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ONE HUNDREDTH DAY


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MORNING SESSION


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Senate Chamber, Olympia, Tuesday, April 20, 1993

     The Senate was called to order at 9:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Hargrove, Moyer, Niemi, Linda Smith, West and Wojahn. On motion of Senator Loveland, Senators Niemi and Wojahn were excused. On motion of Senator Oke, Senators Moyer, Linda Smith and West were excused.

     The Sergeant at Arms Color Guard, consisting of Pages Capp Crawford and Eric Crawford, 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.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The Speaker has signed:

     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,

     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


MESSAGE FROM THE HOUSE


April 15, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5241 with the following amendment(s):

     On page 4, at the beginning of line 21, strike "permissive" and insert "discretionary"

     On page 5, line 10, after "are" strike "permissive" and insert "discretionary", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendments to Senate Bill No. 5241.

     The President declared the question before the Senate to the roll call on the final passage of Senate Bill No. 5241, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5241, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 1; Excused, 5.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams and Winsley - 43.

     Absent: Senator Hargrove - 1.

     Excused: Senators Moyer, Niemi, Smith, L., West and Wojahn - 5.

     SENATE BILL NO. 5241, 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 19, 1993


MR. PRESIDENT:

     The Speaker has signed:

     SUBSTITUTE HOUSE BILL NO 1028,

     SUBSTITUTE HOUSE BILL NO. 1063,

     HOUSE BILL NO. 1111,

     HOUSE BILL NO. 1142,

     SUBSTITUTE HOUSE BILL NO. 1144,

     HOUSE BILL NO. 1150,

     SUBSTITUTE HOUSE BILL NO. 1156,

     HOUSE BILL NO. 1212,

     HOUSE BILL NO. 1225,

     HOUSE BILL NO. 1227,

     HOUSE BILL NO. 1244,

     HOUSE BILL NO. 1263,

     HOUSE BILL NO. 1292,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1294,

     HOUSE BILL NO. 1317,

     HOUSE BILL NO. 1328,

     HOUSE BILL NO. 1351,

     SUBSTITUTE HOUSE BILL NO. 1352,

     ENGROSSED HOUSE BILL NO. 1353,

     HOUSE BILL NO. 1355,

     SUBSTITUTE HOUSE BILL NO. 1370,

     HOUSE BILL NO. 1401,

     HOUSE BILL NO. 1407,

     HOUSE BILL NO. 1993,

     ENGROSSED HOUSE BILL NO. 2009,

     HOUSE BILL NO. 2048,

     HOUSE BILL NO. 2073,

     HOUSE JOINT RESOLUTION NO. 4201,

     SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4408, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


SIGNED BY THE PRESIDENT


     The President signed:

      SUBSTITUTE HOUSE BILL NO 1028,

     SUBSTITUTE HOUSE BILL NO. 1063,

     HOUSE BILL NO. 1111,

     HOUSE BILL NO. 1142,

     SUBSTITUTE HOUSE BILL NO. 1144,

     HOUSE BILL NO. 1150,

     SUBSTITUTE HOUSE BILL NO. 1156,

     HOUSE BILL NO. 1212,

     HOUSE BILL NO. 1225,

     HOUSE BILL NO. 1227,

     HOUSE BILL NO. 1244,

     HOUSE BILL NO. 1263,

     HOUSE BILL NO. 1292,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1294,

     HOUSE BILL NO. 1317,

     HOUSE BILL NO. 1328,

     HOUSE BILL NO. 1351,

     SUBSTITUTE HOUSE BILL NO. 1352,



     ENGROSSED HOUSE BILL NO. 1353,

     HOUSE BILL NO. 1355,

     SUBSTITUTE HOUSE BILL NO. 1370,

     HOUSE BILL NO. 1401,

     HOUSE BILL NO. 1407,

     HOUSE BILL NO. 1993,

     ENGROSSED HOUSE BILL NO. 2009,

     HOUSE BILL NO. 2048,

     HOUSE BILL NO. 2073,

     HOUSE JOINT RESOLUTION NO. 4201,

     SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4408.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5260 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. The legislature finds that salmon consumers in Washington benefit from knowing the species and origin of the salmon they purchase. The accurate identification of such species, as well as knowledge of the country or state of origin and of whether they were caught commercially or were farm-raised, is important to consumers.

     NEW SECTION. Sec. 2. A new section is added to chapter 69.04 RCW to read as follows:

     Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 3 through 5 of this act.

     (1) "Salmon" means all species of the genus Oncorhynchus, except those classified as game fish in Title 77 RCW, and includes:


SCIENTIFIC NAME                                                          COMMON NAME

Oncorhynchus tshawytscha                                  Chinook salmon or king salmon

Oncorhynchus kisutch                                          Coho salmon or silver salmon

Oncorhynchus keta                                               Chum salmon

Oncorhynchus gorbuscha                                     Pink salmon

Oncorhynchus nerka                                            Sockeye salmon

Salmo salar (in other than                                    Atlantic salmon

  its landlocked form)


     (2) "Commercially caught" means salmon harvested by commercial fishers.

     NEW SECTION. Sec. 3. A new section is added to chapter 69.04 RCW to read as follows:

     With the exception of a commercial fisher engaged in sales of fish to a fish buyer, no person may sell at wholesale or retail any fresh or frozen salmon food fish or cultured aquatic salmon without identifying the species of salmon by its common name to the buyer at the point of sale such that the buyer can make an informed decision in purchasing. A person knowingly violating this section is guilty of misbranding under this chapter. A person who receives misleading or erroneous information about the species of salmon and subsequently inaccurately identifies salmon shall not be guilty of misbranding. This section shall not apply to salmon that is minced, pulverized, coated with batter, or breaded.

     NEW SECTION. Sec. 4. A new section is added to chapter 69.04 RCW to read as follows:

     With the exception of a commercial fisher engaged in sales of fish to a fish buyer, no person may sell at wholesale or retail any fresh or frozen:

     (1) Private sector cultured aquatic salmon without identifying the product as farm-raised salmon; or

     (2) Commercially caught salmon designated as food fish under Title 75 RCW without identifying the product as commercially caught salmon.

     Identification of the products under subsections (1) and (2) of this section shall be made to the buyer at the point of sale such that the buyer can make an informed decision in purchasing.

     A person knowingly violating this section is guilty of misbranding under this chapter. A person who receives misleading or erroneous information about whether the salmon is farm-raised or commercially caught, and subsequently inaccurately identifies salmon shall not be guilty of misbranding. This section shall not apply to salmon that is minced, pulverized, coated with batter, or breaded.

     NEW SECTION. Sec. 5. A new section is added to chapter 69.04 RCW to read as follows:

     To promote honesty and fair dealing for consumers, the director, in consultation with the director of the department of fisheries, shall adopt rules:

     (1) Fixing and establishing a reasonable definition and standard of identity for salmon for purposes of identifying and selling salmon;

     (2) Enforcing sections 3 and 4 of this act.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Owen, the Senate concurred in the House amendment to Engrossed Senate Bill No. 5260.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5260, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5260, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 46.

     Excused: Senators Moyer, Smith, L. and Wojahn - 3.

     ENGROSSED SENATE BILL NO. 5260, 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. 5270 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. The legislature finds that, given the overlap of powers and products in the companies regulated, the consolidation of the agencies regulating financial institutions and securities into one department will better serve the public interest through more effective use of staff expertise. Therefore, for the convenience of administration and the centralization of control and the more effective use of state resources and expertise, the state desires to combine the regulation of financial institutions and securities into one department.

     NEW SECTION. Sec. 2. A state department of financial institutions, headed by the director of financial institutions, is created. The department shall be organized and operated in a manner that to the fullest extent permissible under applicable law protects the public interest, protects the safety and soundness of depository institutions and entities under the jurisdiction of the department, ensures access to the regulatory process for all concerned parties, and protects the interests of investors. The department of financial institutions shall be structured to reflect the unique differences in the types of institutions and areas it regulates.

     NEW SECTION. Sec. 3. The director of financial institutions shall be appointed by the governor and shall exercise all powers and perform all of the duties and functions transferred under section 6 of this act, and such other powers and duties as may be authorized by law. The director may deputize, appoint, and employ examiners and other such assistants and personnel as may be necessary to carry on the work of the department. The director of financial institutions shall receive a salary in an amount fixed by the governor.

     NEW SECTION. Sec. 4. A person is not eligible for appointment as director of financial institutions unless he or she is, and for the last two years before his or her appointment has been, a citizen of the United States. A person is not eligible for appointment as director of financial institutions if he or she has an interest at the time of appointment, as a director, trustee, officer, or stockholder in any bank, savings bank, savings and loan association, credit union, consumer loan company, trust company, securities broker-dealer or investment advisor, or other institution regulated by the department.

     NEW SECTION. Sec. 5. The director of financial institutions may adopt any rules, under chapter 34.05 RCW, necessary to implement the powers and duties of the director under this chapter.

     NEW SECTION. Sec. 6. (1) All powers, duties, and functions of the department of general administration under Titles 30, 31, 32, 33, and 43 RCW and any other title pertaining to duties relating to banks, savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, trust companies and departments, and other similar institutions are transferred to the department of financial institutions. All references to the director of general administration, supervisor of banking, or the supervisor of savings and loan associations in the Revised Code of Washington are construed to mean the director of the department of financial institutions when referring to the functions transferred in this section. All references to the department of general administration in the Revised Code of Washington are construed to mean the department of financial institutions when referring to the functions transferred in this subsection.

     (2) All powers, duties, and functions of the department of licensing under chapters 19.100, 19.110, 21.20, 21.30, and 48.18A RCW and any other statute pertaining to the regulation of securities, franchises, business opportunities, commodities, and any other speculative investments are transferred to the department of financial institutions. All references to the director or department of licensing in the Revised Code of Washington are construed to mean the director or department of financial institutions when referring to the functions transferred in this subsection.

     NEW SECTION. Sec. 7. All reports, documents, surveys, books, records, files, papers, or other written or electronically stored material in the possession of the department of general administration or the department of licensing and pertaining to the powers, functions, and duties transferred by section 6 of this act shall be delivered to the custody of the department of financial institutions. All cabinets, furniture, office equipment, motor vehicles, and other tangible property purchased by the division of banking and the division of savings and loan in carrying out the powers, functions, and duties transferred by section 6 of this act shall be transferred to the department of financial institutions. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of licensing in carrying out the powers, functions, and duties transferred by section 6 of this act shall be made available to the department of financial institutions. All funds, credits, or other assets held by the department of general administration or the department of licensing in connection with the powers, functions, and duties transferred by section 6 of this act shall be assigned to the department of financial institutions.

     Any appropriations made to the department of general administration or the department of licensing for carrying out the powers, functions, and duties transferred by section 6 of this act shall, on the effective date of this act, be transferred and credited to the department of financial institutions.

     If a dispute arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

     NEW SECTION. Sec. 8. The director of financial institutions may appoint assistant directors for each of the divisions of the department and delegate to them the power to perform any act or duty conferred upon the director. The director is responsible for the official acts of these assistant directors.

     The department of financial institutions shall consist of at least the following four divisions: The division of FDIC insured institutions, with regulatory authority over all state-chartered FDIC insured institutions; the division of credit unions, with regulatory authority over all state-chartered credit unions; the division of consumer affairs, with regulatory authority over state-licensed nondepository lending institutions and other regulated entities; and the division of securities, with regulatory authority over securities, franchises, business opportunities, and commodities. The director of financial institutions is granted broad administrative authority to add additional responsibilities to these divisions as necessary and consistent with applicable law.

     For purposes of this section, "FDIC" means the Federal Deposit Insurance Corporation.

     NEW SECTION. Sec. 9. All employees classified under chapter 41.06 RCW, the state civil service law, who are employees of the department of general administration or the department of licensing engaged in performing the powers, functions, and duties transferred by section 6 of this act are transferred to the department of financial institutions. All such employees are assigned to the department of financial institutions to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

     NEW SECTION. Sec. 10. All rules and all pending business before the department of general administration or the department of licensing pertaining to the powers, functions, and duties transferred by section 6 of this act shall be continued and acted upon by the department of financial institutions. All existing contracts and obligations shall remain in full force and shall be performed by the department of financial institutions.

     NEW SECTION. Sec. 11. The transfer of the powers, duties, functions, and personnel of the department of general administration or the department of licensing under sections 6, 7, 9, and 10 of this act does not affect the validity of any act performed by such an employee before the effective date of this act.

     NEW SECTION. Sec. 12. If apportionments of budgeted funds are required because of the transfers directed by sections 6 through 11 of this act, the director of financial management shall certify the apportionments to the agencies affected, to the state auditor, and to the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

     NEW SECTION. Sec. 13. Nothing contained in sections 6 through 11 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the expiration date of the current agreement or until the bargaining unit has been modified by action of the personnel board as provided by law.

     Sec. 14. 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)) financial institutions 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)) includes:

     (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.

     Sec. 15. RCW 21.20.450 and 1979 ex.s. c 68 s 33 are each amended to read as follows:

     The administration of the provisions of this chapter shall be under the department of ((licensing)) financial institutions. The director may from time to time make, amend, and ((rescind)) repeal such rules and forms as are necessary to carry out the provisions of this chapter, including rules defining any term, whether or not such term is used in the Washington securities law. The director may classify securities, persons, and matters within the director's jurisdiction, and prescribe different requirements for different classes. No rule or form((,)) may be made unless the director finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of this chapter. In prescribing rules and forms the director may cooperate with the securities administrators of the other states and the securities and exchange commission with a view to effectuating the policy of this statute to achieve maximum uniformity in the form and content of registration statements, applications, and reports wherever practicable. All rules and forms of the director shall be published.

     Sec. 16. RCW 21.20.720 and 1987 c 421 s 4 are each amended to read as follows:

     (1) A director, officer, or controlling person of a debenture company shall not:

     (a) Have any interest, direct or indirect, in the gains or profits of the debenture company, except to receive dividends upon the amounts contributed by him or her, the same as any other investor or shareholder and under the same regulations and conditions: PROVIDED, That nothing in this subsection shall be construed to prohibit salaries as may be approved by the debenture company's board of directors;

     (b) Become a member of the board of directors or a controlling shareholder of another debenture company or a bank, trust company, or national banking association, of which board enough other directors or officers of the debenture company are members so as to constitute with him or her a majority of the board of directors.

     (2) A director, an officer, or controlling person shall not:

     (a) For himself or herself or as agent or partner of another, directly or indirectly use any of the funds held by the debenture company, except to make such current and necessary payments as are authorized by the board of directors;

     (b) Receive directly or indirectly and retain for his or her own use any commission on or benefit from any loan made by the debenture company, or any pay or emolument for services rendered to any borrower from the debenture company in connection with such loan;

     (c) Become an indorser, surety, or guarantor, or in any manner an obligor, for any loan made from the debenture company and except when approval has been given by the director of ((licensing)) financial institutions or the director's administrator of securities upon recommendation by the company's board of directors.

     (d) For himself or herself or as agent or partner of another, directly or indirectly borrow any of the funds held by the debenture company, or become the owner of real or personal property upon which the debenture company holds a mortgage, deed of trust, or property contract. A loan to or a purchase by a corporation in which he or she is a stockholder to the amount of fifteen percent of the total outstanding stock, or in which he or she and other directors, officers, or controlling persons of the debenture company hold stock to the amount of twenty-five percent of the total outstanding stock, shall be deemed a loan to or a purchase by such director or officer within the meaning of this section, except when the loan to or purchase by such corporation occurred without his or her knowledge or against his or her protest.

     Sec. 17. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:

     There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of trade and economic development, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, (15) the department of community development, ((and)) (16) the department of health, and (17) the department of financial institutions, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

     Sec. 18. RCW 43.17.020 and 1989 1st ex.s. c 9 s 811 are each amended to read as follows:

     There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of wildlife, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of trade and economic development, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, (15) the director of community development, ((and)) (16) the secretary of health, and (17) the director of financial institutions.

     Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The director of wildlife, however, shall be appointed according to the provisions of RCW 77.04.080. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. A temporary director of wildlife shall not serve more than one year. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.

     Sec. 19. RCW 43.19.010 and 1988 c 25 s 10 are each amended to read as follows:

     The department of general administration shall be organized into divisions, which shall include (1) ((the division of banking, (2) the division of savings and loan associations, (3))) the division of capitol buildings, (((4))) (2) the division of purchasing, (((5))) (3) the division of engineering and architecture, and (((6))) (4) the division of motor vehicle transportation service.

     The director of general administration shall have charge and general supervision of the department. He or she may appoint and deputize such clerical and other assistants as may be necessary for the general administration of the department. The director of general administration shall receive a salary in an amount fixed by the governor.

     Sec. 20. RCW 43.19.020 and 1977 ex.s. c 185 s 1 are each amended to read as follows:

     The director of ((general administration)) financial institutions shall appoint ((and)), deputize ((an assistant director to be known as the supervisor of banking, who shall have charge and supervision of the division of banking. With the approval of the director, he may appoint)), and employ ((bank)) examiners and such other assistants and personnel as may be necessary to carry on the work of the ((division.

     No person shall be eligible for appointment as supervisor of banking unless he is, and for the last two years prior to his appointment has been, a citizen of the United States and a resident of this state; nor if he is interested in any bank or trust company as director, officer, or stockholder)) department of financial institutions.

     In the event of the ((supervisor's)) director's absence the director ((of general administration)) shall have the power to deputize one of the assistants of the ((supervisor)) director to exercise all the powers and perform all the duties prescribed by law with respect to banks ((and)), savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, trust companies((, mutual savings banks, loan agencies)) and departments, securities, franchises, business opportunities, commodities, and other similar institutions or areas that are performed by the ((supervisor)) director so long as the ((supervisor)) director is absent: PROVIDED, That such deputized ((supervisor)) assistant shall not have the power to approve or disapprove new charters, licenses, branches, and satellite facilities, unless such action has received the prior written approval of the ((supervisor)) director. Any person so deputized shall possess the same qualifications as those set out in this section for the ((supervisor)) director.

     Sec. 21. RCW 43.19.030 and 1977 ex.s. c 270 s 8 are each amended to read as follows:

     Before entering ((upon his)) office each ((bank)) examiner shall take and subscribe an oath faithfully to discharge the duties of ((his)) the office.

     Oaths shall be filed with the secretary of state.

     Neither the ((supervisor of banking)) director of financial institutions, any ((deputy supervisor)) deputized assistant of the director, nor any ((bank)) examiner or employee shall be personally liable for any act done ((by him)) in good faith in the performance of his or her duties.

     Sec. 22. RCW 43.19.050 and 1965 c 8 s 43.19.050 are each amended to read as follows:

     The ((supervisor of banking)) director of financial institutions shall maintain an office at the state capitol, but may with the consent of the governor also maintain ((an office)) branch offices at ((some)) other convenient ((banking center)) business centers in this state.




 ((He)) The director shall keep books of record of all moneys received or disbursed by ((him)) the director into or from the banking examination fund, the credit union examination fund, the securities regulation fund, and any other accounts maintained by the department of financial institutions. ((He shall adopt an official seal.))

     Sec. 23. RCW 43.19.080 and 1965 c 8 s 43.19.080 are each amended to read as follows:

     (1) It shall be unlawful for the ((supervisor or any deputy or employee of his division)) director of financial institutions, any deputized assistant of the director, or any employee of the department of financial institutions to borrow money from any bank ((or trust company under his jurisdiction)), consumer loan company, credit union, foreign bank branch, savings bank, savings and loan association, or trust company or department, securities broker-dealer or investment advisor, or similar lending institution under the department's direct jurisdiction unless the extension of credit:

     (a) Is made on substantially the same terms (including interest rates and collateral) as, and following credit underwriting procedures that are not less stringent than, those prevailing at the time for comparable transactions by the financial institution with other persons that are not employed by either the department or the institution; and

     (b) Does not involve more than the normal risk of repayment or present other unfavorable features.

     (2) The director of the office of financial management shall adopt rules, policies, and procedures interpreting and implementing this section.

     (3) Every person who knowingly violates this section shall forfeit his or her office or employment and be guilty of a gross misdemeanor.

     Sec. 24. RCW 43.19.090 and 1977 c 75 s 43 are each amended to read as follows:

     The ((supervisor)) director of financial institutions shall file in his or her office all reports required to be made to ((him)) the director, prepare and furnish to banks ((and)), savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, and trust companies and departments blank forms for such reports as are required of them, and each year make a report to the governor showing:

     (1) A summary of the conditions of the banks, savings banks, foreign bank branches, savings and loan associations, credit unions, consumer loan companies, check cashers and sellers, and trust companies and departments at the date of their last report; and

     (2) A list of those organized or closed during the year.

     ((He)) The director may publish such other statements, reports, and pamphlets as he or she deems advisable.

     Sec. 25. RCW 43.19.095 and 1981 c 241 s 1 are each amended to read as follows:

     There is created a local fund known as the "banking examination fund" which shall consist of all moneys received by the ((division of banking)) department of financial institutions from banks, savings banks, foreign bank branches, savings and loan associations, consumer loan companies, check cashers and sellers, and trust companies and departments, and which shall be used for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the proper ((maintenance of the division)) regulation of these companies. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of ((general administration or the supervisor of banking)) financial institutions or the director's ((or supervisor's)) designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditures and payment of obligations from the fund.

     Sec. 26. RCW 43.19.112 and 1981 c 241 s 2 are each amended to read as follows:

     There is created a local fund known as the "((savings and loan associations and)) credit unions examination fund" which shall consist of all moneys received by the ((division of savings and loan associations)) department of financial institutions from credit unions and which shall be used for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the ((proper maintenance of the division)) regulation of these institutions. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of ((general administration or the supervisor of savings and loan associations)) financial institutions or the director's ((or supervisor's)) designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditures and payment of obligations from the fund.

     NEW SECTION. Sec. 27. There is created in the state treasury a fund known as the "securities regulation fund" that shall consist of thirteen percent of all moneys received by the division of securities of the department of financial institutions. Expenditures from the account may be used only for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the regulation of securities, franchises, business opportunities, commodities, and other similar areas regulated by the division. Moneys in the account may be spent only after appropriation.

     NEW SECTION. Sec. 28. The following acts or parts of acts are each repealed:

     (1) RCW 43.19.040 and 1965 c 8 s 43.19.040;

     (2) RCW 43.19.100 and 1982 c 3 s 113, 1977 ex.s. c 185 s 2, & 1965 c 8 s 43.19.100; and

     (3) RCW 43.19.110 and 1965 c 8 s 43.19.110.

     NEW SECTION. Sec. 29. Sections 1 through 13 and 27 of this act shall constitute a new chapter in Title 43 RCW.

     NEW SECTION. Sec. 30. RCW 43.19.020, 43.19.030, 43.19.050, 43.19.080, 43.19.090, 43.19.095, and 43.19.112 are recodified as sections in chapter 43.__ RCW (sections 1 through 13 and 27 of this act).

     NEW SECTION. Sec. 31. This act takes effect October 1, 1993.

     NEW SECTION. Sec. 32. The directors of the department of general administration and the department of licensing shall take such steps as are necessary to ensure that this act is implemented on October 1, 1993.", 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. 5270.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5270, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5270, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 46.

     Excused: Senators Moyer, Smith, L. and Wojahn - 3.

     SUBSTITUTE SENATE BILL NO. 5270, 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 has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5307 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 9.41.280 and 1989 c 219 s 1 are each amended to read as follows:

     (1) It is unlawful for ((an elementary or secondary school student under the age of twenty-one knowingly)) a person to carry onto public or private elementary or secondary school premises, school-provided transportation, or areas of facilities while being used exclusively by public or private schools:

     (a) Any firearm; or

     (b) Any dangerous weapon as defined in RCW 9.41.250; or

     (c) Any device commonly known as "nun-chu-ka sticks", consisting of two or more lengths of wood, metal, plastic, or similar substance connected with wire, rope, or other means; or

     (d) Any device, commonly known as "throwing stars", which are multi-pointed, metal objects designed to embed upon impact from any aspect; or

     (e) Any air gun, including any air pistol or air rifle, designed to propel a BB, pellet, or other projectile by the discharge of compressed air, carbon dioxide, or other gas.

     (2) Any such ((student)) person violating subsection (1) of this section is guilty of a gross misdemeanor.

     Any violation of subsection (1) of this section by elementary or secondary school students constitutes grounds for expulsion from the state's public schools in accordance with RCW 28A.600.010. However, any violation of subsection (1)(a) of this section by an elementary or secondary school student shall result in expulsion in accordance with RCW 28A.600.010. An appropriate school authority shall promptly notify law enforcement and the student's parent or guardian regarding any allegation or indication of such violation.

     (3) Subsection (1) of this section does not apply to:

     (a) Any student or employee of a private military academy when on the property of the academy; ((or))

     (b) Any ((student)) person engaged in military, law enforcement, or school district security activities((, sponsored by the federal or state governments while engaged in official duties)); ((or))

     (c) Any ((student)) person who is ((attending)) involved in a convention, showing, demonstration, lecture, or firearms safety course authorized by school authorities in which the firearms of collectors or instructors are handled or displayed; ((or))

     (d) Any ((student)) person who possesses nun-chu-ka sticks, throwing stars, or other dangerous weapons to be used in martial arts classes authorized to be conducted on the school premises; ((or))

     (e) Any ((student)) person while the ((student)) person is participating in a firearms or air gun competition approved by the school or school district;

     (f) Any person who has been issued a license under RCW 9.41.070, while picking up or dropping off a student;

     (g) Any person legally in possession of a firearm or dangerous weapon that is secured within an attended vehicle or concealed from view within a locked unattended vehicle while conducting legitimate business at the school;

     (h) Any person who is in lawful possession of an unloaded firearm, secured in a vehicle while conducting legitimate business at the school; or

     (i) Any law enforcement officer of the federal, state, or local government agency.

     (4) Except as provided in subsection (3)(b), (c), (e), and (i) of this section, firearms are not permitted in a public or private school building.

     (5) "GUN-FREE ZONE" signs shall be posted around school facilities giving warning of the prohibition of the possession of firearms on school grounds.

     NEW SECTION. Sec. 2. A new section is added to chapter 28A.320 RCW to read as follows:

     Each school district and each private school approved under chapter 28A.195 RCW shall report to the superintendent of public instruction by January 31st of each year all known incidents involving the possession of weapons on school premises, on transportation systems, or in areas of facilities while being used exclusively by public or private schools, in violation of RCW 9.41.280 in the year preceding the report. The superintendent shall compile the data and report it to the house of representatives, the senate, and the governor.

     Sec. 3. RCW 28A.635.060 and 1989 c 269 s 6 are each amended to read as follows:

     (1) Any pupil who shall deface or otherwise injure any school property, shall be liable to suspension and punishment. Any school district whose property has been lost or willfully cut, defaced, or injured, may withhold the grades, diploma, and transcripts of the pupil responsible for the damage or loss until the pupil or the pupil's parent or guardian has paid for the damages, unless the student is transferring to another elementary or secondary educational institution, in which case the student's permanent record shall be released promptly to the receiving school. When the pupil and parent or guardian are unable to pay for the damages, the school district shall provide a program of voluntary work for the pupil in lieu of the payment of monetary damages. Upon completion of voluntary work the grades, diploma, and transcripts of the pupil shall be released. The parent or guardian of such pupil shall be liable for damages as otherwise provided by law.

     (2) Before any penalties are assessed under this section, a school district board of directors shall adopt procedures which insure that pupils' rights to due process are protected.

     (3) If the department of social and health services or a child-placing agency licensed by the department has been granted custody of a child, that child's records, if requested by the department or agency, are not to be withheld for nonpayment of school fees or any other reason.

     Sec. 4. RCW 10.31.100 and 1988 c 190 s 1 are each amended to read as follows:

     A police officer having probable cause to believe that a person has committed or is committing a felony shall have the authority to arrest the person without a warrant. A police officer may arrest a person without a warrant for committing a misdemeanor or gross misdemeanor only when the offense is committed in the presence of the officer, except as provided in subsections (1) through (((8))) (9) of this section.

     (1) Any police officer having probable cause to believe that a person has committed or is committing a misdemeanor or gross misdemeanor, involving physical harm or threats of harm to any person or property or the unlawful taking of property or involving the use or possession of cannabis, or involving the acquisition, possession, or consumption of alcohol by a person under the age of twenty-one years under RCW 66.44.270 shall have the authority to arrest the person.

     (2) A police officer shall arrest and take into custody, pending release on bail, personal recognizance, or court order, a person without a warrant when the officer has probable cause to believe that:

     (a) An order has been issued of which the person has knowledge under RCW 10.99.040(2), 10.99.050, 26.09.060, 26.44.063, chapter 26.26 RCW, or chapter 26.50 RCW restraining the person and the person has violated the terms of the order restraining the person from acts or threats of violence or excluding the person from a residence or, in the case of an order issued under RCW 26.44.063, imposing any other restrictions or conditions upon the person; or

     (b) The person is eighteen years or older and within the preceding four hours has assaulted that person's spouse, former spouse, or a person eighteen years or older with whom the person resides or has formerly resided and the officer believes: (i) A felonious assault has occurred; (ii) an assault has occurred which has resulted in bodily injury to the victim, whether the injury is observable by the responding officer or not; or (iii) that any physical action has occurred which was intended to cause another person reasonably to fear imminent serious bodily injury or death. Bodily injury means physical pain, illness, or an impairment of physical condition. When the officer has probable cause to believe that spouses, former spouses, or other persons who reside together or formerly resided together have assaulted each other, the officer is not required to arrest both persons. The officer shall arrest the person whom the officer believes to be the primary physical aggressor. In making this determination, the officer shall make every reasonable effort to consider: (i) The intent to protect victims of domestic violence under RCW 10.99.010; (ii) the comparative extent of injuries inflicted or serious threats creating fear of physical injury; and (iii) the history of domestic violence between the persons involved.

     (3) Any police officer having probable cause to believe that a person has committed or is committing a violation of any of the following traffic laws shall have the authority to arrest the person:

     (a) RCW 46.52.010, relating to duty on striking an unattended car or other property;

     (b) RCW 46.52.020, relating to duty in case of injury to or death of a person or damage to an attended vehicle;

     (c) RCW 46.61.500 or 46.61.530, relating to reckless driving or racing of vehicles;

     (d) RCW 46.61.502 or 46.61.504, relating to persons under the influence of intoxicating liquor or drugs;

     (e) RCW 46.20.342, relating to driving a motor vehicle while operator's license is suspended or revoked;

     (f) RCW 46.61.525, relating to operating a motor vehicle in a negligent manner.

     (4) A law enforcement officer investigating at the scene of a motor vehicle accident may arrest the driver of a motor vehicle involved in the accident if the officer has probable cause to believe that the driver has committed in connection with the accident a violation of any traffic law or regulation.

     (5) Any police officer having probable cause to believe that a person has committed or is committing a violation of RCW 88.12.100 shall have the authority to arrest the person.

     (6) An officer may act upon the request of a law enforcement officer in whose presence a traffic infraction was committed, to stop, detain, arrest, or issue a notice of traffic infraction to the driver who is believed to have committed the infraction. The request by the witnessing officer shall give an officer the authority to take appropriate action under the laws of the state of Washington.

     (7) Any police officer having probable cause to believe that a person has committed or is committing any act of indecent exposure, as defined in RCW 9A.88.010, may arrest the person.

     (8) A police officer may arrest and take into custody, pending release on bail, personal recognizance, or court order, a person without a warrant when the officer has probable cause to believe that an order has been issued of which the person has knowledge under chapter 10.14 RCW and the person has violated the terms of that order.

     (9) A police officer having probable cause to believe that a person illegally possesses or illegally has possessed a firearm or other dangerous weapon on private or public elementary or secondary school premises shall have the authority to arrest the person. For purposes of this subsection, the term "firearm" has the meaning defined in RCW 9.41.010 and the term "dangerous weapon" has the meaning defined in RCW 9.41.250 and 9.41.280(1) (c) through (e).

     (10) Except as specifically provided in subsections (2), (3), (4), and (6) of this section, nothing in this section extends or otherwise affects the powers of arrest prescribed in Title 46 RCW.

     (((10))) (11) No police officer may be held criminally or civilly liable for making an arrest pursuant to RCW 10.31.100(2) or (8) if the police officer acts in good faith and without malice.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Pelz, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5307.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5307, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5307, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 4; Absent, 0; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 43.

     Voting nay: Senators Barr, Hochstatter, Roach and Sellar - 4.

     Excused: Senators Moyer and Smith, L. - 2.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 5307, 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 has passed SUBSTITUTE SENATE BILL NO. 5316 with the following amendment(s):

     On page 2, line 23, after "by" insert "two separate letters, one sent by first class mail and one sent by"

     On page 4, line 29, after "deficiency" insert ", however, the deficiency judgment shall not exceed the moorage fees owed for the previous six-month period", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendments to Substitute Senate Bill No. 5316.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5316, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5316, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

     Excused: Senators Moyer and Smith, L. - 2.

     SUBSTITUTE SENATE BILL NO. 5316, 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 Winsley was excused.


MESSAGE FROM THE HOUSE


April 5, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5380 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 41.56.475 and 1988 c 110 § 2 are each amended to read as follows:

     In addition to the classes of employees listed in RCW 41.56.030(7), the provisions of RCW 41.56.430((, 41.56.440, and)) through 41.56.452 and RCW 41.56.470, 41.56.480, and 41.56.490 also apply to Washington state patrol officers appointed under RCW 43.43.020 as provided in this section, subject to the following:

     (1) The mediator shall not consider wages and wage-related matters.

     (2) ((The services of the mediator, including any per diem expenses, shall be provided by the commission without cost to the parties. Nothing in this section shall be construed to prohibit the public employer and a bargaining representative from agreeing to substitute at their own expense some other mediator or mediation procedure.

     (3) If the public employer and a bargaining representative are unable to reach an agreement in mediation, either party, by written notice to the other party and to the commission, may request that the matters in dispute be submitted to a fact-finder for recommendations. If the executive director, upon the recommendation of the mediator, finds that the parties remain at an impasse after a reasonable period of negotiations, the executive director shall initiate fact-finding proceedings.

     (a) The executive director shall provide the parties with a list of five persons qualified to serve as the neutral fact-finder. The parties shall without delay attempt to agree upon a fact-finder from the list provided by the commission or to agree upon some other person as a fact-finder. Upon the failure of the parties to agree upon a fact-finder within seven days after the issuance of the list, the commission shall, upon the request of either party, appoint a fact-finder. The commission shall not appoint as fact-finder the same person who acted as mediator in the dispute.

     (b) The fact-finder shall promptly establish a date, time, and place to meet with the representatives of the parties and shall provide reasonable notice of the meeting to the parties to the dispute. The requirements of chapter 34.05 RCW shall not apply to fact-finding proceedings. The fact-finder shall make inquiries and investigations, hold hearings, and take such other steps as he or she deems appropriate. The fact-finder may issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence.

     (c) The fact-finder shall, within thirty days following the conclusion of the hearing, make written findings of fact and written recommendations to the parties as to how their dispute should be resolved. A copy shall be delivered or mailed to each of the parties to the dispute. A copy shall be filed with the commission. The findings and recommendations of the fact-finder are advisory only.

     (d) The findings and recommendations of the fact-finder shall be held in confidence among the fact-finder, the public employer, the bargaining representative, and the commission for seven calendar days following their issuance, to permit the public employer and the bargaining representative to study the recommendations. No later than seven calendar days following the issuance of the recommendations of the fact-finder, each party shall notify the commission and the other party whether it accepts or rejects, in whole or in part, the recommendations of the fact-finder. If the parties remain in disagreement following the expiration of the seven-day period, the findings and recommendations of the fact-finder may be made public.

     (e) The fees and expenses of the fact-finder shall be paid by the parties to the dispute, in equal amounts. All other costs of the proceeding shall be paid by the party incurring those costs. Nothing in this section prohibits an employer and an exclusive bargaining representative from agreeing to substitute, at their own expense, some other impasse procedure or from agreeing to some other allocation of the costs of fact-finding between them.)) In making its determination, the arbitration panel shall be mindful of the legislative purpose enumerated in RCW 41.56.430 and, as additional standards or guidelines to aid it in reaching a decision, shall take into consideration the following factors:

     (a) The constitutional and statutory authority of the employer;

     (b) Stipulations of the parties;

     (c) Comparison of the hours and conditions of employment of personnel involved in the proceedings with the hours and conditions of employment of like personnel of like employers of similar size on the west coast of the United States;

     (d) Changes in any of the foregoing circumstances during the pendency of the proceedings; and

     (e) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of hours and conditions of employment.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendments to Substitute Senate Bill No. 5380.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5380, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5380, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 9; Absent, 0; Excused, 3.

     Voting yea: Senators Amondson, Anderson, Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Nelson, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Wojahn - 37.

     Voting nay: Senators Barr, Bluechel, Cantu, Hochstatter, McCaslin, McDonald, Newhouse, Oke and Prince - 9.

     Excused: Senators Moyer, Smith, L. and Winsley - 3.

     SUBSTITUTE SENATE BILL NO. 5380, 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 has passed SUBSTITUTE SENATE BILL NO. 5483 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 41.56 RCW to read as follows:

     In addition to the classes of employees listed in RCW 41.56.030(7), the provisions of RCW 41.56.430 through 41.56.452, 41.56.470, 41.56.480, and 41.56.490 shall also be applicable to the employees of a public passenger transportation system of a metropolitan municipal corporation, county transportation authority, public transportation benefit area, or city public passenger transportation system, subject to the following:

     (1) Negotiations between the public employer and the bargaining representative may commence at any time agreed to by the parties. If no agreement has been reached ninety days after commencement of negotiations, either party may demand that the issues in disagreement be submitted to a mediator. The services of the mediator shall be provided by the commission without cost to the parties, but nothing in this section or RCW 41.56.440 shall be construed to prohibit the public employer and the bargaining representative from agreeing to substitute at their own expense some other mediator or mediation procedure; and

     (2) If an agreement has not been reached following a reasonable period of negotiations and mediation, and the mediator finds that the parties remain at impasse, either party may demand that the issues in disagreement be submitted to an arbitration panel for a binding and final determination. In making its determination, the arbitration panel shall be mindful of the legislative purpose enumerated in RCW 41.56.430 and as additional standards or guidelines to aid it in reaching a decisions, shall take into consideration the following factors:

     (a) The constitutional and statutory authority of the employer;

     (b) Stipulations of the parties;

     (c) Compensation package comparisons, economic indices, fiscal constraints, and similar factors determined by the arbitration panel to be pertinent to the case; and

     (d) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendments to Substitute Senate Bill No. 5483.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5483, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5483, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 15; Absent, 1; Excused, 2.

     Voting yea: Senators Anderson, Bauer, Deccio, Drew, Erwin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams and Wojahn - 31.

     Voting nay: Senators Amondson, Barr, Bluechel, Cantu, Hochstatter, Loveland, McCaslin, McDonald, Nelson, Newhouse, Oke, Prince, Roach, Sellar and West - 15.

     Absent: Senator Franklin - 1.

     Excused: Senators Smith, L. and Winsley - 2.

