in RCW 18.130.160, except RCW 18.130.160 (1), (2), (6), and (8), may be imposed as part of the stipulation, except that no fine may be imposed but the licensee or applicant may agree to reimburse the disciplinary authority the costs of investigation and processing the complaint up to an amount not exceeding one thousand dollars per allegation; and an agreement on the part of the disciplinary authority to forego further disciplinary proceedings concerning the allegations. A stipulation entered into pursuant to this subsection shall not be considered formal disciplinary action.

    (3) If the licensee or applicant declines to agree to disposition of the charges by means of a stipulation pursuant to subsection (2) of this section, the disciplinary authority may proceed to formal disciplinary action pursuant to RCW 18.130.090 or 18.130.170.

    (4) Upon execution of a stipulation under subsection (2) of this section by both the licensee or applicant and the disciplinary authority, the complaint is deemed disposed of and shall become subject to public disclosure on the same basis and to the same extent as other records of the disciplinary authority. Should the licensee or applicant fail to pay any agreed reimbursement within thirty days of the date specified in the stipulation for payment, the disciplinary authority may seek collection of the amount agreed to be paid in the same manner as enforcement of a fine under RCW 18.130.165.

    Sec. 8. RCW 18.130.185 and 1987 c 150 s 8 are each amended to read as follows:

    If a person or business regulated by this chapter violates RCW 18.130.170 or 18.130.180, the attorney general, any prosecuting attorney, the ((director)) secretary, the board, or any other person may maintain an action in the name of the state of Washington to enjoin the person from committing the violations. The injunction shall not relieve the offender from criminal prosecution, but the remedy by injunction shall be in addition to the liability of the offender to criminal prosecution and disciplinary action.

    Sec. 9. RCW 18.130.186 and 1989 c 125 s 3 are each amended to read as follows:

    (1) To implement a substance abuse monitoring program for license holders specified under RCW 18.130.040, who are impaired by substance abuse, the disciplinary authority may enter into a contract with a voluntary substance abuse program under RCW 18.130.175. The program may include any or all of the following:

    (a) Contracting with providers of treatment programs;

    (b) Receiving and evaluating reports of suspected impairment from any source;

    (c) Intervening in cases of verified impairment;

    (d) Referring impaired license holders to treatment programs;

    (e) Monitoring the treatment and rehabilitation of impaired license holders including those ordered by the disciplinary authority;

    (f) Providing education, prevention of impairment, posttreatment monitoring, and support of rehabilitated impaired license holders; and

    (g) Performing other activities as agreed upon by the disciplinary authority.

    (2) A contract entered into under subsection (1) of this section may be financed by a surcharge on each license issuance or renewal to be collected by the department of ((licensing)) health from the license holders of the same regulated health profession. These moneys shall be placed in the health professions account to be used solely for the implementation of the program.

    Sec. 10. RCW 18.130.300 and 1984 c 279 s 21 are each amended to read as follows:

    The ((director)) secretary, members of the boards, or individuals acting on their behalf are immune from suit in any action, civil or criminal, based on any disciplinary proceedings or other official acts performed in the course of their duties.

    Sec. 11. RCW 18.135.070 and 1984 c 281 s 7 are each amended to read as follows:

    The licensing authority of health care facilities or the ((disciplinary board)) disciplining authority of the delegating or supervising health care practitioner shall investigate all complaints or allegations of violations of proper certification of a health care assistant or violations of delegation of authority or supervision. A substantiated violation shall constitute sufficient cause for disciplinary action by the licensing authority of a health care facility or the ((disciplinary board)) disciplining authority of the health care practitioner.

    NEW SECTION. Sec. 12. A new section is added to chapter 18.135 RCW to read as follows:

    The uniform disciplinary act, chapter 18.130 RCW, governs uncertified practice, the issuance and denial of certificates, and the discipline of certificate holders under this chapter. The secretary shall be the disciplining authority under this chapter.

