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FIFTY-EIGHTH DAY

__________


MORNING SESSION


_________


House Chamber, Olympia, Tuesday, March 8, 1994


             The House was called to order at 8:30 a.m. by the Speaker (Representative Kremen presiding). The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Jeremy Swanson and Riann Givens. Prayer was offered by Representative Linville.


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

 

MESSAGES FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2605. The President has appointed the following members as Conferees; Senators Bauer, Prince and Drew

and the same is herewith transmitted.

Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2741. The President has appointed the following members as Conferees; Senators Hargrove, Morton and Spanel

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 2190. The President has appointed the following members as Conferees: Senators Prentice, Amondson and Pelz

and the same is herewith transmitted.


Marty Brown, Secretary

March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 2760. The President has appointed the following members as Conferees; Senators Vognild, Prince and Drew

and the same is herewith transmitted.


Marty Brown, Secretary


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


RESOLUTION


             HOUSE RESOLUTION NO. 94-4708, by Representatives Brumsickle and Chappell


             WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and

             WHEREAS, The Rochester High School Warriors Baseball Team exhibited the highest level of excellence in winning the 1993 Washington State High School Baseball "A" Championship; and

             WHEREAS, The Rochester High School Warriors Baseball Team players compiled a 19-6 overall record for the 1993 season; and

             WHEREAS, The Rochester High School Warriors Baseball Team were also the 1993 Academic State Champions with a 3.766 GPA, the third time in the past five years they have won this distinction; and

             WHEREAS, The Rochester High School Warriors Baseball Team demonstrated amazing skill and admirable sportsmanship in achieving this outstanding accomplishment; and

             WHEREAS, Had Coach Larry Heinz, and Assistant Coach Bob Wollan, and all the players including Brion Douglas, Chris Hamilton, Tony Hawes, Ryan Holman, Bill Kenelty, Matt Kirpes, Willy Kytta, Ron Murphy, Aaron Norquist, Justin Rotter, Steve Taylor, Tony Wagner, Brandon Wolslegel, Colin Wolslegel, Ben Scott, and Nicole Sharp, share in the Rochester High School Warriors Baseball Team's success by combining outstanding coaching with outstanding playing; and

             WHEREAS, All these extraordinary accomplishments could not have been achieved without the support and encouragement of all the students, cheerleaders, band members, faculty, staff, alumni, families, friends, community members, and fans who backed them all the way; and

             WHEREAS, The inspiring individual and team achievements of the 1993 Rochester High School Warriors Baseball Team will always be remembered when commemorating their winning year; and

             WHEREAS, The victorious Rochester High School Warriors Baseball Team is a source of great pride to all the citizens of the State of Washington;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the State of Washington honor the 1993 Rochester High School Warriors Baseball Team; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the 1993 Rochester High School Warriors Baseball Team Head Coach, Larry Heinz, and the Principal of Rochester High School, Dean Noffziger.


             Representative Brumsickle moved adoption of the resolution. Representative Brumsickle spoke in favor of the resolution.


             House Resolution No. 4708 was adopted.


MESSAGES FROM THE SENATE



March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 2347. The President has appointed the following members as Conferees; Senators Sutherland, Hochstatter and Owen

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


March 7, 1994


Mr. Speaker:


             The Senate has concurred in the House amendments to the following Senate bills and passed the bills as amended by the House:


ENGROSSED SENATE BILL NO. 6057,

SUBSTITUTE SENATE BILL NO. 6081,

SUBSTITUTE SENATE BILL NO. 6143,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6426,

ENGROSSED SENATE BILL NO. 6601,

and the same are herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SECOND ENGROSSED SUBSTITUTE HOUSE BILL NO. 1471. The President has appointed the following members as Conferees; Senators Snyder, L. Smith and Owen

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


March 7, 1994


Mr. Speaker:


             The Senate has passed:


SUBSTITUTE HOUSE BILL NO. 2646,

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The President has signed:


SUBSTITUTE HOUSE BILL NO. 1122,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1182,

SUBSTITUTE HOUSE BILL NO. 2235,

HOUSE BILL NO. 2275,

HOUSE BILL NO. 2645,

and the same are herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6255. The President has appointed the following members as Conferees Senators Hargrove, Nelson and Wojahn

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 2270. The President has appointed the following members as Conferees; Senators A. Smith, Nelson and Ludwig

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2237. The President has appointed the following members as Conferees; Senators Quigley, West and Snyder

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2510. The President has appointed the following members as Conferees; Senators Moore, Anderson and Sheldon

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2663. The President has appointed the following members as Conferees; Senators Rinehart, McDonald and Owen

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE SENATE BILL NO. 6547. The President has appointed the following members as Conferees; Senators Niemi, Deccio and Sheldon

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 1242. The President has appointed the following members as Conferees; Senators Prentice, Newhouse and Vognild

and the same is herewith transmitted.


Marty Brown, Secretary


             The Speaker assumed the chair.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 2616, with the following amendments:


             On page 6, after line 26, insert the following:


             "Sec. 6. RCW 70.105D.020 and 1989 c 2 s 2 are each amended to read as follows:

             (1) "Department" means the department of ecology.

             (2) "Director" means the director of ecology or the director's designee.

             (3) "Facility" means (a) any building, structure, installation, equipment, pipe or pipeline (including any pipe into a sewer or publicly owned treatment works), well, pit, pond, lagoon, impoundment, ditch, landfill, storage container, motor vehicle, rolling stock, vessel, or aircraft, or (b) any site or area where a hazardous substance, other than a consumer product in consumer use, has been deposited, stored, disposed of, or placed, or otherwise come to be located.

             (4) "Federal cleanup law" means the federal comprehensive environmental response, compensation, and liability act of 1980, 42 U.S.C. Sec. 9601 et seq., as amended by Public Law 99-499.

             (5) "Hazardous substance" means:

             (a) Any dangerous or extremely hazardous waste as defined in RCW 70.105.010 (5) and (6), or any dangerous or extremely dangerous waste designated by rule pursuant to chapter 70.105 RCW;

             (b) Any hazardous substance as defined in RCW 70.105.010(14) or any hazardous substance as defined by rule pursuant to chapter 70.105 RCW;

             (c) Any substance that, on March 1, 1989, is a hazardous substance under section 101(14) of the federal cleanup law, 42 U.S.C. Sec. 9601(14);

             (d) Petroleum or petroleum products; and

             (e) Any substance or category of substances, including solid waste decomposition products, determined by the director by rule to present a threat to human health or the environment if released into the environment.

             The term hazardous substance does not include any of the following when contained in an underground storage tank from which there is not a release: Crude oil or any fraction thereof or petroleum, if the tank is in compliance with all applicable federal, state, and local law.

             (6) "Owner or operator" means:

             (a) Any person with any ownership interest in the facility or who exercises any control over the facility; or

             (b) In the case of an abandoned facility, any person who had owned, or operated, or exercised control over the facility any time before its abandonment;

             The term does not include:

             (i) An agency of the state or unit of local government which acquired ownership or control involuntarily through bankruptcy, tax delinquency, abandonment, or circumstances in which the government involuntarily acquires title. This exclusion does not apply to an agency of the state or unit of local government which has caused or contributed to the release or threatened release of a hazardous substance from the facility; or

             (ii) A person who, without participating in the management of a facility, holds indicia of ownership primarily to protect the person's security interest in the facility.

             (7) "Person" means an individual, firm, corporation, association, partnership, consortium, joint venture, commercial entity, state government agency, unit of local government, federal government agency, or Indian tribe.

             (8) "Potentially liable person" means any person whom the department finds, based on credible evidence, to be liable under RCW 70.105D.040. The department shall give notice to any such person and allow an opportunity for comment before making the finding, unless an emergency requires otherwise.

             (9) "Public notice" means, at a minimum, adequate notice mailed to all persons who have made timely request of the department and to persons residing in the potentially affected vicinity of the proposed action; mailed to appropriate news media; published in the newspaper of largest circulation in the city or county of the proposed action; and opportunity for interested persons to comment.

             (10) "Release" means any intentional or unintentional entry of any hazardous substance into the environment, including but not limited to the abandonment or disposal of containers of hazardous substances.

             (11) "Remedy" or "remedial action" means any action or expenditure consistent with the purposes of this chapter to identify, eliminate, or minimize any threat or potential threat posed by hazardous substances to human health or the environment including any investigative and monitoring activities with respect to any release or threatened release of a hazardous substance and any health assessments or health effects studies conducted in order to determine the risk or potential risk to human health. These terms also include the provision of drinking water, including the construction of necessary delivery systems, when undertaken to minimize any threat or potential threat to human health posed by a facility at which a release of a hazardous substance has occurred.


             NEW SECTION. Sec. 7. A new section is added to chapter 70.105D RCW to read as follows:

             For the purpose of conducting a remedial action or requiring potentially liable persons to take remedial action under this chapter, and for the purpose of making grants for remedial actions from the local toxics control account, the department shall give a high priority to facilities where the release of hazardous substances has resulted in the closing of drinking water wells or has contaminated a principal drinking water supply, or a substantial threat exists that such a closure or contamination may occur."


             On page 1, line 2 of the title, strike "and 70.105D.070" and insert ", 70.105D.070, and 70.105D.020"


             On page 1, line 2 of the title, after "70.119A RCW;" insert "adding a new section to chapter 70.105D RCW;"

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


POINT OF ORDER


             Representative Rust requested a ruling on the scope and object of the Senate amendments to Second Substitute House Bill No. 2616.


             With the consent of the House, the House deferred further consideration of Second Substitute House Bill No. 2616.


             With the consent of the House, the House resumed consideration of Engrossed Second Substitute House Bill No. 2319.


SPEAKER'S RULING


             The Speaker has examined the House Title of Engrossed Second Substitute House Bill No. 2319, which is an act relating to violence prevention. The Senate amendment to the title of the bill deletes the word "prevention". While it appears that this was an inadvertent error in drafting, the Speaker finds that this amendment does violate House Rule 11(G) and therefore that the point of order as to the title amendment is well taken.


SPEAKER'S RULING


             As to the second point of order, the Senate striking amendment includes provisions that rename the "Drug Enforcement and Education Account" the "Violence Reduction and Drug Enforcement Account" and reauthorize and modify taxes to fund the account. The name change is not merely cosmetic, but reflects its use for numerous purposes integrated throughout the act. Under section 811 of the Senate amendment, numerous sections of the amendment are null and void if the tax provisions are referred to the voters and rejected. These include penalties for firearms violations, juvenile decline procedures, penalties for juvenile offenses, and vocational training in juvenile institutions. Many of the same or similar provisions were in the original House Bill as introduced at the request of Governor Lowry -- before the House divided the subject into several substitute bills.

             Moreover, the House Bill as it passed the House includes a subpart entitled "Drug, alcohol, and violence prevention and intervention program." Section 217 of the Engrossed Second Substitute specifically finds that the Legislature intends to expand the current alcohol and drug abuse prevention and intervention program to include violence prevention and intervention. Sections 218 and 219 expand the use of funds for programs from the drug account.

             Therefore, based on the broad scope and broad title of the original House Bill as introduced and based on the expanded use of the drug account for violence prevention in the bill, the Speaker finds that the Senate striking amendment is within the scope and object of the bill and that the point of order is not well taken.


MOTION


             Representative Rust moved that the House not concur in the Senate amendments to Engrossed Second Substitute House Bill No. 2319. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Appelwick, Morris and Padden as Conferees on Engrossed Second Substitute House Bill No. 2319.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2480 with the following amendments:


             On page 1, after line 8, insert the following:


             "NEW SECTION. Sec. 2. A new section is added to chapter 75.20 RCW to read as follow:

             Local governments shall not charge taxes or permit fees for fish enhancement projects that are proposed by state agencies, cooperative groups, and regional fisheries enhancement groups."


             On page 1, line 2 of the title, after "RCW;" insert "adding a new section to chapter 75.20 RCW;"

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Holm moved that the House not concur in the Senate amendments to House Bill No. 2480 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Holm, G. Fisher and Foreman as Conferees on House Bill No. 2480.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 5061, and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Hargrove, Nelson and Fraser

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Johanson moved that the House grant the request of the Senate for a conference on Engrossed Substitute Senate Bill No. 5061. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Appelwick, Johanson and Ballasiotes as Conferees on Engrossed Substitute Senate Bill No. 5061.


MESSAGE FROM THE SENATE


March 6, 1994


Mr.Speaker:


             The Senate refuses to concur in the House amendments to SECOND SUBSTITUTE SENATE BILL NO. 5372 and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Haugen, Winsley and Loveland

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Holm moved that the House grant the request of the Senate for a conference on Second Substitute Senate Bill No. 5372. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives H. Myers, Holm and Van Luven as Conferees on Second Substitute Senate Bill No. 5372.


MESSAGE FROM THE SENATE


March 6, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SENATE BILL NO. 6438 and asks the House to recede therefrom.

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Cothern moved that the House insist on its position regarding the House amendments to Senate Bill No. 6438 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Dorn, Jones and Brough as Conferees on Senate Bill No. 6438.

MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SENATE BILL NO. 6074 and asks the House to recede therefrom.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Cothern moved that the House insist on its position regarding the House amendments to Senate Bill No. 6074 and ask the Senate for a conference thereon.


MOTION


             Representative Brough moved that the House receded from its amendments to Senate Bill No. 6074, and pass the bill without the House amendments.


             The Speaker stated the question before the House to be the motion by Representative Brough to recede from the House amendments and pass the bill without the House amendments to Senate Bill No. 6074.


             Representatives Brough and Dorn spoke in favor of the motion and Representative Cothern spoke against it. The motion was not carried.


             The Speaker stated the question before the House to be the motion by Representative Cothern to insist and ask the Senate for a conference thereon to Senate Bill No. 6074. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Dorn, Cothern and Brough as Conferees on Senate Bill No. 6074.


SENATE AMENDMENTS TO HOUSE BILL


March 3, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2850, with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 28A.300.138 and 1993 c 336 s 301 are each amended to read as follows:

             (1) To the extent funds are appropriated, the office of the superintendent of public instruction shall provide student learning improvement grants for the 1994-95 through 1996-97 school years. The purpose of the grants is to provide funds for additional time and resources for staff development and planning intended to improve student learning for all students, including students with diverse needs, consistent with the student learning goals in RCW 28A.150.210.

             (2) To be eligible for student learning improvement grants, school district boards of directors shall:

             (a) Adopt a policy regarding the sharing of instructional decisions with school staff, parents, and community members;

             (b) Submit school-based applications that have been developed by school building personnel, parents, and community members. Each application shall:

             (i) Enumerate specific activities to be carried out as part of the grant;

             (ii) Identify the technical resources desired and availability of those resources;

             (iii) Include a proposed budget; and

             (iv) Indicate that the application was approved by the school principal and representatives of teachers, parents, and the community.

             (3) The school board shall conduct at least one public hearing on schools' plans for using the grants before the board approves the plans. Boards may hear and approve more than one school's plan at a hearing. The board shall only submit applications for grants to the superintendent of public instruction if the board has approved the plans.

             (4) If the requirements of subsections (2) and (3) of this section are met, the superintendent of public instruction shall approve the grant application.

             (5) To the extent funds are appropriated, and for allocation purposes only, the amount of grants for the 1994-95, 1995-96, and 1996-97 school years shall be based on time equivalent to ((no fewer than three days and not more than five days)) up to four days depending upon the number of grant applications received and on the number of full-time equivalent certificated staff((, classified instructional aides, and classified secretaries)) who work in the school ((at the time of application. For the 1995-96 and 1996-97 school years, the equivalent of five days annually shall be provided. The allocation per full-time equivalent staff shall be determined in the biennial operating appropriations act)). Funds from the grant may be used to pay for planning and staff development for certificated and classified staff and for other activities consistent with the purpose of the grant program. Activities conducted pursuant to this section also may be conducted during the months of July and August preceding each school year for which the school has received a grant. Expenses occurring as a result of these summer activities may be paid from the school year grant. School districts shall use all funds received under this section solely for grants to schools and shall not use any portion of the funds for indirect costs.

             (6) The state schools for the deaf and blind may apply for grants under this section.

             (7) The superintendent of public instruction shall adopt timelines and rules as necessary under chapter 34.05 RCW to administer the program. The superintendent may modify application requirements for schools that have schools for the twenty-first century projects under RCW 28A.630.100. ((A copy of the proposed rules shall be submitted to the joint select committee on education restructuring established in RCW 28A.630.950 at least forty-five days prior to adoption of the rules.))

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


             Sec. 2. RCW 28A.650.015 and 1993 c 336 s 703 are each amended to read as follows:

             (1) The superintendent of public instruction, to the extent funds are appropriated, shall develop and implement a Washington state K-12 education technology plan. The technology plan, which shall be completed by ((December 15, 1993)) September 1, 1994, and updated on at least a biennial basis, shall be developed to coordinate and expand the use of education technology in the common schools of the state. The plan shall be consistent with applicable provisions of chapter 43.105 RCW. The plan, at a minimum, shall address:

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

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

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

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


             Sec. 3. 1993 c 336 s 704 (uncodified) is amended to read as follows:

             In conjunction with the plan required in section 703 of this act, the superintendent of public instruction shall prepare recommendations to the legislature regarding the development of a grant program for school districts for the purchase and installation of computers, computer software, telephones, and other types of education technology. The recommendations shall address methods to ensure equitable access to technology by students throughout the state, and methods to ensure that school districts have prepared technology implementation plans before applying for grant funds. The recommendations, with proposed legislation, shall be submitted to the appropriate committees of the legislature by ((December 15, 1993)) September 1, 1994.


             Sec. 4. RCW 28A.630.952 and 1993 c 336 s 1003 are each amended to read as follows:

             (1) In addition to the duties in RCW 28A.630.951, the joint select committee on education restructuring shall review all laws pertaining to K-12 public education and to educator preparation and certification((, except those that protect the health, safety, and civil rights of students and staff,)) with the intent of identifying laws that inhibit the achievement of the new system of performance-based education. The select committee shall report to the legislature by November 15, 1994. The laws pertaining to home schooling and private schools shall not be reviewed in this study.

             (2) The joint select committee on education restructuring shall review current school district data reporting requirements for the purposes of accountability and meeting state information needs. The joint select committee shall report to the legislature by January ((1995)) 1996 on:

             (a) What data is necessary to compare how school districts are performing before the essential academic learning requirements and the assessment system are implemented with how school districts are performing after the essential academic learning requirements and the assessment system are implemented; and

             (b) What data is necessary pertaining to school district reports under the accountability systems developed by the commission on student learning under RCW 28A.630.885(3)(h).


             Sec. 5. RCW 28A.170.060 and 1989 c 271 s 113 are each amended to read as follows:

             The superintendent of public instruction((, through the state clearinghouse for education information,)) shall collect and disseminate to all school districts and other interested parties information about effective substance abuse programs and the penalties for manufacturing, selling, delivering, or possessing controlled substances on or within one thousand feet of a school or school bus route stop under RCW 69.50.435 and distributing a controlled substance to a person under the age of eighteen under RCW 69.50.406.


             Sec. 6. RCW 28A.175.070 and 1987 c 518 s 219 are each amended to read as follows:

             The superintendent of public instruction((, through the state clearinghouse for education information,)) shall collect and disseminate to all school districts and other interested parties information about effective student motivation, retention, and retrieval programs.


             Sec. 7. RCW 28A.230.070 and 1988 c 206 s 402 are each amended to read as follows:

             (1) The life-threatening dangers of acquired immunodeficiency syndrome (AIDS) and its prevention shall be taught in the public schools of this state. AIDS prevention education shall be limited to the discussion of the life-threatening dangers of the disease, its spread, and prevention. Students shall receive such education at least once each school year beginning no later than the fifth grade.

             (2) Each district board of directors shall adopt an AIDS prevention education program which is developed in consultation with teachers, administrators, parents, and other community members including, but not limited to, persons from medical, public health, and mental health organizations and agencies so long as the curricula and materials developed for use in the AIDS education program either (a) are the model curricula and resources under subsection (3) of this section, or (b) are developed by the school district and approved for medical accuracy by the office on AIDS established in RCW 70.24.250. If a district elects to use curricula developed by the school district, the district shall submit to the office on AIDS a copy of its curricula and an affidavit of medical accuracy stating that the material in the district-developed curricula has been compared to the model curricula for medical accuracy and that in the opinion of the district the district-developed materials are medically accurate. Upon submission of the affidavit and curricula, the district may use these materials until the approval procedure to be conducted by the office of AIDS has been completed.

             (3) Model curricula and other resources available from the superintendent of public instruction ((through the state clearinghouse for educational information)) may be reviewed by the school district board of directors, in addition to materials designed locally, in developing the district's AIDS education program. The model curricula shall be reviewed for medical accuracy by the office on AIDS established in RCW 70.24.250 within the department of social and health services.

             (4) Each school district shall, at least one month before teaching AIDS prevention education in any classroom, conduct at least one presentation during weekend and evening hours for the parents and guardians of students concerning the curricula and materials that will be used for such education. The parents and guardians shall be notified by the school district of the presentation and that the curricula and materials are available for inspection. No student may be required to participate in AIDS prevention education if the student's parent or guardian, having attended one of the district presentations, objects in writing to the participation.

             (5) The office of the superintendent of public instruction with the assistance of the office on AIDS shall update AIDS education curriculum material as newly discovered medical facts make it necessary.

             (6) The curriculum for AIDS prevention education shall be designed to teach students which behaviors place a person dangerously at risk of infection with the human immunodeficiency virus (HIV) and methods to avoid such risk including, at least:

             (a) The dangers of drug abuse, especially that involving the use of hypodermic needles; and

             (b) The dangers of sexual intercourse, with or without condoms.

             (7) The program of AIDS prevention education shall stress the life-threatening dangers of contracting AIDS and shall stress that abstinence from sexual activity is the only certain means for the prevention of the spread or contraction of the AIDS virus through sexual contact. It shall also teach that condoms and other artificial means of birth control are not a certain means of preventing the spread of the AIDS virus and reliance on condoms puts a person at risk for exposure to the disease.