     SUBSTITUTE SENATE BILL NO. 5483, 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 has passed SUBSTITUTE SENATE BILL NO. 5492 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 23.86.070 and 1991 c 72 s 15 are each amended to read as follows:

     For filing articles of incorporation of an association organized under this chapter or filing application for a certificate of authority by a foreign corporation, there shall be paid to the secretary of state the sum of twenty-five dollars ((and for filing of an amendment the sum of twenty dollars)). Fees for filing an amendment to articles of incorporation shall be established by the secretary of state by rule. For filing other documents with the secretary of state and issuing certificates, fees shall be as prescribed in RCW 23B.01.220. Associations subject to this chapter shall not be subject to any corporation license fees excepting the fees hereinabove enumerated.

     Sec. 2. RCW 23B.01.220 and 1992 c 107 s 7 are each amended to read as follows:

     (1) The secretary of state shall collect in accordance with the provisions of this title:

     (a) Fees for filing documents and issuing certificates;

     (b) Miscellaneous charges;

     (c) License fees as provided in RCW 23B.01.500 through 23B.01.550;

     (d) Penalty fees; and

     (e) Other fees as the secretary of state may establish by rule adopted under chapter 34.05 RCW.

     (2) The secretary of state shall collect the following fees when the documents described in this subsection are delivered for filing:

     (((a))) One hundred seventy-five dollars, pursuant to RCW 23B.01.520 and 23B.01.540, for:

     (((i))) (a) Articles of incorporation; and

     (((ii))) (b) Application for certificate of authority;

     (((b) Fifty dollars for an))

     (3) The secretary of state shall establish by rule, fees for the following:

     (a) Application for reinstatement;

     (((c) Twenty-five dollars for:

     (i))) (b) Articles of correction;

     (((ii))) (c) Amendment of articles of incorporation;

     (((iii))) (d) Restatement of articles of incorporation, with or without amendment;

     (((iv))) (e) Articles of merger or share exchange;

     (((v))) (f) Articles of revocation of dissolution; ((and

     (vi))) (g) Application for amended certificate of authority;

     (((d) Twenty dollars for an)) (h) Application for reservation, registration, or assignment of reserved name;

     (((e) Ten dollars for:))

     (i) Corporation's statement of change of registered agent or registered office, or both, except where this information is provided in conjunction with and on an initial report or an annual report form filed under RCW 23B.01.530, 23B.01.550, 23B.02.050, or 23B.16.220;

     (((ii))) (j) Agent's resignation, or statement of change of registered office, or both, for each affected corporation;

     (((iii))) (k) Initial report; and

     (((iv))) (l) Any document not listed in this subsection that is required or permitted to be filed under this title((;)).

     (((f) No fee)) (4) Fees shall be adjusted by rule only in an amount that does not exceed the average biennial increase in the cost of providing service. This shall be determined in a biennial cost study performed by the secretary.

     (5) The secretary of state shall not collect fees for:

     (((i))) (a) Agent's consent to act as agent;

     (((ii))) (b) Agent's resignation, if appointed without consent;

     (((iii))) (c) Articles of dissolution;

     (((iv))) (d) Certificate of judicial dissolution;

     (((v))) (e) Application for certificate of withdrawal; and

     (((vi))) (f) Annual report when filed concurrently with the payment of annual license fees.

     (((3))) (6) The secretary of state shall collect a fee ((of twenty-five dollars)) in an amount established by the secretary of state by rule per defendant served, upon being served process under this title. The party to a proceeding causing service of process is entitled to recover this fee as costs if such party prevails in the proceeding.

     (((4))) (7) The secretary of state shall establish by rule and collect a fee from every person or organization:

     (a) For furnishing a certified copy of any document, instrument, or paper relating to a corporation((, ten dollars for the certificate, plus twenty cents for each page copied));

     (b) For furnishing a certificate, under seal, attesting to the existence of a corporation, or any other certificate((, ten dollars)); and

     (c) For furnishing copies of any document, instrument, or paper relating to a corporation, other than of an initial report or an annual report((, one dollar for the first page and twenty cents for each page copied thereafter. The fee for furnishing a copy of the most recent annual report of a corporation (or of the initial report if no annual report has been filed) is one dollar, and the fee for furnishing a copy of any other annual report of a corporation is five dollars)).

     (((5))) (8) For annual license fees for domestic and foreign corporations, see RCW 23B.01.500, 23B.01.510, 23B.01.530, and 23B.01.550. For penalties for nonpayment of annual license fees and failure to complete annual report, see RCW 23B.01.570.

     Sec. 3. RCW 23B.01.530 and 1989 c 165 s 19 are each amended to read as follows:

     For the privilege of doing business, every corporation organized under the laws of this state, except the corporations for which existing law provides a different fee schedule, shall make and file a statement in the form prescribed by the secretary of state and shall pay an annual license fee each year following incorporation, on or before the expiration date of its corporate license, to the secretary of state. The secretary of state shall collect an annual license fee of ten dollars for each inactive corporation and fifty dollars for other corporations. As used in this section, "inactive corporation" means a corporation that certifies at the time of filing under this section that it did not engage in any business activities during the year ending on the expiration date of its corporate license.

     Sec. 4. RCW 23B.01.560 and 1989 c 165 s 22 are each amended to read as follows:

     (1) A corporation seeking reinstatement shall pay the full amount of all annual corporation license fees which would have been assessed for the license years of the period of administrative dissolution had the corporation been in active status, plus a surcharge ((of twenty-five percent)) established by the secretary of state by rule, and the license fee for the year of reinstatement.

     (2) The penalties herein established shall be in lieu of any other penalties or interest which could have been assessed by the secretary of state under the corporation laws or which, under those laws, would have accrued during any period of delinquency, dissolution, or expiration of corporate duration.

     Sec. 5. RCW 24.03.405 and 1991 c 223 s 1 are each amended to read as follows:

     (1) The secretary of state shall charge and collect for:

     (((1))) (a) Filing articles of incorporation ((or)), thirty dollars.

     (b) Filing an annual report of a domestic or foreign corporation, ten dollars.

     (c) Filing an application of a foreign corporation for a certificate of authority to conduct affairs in this state, thirty dollars.

     (2) The secretary of state shall establish by rule, fees for the following:

     (a) An application for reinstatement under RCW 24.03.386((, thirty dollars)).

     (((2))) (b) Filing articles of amendment or restatement or an amendment or supplement to an application for reinstatement((, twenty dollars)).

     (((3))) (c) Filing articles of merger or consolidation((, twenty dollars)).

     (((4))) (d) Filing a statement of change of address of registered office or change of registered agent, or revocation, resignation, or any combination of these((, ten dollars)). A separate fee for filing such statement shall not be charged if the statement appears in an amendment to articles of incorporation or in conjunction with the filing of the annual report.

     (((5))) (e) Filing articles of dissolution, no fee.

     (((6) Filing an application of a foreign corporation for a certificate of authority to conduct affairs in this state, thirty dollars.

     (7))) (f) Filing an application of a foreign corporation for an amended certificate of authority to conduct affairs in this state((, twenty dollars)).

     (((8))) (g) Filing an application for withdrawal of a foreign corporation and issuing a certificate of withdrawal, no fee.

     (((9))) (h) Filing a certificate by a foreign corporation of the appointment of a registered agent((, ten dollars)). A separate fee for filing such certificate shall not be charged if the statement appears in conjunction with the filing of the annual report.

     (((10))) (i) Filing a certificate of election adopting the provisions of chapter 24.03 RCW((, twenty dollars)).

     (((11))) (j) Filing an application to reserve a corporate name((, twenty dollars)).

     (((12))) (k) Filing a notice of transfer of a reserved corporate name((, twenty dollars)).

     (((13))) (l) Filing a name registration((, twenty dollars per year, or part thereof)).

     (((14) Filing an annual report of a domestic or foreign corporation, ten dollars.

     (15))) (m) Filing any other statement or report authorized for filing under this chapter((, ten dollars)).

     (3) Fees shall be adjusted by rule only in an amount that does not exceed the average biennial increase in the cost of providing service. This shall be determined in a biannual cost study performed by the secretary.

     Sec. 6. RCW 24.03.410 and 1982 c 35 s 111 are each amended to read as follows:

     The secretary of state shall ((charge)) establish fees by rule and collect:

     (1) For furnishing a certified copy of any charter document or any other document, instrument, or paper relating to a corporation((, five dollars for the certificate, plus twenty cents for each page copied)).

     (2) For furnishing a certificate, under seal, attesting to the status of a corporation((;)) or any other certificate((, five dollars)).

     (3) For furnishing copies of any document, instrument or paper relating to a corporation((, one dollar for the first page and twenty cents for each page copied thereafter)).

     (4) At the time of any service of process on him or her as registered agent of a corporation((, twenty-five dollars, which)) an amount that may be recovered as taxable costs by the party to the suit or action causing such service to be made if such party prevails in the suit or action.

     Sec. 7. RCW 24.06.450 and 1991 c 223 s 2 are each amended to read as follows:

     (1) The secretary of state shall charge and collect for:

     (((1))) (a) Filing articles of incorporation, thirty dollars.

     (((2) Filing articles of amendment or restatement, twenty dollars.

     (3))) (b) Filing an annual report, ten dollars.

     (c) Filing an application of a foreign corporation for a certificate of authority to conduct affairs in this state, thirty dollars.

     (2) The secretary of state shall establish by rule, fees for the following:

     (a) Filing articles of amendment or restatement.

     (b) Filing articles of merger or consolidation((, twenty dollars)).

     (((4))) (c) Filing a statement of change of address of registered office or change of registered agent, or revocation, resignation, or any combination of these((, ten dollars)). A separate fee for filing such statement shall not be charged if the statement appears in an amendment to the articles of incorporation or in conjunction with the annual report.

     (((5))) (d) Filing articles of dissolution, no fee.

     (((6) Filing an application of a foreign corporation for a certificate of authority to conduct affairs in this state, thirty dollars.

     (7))) (e) Filing an application of a foreign corporation for an amended certificate of authority to conduct affairs in this state((, twenty dollars)).

     (((8))) (f) Filing a copy of an amendment to the articles of incorporation of a foreign corporation holding a certificate of authority to conduct affairs in this state((, twenty dollars)).

     (((9))) (g) Filing a copy of articles of merger of a foreign corporation holding a certificate of authority to conduct affairs in this state((, twenty dollars)).

     (((10))) (h) Filing an application for withdrawal of a foreign corporation and issuing a certificate of withdrawal, no fee.

     (((11))) (i) Filing a certificate by a foreign corporation of the appointment of a registered agent((, ten dollars)). A separate fee for filing such certificate shall not be charged if the statement appears in an amendment to the articles of incorporation or in conjunction with the annual report.

     (((12))) (j) Filing a certificate by a foreign corporation of the revocation of the appointment of a registered agent((, ten dollars)). A separate fee for filing such certificate shall not be charged if the statement appears in an amendment to the articles of incorporation or in conjunction with the annual report.

     (((13))) (k) Filing an application to reserve a corporate name((, twenty dollars)).

     (((14))) (l) Filing a notice of transfer of a reserved corporate name((, twenty dollars)).

     (((15))) (m) Filing any other statement or report((, including an annual report,)) of a domestic or foreign corporation((, ten dollars)).

     (3) Fees shall be adjusted by rule in an amount that does not exceed the average biennial increase in the cost of providing service. This shall be determined in a biennial cost study performed by the secretary.

     Sec. 8. RCW 24.06.455 and 1982 c 35 s 155 are each amended to read as follows:

     The secretary of state shall ((charge and collect in advance)) establish by rule, fees for the following:

     (1) For furnishing a certified copy of any charter document or any other document, instrument, or paper relating to a corporation((, five dollars for the certificate, plus twenty cents for each page copied.));

     (2) For furnishing a certificate, under seal, attesting to the status of a corporation; or any other certificate((, five dollars.));

     (3) For furnishing copies of any document, instrument, or paper relating to a corporation((, one dollar for the first page and twenty cents for each page copied thereafter.)); and

     (4) At the time of any service of process on ((him)) the secretary of state as resident agent of any corporation((, twenty-five dollars, which)). This amount may be recovered as taxable costs by the party to the suit or action causing such service to be made if such party prevails in the suit or action.

     Sec. 9. RCW 24.06.520 and 1982 c 35 s 162 are each amended to read as follows:

     If the term of existence of a corporation which was organized under this chapter, or which has availed itself of the privileges thereby provided expires, such corporation shall have the right to renew within two years of the expiration of its term of existence. The corporation may renew the term of its existence for a definite period or perpetually and be reinstated under any name not then in use by or reserved for a domestic corporation organized under any act of this state or a foreign corporation authorized under any act of this state to transact business or conduct affairs in this state. To do so the directors, members and officers shall adopt amended articles of incorporation containing a certification that the purpose thereof is a reinstatement and renewal of the corporate existence. They shall proceed in accordance with the provisions of this chapter for the adoption and filing of amendments to articles of incorporation. Thereupon such corporation shall be reinstated and its corporate existence renewed as of the date on which its previous term of existence expired and all things done or omitted by it or by its officers, directors, agents and members before such reinstatement shall be as valid and have the same legal effect as if its previous term of existence had not expired.

     A corporation reinstating under this section shall pay to the state all fees and penalties which would have been due if the corporate charter had not expired, plus a reinstatement fee ((of twenty-five dollars)) established by the secretary of state by rule.

     Sec. 10. RCW 24.20.020 and 1982 c 35 s 165 are each amended to read as follows:

     The secretary of state shall file such articles of incorporation in ((his)) the secretary of state's office and issue a certificate of incorporation to any such lodge or other society upon the payment of the sum of twenty dollars.

     Sec. 11. RCW 24.24.100 and 1982 c 35 s 167 are each amended to read as follows:

     The secretary of state shall file such articles of incorporation or amendment thereto in ((his)) the secretary of state's office and issue a certificate of incorporation or amendment, as the case may be, to such fraternal association upon the payment of a fee in the sum of twenty dollars.

     Sec. 12. RCW 31.12.085 and 1984 c 31 s 10 are each amended to read as follows:

     (1) Upon the approval of the supervisor under RCW 31.12.075(2), the applicants shall file a copy of the articles of incorporation with the secretary of state. Upon receipt of the approved articles of incorporation and a ((five)) twenty dollar filing fee to be provided by the applicants, the secretary of state shall file and record the articles of incorporation. The applicants shall in writing promptly notify the supervisor of the exact date of the filing.

     (2) Upon the filing and recording of the approved articles of incorporation with the secretary of state, the persons named in the articles of incorporation and their successors may operate as a credit union, which shall have the powers and be subject to the duties and obligations of this chapter. A credit union shall not conduct business until the articles have been recorded by the secretary of state.

     (3) A credit union shall organize and begin business within six months of the date that its articles of incorporation are filed and recorded with the secretary of state or its charter shall become void, unless the supervisor for cause grants an extension of the six-month period. The supervisor shall not grant a single extension exceeding three months, but may grant as many extensions to a credit union as circumstances require.

     Sec. 13. RCW 33.28.010 and 1981 c 302 s 33 are each amended to read as follows:

     The secretary of state shall collect fees of twenty dollars in advance ((the following fees from each association:)) for filing articles of incorporation((, or amendments thereof, or)). The secretary of state shall establish by rule, fees for amendments to articles of incorporation, other certificates required to be filed in his or her office, ((ten dollars;)) and for furnishing copies of papers filed in his or her office((, per folio, twenty cents)).

     Every association shall also pay to the secretary of state, for filing any instrument with him or her, the same fees as are required of general corporations for filing similar papers.

     NEW SECTION. Sec. 14. A new section is added to chapter 43.07 RCW to read as follows:

     The secretary of state may adopt rules under chapter 34.05 RCW establishing reasonable fees for the following services rendered under chapter 11.110 or 19.09 RCW:

     (1) Any service rendered in-person at the secretary of state's office;

     (2) Any expedited service;

     (3) The electronic transmittal of documents;

     (4) The providing of information by microfiche or other reduced-format compilation;

     (5) The handling of checks or drafts for which sufficient funds are not on deposit;

     (6) The resubmission of documents previously submitted to the secretary of state where the documents have been returned to the submitter to make such documents conform to the requirements of the applicable statute;

     (7) The handling of telephone requests for information; and

     (8) Special search charges.

     Sec. 15. RCW 43.07.120 and 1991 c 72 § 53 are each amended to read as follows:

     (1) The secretary of state shall establish by rule and collect the fees ((herein prescribed for the secretary of state's official services)) in this subsection:

     (a) For a copy of any law, resolution, record, or other document or paper on file in the secretary's office ((for which no other fee is provided, fifty cents per page for the first ten pages and twenty-five cents per page for each additional page));

     (b) For any certificate under seal((, five dollars));

     (c) For filing and recording trademark((, fifty dollars));

     (d) For each deed or patent of land issued by the governor((, if for one hundred and sixty acres of land, or less, one dollar, and for each additional one hundred and sixty acres, or fraction thereof, one dollar));

     (e) For recording miscellaneous records, papers, or other documents((, five dollars for filing each case)).

     (2) The secretary of state may adopt rules under chapter 34.05 RCW establishing reasonable fees for the following services rendered under Title 23B RCW, chapter 18.100, 23.86, 23.90, 24.03, 24.06, 24.12, 24.20, 24.24, 24.28, 24.36, or 25.10 RCW:

     (a) Any service rendered in-person at the secretary of state's office;

     (b) Any expedited service;

     (c) The electronic or facsimile transmittal of information from corporation records or copies of documents;

     (d) The providing of information by ((microfiche)) micrographic or other reduced-format compilation;

     (e) The handling of checks ((or)), drafts, or credit or debit cards upon adoption of rules authorizing their use for which sufficient funds are not on deposit; and

     (f) ((The resubmission of documents previously submitted to the secretary of state where the documents have been returned to the submitter to make such documents conform to the requirements of the applicable statute;

     (g) The handling of telephone requests for information; and

     (h))) Special search charges.

     (3) To facilitate the collection of fees, the secretary of state may establish accounts for deposits by persons who may frequently be assessed such fees to pay the fees as they are assessed. The secretary of state may make whatever arrangements with those persons as may be necessary to carry out this section.

     (4) The secretary of state may adopt rules for the use of credit or debit cards for payment of fees.

     (5) No member of the legislature, state officer, justice of the supreme court, judge of the court of appeals, or judge of the superior court shall be charged for any search relative to matters pertaining to the duties of his or her office; nor may such official be charged for a certified copy of any law or resolution passed by the legislature relative to his or her official duties, if such law has not been published as a state law.

     Sec. 16. RCW 46.64.040 and 1982 c 35 s 197 are each amended to read as follows:

     The acceptance by a nonresident of the rights and privileges conferred by law in the use of the public highways of this state, as evidenced by his or her operation of a vehicle thereon, or the operation thereon of his or her vehicle with his or her consent, express or implied, shall be deemed equivalent to and construed to be an appointment by such nonresident of the secretary of state of the state of Washington to be his or her true and lawful attorney upon whom may be served all lawful summons and processes against him or her growing out of any accident, collision, or liability in which such nonresident may be involved while operating a vehicle upon the public highways, or while his or her vehicle is being operated thereon with his or her consent, express or implied, and such operation and acceptance shall be a signification of ((his)) the nonresident's agreement that any summons or process against him or her which is so served shall be of the same legal force and validity as if served on ((him)) the nonresident personally within the state of Washington. Likewise each resident of this state who, while operating a motor vehicle on the public highways of this state, is involved in any accident, collision or liability and thereafter within three years departs from this state appoints the secretary of state of the state of Washington as his or her lawful attorney for service of summons as provided in this section for nonresidents. Service of such summons or process shall be made by leaving two copies thereof with a fee ((of twenty-five dollars)) established by the secretary of state by rule with the secretary of state of the state of Washington, or at ((his)) the secretary of state's office, and such service shall be sufficient and valid personal service upon said resident or nonresident: PROVIDED, That notice of such service and a copy of the summons or process is forthwith sent by registered mail with return receipt requested, by plaintiff to the defendant at the last known address of the said defendant, and the plaintiff's affidavit of compliance herewith are appended to the process, together with the affidavit of the plaintiff's attorney that ((he)) the attorney has with due diligence attempted to serve personal process upon the defendant at all addresses known to him or her of defendant and further listing in his or her affidavit the addresses at which he or she attempted to have process served. However, if process is forwarded by registered mail and defendant's endorsed receipt is received and entered as a part of the return of process then the foregoing affidavit of plaintiff's attorney need only show that the defendant received personal delivery by mail: PROVIDED FURTHER, That personal service outside of this state in accordance with the provisions of law relating to personal service of summons outside of this state shall relieve the plaintiff from mailing a copy of the summons or process by registered mail as hereinbefore provided. The secretary of state shall forthwith send one of such copies by mail, postage prepaid, addressed to the defendant at ((his)) the defendant's address, if known to the secretary of state. The court in which the action is brought may order such continuances as may be necessary to afford the defendant reasonable opportunity to defend the action. The fee ((of twenty-five dollars)) paid by the plaintiff to the secretary of state shall be taxed as part of his or her costs if he or she prevails in the action. The secretary of state shall keep a record of all such summons and processes, which shall show the day of service.

     NEW SECTION. Sec. 17. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.", 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 Substitute Senate Bill No. 5492.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5492, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5492, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, 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., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Voting nay: Senator Hargrove - 1.

     Excused: Senator Smith, L. - 1.

     SUBSTITUTE SENATE BILL NO. 5492, 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 Rinehart was excused.


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5503 with the following amendment(s):

     On page 1, beginning on line 14, strike all of subsection (3) and insert the following:

     "(3)(a) As soon as recovery is so complete that the present earning power of the worker, at any kind of work, is restored to that existing at the time of the occurrence of the injury, the payments shall cease. If and so long as the present earning power is only partially restored, the payments shall:

     (i) For claims for injuries that occurred before the effective date of this act, continue in the proportion which the new earning power shall bear to the old; or

     (ii) For claims for injuries occurring on or after the effective date of this act, equal eighty percent of the actual difference between the worker's present wages and earning power at the time of injury, but: (A) The total of these payments and the worker's present wages may not exceed one hundred fifty percent of the average monthly wage in the state as computed under RCW 51.08.018; (B) the payments may not exceed one hundred percent of the entitlement as computed under subsection (1) of this section; and (C) the payments may not be less than the worker would have received if (a)(i) of this subsection had been applicable to the worker's claim.

     (b) No compensation shall be payable under this subsection (3) unless the loss of earning power shall exceed five percent.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendments to Substitute Senate Bill No. 5503.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5503, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5503, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     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., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Excused: Senators Rinehart and Smith, L. - 2.

     SUBSTITUTE SENATE BILL NO. 5503, 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 17, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5508 with the following amendment(s):

     On page 7, beginning on line 23, after "parent" strike all material through "efforts." on line 26 and insert the following: ". Income shall not be imputed to a parent to the extent the parent is unemployed or significantly underemployed due to the parent's efforts to comply with court ordered reunification efforts under chapter 13.34 RCW or under a voluntary placement agreement with an agency supervising the child."

     On page 8, line 34, after "Costs" insert "incurred or", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Adam Smith, the Senate concurred in the House amendments to Engrossed Senate Bill No. 5508.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5508, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5508, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     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., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 46.

     Absent: Senator West - 1.

     Excused: Senators Rinehart and Smith, L. - 2.

     ENGROSSED SENATE BILL NO. 5508, 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 has passed SECOND SUBSTITUTE SENATE BILL NO. 5511 with the following amendment(s):

     On page 3, at the beginning of line 36, strike "Costs" and insert "However, costs"

     On page 3, line 37, after "registration" strike "cards" and insert "forms",

 and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Haugen, the Senate concurred in the House amendments to Second Substitute Senate Bill No. 5511.

     The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5511, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5511, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 16; Absent, 0; Excused, 2.

     Voting yea: Senators Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams, Winsley and Wojahn - 31.

     Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, Hochstatter, McCaslin, McDonald, Nelson, Newhouse, Oke, Prince, Roach, Sellar, von Reichbauer and West - 16.

     Excused: Senators Rinehart and Smith, L. - 2.

     SECOND SUBSTITUTE SENATE BILL NO. 5511, 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 has passed SENATE BILL NO. 5523 with the following amendment(s):

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

     "Sec. 1. RCW 3.34.130 and 1986 c 161 § 4 are each amended to read as follows:

     (1) Each district court shall designate one or more persons as judge pro tempore who shall serve during the temporary absence, disqualification, or incapacity of a district judge. The qualifications of a judge pro tempore shall be the same as for a district judge, except that with respect to RCW 3.34.060(1), the person appointed need only be a registered voter of the state. A district that has a population of not more than ten thousand and that has no person available who meets the qualifications under RCW 3.34.060 (2)(a) or (b), may appoint as a pro tempore judge a person who has taken and passed the qualifying examination for the office of district judge as is provided by rule of the supreme court. A judge pro tempore may sit in any district of the county for which he or she is appointed. A judge pro tempore shall be paid the salary authorized by the county legislative authority. For each day that a judge pro tempore serves in excess of thirty days during any calendar year, the annual salary of the judge in whose place he or she serves shall be reduced by an amount equal to one-two hundred fiftieth of such salary: PROVIDED, That each full time district judge shall have up to fifteen days annual leave without reduction for service on judicial commissions established by the legislature or the chief justice of the supreme court. No reduction in salary shall occur when a judge pro tempore serves while a district judge is using sick leave granted in accordance with RCW 3.34.100.

     (2) The legislature may appropriate money for the purpose of reimbursing counties for the salaries of judges pro tempore for certain days in excess of thirty worked per year that the judge pro tempore was required to work as the result of service by a judge on a commission as authorized under subsection (1) of this section. No later than September 1 of each year, each county treasurer shall certify to the administrator for the courts for the year ending the preceding June 30, the number of days in excess of thirty that any judge pro tempore was required to work as the result of service by a judge on a commission as authorized under subsection (1) of this section. Upon receipt of the certification, the administrator for the courts shall reimburse the county from money appropriated for that purpose.", 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 Senate Bill No. 5523.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5523, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5523, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 2; Absent, 0; Excused, 2.

     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, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 45.

     Voting nay: Senators Niemi and Quigley - 2.

     Excused: Senators Rinehart and Smith, L. - 2.

     SENATE BILL NO. 5523, 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 has passed SUBSTITUTE SENATE BILL NO. 5528 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 36.18.020 and 1992 c 54 s 1 are each amended to read as follows:

     Clerks of superior courts shall collect the following fees for their official services:

     (1) The party filing the first or initial paper in any civil action, including an action for restitution, or change of name, shall pay, at the time said paper is filed, a fee of one hundred ten dollars except in proceedings filed under RCW 26.50.030 or 49.60.227 where the petitioner shall pay a filing fee of twenty dollars, or an unlawful detainer action under chapter 59.18 or 59.20 RCW where the plaintiff shall pay a filing fee of thirty dollars. If the defendant serves or files an answer to an unlawful detainer complaint under chapter 59.18 or 59.20 RCW, the plaintiff shall pay, prior to proceeding with the unlawful detainer action, an additional eighty dollars which shall be considered part of the filing fee. The thirty dollar filing fee under this subsection for an unlawful detainer action shall not include an order to show cause or any other order or judgment except a default order or default judgment in an unlawful detainer action.

     (2) Any party, except a defendant in a criminal case, filing the first or initial paper on an appeal from a court of limited jurisdiction or any party on any civil appeal, shall pay, when said paper is filed, a fee of one hundred ten dollars.

     (3) The party filing a transcript or abstract of judgment or verdict from a United States court held in this state, or from the superior court of another county or from a district court in the county of issuance, shall pay at the time of filing, a fee of fifteen dollars.

     (4) For the filing of a tax warrant by the department of revenue of the state of Washington, a fee of five dollars shall be paid.

     (5) For the filing of a petition for modification of a decree of dissolution, a fee of twenty dollars shall be paid.

     (6) The party filing a demand for jury of six in a civil action, shall pay, at the time of filing, a fee of fifty dollars; if the demand is for a jury of twelve the fee shall be one hundred dollars. If, after the party files a demand for a jury of six and pays the required fee, any other party to the action requests a jury of twelve, an additional fifty-dollar fee will be required of the party demanding the increased number of jurors.

     (7) For filing any paper, not related to or a part of any proceeding, civil or criminal, or any probate matter, required or permitted to be filed in the clerk's office for which no other charge is provided by law, or for filing a petition, written agreement, or memorandum as provided in RCW 11.96.170, the clerk shall collect ((two)) twenty dollars.

     (8) For preparing, transcribing or certifying any instrument on file or of record in the clerk's office, with or without seal, for the first page or portion thereof, a fee of two dollars, and for each additional page or portion thereof, a fee of one dollar. For authenticating or exemplifying any instrument, a fee of one dollar for each additional seal affixed.

     (9) For executing a certificate, with or without a seal, a fee of two dollars shall be charged.

     (10) For each garnishee defendant named in an affidavit for garnishment and for each writ of attachment, a fee of ((five)) twenty dollars shall be charged.

     (11) For approving a bond, including justification thereon, in other than civil actions and probate proceedings, a fee of two dollars shall be charged.

     (12) In probate proceedings, the party instituting such proceedings, shall pay at the time of filing the first paper therein, a fee of one hundred ten dollars: PROVIDED, HOWEVER, A fee of ((two)) twenty dollars shall be charged for filing a will only, when no probate of the will is contemplated. Except as provided for in subsection (13) of this section a fee of two dollars shall be charged for filing a petition, written agreement, or memorandum as provided in RCW 11.96.170.

     (13) For filing any petition to contest a will admitted to probate or a petition to admit a will which has been rejected, or a petition objecting to a written agreement or memorandum as provided in RCW 11.96.170, there shall be paid a fee of one hundred ten dollars.

     (14) For the issuance of each certificate of qualification and each certified copy of letters of administration, letters testamentary or letters of guardianship there shall be a fee of two dollars.

     (15) For the preparation of a passport application ((there shall be a fee of four dollars)) the clerk may collect an execution fee as authorized by the federal government.

     (16) For ((searching records for which a written report is issued there shall be a fee of eight dollars per hour)) clerks' special services such as processing ex parte orders by mail, performing historical searches, compiling statistical reports, and conducting exceptional record searches the clerk may collect a fee not to exceed twenty dollars per hour or portion of an hour.

     (17) For duplicated recordings of court's proceedings there shall be a fee of ten dollars for each audio tape and twenty-five dollars for each video tape.

     (((17))) (18) Upon conviction or plea of guilty, upon failure to prosecute an appeal from a court of limited jurisdiction as provided by law, or upon affirmance of a conviction by a court of limited jurisdiction, a defendant in a criminal case shall be liable for a fee of one hundred ten dollars.

     (((18))) (19) With the exception of demands for jury hereafter made and garnishments hereafter issued, civil actions and probate proceedings filed prior to midnight, July 1, 1972, shall be completed and governed by the fee schedule in effect as of January 1, 1972: PROVIDED, That no fee shall be assessed if an order of dismissal on the clerk's record be filed as provided by rule of the supreme court.

     (((19))) (20) No fee shall be collected when a petition for relinquishment of parental rights is filed pursuant to RCW 26.33.080 or for forms and instructional brochures provided under RCW 26.50.030.

     NEW SECTION. Sec. 2. A new section is added to chapter 26.12 RCW to read as follows:

     A county may create a courthouse facilitator program to provide basic services to pro se litigants in family law cases. The legislative authority of any county may impose user fees or may impose a surcharge of up to ten dollars on only those superior court cases filed under Title 26 RCW, or both, to pay for the expenses of the courthouse facilitator program. Fees collected under this section shall be collected and deposited in the same manner as other county funds are collected and deposited, and shall be maintained in a separate account to be used as provided in this section.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     Senator Adam Smith moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5528.


POINT OF INQUIRY


     Senator Talmadge: "Senator Smith, what are these facilitators in domestic relation's cases in the Superior Court to do? I am not familiar with Representative Appelwick's bill and this idea of having someone who looks to me very much like they are going to be providing some legal assistance to people. Preciously what is it that they are going to be doing?"

     Senator Adam Smith: "Well, my understanding is that this is a program that several counties had, but they were doing it by a grant that ran out, so this is another way to make that program work. Frankly, as far as specifically what they are doing, I don't know specifically, but I have heard that it works very well--advising them on domestic relation's cases--so they don't have to go out and pay a lot of money for a lawyer to give them some pro se advise. That is my understanding of it."

     The President declared the question before the Senate to be the motion by Senator Adam Smith that the Senate do concur in the House amendment to Substitute Senate Bill No. 5528.

     The motion by Senator Adam Smith carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5528.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5528, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5528, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 33; Nays, 14; Absent, 0; Excused, 2.

     Voting yea: Senators Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Winsley and Wojahn - 33.

     Voting nay: Senators Amondson, Anderson, Cantu, Hochstatter, McCaslin, McDonald, Nelson, Newhouse, Oke, Prince, Roach, Sellar, von Reichbauer and Williams - 14.

     Excused: Senators Rinehart and Smith, L. - 2.

     SUBSTITUTE SENATE BILL NO. 5528, 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 6, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5534 with the following amendment(s):

     On page 1, beginning on line 14, strike the remainder of subsection (b) and insert "have terminal operations in the state of Washington are subject to commission jurisdiction.", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Vognild, the Senate concurred in the House amendment to Engrossed Senate Bill No. 5534.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5534, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5534, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     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., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Wojahn - 46.

     Absent: Senator Winsley - 1.

     Excused: Senators Rinehart and Smith, L. - 2.

     ENGROSSED SENATE BILL NO. 5534, 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 has passed SENATE BILL NO. 5635 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 18.130 RCW to read as follows:

      If the department communicates in writing to a complainant, or his or her representative, regarding his or her complaint, such communication shall not include the address or telephone number of the health care provider against whom he or she has complained. The department shall inform all applicants for a health care provider license of the provisions of this section and RCW 42.17.310 regarding the release of address and telephone information.

      Sec. 2. RCW 42.17.310 and 1992 c 139 s 5 and 1992 c 71 s 12 are each reenacted and amended to read as follows:

      (1) The following are exempt from public inspection and copying:

      (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

      (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

      (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

      (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

      (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

      (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

      (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

      (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

      (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

      (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

      (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

      (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

      (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.

      (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

      (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW.

      (p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

      (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

      (r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapter 43.163 RCW and chapters 43.31, 43.63A, and 43.168 RCW.

      (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

      (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

      (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

      (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

      (w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying if the provider has provided the department with an accurate alternative or business address and telephone number.

      (x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

      (((x))) (y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

      (((y))) (z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

      (((z))) (aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

      (((aa))) (bb) Financial and valuable trade information under RCW 51.36.120.

      (((bb))) (cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.

      (((cc))) (dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

      (((dd))) (ee) Business related information protected from public inspection and copying under RCW 15.86.110.

      (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

      (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

      (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.

      NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Talmadge, the Senate concurred in the House amendment to Senate Bill No. 5635.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5635, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5635, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

     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., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams and Wojahn - 46.

     Absent: Senators Vognild and Winsley - 2.

     Excused: Senator Rinehart - 1.

     SENATE BILL NO. 5635, 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 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1458 and asks the Senate for a conference thereon. The Speaker has appointed the following members as conferees: Representatives Zellinsky, R. Meyers and Mielke.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate grants the request of the House for a conference on Substitute House Bill No. 1458 and the Senate amendments thereto.


APPOINTMENT OF CONFERENCE COMMITTEE


     The President appointed as members of the Conference Committee on Substitute House Bill No. 1458 and the Senate amendments thereto: Senators Moore, Cantu and Vognild.


MOTION


     On motion of Senator Moore, the Conference Committee appointments were confirmed.


MOTION


     At 10:24 a. m., on motion of Senator Jesernig, the Senate was declared to be at ease.


     The Senate was called to order at 11:38 a.m. by President Pritchard.


MESSAGES FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The Speaker has signed:

     SUBSTITUTE SENATE BILL NO. 5066,

     SUBSTITUTE SENATE BILL NO. 5068,

     SUBSTITUTE SENATE BILL NO. 5134,

     SUBSTITUTE SENATE BILL NO. 5159,

     SENATE BILL NO. 5290,

     SENATE BILL NO. 5309,

     SUBSTITUTE SENATE BILL NO. 5310,

     SENATE BILL NO. 5541,

     SENATE BILL NO. 5578,

     SENATE BILL NO. 5649,

     SENATE BILL NO. 5759,

     SENATE BILL NO. 5835,

     SENATE BILL NO. 5906, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


April 19, 1993


MR. PRESIDENT:

     The House has concurred in the Senate amendment(s) to the following bills and passed bills as amended by the Senate:

     SUBSTITUTE HOUSE BILL NO. 1012,

     HOUSE BILL NO. 1024,

     SUBSTITUTE HOUSE BILL NO. 1026,

     ENGROSSED HOUSE BILL NO. 1033,

     SUBSTITUTE HOUSE BILL NO. 1051,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1059,

     SUBSTITUTE HOUSE BILL NO. 1061,

     ENGROSSED HOUSE BILL NO. 1067,

     HOUSE BILL NO. 1068,

     HOUSE BILL NO. 1074,

     SUBSTITUTE HOUSE BILL NO. 1077,

     HOUSE BILL NO. 1078,

     ENGROSSED HOUSE BILL NO. 1081,

     SUBSTITUTE HOUSE BILL NO. 1082,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1084,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1089,

     SUBSTITUTE HOUSE BILL NO. 1100,

     ENGROSSED HOUSE BILL NO. 1110,

     ENGROSSED HOUSE BILL NO. 1115,

     SUBSTITUTE HOUSE BILL NO. 1128,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1157,

     HOUSE BILL NO. 1165,

     SUBSTITUTE HOUSE BILL NO. 1183,

     HOUSE BILL NO. 1188,

     SUBSTITUTE HOUSE BILL NO. 1195,

     SUBSTITUTE HOUSE BILL NO. 1211,

     SUBSTITUTE HOUSE BILL NO. 1219,

     SUBSTITUTE HOUSE BILL NO. 1226,

     ENGROSSED HOUSE BILL NO. 1271,

     SUBSTITUTE HOUSE BILL NO. 1316,

     SUBSTITUTE HOUSE BILL NO. 1325,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1326,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1333,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1338,

     SUBSTITUTE HOUSE BILL NO. 1356,

     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1569, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Loveland, Senator Owen was excused.


MESSAGE FROM THE HOUSE


April 15, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5245 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 46.61.502 and 1987 c 373 s 2 are each amended to read as follows:

      (1) A person is guilty of driving while under the influence of intoxicating liquor or any drug if the person drives a vehicle within this state ((while)):

      (((1))) (a) And the person has 0.10 grams or more of alcohol per two hundred ten liters of breath within two hours after driving, as shown by analysis of the person's breath made under RCW 46.61.506; or

      (((2))) (b) And the person has 0.10 percent or more by weight of alcohol in the person's blood within two hours after driving, as shown by analysis of the person's blood made under RCW 46.61.506; or

      (((3))) (c) While the person is under the influence of or affected by intoxicating liquor or any drug; or

      (((4))) (d) While the person is under the combined influence of or affected by intoxicating liquor and any drug.

      (2) The fact that any person charged with a violation of this section is or has been entitled to use such drug under the laws of this state shall not constitute a defense against any charge of violating this section.

      (3) It is an affirmative defense to a violation of subsection (1) (a) and (b) of this section which the defendant must prove by a preponderance of the evidence that the defendant consumed a sufficient quantity of alcohol after the time of driving and before the administration of an analysis of the person's breath or blood to cause the defendant's alcohol concentration to be 0.10 or more within two hours after driving. The court shall not admit evidence of this defense unless the defendant notifies the prosecution prior to the omnibus or pretrial hearing in the case of the defendant's intent to assert the affirmative defense.