    Sec. 13. RCW 18.64.160 and 1985 c 7 s 60 are each amended to read as follows:

    In addition to the grounds under RCW 18.130.170 and 18.130.180, the board of pharmacy ((shall have the power to refuse, suspend, or revoke)) may take disciplinary action against the license of any pharmacist or intern upon proof that:

    (1) His or her license was procured through fraud, misrepresentation, or deceit;

    (2) ((He or she has been convicted of a felony relating to his or her practice as a pharmacist;

    (3) He or she has committed any act involving moral turpitude, dishonesty, or corruption, if the act committed directly relates to the pharmacist's fitness to practice pharmacy. Upon such conviction, however, the judgment and sentence shall be conclusive evidence at the ensuing disciplinary hearing of the guilt of the respondent pharmacist of the crime described in the indictment or information, and of his or her violation of the statute upon which it is based;

    (4) He or she is unfit to practice pharmacy because of habitual intemperance in the use of alcoholic beverages, drugs, controlled substances, or any other substance which impairs the performance of professional duties;

    (5) He or she exhibits behavior which may be due to physical or mental impairment, which creates an undue risk of causing harm to him or herself or to other persons when acting as a licensed pharmacist or intern;

    (6) He or she has incompetently or negligently practiced pharmacy, creating an unreasonable risk of harm to any individual;

    (7) His or her legal authority to practice pharmacy, issued by any other properly constituted licensing authority of any other state, has been and is currently suspended or revoked;

    (8))) In the event that a pharmacist is determined by a court of competent jurisdiction to be mentally incompetent, the pharmacist shall automatically have his or her license suspended by the board upon the entry of the judgment, regardless of the pendency of an appeal;

     (((9))) (3) He or she has knowingly violated or permitted the violation of any provision of any state or federal law, rule, or regulation governing the possession, use, distribution, or dispensing of drugs, including, but not limited to, the violation of any provision of this chapter, Title 69 RCW, or rule or regulation of the board;

     (((10))) (4) He or she has knowingly allowed any unlicensed person to take charge of a pharmacy or engage in the practice of pharmacy, except a pharmacy intern or pharmacy assistant acting as authorized in this chapter or chapter 18.64A RCW in the presence of and under the immediate supervision of a licensed pharmacist;

     (((11))) (5) He or she has compounded, dispensed, or caused the compounding or dispensing of any drug or device which contains more or less than the equivalent quantity of ingredient or ingredients specified by the person who prescribed such drug or device: PROVIDED, HOWEVER, That nothing herein shall be construed to prevent the pharmacist from exercising professional judgment in the preparation or providing of such drugs or devices.

    ((In any case of the refusal, suspension, or revocation of a license by said board of pharmacy under the provisions of this chapter, said board shall proceed in accordance with chapter 34.05 RCW.))

    NEW SECTION. Sec. 14. A new section is added to chapter 18.64 RCW to read as follows:

    The uniform disciplinary act, chapter 18.130 RCW, governs unlicensed practice, the issuance and denial of licenses of pharmacists and pharmacy interns, and the discipline of licensed pharmacists and pharmacy interns under this chapter.

    Sec. 15. RCW 18.64A.050 and 1989 1st ex.s. c 9 s 424 are each amended to read as follows:

    In addition to the grounds under RCW 18.130.170 and 18.130.180, the board of pharmacy ((shall have the power to refuse, suspend, or revoke)) may take disciplinary action against the certificate of any pharmacy assistant upon proof that:

    (1) His or her certificate was procured through fraud, misrepresentation or deceit;

    (2) He or she has been found guilty of any offense in violation of the laws of this state relating to drugs, poisons, cosmetics or drug sundries by any court of competent jurisdiction. Nothing herein shall be construed to affect or alter the provisions of RCW 9.96A.020;

    (3) ((He or she is unfit to perform his or her duties because of habitual intoxication or abuse of controlled substances;

    (4))) He or she has exhibited gross incompetency in the performance of his or her duties;

    (((5))) (4) He or she has willfully or repeatedly violated any of the rules and regulations of the board of pharmacy or of the department;

    (((6))) (5) He or she has willfully or repeatedly performed duties beyond the scope of his or her certificate in violation of the provisions of this chapter; or

    (((7))) (6) He or she has impersonated a licensed pharmacist.

    ((In any case of the refusal, suspension or revocation of a certificate by the board, a hearing shall be conducted in accordance with RCW 18.64.160, as now or hereafter amended, and appeal may be taken in accordance with the Administrative Procedure Act, chapter 34.05 RCW.))

    NEW SECTION. Sec. 16. A new section is added to chapter 18.64A RCW to read as follows:

    The uniform disciplinary act, chapter 18.130 RCW, governs the issuance and denial of certificates and the discipline of certificants under this chapter.