             Sec. 8. RCW 28A.300.150 and 1987 c 489 s 2 are each amended to read as follows:

             The superintendent of public instruction shall collect and disseminate to school districts information on child abuse and neglect prevention curriculum ((through the state clearinghouse for education information)). The superintendent of public instruction and the departments of social and health services and community, trade, and economic development shall share relevant information.


             Sec. 9. RCW 28A.150.230 and 1991 c 61 s 1 are each amended to read as follows:

             (1) It is the intent and purpose of this section to guarantee that each common school district board of directors, whether or not acting through its respective administrative staff, be held accountable for the proper operation of their district to the local community and its electorate. In accordance with the provisions of Title 28A RCW, as now or hereafter amended, each common school district board of directors shall be vested with the final responsibility for the setting of policies ensuring quality in the content and extent of its educational program and that such program provide students with the opportunity to achieve those skills which are generally recognized as requisite to learning.

             (2) In conformance with the provisions of Title 28A RCW, as now or hereafter amended, it shall be the responsibility of each common school district board of directors to adopt policies to:

             (a) Establish performance criteria and an evaluation process for its certificated personnel, including administrative staff, and for all programs constituting a part of such district's curriculum;

             (b) Determine the final assignment of staff, certificated or classified, according to board enumerated classroom and program needs;

             (c) Determine the amount of instructional hours necessary for any student to acquire a quality education in such district, in not less than an amount otherwise required in RCW 28A.150.220, or rules and regulations of the state board of education;

             (d) Determine the allocation of staff time, whether certificated or classified;

             (e) Establish final curriculum standards consistent with law and rules and regulations of the state board of education, relevant to the particular needs of district students or the unusual characteristics of the district, and ensuring a quality education for each student in the district; and

             (f) Evaluate teaching materials, including text books, teaching aids, handouts, or other printed material, in public hearing upon complaint by parents, guardians or custodians of students who consider dissemination of such material to students objectionable.

             (((3) In keeping with the accountability purpose expressed in this section and to insure that the local community and electorate have access to information on the educational programs in the school districts, each school district's board of directors shall annually publish a descriptive guide to the district's common schools. This guide shall be made available at each school in the district for examination by the public. The guide shall include, but not be limited to, the following:

             (a) Criteria used for written evaluations of staff members pursuant to RCW 28A.405.100;

             (b) A summary of program objectives pursuant to RCW 28A.320.210;

             (c) Results of comparable testing for all schools within the district; and

             (d) Budget information which will include the following:

             (i) Student enrollment;

             (ii) Number of full time equivalent personnel per school in the district itemized according to classroom teachers, instructional support, and building administration and support services, including itemization of such personnel by program;

             (iii) Number of full time equivalent personnel assigned in the district to central administrative offices, itemized according to instructional support, building and central administration, and support services, including itemization of such personnel by program;

             (iv) Total number of full time equivalent personnel itemized by classroom teachers, instructional support, building and central administration, and support services, including itemization of such personnel by program; and

             (v) Special levy budget request presented by program and expenditure for purposes over and above those requirements identified in RCW 28A.150.220.))


             NEW SECTION. Sec. 10. A new section is added to chapter 28A.150 RCW to read as follows:

             The legislature also recognizes that certain basic values and character traits are essential to individual liberty, fulfillment, and happiness. However, these values and traits are not intended to be assessed or be standards for graduation. The legislature intends that local communities have the responsibility for determining how these values and character traits are learned as determined by consensus at the local level. These values and traits include the importance of:

             (1) Honesty, integrity, and trust;

             (2) Respect for self and others;

             (3) Responsibility for personal actions and commitments;

             (4) Self-discipline and moderation;

             (5) Diligence and a positive work ethic;

             (6) Respect for law and authority;

             (7) Healthy and positive behavior; and

             (8) Family as the basis of society.


             Sec. 11. 1992 c 141 s 508 (uncodified) is amended to read as follows:

             Section 302 ((of this act)), chapter 141, Laws of 1992 shall expire September 1, ((1998. However, this section shall not take effect if, by September 1, 1998)) 2000, unless by September 1, 2000, a law is enacted stating that a school accountability and academic assessment system is not in place.


             Sec. 12. 1993 c 336 s 1007 (uncodified) is amended to read as follows:

             (1) A legislative fiscal study committee is hereby created. The committee shall be comprised of three members from each caucus of the senate, appointed by the president of the senate, and three members from each caucus of the house of representatives, appointed by the speaker of the house of representatives. In consultation with the office of the superintendent of public instruction, the committee shall study the common school funding system.

             (2) By ((January 16)) December 15, 1995, the committee shall report to the full legislature on its findings and any recommendations for a new funding model for the common school system.

             (3) This section shall expire ((January 16)) December 31, 1995.


             Sec. 13. RCW 28A.630.885 and 1993 c 336 s 202 and 1993 c 334 s 1 are each reenacted to read as follows:

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

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

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

             (a) Develop essential academic learning requirements based on the student learning goals in RCW 28A.150.210. Essential academic learning requirements shall be developed, to the extent possible, for each of the student learning goals in RCW 28A.150.210. Goals one and two shall be considered primary. Essential academic learning requirements for RCW 28A.150.210(1), goal one, and the mathematics component of RCW 28A.150.210(2), goal two, shall be completed no later than March 1, 1995. Essential academic learning requirements that incorporate the remainder of RCW 28A.150.210 (2), (3), and (4), goals two, three, and four, shall be completed no later than March 1, 1996. To the maximum extent possible, the commission shall integrate goal four and the knowledge and skill areas in the other goals in the development of the essential academic learning requirements;

             (b)(i) The commission shall present to the state board of education and superintendent of public instruction a state-wide academic assessment system for use in the elementary, middle, and high school years designed to determine if each student has mastered the essential academic learning requirements identified in (a) of this subsection. The academic assessment system shall include a variety of assessment methods, including performance-based measures that are criterion-referenced. Performance standards for determining if a student has successfully completed an assessment shall be initially determined by the commission in consultation with the advisory committees required in subsection (2) of this section.

             (ii) The assessment system shall be designed so that the results under the assessment system are used by educators as tools to evaluate instructional practices, and to initiate appropriate educational support for students who have not mastered the essential academic learning requirements at the appropriate periods in the student's educational development.

             (iii) Assessments measuring the essential academic learning requirements developed for RCW 28A.150.210(1), goal one, and the mathematics component of RCW 28A.150.210(2), goal two, shall be initially implemented by the state board of education and superintendent of public instruction no later than the 1996-97 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements. Assessments measuring the essential academic learning requirements developed for RCW 28A.150.210 (2), (3), and (4), goals two, three, and four, shall be initially implemented by the state board of education and superintendent of public instruction no later than the 1997-98 school year, unless the legislature takes action to delay or prevent implementation of the assessment system and essential academic learning requirements. To the maximum extent possible, the commission shall integrate knowledge and skill areas in development of the assessments.

             (iv) Before the 2000-2001 school year, participation by school districts in the assessment system shall be optional. School districts that desire to participate before the 2000-2001 school year shall notify the superintendent of public instruction in a manner determined by the superintendent. Beginning in the 2000-2001 school year, all school districts shall be required to participate in the assessment system.

             (v) The state board of education and superintendent of public instruction may modify the essential academic learning requirements and academic assessment system, as needed, in subsequent school years.

             (vi) The commission shall develop assessments that are directly related to the essential academic learning requirements, and are not biased toward persons with different learning styles, racial or ethnic backgrounds, or on the basis of gender;

             (c) After a determination is made by the state board of education that the high school assessment system has been implemented and that it is sufficiently reliable and valid, successful completion of the high school assessment shall lead to a certificate of mastery. The certificate of mastery shall be obtained by most students at about the age of sixteen, and is evidence that the student has successfully mastered the essential academic learning requirements during his or her educational career. The certificate of mastery shall be required for graduation but shall not be the only requirement for graduation. The commission shall make recommendations to the state board of education regarding the relationship between the certificate of mastery and high school graduation requirements. Upon achieving the certificate of mastery, schools shall provide students with the opportunity to continue to pursue career and educational objectives through educational pathways that emphasize integration of academic and vocational education. Educational pathways may include, but are not limited to, programs such as work-based learning, school-to-work transition, tech prep, vocational-technical education, running start, and preparation for technical college, community college, or university education;

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

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

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

             (g) Develop recommendations for consideration by the higher education coordinating board for adopting college and university entrance requirements for public school students that are consistent with the essential academic learning requirements and the certificate of mastery;

             (h) By December 1, 1998, recommend to the legislature, governor, state board of education, and superintendent of public instruction:

             (i) A state-wide accountability system to monitor and evaluate accurately and fairly the level of learning occurring in individual schools and school districts. The accountability system shall be designed to recognize the characteristics of the student population of schools and school districts such as gender, race, ethnicity, socioeconomic status, and other factors. The system shall include school-site, school district, and state-level accountability reports;

             (ii) A school assistance program to help schools and school districts that are having difficulty helping students meet the essential academic learning requirements;

             (iii) A system to intervene in schools and school districts in which significant numbers of students persistently fail to learn the essential academic learning requirements; and

             (iv) An awards program to provide incentives to school staff to help their students learn the essential academic learning requirements, with each school being assessed individually against its own baseline. Incentives shall be based on the rate of percentage change of students achieving the essential academic learning requirements. School staff shall determine how the awards will be spent.

             It is the intent of the legislature to begin implementation of programs in this subsection (3)(h) on September 1, 2000;

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

             (j) Make recommendations to the legislature and take other actions necessary or desirable to help students meet the student learning goals.

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

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

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

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


             NEW SECTION. Sec. 14. The following acts or parts of acts are each repealed:

             (1) RCW 28A.300.140 and 1990 c 33 s 256 & 1987 c 119 s 1;

             (2) RCW 28A.610.060 and 1987 c 518 s 109; and

             (3) RCW 28A.615.050 and 1987 c 518 s 305.


             NEW SECTION. Sec. 15. Section 10 of this act shall take effect September 1, 1994.


             NEW SECTION. Sec. 16. Section 4 of this act shall expire December 1, 2001."


             On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "amending RCW 28A.300.138, 28A.650.015, 28A.630.952, 28A.170.060, 28A.175.070, 28A.230.070, 28A.300.150, and 28A.150.230; amending 1993 c 336 s 704 (uncodified); amending 1992 c 141 s 508 (uncodified); amending 1993 c 336 s 1007 (uncodified); reenacting RCW 28A.630.885; adding a new section to chapter 28A.150 RCW; repealing RCW 28A.300.140, 28A.610.060, and 28A.615.050; providing an effective date; and providing an expiration date."

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Cothern moved that the House not concur in the Senate amendments to Engrossed Substitute House Bill No. 2850 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Dorn, Patterson and Stevens as Conferees on Engrossed Substitute House Bill No. 2850.


MOTION FOR RECONSIDERATION


             Representative H. Myers, having voted on the prevailing side, moved that the House immediately reconsider the motion by which the House granted a conference on Second Substitute Senate Bill No. 5372 as amended by the House.


             Representatives H. Myers and Van Luven spoke in favor of the motion and it was carried.


MOTION


             Representative H. Myers moved that the House insist on its position regarding the House amendments to Second Substitute Senate Bill No. 5372 and ask the Senate to concur therein. The motion was carried.


MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 6124 and asks the House to recede therefrom.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative G. Cole moved that the House insist on its position regarding the House amendments to Engrossed Substitute Senate Bill No. 6124 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Heavey, G. Cole and Horn as Conferees on Engrossed Substitute Senate Bill No. 6124.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED HOUSE BILL NO. 2643, with the following amendments:


             On page 1, line 19, after "retirees." insert "Sections 6 and 7 of this act create the pension improvement account in the state treasury and direct the transfer of moneys deposited in the budget stabilization account by the 1993-95 operating appropriations act, section 919, chapter 24, Laws of 1993 sp. sess., for the continuing costs of state retirement system benefits to the pension improvement account."


             On page 18, after line 12, insert the following:


             "NEW SECTION. Sec. 6. A new section is added to chapter 41.04 RCW to read as follows:

             The pension improvement account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the continuing costs of any state retirement system benefits.


             NEW SECTION. Sec. 7. On July 1, 1995, the state treasurer shall transfer twenty-five million dollars from the budget stabilization account to the pension improvement account created under section 6 of this act."


             On page 1, line 3 of the title, after "41.26 RCW;" insert "adding a new section to chapter 41.04 RCW;"


             On page 1, line 3 of the title, after "creating" strike "a new section" and insert "new sections"

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Sommers moved that the House not concur in the Senate amendments to Engrossed House Bill No. 2643 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Sommers, Valle and Silver as Conferees on Engrossed House Bill No. 2643.


             The Speaker called upon Representative Johanson to preside.


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


             The Speaker called the House to order.


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


RESOLUTION


             HOUSE RESOLUTION NO. 94-4721, by Representatives Conway, Wang, R. Fisher, Eide, R. Meyers, Dorn, Talcott, Flemming, Campbell, Ebersole, Pruitt, Brumsickle, Roland, Shin, Wineberry, Brough, Casada and Tate


             WHEREAS, The port of Tacoma has been awarded the President's "E Star" for excellence in exporting, which is the most prestigious of American export commendations; and

             WHEREAS, In 1975, the United States Department of Commerce first recognized the port of Tacoma's ability to build a profitable export business, by honoring it with the "E" award; and

             WHEREAS, The "E Star" award is given only to organizations that win the first award and continue to excel; and

             WHEREAS, The port of Tacoma is the first port in the Pacific Northwest to ever earn the award; and

             WHEREAS, Since first winning the "E" award, the port has grown to become the sixth-largest port in North America and is responsible for seventy thousand jobs state-wide; and

             WHEREAS, The port's export trade has grown four hundred percent in eighteen years; and

             WHEREAS, Export tonnage has grown from 2.2 million in 1975 to 8.2 million; and

             WHEREAS, The port has developed new shipping terminals and expanded its land base and facilities for attracting export-oriented manufacturers and warehouse companies; and

             WHEREAS, The port provides a model labor agreement that emphasizes shared responsibilities and full participation of its longshoring and other port employees; and

             WHEREAS, The port of Tacoma is unique because of a close and interdependent relationship between companies, unions, government, and port commissioners; and

             WHEREAS, The port of Tacoma is expanding Washington state's export markets and helping to diversify its economy; and

             WHEREAS, The port of Tacoma provides a vital link between Tacoma and to the Pacific Rim and beyond;

             NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives honor the port of Tacoma for its work in benefiting the state and for creating an exemplary model for other ports and businesses; and

             BE IT FURTHER RESOLVED, That the Washington State House of Representatives also recognize the port of Tacoma as a recipient of the coveted "E Star" award, as it is only the sixth port in the United States to win "E Star" flag.


             Representative Conway moved adoption of the resolution. Representatives Conway, Campbell, Sheldon and Shin spoke in favor of the resolution.


             House Resolution No. 4721 was adopted.


MOTION


             On motion of Representative Peery, the Rules Committee was relieved of further consideration of Engrossed Second Substitute Senate Bill No. 6291, Second Substitute Senate Bill No. 6347, Engrossed Substitute Senate Bill No. 6484 and Senate Bill No. 6584 and the bills were placed on the second reading calendar.


             On motion of Representative Peery, the House recessed until 2:00 p.m.


             The Speaker declared the House to be at recess until 2:00 p.m.


AFTERNOON SESSION


             The Speaker (Representative Dunshee presiding) called the House to order at 2:00 p.m.


             The Clerk called the roll and a quorum was present.


             The Speaker assumed the chair.


MOTION FOR RECONSIDERATION


             Representative Holm having voted on the prevailing side, moved that the House immediately reconsider the motion by which the House granted a conference on House Bill No. 2480 as amended by the Senate.


MOTION


             Representative Holm moved that the House not concur in the Senate amendments to House Bill No. 2480 and ask the Senate to recede therefrom. The motion was carried.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2433, with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 43.08 RCW to read as follows:

             INTENT. The legislature finds that increasing citizens' access to information about both the processes of state government, and the issues dealt with by state government, will strengthen the democratic process. Recent technological developments in the area of telecommunications offer efficient and effective ways to expand this access to information about state government.

             It is the intent of the legislature, in a partnership with the private sector, to establish a mechanism to produce unedited televised coverage of state government deliberations and other public policy events of state-wide significance. Funding provided by the state is intended to cover the annual operating cost of the core services, which include gavel-to-gavel coverage of state government deliberations and other public policy events of state-wide significance. This service is intended to increase citizen access to government, and is a public purpose for which public funds may be expended. It is assumed that private contributions will be raised to purchase equipment, and to cover the cost of programming activities such as curriculum development for use in school classrooms.


             NEW SECTION. Sec. 2. A new section is added to chapter 43.08 RCW to read as follows:

             ESCROW ACCOUNT. (1) The state treasurer shall contract with a qualified public deposit protection commission bank for the establishment of an escrow account. The account shall hold moneys appropriated by the legislature to the state treasurer specifically for the purposes of televising unedited, gavel-to-gavel coverage of state government deliberations and other public policy events of state-wide significance.

             The account may also be used to pay for the direct costs of producing interactive hearings over the Washington interactive teleconferencing system. These hearings shall be linked to the public television system provided for in this section to broadcast the hearings to the general public.

             The contracted bank shall disburse funds to the nonprofit organization, determined to be qualified by the office of financial management, on a quarterly basis to cover the annual operating expenses of the nonprofit organization. No more than one million seven hundred fifty thousand dollars may be disbursed for this purpose in the first year. Disbursements for this purpose may be increased by three percent per year thereafter. Expenditures for the production of interactive hearings must be approved by the administrative committees of both the house of representatives and the senate and may not exceed a total of fifty thousand dollars in any single year.

             (2) A qualified nonprofit organization is a nonprofit corporation formed solely for the purpose of providing unedited televised coverage of state government deliberations and other events of state-wide significance, and which has received a determination of a tax exempt status under section 501(c)(3) of the federal internal revenue code.

             (3) Interested qualified nonprofit organizations shall submit a four-year financial plan, a feasibility plan, and an engineering plan that includes a schedule of equipment needs and distribution plan to the office of financial management. The office of financial management may set criteria for these plans. The office of financial management shall review the submitted plans and, by May 2, 1994, select a qualified nonprofit organization to carry out sections 1 through 3 of this act from those nonprofit organizations whose plans indicate the ability to carry out sections 1 through 3 of this act.

             (4) Beginning January 1995, the qualified nonprofit organization shall prepare an annual independent audit, an annual financial statement, an annual report, and operational benchmarks that measure the nonprofit organization's impact on success of this program in meeting the intent of sections 1 through 3 of this act.

             (5) The initial selection award under this section shall be for a period of four years. The office of financial management shall by December 31, 1998, reopen the application process and select a qualified nonprofit organization.

             (6) No portion of any funds disbursed pursuant to this section may be used, directly or indirectly, for any of the following purposes:

             (a) Attempting to influence: (i) The passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town or other political subdivision of the state of Washington, or by the congress; or (ii) the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

             (b) Making contributions reportable under chapter 42.17 RCW;

             (c) Providing any: (i) Gift; (ii) honoraria; or (iii) travel, lodging, meals or entertainment to a public officer or employee; or

             (d) Providing to any employee, officer or agent of the qualified nonprofit corporation salaries, benefits or compensation which, when combined, would exceed fifty thousand dollars in a single year.


             NEW SECTION. Sec. 3. A new section is added to chapter 43.08 RCW to read as follows:

             TERMS AND CONDITIONS. Placement and operation of equipment within legislative facilities are subject to terms and conditions between the qualified nonprofit organization and the respective houses of the legislature. Such terms and conditions may include but are not limited to: Programming standards requiring a fair and balanced presentation without regard to partisanship or ideology and a balance of possible subject matter and deliberating bodies.

             The initial terms and conditions and any amendment to those terms and conditions shall be ratified by a two-thirds vote of each house of the legislature. Such ratification shall be made in the form of a concurrent resolution.


             NEW SECTION. Sec. 4. CAPTIONS. Section captions as used in this act do not constitute any part of the law.


             NEW SECTION. Sec. 5. EMERGENCY CLAUSE. 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."


             On page 1, line 2 of the title, after "proceedings;" strike the remainder of the title and insert "adding new sections to chapter 43.08 RCW; creating a new section; and declaring an emergency."

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Holm moved that the House not concur in the Senate amendments to Substitute Senate Bill No. 2443 and ask the Senate for a conference thereon.


             Representative Foreman spoke in favor of the motion. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Peery, G. Fisher and Foreman as Conferees on Substitute House Bill No. 2443.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2478, with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 84.33 RCW to read as follows:

             (1) A purchaser of privately owned timber in an amount in excess of two hundred thousand board feet in a voluntary sale made in the ordinary course of business shall, on or before the last day of the month following the purchase of the timber, report the particulars of the purchase to the department.

             (2) The report required in subsection (1) of this section shall contain all information relevant to the value of the timber purchased including, but not limited to, the following, as applicable: Purchaser's name and address, sale date, termination date in sale agreement, total sale price, total acreage involved in the sale, net volume of timber purchased, legal description of the area involved in the sale, road construction or improvements required or completed, timber cruise data, and timber thinning data. A report may be submitted in any reasonable form or, at the purchaser's option, by submitting relevant excerpts of the timber sales contract. A purchaser may comply by submitting the information in the following form:


Purchaser's name:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Purchaser's address:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sale date:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Termination date:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Total sale price:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total acreage involved:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net volume of timber purchased:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Legal description of sale area:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Property improvements:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Timber cruise data:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Timber thinning data:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


             (3) A purchaser of privately owned timber involved in a purchase described in subsection (1) of this section who fails to report a purchase as required may be liable for a penalty of two hundred fifty dollars for each failure to report, as determined by the department.

             (4) This section shall expire March 1, 1997."


             On page 1, line 2 of the title, after "logs;" strike the remainder of the title and insert "adding a new section to chapter 84.33 RCW; and prescribing penalties."

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Holm moved that the House not concur in the Senate amendments to House Bill No. 2478 and ask the Senate for a conference thereon.