      (4) Analyses of blood or breath samples obtained more than two hours after the alleged driving may be used as evidence that within two hours of the alleged driving, a person had 0.10 grams or more of alcohol per two hundred ten liters of breath or 0.10 percent or more of alcohol in the person's blood, pursuant to subsection (1) (a) and (b) of this section, and may be used as evidence that a person was under the influence of or affected by intoxicating liquors or any drug pursuant to subsection (1) (c) and (d) of this section.

      Sec. 2. RCW 46.61.504 and 1987 c 373 s 3 are each amended to read as follows:

      (1) A person is guilty of being in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug if the person has actual physical control of a vehicle within this state ((while)):

      (((1))) (a) And the person has 0.10 grams or more of alcohol per two hundred ten liters of breath within two hours after being in actual physical control of a motor vehicle, as shown by analysis of the person's breath made under RCW 46.61.506; or

      (((2))) (b) And the person has 0.10 percent or more by weight of alcohol in the person's blood within two hours after being in actual physical control of a motor vehicle, as shown by analysis of the person's blood made under RCW 46.61.506; or

      (((3))) (c) While the person is under the influence of or affected by intoxicating liquor or any drug; or

      (((4))) (d) While the person is under the combined influence of or affected by intoxicating liquor and any drug.

      (2) The fact that any person charged with a violation of this section is or has been entitled to use such drug under the laws of this state shall not constitute a defense against any charge of violating this section. No person may be convicted under this section if, prior to being pursued by a law enforcement officer, the person has moved the vehicle safely off the roadway.

      (3) It is an affirmative defense to a violation of subsection (1) (a) and (b) of this section which the defendant must prove by a preponderance of the evidence that the defendant consumed a sufficient quantity of alcohol after the time of being in actual physical control of a motor vehicle and before the administration of an analysis of the person's breath or blood to cause the defendant's alcohol concentration to be 0.10 or more within two hours after being in actual physical control of a motor vehicle. The court shall not admit evidence of this defense unless the defendant notifies the prosecution prior to the omnibus or pretrial hearing in the case of the defendant's intent to assert the affirmative defense.

      (4) Analyses of blood or breath samples obtained more than two hours after the alleged actual physical control of a motor vehicle may be used as evidence that within two hours of the alleged actual physical control of a motor vehicle, a person had 0.10 grams or more of alcohol per two hundred ten liters of breath or 0.10 percent or more of alcohol in the person's blood, pursuant to subsection (1) (a) and (b) of this section, and may be used as evidence that a person was under the influence of or affected by intoxicating liquors or any drug pursuant to subsection (1) (c) and (d) of this section.", 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 Senate Bill No. 5245.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5245, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5245, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 2; Excused, 2.

     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, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 45.

     Absent: Senators Smith, L. and West - 2.

     Excused: Senators Owen and Rinehart - 2.

     SENATE BILL NO. 5245, 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 17, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5280 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

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

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

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

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendment to Engrossed Senate Bill No. 5280.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5280, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5280, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 7; Absent, 0; Excused, 2.

     Voting yea: Senators Anderson, Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, Moore, Moyer, Nelson, Newhouse, Niemi, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 40.

     Voting nay: Senators Amondson, Barr, Bluechel, Cantu, McCaslin, McDonald and Oke - 7.

     Excused: Senators Owen and Rinehart - 2.

     ENGROSSED SENATE BILL NO. 5280, 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.


SIGNED BY THE PRESIDENT


     The President signed:

     SUBSTITUTE SENATE BILL NO. 5025,

     SUBSTITUTE SENATE BILL NO. 5056,

     SENATE BILL NO. 5079,

     SUBSTITUTE SENATE BILL NO. 5088,

     SENATE BILL NO. 5124,

     SUBSTITUTE SENATE BILL NO. 5145,

     SUBSTITUTE SENATE BILL NO. 5179,

     ENGROSSED SUBSTITUTE SENATE BILL NO. 5186.


MOTION


     On motion of Senator Oke, Senator Prince was excused.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5484 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 60.04 RCW to read as follows:

     All rights acquired and liabilities incurred under acts or parts of act repealed by chapter 281, Laws of 1991, are hereby preserved, and all actions pending as of June 1, 1992, shall proceed under the law as it existed at the time chapter 281, Laws of 1991, took effect.

     NEW SECTION. Sec. 2. This act is remedial in nature and shall be applied retroactively to June 1, 1992.

     NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendment to Senate Bill No. 5484.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5484, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5484, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 45.

     Absent: Senator Deccio - 1.

     Excused: Senators Owen, Prince and Rinehart - 3.

     SENATE BILL NO. 5484, 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 McCaslin, Senator Amondson was excused.


MESSAGE FROM THE HOUSE


April 7, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5545 with the following amendment(s):

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

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

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

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

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

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

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

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

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

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

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

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

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

      NEW SECTION. Sec. 3. Section 2 of this act shall take effect July 29, 2001.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     Senator Moore moved that the Senate do concur in the House amendments to Engrossed Senate Bill No. 5545.


POINT OF INQUIRY


     Senator Niemi: "Senator Williams, for the record, is the phrase 'designing buildings as a principal activity' intended to include building designers working under the provisions of RCW 18.08.410 (5) and (6)?"

     Senator Williams: "Yes."

     Senator Niemi: "And is the phrase 'supervised by an architect with detailed professional knowledge of the work of the applicant' intended to clarify that the board shall recognize other mentor/learner relationships between the architect and the exam applicant beside employer/employee relationships?"

     Senator Williams: "Yes."

     The President declared the question before the Senate to be the motion by Senator Moore that the Senate do concur in the House amendments to Engrossed Senate Bill No. 5545.

     The motion by Senator Moore carried and the Senate concurred in the House amendments to Engrossed Senate Bill No. 5545.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5545, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5545, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

     Voting yea: Senators 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, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 45.

     Excused: Senators Amondson, Owen, Prince and Rinehart - 4.

     ENGROSSED SENATE BILL NO. 5545, 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 12:01 p.m., on motion of Senator Jesernig, the Senate recessed until 1:00 p.m.


     The Senate was called to order at 1:06 p.m. by President Pritchard.


MOTIONS


     On motion of Senator Oke, Senators Barr, Deccio, McCaslin, Moyer, Sellar and West were excused.

     On motion of Senator Loveland, Senators Skratek and Talmadge were excused.


STATEMENT FOR THE JOURNAL


     Due to work on health care reform, I missed the votes on concurrence on Engrossed Substitute House Bill No. 5574; Senate Bill No. 5584; Substitute Senate Bill No. 5686; Senate Bill No. 5330; Engrossed Senate Bill No. 5342 and Senate Bill No. 5799.

     I would have voted 'yes' on each measure.

SENATOR PHIL TALMADGE, 34th District


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5574 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds and declares that consumers have a vital interest in establishing and maintaining creditworthiness. The legislature further finds that an elaborate mechanism using credit reports has developed for investigating and evaluating a consumer's creditworthiness, credit capacity, and general reputation and character. As such, credit reports are used for evaluating credit card, loan, mortgage, and small business financing applications, as well as for decisions regarding employment and the rental or leasing of dwellings. Moreover, financial institutions and other creditors depend upon fair and accurate credit reports to efficiently and accurately evaluate creditworthiness. Unfair or inaccurate reports undermine both public and creditor confidences in the reliability of credit granting systems.

      Therefore, this chapter is necessary to assure accurate credit data collection, maintenance, and reporting on the citizens of the state. It is the policy of the state that credit reporting agencies maintain accurate credit reports, resolve disputed reports promptly and fairly, and adopt reasonable procedures to promote consumer confidentiality and the proper use of credit data in accordance with this chapter.

      NEW SECTION. Sec. 2. This chapter shall be known as the Fair Credit Reporting Act.

      NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1)(a) "Adverse action" includes:

      (i) Denial of, increase in any charge for, or reduction in the amount of insurance for personal, family, or household purposes;

      (ii) Denial of employment or any other decision for employment purposes that adversely affects a current or prospective employee;

      (iii) Action or determination with respect to a consumer's application for credit that is adverse to the interests of the consumer; and

      (iv) Action or determination with respect to a consumer's application for the rental or leasing of residential real estate that is adverse to the interests of the consumer.

      (b) "Adverse action" does not include:

      (i) A refusal to extend additional credit under an existing credit arrangement if:

      (A) The applicant is delinquent or otherwise in default with respect to the arrangement; or

      (B) The additional credit would exceed a previously established credit limit; or

      (ii) A refusal or failure to authorize an account transaction at a point of sale.

      (2) "Attorney general" means the office of the attorney general.

      (3) "Consumer" means an individual.

      (4)(a) "Consumer report" means a written, oral, or other communication of information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used or expected to be used or collected in whole or in part for:

      (i) The purpose of serving as a factor in establishing the consumer's eligibility for credit or insurance to be used primarily for personal, family, or household purposes;

      (ii) Employment purposes; or

      (iii) Other purposes authorized under section 4 of this act.

      (b) "Consumer report" does not include:

      (i) A report containing information solely as to transactions or experiences between the consumer and the person making the report;

      (ii) An authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device;

      (iii) A report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to the request, if the third party advises the consumer of the name and address of the person to whom the request was made and the person makes the disclosures to the consumer required under section 9 of this act;

      (iv) A list compiled by a consumer reporting agency to be used by its client for direct marketing of goods or services not involving an offer of credit;

      (v) A report solely conveying a decision whether to guarantee a check in response to a request by a third party; or

      (vi) A report furnished for use in connection with a transaction that consists of an extension of credit to be used for a commercial purpose.

      (5) "Consumer reporting agency" means a person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the business of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and who uses any means or facility of commerce for the purpose of preparing or furnishing consumer reports. "Consumer reporting agency" does not include a person solely by reason of conveying a decision whether to guarantee a check in response to a request by a third party or a person who obtains a consumer report and provides the report or information contained in it to a subsidiary or affiliate of the person.

      (6) "Credit transaction that is not initiated by the consumer" does not include the use of a consumer report by an assignee for collection or by a person with which the consumer has an account, for purposes of (a) reviewing the account, or (b) collecting the account. For purposes of this subsection "reviewing the account" includes activities related to account maintenance and monitoring, credit line increases, and account upgrades and enhancements.

      (7) "Direct solicitation" means the process in which the consumer reporting agency compiles or edits for a client a list of consumers who meet specific criteria and provides this list to the client or a third party on behalf of the client for use in soliciting those consumers for an offer of a product or service.

      (8) "Employment purposes," when used in connection with a consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee.

      (9) "File," when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

      (10) "Investigative consumer report" means a consumer report or portion of it in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any items of information. However, the information does not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when the information was obtained directly from a creditor of the consumer or from the consumer.

      (11) "Medical information" means information or records obtained, with the consent of the individual to whom it relates, from a licensed physician or medical practitioner, hospital, clinic, or other medical or medically related facility.

      (12) "Person" includes an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal or commercial entity.

      (13) "Prescreening" means the process in which the consumer reporting agency compiles or edits for a client a list of consumers who meet specific credit criteria and provides this list to the client or a third party on behalf of the client for use in soliciting those consumers for an offer of credit.

      NEW SECTION. Sec. 4. (1) A consumer reporting agency may furnish a consumer report only under the following circumstances:

      (a) In response to the order of a court having jurisdiction to issue the order;

      (b) In accordance with the written instructions of the consumer to whom it relates; or

      (c) To a person that the agency has reason to believe:

      (i) Intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;

      (ii) Intends to use the information for employment purposes;

      (iii) Intends to use the information in connection with the underwriting of insurance involving the consumer;

      (iv) Intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or

      (v) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.

      (2)(a) A person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer who is not an employee at the time the report is procured or caused to be procured unless:

      (i) A clear and conspicuous disclosure has been made in writing to the consumer before the report is procured or caused to be procured that a consumer report may be obtained for purposes of considering the consumer for employment. The disclosure may be contained in a written statement contained in employment application materials; or

      (ii) The consumer authorizes the procurement of the report.

      (b) A person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any employee unless the employee has received, at any time after the person became an employee, written notice that consumer reports may be used for employment purposes. A written statement that consumer reports may be used for employment purposes that is contained in employee guidelines or manuals available to employees or included in written materials provided to employees constitutes written notice for purposes of this subsection. This subsection does not apply with respect to a consumer report of an employee who the employer has reasonable cause to believe has engaged in specific activity that constitutes a violation of law.

      (c) In using a consumer report for employment purposes, before taking any adverse action based in whole or part on the report, a person shall provide to the consumer to whom the report relates: (i) The name, address, and telephone number of the consumer reporting agency providing the report; (ii) a description of the consumer's rights under this chapter pertaining to consumer reports obtained for employment purposes; and (iii) a reasonable opportunity to respond to any information in the report that is disputed by the consumer.

      NEW SECTION. Sec. 5. (1) A consumer reporting agency may provide a consumer report relating to a consumer under section 4(1)(c)(i) of this act in connection with a credit transaction that is not initiated by the consumer only if:

      (a) The consumer authorized the consumer reporting agency to provide the report to such a person; or

      (b) The consumer has not elected in accordance with subsection (3) of this section to have the consumer's name and address excluded from such transactions.

      (2) A consumer reporting agency may provide only the following information under subsection (1) of this section:

      (a) The name and address of the consumer; and

      (b) Information pertaining to a consumer that is not identified or identifiable with particular accounts or transactions of the consumer.

      (3)(a) A consumer may elect to have his or her name and address excluded from any list provided by a consumer reporting agency through prescreening under subsection (1) of this section or from any list provided by a consumer reporting agency for direct solicitation transactions that are not initiated by the consumer by notifying the consumer reporting agency. The notice must be made in writing through the notification system maintained by the consumer reporting agency under subsection (4) of this section and must state that the consumer does not consent to any use of consumer reports relating to the consumer in connection with any transaction that is not initiated by the consumer.

      (b) An election of a consumer under (a) of this subsection is effective with respect to a consumer reporting agency and any affiliate of the consumer reporting agency, within five business days after the consumer reporting agency receives the consumer's notice.

      (4) A consumer reporting agency that provides information intended to be used in a prescreened credit transaction or direct solicitation transaction that is not initiated by the consumer shall:

      (a) Maintain a notification system that facilitates the ability of a consumer in the agency's data base to notify the agency to promptly withdraw the consumer's name from lists compiled for prescreened credit transactions and direct solicitation transactions not initiated by the consumer; and

      (b) Publish at least annually in a publication of general circulation in the area served by the agency, the address for consumers to use to notify the agency of the consumer's election under subsection (3) of this section.

      (5) A consumer reporting agency that maintains consumer reports on a nation-wide basis shall establish a system meeting the requirements of subsection (4) of this section on a nation-wide basis, and may operate such a system jointly with any other consumer reporting agencies.

      (6) Compliance with the requirements of this section by any consumer reporting agency constitutes compliance by the agency's affiliates.

      NEW SECTION. Sec. 6. (1) Except as authorized under subsection (2) of this section, no consumer reporting agency may make a consumer report containing any of the following items of information:

      (a) Bankruptcies that, from date of adjudication of the most recent bankruptcy, antedate the report by more than ten years;

      (b) Suits and judgments that, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period;

      (c) Paid tax liens that, from date of payment, antedate the report by more than seven years;

      (d) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years;

      (e) Records of arrest, indictment, or conviction of crime that, from date of disposition, release, or parole, antedate the report by more than seven years;

      (f) Any other adverse item of information that antedates the report by more than seven years.

      (2) Subsection (1) of this section is not applicable in the case of a consumer report to be used in connection with:

      (a) A credit transaction involving, or that may reasonably be expected to involve, a principal amount of fifty thousand dollars or more;

      (b) The underwriting of life insurance involving, or that may reasonably be expected to involve, a face amount of fifty thousand dollars or more; or

      (c) The employment of an individual at an annual salary that equals, or that may reasonably be expected to equal, twenty thousand dollars or more.

      NEW SECTION. Sec. 7. (1) A person may not procure or cause to be prepared an investigative consumer report on a consumer unless:

      (a) It is clearly and accurately disclosed to the consumer that an investigative consumer report including information as to the consumer's character, general reputation, personal characteristics, and mode of living, whichever are applicable, may be made, and the disclosure:

      (i) Is made in a writing mailed, or otherwise delivered, to the consumer not later than three days after the date on which the report was first requested; and

      (ii) Includes a statement informing the consumer of the consumer's right to request the additional disclosures provided for under subsection (2) of this section and the written summary of the rights of the consumer prepared under section 10(7) of this act; or

      (b) The report is to be used for employment purposes for which the consumer has not specifically applied.

      (2) A person who procures or causes to be prepared an investigative consumer report on a consumer shall make, upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required in subsection (1)(a) of this section, a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure must be made in a writing mailed, or otherwise delivered, to the consumer not later than the latter of five days after the date on which the request for the disclosure was either received from the consumer or the report was first requested.

      (3) No person may be held liable for a violation of subsection (1) or (2) of this section if the person shows by a preponderance of the evidence that at the time of the violation the person maintained reasonable procedures to assure compliance with subsection (1) or (2) of this section.

      (4) A consumer reporting agency shall maintain a detailed record of:

      (a) The identity of the person to whom an investigative consumer report or information from a consumer report is provided by the consumer reporting agency; and

      (b) The certified purpose for which an investigative consumer report on a consumer, or any other information relating to a consumer, is requested by the person.

      For purposes of this subsection, "person" does not include an individual who requests the report unless the individual obtains the report or information for his or her own individual purposes.

      NEW SECTION. Sec. 8. (1) A consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 6 of this act and to limit the furnishing of consumer reports to the purposes listed under section 4 of this act. These procedures must require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. A consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by the prospective user before furnishing the user a consumer report. No consumer reporting agency may furnish a consumer report to a person if the agency has reasonable grounds for believing that the consumer report will not be used for a purpose listed in section 4 of this act.

      (2) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

      (3) Notwithstanding section 4 of this act, a consumer reporting agency may furnish identifying information about a consumer, limited to the consumer's name, address, former addresses, places of employment, or former places of employment, to a governmental agency.

      (4) A consumer reporting agency shall maintain a detailed record of:

      (a) The identity of any person to whom a consumer report or information from a consumer report is provided by the consumer reporting agency; and

      (b) The certified purpose for which a consumer report on a consumer, or any other information relating to a consumer, is requested by any person.

      For purposes of this subsection, "person" does not include an individual who requests the report unless the individual obtains the report or information for his or her own purposes.

      NEW SECTION. Sec. 9. A consumer reporting agency shall, upon request by the consumer, clearly and accurately disclose:

      (1) All information in the file on the consumer at the time of request, except that medical information may be withheld. The agency shall inform the consumer of the existence of medical information, and the consumer has the right to have that information disclosed to the health care provider of the consumer's choice. Nothing in this chapter prevents, or authorizes a consumer reporting agency to prevent, the health care provider from disclosing the medical information to the consumer. The agency shall inform the consumer of the right to disclosure of medical information at the time the consumer requests disclosure of his or her file.

      (2) All items of information in its files on that consumer, including disclosure of the sources of the information, except that sources of information acquired solely for use in an investigative report may only be disclosed to a plaintiff under appropriate discovery procedures.

      (3) Identification of (a) each person who for employment purposes within the two-year period before the request, and (b) each person who for any other purpose within the six-month period before the request, procured a consumer report.

      (4) A record identifying all inquiries received by the agency in the six-month period before the request that identified the consumer in connection with a credit transaction that is not initiated by the consumer.

      (5) An identification of a person under subsection (3) or (4) of this section must include (a) the name of the person or, if applicable, the trade name under which the person conducts business; and (b) upon request of the consumer, the address of the person.

      NEW SECTION. Sec. 10. (1) A consumer reporting agency shall make the disclosures required under section 9 of this act during normal business hours and on reasonable notice.

      (2) The consumer reporting agency shall make the disclosures required under section 9 of this act to the consumer:

      (a) In person if the consumer appears in person and furnishes proper identification;

      (b) By telephone if the consumer has made a written request, with proper identification, for telephone disclosure and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer; or

      (c) By any other reasonable means that are available to the consumer reporting agency if that means is authorized by the consumer.

      (3) A consumer reporting agency shall provide trained personnel to explain to the consumer, information furnished to the consumer under section 9 of this act.

      (4) The consumer reporting agency shall permit the consumer to be accompanied by one other person of the consumer's choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer's file in the other person's presence.

      (5) If a credit score is provided by a consumer reporting agency to a consumer, the agency shall provide an explanation of the meaning of the credit score.

      (6) Except as provided in section 17 of this act, no consumer may bring an action or proceeding in the nature of defamation, invasion of privacy, or negligence with respect to the reporting of information against a consumer reporting agency or a user of information, based on information disclosed under this section or section 9 of this act, except as to false information furnished with malice or willful intent to injure the consumer. Except as provided in section 17 of this act, no consumer may bring an action or proceeding against a person who provides information to a consumer reporting agency in the nature of defamation, invasion of privacy, or negligence for unintentional error.

      (7)(a) A consumer reporting agency must provide to a consumer, with each written disclosure by the agency to the consumer under section 9 of this act, a written summary of all rights and remedies the consumer has under this chapter.

      (b) The summary of the rights and remedies of consumers under this chapter must include:

      (i) A brief description of this chapter and all rights and remedies of consumers under this chapter;

      (ii) An explanation of how the consumer may exercise the rights and remedies of the consumer under this chapter; and

      (iii) A list of all state agencies, including the attorney general's office, responsible for enforcing any provision of this chapter and the address and appropriate phone number of each such agency.

      NEW SECTION. Sec. 11. (1) If the completeness or accuracy of an item of information contained in a consumer's file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly of the dispute, the agency shall reinvestigate without charge and record the current status of the disputed information before the end of thirty business days, beginning on the date the agency receives the notice from the consumer.

      (2) Before the end of the five business-day period beginning on the date a consumer reporting agency receives notice of a dispute from a consumer in accordance with subsection (1) of this section, the agency shall notify any person who provided an item of information in dispute.

      (3)(a) Notwithstanding subsection (1) of this section, a consumer reporting agency may terminate a reinvestigation of information disputed by a consumer under subsection (1) of this section if the agency determines that the dispute by the consumer is frivolous or irrelevant, including by reason of a failure of the consumer to provide sufficient information.

      (b) Upon making a determination in accordance with (a) of this subsection that a dispute is frivolous or irrelevant, a consumer reporting agency shall notify the consumer within five business days of the determination. The notice shall be made in writing or any other means authorized by the consumer that are available to the agency, but the notice shall include the reasons for the determination and a notice of the consumer's rights under subsection (6) of this section.

      (4) In conducting a reinvestigation under subsection (1) of this section with respect to disputed information in the file of any consumer, the consumer reporting agency shall review and consider all relevant information submitted by the consumer in the period described in subsection (1) of this section with respect to the disputed information.

      (5)(a) If, after a reinvestigation under subsection (1) of this section of information disputed by a consumer, the information is found to be inaccurate or cannot be verified, the consumer reporting agency shall promptly delete the information from the consumer's file.

      (b)(i) If information is deleted from a consumer's file under (a) of this subsection, the information may not be reinserted in the file after the deletion unless the person who furnishes the information verifies that the information is complete and accurate.

      (ii) If information that has been deleted from a consumer's file under (a) of this subsection is reinserted in the file in accordance with (b)(i) of this subsection, the consumer reporting agency shall notify the consumer of the reinsertion within thirty business days. The notice shall be in writing or any other means authorized by the consumer that are available to the agency.

      (6) If the reinvestigation does not resolve the dispute or if the consumer reporting agency determines the dispute is frivolous or irrelevant, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit these statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.

      (7) After the deletion of information from a consumer's file under this section or after the filing of a statement of dispute under subsection (6) of this section, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item of information has been deleted or that item of information is disputed. In the case of disputed information, the notification shall include the statement filed under subsection (6) of this section. The notification shall be furnished to any person specifically designated by the consumer, who has, within two years before the deletion or filing of a dispute, received a consumer report concerning the consumer for employment purposes, or who has, within six months of the deletion or the filing of the dispute, received a consumer report concerning the consumer for any other purpose, if these consumer reports contained the deleted or disputed information.

      (8)(a) Upon completion of the reinvestigation under this section, a consumer reporting agency shall provide notice, in writing or by any other means authorized by the consumer, of the results of a reinvestigation within five business days.

      (b) The notice required under (a) of this subsection must include:

      (i) A statement that the reinvestigation is completed;

      (ii) A consumer report that is based upon the consumer's file as that file is revised as a result of the reinvestigation;

      (iii) A description or indication of any changes made in the consumer report as a result of those revisions to the consumer's file;

      (iv) If requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the name, business address, and telephone number of any person contacted in connection with the information;

      (v) If the reinvestigation does not resolve the dispute, a summary of the consumer's right to file a brief statement as provided in subsection (6) of this section; and

      (vi) If information is deleted or disputed after reinvestigation, a summary of the consumer's right to request notification to persons who have received a consumer report as provided in subsection (7) of this section.

      (9) In the case of a consumer reporting agency that compiles and maintains consumer reports on a nationwide basis, the consumer reporting agency must provide to a consumer who has undertaken to dispute the information contained in his or her file a toll-free telephone number that the consumer can use to communicate with the agency. A consumer reporting agency that provides a toll-free number required by this subsection shall also provide adequately trained personnel to answer basic inquiries from consumers using the toll-free number.

      NEW SECTION. Sec. 12. (1) Except as provided in subsections (2) and (3) of this section, a consumer reporting agency may charge the following fees to the consumer:

      (a) For making a disclosure under sections 9 and 10 of this act, the consumer reporting agency may charge a fee not exceeding eight dollars. Beginning January 1, 1995, the eight-dollar charge may be adjusted on January 1st of each year based on corresponding changes in the Consumer Price Index with fractional changes rounded to the nearest half dollar.

      (b) For furnishing a notification, statement, or summary to a person under section 11(7) of this act, the consumer reporting agency may charge a fee not exceeding the charge that the agency would impose on each designated recipient for a consumer report. The amount of any charge must be disclosed to the consumer before furnishing the information.

      (2) A consumer reporting agency shall make all disclosures under sections 9 and 10 of this act and furnish all consumer reports under section 11 of this act without charge, if requested by the consumer within sixty days after receipt by the consumer of a notification of adverse action under section 13 of this act or of a notification from a debt collection agency affiliated with that consumer reporting agency stating that the consumer's credit rating may be or has been adversely affected.

      (3) A consumer reporting agency shall not impose any charge for (a) providing notice to a consumer required under section 11 of this act, or (b) notifying a person under section 11(7) of this act of the deletion of information that is found to be inaccurate or that can no longer be verified, if the consumer designates that person to the agency before the end of the thirty-day period beginning on the date of notice under section 11(8) of this act.

      NEW SECTION. Sec. 13. If a person takes an adverse action with respect to a consumer that is based, in whole or in part, on information contained in a consumer report, the person shall:

      (1) Provide written notice of the adverse action to the consumer,

except verbal notice may be given by a person in an adverse action involving a business regulated by the Washington utilities and transportation commission or involving an application for the rental or leasing of residential real estate if such verbal notice does not impair a consumer's ability to obtain a credit report without charge under section 12(2) of this act; and

      (2) Provide the consumer with the name, address, and telephone number of the consumer reporting agency that furnished the report to the person.

      NEW SECTION. Sec. 14. An action to enforce a liability created under this chapter is permanently barred unless commenced within two years after the cause of action accrues, except that where a defendant has materially and willfully misrepresented information required under this chapter to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that individual under this chapter, the action may be brought at any time within two years after discovery by the individual of the misrepresentation.

      NEW SECTION. Sec. 15. A person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses is subject to a fine of up to five thousand dollars or imprisonment for up to one year, or both.

      NEW SECTION. Sec. 16. An officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency's files to a person not authorized to receive that information is subject to a fine of up to five thousand dollars or imprisonment for up to one year, or both.

      NEW SECTION. Sec. 17. The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the Consumer Protection Act, chapter 19.86 RCW. Violations of this chapter are not reasonable in relation to the development and preservation of business. A violation of this chapter is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the Consumer Protection Act, chapter 19.86 RCW. The burden of proof in an action alleging a violation of this chapter shall be by a preponderance of the evidence, and the applicable statute of limitation shall be as set forth in section 14 of this act. For purposes of a judgment awarded pursuant to an action by a consumer under chapter 19.86 RCW, the consumer shall be awarded actual damages and costs of the action together with reasonable attorney's fees as determined by the court. However, where there has been willful failure to comply with any requirement imposed under this chapter, the consumer shall be awarded actual damages, a monetary penalty of one thousand dollars, and the costs of the action together with reasonable attorneys' fees as determined by the court.

      NEW SECTION. Sec. 18. 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. 19. Sections 1 through 18 of this act shall constitute a new chapter in Title 19 RCW.

      NEW SECTION. Sec. 20. This act takes effect January 1, 1994.", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5574.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5574, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5574, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 0; Absent, 0; Excused, 12.

     Voting yea: Senators Anderson, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Sheldon, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 37.

     Excused: Senators Amondson, Barr, Deccio, McCaslin, Moyer, Owen, Prince, Rinehart, Sellar, Skratek, Talmadge and West - 12.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 5574, 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 18, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5584 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

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

      (a) Housing is of vital state-wide importance to the health, safety, and welfare of the residents of the state;

      (b) Safe, affordable housing is an essential factor in stabilizing communities;

      (c) Residents must have a choice of housing opportunities within the community where they choose to live;

      (d) Housing markets are linked to a healthy economy and can contribute to the state's economy;

      (e) Land supply is a major contributor to the cost of housing;

      (f) Housing must be an integral component of any comprehensive community and economic development strategy;

      (g) State and local government must continue working cooperatively toward the enhancement of increased housing units by reviewing, updating, and removing conflicting regulatory language;

      (h) State and local government should work together in developing creative ways to reduce the shortage of housing;

      (i) The lack of a coordinated state housing policy inhibits the effective delivery of housing for some of the state's most vulnerable citizens and those with limited incomes; and

      (j) It is in the public interest to adopt a statement of housing policy objectives.

      (2) The legislature declares that the purposes of the Washington housing policy act are to:

      (a) Provide policy direction to the public and private sectors in their attempt to meet the shelter needs of Washington residents;

      (b) Reevaluate housing and housing-related programs and policies in order to ensure proper coordination of those programs and policies to meet the housing needs of Washington residents;

      (c) Improve the delivery of state services and assistance to very low-income and low-income households and special needs populations;

      (d) Strengthen partnerships among all levels of government, and the public and private sectors, including for-profit and nonprofit organizations, in the production and operation of housing to targeted populations including low-income and moderate-income households;

      (e) Increase the supply of housing for persons with special needs;

      (f) Encourage collaborative planning with social service providers;

      (g) Encourage financial institutions to increase residential mortgage lending; and

      (h) Coordinate housing into comprehensive community and economic development strategies at the state and local level.

      NEW SECTION. Sec. 2. It is the goal of the state of Washington to coordinate, encourage, and direct, when necessary, the efforts of the public and private sectors of the state and to cooperate and participate, when necessary, in the attainment of a decent home in a healthy, safe environment for every resident of the state. The legislature declares that attainment of that goal is a state priority.

      NEW SECTION. Sec. 3. The objectives of the Washington housing policy act shall be to attain the state's goal of a decent home in a healthy, safe environment for every resident of the state by strengthening public and private institutions that are able to:

      (1) Develop an adequate and affordable supply of housing for all economic segments of the population;

      (2) Assist very low-income and special needs households who cannot obtain affordable, safe, and adequate housing in the private market;

      (3) Encourage and maintain home ownership opportunities;

      (4) Reduce life cycle housing costs while preserving public health and safety;

      (5) Preserve the supply of existing affordable housing;

      (6) Provide housing for special needs populations;

      (7) Ensure fair and equal access to the housing market;

      (8) Increase the availability of mortgage credit at low interest rates; and

      (9) Coordinate and be consistent with the goals, objectives, and required housing element of the comprehensive plan in the state's growth management act in RCW 36.70A.070.

      NEW SECTION. Sec. 4. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Affordable housing" means residential housing that is rented or owned by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income.

      (2) "Department" means the department of community development.

      (3) "Director" means the director of community development.

      (4) "Nonprofit organization" means any public or private nonprofit organization that: (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes significant activities related to the provision of decent housing that is affordable to very low-income, low-income, or moderate-income households and special needs populations.

      (5) "Regulatory barriers to affordable housing" and "regulatory bariers" mean any public policies (including those embodied in statutes, ordinances, regulations, or administrative procedures or processes) required to be identified by the state or local government in connection with its strategy under section 105(b)(4) of the Cranston-Gonzalez national affordable housing act (42 U.S.C. 12701 et seq.).

      (6) "Tenant-based organization" means a nonprofit organization whose governing body includes a majority of members who reside in the housing development and are considered low-income households.

      NEW SECTION. Sec. 5. (1) The department shall establish the affordable housing advisory board to consist of twenty-one members.

      (a) The following eighteen members shall be appointed by the governor:

      (i) Two representatives of the residential construction industry;

      (ii) Two representatives of the home mortgage lending profession;

      (iii) One representative of the real estate sales profession;

      (iv) One representative of the apartment management and operation industry;

      (v) One representative of the for-profit housing development industry;

      (vi) One representative of the nonprofit housing development industry;

      (vii) One representative of homeless shelter operators;

      (viii) One representative of lower-income persons;

      (ix) One representative of special needs populations;

      (x) One representative of public housing authorities as created under chapter 35.82 RCW;

      (xi) Two representatives of the Washington association of counties, one representative shall be from a county that is located east of the crest of the Cascade mountains;

      (xii) Two representatives of the association of Washington cities, one representative shall be from a city that is located east of the crest of the Cascade mountains;

      (xiii) One representative to serve as chair of the affordable housing advisory board;

      (xiv) One representative at large.

      (b) The following three members shall serve as ex officio, nonvoting members:

      (i) The director or the director's designee;

      (ii) The executive director of the Washington state housing finance commission or the executive director's designee; and

      (iii) The secretary of social and health services or the secretary's designee.

      (2)(a) The members of the affordable housing advisory board appointed by the governor shall be appointed for four-year terms, except that the chair shall be appointed to serve a two-year term. The terms of five of the initial appointees shall be for two years from the date of appointment and the terms of six of the initial appointees shall be for three years from the date of appointment. The governor shall designate the appointees who will serve the two-year and three-year terms. The members of the advisory board shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

      (b) The governor, when making appointments to the affordable housing advisory board, shall make appointments that reflect the cultural diversity of the state of Washington.

      (3) The affordable housing advisory board shall serve as the department's principal advisory body on housing and housing-related issues, and replaces the department's existing boards and task forces on housing and housing-related issues.

      (4) The affordable housing advisory board shall meet regularly and may appoint technical advisory committees, which may include members of the affordable housing advisory board, as needed to address specific issues and concerns.

      (5) The department, in conjunction with the Washington state housing finance commission and the department of social and health services, shall supply such information and assistance as are deemed necessary for the advisory board to carry out its duties under this section.

      (6) The department shall provide administrative and clerical assistance to the affordable housing advisory board.

      NEW SECTION. Sec. 6. The affordable housing advisory board shall:

      (1) Analyze those solutions and programs that could begin to address the state's need for housing that is affordable for all economic segments of the state, and special needs populations, including but not limited to programs or proposals which provide for:

      (a) Financing for the acquisition, rehabilitation, preservation, or construction of housing;

      (b) Use of publicly owned land and buildings as sites for affordable housing;

      (c) Coordination of state initiatives with federal initiatives and financing programs that are referenced in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended, and development of an approved housing strategy as required in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended;

      (d) Identification and removal, where appropriate and not detrimental to the public health and safety, or environment, of state and local regulatory barriers to the development and placement of affordable housing;

      (e) Stimulating public and private sector cooperation in the development of affordable housing; and

      (f) Development of solutions and programs affecting housing, including the equitable geographic distribution of housing for all economic segments, as the advisory board deems necessary;

      (2) Consider both homeownership and rental housing as viable options for the provision of housing. The advisory board shall give consideration to various types of residential construction and innovative housing options, including but not limited to manufactured housing;

      (3) Review, evaluate, and make recommendations regarding existing and proposed housing programs and initiatives including but not limited to tax policies, land use policies, and financing programs. The advisory board shall provide recommendations to the director, along with the department's response in the annual housing report to the legislature required in section 12 of this act; and

      (4) Prepare and submit to the director, by each December 1st, beginning December 1, 1993, a report detailing its findings and make specific program, legislative, and funding recommendations and any other recommendations it deems appropriate.

      NEW SECTION. Sec. 7. A new section is added to chapter 43.63A RCW to read as follows:

      (1) The department shall, in consultation with the affordable housing advisory board created in section 5 of this act, report to the legislature on the development and placement of accessory apartments. The department shall produce a written report by December 15, 1993, which:

      (a) Identifies local governments that allow the siting of accessory apartments in areas zoned for single-family residential use; and

      (b) Makes recommendations to the legislature designed to encourage the development and placement of accessory apartments in areas zoned for single-family residential use.

      (2) The recommendations made under subsection (1) of this section shall not take effect before ninety days following adjournment of the 1994 regular legislative session.

      (3) Unless provided otherwise by the legislature, by December 31, 1994, local governments shall incorporate in their development regulations, zoning regulations, or official controls the recommendations contained in subsection (1) of this section. The accessory apartment provisions shall be part of the local government's development regulation, zoning regulation, or official control. To allow local flexibility, the recommendations shall be subject to such regulations, conditions, procedures, and limitations as determined by the local legislative authority.

      (4) As used in this section, "local government" means:

      (a) A city or code city with a population that exceeds twenty thousand;

      (b) A county that is required to or has elected to plan under the state growth management act; and

      (c) A county with a population that exceeds one hundred twenty-five thousand.

      NEW SECTION. Sec. 8. A new section is added to chapter 35.63 RCW to read as follows:

      Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.

      NEW SECTION. Sec. 9. A new section is added to chapter 35A.63 RCW to read as follows:

      Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.

      NEW SECTION. Sec. 10. A new section is added to chapter 36.70 RCW to read as follows:

      Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.

      NEW SECTION. Sec. 11. A new section is added to chapter 36.70A RCW to read as follows:

      Any local government, as defined in section 7 of this act, that is planning under this chapter shall comply with section 7(3) of this act.

      NEW SECTION. Sec. 12. (1) The department shall, in consultation with the affordable housing advisory board created in section 5 of this act, prepare and from time to time amend a five-year housing advisory plan. The purpose of the plan is to document the need for affordable housing in the state and the extent to which that need is being met through public and private sector programs, to facilitate planning to meet the affordable housing needs of the state, and to enable the development of sound strategies and programs for affordable housing. The information in the five-year housing advisory plan must include:

      (a) An assessment of the state's housing market trends;

      (b) An assessment of the housing needs for all economic segments of the state and special needs populations;

      (c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;

      (d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state;

      (e) An identification of state and local regulatory barriers to affordable housing and proposed regulatory and administrative techniques designed to remove barriers to the development and placement of affordable housing; and

      (f) Specific recommendations, policies, or proposals for meeting the affordable housing needs of the state.

      (2)(a) The five-year housing advisory plan required under subsection (1) of this section must be submitted to the legislature on or before February 1, 1994, and subsequent plans must be submitted every five years thereafter.

      (b) Each February 1st, beginning February 1, 1995, the department shall submit an annual progress report, to the legislature, detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs.