    Sec. 17. RCW 18.72.340 and 1986 c 300 s 6 are each amended to read as follows:

    (1) Every institution or organization providing professional liability insurance to physicians shall send a complete report to the medical disciplinary board of all malpractice settlements, awards, or payments in excess of twenty thousand dollars as a result of a claim or action for damages alleged to have been caused by an insured physician's incompetency or negligence in the practice of medicine. Such institution or organization shall also report the award, settlement, or payment of three or more claims during a ((year)) five-year time period as the result of the alleged physician's incompetence or negligence in the practice of medicine regardless of the dollar amount of the award or payment.

    (2) Reports required by this section shall be made within sixty days of the date of the settlement or verdict. Failure to comply with this section is punishable by a civil penalty not to exceed two hundred fifty dollars.

    Sec. 18. RCW 18.72.380 and 1991 c 3 s 170 are each amended to read as follows:

    There is hereby levied to be collected by the department of health from every physician and surgeon licensed pursuant to chapter 18.71 RCW and every physician assistant licensed pursuant to chapter 18.71A RCW an annual medical disciplinary assessment equal to the license renewal fee established under RCW 43.70.250. The assessment levied pursuant to this ((subsection)) section is in addition to any license renewal fee established under RCW 43.70.250.

    Sec. 19. RCW 18.130.190 and 1991 c 3 s 271 are each amended to read as follows:

    (1) The secretary shall investigate complaints concerning practice by unlicensed persons of a profession or business for which a license is required by the chapters specified in RCW 18.130.040. In the investigation of the complaints, the secretary shall have the same authority as provided the secretary under RCW 18.130.050. ((The secretary shall issue a cease and desist order to a person after notice and hearing and upon a determination that the person has violated this subsection.))

    (2) The secretary may issue a notice of intention to issue a cease and desist order to any person whom the secretary has reason to believe is engaged in the unlicensed practice of a profession or business for which a license is required by the chapters specified in RCW 18.130.040. The person to whom such notice is issued may request an adjudicative proceeding to contest the charges. The request for hearing must be filed within twenty days after service of the notice of intention to issue a cease and desist order. The failure to request a hearing constitutes a default, whereupon the secretary may enter a permanent cease and desist order, which may include a civil fine. All proceedings shall be conducted in accordance with chapter 34.05 RCW.

    (3) If the secretary makes a final determination that a person has engaged or is engaging in unlicensed practice, the secretary may issue a cease and desist order. In addition, the secretary may impose a civil fine in an amount not exceeding one thousand dollars for each day upon which the person engaged in unlicensed practice of a business or profession for which a license is required by one or more of the chapters specified in RCW 18.130.040. The proceeds of such fines shall be deposited to the health professions account.

    (4) If the secretary makes a written finding of fact that the public interest will be irreparably harmed by delay in issuing an order, the secretary may issue a temporary cease and desist order. The person receiving a temporary cease and desist order shall be provided an opportunity for a prompt hearing. The temporary cease and desist order shall remain in effect until further order of the secretary. The failure to request a prompt or regularly scheduled hearing constitutes a default, whereupon the secretary may enter a permanent cease and desist order, which may include a civil fine.

    (5) Neither the issuance of a cease and desist order nor payment of a civil fine shall ((not)) relieve the person so practicing or operating a business without a license from criminal prosecution therefor, but the remedy of a cease and desist order or civil fine shall be in addition to any criminal liability. The cease and desist order is conclusive proof of unlicensed practice and may be enforced under RCW 7.21.060. This method of enforcement of the cease and desist order or civil fine may be used in addition to, or as an alternative to, any provisions for enforcement of agency orders set out in chapter 34.05 RCW.

    (((2))) (6) The attorney general, a county prosecuting attorney, the secretary, a board, or any person may in accordance with the laws of this state governing injunctions, maintain an action in the name of this state to enjoin any person practicing a profession or business for which a license is required by the chapters specified in RCW 18.130.040 without a license from engaging in such practice or operating such business until the required license is secured. However, the injunction shall not relieve the person so practicing or operating a business without a license from criminal prosecution therefor, but the remedy by injunction shall be in addition to any criminal liability.