             Representative Foreman spoke in favor of the motion. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Holm, Brown and Foreman as Conferees on House Bill No. 2478.


MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 6278 and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Loveland, Winsley and Haugen

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Holm moved that the House grant the request of the Senate for a conference on Substitute Senate Bill No. 6278. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Holm, G. Fisher and Talcott as Conferees on Substitute Senate Bill No. 6278.


MESSAGES FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate concurred in the House amendments to THIRD SUBSTITUTE SENATE BILL NO. 5918, and has passed the bill as amended by the House.

and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The President has signed:


ENGROSSED SENATE BILL NO. 5920,

SUBSTITUTE SENATE BILL NO. 6018,

ENGROSSED SENATE BILL NO. 6044,

SECOND SUBSTITUTE SENATE BILL NO. 6053,

SUBSTITUTE SENATE BILL NO. 6070,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6123,

SENATE BILL NO. 6203,

SUBSTITUTE SENATE BILL NO. 6217,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6228,

SENATE BILL NO. 6266,

SUBSTITUTE SENATE BILL NO. 6283,

ENGROSSED SENATE BILL NO. 6284,

SUBSTITUTE SENATE BILL NO. 6298,

SUBSTITUTE SENATE BILL NO. 6307,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6339,

ENGROSSED SENATE BILL NO. 6356,

SENATE BILL NO. 6377,

SENATE BILL NO. 6408,

SUBSTITUTE SENATE BILL NO. 6447,

SUBSTITUTE SENATE BILL NO. 6466,

SUBSTITUTE SENATE BILL NO. 6487,

ENGROSSED SENATE BILL NO. 6493,

SENATE BILL NO. 6516,

SUBSTITUTE SENATE BILL NO. 6556,

SUBSTITUTE SENATE BILL NO. 6571,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6585,

SENATE JOINT MEMORIAL NO. 8030,

and the same are herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The President has signed:


ENGROSSED SENATE BILL NO. 6057,

SUBSTITUTE SENATE BILL NO. 6081,

SUBSTITUTE SENATE BILL NO. 6143,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6426,

ENGROSSED SENATE BILL NO. 6601,

and the same are herewith transmitted.


Marty Brown, Secretary



March 8, 1994


Mr. Speaker:


             The Senate has passed:


SUBSTITUTE SENATE BILL NO. 2707,

and the same is herewith transmitted.


Marty Brown, Secretary


March 7, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5468, and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Skratek, Bluechel and Sheldon

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Shin moved that the House grant the request of the Senate for a conference on Engrossed Second Substitute Senate Bill No. 5468. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Wineberry, Conway and Schoesler as Conferees on Engrossed Second Substitute Senate Bill No. 5468.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 6230, and asks the House for a conference thereon. The President has appointed the following members as Conferees;              Senators A. Smith, Nelson and Quigley

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Johanson moved that the House grant the request of the Senate for a conference on Substitute Senate Bill No. 6230. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Appelwick, Johanson and Long as Conferees on Substitute Senate Bill No. 6230.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SENATE BILL NO. 6606, and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Rinehart, Cantu and Owen

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Holm moved that the House grant the request of the Senate for a conference on Senate Bill No. 6606. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives G. Fisher, Peery and Foreman as Conferees on Senate Bill No. 6606.


             With the consent of the House, the House resumed consideration of Second Substitute House Bill No. 2616.


SPEAKER'S RULING


             In ruling on the point of order, the Speaker finds that Second Substitute House Bill No. 2616 is entitled "An act relating to ground water testing." The bill directs the Department of Health to develop a voluntary program to test drinking water systems for pesticides and to provide waivers from full testing for systems determined to have a low vulnerability for pesticides. The Senate amendment directs the Department of Ecology to give a high priority to hazardous waste cleanups and grants for cleanup sites that involve drinking water. The Speaker therefore finds that the Senate amendment does change the scope and object of the bill and that the point of order is well taken.

MOTION


             Representative Rust moved that the House not concur in the Senate amendments to Second Substitute House Bill No. 2616 and ask the Senate to recede therefrom. The motion was carried.


SENATE AMENDMENTS TO HOUSE BILL


February 26, 1994


Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1466 with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

             (1) "Collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining an alternative wheelchair or other device assisting mobility.

             (2) "Consumer" means any of the following:

             (a) The purchaser of a wheelchair, if the wheelchair was purchased from a wheelchair dealer or manufacturer for purposes other than resale;

             (b) A person to whom a wheelchair is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the wheelchair;

             (c) A person who may enforce a warranty on a wheelchair; or

             (d) A person who leases a wheelchair from a wheelchair lessor under a written lease.

             (3) "Demonstrator" means a wheelchair used primarily for the purpose of demonstration to the public.

             (4) "Early termination cost" means an expense or obligation that a wheelchair lessor incurs as a result of both the termination of a written lease before the termination date set forth in the lease and the return of a wheelchair to a manufacturer under section 3(2)(b) of this act. "Early termination cost" includes a penalty for prepayment under a finance arrangement.

             (5) "Early termination savings" means an expense or obligation that a wheelchair lessor avoids as a result of both the termination of a written lease before the termination date set forth in the lease and the return of a wheelchair to a manufacturer under section 3(2)(b) of this act. "Early termination savings" includes an interest charge that the wheelchair lessor would have paid to finance the wheelchair or, if the wheelchair lessor does not finance the wheelchair, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.

             (6) "Manufacturer" means a person who manufactures or assembles wheelchairs and agents of the person, including an importer, a distributor, factory branch, distributor branch, and a warrantor of the manufacturer's wheelchairs, but does not include a wheelchair dealer.

             (7) "Nonconformity" means a condition or defect that substantially impairs the use, value, or safety of a wheelchair, and that is covered by an express warranty applicable to the wheelchair or to a component of the wheelchair, but does not include a condition or defect that is the result of abuse, neglect, or unauthorized modification or alteration of the wheelchair by a consumer.

             (8) "Reasonable attempt to repair" means any of the following occurring within the term of an express warranty applicable to a new wheelchair or within one year after first delivery of a wheelchair to a consumer, whichever is sooner:

             (a) An attempted repair by the manufacturer, wheelchair lessor, or the manufacturer's authorized dealer is made to the same warranty nonconformity at least four times and the nonconformity continues; or

             (b) The wheelchair is out of service for an aggregate of at least thirty days because of warranty nonconformity.

             (9) "Wheelchair" means a wheelchair, including a demonstrator, that a consumer purchases or accepts transfer of in this state.

             (10) "Wheelchair dealer" means a person who is in the business of selling wheelchairs.

             (11) "Wheelchair lessor" means a person who leases a wheelchair to a consumer, or who holds the lessor's rights, under a written lease.



             NEW SECTION. Sec. 2. A manufacturer who sells a wheelchair to a consumer, either directly or through a wheelchair dealer, shall furnish the consumer with an express warranty for the wheelchair. The duration of the express warranty must be for at least one year after the first delivery of the wheelchair to the consumer. If the manufacturer fails to furnish an express warranty as required under this section, the wheelchair is covered by an implied warranty as if the manufacturer had furnished an express warranty to the consumer as required under this section.


             NEW SECTION. Sec. 3. (1) If a new wheelchair does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the wheelchair lessor, or any of the manufacturer's authorized wheelchair dealers and makes the wheelchair available for repair before one year after first delivery of the wheelchair to the consumer, the nonconformity must be repaired.

             (2) If, after a reasonable attempt to repair, the nonconformity is not repaired, the manufacturer shall do one of the following, whichever is appropriate:

             (a) At the direction of a consumer described under section 1(2)(a), (b), or (c) of this act, do one of the following:

             (i) Accept return of the wheelchair and replace the wheelchair with a comparable new wheelchair and refund any collateral costs; or

             (ii) Accept return of the wheelchair and refund to the consumer and to a holder of a perfected security interest in the consumer's wheelchair, as their interest may appear, the full purchase price plus any finance charge, amount paid by the consumer at the point of sale, and collateral costs, less a reasonable allowance for use. Under this subsection (2)(a)(ii), a reasonable allowance for use may not exceed the amount obtained by multiplying the full purchase price of the wheelchair by a fraction, the denominator of which is one thousand eight hundred twenty-five and the numerator of which is the number of days that the wheelchair was driven before the consumer first reported the nonconformity to the wheelchair dealer; or

             (b)(i) For a consumer described in section 1(2)(d) of this act, accept return of the wheelchair, refund to the wheelchair lessor and to a holder of a perfected security interest in the wheelchair, as their interest may appear, the current value of the written lease and refund to the consumer the amount that the consumer paid under the written lease plus any collateral costs, less a reasonable allowance for use.

             (ii) Under this subsection (2)(b), the current value of the written lease equals the total amount for which the lease obligates the consumer during the period of the lease remaining after its early termination, plus the wheelchair dealer's early termination costs and the value of the wheelchair at the lease expiration date if the lease sets forth the value, less the wheelchair lessor's early termination savings.

             (iii) Under this subsection (2)(b), a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is one thousand eight hundred twenty-five and the numerator of which is the number of days that the consumer drove the wheelchair before first reporting the nonconformity to the manufacturer, wheelchair lessor, or wheelchair dealer.

             (3) To receive a comparable new wheelchair or a refund due under subsection (2)(a) of this section, a consumer described under section 1(2) (a), (b), or (c) of this act shall offer to the manufacturer of the wheelchair having the nonconformity to transfer possession of the wheelchair to the manufacturer. Within thirty days after the offer, the manufacturer shall provide the consumer with a comparable new wheelchair or a refund. When the manufacturer provides a new wheelchair or refund under this subsection, the consumer shall return to the manufacturer the wheelchair having the nonconformity.

             (4)(a) To receive a refund due under subsection (2)(b) of this section, a consumer described under section 1(2)(d) of this act shall offer to return the wheelchair having the nonconformity to its manufacturer. Within thirty days after the offer, the manufacturer shall provide the refund to the consumer. When the manufacturer provides the refund, the consumer shall return to the manufacturer the wheelchair having the nonconformity.

             (b) To receive a refund due under subsection (2)(b) of this section, a wheelchair lessor shall offer to transfer possession of the wheelchair having the nonconformity to the manufacturer. Within thirty days after the offer, the manufacturer shall provide a refund to the wheelchair lessor. When the manufacturer provides the refund, the wheelchair lessor shall provide to the manufacturer the endorsements necessary to transfer legal possession to the manufacturer.

             (c) A person may not enforce the lease against the consumer after the consumer receives a refund due under subsection (2)(b) of this section.

             (5) A person may not sell or lease again in this state a wheelchair returned by a consumer or wheelchair lessor in this state under subsection (2) of this section or by a consumer or wheelchair lessor in another state under a similar law of that state, unless full disclosure of the reasons for return is made to a prospective buyer or lessee.


             NEW SECTION. Sec. 4. This chapter does not limit rights or remedies available under other law to a consumer.


             NEW SECTION. Sec. 5. A waiver by a consumer of rights under this section is void.


             NEW SECTION. Sec. 6. In addition to pursuing another remedy, a consumer may bring an action to recover damages caused by a violation of this chapter. The court shall award a consumer who prevails in an action under this section twice the amount of pecuniary loss, together with costs, disbursements, reasonable attorneys' fees, and equitable relief that the court determines is appropriate.


             NEW SECTION. Sec. 7. Sections 1 through 6 of this act shall constitute a new chapter in Title 19 RCW."


             On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "wheelchair warranties; and adding a new chapter to Title 19 RCW."

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


POINT OF ORDER


             Representative G. Cole requested a ruling on the scope and object on the Senate amendments to House Bill No. 1466.


SPEAKER'S RULING



             In ruling on the point of order, the Speaker finds that House Bill No. 1466 as it passed the House was entitled "An act relating to motorized wheelchairs" and provided for a motorized wheelchair lemon law. The Senate amendments extend the lemon law to all wheelchairs, whether or not they are motorized, and change the title to read "An act relating to wheelchair warranties."

             The Speaker therefore finds that the Senate amendments change the scope and object of the bill because they extend its coverage to nonmotorized wheelchairs, a subject not within the title or scope of the bill as it passed the House. The point of order is well taken.


MOTION


             Representative G. Cole moved that the House not concur in the Senate amendments to House Bill No. 1466 and ask the Senate to recede therefrom. The motion was carried.


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2688 with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 19.138.010 and 1986 c 283 s 1 are each amended to read as follows:

             The legislature finds and declares that advertising, sales, and business practices of certain ((travel charter or tour operators)) sellers of travel have worked financial hardship upon the people of this state; that the travel business has a significant impact upon the economy and well-being of this state and its people; that problems have arisen regarding certain ((segments of the travel charter or tour operator business)) sales of travel; and that the public welfare requires ((regulation)) registration of ((travel charter or tour operators)) sellers of travel in order to eliminate unfair advertising, sales and business practices. The legislature further finds it necessary to establish standards that will safeguard the people against financial hardship and to encourage fair dealing and prosperity in the travel business.


             NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

             (1) "Department" means the department of licensing.

             (2) "Director" means the director of licensing or the director's designee.

             (3) "Seller of travel" means a person, firm, or corporation both inside and outside the state of Washington, who transacts business with Washington consumers, including, but not limited to, travel agencies, who sell, provide, furnish contracts for, arrange, or advertise, either directly or indirectly, by any means or method, to arrange or book any travel services including travel reservations or accommodations, tickets for domestic or foreign travel by air, rail, ship, bus, or other medium of transportation or hotel or other lodging accommodation and vouchers or coupons to be redeemed for future travel or accommodations for a fee, commission, or other valuable consideration.

             (a) "Seller of travel" includes a travel agent and any person who is an independent contractor or outside agent for a travel agency or other seller of travel whose principal duties include consulting with and advising persons concerning travel arrangements or accommodations in the conduct or administration of its business. If a seller of travel is employed by a seller of travel who is registered under this chapter, the employee need not also be registered.

             (b) "Seller of travel" does not include:

             (i) An air carrier;

             (ii) An owner or operator of a vessel including an ocean common carrier as defined in 46 U.S.C. App. 1702(18), an owner or charterer of a vessel that is required to establish its financial responsibility in accordance with the requirements of the federal maritime commission, 46 U.S.C. App. 817 (e), and a steamboat company as defined in RCW 84.12.200 whether or not operating over and upon the waters of this state;

             (iii) A motor carrier;

             (iv) A rail carrier;

             (v) A charter party carrier of passengers as defined in RCW 81.70.020;

             (vi) An auto transportation company as defined in RCW 81.68.010;

             (vii) A hotel or other lodging accommodation;

             (viii) An affiliate of any person or entity described in (i) through (vii) of this subsection (3)(b) that is primarily engaged in the sale of travel services provided by the person or entity. For purposes of this subsection (3)(b)(viii), an "affiliate" means a person or entity owning, owned by, or under common ownership, with "owning," "owned," and "ownership" referring to equity holdings of at least eighty percent.

             (4) "Travel services" includes transportation by air, sea, or rail ground transportation, hotel or any lodging accommodations, or package tours, whether offered or sold on a wholesale or retail basis.

             (5) "Advertisement" includes, but is not limited to, a written or graphic representation in a card, brochure, newspaper, magazine, directory listing, or display, and oral, written, or graphic representations made by radio, television, or cable transmission that relates to travel services.


             NEW SECTION. Sec. 3. No person, firm, or corporation may act or hold itself out as a seller of travel unless, prior to engaging in the business of selling or advertising to sell travel services, the person, firm, or corporation registers with the director under this chapter and rules adopted under this chapter.

             (1) The registration number must be conspicuously posted in the place of business and must be included in all advertisements. Any corporation which issues a class of equity securities registered under section 12 of the securities exchange act of 1934, and any subsidiary, the majority of voting stock of which is owned by such corporation including any wholly owned subsidiary of such corporation are not required to include company registration numbers in advertisements.

             (2) The director shall issue duplicate registrations upon payment of a nominal duplicate registration fee to valid registration holders operating more than one office.

             (3) No registration is assignable or transferable.

             (4) If a registered seller of travel sells his or her business, when the new owner becomes responsible for the business, the new owner must comply with all provisions of this chapter, including registration.


             NEW SECTION. Sec. 4. An application for registration as a seller of travel shall be submitted in the form prescribed by rule by the director, and shall contain but not be limited to the following:

             (1) The name, address, and telephone number of the seller of travel;

             (2) Proof that the seller of travel holds a valid business license in the state of its principal state of business;

             (3) A registration fee in an amount determined under RCW 43.24.086;

             (4) The name, address, and social security numbers of all employees who sell travel and are covered by the seller of travel's registration. This subsection shall not apply to the out-of-state employees of a corporation that issues a class of equity securities registered under section 12 of the securities exchange act of 1934, and any subsidiary, the majority of voting stock of which is owned by the corporation;

             (5) A report prepared and signed by a licensed public accountant or certified public accountant or other report, approved by the director, that verifies that the seller of travel maintains a trust account or other approved account at a federally insured institution located in the state of Washington, the location and number of that trust account or other approved account, and verifying that the account is maintained and used as required by section 8 of this act. The director, by rule, may permit alternatives to the report that provides for at least the same level of verification.


             NEW SECTION. Sec. 5. (1) Each seller of travel shall renew its registration on or before July 1 of every other year or as otherwise determined by the director.

             (2) Renewal of a registration is subject to the same provisions covering issuance, suspension, and revocation of a registration originally issued.

             (3) The director may refuse to renew a registration for any of the grounds set out under section 6 of this act, and where the past conduct of the applicant affords reasonable grounds for belief that the applicant will not carry out the applicant's duties in accordance with law and with integrity and honesty. The director shall promptly notify the applicant in writing by certified mail of its intent to refuse to renew the registration. The registrant may, within twenty-one days after receipt of that notice or intent, request a hearing on the refusal. The director may permit the registrant to honor commitments already made to its customers, but no new commitments may be incurred, unless the director is satisfied that all new commitments are completely bonded or secured to insure that the general public is protected from loss of money paid to the registrant. It is the responsibility of the registrant to contest the decision regarding conditions imposed or registration denied through the process established by the administrative procedure act, chapter 34.05 RCW.


             NEW SECTION. Sec. 6. (1) The director may deny, suspend, or revoke the registration of a seller of travel if the director finds that the applicant:

             (a) Was previously the holder of a registration issued under this chapter, and the registration was revoked for cause and never reissued by the director, or the registration was suspended for cause and the terms of the suspension have not been fulfilled;

             (b) Has been found guilty of a felony within the past five years involving moral turpitude, or of a misdemeanor concerning fraud or conversion, of suffers a judgment in a civil action involving willful fraud, misrepresentation, or conversion;

             (c) Has made a false statement of a material fact in an application under this chapter or in data attached to it;

             (d) Has violated this chapter or failed to comply with a rule adopted by the director under this chapter;

             (e) Has failed to display the registration as provided in this chapter;

             (f) Has published or circulated a statement with the intent to deceive, misrepresent, or mislead the public;

             (g) Has committed a fraud or fraudulent practice in the operation and conduct of a travel agency business, including, but not limited to, intentionally misleading advertising; or

             (h) Has aided or abetted a person, firm, or corporation that they know has not registered in this state in the business of conducting a travel agency or other sale of travel.

             (2) If the seller of travel is found in violation of this chapter or in violation of the consumer protection act, chapter 19.86 RCW, by the entry of a judgment or by settlement of a claim, the director may revoke the registration of the seller of travel, and the director may reinstate the registration at the director's discretion.


             NEW SECTION. Sec. 7. The department, in cooperation with the travel industry and the office of the attorney general shall examine the establishment of a cost recovery fund, surety bond, or other requirement to indemnify industry consumers. The department shall report to the legislature by December 1, 1994, concerning legislation to establish one or all of these procedures.


             NEW SECTION. Sec. 8. (1) Within five business days of receipt, a seller of travel shall deposit all sums received from a person or entity, for travel services offered by the seller of travel, in a trust account or other approved account maintained in a federally insured financial institution located in Washington state. Exempted are airline sales made by a seller of travel, when payments for the airline tickets are made through the airline reporting corporation either by cash or credit card sale.

             (2) The trust account or other approved account required by this section shall be established and maintained for the benefit of any person or entity paying money to the seller of travel. The seller of travel shall not in any manner encumber the amounts in trust and shall not withdraw money from the account except the following amounts may be withdrawn at any time:

             (a) Partial or full payment for travel services to the entity directly providing the travel service;

             (b) Refunds as required by this chapter;

             (c) The amount of the sales commission;

             (d) Interest earned and credited to the trust account or other approved account; or

             (e) Remaining funds of a purchaser once all travel services have been provided or once tickets or other similar documentation binding upon the ultimate provider of the travel services have been provided.

             (3) At the time of registration, the seller of travel shall file with the department the account number and the name of the financial institution at which the trust account or other approved account is held as set forth in section 4 of this act. The seller of travel shall notify the department of any change in the account number or location within one business day of the change.

             (4) The director, by rule, may allow for the use of other types of funds or accounts only if the protection for consumers is no less than that provided by this section.

             (5) The seller of travel need not comply with the requirements of this section if all of the following apply, except as exempted in subsection (1) of this section:

             (a) The payment is made by credit card;

             (b) The seller of travel does not deposit, negotiate, or factor the credit card charge or otherwise seek to obtain payment of the credit card charge to any account over which the seller of travel has any control; and

             (c) If the charge includes transportation, the carrier that is to provide the transportation processes the credit card charge, or if the charge is only for services, the provider of services processes the credit card charges.

             (6) If the seller of travel maintains its principal place of business in another state and maintains a trust account or other approved account in that state consistent with the requirement of this section, and if that seller of travel has transacted business within the state of Washington in an amount exceeding five million dollars for the preceding year, the out-of-state trust account or other approved account may be substituted for the in-state account required under this section.


             NEW SECTION. Sec. 9. A seller of travel shall perform its duties reasonably and with ordinary care in providing travel services.