      NEW SECTION. Sec. 13. A new section is added to chapter 43.63A RCW to read as follows:

      (1) The department shall be the principal state department responsible for coordinating federal and state resources and activities in housing, except for programs administered by the Washington state housing finance commission under chapter 43.180 RCW, and for evaluating the operations and accomplishments of other state departments and agencies as they affect housing.

      (2) The department shall work with local governments, tribal organizations, local housing authorities, nonprofit community or neighborhood-based organizations, and regional or state-wide nonprofit housing assistance organizations, for the purpose of coordinating federal and state resources with local resources for housing.

      NEW SECTION. Sec. 14. A new section is added to chapter 43.63A RCW to read as follows:

      The department shall provide technical assistance and information to state agencies and local governments to assist in the identification and removal of regulatory barriers to the development and placement of affordable housing. In providing assistance the department may:

      (1) Analyze the costs and benefits of state legislation, rules, and administrative actions and their impact on the development and placement of affordable housing;

      (2) Analyze the costs and benefits of local legislation, rules, and administrative actions and their impact on the development and placement of affordable housing;

      (3) Assist state agencies and local governments in determining the impact of existing and anticipated actions, legislation, and rules on the development and placement of affordable housing;

      (4) Investigate techniques and opportunities for reducing the life cycle housing costs through regulatory reform;

      (5) Develop model standards and ordinances designed to reduce regulatory barriers to affordable housing and assisting n their adoption and use at the state and local government level;

      (6) Provide technical assistance and information to state agencies and local governments for implementation of legislative and administrative reform programs to remove barriers to affordable housing;

      (7) Prepare state regulatory barrier removal strategies;

      (8) Provide staffing to the affordable housing advisory board created in section 5 of this act; and

      (9) Perform other activities as the director deems necessary to assist the state, local governments, and the housing industry in meeting the affordable housing needs of the state.

      Sec. 15. RCW 43.185.110 and 1991 c 204 s 4 are each amended to read as follows:

      ((The director shall prepare an annual report and shall send copies to the chair of the house of representatives committee on housing, the chair of the senate committee on commerce and labor, and one copy to the staff of each committee that summarizes the housing trust fund's income, grants and operating expenses, implementation of its program, and any problems arising in the administration thereof. The director shall promptly appoint a low-income housing assistance advisory committee composed of a representative from each of the following groups: Apartment owners, realtors, mortgage lending or servicing institutions, private nonprofit housing assistance programs, tenant associations, and public housing assistance programs.)) The affordable housing advisory ((group)) board established in section 5 of this act shall advise the director on housing needs in this state, including housing needs for persons who are mentally ill or developmentally disabled or youth who are blind or deaf or otherwise disabled, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter. Such advice shall be consistent with policies and plans developed by regional support networks according to chapter 71.24 RCW for the mentally ill and the developmental disabilities planning council for the developmentally disabled.

      Sec. 16. RCW 43.185A.020 and 1991 c 356 s 11 are each amended to read as follows:

      The affordable housing program is created in the department of community development for the purpose of developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income households in the state of Washington. The program shall be developed and administered by the department with advice and input from the ((low-income [housing] assistance advisory committee established in RCW 43.185.110)) affordable housing advisory board established in section 5 of this act.

      Sec. 17. RCW 35.82.070 and 1991 c 167 s 1 are each amended to read as follows:

      An authority shall constitute a public body corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others herein granted:

      (1) To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual succession; to make and execute contracts and other instruments, including but not limited to partnership agreements and joint venture agreements, necessary or convenient to the exercise of the powers of the authority; to participate in the organization or the operation of a nonprofit corporation which has as one of its purposes to provide or assist in the provision of housing for persons of low income; and to make and from time to time amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority.

      (2) Within its area of operation: To prepare, carry out, acquire, lease and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof; to agree to rent or sell dwellings forming part of the projects to or for persons of low income. Where an agreement or option is made to sell a dwelling to a person of low income, the authority may convey the dwelling to the person upon fulfillment of the agreement irrespective of whether the person is at the time of the conveyance a person of low income. Leases, options, agreements, or conveyances may include such covenants as the authority deems appropriate to assure the achievement of the objectives of this chapter.

      (3) To acquire, lease, rent, sell, or otherwise dispose of any commercial space located in buildings or structures containing a housing project or projects.

      (4) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; and (notwithstanding anything to the contrary contained in this chapter or in any other provision of law) to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor, and comply with any conditions which the federal government may have attached to its financial aid of the project.

      (5) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and (subject to the limitations contained in this chapter) to establish and revise the rents or charges therefor; to own or manage buildings containing a housing project or projects as well as commercial space or other dwelling units that do not constitute a housing project as that term is defined in this chapter: PROVIDED, That notwithstanding the provisions under subsection (1) of this section, dwelling units made available or sold to persons of low income, together with functionally related and subordinate facilities, shall occupy ((at least thirty percent of the interior space of any individual building other than a detached single-family or duplex residential building or mobile or manufactured home and)) at least fifty percent of the interior space in the total development owned by the authority or at least fifty percent of the total number of units in the development owned by the authority, whichever produces the greater number of units for persons of low income, and for mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park owned by the authority; to own, hold, and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise including financial assistance and other aid from the state or any public body, person or corporation, any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein; to sell, lease, exchange, transfer, or dispose of any real or personal property or interest therein at less than fair market value to a governmental entity for any purpose when such action assists the housing authority in carrying out its powers and purposes under this chapter, to a low-income person or family for the purpose of providing housing for that person or family, or to a nonprofit corporation provided the nonprofit corporation agrees to sell the property to a low-income person or family or to use the property for the provision of housing for persons of low income for at least twenty years; to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards; to procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or parts thereof issued by an authority, including the power to pay premiums on any such insurance.

      (6) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be canceled.

      (7) Within its area of operation: To investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where slum areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income; to make studies and recommendations relating to the problem of clearing, replanning and reconstructing of slum areas, and the problem of providing dwelling accommodations for persons of low income, and to cooperate with the city, the county, the state or any political subdivision thereof in action taken in connection with such problems; and to engage in research, studies and experimentation on the subject of housing.

      (8) Acting through one or more commissioners or other person or persons designated by the authority: To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; to administer oaths, issue subpoenas requiring the attendance of witnesses or the production of books and papers and to issue commissions for the examination of witnesses who are outside of the state or unable to attend before the authority, or excused from attendance; to make available to appropriate agencies (including those charged with the duty of abating or requiring the correction of nuisances or like conditions, or of demolishing unsafe or insanitary structures within its area of operation) its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare.

      (9) To initiate eviction proceedings against any tenant as provided by law. Activity occurring in any housing authority unit that constitutes a violation of chapter 69.41, 69.50 or 69.52 RCW shall constitute a nuisance for the purpose of RCW 59.12.030(5).

      (10) To exercise all or any part or combination of powers herein granted.

      No provisions of law with respect to the acquisition, operation or disposition of property by other public bodies shall be applicable to an authority unless the legislature shall specifically so state.

      (11) To agree (notwithstanding the limitation contained in RCW 35.82.210) to make such payments in lieu of taxes as the authority finds consistent with the achievement of the purposes of this chapter.

      (12) Upon the request of a county or city, to exercise any powers of an urban renewal agency under chapter 35.81 RCW or a public corporation, commission, or authority under chapter 35.21 RCW. However, in the exercise of any such powers the housing authority shall be subject to any express limitations contained in this chapter.

      (13) To exercise the powers granted in this chapter within the boundaries of any city, town, or county not included in the area in which such housing authority is originally authorized to function: PROVIDED, HOWEVER, The governing or legislative body of such city, town, or county, as the case may be, adopts a resolution declaring that there is a need for the authority to function in such territory.

      (((13))) (14) To administer contracts for assistance payments to persons of low income in accordance with section 8 of the United States Housing Act of 1937, as amended by Title II, section 201 of the Housing and Community Development Act of 1974, P.L. 93-383.

      (((14))) (15) To sell at public or private sale, with or without public bidding, for fair market value, any mortgage or other obligation held by the authority.

      (((15))) (16) To the extent permitted under its contract with the holders of bonds, notes, and other obligations of the authority, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest security, or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the authority is a party.

      (((16))) (17) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans to persons of low income to enable them to acquire, construct, reconstruct, rehabilitate, improve, lease, or refinance their dwellings, and to take such security therefor as is deemed necessary and prudent by the authority.

      (((17))) (18) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans for the acquisition, construction, reconstruction, rehabilitation, improvement, leasing, or refinancing of land, buildings, or developments for housing for persons of low income. For purposes of this subsection, development shall include either land or buildings or both.

      (a) Any development financed under this subsection shall be subject to an agreement that for at least twenty years the dwelling units made available to persons of low income together with functionally related and subordinate facilities shall occupy at least ((thirty percent of the interior space of any individual building other than a detached single-family or duplex residential building or mobile or manufactured home and shall occupy at least)) fifty percent of the interior space in the total development or at least fifty percent of the total number of units in the development, whichever produces the greater number of units for persons of low income. For mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park. During the term of the agreement, the owner shall use its best efforts in good faith to maintain the dwelling units or mobile home lots required to be made available to persons of low income at rents affordable to persons of low income. The twenty-year requirement under this subsection (18)(a) shall not apply when an authority finances the development by nonprofit corporations or governmental units of dwellings or mobile home lots intended for sale to persons of low and moderate income, and shall not apply to construction or other short-term financing provided to nonprofit corporations or governmental units when the financing has a repayment term of one year or less.

      (b) In addition, if the development is owned by a for-profit entity, the dwelling units or mobile home lots required to be made available to persons of low income shall be rented to persons whose incomes do not exceed fifty percent of the area median income, adjusted for household size, and shall have unit or lot rents that do not exceed fifteen percent of area median income, adjusted for household size, unless rent subsidies are provided to make them affordable to persons of low income.

      For purposes of this subsection (((17)))(18)(b), if the development is owned directly or through a partnership by a governmental entity or a nonprofit organization, which nonprofit organization is itself not controlled by a for-profit entity or affiliated with any for-profit entity that a nonprofit organization itself does not control, it shall not be treated as being owned by a for-profit entity when the governmental entity or nonprofit organization exercises legal control of the ownership entity and in addition, (i) the dwelling units or mobile home lots required to be made available to persons of low income are rented to persons whose incomes do not exceed sixty percent of the area median income, adjusted for household size, and (ii) the development is subject to an agreement that transfers ownership to the governmental entity or nonprofit organization or extends an irrevocable right of first refusal to purchase the development under a formula for setting the acquisition price that is specified in the agreement.

      (c) Commercial space in any building financed under this subsection that exceeds four stories in height shall not constitute more than twenty percent of the interior area of the building. Before financing any development under this subsection the authority shall make a written finding that financing is important for project feasibility or necessary to enable the authority to carry out its powers and purposes under this chapter.

      (((18))) (19) To contract with a public authority or corporation, created by a county, city, or town under RCW 35.21.730 through 35.21.755, to act as the developer for new housing projects or improvement of existing housing projects.

      NEW SECTION. Sec. 18. A new section is added to chapter 43.63A RCW to read as follows:

      (1) The legislature finds that:

      (a) The trend toward smaller household sizes will continue into the foreseeable future;

      (b) Many of these households are in housing units that contain more bedrooms than occupants;

      (c) There are older homeowners on relatively low, fixed income who are experiencing difficulties maintaining their homes; and

      (d) There are single parents, recently widowed persons, people in the midst of divorce or separation, and handicapped that are faced with displacement due to the high cost of housing.

      (2) The legislature declares that the purpose of section 19 of this act is to develop a pilot program designed to:

      (a) Provide home-matching services that can enable people to continue living in their homes while promoting continuity of home ownership and community stability; and

      (b) Counter the problem of displacement among people on relatively low, fixed incomes by linking people offering living space with people seeking housing.

      NEW SECTION. Sec. 19. A new section is added to chapter 43.63A RCW to read as follows:

      (1) The department may develop and administer a home-matching program for the purpose of providing grants and technical assistance to eligible organizations to operate local home-matching programs. For purposes of this section, "eligible organizations" are those organizations eligible to receive assistance through the Washington housing trust fund, chapter 43.185 RCW.

      (2) The department may select up to five eligible organizations for the purpose of implementing a local home-matching program. The local home-matching programs are designed to facilitate: (a) Intergenerational homesharing involving older homeowners sharing homes with younger persons; (b) homesharing arrangements that involve an exchange of services such as cooking, housework, gardening, or babysitting for room and board or some financial consideration such as rent; and (c) the more efficient use of available housing.

      (3) In selecting local pilot programs under this section, the department shall consider:

      (a) The eligible organization's ability, stability, and resources to implement the local home-matching program;

      (b) The eligible organization's efforts to coordinate other support services needed by the individual or family participating in the local home-matching program; and

      (c) Other factors the department deems appropriate.

      (4) The eligible organizations shall establish criteria for participation in the local home-matching program. The eligible organization shall make a determination of eligibility regarding the individuals' or families' participation in the local home-matching program. The determination shall include, but is not limited to a verification of manner individual's or family's history of making rent payments in a consistent and timely manner.

      NEW SECTION. Sec. 20. A new section is added to chapter 35.63 RCW to read as follows:

      No city may enact or maintain an ordinance, development regulation, zoning regulation or official control, policy, or administrative practice which treats a residential structure occupied by persons with handicaps differently than a similar residential structure occupied by a family or other unrelated individuals. As used in this section, "handicaps" are as defined in the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3602).

      Sec. 21. A new section is added to chapter 35A.63 RCW to read as follows:

      No city may enact or maintain an ordinance, development regulation, zoning regulation or official control, policy, or administrative practice which treats a residential structure occupied by persons with handicaps differently than a similar residential structure occupied by a family or other unrelated individuals. As used in this section, "handicaps" are as defined in the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3602).

      NEW SECTION. Sec. 22. A new section is added to chapter 36.70 RCW to read as follows:

      No county may enact or maintain an ordinance, development regulation, zoning regulation or official control, policy, or administrative practice which treats a residential structure occupied by persons with handicaps differently than a similar residential structure occupied by a family or other unrelated individuals. As used in this section, "handicaps" are as defined in the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3602).

      NEW SECTION. Sec. 23. A new section is added to chapter 36.70A RCW to read as follows:

      No county or city that plans or elects to plan under this chapter may enact or maintain an ordinance, development regulation, zoning regulation or official control, policy, or administrative practice which treats a residential structure occupied by persons with handicaps differently than a similar residential structure occupied by a family or other unrelated individuals. As used in this section, "handicaps" are as defined in the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3602).

      NEW SECTION. Sec. 24. This chapter may be known and cited as the "Washington housing policy act."

      NEW SECTION. Sec. 25. Sections 1 through 6, 12, and 24 of this act shall constitute a new chapter in Title 43 RCW.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendment to Senate Bill No. 5584.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5584, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5584, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 33; Nays, 7; Absent, 0; Excused, 9.

     Voting yea: Senators Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Sheldon, Smith, A., Snyder, Spanel, Sutherland, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 33.

     Voting nay: Senators Anderson, Cantu, Hochstatter, McCaslin, McDonald, Newhouse and Smith, L. - 7.

     Excused: Senators Amondson, Barr, Moyer, Prince, Rinehart, Sellar, Skratek, Talmadge and West - 9.

     SENATE BILL NO. 5584, 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 has passed SUBSTITUTE SENATE BILL NO. 5686 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 63.14.090 and 1984 c 280 s 2 are each amended to read as follows:

      (1) The holder of any retail installment contract, retail charge agreement, or lender credit card agreement may not collect any delinquency or collection charges, including any attorney's fee and court costs and disbursements, unless the contract, charge agreement, or lender credit card agreement so provides. In such cases, the charges shall be reasonable, and no attorney's fee may be recovered unless the contract, charge agreement, or lender credit card agreement is referred for collection to an attorney not a salaried employee of the holder.

      (2) The contract, charge agreement, or lender credit card agreement may contain other provisions not inconsistent with the purposes of this chapter, including but not limited to provisions relating to refinancing, transfer of the buyer's equity, construction permits, and title reports.

      (3) Notwithstanding subsection (1) of this section, where the minimum payment is received within the ten days following the payment due date, delinquency charges for the late payment of a retail charge agreement or lender credit card agreement may not be more than ten percent of the average balance of the delinquent account for the prior thirty-day period when the average balance of the account for the prior thirty-day period is less than one hundred dollars, except that a minimum charge of up to two dollars shall be allowed. This subsection (3) shall not apply in cases where the payment on the account is more than thirty days overdue.", 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. 5686.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5686, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5686, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 1; Absent, 2; Excused, 7.

     Voting yea: Senators Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Smith, A., Smith, L., Spanel, Sutherland, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 39.

     Voting nay: Senator Barr - 1.

     Absent: Senators Hargrove and Snyder - 2.

     Excused: Senators Amondson, Moyer, Prince, Rinehart, Skratek, Talmadge and West - 7.

     SUBSTITUTE SENATE BILL NO. 5686, 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 16, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5044 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 35.02.010 and 1986 c 234 s 2 are each amended to read as follows:

      Any contiguous area containing not less than ((three hundred)) one thousand inhabitants lying outside the limits of an incorporated city or town may become incorporated as a city or town operating under Title 35 or 35A RCW as provided in this chapter: PROVIDED, That no area which lies within five air miles of the boundary of any city having a population of fifteen thousand or more shall be incorporated which contains less than three thousand inhabitants.

      Sec. 2. RCW 35.02.020 and 1986 c 234 s 3 are each amended to read as follows:

      A petition for incorporation must be signed by ((qualified)) registered voters resident within the limits of the proposed city or town equal in number to ten percent of the ((votes cast)) voters voting at the last state general election and presented to the auditor of the county in which all, or the largest portion of, the proposed city or town is located.

      Sec. 3. RCW 35.02.090 and 1986 c 234 s 12 are each amended to read as follows:

      The elections on the proposed incorporation and for the nomination and election of the initial elected officials shall be conducted in accordance with the general election laws of the state, except as provided in this chapter. No person is entitled to vote ((thereat)) unless he or she is a ((qualified elector)) registered voter of the county, or any of the counties in which the proposed city or town is located, and has resided within the limits of the proposed city or town for at least thirty days next preceding the date of election.

      NEW SECTION. Sec. 4. A new section is added to chapter 35.02 RCW to read as follows:

      At the first municipal general election that occurs one year or more after the official date of incorporating a new city or town, an election shall be held to elect city or town elected officials. Candidates for council or commission positions shall run for specific positions.

      The staggering of terms of office for councilmembers shall occur at this election, where a simple majority of the persons who are elected receiving the greatest numbers of votes shall be elected to four-year terms of office and the remaining persons who are elected shall be elected to two-year terms of office. Their successors shall be elected to four-year terms of office.

      All city or town elected officials shall serve until their successors are elected and qualified and assume office in accordance with RCW 29.04.170.

      NEW SECTION. Sec. 5. A new section is added to chapter 35.02 RCW to read as follows:

      City or town councilmembers in a newly incorporated town or city incorporated under this title shall receive compensation based upon the population of the newly incorporated city or town, as provided in RCW 35A.12.070 and 35A.13.040 for the councilmembers of newly incorporated code cities.

      Whenever a commission form of government has been selected for a newly incorporated noncode city with a population of from two thousand to less than thirty thousand, each commissioner shall receive compensation at the same rate that a councilmember would receive compensation under RCW 35A.12.070 based upon the population of the newly incorporated city, but the commissioner who is designated the mayor shall not receive the compensation under RCW 35A.12.070 that is provided for the mayor.

      NEW SECTION. Sec. 6. A new section is added to chapter 35.02 RCW to read as follows:

      No city or town in a county in which urban growth areas have been designated under RCW 36.70A.110 may incorporate if the proposed incorporation includes territory located beyond an urban growth area.

      Sec. 7. RCW 35A.12.070 and 1971 ex.s. c 251 s 5 are each amended to read as follows:

      ((The salaries of)) Compensation for the mayor and the ((councilmen)) councilmembers shall be fixed by ordinance and may be revised from time to time by ordinance((, but any increase in the compensation attaching to an office shall not be applicable to the term then being served by the incumbent if such incumbent is a member of the city legislative body fixing his own compensation or as mayor in a mayor-council code city casts a tie-breaking vote relating to such ordinance: PROVIDED, That)). Compensation for the mayor may be increased during the mayor's current term of office if the mayor of such a city does not cast ((such)) a tie-breaking vote((, his salary may be increased during his term of office)) to adopt the ordinance revising the compensation for the mayor.

      Until the first elective officers of a newly organized code city under this mayor-council plan of government may lawfully be paid the compensation provided by ((such salary)) an ordinance establishing different levels of compensation, such officers shall be entitled to be compensated in the same manner and in the same amount as the compensation paid to officers of such city performing comparable services immediately prior to adoption of this mayor-council plan.

      Until ((a salary ordinance can be passed and become effective as to)) elective officers of a newly incorporated code city may lawfully be paid the compensation provided by an ordinance establishing different levels of compensation, such first elective officers shall be entitled to compensation as follows: (1) In cities having less than five thousand inhabitants, the mayor shall be entitled to a salary of one hundred ((and)) fifty dollars per calendar month and a ((councilman)) councilmember shall be entitled to twenty dollars per meeting for not more than two meetings per month; (2) in cities having more than five thousand but less than fifteen thousand inhabitants, the mayor shall be entitled to a salary of three hundred ((and)) fifty dollars per calendar month and a ((councilman)) councilmember shall be entitled to one hundred ((and)) fifty dollars per calendar month; and (3) in cities having more than fifteen thousand inhabitants, the mayor shall be entitled to a salary of twelve hundred ((and)) fifty dollars per calendar month and a ((councilman)) councilmember shall be entitled to four hundred dollars per calendar month((: PROVIDED, That such interim compensation shall remain in effect only until a salary ordinance is passed and becomes effective as to such officers, and the amounts herein provided shall not be construed as fixing the usual salary of such officers)).

      The mayor and ((councilmen)) councilmembers shall receive reimbursement for their actual and necessary expenses incurred in the performance of the duties of their office, or the council by ordinance may provide for a per diem allowance. Procedure for approval of claims for expenses shall be as provided by ordinance.

      Sec. 8. RCW 35A.13.040 and 1979 ex.s. c 18 s 25 are each amended to read as follows:

      ((The salaries of the councilmen)) Compensation for councilmembers, including the mayor, shall be fixed by ordinance and may be revised from time to time by ordinance((, but any increase or reduction in the compensation attaching to an office shall not become effective until the expiration of the term then being served by the incumbent: PROVIDED, That compensation of councilmen may not be increased or diminished after their election nor may the compensation of the mayor be increased or diminished after the mayor has been chosen by the council)).

      Until ((councilmen)) councilmembers of a newly((-))organized council-manager code city may lawfully be paid as provided by ((salary)) an ordinance establishing different levels of compensation, such ((councilmen)) councilmembers shall be entitled to compensation in the same manner and in the same amount as ((councilmen)) councilmembers of such city prior to the adoption of this council-manager plan.

      Until ((a salary ordinance can be passed and become effective as to)) elective officers of a newly incorporated code city may lawfully be paid the compensation provided by an ordinance establishing different levels of compensation, the first ((councilmen)) councilmembers shall be entitled to compensation as follows: (1) In cities having less than five thousand inhabitants((--)) the councilmembers shall be entitled to compensation at a rate of twenty dollars per meeting for not more than two meetings per month; (2) in cities having more than five thousand but less than fifteen thousand inhabitants((--)) the councilmembers shall be entitled to compensation at a salary of one hundred ((and)) fifty dollars per calendar month; and (3) in cities having more than fifteen thousand inhabitants((--)) the councilmembers shall be entitled to compensation at a salary of four hundred dollars per calendar month. ((A councilman)) The councilmember who is occupying the position of mayor, in addition to ((his)) per day compensation or salary as a ((councilman)) councilmember, shall be entitled, while serving as mayor, to an additional amount per meeting or per calendar month, or portion thereof, equal to twenty-five percent of the per meeting compensation rate or councilmanic salary((: PROVIDED, That such interim compensation shall remain in effect only until a salary ordinance is passed and becomes effective as to such officers, and the compensation provided herein shall not be construed as fixing the usual compensation of such officers)).

      ((Councilmen)) Councilmembers, including the mayor, shall receive reimbursement for their actual and necessary expenses incurred in the performance of the duties of their office, or the council by ordinance may provide for a per diem allowance. Procedure for approval of claims for expenses shall be as provided by ordinance.

      Sec. 9. RCW 35.13.175 and 1973 1st ex.s. c 164 s 18 are each amended to read as follows:

      After the filing of any petition or resolution for annexation with the ((board of)) county ((commissioners)) legislative authority, or city or town council, and pending its final disposition as provided for in this chapter, or after the filing of a petition for the incorporation of a city or town, and pending its final disposition, no other petition or resolution for annexation or petition for incorporation which embraces any of the territory included therein shall be acted upon by the county auditor or the ((board of)) county ((commissioners)) legislative authority, or by any city or town clerk, city or town council, or by any other public official or body that might otherwise be empowered to receive or act upon such a petition.

      Sec. 10. RCW 35A.14.230 and 1967 ex.s. c 119 s 35A.14.230 are each amended to read as follows:

      After the filing of any petition or resolution for annexation or for an annexation election with the ((board of)) county ((commissioners)) legislative authority, the boundary review board or the county annexation review board for the county or the legislative body of a code city and pending its final disposition as provided in this chapter, or after the filing of a petition for the incorporation of a code city and pending its final disposition, no other petition or resolution for annexation, or petition for incorporation, which embraces any of the territory included therein shall be acted upon by any public official or body that might otherwise be empowered to receive or act upon such a petition or resolution.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Haugen, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5044 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. 5044 and the House amendment thereto: Senators Haugen, Winsley and Loveland.


MOTION


     On motion of Senator Jesernig, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1910 and asks the Senate for a conference thereon. The Speaker has appointed the following members as conferees: Representatives Wang, Ogden and Silver.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Haugen, the Senate grants the request of the House for a conference on Substitute House Bill No. 1910 and the Senate amendment(s) thereto.


APPOINTMENT OF CONFERENCE COMMITTEE


     The President appointed as members of the Conference Committee on Substitute House Bill No. 1910 and the Senate amendment(s) thereto: Senators Haugen, Winsley and Loveland.




MOTION


     On motion of Senator Vognild, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1761 and asks the Senate to recede therefrom.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Haugen, the Senate insists on it position, refuses to recede from the Senate amendment(s) and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


     The President appointed as members of the Conference Committee on Engrossed Substitute House Bill No. 1761 and the Senate amendment(s) thereto: Senators Haugen, von Reichbauer and Drew.


MOTION


     On motion of Senator Vognild, the Conference Committee appointments were confirmed.


MOTION


     On motion of Senator Loveland, Senator Sheldon was excused.


MESSAGE FROM THE HOUSE


April 17, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5330 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 18.11 RCW to read as follows:

     The department of licensing may exempt, by rule, second-hand property bought or received on consignment or sold at an auction conducted by a licensed auctioneer or auction company from RCW 19.60.050 or 19.60.055.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Moore, the Senate concurred in the House amendment to Senate Bill No. 5330.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5330, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5330, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

     Voting yea: Senators Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 42.

     Excused: Senators Amondson, Moyer, Prince, Sheldon, Skratek, Talmadge and West - 7.

     SENATE BILL NO. 5330, 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.


CHANGE IN CONFERENCE COMMITTEE APPOINTMENT

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1761


     On motion of Senator Nelson, Senator Erwin will replace Senator von Reichbauer as a member of the Conference Committee on Engrossed Substitute House Bill No. 1761.


MOTION


     On motion of Senator Nelson, the change in the Conference Committee appointment was confirmed.


MOTION


     On motion of Senator Jesernig, Senator Loveland was excused.


MESSAGE FROM THE HOUSE


April 17, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5342 with the following amendment(s):

     On page 1, at the beginning of line 9, insert "(1)"

     On page 1, line 14, after "year." insert the following:

"(2)"

     On page 1, line 16, after "alcohol" insert "receiving the exemption under subsection (1) of this section and"

     On page 2, at the beginning of line 3, insert "(3)", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     Senator Vognild moved that the Senate do concur in the House amendments to Engrossed Senate Bill No. 5342.


POINT OF INQUIRY


     Senator Anderson: "Senator Vognild, reading the House amendment--we have a synopsis in our book--it says that the creditor exemption is only available for alcohol manufactured by small companies. So, we are companies instead of amount now?"

     Senator Vognild: "Senator, when the bill left here, it said 'companies' and that is the way that Senator Prince, who was very concerned with this, and some other people who were concerned--about three companies in this state--that manufactured small amounts and they can continue to receive their credits and that is the language agreed upon before it left here."

     Senator Anderson: "Senator Vognild, currently, the Georgia-Pacific Corporation in Bellingham has been manufacturing alcohol or gasohol. Are they exempted under this bill?"

     Senator Vognild: "It is my understanding that they are exempt--pardon me--they are not exempt, it is my understanding they are eligible for the credit which is given under this bill."


POINT OF INQUIRY


     Senator Nelson: "Senator Vognild, with the House amendments to this bill, what now becomes the proposed revenue that the state will receive from the elimination of this exemption? Has it changed based on the House amendment, in any way? Is it still something around forty million dollars?"

     Senator Vognild: "Yes, the House amendment has not changed it. The full repeal was in the neighborhood of forty-two million dollars. It was estimated that when the bill passed here that there would be about a two to two and a half million exemption still out there, so the anticipated revenue should be in the neighborhood of thirty-nine million now."

     Senator Nelson: "Which would be equivalent to roughly two pennies of gas tax money?"

     Senator Vognild: "Not quite two pennies. A penny generates about twenty-six million a year or so, so it would be about one and one-half or one and three quarter."

     Senator Nelson: "OK, so it is in essence passed on, in most cases, to the consumer at the pump?"

     Senator Vognild: "That is correct, Senator, there is one peculiar thing about this particular revenue scheme and that is one-half of this goes to local government, so only one-half of this would accrue to the state."

     Further debate ensued.

     The President declared the question before the Senate to be the motion by Senator Vognild that the Senate do concur in the House amendments to Engrossed Senate Bill No. 5342.

     The motion by Senator Vognild carried and the Senate concurred in the House amendments to Engrossed Senate Bill No. 5342.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5342, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5342, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 13; Absent, 1; Excused, 4.

     Voting yea: Senators Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, McAuliffe, Moore, Moyer, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Skratek, Smith, A., Snyder, Spanel, Sutherland, Vognild, Williams, Winsley and Wojahn - 31.

     Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, McCaslin, McDonald, Nelson, Newhouse, Roach, Sellar, Smith, L. and von Reichbauer - 13.

     Absent: Senator Rinehart - 1.

     Excused: Senators Loveland, Sheldon, Talmadge and West - 4.

     ENGROSSED SENATE BILL NO. 5342, 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 6, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5704 with the following amendment(s):

     On page 2, beginning on line 15, after "person" strike all material through "by" on line 17, and insert ", with intent to defraud a cardholder, credit card issuer, or financial institution"

     On page 2, line 18, after "(a)" strike "Presenting to or depositing with, or causing" and insert "Presents to or deposits with, or causes"

     On page 2, line 22, after "(b) strike "Employing, soliciting, or otherwise causing" and insert "Employs, solicits, or otherwise causes"

     On page 2, line 27, after (c) strike "Employing, soliciting, or otherwise causing" and insert "Employs, solicits, or otherwise causes", and the same are herewith transmitted.

MARILYN SHOWALTER, Deputy Chief Clerk


MOTION


     On motion of Senator Adam Smith, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5704 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. 5704 and the House amendments thereto: Senators Adam Smith, McCaslin and Quigley.


MOTION


     On motion of Senator Adam Smith, the Conference Committee appointments were confirmed.


PERSONAL PRIVILEGE


     Senator Amondson: "A point of personal privilege, Mr. President. Would it be offensive to you or to this body if we removed our coat? It is a little warm in here."


REPLY BY THE PRESIDENT


     President Pritchard: "I think we are going to stick with the rule. I would want to talk to the people on both sides of the aisle and have leadership to talk it over for us to make a change. The rule has been that gentlemen wear coats. I realize that if there was a strong feeling on a large number of people--Senator McCaslin do you have a feeling on this subject?"


PERSONAL PRIVILEGE


     Senator McCaslin: "A point of personal privilege, Mr. President. You asked if we checked with the other side, I'd like your permission to talk with Senator Jesernig concerning the temperature on the floor and whether or not Senators should be--what is the word I am looking for--cajoled, forced, mandated, that we wear coats, while all the wonderful ladies here have no ties on. They do have blouses, if that is the correct pronunciation--necklaces--and I just think it would be fair. I know you are always fair, Mr. President, to the whole body, so I would appreciate an affirmative ruling."


PERSONAL PRIVILEGE


     Senator Moore: "On a matter of personal privilege, also, Mr. President. Although I have been known to wear unique ties on occasion, I hold this building in great awe. I was here, believe it or not, when it was built and I know you can very well believe it, Senator von Reichbauer. I really feel strongly that this building deserves the dignity of wearing a coat. I will also wear mine, no matter how hot it gets. Thank you."


REPLY BY THE PRESIDENT


     President Pritchard: "Of course what I would like, Senator Moore, is to have the temperature right so that people would feel comfortable. I am always amazed that on the same day I can have one member complain about how cold it is out in the seats here complaining that it is too cold and another Senator comes along and says that it is too hot. Senator Hargrove would like to get in on the discussion and Senator what have you got to say?"


PERSONAL PRIVILEGE


     Senator Hargrove: "A point of personal privilege, Mr. President. I think that if you want to have everybody feel comfortable and get rid of the heat, we are going to have to get rid of a lot of these bills."


PERSONAL PRIVILEGE


     Senator McCaslin: "A point of personal privilege, Mr. President. Obviously, ladies and gentlemen, the acoustics are poor in here. Senator Moore we did not ask you to remove your coat; we asked if we could remove ours."

     Further debate ensued.


PERSONAL PRIVILEGE


     Senator Deccio: "A point of personal privilege, Mr. President. The reason that Senator Wojahn feels like she in a wind tunnel is that she sits directly across from Senator McCaslin. Senator McCaslin isn't thinking right today. He is getting older and today is his birthday."


PERSONAL PRIVILEGE


     Senator Roach: "A point of personal privilege, Mr. President. Yes, I am a little surprised. I thought that we have not been able to demonstrate yet that there is any variance in the temperature. To me it seems quite normal, and I always thought it was not the other gender that got the hot flashes."


REPLY BY THE PRESIDENT


     President Pritchard: "Well, the President will take all these requests under advisement and I think it is time we go back to a Message from the House."


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5736 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 51.04.030 and 1989 c 189 s 1 are each amended to read as follows:

      The director shall, through the division of industrial insurance, supervise the providing of prompt and efficient care and treatment, including care provided by physicians' assistants governed by the provisions of chapters 18.57A and 18.71A RCW, acting under a supervising physician, and including chiropractic care, to workers injured during the course of their employment at the least cost consistent with promptness and efficiency, without discrimination or favoritism, and with as great uniformity as the various and diverse surrounding circumstances and locations of industries will permit and to that end shall, from time to time, establish and promulgate and supervise the administration of printed forms, rules, regulations, and practices for the furnishing of such care and treatment: PROVIDED, That, the department may recommend to an injured worker particular health care services and providers where specialized treatment is indicated or where cost effective payment levels or rates are obtained by the department: AND PROVIDED FURTHER, That the department may enter into contracts for goods and services including, but not limited to, durable medical equipment so long as state-wide access to quality service is maintained for injured workers.

      The director shall make and, from time to time, change as may be, and promulgate a fee bill of the maximum charges to be made by any physician, surgeon, chiropractor, hospital, druggist, physicians' assistants as defined in chapters 18.57A and 18.71A RCW, acting under a supervising physician or other agency or person rendering services to injured workers. No service covered under this title shall be charged or paid at a rate or rates exceeding those specified in such fee bill, and no contract providing for greater fees shall be valid as to the excess.

      The director or self-insurer, as the case may be, shall make a record of the commencement of every disability and the termination thereof and, when bills are rendered for the care and treatment of injured workers, shall approve and pay those which conform to the promulgated rules, regulations, and practices of the director and may reject any bill or item thereof incurred in violation of the principles laid down in this section or the rules and regulations promulgated under it.

      NEW SECTION. Sec. 2. A new section is added to chapter 51.04 RCW to read as follows:

      The director shall appoint an associate medical director for chiropractic. The associate medical director must be eligible to be licensed under chapter 18.25 RCW.

      NEW SECTION. Sec. 3. A new section is added to chapter 51.36 RCW to read as follows:

      (1) The health services that are available to an injured worker under RCW 51.36.010 include chiropractic treatment in appropriate cases within the scope of practice under chapter 18.25 RCW. As appropriate, and subject to the requirements for examinations of workers specified in this title, a worker may be required by the department to undergo chiropractic examination by a chiropractor licensed under chapter 18.25 RCW for the purpose of assisting the department in making determinations for the closure of a claim, in assessing the necessity and appropriateness of chiropractic care, or in making other determinations within the scope of chiropractic practice related to the worker's industrial injury.

      (2) The department may establish treatment and utilization standards for chiropractic treatment in consultation with representatives of the chiropractic profession. The standards, if any, may be developed in conjunction with the department of health. The standards should include some or all of the following:

      (a) Standards designed to assure quality treatment and to maximize recovery from the industrial injury;

      (b) Standards designed to contain costs, consistent with assured access to medically necessary treatment;

      (c) Standards that permit review of an injured worker's progress toward recovery after a stated number of chiropractic treatments. The standards may require review of chiropractic treatment based on a specified number of treatments, but the standards may not require termination of treatment based solely on the number of treatments;

      (d) Standards for requesting consultation with chiropractors by the department or other health services providers on the necessity or appropriateness of chiropractic care or other subjects within the chiropractic scope of practice.

      Sec. 4. RCW 51.32.112 and 1988 c 114 s 2 are each amended to read as follows:

      (1) The department shall develop standards for the conduct of special medical examinations to determine permanent disabilities, including, but not limited to:

      (a) The qualifications of persons conducting the examinations;

      (b) The criteria for conducting the examinations, including guidelines for the appropriate treatment of injured workers during the examination; and

      (c) The content of examination reports.

      (2) Within the appropriate scope of practice, chiropractors licensed under chapter 18.25 RCW may conduct special medical examinations to determine permanent disabilities in consultation with physicians licensed under chapter 18.57 or 18.71 RCW. The department, in its discretion, may request that a special medical examination be conducted by a single chiropractor if the department determines that the sole issues involved in the examination are within the scope of practice under chapter 18.25 RCW. However, nothing in this section authorizes the use as evidence before the board of a chiropractor's determination of the extent of a worker's permanent disability if the determination is not requested by the department.

      (3) The department shall investigate the amount of examination fees received by persons conducting special medical examinations to determine permanent disabilities, including total compensation received for examinations of department and self- insured claimants, and establish compensation guidelines and compensation reporting criteria.

      (((3))) (4) The department shall investigate the level of compliance of self-insurers with the requirement of full reporting of claims information to the department, particularly with respect to medical examinations, and develop effective enforcement procedures or recommendations for legislation if needed.