    (((3))) (7) Unlicensed practice of a profession or operating a business for which a license is required by the chapters specified in RCW 18.130.040, unless otherwise exempted by law, constitutes a gross misdemeanor. All fees, fines, forfeitures, and penalties collected or assessed by a court because of a violation of this section shall be remitted to the health professions account.

    Sec. 20. RCW 18.130.165 and 1987 c 150 s 4 are each amended to read as follows:

    Where an order for payment of a fine is made as a result of a hearing under RCW 18.130.100 or 18.130.190 and timely payment is not made as directed in the final order, the disciplining authority may enforce the order for payment in the superior court in the county in which the hearing was held. This right of enforcement shall be in addition to any other rights the disciplining authority may have as to any licensee ordered to pay a fine but shall not be construed to limit a licensee's ability to seek judicial review under RCW 18.130.140.

    In any action for enforcement of an order of payment of a fine, the disciplining authority's order is conclusive proof of the validity of the order of payment of a fine and the terms of payment.

    Sec. 21. RCW 18.130.050 and 1987 c 150 s 2 are each amended to read as follows:

    The disciplining authority has the following authority:

    (1) To adopt, amend, and rescind such rules as are deemed necessary to carry out this chapter;

    (2) To investigate all complaints or reports of unprofessional conduct as defined in this chapter and to hold hearings as provided in this chapter;

    (3) To issue subpoenas and administer oaths in connection with any investigation, hearing, or proceeding held under this chapter;

    (4) To take or cause depositions to be taken and use other discovery procedures as needed in any investigation, hearing, or proceeding held under this chapter;

    (5) To compel attendance of witnesses at hearings;

    (6) In the course of investigating a complaint or report of unprofessional conduct, to conduct practice reviews;

    (7) To take emergency action ordering summary suspension of a license, or restriction or limitation of the licensee's practice pending proceedings by the disciplining authority;

    (8) To use the office of administrative hearings as authorized in chapter 34.12 RCW to conduct hearings. However, the disciplining authority shall make the final decision regarding disposition of the license;

    (9) To use individual members of the boards to direct investigations. However, the member of the board shall not subsequently participate in the hearing of the case;

    (10) To enter into contracts for professional services determined to be necessary for adequate enforcement of this chapter;

    (11) To contract with licensees or other persons or organizations to provide services necessary for the monitoring and supervision of licensees who are placed on probation, whose professional activities are restricted, or who are for any authorized purpose subject to monitoring by the disciplining authority;

    (12) To adopt standards of professional conduct or practice;

    (13) To grant or deny license applications, and in the event of a finding of unprofessional conduct by an applicant or license holder, to impose any sanction against a license applicant or license holder provided by this chapter;

    (14) To enter into an assurance of discontinuance in lieu of issuing a statement of charges or conducting a hearing. The assurance shall consist of a statement of the law in question and an agreement to not violate the stated provision. The applicant or license holder shall not be required to admit to any violation of the law, nor shall the assurance be construed as such an admission. Violation of an assurance under this subsection is grounds for disciplinary action;

    (15) To designate individuals authorized to sign subpoenas and statements of charges;

    (16) To establish panels consisting of three or more members of the board to perform any duty or authority within the board's jurisdiction under this chapter;

    (17) To review and audit the records of licensed health facilities' or services' quality assurance committee decisions in which a licensee's practice privilege or employment is terminated or restricted. Each health facility or service shall produce and make accessible to the disciplining authority the appropriate records and otherwise facilitate the review and audit. Information so gained shall not be subject to discovery or introduction into evidence in any civil action pursuant to RCW 70.41.200(3).

    Sec. 22. RCW 18.130.180 and 1991 c 332 s 34 and 1991 c 215 c 3 are each reenacted and amended to read as follows:

    The following conduct, acts, or conditions constitute unprofessional conduct for any license holder or applicant under the jurisdiction of this chapter:

    (1) The commission of any act involving moral turpitude, dishonesty, or corruption relating to the practice of the person's profession, whether the act constitutes a crime or not. If the act constitutes a crime, conviction in a criminal proceeding is not a condition precedent to disciplinary action. Upon such a conviction, however, the judgment and sentence is conclusive evidence at the ensuing disciplinary hearing of the guilt of the license holder or applicant of the crime described in the indictment or information, and of the person's violation of the statute on which it is based. For the purposes of this section, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for the conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;

    (2) Misrepresentation or concealment of a material fact in obtaining a license or in reinstatement thereof;