             Sec. 10. RCW 19.138.030 and 1986 c 283 s 3 are each amended to read as follows:

             A ((travel charter or tour operator)) seller of travel shall not advertise that air, sea, or land transportation either separately or in conjunction with other services is or may be available unless he or she has, prior to ((such)) the advertisement, ((received written confirmation with a carrier for the transportation advertised)) determined that the product advertised was available at the time the advertising was placed. This determination can be made by the seller of travel either by use of an airline computer reservation system, or by written confirmation from the vendor whose program is being advertised.

             It is the responsibility of the seller of travel to keep written or printed documentation of the steps taken to verify that the advertised offer was available at the time the advertising was placed. These records are to be maintained for at least two years after the placement of the advertisement.


             Sec. 11. RCW 19.138.040 and 1986 c 283 s 4 are each amended to read as follows:

             At or prior to the time of full or partial payment for air, sea, or land transportation or any other services offered by the seller of travel ((charter or tour operator)) in conjunction with ((such)) the transportation, the seller of travel ((charter or tour operator)) shall furnish to the person making the payment a written statement conspicuously setting forth the following information:

             (1) The name and business address and telephone number of the ((travel charter or tour operator)) seller of travel.

             (2) The amount paid, the date of such payment, the purpose of the payment made, and an itemized statement of the balance due, if any.

             (3) The ((location and)) registration number of the ((trust account or bond)) seller of travel required by this chapter.

             (4) The name of the ((carrier)) vendor with whom the ((travel charter or tour operator)) seller of travel has contracted to provide ((the transportation, the type of equipment contracted, and the date, time, and place of each departure: PROVIDED, That the information required in this subsection may be provided at the time of final payment)) travel arrangements for a consumer and all pertinent information relating to the travel as known by the seller of travel at the time of booking. The seller of travel will make known further details as soon as received from the vendor. All information will be provided with final documentation.

             (5) The conditions, if any, upon which the contract between the ((travel charter or tour operator)) seller of travel and the passenger may be canceled, and the rights and obligations of all parties in the event of ((such)) cancellation.

             (6) A statement in eight-point boldface type in substantially the following form:

             "If transportation or other services are canceled by the ((travel charter or tour operator)) seller of travel, all sums paid to the ((travel charter or tour operator)) seller of travel for services not performed in accordance with the contract between the ((travel charter or tour operator)) seller of travel and the ((passenger)) purchaser will be refunded within ((fourteen)) thirty days ((after the cancellation by the travel charter or tour operator to the passenger or the party who contracted for the passenger unless mutually acceptable alternative travel arrangements are provided)) of receiving the funds from the vendor with whom the services were arranged, or if the funds were not sent to the vendor, the funds shall be returned within fourteen days after cancellation by the seller of travel to the purchaser unless the purchaser requests the seller of travel to apply the money to another travel product and/or date."


             Sec. 12. RCW 19.138.050 and 1986 c 283 s 5 are each amended to read as follows:

             (1) If the transportation or other services contracted for are canceled ((the travel charter or tour operator)), or if the money is to be refunded for any reason, the seller of travel shall ((return)) refund to the ((passenger within fourteen days after the cancellation all moneys paid for services not performed in accordance with the contract unless mutually acceptable alternative travel arrangements are provided)) person with whom it contracts for travel services, the money due the person within thirty days of receiving the funds from the vendor with whom the services were arranged. If the funds were not sent to the vendor and remain in the possession of the seller of travel, the funds shall be refunded within fourteen days.

             (2) Any material misrepresentation with regard to the transportation and other services offered shall be deemed to be a cancellation necessitating the refund required by this section.

             (3) When travel services are paid to a vendor and charged to a consumer's credit card by the seller of travel, and the arrangements are subsequently canceled by the consumer, the vendor, or the seller of travel, any refunds to the consumer's credit card must be applied for within ten days from the date of cancellation.

             (4) The seller of travel shall not be obligated to refund any cancellation penalties imposed by the vendor with whom the services were arranged if these penalties were disclosed in the statement required under RCW 19.138.040.


             NEW SECTION. Sec. 13. The director has the following powers and duties:

             (1) To adopt, amend, and repeal rules to carry out the purposes of this chapter;

             (2) To issue and renew registrations under this chapter and to deny or refuse to renew for failure to comply with this chapter;

             (3) To suspend or revoke a registration for a violation of this chapter;

             (4) To establish fees;

             (5) Upon receipt of a complaint, to inspect and audit the books and records of a seller of travel. The seller of travel shall immediately make available to the director those books and records as may be requested at the seller of travel's place of business or at a location designated by the director. For that purpose, the director shall have full and free access to the office and places of business of the seller of travel during regular business hours; and

             (6) To do all things necessary to carry out the functions, powers, and duties set forth in this chapter.


             NEW SECTION. Sec. 14. (1) A nonresident seller of travel soliciting business or selling travel in the state of Washington, by mail, telephone, or otherwise, either directly or indirectly, is deemed, absent any other appointment, to have appointed the director to be the seller of travel's true and lawful attorney upon whom may be served any legal process against that nonresident arising or growing out of a transaction involving travel services. That solicitation signifies the nonresident's agreement that process against the nonresident that is served as provided in this chapter is of the same legal force and validity as if served personally on the nonresident seller of travel.

             (2) Service of process upon a nonresident seller of travel shall be made by leaving a copy of the process with the director. The fee for the service of process shall be determined by the director by rule. That service is sufficient service upon the nonresident if the plaintiff or plaintiff's attorney of record sends notice of the service and a copy of the process by certified mail before service or immediately after service to the defendant at the address given by the nonresident in a solicitation furnished by the nonresident, and the sender's post office receipt of sending and the plaintiff's or plaintiff's attorney's affidavit of compliance with this section are returned with the process in accordance with Washington superior court civil rules. Notwithstanding the foregoing requirements, however, once service has been made on the director as provided in this section, in the event of failure to comply with the requirement of notice to the nonresident, the court may order that notice be given that will be sufficient to apprise the nonresident.


             NEW SECTION. Sec. 15. The director, in the director's discretion, may:

             (1) Annually, or more frequently, make public or private investigations within or without this state as the director deems necessary to determine whether a registration should be granted, denied, revoked, or suspended, or whether a person has violated or is about to violate this chapter or a rule adopted or order issued under this chapter, or to aid in the enforcement of this chapter or in the prescribing of rules and forms of this chapter;

             (2) Publish information concerning a violation of this chapter or a rule adopted or order issued under this chapter; and

             (3) Investigate complaints concerning practices by sellers of travel for which registration is required by this chapter.


             NEW SECTION. Sec. 16. For the purpose of an investigation or proceeding under this chapter, the director or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the director deems relevant or material to the inquiry.


             NEW SECTION. Sec. 17. If it appears to the director that a person has engaged in an act or practice constituting a violation of this chapter or a rule adopted or order issued under this chapter, the director may, in the director's discretion, issue an order directing the person to cease and desist from continuing the act or practice. Reasonable notice of an opportunity for a hearing shall be given. The director may issue a temporary order pending the hearing, which shall remain in effect until ten days after the hearing is held and which shall become final if the person to whom the notice is addressed does not request a hearing within fifteen days after the receipt of the notice.


             NEW SECTION. Sec. 18. The attorney general, a county prosecuting attorney, the director, or any person may, in accordance with the law of this state governing injunctions, maintain an action in the name of this state to enjoin a person or entity selling travel services for which registration is required by this chapter without registration from engaging in the practice until the required registration is secured. However, the injunction shall not relieve the person or entity selling travel services without registration from criminal prosecution therefor, but the remedy by injunction shall be in addition to any criminal liability.


             NEW SECTION. Sec. 19. A person or business that violates an injunction issued under this chapter shall pay a civil penalty, as determined by the court, of not more than twenty-five thousand dollars, that shall be paid to the department. For the purpose of this section, the superior court issuing an injunction shall retain jurisdiction and the cause shall be continued, and in such cases the attorney general acting in the name of the state may petition for the recovery of civil penalties.


             NEW SECTION. Sec. 20. The director or individuals acting on the director's behalf are immune from suit in any action, civil or criminal, based on disciplinary proceedings or other official acts performed in the course of their duties in the administration and enforcement of this chapter.


             NEW SECTION. Sec. 21. (1) The director may assess against a person or organization that violates this chapter, or a rule adopted under this chapter, a civil penalty of not more than one thousand dollars for each violation.

             (2) The person or organization shall be afforded the opportunity for a hearing, upon request made to the director within thirty days after the date of issuance of the notice of assessment. The hearing shall be conducted in accordance with chapter 34.05 RCW.

             (3) A civil penalty shall be imposed by the court for each violation of this chapter in an amount not less than five hundred dollars nor more than two thousand dollars per violation.

             (4) If a person fails to pay an assessment after it has become a final and unappealable order, or after the court has entered final judgment in favor of the state, the director may recover the amount assessed by action in the appropriate superior court. In the action, the validity and appropriateness of the final order imposing the penalty shall not be subject to review.


             NEW SECTION. Sec. 22. The director may assess against a person or organization that violates this chapter, or a rule adopted under this chapter, the full amount of restitution as may be necessary to restore to a person an interest in money or property, real or personal, that may have been acquired by means of an act prohibited by or in violation of this chapter.


             NEW SECTION. Sec. 23. In order to maintain or defend a lawsuit, a seller of travel must be registered with the department as required by this chapter and rules adopted under this chapter.


             NEW SECTION. Sec. 24. (1) Each person who knowingly violates this chapter or who knowingly gives false or incorrect information to the director, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not the statement or report is verified, is guilty of a gross misdemeanor punishable under chapter 9A.20 RCW.

             (2) A person who violates this chapter or who gives false or incorrect information to the director, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not the statement or report is verified, is guilty of a misdemeanor punishable under chapter 9A.20 RCW.


             NEW SECTION. Sec. 25. The administrative procedure act, chapter 34.05 RCW, shall, wherever applicable, govern the rights, remedies, and procedures respecting the administration of this chapter.


             NEW SECTION. Sec. 26. All information, documents, and reports filed with the director under this chapter are matters of public record and shall be open to public inspection, subject to reasonable regulation. The director may make public, on a periodic or other basis, the information as may be necessary or appropriate in the public interest concerning the registration, reports, and information filed with the director or any other matters to the administration and enforcement of this chapter.


             NEW SECTION. Sec. 27. The legislature finds that the practices governed by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. Any violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair and deceptive act or practice and unfair method of competition in the conduct of trade or commerce in violation of RCW 19.86.020. Remedies provided by chapter 19.86 RCW are cumulative and not exclusive.


             NEW SECTION. Sec. 28. In addition to any other penalties or remedies under chapter 19.86 RCW, a person who is injured by a violation of this chapter may bring an action for recovery of actual damages, including court costs and attorneys' fees. No provision in this chapter shall be construed to limit any right or remedy provided under chapter 19.86 RCW.


             NEW SECTION. Sec. 29. The following acts or parts of acts are each repealed:

             (1) RCW 19.138.020 and 1986 c 283 s 2;

             (2) RCW 19.138.060 and 1986 c 283 s 6;

             (3) RCW 19.138.070 and 1986 c 283 s 7; and

             (4) RCW 19.138.080 and 1986 c 283 s 8.


             NEW SECTION. Sec. 30. Any state funds appropriated to the department of licensing for implementation of chapter . . ., Laws of 1994 (this act) for the biennium ending June 30, 1995, shall be reimbursed by June 30, 1997, by an assessment of fees sufficient to cover all costs of implementing chapter . . ., Laws of 1994 (this act).


             NEW SECTION. Sec. 31. A violation of RCW 19.138.030 through 19.138.070 shall constitute a violation of RCW 19.86.020.


             NEW SECTION. Sec. 32. 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. 33. Sections 1 through 29 of this act shall take effect January 1, 1996.


             NEW SECTION. Sec. 34. Sections 2 through 6, 8, 9, 13 through 28, 30, and 31 of this act are each added to chapter 19.138 RCW.


             NEW SECTION. Sec. 35. The director of licensing, beginning July 1, 1995, may take such steps as are necessary to ensure that this act is implemented on its effective date."


             On page 1, line 1 of the title, after "travel;" strike the remainder of the title and insert "amending RCW 19.138.010, 19.138.030, 19.138.040, and 19.138.050; adding new sections to chapter 19.138 RCW; creating new sections; repealing RCW 19.138.020, 19.138.060, 19.138.070, and 19.138.080; prescribing penalties; and providing an effective date."

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative G. Cole moved that the House concur in the Senate amendments to Engrossed Substitute House Bill No. 2688 and pass the bill as amended by the Senate.


             Representative Forner demanded an electronic roll call vote and the demand was sustained.


MOTIONS


             On motion of Representative J. Kohl, Representatives Appelwick, Morris, Riley and G. Fisher were excused.

             On motion of Representative Wood, Representatives Tate and Schmidt were excused.


             Representatives G. Cole and Heavey spoke in favor of the motion to concur.


             Representatives Zellinsky, Lisk, Forner and Chandler spoke against the motion.


             Representative G. Cole again spoke in favor of the motion.


ROLL CALL


             The Clerk called the roll on the motion to concur with the Senate amendments to Engrossed Substitute House Bill No. 2688, and the motion failed the House by the following vote: Yeas - 39, Nays - 52, Absent - 1, Excused - 6.

             Voting yea: Representatives Anderson, Brown, Caver, Cole, G., Conway, Cothern, Dellwo, Dorn, Dunshee, Finkbeiner, Fisher, R., Grant, Heavey, Jacobsen, Johnson, L., Johnson, R., Kessler, King, Kohl, J., Leonard, Linville, Moak, Myers, H., Ogden, Orr, Peery, Pruitt, Romero, Rust, Scott, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe and Mr. Speaker - 39.

             Voting nay: Representatives Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cooke, Dyer, Edmondson, Eide, Flemming, Foreman, Forner, Fuhrman, Hansen, Holm, Horn, Johanson, Jones, Karahalios, Kremen, Lemmon, Lisk, Long, Mastin, McMorris, Mielke, Padden, Patterson, Quall, Rayburn, Reams, Roland, Schoesler, Sehlin, Sheahan, Sheldon, Shin, Silver, Stevens, Talcott, Thomas, B., Thomas, L., Van Luven, Wood and Zellinsky - 52.

             Absent: Representative Meyers, R. - 1.

             Excused: Representatives Appelwick, Fisher, G., Morris, Riley, Schmidt and Tate - 6.


             The Speaker called upon Representative R. Meyers to preside.


             With the consent of the House, the House deferred further consideration of Engrossed Substitute House Bill No. 2688.


MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 6047 and asks the House to recede therefrom.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Johanson moved that the House insist on its position regarding the House amendments to Substitute Senate Bill No. 6047 and ask the Senate to recede therefrom. The motion was carried.


MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SENATE BILL NO. 6065 and asks the House to recede therefrom.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Johanson moved that the House insist on its position regarding the House amendments to Senate Bill No. 6065 and ask the Senate to concur therein. The motion was carried.


MESSAGE FROM THE SENATE


March 6, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SENATE BILL NO. 6080 and asks the House to recede therefrom.

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Johanson moved that the House insist on its position regarding the House amendments to Senate Bill No. 6080 and ask the Senate to concur therein. The motion was carried.




MESSAGE FROM THE SENATE


March 5, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 6138 and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators A. Smith, Schow and Ludwig

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Johanson moved that the House insist on its position regarding the House amendments to Substitute Senate Bill No. 6138 and ask the Senate to concur therein. The motion was not carried.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to recede from its amendments to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2626 and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Sutherland, Amondson and Prentice

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Mastin moved that the House concur in the Senate amendments to Engrossed Substitute House Bill No. 2626 and pass the bill as amended by the Senate. The motion was carried.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2626 as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2626, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

             Voting yea: Representatives Anderson, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Morris, Myers, H., Ogden, Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Roland, Romero, Rust, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 95.

             Excused: Representatives Appelwick, Riley and Schmidt - 3.


             Engrossed Substitute House Bill No. 2626 as amended by the Senate, having received the constitutional majority, was declared passed.


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


RESOLUTION


             HOUSE RESOLUTION NO. 94-4725, by Representatives Kessler, J. Kohl, Cooke, Karahalios, Foreman, Quall, King, Wood, Leonard, L. Johnson, Rust, Sheldon, R. Fisher, R. Meyers, Conway, Shin, Linville, Moak, Edmondson, Thibaudeau, Chandler, Forner, Dunshee, Roland, Jones, Holm, Wolfe, Dellwo, Dyer, Ogden, Jacobsen, Veloria, Scott, Caver, Johanson, Orr, Eide, Basich, Cothern, Brown, Brough, Patterson, Grant, Carlson, Long and Kremen


             WHEREAS, Women of every age, race, religion, creed, ethnicity, economic status, and degree of ability and disability have immeasurably enriched our homes, our state, our country, and every nation on Earth; and

             WHEREAS, American women played and continue to play a critical economic, cultural, and social role in every sphere of life by constituting a significant portion of the labor force whether working inside or outside of the home, whether paid or volunteer; and

             WHEREAS, American women of every age, race, class, and ethnic background served as early leaders of every major progressive, social change movement; and

             WHEREAS, American women were leaders not only in securing their own rights of suffrage and equal opportunity but also in the abolitionist movement, the emancipation movement, the industrial labor movement, the civil rights movement, and especially the peace movement, to create a more fair and just society for all; and

             WHEREAS, The recent State Department annual report on human rights abundantly illustrates that day-to-day discrimination against women remains a fact of life around the globe; and

             WHEREAS, There exists a definite relationship between world-wide violence against women and excessive militarism, the use of force to resolve conflicts and disregard for human life, which finds expression today among our young people who increasingly seek guns instead of conversation to settle the most trivial disagreements; and

             WHEREAS, Women continue to lead efforts in working against violence committed against women and children, promoting equity, and eliminating discrimination; and

             WHEREAS, The House of Representatives has always been a champion of women's rights and a national leader in progress for women, and leads the nation in the number of women officials elected by voters state-wide; and

             WHEREAS, Washington State now has more women legislators than any state has ever had before in the history of the United States; and

             WHEREAS, March is Women's History Month and the United Nations has declared March 8th to be International Women's Day;

             NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives honor, thank, and celebrate the women of the world and recognize March 8th as International Women's Day.


             Representative Kessler moved adoption of the resolution. Representatives Kessler, Brough and Brown spoke in favor of the resolution.


             House Resolution No. 4725 was adopted.


MESSAGE FROM THE SENATE

March 7, 1994


Mr. Speaker:


             The Senate insists on its position on the amendments to SUBSTITUTE HOUSE BILL NO. 1159, and asks the House to concur therein.

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative H. Myers moved that the House insist on its position regarding the Senate amendments to Substitute House Bill No. 1159 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker (Representative R. Meyers presiding) appointed Representatives H. Myers, Springer and Edmondson as Conferees on Substitute House Bill No. 1159.


SENATE AMENDMENTS TO HOUSE BILL


March 3, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1652, with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature finds there is a need to modernize the law on animal cruelty to more appropriately address the nature of the offense. It is not the intent of this act to remove or decrease any of the exemptions from the statutes on animal cruelty that now apply to customary animal husbandry practices, state game or fish laws, rodeos, fairs under chapter 15.76 RCW, or medical research otherwise authorized under federal or state law. It is the intent of this act to require the enforcement of chapter 16.52 RCW by persons who are accountable to elected officials at the local and state level.


             NEW SECTION. Sec. 2. A new section is added to chapter 16.52 RCW to read as follows:

             (1) Principles of liability as defined in chapter 9A.08 RCW apply to this chapter.

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

             (a) "Animal" means any nonhuman mammal, bird, reptile, or amphibian.

             (b) "Animal care and control agency" means any city or county animal control agency or authority authorized to enforce city or county municipal ordinances regulating the care, control, licensing, or treatment of animals within the city or county, and any corporation organized under RCW 16.52.020 that contracts with a city or county to enforce the city or county ordinances governing animal care and control.

             (c) "Animal control officer" means any individual employed, contracted, or appointed pursuant to section 5 of this act by an animal care and control agency or humane society to aid in the enforcement of ordinances or laws regulating the care and control of animals. For purposes of this chapter, the term "animal control officer" shall be interpreted to include "humane officer" as defined in (e) of this subsection and section 5 of this act.

             (d) "Euthanasia" means the humane destruction of an animal accomplished by a method that involves instantaneous unconsciousness and immediate death, or by a method that causes painless loss of consciousness, and death during the loss of consciousness.

             (e) "Humane officer" means any individual employed, contracted, or appointed by an animal care and control agency or humane society as authorized under section 5 of this act.

             (f) "Law enforcement agency" means a general authority Washington law enforcement agency as defined in RCW 10.93.020.

             (g) "Necessary food" means the provision at suitable intervals of wholesome foodstuff suitable for the animal's age and species and sufficient to provide a reasonable level of nutrition for the animal.

             (h) "Owner" means a person who has a right, claim, title, legal share, or right of possession to an animal or a person having lawful control, custody, or possession of an animal.

             (i) "Person" means individuals, corporations, partnerships, associations, or other legal entities, and agents of those entities.

             (j) "Substantial bodily harm" means substantial bodily harm as defined in RCW 9A.04.110.


             NEW SECTION. Sec. 3. A new section is added to chapter 16.52 RCW to read as follows:

             (1) Law enforcement agencies and animal care and control agencies may enforce the provisions of this chapter. Animal care and control agencies may enforce the provisions of this chapter in a county or city only if the county or city legislative authority has entered into a contract with the agency to enforce the provisions of this chapter.

             (2) Animal control officers enforcing this chapter shall comply with the same constitutional and statutory restrictions concerning the execution of police powers imposed on law enforcement officers who enforce this chapter and other criminal laws of the state of Washington.

             (3) Animal control officers have the following enforcement powers when enforcing this chapter:

             (a) The power to issue citations based on probable cause to offenders for misdemeanor and gross misdemeanor violations of this chapter or RCW 9.08.070 or 81.56.120;

             (b) The power to cause a law enforcement officer to arrest and take into custody any person the animal control officer has probable cause to believe has committed or is committing a violation of this chapter or RCW 9.08.070 or 81.56.120. Animal control officers may make an oral complaint to a prosecuting attorney or a law enforcement officer to initiate arrest. The animal control officer causing the arrest shall file with the arresting agency a written complaint within twenty-four hours of the arrest, excluding Sundays and legal holidays, stating the alleged act or acts constituting a violation;

             (c) The power to carry nonfirearm protective devices for personal protection;

             (d) The power to prepare affidavits in support of search warrants and to execute search warrants when accompanied by law enforcement officers to investigate violations of this chapter or RCW 9.08.070 or 81.56.120, and to seize evidence of those violations.