      Sec. 5. RCW 51.36.100 and 1986 c 200 s 1 are each amended to read as follows:

      The legislature finds and declares it to be in the public interest of the residents of the state of Washington that a proper regulatory and inspection program be instituted in connection with the provision of medical, chiropractic, dental, vocational, and other health services to industrially injured workers pursuant to Title 51 RCW. In order to effectively accomplish such purpose and to assure that the industrially injured worker receives such services as are paid for by the state of Washington, the acceptance by the industrially injured worker of such services, and the request by a provider of services for reimbursement for providing such services, shall authorize the director of the department of labor and industries or the director's authorized representative to inspect and audit all records in connection with the provision of such services.

      Sec. 6. RCW 51.36.110 and 1986 c 200 s 2 are each amended to read as follows:

      The director of the department of labor and industries or the director's authorized representative shall have the authority to:

      (1) Conduct audits and investigations of providers of medical, chiropractic, dental, vocational, and other health services furnished to industrially injured workers pursuant to Title 51 RCW. In the conduct of such audits or investigations, the director or the director's authorized representatives may examine all records, or portions thereof, including patient records, for which services were rendered by a health services provider and reimbursed by the department, notwithstanding the provisions of any other statute which may make or purport to make such records privileged or confidential: PROVIDED, That no original patient records shall be removed from the premises of the health services provider, and that the disclosure of any records or information obtained under authority of this section by the department of labor and industries is prohibited and constitutes a violation of RCW 42.22.040, unless such disclosure is directly connected to the official duties of the department: AND PROVIDED FURTHER, That the disclosure of patient information as required under this section shall not subject any physician or other health services provider to any liability for breach of any confidential relationships between the provider and the patient: AND PROVIDED FURTHER, That the director or the director's authorized representative shall destroy all copies of patient medical records in their possession upon completion of the audit, investigation, or proceedings;

      (2) Approve or deny applications to participate as a provider of services furnished to industrially injured workers pursuant to Title 51 RCW; and

      (3) Terminate or suspend eligibility to participate as a provider of services furnished to industrially injured workers pursuant to Title 51 RCW.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


POINT OF ORDER


     Senator Wojahn: "A point of order, Mr. President. I believe this particular amendment to the Senate Bill expands the scope and object of this particular bill. In the first place, it requires that chiropractors do disability rating exams that determine personal permanent disability awards and pensions which expands what they are able to do now and, also, it prohibits the department from adopting standards that terminate chiropractic treatments based on the number of chiropractic treatments. The third thing that it does, it authorizes the department to develop treatment and utilization standards, but only in consultation with the chiropractic profession, which vastly expands the scope of this bill."

     There being no objection, the President deferred further consideration of Substitute Senate Bill No. 5736.


MESSAGE FROM THE HOUSE


April 9, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5799 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 58.17.280 and 1969 ex.s. c 271 s 29 are each

amended to read as follows:

Any city, town or county ((may)) shall, by ordinance, regulate

the procedure whereby short subdivisions, subdivisions, streets, lots and blocks are named and numbered. A lot numbering system and a house address system, however, shall be provided by the municipality for short subdivisions and subdivisions and must be clearly shown on the short plat or final plat at the time of approval.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Sutherland, the Senate concurred in the House amendment to Senate Bill No. 5799.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5799, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5799, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

     Absent: Senator Rinehart - 1.

     Excused: Senators Loveland and Talmadge - 2.

     SENATE BILL NO. 5799, 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 has passed SUBSTITUTE SENATE BILL NO. 5829 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 19.146.005 and 1987 c 391 s 1 are each amended to read as follows:

      The legislature finds and declares that the brokering of residential real estate loans substantially affects the public interest. The practices of mortgage brokers have had significant impact on the citizens of the state and the banking and real estate industries. It is the intent of the legislature to establish a temporary state system of licensure in addition to rules of practice and conduct of mortgage brokers to promote honesty and fair dealing with citizens and to preserve public confidence in the lending and real estate community.

      Sec. 2. RCW 19.146.010 and 1987 c 391 s 3 are each amended to read as follows:

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

      (1) "Affiliate" means any person who directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with another person.

      (2) "Computer loan origination systems" or "CLO system" means the real estate mortgage financing information system defined by rule of the director.

      (3) "Department" means the department of licensing.

      (4) "Director" means the director of licensing.

      (5) "Loan originator" means a natural person employed, either directly or indirectly, by a licensed mortgage broker, or a natural person who represents a licensed mortgage broker, in the performance of any acts specified in subsection (7) of this section.

      (6) "Lock-in agreement" means an agreement with a borrower made by a mortgage broker or loan originator, in which the mortgage broker agrees that, for a period of time, a specific interest rate or other financing terms will be the rate or terms at which it will make a loan available to that borrower.

      (7) "Mortgage broker" means ((every)) any person who for compensation or gain, or in the expectation of compensation ((either directly or indirectly makes, negotiates, or offers to make or negotiate a residential mortgage loan)) or gain, directly or indirectly negotiates, places, assists in placement, finds, or offers to negotiate, place, assist in placement, or find residential mortgage loans for others.

      (((3))) (8) "Person" means a natural person, corporation, company, partnership, or association.

      (((4))) (9) "Residential mortgage loan" means any loan primarily for personal, family, or household use secured by a mortgage or deed of trust on residential real estate upon which is constructed or intended to be constructed a single family dwelling or multiple family dwelling of four or less units.

      (((5))) (10) "Third-party provider" means any person other than a mortgage broker or lender who provides goods or services to the mortgage broker in connection with the preparation of the borrower's loan and includes, but is not limited to, credit reporting agencies, title companies, appraisers, structural and pest inspectors, or escrow companies.

      Sec. 3. RCW 19.146.020 and 1987 c 391 s 4 are each amended to read as follows:

      (1) Except as provided under subsection (2) of this section, the following are exempt from all provisions of this chapter:

      (((1))) (a) Any person doing business under the laws of this state or the United States relating to commercial banks, bank holding companies, ((mutual)) savings banks, trust companies, savings and loan associations, credit unions, consumer ((finance companies, industrial)) loan companies, insurance companies, or real estate investment trusts as defined in 26 U.S.C. Sec. 856 and the affiliates, subsidiaries, and service corporations thereof;

      (((2))) (b) An attorney licensed to practice law in this state who is not principally engaged in the business of negotiating residential mortgage loans when such attorney renders services in the course of his or her practice as an attorney;

      (((3))) (c) Any person doing any act under order of any court;

      (((4))) (d) Any person making or acquiring a residential mortgage loan solely with his or her own funds for his or her own investment without intending to resell the residential mortgage loans;

      (((5))) (e) A real estate broker or salesperson licensed by the state who obtains financing for a real estate transaction involving a bona fide sale of real estate in the performance of his or her duties as a real estate broker and who receives only the customary real estate broker's or salesperson's commission in connection with the transaction;

      (((6))) (f) Any mortgage broker approved and subject to auditing by the federal national mortgage association, the government national mortgage association, or the federal home loan mortgage corporation;

      (((7))) (g) Any mortgage broker approved by the United States secretary of housing and urban development for participation in any mortgage insurance program under the National Housing Act, 12 U.S.C. Sec. 1701, as now or hereafter amended; ((and

      (8))) (h) The United States of America, the state of Washington, any other state, and any Washington city, county, or other political subdivision, and any agency, division, or corporate instrumentality of any of the entities in this subsection (1)(h); and

      (i) A real estate broker who provides information only in connection with a CLO system, who may receive a fee for such information in an amount approved by the director and who conforms to all rules of the director with respect to the providing of such service.

      (2) Those persons otherwise exempt under subsection (1) (f), (g), and (i) of this section must comply with section 4 of this act.

      NEW SECTION. Sec. 4. It is unlawful for a loan originator, mortgage broker required to be licensed under this chapter, or mortgage broker otherwise exempted from this chapter under RCW 19.146.020(1) (f), (g), or (i) in connection with a residential mortgage loan to:

      (1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders;

      (2) Engage in any conduct that operates as a fraud upon or unfair or deceptive practice toward any person;

      (3) Obtain property by fraud or misrepresentation;

      (4) Solicit or enter into a contract with a borrower that provides in substance that the mortgage broker may earn a fee or commission through the mortgage broker's "best efforts" to obtain a loan even though no loan is actually obtained for the borrower;

      (5) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting from a person exempt from licensing under RCW 19.146.020(1) (f) or (g) or a lender with whom the mortgage broker maintains a written correspondent or loan brokerage agreement under RCW 19.146.040;

      (6) Fail to make disclosures to loan applicants and noninstitutional investors as required by RCW 19.146.030 and any other applicable state or federal law;

      (7) Make, in any manner, any false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan;

      (8) Make any false statement in connection with any reports filed by a licensee, or in connection with any examination of the licensee's business;

      (9) Make any payment, directly or indirectly, to any fee appraiser third party of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;

      (10) Fail to include the words "licensed mortgage broker" in all advertising for the broker's services that are directed at the general public if the person is required to be licensed under this chapter;

      (11) Fail to comply with the requirements of the truth-in-lending act, 15 U.S.C. Sec. 1601 and Regulation Z, 12 C.F.R. Sec. 226, as now or hereafter amended, in all advertising of residential mortgage loans.

      NEW SECTION. Sec. 5. (1) A person may not engage in the business of a mortgage broker, except as an employee of a person licensed or exempt from licensing, without first obtaining and maintaining a license under this chapter.

      (2) A person may not bring a suit or action for the collection of compensation as a mortgage broker unless the plaintiff alleges and proves that he or she was a duly licensed mortgage broker, or exempt from the license requirement of this chapter, at the time of offering to perform or performing any such an act or service regulated by this chapter. This subsection does not apply to suits or actions for the collection or compensation for services performed prior to the effective date of this section.

      NEW SECTION. Sec. 6. (1) Application for a mortgage broker license under this chapter shall be in writing and in the form prescribed by the director. Unless waived by the director, the application shall contain at least the following information:

      (a) The name, address, date of birth, and social security number of the applicant, and any other names, dates of birth, or social security numbers previously used by the applicant;

      (b) If the applicant is a partnership or association, the name, address, date of birth, and social security number of each general partner or principal of the association, and any other names, dates of birth, or social security numbers previously used by the members;

      (c) If the applicant is a corporation, the name, address, date of birth, and social security number of each officer, director, registered agent, and each principal stockholder, and any other names, dates of birth, or social security numbers previously used by the officers, directors, registered agents, and principal stockholders;

      (d) The street address, county, and municipality where the principal business office is to be located;

      (e) Submission of a complete set of fingerprints taken by an authorized law enforcement officer; and

      (f) Such other information regarding the applicant's background, financial responsibility, experience, character, and general fitness as the director may require by rule.

      (2) At the time of filing an application for a license under this chapter, each applicant shall pay to the director the appropriate license fee in an amount determined by rule of the director in accordance with RCW 43.24.086 to be sufficient to cover, but not exceed, the department's costs in administering this chapter. The director shall deposit the moneys in the mortgage broker fund created under section 19 of this act.

      (3)(a) Each applicant for a mortgage broker's license shall file and maintain a surety bond, in an amount of forty thousand dollars or such lower amount the director deems adequate to protect the public interest, executed by the applicant as obligor and by a surety company authorized to do a surety business in this state as surety. The bond shall run to the state of Washington as obligee, and shall run to the benefit of the state and any person or persons who suffer loss by reason of the applicant's violation of any provision of this chapter or rules adopted under this chapter. The bond shall be conditioned that the obligor as licensee will faithfully conform to and abide by this chapter and all rules adopted under this chapter, and shall reimburse all persons who suffer loss by reason of a violation of this chapter or rules adopted under this chapter. The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director of its intent to cancel the bond. The cancellation shall be effective thirty days after the notice is received by the director. Whether or not the bond is renewed, continued, reinstated, reissued, or otherwise extended, replaced, or modified, including increases or decreases in the penal sum, it shall be considered one continuous obligation, and the surety upon the bond shall not be liable in an aggregate or cumulative amount exceeding the penal sum set forth on the face of the bond. In no event shall the penal sum, or any portion thereof, at two or more points in time be added together in determining the surety's liability. The bond shall not be liable for any penalties imposed on the licensee, including, but not limited to, any increased damages or attorneys' fees, or both, awarded under RCW 19.86.090. The applicant may obtain the bond directly from the surety or through a group bonding arrangement involving a professional organization comprised of mortgage brokers if the arrangement provides at least as much coverage as is required under this subsection.

      (b) In lieu of a surety bond, the applicant may, upon approval by the director, file with the director a certificate of deposit, an irrevocable letter of credit, or such other instrument as approved by the director by rule, drawn in favor of the director for an amount equal to the required bond.

      (c) In lieu of the surety bond or compliance with (b) of this subsection, an applicant may obtain insurance or coverage from an association comprised of mortgage brokers that is organized as a mutual corporation for the sole purpose of insuring or self-insuring claims that may arise from a violation of this chapter. An applicant may only substitute coverage under this subsection for the requirements of (a) or (b) of this subsection if the director, with the consent of the insurance commissioner, has authorized such association to organize a mutual corporation under such terms and conditions as may be imposed by the director to ensure that the corporation is operated in a financially responsible manner to pay any claims within the financial responsibility limits specified in (a) of this subsection.

      NEW SECTION. Sec. 7. (1) The director shall issue and deliver a mortgage broker license to an applicant if, after investigation, the director makes the following findings:

      (a) The applicant has paid the required license fees;

      (b) The applicant has complied with section 6 of this act;

      (c) The applicant has not had a license issued under this chapter or any similar state statute suspended or revoked within five years of the filing of the present application;

      (d) The applicant has not been convicted of a felony within seven years of the filing of the present application;

      (e) The applicant has at least two years of experience in the residential mortgage loan industry; and

      (f) The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a belief that the business will be operated honestly, fairly, and efficiently within the purposes of this chapter.

      (2) If the director does not find the conditions of subsection (1) of this section have been met, the director shall not issue the license. The director shall notify the applicant of the denial and return to the applicant the bond or approved alternative and any remaining portion of the license fee that exceeds the departments actual cost to investigate the license.

      (3) The director may delay the effective date of section 5 of this act for an additional thirty days with respect to an applicant for a mortgage broker license for the purpose of processing the application when the applicant has filed a completed application by October 31, 1993.

      (4) A license issued pursuant to this chapter is valid from the date of issuance.

      (5) A licensee may surrender a license by delivering to the director written notice of surrender, but the surrender does not affect the licensee's civil or criminal liability arising from acts or omissions occurring before such surrender.

      NEW SECTION. Sec. 8. (1) The director shall enforce all laws and rules relating to the licensing of mortgage brokers, grant or deny licenses to mortgage brokers, and hold hearings. The director may impose any one or more of the following sanctions: Suspend or revoke licenses, deny applications for licenses, or fine violators under this chapter. In addition, the director may issue an order directing a licensee or person subject to this chapter to cease and desist from conducting business in a manner that is injurious to the public or violates any provision of this chapter.

      (2) The director may take those actions specified in subsection (1) of this section if the director finds any of the following:

      (a) The licensee has failed to pay a fee due the state of Washington, to maintain in effect the bond or approved alternative required under this chapter, or to comply with any specific order or demand of the director lawfully made and directed to the licensee in accordance with this chapter; or

      (b) The licensee or person subject to this chapter has violated any provision of this chapter or a rule adopted under this chapter; or

      (c) The licensee made false statements on the application or omitted material information that, if known, would have allowed the director to deny the application for the original license.

      (3) The director shall establish by rule standards for licensure of applicants licensed in other jurisdictions.

      NEW SECTION. Sec. 9. In accordance with the administrative procedure act, chapter 34.05 RCW, the director may issue rules to govern the activities of licensed mortgage brokers consistent with this chapter.

      NEW SECTION. Sec. 10. The proceedings for denying license applications, issuing cease and desist orders, and suspending or revoking licenses issued pursuant to this chapter and any appeal therefrom or review thereof shall be governed by the provisions of the administrative procedure act, chapter 34.05 RCW.

      NEW SECTION. Sec. 11. For the purposes of investigating complaints arising under this chapter, the director may at any time, either personally or by a designee, examine the business, including but not limited to the books, accounts, records, and files used therein, of every licensee and of every person engaged in the business of mortgage brokering, whether such a person shall act or claim to act under or without the authority of this chapter. For that purpose the director and designated representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all such persons. The director or designated person may require the attendance of and examine under oath all persons whose testimony may be required about the loans or the business or subject matter of any such investigation.

      Sec. 12. RCW 19.146.030 and 1987 c 391 s 5 are each amended to read as follows:

      (1) Upon receipt of a loan application and before the receipt of any moneys from a borrower, a mortgage broker shall provide to each borrower a written notice indicating the number of the lenders with whom it maintains a written correspondent or loan brokerage agreement, unless exempt from licensing under this chapter, and make a full written disclosure to each borrower containing an itemization and explanation of all fees and costs that the borrower is required to pay in connection with obtaining a residential mortgage loan. A good faith estimate of a fee or cost shall be provided if the exact amount of the fee or cost is not determinable.

      (2) The written disclosure shall contain the following information:

      (((1))) (a) The annual percentage rate, finance charge, amount financed, total amount of all payments, number of payments, amount of each payment, amount of points or prepaid interest and the conditions and terms under which any loan terms may change between the time of disclosure and closing of the loan; and if a variable rate, the circumstances under which the rate may increase, any limitation on the increase, the effect of an increase, and an example of the payment terms resulting from an increase. Disclosure in compliance with the requirements of the Truth-in-Lending Act, 15 U.S.C. Sec. 1601 and Regulation Z, 12 C.F.R. Sec. 226, as now or hereafter amended, shall be deemed to comply with the disclosure requirements of this subsection;

      (((2))) (b) The itemized costs of any credit report, appraisal, title report, title insurance policy, mortgage insurance, escrow fee, property tax, insurance, structural or pest inspection, and any other third-party provider's costs associated with the residential mortgage loan. Disclosure through good faith estimates of settlement services and special information booklets in compliance with the requirements of the Real Estate Settlement Procedures Act, 12 U.S.C. Sec. 2601, and Regulation X, 24 C.F.R. Sec. 3500, as now or hereafter amended, shall be deemed to comply with the disclosure requirements of this subsection;

      (((3))) (c) If applicable, the cost, terms, duration, and conditions of ((an agreement to lock-in or commit the mortgage broker or lender to a specific interest rate or other financing term for any period of time up to and including the time the loan is closed)) a lock-in agreement and whether a lock-in agreement has been entered;

      (((4))) (d) A statement that if the borrower is unable to obtain a loan for any reason, the mortgage broker must, within five days of a written request by the borrower, give copies of any appraisal, title report, or credit report paid for by the borrower to the borrower, and transmit the appraisal, title report, or credit report to any other mortgage broker or lender to whom the borrower directs the documents to be sent;

      (((5))) (e) The name of the lender and the nature of the business relationship between the lender providing the residential mortgage loan and the mortgage broker, if any: PROVIDED, That this disclosure may be made at any time up to the time the borrower accepts the lender's commitment; and

      (((6))) (f) A statement providing that moneys paid by the borrower to the mortgage broker for third-party provider services are held in a trust account and any moneys remaining after payment to third-party providers will be refunded.

      A violation of the Truth-in-Lending Act, Regulation Z, the Real Estate Settlement Procedures Act, and Regulation X is a violation of this section for purposes of this chapter.

      Sec. 13. RCW 19.146.070 and 1987 c 391 s 9 are each amended to read as follows:

      (1) Except as otherwise permitted by this section, a mortgage broker shall not receive a fee, commission, or compensation of any kind in connection with the preparation, negotiation, and brokering of a residential mortgage loan unless a borrower actually obtains a loan from a lender on the terms and conditions agreed upon by the borrower and mortgage broker.

      (2) A mortgage broker may:

      (a) If the mortgage broker has obtained for the borrower a written commitment from a lender for a loan on the terms and conditions agreed upon by the borrower and the mortgage broker, and the borrower fails to close on the loan through no fault of the mortgage broker, charge a fee not to exceed three hundred dollars for services rendered, preparation of documents, or transfer of documents in the borrower's file which were prepared or paid for by the borrower if the fee is not otherwise prohibited by the Truth-in-Lending Act, 15 U.S.C. Sec. 1601, and Regulation Z, 12 C.F.R. Sec. 226, as now or hereafter amended; or

      (b) Solicit or receive fees for third party provider goods or services in advance. Fees for any goods or services not provided must be refunded to the borrower and the mortgage broker may not charge more for the goods and services than the actual costs of the goods or services charged by the third party provider.

      (((3) A mortgage broker may not:

      (a) Solicit or enter into a contract with a borrower that provides in substance that the mortgage broker may earn a fee or commission through the mortgage broker's "best efforts" to obtain a loan even though no loan is actually obtained for the borrower; or

      (b) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting.))

      NEW SECTION. Sec. 14. (1) Any person injured by a violation of this chapter may bring an action against the surety bond or approved alternative of the licensed mortgage broker who committed the violation or who employed the loan originator committing the violation.

      (2) A person who is damaged by the licensee's violation of this chapter, or rules adopted under this chapter, may bring suit upon the surety bond or approved alternative in the superior court of any county in which jurisdiction over the licensee may be obtained. Jurisdiction shall be exclusively in the superior court. Any such action must be brought not later than one year after the alleged violation of this chapter or rules adopted under this chapter. In the event valid claims against a bond or deposit exceed the amount of the bond or deposit, each claimant shall only be entitled to a pro rata amount, based on the amount of the claim as it is valid against the bond or deposit, without regard to the date of filing of any claim or action. A judgment arising from a violation of this chapter or rule adopted under this chapter shall be entered for actual damages and in no case be less than the amount paid by the borrower to the licensed mortgage broker plus reasonable attorneys' fees and costs. In no event shall the surety bond or approved alternative provide payment for any trebled or punitive damages.

      (3) The remedies provided under this section are cumulative and nonexclusive and do not affect any other remedy available at law.

      NEW SECTION. Sec. 15. A licensed mortgage broker is liable for any conduct violating this chapter by a loan originator or other licensed mortgage broker while employed by the broker. In addition, a branch office manager is liable for any conduct violating this chapter by a loan originator or other licensed mortgage broker employed at the branch office.

      NEW SECTION. Sec. 16. No license issued under the provisions of this chapter shall authorize any person other than the person to whom it is issued to do any act by virtue thereof nor to operate in any other manner than under his or her own name except:

      (1) A licensed mortgage broker may operate or advertise under a name other than the one under which the license is issued by obtaining the written consent of the director to do so; and

      (2) A broker may establish one or more branch offices under a name or names different from that of the main office if the name or names are approved by the director, so long as each branch office is clearly identified as a branch or division of the main office. No broker may establish branch offices under more than three names. Both the name of the branch office and of the main office must clearly appear on the sign identifying the office, if any, and in any advertisement or on any letterhead of any stationery or any forms, or signs used by the mortgage firm on which either the name of the main or branch offices appears.

      NEW SECTION. Sec. 17. Every licensed mortgage broker must have and maintain an office in this state accessible to the public which shall serve as his or her office for the transaction of business. Any office so established must comply with the zoning requirements of city or county ordinances and the broker's license must be prominently displayed therein. In addition, any branch office must comply with the zoning requirements of city or county ordinances.

      NEW SECTION. Sec. 18. A licensed mortgage broker may apply to the director for authority to establish one or more branch offices under the same or different name as the main office upon the payment of a fee as prescribed by the director by rule. The director shall issue a duplicate license for each of the branch offices showing the location of the main office and the particular branch. Each duplicate license shall be prominently displayed in the office for which it is issued. Each branch office shall be required to have a branch manager who shall be a licensed mortgage broker authorized by the mortgage broker to perform the duties of a branch manager.

      NEW SECTION. Sec. 19. All moneys collected under this chapter shall be deposited in the mortgage brokers' licensing account hereby created in the state treasury. Expenditures from the account, subject to appropriation, may be used solely for department costs in administering this chapter.

      Sec. 20. RCW 19.146.110 and 1987 c 391 s 13 are each amended to read as follows:

      Any person who violates any provision of ((RCW 19.146.005 through 19.146.040 or 19.146.060 through 19.146.100)) this chapter other than RCW 19.146.050 or any rule or order of the director shall be guilty of a misdemeanor punishable under chapter 9A.20 RCW. Any person who violates RCW 19.146.050 shall be guilty of a class C felony under chapter 9A.20 RCW.

      NEW SECTION. Sec. 21. (1) There is established the mortgage brokerage commission consisting of five commission members who shall act in an advisory capacity to the director on mortgage brokerage issues.

      (2) The director shall appoint the members of the commission, weighing the recommendations from professional organizations representing mortgage brokers. At least three of the commission members shall be mortgage brokers required to apply for a mortgage brokers license under this chapter and at least one shall be exempt from licensure under RCW 19.146.020(1) (f) or (g). No commission member shall be appointed who has had less than five years' experience in the business of residential mortgage lending. In addition, the attorney general, or a designee, and the director, or a designee, shall serve as ex officio, nonvoting members of the commission. Voting members of the commission shall serve for two-year terms with three of the initial commission members serving one-year terms. The department shall provide staff support to the commission.

      (3) Members of the commission shall be reimbursed for their travel expenses incurred in carrying out the provisions of this chapter in accordance with RCW 43.03.050 and 43.03.060. All costs and expenses associated with the commission shall be paid from the mortgage brokers' licensing account created in section 19 of this act.

      (4)(a) The commission shall advise the director on the characteristics and needs of the mortgage brokerage profession. In addition to its advisory capacity, the commission shall review all state and federal provisions governing mortgage brokers and shall prepare a report:

      (i) Summarizing state and federal statutes and regulations governing mortgage brokers;

      (ii) Identifying the type and magnitude of complaints arising with regard to the practices of mortgage brokers operating in this state;

      (iii) Reviewing the detrimental and beneficial effects of state licensing, bonding, training, experience, and educational requirements for mortgage brokers;

      (iv) Considering the appropriate location within state government to exercise regulatory authority and administer a licensing program; and

      (v) Containing recommended legislation that adopts ongoing state licensing requirements for mortgage brokers.

      (b) In preparing its report, the commission shall solicit comments from the mortgage broker industry, the department of licensing, the attorney general's office, other state regulators, and residential mortgage loan consumers. The committee shall submit its report to the labor and commerce committee of the senate and the financial institutions and insurance committee of the house of representatives by December 1, 1993.

      NEW SECTION. Sec. 22. The director shall take steps and adopt rules necessary to implement the sections of this act by their effective dates.

      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. Sections 4 through 11, 14 through 19, and 21 of this act are each added to chapter 19.146 RCW.

      NEW SECTION. Sec. 25. (1) If the powers, duties, and functions of the division of banking and the division of savings and loan are transferred into a new department, the powers, duties, and functions of the department relating to the administration of chapter 19.146 RCW shall be transferred to the new department. In such event, all references to the director or the department of licensing shall be construed to mean the new department or its director.

      (2) In the event that the new department is created, all reports, documents, surveys, books, records, files, papers, or other written or electronically stored material in the possession of the department of licensing pertaining to the powers, functions, and duties transferred under subsection (1) of this section shall be delivered to the custody of the new department. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of licensing in carrying out the powers, functions, and duties transferred by subsection (1) of this section shall be made available to the new department if such property was purchased from funds deposited in the mortgage brokers' licensing account. All funds contained in the mortgage brokers' licensing account shall be transferred to the appropriate account of the new department for administration of chapter 19.146 RCW and shall be used solely for the costs of administering this chapter. In the event any dispute arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and powers transferred under subsection (1) of this section, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      NEW SECTION. Sec. 26. (1) Sections 2 through 4, 9, 13, and 21 through 23 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

      (2) Sections 6 through 8, 10, 18, and 19 of this act shall take effect September 1, 1993.

      (3) Sections 1, 5, 11, 12, 14 through 17, and 20 of this act shall take effect October 31, 1993. However, the effective date of section 5 of this act may be delayed thirty days upon an order of the director of licensing under section 7(3) of this act.

      NEW SECTION. Sec. 27. This act shall expire October 31, 1994, except for section 21 of this act. However, if a licensing program for mortgage brokers is not extended past October 31, 1994, section 21 of this act also shall expire on October 31, 1994.", 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. 5829.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5829, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5829, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Jesernig, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

     Absent: Senators Hargrove and Rinehart - 2.

     Excused: Senator Loveland - 1.

     SUBSTITUTE SENATE BILL NO. 5829, 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 Bluechel was excused.


MESSAGE FROM THE HOUSE


April 6, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5407 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 70.94.650 and 1991 c 199 s 408 are each amended to read as follows:

      (1) Any person who proposes to set fires in the course of

      (a) weed abatement,

      (b) instruction in methods of fire fighting (((except forest fires))), except forest fire training, or

      (c) agricultural activities((,)) shall((, prior to carrying out the same,)) obtain a permit from an air pollution control authority ((or)), the department of ecology, ((as appropriate. Each such authority and the department of ecology shall, by rule or ordinance, establish a permit system to carry out the provisions of this section except as provided in RCW 70.94.660)) or a local entity delegated permitting authority under RCW 70.94.654. General permit criteria of state-wide applicability ((for ruling on such permits)) shall be established by the department, by rule, after consultation with the various air pollution control authorities. Permits shall be issued under this section based on seasonal operations or by individual operations, or both. All permits ((so issued)) shall be conditioned to insure that the public interest in air, water, and land pollution and safety to life and property is fully considered. In addition to any other requirements established by the department to protect air quality pursuant to other laws, applicants for permits must show that the setting of fires as requested is the most reasonable procedure to follow in safeguarding life or property under all circumstances or is otherwise reasonably necessary to successfully carry out the enterprise in which the applicant is engaged, or both. All burning permits will be designed to minimize air pollution insofar as practical. Nothing in this section shall relieve the applicant from obtaining permits, licenses, or other approvals required by any other law. An application for a permit to set fires in the course of agricultural burning for controlling diseases, insects, weed abatement or development of physiological conditions conducive to increased crop yield, shall be acted upon within seven days from the date such application is filed. The department of ecology and local air authorities shall provide convenient methods for issuance and oversight of agricultural burning permits. The department and local air authorities shall, through agreement, work with counties and cities to provide convenient methods for granting permission for agricultural burning, including telephone, facsimile transmission, issuance from local city or county offices, or other methods.

      (2) ((Except as provided in RCW 70.94.780)) Permit fees shall be assessed for ((outdoor)) burning under this section and shall be collected by the department of ecology ((or)), the appropriate local air authority, or a local entity delegated permitting authority pursuant to RCW 70.94.654 at the time the permit is issued. All fees collected shall be deposited in the air pollution control account created in RCW 70.94.015, except for that portion of the fee necessary to cover local costs of administering a permit issued under this section. Fees shall be set by rule by the permitting agency at the level determined by the task force created by subsection (4) of this section, but shall not exceed two dollars and fifty cents per acre to be burned. After fees are established by rule, any increases in such fees shall be limited to annual inflation adjustments as determined by the state office of the economic and revenue forecast council.

      (3) Conservation districts and the Washington State University agricultural extension program in conjunction with the department shall develop public education material for the agricultural community identifying the health and environmental ((affects [effects])) effects of agricultural outdoor burning and providing technical assistance in alternatives to agricultural outdoor burning.

      (4) An agricultural burning practices and research task force shall be established under the direction of the department. The task force shall be composed of a representative from the department who shall serve as chair; one representative of eastern Washington local air authorities; three representatives of the agricultural community from different agricultural pursuits; one representative of the department of agriculture; two representatives from universities or colleges knowledgeable in agricultural issues; one representative of the public health or medical community; and one representative of the conservation districts. The task force shall identify best management practices for reducing air contaminant emissions from agricultural activities and provide such information to the department and local air authorities. The task force shall determine the level of fees to be assessed by the permitting agency pursuant to subsection (2) of this section, based upon the level necessary to cover the costs of administering and enforcing the permit programs, to provide funds for research into alternative methods to reduce emissions from such burning, and to the extent possible be consistent with fees charged for such burning permits in neighboring states. The fee level shall provide, to the extent possible, for lesser fees for permittees who use best management practices to minimize air contaminant emissions. The task force shall identify research needs related to minimizing emissions from agricultural burning and alternatives to such burning. Further, the task force shall make recommendations to the department on priorities for spending funds provided through this chapter for research into alternative methods to reduce emissions from agricultural burning.

      Sec. 2. RCW 70.94.654 and 1991 c 199 s 409 are each amended to read as follows:

      (1) Whenever the department of ecology shall find that any fire protection agency, county, or conservation district which is outside the jurisdictional boundaries of an activated air pollution control authority is capable of effectively administering the issuance and enforcement of permits for any or all of the kinds of burning identified in RCW 70.94.650 and desirous of doing so, the department of ecology may delegate powers necessary for the issuance or enforcement, or both, of permits for any or all of the kinds of burning to the fire protection agency, county, or conservation district. Such delegation may be withdrawn by the department of ecology upon its finding that the fire protection agency, county, or conservation district is not effectively administering the permit program.

      (2) A local air authority may delegate authority to issue and enforce permits for burning under RCW 70.94.650 to any fire protection agency, county, or conservation district within the jurisdictional boundaries of the local air authority. A local air authority may withdraw delegation if the local air authority finds that the fire protection agency, county, or conservation district is not effectively administering the permit program.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Fraser, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5407 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. 5407 and the House amendment thereto: Senators Fraser, Barr and Loveland.


MOTION


     On motion of Senator Fraser, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 8, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5176 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The supervisor of banking and the supervisor of savings and loan in conjunction with the state treasurer's office and the department of social and health services shall study methods by which the state of Washington can facilitate the movement of funds to individuals who receive public assistance including but not limited to: Methods to limit the fees charged by financial institutions and other entities for the cashing of government checks and warrants; methods to ensure that presenters of government checks and warrants are properly identified; methods to encourage the offering by financial institutions of low cost checking accounts; and methods to encourage the development and use of debit cards and similar automated systems for the transfer of government funds to persons receiving public assistance. The supervisor of banking and supervisor of savings and loan shall report their findings and recommendations to the legislature by January 1, 1994.", 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. 5176.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5176, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5176, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 32; Nays, 14; Absent, 1; Excused, 2.

     Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 32.

     Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Nelson, Newhouse, Oke, Sheldon and Smith, L. - 14.

     Absent: Senator Rinehart - 1.

     Excused: Senators Bluechel and Loveland - 2.

     SUBSTITUTE SENATE BILL NO. 5176, 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 Rinehart was excused.


MESSAGE FROM THE HOUSE


April 7, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5688 with the following amendment(s):

     On page 3, line 20, strike "and"

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

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

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

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

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Owen, the Senate concurred in the House amendments to Substitute Senate Bill No. 5688.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5688, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5688, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Bauer, 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., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

     Voting nay: Senator Barr - 1.

     Excused: Senators Bluechel and Rinehart - 2.

     SUBSTITUTE SENATE BILL NO. 5688, 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 12, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5838 with the following amendment(s):

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

      "NEW SECTION. Sec. 1. The legislature finds that meeting future energy demands within the state will require the siting of new generating facilities, renewable resources, transmission facilities, and natural gas pipelines. The legislature further finds that current siting processes, designed to accommodate large thermal power plants, do not allow efficient development of current energy supply options. The legislature further finds that a comprehensive review and revision of siting policy is needed to ensure timely development of adequate, environmentally sound energy resources at an affordable cost.

      NEW SECTION. Sec. 2. There is created an energy siting process review committee. The committee shall review the siting processes currently applicable to energy facilities, including: (1) Major thermal power plants; (2) natural gas-fired combustion turbines; (3) cogeneration plants; (4) hydroelectric facilities; (5) other renewable resources, including wind, solar, geothermal, and biomass energy; (6) natural gas pipelines; and (7) electric transmission lines. The committee shall recommend changes to statutes, rules, and policies that will reduce the cost and allow timely siting of new resources while preserving environmental quality, recognizing and ensuring coordination with applicable federal licensing and permitting authorities, promoting energy system reliability, allowing public review and comment, and ensuring an appropriate role for local government.

      NEW SECTION. Sec. 3. The energy siting process review committee shall consist of fifteen members, as follows:

      (1) One member from each of the two largest caucuses of the senate, appointed by the president of the senate;

      (2) One member from each of the two largest caucuses of the house of representatives, appointed by the speaker of the house of representatives; and

      (3) Eleven members appointed by the governor, representing the following interests:

      (a) One member representing cities;

      (b) One member representing counties;

      (c) One member representing publicly owned electric utilities;

      (d) One member representing investor-owned electric utilities;

      (e) One member representing natural gas local distribution utilities;

      (f) One member representing natural gas pipeline companies;

      (g) One member representing environmental organizations;

      (h) One member representing independent power producers; and

      (i) Three members representing citizens at large.

      Members appointed by the governor shall represent the various geographical regions of the state.

      The chairperson shall be selected by the governor from the citizen members of the committee.

      Members appointed by the governor shall receive no compensation for their services but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060. Legislative members shall be reimbursed for expenses as provided in RCW 44.04.120.

      NEW SECTION. Sec. 4. The state energy office shall provide staff support to the energy siting process review committee.

      NEW SECTION. Sec. 5. The energy siting process review committee shall report its findings and recommendations, including proposed legislation, to the governor and appropriate standing committees of the legislature no later than December 1, 1993.

      NEW SECTION. Sec. 6. This act shall expire June 30, 1994.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Sutherland, the Senate concurred in the House amendment to Senate Bill No. 5838.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5838, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5838, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, 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., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Excused: Senators Bluechel and Rinehart - 2.

     SENATE BILL NO. 5838, 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 17, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5963 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 47.05.010 and 1969 ex.s. c 39 s 1 are each amended to read as follows:

      The legislature finds that ((anticipated revenues available for state highways for the foreseeable future will fall substantially short of the amount required to satisfy all of the state highway needs. It is the purpose of this chapter to establish a policy of priority programming for highway development having as its basis the rational selection of projects according to factual need, systematically scheduled to carry out defined objectives within limits of money and manpower, and fixed in advance with reasonable flexibility to meet changed conditions)) solutions to state highway deficiencies have become increasingly complex and diverse and that anticipated transportation revenues will fall substantially short of the amount required to satisfy all transportation needs. Difficult investment trade-offs will be required.

      It is the intent of the legislature that investment of state transportation funds to address deficiencies on the state highway system be based on a policy of priority programming having as its basis the rational selection of projects and services according to factual need and an evaluation of life cycle costs and benefits and which are systematically scheduled to carry out defined objectives within available revenue.

      The priority programming system shall ensure preservation of the existing state highway system, provide mobility for people and goods, support the state's economy, and promote environmental protection and energy conservation.

      The priority programming system shall implement the state-owned highway component of the state-wide multimodal transportation plan, consistent with local and regional transportation plans, by targeting state transportation investment to appropriate multimodal solutions which address identified state highway system deficiencies.

      The priority programming system for improvements shall incorporate a broad range of solutions that are identified in the state-wide multimodal transportation plan as appropriate to address state highway system deficiencies including but not limited to highway expansion, efficiency improvements, nonmotorized transportation facilities, high occupancy vehicle facilities, transit facilities and services, rail facilities and services, and transportation demand management programs.