    (3) All advertising which is false, fraudulent, or misleading;

    (4) Incompetence, negligence, or malpractice which results in injury to a patient or which creates an unreasonable risk that a patient may be harmed. The use of a nontraditional treatment by itself shall not constitute unprofessional conduct, provided that it does not result in injury to a patient or create an unreasonable risk that a patient may be harmed;

    (5) Suspension, revocation, or restriction of the individual's license to practice the profession by competent authority in any state, federal, or foreign jurisdiction, a certified copy of the order, stipulation, or agreement being conclusive evidence of the revocation, suspension, or restriction;

    (6) The possession, use, prescription for use, or distribution of controlled substances or legend drugs in any way other than for legitimate or therapeutic purposes, diversion of controlled substances or legend drugs, the violation of any drug law, or prescribing controlled substances for oneself;

    (7) Violation of any state or federal statute or administrative rule regulating the profession in question, including any statute or rule defining or establishing standards of patient care or professional conduct or practice;

    (8) Failure to cooperate with the disciplining authority by:

    (a) Not furnishing any papers or documents;

    (b) Not furnishing in writing a full and complete explanation covering the matter contained in the complaint filed with the disciplining authority; or

    (c) Not responding to subpoenas issued by the disciplining authority, whether or not the recipient of the subpoena is the accused in the proceeding;

    (9) Failure to comply with an order issued by the ((disciplining)) disciplinary authority or ((an assurance of discontinuance)) a stipulation for informal disposition entered into with the ((disciplining)) disciplinary authority;

    (10) Aiding or abetting an unlicensed person to practice when a license is required;

    (11) Violations of rules established by any health agency;

    (12) Practice beyond the scope of practice as defined by law or rule;

    (13) Misrepresentation or fraud in any aspect of the conduct of the business or profession;

    (14) Failure to adequately supervise auxiliary staff to the extent that the consumer's health or safety is at risk;

    (15) Engaging in a profession involving contact with the public while suffering from a contagious or infectious disease involving serious risk to public health;

    (16) Promotion for personal gain of any unnecessary or inefficacious drug, device, treatment, procedure, or service;

    (17) Conviction of any gross misdemeanor or felony relating to the practice of the person's profession. For the purposes of this subsection, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;

    (18) The procuring, or aiding or abetting in procuring, a criminal abortion;

    (19) The offering, undertaking, or agreeing to cure or treat disease by a secret method, procedure, treatment, or medicine, or the treating, operating, or prescribing for any health condition by a method, means, or procedure which the licensee refuses to divulge upon demand of the disciplining authority;

    (20) The willful betrayal of a practitioner-patient privilege as recognized by law;

    (21) Violation of chapter 19.68 RCW;

    (22) Interference with an investigation or disciplinary proceeding by willful misrepresentation of facts before the disciplining authority or its authorized representative, or by the use of threats or harassment against any patient or witness to prevent them from providing evidence in a disciplinary proceeding or any other legal action;

    (23) Current misuse of:

    (a) Alcohol;



    (b) Controlled substances; or

    (c) Legend drugs;

    (24) Abuse of a client or patient or sexual contact with a client or patient;

    (25) Acceptance of more than a nominal gratuity, hospitality, or subsidy offered by a representative or vendor of medical or health-related products or services intended for patients, in contemplation of a sale or for use in research publishable in professional journals, where a conflict of interest is presented, as defined by rules of the disciplining authority, in consultation with the department, based on recognized professional ethical standards.

    NEW SECTION. Sec. 23. The following acts or parts of acts are each repealed:

    (1) RCW 18.135.080 and 1991 c 3 s 277 & 1984 c 281 s 8;

    (2) RCW 18.64.260 and 1987 c 202 s 184, 1969 ex.s. c 199 s 17, 1909 c 213 s 9, & 1899 c 121 s 17; and

    (3) RCW 18.71A.070 and 1990 c 196 s 7, 1979 c 158 s 58, & 1975 1st ex.s. c 190 s 3.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Talmadge, the Senate refuses to concur in the House amendment to Engrossed Substitute Senate Bill No. 5948 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


    The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 5948 and the House amendment thereto: Senators Talmadge, Deccio and Niemi.


MOTION


    On motion of Senator Talmadge, the Conference Committee appointments were confirmed.