             (4) Upon request of an animal control officer who has probable cause to believe that a person has violated this chapter or RCW 9.08.070 or 81.56.120, a law enforcement agency officer may arrest the alleged offender.


             Sec. 4. RCW 16.52.020 and 1973 1st ex.s. c 125 s 1 are each amended to read as follows:

             Any citizens of the state of Washington ((who have heretofore, or who shall hereafter, incorporate as a body corporate,)) incorporated under the laws of this state as a humane society or as a society for the prevention of cruelty to animals may ((avail themselves of the privileges of RCW 16.52.010 through 16.52.050, 16.52.070 through 16.52.090 and 16.52.100 through 16.52.180: PROVIDED, That)) enforce the provisions of this chapter through its animal control officers subject to the limitations in sections 3 and 5 of this act. The legislative authority in each county may grant exclusive authority to exercise the privileges and authority granted by this section to one or more qualified corporations for a period of up to three years based upon ability to fulfill the purposes of this chapter.


             NEW SECTION. Sec. 5. A new section is added to chapter 16.52 RCW to read as follows:

             Trustees of humane societies incorporated pursuant to RCW 16.52.020 may appoint society members to act as animal control officers. The trustee appointments shall be in writing. The appointment shall be effective in a particular county only if an appointee obtains written authorization from the superior court of the county in which the appointee seeks to enforce this chapter. To obtain judicial authorization, an appointee seeking judicial authorization on or after the effective date of this section shall provide evidence satisfactory to the judge that the appointee has successfully completed training which has prepared the appointee to assume the powers granted to animal control officers pursuant to section 3 of this act. The trustees shall review appointments every three years and may revoke an appointment at any time by filing a certified revocation with the superior court that approved the appointment. Authorizations shall not exceed three years or trustee termination, whichever occurs first. To qualify for reappointment when a term expires on or after the effective date of this section, the officer shall obtain training or satisfy the court that the officer has sufficient experience to exercise the powers granted to animal control officers pursuant to section 3 of this act.


             Sec. 6. RCW 16.52.085 and 1987 c 335 s 1 are each amended to read as follows:

             (1) If ((the county sheriff or other)) a law enforcement officer ((shall find)) or animal control officer has probable cause to believe that ((said)) an owner of a domestic animal has ((been neglected by its owner, he or she)) violated this chapter and no responsible person can be found to assume the animal's care, the officer may authorize, with a warrant, the removal of the animal to a ((proper pasture or other)) suitable place for feeding and ((restoring to health.)) care, or may place the animal under the custody of an animal care and control agency. In determining what is a suitable place, the officer shall consider the animal's needs, including its size and behavioral characteristics. An officer may remove an animal under this subsection without a warrant only if the animal is in an immediate life-threatening condition.

             (2) If a law enforcement officer or an animal control officer has probable cause to believe a violation of this chapter has occurred, the officer may authorize an examination of ((an)) a domestic animal allegedly neglected ((domestic animal)) or abused in violation of this chapter by a veterinarian to determine whether the level of neglect or abuse in violation of this chapter is sufficient to require removal of the animal. This section does not condone illegal entry onto private property.

             (3) Any owner whose domestic animal is removed ((to a suitable place)) pursuant to this chapter shall be given written notice of the circumstances of the removal and notice of legal remedies available to the owner. The notice shall be given by posting at the place of seizure, by delivery to a person residing at the place of seizure, or by registered mail if the owner is known. In making the decision to remove an animal pursuant to this chapter, the ((law enforcement)) officer shall make a good faith effort to contact the animal's owner before removal ((unless the animal is in a life-threatening condition or unless the officer reasonably believes that the owner would remove the animal from the jurisdiction)).

             (4) The agency having custody of the animal may euthanize the animal or may find a responsible person to adopt the animal not less than fifteen business days after the animal is taken into custody. A custodial agency may euthanize severely injured, diseased, or suffering animals at any time. An owner may prevent the animal's destruction or adoption by: (a) Petitioning the district court of the county where the animal was seized for the animal's immediate return subject to court-imposed conditions, or (b) posting a bond or security in an amount sufficient to provide for the animal's care for a minimum of thirty days from the seizure date. If the custodial agency still has custody of the animal when the bond or security expires, the animal shall become the agency's property unless the court orders an alternative disposition. If a court order prevents the agency from assuming ownership and the agency continues to care for the animal, the court shall order the owner to renew a bond or security for the agency's continuing costs for the animal's care.

             (5) If no criminal case is filed within ((seventy-two hours)) fourteen business days of the ((removal of the animal)) animal's removal, the owner may petition the district court of the county where the ((removal of the)) animal ((occurred)) was removed for the ((return of the animal)) animal's return. The petition shall be filed with the court, with copies served to the law enforcement or animal care and control agency responsible for removing the animal and to the prosecuting attorney. If the court grants the petition, the agency which seized the animal must deliver the animal to the owner at no cost to the owner. If a criminal action is filed after the petition is filed but before the animal is returned, the petition shall be joined with the criminal matter.

             (((5))) (6) In a motion or petition for the ((return of the removed animal)) animal's return before a trial, the burden is on the owner to prove by a preponderance of the evidence that the animal will not suffer future neglect or abuse and is not in need of being restored to health.

             (((6))) (7) Any authorized person treating or attempting to restore an animal to health under this chapter shall not be civilly or criminally liable for such action.


             Sec. 7. RCW 16.52.095 and Code 1881 s 840 are each amended to read as follows:

             It shall not be lawful for any person to cut off more than one-half of the ear or ears of any domestic animal such as an ox, cow, bull, calf, sheep, goat or hog, or dog, and any person cutting off more than one-half of the ear or ears of any such animals, shall be deemed guilty of a misdemeanor, and upon conviction, shall be fined in any sum less than twenty dollars. This section does not apply if cutting off more than one-half of the ear of the animal is a customary husbandry practice.


             NEW SECTION. Sec. 8. A new section is added to chapter 16.52 RCW to read as follows:

             (1) A person is guilty of animal cruelty in the first degree when, except as authorized in law, he or she intentionally or knowingly (a) inflicts substantial pain on, (b) causes physical injury to, or (c) kills an animal by a means causing undue suffering, or forces a minor to inflict unnecessary pain, injury, or death on an animal.

             (2) Animal cruelty in the first degree is a class C felony.


             NEW SECTION. Sec. 9. A new section is added to chapter 16.52 RCW to read as follows:

             (1) A person is guilty of animal cruelty in the second degree if, under circumstances not amounting to first degree animal cruelty, the person knowingly, recklessly, or with criminal negligence inflicts unnecessary suffering or pain upon an animal.

             (2) An owner of an animal is guilty of animal cruelty in the second degree if, under circumstances not amounting to first degree animal cruelty, the owner knowingly, recklessly, or with criminal negligence:

             (a) Fails to provide the animal with necessary food, water, shelter, rest, sanitation, ventilation, space, or medical attention and the animal suffers unnecessary or unjustifiable physical pain as a result of the failure; or

             (b) Abandons the animal.

             (3) Animal cruelty in the second degree is a misdemeanor.

             (4) In any prosecution of animal cruelty in the second degree, it shall be an affirmative defense, if established by the defendant by a preponderance of the evidence, that the defendant's failure was due to economic distress beyond the defendant's control.


             Sec. 10. RCW 16.52.100 and 1982 c 114 s 6 are each amended to read as follows:

             ((Any person who shall impound or confine or cause to be impounded or confined any domestic animal, shall supply the same during such confinement with a sufficient quantity of good and wholesome food and water, and in default thereof shall be guilty of a misdemeanor. In case)) If any domestic animal ((shall be)) is impounded or confined ((as aforesaid and shall continue to be)) without necessary food and water for more than ((twenty-four)) thirty-six consecutive hours, ((it shall be lawful for)) any person may, from time to time, as ((it shall be deemed)) is necessary ((to)), enter into and open any pound or place of confinement in which any domestic animal ((shall be)) is confined, and supply it with necessary food and water so long as it ((shall be)) is confined. ((Such)) The person shall not be liable to action for ((such)) the entry, and may collect from the animal's owner the reasonable cost of ((such)) the food and water ((may be collected by him of the owner of such animal, and the said)). The animal shall be subject to attachment ((therefor)) for the costs and shall not be exempt from levy and sale upon execution issued upon a judgment ((therefor)). If an investigating officer finds it extremely difficult to supply ((such)) confined animals with food and water, the officer may remove the animals to protective custody for that purpose.


             Sec. 11. RCW 16.52.117 and 1982 c 114 s 9 are each amended to read as follows:

             (1) Any person who does any of the following is guilty of a gross misdemeanor punishable by imprisonment not to exceed one year, or by a fine not to exceed five thousand dollars, or by both fine and imprisonment:

             (a) Owns, possesses, keeps, or trains any ((dog)) animal with the intent that the ((dog)) animal shall be engaged in an exhibition of fighting with another ((dog)) animal;

             (b) For amusement or gain causes any ((dog)) animal to fight with another ((dog)) animal, or causes any ((dogs)) animals to injure each other; or

             (c) Permits any act in violation of (a) or (b) of this subsection to be done on any premises under his or her charge or control, or promotes or aids or abets any such act.

             (2) Any person who is knowingly present, as a spectator, at any place or building where preparations are being made for an exhibition of the fighting of ((dogs)) animals, with the intent to be present at such preparations, or is knowingly present at such exhibition or at any other fighting or injuring as described in subsection (1)(b) of this section, with the intent to be present at such exhibition, fighting, or injuring, is guilty of a misdemeanor.

             (3) Nothing in this section may prohibit the following:

             (a) The use of dogs in the management of livestock, as defined by chapter 16.57 RCW, by the owner of the livestock or the owner's employees or agents or other persons in lawful custody of the livestock;

             (b) The use of dogs in hunting as permitted by law; or

             (c) The training of ((dogs)) animals or the use of equipment in the training of ((dogs)) animals for any purpose not prohibited by law.


             Sec. 12. RCW 16.52.180 and 1901 c 146 s 18 are each amended to read as follows:

             No part of ((RCW 16.52.010 through 16.52.050, 16.52.070 through 16.52.090 and 16.52.100 through 16.52.180)) this chapter shall be deemed to interfere with any of the laws of this state known as the "game laws," nor ((shall RCW 16.52.010 through 16.52.050, 16.52.070 through 16.52.090 and 16.52.100 through 16.52.180)) be deemed to interfere with the right to destroy any venomous reptile or any known as dangerous to life, limb or property, or to interfere with the right to kill animals to be used for food or with any properly conducted scientific experiments or investigations, which experiments or investigations shall be performed only under the authority of the faculty of some regularly incorporated college or university of the state of Washington or a research facility registered with the United States department of agriculture and regulated by 7 U.S.C. Sec. 2131 et seq.


             Sec. 13. RCW 16.52.190 and 1941 c 105 s 1 are each amended to read as follows:

             ((It shall be unlawful for any person to wilfully or maliciously poison any domestic animal or domestic bird: PROVIDED, That the provisions)) (1) Except as provided in subsections (2) and (3) of this section, a person is guilty of the crime of poisoning animals if the person intentionally or knowingly poisons an animal under circumstances which do not constitute animal cruelty in the first degree.

             (2) Subsection (1) of this section shall not apply to ((the killing)) euthanizing by poison ((such)) an animal ((or bird)) in a lawful and humane manner by the animal's owner ((thereof)), or by a duly authorized servant or agent of ((such)) the owner, or by a person acting pursuant to instructions from a duly constituted public authority.

             (3) Subsection (1) of this section shall not apply to the reasonable use of rodent or pest poison, insecticides, fungicides, or slug bait for their intended purposes. As used in this section, the term "rodent" includes but is not limited to Columbia ground squirrels, other ground squirrels, rats, mice, gophers, rabbits, and any other rodent designated as injurious to the agricultural interests of the state as provided in chapter 17.16 RCW. The term "pest" as used in this section includes any pest as defined in RCW 17.21.020.


             Sec. 14. RCW 16.52.200 and 1987 c 335 s 2 are each amended to read as follows:

             (1) The sentence imposed for a misdemeanor or gross misdemeanor violation of this chapter may be deferred or suspended in accordance with RCW 3.66.067 and 3.66.068, however the probationary period shall be two years.

             (2) In case of multiple misdemeanor or gross misdemeanor convictions, the sentences shall be consecutive, however the probationary period shall remain two years.

             (3) In addition to the penalties imposed by the court, the court shall order the forfeiture of all animals held by law enforcement or animal care and control authorities under the provisions of this chapter if any one of the animals involved dies as a result of a violation of this chapter or if the defendant has a prior conviction under this chapter. In other cases the court may enter an order requiring the owner to forfeit the animal if the court deems the ((cruel)) animal's treatment to have been severe and likely to reoccur. If forfeiture is ordered, the owner shall be prohibited from owning or caring for any similar animals for a period of two years. The court may delay its decision on forfeiture under this subsection until the end of the probationary period.

             (4) In addition to fines and court costs, the ((owner)) defendant, only if convicted or in agreement, shall be liable for reasonable costs incurred pursuant to this chapter by ((the)) law enforcement agencies, animal care and control agencies, or authorized private or public entities involved with the care of the animals. Reasonable costs include expenses of the investigation, and the animal's care, euthanization, or adoption.

             (5) If convicted, the ((owner)) defendant shall also pay a civil penalty of one ((hundred)) thousand dollars to the county to prevent cruelty to animals. These funds shall be used to prosecute offenses under this chapter and to care for forfeited animals pending trial.

             (6) As a condition of the sentence imposed under this chapter or RCW 9.08.070, the court may also order the defendant to participate in an available animal cruelty prevention or education program or obtain available psychological counseling to treat mental health problems contributing to the violation's commission. The defendant shall bear the costs of the program or treatment.


             Sec. 15. RCW 16.52.300 and 1990 c 226 s 1 are each amended to read as follows:

             (1) If any person ((who uses)) commits the crime of animal cruelty in the first or second degree by using or trapping to use domestic dogs or cats as bait, prey, or targets for the purpose of training dogs or other animals to track, fight, or hunt, ((in such a fashion as to torture, torment, deprive of necessary sustenance, cruelly beat, or mutilate such animals, shall be guilty of a misdemeanor.

             (2) Any person who violates the provisions of subsection (1) of this section, and whose actions result in the death of the animal, shall be guilty of a gross misdemeanor.

             (3) Any person who captures by trap a domestic dog or cat to be used as bait, prey, or targets for the purpose of training dogs or other animals to track, fight, or hunt, in such a fashion as to torture, torment, deprive of necessary sustenance, cruelly beat, or mutilate such animals, shall be guilty of a misdemeanor.

             (4) Any person who violates the provisions of subsection (3) of this section, and whose actions result in the death of the animal, shall be guilty of a gross misdemeanor.

             (5) If a person violates this section,)) law enforcement ((authorities)) officers or animal control officers shall seize and hold the animals being trained. ((Such)) The seized animals shall be disposed of by the court pursuant to the provisions of RCW 16.52.200(3).

             (((6))) (2) This section shall not in any way interfere with or impair the operation of any provision of Title 28B RCW, relating to higher education or biomedical research.


             Sec. 16. RCW 9.94A.030 and 1994 c 1 s 3 (Initiative Measure No. 593), 1993 c 338 s 2, 1993 c 251 s 4, and 1993 c 164 s 1 are each reenacted and amended to read as follows:

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

             (1) "Collect," or any derivative thereof, "collect and remit," or "collect and deliver," when used with reference to the department of corrections, means that the department is responsible for monitoring and enforcing the offender's sentence with regard to the legal financial obligation, receiving payment thereof from the offender, and, consistent with current law, delivering daily the entire payment to the superior court clerk without depositing it in a departmental account.

             (2) "Commission" means the sentencing guidelines commission.

             (3) "Community corrections officer" means an employee of the department who is responsible for carrying out specific duties in supervision of sentenced offenders and monitoring of sentence conditions.

             (4) "Community custody" means that portion of an inmate's sentence of confinement in lieu of earned early release time served in the community subject to controls placed on the inmate's movement and activities by the department of corrections.

             (5) "Community placement" means that period during which the offender is subject to the conditions of community custody and/or postrelease supervision, which begins either upon completion of the term of confinement (postrelease supervision) or at such time as the offender is transferred to community custody in lieu of earned early release. Community placement may consist of entirely community custody, entirely postrelease supervision, or a combination of the two.

             (6) "Community service" means compulsory service, without compensation, performed for the benefit of the community by the offender.

             (7) "Community supervision" means a period of time during which a convicted offender is subject to crime-related prohibitions and other sentence conditions imposed by a court pursuant to this chapter or RCW 16.52.200(6) or 46.61.524. For first-time offenders, the supervision may include crime-related prohibitions and other conditions imposed pursuant to RCW 9.94A.120(5). For purposes of the interstate compact for out-of-state supervision of parolees and probationers, RCW 9.95.270, community supervision is the functional equivalent of probation and should be considered the same as probation by other states.

             (8) "Confinement" means total or partial confinement as defined in this section.

             (9) "Conviction" means an adjudication of guilt pursuant to Titles 10 or 13 RCW and includes a verdict of guilty, a finding of guilty, and acceptance of a plea of guilty.

             (10) "Court-ordered legal financial obligation" means a sum of money that is ordered by a superior court of the state of Washington for legal financial obligations which may include restitution to the victim, statutorily imposed crime victims' compensation fees as assessed pursuant to RCW 7.68.035, court costs, county or interlocal drug funds, court-appointed attorneys' fees, and costs of defense, fines, and any other financial obligation that is assessed to the offender as a result of a felony conviction. Upon conviction for vehicular assault while under the influence of intoxicating liquor or any drug, RCW 46.61.522(1)(b), or vehicular homicide while under the influence of intoxicating liquor or any drug, RCW 46.61.520(1)(a), legal financial obligations may also include payment to a public agency of the expense of an emergency response to the incident resulting in the conviction, subject to the provisions in RCW 38.52.430.

             (11) "Crime-related prohibition" means an order of a court prohibiting conduct that directly relates to the circumstances of the crime for which the offender has been convicted, and shall not be construed to mean orders directing an offender affirmatively to participate in rehabilitative programs or to otherwise perform affirmative conduct.

             (12)(a) "Criminal history" means the list of a defendant's prior convictions, whether in this state, in federal court, or elsewhere. The history shall include, where known, for each conviction (i) whether the defendant has been placed on probation and the length and terms thereof; and (ii) whether the defendant has been incarcerated and the length of incarceration.

             (b) "Criminal history" shall always include juvenile convictions for sex offenses and shall also include a defendant's other prior convictions in juvenile court if: (i) The conviction was for an offense which is a felony or a serious traffic offense and is criminal history as defined in RCW 13.40.020(((6)(a))) (9); (ii) the defendant was fifteen years of age or older at the time the offense was committed; and (iii) with respect to prior juvenile class B and C felonies or serious traffic offenses, the defendant was less than twenty-three years of age at the time the offense for which he or she is being sentenced was committed.

             (13) "Department" means the department of corrections.

             (14) "Determinate sentence" means a sentence that states with exactitude the number of actual years, months, or days of total confinement, of partial confinement, of community supervision, the number of actual hours or days of community service work, or dollars or terms of a legal financial obligation. The fact that an offender through "earned early release" can reduce the actual period of confinement shall not affect the classification of the sentence as a determinate sentence.

             (15) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of any amount required by law to be withheld. For the purposes of this definition, "earnings" means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonuses, or otherwise, and, notwithstanding any other provision of law making the payments exempt from garnishment, attachment, or other process to satisfy a court-ordered legal financial obligation, specifically includes periodic payments pursuant to pension or retirement programs, or insurance policies of any type, but does not include payments made under Title 50 RCW, except as provided in RCW 50.40.020 and 50.40.050, or Title 74 RCW.

             (16) "Drug offense" means:

             (a) Any felony violation of chapter 69.50 RCW except possession of a controlled substance (RCW 69.50.401(d)) or forged prescription for a controlled substance (RCW 69.50.403);

             (b) Any offense defined as a felony under federal law that relates to the possession, manufacture, distribution, or transportation of a controlled substance; or

             (c) Any out-of-state conviction for an offense that under the laws of this state would be a felony classified as a drug offense under (a) of this subsection.

             (17) "Escape" means:

             (a) Escape in the first degree (RCW 9A.76.110), escape in the second degree (RCW 9A.76.120), willful failure to return from furlough (RCW 72.66.060), willful failure to return from work release (RCW 72.65.070), or willful failure to be available for supervision by the department while in community custody (RCW 72.09.310); or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as an escape under (a) of this subsection.

             (18) "Felony traffic offense" means:

             (a) Vehicular homicide (RCW 46.61.520), vehicular assault (RCW 46.61.522), eluding a police officer (RCW 46.61.024), or felony hit-and-run injury-accident (RCW 46.52.020(4)); or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a felony traffic offense under (a) of this subsection.

             (19) "Fines" means the requirement that the offender pay a specific sum of money over a specific period of time to the court.

             (20)(a) "First-time offender" means any person who is convicted of a felony (i) not classified as a violent offense or a sex offense under this chapter, or (ii) that is not the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance classified in schedule I or II that is a narcotic drug or the selling for profit of any controlled substance or counterfeit substance classified in schedule I, RCW 69.50.204, except leaves and flowering tops of marihuana, and except as provided in (b) of this subsection, who previously has never been convicted of a felony in this state, federal court, or another state, and who has never participated in a program of deferred prosecution for a felony offense.

             (b) For purposes of (a) of this subsection, a juvenile adjudication for an offense committed before the age of fifteen years is not a previous felony conviction except for adjudications of sex offenses.

             (21) "Most serious offense" means any of the following felonies or a felony attempt to commit any of the following felonies, as now existing or hereafter amended:

             (a) Any felony defined under any law as a class A felony or criminal solicitation of or criminal conspiracy to commit a class A felony;

             (b) Assault in the second degree;

             (c) Assault of a child in the second degree;

             (d) Child molestation in the second degree;

             (e) Controlled substance homicide;

             (f) Extortion in the first degree;

             (g) Incest when committed against a child under age fourteen;

             (h) Indecent liberties;

             (i) Kidnapping in the second degree;

             (j) Leading organized crime;

             (k) Manslaughter in the first degree;

             (l) Manslaughter in the second degree;

             (m) Promoting prostitution in the first degree;

             (n) Rape in the third degree;

             (o) Robbery in the second degree;

             (p) Sexual exploitation;

             (q) Vehicular assault;

             (r) Vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;

             (s) Any other class B felony offense with a finding of sexual motivation, as "sexual motivation" is defined under this section;

             (t) Any other felony with a deadly weapon verdict under RCW 9.94A.125;

             (u) Any felony offense in effect at any time prior to December 2, 1993, that is comparable to a most serious offense under this subsection, or any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a most serious offense under this subsection.

             (22) "Nonviolent offense" means an offense which is not a violent offense.

             (23) "Offender" means a person who has committed a felony established by state law and is eighteen years of age or older or is less than eighteen years of age but whose case has been transferred by the appropriate juvenile court to a criminal court pursuant to RCW 13.40.110. Throughout this chapter, the terms "offender" and "defendant" are used interchangeably.

             (24) "Partial confinement" means confinement for no more than one year in a facility or institution operated or utilized under contract by the state or any other unit of government, or, if home detention or work crew has been ordered by the court, in an approved residence, for a substantial portion of each day with the balance of the day spent in the community. Partial confinement includes work release, home detention, work crew, and a combination of work crew and home detention as defined in this section.

             (25) "Persistent offender" is an offender who:

             (a) Has been convicted in this state of any felony considered a most serious offense; and

             (b) Has, before the commission of the offense under (a) of this subsection, been convicted as an offender on at least two separate occasions, whether in this state or elsewhere, of felonies that under the laws of this state would be considered most serious offenses and would be included in the offender score under RCW 9.94A.360; provided that of the two or more previous convictions, at least one conviction must have occurred before the commission of any of the other most serious offenses for which the offender was previously convicted.

             (26) "Postrelease supervision" is that portion of an offender's community placement that is not community custody.

             (27) "Restitution" means the requirement that the offender pay a specific sum of money over a specific period of time to the court as payment of damages. The sum may include both public and private costs. The imposition of a restitution order does not preclude civil redress.

             (28) "Serious traffic offense" means:

             (a) Driving while under the influence of intoxicating liquor or any drug (RCW 46.61.502), actual physical control while under the influence of intoxicating liquor or any drug (RCW 46.61.504), reckless driving (RCW 46.61.500), or hit-and-run an attended vehicle (RCW 46.52.020(5)); or

             (b) Any federal, out-of-state, county, or municipal conviction for an offense that under the laws of this state would be classified as a serious traffic offense under (a) of this subsection.

             (29) "Serious violent offense" is a subcategory of violent offense and means:

             (a) Murder in the first degree, homicide by abuse, murder in the second degree, assault in the first degree, kidnapping in the first degree, or rape in the first degree, assault of a child in the first degree, or an attempt, criminal solicitation, or criminal conspiracy to commit one of these felonies; or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a serious violent offense under (a) of this subsection.

             (30) "Sentence range" means the sentencing court's discretionary range in imposing a nonappealable sentence.

             (31) "Sex offense" means:

             (a) A felony that is a violation of chapter 9A.44 RCW or RCW 9A.64.020 or 9.68A.090 or that is, under chapter 9A.28 RCW, a criminal attempt, criminal solicitation, or criminal conspiracy to commit such crimes;

             (b) A felony with a finding of sexual motivation under RCW 9.94A.127; or

             (c) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a sex offense under (a) of this subsection.

             (32) "Sexual motivation" means that one of the purposes for which the defendant committed the crime was for the purpose of his or her sexual gratification.

             (33) "Total confinement" means confinement inside the physical boundaries of a facility or institution operated or utilized under contract by the state or any other unit of government for twenty-four hours a day, or pursuant to RCW 72.64.050 and 72.64.060.

             (34) "Transition training" means written and verbal instructions and assistance provided by the department to the offender during the two weeks prior to the offender's successful completion of the work ethic camp program. The transition training shall include instructions in the offender's requirements and obligations during the offender's period of community custody.

             (35) "Victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged.

             (36) "Violent offense" means:

             (a) Any of the following felonies, as now existing or hereafter amended: Any felony defined under any law as a class A felony or an attempt to commit a class A felony, criminal solicitation of or criminal conspiracy to commit a class A felony, manslaughter in the first degree, manslaughter in the second degree, indecent liberties if committed by forcible compulsion, kidnapping in the second degree, arson in the second degree, assault in the second degree, assault of a child in the second degree, extortion in the first degree, robbery in the second degree, vehicular assault, and vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;

             (b) Any conviction for a felony offense in effect at any time prior to July 1, 1976, that is comparable to a felony classified as a violent offense in (a) of this subsection; and

             (c) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a violent offense under (a) or (b) of this subsection.

             (37) "Work crew" means a program of partial confinement consisting of civic improvement tasks for the benefit of the community of not less than thirty-five hours per week that complies with RCW 9.94A.135. The civic improvement tasks shall have minimal negative impact on existing private industries or the labor force in the county where the service or labor is performed. The civic improvement tasks shall not affect employment opportunities for people with developmental disabilities contracted through sheltered workshops as defined in RCW 82.04.385. Only those offenders sentenced to a facility operated or utilized under contract by a county or the state are eligible to participate on a work crew. Offenders sentenced for a sex offense as defined in subsection (31) of this section are not eligible for the work crew program.

             (38) "Work ethic camp" means an alternative incarceration program designed to reduce recidivism and lower the cost of corrections by requiring offenders to complete a comprehensive array of real-world job and vocational experiences, character-building work ethics training, life management skills development, substance abuse rehabilitation, counseling, literacy training, and basic adult education.

             (39) "Work release" means a program of partial confinement available to offenders who are employed or engaged as a student in a regular course of study at school. Participation in work release shall be conditioned upon the offender attending work or school at regularly defined hours and abiding by the rules of the work release facility.

             (40) "Home detention" means a program of partial confinement available to offenders wherein the offender is confined in a private residence subject to electronic surveillance. Home detention may not be imposed for offenders convicted of a violent offense, any sex offense, any drug offense, reckless burning in the first or second degree as defined in RCW 9A.48.040 or 9A.48.050, assault in the third degree as defined in RCW 9A.36.031, assault of a child in the third degree, unlawful imprisonment as defined in RCW 9A.40.040, or harassment as defined in RCW 9A.46.020. Home detention may be imposed for offenders convicted of possession of a controlled substance (RCW 69.50.401(d)) or forged prescription for a controlled substance (RCW 69.50.403) if the offender fulfills the participation conditions set forth in this subsection and is monitored for drug use by treatment alternatives to street crime (TASC) or a comparable court or agency-referred program.

             (a) Home detention may be imposed for offenders convicted of burglary in the second degree as defined in RCW 9A.52.030 or residential burglary conditioned upon the offender: (i) Successfully completing twenty-one days in a work release program, (ii) having no convictions for burglary in the second degree or residential burglary during the preceding two years and not more than two prior convictions for burglary or residential burglary, (iii) having no convictions for a violent felony offense during the preceding two years and not more than two prior convictions for a violent felony offense, (iv) having no prior charges of escape, and (v) fulfilling the other conditions of the home detention program.

             (b) Participation in a home detention program shall be conditioned upon: (i) The offender obtaining or maintaining current employment or attending a regular course of school study at regularly defined hours, or the offender performing parental duties to offspring or minors normally in the custody of the offender, (ii) abiding by the rules of the home detention program, and (iii) compliance with court-ordered legal financial obligations. The home detention program may also be made available to offenders whose charges and convictions do not otherwise disqualify them if medical or health-related conditions, concerns or treatment would be better addressed under the home detention program, or where the health and welfare of the offender, other inmates, or staff would be jeopardized by the offender's incarceration. Participation in the home detention program for medical or health-related reasons is conditioned on the offender abiding by the rules of the home detention program and complying with court-ordered restitution.


             Sec. 17. RCW 9A.48.080 and 1979 c 145 s 2 are each amended to read as follows:

             (1) A person is guilty of malicious mischief in the second degree if he or she knowingly and maliciously:

             (a) Causes physical damage to the property of another in an amount exceeding two hundred fifty dollars; or

             (b) Creates a substantial risk of interruption or impairment of service rendered to the public, by physically damaging or tampering with an emergency vehicle or property of the state, a political subdivision thereof, or a public utility or mode of public transportation, power, or communication((; or

             (c) Notwithstanding RCW 16.52.070, causes physical damage, destruction, or injury by amputation, mutilation, castration, or other malicious act to a horse, mule, cow, heifer, bull, steer, swine, goat, or sheep which is the property of another)).

             (2) Malicious mischief in the second degree is a class C felony.


             Sec. 18. RCW 13.40.020 and 1993 c 373 s 1 are each amended to read as follows:

             For the purposes of this chapter:

             (1) "Serious offender" means a person fifteen years of age or older who has committed an offense which if committed by an adult would be:

             (a) A class A felony, or an attempt to commit a class A felony;

             (b) Manslaughter in the first degree; or

             (c) Assault in the second degree, extortion in the first degree, child molestation in the second degree, kidnapping in the second degree, robbery in the second degree, residential burglary, or burglary in the second degree, where such offenses include the infliction of bodily harm upon another or where during the commission of or immediate withdrawal from such an offense the perpetrator is armed with a deadly weapon or firearm as defined in RCW 9A.04.110;

             (2) "Community service" means compulsory service, without compensation, performed for the benefit of the community by the offender as punishment for committing an offense. Community service may be performed through public or private organizations or through work crews;

             (3) "Community supervision" means an order of disposition by the court of an adjudicated youth not committed to the department. A community supervision order for a single offense may be for a period of up to two years for a sex offense as defined by RCW 9.94A.030 and up to one year for other offenses. Community supervision is an individualized program comprised of one or more of the following:

             (a) Community-based sanctions;

             (b) Community-based rehabilitation;

             (c) Monitoring and reporting requirements;

             (4) Community-based sanctions may include one or more of the following:

             (a) A fine, not to exceed one hundred dollars;

             (b) Community service not to exceed one hundred fifty hours of service;

             (5) "Community-based rehabilitation" means one or more of the following: Attendance of information classes; counseling, outpatient substance abuse treatment programs, outpatient mental health programs, anger management classes, education or outpatient treatment programs to prevent animal cruelty, or other services; or attendance at school or other educational programs appropriate for the juvenile as determined by the school district. Placement in community-based rehabilitation programs is subject to available funds;

             (6) "Monitoring and reporting requirements" means one or more of the following: Curfews; requirements to remain at home, school, work, or court-ordered treatment programs during specified hours; restrictions from leaving or entering specified geographical areas; requirements to report to the probation officer as directed and to remain under the probation officer's supervision; and other conditions or limitations as the court may require which may not include confinement;

             (7) "Confinement" means physical custody by the department of social and health services in a facility operated by or pursuant to a contract with the state, or physical custody in a detention facility operated by or pursuant to a contract with any county. The county may operate or contract with vendors to operate county detention facilities. The department may operate or contract to operate detention facilities for juveniles committed to the department. Pretrial confinement or confinement of less than thirty-one days imposed as part of a disposition or modification order may be served consecutively or intermittently, in the discretion of the court and may be served in a detention group home, detention foster home, or with electronic monitoring. Detention group homes and detention foster homes used for confinement shall not also be used for the placement of dependent children. Confinement in detention group homes and detention foster homes and electronic monitoring are subject to available funds;

             (8) "Court", when used without further qualification, means the juvenile court judge(s) or commissioner(s);

             (9) "Criminal history" includes all criminal complaints against the respondent for which, prior to the commission of a current offense:

             (a) The allegations were found correct by a court. If a respondent is convicted of two or more charges arising out of the same course of conduct, only the highest charge from among these shall count as an offense for the purposes of this chapter; or

             (b) The criminal complaint was diverted by a prosecutor pursuant to the provisions of this chapter on agreement of the respondent and after an advisement to the respondent that the criminal complaint would be considered as part of the respondent's criminal history;

             (10) "Department" means the department of social and health services;

             (11) "Detention facility" means a county facility for the physical confinement of a juvenile alleged to have committed an offense or an adjudicated offender subject to a disposition or modification order;

             (12) "Diversion unit" means any probation counselor who enters into a diversion agreement with an alleged youthful offender, or any other person or entity except a law enforcement official or entity, with whom the juvenile court administrator has contracted to arrange and supervise such agreements pursuant to RCW 13.40.080, or any person or entity specially funded by the legislature to arrange and supervise diversion agreements in accordance with the requirements of this chapter;

             (13) "Institution" means a juvenile facility established pursuant to chapters 72.05 and 72.16 through 72.20 RCW;

             (14) "Juvenile," "youth," and "child" mean any individual who is under the chronological age of eighteen years and who has not been previously transferred to adult court;

             (15) "Juvenile offender" means any juvenile who has been found by the juvenile court to have committed an offense, including a person eighteen years of age or older over whom jurisdiction has been extended under RCW 13.40.300;

             (16) "Manifest injustice" means a disposition that would either impose an excessive penalty on the juvenile or would impose a serious, and clear danger to society in light of the purposes of this chapter;

             (17) "Middle offender" means a person who has committed an offense and who is neither a minor or first offender nor a serious offender;

             (18) "Minor or first offender" means a person sixteen years of age or younger whose current offense(s) and criminal history fall entirely within one of the following categories:

             (a) Four misdemeanors;

             (b) Two misdemeanors and one gross misdemeanor;

             (c) One misdemeanor and two gross misdemeanors;

             (d) Three gross misdemeanors;

             (e) One class C felony except manslaughter in the second degree and one misdemeanor or gross misdemeanor;

             (f) One class B felony except: Any felony which constitutes an attempt to commit a class A felony; manslaughter in the first degree; assault in the second degree; extortion in the first degree; indecent liberties; kidnapping in the second degree; robbery in the second degree; burglary in the second degree; residential burglary; vehicular homicide; or arson in the second degree.

             For purposes of this definition, current violations shall be counted as misdemeanors;

             (19) "Offense" means an act designated a violation or a crime if committed by an adult under the law of this state, under any ordinance of any city or county of this state, under any federal law, or under the law of another state if the act occurred in that state;

             (20) "Respondent" means a juvenile who is alleged or proven to have committed an offense;

             (21) "Restitution" means financial reimbursement by the offender to the victim, and shall be limited to easily ascertainable damages for injury to or loss of property, actual expenses incurred for medical treatment for physical injury to persons, lost wages resulting from physical injury, and costs of the victim's counseling reasonably related to the offense if the offense is a sex offense. Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses. Nothing in this chapter shall limit or replace civil remedies or defenses available to the victim or offender;

             (22) "Secretary" means the secretary of the department of social and health services;

             (23) "Services" mean services which provide alternatives to incarceration for those juveniles who have pleaded or been adjudicated guilty of an offense or have signed a diversion agreement pursuant to this chapter;

             (24) "Sex offense" means an offense defined as a sex offense in RCW 9.94A.030;

             (25) "Sexual motivation" means that one of the purposes for which the respondent committed the offense was for the purpose of his or her sexual gratification;

             (26) "Foster care" means temporary physical care in a foster family home or group care facility as defined in RCW 74.15.020 and licensed by the department, or other legally authorized care;

             (27) "Violation" means an act or omission, which if committed by an adult, must be proven beyond a reasonable doubt, and is punishable by sanctions which do not include incarceration.


             Sec. 19. RCW 81.56.120 and 1961 c 14 s 81.56.120 are each amended to read as follows:

             Railroad companies in carrying or transporting animals shall not permit them to be confined in cars for a longer period than forty-eight consecutive hours without unloading them for rest, water and feeding for a period of at least two consecutive hours, unless prevented from so unloading them by unavoidable accident. In estimating such confinement, the time during which the animals have been confined without such rest on connecting roads from which they are received shall be included. Animals so unloaded shall, during such rest, be properly fed, watered by the owner or person having the custody of them, or in case of his default in so doing, then by the railroad company transporting them, at the expense of said owner or person in custody thereof, and said company shall in such case have a lien upon such animals for food, care and custody furnished, and shall not be liable for such detention of such animals. If animals are transported where they can and do have proper food, water, space and opportunity for rest, the foregoing provision in regard to their being unloaded shall not apply. Violators of this section shall be punished by fine not exceeding one ((hundred)) thousand dollars per animal.


             NEW SECTION. Sec. 20. A new section is added to chapter 16.52 RCW to read as follows:

             A person may kill a bear or cougar that is reasonably perceived to be an unavoidable and immediate threat to human life.


             Sec. 21. RCW 77.12.265 and 1987 c 506 s 35 are each amended to read as follows:

             The owner or tenant of real property may trap or kill on that property wild animals or wild birds, other than an endangered species, that is threatening human life or damaging crops, domestic animals, fowl, or other property. Except in emergency situations, deer, elk, and protected wildlife shall not be killed without a permit issued and conditioned by the director. The director may delegate this authority.

             For the purposes of this section, "emergency" means an unforeseen circumstance beyond the control of the landowner or tenant that presents a real and immediate threat to human life, crops, domestic animals, fowl, or other property.

             Alternatively, when sufficient time for the issuance of a permit by the director is not available, verbal permission may be given by the appropriate department regional administrator to owners or tenants of real property to trap or kill on that property any cougar, bear, deer, elk, or protected wildlife which is threatening human life or damaging crops, domestic animals, fowl, or other property. The regional administrator may delegate, in writing, a member of the regional staff to give the required permission in these emergency situations. Nothing in this section authorizes in any situation the trapping, hunting, or killing of an endangered species.

             Wildlife trapped or killed under this section remains the property of the state, and the person trapping or killing the wildlife shall notify the department immediately. The director shall dispose of wildlife so taken within three working days of receiving such a notification.

             If the department receives recurring complaints regarding property being damaged as described in this section from the owner or tenant of real property, or receives such complaints from several such owners or tenants in a locale, the commission shall consider conducting a special hunt or special hunts to reduce the potential for such damage.

             For purposes of this section, "crop" means an agricultural or horticultural product growing or harvested and includes wild shrubs and range land vegetation on privately owned cattle ranching lands. On such lands, the land owner or lessee may declare an emergency when the department has not responded within forty-eight hours after having been contacted by the land owner or lessee regarding crop damage by wild animals or wild birds. However, the department shall not allow claims for damage to wild shrubs or range land vegetation on such lands.

             Deer and elk shall not be killed under the authority of this section on privately owned cattle ranching lands that were closed to public hunting during the previous hunting season, except for land closures which are coordinated with the department to protect property and livestock.

             The department shall work closely with landowners and tenants suffering game damage problems to control damage without killing the animals when practical, to increase the harvest of damage-causing animals in hunting seasons, or to kill the animals when no other practical means of damage control is feasible.


             Sec. 22. RCW 16.52.185 and 1982 c 114 s 10 are each amended to read as follows:

             Nothing in this chapter applies to accepted husbandry practices used in the commercial raising or slaughtering of livestock or poultry, or products thereof or to the use of animals in the normal and usual course of rodeo events or to the customary use or exhibiting of animals in normal and usual events at fairs as defined in RCW 15.76.120.


             NEW SECTION. Sec. 23. The following acts or parts of acts are each repealed:

             (1) RCW 16.52.010 and 1901 c 146 s 17;

             (2) RCW 16.52.030 and 1982 c 114 s 2 & 1901 c 146 s 2;

             (3) RCW 16.52.040 and 1901 c 146 s 14;

             (4) RCW 16.52.050 and 1901 c 146 s 10;

             (5) RCW 16.52.055 and 1901 c 146 s 3;

             (6) RCW 16.52.060 and 1987 c 202 s 182 & 1893 c 27 s 9;

             (7) RCW 16.52.065 and 1982 c 114 s 3 & 1893 c 27 s 8;

             (8) RCW 16.52.070 and 1982 c 114 s 4, 1979 c 145 s 4, & 1901 c 146 s 4;

             (9) RCW 16.52.113 and 1982 c 114 s 8;

             (10) RCW 16.52.120 and 1982 c 114 s 11 & 1901 c 146 s 7;

             (11) RCW 16.52.130 and 1982 c 114 s 12 & 1901 c 146 s 8;

             (12) RCW 16.52.140 and 1901 c 146 s 11; and

             (13) RCW 16.52.160 and 1901 c 146 s 9."


             On page 1, line 1 of the title, after "cruelty;" strike the remainder of the title and insert "amending RCW 16.52.020, 16.52.085, 16.52.095, 16.52.100, 16.52.117, 16.52.180, 16.52.190, 16.52.200, 16.52.300, 9A.48.080, 13.40.020, 81.56.120, 77.12.265, and 16.52.185; reenacting and amending RCW 9.94A.030; adding new sections to chapter 16.52 RCW; creating a new section; repealing RCW 16.52.010, 16.52.030, 16.52.040, 16.52.050, 16.52.055, 16.52.060, 16.52.065, 16.52.070, 16.52.113, 16.52.120, 16.52.130, 16.52.140, and 16.52.160; and prescribing penalties."

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Appelwick moved that the House not concur in the Senate amendments to Engrossed Substitute House Bill No. 1652 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker (Representative R. Meyers presiding) appointed Representatives Johanson, Romero and Fuhrman as Conferees on Engrossed Substitute House Bill No. 1652.


MOTION FOR RECONSIDERATION


             Representative Flemming, having voted on the prevailing side, moved that the House immediately reconsider the vote by which the motion to concur in the Senate amendments to House Bill No. 2688 failed.


             Representative Forner demanded an electronic roll call vote and the demand was sustained.