      Sec. 2. RCW 47.05.021 and 1987 c 505 s 50 are each amended to read as follows:

      (1) The transportation commission is hereby directed to conduct periodic analyses of the entire state highway system, report thereon to the chairs of the transportation committees of the senate and house of representatives, including one copy to the staff of each of the committees, biennially and based thereon, to subdivide, classify, and subclassify according to their function and importance all designated state highways and those added from time to time and periodically review and revise the classifications into the following three functional classes:

      (a) The "principal arterial system" shall consist of a connected network of rural arterial routes with appropriate extensions into and through urban areas, including all routes designated as part of the interstate system, which serve corridor movements having travel characteristics indicative of substantial state-wide and interstate travel;

      (b) The "minor arterial system" shall, in conjunction with the principal arterial system, form a rural network of arterial routes linking cities and other activity centers which generate long distance travel, and, with appropriate extensions into and through urban areas, form an integrated network providing interstate and interregional service; and

      (c) The "collector system" shall consist of routes which primarily serve the more important intercounty, intracounty, and intraurban travel corridors, collect traffic from the system of local access roads and convey it to the arterial system, and on which, regardless of traffic volume, the predominant travel distances are shorter than on arterial routes.

      (2) ((Those state highways which perform no arterial or collector function, which serve only local access functions, and which lack essential state highway characteristics shall be designated "local access" highways.

      (3))) In making the functional classification the transportation commission shall adopt and give consideration to criteria consistent with this section and federal regulations relating to the functional classification of highways, including but not limited to the following:

      (a) Urban population centers within and without the state stratified and ranked according to size;

      (b) Important traffic generating economic activities, including but not limited to recreation, agriculture, government, business, and industry;

      (c) Feasibility of the route, including availability of alternate routes within and without the state;

      (d) Directness of travel and distance between points of economic importance;

      (e) Length of trips;

      (f) Character and volume of traffic;

      (g) Preferential consideration for multiple service which shall include public transportation;

      (h) Reasonable spacing depending upon population density; and

      (i) System continuity.

      (3) The transportation commission shall designate a system of state highways that have state-wide significance. This state-wide system shall include interstate highways and other state-wide principal arterials that are needed to connect major communities across the state and support the state's economy.

      (4) The transportation commission shall designate a freight and goods transportation system. This state-wide system shall include state highways, county roads, and city streets. The commission, in cooperation with cities and counties, shall review and make recommendations to the legislature regarding policies governing weight restrictions and road closures which affect the transportation of freight and goods. The first report is due by December 15, 1993, and biennially thereafter.

      Sec. 3. RCW 47.05.030 and 1987 c 179 s 2 are each amended to read as follows:

      The transportation commission shall adopt ((and periodically revise, after consultation with the legislative transportation committee,)) a comprehensive six-year ((program and financial plan for highway improvements specifying program objectives for each of the highway categories, "A," "B," "C," and "H," defined in this section, and within the framework of estimated funds for such period. The program and plan shall be based upon the improvement needs for state highways as determined by the department from time to time.

      With such reasonable deviations as may be required to effectively utilize the estimated funds and to adjust to unanticipated delays in programmed projects, the commission shall allocate the estimated funds among the following described categories of highway improvements, so as to carry out the commission's program objectives:

      (1) Category A shall consist of those improvements necessary to sustain the structural, safety, and operational integrity of the existing state highway system (other than improvements to the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations, and improvements designated in subsections (2) through (4) of this section).

      (2) Category B shall consist of improvements for the continued development of the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations.

      (3) Category C shall consist of the development of major transportation improvements (other than improvements to the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations) including designated but unconstructed highways which are vital to the state-wide transportation network.

      (4) Category H shall consist of those improvements necessary to sustain the structural and operational integrity of existing bridges on the highway system (other than bridges on the interstate system or bridge work included in another category because of its association with a highway project in such category).

      Projects which are financed one hundred percent by federal funds or other agency funds shall, if the commission determines that such work will improve the state highway system, be managed separately from the above categories)) investment program specifying program objectives and performance measures for the preservation and improvement programs defined in this section. In the specification of investment program objectives and performance measures, the transportation commission, in consultation with the Washington state department of transportation, shall define and adopt standards for effective programming and prioritization practices including a needs analysis process. The needs analysis process shall ensure the identification of problems and deficiencies, the evaluation of alternative solutions and trade-offs, and estimations of the costs and benefits of prospective projects. The investment program shall be revised biennially, effective on July 1st of odd-numbered years. The investment program shall be based upon the needs identified in the state-owned highway component of the state-wide multimodal transportation plan as defined in RCW 47.01.071(3).

      (1) The preservation program shall consist of those investments necessary to preserve the existing state highway system and to restore existing safety features, giving consideration to lowest life cycle costing. The comprehensive six-year investment program for preservation shall identify projects for two years and an investment plan for the remaining four years.

      (2) The improvement program shall consist of investments needed to address identified deficiencies on the state highway system to improve mobility, safety, support for the economy, and protection of the environment. The six-year investment program for improvements shall identify projects for two years and major deficiencies proposed to be addressed in the six-year period giving consideration to relative benefits and life cycle costing.

      The transportation commission shall approve and present the comprehensive six-year investment program to the legislature in support of the biennial budget request under RCW 44.40.070 and 44.40.080.

      Sec. 4. RCW 47.05.035 and 1987 c 179 s 3 are each amended to read as follows:

      (((1) The transportation commission, in preparing the comprehensive six-year program and financial plan for highway improvements, shall allocate the estimated funds among categories A, B, C, and H)) In developing program objectives and performance measures, the transportation commission shall evaluate investment trade-offs between the preservation and improvement programs. In making these investment trade-offs, the commission shall evaluate, using cost-benefit techniques, roadway and bridge maintenance activities as compared to roadway and bridge preservation program activities and adjust those programs accordingly.

      The commission shall allocate the estimated revenue between preservation and improvement programs giving primary consideration to the following factors:

      (((a))) (1) The relative needs in each of the ((categories of improvements)) programs and the system performance levels that can be achieved by meeting these needs;

      (((b))) (2) The need to provide adequate funding for ((category A improvements)) preservation to protect the state's investment in its existing highway system;

      (((c))) (3) The continuity of future ((highway)) transportation development ((of all categories of improvements)) with those improvements previously programmed; and

      (((d))) (4) The availability of ((special categories of federal)) dedicated funds for a specific type of work.

      (((2) The commission in preparing the comprehensive six-year program and financial plan shall establish program objectives for each of the highway categories, A, B, C, and H.))

      Sec. 5. RCW 47.05.051 and 1987 c 179 s 5 are each amended to read as follows:

      (((1))) The comprehensive six-year investment program ((and financial plan for each category of highway improvements)) shall be based upon ((a)) the needs identified in the state-owned highway component of the state-wide multimodal transportation plan as defined in RCW 47.01.071(3) and priority selection ((system within the program objectives established for each category. The commission using the criteria set forth in RCW 47.05.030, as now or hereafter amended, shall determine the category of each highway improvement.

      (2) Selection of specific category A and H projects for the six-year)) systems that incorporate the following criteria:

      (1) Priority programming for the preservation program shall take into account the ((criteria set forth in subsection (4) of this section.

      (3) Selection of specific category B projects for the six-year program shall be based on commission established priorities for completion and preservation of the interstate system.

      (4) In selecting each category A and H project as provided in subsection (2) of this section, the following criteria ()) following, not necessarily in order of importance(() shall be taken into consideration:

      (a) Its)):

      (a) Extending the service life of the existing highway system;

      (b) Ensuring the structural ability to carry loads imposed upon ((it)) highways and bridges;

      (((b) Its capacity to move traffic at reasonable speeds without undue congestion;

      (c) Its adequacy of alignment and related geometrics;

      (d) Its accident experience; and

      (e) Its fatal accident experience.

      (5))) and

      (c) Minimizing life cycle costs. The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to select ((category A, B, and H improvements)) preservation projects to be included in the six-year program.

      (((6) Selection of specific category C projects for the six-year program shall be based on the priority of each highway section proposed to be improved in relation to other highway sections within the state with full regard to the structural, geometric, safety, and operational adequacy of the existing highway section taking into account the following:

      (a))) (2) Priority programming for the improvement program shall take into account the following:

      (a) Support for the state's economy, including job creation and job preservation;

      (b) The cost-effective movement of people and goods;

      (c) Accident and accident risk reduction;

      (d) Protection of the state's natural environment;

      (e) Continuity ((of)) and systematic development of the highway transportation network;

      (((b) Coordination with the development of other modes of transportation;

      (c) The stated long range goals of the local area and its transportation plan;

      (d) Its potential social, economic, and environmental impacts)) (f) Consistency with local comprehensive plans developed under chapter 36.70A RCW;

      (g) Consistency with regional transportation plans developed under chapter 47.80 RCW;

      (((e))) (h) Public views concerning proposed improvements;

      (((f))) (i) The conservation of energy resources ((and the capacity of the transportation corridor to move people and goods safely and at reasonable speeds)); ((and

      (g))) (j) Feasibility of financing the full proposed improvement;

      (k) Commitments established in previous legislative sessions;

      (l) Relative costs and benefits of candidate programs;

      (m) Major projects addressing capacity deficiencies which prioritize allowing for preliminary engineering shall be reprioritized during the succeeding biennium, based upon updated project data. Reprioritized projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding; and

      (n) Major project approvals which significantly increase a project's scope or cost from original prioritization estimates shall include a review of the project's estimated revised priority rank and the level of funding provided. Projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.

      (((7))) (3) The commission ((in selecting any project for improvement in categories A, B, C, or H)) may depart from the priority ((of projects so)) programming established under subsections (1) and (2) of this section: (a) To the extent that otherwise funds cannot be utilized feasibly within the program((,)); (b) as may be required by a court judgment, legally binding agreement, or state and federal laws and regulations((,)); (c) as may be required to coordinate with federal, local, or other state agency construction projects((,)); (d) to take advantage of some substantial financial benefit that may be available((,)); (e) for continuity of route development((,)); or (f) because of changed financial or physical conditions of an unforeseen or emergent nature. The commission or secretary of transportation shall maintain in its files information sufficient to show the extent to which the commission has departed from the established priority ((of projects.

      (8) The comprehensive six-year program and financial plan for highway improvements shall be revised biennially pursuant to RCW 47.05.040 as now or hereafter amended. The adopted program and plan shall be extended for an additional two years, to six years in the future, effective on July 1st of each odd-numbered year)).

      NEW SECTION. Sec. 6. A new section is added to chapter 47.05 RCW to read as follows:

      The provisions of chapter ..., Laws of 1993 (this act) modifying procedures for priority programming for highway development as set forth in chapter 47.05 RCW, first apply to the comprehensive six-year state highway investment program for the periods 1995 to 2001. For the transition biennium ending June 30, 1995, the commission may deviate from the modified procedures prescribed by chapter ..., Laws of 1993 (this act).

      NEW SECTION. Sec. 7. The following acts or parts of acts are each repealed:

      (1) RCW 47.05.040 and 1987 c 179 s 4, 1979 ex.s. c 122 s 4, 1977 ex.s. c 235 s 15, 1975 1st ex.s. c 143 s 3, 1973 2nd ex.s. c 12 s 5, 1969 ex.s. c 39 s 4, & 1963 c 173 s 4;

      (2) RCW 47.05.055 and 1979 ex.s. c 122 s 6 & 1975 1st ex.s. c 143 s 6;

      (3) RCW 47.05.070 and 1991 c 358 s 5, 1983 1st ex.s. c 53 s 31, 1979 ex.s. c 122 s 7, 1977 ex.s. c 151 s 45, 1973 2nd ex.s. c 12 s 7, & 1963 c 173 s 7; and

      (4) RCW 47.05.085 and 1985 c 400 s 4.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Vognild, the Senate concurred in the House amendment to Substitute Senate Bill No. 5963.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5963, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5963, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, 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., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Absent: Senator Deccio - 1.

     Excused: Senator Rinehart - 1.

     SUBSTITUTE SENATE BILL NO. 5963, 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.


     There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5736 and the pending House striking amendment, deferred earlier today.


RULING BY THE PRESIDENT


     President Pritchard: "In ruling upon the point of order raised by Senator Wojahn, the President finds that Substitute Senate Bill No. 5736 is a measure which adds chiropractic care to the list of care that must be provided to injured workers under the state industrial insurance laws and provides direction to the Department of Labor and Industries in authorizing such treatment.

     "The amendment by the House of Representatives would add chiropractic care to the list of care provided under the state industrial insurance laws and places requirements and directions for the Department of Labor and Industries in its authorization of chiropractic treatment.

     "The President, therefore, finds that the proposed amendment does not change the scope and object of the bill and the point of order is not well taken."


     The House striking amendment to Substitute Senate Bill No. 5736 was ruled in order.


MOTION


     Senator Moore moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5736.

     Debate ensued.

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


MOTION


     On motion of Senator Jesernig, further consideration of Substitute Senate Bill No. 5736 was deferred.


MESSAGE FROM THE HOUSE


April 15, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SENATE BILL NO. 5879 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 46.61.687 and 1987 c 330 s 745 are each amended to read as follows:



     (1) ((After December 31, 1983, the parent or legal guardian of a child less than five years old, when the parent or legal guardian is operating anywhere in the state his or her own motor vehicle registered under chapter 46.16 RCW, in which the child is a passenger, shall have the child properly secured in a manner approved by the state patrol. Even though a separate child passenger restraint device is considered the ideal method of protection, a properly adjusted and fastened, federally approved seat belt is deemed sufficient to meet the requirements of this section for children one through four years of age)) Whenever a child who is less than six years of age is being transported in a motor vehicle that is in operation and that is required by RCW 46.37.510 to be equipped with a safety belt system in a passenger seating position, with the exception of (a) for hire vehicles as defined in RCW 46.72.010(1); (b) motor vehicles designed to transport sixteen or more passengers, including the driver; and (c) auto transportation companies, the driver of the vehicle shall keep the child properly restrained as follows:

     (i) If the child weighs less than forty pounds or is less than four years of age, the child shall be properly restrained in a child restraint system that complies with standards of the United States department of transportation and that is secured in the vehicle in accordance with instructions of the manufacturer of the child restraint system;

     (ii) If the child is less than six but weighs at least forty pounds or is at least four years of age, the child shall be restrained either as specified in (i) of this subsection or with a safety belt properly adjusted and fastened around the child's body.

     (2) ((During the period from January 1, 1984, to July 1, 1984, a person violating subsection (1) of this section may be issued a written warning of the violation. After July 1, 1984,)) A person violating subsection (1) of this section may be issued a notice of traffic infraction under chapter 46.63 RCW. If the person to whom the notice was issued presents proof of acquisition of an approved child passenger restraint system within seven days to the jurisdiction issuing the notice, the jurisdiction shall dismiss the notice of traffic infraction. If the person fails to present proof of acquisition within the time required, he or she is subject to a penalty assessment of not less than thirty dollars.

     (3) Failure to comply with the requirements of this section shall not constitute negligence by a parent or legal guardian; nor shall failure to use a child restraint system be admissible as evidence of negligence in any civil action.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     Senator Adam Smith moved that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5879.

     Debate ensued.

     The President declared the question before the Senate to be the motion by Senator Adam Smith that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5879.

     The motion by Senator Adam Smith failed on a rising vote and the Senate did not concur in the House amendment to Engrossed Senate Bill No. 5879.


MOTION


     On motion of Senator Adam Smith, the Senate refuses to concur in the House amendment to Engrossed Senate Bill No. 5879 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1021 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Haugen, the Senate insists on its position regarding the Senate amendment(s) to Substitute House Bill No. 1021 and once again asks the House to concur therein.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1275 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Owen, the Senate insists on its position regarding the Senate amendment(s) to Substitute House Bill No. 1275 and once again asks the House to concur therein.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to HOUSE BILL NO. 1490 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Talmadge, the Senate receded from its amendment(s) to House Bill No. 1490.

     The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1490, without the Senate amendment(s).


ROLL CALL


     The Secretary called the roll on the final passage of House Bill No. 1490, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; 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, McDonald, Moore, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

     Voting nay: Senator Newhouse - 1.

     Absent: Senator McCaslin - 1.

     Excused: Senator Rinehart - 1.

     HOUSE BILL NO. 1490, without the Senate amendment(s), 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 McCaslin was excused.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1741 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Adam Smith, the Senate receded from its amendment(s) to Substitute House Bill No. 1741.

     The President declared the question before the Senate to be the roll call on2 the final passage of Substitute House Bill No. 1741, without the Senate amendment(s).


ROLL CALL


     The Secretary called the roll on the final passage of Substitute House Bill No. 1741, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Amondson, 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., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

     Excused: Senators McCaslin and Rinehart - 2.

     SUBSTITUTE HOUSE BILL NO. 1741, without the Senate amendment(s), 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 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1122 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Fraser, the Senate refuses to recede from its amendment(s) to Substitute House Bill No. 1122 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


     The President appointed as members of the Conference Committee on Substitute House Bill No. 1122 and the Senate amendment(s) thereto: Senators Fraser, Barr and Loveland.


MOTION


     On motion of Senator Vognild, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1374 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Pelz, the Senate insists on its position regarding the Senate amendment(s) to Engrossed Substitute House Bill No. 1374 and once again asks the House to concur therein.


MESSAGE FROM THE HOUSE


April 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to HOUSE BILL NO. 1384 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Pelz, the Senate receded from its amendment(s) to House Bill No. 1384.

     The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1384, without the Senate amendment(s).


ROLL CALL


     The Secretary called the roll on the final passage of House Bill No. 1384, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

     Absent: Senator Moore - 1.

     Excused: Senators McCaslin and Rinehart - 2.

     HOUSE BILL NO. 1384, without the Senate amendment(s), 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 19, 1993


MR. PRESIDENT:

     The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2067 and asks the Senate to recede therefrom, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Vognild, the Senate insists on its position regarding the Senate amendment(s) to Engrossed Substitute House Bill No. 2067 and once again asks the House to concur therein.


MOTION


     At 3:08 p.m., on motion of Senator Jesernig, the Senate recessed until 4:00 p.m.


     The Senate was called to order at 5:17 p.m. by President Pritchard.


MOTION


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


REPORTS OF STANDING COMMITTEES

GUBERNATORIAL APPOINTMENTS


April 20, 1993

GA 9118         VERNON E. STONER, appointed January 13, 1993, for a term ending at the Governor's pleasure, as Commissioner of the Employment Security Department.

                        Reported by Committee on Labor and Commerce Services


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9140         PHIL BOGUCH, reappointed January 29, 1993, for a term ending August 2, 1997, as a member of the Lottery Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9142         BRUCE F. BRENNAN, reappointed January 29, 1993, for a term ending February 21, 1995, as a member of the Apprenticeship Council.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9180         JAMES S. HATTORI, appointed January 29, 1993, for a term ending August 2, 1993, as Chair of the Lottery Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9265         MARK BROWN, appointed February 15, 1993, for a term ending at the Governor's pleasure, as Director of the Department of Labor and Industries.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9295         THE REVEREND LEO BROWN, reappointed February 23, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9296         DONNA E. DILGER, reappointed March 11, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9298         HARLAN DOUGLAS, reappointed February 23, 1993, for a term ending June 30, 1993, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9299         ARDITH DIVINE, appointed March 10, 1993, for a term ending June 30, 1997, as a member of the Gambling Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9300         RON FOREST, appointed February 24, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9301         KEVIN M. HUGHES, appointed February 23, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.

April 20, 1993

GA 9303         LARRY KOWBEL, reappointed February 23, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, McAuliffe, Newhouse, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9308         WANDA MOSBARGER, appointed March 10, 1993, for a term ending June 30, 1994, as a member of the Gambling Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9309         JOSEPHINE V. TAMAYO MURRAY, appointed February 23, 1993, for a term ending June 30, 1995, as a member of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Newhouse, Prince, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


April 20, 1993

GA 9343         D. E. CHILLBERG, appointed January 27, 1993, for a term ending June 30, 1995, as Chair of the Housing Finance Commission.

                        Reported by Committee on Labor and Commerce


     MAJORITY recommendation: That said appointment be confirmed. Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Cantu, McAuliffe, Newhouse, Sutherland, Vognild, and Wojahn.


     Passed to Committee on Rules.


MOTION


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


MOTION


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


MESSAGE FROM THE HOUSE


April 14, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5360 with the following amendment(s):

     On page 1, beginning on line 16, after "required" strike all material through "proficiency" on line 17

      On page 2, line 37, after "list by" strike "court staff" and insert "the court clerk"

      On page 3, line 1, after "(2)" strike "Court staff shall be required to obtain" and insert "All court clerks shall obtain"

      On page 3, beginning on line 14, after "brochures to" strike "the staff of all courts" and insert "all court clerks"

      On page 3, after line 16, insert the following:

      "(4) For purposes of this section, "court clerks" means court administrators in courts of limited jurisdiction and elected court clerks."

      On page 2, beginning on line 33, after "order," strike all material through "order." on line 35, and insert "and the following statement: "You can be arrested even if the person or persons who obtained the order invite or allow you to violate the order's prohibitions. The respondent has the sole responsibility to avoid or refrain from violating the order's provisions. Only the court can change the order upon written application.""

      On page 3, after line 16, insert the following:

      "(4) The administrator for the courts shall arrange for translation of the instructions and informational brochures required by this section, which shall contain a sample of the standard petition and order for protection forms, into Spanish, Vietnamese, Laotian, Cambodian, and Chinese, and shall distribute a master copy of the translated instructions and informational brochures to all court clerks by January 1, 1995."

      On page 5, after line 37 insert:

      "NEW SECTION. Sec. 4. If specific funding for section 2 subsection (4) of this act, referencing this act by bill, section and subsection number, is not provided by June 30, 1993, in the omnibus appropriations act, section 2 subsection (4) is null and void."

      Renumber the remaining section consecutively and correct internal references accordingly.

      On page 5, after line 37, insert the following:

      "Sec. 4. RCW 7.69.020 and 1985 c 443 s 2 are each amended to read as follows:

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

      (1) "Crime" means an act punishable as a felony, gross misdemeanor, or misdemeanor under the laws of this state or equivalent federal or local law.

      (2) "Survivor" or "survivors" of a victim of crime means a spouse, child, parent, legal guardian, sibling, or grandparent. If there is more than one survivor of a victim of crime, one survivor shall be designated by the prosecutor to represent all survivors for purposes of providing the notice to survivors required by this chapter.

      (3) "Victim" means a person against whom a crime has been committed or the representative of a person against whom a crime has been committed.

      (4) "Victim impact statement" means a statement submitted to the court by the victim or a survivor, individually or with the assistance of the prosecuting attorney if assistance is requested by the victim or survivor, which may include but is not limited to information assessing the financial, medical, social, and psychological impact of the offense upon the victim or survivors.

      (5) "Witness" means a person who has been or is expected to be summoned to testify for the prosecution in a criminal action, or who by reason of having relevant information is subject to call or likely to be called as a witness for the prosecution, whether or not an action or proceeding has been commenced.

      (6) "Crime victim/witness program" means any crime victim and witness program of a county or local law enforcement agency or prosecutor's office, any rape crisis center's sexual assault victim advocacy program as provided in chapter 70.125 RCW, any domestic violence program's legal and community advocate program for domestic violence victims as provided in chapter 70.123 RCW, or any other crime victim advocacy program which provides trained advocates to assist crime victims during the investigation and prosecution of the crime.

      Sec. 5. RCW 7.69.030 and 1985 c 443 s 3 are each amended to read as follows:

      There shall be a reasonable effort made to ensure that victims, survivors of victims, and witnesses of crimes have the following rights:

      (1) With respect to victims of violent or sex crimes, to receive, at the time of reporting the crime to law enforcement officials, a written statement of the rights of crime victims as provided in this chapter. The written statement shall include the name, address, and telephone number of a county or local crime victim/witness program, if such a crime victim/witness program exists in the county;

      (2) To be informed by local law enforcement agencies or the prosecuting attorney of the final disposition of the case in which the victim, survivor, or witness is involved;

      (((2))) (3) To be notified by the party who issued the subpoena that a court proceeding to which they have been subpoenaed will not occur as scheduled, in order to save the person an unnecessary trip to court;

      (((3))) (4) To receive protection from harm and threats of harm arising out of cooperation with law enforcement and prosecution efforts, and to be provided with information as to the level of protection available;

      (((4))) (5) To be informed of the procedure to be followed to apply for and receive any witness fees to which they are entitled;

      (((5))) (6) To be provided, whenever practical, a secure waiting area during court proceedings that does not require them to be in close proximity to defendants and families or friends of defendants;

      (((6))) (7) To have any stolen or other personal property expeditiously returned by law enforcement agencies or the superior court when no longer needed as evidence. When feasible, all such property, except weapons, currency, contraband, property subject to evidentiary analysis, and property of which ownership is disputed, shall be photographed and returned to the owner within ten days of being taken;

      (((7))) (8) To be provided with appropriate employer intercession services to ensure that employers of victims, survivors of victims, and witnesses of crime will cooperate with the criminal justice process in order to minimize an employee's loss of pay and other benefits resulting from court appearance;

      (((8))) (9) To access to immediate medical assistance and not to be detained for an unreasonable length of time by a law enforcement agency before having such assistance administered. However, an employee of the law enforcement agency may, if necessary, accompany the person to a medical facility to question the person about the criminal incident if the questioning does not hinder the administration of medical assistance;

      (((9))) (10) With respect to victims of violent and sex crimes, to have a crime victim advocate from a crime victim/witness program present at any prosecutorial or defense interviews with the victim. This subsection applies if practical and if the presence of the crime victim advocate does not cause any unnecessary delay in the investigation or prosecution of the case. The role of the crime victim advocate is to provide emotional support to the crime victim;

      (11) With respect to victims and survivors of victims, to be physically present in court during trial, or if subpoenaed to testify, to be scheduled as early as practical in the proceedings in order to be physically present during trial after testifying and not to be excluded solely because they have testified;

      (((10))) (12) With respect to victims and survivors of victims, to be informed by the prosecuting attorney of the date, time, and place of the trial and of the sentencing hearing for felony convictions upon request by a victim or survivor;

      (((11))) (13) To submit a victim impact statement or report to the court, with the assistance of the prosecuting attorney if requested, which shall be included in all presentence reports and permanently included in the files and records accompanying the offender committed to the custody of a state agency or institution;

      (((12))) (14) With respect to victims and survivors of victims, to present a statement personally or by representation, at the sentencing hearing for felony convictions; and

      (((13))) (15) With respect to victims and survivors of victims, to entry of an order of restitution by the court in all felony cases, even when the offender is sentenced to confinement, unless extraordinary circumstances exist which make restitution inappropriate in the court's judgment.

      Sec. 6. RCW 7.69A.020 and 1992 c 188 s 2 are each amended to read as follows:

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

      (1) "Crime" means an act punishable as a felony, gross misdemeanor, or misdemeanor under the laws of this state or equivalent federal or local law.

      (2) "Child" means any living child under the age of eighteen years.

      (3) "Victim" means a living person against whom a crime has been committed.

      (4) "Witness" means a person who has been or is expected to be summoned to testify for the prosecution in a criminal action, or who by reason of having relevant information is subject to call or likely to be called as a witness for the prosecution, whether or not an action or proceeding has been commenced.

      (5) "Family member" means child, parent, or legal guardian.

      (6) "Advocate" means any person, including a family member not accused of a crime, who provides support to a child victim or child witness during any legal proceeding.

      (7) "Court proceedings" means any court proceeding conducted during the course of the prosecution of a crime committed against a child victim, including pretrial hearings, trial, sentencing, or appellate proceedings.

      (8) "Identifying information" means the child's name, address, location, and photograph, and in cases in which the child is a relative or stepchild of the alleged perpetrator, identification of the relationship between the child and the alleged perpetrator.

      (9) "Crime victim/witness program" means any crime victim and witness program of a county or local law enforcement agency or prosecutor's office, any rape crisis center's sexual assault victim advocacy program as provided in chapter 70.125 RCW, any domestic violence program's legal and community advocate program for domestic violence victims as provided in chapter 70.123 RCW, or any other crime victim advocacy program which provides trained advocates to assist crime victims during the investigation and prosecution of the crime.

      Sec. 7. RCW 7.69A.030 and 1985 c 394 s 3 are each amended to read as follows:

      In addition to the rights of victims and witnesses provided for in RCW 7.69.030, there shall be every reasonable effort made by law enforcement agencies, prosecutors, and judges to assure that child victims and witnesses are afforded the rights enumerated in this section. The enumeration of rights shall not be construed to create substantive rights and duties, and the application of an enumerated right in an individual case is subject to the discretion of the law enforcement agency, prosecutor, or judge. Child victims and witnesses have the following rights:

      (1) To have explained in language easily understood by the child, all legal proceedings and/or police investigations in which the child may be involved.

      (2) With respect to child victims of sex or violent crimes or child abuse, to have a crime victim advocate from a crime victim/witness program present at any prosecutorial or defense interviews with the child victim. This subsection applies if practical and if the presence of the crime victim advocate does not cause any unnecessary delay in the investigation or prosecution of the case. The role of the crime victim advocate is to provide emotional support to the child victim and to promote the child's feelings of security and safety.

      (3) To be provided, whenever possible, a secure waiting area during court proceedings and to have an advocate or support person remain with the child prior to and during any court proceedings.

      (((3))) (4) To not have the names, addresses, nor photographs of the living child victim or witness disclosed by any law enforcement agency, prosecutor's office, or state agency without the permission of the child victim, child witness, parents, or legal guardians to anyone except another law enforcement agency, prosecutor, defense counsel, or private or governmental agency that provides services to the child victim or witness.

      (((4))) (5) To allow an advocate to make recommendations to the prosecuting attorney about the ability of the child to cooperate with prosecution and the potential effect of the proceedings on the child.

      (((5))) (6) To allow an advocate to provide information to the court concerning the child's ability to understand the nature of the proceedings.

      (((6))) (7) To be provided information or appropriate referrals to social service agencies to assist the child and/or the child's family with the emotional impact of the crime, the subsequent investigation, and judicial proceedings in which the child is involved.

      (((7))) (8) To allow an advocate to be present in court while the child testifies in order to provide emotional support to the child.

      (((8))) (9) To provide information to the court as to the need for the presence of other supportive persons at the court proceedings while the child testifies in order to promote the child's feelings of security and safety.

      (((9))) (10) To allow law enforcement agencies the opportunity to enlist the assistance of other professional personnel such as child protection services, victim advocates or prosecutorial staff trained in the interviewing of the child victim.

      (11) With respect to child victims of violent or sex crimes or child abuse, to receive either directly or through the child's parent or guardian if appropriate, at the time of reporting the crime to law enforcement officials, a written statement of the rights of child victims as provided in this chapter. The written statement shall include the name, address, and telephone number of a county or local crime victim/witness program, if such a crime victim/witness program exists in the county."

      Renumber the remaining sections consecutively and correct any internal references accordingly., and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Adam Smith, the Senate concurred in the House amendments to Substitute Senate Bill No. 5360.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5360, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5360, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 3; Excused, 2.

     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, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 44.

     Absent: Senators Nelson, Pelz and Wojahn - 3.

     Excused: Senators Niemi and Sheldon - 2.

     SUBSTITUTE SENATE BILL NO. 5360, 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 18, 1993


MR. PRESIDENT:

     The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5502 with the following amendment(s):

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

      "NEW SECTION. Sec. 1. The legislature recognizes that the extraction of minerals through surface mining has historically included regulatory involvement by both state and local governments.

      It is the intent of the legislature to clarify that surface mining is an appropriate land use, subject to reclamation authority exercised by the department of natural resources and land use and operation regulatory authority by counties, cities, and towns.

      Sec. 2. RCW 78.44.010 and 1970 ex.s. c 64 s 2 are each amended to read as follows:

      The legislature recognizes that the extraction of minerals by surface mining is ((a basic and)) an essential activity making an important contribution to the economic well-being of the state and nation. ((At the same time, proper reclamation of surface)) It is not possible to extract minerals without producing some environmental impacts. At the same time, comprehensive regulation of mining and thorough reclamation of mined lands is necessary to prevent ((undesirable land and water)) or mitigate conditions that would be detrimental to the environment and to protect the general welfare, health, safety, and property rights of the citizens of the state. Surface mining takes place in diverse areas where the geologic, topographic, climatic, biologic, and social conditions are significantly different, and reclamation specifications must vary accordingly. ((It is not practical to extract minerals required by our society without disturbing the surface of the earth and producing waste materials, and the very character of many types of surface mining operations precludes complete restoration of the land to its original condition. However, the legislature finds that reclamation of surface mined lands as provided in this chapter will allow the mining of valuable minerals and will provide for the protection and subsequent beneficial use of the mined and reclaimed land.)) Therefore, the legislature finds that a balance between appropriate environmental regulation and the production and conservation of minerals is in the best interests of the citizens of the state.

      Sec. 3. RCW 78.44.020 and 1970 ex.s. c 64 s 3 are each amended to read as follows:

      The purposes of this chapter ((is)) are to:

      (1) Provide that the usefulness, productivity, and scenic values of all lands and waters involved in surface mining within the state will receive the greatest practical degree of protection and ((restoration. It is a further purpose of this chapter to provide a means of cooperation between private and governmental entities in carrying this chapter into effect)) reclamation at the earliest opportunity following completion of surface mining;

      (2) Provide for the greatest practical degree of state-wide consistency in the regulation of surface mines;

      (3) Apportion regulatory authority between state and local governments in order to minimize redundant regulation of mining;

      (4) Ensure that reclamation is consistent with local land use plans; and

      (5) Ensure the power of local government to regulate land use and operations pursuant to section 16 of this act.

      NEW SECTION. Sec. 4. DEFINITIONS. Unless the context clearly indicates otherwise, the definitions in this section apply throughout this chapter.

      (1) "Approved subsequent use" means the post surface-mining land use contained in an approved reclamation plan and approved by the local land use authority.

      (2) "Completion of surface mining" means the cessation of mining and directly related activities in any segment of a surface mine that occurs when essentially all minerals that can be taken under the terms of the reclamation permit have been depleted except minerals required to accomplish reclamation according to the approved reclamation plan.

      (3) "Department" means the department of natural resources.

      (4) "Determination" means any action by the department including permit issuance, reporting, reclamation plan approval or modification, permit transfers, orders, fines, or refusal to issue permits.

      (5) "Disturbed area" means any place where activities clearly in preparation for, or during, surface mining have physically disrupted, covered, compacted, moved, or otherwise altered the characteristics of soil, bedrock, vegetation, or topography that existed prior to such activity. Disturbed areas may include but are not limited to: Working faces, water bodies created by mine-related excavation, pit floors, the land beneath processing plant and stock pile sites, spoil pile sites, and equipment staging areas.

      Disturbed areas do not include:

      (a) Surface mine access roads unless these have characteristics of topography, drainage, slope stability, or ownership that, in the opinion of the department, make reclamation necessary; and

      (b) Lands that have been reclaimed to all standards outlined in this chapter, rules of the department, any applicable SEPA document, and the approved reclamation plan.

      (6) "Miner" means any person or persons, any partnership, limited partnership, or corporation, or any association of persons, including every public or governmental agency engaged in mining from the surface.

      (7) "Minerals" means clay, coal, gravel, industrial minerals, metallic substances, peat, sand, stone, topsoil, and any other similar solid material or substance to be excavated from natural deposits on or in the earth for commercial, industrial, or construction use.

      (8) "Operations" means all mine-related activities, exclusive of reclamation, that include, but are not limited to activities that affect noise generation, air quality, surface and ground water quality, quantity, and flow, glare, pollution, traffic safety, ground vibrations, and/or significant or substantial impacts commonly regulated under provisions of land use or other permits of local government and local ordinances, or other state laws.

      Operations specifically include:

      (a) The mining or extraction of rock, stone, gravel, sand, earth, and other minerals;

      (b) Blasting, equipment maintenance, sorting, crushing, and loading;

      (c) On-site mineral processing including asphalt or concrete batching, concrete recycling, and other aggregate recycling;

      (d) Transporting minerals to and from the mine, on site road maintenance, road maintenance for roads used extensively for surface mining activities, traffic safety, and traffic control.

      (9) "Overburden" means the earth, rock, soil, and topsoil that lie above mineral deposits.

      (10) "Permit holder" means any person or persons, any partnership, limited partnership, or corporation, or any association of persons, either natural or artificial, including every public or governmental agency engaged in surface mining and/or the operation of surface mines, whether individually, jointly, or through subsidiaries, agents, employees, operators, or contractors who holds a state reclamation permit.

      (11) "Reclamation" means rehabilitation for the appropriate future use of disturbed areas resulting from surface mining including areas under associated mineral processing equipment and areas under stockpiled materials. Although both the need for and the practicability of reclamation will control the type and degree of reclamation in any specific surface mine, the basic objective shall be to reestablish on a perpetual basis the vegetative cover, soil stability, and water conditions appropriate to the approved subsequent use of the surface mine and to prevent or mitigate future environmental degradation.

      (12) "Reclamation setbacks" include those lands along the margins of surface mines wherein minerals and overburden shall be preserved in sufficient volumes to accomplish reclamation according to the approved plan and the minimum reclamation standards. Maintenance of reclamation setbacks may not preclude other mine-related activities within the reclamation setback.

      (13) "Recycling" means the reuse of minerals or rock products.

      (14) "Screening" consists of vegetation, berms or other topography, fencing, and/or other screens that may be required to mitigate impacts of surface mining on adjacent properties and/or the environment.

      (15) "Segment" means any portion of the surface mine that, in the opinion of the department:

      (a) Has characteristics of topography, drainage, slope stability, ownership, mining development, or mineral distribution, that make reclamation necessary;

      (b) Is not in use as part of surface mining and/or related activities; and

      (c) Is larger than seven acres and has more than five hundred linear feet of working face except as provided in a segmental reclamation agreement approved by the department.

      (16) "SEPA" means the state environmental policy act, chapter 43.21C RCW and rules adopted thereunder.

      (17)(a) "Surface mine" means any area or areas in close proximity to each other, as determined by the department, where extraction of minerals from the surface results in:

      (i) More than three acres of disturbed area;

      (ii) Mined slopes greater than thirty feet high and steeper than 1.0 foot horizontal to 1.0 foot vertical; or

      (iii) More than one acre of disturbed area within an eight acre area, when the disturbed area results from mineral prospecting or exploration activities.

      (b) Surface mines include areas where mineral extraction from the surface occurs by the auger method or by reworking mine refuse or tailings, when these activities exceed the size or height thresholds listed in (a) of this subsection.

      (c) Surface mining shall exclude excavations or grading used:

      (i) Primarily for on-site construction, on-site road maintenance, or on-site landfill construction;

      (ii) For the purpose of public safety or restoring the land following a natural disaster;

      (iii) For the purpose of removing stockpiles;

      (iv) For forest or farm road construction or maintenance on-site or on contiguous lands;

      (v) For sand authorized by RCW 43.51.685; and

      (vi) For underground mines.

      (18) "Topsoil" means the naturally occurring upper part of a soil profile, including the soil horizon that is rich in humus and capable of supporting vegetation together with other sediments within four vertical feet of the ground surface.

      NEW SECTION. Sec. 5. SEGMENTAL RECLAMATION. The permit holder shall reclaim each segment of the mine within two years of completion of surface mining on that segment except as provided in a segmental reclamation agreement approved in writing by the department. The primary objective of a segmental reclamation agreement should be to enhance final reclamation.

      Sec. 6. RCW 78.44.040 and 1984 c 215 s 2 are each amended to read as follows:

      The department of natural resources is charged with the administration of reclamation under this chapter. In order to implement ((the chapter's terms and provisions)) and enforce this chapter, the department, under the ((provisions of the)) administrative procedure act (chapter 34.05 RCW), ((as now or hereafter amended,)) may from time to time ((promulgate)) adopt those rules ((and regulations)) necessary to carry out the purposes of this chapter.

      Sec. 7. RCW 78.44.050 and 1970 ex.s. c 64 s 6 are each amended to read as follows:

      The department shall have the exclusive authority to regulate surface mine reclamation except that, by contractual agreement, the department may delegate some or all of its enforcement authority to a county, city, or town. All counties, cities, or towns shall have the authority to zone surface mines and adopt ordinances regulating operations pursuant to section 16 of this act, except that county, city, or town operations ordinances may be preempted by the department during the emergencies outlined in section 27 of this act and related rules.

      This chapter shall not ((affect)) alter or preempt any ((of the)) provisions of the state fisheries laws (Title 75 RCW), the state water allocation and use laws (chapters 90.03 and 90.44 RCW), the state water pollution control laws (((Title 90)) chapter 90.48 RCW), the state ((game)) wildlife laws (Title 77 RCW), ((or any other state laws, and shall be cumulative and nonexclusive)) state noise laws or air quality laws (Title 70 RCW), shoreline management (chapter 90.58 RCW), the state environmental policy act (chapter 43.21C RCW), state growth management (chapter 36.70A RCW), state drinking water laws (chapters 43.20 and 70.119A RCW), or any other state statutes.

      Sec. 8. RCW 78.44.060 and 1970 ex.s. c 64 s 7 are each amended to read as follows:

      The department shall have the authority to conduct ((or)), authorize, and/or participate in investigations, research, experiments, and demonstrations, and to collect and disseminate information relating to surface mining and reclamation of surface mined lands.

      Sec. 9. RCW 78.44.070 and 1970 ex.s. c 64 s 8 are each amended to read as follows:

      The department may cooperate with other governmental and private agencies ((in this state and other states)) and agencies of the federal government, and may reasonably reimburse them for any services the department requests that they provide. The department may also receive any federal funds, state funds and any other funds and expend them for reclamation of land affected by surface mining and for purposes enumerated in RCW 78.44.060.

      NEW SECTION. Sec. 10. SURFACE MINING RECLAMATION ACCOUNT. The surface mining reclamation account is created in the state treasury. Annual mining fees, funds received by the department from state, local, or federal agencies for research purposes, as well as other mine-related funds and fines received by the department shall be deposited into this account. The surface mine reclamation account may be used by the department only to:

(1) Administer its regulatory program pursuant to this chapter;

      (2) Undertake research relating to surface mine regulation, reclamation of surface mine lands, and related issues; and

      (3) Cover costs arising from appeals from determinations made under this chapter.

      Fines, interest, and other penalties collected by the department under the provisions of this chapter shall be used to reclaim surface mines abandoned prior to 1971.

      NEW SECTION. Sec. 11. RECLAMATION PERMITS REQUIRED--APPLICATIONS. After July 1, 1993, no miner or permit holder may engage in surface mining without having first obtained a reclamation permit from the department. Operating permits issued by the department between January 1, 1971, and June 30, 1993, shall be considered reclamation permits provided such permits substantially meet the protections, mitigations, and reclamation goals of sections 12 and 20 of this act within five years after the effective date of this section. State agencies and local government shall be exempt from this time limit for inactive sites. Prior to the use of an inactive site, the reclamation plan must be brought up to current standards. A separate permit shall be required for each noncontiguous surface mine. The reclamation permit shall consist of the permit forms and any exhibits attached thereto. The permit holder shall comply with the provisions of the reclamation permit unless waived and explained in writing by the department.

      Prior to receiving a reclamation permit, an applicant must submit an application on forms provided by the department that shall contain the following information and shall be considered part of the reclamation permit:

      (1) Name and address of the legal landowner, or purchaser of the land under a real estate contract;

      (2) The name of the applicant and, if the applicants are corporations or other business entities, the names and addresses of their principal officers and resident agent for service of process;

      (3) A reasonably accurate description of the minerals to be surface mined;

      (4) Type of surface mining to be performed;

      (5) Estimated starting date, date of completion, and date of completed reclamation of surface mining;

      (6) Size and legal description of the permit area and maximum lateral and vertical extent of the disturbed area;

      (7) Expected area to be disturbed by surface mining during (a) the next twelve months, and (b) the following twenty-four months;

      (8) Any applicable SEPA documents; and

      (9) Other pertinent data as required by the department.

      The reclamation permit shall be granted for the period required to deplete essentially all minerals identified in the reclamation permit on the land covered by the reclamation plan. The reclamation permit shall be valid until the reclamation is complete unless the permit is canceled by the department.

      NEW SECTION. Sec. 12. RECLAMATION PLANS. An applicant shall provide a reclamation plan and copies acceptable to the department prior to obtaining a reclamation permit. The department shall have the sole authority to approve reclamation plans. Reclamation plans or modified reclamation plans submitted to the department after June 30, 1993, shall meet or exceed the minimum reclamation standards set forth in this chapter and by the department in rule. Each applicant shall also supply copies of the proposed plans and final reclamation plan approved by the department to the county, city, or town in which the mine will be located. The department shall solicit comment from local government prior to approving a reclamation plan. The reclamation plan shall include:

      (1) A written narrative describing the proposed mining and reclamation scheme with:

      (a) A statement of a proposed subsequent use of the land after reclamation that is consistent with the local land use designation. Approval of the reclamation plan shall not vest the proposed subsequent use of the land;

      (b) If the permit holder is not the sole landowner, a copy of the conveyance or a written statement that expressly grants or reserves the right to extract minerals by surface mining methods;

      (c) A simple and accurate legal description of the permit area and disturbed areas;

      (d) The maximum depth of mining;

      (e) A reasonably accurate description of the minerals to be mined;

      (f) A description of the method of mining;

      (g) A description of the sequence of mining that will provide, within limits of normal procedures of the industry, for completion of surface mining and associated disturbance on each portion of the permit area so that reclamation can be initiated at the earliest possible time on each segment of the mine;

      (h) A schedule for progressive reclamation of each segment of the mine;

      (i) Where mining on flood plains or in river or stream channels is contemplated, a thoroughly documented hydrogeologic evaluation that will outline measures that would protect against or would mitigate avulsion and erosion as determined by the department;

      (j) Where mining is contemplated within critical aquifer recharge areas, special protection areas as defined by chapter 90.48 RCW and implementing rules, public water supply watersheds, sole source aquifers, wellhead protection areas, and designated aquifer protection areas as set forth in chapter 36.36 RCW, a thoroughly documented hydrogeologic analysis of the reclamation plan may be required; and

      (k) Additional information as required by the department including but not limited to: The positions of reclamation setbacks and screening, conservation of topsoil, interim reclamation, revegetation, postmining erosion control, drainage control, slope stability, disposal of mine wastes, control of fill material, development of wetlands, ponds, lakes, and impoundments, and rehabilitation of topography.

      (2) Maps of the surface mine showing:

      (a) All applicable data required in the narrative portion of the reclamation plan;

      (b) Existing topographic contours;

      (c) Contours depicting specifications for surface gradient restoration appropriate to the proposed subsequent use of the land and meeting the minimum reclamation standards;

      (d) Locations and names of all roads, railroads, and utility lines on or adjacent to the area;

      (e) Locations and types of proposed access roads to be built in conjunction with the surface mining;

      (f) Detailed and accurate boundaries of the permit area, screening, reclamation setbacks, and maximum extent of the disturbed area; and

      (g) Estimated depth to ground water and the locations of surface water bodies and wetlands both prior to and after mining.

      (3) At least two cross sections of the mine including all applicable data required in the narrative and map portions of the reclamation plan.

      (4) Evidence that the proposed surface mine has been approved under local zoning and land use regulations.

      (5) Written approval of the reclamation plan by the landowner for mines permitted after June 30, 1993.

      (6) Other supporting data and documents regarding the surface mine as reasonably required by the department.

      If the department refuses to approve a reclamation plan in the form submitted by an applicant or permit holder, it shall notify the applicant or permit holder stating the reasons for its determination and describe such additional requirements to the applicant or permit holder's reclamation plan as are necessary for the approval of the plan by the department. If the department refuses to approve a complete reclamation plan within one hundred twenty days, the miner or permit holder may appeal this determination under the provisions of this chapter.

      Only insignificant deviations may occur from the approved reclamation plan without prior written approval by the department for the proposed change.

      The department retains the authority to require that the reclamation plan be updated to the satisfaction of the department at least every ten years.

      NEW SECTION. Sec. 13. JOINT RECLAMATION PLANS. Where two or more surface mines join along a common boundary, the department may require submission of a joint reclamation plan in order to provide for optimum reclamation or to avoid waste of mineral resources. Such joint reclamation plans may be in the form of a single collaborative plan submitted by all affected permit holders or as individual reclamation plans in which the schedule of reclamation, finished contours, and revegetation match reclamation plans of adjacent permit holders.

      NEW SECTION. Sec. 14. FEES. (1) An applicant for a public or private reclamation permit shall pay an application fee to the department before being granted a surface mining permit. The amount of the application fee shall be six hundred fifty dollars.

      (2) After June 30, 1993, each public or private permit holder shall pay an annual permit fee of six hundred fifty dollars. The annual permit fee shall be payable to the department on the first anniversary of the permit date and each year thereafter. Annual fees paid by a county for small mines used exclusively for public works projects shall be paid on those small mines from which the county elects to extract minerals in the next calendar year and shall not exceed one thousand dollars.

      (3) After July 1, 1995, the department may modify annual permit fees by rule if:

      (a) The total annual permit fees are reasonably related to the approximate costs of administering the department's surface mining regulatory program;

      (b) The annual fee does not exceed five thousand dollars; and

      (c) The mines are small mines in remote areas that are used primarily for public service, then lower annual permit fees may be established.

      (4) Appeals from any determination of the department shall not stay the requirement to pay any annual permit fee. Failure to pay the annual fee may constitute grounds for an order to suspend surface mining or cancellation of the reclamation permit as provided in this chapter.

      (5) All fees collected by the department shall be deposited into the surface mining reclamation account.

      (6) If the department delegates enforcement responsibilities to a county, city, or town, the department may allocate funds collected under this section to such county, city, or town.

      NEW SECTION. Sec. 15. PERFORMANCE SECURITY. The department shall not issue a reclamation permit until the applicant has deposited with the department an acceptable performance security on forms prescribed and furnished by the department. A public or governmental agency shall not be required to post performance security nor shall a permit holder be required to post surface mining performance security with more than one state, local, or federal agency.

      This performance security may be:

      (1) Bank letters of credit acceptable to the department;

      (2) A cash deposit;

      (3) Negotiable securities acceptable to the department;

      (4) An assignment of a savings account;

      (5) A savings certificate in a Washington bank on an assignment form prescribed by the department;

      (6) Assignments of interests in real property within the state of Washington; or

      (7) A corporate surety bond executed in favor of the department by a corporation authorized to do business in the state of Washington under Title 48 RCW and authorized by the department.

      The performance security shall be conditioned upon the faithful performance of the requirements set forth in this chapter and of the rules adopted under it.

      The department shall have the authority to determine the amount of the performance security using a standardized performance security formula developed by the department. The amount of the security shall be determined by the department and based on the estimated costs of completing reclamation according to the approved reclamation plan or minimum standards and related administrative overhead for the area to be surface mined during (a) the next twelve-month period, (b) the following twenty-four months, and (c) any previously disturbed areas on which the reclamation has not been satisfactorily completed and approved.

      The department may increase or decrease the amount of the performance security at any time to compensate for a change in the disturbed area, the depth of excavation, a modification of the reclamation plan, or any other alteration in the conditions of the mine that affects the cost of reclamation. The department may, for any reason, refuse any performance security not deemed adequate.

      Liability under the performance security shall be maintained until reclamation is completed according to the approved reclamation plan to the satisfaction of the department unless released as hereinafter provided. Liability under the performance security may be released only upon written notification by the department. Notification shall be given upon completion of compliance or acceptance by the department of a substitute performance security. The liability of the surety shall not exceed the amount of security required by this section and the department's reasonable legal fees to recover the security.

      Any interest or appreciation on the performance security shall be held by the department until reclamation is completed to its satisfaction. At such time, the interest shall be remitted to the permit holder; except that such interest or appreciation may be used by the department to effect reclamation in the event that the permit holder fails to comply with the provisions of this chapter and the costs of reclamation exceed the face value of the performance security.

       No other state agency or local government shall require performance security for the purposes of surface mine reclamation and only one agency of government shall require and hold the performance security. The department may enter into written agreements with federal agencies in order to avoid redundant bonding of surface mines straddling boundaries between federally controlled and other lands within Washington state.

      Notwithstanding any other provision of this section, nothing shall preclude the department of ecology from requiring a separate performance security for metallic minerals or uranium surface mines under any authority if any that may be presently vested in the department of ecology relating to such mines.

      NEW SECTION. Sec. 16. A new section is added to chapter 36.70A RCW to read as follows:

      (1) Where the county has classified mineral lands pursuant to RCW 36.70A.050 and mineral resource lands of long-term commercial significance exist, a county, city, or town shall designate sufficient mineral resource lands in the comprehensive plans to meet the projected twenty-year, county-wide need. Once designated, mineral resource uses, including operations as defined in section 4 of this act, shall be established as an allowed use in local development regulations subject to the permit process described in this section.

      The county, city, or town shall designate mineral resource deposits, both active and inactive, in economically viable proximity to locations where the deposits are likely to be used.

      Through its comprehensive plan and development regulations, as defined in RCW 36.70A.030, the county, city, or town shall discourage the siting of incompatible uses adjacent to mineral resource industries, deposits, and holdings.

      For purposes of this section, "long-term commercial significance" includes the mineral composition of the land for long-term economically viable commercial production, in consideration with the mineral resource land's proximity to population areas, product markets, and the possibility of more intense uses of the land.

      (2)(a) Counties, cities, and towns may only regulate surface mining operations by ordinance and only in accordance with the requirements and limitations of this subsection.

      (b) Local surface mining operating standards shall:

      (i) Address only:

      (A) Traffic;

      (B) Light emission;

      (C) Visual screening;

      (D) Noise emission; and

      (E) Other significant or substantial mining impacts that are not covered by a subject area of regulation embodied in any other state or federal law, including among others the subject areas pertaining to water allocation, use, and control and fisheries and wildlife habitat set forth in section 19 of this act.

      (ii) Be performance-based, objective standards that:

      (A) Are directly and proportionately related to limiting surface mining impacts;

      (B) Are reasonable and generally capable of being achieved;

      (C) Take into account existing and available technologies; and

      (D) May be met by any lawful means selected by the applicant or operator that, in the judgment of the county, city, or town, achieve compliance with the standard.

      (iii) Limit application and monitoring fees to the amount necessary to pay the costs of administering, processing, monitoring, and enforcing the regulation of surface mining in accordance with this section.

      (iv) Except as otherwise provided in this section, implement the ordinance through an operating plan review and approval process. Such approval process shall:

      (A) Require submittal of sufficient, complete, and accurate information, as specified by the local ordinance, to allow the decision maker to review the plan for compliance with local standards;

      (B) At the option of the county, city, or town, provide for administrative approval subject to appeal or for initial consideration through a public hearing process; and

      (C) Require that project-specific conditions or restrictions be based upon written findings of facts demonstrating their need to achieve compliance with local standards.

      (v) Subject to subsection (3) of this section, provide that approvals issued will be valid for fifty years.

      (3) Operating regulations and amendments thereto adopted pursuant to this section may be applied to lawfully preexisting mining operations only if the local ordinance:

      (a) Limits application of subsection (2)(b)(i)(A) of this section relating to traffic to the designation of approved haul routes;

      (b) Exempts such preexisting operations from any operating plan review and approval process;

      (c) Provides reasonable time periods for compliance with new or amended local operating standards that in no event may be less than one year; and

      (d) Includes a variance procedure to allow continuation of existing operations for a nonconforming surface mining operation where strict adherence to a local operating standard would be economically or operationally impractical due to conditions relating to site configuration, topography, or the nature of historic operations.

      (4) Nothing in this section precludes a county, city, or town from exercising the express authority delegated to it by a state agency under state law, or from complying with state law when required as a regulated entity.

      NEW SECTION. Sec. 17. A surface mining model ordinance advisory committee is hereby created. The committee shall be composed of representatives of local government, state agencies, surface mining interests, and the environmental community. The department of natural resources shall appoint the members of the committee and the department shall staff the committee. This temporary advisory committee shall draft model ordinances for different surface-mining settings and shall assist counties, cities, and towns in developing ordinances. The committee shall complete its work and shall expire by December 31, 1994. Participants on the committee shall pay their own expenses, and the department of natural resources shall fund the department's involvement.

      NEW SECTION. Sec. 18. RECLAMATION SETBACKS. Reclamation setbacks shall be as follows unless waived by the department:

      (1) The reclamation setback for unconsolidated deposits within mines permitted after June 30, 1993, shall be equal to the maximum anticipated height of the adjacent working face or as determined by the department. Setbacks and buffers may be destroyed as part of final reclamation of each segment if approved by the department.

      (2) The minimum reclamation setback for consolidated materials within mines permitted after June 30, 1993, shall be thirty feet or as determined by the department.

      (3) An exemption from this section may be granted by the department following a written request. The department may consider submission of a plan for backfilling acceptable to the department, a geotechnical slope-stability study, proof of a dedicated source of fill materials, written approval of contiguous landowners, and other information before granting an exemption.

      NEW SECTION. Sec. 19. WATER CONTROL. (1) Water control as regulated by the department shall be limited to those provisions necessary to effect surface mine reclamation and to protect ground and surface water resources after reclamation is complete and shall be consistent with existing water control laws. The department shall solicit recommendations from all agencies with expertise in relevant water control laws when evaluating reclamation plans for surface mines in or near water.

      (2) As to surface mining projects, control of surface mine water shall be pursuant to chapter 90.48 RCW; water availability, hydraulic continuity, allocation, and use shall be pursuant to chapters 90.03, 90.44, and 90.54 RCW; regulation of drinking water shall be pursuant to Titles 43 and 70 RCW; and protection of fisheries and wildlife shall be regulated pursuant to Title 75 RCW (fisheries laws) and Title 77 RCW (wildlife laws) as well as chapters 90.03, 90.44, 90.48, and 90.54 RCW, federal storm water regulations, and/or national pollutant discharge elimination system regulations. The department of ecology upon request by a county, city, or town, may consult with the affected parties and incorporate additional site-specific requirements into individual surface mine national pollutant discharge elimination system permits where such requirements are appropriate.

      A county, city, or town may regulate the impacts on water through local ordinances and regulations that:

      (a) Cover significant or substantial impacts that are not covered by a subject area of regulation embodied in any other state or federal law; or

      (b) Implement regulatory and/or enforcement authority that has been expressly authorized to it by a state agency.

      NEW SECTION. Sec. 20. RECLAMATION. The need for, and the practicability of, reclamation shall control the type and degree of reclamation in any specific instance. However, the basic objective of reclamation is to reestablish on a continuing basis the vegetative cover, slope stability, water conditions, and safety conditions suitable to the proposed subsequent use consistent with local land use plans for the surface mine site.

      Each permit holder shall comply with the minimum reclamation standards in effect on the date the permit was issued and any additional reclamation standards set forth in the approved reclamation plan.

      Reclamation activities, particularly those relating to control of erosion and mitigation of impacts of mining to adjacent areas, shall, to the extent feasible, be conducted simultaneously with surface mining, and in any case shall be initiated at the earliest possible time after completion of surface mining on any segment of the permit area.

      All reclamation activities shall be completed not more than two years after completion or abandonment of surface mining on each segment of the area for which a reclamation permit is in force.

      The department may by contract delegate enforcement of provisions of reclamation plans to counties, cities, and towns. A county, city, or town performing enforcement functions may not impose any additional fees on permit holders.

      NEW SECTION. Sec. 21. MINIMUM RECLAMATION STANDARDS. Reclamation of surface mines permitted after June 30, 1993, and reclamation of surface mine segments addressed by reclamation plans modified after June 30, 1994, shall meet the following minimum standards except as waived in writing by the department.

      (1) Prior to surface mining, permit holders shall carefully stockpile all topsoil on the site for use in reclamation, or immediately move topsoil to reclaim adjacent segments, except when the approved subsequent use does not require replacing the topsoil. Topsoil needed for reclamation shall not be sold as a mineral nor mixed with sterile soils. Stockpiled materials used as screening shall not be used for reclamation until such time as the appropriate county or municipal government has given its approval.

      (2) The department may require that clearly visible, permanent monuments delineating the permit boundaries and maximum extent of the disturbed area be set at appropriate places around the mine site. The permit holder shall maintain the monuments until termination of the reclamation permit.

      (3) All minimum reclamation standards may be waived in writing by the department in order to accommodate unique and beneficial reclamation schemes such as parks, swimming facilities, buildings, and wildlife reserves. Such waivers shall be granted only after written approval by the department of a reclamation plan describing the variances to the minimum reclamation standards, receipt of documentation of SEPA compliance, and written approvals from the landowner and by the local land use authority.

      (4) All surface-mined slopes shall be reclaimed to the following minimum standards:

      (a) In surface mines in soil, sand, gravel, and other unconsolidated materials, all reclaimed slopes shall:

      (i) Have varied steepness;

      (ii) Have a sinuous appearance in both profile and plan view;

      (iii) Have no large rectilinear topographic elements;

      (iv) Generally have slopes of between 2.0 and 3.0 feet horizontal to 1.0 foot vertical or flatter except in limited areas where steeper slopes are necessary in order to create sinuous topography and to control drainage;

      (v) Not exceed 1.5 feet horizontal to 1.0 foot vertical except as necessary to blend with adjacent natural slopes;

      (vi) Be compacted if significant backfilling is required to produce the final reclaimed slopes and if the department determines that compaction is necessary.

      (b) Slopes in consolidated materials shall have no prescribed slope angle or height, but where a severely hazardous condition is created by mining and that is not indigenous to the immediate area, the slopes shall not exceed 2.0 feet horizontal to 1.0 foot vertical. Steeper slopes shall be acceptable in areas where evidence is submitted that demonstrates that the geologic or topographic characteristics of the site preclude reclamation of slopes to such angle or height or that such slopes constitute an acceptable subsequent use under local land use regulations.

      (c) Surface mines in which the seasonal or permanent water tables have been penetrated, thereby creating swamps, ponds, or lakes useful for recreational, wildlife habitat, water quality control, or other beneficial wetland purposes shall be reclaimed in the following manner:

      (i) For slopes that are below the permanent water table in soil, sand, gravel, and other unconsolidated materials, the slope angle shall be no steeper than 1.5 feet horizontal to 1.0 foot vertical;

      (ii) Generally, solid rock banks shall be shaped so that a person can escape from the water, however steeper slopes and lack of water egress shall be acceptable in rural, forest, or mountainous areas or where evidence is provided that such slopes would constitute an acceptable subsequent use under local land use regulations;

      (iii) Both standpipes and armored spillways or other measures to prevent undesirable overflow or seepage shall be provided to stabilize all such water bodies within the disturbed area; and

      (iv) Where lakes, ponds, or swamps are created, the permit holder shall provide measures to establish a beneficial wetland by developing natural wildlife habitat and incorporating such measures as irregular shoreline configurations, sinuous bathymetry and shorelines, varied water depths, peninsulas, islands, and subaqueous areas less than 1.5 foot deep during summer low-water levels. Clay-bearing material placed below water level may be required to avoid creating sterile wetlands.

      (d) Final topography shall generally comprise sinuous contours, chutes and buttresses, spurs, and rolling mounds and hills, all of which shall blend with adjacent topography to a reasonable extent. Straight planar slopes and right angles should be avoided.

      (e) The floors of mines shall generally grade gently into postmining drainages to preclude sheet-wash erosion during intense precipitation, except where backgrading is appropriate for drainage control, to establish wetlands, or to trap sediment.

      (f) Topsoil shall be restored as necessary to promote effective revegetation and to stabilize slopes and mine floors. Where limited topsoil is available, topsoil shall be placed and revegetated in such a way as to ensure that little topsoil is lost to erosion.

      (g) Where surface mining has exposed natural materials that may create polluting conditions, including but not limited to acid-forming coals and metalliferous rock or soil, such conditions shall be addressed according to a method approved by the department. The final ground surface shall be graded so that surface water drains away from these materials.

      (h) All grading and backfilling shall be made with nonnoxious, noncombustible, and relatively incompactible solids unless the permit holder provides:

      (i) Written approval from all appropriate solid waste regulatory agencies; and

      (ii) Any and all revisions to such written approval during the entire time the reclamation permit is in force.

      (i) Final reclaimed slopes should be left roughly graded, preserving equipment tracks, depressions, and small mounds to trap clay-bearing soil and promote natural revegetation. Where reasonable, final equipment tracks should be oriented in order to trap soil and seeds and to inhibit erosion.

      (j) Pit floors should be bulldozed or ripped to foster revegetation.

      (5) Drainages shall be graded and contain adequate energy dissipation devices so that essentially natural conditions of water velocity, volume, and turbidity are reestablished within six months of reclamation of each segment of the mine. Ditches and other artificial drainages shall be constructed on each reclaimed segment to control surface water, erosion, and siltation and to direct runoff to a safe outlet. Diversion ditches including but not limited to channels, flumes, tightlines and retention ponds shall be capable of carrying the peak flow at the mine site that has the probable recurrence frequency of once in twenty-five years as determined from data for the twenty-five year, twenty-four hour precipitation event published by the national oceanic and atmospheric administration. The grade of such ditches and channels shall be constructed to limit erosion and siltation. Natural and other drainage channels shall be kept free of equipment, wastes, stockpiles, and overburden.

      (6) Impoundment of water shall be an acceptable reclamation technique provided that approvals of other agencies with jurisdiction are obtained and:

      (a) Proper measures are taken to prevent undesirable seepage that could cause flooding outside the permitted area or adversely affect the stability of impoundment dikes or adjacent slopes;

      (b) Both standpipes and armored spillways or other measures necessary to control overflow are provided.

      (7) Revegetation shall be required as appropriate to stabilize slopes, generate new topsoil, reduce erosion and turbidity, mask rectilinear contours, and restore the scenic value of the land to the extent feasible as appropriate to the approved subsequent use. Although the scope of and necessity for revegetation will vary according to the geography, precipitation, and approved subsequent use of the site, the objective of segmental revegetation is to reestablish self-sustaining vegetation and conditions of slope stability, surface water quality, and appearance before release of the reclamation permit. Revegetation shall normally meet the following standards:

      (a) Revegetation shall commence during the first proper growing season following restoration of slopes on each segment unless the department has granted the permit holder a written time extension.

      (b) In eastern Washington, the permit holder may not be able to achieve continuous ground cover owing to arid conditions or sparse topsoil. However, revegetation shall be as continuous as reasonably possible as determined by the department.

      (c) Revegetation generally shall include but not be limited to diverse evergreen and deciduous trees, shrubs, grasses, and deep-rooted ground cover.

      (i) For western Washington, nitrogen-fixing species including but not limited to alder, white clover, and lupine should be included in dry areas. In wet areas, tubers, sedges, wetland grasses, willow, cottonwood, cedar, and alder are appropriate.

      (ii) In eastern Washington, lupine, white clover, Russian olive, black locust, junipers, and pines are among appropriate plants. In wet areas, cottonwood, tubers, and sedges are appropriate.

      (d) The requirements for revegetation may be reduced or waived by the department where erosion will not be a problem in rural areas where precipitation exceeds thirty inches per annum, or where revegetation is inappropriate for the approved subsequent use of the surface mine.

      (e) In areas where revegetation is critical and conditions are harsh, the department may require irrigation, fertilization, and importation of clay or humus-bearing soils to establish effective vegetation.

      (f) The department may refuse to release a reclamation permit or performance security until it deems that effective revegetation has commenced.

      NEW SECTION. Sec. 22. PERMIT TRANSFERS. Reclamation permits shall be transferred to a subsequent permit holder and the department shall release the former permit holder from the duties imposed by this chapter if:

      (1) Both permit holders comply with all rules of the department addressing requirements for transferring a permit; and

      (2) Unless waived by the department, the mine and all others operated by both the former and subsequent permit holders and their principal officers or owners are in compliance with this chapter and rules.

      NEW SECTION. Sec. 23. MODIFICATION OF RECLAMATION PLANS. The department and the permit holder may modify the reclamation plan at any time during the term of the permit for any of the following reasons:

      (1) To modify the requirements so that they do not conflict with existing or new laws;

      (2) If the department determines that the previously adopted reclamation plan is impossible or impracticable to implement and maintain; or

      (3) The previously approved reclamation plan is not accomplishing the intent of this chapter as determined by the department. 

      Modified reclamation plans shall be reviewed by the department as lead agency under SEPA. Such SEPA analyses shall consider only those impacts relating directly to the proposed modifications. Copies of proposed and approved modifications shall be sent to the appropriate county, city, or town.

      NEW SECTION. Sec. 24. REPORTS. On the anniversary date of the reclamation permit and each year thereafter until reclamation is completed and approved, the permit holder shall file a report of activities completed during the preceding year. The report shall be on a form prescribed by the department.

      NEW SECTION. Sec. 25. INSPECTION OF PERMIT AREA. The department may order at any time an inspection of the disturbed area to determine if the miner or permit holder has complied with the reclamation permit, rules, and this chapter.

      NEW SECTION. Sec. 26. ORDER TO RECTIFY DEFICIENCIES. The department may issue an order to rectify deficiencies when a miner or permit holder is conducting surface mining in any manner not authorized by:

      (1) This chapter;

      (2) The rules adopted by the department;

      (3) The authorized reclamation plan; or

      (4) The reclamation permit.

      The order shall describe the deficiencies and shall require that the miner or permit holder correct all deficiencies no later than sixty days from issuance of the order. The department may extend the period for correction for delays clearly beyond the miner or permit holder's control, but only when the miner or permit holder is, in the opinion of the department, making every reasonable effort to comply.

      NEW SECTION. Sec. 27. EMERGENCY NOTICE AND ORDER TO RECTIFY DEFICIENCIES--EMERGENCY ORDER TO SUSPEND SURFACE MINING. When the department finds that a permit holder is conducting surface mining in any manner not authorized by:

      (1) This chapter;

      (2) The rules adopted by the department;

      (3) The approved reclamation plan; or

      (4) The reclamation permit;

and that activity has created a situation involving an immediate danger to the public health, safety, welfare, or environment requiring immediate action, the department may issue an emergency notice and order to rectify deficiencies, and/or an emergency order to suspend surface mining. These orders shall be effective when entered. The department may take such action as is necessary to prevent or avoid the danger to the public health, safety, welfare, or environment that justifies use of emergency adjudication. The department shall give such notice as is practicable to the permit holder or miner who is required to comply with the order. The order shall comply with the requirements of the administrative procedure act.

      Regulations of surface mining operations administered by other state and local agencies shall be preempted by this section to the extent that the time schedule and procedures necessary to rectify the emergency situation, as determined by the department, conflict with such local regulation.

      NEW SECTION. Sec. 28. ORDER TO SUSPEND SURFACE MINING. Upon the failure of a miner or permit holder to comply with a department order to rectify deficiencies, the department may issue an order to suspend surface mining when a miner or permit holder is conducting surface mining in any manner not authorized by:

      (1) This chapter;

      (2) The rules adopted by the department;

      (3) The approved reclamation plan;

      (4) The reclamation permit; or

      (5) If the miner or permit holder fails to comply with any final order of the department.

      The order to suspend surface mining shall require the miner or permit holder to suspend part or all of the miner's or permit holder's mining operations until the conditions resulting in the issuance of the order have been mitigated to the satisfaction of the department.

      The attorney general may take the necessary legal action to enjoin, or otherwise cause to be stopped, surface mining in violation of an order to suspend surface mining.

      NEW SECTION. Sec. 29. DECLARATION OF ABANDONMENT. The department may issue a declaration of abandonment when it determines that all surface mining has ceased for a period of one hundred eighty consecutive days not set forth in the permit holder's reclamation plan or when, by reason of inspection of the permit area, or by any other means, the department determines that the mine has in fact been abandoned by the permit holder except that abandonment shall not include normal interruptions of surface mining resulting from labor disputes, economic conditions associated with lack of smelting capacity or availability of appropriate transportation, war, social unrest, demand for minerals, maintenance and repairs, and acts of God.

      Following a declaration of abandonment, the department shall require the permit holder to complete reclamation in accordance with this chapter. If the permit holder fails to do so, the department shall proceed to do the necessary reclamation work pursuant to section 31 of this act.

      If another miner applies for a permit on a site that has been declared abandoned, the department may, in its discretion, cancel the reclamation permit of the permit holder and issue a new reclamation permit to the applicant. The department shall not issue a new permit unless it determines that such issuance will be an effective means of assuring that the site will ultimately be reclaimed. The applicant must agree to assume the reclamation responsibilities left unfinished by the first miner, in addition to meeting all requirements for issuance of a new permit.

      NEW SECTION. Sec. 30. CANCELLATION OF THE RECLAMATION PERMIT. When the department determines that a surface mine has been abandoned, it may cancel the reclamation permit. The permit holder shall be informed of such actions by a department notification of illegal abandonment and cancellation of the reclamation permit.

      NEW SECTION. Sec. 31. ORDER TO SUBMIT PERFORMANCE SECURITY--RECLAMATION BY THE DEPARTMENT. The department may, with the staff, equipment, and material under its control, or by contract with others, reclaim the disturbed areas when it finds that reclamation has not occurred in any segment of a surface mine within two years of completion of mining or of declaration of abandonment and the permit holder is not actively pursuing reclamation.

      If the department intends to undertake the reclamation, the department shall issue an order to submit performance security requiring the permit holder or surety to submit to the department the amount of moneys posted pursuant to section 15 of this act. If the amount specified in the order to submit performance security is not paid within twenty days after issuance of the notice, the attorney general upon request of the department shall bring an action on behalf of the state in a superior court to recover the amount specified and associated legal fees.

       The department may proceed at any time after issuing the order to submit performance security with reclamation of the site according to the approved reclamation plan or according to a plan developed by the department that meets the minimum reclamation standards.

      The department shall keep a record of all expenses incurred in carrying out any reclamation project or activity authorized under this section, including:

      (1) Reclamation;

      (2) A reasonable charge for the services performed by the state's personnel and the state's equipment and materials utilized; and

      (3) Administrative and legal expenses related to reclamation of the surface mine.

      The department shall refund to the surety or permit holder all amounts received in excess of the amount of expenses incurred. If the amount received is less than the expenses incurred, the attorney general, upon request of the department, may bring an action against the permit holder on behalf of the state in the superior court to recover the remaining costs listed in this section.

      NEW SECTION. Sec. 32. FINES. Each order of the department may impose a fine or fines in the event that a miner or permit holder fails to obey the order of the department. When a miner or permit holder fails to comply with an order of the department, the miner or permit holder shall be subject to a civil penalty in an amount not more than ten thousand dollars for each violation plus interest based upon a schedule of fines set forth by the department in rule. Procedures for imposing a penalty and setting the amount of the penalty shall be as provided in RCW 90.48.144. Each day on which a miner or permit holder continues to disobey any order of the department shall constitute a separate violation. If the penalty and interest is not paid to the department after it becomes due and payable, the attorney general, upon the request of the department, may bring an action in the name of the state of Washington to recover the penalty, interest, mitigation for environmental damages, and associated legal fees. Decisions of the department are subject to review by the pollution control hearings board.

      All fines, interest, penalties, and other damage recovery costs from mines regulated by the department shall be credited to the surface mining reclamation account.

      NEW SECTION. Sec. 33. REFUSAL TO ISSUE PERMITS. The department shall refuse to issue a reclamation permit if it is determined during the SEPA process that the impacts of a proposed surface mine cannot be adequately mitigated.

      The department or county, city, or town may refuse to issue any other permit at any other location to any miner or permit holder who fails to rectify deficiencies set forth in an order of the department within the requisite time schedule. However, the department or county, city, or town shall issue all appropriate permits when all deficiencies are corrected at each surface mining site.

      Sec. 34. RCW 78.44.150 and 1970 ex.s. c 64 s 16 are each amended to read as follows:

      Any ((operator)) miner or permit holder conducting surface mining within the state of Washington without a valid ((operating)) reclamation permit shall be guilty of a gross misdemeanor. Surface mining outside of the permitted area shall constitute illegal mining without a valid reclamation permit. Each day of ((operation)) mining without a valid reclamation permit shall constitute a separate offense.

      Sec. 35. RCW 78.44.170 and 1989 c 175 s 166 are each amended to read as follows:

      Appeals from department determinations under this chapter shall be made as follows:

       Appeals from department determinations made under this chapter shall be made under the provisions of the Administrative Procedure Act (chapter 34.05 RCW), and shall be considered an adjudicative proceeding within the meaning of the Administrative Procedure Act, chapter 34.05 RCW. Only a person aggrieved within the meaning of RCW 34.05.530 has standing and can file an appeal.

      Sec. 36. RCW 78.44.910 and 1970 ex.s. c 64 s 22 are each amended to read as follows:

      ((This act shall not direct itself to the reclamation of land mined)) Miners and permit holders shall not be required to reclaim any segment where all surface mining was completed prior to January 1, 1971. However, the department shall make an effort to reclaim previously abandoned or completed surface mining segments.

      NEW SECTION. Sec. 37. RECLAMATION AWARDS ESTABLISHED. The department shall create reclamation awards in recognition of excellence in reclamation or reclamation research. Such awards shall be presented to individuals, miners, operators, companies, or government agencies performing exemplary surface mining reclamation in the state of Washington. The department shall designate a percent of the state annual fees as funding of the awards.

      NEW SECTION. Sec. 38. RECLAMATION SERVICE ESTABLISHED. The department may establish a no-cost consulting service within the department to assist miners, permit holders, local government, and the public in technical matters related to mine regulation, mine operations, and reclamation. The department may prepare concise, printed information for the public explaining surface mining activities, timelines for permits and reviews, laws, and the role of governmental agencies involved in surface mining, including how to contact all regulators. The department shall not be held liable for any negligent advice.

      NEW SECTION. Sec. 39. The following acts or parts of acts are each repealed:

      (1) RCW 78.44.030 and 1987 c 258 s 1, 1984 c 215 s 1, & 1970 ex.s. c 64 s 4;

      (2) RCW 78.44.035 and 1987 c 258 s 3;

      (3) RCW 78.44.080 and 1970 ex.s. c 64 s 9;

      (4) RCW 78.44.090 and 1970 ex.s. c 64 s 10;

      (5) RCW 78.44.100 and 1984 c 215 s 3 & 1970 ex.s. c 64 s 11;

      (6) RCW 78.44.110 and 1987 c 258 s 2, 1984 c 215 s 4, & 1970 ex.s. c 64 s 12;

      (7) RCW 78.44.120 and 1984 c 215 s 5, 1977 c 66 s 1, & 1970 ex.s. c 64 s 13;

      (8) RCW 78.44.130 and 1970 ex.s. c 64 s 14;

      (9) RCW 78.44.140 and 1989 c 230 s 1, 1984 c 215 s 6, & 1970 ex.s. c 64 s 15;

      (10) RCW 78.44.160 and 1984 c 215 s 7 & 1970 ex.s. c 64 s 17; and

      (11) RCW 78.44.180 and 1970 ex.s. c 64 s 20.

      NEW SECTION. Sec. 40. The code reviser may recodify, as necessary, RCW 78.44.150, 78.44.170, 78.44.175, and 78.44.910 within chapter 78.44 RCW to accomplish the reorganization of chapter 78.44 RCW as intended in this act.

      NEW SECTION. Sec. 41. Captions used in this act do not constitute any part of the law.

      NEW SECTION. Sec. 42. Sections 4, 5, 10 through 15, 18 through 33, 37, and 38 of this act are each added to chapter 78.44 RCW.

      NEW SECTION. Sec. 43. 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. 44. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     Senator Sutherland moved that the Senate do concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5502.

     Debate ensued.

     The President declared the question before the Senate to be the motion by Senator Sutherland that the Senate do concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5502.

     The motion by Senator Sutherland carried and the Senate concurred in the House amendment to Engrossed Second Substitute Senate Bill No. 5502.


MOTION


     On motion of Senator Loveland, Senator Moore was excused.

     The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute Senate Bill No. 5502, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5502, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 1; Absent, 2; Excused, 3.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 43.

     Voting nay: Senator Snyder - 1.

     Absent: Senators McAuliffe and Wojahn - 2.

     Excused: Senators Moore, Niemi and Sheldon - 3.

     ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5502, 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 Spanel, Senator Wojahn was excused.


MESSAGE FROM THE HOUSE


April 18, 1993


MR. PRESIDENT:

     The House has passed SENATE BILL NO. 5723 with the following amendment(s):

     On page 2, line 6, after "act" strike "((; or

     (c)" and insert "; or

     (c)"

     On page 2, line 10, after "remainder))" insert "For family heirlooms, collectibles, antiques, papers, jewelry, photos, or other personal effects that have been held in the possession of the deceased recipient to which a surviving child may otherwise be entitled not to exceed a total fair market value of two thousand dollars", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Spanel, the Senate concurred in the House amendments to Senate Bill No. 5723.

     The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5723, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Senate Bill No. 5723, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

     Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 45.

     Excused: Senators Moore, Niemi, Sheldon and Wojahn - 4.

     SENATE BILL NO. 5723, 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 passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5815 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 69.50.505 and 1992 c 211 s 1 are each amended to read as follows:

      (a) The following are subject to seizure and forfeiture and no property right exists in them:

      (1) All controlled substances which have been manufactured, distributed, dispensed, acquired, or possessed in violation of this chapter or chapter 69.41 or 69.52 RCW, and all hazardous chemicals, as defined in RCW 64.44.010, used or intended to be used in the manufacture of controlled substances;

      (2) All raw materials, products, and equipment of any kind which are used, or intended for use, in manufacturing, compounding, processing, delivering, importing, or exporting any controlled substance in violation of this chapter or chapter 69.41 or 69.52 RCW;

      (3) All property which is used, or intended for use, as a container for property described in paragraphs (1) or (2);

      (4) All conveyances, including aircraft, vehicles, or vessels, which are used, or intended for use, in any manner to facilitate the sale, delivery, or receipt of property described in paragraphs (1) or (2), except that:

      (i) No conveyance used by any person as a common carrier in the transaction of business as a common carrier is subject to forfeiture under this section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this chapter or chapter 69.41 or 69.52 RCW;

      (ii) No conveyance is subject to forfeiture under this section by reason of any act or omission established by the owner thereof to have been committed or omitted without the owner's knowledge or consent;

      (iii) No conveyance is subject to forfeiture under this section if used in the receipt of only an amount of marijuana for which possession constitutes a misdemeanor under RCW 69.50.401(e);

      (iv) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act or omission; and

      (v) When the owner of a conveyance has been arrested under this chapter or chapter 69.41 or 69.52 RCW the conveyance in which the person is arrested may not be subject to forfeiture unless it is seized or process is issued for its seizure within ten days of the owner's arrest;

      (5) All books, records, and research products and materials, including formulas, microfilm, tapes, and data which are used, or intended for use, in violation of this chapter or chapter 69.41 or 69.52 RCW;

      (6) All drug paraphernalia;

      (7) All moneys, negotiable instruments, securities, or other tangible or intangible property of value furnished or intended to be furnished by any person in exchange for a controlled substance in violation of this chapter or chapter 69.41 or 69.52 RCW, all tangible or intangible personal property, proceeds, or assets acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter 69.41 or 69.52 RCW, and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this chapter or chapter 69.41 or 69.52 RCW((: PROVIDED, That)). A forfeiture of money, negotiable instruments, securities, or other tangible or intangible property encumbered by a bona fide security interest is subject to the interest of the secured party if, at the time the security interest was created, the secured party neither had knowledge of nor consented to the act or omission((: PROVIDED FURTHER, That)). No personal property may be forfeited under this paragraph, to the extent of the interest of an owner, by reason of any act or omission which that owner establishes was committed or omitted without the owner's knowledge or consent; and

      (8) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or which have been acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter 69.41 or 69.52 RCW, if such activity is not less than a class C felony and a substantial nexus exists between the commercial production or sale of the controlled substance and the real property((: PROVIDED, That)). However:

      (i) No property may be forfeited pursuant to this subsection, to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent;

      (ii) The bona fide gift of a controlled substance, legend drug, or imitation controlled substance shall not result in the forfeiture of real property;

      (iii) The possession of marijuana shall not result in the forfeiture of real property unless the marijuana is possessed for commercial purposes, the amount possessed is five or more plants or one pound or more of marijuana, and a substantial nexus exists between the possession of marijuana and the real property. In such a case, the intent of the offender shall be determined by the preponderance of the evidence, including the offender's prior criminal history, the amount of marijuana possessed by the offender, the sophistication of the activity or equipment used by the offender, and other evidence which demonstrates the offender's intent to engage in commercial activity;

      (iv) The unlawful sale of marijuana or a legend drug shall not result in the forfeiture of real property unless the sale was forty grams or more in the case of marijuana or one hundred dollars or more in the case of a legend drug, and a substantial nexus exists between the unlawful sale and the real property; and

      (v) A forfeiture of real property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party, at the time the security interest was created, neither had knowledge of nor consented to the act or omission.

      (b) Real or personal property subject to forfeiture under this chapter may be seized by any board inspector or law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of real property shall include the filing of a lis pendens by the seizing agency. Real property seized under this section shall not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later: PROVIDED, That real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest. Seizure of personal property without process may be made if:

      (1) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant;

      (2) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter;

      (3) A board inspector or law enforcement officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or

      (4) The board inspector or law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter.

      (c) In the event of seizure pursuant to subsection (b), proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9 RCW, or a certificate of title, shall be made by service upon the secured party to the secured party's assignee at the address shown on the financing statement or the certificate of title. The notice of seizure in other cases may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the fifteen day period following the seizure.

      (d) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession ((of items specified in subsection (a)(4), (a)(7), or (a)(8) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property)) within ninety days, the item seized shall be deemed forfeited. The community property interest in real property of a person whose spouse committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation. A perfected security interest of a secured party may be extinguished only after a contested hearing or agreement by the secured party.

      (e) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession ((of items specified in subsection (a)(2), (a)(3), (a)(4), (a)(5), (a)(6), (a)(7), or (a)(8) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property)) within ninety days, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. ((The hearing shall be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020(4), the hearing shall be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter 34.12 RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction if the aggregate value of the article or articles involved is more than five hundred dollars.)) The prosecuting attorney shall file the case into a court of competent jurisdiction. The court to which the matter is ((to be removed)) filed shall be the district court when the aggregate value of personal property is within the jurisdictional limit set forth in RCW 3.66.020. ((A hearing before the seizing agency and any appeal therefrom shall be under Title 34 RCW.)) In a court hearing between two or more claimants to the article or articles involved, the prevailing party shall be entitled to a judgment for costs and reasonable attorney's fees. In cases involving personal property, the burden of producing evidence shall be upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property. In cases involving real property, the burden of producing evidence shall be upon the law enforcement agency. The burden of proof that the seized real property is subject to forfeiture shall be upon the law enforcement agency. The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a determination by the ((administrative law judge or)) court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (a)(2), (a)(3), (a)(4), (a)(5), (a)(6), (a)(7), or (a)(8) of this section.

      (f) When property is forfeited under this chapter the board or seizing law enforcement agency may:

      (1) Retain it for official use or upon application by any law enforcement agency of this state release such property to such agency for the exclusive use of enforcing the provisions of this chapter;

      (2) Sell that which is not required to be destroyed by law and which is not harmful to the public;

      (3) Request the appropriate sheriff or director of public safety to take custody of the property and remove it for disposition in accordance with law; or

      (4) Forward it to the drug enforcement administration for disposition.

      (g)(1) When property is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the value of the property at the time of seizure, and the amount of proceeds realized from disposition of the property.

      (2) Each seizing agency shall retain records of forfeited property for at least seven years.

      (3) Each seizing agency shall file a report including a copy of the records of forfeited property with the state treasurer each calendar quarter.

      (4) The quarterly report need not include a record of forfeited property that is still being held for use as evidence during the investigation or prosecution of a case or during the appeal from a conviction.

      (h)(1) By January 31st of each year, each seizing agency shall remit to the state treasurer an amount equal to ten percent of the net proceeds of any property forfeited during the preceding calendar year. Money remitted shall be deposited in the drug enforcement and education account under RCW 69.50.520.

      (2) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages under subsection (n) of this section.

      (3) The value of sold forfeited property is the sale price. The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal. The value of destroyed property and retained firearms or illegal property is zero.

      (i) Forfeited property and net proceeds not required to be paid to the state treasurer shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources.

      (j) Controlled substances listed in Schedule I, II, III, IV, and V that are possessed, transferred, sold, or offered for sale in violation of this chapter are contraband and shall be seized and summarily forfeited to the state. Controlled substances listed in Schedule I, II, III, IV, and V, which are seized or come into the possession of the board, the owners of which are unknown, are contraband and shall be summarily forfeited to the board.

      (k) Species of plants from which controlled substances in Schedules I and II may be derived which have been planted or cultivated in violation of this chapter, or of which the owners or cultivators are unknown, or which are wild growths, may be seized and summarily forfeited to the board.

      (l) The failure, upon demand by a board inspector or law enforcement officer, of the person in occupancy or in control of land or premises upon which the species of plants are growing or being stored to produce an appropriate registration or proof that he is the holder thereof constitutes authority for the seizure and forfeiture of the plants.

      (m) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. Orders for the forfeiture of real property shall be entered by the superior court, subject to court rules. Such an order shall be filed by the seizing agency in the county auditor's records in the county in which the real property is located.

      (n) A landlord may assert a claim against proceeds from the sale of assets seized and forfeited under subsection (f)(2) of this section, only if:

      (l) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence; and

      (2) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter 59.18 RCW, to cover the damage directly caused by a law enforcement officer prior to asserting a claim under the provisions of this section;

      (i) Only if the funds applied under (2) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;

      (ii) Only if the governmental entity denies or fails to respond to the landlord's claim within sixty days of the date of filing, may the landlord collect damages under this subsection by filing within thirty days of denial or the expiration of the sixty-day period, whichever occurs first, a claim with the seizing law enforcement agency. The seizing law enforcement agency must notify the landlord of the status of the claim by the end of the thirty-day period. Nothing in this section requires the claim to be paid by the end of the sixty-day or thirty-day period.

      (3) For any claim filed under (2) of this subsection, the law enforcement agency shall pay the claim unless the agency provides substantial proof that the landlord either:

      (i) Knew or consented to actions of the tenant in violation of this chapter or chapter 69.41 or 69.52 RCW; or

      (ii) Failed to respond to a notification of the illegal activity, provided by a law enforcement agency under RCW 59.18.075, within seven days of receipt of notification of the illegal activity.

      (o) The landlord's claim for damages under subsection (n) of this section may not include a claim for loss of business and is limited to:

      (1) Damage to tangible property and clean-up costs;

      (2) The lesser of the cost of repair or fair market value of the damage directly caused by a law enforcement officer;

      (3) The proceeds from the sale of the specific tenant's property seized and forfeited under subsection (f)(2) of this section; and

      (4) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (h)(2) of this section.

      (p) Subsections (n) and (o) of this section do not limit any other rights a landlord may have against a tenant to collect for damages. However, if a law enforcement agency satisfies a landlord's claim under subsection (n) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency.

      NEW SECTION. Sec. 2. A new section is added to chapter 46.61 RCW to read as follows:

      (1) A vehicle driven by or under the actual physical control of the owner of the vehicle in violation of RCW 46.61.502 or 46.61.504 is, upon the conviction of the owner when that conviction is the second or subsequent conviction for a violation of RCW 46.61.502 or 46.61.504 within a five-year period, subject to seizure and forfeiture and no property right exists in that vehicle.

      A forfeiture of a vehicle encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the violation of RCW 46.61.502 or 46.61.504.

      (2) A vehicle subject to forfeiture under this chapter may be seized by a law enforcement officer of this state upon process issued by a court of competent jurisdiction. Seizure of a vehicle may be made without process if the vehicle subject to seizure has been the subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section.

      (3) A seizure under subsection (2) of this section automatically commences proceedings for forfeiture. The law enforcement agency under whose authority the seizure was made shall cause notice of the seizure and intended forfeiture of the seized vehicle to be served within fifteen days after the seizure on the owner of the vehicle seized, on the person in charge of the vehicle, and on any person having a known right or interest in the vehicle, including a community property interest. The notice of seizure may be served by any method authorized by law or court rule, including but not limited to service by certified mail with return receipt requested. Service by mail is complete upon mailing within the fifteen-day period after the seizure. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9 RCW, or a certificate of title, shall be made by service upon the secured party to the secured party's assignee at the address shown on the financing statement or the certificate of title.

      (4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the seized vehicle within ninety days of the seizure, the vehicle is deemed forfeited. A perfected security interest of a secured party may be extinguished only after a contested hearing or agreement by the secured party.

      (5) If a person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the seized vehicle within ninety days of the seizure, the law enforcement agency shall give the person or persons a reasonable opportunity to be heard as to the claim or right. The prosecuting attorney shall file the case into a court of competent jurisdiction. The court to which the matter is filed shall be the district court when the value of the vehicle is within the jurisdictional limit of the district court. In a court hearing between two or more claimants to the vehicle involved, the prevailing party is entitled to a judgment for costs and reasonable attorneys' fees. The burden of producing evidence is upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the vehicle. The seizing law enforcement agency shall promptly return the vehicle to the claimant upon a determination by the chief law enforcement officer of the seizing agency, the chief law enforcement officer's designee, or the court that the claimant neither knew of nor consented to the violation leading to seizure and is the present lawful owner or is lawfully entitled to possession of the vehicle.

      (6) When a vehicle is forfeited under this chapter the seizing law enforcement agency may sell the vehicle, retain it for official use, or upon application by a law enforcement agency of this state release the vehicle to that agency for the exclusive use of enforcing this title.

      (7) When a vehicle is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the vehicle, the disposition of the vehicle, the value of the vehicle at the time of seizure, and the amount of proceeds realized from disposition of the vehicle.

      (8) Each seizing agency shall retain records of forfeited vehicles for at least seven years.

      (9) Each seizing agency shall file a report including a copy of the records of forfeited vehicles with the state treasurer each calendar quarter.

      (10) The quarterly report need not include a record of a forfeited vehicle that is still being held for use as evidence during the investigation or prosecution of a case or during the appeal from a conviction.

      (11) By January 31st of each year, each seizing agency shall remit to the state treasurer an amount equal to ten percent of the net proceeds of vehicles forfeited during the preceding calendar year. Money remitted shall be deposited in the public safety and education account.

      (12) The net proceeds of a forfeited vehicle is the value of the forfeitable interest in the vehicle after deducting the cost of satisfying a bona fide security interest to which the vehicle is subject at the time of seizure; and in the case of a sold vehicle, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents.

      (13) The value of a sold forfeited vehicle is the sale price. The value of a retained forfeited vehicle is the fair market value of the vehicle at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained vehicles. If an appraiser is used, the value of the vehicle appraised is net of the cost of the appraisal.

      NEW SECTION. Sec. 3. A new section is added to chapter 46.61 RCW to read as follows:

      (1) Whenever a person is charged with a violation of RCW 46.61.502 or 46.61.504 and that person has been previously convicted for a violation of RCW 46.61.502 or 46.61.504 within a five-year period, the court shall instruct the person charged of the provisions of section 5 of this act and shall immediately forward notice of the charge to the director.

      (2) Upon the conviction or acquittal of the person charged or if a pending charge is otherwise terminated, the court shall immediately forward notice of the conviction, acquittal, or other termination of charge to the director.

      NEW SECTION. Sec. 4. A new section is added to chapter 46.12 RCW to read as follows:

      Upon receiving notice of a charge under section 3 of this act, the director shall withhold the issuance of a certificate of ownership on a vehicle subject to section 5 of this act unless the applicant is included in the exceptions listed in that section or until receiving notice of acquittal or other termination of the charge under section 3 of this act.

      NEW SECTION. Sec. 5. A new section is added to chapter 46.12 RCW to read as follows:

      It is unlawful to convey, sell, or transfer the ownership of a motor vehicle that was driven by or was under the actual physical control of the owner of the vehicle who has previously been convicted for a violation of RCW 46.61.502 or 46.61.504 within a five-year period and is currently charged with a violation of RCW 46.61.502 or 46.61.504, except that:

      (1) A vehicle encumbered by a bona fide security interest may be transferred to the secured party or to a person designated by the secured party; and

      (2) A leased vehicle may be transferred to the lessor or to a person designated by the lessor.

      Sec. 6. RCW 46.12.270 and 1969 ex.s. c 125 s 3 are each amended to read as follows:

      Any person violating ((the provisions of)) RCW 46.12.250 ((or)), 46.12.260 ((shall be)), or section 5 of this act is guilty of a misdemeanor and shall be punished by a fine of not more than two hundred fifty dollars or by imprisonment in a county jail for not more than ninety days.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk


MOTION


     On motion of Senator Adam Smith, the Senate refuses to concur in the House amendment to Engrossed Substitute Senate Bill No. 5815 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. 5815 and the House amendment thereto: Senators Adam Smith, West and Quigley.


MOTION


     On motion of Senator Adam Smith, the Conference Committee appointments were confirmed.


MESSAGE FROM THE HOUSE


April 18, 1993


MR. PRESIDENT:

     The House has passed SUBSTITUTE SENATE BILL NO. 5837 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND DECLARATIONS. The legislature finds and declares that the issuance by state and local governments of bonds and other obligations, and the investment of moneys in connection with these obligations, involve exposure to changes in interest rates; that a number of financial instruments are available to lower the net cost of these borrowings, to increase the net return on these investments, or to reduce the exposure of state and local governments to changes in interest rates; that these reduced costs and increased returns for state and local governments will benefit taxpayers and ratepayers; and that the legislature desires to provide state and local governments with express statutory authority to take advantage of these instruments. In recognition of the complexity of these financial instruments, the legislature desires that this authority be subject to certain limitations, and be granted for an initial period of two years.

      NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

      (1) "Financial advisor" means a financial services or financial advisory firm:

      (a) With recognized knowledge and experience in connection with the negotiation and execution of payment agreements;

      (b) That is acting solely as financial advisor to the governmental entity in connection with the execution of the payment agreement and the issuance or incurring of any related obligations, and not as a principal, placement agent, purchaser, underwriter, or other similar party, and that does not control, nor is it controlled by or under common control with, any such party;

      (c) That is compensated for its services in connection with the execution of payment agreements, either directly or indirectly, solely by the governmental entity; and

      (d) Whose compensation is not based on a percentage of the notional amount of the payment agreement or of the principal amount of any related obligations.

      (2) "Governmental entity" means state government or local government.

      (3) "Local government" means any city, county, port district, or public utility district, or any joint operating agency formed under RCW 43.52.360, that has or will have outstanding obligations in an aggregate principal amount of at least one hundred million dollars as of the date a payment agreement is executed or is scheduled by its terms to commence or had at least one hundred million dollars in gross revenues during the preceding calendar year.

      (4) "Obligations" means bonds, notes, bond anticipation notes, commercial paper, or other obligations for borrowed money, or lease, installment purchase, or other similar financing agreements or certificates of participation in such agreements.

      (5) "Payment agreement" means a written agreement which provides for an exchange of payments based on interest rates, or for ceilings or floors on these payments, or an option on these payments, or any combination, entered into on either a current or forward basis.

      (6) "State government" means (a) the state of Washington, acting by and through its state finance committee, (b) the Washington health care facilities authority, (c) the Washington higher education facilities authority, (d) the Washington state housing finance commission, or (e) the state finance committee upon adoption of a resolution approving a payment agreement on behalf of any state institution of higher education as defined under RCW 28B.10.016: PROVIDED, That such approval shall not constitute the pledge of the full faith and credit of the state, but a pledge of only those funds specified in the approved agreement.

      NEW SECTION. Sec. 3. AUTHORITY TO ENTER INTO PAYMENT AGREEMENTS. (1) Subject to subsections (2) and (3) of this section, any governmental entity may enter into a payment agreement in connection with, or incidental to, the issuance, incurring, or carrying of specific obligations, for the purpose of managing or reducing the governmental entity's exposure to fluctuations or levels of interest rates. No governmental entity may carry on a business of acting as a dealer in payment agreements.

      (2) No governmental entity may enter into a payment agreement under this chapter unless it first:

      (a) Finds and determines, by ordinance or resolution, that the payment agreement, if fully performed by all parties thereto, will (i) reduce the amount or duration of its exposure to changes in interest rates; or (ii) result in a lower net cost of borrowing with respect to the related obligations, or a higher net rate of return on investments made in connection with, or incidental to, the issuance, incurring, or carrying of those obligations;

      (b) Obtains, on or prior to the date of execution of the payment agreement, a written certification from a financial advisor that (i) the terms and conditions of the payment agreement and any ancillary agreements, including without limitation, the interest rate or rates and any other amounts payable thereunder, are commercially reasonable in light of then existing market conditions; and (ii) the finding and determination contained in the ordinance or resolution required by (a) of this subsection is reasonable.

      (3) Prior to selecting the other party to a payment agreement, a governmental entity shall solicit and give due consideration to proposals from at least two entities that meet the criteria set forth in section 4(2) of this act. Such solicitation and consideration shall be conducted in such manner as the governmental entity shall determine is reasonable.

      NEW SECTION. Sec. 4. PAYMENT AGREEMENTS--TERMS. (1) Subject to subsections (2), (3), and (4) of this section, payment agreements entered into by any governmental entity may include those payment, term, security, default, remedy, termination, and other terms and conditions, and may be with those parties, as the governmental entity deems reasonably necessary or desirable.

      (2) No governmental entity may enter into a payment agreement under this chapter unless:

      (a) The other party to the agreement has a rating from at least two nationally recognized credit rating agencies, as of the date of execution of the agreement, that is within the two highest long-term investment grade rating categories, without regard to subcategories, or the payment obligations of the party under the agreement are unconditionally guaranteed by an entity that then has the required ratings; or

      (b)(i) The other party to the agreement has a rating from at least two nationally recognized credit rating agencies, as of the date of execution of the agreement, that is within the three highest long-term investment grade rating categories, without regard to subcategories, or the payment obligations of the party under the agreement are unconditionally guaranteed by an entity that has the required ratings; and

      (ii) The payment obligations of the other party under the agreement are collateralized by direct obligations of, or obligations the principal and interest on which are guaranteed by, the United States of America, that (A) are deposited with the governmental entity or an agent of the governmental entity; and (B) maintain a market value of not less than one hundred two percent of the net market value of the payment agreement to the governmental entity, as such net market value may be defined and determined from time to time under the terms of the payment agreement.

      (3) No governmental entity may enter into a payment agreement with a party who qualifies under subsection (2)(a) of this section unless the payment agreement provides that, in the event the credit rating of the other party or its guarantor falls below the level required by subsection (2)(a) of this section, such party will comply with the collateralization requirements contained in subsection (2)(b) of this section.

      (4) No governmental entity may enter into a payment agreement unless:

      (a) The notional amount of the payment agreement does not exceed the principal amount of the obligations with respect to which the payment agreement is made; and

      (b) The term of the payment agreement does not exceed the final term of the obligations with respect to which the payment agreement is made.

      NEW SECTION. Sec. 5. PAYMENT AGREEMENTS--PAYMENTS--CREDIT ENHANCEMENTS. (1) Subject to any covenants or agreements applicable to the obligations issued or incurred by the governmental entity, any payments required to be made by the governmental entity under a payment agreement entered into in connection with the issuance, incurring, or carrying of those obligations may be made from money set aside or pledged to pay or secure the payment of those obligations or from any other legally available source.

      (2) Any governmental entity may enter into credit enhancement, liquidity, line of credit, or other similar agreements in connection with, or incidental to, the execution of a payment agreement. The credit enhancement, liquidity, line of credit, or other similar agreement may include those payment, term, security, default, remedy, termination, and other terms and conditions, and may be with those parties, as the governmental entity deems reasonably necessary or desirable.

      NEW SECTION. Sec. 6. CALCULATIONS REGARDING PAYMENT OF OBLIGATIONS--STATUS OF PAYMENTS. (1) Subject to any covenants or agreements applicable to the obligations issued or incurred by the governmental entity, if the governmental entity enters into a payment agreement with respect to those obligations, then it may elect to treat the amounts payable from time to time with respect to those obligations as the amounts payable after giving effect to the payment agreement for the purposes of calculating:

      (a) Rates and charges to be imposed by a revenue-producing enterprise if the revenues are pledged or used to pay those obligations;

      (b) Any taxes to be levied and collected to pay those obligation; and

      (c) Payments or debt service on those obligations for any other purpose.

      (2) A payment agreement and any obligation of the governmental entity to make payments under the agreement in future fiscal years shall not constitute debt or indebtedness of the governmental entity for purposes of state constitutional and statutory debt limitation provisions if the obligation to make any payments is contingent upon the performance of the other party or parties to the agreement, and no moneys are paid to the governmental entity under the payment agreement that must be repaid in future fiscal years.

      NEW SECTION. Sec. 7. EXPIRATION DATE--VALIDITY OF CONTRACTS. (1) Except as provided in subsection (3) of this section, no governmental entity may enter a payment agreement under section 3 of this act after June 30, 1995.

      (2) The termination of authority to enter payment agreements after June 30, 1995, shall not affect the validity of any payment agreements or other contracts entered into under section 3 of this act on or before that date.

      (3) A governmental entity may enter into a payment agreement under and in accordance with this chapter after June 30, 1995, to replace a payment agreement that relates to specified obligations issued on or before that date and that has terminated before the final term of those obligations.

      (4) The state finance committee shall make a report to the appropriate legislative committees on payment agreements authorized in this act. The report shall include the governmental entity entering into a payment agreement, the amount of the agreement, the expected savings resulting from the agreement, the transactions cost, and any other information the state finance committee determines relevant. The report shall be submitted on November 30, 1993, and December 30, 1994.

      NEW SECTION. Sec. 8. AUTHORITY CUMULATIVE. The powers conferred by this chapter are in addition to, and not in substitution for, the powers conferred by any existing law, and the limitations imposed by this chapter do not directly or indirectly modify, limit, or affect the powers conferred by any existing law.

      NEW SECTION. Sec. 9. LIBERAL CONSTRUCTION. This chapter shall be liberally construed to effect its purposes.

      NEW SECTION. Sec. 10. CAPTIONS. Captions used in this chapter do not constitute any part of the law.

      NEW SECTION. Sec. 11. SEVERABILITY. 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. 12. LEGISLATIVE DIRECTIVE. Sections 1 through 11 of this act shall constitute a new chapter in Title 39 RCW.

      NEW SECTION. Sec. 13. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.", 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. 5837.

     The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5837, as amended by the House.


ROLL CALL


     The Secretary called the roll on the final passage of Substitute Senate Bill No. 5837, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 1; Absent, 1; Excused, 4.

     Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 43.

     Voting nay: Senator Anderson - 1.

     Absent: Senator McDonald - 1.

     Excused: Senators Moore, Niemi, Sheldon and Wojahn - 4.

     SUBSTITUTE SENATE BILL NO. 5837, 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 SENATE BILL NO. 5875 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 38.08.040 and 1989 c 19 s 7 are each amended to read as follows:

      In event of war, insurrection, rebellion, invasion, tumult, riot, mob, or organized body acting together by force with intent to commit a felony or to offer violence to persons or property, or by force and violence to break and resist the laws of this state, or the United States, or in case of the imminent danger of the occurrence of any of said events, or at the lawful request of competent state or local authority in support of enforcement of controlled substance statutes, or whenever responsible civil authorities shall, for any reason, fail to preserve law and order, or protect life or property, or the governor believes that such failure is imminent, or in event of public disaster, the governor shall have power to order the organized militia of Washington, or any part thereof, into active service of the state to execute the laws, and to perform such duty as the governor shall deem proper.

      NEW SECTION. Sec. 2. A new section is added to chapter 38.08 RCW to read as follows:

      (1) The governor, with the consent of congress, is authorized to enter into compacts and agreements for the deployment of the national guard with governors of other states concerning drug interdiction, counter-drug, and demand reduction activities. Article 1, Section 10 of the Constitution of the United States permits a state to enter into a compact or agreement with another state, subject to the consent of congress. Congress, through enactment of Title 4 of the U.S.C. Section 112, encourages the states to enter such compacts for cooperative effort and mutual assistance.

      (2) The compact language contained in this subsection is intended to deal comprehensively with the supportive relationships between states in utilizing national guard assets in counter-drug activities.


NATIONAL GUARD MUTUAL ASSISTANCE

COUNTER-DRUG ACTIVITIES COMPACT


ARTICLE I

PURPOSE


      The purposes of this compact are to:

      (a) Provide for mutual assistance and support among the party states in the utilization of the national guard in drug interdiction, counter-drug, and demand reduction activities.

      (b) Permit the national guard of this state to enter into mutual assistance and support agreements, on the basis of need, with one or more law enforcement agencies operating within this state, for activities within this state, or with a national guard of one or more other states, whether said activities are within or without this state in order to facilitate and coordinate efficient, cooperative enforcement efforts directed toward drug interdiction, counter-drug activities, and demand reduction.

      (c) Permit the national guard of this state to act as a receiving and a responding state as defined within this compact and to ensure the prompt and effective delivery of national guard personnel, assets, and services to agencies or areas that are in need of increased support and presence.

      (d) Permit and encourage a high degree of flexibility in the deployment of national guard forces in the interest of efficiency.

      (e) Maximize the effectiveness of the national guard in those situations that call for its utilization under this compact.

      (f) Provide protection for the rights of national guard personnel when performing duty in other states in counter-drug activities.

      (g) Ensure uniformity of state laws in the area of national guard involvement in interstate counter-drug activities by incorporating said uniform laws within the compact.


ARTICLE II

ENTRY INTO FORCE AND WITHDRAWAL


      (a) This compact shall enter into force when enacted into law by any two states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof.

      (b) Any party state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until one year after the governor of the withdrawing state has given notice in writing of such withdrawal to the governors of all other party states.


ARTICLE III

MUTUAL ASSISTANCE AND SUPPORT


      (a) As used in this article:

      (1) "Drug interdiction and counter-drug activities" means the use of national guard personnel, while not in federal service, in any law enforcement support activities that are intended to reduce the supply or use of illegal drugs in the United States. These activities include, but are not limited to:

      (i) Providing information obtained during either the normal course of military training or operations or during counter-drug activities, to federal, state, or local law enforcement officials that may be relevant to a violation of any federal or state law within the jurisdiction of such officials;

      (ii) Making available any equipment, including associated supplies or spare parts, base facilities, or research facilities of the national guard to any federal, state, or local civilian law enforcement official for law enforcement purposes, in accordance with other applicable law or regulation;

      (iii) Providing available national guard personnel to train federal, state, or local civilian law enforcement in the operation and maintenance of equipment, including equipment made available above, in accordance with other applicable law;

      (iv) Providing available national guard personnel to operate and maintain equipment provided to federal, state, or local law enforcement officials pursuant to activities defined and referred to in this compact;

      (v) Operation and maintenance of equipment and facilities of the national guard or law enforcement agencies used for the purposes of drug interdiction and counter-drug activities;

      (vi) Providing available national guard personnel to operate equipment for the detection, monitoring, and communication of the movement of air, land, and sea traffic, to facilitate communications in connection with law enforcement programs, to provide transportation for civilian law enforcement personnel, and to operate bases of operations for civilian law enforcement personnel;

      (vii) Providing available national guard personnel, equipment, and support for administrative, interpretive, analytic, or other purposes;

      (viii) Providing available national guard personnel and equipment to aid federal, state, and local officials and agencies otherwise involved in the prosecution or incarceration of individuals processed within the criminal justice system who have been arrested for criminal acts involving the use, distribution, or transportation of controlled substances as defined in 21 U.S.C. Sec. 801 et seq., or otherwise by law, in accordance with other applicable law.

      (2) "Demand reduction" means providing available national guard personnel, equipment, support, and coordination to federal, state, local, and civic organizations, institutions and agencies for the purposes of the prevention of drug abuse and the reduction in the demand for illegal drugs.

      (3) "Requesting state" means the state whose governor requested assistance in the area of counter-drug activities.

      (4) "Responding state" means the state furnishing assistance, or requested to furnish assistance, in the area of counter-drug activities.

      (5) "Law enforcement agency" means a lawfully established federal, state, or local public agency that is responsible for the prevention and detection of crime and the enforcement of penal, traffic, regulatory, game, immigration, postal, customs, or controlled substances laws.

      (6) "Official" means the appointed, elected, designated, or otherwise duly selected representative of an agency, institution, or organization authorized to conduct those activities for which support is requested.

      (7) "Mutual assistance and support agreement" or "agreement" means an agreement between the national guard of this state and one or more law enforcement agencies or between the national guard of this state and the national guard of one or more other states, consistent with the purposes of this compact

      (8) "Party state" refers to a state that has lawfully enacted this compact.

      (9) "State" means each of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a territory or possession of the United States.

      (b) Upon the request of a governor of a party state for assistance in the area of interdiction and counter-drug, and demand reduction activities, the governor of a responding state shall have authority under this compact to send without the borders of his or her state and place under the temporary operational control of the appropriate national guard or other military authorities of the requesting state, for the purposes of providing such requested assistance, all or any part of the national guard forces of his or her state as he or she may deem necessary, and the exercise of his or her discretion in this regard shall be conclusive.

      (c) The governor of a party state may, within his or her discretion, withhold the national guard forces of his or her state from such use and recall any forces or part or member thereof previously deployed in a requesting state.

      (d) The national guard of this state is hereby authorized to engage in interdiction and counter-drug activities and demand reduction.

      (e) The adjutant general of this state, in order to further the purposes of this compact, may enter into a mutual assistance and support agreement with one or more law enforcement agencies of this state, including federal law enforcement agencies operating within this state, or with the national guard of one or more other party states to provide personnel, assets, and services in the area of interdiction and counter-drug activities and demand reduction. However, no such agreement may be entered into with a party that is specifically prohibited by law from performing activities that are the subject of the agreement.

      (f) The agreement must set forth the powers, rights, and obligations of the parties to the agreement, where applicable, as follows:

      (1) Its duration;

      (2) The organization, composition, and nature of any separate legal entity created thereby;

      (3) The purpose of the agreement;

      (4) The manner of financing the agreement and establishing and maintaining its budget;

      (5) The method to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon such partial or complete termination;

      (6) Provision for administering the agreement, which may include creation of a joint board responsible for such administration;

      (7) The manner of acquiring, holding, and disposing of real and personal property used in this agreement, if necessary;

      (8) The minimum standards for national guard personnel implementing the provisions of this agreement;

      (9) The minimum insurance required of each party to the agreement, if necessary;

      (10) The chain of command or delegation of authority to be followed by national guard personnel acting under the provisions of the agreement;

      (11) The duties and authority that the national guard personnel of each party state may exercise; and

      (12) Any other necessary and proper matters.

      Agreements prepared under the provisions of this section are exempt from any general law pertaining to intergovernmental agreements.

      (g) As a condition precedent to an agreement becoming effective under this part, the agreement must be submitted to and receive the approval of the office of the attorney general of Washington. The attorney general of the state of Washington may delegate his or her approval authority to the appropriate attorney for the Washington national guard subject to those conditions which he or she decides are appropriate. The delegation must be in writing and is subject to the following:

      (1) The attorney general, or his or her agent as stated above, shall approve an agreement submitted to him or her under this part unless he or she finds that it is not in proper form, does not meet the requirements set forth in this part, or otherwise does not conform to the laws of Washington. If the attorney general disapproves an agreement, he or she shall provide a written explanation to the adjutant general of the Washington national guard; and

      (2) If the attorney general, or his or her authorized agent as stated above, does not disapprove an agreement within thirty days after its submission to him or her, it is considered approved by him or her.

      (h) Whenever national guard forces of any party state are engaged in the performance of duties, in the area of drug interdiction, counter-drug, and demand reduction activities, pursuant to orders, they shall not be held personally liable for any acts or omissions which occur during the performance of their duty.


ARTICLE IV

RESPONSIBILITIES


      (a) Nothing in this compact shall be construed as a waiver of any benefits, privileges, immunities, or rights otherwise provided for national guard personnel performing duty pursuant to Title 32 of the United States Code nor shall anything in this compact be construed as a waiver of coverage provided for under the Federal Tort Claims Act. In the event that national guard personnel performing counter-drug activities do not receive rights, benefits, privileges, and immunities otherwise provided for national guard personnel as stated above, the following provisions shall apply:

      (1) Whenever national guard forces of any responding state are engaged in another state in carrying out the purposes of this compact, the members thereof so engaged shall have the same powers, duties, rights, privileges, and immunities as members of national guard forces of the requesting state. The requesting state shall save and hold members of the national guard forces of responding states harmless from civil liability, except as otherwise provided herein, for acts or omissions that occur in the performance of their duty while engaged in carrying out the purposes of this compact, whether responding forces are serving the requesting state within the borders of the responding state or are attached to the requesting state for purposes of operational control.

      (2) Subject to the provisions of paragraphs (3), (4), and (5) of this Article, all liability that may arise under the laws of the requesting state or the responding states, on account of or in connection with a request for assistance or support, shall be assumed and borne by the requesting state.

      (3) Any responding state rendering aid or assistance pursuant to this compact shall be reimbursed by the requesting state for any loss or damage to, or expense incurred in the operation of, any equipment answering a request for aid, and for the cost of the materials, transportation, and maintenance of national guard personnel and equipment incurred in connection with such request, provided that nothing herein contained shall prevent any responding state from assuming such loss, damage, expense, or other cost.

      (4) Unless there is a written agreement to the contrary, each party state shall provide, in the same amounts and manner as if they were on duty within their state, for pay and allowances of the personnel of its national guard units while engaged without the state pursuant to this compact and while going to and returning from such duty pursuant to this compact.

      (5) Each party state providing for the payment of compensation and death benefits to injured members and the representatives of deceased members of its national guard forces in case such members sustain injuries or are killed within their own state shall provide for the payment of compensation and death benefits in the same manner and on the same terms in the event such members sustain injury or are killed while rendering assistance or support pursuant to this compact. Such benefits and compensation shall be deemed items of expense reimbursable pursuant to paragraph (3) of this Article.

      (b) Officers and enlisted personnel of the national guard performing duties subject to proper orders pursuant to this compact shall be subject to and governed by the provisions of their home state code of military justice whether they are performing duties within or without their home state. In the event that any national guard member commits, or is suspected of committing, a criminal offense while performing duties pursuant to this compact without his or her home state, he or she may be returned immediately to his or her home state and said home state shall be responsible for any disciplinary action to be taken. However, nothing in this section shall abrogate the general criminal jurisdiction of the state in which the offense occurred.


ARTICLE V

DELEGATION