MOTIONS


    On motion of Senator Spanel, Senator Haugen was excused.

    On motion of Senator Drew, Senator Vognild was excused.


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5186 with following amendment(s):

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. A new section is added to chapter 9A.40 RCW to read as follows:

    A person commits the crime of luring if the person:

    (1)(a) Orders, lures, or attempts to lure a minor or developmentally disabled person into a structure that is obscured from or inaccessible to the public or into a motor vehicle;

    (b) Does not have the consent of the minor's parent or guardian or the developmentally disabled person's guardian; and

    (c) Is unknown to the child or developmentally disabled person.

    (2) It is a defense to luring, which the defendant must prove by a preponderance of the evidence, that the defendant's actions were reasonable under the circumstances and the defendant did not have any intent to harm the health, safety, or welfare of the minor or developmentally disabled person.

    (3) For purposes of this section:

    (a) "Minor" means a person under the age of sixteen;

    (b) "Developmentally disabled person" means a person with a developmental disability as defined in RCW 71A.10.020.

    (4) Luring is a class C felony.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Adam Smith, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5186.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5186, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5186, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

    Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 44.

    Absent: Senator Smith, L. - 1.

    Excused: Senators Anderson, Haugen, Roach and Vognild - 4.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 5186, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 13, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5025 with following amendment(s):

    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., and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Owen, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5025.


MOTION


    On motion of Senator Oke, Senators Deccio, McCaslin and Linda Smith were excused.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5025, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5025, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 38; Nays, 4; Absent, 0; Excused, 7.

    Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, von Reichbauer, West, Williams, Winsley and Wojahn - 38.

    Voting nay: Senators Barr, Niemi, Prentice and Talmadge - 4.

    Excused: Senators Anderson, Deccio, Haugen, McCaslin, Roach, Smith, L. and Vognild - 7.

    SUBSTITUTE SENATE BILL NO. 5025, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.



MOTION


    On motion of Senator Oke, Senator Amondson was excused.


MESSAGE FROM THE HOUSE


April 13, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5056 with following amendment(s):

    On page 1, beginning on line 10, strike the remainder of the bill and insert:

    "NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definition in this section applies throughout this chapter.

    "Marine aquatic plants" means saltwater marine plant species that are dependent upon the marine aquatic or tidal environment, and exist in either an attached or free-floating state. Marine aquatic plants include but are not limited to seaweed of the classes Chlorophyta, Phaeophyta, and Rhodophyta.

    NEW SECTION. Sec. 3. The maximum daily wet weight harvest or possession of seaweed for personal use from all private and public tidelands and state bedlands is ten pounds per person. The department of natural resources in cooperation with the department of fisheries may establish seaweed harvest limits of less than ten pounds for conservation purposes. This section shall in no way affect the ability of any state agency to prevent harvest of any species of marine aquatic plant from lands under its control, ownership, or management.

    NEW SECTION. Sec. 4. A violation of section 3 of this act is an infraction under chapter 7.84 RCW, punishable by a penalty of one hundred dollars.

    NEW SECTION. Sec. 5. The department of fisheries may enforce the provisions of sections 3 and 4 of this act.

    NEW SECTION. Sec. 6. Section 3 of this act does not apply to commercial harvest of marine aquatic plants.

    Sec. 7. RCW 75.10.010 and 1985 c 155 s 1 are amended to read as follows:

    (1) Fisheries patrol officers and ex officio fisheries patrol officers within their respective jurisdictions, shall enforce this title, rules of the director, and other statutes as prescribed by the legislature.

    (2) When acting within the scope of subsection (1) of this section and when an offense occurs in the presence of the fisheries patrol officer who is not an ex officio fisheries patrol officer, the fisheries patrol officer may enforce all criminal laws of the state. The fisheries patrol officer must have successfully completed the basic law enforcement academy course sponsored by the criminal justice training commission, or a supplemental course in criminal law enforcement as approved by the department and the criminal justice training commission and provided by the department or the criminal justice training commission, prior to enforcing the criminal laws of the state.

    (3) Any liability or claim of liability which arises out of the exercise or alleged exercise of authority by a fisheries patrol officer rests with the department of fisheries unless the fisheries patrol officer acts under the direction and control of another agency or unless the liability is otherwise assumed under a written agreement between the department of fisheries and another agency.

    (4) Fisheries patrol officers may serve and execute warrants and processes issued by the courts.