             Representatives King, Eide and Heavey spoke in favor of the motion to reconsider and Representatives Forner, Padden, Wood, and Lisk spoke against it.


ROLL CALL


             The Clerk called the roll on the motion to reconsider the motion to concur in the Senate amendments to Engrossed Substitute House Bill No. 2688, and the motion was adopted by the following vote: Yeas - 51, Nays - 45, Absent - 0, Excused - 2.

             Voting yea: Representatives Anderson, Appelwick, Basich, Bray, Brown, Caver, Cole, G., Conway, Cothern, Dellwo, Dorn, Dunshee, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Grant, Heavey, Jacobsen, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Leonard, Linville, Meyers, R., Moak, Morris, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Romero, Rust, Scott, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe and Mr. Speaker - 51.

             Voting nay: Representatives Backlund, Ballard, Ballasiotes, Brough, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cooke, Dyer, Foreman, Forner, Fuhrman, Hansen, Holm, Horn, Johanson, Kremen, Lemmon, Lisk, Long, Mastin, McMorris, Mielke, Padden, Quall, Rayburn, Reams, Roland, Schoesler, Sehlin, Sheahan, Sheldon, Shin, Silver, Stevens, Talcott, Tate, Thomas, B., Thomas, L., Van Luven, Wood and Zellinsky - 45.

             Excused: Representatives Riley and Schmidt - 2.


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be the motion to concur in the Senate amendments to Engrossed Substitute House Bill No. 2688.


             Representatives G. Cole and Dorn spoke in favor of the motion to concur and Representatives Sheldon and Zellinsky spoke against it.


             Representative Forner demanded an electronic roll call vote and the demand was sustained.


ROLL CALL


             The Clerk called the roll on the motion to concur in the Senate amendments to Engrossed Substitute House Bill No. 2688 and the motion was carried by the following vote: Yeas - 50, Nays - 46, Absent - 0, Excused - 2.

             Voting yea: Representatives Anderson, Appelwick, Basich, Bray, Brown, Caver, Cole, G., Conway, Cothern, Dellwo, Dorn, Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Grant, Heavey, Jacobsen, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Lemmon, Leonard, Linville, Meyers, R., Moak, Morris, Myers, H., Ogden, Orr, Peery, Pruitt, Romero, Rust, Scott, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe and Mr. Speaker - 50.

             Voting nay: Representatives Backlund, Ballard, Ballasiotes, Brough, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cooke, Dyer, Edmondson, Foreman, Forner, Fuhrman, Hansen, Holm, Horn, Johanson, Kremen, Lisk, Long, Mastin, McMorris, Mielke, Padden, Patterson, Quall, Rayburn, Reams, Roland, Schoesler, Sehlin, Sheahan, Sheldon, Shin, Silver, Stevens, Talcott, Tate, Thomas, B., Thomas, L., Van Luven, Wood and Zellinsky - 46.

             Excused: Representatives Riley and Schmidt - 2.


POINT OF PERSONAL PRIVILEGE


             Representative Zellinsky: I just want to apologize to the sponsor of this bill because I agree that she's been a very strong supporter of women and if I've impugned her integrity, I humbly apologize.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2688 as amended by the Senate.


             Representatives Dorn and Caver spoke in favor of passage of the bill and Representatives Cooke and Chandler spoke against it.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2688, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 53, Nays - 43, Absent - 0, Excused - 2.

             Voting yea: Representatives Anderson, Appelwick, Basich, Bray, Brown, Campbell, Carlson, Caver, Cole, G., Conway, Cothern, Dellwo, Dorn, Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Grant, Heavey, Jacobsen, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Lemmon, Leonard, Linville, Mastin, Meyers, R., Moak, Morris, Myers, H., Ogden, Orr, Peery, Pruitt, Romero, Rust, Scott, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe and Mr. Speaker - 53.

             Voting nay: Representatives Backlund, Ballard, Ballasiotes, Brough, Brumsickle, Casada, Chandler, Chappell, Cooke, Dyer, Edmondson, Foreman, Forner, Fuhrman, Hansen, Holm, Horn, Johanson, Kremen, Lisk, Long, McMorris, Mielke, Padden, Patterson, Quall, Rayburn, Reams, Roland, Schoesler, Sehlin, Sheahan, Sheldon, Shin, Silver, Stevens, Talcott, Tate, Thomas, B., Thomas, L., Van Luven, Wood and Zellinsky - 43.

             Excused: Representatives Riley and Schmidt - 2.


             Engrossed Substitute House Bill No. 2688 as amended by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 6071, and asks the House to recede therefrom.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Holm moved that the House insist on its position regarding the House amendments to Engrossed Substitute Senate Bill No. 6071 and ask the Senate for a conference thereon.


             Representative Foreman spoke in favor of the motion. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker (Representative R. Meyers presiding) appointed Representatives Holm, Cothern and Van Luven as Conferees on Engrossed Substitute Senate Bill No. 6071.


MESSAGES FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SENATE BILL NO. 6074. The President has appointed the following members as Conferees; Senators Pelz, Moyer and McAuliffe

and the same is herewith transmitted


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SENATE BILL NO. 6438. The President has appointed the following members as Conferees; Senators Bauer, Prince and Drew

and the same is herewith transmitted


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 2643. The President has appointed the following members as Conferees; Senators Spanel, McDonald and Bauer

and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate concurred in the House amendments to SECOND SUBSTITUTE SENATE BILL NO. 5372 and passed the bill as amended by the House.

and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2850. The President has appointed the following members as Conferees; Senators Pelz, Moyer and McAuliffe

and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2319. The President has appointed the following members as Conferees; Senators Talmadge, Roach and A. Smith

and the same is herewith transmitted.


Marty Brown, Secretary


             On motion of Representative Peery, the House recessed until 6:00 p.m.


             The Speaker (Representative R. Meyers presiding) declared the House to be at recess until 6:00 p.m.


EVENING SESSION


             The Speaker (Representative Zellinsky presiding) called the House to order at 6:00 p.m.


             The Clerk called the roll and a quorum was present.


             The Speaker assumed the chair.


MESSAGE FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate has adopted:


SENATE CONCURRENT RESOLUTION NO. 8426,

and the same is herewith transmitted.


Marty Brown, Secretary


SENATE AMENDMENTS TO HOUSE BILL


March 4, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2815 with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 43.19.1906 and 1993 c 379 s 103 are each amended to read as follows:

             Insofar as practicable, all purchases and sales shall be based on competitive bids, and a formal sealed bid procedure shall be used as standard procedure for all purchases and contracts for purchases and sales executed by the state purchasing and material control director and under the powers granted by RCW 43.19.190 through 43.19.1939. This requirement also applies to purchases and contracts for purchases and sales executed by agencies, including educational institutions, under delegated authority granted in accordance with provisions of RCW 43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is not necessary for:

             (1) Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately;

             (2) Purchases not exceeding ((five)) one hundred thousand dollars, or subsequent limits as calculated by the office of financial management: PROVIDED, That the state director of general administration shall establish procedures to assure that purchases made by or on behalf of the various state agencies shall not be made so as to avoid the ((five)) one hundred thousand dollar bid limitation, or subsequent bid limitations as calculated by the office of financial management: PROVIDED FURTHER, That the state purchasing and material control director is authorized to reduce the formal sealed bid limits of ((five)) one hundred thousand dollars, or subsequent limits as calculated by the office of financial management, to a lower dollar amount for purchases by individual state agencies if considered necessary to maintain full disclosure of competitive procurement or otherwise to achieve overall state efficiency and economy in purchasing and material control. Quotations from four hundred dollars to ((five)) one hundred thousand dollars, or subsequent limits as calculated by the office of financial management, shall be secured from ((enough)) at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. The agency shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. A record of competition for all such purchases from four hundred dollars to ((five)) one hundred thousand dollars, or subsequent limits as calculated by the office of financial management, shall be documented for audit purposes ((on a standard state form approved by the forms management center under the provisions of RCW 43.19.510)). Purchases up to four hundred dollars may be made without competitive bids based on buyer experience and knowledge of the market in achieving maximum quality at minimum cost: PROVIDED, That this four hundred dollar direct buy limit without competitive bids may be increased incrementally as required to a maximum of eight hundred dollars with the approval of at least ten of the members of the state supply management advisory board, if warranted by increases in purchasing costs due to inflationary trends;

             (3) Purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation;

             (4) Purchases of insurance and bonds by the risk management office under RCW 43.19.1935;

             (5) Purchases and contracts for vocational rehabilitation clients of the department of social and health services: PROVIDED, That this exemption is effective only when the state purchasing and material control director, after consultation with the director of the division of vocational rehabilitation and appropriate department of social and health services procurement personnel, declares that such purchases may be best executed through direct negotiation with one or more suppliers in order to expeditiously meet the special needs of the state's vocational rehabilitation clients;

             (6) Purchases by universities for hospital operation or biomedical teaching or research purposes and by the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations;

             (7) Purchases by institutions of higher education not exceeding ((fifteen)) one hundred thousand dollars: PROVIDED, That for purchases between two thousand five hundred dollars and ((fifteen)) one hundred thousand dollars quotations shall be secured from ((enough)) at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. For purchases between two thousand five hundred dollars and one hundred thousand dollars, each institution of higher education shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. A record of competition for all such purchases made from two thousand five hundred to ((fifteen)) one hundred thousand dollars shall be documented for audit purposes; and

             (8) Beginning on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows: The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest one hundred dollars.


             Sec. 2. RCW 43.19.1908 and 1965 c 8 s 43.19.1908 are each amended to read as follows:

             Competitive bidding required by RCW 43.19.190 through 43.19.1939 shall be solicited by public notice, and through the sending of notices by mail, electronic transmission, or other means to bidders on the appropriate list of bidders who shall have qualified by application to the division of purchasing. Bids may be solicited by the purchasing division from any source thought to be of advantage to the state. All bids shall be in writing and conform to rules of the division of purchasing."


             On page 1, line 1 of the title, after "practices;" strike the remainder of the title and insert "and amending RCW 43.19.1906 and 43.19.1908."

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Anderson moved that the House not concur in the Senate amendments to Engrossed Substitute House Bill No. 2815 and ask the Senate for a conference thereon. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker appointed Representatives Anderson, Conway and L. Thomas as Conferees on Engrossed Substitute House Bill No. 2815.


             The Speaker called upon Representative Wang to preside.


SENATE AMENDMENTS TO HOUSE BILL


March 8, 1994


Mr. Speaker:


             The Senate receded from its amendment (2326-S.E AAS 3/1/94 S5389.3) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2326. Under suspension of the rules returned the bill to second reading and adopted the following amendments to page 2, lines 29, 31, and 32 and passed the bill as amended by the Senate:



             On page 2, line 29, after "From" strike "May" and insert "July"


             On page 2, line 31, after "equal to" strike "four and sixty-five one hundredths" and insert "five and thirty-four one-hundredths"


             On page 2, line 32, after "percent" insert "of the amount available prior to distributions provided under (a) through (k) of this subsection,"

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative R. Fisher moved that the House concur in the Senate amendments to Engrossed Substitute House Bill No. 2326 and pass the bill as amended by the Senate.


             Representative Schmidt spoke in favor of the motion. The motion was carried.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             The Speaker (Representative Wang presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2326 as amended by the Senate.


MOTIONS


             On motion of Representative Talcott, Representatives Horn, Padden, Reams, Sehlin and Wood were excused.

             On motion of Representative J. Kohl, Representatives Dellwo, Morris, Riley and Sommers were excused.


             Representative R. Fisher spoke in favor of passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2326, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 84, Nays - 5, Absent - 0, Excused - 9.

             Voting yea: Representatives Anderson, Appelwick, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Caver, Chappell, Cole, G., Conway, Cooke, Cothern, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Rust, Schmidt, Scott, Sheldon, Shin, Silver, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 84.

             Voting nay: Representatives Chandler, Lisk, Schoesler, Sheahan and Thomas, B. - 5.

             Excused: Representatives Dellwo, Horn, Morris, Padden, Reams, Riley, Sehlin, Sommers and Wood - 9.


             Engrossed Substitute House Bill No. 2326 as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL


March 7, 1994


Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2380 with the following amendments:


             On page 2, line 16, strike "receipt of malpractice coverage through a certified health plan" and insert "malpractice coverage provided by an employer"

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Zellinsky moved that the House concur in the Senate amendments to Substitute House Bill No. 2380 and pass the bill as amended by the Senate. The motion was carried.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             The Speaker (Representative Wang presiding) stated the question before the House to be final passage of Substitute House Bill No. 2380 as amended by the Senate.


             On motion of Representative J. Kohl, Representative Appelwick was excused.


             Representatives Zellinsky and Dyer spoke in favor of passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2380, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 88, Nays - 0, Absent - 0, Excused - 10.

             Voting yea: Representatives Anderson, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sheahan, Sheldon, Shin, Silver, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 88.

             Excused: Representatives Appelwick, Dellwo, Horn, Morris, Padden, Reams, Riley, Sehlin, Sommers and Wood - 10.


             Substitute House Bill No. 2380 as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL


March 7, 1994


Mr. Speaker:


             The Senate has concurred in the House amendment to SUBSTITUTE SENATE BILL NO. 6428 on page 6, after line 29; refuses to concur in the House amendments on page 8, line 22, and asks the House to recede therefrom.

and the same are herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative H. Myers moved that the House recede from its amendments to Substitute Senate Bill No. 6428 on page 8, line 22, and pass the bill without said amendments. The motion was carried.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             The Speaker (Representative Wang presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 6428 without House amendments on page 8 line 22.


             Representatives H. Myers and Edmondson spoke in favor of passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 6428, without House amendments on page 8 line 22, and the bill passed the House by the following vote: Yeas - 89, Nays - 0, Absent - 0, Excused - 9.

             Voting yea: Representatives Anderson, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 89.

             Excused: Representatives Appelwick, Dellwo, Horn, Morris, Padden, Reams, Riley, Sommers and Wood - 9.

             Substitute Senate Bill No. 6428 without House amendments to page 8 line 22, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE


March 7, 1994


Mr. Speaker:


             The Senate refuses to recede from its amendments to SUBSTITUTE HOUSE BILL NO. 1743, and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Talmadge, Prince and Fraser

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Rust moved that the House grant the request of the Senate for a conference on Substitute House Bill No. 1743. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker (Representative Wang presiding) appointed Representatives Rust, Flemming and Horn as Conferees on Substitute House Bill No. 1743.


MESSAGE FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate refuses to concur in the House amendments to SECOND SUBSTITUTE SENATE BILL NO. 6107 and asks the House for a conference thereon. The President has appointed the following members as Conferees; Senators Skratek, Cantu and Prentice

and the same is herewith transmitted.


Marty Brown, Secretary


MOTION


             Representative Rust moved that the House grants the request of the Senate for a conference on Second Substitute Senate Bill No. 6107. The motion was carried.


APPOINTMENT OF CONFEREES


             The Speaker (Representative Wang presiding) appointed Representatives Rust, H. Myers and Van Luven as Conferees on Second Substitute Senate Bill No. 6107.


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


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


MESSAGES FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate receded from its amendments to SECOND SUBSTITUTE HOUSE BILL NO. 2616, passed the bill without said amendments.

and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate has concurred in the House amendments to the following bills and passed the bills as amended by the House:


SENATE BILL NO. 6065,

SENATE BILL NO. 6080,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6084,

SUBSTITUTE SENATE BILL NO. 6138,

and the same are herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate refuses to grant the request of the House for a conference on ENGROSSED SUBSTITUTE SENATE BILL NO. 6071. The Senate has concurred in the House amendments and passed the bill as amended by the House and the same is herewith transmitted.


Marty Brown, Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 1652. The President has appointed the following members as Conferees; Senators A. Smith, Nelson, Moore and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 1159. The President has appointed the following members as Conferees; Senators Haugen, Winsley and Drew.

and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


March 7, 1994


Mr. Speaker:


             The President ruled the House amendments beyond the scope and object of ENGROSSED SUBSTITUTE SENATE BILL NO. 6111. The Senate refuses to concur in said amendments, and asks the House to recede therefrom.

and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary


             On motion of Representative Peery, the rules were suspended, and Engrossed Substitute Senate Bill No. 6111 was returned to second reading for the purpose of amendment.


             Representative Anderson moved adoption of the following amendment by Representative Anderson:


             On page 17, beginning on line 25, strike all of section 122 and correct internal references accordingly.


             Representatives Anderson and Ballard spoke in favor of the adoption of the amendment and it was adopted.


             With the consent of the House, the rules were suspended, the second reading considered the third, and the bill was placed on final passage.


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6111 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6111 as amended by the House, and the bill passed the House by the following vote: Yeas - 91, Nays - 1, Absent - 0, Excused - 6.

             Voting yea: Representatives Anderson, Appelwick, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Carlson, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 91.

             Voting nay: Representative Campbell - 1.

             Excused: Representatives Horn, Morris, Padden, Reams, Riley and Wood - 6.


             Engrossed Substitute Senate Bill No. 6111 as amended by the House, having received the constitutional majority, was declared passed.


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


INTRODUCTIONS AND FIRST READING

 

HCR 4437         by Representative Finkbeiner

 

Providing electronic access to legislative information.


             On motion of Representative Peery, the rules were suspended, and House Concurrent No. 4437 was advanced to second reading.


             House Concurrent Resolution No. 4437 was read the second time.


             With the consent of the House, the rules were suspended, the second reading considered the third, and the resolution was placed on final adoption.


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final adoption of House Concurrent Resolution No. 4437.


             Representative Finkbeiner spoke in favor of adoption of the resolution.


             House Concurrent Resolution No. 4437 was adopted.


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


SECOND READING


             SENATE BILL NO. 6584, by Senator Rinehart; by request of Department of Social and Health Services

 

Providing benefits under the family emergency assistance program.


             Senate Bill No. 6584 was read the second time.


             With the consent of the House, the rules were suspended, the second reading considered the third, and the bill was placed on final passage.


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Senate Bill No. 6584.


             Representatives Sommers and Silver spoke in favor of passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 6584, and the bill passed the House by the following vote: Yeas - 91, Nays - 1, Absent - 0, Excused - 6.

             Voting yea: Representatives Anderson, Appelwick, Backlund, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Carlson, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 91.

             Voting nay: Representative Campbell - 1.

             Excused: Representatives Horn, Morris, Padden, Reams, Riley and Wood - 6.


             Senate Bill No. 6584, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE


March 8, 1994


Mr. Speaker:


             The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE SENATE BILL NO. 6124. The President has appointed the following members as Conferees; Senators Prentice, Newhouse and Fraser.

and the same is herewith transmitted.


Marty Brown, Secretary


SENATE AMENDMENTS TO HOUSE BILL


March 3, 1994


Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2737 with the following amendments:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 43.163.010 and 1989 c 279 s 2 are each amended to read as follows:

             As used in this chapter, the following words and terms have the following meanings, unless the context requires otherwise:

             (1) "Authority" means the Washington economic development finance authority created under RCW 43.163.020 or any board, body, commission, department or officer succeeding to the principal functions of the authority or to whom the powers conferred upon the authority shall be given by law;

             (2) "Bonds" means any bonds, notes, debentures, interim certificates, conditional sales or lease financing agreements, lines of credit, forward purchase agreements, investment agreements, and other banking or financial arrangements, guaranties, or other obligations issued by or entered into by the authority. Such bonds may be issued on either a tax-exempt or taxable basis;

             (3) "Borrower" means one or more public or private persons or entities acting as lessee, purchaser, mortgagor, or borrower who has obtained or is seeking to obtain financing either from the authority or from an eligible banking organization that has obtained or is seeking to obtain funds from the authority to finance a project. A borrower may include a party who transfers the right of use and occupancy to another party by lease, sublease or otherwise, or a party who is seeking or has obtained a financial guaranty from the authority;

             (4) "Eligible banking organization" means any organization subject to regulation by the ((state supervisor of banking or the state supervisor of savings and loans)) director of the department of financial institutions, any national bank, federal savings and loan association, and federal credit union located within this state;

             (5) "Eligible export transaction" means any preexport or export activity by a person or entity located in the state of Washington involving a sale for export and product sale which, in the judgment of the authority: (a) Will create or maintain employment in the state of Washington, (b) will obtain a material percent of its value from manufactured goods or services made, processed or occurring in Washington, and (c) could not otherwise obtain financing on reasonable terms from an eligible banking organization;

             (6) "Eligible farmer" means any person who is a resident of the state of Washington and whose specific acreage qualifying for receipts from the federal department of agriculture under its conservation reserve program is within the state of Washington;

             (7) "Eligible person" means an individual, partnership, corporation, or joint venture carrying on business, or proposing to carry on business within the state and is seeking financial assistance under section 5 of this act;

             (8) "Financial assistance" means the infusion of capital to persons for use in the development and exploitation of specific inventions and products;

             (9) "Financing document" means an instrument executed by the authority and one or more persons or entities pertaining to the issuance of or security for bonds, or the application of the proceeds of bonds or other funds of, or payable to, the authority. A financing document may include, but need not be limited to, a lease, installment sale agreement, conditional sale agreement, mortgage, loan agreement, trust agreement or indenture, security agreement, letter or line of credit, reimbursement agreement, insurance policy, guaranty agreement, or currency or interest rate swap agreement. A financing document also may be an agreement between the authority and an eligible banking organization which has agreed to make a loan to a borrower;

             (((8))) (10) "Plan" means the general plan of economic development finance objectives developed and adopted by the authority, and updated from time to time, as required under RCW 43.163.090((.));

             (11) "Economic development activities" include, but are not limited to those activities related to: Manufacturing, processing, research, production, assembly, tooling, warehousing, export assistance, tourism, pollution control, energy generating, conservation, transmission, and sports facilities and industrial parks;

             (12) "Project costs" means costs of:

             (a) Acquisition, lease, construction, reconstruction, remodeling, refurbishing, rehabilitation, extension, and enlargement of land, rights to land, buildings, structures, docks, wharves, fixtures, machinery, equipment, excavations, paving, landscaping, utilities, approaches, roadways and parking, handling and storage areas, and similar ancillary facilities, and any other real or personal property included in an economic development activity;

             (b) Architectural, engineering, consulting, accounting, and legal costs related directly to the development, financing, acquisition, lease, construction, reconstruction, remodeling, refurbishing, rehabilitation, extension, and enlargement of an activity included under subsection (11) of this section, including costs of studies assessing the feasibility of an economic development activity;

             (c) Finance costs, including the costs of credit enhancement and discounts, if any, the costs of issuing revenue bonds, and costs incurred in carrying out any financing document;

             (d) Start-up costs, working capital, capitalized research and development costs, capitalized interest during construction and during the eighteen months after estimated completion of construction, and capitalized debt service or repair and replacement or other appropriate reserves;

             (e) The refunding of any outstanding obligations incurred for any of the costs outlined in this subsection; and

             (f) Other costs incidental to any of the costs listed in this section;

             (13) "Product" means a product, device, technique, or process that is or may be exploitable commercially. "Product" does not refer to pure research, but shall be construed to apply to products, devices, techniques, or processes that have advanced beyond the theoretic stage and are readily capable of being, or have been, reduced to practice;

             (14) "Financing agreements" means, and includes without limitation, a contractual arrangement with an eligible person whereby the authority obtains rights from or in an invention or product or proceeds from an invention or product in exchange for the granting of financial and other assistance to the person.


             Sec. 2. RCW 43.163.070 and 1990 c 53 s 4 are each amended to read as follows:

             The authority may use any funds legally available to it for any purpose specifically authorized by this chapter, or for otherwise improving economic development in this state by assisting businesses and farm enterprises that do not have access to capital at terms and rates comparable to large corporations due to the location of the business, the size of the business, the lack of financial expertise, or other appropriate reasons((: PROVIDED, That)). However, no funds of the state shall be used for such purposes; except that funds of the state may be used to support the administrative and technical assistance functions of the programs created under section 5 of this act.


             Sec. 3. RCW 43.163.080 and 1990 c 53 s 5 are each amended to read as follows:

             (1) The authority shall adopt general operating procedures for the authority. The authority shall also adopt operating procedures for individual programs as they are developed for obtaining funds and for providing funds to borrowers. These operating procedures shall be adopted by resolution prior to the authority operating the applicable programs.

             (2) The operating procedures shall include, but are not limited to: (a) Appropriate minimum reserve requirements to secure the authority's bonds and other obligations; (b) appropriate standards for securing loans and other financing the authority provides to borrowers, such as guarantees or collateral; and (c) ((appropriate)) strict standards for providing financing to borrowers, such as (i) the borrower is a responsible party with a high probability of being able to repay the financing provided by the authority, (ii) the financing is reasonably expected to provide economic growth or stability in the state by enabling a borrower to increase or maintain jobs or capital in the state, (iii) the borrowers with the greatest needs or that provide the most public benefit are given higher priority by the authority, and (iv) the financing is consistent with any plan adopted by the authority under RCW 43.163.090.


             Sec. 4. RCW 43.163.120 and 1989 c 279 s 13 are each amended to read as follows:

             The authority shall receive no appropriation of state funds; except that funds of the state may be used to support the administrative and technical assistance functions of the programs created under section 5 of this act. The department of community, trade, and economic development shall provide staff to the authority, to the extent permitted by law, to enable the authority to accomplish its purposes; the staff from the department of community, trade, and economic development may assist the authority in organizing itself and in designing programs, but shall not be involved in the issuance of bonds or in making credit decisions regarding financing provided to borrowers by the authority. The authority shall report each December on its activities to the ((house trade and economic development committee and to the senate economic development and labor committee)) appropriate standing committees of the house of representatives and senate.


             NEW SECTION. Sec. 5. A new section is added to chapter 43.163 RCW to read as follows:

             For the purpose of facilitating economic development in the state of Washington and encouraging the employment of Washington workers at meaningful wages:

             (1) The authority may develop and conduct a program or programs to provide nonrecourse revenue bond financing for the project costs for no more than five economic development activities included under the authority's existing general plan of economic development finance objectives;

             (2) The authority shall also develop and conduct a program that will stimulate and encourage the development of new products within Washington state by the infusion of financial aid for invention and innovation in situations in which the financial aid would not otherwise be reasonably available from commercial sources. The authority is authorized to provide nonrecourse revenue bond financing for this program.

             (a) For the purposes of this program, the authority shall have the following powers and duties:

             (i) To enter into financing agreements with eligible persons doing business in Washington state, upon terms and on conditions consistent with the purposes of this chapter, for the advancement of financial and other assistance to the persons for the development of specific products, procedures, and techniques, to be developed and produced in this state, and to condition the agreements upon contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it;

             (ii) Own, possess, and take license in patents, copyrights, and proprietary processes and negotiate and enter into contracts and establish charges for the use of the patents, copyrights, and proprietary processes when the patents and licenses for products result from assistance provided by the authority;

             (iii) Negotiate royalty payments to the authority on patents and licenses for products arising as a result of assistance provided by the authority;

             (iv) Negotiate and enter into other types of contracts with eligible persons that assure that public benefits will result from the provision of services by the authority; provided that the contracts are consistent with the state Constitution;

             (v) Encourage and provide technical assistance to eligible persons in the process of developing new products;

             (vi) Refer eligible persons to researchers or laboratories for the purpose of testing and evaluating new products, processes, or innovations; and

             (vii) To the extent permitted under its contract with eligible persons, to consent to a termination, modification, forgiveness, or other change of a term of a contractual right, payment, royalty, contract, or agreement of any kind to which the authority is a party.

             (b) Eligible persons seeking financial and other assistance under this program shall forward an application, together with an application fee prescribed by rule, to the authority. An investigation and report concerning the advisability of approving an application for assistance shall be completed by the staff of the authority. The investigation and report may include, but is not limited to, facts about the company under consideration as its history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects, integrity of management as well as the feasibility of the proposed product and invention to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report set out in this subsection and after other action as is deemed appropriate, the application shall be approved or denied by the authority. The applicant shall be promptly notified of action by the authority. In making the decision as to approval or denial of an application, priority shall be given to those persons operating or planning to operate businesses of special importance to Washington's economy, including, but not limited to: (i) Existing resource-based industries of agriculture, forestry, and fisheries; (ii) existing advanced technology industries of electronics, computer and instrument manufacturing, computer software, and information and design; and (iii) emerging industries such as environmental technology, biotechnology, biomedical sciences, materials sciences, and optics.

             (3) The authority may also develop and implement such other economic development financing programs adopted in future general plans of economic development finance objectives developed under RCW 43.163.090.


             NEW SECTION. Sec. 6. 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. 7. 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."


             On page 1, line 2 of the title, after "authority;" strike the remainder of the title and insert "amending RCW 43.163.010, 43.163.070, 43.163.080, and 43.163.120; adding a new section to chapter 43.163 RCW; and declaring an emergency."

and the same are herewith transmitted.


Marty Brown, Secretary

MOTION


             Representative Ogden moved that the House not concur in the Senate amendments to Engrossed Substitute House Bill No. 2737 and again ask the Senate to recede therefrom. The motion was carried.


SECOND READING


             SECOND SUBSTITUTE SENATE BILL NO. 6347, by Senate Committee on Ways & Means (originally sponsored by Senators Skratek, Sellar, Gaspard, Owen, Bluechel, Pelz, Winsley, McAuliffe, Quigley, Ludwig, A. Smith, Deccio, Moyer and M. Rasmussen; by request of Governor Lowry)

 

Providing tax credits and deferrals for high-technology businesses.


             The bill was read the second time. Committee on Revenue recommendation: Majority, do pass as amended. (For committee amendment see Journal, 50th Day, February 28, 1994.)


             Representative G. Fisher moved the adoption of the committee amendment. Representatives G. Fisher and Foreman spoke against adoption of the committee amendment. The committee amendment was not adopted.


             Representative G. Fisher moved adoption of the following amendment by Representative G. Fisher:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature finds that high-wage, high-skilled jobs are vital to the economic health of the state's citizens, and that targeted tax incentives will encourage the formation of high-wage, high-skilled jobs. The legislature also finds that tax incentives should be subject to the same rigorous requirements for efficiency and accountability as are other expenditure programs, and that tax incentives should therefore be focused to provide the greatest possible return on the state's investment.

             The legislature also finds that high-technology businesses are a vital and growing source of high-wage, high-skilled jobs in this state, and that the high-technology sector is a key component of the state's effort to encourage economic diversification. However, the legislature finds that many high-technology businesses incur significant costs associated with research and development and pilot scale manufacturing many years before a marketable product can be produced, and that current state tax policy discourages the growth of these companies by taxing them long before they become profitable.

             The legislature further finds that stimulating growth of high-technology businesses early in their development cycle, when they are turning ideas into marketable products, will build upon the state's established high-technology base, creating additional research and development jobs and subsequent manufacturing facilities.

             For these reasons, the legislature hereby establishes a program of business and occupation tax credits for qualified research and development expenditures. The legislature also hereby establishes a tax deferral program for high-technology research and development and pilot scale manufacturing facilities. The legislature declares that these limited programs serve the vital public purpose of creating employment opportunities in this state. The legislature further declares its intent to create a contract within the meaning of Article I, section 23 of the state Constitution as to those businesses that make capital investments in consideration of the tax deferral program established in this chapter.


             NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

             (1) In computing the tax imposed under this chapter, a credit is allowed for each person whose research and development spending during the year in which the credit is claimed exceeds 0.92 percent of the person's taxable amount during the same calendar year.

             (2) The credit is equal to the greater of the amount of qualified research and development expenditures of a person or eighty percent of amounts received by a person other than a public educational or research institution in compensation for the conduct of qualified research and development, multiplied by the rate of 0.515 percent in the case of a nonprofit corporation or nonprofit association engaging within this state in research and development, and 2.5 percent for every other person.

             (3) Any person entitled to the credit provided in subsection (2) of this section as a result of qualified research and development conducted under contract may assign all or any portion of the credit to the person contracting for the performance of the qualified research and development.

             (4) The credit, including any credit assigned to a person under subsection (3) of this section, shall be taken against taxes due for the same calendar year in which the qualified research and development expenditures are incurred. The credit, including any credit assigned to a person under subsection (3) of this section, for calendar year 1994 shall not exceed the lesser of one million dollars or the taxes otherwise due under this chapter for the period July 1, 1994 through December 31, 1994. The credit, including any credit assigned to a person under subsection (3) of this section, for each calendar year thereafter shall not exceed the lesser of two million dollars or the amount of tax otherwise due under this chapter for the calendar year.

             (5) Any person taking the credit, including any credit assigned to a person under subsection (3) of this section, whose research and development spending during the calendar year in which the credit is claimed fails to exceed 0.92 percent of the person's taxable amount during the same calendar year shall be liable for payment of the additional taxes represented by the amount of credit taken together with interest, but not penalties. Interest shall be due at the rate provided for delinquent excise taxes retroactively to the date the credit was taken until the taxes are paid. Any credit assigned to a person under subsection (3) of this section that is disallowed as a result of this section may be taken by the person who performed the qualified research and development subject to the limitations set forth in subsection (4) of this section.

             (6) Any person claiming the credit, and any person assigning a credit as provided in subsection (3) of this section, shall file an affidavit form prescribed by the department which shall include the amount of the credit claimed, an estimate of the anticipated qualified research and development expenditures during the calendar year for which the credit is claimed, an estimate of the taxable amount during the calendar year for which the credit is claimed, and such additional information as the department may prescribe.

             (7) A person claiming the credit shall agree to supply the department with information necessary to measure the results of the tax credit program for qualified research and development expenditures.

             (8) For the purpose of this section:

             (a) "Qualified research and development expenditures" means operating expenses, including wages, compensation of a proprietor or a partner in a partnership as determined under rules adopted by the department, benefits, supplies, and computer expenses, directly incurred in qualified research and development by a person claiming the credit provided in this section. The term does not include amounts paid to a person other than a public educational or research institution to conduct qualified research and development. Nor does the term include capital costs and overhead, such as expenses for land, structures, or depreciable property.

             (b) "Qualified research and development" shall have the same meaning as in section 3 of this act.

             (c) "Research and development spending" means qualified research and development expenditures plus eighty percent of amounts paid to a person other than a public educational or research institution to conduct qualified research and development.

             (d) "Taxable amount" means the taxable amount subject to the tax imposed in this chapter required to be reported on the person's combined excise tax returns during the year in which the credit is claimed, less any taxable amount for which a credit is allowed under RCW 82.04.440.

             (9) This section shall expire July 1, 1997.


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

             (1) "Advanced computing" means technologies used in the designing and developing of computing hardware and software, including innovations in designing the full spectrum of hardware from hand-held calculators to super computers, and peripheral equipment.

             (2) "Advanced materials" means materials with engineered properties created through the development of specialized processing and synthesis technology, including ceramics, high value-added metals, electronic materials, composites, polymers, and biomaterials.

             (3) "Applicant" means a person applying for a tax deferral under this chapter.

             (4) "Biotechnology" means the application of technologies, such as recombinant DNA techniques, biochemistry, molecular and cellular biology, genetics and genetic engineering, cell fusion techniques, and new bioprocesses, using living organisms, or parts of organisms, to produce or modify products, to improve plants or animals, to develop microorganisms for specific uses, to identify targets for small molecule pharmaceutical development, or to transform biological systems into useful processes and products or to develop microorganisms for specific uses. 

             (5) "Department" means the department of revenue.

             (6) "Electronic device technology" means technologies involving microelectronics; semiconductors; electronic equipment and instrumentation; radio frequency, microwave, and millimeter electronics; and optical and optic-electrical devices; and data and digital communications and imaging devices.

             (7) "Eligible investment project" means that portion of an investment project which either initiates a new operation, or expands or diversifies a current operation by expanding, renovating, or equipping an existing facility with costs in excess of twenty-five percent of the true and fair value of the facility prior to improvement. The lessor or owner of the qualified building is not eligible for a deferral unless the underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person, or unless the lessor by written contract agrees to pass the economic benefit of the deferral to the lessee in the form of reduced rent payments.

             (8) "Environmental technology" means assessment and prevention of threats or damage to human health or the environment, environmental cleanup, and the development of alternative energy sources.

             (9) "Investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction or improvement of the project.

             (10) "Person" has the meaning given in RCW 82.04.030.

             (11) "Pilot scale manufacturing" means design, construction, and testing of preproduction prototypes and models in the fields of biotechnology, advanced computing, electronic device technology, advanced materials, and environmental technology other than for commercial sale. As used in this subsection, "commercial sale" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

             (12) "Qualified buildings" means structures used for pilot scale manufacturing or qualified research and development, including plant offices and other facilities that are an essential or an integral part of a structure used for pilot scale manufacturing or qualifying research and development. If a building is used partly for pilot scale manufacturing or qualifying research and development, and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

             (13) "Qualified machinery and equipment" means fixtures, equipment, and support facilities that are an integral and necessary part of a pilot scale manufacturing or qualified research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment, instrumentation, and other devices used in a process of experimentation to develop a new or improved pilot model, plant process, product, formula, invention, or similar property; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; vats, tanks, and fermenters; operating structures; and all other equipment used to control, monitor, or operate the machinery. For purposes of this chapter, qualified machinery and equipment must be either new to the taxing jurisdiction of the state or new to the certificate holder, except that used machinery and equipment may be treated as qualified machinery and equipment if the certificate holder either brings the machinery and equipment into Washington or makes a retail purchase of the machinery and equipment in Washington or elsewhere.

             (14) "Qualified research and development" means research and development performed within this state in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.

             (15) "Recipient" means a person receiving a tax deferral under this chapter.

             (16) "Research and development" means activities performed to discover technological information, and technical and nonroutine activities concerned with translating technological information into new or improved products, processes, techniques, formulas, inventions, or software. The term includes exploration of a new use for an existing drug, device, or biological product if the new use requires separate licensing by the federal food and drug administration under chapter 21, C.F.R., as amended. The term does not include adaptation or duplication of existing products where the products are not substantially improved by application of the technology, nor does the term include surveys and studies, social science and humanities research, market research or testing, quality control, sale promotion and service, computer software developed for internal use, and research in areas such as improved style, taste, and seasonal design.


             NEW SECTION. Sec. 4. Application for deferral of taxes under this chapter must be made before July 1, 1997, and before initiation of construction of, or acquisition of equipment or machinery for the investment project. The application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the location of the investment project, the applicant's average employment in the state for the prior year, estimated or actual new employment related to the project, estimated or actual wages of employees related to the project, estimated or actual costs, time schedules for completion and operation, and other information required by the department. The department shall rule on the application within sixty days.

             Applicants for deferral of taxes under this chapter shall agree to supply the department with nonproprietary information necessary to measure the results of the tax deferral program for high-technology research and development and pilot scale manufacturing facilities.


             NEW SECTION. Sec. 5. (1) Except as provided in subsection (2) of this section, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project.

             (2) No certificate may be issued for an investment project that has already received a deferral under chapters 82.60 or 82.61 RCW or this chapter, except that an investment project for qualified research and development that has already received a deferral may also receive an additional deferral certificate for adapting the investment project for use in pilot scale manufacturing.

             (3) This section shall expire July 1, 1997.


             NEW SECTION. Sec. 6. (1) Except as provided in subsections (2) and (3) of this section, a recipient shall begin paying taxes deferred under this chapter on December 31st of the third calendar year after the date certified by the department as the date on which the investment project has been operationally completed, or on December 31st of the fifth calendar year after the certificate was granted, whichever is sooner. Subsequent annual payments shall be due on December 31st of the following four years with amounts of payment scheduled as follows:


             Repayment Year                                                                % of Deferred Tax Repaid

                          1                                                                                                      10%

                          2                                                                                                      15%

                          3                                                                                                      20%

                          4                                                                                                      25%

                          5                                                                                                      30%


             (2) A recipient that is an institution recognized as a comprehensive cancer center by the national cancer institute before April 20, 1983, shall begin paying taxes deferred under this chapter on December 31st of the third calendar year after the date certified by the department as the date on which the investment project has been operationally completed, or on December 31st of the fifth calendar year after the certificate was granted, whichever is sooner. Subsequent annual payments shall be due on December 31st of the following four years with amounts of payment scheduled as follows:


             Repayment Year                                                                % of Deferred Tax Repaid

                          1                                                                                                      10%

                          2                                                                                                      12%

                          3                                                                                                      14%

                          4                                                                                                      28%

                          5                                                                                                      36%


             (3) A recipient of a tax deferral on an investment project for qualified research and development on, or pilot scale manufacturing of, a drug, device, or biological product that requires licensing by the federal food and drug administration under chapter 21, C.F.R., as amended, shall begin paying taxes deferred under this chapter on December 31st of the fifth calendar year after the date certified by the department as the date on which the investment project has been operationally completed, or on December 31st of the seventh calendar year after the certificate was granted, whichever is sooner. Subsequent annual payments shall be due on December 31st of the following five years with amounts of payment scheduled as follows:


             Repayment Year                                                                % of Deferred Tax Repaid

                          1                                                                                                      10%

                          2                                                                                                      10%

                          3                                                                                                      15%

                          4                                                                                                      20%

                          5                                                                                                      20%

                          6                                                                                                      25%


             (4) The department may authorize an accelerated repayment schedule upon request of the recipient.

             (5) Interest may not be charged on taxes deferred under this chapter for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this chapter. The debt for deferred taxes will not be extinguished by insolvency or other failure of the recipient.


             NEW SECTION. Sec. 7. If an investment project is used for purposes other than qualified research and development or pilot scale manufacturing prior to repayment of the taxes deferred under this chapter, the amount of the deferred taxes outstanding for the project is immediately due.


             NEW SECTION. Sec. 8. Chapter 82.32 RCW applies to the administration of this chapter.


             NEW SECTION. Sec. 9. Applications and other information received by the department under this chapter are not confidential and are subject to disclosure.


             NEW SECTION. Sec. 10. The department shall perform an assessment of the results of the tax credit and tax deferral programs authorized under chapters 82.60, 82.61, and 82.62 RCW and deliver a report on the assessment to the governor and the legislature by January 1, 1997. The assessments shall measure the effect of the programs on job creation, company growth, the introduction of new products, the diversification of the state's economy, growth in research and development investment, the movement of firms or the consolidation of firms' operations into the state, and such other factors as the department selects.


             NEW SECTION. Sec. 11. Sections 1 and 3 through 9 of this act shall constitute a new chapter in Title 82 RCW.


             NEW SECTION. Sec. 12. This act shall take effect July 1, 1994."


             Representatives G. Fisher and Foreman spoke in favor of the adoption of the amendment and the amendment was adopted.


             With the consent of the House, the rules were suspended, the second reading considered the third, and the bill was placed on final passage.


             The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Second Substitute Senate Bill No. 6347 as amended by the House.


MOTIONS


             On motion of Representative Talcott, Representative Carlson was excused.


             On motion of Representative J. Kohl, Representatives Appelwick and Zellinsky were excused.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 6347 as amended by the House, and the bill passed the House by the following vote: Yeas - 83, Nays - 5, Absent - 0, Excused - 10.

             Voting yea: Representatives Anderson, Backlund, Ballard, Ballasiotes, Basich, Bray, Brown, Brumsickle, Campbell, Casada, Caver, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Mastin, McMorris, Meyers, R., Mielke, Moak, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Roland, Romero, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, B., Thomas, L., Van Luven, Veloria, Wang, Wineberry and Mr. Speaker - 83.

             Voting nay: Representatives Brough, Fisher, R., Jacobsen, Rust and Wolfe - 5.

             Excused: Representatives Appelwick, Carlson, Horn, Morris, Padden, Reams, Riley, Valle, Wood and Zellinsky - 10.


             Second Substitute Senate Bill No. 6347, as amended by the House, having received the constitutional majority, was declared passed.


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


MOTION


             On motion of Representative Peery, the House adjourned until 9:00 a.m., Wednesday, March 9, 1994.


BRIAN EBERSOLE, Speaker

MARILYN SHOWALTER, Chief Clerk