    (5) Fisheries patrol officers may enforce the provisions of sections 3 and 4 of this act.

    NEW SECTION. Sec. 8. By December 31, 1993, the department of natural resources in cooperation with the department of fisheries shall develop and report to the appropriate committees of the legislature on a process and budget necessary to accomplish the following:

    (1) Inventory and monitor the seaweed resource for seaweed species that are or have the potential to be harvested for recreational or tribal ceremonial and subsistence purposes;

    (2) Develop a management plan that will address the appropriate level of recreational harvest of seaweed while conserving the seaweed resource;

    (3) Identify the respective state and tribal roles in managing the seaweed resource; and

    (4) Involve interested parties in development of the inventory and management plan, including the state parks and recreation commission, affected counties, private tideland owners, the tribes, and representatives of those who harvest seaweed for personal use. The department of natural resources shall also involve these interested parties in development of the process and budget.

    NEW SECTION. Sec. 9. Sections 2 through 6 of this act are each added to chapter 79.01 RCW.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Owen, the Senate concurred in the House amendment to Substitute Senate Bill No. 5056.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 5056, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5056, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

    Voting yea: Senators Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 41.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Roach, Smith, L. and Vognild - 8.

    SUBSTITUTE SENATE BILL NO. 5056, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Loveland, Senators Rinehart and Skratek were excused.


MESSAGE FROM THE HOUSE


April 5, 1993


MR. PRESIDENT:

    The House has passed SENATE BILL NO. 5079 with following amendment(s):

    On page 1, line 14, after "person." strike the remainder of the subsection and insert: "The physical disability permittee is required to be in the direct line of sight of the person digging razor clams for him or her, unless it is not possible to be in a direct line of sight because of a physical obstruction or other barrier. If such a barrier or obstruction exists, the physical disability permittee is required to be within one-quarter mile of the person who is digging razor clams for him or her.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Owen, the Senate concurred in the House amendment to Senate Bill No. 5079.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5079, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 5079, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

    Voting yea: Senators Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Smith, A., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 39.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Rinehart, Roach, Skratek, Smith, L. and Vognild - 10.

    SENATE BILL NO. 5079, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5088 with following amendment(s):

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. The legislature finds that while the 1988 Administrative Procedure Act expanded public participation in the agency rule-making process, there continue to be instances when participants have developed adversarial relationships with each other, resulting in the inability to identify all of the issues, the failure to focus on solutions to problems, unnecessary delays, litigation, and added cost to the agency, affected parties, and the public in general.

    When interested parties work together, it is possible to negotiate development of a rule that is acceptable to all affected, and that conforms to the intent of the statute the rule is intended to implement.

    After a rule is adopted, unanticipated negative impacts may emerge. Examples include excessive costs of administration for the agency and compliance by affected parties, technical conditions that may be physically or economically unfeasible to meet, problems of interpretation due to lack of clarity, and reporting requirements that duplicate or conflict with those already in place.

    It is therefore the intent of the legislature to encourage flexible approaches to developing administrative rules, including but not limited to negotiated rule making and a process for testing the feasibility of adopted rules, often called the pilot rule process. However, nothing in this act shall be construed to create any mandatory duty for an agency to use the procedures in RCW 34.05.310 or section 4 of this act in any particular instance of rule making. Agencies shall determine, in their discretion, when it is appropriate to use these procedures.

    Sec. 2. 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.)) To meet the intent of providing greater public access to administrative rule making and to promote consensus among interested parties, agencies are encouraged to:

    (1) Solicit comments from the public on a subject of possible rule making before publication of a notice of proposed rule adoption under RCW 34.05.320. This process can be accomplished by having a notice published in the state register of the subject under active consideration and indicating where, when, and how persons may comment; and

    (2) Develop and use new procedures for reaching agreement among interested parties before publication of notice and the adoption hearing on a proposed rule. Examples of new procedures include, but are not limited to:

    (a) Identifying individuals and organizations that have a recognized interest in or will be significantly affected by the adoption of the proposed rule;

    (b) Soliciting participation by persons who are capable, willing, and appropriately authorized to enter into such negotiations;

    (c) Assuring that participants fully recognize the consequences of not participating in the process, are committed to negotiate in good faith, and recognize the alternatives available to other parties;

    (d) Establishing guidelines to encourage consideration of all pertinent issues, to set reasonable completion deadlines, and to provide fair and objective settlement of disputes that may arise;

    (e) Agreeing on a reasonable time period during which the agency will be bound to the rule resulting from the negotiations without substantive amendment; and

    (f) Providing a mechanism by which one or more parties may withdraw from the process or the negotiations may be terminated if it appears that consensus cannot be reached on a draft rule that accommodates the needs of the agency, interested parties, and the general public and conforms to the legislative intent of the statute that the rule is intended to implement.

    NEW SECTION. Sec. 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. 4. If, during development of a rule or after its adoption, an agency determines that implementation may produce unreasonable economic, procedural, or technical burdens, agencies are encouraged to develop methods for measuring or testing the feasibility of compliance with the rule, including the use of voluntary pilot study groups. Measuring and testing methods should emphasize public notice, participation by persons who have a recognized interest in or are significantly affected by the adoption of the proposed rule, a high level of involvement from agency management, consensus on issues and procedures among participants in the pilot group, assurance of fairness, and reasonable completion dates, and a process by which one or more parties may withdraw from the process or the process may be terminated if consensus cannot be reached on the rule.

    The findings of the pilot project should be widely shared and, where appropriate, adopted as amendments to the rule.

    NEW SECTION. Sec. 5. Sections 3 and 4 of this act are each added to chapter 34.05 RCW under the subchapter heading "rule-making procedures."", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Drew, the Senate concurred in the House amendment to Substitute Senate Bill No. 5088.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5088, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5088, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

    Voting yea: Senators Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 40.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Rinehart, Roach, Skratek and Smith, L. - 9.

    SUBSTITUTE SENATE BILL NO. 5088, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    On motion of Senator Loveland, Senator Adam Smith was excused.


MESSAGE FROM THE HOUSE


April 5, 1993


MR. PRESIDENT:

    The House has passed SENATE BILL NO. 5124 with following amendment(s):

    On page 9, line 11, after "deliver" insert "with a commercial fishing vessel"

    On page 12, line 18, after "deliver" insert "with a commercial fishing vessel", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk




MOTION


    On motion of Senator Drew, the Senate concurred in the House amendments to Senate Bill No. 5124.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5124, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 5124, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

    Voting yea: Senators Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 39.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Rinehart, Roach, Skratek, Smith, A. and Smith, L. - 10.

    SENATE BILL NO. 5124, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.



MESSAGE FROM THE HOUSE


April 5, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5145 with following amendment(s):

    On page 4, line 9, after "reinspected by" insert "an insurer, a person with whom the insurer has contracted, or"

    On page 4, line 15, after "reinspected by" strike "a person authorized by the department" and insert "an insurer, a person with whom the insurer has contracted, or a person authorized by the department to inspect bungee jumping devices", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Moore, the Senate concurred in the House amendment to Substitute Senate Bill No. 5145.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5145, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5145, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 35; Nays, 5; Absent, 0; Excused, 9.

    Voting yea: Senators Bauer, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Skratek, Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 35.

    Voting nay: Senators Barr, Bluechel, Cantu, Hochstatter and Oke - 5.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Rinehart, Roach, Smith, A. and Smith, L. - 9.

    SUBSTITUTE SENATE BILL NO. 5145, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 5179 with following amendment(s):

    On page 2, line 28, strike "this section" and insert "sections 1 through 5 of this act"

    On page 2, line 30, after "required" strike all material through "revenue" on line 31 and insert "under RCW 88.02.020 to display a decal or that is exempt from registration pursuant to RCW 88.02.030(10)"

    On page 3, line 12, strike "is a violation of this chapter" and insert "shall be unlawful"

    On page 3, line 16, strike "is a violation of this chapter" and insert "shall be unlawful", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


    On motion of Senator Fraser, the Senate concurred in the House amendments to Substitute Senate Bill No. 5179.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5179, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5179, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

    Voting yea: Senators Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Skratek, Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 40.

    Excused: Senators Amondson, Anderson, Deccio, Haugen, McCaslin, Rinehart, Roach, Smith, A. and Smith, L. - 9.

    SUBSTITUTE SENATE BILL NO. 5179, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.


MOTION


    At 7:28 p.m., on motion of Senator Jesernig, the Senate adjourned until 9:00 a.m., Tuesday, April 20, 1993.


JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate