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FIFTY-THIRD DAY


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MORNING SESSION


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Senate Chamber, Olympia, Thursday, March 3, 1994

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

      The Sergeant at Arms Color Guard, consisting of Pages Jeff Smith and Keola Eng, presented the Colors. Reverend Gary Gulbranson, pastor of the Westminster Chapel of Bellevue, and a guest of Senator McDonald, offered the prayer.


MOTION


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


REPORT OF STANDING COMMITTEE

GUBERNATORIAL APPOINTMENT


March 2, 1994

GA 9437            DR. FRANK B. BROUILLET, appointed January 28, 1994, for a term ending June 30, 1997, as a member of the Higher Education Coordinating Board.

                           Reported by Committee on Higher Education


      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Vice Chair; Cantu, Prince, Quigley, Sheldon and West.


      Passed to Committee on Rules.


MESSAGES FROM THE GOVERNOR


March 2, 1994


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following appointment, subject to your confirmation.

      Robert Turner, appointed March 2, 1994, for a term ending at the Governor's pleasure, as Director of the Department of Fish and Wildlife.

Sincerely,

MIKE LOWRY, Governor


March 2, 1994


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following appointment, subject to your confirmation.

      Mike Fitzgerald, appointed March 2, 1994, for a term ending at the Governor's pleasure, as Director of the Department of Trade and Economic Development.

Sincerely,

MIKE LOWRY, Governor



SECOND READING

GUBERNATORIAL APPOINTMENT


MOTION


      On motion of Senator Adam Smith, Gubernatorial Appointment No. 9336, Robert Lasnik, as Chair of the Sentencing Guidelines Commission, was confirmed.


APPOINTMENT OF ROBERT LASNIK


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 40; Nays, 0; Absent, 3; Excused, 6.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Williams and Winsley - 40.

      Absent: Senators Haugen, Niemi and Vognild - 3.

      Excused: Senators Anderson, Prince, Rinehart, Smith, L., West and Wojahn - 6.


MOTION


      On motion of Senator Drew, Senators Haugen and Vognild were excused.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2246, by House Committee on Education (originally sponsored by Representatives B. Thomas, Dorn, Brough, Cothern, Brumsickle, Pruitt, Dyer, Karahalios, Stevens, L. Thomas, Eide and Basich)

 

Changing provisions relating to substitute school employees.


      The bill was read the second time.


MOTION


      On motion of Senator Pelz, the rules were suspended, Substitute House Bill No. 2246 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2246.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2246 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams and Winsley - 42.

      Excused: Senators Anderson, Haugen, Niemi, Prince, Rinehart, Vognild and Wojahn - 7.

      SUBSTITUTE HOUSE BILL NO. 2246, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1182, by House Committee on Education (originally sponsored by Representatives Brumsickle, Karahalios, Dorn, Chandler, Peery, G. Cole, Zellinsky, Chappell, Jacobsen, Basich, Carlson, Wood, B. Thomas, Brough, Cothern, Van Luven, Johanson, Shin, Jones, Morton, Ballard, Padden, Fuhrman, Sheahan, Talcott, Schoesler, Long, Eide, Flemming, Wang, Horn, Mielke, Tate, Springer, Cooke, Dyer, Leonard, Foreman, Vance, Pruitt and Finkbeiner)

 

Allowing retired teachers to work in educational institutions for ninety days per school year without a reduction in benefits.


      The bill was read the second time.


MOTIONS


      On motion of Senator Pelz, the following Committee on Education amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature finds that there is a shortage of certificated substitute teachers in many regions of the state, and that this shortage will likely increase in the coming years. The legislature further finds that one method of reducing this shortage of substitute teachers is to encourage retired teachers to serve as substitutes by increasing the number of days they can work without affecting their retirement payments.

       Sec. 2. RCW 41.32.570 and 1989 c 273 s 29 are each amended to read as follows:

       (1) Any retired teacher who enters service in any public educational institution in Washington state shall cease to receive pension payments while engaged in such service: PROVIDED, That service may be rendered up to seventy-five days per school year without reduction of pension.

       (2) In addition to the seventy-five days of service permitted under subsection (1) of this section, a retired teacher may also serve only as a substitute teacher for up to an additional fifteen days per school year without reduction of pension if:

       (a) A school district, which is not a member of a multidistrict substitute cooperative, determines that it has exhausted or can reasonably anticipate that it will exhaust its list of qualified and available substitutes and the school board of the district adopts a resolution to make its substitute teachers who are retired teachers eligible for the additional fifteen days of extended service once the list of qualified and available substitutes has been exhausted. The resolution by the school district shall state that the services of retired teachers are necessary to address the shortage of qualified and available substitutes. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with a list of retired teachers who have been employed as substitute teachers to the department and may notify the retired teachers included on the list of their right to take advantage of the provisions of this subsection; or

       (b) A multidistrict substitute cooperative determines that the school districts have exhausted or can reasonably anticipate that they will exhaust their list of qualified and available substitutes and each of the school boards adopts a resolution to make their substitute teachers who are retired teachers eligible for the extended service once the list of qualified and available substitutes has been exhausted. The resolutions by each of the school districts shall state that the services of retired teachers are necessary to address the shortage of qualified and available substitutes. The resolutions shall be valid only for the school year in which they are adopted. The cooperative shall forward a copy of the resolutions with a list of retired teachers who have been employed as substitute teachers to the department and may notify the retired teachers included on the list of their right to take advantage of the provisions of this subsection.

       (3) Subsection (1) of this section shall apply to all persons governed by the provisions of plan I, regardless of the date of their retirement, but shall apply only to benefits payable after June 11, 1986.

       (4) Subsection (2) of this section shall apply to all persons governed by the provisions of plan I, regardless of the date of their retirement, but shall only apply to benefits payable after September 1, 1994."

      On motion of Senator Pelz, the rules were suspended, Engrossed Substitute House Bill No. 1182, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


POINT OF INQUIRY


      Senator Winsley: "Senator Pelz, in subsection 2 of the bill, it authorizes the school board or each school board in a multi-district substitute cooperative to pass a resolution which allows substitute teachers who are retired teachers to exceed the seventy-five days of service. Could the board resolution define the shortage of qualified and available substitutes to be in specific areas? For instance, could the shortage be stated as a lack of qualified and available substitute teachers in any one or more grade levels or subject areas, such as secondary mathematics, elementary P.E. etc.?"

      Senator Pelz: "Yes, the local school board or each school board in a multi-district substitute cooperative may, through this resolution, define the shortage as they know it to exist. The resolution may declare a shortage in all substitute areas or in specific grade levels or subject areas."

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1182, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1182, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams and Winsley - 43.

      Excused: Senators Anderson, Haugen, Niemi, Rinehart, Vognild and Wojahn - 6.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1182, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2392, by Representatives Mastin, Ballasiotes, Appelwick, Grant, Kessler, Dorn, Schoesler, Roland, Sheahan, R. Meyers, Wineberry, Long, Talcott, Van Luven, Johanson, Campbell, Fuhrman, Brumsickle, Wood, Silver, Kremen, Dyer, J. Kohl, Conway, Jones, Springer and McMorris

 

Including residential burglary in crimes of violence.


      The bill was read the second time.


MOTION


      On motion of Senator Adam Smith, the rules were suspended, House Bill No. 2392 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2392.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2392 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams and Winsley - 45.

      Excused: Senators Anderson, Rinehart, Vognild and Wojahn - 4.

      HOUSE BILL NO. 2392, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 1743, by House Committee on Environmental Affairs (originally sponsored by Representatives Flemming, Horn, Rust, Linville, Valle and J. Kohl)

 

Establishing a pilot multimedia program for pollution prevention.


      The bill was read the second time.


MOTIONS


      On motion of Senator Fraser, the following Committee on Ecology and Parks amendment was adopted:

      On page 1, line 5, after "follows:" strike everything through "department." on page 2, line 16, and insert the following:

       "(1) Not later than January 1, 1995, the department shall designate an industry type and up to ten individual facilities within that industry type to be the focus of a pilot multimedia program. The program shall be designed to coordinate department actions related to environmental permits, plans, approvals, certificates, registrations, technical assistance, and inspections. The program shall also investigate the feasibility of issuing facility-wide permits. The director shall determine the industry type and facilities based on:

       (a) A review of at least three industry types; and

       (b) Criteria which shall include at least the following factors:

       (i) The potential for the industry to serve as a state-wide model for multimedia environmental programs including pollution prevention;

       (ii) Whether the industry type is subject to regulatory requirements relating to at least two of the following subject areas: Air quality, water quality, or hazardous waste management;

       (iii) The existence within the industry type of a range of business sizes; and

       (iv) Voluntary participation in the program.

       (2) Not later than January 1, 1997, the department shall submit to the governor and the appropriate standing committees of the legislature:

       (a) A report evaluating the pilot multimedia program. The report shall consider the program's effect on the efficiency and effectiveness of program delivery and shall evaluate the feasibility of expanding the program to other industry types; and

       (b) A report analyzing the feasibility of a facility-wide permit program.

       (3) In developing the program, the department shall consult with and seek the cooperation of the environmental protection agency.

       (4) For purposes of this section, "facility-wide permit" means a single multimedia permit issued by the department to the owner or operator of a facility incorporating the permits and any other relevant department approvals previously issued to the owner or operator or currently required by the department."


      On motion of Senator Fraser, the following Committee on Ecology and Parks amendment was adopted:

      On page 2, after line 16, insert the following:

       "NEW SECTION. Sec. 2. The purpose of sections 2 through 6 of this act is to establish a pilot program to encourage environmental permit program efficiency and pollution prevention through increased private sector participation in the preparation of wastewater discharge permits and performance of wastewater discharge permit compliance assurance activities currently administered by the department of ecology.

       The legislature recognizes that pollution prevention can often be accomplished through cooperative partnerships between government and industry and through voluntary changes in industrial production methods. By utilizing expertise available in the private sector, the pilot program provided for in sections 2 through 6 of this act is intended to reduce the backlog of expired wastewater discharge permits and increase the frequency of compliance assurance activities in order to better protect the water quality of the state.

       The legislature intends that the pilot program be implemented without an increase in government expenditures. The legislature also intends that the pilot program be implemented through the use of technical assistance and administrative guidelines. It is not the intent of this act to authorize additional rule making.

       The provisions in this act do not affect the authority of the department to bring enforcement actions, nor do they affect provisions in existing law for public participation and rights of appeal of permit decisions.

       NEW SECTION. Sec. 3. A new section is added to chapter 90.48 RCW to read as follows:

       (1) For the period beginning July 1, 1994, and ending July 1, 1996, the department shall conduct a pilot program to test the feasibility and effectiveness of allowing certain industries which require a permit, renewal, or modification under RCW 90.48.260 to submit a draft permit and fact sheet in lieu of an application form.

       (2) In implementing the pilot program, the department shall:

       (a) Establish criteria for types of applicants that are eligible to submit draft permits and fact sheets. Such criteria shall include:

       (i) Consideration of the applicant's compliance history; and

       (ii) The potential for the industry to serve as a model for increased private sector participation in permit preparation;

       (b) Develop guidelines specifying the elements of a complete draft permit and fact sheet;

       (c) Make available a list of approved contractors with whom applicants may contract for draft permit preparation; and

       (d) Document cost and time savings resulting from draft permit preparation by applicants and reflect these savings in the next revision of permit fees for such applicants. Any reduction in fees for permittees participating in the pilot program shall not cause an increase in fees for other permittees.

       Nothing in this section affects the requirements for public participation and right of appeal under RCW 90.48.260 and chapter 43.21B RCW. The department shall retain full authority under this chapter to approve, modify, or disapprove any draft permit or fact sheet submitted under this section.

       NEW SECTION. Sec. 4. A new section is added to chapter 90.48 RCW to read as follows:

       (1) Beginning July 1, 1994, and ending July 1, 1996, the department shall conduct a pilot program to test the feasibility and effectiveness of allowing industrial permittees to contract with private consultants for the performance of annual compliance inspections required of major dischargers under federal law. As part of the program, the department shall allow at least ten major dischargers to contract directly with a consultant identified pursuant to subsection (2) of this section for the performance of annual compliance inspections.

       (2) The department shall:

       (a) Upon request of a permittee, approve individual permittees who are eligible to hire contractors for compliance inspections. In making this determination, the department shall consider the permittee's compliance history and the potential for the facility to serve as a model for private sector cooperation in pollution prevention;

       (b) Make available a list of approved contractors with whom permittees may contract for compliance inspections. Before receiving approval from the department, such firms shall sign an agreement with the department stating that: (i) They will be available to participate in any legal proceedings that may arise as a result of conducting such inspections for four years after the inspection; and (ii) they will not accept employment for purposes other than conducting inspections with any firm they or their business have inspected for four years after the final report of the inspection; and

       (c) Document the time and cost savings resulting from privately contracted inspections and reflect these savings in the next revision of permit fees for such permittees. Any reduction in fees for permittees participating in the pilot program shall not cause an increase in fees for other permittees.

       (3) To be eligible under this section, the discharger shall agree that the information obtained as part of compliance inspections contracted pursuant to this section shall not be subject to attorney-client privilege. The report of such inspections shall be submitted concurrently to both the permittee and the department.

       (4) Nothing in this section affects the authority of the department to bring enforcement actions under this chapter.

       NEW SECTION. Sec. 5. By July 1, 1995, the department shall provide an interim report to the legislature evaluating the effectiveness of the pilot program authorized in sections 3 and 4 of this act. A final report shall be submitted by December 1, 1996.

       NEW SECTION. Sec. 6. If any part of this act if found to be in conflict with federal requirements, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned."


MOTION


      Senator Franklin moved that the following amendment by Senators Franklin, Talmadge, Fraser, Prentice and Pelz be adopted:

      On page 2, line 16, after "department" insert the following:

      "NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 3 through 4 of this act.

      (1) "Environmental facility" means a facility that has:

      (a) Reported under the toxic release inventory (section 313) of the federal emergency planning and community right-to-know act (P.L. 99-499, Title III); or

      (b) Been placed on the hazardous sites list, as maintained by the department of ecology, pursuant to RCW 70.105D.030; or

      (c) Interim status or a final permit from either the department of ecology or the environmental protection agency as a treatment, storage, or disposal facility.

      (2) "Low-income community" means any census tract or subdivision thereof in which thirty percent or more of the population lives below the federal poverty level.

      (3) "Minority community" means any census tract or subdivision thereof that includes twenty-five percent or more of any racial or ethnic group.

      (4) "Toxic chemicals" means any substance reported under the toxic release inventory (section 313) of the federal emergency planning and community right-to-know act (P.L. 99-499, Title III) on the effective date of this section.

      (5) "Tract" means any census tract or block numbering area identified and designated in the state by the United States census bureau in the latest census available.

      NEW SECTION. Sec. 3. By June 30, 1995, the department of ecology and the department of health shall jointly prepare a report to the legislature providing information on the distribution of reported toxic chemical releases and environmental facilities in relation to minority and low-income census tracts. The report shall include the following elements:

      (1) A breakdown of the population by race and ethnicity, and the percentage of persons below the federal poverty level for each census tract;

      (2) A survey indicating the location and types of permitted environmental facilities located within each census tract in the state;

      (3) A list of tracts ranked in order of the amount of toxic chemicals released during the most recent five years based on information reported in the toxic release inventory required under the federal emergency planning and community right-to-know act. For the purposes of this study, the fifty tracts with the highest total toxic releases shall be referred to as "environmental high impact areas"; and

      (4) Recommendations on further studies and/or actions that could be taken by the legislature or the departments of ecology and health to address environmental equity concerns.

      NEW SECTION. Sec. 4. The study authorized under section 3 of this act shall not apply to toxic substances releases or environmental facilities associated with agricultural operations, including those that use, store, or dispose of pesticides or herbicides."


POINT OF ORDER


      Senator Amondson: "I would like to raise the scope and object on this amendment. On New Section 3, as I understand the bill, the bill is to establish a multimedia program for pollution prevention and Section 3 expands the scope with respect to a survey indicating the location and types of permitted environmental facilities located within each census tract in the state. New Section 4 says that it does not apply to agricultural operations, but it would apply to ports and other facilities, so I think it does expand the scope and object of the bill."

      Further debate ensued.

      There being no objection, the President deferred further consideration of Substitute House Bill No. 1743.


MOTION


      At 9:40 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.


      The Senate was called to order at 11:32 a.m. by President Pritchard.

      There being no objection, the President returned the Senate to the first order of business.


REPORTS OF STANDING COMMITTEES


March 2, 1994

SB 6608             Prime Sponsor, Senator Rinehart: Relating to the business and occupation taxation of moneys received by health and social welfare organizations from governmental entities for health or social welfare services. Reported by Committee on Ways and Means


      MAJORITY Recommendation: That Substitute Senate Bill No. 6608 be substituted therefor, and the substitute bill do pass. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, Moyer, Snyder, Spanel, Sutherland, Talmadge, Williams and Wojahn.


      Passed to Committee on Rules for second reading.

March 2, 1994

SHB 2235          Prime Sponsor, House Committee on Revenue: Clarifying the business and occupation tax on periodicals and magazines. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, Snyder, Spanel, West, Williams and Wojahn.


      Passed to Committee on Rules for second reading.


March 2, 1994

SHB 2341          Prime Sponsor, House Committee on Revenue: Exempting from the sales tax certain personal services provided by nonprofit youth organizations and government agencies. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Anderson, Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, Snyder, Spanel, Sutherland, West, Williams and Wojahn.


      Passed to Committee on Rules for second reading.


March 2, 1994

ESHB 2663        Prime Sponsor, House Committee on Revenue: Providing tax credits and deferrals for high-technology businesses. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass as amended. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Anderson, Bluechel, Gaspard, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, Snyder, Spanel, Sutherland, Talmadge and Wojahn.


      Passed to Committee on Rules for second reading.


March 2, 1994

EHB 2664          Prime Sponsor, Representative Springer: Modifying provisions for tax deferrals for investment projects in distressed areas. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass as amended. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Bauer, Bluechel, Gaspard, Hargrove, Ludwig, McDonald, Moyer, Pelz, Snyder, Spanel, Sutherland and West.


      Passed to Committee on Rules for second reading.


March 2, 1994

EHB 2670          Prime Sponsor, Representative G. Fisher: Increasing senior citizen property tax relief. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass as amended. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Anderson, Bauer, Bluechel, Gaspard, Hargrove, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, Snyder, Spanel, Sutherland, Talmadge, West, Williams and Wojahn.


      Passed to Committee on Rules for second reading.


March 2, 1994

SHB 2671          Prime Sponsor, House Committee on Revenue: Reducing gross receipts taxes for small businesses. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass as amended. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Anderson, Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, Moyer, Pelz, Sutherland and Williams.


      Passed to Committee on Rules for second reading.


March 2, 1994

E2SHB 2798      Prime Sponsor, House Committee on Appropriations: Making major changes to the welfare system. Reported by Committee on Ways and Means


      MAJORITY Recommendation: Do pass as amended. Signed by Senators Rinehart, Chair; Quigley, Vice Chair; Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, McDonald, Moyer, Owen, Pelz, Roach, Snyder, Spanel, Sutherland, Talmadge, West and Wojahn.


      Passed to Committee on Rules for second reading.


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


MESSAGES FROM THE HOUSE


March 2, 1994


MR. PRESIDENT:

      The House has passed:

      ENGROSSED SENATE BILL NO. 5692,

      SENATE BILL NO. 6141,

      SENATE BILL NO. 6147,

      SUBSTITUTE SENATE BILL NO. 6195,

      SENATE BILL NO. 6215,

      SENATE BILL NO. 6254,

      SENATE BILL NO. 6285,

      SUBSTITUTE SENATE BILL NO. 6371,

      ENGROSSED SENATE BILL NO. 6404,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6461,

      SUBSTITUTE SENATE BILL NO. 6463,

      SUBSTITUTE SENATE BILL NO. 6558,

      SUBSTITUTE SENATE BILL NO. 6561, and the same are herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


March 2, 1994


MR. PRESIDENT:

      The House has passed:

      SUBSTITUTE SENATE BILL NO. 6481,

      SENATE BILL NO. 6491,

      SUBSTITUTE SENATE BILL NO. 6492,

      SUBSTITUTE SENATE BILL NO. 6505,

      SENATE BILL NO. 6582,

      SECOND SUBSTITUTE SENATE JOINT MEMORIAL NO. 8003,

      SENATE JOINT MEMORIAL NO. 8013,

      SENATE JOINT MEMORIAL NO. 8027, and the same are herewith transmitted.

MARILYN SHOWALTER, Chief Clerk

 

March 2, 1994


MR. PRESIDENT:

      The House has adopted SENATE CONCURRENT RESOLUTION NO. 8422, and the same is herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      ENGROSSED SENATE BILL NO. 5692,

      SENATE BILL NO. 6141,

      SENATE BILL NO. 6147,

      SUBSTITUTE SENATE BILL NO. 6195,

      SENATE BILL NO. 6215,

      SENATE BILL NO. 6254,

      SENATE BILL NO. 6285,

      SUBSTITUTE SENATE BILL NO. 6371,

      ENGROSSED SENATE BILL NO. 6404,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6461,

      SUBSTITUTE SENATE BILL NO. 6463,

      SUBSTITUTE SENATE BILL NO. 6558,

      SUBSTITUTE SENATE BILL NO. 6561.


SIGNED BY THE PRESIDENT


      The President signed:

      SUBSTITUTE SENATE BILL NO. 6481,

      SENATE BILL NO. 6491,

      SUBSTITUTE SENATE BILL NO. 6492,

      SUBSTITUTE SENATE BILL NO. 6505,

      SENATE BILL NO. 6582,

      SECOND SUBSTITUTE SENATE JOINT MEMORIAL NO. 8003,

      SENATE JOINT MEMORIAL NO. 8013,

      SENATE JOINT MEMORIAL NO. 8027,

      SENATE CONCURRENT RESOLUTION NO. 8422.


 

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

      There being no objection, the Senate resumed consideration of Substitute House Bill No. 1743 and the pending amendment by Senators Franklin, Talmadge, Fraser, Prentice and Pelz on page 2, line 16, deferred earlier today.


RULING BY THE PRESIDENT


      President Pritchard: "In ruling upon the point of order raised by Senator Amondson, the President finds that Substitute House Bill No. 1743 is a measure which establishes pilot programs in the Department of Ecology for pollution prevention for specified industries and improved efficiency for wastewater discharge permits.

      "The amendment proposed by Senators Franklin, Talmadge, Fraser, Prentice and Pelz on page 2, line 16, would direct the Departments of Health and Ecology to conduct a joint study on the relationship of toxic waste discharges and minority and low-income census tracts.

      "The President, therefore, finds that the proposed amendment does change the scope and object of the bill and the point of order is well taken."

 

      The amendment by Senators Franklin, Talmadge, Fraser, Prentice and Pelz on page 2, line 16, to Substitute House Bill No. 1743 was ruled out of order.


MOTIONS


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

      On page 1, line 1 of the title, after "prevention;" strike the remainder of the title and insert "adding a new section to chapter 70.95C RCW; adding new sections to chapter 90.48 RCW; and creating new sections."

      On motion of Senator Fraser, the rules were suspended, Substitute House Bill No. 1743, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Drew, Senators Gaspard, Loveland and Snyder were excused.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1743, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 1743, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Hargrove, Haugen, Hochstatter, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 45.

      Excused: Senators Gaspard, Loveland, Rinehart and Snyder - 4.

      SUBSTITUTE HOUSE BILL NO. 1743, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2629, by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Appelwick, Campbell, Sommers, Edmondson and Dorn)

 

Revising the definition of junk vehicle.


      The bill was read the second time.


MOTIONS


      On motion of Senator Vognild, the following amendment by Senators Vognild and Nelson was adopted:

      On page 5, after line 15, insert the following:

       "Sec. 3. RCW 46.63.030 and 1987 c 66 s 2 are each amended to read as follows:

       (1) A law enforcement officer has the authority to issue a notice of traffic infraction:

       (a) When the infraction is committed in the officer's presence;

       (b) When the officer is acting upon the request of a law enforcement officer in whose presence the traffic infraction was committed; or

       (c) If an officer investigating at the scene of a motor vehicle accident has reasonable cause to believe that the driver of a motor vehicle involved in the accident has committed a traffic infraction.

       (2) A court may issue a notice of traffic infraction upon receipt of a written statement of the officer that there is reasonable cause to believe that an infraction was committed.

       (3) If any motor vehicle without a driver is found parked, standing, or stopped in violation of this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution, the officer finding the vehicle shall take its registration number and may take any other information displayed on the vehicle which may identify its user, and shall conspicuously affix to the vehicle a notice of traffic infraction.

       (4) In the case of failure to redeem an abandoned vehicle under RCW 46.55.120 an officer shall send a notice of infraction by certified mail to the last known address of the registered owner of the vehicle."


      Senator Erwin moved that the following amendment be adopted:

      On page 5, after line 15, insert the following:

       "NEW SECTION. Sec. 3. (1) The legislature recognizes that (a) some significantly damaged vehicles are being rebuilt and sold to the public in an unsafe condition; (b) buyers of used vehicles have a right to know if a vehicle has sustained significant damage as the result of a collision or other occurrence; (c) vehicle and part numbers from significantly damaged vehicles are being used to market stolen vehicles and parts; and (d) the federal government may require states to conform to a uniform system of titling and registration under the federal Anti-Car Theft Act of 1992.

       (2) The department of licensing, in cooperation with the state patrol, representatives of industries engaged in selling or buying significantly damaged vehicles, and representatives of other appropriate groups, shall develop a plan for unique titling and registration of significantly damaged vehicles and propose any other measures that are consistent with federal requirements and address the issues identified in subsection (1) of this section. The plan and any proposals shall be submitted to the legislative transportation committee by November 15, 1994.

       Sec. 4. RCW 46.12.050 and 1993 c 307 s 1 are each amended to read as follows:

       The department, if satisfied from the statements upon the application that the applicant is the legal owner of the vehicle or otherwise entitled to have a certificate of ownership thereof in the applicant's name, shall issue an appropriate electronic record of ownership or a written certificate of ownership, over the director's signature, authenticated by seal, and if required, a new written certificate of license registration if certificate of license registration is required.

       The certificates of ownership and the certificates of license registration shall contain upon the face thereof, the date of application, the registration number assigned to the registered owner and to the vehicle, the name and address of the registered owner and legal owner, the vehicle identification number, and such other description of the vehicle and facts as the department shall require, and in addition thereto, if the vehicle described in such certificates shall have ever been licensed and operated as an exempt vehicle or a taxicab, or if it ((is less than four years old and)) has been rebuilt after having been ((totaled out by an insurance carrier)) reported to the department as a total loss, such fact shall be clearly shown thereon.

       All certificates of ownership of motor vehicles issued after April 30, 1990, shall reflect the odometer reading as provided by the odometer disclosure statement submitted with the title application involving a transfer of ownership.

       A blank space shall be provided on the face of the certificate of license registration for the signature of the registered owner.

       Upon issuance of the certificate of license registration and certificate of ownership and upon any reissue thereof, the department shall deliver the certificate of license registration to the registered owner and the certificate of ownership to the legal owner, or both to the person who is both the registered owner and legal owner.

       NEW SECTION. Sec. 5. A new section is added to chapter 46.12 RCW to read as follows:

       It is a misdemeanor for a person to sell or convey a vehicle certificate of ownership except in conjunction with the sale or transfer of the vehicle for which the certificate was originally issued.

       Sec. 6. RCW 46.12.310 and 1975-'76 2nd ex.s. c 91 s 2 are each amended to read as follows:

       (1) Any vehicle, watercraft, camper, or any component part thereof, from which the manufacturer's serial number or any other distinguishing number or identification mark has been removed, defaced, covered, altered, obliterated, or destroyed, ((there being reasonable grounds to believe that such was done for the purpose of concealing or misrepresenting identity, shall)) may be impounded and held by the seizing law enforcement agency for the purpose of conducting an investigation to determine the identity of the article or articles, and to determine whether it had been reported stolen.

       (2) Within five days of the impounding of any vehicle, watercraft, camper, or component part thereof, the law enforcement agency seizing the article or articles shall send written notice of such impoundment by certified mail to all persons known to the agency as claiming an interest in the article or articles. The seizing agency shall exercise reasonable diligence in ascertaining the names and addresses of those persons claiming an interest in the article or articles. Such notice shall advise the person of the fact of seizure, the possible disposition of the article or articles, the requirement of filing a written claim requesting notification of potential disposition, and the right of the person to request a hearing to establish a claim of ownership. Within five days of receiving notice of other persons claiming an interest in the article or articles, the seizing agency shall send a like notice to each such person.

       (3) If reported as stolen, the seizing law enforcement agency shall promptly release such vehicle, watercraft, camper, or parts thereof as have been stolen, to the person who is the lawful owner or the lawful successor in interest, upon receiving proof that such person presently owns or has a lawful right to the possession of the article or articles.

       Sec. 7. RCW 46.80.005 and 1977 ex.s. c 253 s 1 are each amended to read as follows:

       The legislature finds and declares that the distribution and sale of vehicle parts in the state of Washington vitally affects the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and the public welfare and in the exercise of its police power, it is necessary to regulate and license ((motor)) vehicle wreckers and dismantlers, the buyers-for-resale, and the sellers of second-hand vehicle components doing business in Washington, in order to prevent the sale of stolen vehicle parts, to prevent frauds, impositions, and other abuses, and to preserve the investments and properties of the citizens of this state.

       Sec. 8. RCW 46.80.010 and 1977 ex.s. c 253 s 2 are each amended to read as follows:

       The definitions set forth in this section apply throughout this chapter.

       (1) "((Motor)) Vehicle wrecker((,))" ((whenever used in this chapter, shall)) means every person, firm, partnership, association, or corporation engaged in the business of buying, selling, or dealing in vehicles of a type required to be licensed under the laws of this state, for the purpose of wrecking, dismantling, disassembling, or substantially changing the form of ((any motor)) a vehicle, or who buys or sells integral second-hand parts of component material thereof, in whole or in part, or who deals in second-hand ((motor)) vehicle parts.                 (2) "Established place of business((,))" ((whenever used in this chapter, shall)) means a building or enclosure which the ((motor)) vehicle wrecker occupies either continuously or at regular periods and where his books and records are kept and business is transacted and which must conform with zoning regulations.

       (3) "Major component part"((, whenever used in this chapter, shall)) includes at least each of the following vehicle parts: (a) Engines and short blocks; (b) frame; (c) transmission and/or transfer case; (d) cab; (e) door; (f) front or rear differential; (g) front or rear clip; (h) quarter panel; (i) truck bed or box; (j) seat; (k) hood; ((and)) (l) bumper; and (m) fender. The director may supplement this list by rule.

       (4) "Wrecked vehicle"((, whenever used in this chapter, shall)) means a vehicle which is disassembled or dismantled or a vehicle which is acquired with the intent to dismantle or disassemble and never again to operate as a vehicle, or a vehicle which has sustained such damage that its cost to repair exceeds the fair market value of a like vehicle which has not sustained such damage, or a damaged vehicle whose salvage value plus cost to repair equals or exceeds its fair market value, if repaired, or a vehicle which has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state for which the salvage value plus cost to repair exceeds its fair market value, if repaired; further, it is presumed that a vehicle is a wreck if it has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state.

       Sec. 9. RCW 46.80.020 and 1979 c 158 s 192 are each amended to read as follows:

       It ((shall be)) is unlawful for ((any motor)) a vehicle wrecker((, as defined herein,)) to engage in the business of wrecking ((motor)) vehicles ((or trailers)) without having first applied for and received a license from the department of licensing authorizing ((him)) the wrecker so to do. A person or firm engaged in the unlawful activity is guilty of a gross misdemeanor. A second or subsequent offense is a class C felony.

       Sec. 10. RCW 46.80.040 and 1971 ex.s. c 7 s 3 are each amended to read as follows:

       ((Such)) The application, together with a fee of twenty-five dollars, and a surety bond as ((hereinafter)) provided in RCW 46.80.070, shall be forwarded to the department. Upon receipt of the application the department shall, if the application ((be)) is in order, issue a ((motor)) vehicle wrecker's license authorizing ((him)) the wrecker to do business as such and forward the fee((, together with an itemized and detailed report,)) to the state treasurer, to be deposited in the motor vehicle fund. Upon receiving the certificate the owner shall cause it to be prominently displayed in ((his)) the place of business, where it may be inspected by an investigating officer at any time.

       Sec. 11. RCW 46.80.050 and 1985 c 109 s 7 are each amended to read as follows:

       A license issued on this application ((shall)) remains in force until suspended or revoked and may be renewed annually upon reapplication according to RCW 46.80.030 and upon payment of a fee of ten dollars. ((Any motor)) A vehicle wrecker who fails or neglects to renew ((his)) the license before the assigned expiration date shall ((be required to)) pay the fee for an original ((motor)) vehicle wrecker license as provided in this chapter.

       Whenever a ((motor)) vehicle wrecker ceases to do business as such or ((his)) the license has been suspended or revoked, ((he)) the wrecker shall immediately surrender ((such)) the license to the department.

       Sec. 12. RCW 46.80.060 and 1961 c 12 s 46.80.060 are each amended to read as follows:

       The ((motor)) vehicle wrecker shall obtain a special set of license plates in addition to the regular licenses and plates required for the operation of such vehicles ((which shall)). The special plates must be displayed on vehicles owned and/or operated by ((him)) the wrecker and used in the conduct of ((his)) the business. The fee for these plates shall be five dollars for the original plates and two dollars for each additional set of plates bearing the same license number.

       Sec. 13. RCW 46.80.070 and 1977 ex.s. c 253 s 5 are each amended to read as follows:

       Before issuing a ((motor)) vehicle wrecker's license, the department shall require the applicant to file with ((said)) the department a surety bond in the amount of one thousand dollars, running to the state of Washington and executed by a surety company authorized to do business in the state of Washington. ((Such)) The bond shall be approved as to form by the attorney general and conditioned that ((such)) the wrecker shall conduct ((his)) the business in conformity with the provisions of this chapter. Any person who ((shall have)) has suffered any loss or damage by reason of fraud, carelessness, neglect, violation of the terms of this chapter, or misrepresentation on the part of the wrecking company, ((shall have the right to)) may institute an action for recovery against ((such motor)) the vehicle wrecker and surety upon ((such)) the bond((: PROVIDED, That)). However, the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond.

       Sec. 14. RCW 46.80.080 and 1977 ex.s. c 253 s 6 are each amended to read as follows:

       (1) Every ((motor)) vehicle wrecker shall maintain books or files in which ((he)) the wrecker shall keep a record and a description of:

       (a) Every vehicle wrecked, dismantled, disassembled, or substantially altered by ((him)) the wrecker; and

       (b) Every major component part acquired by ((him)) the wrecker; together with a bill of sale signed by a seller whose identity has been verified and the name and address of the person, firm, or corporation from whom ((he)) the wrecker purchased the vehicle or part((: PROVIDED, That)). Major component parts shall be further identified by the vehicle identification number of the vehicle from which the part came.

       (2) ((Such)) The record shall also contain the following data regarding the wrecked or acquired vehicle or vehicle ((which)) that is the source of a major component part:

       (a) The certificate of title number (if previously titled in this or any other state);

       (b) Name of state where last registered;

       (c) Number of the last license number plate issued;

       (d) Name of vehicle;

       (e) Motor or identification number and serial number of the vehicle;

       (f) Date purchased;

       (g) Disposition of the motor and chassis;

       (h) Yard number assigned by the licensee to the vehicle or major component part, which shall also appear on the identified vehicle or part; and

       (i) Such other information as the department may require.

       (3) ((Such)) The records shall also contain a bill of sale signed by the seller for other minor component parts acquired by the licensee, identifying the seller by name, address, and date of sale.

       (4) ((Such)) The records shall be maintained by the licensee at his or her established place of business for a period of three years from the date of acquisition.

       (5) ((Such record shall be)) The record is subject to inspection at all times during regular business hours by members of the police department, sheriff's office, members of the Washington state patrol, or officers or employees of the department.

       (6) A ((motor)) vehicle wrecker shall also maintain a similar record of all disabled vehicles that have been towed or transported to the motor vehicle wrecker's place of business or to other places designated by the owner of the vehicle or his or her representative. This record shall specify the name and description of the vehicle, name of owner, number of license plate, condition of the vehicle and place to which it was towed or transported.

       (7) Failure to comply with this section is a gross misdemeanor.

       Sec. 15. RCW 46.80.090 and 1979 c 158 s 194 are each amended to read as follows:

       Within thirty days after acquiring a vehicle ((has been acquired by the motor vehicle wrecker it shall be the duty of such motor)), the vehicle wrecker ((to)) shall furnish a written report to the department ((on forms furnished by the department)). This report shall be in such form as the department shall prescribe and shall be accompanied by ((the certificate of title, if the vehicle has been last registered in a state which issues a certificate, or a record of registration if registered in a state which does not issue a certificate of title)) evidence of ownership as determined by the department. No ((motor)) vehicle wrecker ((shall)) may acquire a vehicle without first obtaining ((such record or title. It shall be the duty of the motor)) evidence of ownership as determined by the department. The vehicle wrecker ((to)) shall furnish a monthly report of all acquired vehicles ((wrecked, dismantled, disassembled, or substantially changed in form by him)). This report shall be made on forms prescribed by the department and contain such information as the department may require. This statement shall be signed by the ((motor)) vehicle wrecker or ((his)) an authorized representative and the facts therein sworn to before a notary public, or before an officer or employee of the department ((of licensing)) designated by the director to administer oaths or acknowledge signatures, pursuant to RCW 46.01.180.

       Sec. 16. RCW 46.80.100 and 1977 ex.s. c 253 s 8 are each amended to read as follows:

       If, after issuing a ((motor)) vehicle wrecker's license, the bond is canceled by the surety in a method provided by law, the department shall immediately notify the principal covered by ((such)) the bond by ((registered)) certified mail and afford ((him)) the principal the opportunity of obtaining another bond before the termination of the original ((and should such)). If the principal fails, neglects, or refuses to obtain ((such)) a replacement, the director may cancel or suspend the ((motor)) vehicle wrecker's license ((which has been issued to him under the provisions of this chapter)).

       Sec. 17. RCW 46.80.110 and 1989 c 337 s 17 are each amended to read as follows:

       (1) The director or a designee may, pursuant to the provisions of chapter 34.05 RCW, by order deny, suspend, or revoke the license of ((any motor)) a vehicle wrecker, or assess a civil fine of up to five hundred dollars for each violation, if the director finds that the applicant or licensee has:

       (((1))) (a) Acquired a vehicle or major component part other than by first obtaining title or other documentation as provided by this chapter;

       (((2))) (b) Willfully misrepresented the physical condition of any motor or integral part of a ((motor)) vehicle;

       (((3))) (c) Sold, had in ((his)) the wrecker's possession, or disposed of a ((motor)) vehicle ((or trailer)) or any part thereof when he or she knows that ((such)) the vehicle or part has been stolen, or appropriated without the consent of the owner;

       (((4))) (d) Sold, bought, received, concealed, had in ((his)) the wrecker's possession, or disposed of a ((motor)) vehicle ((or trailer)) or part thereof having a missing, defaced, altered, or covered manufacturer's identification number, unless approved by a law enforcement officer;

       (((5))) (e) Committed forgery or misstated a material fact on any title, registration, or other document covering a vehicle that has been reassembled from parts obtained from the disassembling of other vehicles;

       (((6))) (f) Committed any dishonest act or omission ((which)) that the director has reason to believe has caused loss or serious inconvenience as a result of a sale of a ((motor)) vehicle((, trailer,)) or part thereof;

       (((7))) (g) Failed to comply with any of the provisions of this chapter or with any of the rules adopted under it, or with any of the provisions of Title 46 RCW relating to registration and certificates of title of vehicles;

       (((8))) (h) Procured a license fraudulently or dishonestly ((or that such license was erroneously issued));

       (((9))) (i) Been convicted of a crime that directly relates to the business of a vehicle wrecker and the time elapsed since conviction is less than ten years, or suffered any judgment within the preceding five years in any civil action involving fraud, misrepresentation, or conversion. For the purposes of this section, conviction means in addition to a final conviction in either a federal, state, or municipal court, an unvacated forfeiture of bail or collateral deposited to secure a defendant's appearance in court, the payment of a fine, a plea of guilty, or a finding of guilt regardless of whether the sentence is deferred or the penalty is suspended.

       (2) In addition to actions by the department under this section, it is a gross misdemeanor to violate subsection (1) (a) through (e) or (h) of this section.

       NEW SECTION. Sec. 18. A new section is added to chapter 46.80 RCW to read as follows:

       If a person whose license has previously been canceled for cause by the department files an application for a license to conduct business as a vehicle wrecker, or if the department is of the opinion that the application is not filed in good faith or that the application is filed by some person as a subterfuge for the real person in interest whose license has previously been canceled for cause, the department may refuse to issue the person a license to conduct business as a vehicle wrecker.

       Sec. 19. RCW 46.80.130 and 1971 ex.s. c 7 s 9 are each amended to read as follows:

       (1) It ((shall be)) is unlawful for ((any motor)) a vehicle wrecker to keep ((any motor)) a vehicle or any integral part thereof in any place other than the established place of business, designated in the certificate issued by the department, without permission of the department.

       (2) All premises containing ((such motor)) vehicles or parts thereof shall be enclosed by a wall or fence of such height as to obscure the nature of the business carried on therein. To the extent reasonably necessary or permitted by the topography of the land, the department ((shall have the right to)) may establish specifications or standards for ((said)) the fence or wall((: PROVIDED, HOWEVER, That such)). The wall or fence shall be painted or stained a neutral shade ((which shall)) that blends in with the surrounding premises, and ((that such)) the wall or fence must be kept in good repair. A living hedge of sufficient density to prevent a view of the confined area may be substituted for such a wall or fence. Any dead or dying portion of ((such)) the hedge shall be replaced.

       (3) Beginning July 1, 1995, vehicles and parts may be displayed outside the fence or building during business hours if the display is not in conflict with applicable county or city regulations.

       (4) Violation of subsection (1) or (3) of this section is a gross misdemeanor.

       Sec. 20. RCW 46.80.150 and 1983 c 142 s 9 are each amended to read as follows:

       It shall be the duty of the chiefs of police, or the Washington state patrol, in cities having a population of over five thousand persons, and in all other cases the Washington state patrol, to make periodic inspection of the ((motor)) vehicle wrecker's licensed premises and records provided for in this chapter during normal business hours, and furnish a certificate of inspection to the department in such manner as may be determined by the department((: PROVIDED, That the above inspection)). In any instance ((can be made by)), an authorized representative of the department may make the inspection.

       Sec. 21. RCW 46.80.160 and 1961 c 12 s 46.80.160 are each amended to read as follows:

       Any municipality or political subdivision of this state ((which)) that now has or subsequently makes provision for the regulation of ((automobile)) vehicle wreckers shall comply strictly with the provisions of this chapter.

       Sec. 22. RCW 46.80.170 and 1977 ex.s. c 253 s 11 are each amended to read as follows:

       ((It shall be)) Unless otherwise provided in this chapter, it is a ((gross)) misdemeanor for any person to violate any of the provisions of this chapter or the rules ((and regulations promulgated as provided)) adopted under this chapter((, and any person so convicted shall be punished by imprisonment for not less than thirty days or more than one year in jail or by a fine of one thousand dollars)).

       NEW SECTION. Sec. 23. A new section is added to chapter 46.80 RCW to read as follows:

       (1) If it appears to the director that an unlicensed person has engaged or is about to engage in an act or practice constituting a violation of this chapter, or a rule adopted or an order issued under this chapter, the director may issue an order directing the person to cease and desist from continuing the act or practice. The director shall give the person reasonable notice of and opportunity for a hearing. The director may issue a temporary order pending a hearing. The temporary order remains in effect until ten days after the hearing is held and becomes final if the person to whom the notice is addressed does not request a hearing within fifteen days after receipt of the notice.

       (2) The director may assess a fine of up to one thousand dollars with the final order for each act or practice constituting a violation of this chapter.

       NEW SECTION. Sec. 24. A new section is added to chapter 46.80 RCW to read as follows:

       The department of licensing or its authorized agent may examine or subpoena any persons, books, papers, records, data, vehicles, or vehicle parts bearing upon the investigation or proceeding under this chapter.

       The persons subpoenaed may be required to testify and produce any books, papers, records, data, vehicles, or vehicle parts that the director deems relevant or material to the inquiry.

       The director or an authorized agent may administer an oath to the person required to testify, and a person giving false testimony after the administration of the oath is guilty of perjury in the first degree.

       A court of competent jurisdiction may, upon application by the director, issue to a person who fails to comply, an order to appear before the director or officer designated by the director, to produce documentary or other evidence touching the matter under investigation or in question.

       Sec. 25. RCW 46.80.900 and 1977 ex.s. c 253 s 13 are each amended to read as follows:

       The provisions of this chapter shall be liberally construed to the end that traffic in stolen vehicle parts may be prevented, and irresponsible, unreliable, or dishonest persons may be prevented from engaging in the business of wrecking ((motor)) vehicles or selling used vehicle parts in this state and reliable persons may be encouraged to engage in businesses of wrecking or reselling vehicle parts in this state.

       NEW SECTION. Sec. 26. RCW 46.80.055 and 1985 c 109 s 8 are each repealed."



POINT OF ORDER


      Senator Vognild: "Mr. President, I rise to the question of scope and object. The bill that we are dealing with is a bill that deals totally with junk vehicles. In fact, the requirements within the bill are that they are junk and cannot be used for any other purpose. The amendment by Senator Erwin deals with what you do with significant damaged vehicles. It talks about how you use the parts, how can you repair them, how can you title them. In other words, the amendment is an amendment that deals with wrecked vehicles and the bill deals with junk vehicles. There is a major difference between those two factors. Junk vehicles are just that. They are a nuisance, they are an eyesore and they are something that people can't get rid of. Wrecked vehicles have value and one of the pieces in the bill is that the junk vehicle must not have any value."


MOTION


      On motion of Senator Erwin, and there being no objection, the amendment on page 5, after line 15, to Substitute House Bill No. 2629 was withdrawn.


MOTIONS


      On motion of Senator Vognild, the following title amendment was adopted;

      On line 1 of the title, after "46.55.010" strike "and 46.55.240" and insert ", 46.55.240, and 46.63.030."

      On motion of Senator Vognild, the rules were suspended, Substitute House Bill No. 2629, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Oke, Senator Nelson was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2629, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2629, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 1; Absent, 0; Excused, 4.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

      Voting nay: Senator Roach - 1.

      Excused: Senators Gaspard, Nelson, Rinehart and Snyder - 4.

      SUBSTITUTE HOUSE BILL NO. 2629, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      ENGROSSED HOUSE BILL NO. 2327, by Representatives Jacobsen, Brumsickle, Quall, Basich, Ogden, Kessler, Mastin, Wood, Casada, Shin, Orr, Rayburn, Romero and Anderson

 

Requiring appropriate services for disabled students at institutions of higher education.


      The bill was read the second time.


MOTION


      On motion of Senator Bauer, the rules were suspended, Engrossed House Bill No. 2327 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2327.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed House Bill No. 2327 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

      Absent: Senator Smith, L. - 1.

      Excused: Senators Gaspard, Nelson, Rinehart and Snyder - 4.

      ENGROSSED HOUSE BILL NO. 2327, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2540, by House Committee on Corrections (originally sponsored by Representatives Long, Appelwick, Morris, Johanson, Padden, Brough, Sheahan, B. Thomas, Dyer, Brumsickle, Kremen, Forner, Springer and Reams)

 

Releasing information concerning sex offenders.


      The bill was read the second time.


MOTION


      On motion of Senator Adam Smith, the rules were suspended, Substitute House Bill No. 2540 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2540.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2540 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

      Absent: Senator Smith, L. - 1.

      Excused: Senators Gaspard, Nelson, Rinehart and Snyder - 4.

      SUBSTITUTE HOUSE BILL NO. 2540, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2508, by Representatives Dellwo, Dyer and L. Johnson (by request of Department of Health)

 

Modifying the health professional temporary resource pool.


      The bill was read the second time.


MOTION


      On motion of Senator Talmadge, the rules were suspended, House Bill No. 2508 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2508.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2508 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 46.

      Absent: Senator Owen - 1.

      Excused: Senators Gaspard and Snyder - 2.

      HOUSE BILL NO. 2508, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 12:05 p.m., on motion of Senator Spanel, the Senate recessed until 1:30 p.m.


      The Senate was called to order at 1:46 p.m. by President Pritchard.


MOTION


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


MOTION


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


SENATE RESOLUTION 1994-8679


By Senators Talmadge, Bauer, Rinehart, Williams, Drew, Spanel, Snyder, A. Smith, Ludwig, Loveland, McAuliffe, Franklin, Haugen, Hargrove, Owen, Vognild, Moore and McDonald


      WHEREAS, Patrick Fitzsimons has been Chief of Police in Seattle since 1979; and

      WHEREAS, Chief Fitzsimons is retiring after fifteen years as police chief; and

      WHEREAS, The average tenure for a police chief in a major United States city is only three and one-half years; and

      WHEREAS, Chief Fitzsimons' tenure as Chief of Police in Seattle is the longest in the city's history; and

      WHEREAS, Chief Fitzsimons is credited with creating a police force that is recognized as one of the best in the nation; and

      WHEREAS, Chief Fitzsimons is respected for innovations like the bicycle patrol and community policing and his work at the national level of police organizations; and

      WHEREAS, Chief Fitzsimons has participated in church and community groups, not just as police chief but as a citizen of Seattle;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate recognize and honor Patrick Fitzsimons for his accomplishments as Chief of Police in Seattle; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the President of the Senate to Chief Fitzsimons.


      Senators Talmadge, Moore and McDonald spoke to Senate Resolution 1994-8679.


      There being no objection, the President returned the Senate to the sixth order of business.


MOTION


      On motion of Senator Bluechel, Senator Amondson was excused.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2760, by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Zellinsky, Schmidt, Wood, Sheldon, R. Meyers, Jones, Sehlin and Kessler)

 

Authorizing sales tax equalization for transit systems.


      The bill was read the second time.


MOTIONS


      Senator Vognild moved that the following Committee on Transportation amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 82.44.150 and 1993 c 491 s 2 are each amended to read as follows:

       (1) The director of licensing shall, on the twenty-fifth day of February, May, August, and November of each year, advise the state treasurer of the total amount of motor vehicle excise taxes imposed by RCW 82.44.020 (1) and (2) remitted to the department during the preceding calendar quarter ending on the last day of March, June, September, and December, respectively, except for those payable under RCW 82.44.030, from motor vehicle owners residing within each municipality which has levied a tax under RCW 35.58.273, which amount of excise taxes shall be determined by the director as follows:

       The total amount of motor vehicle excise taxes remitted to the department, except those payable under RCW 82.44.020(3) and 82.44.030, from each county shall be multiplied by a fraction, the numerator of which is the population of the municipality residing in such county, and the denominator of which is the total population of the county in which such municipality or portion thereof is located. The product of this computation shall be the amount of excise taxes from motor vehicle owners residing within such municipality or portion thereof. Where the municipality levying a tax under RCW 35.58.273 is located in more than one county, the above computation shall be made by county, and the combined products shall provide the total amount of motor vehicle excise taxes from motor vehicle owners residing in the municipality as a whole. Population figures required for these computations shall be supplied to the director by the office of financial management, who shall adjust the fraction annually.

       (2) On the first day of the months of January, April, July, and October of each year, the state treasurer based upon information provided by the department shall, from motor vehicle excise taxes deposited in the general fund, under RCW 82.44.110(1)(g), make the following deposits:

       (a) To the high capacity transportation account created in RCW 47.78.010, a sum equal to four and five-tenths percent of the special excise tax levied under RCW 35.58.273 by those municipalities authorized to levy a special excise tax within (i) each county with a population of two hundred ten thousand or more and (ii) each county with a population of from one hundred twenty-five thousand to less than two hundred ten thousand except for those counties that do not border a county with a population as described in subsection (i) of this subsection;

       (b) To the central Puget Sound public transportation account created in RCW 82.44.180, for revenues distributed after December 31, 1992, within a county with a population of one million or more and a county with a population of from two hundred thousand to less than one million bordering a county with a population of one million or more, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent and been able to match with locally generated tax revenues, other than the excise tax imposed under RCW 35.58.273, budgeted for any public transportation purpose. Before this deposit, the sum shall be reduced by an amount equal to the amount distributed under (a) of this subsection for each of the municipalities within the counties to which this subsection (2)(b) applies; however, any transfer under this subsection (2)(b) must be greater than zero;

       (c) To the public transportation systems account created in RCW 82.44.180, for revenues distributed after December 31, 1992, within counties not described in (b) of this subsection, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent and been able to match with locally generated tax revenues, other than the excise tax imposed under RCW 35.58.273, budgeted for any public transportation purpose. Before this deposit, the sum shall be reduced by an amount equal to the amount distributed under (a) of this subsection for each of the municipalities within the counties to which this subsection (2)(c) applies; however, any transfer under this subsection (2)(c) must be greater than zero; and

       (d) To the general fund, for revenues distributed after June 30, 1993, and to the transportation fund, for revenues distributed after June 30, 1995, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent notwithstanding the requirements set forth in subsections (3) through (6) of this section, reduced by an amount equal to distributions made under (a), (b), and (c) of this subsection and section 2 of this act.

       (3) On the first day of the months of January, April, July, and October of each year, the state treasurer, based upon information provided by the department, shall remit motor vehicle excise tax revenues imposed and collected under RCW 35.58.273 as follows:

       (a) The amount required to be remitted by the state treasurer to the treasurer of any municipality levying the tax shall not exceed in any calendar year the amount of locally-generated tax revenues, excluding (i) the excise tax imposed under RCW 35.58.273 for the purposes of this section, which shall have been budgeted by the municipality to be collected in such calendar year for any public transportation purposes including but not limited to operating costs, capital costs, and debt service on general obligation or revenue bonds issued for these purposes; and (ii) the sales and use tax equalization distributions provided under section 2 of this act; and

       (b) In no event may the amount remitted in a single calendar quarter exceed the amount collected on behalf of the municipality under RCW 35.58.273 during the calendar quarter next preceding the immediately preceding quarter, excluding the sales and use tax equalization distributions provided under section 2 of this act.

       (4) At the close of each calendar year accounting period, but not later than April 1, each municipality that has received motor vehicle excise taxes under subsection (3) of this section shall transmit to the director of licensing and the state auditor a written report showing by source the previous year's budgeted tax revenues for public transportation purposes as compared to actual collections. Any municipality that has not submitted the report by April 1 shall cease to be eligible to receive motor vehicle excise taxes under subsection (3) of this section until the report is received by the director of licensing. If a municipality has received more or less money under subsection (3) of this section for the period covered by the report than it is entitled to receive by reason of its locally-generated collected tax revenues, the director of licensing shall, during the next ensuing quarter that the municipality is eligible to receive motor vehicle excise tax funds, increase or decrease the amount to be remitted in an amount equal to the difference between the locally-generated budgeted tax revenues and the locally-generated collected tax revenues. In no event may the amount remitted for a calendar year exceed the amount collected on behalf of the municipality under RCW 35.58.273 during that same calendar year excluding the sales and use tax equalization distributions provided under section 2 of this act. At the time of the next fiscal audit of each municipality, the state auditor shall verify the accuracy of the report submitted and notify the director of licensing of any discrepancies.

       (5) The motor vehicle excise taxes imposed under RCW 35.58.273 and required to be remitted under this section and section 2 of this act shall be remitted without legislative appropriation.

       (6) Any municipality levying and collecting a tax under RCW 35.58.273 which does not have an operating, public transit system or a contract for public transportation services in effect within one year from the initial effective date of the tax shall return to the state treasurer all motor vehicle excise taxes received under subsection (3) of this section.

       NEW SECTION. Sec. 2. A new section is added to chapter 82.14 RCW to read as follows:

       Beginning with distributions made to municipalities under RCW 82.44.150 on January 1, 1996, municipalities as defined in RCW 35.58.272 imposing local transit taxes, which for purposes of this section include the sales and use tax under RCW 82.14.045, the business and occupation tax under RCW 35.95.040, and excise taxes under RCW 35.95.040, shall be eligible for sales and use tax equalization payments from motor vehicle excise taxes distributed under RCW 82.44.150 as follows:

       (1) Prior to January 1st of each year the department of revenue shall determine the total and the per capita levels of revenues for each municipality imposing local transit taxes and the state-wide weighted average per capita level of sales and use tax revenues imposed under chapters 82.08 and 82.12 RCW, for the previous calendar year calculated for a tax rate of one-tenth percent. The actual tax rate for local transit taxes collected under RCW 82.14.045 shall be the sales and use tax rate. The actual tax rate for local transit taxes collected under RCW 35.95.040 shall be the sales and use tax rate that would generate an amount of revenue equivalent to the amount collected under RCW 35.95.040, or six-tenths percent, whichever is less.

       (2) For each tenth of one percent of local transit taxes the state treasurer shall apportion to each municipality receiving less than eighty percent of the state-wide weighted average per capita level of sales and use tax revenues imposed under chapters 82.08 and 82.12 RCW as determined by the department of revenue under subsection (1) of this section, an amount when added to the per capita level of revenues received the previous calendar year by the municipality, to equal eighty percent of the state-wide weighted average per capita level of revenues determined under subsection (1) of this section. In no event may the sales and use tax equalization distribution to a municipality in a single calendar year exceed fifty percent of the amount of local transit taxes collected during the prior calendar year.

       (3) For a municipality established after January 1, 1995, sales and use tax equalization distributions shall be made according to the procedures in this subsection. Sales and use tax equalization distributions to eligible new municipalities shall be made at the same time as distributions are made under subsection (2) of this section. The department of revenue shall follow the estimating procedures outlined in this subsection until the new municipality has received a full year's worth of revenues as of the January sales and use tax equalization distribution.

       (a) Whether a newly established municipality determined to receive funds under this subsection receives its first equalization payment at the January, April, July, or October sales and use tax equalization distribution shall depend on the date the system first imposes local transit taxes.

       (i) A newly established municipality imposing local transit taxes taking effect during the first calendar quarter shall be eligible to receive funds under this subsection beginning with the July sales and use tax equalization distribution of that year.

       (ii) A newly established municipality imposing local transit taxes taking effect during the second calendar quarter shall be eligible to receive funds under this subsection beginning with the October sales and use tax equalization distribution of that year.

       (iii) A newly established municipality imposing local transit taxes taking effect during the third calendar quarter shall be eligible to receive funds under this subsection beginning with the January sales and use tax equalization distribution of the next year.

       (iv) A newly established municipality imposing local transit taxes taking effect during the fourth calendar quarter shall be eligible to receive funds under this subsection beginning with the April sales and use tax equalization distribution of the next year.

       (b) For purposes of calculating the amount of funds the new municipality should receive under this subsection, the department of revenue shall:

       (i) Estimate the per capita amount of revenues from local transit taxes that the new municipality would have received had the municipality received revenues from the tax the entire calendar year;

       (ii) Calculate the amount provided under subsection (2) of this section based on the per capita revenues determined under (b)(i) of this subsection;

       (iii) Prorate the amount determined under (b)(ii) of this subsection by the number of months the local transit taxes are imposed.

       (c) The department of revenue shall advise the state treasurer of the amounts calculated under (b) of this subsection and the state treasurer shall distribute these amounts to the new municipality from the motor vehicle excise tax distributed under RCW 82.44.150(2)(d).

       (d) Revenues estimated under this subsection shall not affect the calculation of the state-wide weighted average per capita level of revenues for all municipalities made under subsection (1) of this section.

       (4) For an existing municipality imposing local transit taxes to take effect after January 1, 1995, sales and use tax equalization payments shall be made according to the procedures for newly established municipalities in subsection (3) of this section.

       (5) A municipality that reduces the rate of local transit taxes after January 1, 1994, may not receive distributions under this section."


      On motion of Senator Vognild, the following amendments to the Committee on Transportation striking amendment were considered simultaneously and were adopted:

      On page 5, line 13 of the amendment, strike ", or six-tenths percent, whichever is less"

      On page 5, line 24 of the amendment, after "exceed" insert "(i)"

      On page 5, line 25 of the amendment, after "year" insert ", or (ii) the maximum amount of sales and use tax that could have been collected at a sales and use tax rate of three-tenths percent in the prior calendar year"

      The President declared the question before the Senate to be the adoption of the Committee on Transportation striking amendment, as amended, to Substitute House Bill No. 2760.

      The motion by Senator Vognild carried and the committee amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 2 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 82.44.150; and adding a new section to chapter 82.14 RCW."

      On motion of Senator Vognild, the rules were suspended, Substitute House Bill No. 2760, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2760, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2760, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 35; Nays, 12; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Loveland, Ludwig, McAuliffe, Moore, Morton, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams, Winsley and Wojahn - 35.

      Voting nay: Senators Cantu, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Roach, Schow, Sellar, Smith, L. and West - 12.

      Absent: Senator Rinehart - 1.

      Excused: Senator Amondson - 1.

      SUBSTITUTE HOUSE BILL NO. 2760, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 6601, by Senators Gaspard, Sellar, Quigley, Rinehart, Oke, Winsley, Ludwig, Drew, Franklin, Skratek and M. Rasmussen

 

Providing for government performance and accountability.


      The bill was read the second time.


MOTION


      Senator Cantu moved that the following amendment be adopted:

      On page 2, after line 13, insert the following:

       "NEW SECTION. Sec. 2. (1) The state auditor shall undertake a comprehensive, state-wide performance audit of state agencies and programs, services, and activities operated by those agencies. For the purposes of this section, "state agency" includes a board, commission, department, committee, institution, agency, or office within the legislative, executive, and judicial branch of state government, including any institution of higher education.

       (2) The audit must include:

       (a) An evaluation of the efficiency with which state agencies operate the programs under their jurisdictions and fulfill the duties assigned to them by law;

       (b) A determination of methods to maximize the amount of federal funds received by the state in order to better ensure that the people of Washington receive a greater share of the taxes levied on them by the federal government;

       (c) Identification of potential cost savings and of any state agency or any program or service now offered by an agency that can be eliminated or transferred to the private sector without injury to the public good and well-being;

       (d) Recommendations for the elimination of or reduction in funding to various agencies, programs, or services based on the results of the performance audit; and

       (e) Analysis of gaps and overlaps in programs offered by state agencies and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps.

       (3) The state auditor may require any state agency to provide information required for completion of the audit, and each state agency shall fully and completely cooperate with the state auditor for the purposes of this section.

       (4) The office of the state auditor shall provide the staff necessary for the audit. The state auditor shall involve private sector auditors in conducting the audit, and may contract with private sector auditors for that purpose.

       (5) The state auditor shall solicit suggestions for improving government performance from both front-line public employees and government service recipients in the conduct of the audit. The state auditor shall establish a toll-free telephone number at which the public may make suggestions and report government waste, in order to aid the identification of both waste and innovation.

       (6) The state auditor shall present an audit work plan to the legislative budget committee within sixty days of the effective date of this act. The state auditor shall present the audit report to the legislature and the governor by December 1, 1995.

       Sec. 3. RCW 43.88.160 and 1993 c 500 s 7, 1993 c 406 s 4, and 1993 c 194 s 6 are each reenacted and amended to read as follows:

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

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

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

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

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

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

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

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

       (c) Establish policies for allowing the contracting of child care services;

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

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

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

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

       (h) Adopt rules to effectuate provisions contained in (a) through (g) of this subsection.

       (5) The treasurer shall:

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

       (b) Receive, disburse, or transfer public funds under the treasurer's supervision or custody;

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

       (d) Coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180;

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

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

       (6) The state auditor shall:

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

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

       (c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include determinations as to whether agencies, in making expenditures, complied with the laws of this state. The state auditor is authorized to perform or participate in performance audits ((only as expressly authorized by the legislature in the omnibus biennial appropriations acts)). A performance audit for the purpose of this section is ((the examination of the effectiveness of the administration, its efficiency, and its adequacy in terms of the programs of departments or agencies as previously approved by the legislature)) an audit that determines the following: Whether a government entity is acquiring, protecting, and using its resources economically and efficiently; the causes of inefficiencies or uneconomical practices; whether the entity has complied with laws and rules applicable to the program; the extent to which the desired results or benefits established by the legislature are being achieved; and the effectiveness of organizations, programs, activities, or functions. The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW, may report to the legislative budget committee or other appropriate committees of the legislature, in a manner prescribed by the legislative budget committee, on facts relating to the management or performance of governmental programs ((where such facts are discovered incidental to the legal and financial audit. The auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts)).

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

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

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

       (7) The legislative budget committee may:

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

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

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

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

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

       Sec. 4. RCW 43.88.090 and 1993 c 406 s 3 are each amended to read as follows:

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

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

       (2) It is the policy of the state that each state agency define its mission and establish measurable goals for achieving desirable results for those who receive its services. This section shall not be construed to require an agency to develop a new mission or goals in place of identifiable missions or goals that meet the intent of this section. State agencies should involve affected groups and individuals in developing their missions and goals.

       (3) For the purpose of assessing program performance, each state agency shall establish program objectives for each major program in its budget. The objectives shall be consistent with the missions and goals developed under this section. The objectives shall be expressed to the extent practicable in outcome-based, objective, and measurable form unless permitted by the office of financial management to adopt a different standard.

       (4) In concert with legislative and executive agencies, the office of financial management shall develop a plan for using these outcome-based objectives in the evaluation of agency performance for improved accountability of state government. Any elements of the plan requiring legislation shall be submitted to the legislature no later than November 30, 1994.

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

       NEW SECTION. Sec. 5. Sections 2 through 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Cantu on page 2, after line 13, to Senate Bill No. 6601.

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


MOTION


      Senator McDonald moved that the following amendment be adopted:

       On page 2, after line 13, insert the following:

       "NEW SECTION. Sec. 2. It is the intent of the legislature that:

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

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

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

       Sec. 3. RCW 41.06.380 and 1979 ex.s. c 46 s 2 are each amended to read as follows:

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

       NEW SECTION. Sec. 4. A new section is added to chapter 28A.400 RCW to read as follows:

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

       NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1994."


POINT OF ORDER


      Senator Gaspard: "Mr. President, I rise to a point of order to question the scope and object of the amendment as presented by Senator McDonald. The bill in front of us is a performance bill and I think that it does not directly or indirectly provide for contracting out of privatization, so I would ask for a ruling on scope and object."

      Further debate ensued.

      There being no objection, the President deferred further consideration of Senate Bill No. 6601.


MOTION


      On motion of Senator Anderson, Senator Cantu was excused.


SECOND READING


      HOUSE BILL NO. 2849, by Representatives Linville and King

 

Exempting nonsalmon delivery license holders from United States residency requirements.


      The bill was read the second time.


MOTION


      On motion of Senator Owen, the rules were suspended, House Bill No. 2849 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2849.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2849 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

      Excused: Senators Amondson and Cantu - 2.

      HOUSE BILL NO. 2849, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      There being no objection, the Senate resumed consideration of Senate Bill No. 6601 and the pending amendment by Senator McDonald on page 2, after line 13, deferred earlier today.


MOTION


      On motion of Senator Gaspard, and there being no objection, the point of order on the amendment by Senator McDonald on page 2, after line 13, was withdrawn.

      The President declared the question before the Senate to be the adoption of the amendment by Senator McDonald on page 2, after line 13, to Senate Bill No. 6601.

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


MOTION


      Senator Gaspard moved that the following amendment by Senators Gaspard and Sellar be adopted:

      Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. STATEMENT OF PURPOSE. The state of Washington expects to be the most effective and best performing state government in the United States, measured in terms of quality of customer service, accountability for cost-effective services, and productivity.

       NEW SECTION. Sec. 2. STATEMENT OF INTENT. It is the intent of the governor and the legislature to accomplish the purpose of section 1 of this act through a commitment to continuous improvement of Washington state government and not through a one-time or short-term effort that would largely serve to redefine problems rather than identify solutions.

       The governor, the legislature, and the public expect Washington state government to focus on the citizens of Washington as valued customers of state government. State government will accomplish what its citizens truly expect of it, and operate as its customers expect.

       Washington state government will be a government where state employees are recognized as our most valuable improvement resource in solving problems and delivering quality services, where employees play the most significant role in developing and implementing strategies to accomplish the purposes of this chapter, and where people want to work and are proud to serve. Washington state government will place a high priority on investment in its employees and the systems necessary to support those people.

       We will have a state government where, regardless of the different responsibilities assumed under the constitutional separation of powers, the governor and the legislature operate in partnership to improve the whole of state government, including themselves and their processes; where the governor and legislature act in partnership with state employees and employee organizations; and where all government officials and employees act in partnership with the citizens of Washington, who are the customers for state government.

       Washington state government will have clear measures of performance that will result in quality customer service, accountability for cost-effective services, and improved productivity. Quality and performance standards will improve service delivery from all suppliers of government services.

       NEW SECTION. Sec. 3. PERFORMANCE PARTNERSHIP COUNCIL--ESTABLISHED--POWERS AND DUTIES. (1) The Washington performance partnership council is established. The council shall consist of:

       (a) The governor;

       (b) The majority leader of the senate;

       (c) The speaker of the house of representatives;

       (d) The minority leader of the senate;

       (e) The minority leader of the house of representatives; and

       (f) Two state-wide elected officials to be appointed by the governor.

       (2) To the extent necessary to accomplish the purposes of this chapter, the council shall meet monthly. The council shall invite the chairs and ranking minority members of the senate committee on ways and means and the house of representatives committee on appropriations to attend and participate in the meetings of the council as necessary and appropriate. The council may also invite the chairs of other legislative committees to participate in meetings of the council.

       (3) The governor, majority leader of the senate, and speaker of the house of representatives shall serve as cochairs of the council.

       (4) The council shall work in partnership to assure that the purposes and intent of this chapter are being met. The council shall establish clear expectations and measures of performance regarding implementation of the purpose and intent of this chapter. The council has decision-making authority to authorize programs to accomplish the purposes of this chapter. The council will review recommendations from the operating committee established under section 4 of this act and make appropriate recommendations regarding statutory changes to the legislature.

       (5) The council shall have the authority and responsibility to provide adequate resources to accomplish the objectives of this chapter, including the hiring of staff or the reassignment of existing staff. Decisions to reallocate existing staff from any agency shall be made only with the approval of the director of the agency.

       (6) Within forty-five days of the effective date of this act, the council will appoint a full-time person to coordinate and facilitate the effort.

       NEW SECTION. Sec. 4. PERFORMANCE PARTNERSHIP OPERATING COMMITTEE--ESTABLISHED--POWERS AND DUTIES. (1) Within thirty days of the effective date of this act, the performance partnership council shall appoint the performance partnership operating committee, with no more than twelve members, comprised of:

       (a) The director of financial management;

       (b) Directors of state agencies, including independent agencies and agencies that report directly to the governor;

       (c) State employees and representatives of state employees;

       (d) Representatives of the legislature; and

       (e) Representatives of the private sector with expertise in organizational improvement strategies.

       (2) Representatives of the private sector shall be appointed in equal number to representatives of the public sector. The director of financial management and a representative of the private sector, to be selected by the council, shall serve as cochairs of the operating committee.

       (3) The operating committee shall focus on the day-to-day operations of the improvement process and the allocation of necessary staff resources. The committee shall assure the planning, initiation, and implementation of the functions necessary to accomplish the purposes of this chapter, monitor assigned tasks, and consider and recommend short- and long-term improvement strategies to the performance partnership council.

       (4) The operating committee shall ensure that the strategies and recommendations to accomplish the purposes of this chapter are developed primarily by front-line state employees and the customers of state government services. That assurance will be provided, in part, by facilitating work teams and design teams comprised of state employees, state employee organizations, customers, managers, legislators or legislative employees, and experts from outside government to develop the strategies and accomplish the tasks required under sections 5, 6, and 7 of this act.

       (5) Within sixty days of the effective date of this act, the operating committee shall recommend to the council a work plan and budget to accomplish the purposes of this chapter, with particular detail regarding the first twelve months. The operating committee shall also develop a thorough and effective internal and external communication plan necessary to inform and activate the participants essential to the success of the effort.

       NEW SECTION. Sec. 5. STATEMENT OF STRATEGIC INTENT. Working through the operating committee, the performance partnership council shall initiate a two-tracked process toward the long-term improvement of state government.

       The first area of effort shall focus on clarifying and stating the strategic intent for Washington state government: What Washington state government should be doing at this current period in time. Included in the strategic intent for state government shall be a clear statement of the basic services that Washington state citizens desire, and the priorities and values which are centered on the customers of state government. The statement of intent, priorities, and values shall be developed within the context of revenue and expenditure limitations.

       The council shall establish a process which effectively involves the customers and suppliers of state government services. The suppliers are primarily state employees, but might also include local government, private vendors of goods and services, and others as appropriate. The process shall be ongoing. The council shall prepare its initial statement of strategic intent for Washington state government by September 1, 1994, for recommendation to the 1995 legislature. The legislature shall either accept or reject, but cannot amend, the statement of strategic intent. The legislature shall take action on the initial recommendation by March 15, 1995. If the statement of strategic intent is not approved by the legislature, it shall be amended by the council and resubmitted.

       The council shall recommend to the legislature an updated statement of strategic intent by September 1 of each even-numbered year for action by the legislature by March 15 in the following legislative session.

       NEW SECTION. Sec. 6. IMPROVEMENT OF GOVERNMENT SERVICES--DESIGN TEAMS--INITIAL PROJECTS. (1) The second area of effort by the performance partnership council shall focus on continuous improvement of state government services by developing successful strategies to:

       (a) Clearly identify the intended result of each state government service or program, and measure and communicate performance toward the intended result;

       (b) Assess each activity and function of government to identify the value added toward the general strategic intent of state government and the specific result intended from the program or service, eliminate or redesign activities so that each function or activity makes a cost-effective contribution toward intended results, and design organizations that match the functions and processes of state government;

       (c) Redesign the internal systems that support state government to be more consistent with a priority-driven, results-oriented, performance-based system of government, with highest priority to redesign of the budget system and the accounting system; and

       (d) Identify and remove barriers to performance and create incentives for better performance and cost-effectiveness.

       (2) The operating committee shall formulate design teams consisting of front-line employees, employee representatives, managers, customers, outside experts where appropriate, legislators or legislative staff, representatives of local government, vendors and other suppliers of state services, and any other persons deemed necessary or appropriate by the operating committee, to develop successful prototypes with application throughout the executive and legislative branches of government for implementation of the improvement principles described in subsection (1) of this section. The composition of the design teams shall be flexible and shall reflect the expertise required for the initial projects.

       (3) Initial projects shall be undertaken to design strategies for successful implementation of each of the principles described in subsection (1) of this section and any others identified by the council as being essential to accomplish the purposes of this chapter. In developing successful strategies, the design teams shall also examine the best practices used in the public and private sectors to accomplish the objectives of subsection (1) of this section. The initial projects shall be designed to demonstrate definitive results, including effective methods for employee participation and empowerment techniques to facilitate and implement creative problem solving from all employees, effective means of customer involvement, consistent definitions and instructions, effective training plans and identification of resources required, successful project management strategies, and effective communication plans.

       (4) The work plan described in section 4 of this act shall identify the initial projects to be undertaken. The initial projects shall be designed to develop effective performance improvement strategies that can be replicated in other areas of state government. Initial projects should be identified in an effort to demonstrate early success and immediate improvement in state government performance. It is not necessary at the outset to initiate projects for each of the principal government improvement strategies described in subsection (1) of this section. Rather, the work plan should describe an orderly schedule that will allow for integration of each of the initial projects in a way that will result in coordinated strategies for continuous improvement. The initial projects for improvement should be consistent with efforts to define the strategic intent for Washington state government.

       (5) The council shall determine when an initiative has resulted in successful strategies that should be expanded to a broader portion, or the whole, of state government. The council shall recommend statutory changes to the legislature when such changes are required to accomplish the purposes of this chapter. The council shall also develop legislation to alter statutes, rules, and regulations necessary for initial agencies and programs to accomplish the purposes of this chapter, and to expand projects to a broader portion of state government at the appropriate time. The legislation shall be based on the work of project teams designed to identify and address barriers to performance and create incentives.

       (6) The performance partnership council and operating committee shall ensure the work of the design teams is supported by committed leadership that provides clear vision and motivation and facilitates effective communication. State employees shall be recognized and supported as the single resource most effective in identifying and solving problems and delivering effective state government services. Employees shall be well supported by the provision of necessary resources, particularly an investment in employee training, and shall be provided with the flexibility and incentives necessary to successfully implement their assigned tasks. The ultimate goal of the design teams shall be to develop strategies to improve state government in regard to the customers' expectations for quality services delivered in the most cost-effective means possible.

       NEW SECTION. Sec. 7. BUDGET PROCESS--PERFORMANCE MEASUREMENT. The current operating budget process for state government has been generally based on the presumption of continuing current service levels and giving careful consideration only to marginal changes. It is not well understood or supported by the public or state government policymakers. Consequently, work on initial projects for performance measurement and budget redesign must progress sufficiently to result in expansion to additional programs for the 1995-1997 biennium. Beginning no later than the 1997-1999 biennium, the state operating budget and the process used to develop that budget shall, to the fullest extent possible and based on the recommendations of the council, be redesigned to reflect an effective state-wide system of performance measurement, shall be based on a clear statement of state-wide priorities (strategic intent) as well as clear priorities within each agency, and shall incorporate incentives for performance and cost-effectiveness.

       NEW SECTION. Sec. 8. COLLECTIVE BARGAINING AGREEMENTS. Nothing in this chapter shall supersede or modify in any manner the provisions of any public employee collective bargaining agreement under Title 41 RCW, or any rights established thereunder.

       Sec. 9. RCW 43.88.020 and 1993 c 406 s 2 are each amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

       (28) "Performance ((audit)) verification" means an ((audit that determines the following: (a) Whether a government entity is acquiring, protecting, and using its resources economically and efficiently; (b) the causes of inefficiencies or uneconomical practices; (c) whether the entity has complied with laws and rules applicable to the program; (d) the extent to which the desired results or benefits established by the legislature are being achieved; and (e) the effectiveness of organizations, programs, activities, or functions)) analysis that (a) verifies the accuracy of data used by state agencies in quantifying intended results and measuring performance toward those results, and (b) verifies whether or not the reported results were achieved.

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

       Sec. 10. RCW 43.88.090 and 1993 c 406 s 3 are each amended to read as follows:

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

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

       (2) ((It is the policy of the state that each state agency define its mission and establish measurable goals for achieving desirable results for those who receive its services. This section shall not be construed to require an agency to develop a new mission or goals in place of identifiable missions or goals that meet the intent of this section. State agencies should involve affected groups and individuals in developing their missions and goals.

       (3) For the purpose of assessing program performance, each state agency shall establish program objectives for each major program in its budget. The objectives shall be consistent with the missions and goals developed under this section. The objectives shall be expressed to the extent practicable in outcome-based, objective, and measurable form unless permitted by the office of financial management to adopt a different standard.

       (4) In concert with legislative and executive agencies, the office of financial management shall develop a plan for using these outcome-based objectives in the evaluation of agency performance for improved accountability of state government. Any elements of the plan requiring legislation shall be submitted to the legislature no later than November 30, 1994.

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

       Sec. 11. RCW 43.88.160 and 1993 c 500 s 7, 1993 c 406 s 4, and 1993 c 194 s 6 are each reenacted and amended to read as follows:

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

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

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

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

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

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

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

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

       (c) Establish policies for allowing the contracting of child care services;

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

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

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

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

       (h) Adopt rules to effectuate provisions contained in (a) through (g) of this subsection.

       (5) The treasurer shall:

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

       (b) Receive, disburse, or transfer public funds under the treasurer's supervision or custody;

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

       (d) Coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180;

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

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

       (6) The state auditor shall:

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

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

       (c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include determinations as to whether agencies, in making expenditures, complied with the laws of this state. The state auditor is authorized to perform or participate in performance ((audits)) verifications only as expressly authorized by the legislature in the omnibus biennial appropriations acts. ((A performance audit for the purpose of this section is the examination of the effectiveness of the administration, its efficiency, and its adequacy in terms of the programs of departments or agencies as previously approved by the legislature.)) The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW or a performance verification, may report to the legislative budget committee or other appropriate committees of the legislature, in a manner prescribed by the legislative budget committee, on facts relating to the management or performance of governmental programs where such facts are discovered incidental to the legal and financial audit or performance verification. The auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts.

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

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

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

       (7) The legislative budget committee may:

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

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

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

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

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

       NEW SECTION. Sec. 12. 1993 c 406 s 1 (uncodified) is repealed.

       NEW SECTION. Sec. 13. Captions as used in this act do not constitute any part of the law.

       NEW SECTION. Sec. 14. Sections 1 through 8 of this act shall constitute a new chapter in Title 43 RCW.

       NEW SECTION. Sec. 15. 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."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senators Gaspard and Sellar to Senate Bill No. 6601.

      The motion by Senator Gaspard carried and the striking amendment was adopted.


MOTIONS


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

      On page 1, line 1 of the title, after "accountability;" strike the remainder of the title and insert "amending RCW 43.88.020 and 43.88.090; reenacting and amending RCW 43.88.160; adding a new chapter to Title 43 RCW; creating a new section; repealing 1993 c 406 s 1 (uncodified); and declaring an emergency."

      On motion of Senator Gaspard, the rules were suspended, Engrossed Senate Bill No. 6601 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Drew, Senator Loveland was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6601.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6601 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 46.

      Absent: Senator Owen - 1.

      Excused: Senators Amondson and Loveland - 2.

      ENGROSSED SENATE BILL NO. 6601, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2593, by Representatives R. Fisher and Springer (by request of Department of Transportation)

 

Funding highway improvements.


      The bill was read the second time.


MOTIONS


      On motion of Senator Hargrove, the following amendment by Senators Hargrove and Vognild was adopted:

      On page 2, after line 36, insert the following:

       "Sec. 2. RCW 47.42.020 and 1993 c 430 s 10 are each amended to read as follows:

       The definitions set forth in this section apply throughout this chapter.

       (1) "Department" means the Washington state department of transportation.

       (2) "Erect" means to construct, build, raise, assemble, place, affix, attach, create, paint, draw, or in any other way bring into being or establish.

       (3) "Interstate system" means any state highway which is or does become part of the national system of interstate and defense highways as described in section 103(d) of title 23, United States Code.

       (4) "Maintain" means to allow to exist.

       (5) "Person" means this state or any public or private corporation, firm, partnership, association, as well as any individual or individuals.

       (6) "Primary system" means any state highway which is or does become part of the federal-aid primary system as described in section 103(b) of title 23, United States Code.

       (7) "Scenic system" means (a) any state highway within any public park, federal forest area, public beach, public recreation area, or national monument, (b) any state highway or portion thereof outside the boundaries of any incorporated city or town designated by the legislature as a part of the scenic system, or (c) any state highway or portion thereof outside the boundaries of any incorporated city or town designated by the legislature as a part of the scenic and recreational highway system except for the sections of highways specifically excluded in RCW 47.42.025 or located within areas zoned by the governing county for predominantly commercial and industrial uses, and having development visible to the highway, as determined by the department.

       (8) "Sign" means any outdoor sign, display, device, figure, painting, drawing, message, placard, poster, billboard, or other thing that is designed, intended, or used to advertise or inform, any part of the advertising or informative contents of which is visible from any place on the main-traveled way of the interstate system or other state highway.

       (9) "Commercial and industrial areas" means any area zoned commercial or industrial by a county or municipal code, or if unzoned or zoned for general uses by a county or municipal code, that area occupied by three or more separate and distinct commercial or industrial activities, or any combination thereof, within a space of five hundred feet and the area within five hundred feet of such activities on both sides of the highway. The area shall be measured from the outer edges of the regularly used buildings, parking lots, or storage or processing areas of the commercial or industrial activity and not from the property lines of the parcels upon which the activities are located. Measurements shall be along or parallel to the edge of the main traveled way of the highway. An area that previously qualified as a commercial and industrial area under this subsection, but no longer qualifies due to commercial or industrial closures that are a direct result of the timber crisis, shall maintain its former status as a commercial and industrial area. The following shall not be considered commercial or industrial activities:

       (a) Agricultural, forestry, grazing, farming, and related activities, including, but not limited to, wayside fresh produce stands;

       (b) Transient or temporary activities;

       (c) Railroad tracks and minor sidings;

       (d) Signs;

       (e) Activities more than six hundred and sixty feet from the nearest edge of the right of way;

       (f) Activities conducted in a building principally used as a residence.

If any commercial or industrial activity that has been used in defining or delineating an unzoned area ceases to operate for a period of six continuous months, any signs located within the former unzoned area become nonconforming and shall not be maintained by any person.

       (10) "Roadside area information panel or display" means a panel or display located so as not to be readable from the main traveled way, erected in a safety rest area, scenic overlook, or similar roadside area, for providing motorists with information in the specific interest of the traveling public.

       (11) "Temporary agricultural directional sign" means a sign on private property adjacent to state highway right of way to provide directional information to places of business offering for sale seasonal agricultural products on the property where the sale is taking place."

       Renumber the section following consecutively.


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

      On line 2 of the title, after "development;" insert "amending RCW 47.42.020;"


MOTION


      On motion of Senator Vognild, the rules were suspended, House Bill No. 2593, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2593, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2593, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

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

      HOUSE BILL NO. 2593, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2743, by Representatives Sommers, Silver, Dorn and King (by request of Superintendent of Public Instruction and Office of Financial Management)

 

Changing provisions relating to health services provided by school districts.


      The bill was read the second time.


MOTIONS


      On motion of Senator Talmadge, the following Committee on Ways and Means amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 74.09.5243 and 1993 c 149 s 2 are each amended to read as follows:

       ((For the purposes of)) Unless the context clearly requires otherwise, the following definitions apply throughout RCW 74.09.5241 through 74.09.5253 ((and 28A.155.150, the terms)) and sections 5 through 7 of this act.

       (1) "District" means a school district, educational service district, or educational cooperatives offering special education services under chapter 28A.155 RCW.

       (2) "Medical assistance" and "medicaid" means federal and state-funded programs under which medical ((care)) services are provided under Title XIX of the federal social security act.

       (3) "Medical services" means district services that qualify for medicaid funding.

       Sec. 2. RCW 74.09.5247 and 1993 c 149 s 4 are each amended to read as follows:

       (1) Chapter 149, Laws of 1993 does not apply to contracts between individual ((school)) districts and private firms entered into for the purpose of billing either medicaid or private insurers, or both, for ((health)) medical services and agreed to before April 30, 1993, except as provided in RCW 28A.155.150(2).

       (2) A ((school)) district may elect to act as its own billing agent as of the start of any school year. For a ((school)) district being served by the state-wide billing agent, the district shall notify the billing agent in writing, no less than thirty days before the start of the school year, of its intent to terminate the agency relationship. A district that acts as its own billing agent ((may retain)) or a district with a preexisting contract under subsection (1) of this section is entitled to an administrative fee ((proportional)) equivalent to that of the state-wide billing agent.

       Sec. 3. RCW 74.09.5249 and 1993 c 149 s 5 are each amended to read as follows:

       (1) The agency awarded the contract under RCW 74.09.5245 shall:

       (a) Enroll all ((school)) districts in this state, except those with preexisting contracts under RCW 74.09.5247, as medicaid providers ((by)) effective the beginning of the 1993-94 school year;

       (b) Develop a state-wide system of billing the department and private insurers for medical services provided in special education programs;

       (c) Train health care practitioners employed by or contracting with ((school)) districts in medicaid and insurer billing;

       (d) Verify the medicaid eligibility of students enrolled in special education programs in each ((educational service)) district;

       (e) Provide ongoing technical assistance to practitioners and districts; and

       (f) Process and forward all medicaid claims to the department and all other claims to private insurers.

       (2) For each student, individual ((school)) districts may, in consultation with the billing agent, deliver to the student's parent or guardian a letter, prepared by the billing agent, requesting the consent of the parent or guardian to bill the student's health insurance carrier for services provided through the special education program. If a district chooses to do this, the letter must be accompanied by a consent form, on which the parent may identify the student's health insurance carrier so that the billing agent may bill the carrier for medical services provided to the student. The letter must clearly state the following:

       (a) That the billing program is designed in part to raise additional funds to improve education services;

       (b) That under no circumstances will the parent or guardian be personally charged for any portion of the bill not paid by the insurer, including copayments, deductibles, or uncovered services;

       (c) That the amount of the billing will apply to the policy's annual deductible even though the parent will not be billed for the amount of the deductible;

       (d) That the amount of the billing, will, however, apply towards annual or lifetime benefit caps if these are included in the policy;

       (e) That it is possible that their premiums would be increased as a result of their consent;

       (f) That if any of the possible negative consequences of consent were to affect them, they are free to withdraw their consent at any time; and



       (g) That their consent is entirely voluntary and that the services the student receives through the ((school)) district will not be affected by their willingness or refusal to consent to the billing of their private insurer.

       Sec. 4. RCW 74.09.5253 and 1993 c 149 s 7 are each amended to read as follows:

       (1) Each ((educational service)) district ((in the state)) shall participate in the program of billing for medical services ((under RCW 74.09.5249 and)) provided in the district's special education program. Each participating district shall provide the ((billing agent)) superintendent of public instruction with a list, ((at the start of each academic quarter)) as of the first school day in October, December, and May of each year, of all students enrolled in special education programs within the area served by the ((educational service)) district, for purposes of verifying the medicaid eligibility of the students.

       (2) A person employed by or contracting with a ((school)) district who provides ((services within the categories established by the)) medical ((assistance administration under RCW 74.09.5251)) services shall provide the billing agent with information necessary to promptly complete monthly billings for each medicaid-eligible student he or she serves as part of the district's special education program.

       (3) The superintendent of public instruction shall submit to the legislature at the beginning of each legislative session a report indicating the district-by-district participation and the medicaid and private insurance payment receipts during the preceding fiscal year. The report must further indicate for each district the total number of special education students, and the number eligible for medicaid ((eligibility rate)), as determined by the medical assistance administration. The superintendent may require a letter of explanation from any district whose ((receipts)) billings for medical assistance under the program, in the judgment of the superintendent, indicate nonparticipation or underparticipation.

       NEW SECTION. Sec. 5. A new section is added to chapter 74.09 RCW to read as follows:

       (1) Each district that has elected to act as its own billing agent under RCW 74.09.5247(2) and each firm that is a party to a preexisting contract under RCW 74.09.5247(1) shall, at times designated by the superintendent of public instruction, provide the office of the superintendent of public instruction with a report indicating the total amount of medicaid and private insurance moneys billed by the district.

       (2) The state billing agent shall, at times designated by the superintendent of public instruction, provide the superintendent of public instruction with a report for each district enrolled by the billing agent, indicating the total amount of medicaid and private insurance moneys billed through medicaid and private insurer billing.

       NEW SECTION. Sec. 6. A new section is added to chapter 74.09 RCW to read as follows:

       Of the projected federal medicaid and private insurance revenue collected under RCW 74.09.5249, twenty percent, after deduction for billing fees, shall be for incentive payments to districts. Incentive payments shall only be used by districts for children with disabilities.

       NEW SECTION. Sec. 7. A new section is added to chapter 74.09 RCW to read as follows:

       (1) Districts shall reassign medicaid payments to be received under RCW 74.09.5249 through 74.0.5253, sections 5 and 6 of this act, and this section to the superintendent of public instruction.

       (2) The superintendent of public instruction shall receive medicaid payments from the department of social and health services for all state and federal moneys under Title XIX of the federal social security act due to districts for medical assistance provided in the district's special education program.

       (3) The superintendent shall use reports from the department of social and health services, the state billing agent, districts acting as their own billing agent, and firms to calculate the appropriate amounts of incentive payments and state special education program moneys due each district.

       (4) Moneys received by the superintendent of public instruction shall be disbursed for the following purposes:

       (a) Reimbursement to the department of social and health services for the state-funded portion of medicaid payments;

       (b) Reimbursement for billing agent's fees, including those of districts acting as their own agent and billing fees of firms;

       (c) Incentive payments to school districts equal to twenty percent of the federal portion of medicaid payments after deduction for billing fees; and

       (d) The remainder shall be distributed to districts as part of state allocations for the special education program provided under RCW 28A.150.390.

       (5) With respect to private insurer funds received by districts, the superintendent of public instruction shall reduce state special education program allocations to the districts by eighty percent of the amount received, after deduction for billing fees.

       Sec. 8. RCW 28A.150.390 and 1993 c 149 s 9 are each amended to read as follows:

       The superintendent of public instruction shall submit to each regular session of the legislature during an odd-numbered year a programmed budget request for handicapped programs. Funding for programs operated by local school districts shall be on an excess cost basis from appropriations provided by the legislature for handicapped programs and shall take account of state funds accruing through RCW 28A.150.250, 28A.150.260, federal medical assistance and private funds accruing under RCW 74.09.5249 through 74.09.5253 and sections 5 through 7 of this act, and other state and local funds, excluding special excess levies. ((However, the superintendent of public instruction shall reimburse the department of social and health services from state appropriations for handicapped education programs for the state-funded portion of any medical assistance payment made by the department for services provided under an individualized education program established pursuant to RCW 28A.155.010 through 28A.155.100. The amount of such interagency reimbursement shall be deducted by the superintendent of public instruction in determining additional allocations to districts for handicapped education programs under this section.))

       NEW SECTION. Sec. 9. RCW 28A.155.150 and 1993 c 149 s 8 are each repealed.

       NEW SECTION. Sec. 10. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

       NEW SECTION. Sec. 11. 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."


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

      On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "amending RCW 74.09.5243, 74.09.5247, 74.09.5249, 74.09.5253, and 28A.150.390; adding new sections to chapter 74.09 RCW; creating a new section; and repealing RCW 28A.155.150."


MOTION


      On motion of Senator Talmadge, the rules were suspended, House Bill No. 2743, as amended by the Senate, was advanced to third 2reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2743, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2743, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

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

      HOUSE BILL NO. 2743, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2153, by House Committee on Education (originally sponsored by Representatives J. Kohl, Foreman, Thibaudeau, Ballasiotes, L. Johnson, Cooke, Valle, R. Johnson, Ogden, H. Myers, Heavey, Cothern, Appelwick, Anderson, Roland, Forner, Campbell, Kremen, Pruitt, Johanson, Kessler, Holm, King, Wineberry, Basich, Romero, Springer and Leonard)

 

Requiring the superintendent of public instruction to develop sexual harassment policy criteria for school districts.


      The bill was read the second time.


MOTIONS


      Senator Pelz moved that the following Committee on Education amendment be adopted:

      Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 28A.640.020 and 1975 1st ex.s. c 226 s 2 are each amended to read as follows:

       (1) The superintendent of public instruction shall develop regulations and guidelines to eliminate sex discrimination as it applies to public school employment, counseling and guidance services to students, recreational and athletic activities for students, access to course offerings, and in textbooks and instructional materials used by students.

       (((1))) (a) Specifically with respect to public school employment, all schools shall be required to:

       (((a))) (i) Maintain credential requirements for all personnel without regard to sex;

       (((b))) (ii) Make no differentiation in pay scale on the basis of sex;

       (((c))) (iii) Assign school duties without regard to sex except where such assignment would involve duty in areas or situations, such as but not limited to a shower room, where persons might be disrobed((.));

       (((d))) (iv) Provide the same opportunities for advancement to males and females; and

       (((e))) (v) Make no difference in conditions of employment including, but not limited to, hiring practices, leaves of absence, hours of employment, and assignment of, or pay for, instructional and noninstructional duties, on the basis of sex.

       (((2))) (b) Specifically with respect to counseling and guidance services for students, they shall be made available to all students equally. All certificated personnel shall be required to stress access to all career and vocational opportunities to students without regard to sex.

       (((3))) (c) Specifically with respect to recreational and athletic activities, they shall be offered to all students without regard to sex. Schools may provide separate teams for each sex. Schools which provide the following shall do so with no disparities based on sex: Equipment and supplies; medical care; services and insurance; transportation and per diem allowances; opportunities to receive coaching and instruction; laundry services; assignment of game officials; opportunities for competition, publicity and awards; scheduling of games and practice times including use of courts, gyms, and pools: PROVIDED, That such scheduling of games and practice times shall be determined by local administrative authorities after consideration of the public and student interest in attending and participating in various recreational and athletic activities. Each school which provides showers, toilets, or training room facilities for athletic purposes shall provide comparable facilities for both sexes. Such facilities may be provided either as separate facilities or shall be scheduled and used separately by each sex.

       The superintendent of public instruction shall also be required to develop a student survey to distribute every three years to each local school district in the state to determine student interest for male/female participation in specific sports.

       (((4))) (d) Specifically with respect to course offerings, all classes shall be required to be available to all students without regard to sex: PROVIDED, That separation is permitted within any class during sessions on sex education or gym classes.

       (((5))) (e) Specifically with respect to textbooks and instructional materials, which shall also include, but not be limited to, reference books and audio-visual materials, they shall be required to adhere to the guidelines developed by the superintendent of public instruction to implement the intent of this chapter: PROVIDED, That this subsection shall not be construed to prohibit the introduction of material deemed appropriate by the instructor for educational purposes.

       (2)(a) By December 31, 1994, the superintendent of public instruction shall develop criteria for use by school districts in developing sexual harassment policies as required under (b) of this subsection. The criteria shall address the subjects of grievance procedures, remedies to victims of sexual harassment, disciplinary actions against violators of the policy, and other subjects at the discretion of the superintendent of public instruction. Disciplinary actions must conform with collective bargaining agreements and state and federal laws. The superintendent of public instruction also shall supply sample policies to school districts upon request.

       (b) By June 30, 1995, every school district shall adopt and implement a written policy concerning sexual harassment. The policy shall apply to all school district employees, volunteers, parents, and students, including, but not limited to, conduct between students.

       (c) School district policies on sexual harassment shall be reviewed by the superintendent of public instruction considering the criteria established under (a) of this subsection as part of the monitoring process established in RCW 28A.640.030.

       (d) The school district's sexual harassment policy shall be conspicuously posted throughout each school building, and provided to each employee and volunteer. A copy of the policy shall appear in any publication of the school or school district setting forth the rules, regulations, procedures, and standards of conduct for the school or school district.

       (e) Each school shall develop a process for discussing the district's sexual harassment policy. The process shall ensure the discussion addresses the definition of sexual harassment and issues covered in the sexual harassment policy.

       (f) "Sexual harassment" as used in this section means unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact, or other verbal or physical conduct or communication of a sexual nature if:

       (i) Submission to that conduct or communication is made a term or condition, either explicitly or implicitly, of obtaining an education or employment;

       (ii) Submission to or rejection of that conduct or communication by an individual is used as a factor in decisions affecting that individual's education or employment; or

       (iii) That conduct or communication has the purpose or effect of substantially interfering with an individual's educational or work performance, or of creating an intimidating, hostile, or offensive educational or work environment."


      On motion of Senator Pelz, the following amendment to the Committee on Education striking amendment was adopted:

      On page 3, line 14 of the amendment, after "employee" strike "and volunteer"

      The President declared the question before the Senate to be the adoption of the Committee on Education striking amendment, as amended, to Substitute House Bill No. 2153.

      The motion by Senator Pelz carried and the Committee on Education striking amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 2 of the title, after "criteria;" strike the remainder of the title and insert "and amending RCW 28A.640.020."

      On motion of Senator Pelz, the rules were suspended, Substitute House Bill No. 2153, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.


MOTION


      On motion of Senator Loveland, Senator Vognild was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2153, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2153, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 17; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Loveland, Ludwig, McAuliffe, Moore, Moyer, Nelson, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sheldon, Skratek, Snyder, Spanel, Talmadge, West, Williams, Winsley and Wojahn - 31.

      Voting nay: Senators Amondson, Bluechel, Cantu, Deccio, Erwin, Haugen, Hochstatter, McCaslin, McDonald, Morton, Newhouse, Owen, Schow, Sellar, Smith, A., Smith, L. and Sutherland - 17.

      Excused: Senator Vognild - 1.

      SUBSTITUTE HOUSE BILL NO. 2153, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      REENGROSSED SUBSTITUTE HOUSE BILL NO. 1471, by House Committee on Fisheries and Wildlife (originally sponsored by Representatives King, Basich, Orr, Fuhrman, Brumsickle, Foreman and G. Cole)

 

Regulating the non-Puget Sound coastal commercial crab fishery.


      The bill was read the second time.


MOTIONS


      On motion of Senator Owen, the following Committee on Natural Resources amendment was adopted:

      Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature finds that the commercial crab fishery in coastal and offshore waters is overcapitalized. The legislature further finds that this overcapitalization has lead to the economic destabilization of the coastal crab industry, and can cause excessive harvesting pressures on the coastal crab resources of Washington state. In order to provide for the economic well-being of the Washington crab industry and to protect the livelihood of Washington crab fishers who have historically and continuously participated in the coastal crab fishery, the legislature finds that it is in the best interests of the economic well-being of the coastal crab industry to reduce the number of fishers taking crab in coastal waters, to reduce the number of vessels landing crab taken in offshore waters, to limit the number of future licenses, and to limit fleet capacity by limiting vessel size.

       NEW SECTION. Sec. 2. (1) Effective January 1, 1995, it is unlawful to fish for coastal crab in Washington state waters without a Dungeness crab--coastal or a Dungeness crab--coastal class B fishery license.

       (2) A Dungeness crab--coastal fishery license is transferable. Such a license shall only be issued to a person who proved active historical participation in the coastal crab fishery by having designated, after December 31, 1993, a vessel on the qualifying license that meets the following criteria:

       (a) Made a minimum of eight coastal crab landings totaling a minimum of five thousand pounds per season in at least two of the four qualifying seasons identified in subsection (4) of this section, as documented by valid Washington state shellfish receiving tickets; and showed historical and continuous participation in the coastal crab fishery by having held one of the following licenses or their equivalents each calendar year beginning 1990 through 1993, and was designated on the qualifying license of the person who held one of the following licenses in 1994:

       (i) Crab pot—Non-Puget Sound license, issued under RCW 75.28.130(1)(b);

       (ii) Nonsalmon delivery license, issued under RCW 75.28.125;

       (iii) Salmon troll license, issued under RCW 75.28.110;

       (iv) Salmon delivery license, issued under RCW 75.28.113;

       (v) Food fish trawl license, issued under RCW 75.28.120; or

       (vi) Shrimp trawl license, issued under RCW 75.28.130; or

       (b) Made a minimum of four landings of coastal crab totaling two thousand pounds during the period from December 1, 1991, to March 20, 1992, and made a minimum of eight crab landings totaling a minimum of five thousand pounds of coastal crab during each of the following periods: December 1, 1991, to September 15, 1992; December 1, 1992, to September 15, 1993; and December 1, 1993, to September 15, 1994. For landings made after December 31, 1993, the vessel shall have been designated on the qualifying license of the person making the landings.

       (3) A Dungeness crab--coastal class B fishery license is not transferable. Such a license shall be issued to persons who do not meet the qualification criteria for a Dungeness crab--coastal fishery license, if the person has designated on a qualifying license after December 31, 1993, a vessel that made a minimum of four landings totaling a minimum of two thousand pounds of coastal crab, documented by valid Washington state shellfish receiving tickets, during at least one of the four qualifying seasons, and if the person has participated continuously in the coastal crab fishery by having held or by having owned a vessel that held one or more of the licenses listed in subsection (2) of this section in each calendar year subsequent to the qualifying season in which qualifying landings were made through 1994. Dungeness crab--coastal class B fishery licenses cease to exist after December 31, 2000, and the continuing license provisions of RCW 34.05.422(3) are not applicable.

       (4) The four qualifying seasons for purposes of this section are:

       (a) December 1, 1988, through September 15, 1989;

       (b) December 1, 1989, through September 15, 1990;

       (c) December 1, 1990, through September 15, 1991; and

       (d) December 1, 1991, through September 15, 1992.

       (5) For purposes of this section and section 6 of this act, "coastal crab" means Dungeness crab (cancer magister) taken in all Washington territorial waters south of the United States-Canada boundary and west of the Bonilla-Tatoosh line (a line from the western end of Cape Flattery to Tatoosh Island lighthouse, then to the buoy adjacent to Duntz Rock, then in a straight line to Bonilla Point of Vancouver island), Grays Harbor, Willapa Bay, and the Columbia river.

       NEW SECTION. Sec. 3. The legislature finds that some persons may have seriously planned to enter the commercial crab fishery, but were unable to fulfill the landing requirements because the vessel under construction was not completed in sufficient time to make the qualifying landings.

       (1) A person who cannot demonstrate participation in the coastal crab fishery under section 2 of this act shall be awarded a Dungeness crab--coastal fishery license if:

       (a) The person, after December 31, 1993, has designated a vessel on the qualifying license that was in the process of being constructed for the purpose of being employed in the Washington coastal crab fishery on September 15, 1992. For purposes of this section, "construction" means having the keel laid, and "for the purpose of being employed in the Washington coastal crab fishery" means the vessel is designed to retrieve crab pots mechanically and has a live well; and

       (b) The vessel landed both five thousand pounds of coastal crab into a Washington port before September 15, 1993, and five thousand pounds of coastal crab in eight landings between December 1, 1993, and September 15, 1994; or

       (c) The vessel under construction is a replacement vessel for a lost vessel that, had it not been lost, would have met eligibility requirements for the applicant for a Dungeness crab--coastal fishery license.

       (2) All applications for Dungeness crab--coastal fishery licenses under this section shall be subject to review by the advisory review board in accordance with RCW 75.30.060. The board shall recommend to the director whether such applications should be accepted.

       NEW SECTION. Sec. 4. For the purpose of purchasing Dungeness crab--coastal class B fishery licenses, a temporary surcharge of two hundred dollars shall be collected with each Dungeness crab--coastal fishery license, and each Dungeness crab--coastal class B fishery license issued under RCW 75.28.130. The surcharge shall be in effect from December 1, 1994, until sufficient funds are collected to buy back the number of crab licenses to reduce the number to two hundred licenses, or until September 15, 1999. The moneys shall be deposited in the coastal crab account which is hereby created in the custody of the state treasurer. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW but no appropriation is required for expenditures. Funds may be used only for license purchase as defined in section 5 of this act. The fiscal committees of the legislature shall review the status and expenditures from the coastal crab account yearly to determine if repeal of the fee is appropriate given the purpose of license reduction under the license moratorium. Funds remaining in the coastal crab account after November 30, 1999, shall revert to the general fund.

       NEW SECTION. Sec. 5. Expenditures from the coastal crab account may be made by the department of fish and wildlife to purchase Dungeness crab--coastal class B fishery licenses during the following time periods:

       (1) June 1, 1995, to November 30, 1995, at a price not to exceed five thousand dollars per license;

       (2) December 1, 1995, to November 30, 1996, at a price not to exceed three thousand five hundred dollars per license;

       (3) December 1, 1996, to November 30, 1997, at a price not to exceed two thousand five hundred dollars per license;

       (4) December 1, 1997, to November 30, 1998, at a price not to exceed one thousand five hundred dollars per license; or

       (5) December 1, 1998, to November 30, 1999, at a price not to exceed five hundred dollars per license.

       The department shall establish rules governing the purchase of class B licenses. Dungeness crab--coastal class B fishery licensees may apply to the department for the purposes of selling their license on a willing-seller basis. Licenses will be purchased in the order applications are received, or as funds allow.

       NEW SECTION. Sec. 6. (1) An Oregon resident who can show historical and continuous participation in the Washington state coastal crab fishery by having held a nonresident Non-Puget Sound crab pot license issued under RCW 75.28.130 each year from 1990 through 1994, and who has delivered a minimum of eight landings totaling five thousand pounds of crab into Oregon during any two of the four qualifying seasons as provided in section 2(4) of this act as evidenced by valid Oregon fish receiving tickets, shall be issued a nonresident Dungeness crab--coastal fishery license valid for fishing in Washington state waters north from the Oregon-Washington boundary to United States latitude forty-six degrees thirty minutes north. Such license shall be issued upon application and submission of proof of delivery.

       (2) This section shall become effective contingent upon reciprocal statutory authority in the state of Oregon providing for equal access for Washington state coastal crab fishers to Oregon territorial coastal waters north of United States latitude forty-five degrees fifty-eight minutes north, and Oregon waters of the Columbia river.

       NEW SECTION. Sec. 7. (1) The following restrictions apply to vessel designations and substitutions on Dungeness crab--coastal fishery licenses and Dungeness crab--coastal class B fishery licenses:

       (a) The holder of the license may not designate on the license a vessel the hull length of which exceeds ninety-nine feet, nor may the holder change vessel designation if the hull length of the vessel proposed to be designated exceeds the hull length of the currently designated vessel by more than ten feet;

       (b) If the hull length of the vessel proposed to be designated is comparable to or exceeds by up to one foot the hull length of the currently designated vessel, the department may change the vessel designation no more than once in any two consecutive Washington state coastal crab seasons unless the currently designated vessel is lost or in disrepair such that it does not safely operate, in which case the department may allow a change in vessel designation;

       (c) If the hull length of the vessel proposed to be designated exceeds by between one and ten feet the hull length of the currently designated vessel, the department may change the vessel designation no more than once in any five consecutive Washington state coastal crab seasons, unless a request is made by the license holder during a Washington state coastal crab season for an emergency change in vessel designation. If such an emergency request is made, the director may allow a temporary change in designation to another vessel, if the hull length of the other vessel does not exceed by more than ten feet the hull length of the currently designated vessel.

       (2) For the purposes of this section, "hull length" means the length of a vessel's hull as shown by United States coast guard documentation or marine survey, or for vessels that do not require United States coast guard documentation, by manufacturer's specifications or marine survey.

       Sec. 8. RCW 75.28.044 and 1993 sp.s. c 17 s 45 are each amended to read as follows:

       This section applies to all commercial fishery licenses, delivery licenses, and charter licenses, except for emergency salmon delivery licenses.

       (1) The holder of a license subject to this section may substitute the vessel designated on the license or designate a vessel if none has previously been designated if the license holder:

       (a) Surrenders the previously issued license to the department;

       (b) Submits to the department an application that identifies the currently designated vessel, the vessel proposed to be designated, and any other information required by the department; and

       (c) Pays to the department a fee of thirty-five dollars.

       (2) Unless the license holder owns all vessels identified on the application described in subsection (1)(b) of this section or unless the vessel is designated on a Dungeness crab--coastal or a Dungeness crab--coastal class B fishery license, the following restrictions apply to changes in vessel designation:

       (a) The department shall change the vessel designation on the license no more than four times per calendar year.

       (b) The department shall change the vessel designation on the license no more than once in any seven-day period.

       Sec. 9. RCW 75.28.046 and 1993 c 340 s 9 are each amended to read as follows:

       This section applies to all commercial fishery licenses, delivery licenses, and charter licenses, except for whiting--Puget Sound fishery licenses and emergency salmon delivery licenses.

       (1) The license holder may engage in the activity authorized by a license subject to this section. With the exception of Dungeness crab--coastal fishery class B licensees licensed under section 2(3) of this act, the holder of a license subject to this section may also designate up to two alternate operators for the license. Dungeness crab--coastal fishery class B licensees may not designate alternate operators. A person designated as an alternate operator must possess an alternate operator license issued under section 23 of this act and RCW 75.28.048.

       (2) The fee to change the alternate operator designation is twenty-two dollars.

       NEW SECTION. Sec. 10. Except as provided under section 14 of this act, the director shall issue no new Dungeness crab--coastal fishery licenses after December 31, 1995. A person may renew an existing license only if the person held the license sought to be renewed during the previous year or acquired the license by transfer from someone who held it during the previous year, and if the person has not subsequently transferred the license to another person. Where the person failed to obtain the license during the previous year because of a license suspension, the person may qualify for a license by establishing that the person held such a license during the last year in which the license was not suspended.

       Sec. 11. RCW 75.28.130 and 1993 sp.s. c 17 s 40 are each amended to read as follows:

       (1) This section establishes commercial fishery licenses required for shellfish fisheries and the annual fees for those licenses. The director may issue a limited-entry commercial fishery license only to a person who meets the qualifications established in applicable governing sections of this title.


       Fishery                                 Annual Fee              Vessel         Limited

(Governing section(s))         Resident    Nonresident  Required?     Entry?

(a) Burrowing shrimp             $185            $295               Yes             No

(b) ((Crab pot                          $295            $520               Yes             No

(c) Crab pot—                           $130            $185               Yes             No

         Puget Sound

(d))) Crab ring net—                 $130            $185               Yes             No

         Non-Puget Sound

(((e))) (c) Crab ring net—         $130            $185               Yes             No

         Puget Sound

(((f))) (d) Dungeness crab—     $295            $520               Yes             Yes

         coastal (section 2

of this act)

(e) Dungeness crab—                $295            $520               Yes             Yes

         coastal, class B

(section 2 of this act)

(f) Dungeness crab—                $130            $185               Yes             Yes

         Puget Sound

         (RCW 75.30.130)

(g) Emerging commercial       $185            $295     Determined Determined

         fishery (RCW 75.30.220                                    by rule                 by rule

         and 75.28.740)

(h) Geoduck (RCW                   $ 0              $ 0               Yes             Yes

         75.30.280)

(i) Hardshell clam                   $530            $985               Yes             No

         mechanical harvester

         (RCW 75.28.280)

(j) Oyster reserve                    $130            $185               No              No

         (RCW 75.28.290)

(k) Razor clam                        $130            $185               No              No

(l) Sea cucumber dive             $130            $185               Yes             Yes

         (RCW 75.30.250)

(m) Sea urchin dive                $130            $185               Yes             Yes

         (RCW 75.30.210)

(n) Shellfish dive               (($525))     (($1045))              Yes             No

                                                $130            $185

(o) Shellfish pot                      $130            $185               Yes             No

(p) Shrimp pot—                       $325            $575               Yes             No

         Hood Canal

(q) Shrimp trawl—                    $240            $405               Yes             No

         Non-Puget Sound

(r) Shrimp trawl—                     $185            $295               Yes             No

         Puget Sound

(s) Squid                                 $185            $295               Yes             No


       (2) The director may by rule determine the species of shellfish that may be taken with the commercial fishery licenses established in this section, the gear that may be used with the licenses, and the areas or waters in which the licenses may be used. Where a fishery license has been established for a particular species, gear, geographical area, or combination thereof, a more general fishery license may not be used to take shellfish in that fishery.

       NEW SECTION. Sec. 12. A surcharge of fifty dollars shall be collected with each Dungeness crab--coastal fishery license issued under RCW 75.28.130 until June 30, 2000, and with each Dungeness crab--coastal class B fishery license issued under RCW 75.28.130 until December 31, 1997. Moneys collected under this section shall be placed in the Dungeness crab appeals account hereby created in the state treasury. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures. Expenditures from the account shall only be used for processing appeals related to the issuance of Dungeness crab--coastal fishery licenses.

       NEW SECTION. Sec. 13. (1) It is unlawful for Dungeness crab--coastal fishery licensees to take Dungeness crab in the waters of the exclusive economic zone westward of the states of Oregon or California and land crab taken in those waters into Washington state unless the licensee also holds the licenses, permits, or endorsements, required by Oregon or California to land crab into Oregon or California, respectively.

       (2) This section becomes effective only upon reciprocal legislation being enacted by both the states of Oregon and California. For purposes of this section, "exclusive economic zone" means that zone defined in the federal fishery conservation and management act (16 U.S.C. Sec. 1802) as of the effective date of this section or as of a subsequent date adopted by rule of the director.

       NEW SECTION. Sec. 14. If fewer than one hundred seventy-five persons are eligible for Dungeness crab--coastal fishery licenses, the director may accept applications for new licenses. Additional licenses issued shall be sufficient to maintain a maximum of one hundred seventy-five licenses in the Washington coastal crab fishery. If additional licenses are to be issued, the director shall adopt rules governing the notification, application, selection, and issuance procedures for new Dungeness crab--coastal fishery licenses, based on recommendations of the review board established under RCW 75.30.050.

       Sec. 15. RCW 75.30.050 and 1993 c 376 s 9 and 1993 c 340 s 27 are each reenacted and amended to read as follows:

       (1) The director shall appoint three-member advisory review boards to hear cases as provided in RCW 75.30.060. Members shall be from:

       (a) The salmon charter boat fishing industry in cases involving salmon charter licenses or angler permits;

       (b) The commercial salmon fishing industry in cases involving commercial salmon fishery licenses;

       (c) The commercial crab fishing industry in cases involving dungeness crab--Puget Sound fishery licenses;

       (d) The commercial herring fishery in cases involving herring fishery licenses;

       (e) The commercial Puget Sound whiting fishery in cases involving whiting--Puget Sound fishery licenses;

       (f) The commercial sea urchin fishery in cases involving sea urchin dive fishery licenses;

       (g) The commercial sea cucumber fishery in cases involving sea cucumber dive fishery licenses; ((and))

       (h) The commercial ocean pink shrimp industry (Pandalus jordani) in cases involving ocean pink shrimp delivery licenses; and

       (i) The commercial coastal crab industry in cases involving Dungeness crab--coastal and Dungeness crab--coastal class B fishery licenses.

       (2) Members shall serve at the discretion of the director and shall be reimbursed for travel expenses as provided in RCW 43.03.050, 43.03.060, and 43.03.065.

       NEW SECTION. Sec. 16. The director may reduce the landing requirements established under section 2 of this act upon the recommendation of an advisory review board established under RCW 75.30.050, but the director may not entirely waive the landing requirement. The advisory review board may recommend a reduction of the landing requirement in individual cases if in the board's judgment, extenuating circumstances prevented achievement of the landing requirement. The director shall adopt rules governing the operation of the advisory review board and defining "extenuating circumstances." In defining extenuating circumstances, special consideration shall be given to individuals who can provide evidence of lack of access to capital based on past discrimination due to race, creed, color, sex, national origin, or disability.

       NEW SECTION. Sec. 17. The department, with input from Dungeness crab--coastal fishery licensees and processors, shall prepare a resource plan to achieve even-flow harvesting and long-term stability of the coastal Dungeness crab resource. The plan may include pot limits, further reduction in the number of vessels, individual quotas, trip limits, area quotas, or other measures as determined by the department. The plan shall be submitted to the appropriate standing committees of the legislature by December 1, 1995.

       Sec. 18. RCW 75.28.125 and 1993 sp.s. c 17 s 39 and 1993 c 376 s 3 are each reenacted and amended to read as follows:

       (1) Except as provided in subsection (2) of this section, it is unlawful to deliver with a commercial fishing vessel food fish or shellfish taken in offshore waters to a port in the state without a ((nonsalmon)) nonlimited entry delivery license. As used in this section, "food fish" does not include salmon. As used in this section, "shellfish" does not include ocean pink shrimp or coastal crab. The annual license fee for a ((nonsalmon)) nonlimited entry delivery license is one hundred ten dollars for residents and two hundred dollars for nonresidents.

       (2) Holders of salmon troll fishery licenses issued under RCW 75.28.110, salmon delivery licenses issued under RCW 75.28.113, crab pot fishery licenses issued under RCW 75.28.130, food fish trawl--Non-Puget Sound fishery licenses issued under RCW 75.28.120, Dungeness crab--coastal fishery licenses, ocean pink shrimp delivery licenses, and shrimp trawl--Non-Puget Sound fishery licenses issued under RCW 75.28.130 may deliver food fish or shellfish taken in offshore waters without a ((nonsalmon)) nonlimited entry delivery license.

       (3) A ((nonsalmon)) nonlimited entry delivery license authorizes no taking of food fish or shellfish from state waters.

       (4) Coastal crab, as defined in section 2 of this act, taken in offshore waters with a commercial fishing vessel may be delivered to a port in this state without a nonlimited entry delivery license.

       Sec. 19. RCW 75.28.113 and 1993 sp.s. c 17 s 36 are each amended to read as follows:

       (1) It is unlawful to deliver salmon taken in offshore waters to a place or port in the state without a salmon delivery license from the director. The annual fee for a salmon delivery license is three hundred eighty dollars for residents and six hundred eighty-five dollars for nonresidents. The annual surcharge under RCW 75.50.100 is one hundred dollars for each license. Holders of ((nonsalmon)) nonlimited entry delivery licenses issued under RCW 75.28.125 may apply the ((nonsalmon)) nonlimited entry delivery license fee against the salmon delivery license fee.

       (2) Only a person who meets the qualifications established in RCW 75.30.120 may hold a salmon delivery license issued under this section.

       (3) A salmon delivery license authorizes no taking of salmon or other food fish or shellfish from the waters of the state.

       (4) If the director determines that the operation of a vessel under a salmon delivery license results in the depletion or destruction of the state's salmon resource or the delivery into this state of salmon products prohibited by law, the director may revoke the license under the procedures of chapter 34.05 RCW.

       NEW SECTION. Sec. 20. (1) Section 12 of this act is added to chapter 75.28 RCW.

       (2) Sections 2 through 7, 10, 13, 14, 16, and 17 of this act are each added to chapter 75.30 RCW.

       NEW SECTION. Sec. 21. 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. 22. Sections 1 through 16 and 18 through 21 of this act shall take effect January 1, 1995."


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

      On page 1, line 1 of the title, after "fishery;" strike the remainder of the title and insert "amending RCW 75.28.044, 75.28.046, 75.28.130, and 75.28.113; reenacting and amending RCW 75.30.050 and 75.28.125; adding a new section to chapter 75.28 RCW; adding new sections to chapter 75.30 RCW; creating a new section; and providing an effective date."


MOTION


      On motion of Senator Owen, the rules were suspended, Reengrossed Substitute House Bill No. 1471, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Loveland, Senator Skratek was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Substitute House Bill No. 1471, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Reengrossed Substitute House Bill No. 1471, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 6; Absent, 0; Excused, 2.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Smith, A., Smith, L., Snyder, West, Winsley and Wojahn - 41.

      Voting nay: Senators Anderson, Moore, Spanel, Sutherland, Talmadge and Williams - 6.

      Excused: Senators Skratek and Vognild - 2.

      REENGROSSED SUBSTITUTE HOUSE BILL NO. 1471, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2188, by Representatives Kremen, Chandler, Wineberry, Linville, Schoesler, Quall, Forner, Wood, Campbell and Rayburn

 

Revising provisions relating to international trade through Washington ports.


      The bill was read the second time.


MOTION


      On motion of Senator Sheldon, the rules were suspended, House Bill No. 2188 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2188.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2188 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams, Winsley and Wojahn - 48.

      Excused: Senator Vognild - 1.

      HOUSE BILL NO. 2188, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2641, by Representatives Thibaudeau, Chandler, Conway, Anderson, Heavey and Campbell

 

Revising provisions relating to collective bargaining for employees of the Washington state bar association.


      The bill was read the second time.


MOTION


      On motion of Senator Moore, the rules were suspended, House Bill No. 2641 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2641.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2641 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 17; Absent, 0; Excused, 1.

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

      Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Deccio, Hochstatter, McCaslin, McDonald, Morton, Moyer, Nelson, Newhouse, Oke, Schow, Sellar, Smith, L. and West - 17.

      Excused: Senator Vognild - 1.

      HOUSE BILL NO. 2641, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING



      HOUSE BILL NO. 2811, by Representatives Caver, Anderson, Wolfe, Reams, Ballard, Pruitt, Jones, Dunshee, Quall, Karahalios and Springer (by request of Department of General Administration)

 

Eliminating obsolete practices in state procurement.


      The bill was read the second time.


MOTION


      On motion of Senator Haugen, the rules were suspended, House Bill No. 2811 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Loveland, Senator Ludwig was excused.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2811.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2811 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

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

      Absent: Senator Hochstatter - 1.

      Excused: Senators Ludwig and Vognild - 2.

      HOUSE BILL NO. 2811, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2197, by House Committee on Corrections (originally sponsored by Representatives Ballasiotes, Appelwick, Wood, Kessler, Ballard, Karahalios, Reams, Wineberry, Foreman, Dyer, Jones, Casada, B. Thomas, Long, Campbell, Van Luven, Silver, Schmidt, Brumsickle, Brough, Edmondson, Cooke, J. Kohl, King, Flemming, Roland, Kremen, Sheldon, Chandler, Eide, Johanson, Springer and Mastin)

 

Providing notice of inmate release.


      The bill was read the second time.


MOTION


      On motion of Senator Adam Smith, the rules were suspended, Substitute House Bill No. 2197 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2197.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2197 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

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

      Absent: Senator Sutherland - 1.

      Excused: Senators Ludwig and Vognild - 2.

      SUBSTITUTE HOUSE BILL NO. 2197, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2147, by Representatives Carlson, Talcott, Wood, Chandler, Forner, Van Luven, Sehlin, Schoesler, B. Thomas and Cooke

 

Exempting institutions of higher education from certain expenditure requirements.


      The bill was read the second time.


MOTION


      On motion of Senator Bauer, the rules were suspended, House Bill No. 2147 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2147.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2147 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

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

      Absent: Senator Rinehart - 1.

      Excused: Senators Ludwig and Vognild - 2.

      HOUSE BILL NO. 2147, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Drew, Senator Rinehart was excused.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2180, by House Committee on Judiciary (originally sponsored by Representatives H. Myers, Ogden, Thibaudeau and J. Kohl)

 

Revising provisions relating to appointment of guardians ad litem.


      The bill was read the second time.


MOTION


      On motion of Senator Talmadge, the rules were suspended, Substitute House Bill No. 2180 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2180.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2180 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

      Excused: Senators Rinehart and Vognild - 2.

      SUBSTITUTE HOUSE BILL NO. 2180, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Drew, Senator Pelz was excused.


SECOND READING


      HOUSE BILL NO. 2583, by Representatives Veloria, Reams, Anderson, J. Kohl, Wood and Campbell

 

Concerning documents that are exempt from public inspection.


      The bill was read the second time.


MOTIONS


      On motion of Senator Adam Smith, the following Committee on Law and Justice amendments were considered simultaneously and were adopted:

      On page 2, line 5, after "advocacy," insert "or"

      On page 2, line 5, after "counseling" strike ", or other"

      On motion of Senator Adam Smith, the rules were suspended, House Bill No. 2583, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2583, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2583, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams, Winsley and Wojahn - 46.

      Excused: Senators Pelz, Rinehart and Vognild - 3.

      HOUSE BILL NO. 2583, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING



      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2644, by House Committee on Appropriations (originally sponsored by Representatives Sommers and Silver (by request of Department of Retirement Systems)

 

Making retirement contributions and payments.


      The bill was read the second time.


MOTION


      Senator Snyder moved that the following Committee on Ways and Means amendment be adopted:

      Strike everything after the enacting clause and insert the following:

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

       (1) Whenever employer or member contributions are not made at the time service is rendered, the state retirement system trust funds lose investment income which is a major source of pension funding. The department of retirement systems has broad authority to charge interest to compensate for the loss to the trust funds, subject only to explicit statutory provisions to the contrary.

       (2) The inherent authority of the department to recover all overpayments and unauthorized payments from the retirement trust funds, for the benefit of members and taxpayers, should be established clearly in statute.

       NEW SECTION. Sec. 2. A new section is added to chapter 41.50 RCW to read as follows:

       The department may charge interest, as determined by the director, on member or employer contributions owing to any of the retirement systems listed in RCW 41.50.030. The department's authority to charge interest shall extend to all optional and mandatory billings for contributions where member or employer contributions are paid other than immediately after service is rendered. Except as explicitly limited by statute, the director may delay the imposition of interest charges on late contributions under this section if the delay is necessary to implement required changes in the department's accounting and information systems.

       Sec. 3. RCW 41.50.130 and 1987 c 490 s 1 are each amended to read as follows:

       (1) The director may at any time correct errors appearing in the records of the retirement systems listed in RCW 41.50.030. Should any error in such records result in any member ((or)), beneficiary, or other person or entity receiving more or less than he or she would have been entitled to had the records been correct, the director, subject to the conditions set forth in this section, shall adjust the payment in such a manner that the benefit to which such member ((or)), beneficiary, or other person or entity was correctly entitled shall be paid in accordance with the following:

       (a) In the case of underpayments to a member or beneficiary, the retirement system shall correct all future payments from the point of error detection, and shall compute the additional payment due for the allowable prior period which shall be paid in a lump sum by the appropriate retirement system.

       (b) In the case of overpayments to a member or beneficiary, the retirement system shall adjust the payment in such a manner that the benefit to which such member or beneficiary was correctly entitled shall be reduced by an amount equal to the actuarial equivalent of the amount of overpayment. Alternatively the member shall have the option of repaying the overpayment in a lump sum within ninety days of notification and receive the proper benefit in the future. In the case of overpayments to a member ((or)), beneficiary, or other person or entity resulting from actual fraud on the part of the member ((or)), beneficiary, or other person or entity, the benefits shall be adjusted to reflect the full amount of such overpayment, plus interest at the ((maximum rate allowed under RCW 19.52.020(1) as it was in effect the first month the overpayment occurred)) rate of one percent per month on the outstanding balance.

       (c) In the case of overpayments to a person or entity other than a member or beneficiary, the overpayment shall constitute a debt from the person or entity to the department, recovery of which shall not be barred by laches or statute of limitations.

       (2) Except in the case of actual fraud, in the case of overpayments to a member or beneficiary, the benefits shall be adjusted to reflect only the amount of overpayments made within three years of discovery of the error, notwithstanding any provision to the contrary in chapter 4.16 RCW.

       (3)(a) The employer shall elicit on a written form from all new employees as to their having been retired from a retirement system listed in RCW 41.50.030.

       (b) In the case of overpayments which result from the failure of an employer to report properly to the department the employment of a retiree from information received in subparagraph (a), the employer shall, upon receipt of a billing from the department, pay into the appropriate retirement system the amount of the overpayment plus interest as determined by the director. However, except in the case of actual employer fraud, the overpayments charged to the employer under this subsection shall not exceed five thousand dollars for each year of overpayments received by a retiree. The retiree's benefits upon reretirement shall not be reduced because of such overpayment except as necessary to recapture contributions required for periods of employment.

       (c) The provision of this subsection regarding the reduction of retirees' benefits shall apply to recovery actions commenced on or after January 1, 1986, even though the overpayments resulting from retiree employment were discovered by the department prior to that date. The provisions of this subsection regarding the billing of employers for overpayments shall apply to overpayments made after January 1, 1986.

       (4) Except in the case of actual fraud, no monthly benefit shall be reduced by more than fifty percent of the member's or beneficiary's corrected benefit. Any overpayment not recovered due to the inability to actuarially reduce a member's benefit due to: (a) The provisions of this subsection; or (b) the fact that the retiree's monthly retirement allowance is less than the monthly payment required to effectuate an actuarial reduction, shall constitute a claim against the estate of a member, beneficiary, or other person or entity in receipt of an overpayment.

       (5) Except as provided in subsection (2) of this section, obligations of employers or members until paid to the department shall constitute a debt from the employer or member to the department, recovery of which shall not be barred by laches or statutes of limitation.

       NEW SECTION. Sec. 4. A new section is added to chapter 41.50 RCW to read as follows:

       (1) If a person receives a withdrawal of accumulated contributions from any of the retirement systems listed in RCW 41.50.030 in contravention of the restrictions on withdrawal for the particular system, the member shall no longer be entitled to credit for the period of service represented by the withdrawn contributions. The erroneous withdrawal shall be treated as an authorized withdrawal, subject to all conditions imposed by the member's system for restoration of withdrawn contributions. Failure to restore the contributions within the time permitted by the system shall constitute a waiver by the member of any right to receive a retirement allowance based upon the period of service represented by the withdrawn contributions.

       (2) All erroneous withdrawals occurring prior to the effective date of this section shall be subject to the provisions of this section. The deadline for restoring the prior erroneous withdrawals shall be five years from the effective date of this section for members who are currently active members of a system.

       Sec. 5. RCW 41.32.500 and 1991 c 35 s 57 are each amended to read as follows:

       (1) Membership in the retirement system is terminated when a member retires for service or disability, dies, or withdraws ((the)) his or her accumulated contributions ((or does not establish service credit with the retirement system for five consecutive years; however, a member may retain membership in the teachers' retirement system by leaving the accumulated contributions in the teachers' retirement fund under one of the following conditions:

       (a) If he or she is eligible for retirement;

       (b) If he or she is a member of another public retirement system in the state of Washington by reason of change in employment and has arranged to have membership extended during the period of such employment;

       (c) If he or she is not eligible for retirement but has established five or more years of Washington membership service credit.))

       The prior service certificate becomes void when a member dies((,)) or withdraws the accumulated contributions ((or does not establish service credit with the retirement system for five consecutive years)), and any prior administrative interpretation of the board of trustees, consistent with this section, is hereby ratified, affirmed and approved.

       (2) ((Any member, except an elected official, who reentered service and who failed to restore withdrawn contributions, shall now have from April 4, 1986, through June 30, 1987, to restore the contributions, with interest as determined by the director.

       (3))) Within the ninety days following the employee's resumption of employment, the employer shall notify the department of the resumption and the department shall then return to the employer a statement of the potential service credit to be restored, the amount of funds required for restoration, and the date when the restoration must be accomplished. The employee shall be given a copy of the statement and shall sign a copy of the statement which signed copy shall be placed in the employee's personnel file.

       Sec. 6. RCW 41.32.510 and 1982 1st ex.s. c 52 s 15 are each amended to read as follows:

       Should a member cease to be employed by an employer and request upon a form provided by the department a refund of the member's accumulated contributions with interest, this amount shall be paid to the individual less any withdrawal fee which may be assessed by the director which shall be deposited in the department of retirement systems expense fund. The amount withdrawn, together with interest as determined by the director must be paid if the member desires to reestablish the former service credits. ((Termination of employment with one employer for the specific purpose of accepting employment with another employer or termination with one employer and reemployment with the same employer, whether for the same school year or for the ensuing school year, shall not qualify a member for a refund of the member's accumulated contributions. A member who files an application for a refund of the member's accumulated contributions and subsequently enters into a contract for or resumes public school employment before a refund payment has been made shall not be eligible for such payment.)) A member who files a request for a refund and subsequently enters into employment with an employer prior to the refund being made shall not be eligible for a refund. For purposes of this section, a written or oral employment agreement shall be considered entering into employment.

       Sec. 7. RCW 41.40.280 and 1991 c 35 s 86 are each amended to read as follows:

       The department may, in its discretion, withhold payment of all or part of a member's contributions for not more than six months after a member has ceased to be an employee. ((Termination of employment with one employer for the purpose of accepting employment with another employer or termination with one employer and reemployment with the same employer within a period of thirty days shall not qualify a member for a refund of his or her accumulated contributions. In addition, a member who files an application for a refund of his or her accumulated contributions and subsequently becomes employed in an eligible position before the expiration of thirty days or before a refund payment has been made, shall not be eligible for the refund payment.)) A member who files a request for a refund and subsequently enters into employment with an employer prior to the refund being made shall not be eligible for a refund. For purposes of this section, a written or oral employment agreement shall be considered entering into employment.

       Sec. 8. RCW 41.40.010 and 1993 c 95 s 8 are each amended to read as follows:

       As used in this chapter, unless a different meaning is plainly required by the context:

       (1) "Retirement system" means the public employees' retirement system provided for in this chapter.

       (2) "Department" means the department of retirement systems created in chapter 41.50 RCW.

       (3) "State treasurer" means the treasurer of the state of Washington.

       (4)(a) "Employer" for plan I members, means every branch, department, agency, commission, board, and office of the state, any political subdivision or association of political subdivisions of the state admitted into the retirement system, and legal entities authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW as now or hereafter amended; and the term shall also include any labor guild, association, or organization the membership of a local lodge or division of which is comprised of at least forty percent employees of an employer (other than such labor guild, association, or organization) within this chapter. The term may also include any city of the first class that has its own retirement system.

       (b) "Employer" for plan II members, means every branch, department, agency, commission, board, and office of the state, and any political subdivision and municipal corporation of the state admitted into the retirement system, including public agencies created pursuant to RCW 35.63.070, 36.70.060, and 39.34.030.

       (5) "Member" means any employee included in the membership of the retirement system, as provided for in RCW 41.40.023.

       (6) "Original member" of this retirement system means:

       (a) Any person who became a member of the system prior to April 1, 1949;

       (b) Any person who becomes a member through the admission of an employer into the retirement system on and after April 1, 1949, and prior to April 1, 1951;

       (c) Any person who first becomes a member by securing employment with an employer prior to April 1, 1951, provided the member has rendered at least one or more years of service to any employer prior to October 1, 1947;

       (d) Any person who first becomes a member through the admission of an employer into the retirement system on or after April 1, 1951, provided, such person has been in the regular employ of the employer for at least six months of the twelve-month period preceding the said admission date;

       (e) Any member who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement becomes entitled to be credited with ten years or more of membership service except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member;

       (f) Any member who has been a contributor under the system for two or more years and who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement has rendered five or more years of service for the state or any political subdivision prior to the time of the admission of the employer into the system; except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member.

       (7) "New member" means a person who becomes a member on or after April 1, 1949, except as otherwise provided in this section.

       (8)(a) "Compensation earnable" for plan I members, means salaries or wages earned during a payroll period for personal services and where the compensation is not all paid in money, maintenance compensation shall be included upon the basis of the schedules established by the member's employer((: PROVIDED, That)). Compensation that a member receives for being in standby status is also compensation earnable, subject to the conditions of this subsection. A member is in standby status when not being paid for time actually worked and only when both of the following conditions exist: (i) The member is required to be present at, or in the immediate vicinity of, a specified location; and (ii) the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise. Standby compensation is regular salary for the purposes of RCW 41.50.150(2). Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable and the individual shall receive the equivalent service credit((: PROVIDED FURTHER, That)). If a leave of absence is taken by an individual for the purpose of serving in the state legislature, the salary which would have been received for the position from which the leave of absence was taken, shall be considered as compensation earnable if the employee's contribution is paid by the employee and the employer's contribution is paid by the employer or employee.

       (b) "Compensation earnable" for plan II members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude nonmoney maintenance compensation and lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay((: PROVIDED, That)). Compensation that a member receives for being in standby status is also compensation earnable, subject to the conditions of this subsection. A member is in standby status when not being paid for time actually worked and only when both of the following conditions exist: (i) The member is required to be present at, or in the immediate vicinity of, a specified location; and (ii) the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise. Standby compensation is regular salary for the purposes of RCW 41.50.150(2). Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable to the extent provided above, and the individual shall receive the equivalent service credit((: PROVIDED FURTHER, That)). In any year in which a member serves in the legislature, the member shall have the option of having such member's compensation earnable be the greater of:

       (((i))) (A) The compensation earnable the member would have received had such member not served in the legislature; or

       (((ii))) (B) Such member's actual compensation earnable received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under subparagraph (i) of this subsection is greater than compensation earnable under subparagraph (ii) of this subsection shall be paid by the member for both member and employer contributions.

       (9)(a) "Service" for plan I members, except as provided in RCW 41.40.088, means periods of employment in an eligible position or positions for one or more employers rendered to any employer for which compensation is paid, and includes time spent in office as an elected or appointed official of an employer. Compensation earnable earned in full time work for seventy hours or more in any given calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service except as provided in RCW 41.40.088. Only service credit months and one-quarter service credit months shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter. Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits. Time spent in standby status, whether compensated or not, is not service.

       Service by a state employee officially assigned by the state on a temporary basis to assist another public agency, shall be considered as service as a state employee: PROVIDED, That service to any other public agency shall not be considered service as a state employee if such service has been used to establish benefits in any other public retirement system: PROVIDED FURTHER, That an individual shall receive no more than a total of twelve service credit months of service during any calendar year: PROVIDED FURTHER, That where an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for seventy or more hours is rendered.

       (b) "Service" for plan II members, means periods of employment by a member in an eligible position or positions for one or more employers for which compensation earnable is paid. Compensation earnable earned for ninety or more hours in any calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for at least seventy hours but less than ninety hours in any calendar month shall constitute one-half service credit month of service. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service. Time spent in standby status, whether compensated or not, is not service.

       Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits.

       Service in any state elective position shall be deemed to be full time service, except that persons serving in state elective positions who are members of the teachers' retirement system or law enforcement officers' and fire fighters' retirement system at the time of election or appointment to such position may elect to continue membership in the teachers' retirement system or law enforcement officers' and fire fighters' retirement system.

       A member shall receive a total of not more than twelve service credit months of service for such calendar year: PROVIDED, That when an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for ninety or more hours is rendered.

       (10) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

       (11) "Service credit month" means a month or an accumulation of months of service credit which is equal to one.

       (12) "Prior service" means all service of an original member rendered to any employer prior to October 1, 1947.

       (13) "Membership service" means:

       (a) All service rendered, as a member, after October 1, 1947;

       (b) All service after October 1, 1947, to any employer prior to the time of its admission into the retirement system: PROVIDED, That an amount equal to the employer and employee contributions which would have been paid to the retirement system on account of such service shall have been paid to the retirement system with interest (as computed by the department) on the employee's portion prior to retirement of such person, by the employee or his employer, except as qualified by RCW 41.40.023: PROVIDED FURTHER, That employer contributions plus employee contributions with interest submitted by the employee under this subsection shall be placed in the employee's individual account in the employees' savings fund and be treated as any other contribution made by the employee, with the exception that the contributions submitted by the employee in payment of the employer's obligation, together with the interest the director may apply to the employer's contribution, shall be excluded from the calculation of the member's annuity in the event the member selects a benefit with an annuity option;

       (c) Service not to exceed six consecutive months of probationary service rendered after April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of the total amount of the employer's contribution to the retirement fund which would have been required under the law in effect when such probationary service was rendered if the member had been a member during such period, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member;

       (d) Service not to exceed six consecutive months of probationary service, rendered after October 1, 1947, and before April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of five percent of such member's salary during said period of probationary service, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member.

       (14)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance, pension or other benefit provided by this chapter.

       (b) "Beneficiary" for plan II members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

       (15) "Regular interest" means such rate as the director may determine.

       (16) "Accumulated contributions" means the sum of all contributions standing to the credit of a member in the member's individual account together with the regular interest thereon.

       (17)(a) "Average final compensation" for plan I members, means the annual average of the greatest compensation earnable by a member during any consecutive two year period of service credit months for which service credit is allowed; or if the member has less than two years of service credit months then the annual average compensation earnable during the total years of service for which service credit is allowed.

       (b) "Average final compensation" for plan II members, means the member's average compensation earnable of the highest consecutive sixty months of service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.40.710(2).

       (18) "Final compensation" means the annual rate of compensation earnable by a member at the time of termination of employment.

       (19) "Annuity" means payments for life derived from accumulated contributions of a member. All annuities shall be paid in monthly installments.

       (20) "Pension" means payments for life derived from contributions made by the employer. All pensions shall be paid in monthly installments.

       (21) "Retirement allowance" means the sum of the annuity and the pension.

       (22) "Employee" means any person who may become eligible for membership under this chapter, as set forth in RCW 41.40.023.

       (23) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality and other tables as may be adopted by the director.

       (24) "Retirement" means withdrawal from active service with a retirement allowance as provided by this chapter.

       (25) "Eligible position" means:

       (a) Any position that, as defined by the employer, normally requires five or more months of service a year for which regular compensation for at least seventy hours is earned by the occupant thereof. For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position;

       (b) Any position occupied by an elected official or person appointed directly by the governor for which compensation is paid.

       (26) "Ineligible position" means any position which does not conform with the requirements set forth in subsection (25) of this section.

       (27) "Leave of absence" means the period of time a member is authorized by the employer to be absent from service without being separated from membership.

       (28) "Totally incapacitated for duty" means total inability to perform the duties of a member's employment or office or any other work for which the member is qualified by training or experience.

       (29) "Retiree" means any member in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

       (30) "Director" means the director of the department.

       (31) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

       (32) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

       (33) "Plan I" means the public employees' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

       (34) "Plan II" means the public employees' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

       NEW SECTION. Sec. 9. (1) Notwithstanding RCW 41.50.130, the department is not required to correct, nor to cause any employer to correct the reporting error described in subsection (2) of this section.

       (2) Standby pay and other similar forms of compensation that are not pay for time worked were not salary or wages for personal services within the meaning of RCW 41.40.010(8). Contrary to RCW 41.40.010(8), some employers have been reporting standby pay to the department as compensation earnable. To avoid unduly impacting the retirement allowances of persons who have retired on or before the effective date of this act, the department is not required to correct, nor cause to be corrected, any misreporting of amounts identified as standby pay through the effective date of this act. Any erroneous reporting of amounts identified as standby pay to the department on or after the effective date of this act shall be corrected as an error under RCW 41.50.130.

       (3) The forgiveness of past misreporting under subsection (2) of this section constitutes a benefit enhancement for those individuals for whom amounts received as standby pay were misreported to the department. Prior to the effective date of this act no retirement system member had any right, contractual or otherwise, to have amounts identified as standby pay included as compensation earnable.

       Sec. 10. 1990 c 274 s 18 (uncodified) is amended to read as follows:

       (1) The 1990 amendments to RCW 41.32.010(27)(b) and 41.40.450 are intended by the legislature to effect administrative, rather than substantive, changes to the affected retirement plan. The legislature therefore reserves the right to revoke or amend the 1990 amendments to RCW 41.32.010(27)(b) and 41.40.450. No member is entitled to have his or her service credit calculated under the 1990 amendments to RCW 41.32.010(27)(b) and 41.40.450 as a matter of contractual right.

       (2) The department's retroactive application of the changes made in RCW 41.32.010(27)(b) to all service rendered between October 1, 1977, and August 31, 1990, is consistent with the legislative intent of the 1990 changes to RCW 41.32.010(27)(b)."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the Committee on Ways and Means striking amendment to Engrossed Substitute House Bill No. 2644.

      The motion by Senator Snyder carried and the Committee on Ways and Means striking amendment was adopted.


MOTIONS


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

      On page 1, line 2 of the title, after "overpayments;" strike the remainder of the title and insert "amending RCW 41.50.130, 41.32.500, 41.32.510, 41.40.280, and 41.40.010; amending 1990 c 274 s 18 (uncodified); adding new sections to chapter 41.50 RCW; and creating new sections."

      On motion of Senator Talmadge, the rules were suspended, Engrossed Substitute House Bill No. 2644, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2644, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2644, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

      Excused: Senators Pelz and Rinehart - 2.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2644, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Drew, Senator Adam Smith was excused.


STATEMENT FOR THE JOURNAL


      Due to work on the anti-violence bill, I missed the vote on the following measures: Engrossed Substitute House Bill No. 2224, Substitute House Bill No. 2456, Engrossed Substitute House Bill No. 2401, as amended by the Senate, and House Bill No. 2157.

      I would have voted 'yes' on all the measures.

SENATOR ADAM SMITH, 33rd District


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2224, by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Zellinsky, Forner and Cothern) (by request of Department of Licensing)

 

Regulating licensing of motor vehicles and vessels.


      The bill was read the second time.


MOTION


      On motion of Senator Vognild, the rules were suspended, Engrossed Substitute House Bill No. 2224 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2224.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2224 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 1; Absent, 2; Excused, 2.

      Voting yea: Senators Amondson, Bauer, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

      Voting nay: Senator Anderson - 1.

      Absent: Senators Bluechel and Hargrove - 2.

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

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2224, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2456, by House Committee on Revenue (originally sponsored by Representatives Valle, Silver, Morris, Talcott, Wolfe, Romero and Van Luven)

 

Eliminating references to reclassified reforestation lands.


      The bill was read the second time.


MOTION


      On motion of Senator Owen, the rules were suspended, Substitute House Bill No. 2456 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2456.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2456 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 46.

      Absent: Senator Franklin - 1.

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

      SUBSTITUTE HOUSE BILL NO. 2456, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2401, by House Committee on Environmental Affairs (originally sponsored by Representatives Linville, Horn, Rust, Quall, L. Johnson, Foreman, Wood and J. Kohl)

 

Disposing of residential sharps waste.


      The bill was read the second time.


MOTIONS


      Senator Fraser moved that the following Committee on Ecology and Parks amendment be adopted:

      Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature finds that the improper disposal and labeling of sharps waste from residences poses a potential health risk and perceived threat to the waste generators, public, and workers in the waste and recycling industry. The legislature further finds that a uniform method for handling sharps waste generated at residences will reduce confusion and injuries, and enhance public and waste worker confidence.

       It is the purpose and intent of this act that residential generated sharps waste be contained in easily identified containers and separated from the regular solid waste stream to ensure worker safety and promote proper disposal of these wastes in a manner that is environmentally safe and economically sound.

       Sec. 2. RCW 70.95K.010 and 1992 c 14 s 2 are each amended to read as follows:

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

       (1) "Biomedical waste" means, and is limited to, the following types of waste:

       (a) "Animal waste" is waste animal carcasses, body parts, and bedding of animals that are known to be infected with, or that have been inoculated with, human pathogenic microorganisms infectious to humans.

       (b) "Biosafety level 4 disease waste" is waste contaminated with blood, excretions, exudates, or secretions from humans or animals who are isolated to protect others from highly communicable infectious diseases that are identified as pathogenic organisms assigned to biosafety level 4 by the centers for disease control, national institute of health, biosafety in microbiological and biomedical laboratories, current edition.

       (c) "Cultures and stocks" are wastes infectious to humans and includes specimen cultures, cultures and stocks of etiologic agents, wastes from production of biologicals and serums, discarded live and attenuated vaccines, and laboratory waste that has come into contact with cultures and stocks of etiologic agents or blood specimens. Such waste includes but is not limited to culture dishes, blood specimen tubes, and devices used to transfer, inoculate, and mix cultures.

       (d) "Human blood and blood products" is discarded waste human blood and blood components, and materials containing free-flowing blood and blood products.

       (e) "Pathological waste" is waste human source biopsy materials, tissues, and anatomical parts that emanate from surgery, obstetrical procedures, and autopsy. "Pathological waste" does not include teeth, human corpses, remains, and anatomical parts that are intended for interment or cremation.

       (f) "Sharps waste" is all hypodermic needles, syringes with needles attached, IV tubing with needles attached, scalpel blades, and lancets that have been removed from the original sterile package.

       (2) "Local government" means city, town, or county.

       (3) "Local health department" means the city, county, city-county, or district public health department.

       (4) "Person" means an individual, firm, corporation, association, partnership, consortium, joint venture, commercial entity, state government agency, or local government.

       (5) "Treatment" means incineration, sterilization, or other method, technique, or process that changes the character or composition of a biomedical waste so as to minimize the risk of transmitting an infectious disease.

       (6) "Residential sharps waste" has the same meaning as "sharps waste" in subsection (1) of this section except that the sharps waste is generated and prepared for disposal at a residence, apartment, dwelling, or other noncommercial habitat.

       (7) "Sharps waste container" means a leak-proof, rigid, puncture-resistant red container that is taped closed or tightly lidded to prevent the loss of the residential sharps waste.

       (8) "Mail programs" means those programs that provide sharps users with a multiple barrier protection kit for the placement of a sharps container and subsequent mailing of the wastes to an approved disposal facility.

       (9) "Pharmacy return programs" means those programs where sharps containers are returned by the user to designated return sites located at a pharmacy to be transported by a biomedical or solid waste collection company approved by the utilities and transportation commission.

       (10) "Drop-off programs" means those program sites designated by the solid waste planning jurisdiction where sharps users may dispose of their sharps containers.

       (11) "Source separation" has the same meaning as in RCW 70.95.030.

       (12) "Unprotected sharps" means residential sharps waste that are not disposed of in a sharps waste container.

       NEW SECTION. Sec. 3. A new section is added to chapter 70.95K RCW to read as follows:

       It is a class 3 infraction under chapter 7.80 RCW to intentionally place unprotected sharps or a sharps waste container into: (1) Recycling containers provided by a city, county, or solid waste collection company, or any other recycling collection site unless that site is specifically designated by a local health jurisdiction as a drop-off site for sharps waste containers; or (2) cans, carts, drop boxes, or other containers in which refuse, trash, or solid waste has been placed for collection if a source separated collection service is provided for residential sharps waste. Local health departments shall enforce this penalty provision.

       It is not a violation of this section to place a sharps waste container into a household refuse receptacle if the utilities and transportation commission determines that such placement is necessary to reduce the potential for theft of the sharps waste container.

       NEW SECTION. Sec. 4. A new section is added to chapter 70.95K RCW to read as follows:

       (1) A public or private provider of solid waste collection service may provide a program to collect source separated residential sharps waste containers in conjunction with regular collection services.

       (2) A company collecting source separated residential sharps waste containers shall notify the public, in writing, on the availability of this service. Notice shall occur at least forty-five days prior to the provision of this service and shall include the following information: (a) How to properly dispose of residential sharps waste; (b) how to obtain sharps waste containers; (c) the cost of the program; (d) options to home collection of sharps waste; and (e) the legal requirements of residential sharps waste disposal.

       (3) A company under the jurisdiction of the utilities and transportation commission may provide the service authorized under subsection (1) of this section only under tariff.

       The commission may require companies collecting sharps waste containers to implement practices that will protect the containers from theft.

       NEW SECTION. Sec. 5. A new section is added to chapter 70.95 RCW to read as follows:

       (1) A solid waste planning jurisdiction may designate sharps waste container drop-off sites.

       (2) A pharmacy return program shall not be considered a solid waste handling facility and shall not be required to obtain a solid waste permit. A pharmacy return program is required to register, at no cost, with the department. To facilitate designation of sharps waste drop-off sites, the department shall share the name and location of registered pharmacy return programs with jurisdictional health departments and local solid waste management officials.

       (3) A public or private provider of solid waste collection service may provide a program to collect source separated residential sharps waste containers as provided in chapter 70.95K RCW.

       (4) For the purpose of this section, "sharps waste", "sharps waste container", and "pharmacy return program" shall have the same meanings as provided in RCW 70.95K.010.

       NEW SECTION. Sec. 6. Section 3 of this act shall take effect July 1, 1995."


      Senator Franklin moved that the following amendments to the Committee on Ecology and Parks striking amendment be considered simultaneously and be adopted:

      On page 3, line 14 of the committee amendment, strike "It is a class 3 infraction under chapter 7.80 RCW to" and insert "A person shall not"

      On page 3, line 15 of the committee amendment, after "into:" strike "(1)" and insert "(a)"

      On page 3, line 18 of the committee amendment, after "health" strike "jurisdiction" and insert "department"

      On page 3, line 19 of the committee amendment, after "or" strike "(2)" and insert "(b)"

      On page 3, line 22 of the committee amendment, after "waste." strike "Local health departments shall enforce this penalty provision." and insert "(2) Local health departments shall enforce this section, primarily through an educational approach regarding proper disposal of residential sharps. On the first and second violation, the health department shall provide a warning to the person that includes information on proper disposal of residential sharps. A subsequent violation shall be a class 3 infraction under chapter 7.80 RCW."

      On page 3, line 24 of the committee amendment, insert "(3)"

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendments by Senator Franklin on page 3, lines 14, 15, 18, 19, 22 and 24, to the Committee on Ecology and Parks striking amendment to Engrossed Substitute House Bill No. 2401.

      The motion by Senator Franklin carried and the amendments to the Committee on Ecology and Parks striking amendment were adopted.

      The President declared the question before the Senate to be the adoption of the Committee on Ecology and Parks striking amendment, as amended, to Engrossed Substitute House Bill No. 2401.

      The motion by Senator Fraser carried and the Committee on Ecology and Parks striking amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 2 of the title, after "waste;" strike the remainder of the title and insert "amending RCW 70.95K.010; adding new sections to chapter 70.95K RCW; adding a new section to chapter 70.95 RCW; creating a new section; prescribing penalties; and providing an effective date."

      On motion of Senator Fraser, the rules were suspended, Engrossed Substitute House Bill No. 2401, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2401, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2401, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

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

      Voting nay: Senator Ludwig - 1.

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

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2401, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      HOUSE BILL NO. 2157, by Representatives King and Orr (by request of Department of Wildlife)

 

Repealing the termination dates for provisions relating to migratory waterfowl.


      The bill was read the second time.


MOTION


      On motion of Senator Owen, the rules were suspended, House Bill No. 2157 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2157.


ROLL CALL


      The Secretary called the roll on the final passage of House Bill No. 2157 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

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

      HOUSE BILL NO. 2157, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      ENGROSSED HOUSE BILL NO. 2190, by Representatives Ogden and H. Myers (by request of Department of Community Development)

 

Modifying limitations of housing-related capital bond proceeds.


      The bill was read the second time.


MOTIONS


      On motion of Senator Prentice, the following Committee on Labor and Commerce amendment was adopted:

      Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 43.185.050 and 1991 c 356 s 4 are each amended to read as follows:

       (1) The department shall use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located. At least thirty percent of these moneys used in any given funding cycle shall be for the benefit of projects located in rural areas of the state as defined by the department ((of community development)). If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state.

       (2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:

       (a) New construction, rehabilitation, or acquisition of low and very low-income housing units;

       (b) Rent subsidies;

       (c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;

       (d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;

       (e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;

       (f) Shelters and related services for the homeless;

       (g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;

       (h) Mortgage insurance guarantee or payments for eligible projects;

       (i) Down payment or closing cost assistance for eligible first-time home buyers;

       (j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing; and

       (k) Projects making housing more accessible to families with members who have disabilities.

       (3) Legislative appropriations from capital bond proceeds ((and moneys from repayment of loans from appropriations from capital bond proceeds)) may be used only for the costs of projects authorized under subsection (2) (a), (i), and (j) of this section, and not for the administrative costs of the department.

       (4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing assistance program.

       Sec. 2. RCW 43.185.060 and 1991 c 295 s 1 are each amended to read as follows:

       Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, regional support networks established under chapter 71.24 RCW, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or state-wide nonprofit housing assistance organizations.

       Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.

       Sec. 3. RCW 43.185A.030 and 1991 c 356 s 12 are each amended to read as follows:

       (1) Using moneys specifically appropriated for such purpose, the department shall finance in whole or in part projects that will provide housing for low-income households.

       (2) Activities eligible for assistance include, but are not limited to:

       (a) New construction, rehabilitation, or acquisition of housing for low-income households;

       (b) Rent subsidies in new construction or rehabilitated multifamily units;

       (c) Down payment or closing costs assistance for first-time home buyers;

       (d) Mortgage subsidies for new construction or rehabilitation of eligible multifamily units; and

       (e) Mortgage insurance guarantee or payments for eligible projects.

       (3) Legislative appropriations from capital bond proceeds ((and moneys from repayment of loans from appropriations from capital bond proceeds)) may be used only for the costs of projects authorized under subsection (2)(a), (c), (d), and (e) of this section, and not for the administrative costs of the department.

       (4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the affordable housing program.

       Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.

       Sec. 4. RCW 43.185A.040 and 1991 c 356 s 13 are each amended to read as follows:

       Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or state-wide nonprofit housing assistance organizations.

       Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.

       NEW SECTION. Sec. 5. The senate labor and commerce committee shall conduct an interim study of successful models for the seamless delivery of social and health services to individuals and families living on the streets, in shelters, in transitional housing, and other publicly subsidized housing units in this state."


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

      On page 1, line 1 of the title, after "fund;" strike the remainder of the title and insert "amending RCW 43.185.050, 43.185.060, 43.185A.030, and 43.185A.040; and creating a new section."


MOTION


      On motion of Senator Prentice, the rules were suspended, Engrossed House Bill No. 2190, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2190, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed House Bill No. 2190, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 17; Absent, 0; Excused, 1.

      Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Loveland, Ludwig, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 31.

      Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Deccio, Erwin, Haugen, Hochstatter, McCaslin, McDonald, Morton, Nelson, Newhouse, Oke, Quigley, Schow and Sellar - 17.

      Excused: Senator Rinehart - 1.

      ENGROSSED HOUSE BILL NO. 2190, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SECOND SUBSTITUTE HOUSE BILL NO. 1457, by House Committee on Education (originally sponsored by Representatives Peery, Dorn, Brough, Brumsickle, Chappell, Leonard, Jones, Pruitt, Ogden, Basich, Rayburn, Karahalios, G. Cole, Springer, Locke, Eide, Mastin, Cothern, G. Fisher, Morris and H. Myers)

 

Raising the minimum dollar amount requiring competitive bidding by school districts.


      The bill was read the second time.


MOTIONS


      Senator Pelz moved that the following Committee on Education amendment be adopted:

      Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 28A.335.190 and 1990 c 33 s 362 are each amended to read as follows:

       (1) When, in the opinion of the board of directors of any school district, the cost of any furniture, supplies, equipment, building, improvements, or repairs, or other work or purchases, except books, will equal or exceed the sum of ((twenty)) fifty thousand dollars, complete plans and specifications for such work or purchases shall be prepared and notice by publication given in at least one newspaper of general circulation within the district, once each week for two consecutive weeks, of the intention to receive bids therefor and that specifications and other information may be examined at the office of the board or any other officially designated location: PROVIDED, That the board without giving such notice may make improvements or repairs to the property of the district through the shop and repair department of such district when the total of such improvements or repair does not exceed the sum of ((seventy-five hundred)) fifteen thousand dollars. The cost of any public work, improvement or repair for the purposes of this section shall be the aggregate of all amounts to be paid for labor, material, and equipment on one continuous or interrelated project where work is to be performed simultaneously or in close sequence. The bids shall be in writing and shall be opened and read in public on the date and in the place named in the notice and after being opened shall be filed for public inspection.

       (2) Every purchase of furniture, equipment or supplies, except books, the cost of which is estimated to be in excess of ((seventy-five hundred)) fifteen thousand dollars, shall be on a competitive basis. The board of directors shall establish a procedure for securing telephone and/or written quotations for such purchases. Whenever the estimated cost is from ((seventy-five hundred)) fifteen thousand dollars up to ((twenty)) fifty thousand dollars, the procedure shall require quotations from at least three different sources to be obtained in writing or by telephone, and recorded for public perusal. Whenever the estimated cost is in excess of ((twenty)) fifty thousand dollars, the public bidding process provided in subsection (1) of this section shall be followed.

       (3) Every building, improvement, repair or other public works project, the cost of which is estimated to be in excess of ((seventy-five hundred)) fifteen thousand dollars, shall be on a competitive bid process. All such projects estimated to be less than ((twenty)) fifty thousand dollars may be awarded to a contractor on the small works roster. The small works roster shall be comprised of all responsible contractors who have requested to be on the list. The board of directors shall establish a procedure for securing telephone and/or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsible bidder. Such procedure shall require that a good faith effort be made to request quotations from all contractors on the small works roster who have indicated the capability of performing the kind of public works being contracted. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. The small works roster shall be revised at least once each year by publishing notice of such opportunity in at least one newspaper of general circulation in the district. Responsible contractors shall be added to the list at any time they submit a written request. Whenever the estimated cost of a public works project is ((twenty)) fifty thousand dollars or more, the public bidding process provided in subsection (1) of this section shall be followed.

       (4) The contract for the work or purchase shall be awarded to the lowest responsible bidder as defined in RCW 43.19.1911 but the board may by resolution reject any and all bids and make further calls for bids in the same manner as the original call. On any work or purchase the board shall provide bidding information to any qualified bidder or the bidder's agent, requesting it in person.

       (5) In the event of any emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the board declaring the existence of such an emergency and reciting the facts constituting the same, the board may waive the requirements of this section with reference to any purchase or contract: PROVIDED, That an "emergency", for the purposes of this section, means a condition likely to result in immediate physical injury to persons or to property of the school district in the absence of prompt remedial action."


      On motion of Senator Pelz, the following amendments to the Committee on Education striking amendment were considered simultaneously and were adopted:

      On page 1, beginning on line 22 of the amendment, strike "((seventy-five hundred)) fifteen thousand dollars" and insert "((seventy-five hundred dollars)) (a) fifteen thousand dollars, for districts with fifteen thousand five hundred or more full-time equivalent students; and (b) for districts with fewer than fifteen thousand five hundred full-time equivalent students, fifteen thousand dollars if more than one craft or trade is involved with the school district improvement or repair, or ten thousand dollars if a single craft or trade is involved with the school district improvement or repair"

      On page 2, beginning on line 7 of the amendment, strike "((seventy-five hundred)) fifteen thousand dollars" and insert "((seventy-five hundred dollars)) (a) fifteen thousand dollars, for districts with fifteen thousand five hundred or more full-time equivalent students; and (b) for districts with fewer than fifteen thousand five hundred full-time equivalent students, fifteen thousand dollars if more than one craft or trade is involved with the school district improvement or repair, or ten thousand dollars if a single craft or trade is involved with the school district improvement or repair"

      The President declared the question before the Senate to be the adoption of the Committee on Education striking amendment, as amended, to Second Substitute House Bill No. 1457.

      The motion by Senator Pelz carried and the Committee on Education striking amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 1 of the title, after "bidding;" strike the remainder of the title and insert "and amending RCW 28A.335.190."

      On motion of Senator Pelz, the rules were suspended, Second Substitute House Bill No. 1457, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute House Bill No. 1457, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute House Bill No. 1457, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 33; Nays, 15; Absent, 0; Excused, 1.

      Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Loveland, Ludwig, McAuliffe, Moore, Moyer, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 33.

      Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Morton, Nelson, Newhouse, Roach, Schow and Smith, L. - 15.

      Excused: Senator Rinehart - 1.

      SECOND SUBSTITUTE HOUSE BILL NO. 1457, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Loveland, Senator Ludwig was excused.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2718, by House Committee on Revenue (originally sponsored by Representatives G. Fisher, Fuhrman, Foreman, Brown, Bray and Kremen)

 

Excepting utility-related real estate tax affidavits from certain verification requirements.


      The bill was read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Substitute House Bill No. 2718 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2718.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2718 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

      Excused: Senators Ludwig and Rinehart - 2.

      SUBSTITUTE HOUSE BILL NO. 2718, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 2270, by House Committee on Judiciary (originally sponsored by Representatives Johanson, Padden and Appelwick)

 

Revising provisions about probate and trust matters.


      The bill was read the second time.


MOTIONS


      On motion of Senator Adam Smith, the following Committee on Law and Justice amendment was adopted:

      Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 11.02.005 and 1993 c 73 s 1 are each amended to read as follows:

       When used in this title, unless otherwise required from the context:

       (1) "Personal representative" includes executor, administrator, special administrator, and guardian or limited guardian and special representative.

       (2) "Net estate" refers to the real and personal property of a decedent exclusive of homestead rights, exempt property, the family allowance and enforceable claims against, and debts of, the deceased or the estate.

       (3) "Representation" refers to a method of determining distribution in which the takers are in unequal degrees of kinship with respect to the intestate, and is accomplished as follows: After first determining who, of those entitled to share in the estate, are in the nearest degree of kinship, the estate is divided into equal shares, the number of shares being the sum of the number of persons who survive the intestate who are in the nearest degree of kinship and the number of persons in the same degree of kinship who died before the intestate but who left issue surviving the intestate; each share of a deceased person in the nearest degree shall be divided among those of the ((intestate's)) deceased person's issue who survive the intestate and have no ancestor then living who is in the line of relationship between them and the intestate, those more remote in degree taking together the share which their ancestor would have taken had he or she survived the intestate. Posthumous children are considered as living at the death of their parent.

       (4) "Issue" includes all the lawful lineal descendants of the ancestor and all lawfully adopted children.

       (5) "Degree of kinship" means the degree of kinship as computed according to the rules of the civil law; that is, by counting upward from the intestate to the nearest common ancestor and then downward to the relative, the degree of kinship being the sum of these two counts.

       (6) "Heirs" denotes those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the real and personal property of a decedent on the decedent's death intestate.

       (7) "Real estate" includes, except as otherwise specifically provided herein, all lands, tenements, and hereditaments, and all rights thereto, and all interest therein possessed and claimed in fee simple, or for the life of a third person.

       (8) "Will" means an instrument validly executed as required by RCW 11.12.020 ((and includes all codicils)).

       (9) "Codicil" means ((an instrument that is validly executed in the manner provided by this title for a will and that refers to an existing will for the purpose of altering or changing the same, and which need not be attached thereto)) a will that modifies or partially revokes an existing earlier will. A codicil need not refer to or be attached to the earlier will.

       (10) "Guardian" or "limited guardian" means a personal representative of the person or estate of an incompetent or disabled person as defined in RCW 11.88.010 and the term may be used in lieu of "personal representative" wherever required by context.

       (11) "Administrator" means a personal representative of the estate of a decedent and the term may be used in lieu of "personal representative" wherever required by context.

       (12) "Executor" means a personal representative of the estate of a decedent appointed by will and the term may be used in lieu of "personal representative" wherever required by context.

       (13) "Special administrator" means a personal representative of the estate of a decedent appointed for limited purposes and the term may be used in lieu of "personal representative" wherever required by context.

       (14) "Trustee" means an original, added, or successor trustee and includes the state, or any agency thereof, when it is acting as the trustee of a trust to which chapter 11.98 RCW applies.

       (15) "Nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under a written instrument or arrangement other than the person's will. "Nonprobate asset" includes, but is not limited to, a right or interest passing under a joint tenancy with right of survivorship, joint bank account with right of survivorship, payable on death or trust bank account or security, deed or conveyance if possession has been postponed until the death of the person, trust of which the person is grantor and that becomes effective or irrevocable only upon the person's death, community property agreement, individual retirement account or bond, or note or other contract the payment or performance of which is affected by the death of the person. "Nonprobate asset" does not include: A payable-on-death provision of a life insurance policy, annuity, or other similar contract, or of an employee benefit plan; a right or interest passing by descent and distribution under chapter 11.04 RCW; a right or interest if, before death, the person has irrevocably transferred the right or interest, the person has waived the power to transfer it or, in the case of contractual arrangement, the person has waived the unilateral right to rescind or modify the arrangement; or a right or interest held by the person solely in a fiduciary capacity.

       (16) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered on July 25, 1993.

       (((16))) Words that import the singular number may also be applied to the plural of persons and things.

       (((17))) Words importing the masculine gender only may be extended to females also.

       Sec. 2. RCW 11.07.010 and 1993 c 236 s 1 are each amended to read as follows:

       (1) This section applies to all nonprobate assets, wherever situated, held at the time of entry by a superior court of this state of a decree of dissolution of marriage or a declaration of invalidity.

       (2)(a) If a marriage is dissolved or invalidated, a provision made prior to that event that relates to the payment or transfer at death of the decedent's interest in a nonprobate asset in favor of or granting an interest or power to the decedent's former spouse is revoked. A provision affected by this section must be interpreted, and the nonprobate asset affected passes, as if the former spouse failed to survive the decedent, having died at the time of entry of the decree of dissolution or declaration of invalidity.

       (b) This subsection does not apply if and to the extent that:

       (i) The instrument governing disposition of the nonprobate asset expressly provides otherwise;

       (ii) The decree of dissolution or declaration of invalidity requires that the decedent maintain a nonprobate asset for the benefit of a former spouse or children of the marriage, payable on the decedent's death either outright or in trust, and other nonprobate assets of the decedent fulfilling such a requirement for the benefit of the former spouse or children of the marriage do not exist at the decedent's death; or

       (iii) If not for this subsection, the decedent could not have effected the revocation by unilateral action because of the terms of the decree or declaration, or for any other reason, immediately after the entry of the decree of dissolution or declaration of invalidity.

       (3)(a) A payor or other third party in possession or control of a nonprobate asset at the time of the decedent's death is not liable for making a payment or transferring an interest in a nonprobate asset to a decedent's former spouse whose interest in the nonprobate asset is revoked under this section, or for taking another action in reliance on the validity of the instrument governing disposition of the nonprobate asset, before the payor or other third party has actual knowledge of the dissolution or other invalidation of marriage. A payor or other third party is liable for a payment or transfer made or other action taken after the payor or other third party has actual knowledge of a revocation under this section.

       (b) This section does not require a payor or other third party to pay or transfer a nonprobate asset to a beneficiary designated in a governing instrument affected by the dissolution or other invalidation of marriage, or to another person claiming an interest in the nonprobate asset, if the payor or third party has actual knowledge of the existence of a dispute between the former spouse and the beneficiaries or other persons concerning rights of ownership of the nonprobate asset as a result of the application of this section among the former spouse and the beneficiaries or among other persons, or if the payor or third party is otherwise uncertain as to who is entitled to the nonprobate asset under this section. In such a case, the payor or third party may, without liability, notify in writing all beneficiaries or other persons claiming an interest in the nonprobate asset of either the existence of the dispute or its uncertainty as to who is entitled to payment or transfer of the nonprobate asset. The payor or third party may also, without liability, refuse to pay or transfer a nonprobate asset in such a circumstance to a beneficiary or other person claiming an interest until the time that either:

       (i) All beneficiaries and other interested persons claiming an interest have consented in writing to the payment or transfer; or

       (ii) The payment or transfer is authorized or directed by a court of proper jurisdiction.

       (c) Notwithstanding subsections (1) and (2) of this section and (a) and (b) of this subsection, a payor or other third party having actual knowledge of the existence of a dispute between beneficiaries or other persons concerning rights to a nonprobate asset as a result of the application of this section may condition the payment or transfer of the nonprobate asset on execution, in a form and with security acceptable to the payor or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset at the time of the decedent's death or the amount of an adverse claim, whichever is the lesser, or of a similar instrument to provide security to the payor or other third party, indemnifying the payor or other third party for any liability, loss, damage, costs, and expenses for and on account of payment or transfer of the nonprobate asset.

       (d) As used in this subsection, "actual knowledge" means, for a payor or other third party in possession or control of the nonprobate asset at or following the decedent's death, written notice to the payor or other third party, or to an officer of a payor or third party in the course of his or her employment, received after the decedent's death and within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge. The notice must identify the nonprobate asset with reasonable specificity. The notice also must be sufficient to inform the payor or other third party of the revocation of the provisions in favor of the decedent's spouse by reason of the dissolution or invalidation of marriage, or to inform the payor or third party of a dispute concerning rights to a nonprobate asset as a result of the application of this section. Receipt of the notice for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

       (4)(a) A person who purchases a nonprobate asset from a former spouse or other person, for value and without actual knowledge, or who receives from a former spouse or other person payment or transfer of a nonprobate asset without actual knowledge and in partial or full satisfaction of a legally enforceable obligation, is neither obligated under this section to return the payment, property, or benefit nor is liable under this section for the amount of the payment or the value of the nonprobate asset. However, a former spouse or other person who, with actual knowledge, not for value, or not in satisfaction of a legally enforceable obligation, receives payment or transfer of a nonprobate asset to which that person is not entitled under this section is obligated to return the payment or nonprobate asset, or is personally liable for the amount of the payment or value of the nonprobate asset, to the person who is entitled to it under this section.

       (b) As used in this subsection, "actual knowledge" means, for a person described in (a) of this subsection who purchases or receives a nonprobate asset from a former spouse or other person, personal knowledge or possession of documents relating to the revocation upon dissolution or invalidation of marriage of provisions relating to the payment or transfer at the decedent's death of the nonprobate asset, received within a time after the decedent's death and before the purchase or receipt that is sufficient to afford the person purchasing or receiving the nonprobate asset reasonable opportunity to act upon the knowledge. Receipt of the personal knowledge or possession of the documents for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

       (5) As used in this section, "nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under only the following written instruments or arrangements other than the decedent's will:

       (a) A payable-on-death provision of a life insurance policy, employee benefit plan, annuity or similar contract, or individual retirement account;

       (b) A payable-on-death, trust, or joint with right of survivorship bank account;

       (c) A trust of which the person is a grantor and that becomes effective or irrevocable only upon the person's death; or

       (d) Transfer on death beneficiary designations of a transfer on death or pay on death security, if such designations are authorized under Washington law.

       (6) This section is remedial in nature and applies as of July 25, 1993, to decrees of dissolution and declarations of invalidity entered after July 24, 1993, and this section applies as of the effective date of this act to decrees of dissolution and declarations of invalidity entered before July 25, 1993.

       Sec. 3. RCW 11.08.170 and 1990 c 225 s 1 are each amended to read as follows:

       Escheat property may be probated under the provisions of the probate laws of this state. Whenever such probate proceedings are instituted, whether by special administration or otherwise, the petitioner shall promptly notify the department of revenue in writing thereof on forms furnished by the department of revenue to the county clerks. Thereafter, the department of revenue shall be served with written notice at least twenty days prior to any hearing on proceedings involving the valuation or sale of property, on any petition for the allowance of fees, and on all interim reports, final accounts or petitions for the determination of heirship. Like notice shall be given of the presentation of any claims to the court for allowance. Failure to furnish such notice shall be deemed jurisdictional and any order of the court entered without such notice shall be void. The department of revenue may waive the provisions of this section in its discretion. The department shall be deemed to have waived its right to administer in such probate proceedings under RCW 11.28.120(((3))) (5) unless application for appointment of the director or the director's designee is made within forty days immediately following receipt of notice of institution of proceedings.

       NEW SECTION. Sec. 4. This chapter applies in all instances in which no other abatement scheme is expressly provided.

       NEW SECTION. Sec. 5. (1) Except as provided in subsection (2) of this section, property of a decedent abates, without preference as between real and personal property, in the following order:

       (a) Intestate property;

       (b) Residuary gifts;

       (c) General gifts;

       (d) Specific gifts.

       For purposes of abatement a demonstrative gift, defined as a general gift charged on any specific property or fund, is deemed a specific gift to the extent of the value of the property or fund on which it is charged, and a general gift to the extent of a failure or insufficiency of that property or fund. Abatement within each classification is in proportion to the amounts of property each of the beneficiaries would have received if full distribution of the property had been made in accordance with the terms of the will.

       (2) If the will expresses an order of abatement, or if the testamentary plan or the express or implied purpose of the devise would be defeated by the order of abatement stated in subsection (1) of this section, a gift abates as may be found necessary to give effect to the intention of the testator.

       (3) If the subject of a preferred gift is sold, diminished, or exhausted incident to administration, not including satisfaction of debts or liabilities according to their community or separate status under section 7 of this act, abatement must be achieved by appropriate adjustments in, or contribution from, other interests in the remaining assets.

       (4) To the extent that the whole of the community property is subject to abatement, the shares of the decedent and of the surviving spouse in the community property abate equally.

       (5) If required under section 8 of this act, nonprobate assets must abate with those disposed of under the will and passing by intestacy.

       NEW SECTION. Sec. 6. To the extent that a gift is to be satisfied out of a source that consists of both separate and community property, unless otherwise indicated in the will it is presumed to be a gift from separate and community property in proportion to their relative value in the property or fund from which the gift is to be satisfied.

       NEW SECTION. Sec. 7. (1) A community debt or liability is charged against the entire community property, with the surviving spouse's half and the decedent spouse's half charged equally.

       (2) A separate debt or liability is charged first against separate property, and if that is insufficient against the balance of decedent's half of community property remaining after community debts and liabilities are satisfied.

       (3) A community debt or liability that is also the separate debt or liability of the decedent is charged first against the whole of the community property and then against the decedent's separate property.

       (4) An expense of administration is charged against the separate property and the decedent's half of the community property in proportion to the relative value of the property, unless a different charging of expenses is shown to be appropriate under the circumstances including against the surviving spouse's share of the community property.

       (5) Property of a similar type, community or separate, is appropriated in accordance with the abatement priorities of section 5 of this act.

       (6) Property that is primarily chargeable for a debt or liability is exhausted, in accordance with the abatement priorities of section 5 of this act, before resort is had, also in accordance with section 5 of this act, to property that is secondarily chargeable.

       NEW SECTION. Sec. 8. (1) If abatement is necessary among takers of a nonprobate asset, the court shall adopt the abatement order and limitations set out in sections 5, 6, and 7 of this act, assigning categories in accordance with subsection (2) of this section.

       (2) A nonprobate transfer must be categorized for purposes of abatement, within the list of priorities set out in section 5(1) of this act, as follows:

       (a) All nonprobate forms of transfer under which an identifiable nonprobate asset passes to a beneficiary or beneficiaries on the event of the decedent's death, such as, but not limited to, joint tenancies and payable-on-death accounts, are categorized as specific bequests.

       (b) With respect to all other interests passing under nonprobate forms of transfer, each must be categorized in the manner that is most closely comparable to the nature of the transfer of that interest.

       (3) If and to the extent that a nonprobate asset is subject to the same obligations as are assets disposed of under the decedent's will, the nonprobate assets abate ratably with the probate assets, within the categories set out in subsection (2) of this section.

       (4) If the nonprobate instrument of transfer or the decedent's will expresses a different order of abatement, or if the decedent's overall dispositive plan or the express or implied purpose of the transfer would be defeated by the order of abatement stated in subsections (1) through (3) of this section, the nonprobate assets abate as may be found necessary to give effect to the intention of the decedent.

       NEW SECTION. Sec. 9. A new section is added to chapter 11.12 RCW to read as follows:

       (1) If a will fails to name or provide for a child of the decedent who is born or adopted by the decedent after the will's execution and who survives the decedent, referred to in this section as an "omitted child", the child must receive a portion of the decedent's estate as provided in subsection (3) of this section, unless it appears either from the will or from other clear and convincing evidence that the failure was intentional.

       (2) In determining whether an omitted child has been named or provided for, the following rules apply:

       (a) A child identified in a will by name is considered named whether identified as a child or in any other manner.

       (b) A reference in a will to a class described as the children, descendants, or issue of the decedent who are born after the execution of the will, or words of similar import, constitutes a naming of a person who falls within the class. A reference to another class, such as a decedent's heirs or family, does not constitute such a naming.

       (c) A nominal interest in an estate does not constitute a provision for a child receiving the interest.

       (3) The omitted child must receive an amount equal in value to that which the child would have received under RCW 11.04.015 if the decedent had died intestate, unless the court determines on the basis of clear and convincing evidence that a smaller share, including no share at all, is more in keeping with the decedent's intent. In making the determination, the court may consider, among other things, the various elements of the decedent's dispositive scheme, provisions for the omitted child outside the decedent's will, provisions for the decedent's other children under the will and otherwise, and provisions for the omitted child's other parent under the will and otherwise.

       (4) In satisfying a share provided by this section, the bequests made by the will abate as provided in chapter 11.-- RCW (sections 4 through 8 of this act).

       NEW SECTION. Sec. 10. A new section is added to chapter 11.12 RCW to read as follows:

       (1) If a will fails to name or provide for a spouse of the decedent whom the decedent marries after the will's execution and who survives the decedent, referred to in this section as an "omitted spouse", the spouse must receive a portion of the decedent's estate as provided in subsection (3) of this section, unless it appears either from the will or from other clear and convincing evidence that the failure was intentional.

       (2) In determining whether an omitted spouse has been named or provided for, the following rules apply:

       (a) A spouse identified in a will by name is considered named whether identified as a spouse or in any other manner.

       (b) A reference in a will to the decedent's future spouse or spouses, or words of similar import, constitutes a naming of a spouse whom the decedent later marries. A reference to another class such as the decedent's heirs or family does not constitute a naming of a spouse who falls within the class.

       (c) A nominal interest in an estate does not constitute a provision for a spouse receiving the interest.

       (3) The omitted spouse must receive an amount equal in value to that which the spouse would have received under RCW 11.04.015 if the decedent had died intestate, unless the court determines on the basis of clear and convincing evidence that a smaller share, including no share at all, is more in keeping with the decedent's intent. In making the determination the court may consider, among other things, the spouse's property interests under applicable community property or quasi-community property laws, the various elements of the decedent's dispositive scheme, and a marriage settlement or other provision and provisions for the omitted spouse outside the decedent's will.

       (4) In satisfying a share provided by this section, the bequests made by the will abate as provided in chapter 11.-- RCW (sections 4 through 8 of this act).

       NEW SECTION. Sec. 11. A new section is added to chapter 11.12 RCW to read as follows:

       (1) If, after making a will, the testator's marriage is dissolved or invalidated, all provisions in the will in favor of or granting any interest or power to the testator's former spouse are revoked, unless the will expressly provides otherwise. Provisions affected by this section must be interpreted, and property affected passes, as if the former spouse failed to survive the testator, having died at the time of entry of the decree of dissolution or declaration of invalidity. Provisions revoked by this section are revived by the testator's remarriage to the former spouse. Revocation of certain nonprobate transfers is provided under RCW 11.07.010.

       (2) This section is remedial in nature and applies to decrees of dissolution and declarations of invalidity entered before, on, or after the effective date of this act.

       Sec. 12. RCW 11.12.040 and 1965 c 145 s 11.12.040 are each amended to read as follows:

       (1) A will, or any part thereof, can be revoked:

       (((1))) (a) By a ((written)) subsequent will that revokes, or partially revokes, the prior will expressly or by inconsistency; or

       (((2))) (b) By being burnt, torn, canceled, obliterated, or destroyed, with the intent and for the purpose of revoking the same, by the testator ((himself)) or by another person in ((his)) the presence and by ((his)) the direction of the testator. If such act is done by any person other than the testator, the direction of the testator and the facts of such injury or destruction must be proved by two witnesses.

       (2) Revocation of a will in its entirety revokes its codicils, unless revocation of a codicil would be contrary to the testator's intent.

       Sec. 13. RCW 11.12.080 and 1965 c 145 s 11.12.080 are each amended to read as follows:

       (1) If, after making any will, the testator shall ((duly make and)) execute a ((second)) later will that wholly revokes the former will, the destruction, cancellation, or revocation of ((such second)) the later will shall not revive the ((first)) former will, unless it was the testator's intention to revive it.

       (2) Revocation of a codicil shall revive a prior will or part of a prior will that the codicil would have revoked had it remained in effect at the death of the testator, unless it was the testator's intention not to revive the prior will or part.

       (3) Evidence that revival was or was not intended includes, in addition to a writing by which the later will or codicil is revoked, the circumstances of the revocation or contemporary or subsequent declarations of the testator.

       Sec. 14. RCW 11.12.110 and 1965 c 145 s 11.12.110 are each amended to read as follows:

       Unless otherwise provided, when any ((estate shall be devised or bequeathed to any child, grandchild, or other relative of the testator, and such devisee or legatee shall die before the testator, having lineal descendants who survive the testator, such descendants shall take the estate, real and personal, as such devisee or legatee would have done in the case he had survived the testator; if such descendants are all in the same degree of kinship to the predeceased devisee or legatee)) property shall be given under a will, or under a trust of which the decedent is a grantor and which by its terms becomes irrevocable upon the grantor's death, to any issue of a grandparent of the decedent and that issue dies before the decedent leaving descendants who survive the decedent, those descendants shall take that property as the predeceased issue would have done if the predeceased issue had survived the decedent. If those descendants are all in the same degree of kinship to the predeceased issue they shall take equally((,)) or, if of unequal degree, then those of more remote degree shall take by representation with respect to ((such)) the predeceased ((devisee or legatee. A spouse is not a relative under the provisions of this section)) issue.

       Sec. 15. RCW 11.12.120 and 1974 ex.s. c 117 s 51 are each amended to read as follows:

       ((Whenever any person having died leaving)) (1) If a will ((which has been admitted to probate or established by an adjudication of testacy, shall by said will have given, devised or bequeathed unto any person, a legacy or a devise upon the condition that said person survive him, and not otherwise, such legacy or devise shall lapse and fall into the residue of said estate to be distributed according to the residuary clause, if there be one, of said will, and if there be none then according to the laws of descent, unless said legatee or devisee, as the case may be, or his heirs, personal representative, or someone in behalf of such legatee or devisee, shall appear before the court which is administering said estate within three years from and after the date the said will was admitted to probate or established by an adjudication of testacy, and prove to the satisfaction of the court that the said legatee or devisee, as the case may be, did in fact survive the testator)) makes a gift to a person on the condition that the person survive the testator and the person does not survive the testator, then, unless otherwise provided, the gift lapses and falls into the residue of the estate to be distributed under the residuary clause of the will, if any, but otherwise according to the laws of descent and distribution.

       (2) If the will gives the residue to two or more persons, the share of a person who does not survive the testator passes, unless otherwise provided, and subject to RCW 11.12.110, to the other person or persons receiving the residue, in proportion to the interest of each in the remaining part of the residue.

       (3) The personal representative of the testator, a person who would be affected by the lapse or distribution of a gift under this section, or a guardian ad litem or other representative appointed to represent the interests of a person so affected may petition the court for a determination under this section, and the petition must be heard under the procedures of chapter 11.96 RCW.

       Sec. 16. RCW 11.12.160 and 1965 c 145 s 11.12.160 are each amended to read as follows:

       ((All beneficial devises, legacies, and gifts whatever, made or given in any will to a subscribing witness thereto, shall be void unless there are two other competent witnesses to the same; but a mere charge on the estate of the testator for the payment of debts shall not prevent his creditors from being competent witnesses to his will. If such witness, to whom any beneficial devise, legacy or gift may have been made or given, would have been entitled to any share in the testator's estate in case the will is not established, then so much of the estate as would have descended or would have been distributed to such witness shall be saved to him as will not exceed the value of the devise or bequest made to him in the will; and he may recover the same from the devisees or legatees named in the will in proportion to and out of the parts devised and bequeathed to him.)) (1) An interested witness to a will is one who would receive a gift under the will.

       (2) A will or any of its provisions is not invalid because it is signed by an interested witness. Unless there are at least two other subscribing witnesses to the will who are not interested witnesses, the fact that the will makes a gift to a subscribing witness creates a rebuttable presumption that the witness procured the gift by duress, menace, fraud, or undue influence.

       (3) If the presumption established under subsection (2) of this section applies and the interested witness fails to rebut it, the interested witness shall take so much of the gift as does not exceed the share of the estate that would be distributed to the witness if the will were not established.

       (4) The presumption established under subsection (2) of this section has no effect other than that stated in subsection (3) of this section.

       Sec. 17. RCW 11.12.180 and 1965 c 145 s 11.12.180 are each amended to read as follows:

       ((If any person, by last will, devise any real estate to any person for the term of such person's life, such devise vests in the devisee an estate for life, and unless the remainder is specially devised, it shall revert to the heirs at law of the testator.)) The Rule in Shelley's Case is abolished as a rule of law and as a rule of construction. If an applicable statute or a governing instrument calls for a future distribution to or creates a future interest in a designated individual's "heirs," "heirs at law," "next of kin," "relatives," or "family," or language of similar import, the property passes to those persons, including the state under chapter 11.08 RCW, that would succeed to the designated individual's estate under chapter 11.04 RCW. The property must pass to those persons as if the designated individual had died when the distribution or transfer of the future interest was to take effect in possession or enjoyment. For purposes of this section and section 18 of this act, the designated individual's surviving spouse is deemed to be an heir, regardless of whether the surviving spouse has remarried.

       NEW SECTION. Sec. 18. A new section is added to chapter 11.12 RCW to read as follows:

       The Doctrine of Worthier Title is abolished as a rule of law and as a rule of construction. However, the Doctrine of Worthier Title is preserved as a rule of construction if:

       (1) A grantor has established in inter vivos trust of real property;

       (2) The grantor has expressly reserved a reversion to himself or herself; and

       (3) The words "heirs" or "heirs at law" are used by the grantor to describe the quality of the grantor's title in the reversion as an estate in fee simple in the event that the property reverts to the grantor.

In all other cases, language in a governing instrument describing the beneficiaries of a donative disposition as the transferor's "heirs," "heirs at law," "next of kin," "distributees," "relatives," or "family," or language of similar import, does not create or presumptively create a reversionary interest in the transferor.

       NEW SECTION. Sec. 19. (1) Unless expressly exempted by statute, a beneficiary of a nonprobate asset that was subject to satisfaction of the decedent's general liabilities immediately before the decedent's death takes the asset subject to liabilities, claims, estate taxes, and the fair share of expenses of administration reasonably incurred by the personal representative in the transfer of or administration upon the asset. The beneficiary of such an asset is liable to account to the personal representative to the extent necessary to satisfy liabilities, claims, the asset's fair share of expenses of administration, and the asset's share of estate taxes under chapter 83.110 RCW. Before making demand that a beneficiary of a nonprobate asset account to the personal representative, the personal representative shall give notice to the beneficiary, in the manner provided in chapter 11.96 RCW, that the beneficiary is liable to account under this section.

       (2) The following rules govern in applying subsection (1) of this section:

       (a) A beneficiary of property passing at death under a community property agreement takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section. However, assets existing as community or separate property immediately before the decedent's death under the community property agreement are subject to the decedent's liabilities and claims to the same extent that they would have been had they been assets of the probate estate.

       (b) A beneficiary of property held in joint tenancy form with right of survivorship, including without limitation United States savings bonds or similar obligations, takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section to the extent of the decedent's beneficial ownership interest in the property immediately before death.

       (c) A beneficiary of payable-on-death or trust bank accounts, bonds, securities, or similar obligations, including without limitation United States bonds or similar obligations, takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the extent of the decedent's beneficial ownership interest in the property immediately before death.

       (d) A beneficiary of deeds or conveyances made by the decedent if possession has been postponed until the death of the decedent takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the extent of the decedent's beneficial ownership interest in the property immediately before death.

       (e) A trust for the decedent's use of which the decedent is the grantor is subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the same extent as the trust was subject to claims of the decedent's creditors immediately before death under RCW 19.36.020.

       (f) A trust not for the use of the grantor but of which the decedent is the grantor and that becomes effective or irrevocable only upon the decedent's death is subject to the decedent's claims, liabilities, estate taxes, and expenses of administration as described in subsection (1) of this section.

       (g) Anything in this section to the contrary notwithstanding, nonprobate assets that existed as community property immediately before the decedent's death are subject to the decedent's liabilities and claims to the same extent that they would have been had they been assets of the probate estate.

       (h) The liability of a beneficiary of life insurance is governed by chapter 48.18 RCW.

       (i) The liability of a beneficiary of pension or retirement employee benefits is governed by chapter 6.15 RCW.

       (j) An inference may not be drawn from (a) through (i) of this subsection that a beneficiary of nonprobate assets other than those assets specifically described in (a) through (i) of this subsection does or does not take the assets subject to claims, liabilities, estate taxes, and administration expenses as described in subsection (1) of this section.

       (3) Nothing in this section derogates from the rights of a person interested in the estate to recover tax under chapter 83.110 RCW or from the liability of any beneficiary for estate tax under chapter 83.110 RCW.

       Sec. 20. RCW 11.20.070 and 1965 c 145 s 11.20.070 are each amended to read as follows:

       ((Whenever any will is lost or destroyed, the court may take proof of the execution and validity of such will and establish it, notice to all persons interested having been first given. Such proof shall be reduced to writing and signed by the witnesses and filed with the clerk of the court.

       No will shall be allowed to be proved as a lost or destroyed will unless it is proved to have been in existence at the time of the death of the testator, or is shown to have been destroyed, canceled or mutilated in whole or in part as a result of actual or constructive fraud or in the course of an attempt to change the will in whole or in part, which attempt has failed, or as the result of a mistake of fact, nor unless its provisions are clearly and distinctly proved by at least two witnesses, and when any such will is so established, the provisions thereof shall be distinctly stated in the judgment establishing it, and such judgment shall be recorded as wills are required to be recorded. Executors of such will or administrators with the will annexed)) (1) If a will has been lost or destroyed under circumstances such that the loss or destruction does not have the effect of revoking the will, the court may take proof of the execution and validity of the will and establish it, notice to all persons interested having been first given. The proof must be reduced to writing and signed by any witnesses who have testified as to the execution and validity, and must be filed with the clerk of the court.

       (2) The provisions of a lost or destroyed will must be proved by clear, cogent, and convincing evidence, consisting at least in part of a witness to either its contents or the authenticity of a copy of the will.

       (3) When a lost or destroyed will is established under subsections (1) and (2) of this section, its provisions must be distinctly stated in the judgment establishing it, and the judgment must be recorded as wills are required to be recorded. A personal representative may be appointed by the court in the same manner as is herein provided with reference to original wills presented to the court for probate.

       Sec. 21. RCW 11.24.010 and 1971 c 7 s 1 are each amended to read as follows:

       If any person interested in any will shall appear within four months immediately following the probate or rejection thereof, and by petition to the court having jurisdiction contest the validity of said will, or appear to have the will proven which has been rejected, he or she shall file a petition containing his or her objections and exceptions to said will, or to the rejection thereof. ((Issue shall be made up, tried and determined in said court respecting the competency of the deceased to make a last will and testament, or respecting the execution by a deceased of such last will and testament under restraint or undue influence or fraudulent representations, or for any other cause affecting the validity of such will.)) Issues respecting the competency of the deceased to make a last will and testament, or respecting the execution by a deceased of the last will and testament under restraint or undue influence or fraudulent representations, or for any other cause affecting the validity of the will or a part of it, shall be tried and determined by the court.

       If no person shall appear within the time ((aforesaid)) under this section, the probate or rejection of such will shall be binding and final.

       Sec. 22. RCW 11.24.040 and 1965 c 145 s 11.24.040 are each amended to read as follows:

       If, upon the trial of said issue, it shall be decided that the will or a part of it is for any reason invalid, or that it is not sufficiently proved to have been the last will of the testator, the will or part and probate thereof shall be annulled and revoked((, and thereupon and thereafter the powers of the executor or administrator with the will annexed shall cease, but such executor or administrator)) and to that extent the powers of the personal representative shall cease, but the personal representative shall not be liable for any act done in good faith previous to such annulling or revoking.

       Sec. 23. RCW 11.28.120 and 1985 c 133 s 1 are each amended to read as follows:

       Administration of ((the)) an estate ((of)) if the ((person dying)) decedent died intestate or if the personal representative or representatives named in the will declined or were unable to serve shall be granted to some one or more of the persons hereinafter mentioned, and they shall be respectively entitled in the following order:

       (1) The surviving ((husband or wife)) spouse, or such person as he or she may request to have appointed.

       (2) The next of kin in the following order: (a) Child or children; (b) father or mother; (c) brothers or sisters; (d) grandchildren; (e) nephews or nieces.

       (3) The trustee named by the decedent in an inter vivos trust instrument, testamentary trustee named in the will, guardian of the person or estate of the decedent, or attorney in fact appointed by the decedent, if any such a fiduciary controlled or potentially controlled substantially all of the decedent's probate and nonprobate assets.

       (4) One or more of the beneficiaries or transferees of the decedent's probate or nonprobate assets.

       (5) The director of revenue, or the director's designee, for those estates having property subject to the provisions of chapter 11.08 RCW; however, the director may waive this right.

       (((4))) (6) One or more of the principal creditors.

       (((5))) (7) If the persons so entitled shall fail for more than forty days after the death of the ((intestate)) decedent to present a petition for letters of administration, or if it appears to the satisfaction of the court that there ((are)) is no ((relatives or)) next of kin, as above specified eligible to appointment, or they waive their right, and there are no principal creditor or creditors, or such creditor or creditors waive their right, then the court may appoint any suitable person to administer such estate.

       Sec. 24. RCW 11.28.237 and 1977 ex.s. c 234 s 6 are each amended to read as follows:

       Within twenty days after appointment, the personal representative of the estate of a decedent shall cause written notice of his or her appointment and the pendency of said probate proceedings, to be served personally or by mail to each heir, legatee and devisee of the estate and each beneficiary or transferee of a nonprobate asset of the decedent whose names and addresses are known to him or her, and proof of such mailing or service shall be made by affidavit and filed in the cause.

       Sec. 25. RCW 11.40.010 and 1991 c 5 s 1 are each amended to read as follows:

       Every personal representative shall, after appointment and qualification, give a notice to the creditors of the deceased, stating such appointment and qualification as personal representative and requiring all persons having claims against the deceased to serve the same on the personal representative or the estate's attorney of record, and file an executed copy thereof with the clerk of the court, within four months after the date of the first publication of such notice described in this section or within four months after the date of the filing of the copy of such notice with the clerk of the court, whichever is the later, or within the time otherwise provided in RCW 11.40.013. The four-month time period after the later of the date of the first publication of the notice to creditors or the date of the filing of such notice with the clerk of the court is referred to in this chapter as the "four-month time limitation." Such notice shall be given as follows:

       (1) The personal representative shall give actual notice, as provided in RCW 11.40.013, to such creditors who become known to the personal representative within such four-month time limitation;

       (2) The personal representative shall cause such notice to be published once in each week for three successive weeks in the county in which the estate is being administered; and

       (3) The personal representative shall file a copy of such notice with the clerk of the court.

       Except as otherwise provided in RCW 11.40.011 or 11.40.013, any claim not filed within the four-month time limitation shall be forever barred, if not already barred by any otherwise applicable statute of limitations. This bar is effective as to claims against both the decedent's probate assets and nonprobate assets as described in section 19 of this act. Proof by affidavit of the giving and publication of such notice shall be filed with the court by the personal representative.

       Acts of a notice agent in complying with chapter ..., Laws of 1994 (this act) may be adopted and ratified by the personal representative as if done by the personal representative in complying with this chapter, except that if at the time of the appointment and qualification of the personal representative a notice agent had commenced nonprobate notice to creditors under chapter 11.-- RCW (sections 31 through 48 of this act), the personal representative shall give published notice as provided in section 48 of this act.

       Sec. 26. RCW 11.40.013 and 1989 c 333 s 4 are each amended to read as follows:

       The actual notice described in RCW 11.40.010(1), as to creditors becoming known to the personal representative within the four-month time limitation, shall be given the creditors by personal service or regular first class mail, addressed to the creditor's last known address, postage prepaid. The actual notice shall be given before the later of the expiration of the four-month time limitation or thirty days after any creditor became known to the personal representative within the four-month time limitation. Any known creditor is barred unless the creditor has filed a claim, as otherwise provided in this chapter, within the four-month time limitation or within thirty days following the date of actual notice to that creditor, whichever is later. If notice is given by mail, the date of mailing shall be the date of notice. This bar is effective as to claims against both the decedent's probate assets and nonprobate assets.

       Sec. 27. RCW 11.40.015 and 1989 c 333 s 6 are each amended to read as follows:

       Notice under RCW 11.40.010 shall be in substantially the following form:


                                                                             )

                          CAPTION                                  )                 No.

                           OF CASE                                  )

                                                                             )                 NOTICE TO CREDITORS

                                                                             )

. . . .. . . . . . . . . . . .. . . . . . . . . . . . . . .                 )


       The personal representative named below has been appointed and has qualified as personal representative of this estate. Persons having claims against the ((deceased)) decedent must, prior to the time such claims would be barred by any otherwise applicable statute of limitations, serve their claims on the personal representative or the attorneys of record at the address stated below and file an executed copy of the claim with the Clerk of this Court within four months after the date of first publication of this notice or within four months after the date of the filing of the copy of this Notice with the Clerk of the Court, whichever is later or, except under those provisions included in RCW 11.40.011 or 11.40.013, the claim will be forever barred. This bar is effective as to claims against both the probate assets and nonprobate assets of the decedent.


                              DATE OF FILING COPY OF NOTICE TO CREDITORS with Clerk of Court: . . . . . . . . . . .

                              DATE OF FIRST PUBLICATION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

                              . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,

                                                                                                Personal Representative

                              Address


                              Attorney for Estate:

                              Address:

                              Telephone:


       Sec. 28. RCW 11.40.040 and 1974 ex.s. c 117 s 36 are each amended to read as follows:

       Every claim which has been allowed by the personal representative shall be ranked among the acknowledged debts of the estate to be paid expeditiously in the course of administration.

       Sec. 29. RCW 11.40.080 and 1988 c 64 s 22 are each amended to read as follows:

       No holder of any claim against a decedent shall maintain an action thereon, unless the claim shall have been first presented as ((herein)) provided in this chapter. Nothing in this chapter affects ((the notice under)) RCW 82.32.240.

       Sec. 30. RCW 11.48.010 and 1965 c 145 s 11.48.010 are each amended to read as follows:

       It shall be the duty of every personal representative to settle the estate, including the administration of any nonprobate assets within control of the personal representative under section 19 of this act, in his or her hands as rapidly and as quickly as possible, without sacrifice to the probate or nonprobate estate. ((He)) The personal representative shall collect all debts due the deceased and pay all debts as hereinafter provided. ((He)) The personal representative shall be authorized in his or her own name to maintain and prosecute such actions as pertain to the management and settlement of the estate, and may institute suit to collect any debts due the estate or to recover any property, real or personal, or for trespass of any kind or character.

       NEW SECTION. Sec. 31. (1) Subject to the conditions stated in this section and if no personal representative has been appointed and qualified in the decedent's estate in Washington, the following members of a group, defined as the "qualified group", are qualified to give "nonprobate notice to creditors" of the decedent:

       (a) Decedent's surviving spouse;

       (b) The person appointed in an agreement made under chapter 11.96 RCW to give nonprobate notice to creditors of the decedent;

       (c) The trustee, except a testamentary trustee under the will of the decedent not probated in another state, having authority over any of the property of the decedent; and

       (d) A person who has received any property of the decedent by reason of the decedent's death.

       (2) The "included property" means the property of the decedent that was subject to satisfaction of the decedent's general liabilities immediately before the decedent's death and that either:

       (a) Constitutes a nonprobate asset; or

       (b) Has been received, or is entitled to be received, either under chapter 11.62 RCW or by the personal representative of the decedent's probate estate administered outside the state of Washington, or both.

       (3) The qualified person shall give the nonprobate notice to creditors. The "qualified person" must be:

       (a) The person in the qualified group who has received, or is entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property; or

       (b) If there is no person in (a) of this subsection, then the person who has been appointed by those persons, including any successors of those persons, in the qualified group who have received, or are entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property.

       (4) The requirement in subsection (3) of this section of the receipt of all, or substantially all, of the included property is satisfied if:

       (a) The person described in subsection (3)(a) of this section at the time of the filing of the declaration and oath referred to in subsection (5) of this section in reasonable good faith believed that the person had received, or was entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property; or

       (b) The persons described in subsection (3)(b) of this section at the time of their entry into the agreement under chapter 11.96 RCW in which they appoint the person to give the nonprobate notice to creditors in reasonable good faith believed that they had received, or were entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property.

       (5) The "notice agent" means the qualified person who:

       (a) Files a declaration and oath with the clerk of the superior court in a county in which probate may be commenced regarding the decedent as provided in RCW 11.96.050(2);

       (b) Pays a filing fee to the clerk equal in amount to the filing fee charged by the clerk for the probate of estates; and

       (c) Receives from the clerk a cause number.

       The county in which the notice agent files the declaration is the "notice county." The declaration and oath must be made in affidavit form or under penalty of perjury under the laws of the state in the form provided in RCW 9A.72.085 and must state that the person making the declaration believes in reasonable good faith that the person is qualified under this chapter to act as the notice agent and that the person faithfully will execute the duties of the notice agent as provided in this chapter.

       (6) The following persons may not act as notice agent:

       (a) Corporations, trust companies, and national banks, except:

       (i) Professional service corporations that are regularly organized under the laws of this state whose shareholder or shareholders are exclusively attorneys; and

       (ii) Other corporations, trust companies, and national banks that are authorized to do trust business in this state;

       (b) Minors;

       (c) Persons of unsound mind; or

       (d) Persons who have been convicted of a felony or of a misdemeanor involving moral turpitude.

       (7) A person who has given notice under this chapter and who thereafter becomes of unsound mind or is convicted of a crime or misdemeanor involving moral turpitude is no longer qualified to act as notice agent under this chapter. The disqualification does not bar another person, otherwise qualified, from acting as notice agent under this chapter.

       (8) A nonresident may act as notice agent if the nonresident appoints an agent who is a resident of the notice county or who is attorney of record for the notice agent upon whom service of all papers may be made. The appointment must be made in writing and filed by the clerk of the notice county with the other papers relating to the notice given under this chapter.

       (9) The powers and authority of a notice agent cease, and the office of notice agent becomes vacant, upon the appointment and qualification of a personal representative for the estate of the decedent. Except as provided in section 48 of this act, the cessation of the powers and authority does not affect a published notice under this chapter if the publication commenced before the cessation and does not affect actual notice to creditors given by the notice agent before the cessation.

       NEW SECTION. Sec. 32. (1) The notice agent may give nonprobate notice to the creditors of the decedent if:

       (a) As of the date of the filing of a copy of the notice with the clerk of the superior court for the notice county, the notice agent has no knowledge of the appointment and qualification of a personal representative in the decedent's estate in the state of Washington or of another person becoming a notice agent; and

       (b) According to the records of the clerk of the superior court for the notice county as of 8:00 a.m. on the date of the filing, no personal representative of the decedent's estate had been appointed and qualified and no cause number regarding the decedent had been issued to any other notice agent by the clerk under section 31 of this act.

       (2) The notice must state that all persons having claims against the decedent shall: (a) Serve the same on the notice agent if the notice agent is a resident of the state of Washington upon whom service of all papers may be made, or on the nonprobate resident agent for the notice agent, if any, or on the attorneys of record of the notice agent at their respective address in the state of Washington; and (b) file an executed copy of the notice with the clerk of the superior court for the notice county, within: (i) (A) Four months after the date of the first publication of the notice described in this section; or (B) four months after the date of the filing of the copy of the notice with the clerk of the superior court for the notice county, whichever is later; or (ii) the time otherwise provided in section 35 of this act. The four-month time period after the later of the date of the first publication of the notice to creditors or the date of the filing of the notice with the clerk of the court is referred to in this chapter as the "four-month time limitation."

       (3) The notice agent shall declare in the notice in affidavit form or under the penalty of perjury under the laws of the state of Washington as provided in RCW 9A.72.085 that: (a) The notice agent is entitled to give the nonprobate notice under subsection (1) of this section; and (b) the notice is being given by the notice agent as permitted by this section.

       (4) The notice agent shall sign the notice and file it with the clerk of the superior court for the notice county. The notice must be given as follows:

       (a) The notice agent shall give actual notice as to creditors of the decedent who become known to the notice agent within the four-month time limitation as required in section 35 of this act;

       (b) The notice agent shall cause the notice to be published once in each week for three successive weeks in the notice county; and

       (c) The notice agent shall file a copy of the notice with the clerk of the superior court for the notice county.

       (5) A claim not filed within the four-month time limitation is forever barred, if not already barred by an otherwise applicable statute of limitations, except as provided in section 33 or 35 of this act. The bar is effective to bar claims against both the probate estate of the decedent and nonprobate assets that were subject to satisfaction of the decedent's general liabilities immediately before the decedent's death. If a notice to the creditors of a decedent is published by more than one notice agent and the notice agents are not acting jointly, the four-month time limitation means the four-month time limitation that applies to the notice agent who first publishes the notice. Proof by affidavit or perjury declaration made under RCW 9A.72.085 of the giving and publication of the notice must be filed with the clerk of the superior court for the notice county by the notice agent.

       NEW SECTION. Sec. 33. The time limitations under this chapter for serving and filing claims do not accrue to the benefit of a liability or casualty insurer as to claims against either the decedent or the marital community of which the decedent was a member, or both, and:

       (1) The claims, subject to applicable statutes of limitation, may at any time be: (a) Served on the duly acting notice agent, the duly acting resident agent for the notice agent, or on the attorney for either of them; and (b) filed with the clerk of the superior court for the notice county; or

       (2) If there is no duly acting notice agent or resident agent for the notice agent, the claimant as a creditor shall proceed as provided in chapter 11.40 RCW. However, if no personal representative ever has been appointed for the decedent, a personal representative must be appointed as provided in chapter 11.28 RCW and the estate opened, in which case the claimant then shall proceed as provided in chapter 11.40 RCW.

       A claim may be served and filed as provided in this section, notwithstanding that there is no duly acting notice agent and that no personal representative previously has been appointed. However, the amount of recovery under the claim may not exceed the amount of applicable insurance coverages and proceeds, and the claim so served and filed may not constitute a cloud or lien upon the title to the assets of the decedent or delay or prevent the transfer or distribution of assets of the decedent. This section does not serve to extend the applicable statute of limitations regardless of whether a declaration and oath has been filed by a notice agent as provided in section 31 of this act.

       NEW SECTION. Sec. 34. The notice agent shall exercise reasonable diligence to discover, within the four-month time limitation, reasonably ascertainable creditors of the decedent. The notice agent is deemed to have exercised reasonable diligence to ascertain the creditors upon:

       (1) Conducting, within the four-month time limitation, a reasonable review of the decedent's correspondence including correspondence received after the date of death and financial records including checkbooks, bank statements, income tax returns, and similar materials, that are in the possession of, or reasonably available to, the notice agent; and

       (2) Having made, with regard to claimants, inquiry of the nonprobate takers of the decedent's property and of the presumptive heirs, devisees, and legatees of the decedent, all of whose names and addresses are known, or in the exercise of reasonable diligence should have been known, to the notice agent.

       If the notice agent conducts the review and makes an inquiry, the notice agent is presumed to have exercised reasonable diligence to ascertain creditors of the decedent, and creditors not ascertained in the review or in an inquiry are presumed not reasonably ascertainable. These presumptions may be rebutted only by clear, cogent, and convincing evidence. The notice agent may evidence the review and inquiry by filing an affidavit or declaration under penalty of perjury form as provided in RCW 9A.72.085 to the effect in the nonprobate proceeding in the notice county. The notice agent also may petition the superior court of the notice county for an order declaring that the notice agent has made a review and inquiry and that only creditors known to the notice agent after the review and inquiry are reasonably ascertainable. The petition and hearing must be under the procedures provided in chapter 11.96 RCW, and the notice specified under RCW 11.96.100 must also be given by publication.

       NEW SECTION. Sec. 35. The actual notice described in section 32(4)(a) of this act, as to a creditor becoming known to the notice agent within the four-month time limitation, must be given the creditor by personal service or regular first class mail, addressed to the creditor's last known address, postage prepaid. The actual notice must be given before the later of the expiration of the four-month time limitation or thirty days after a creditor became known to the notice agent within the four-month time limitation. A known creditor is barred unless the creditor has filed a claim, as provided in this chapter, within the four-month time limitation or within thirty days following the date of actual notice to that creditor, whichever is later. If notice is given by mail, the date of mailing is the date of notice. This bar is effective as to claims against the included property as defined in section 31 of this act.

       NEW SECTION. Sec. 36. (1) Whether or not notice under section 32 of this act has been given or should have been given, if no personal representative has been appointed and qualified, a person having a claim against the decedent who has not filed the claim within eighteen months from the date of the decedent's death is forever barred from making a claim against the decedent, or commencing an action against the decedent, if the claim or action is not already barred by any otherwise applicable statute of limitations. However, this eighteen-month limitation does not apply to:

       (a) Claims described in section 33 of this act;

       (b) A claim if, during the eighteen-month period following the date of death, partial performance has been made on the obligation underlying the claim, and the notice agent has not given the actual notice described in section 32(4)(a) of this act; or

       (c) Claims if, within twelve months after the date of death:

       (i) No notice agent has given the published notice described in section 32(4)(b) of this act; and

       (ii) No personal representative has given the published notice described in RCW 11.40.010(2).

       Any otherwise applicable statute of limitations applies without regard to the tolling provisions of RCW 4.16.190.

       (2) Claims referred to in this section must be filed if there is no duly appointed, qualified, and acting personal representative and there is a duly declared and acting notice agent or resident agent for the notice agent. The claims, subject to applicable statutes of limitation, may at any time be served on the duly declared and acting notice agent or resident agent for the notice agent, or on the attorney for either of them.

       (3) A claim to be filed under this chapter if there is no duly appointed, qualified, and acting personal representative but there is a duly declared and acting notice agent or resident agent for the notice agent and which claim is not otherwise barred under this chapter must be made in the form and manner provided under section 32 of this act, as if the notice under that section had been given.

       NEW SECTION. Sec. 37. Notice under section 32 of this act must be in substantially the following form:


In the Matter of                                    )

                                                                               ) No.

                                                                               )

                                                                               ) NONPROBATE NOTICE TO CREDITORS

                                           Deceased. )

______________________________)


       _________________________________________, the undersigned Notice Agent, has elected to give notice to creditors of the decedent above named under section 32 of this act. As of the date of the filing of a copy of this notice with the Clerk of this Court, the Notice Agent has no knowledge of the appointment and qualification of a personal representative in the decedent's estate in the state of Washington or of any other person becoming a Notice Agent. According to the records of the Clerk of this Court as of 8:00 a.m. on the date of the filing of this notice with the Clerk, no personal representative of the decedent's estate had been appointed and qualified and no cause number regarding the decedent had been issued to any other Notice Agent by the Clerk of this Court under section 31 of this act.

       Persons having claims against the decedent named above must, before the time the claims would be barred by any otherwise applicable statute of limitations, serve their claims on: The notice agent if the Notice Agent is a resident of the state of Washington upon whom service of all papers may be made; the Nonprobate Resident Agent for the Notice Agent, if any; or the attorneys of record for the Notice Agent at the respective address in the state of Washington listed below, and file an executed copy of the claim with the Clerk of this Court within four months after the date of first publication of this notice, or within four months after the date of the filing of the copy of this notice with the Clerk of the Court, whichever is later, or, except under those provisions included in section 33 or 35 of this act, the claim will be forever barred. This bar is effective as to all assets of the decedent that were subject to satisfaction of the decedent's general liabilities immediately before the decedent's death regardless of whether those assets are or would be assets of the decedent's probate estate or nonprobate assets of the decedent.

 

Date of filing of this notice with the

Clerk of the Court: ____________________


       Date of first publication of this notice: ____________________


       The Notice Agent declares under penalty of perjury under the laws of the State of Washington on __________________, 19___ at [City] , [State] that the foregoing is true and correct.


____________________________ ______________________________________

Notice Agent [signature]                     Nonprobate Resident Agent [if appointed]

[address in Washington, if any]                             [address in Washington]


_________________________

Attorney for Notice Agent

[address in Washington]

[telephone]


       NEW SECTION. Sec. 38. RCW 11.40.020 applies to claims subject to this chapter.

       NEW SECTION. Sec. 39. (1) Property of the decedent that was subject to the satisfaction of the decedent's general liabilities immediately before the decedent's death is liable for claims. The property includes, but is not limited to, property of the decedent that is includable in the decedent's probate estate, whether or not there is a probate administration of the decedent's estate.

       (2) A claim approved by the notice agent, and a judgment on a claim first prosecuted against a notice agent, may be paid only out of assets received as a result of the death of the decedent by the notice agent or by those appointing the notice agent under chapter 11.96 RCW, except as may be provided by agreement under RCW 11.96.170 or by court order under RCW 11.96.070.

       NEW SECTION. Sec. 40. (1) The notice agent shall approve or reject claims no later than by the end of a period that is two months after the end of the four-month time limitation defined as the "review period."

       (2) The notice agent may approve a claim, in whole or in part.

       (3) If the notice agent rejects a claim, in whole or in part, the notice agent shall notify the claimant of the rejection and file in the office of the clerk of the court in the notice county an affidavit or declaration under penalty of perjury under RCW 9A.72.085 showing the notification and the date of the notification. The notification must be by personal service or certified mail addressed to the claimant at the claimant's address as stated in the claim. If a person other than the claimant signed the claim for or on behalf of the claimant, and the person's business address as stated in the claim is different from that of the claimant, notification of the rejection also must be made by personal service or certified mail upon that person. The date of the postmark is the date of the notification. The notification of the rejection must advise the claimant, and the person making claim on his, her, or its behalf, if any, that the claimant must bring suit in the proper court in the notice county against the notice agent: (a) Within thirty days after notification of rejection if the notification is made during or after the review period; or (b) before expiration of thirty days after the end of the four-month time limitation, if the notification is made during the four-month time limitation, and that otherwise the claim is forever barred.

       (4) A claimant whose claim either has been rejected by the notice agent or has not been acted upon within twenty days of written demand for the action having been given to the notice agent by the claimant during or after the review period must commence an action against the notice agent in the proper court in the notice county to enforce the claim of the claimant within the earlier of:

       (a) If the notice of the rejection of the claim has been sent as provided in subsection (3) of this section: The time for filing an action on a rejected claim is as provided in subsection (3) of this section; or

       (b) If written demand for approval or rejection is made on the notice agent before the claim is rejected: Within 30 days following the end of the twenty-day written demand period where the demand period ends during or after the review period;

otherwise the claim is forever barred.

       (5) The notice agent may, either before or after rejection of a claim, compromise the claim, whether due or not, absolute or contingent, liquidated or unliquidated.

       (6) A personal representative of the decedent's estate may revoke either or both of: (a) The rejection of a claim that has been rejected by the notice agent; or (b) the approval of a claim that has been either approved or compromised by the notice agent, or both.

       (7) If a notice agent pays a claim that subsequently is revoked by a personal representative of the decedent, the notice agent may file a claim in the decedent's estate for the notice agent's payment, and the claim may be allowed or rejected as other claims, at the election of the personal representative.

       (8) If the notice agent has not received substantially all assets of the decedent that are liable for claims, then although an action may be commenced on a rejected claim by a creditor against the notice agent, the notice agent, notwithstanding any provision in this chapter, may only make an appearance in the litigation. The Notice Agent may not answer the action, but must, instead, cause a petition to be filed for the appointment of a personal representative of the decedent within thirty days of the service of the creditor's summons and complaint on the notice agent. A judgment may not be entered in an action brought by a creditor against the notice agent earlier than twenty days after the duly appointed, qualified, and acting personal representative of the decedent has been substituted in that action for the notice agent.

       NEW SECTION. Sec. 41. If a claim has been filed and presented to a notice agent, and a part of the claim is allowed, the amount of the allowance must be stated in the indorsement. If the creditor refuses to accept the amount so allowed in satisfaction of the claim, the creditor may not recover costs in an action the creditor may bring against the notice agent and against any substituted personal representative unless the creditor recovers a greater amount than that offered to be allowed, exclusive of interest and costs.

       NEW SECTION. Sec. 42. A debt of a decedent for whose estate no personal representative has been appointed must be paid in the following order by the notice agent from the assets of the decedent that are subject to the payment of claims as provided in section 39 of this act:

       (1) Costs of administering the assets subject to the payment of claims, including a reasonable fee to the notice agent, the resident agent for the notice agent, if any, reasonable attorneys' fees for the attorney for each of them, filing fees, publication costs, mailing costs, and similar costs and fees.

       (2) Funeral expenses in a reasonable amount.

       (3) Expenses of the last sickness in a reasonable amount.

       (4) Wages due for labor performed within sixty days immediately preceding the death of the decedent.

       (5) Debts having preference by the laws of the United States.

       (6) Taxes or any debts or dues owing to the state.

       (7) Judgments rendered against the decedent in the decedent's lifetime that are liens upon real estate on which executions might have been issued at the time of the death of the decedent and debts secured by mortgages in the order of their priority. However, the real estate is subject to the payment of claims as provided in section 40 of this act.

       (8) All other demands against the assets subject to the payment of claims as provided in section 40 of this act.

       A claim of the notice agent or other person who has received property by reason of the decedent's death may not be paid by the notice agent unless all other claims that have been filed under this chapter, and all debts having priority to the claim, are paid in full or otherwise settled by agreement, regardless of whether the other claims are allowed or rejected, or partly allowed or partly rejected. In the event of the probate of the decedent's estate, the personal representative's payment from estate assets of the claim of the notice agent or other person who has received property by reason of the decedent's death is not affected by the priority payment provisions of this section.

       NEW SECTION. Sec. 43. The notice agent may not allow a claim that is barred by the statute of limitations.

       NEW SECTION. Sec. 44. A holder of a claim against a decedent may not maintain an action on the claim against a notice agent, unless the claim has been first presented as provided in this chapter. This chapter does not affect RCW 82.32.240.

       NEW SECTION. Sec. 45. The time during which there is a vacancy in the office of notice agent is not included in a limitation prescribed in this chapter.

       NEW SECTION. Sec. 46. If a judgment has been rendered against a decedent in the decedent's lifetime, an execution may not issue on the judgment after the death of the decedent, but the judgment must be presented in the form of a claim to the notice agent, if any, as any other claim. The claim need not be supported by the affidavit of the claimant. If the claim is justly due and unsatisfied, it must be paid in due course in accordance with this chapter for the payment of claims. However, if the judgment is a lien on property classified within the definition of the included property in section 31 of this act, the property may be sold for the satisfaction of the judgment, and the officer making the sale shall account to the notice agent for any surplus.

       NEW SECTION. Sec. 47. The personal claim of a Notice Agent, as a creditor of the decedent, must be authenticated by affidavit, and must be filed and presented for allowance to the superior court in the notice county. The allowance of the claim by the court is sufficient evidence of the correctness of the claim.

       NEW SECTION. Sec. 48. In case the office of notice agent becomes vacant for any reason, including resignation, death, removal, or replacement, after notice by publication has been commenced as provided in section 32 of this act, the personal representative of the decedent or the successor notice agent shall publish notice of the vacancy and succession for two successive weeks in a legal newspaper published in the notice county. The time between the commencement of the vacancy and the publication by the successor notice agent or personal representative must be added to the time within which claims must be filed: (1) As fixed by the first published nonprobate notice to creditors; and (2) as extended in the case of actual notice under section 35 of this act, unless the time expired before the vacancy. Notice is not required if the period for filing claims has expired during the time that the former notice agent was qualified.

       Sec. 49. RCW 11.56.050 and 1965 c 145 s 11.56.050 are each amended to read as follows:

       If the court should determine that it is necessary to sell any or all of the real estate for the purposes mentioned in this title, then it may make and cause to be entered an order directing the personal representative to sell so much of the real estate as the court may determine necessary for the purposes aforesaid. Such order shall give a particular description of the property to be sold and the terms of such sale and shall provide whether such property shall be sold at public or private sale, or by negotiation. ((The court shall order sold that part of the real estate which is generally devised, rather than any part which may have been specifically devised, but the court may, if it appears necessary, sell any or all of the real estate so devised.)) After the giving of such order it shall be the duty of the personal representative to sell such real estate in accordance with the order of the court and as in this title provided with reference to the public or private sales of real estate.

       Sec. 50. RCW 11.68.010 and 1977 ex.s. c 234 s 18 are each amended to read as follows:

       Subject to the provisions of this chapter, if the estate of a decedent, who died either testate or intestate, is solvent taking into account both probate and nonprobate assets of the decedent, and if the personal representative is other than a creditor of the decedent not designated as personal representative in the decedent's will, such estate shall be managed and settled without the intervention of the court; the fact of solvency shall be established by the entry of an order of solvency. An order of solvency may be entered at the time of the appointment of the personal representative or at any time thereafter where it appears to the court by the petition of the personal representative, or the inventory filed, and/or other proof submitted, that the estate of the decedent is solvent, and that notice of the application for an order of solvency has been given to those persons entitled thereto when required by RCW 11.68.040 as now or hereafter amended.

       Sec. 51. RCW 11.96.009 and 1985 c 31 s 2 are each amended to read as follows:

       (1) The superior court shall have original subject-matter jurisdiction over ((probates in the following instances)) the probate of wills and the administration of estates of incapacitated, missing, and deceased individuals in all instances, including without limitation:

       (a) When a resident of the state dies; or

       (b) When a nonresident of the state dies in the state; or

       (c) When a nonresident of the state dies outside the state.

       (2) The superior court shall have original subject-matter jurisdiction over trusts and ((trust)) matters relating to trusts.

       (3) The superior courts in the exercise of their jurisdiction of matters of ((probate and)) trusts and estates shall have the power to probate or refuse to probate wills, appoint personal representatives ((of deceased, incompetent, or disabled persons and)), administer and settle ((all such estates, and)) the affairs and the estates of incapacitated, missing, or deceased individuals including but not limited to decedents' estates only containing nonprobate assets, administer and settle matters that relate to nonprobate assets and arise under chapter 11.-- (section 19 of this act) or 11.-- RCW (sections 31 through 48 of this act), administer and settle all trusts and trust matters, award processes and cause to come before them all persons whom they may deem it necessary to examine, and order and cause to be issued all such writs as may be proper or necessary, and do all things proper or incident to the exercise of such jurisdiction.

       Sec. 52. RCW 11.96.020 and 1985 c 31 s 3 are each amended to read as follows:

       It is the intention of ((this title)) the legislature that the courts ((mentioned)) shall have full and ample power and authority under this title to:

       (1) Administer and settle ((all estates of decedents and incompetent and disabled persons in this title mentioned and to)) the affairs and the estates of all incapacitated, missing, and deceased persons in accordance with this title;

       (2) Administer and settle all trusts and trust matters; and

       (3) Administer and settle matters arising with respect to nonprobate assets under chapters 11.-- (section 19 of this act) and 11.-- RCW (sections 31 through 48 of this act).

       If the provisions of this title with reference to the administration and settlement of such ((estates or trusts)) matters should in any cases and under any circumstances be inapplicable ((or)), insufficient, or doubtful, the court shall nevertheless have full power and authority to proceed with such administration and settlement in any manner and way which to the court seems right and proper, all to the end that such ((estates or trusts may be by the court administered upon and settled)) matters may be administered and settled by the court.

       Sec. 53. RCW 11.96.050 and 1985 c 31 s 6 are each amended to read as follows:

       For purposes of venue in proceedings involving: The probate of wills; the administration and disposition of estates of incapacitated, missing, or deceased individuals, including but not limited to estates only containing nonprobate assets; or trusts and trust matters, the following shall apply:

       (1) Proceedings under Title 11 RCW pertaining to trusts shall be commenced ((either)):

       (a) In the superior court of the county in which the situs of the trust is located as provided in RCW 11.96.040; or

       (b) ((In the superior court of the county in which a trustee resides or has its principal place of business; or

       (c))) With respect to testamentary trusts, in the superior court of the county where letters testamentary were granted to a personal representative((, and in the absence of)) or, where no such letters have been granted to a personal representative, then in any county where letters testamentary could have been granted in accordance with subsection (2) of this section.

       (2) Wills shall be proven, letters testamentary or of administration granted, and other proceedings pertaining to the probate of wills, the administration and disposition of estates including but not limited to estates containing only nonprobate assets under Title 11 RCW ((pertaining to probate)) shall be commenced((, either)):

       (a) In the county in which the decedent was a resident at the time of death;

       (b) In the county in which the decedent died, or in which any part of the estate may be, if the decedent was not a resident of this state; ((or))

       (c) In the county in which any part of the estate may be, if the decedent ((having)) died out-of-state((,)) and was not ((having been)) a resident ((in)) of this state at the time of death; or

       (d) In the county in which any nonprobate asset may be, if the decedent died out-of-state, was not a resident of this state at the time of death, and left no assets subject to probate administration in this state.

       (3) No action undertaken is defective or invalid because of improper venue if the court has jurisdiction of the matter.

       Sec. 54. RCW 11.96.060 and 1985 c 31 s 7 are each amended to read as follows:

       (1) Any action against the trustee of an express trust, excluding those trusts excluded from the definition of express trusts under RCW 11.98.009, but including all express trusts, whenever executed, for any breach of fiduciary duty, must be brought within three years from the earlier of (a) the time the alleged breach was discovered or reasonably should have been discovered, (b) the discharge of a trustee from the trust as provided in RCW ((11.98.040)) 11.98.041, or (c) the time of termination of the trust or the trustee's repudiation of the trust.

       (2) Any action by an heir, legatee, or other interested party, to whom proper notice was given if required, against a personal representative for alleged breach of fiduciary duty must be brought prior to discharge of the personal representative.

       (3) The tolling provisions of RCW 4.16.190 apply to this chapter except that the running of any statute of limitations stated in subsection (1) or (2) of this section, or any other applicable statute of limitations for any matter that is the subject of dispute under chapter 11.96 RCW, is not tolled if the unascertained or unborn heir, beneficiary, or class of persons, or minor((, incompetent, or disabled)) or incapacitated person, or person identified in RCW 11.96.170(2) or 11.96.180 whose identity or address is unknown, had a guardian ad litem, limited or general guardian of the estate, or a special representative to represent the person during the probate or dispute resolution proceeding.

       (((4) Notwithstanding subsections (2) and (3) of this section, any cause of action against a trustee of an express trust, as provided for in subsection (1) of this section is not barred by the statute of limitations if it is brought within three years from January 1, 1985. In addition, any action as specified in subsection (2) of this section against the personal representative is not barred by this statute of limitations if it is brought within one year of January 1, 1985.))

       Sec. 55. RCW 11.96.070 and 1990 c 179 s 1 are each amended to read as follows:

       ((A trustor, grantor, personal representative, trustee, or other fiduciary, creditor, devisee, legatee, heir, or trust beneficiary interested in the administration of a trust, or the attorney general in the case of a charitable trust under RCW 11.110.120, or of the estate of a decedent, incompetent, or disabled person,)) (1) A person with an interest in or right respecting the administration, settlement, or disposition of an interest in a trust or in the estate of an incapacitated, missing, or deceased person may have a judicial proceeding for the declaration of rights or legal relations ((in respect to the trust or estate)) under this title including but not limited to the following:

       (((1) To ascertain)) (a) The ascertaining of any class of creditors, devisees, legatees, heirs, next of kin, or others;

       (((2) To direct)) (b) The ordering of the personal representatives or trustees to do or abstain from doing any particular act in their fiduciary capacity;

       (((3) To determine)) (c) The determination of any question arising in the administration of the estate or trust, including without limitation questions of construction of wills and other writings;

       (((4) To confer upon)) (d) The grant to the personal representatives or trustees of any necessary or desirable powers not otherwise granted in the instrument or given by law that the court determines are not inconsistent with the provisions or purposes of the will or trust;

       (((5) To amend or conform)) (e) The modification of the will or the trust instrument in the manner required to qualify the gift thereunder for the charitable estate tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by final regulations and rulings of the United States internal revenue service, in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest; ((or

       (6) To amend or conform)) (f) The modification of the will or the trust instrument in the manner required to qualify any gift thereunder for the benefit of a surviving spouse who is not a citizen of the United States for the estate tax marital deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the internal revenue code as required by final regulations and rulings of the United States treasury department or internal revenue service, in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest; ((or

       (7) To resolve any other matter in this title referencing this judicial proceedings section.)) (g) The determination of the persons entitled to notice under RCW 11.96.100 and 11.96.110 for the purposes of any judicial proceeding under this subsection (1) and for the purposes of an agreement under RCW 11.96.170; or

       (h) The resolution of any other matter that arises under this title and references this section.

       (2) Any person with an interest in or right respecting the administration of a nonprobate asset under this title may have a judicial proceeding for the declaration of rights or legal relations under this title with respect to the nonprobate asset, including without limitation the following:

       (a) The ascertaining of any class of creditors or others for purposes of chapter 11.-- (section 19 of this act) or 11.-- RCW (sections 31 through 48 of this act);

       (b) The ordering of a qualified person, the notice agent, or resident agent, as those terms are defined in chapter 11.-- RCW (sections 31 through 48 of this act), or any combination of them, to do or abstain from doing any particular act with respect to a nonprobate asset;

       (c) The ordering of a custodian of any of the decedent's records relating to a nonprobate asset to do or abstain from doing any particular act with respect to those records;

       (d) The determination of any question arising in the administration under chapter 11.-- (section 19 of this act) or 11.-- RCW (sections 31 through 48 of this act) of a nonprobate asset;

       (e) The determination of the persons entitled to notice under RCW 11.96.100 and 11.96.110 for the purposes of any judicial proceeding under this subsection (2) and for the purposes of an agreement under RCW 11.96.170; and

       (f) The determination of any questions relating to the abatement, rights of creditors, or other matter relating to the administration, settlement, or final disposition of a nonprobate asset under this title.

       (3) The provisions of this chapter apply to disputes arising in connection with estates of ((incompetents or disabled)) incapacitated persons unless otherwise covered by chapters 11.88 and 11.92 RCW. The provisions of this chapter shall not supersede the otherwise applicable provisions and procedures of chapter 11.24, 11.28, 11.40, 11.52, 11.56, or 11.60 RCW with respect to any rights or legal obligations that are subject to those chapters.

       (4) For the purposes of this section, "a person with an interest in or right respecting the administration, settlement, or disposition of an interest in a trust or in the estate of an incapacitated, missing, or deceased person" includes but is not limited to:

       (a) The trustor if living, trustee, beneficiary, or creditor of a trust and, for a charitable trust, the attorney general if acting within the powers granted under RCW 11.110.120;

       (b) The personal representative, heir, devisee, legatee, and creditor of an estate;

       (c) The guardian, guardian ad litem, and ward of a guardianship, and a creditor of an estate subject to a guardianship; and

       (d) Any other person with standing to sue with respect to any of the matters for which judicial proceedings are authorized in subsection (1) of this section.

       (5) For the purposes of this section, "any person with an interest in or right respecting the administration of a nonprobate asset under this title" includes but is not limited to:

       (a) The notice agent, the resident agent, or a qualified person, as those terms are defined in chapter 11.-- RCW (sections 31 through 48 of this act);

       (b) The recipient of the nonprobate asset with respect to any matter arising under this title;

       (c) Any other person with standing to sue with respect to any matter for which judicial proceedings are authorized in subsection (2) of this section; and

       (d) The legal representatives of any of the persons named in this subsection.

       Sec. 56. RCW 11.96.080 and 1985 c 31 s 9 are each amended to read as follows:

       Unless rules of court or a provision of this title requires otherwise, a judicial proceeding under RCW 11.96.070 may be commenced by petition. The court shall make an order fixing the time and place for hearing the petition. The court shall approve the form and content of the notice. Notice of hearing shall be signed by the clerk of the court.

       Sec. 57. RCW 11.96.090 and 1985 c 31 s 10 are each amended to read as follows:

       The clerk of each of the superior courts is authorized to fix the time of hearing of all applications, petitions and reports in probate and guardianship proceedings, except the time for hearings upon show cause orders and citations and except for the time of hearings set under RCW 11.96.080. The authority ((herein)) granted in this section is in addition to the authority vested in the superior courts and superior court commissioners.

       Sec. 58. RCW 11.96.100 and 1985 c 31 s 11 are each amended to read as follows:

       (1) Subject to RCW 11.96.110, in all judicial proceedings under Title 11 RCW that require notice, such notice shall be personally served ((or mailed to each trustee, personal representative, heir, beneficiary including devisees, legatees, and heirs, guardian ad litem, and person having an interest in the trust or estate whose name and address are known to the petitioner)) on or mailed to all parties to the dispute at least twenty days prior to the hearing on the petition((,)) unless ((otherwise)) a different period is provided by statute or ordered by the court under RCW 11.96.080.

       (2) Proof of ((such)) the service or mailing required in this section shall be made by affidavit filed at or before the hearing.

       ((In addition, notice shall also be given to)) (3) For the purposes of this section:

       (a) When used in connection with a judicial proceeding under RCW 11.96.070(1), "parties to the dispute" means each:

       (i) Trustor if living;

       (ii) Trustee;

       (iii) Personal representative;

       (iv) Heir;

       (v) Beneficiary including devisees, legatees, and trust beneficiaries;

       (vi) Guardian ad litem; or

       (vii) Other person

who has an interest in the subject of the particular proceeding and whose name and address are known to, or are reasonably ascertainable by, the petitioner, and also includes the attorney general if required under RCW 11.110.120.

       (b) When used in connection with a judicial proceeding under RCW 11.96.070(2), "parties to the dispute" means each notice agent, if any, or other person, who has an interest in the subject of the particular proceeding and whose name and address are known to, or are reasonably ascertainable by, the petitioner, and also includes the personal representatives of the estate of the owner of the nonprobate asset that is the subject of the particular proceeding, if the subject of the particular proceeding relates to the beneficiary's liability to a decedent's estate or creditors under section 19 of this act.

       (c) "Notice agent" has the meanings given in section 31 of this act.

       Sec. 59. RCW 11.96.110 and 1985 c 31 s 12 are each amended to read as follows:

       Notwithstanding provisions of this chapter to the contrary, there is compliance with the ((notice)) requirements of Title 11 RCW for notice to the beneficiaries of, ((or)) and other persons interested in, an estate ((or)), a trust, or ((to beneficiaries or remaindermen)) a nonprobate asset, including without limitation all living persons who may participate in the corpus or income of the trust or estate, if notice is given as follows:

       (1) If an interest in an estate ((or)), trust, or nonprobate asset has been given to persons who compose a certain class upon the happening of a certain event, notice shall be given to the living persons who would constitute the class if the event had happened immediately before the commencement of the proceeding requiring notice.

       (2) If an interest in an estate ((or)), trust, or nonprobate asset has been given to a living person, and the same interest, or a share in it, is to pass to the surviving spouse or to persons who are, or may be, the distributees, heirs, issue, or other kindred of that living person upon the happening of a future event, notice shall be given to that living person.

       (3) Except as otherwise provided in subsection (2) of this section, if an interest in an estate ((or)), trust, or nonprobate asset has been given to a person, a class of persons, or both upon the happening of any future event, and the same interest or a share of such interest is to pass to another person, class of persons, or both, upon the happening of an additional future event, notice shall be given to the living person or persons who would take the interest upon the happening of the first event.

       (4) Notice shall be given to persons who would not otherwise be entitled to notice by law if a conflict of interest involving the subject matter of the ((trust or estate)) proceeding relating to an estate, trust, or nonprobate asset is known to exist between a person to whom notice is given and a person to whom notice need not be given under Title 11 RCW.

       Any action taken by the court is conclusive and binding upon each person receiving actual or constructive notice in the manner provided in this section.

       Sec. 60. RCW 11.96.130 and 1985 c 31 s 14 are each amended to read as follows:

       All issues of fact ((joined in probate or trust proceedings)) in any judicial proceeding under this title shall be tried in conformity with the requirements of the rules of practice in civil actions((. The probate or trust)), except as otherwise provided by statute or ordered by the court under RCW 11.96.030 or other applicable law or rules of court. The judicial proceeding may be commenced as a new action or as an action incidental to an existing ((probate or trust)) judicial proceeding relating to the same trust or estate or nonprobate asset. Once commenced, the action may be consolidated with an existing ((probate or trust)) proceeding or converted to a separate action upon the motion of any party for good cause shown, or by the court on its own motion. If a party is entitled to a trial by jury and a jury is demanded, and the issues are not sufficiently made up by the written pleadings on file, the court, on due notice, shall settle and frame the issues to be tried. If no jury is demanded, the court shall try the issues ((joined)), and sign and file its findings and decision in writing, as provided for in civil actions. Judgment on the ((issue joined)) issues, as well as for costs, may be entered and enforced by execution or otherwise by the court as in civil actions.

       Sec. 61. RCW 11.96.140 and 1985 c 31 s 15 are each amended to read as follows:

       Either the superior court or the court on appeal, may, in its discretion, order costs, including ((attorneys)) attorneys' fees, to be paid by any party to the proceedings or out of the assets of the estate or trust or nonprobate asset, as justice may require.

       Sec. 62. RCW 11.96.160 and 1988 c 202 s 19 are each amended to read as follows:

       Any interested party may seek appellate review of any final order, judgment, or decree of the court((, and such)) respecting any judicial proceedings under this title. The review shall be in the manner and way provided by law for appeals in civil actions.

       Sec. 63. RCW 11.96.170 and 1988 c 29 s 7 are each amended to read as follows:

       (1) If((, as to the)) all required parties to the dispute agree as to a matter in dispute, the ((trustor, grantor, all parties beneficially interested in the estate or trust with respect to such matter, and any current fiduciary of such estate or trust, who are also included in RCW 11.96.070 and who are entitled to notice under RCW 11.96.100 and 11.96.110 agree on any matter listed in RCW 11.96.070 or any other matter in Title 11 RCW referencing this nonjudicial resolution procedure, then the)) agreement shall be evidenced by a written agreement executed by all ((necessary persons as provided in this section)) required parties to the dispute. Those persons may reach an agreement concerning a matter in RCW 11.96.070(((4))) (1)(d) as long as those persons, rather than the court, determine that the powers to be conferred are not inconsistent with the provisions or purposes of the will or trust.

       (2) If necessary, ((the personal representative or trustee)) any one or more of the required parties to the dispute may petition the court for the appointment of a special representative to represent a ((person interested in the estate or trust who is a minor, incompetent, disabled, or)) required party to the dispute who is incapacitated by reason of being a minor or otherwise, who is yet unborn or unascertained, or ((a person)) whose identity or address is unknown. The special representative has authority to enter into a binding agreement under this section on behalf of the person or beneficiary. The special representative may be appointed for more than one person or class of persons if the interests of such persons or ((class)) classes are not in conflict. Those entitled to receive notice for persons or beneficiaries described in RCW 11.96.110 may enter into a binding agreement on behalf of such persons or beneficiaries.

       (3) The special representative shall be a lawyer licensed to practice before the courts of this state or an individual with special skill or training in the administration of estates ((or)), trusts, or nonprobate assets, as applicable. The special representative shall have no interest in any affected estate ((or)), trust, or nonprobate asset, and shall not be related to any personal representative, trustee, beneficiary, or other person interested in the estate ((or)), trust, or nonprobate asset. The special representative is entitled to reasonable compensation for services ((which)) and, if applicable, that compensation shall be paid from the principal of the estate ((or)), trust, or nonprobate asset whose beneficiaries are represented. Upon execution of the written agreement, the special representative shall be discharged of any further responsibility with respect to the estate ((or)), trust, or nonprobate asset.

       (4) The written agreement or a memorandum summarizing the provisions of the written agreement may, at the option of any ((person interested in the estate or trust)) of the required parties to the dispute, be filed with the court having jurisdiction over the estate ((or)), trust, nonprobate asset, or other matter affected by the agreement. The person filing the agreement or memorandum shall, within five days ((thereof)) after the agreement or memorandum is filed with the court, mail a copy of the agreement, the summarizing memorandum if one was filed with the court, and a notice of the filing to each ((person interested in the estate or trust)) of the required parties to the dispute whose address is known or is reasonably ascertainable by the person. Notice shall be in substantially the following form:


CAPTION                                         NOTICE OF FILING OF

OF CASE                                          AGREEMENT OR

                                                          MEMORANDUM

                                                          OF AGREEMENT


     Notice is hereby given that the attached document was filed by the undersigned in the above entitled court on the . . . . . . day of . . . . . ., ((19. .)) . . . . . Unless you file a petition objecting to the agreement within 30 days of the above specified date the agreement will be deemed approved and will be equivalent to a final order binding on all persons interested in the ((estate or trust)) subject of the agreement.

     If you file and serve a petition within the period specified, you should ask the court to fix a time and place for the hearing on the petition and provide for at least ((a)) ten days' notice to all persons interested in the ((estate or trust)) subject of the agreement.


     DATED this . . . . . . day of . . . . . ., ((19. .)) . . . . .


                                                                                                   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

                                                                                                   (((Party to the agreement)) Name of person filing the agreement or memorandum with the court)


     (5) Unless a ((person interested in the estate or trust)) required party to the dispute files a petition objecting to the agreement within thirty days ((of)) after the filing of the agreement or the memorandum, the agreement will be deemed approved and will be equivalent to a final order binding on all ((persons interested in the estate or trust. If all persons interested in the estate or trust)) parties to the dispute. If all required parties to the dispute waive the notice required by this section, the agreement will be deemed approved and will be equivalent to a final order binding on all such persons ((interested in the estate or trust)) effective upon the date of filing.

     (6) For the purposes of this section:

     (a) "Matter in dispute" includes without limitation any matter listed in RCW 11.96.070 or any other matter in this title referencing this nonjudicial resolution procedure;

     (b) "Parties to the dispute" has the meaning given to that term in RCW 11.96.100(3) (a) and (b), as applicable;

     (c) "Required parties to the dispute" means those parties to the dispute who are entitled to notice under RCW 11.96.100 and 11.96.110, and, when used in the singular, means any one of the required parties to the dispute; and

     (d) "Estate" includes the estate of a deceased, missing, or incapacitated person.

     Sec. 64. RCW 11.96.180 and 1985 c 31 s 19 are each amended to read as follows:

     (1) The court, upon its own motion or on request of ((a person interested in the trust or estate)) any one or more of the required parties to the dispute as that term is defined in RCW 11.96.170(6)(c), at any stage of a judicial proceeding or at any time in a nonjudicial resolution procedure, may appoint a guardian ad litem to represent the interests of a minor, incapacitated, unborn, or unascertained person, or person whose identity ((and)) or address ((are)) is unknown, or a designated class of persons who are not ascertained or are not in being. When not precluded by a conflict of interest, a guardian ad litem may be appointed to represent several persons or interests.

     (2) ((For the purposes of this section, a trustee is a person interested in the trust and a personal representative is a person interested in an estate.

     (3))) The court-appointed guardian ad litem supersedes the special representative if so provided in the court order.

     (((4))) (3) The court may appoint the guardian ad litem at an ex parte hearing, or the court may order a hearing as provided in RCW 11.96.070 with notice as provided in RCW 11.96.080, 11.96.100, and 11.96.110.

     Sec. 65. RCW 11.100.035 and 1989 c 97 s 1 are each amended to read as follows:

     (1) Within the standards of judgment and care established by law, and subject to any express provisions or limitations contained in any particular trust instrument, guardians, trustees and other fiduciaries, whether individual or corporate, are authorized to acquire and retain securities of any open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940 as now or hereafter amended.

     (2) Within the limitations of subsection (1) of this section, whenever the trust instrument directs, requires, authorizes, or permits investment in obligations of the United States government, the trustee may invest in and hold such obligations either directly or in the form of securities of, or other interests in, an open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940, as now or hereafter amended, if both of the following conditions are met:

     (a) The portfolio of the investment company or investment trust is limited to obligations of the United States and to repurchase agreements fully collateralized by such obligations; and

     (b) The investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.

     (3) If the fiduciary is a bank or trust company, then the fact that the fiduciary, or an affiliate of the fiduciary, provides services to the investment company or investment trust such as that of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise, and is receiving reasonable compensation for those services does not preclude the bank or trust company from investing or reinvesting in the securities of the open-end or closed-end management investment company or investment trust. The fiduciary shall furnish a copy of the prospectus relating to the securities to each person to whom a regular periodic accounting would ordinarily be rendered under the trust instrument or under RCW 11.106.020, upon the request of that person. The restrictions set forth under RCW 11.100.090 may not be construed as prohibiting the fiduciary powers granted under this section.

     Sec. 66. RCW 82.32.240 and 1988 c 64 s 21 are each amended to read as follows:

     Any tax due and unpaid and all increases and penalties thereon, shall constitute a debt to the state and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies.

     In all cases of probate, insolvency, assignment for the benefit of creditors, or bankruptcy, involving any taxpayer who is, or decedent who was, engaging in business, the claim of the state for said taxes and all increases and penalties thereon shall be a lien upon all real and personal property of the taxpayer, and the mere existence of such cases or conditions shall be sufficient to create such lien without any prior or subsequent action by the state, and in all such cases it shall be the duty of all administrators, executors, guardians, receivers, trustees in bankruptcy or assignees for the benefit of creditors, to notify the department of revenue of such administration, receivership or assignment within sixty days from the date of their appointment and qualification.

     The lien provided for by this section shall attach as of the date of the assignment for the benefit of creditors or of the initiation of the probate, insolvency, or bankruptcy proceedings: PROVIDED, That this sentence shall not be construed as affecting the validity or priority of any earlier lien that may have attached previously in favor of the state under any other section of this title.

     Any administrator, executor, guardian, receiver or assignee for the benefit of creditors not giving the notification as provided for above shall become personally liable for payment of the taxes and all increases and penalties thereon to the extent of the value of the property subject to administration that otherwise would have been available for the payment of such taxes, increases, and penalties by the administrator, executor, guardian, receiver, or assignee.

     As used in this section, "probate" includes the nonprobate claim settlement procedure under chapter 11.-- RCW (sections 31 through 48 of this act), and "executor" and "administrator" includes any notice agent acting under chapter 11.-- RCW (sections 31 through 48 of this act).

     NEW SECTION. Sec. 67. The following acts or parts of acts are each repealed:

     (1) RCW 11.12.050 and 1965 c 145 s 11.12.050;

     (2) RCW 11.12.090 and 1965 c 145 s 11.12.090;

     (3) RCW 11.12.130 and 1965 c 145 s 11.12.130;

     (4) RCW 11.12.140 and 1965 c 145 s 11.12.140;

     (5) RCW 11.12.150 and 1965 c 145 s 11.12.150.

     (6) RCW 11.12.200 and 1965 c 145 s 11.12.200;

     (7) RCW 11.12.210 and 1965 c 145 s 11.12.210;

     (8) RCW 11.56.015 and 1965 c 145 s 11.56.015;

     (9) RCW 11.56.140 and 1965 c 145 s 11.56.140;

     (10) RCW 11.56.150 and 1965 c 145 s 11.56.150;

     (11) RCW 11.56.160 and 1965 c 145 s 11.56.160; and

     (12) RCW 11.56.170 and 1965 c 145 s 11.56.170.

     NEW SECTION. Sec. 68. (1) Sections 4 through 8 of this act shall constitute a new chapter in Title 11 RCW.

     (2) Section 19 of this act shall constitute a new chapter in Title 11 RCW.

     (3) Sections 31 through 48 of this act shall constitute a new chapter in Title 11 RCW.

     NEW SECTION. Sec. 69. This act shall take effect January 1, 1995."


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

    On page 1, line 1 of the title, after "matters;" strike the remainder of the title and insert "amending RCW 11.02.005, 11.07.010, 11.08.170, 11.12.040, 11.12.080, 11.12.110, 11.12.120, 11.12.160, 11.12.180, 11.20.070, 11.24.010, 11.24.040, 11.28.120, 11.28.237, 11.40.010, 11.40.013, 11.40.015, 11.40.040, 11.40.080, 11.48.010, 11.56.050, 11.68.010, 11.96.009, 11.96.020, 11.96.050, 11.96.060, 11.96.070, 11.96.080, 11.96.090, 11.96.100, 11.96.110, 11.96.130, 11.96.140, 11.96.160, 11.96.170, 11.96.180, 11.100.035, and 82.32.240; adding new sections to chapter 11.12 RCW; adding new chapters to Title 11 RCW; repealing RCW 11.12.050, 11.12.090, 11.12.130, 11.12.140, 11.12.150, 11.12.200, 11.12.210, 11.56.015, 11.56.140, 11.56.150, 11.56.160, and 11.56.170; and providing an effective date."


MOTION


    On motion of Senator Adam Smith, the rules were suspended, Substitute House Bill No. 2270, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2270, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2270, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

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

    Absent: Senator Moyer - 1.

    Excused: Senator Rinehart - 1.

    SUBSTITUTE HOUSE BILL NO. 2270, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


    President Pro Tempore Wojahn assumed the Chair.


MOTION


    On motion of Senator Loveland, Senator Adam Smith was excused.


STATEMENT FOR THE JOURNAL


    Due to work on the anti-violence bill, I missed the vote on the following measures: Engrossed House Bill No. 2193 and Substitute House Bill No. 2570.

    I would have voted 'yes' on all the measures.

SENATOR ADAM SMITH, 33rd District


SECOND READING


    ENGROSSED HOUSE BILL NO. 2193, by Representatives Veloria, Lisk and Dyer

 

Exempting certain renal disease facilities from health care assistant licensing requirements.


    The bill was read the second time.


MOTION


    On motion of Senator Talmadge, the rules were suspended, Engrossed House Bill No. 2193 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2193.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed House Bill No. 2193 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

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

    ENGROSSED HOUSE BILL NO. 2193, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2570, by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives Zellinsky, L. Thomas, R. Meyers and Dorn) (by request of Insurance Commissioner)

 

Changing insurance licensing requirements.


    The bill was read the second time.


MOTION


    On motion of Senator Moore, the rules were suspended, Substitute House Bill No. 2570 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Debate ensued.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2570.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2570 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 3; Absent, 0; Excused, 2.

    Voting yea: Senators Amondson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 44.

    Voting nay: Senators Anderson, Cantu and Newhouse - 3.

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

    SUBSTITUTE HOUSE BILL NO. 2570, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2560, by House Committee on Higher Education (originally sponsored by Representatives Kessler, Brumsickle, Jones, Flemming, Quall, Jacobsen, Orr, Mastin, Rayburn, Ogden, Wood, Sheahan, Basich, Carlson, Shin, Bray, Mielke, Dunshee, Brough, Pruitt, J. Kohl, Karahalios, Schoesler, Talcott, Forner and Tate)

 

Changing state work study provisions.


    The bill was read the second time.


MOTION


    On motion of Senator Bauer, the rules were suspended, Substitute House Bill No. 2560 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2560.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2560 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

    Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 48.

    Excused: Senator Rinehart - 1.

    SUBSTITUTE HOUSE BILL NO. 2560, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING



    HOUSE BILL NO. 2812, by Representatives Bray, Caver, Romero, Reams and Ballard (by request of Department of General Administration)

 

Revising provisions insuring energy conservation in design of public buildings.


    The bill was read the second time.


MOTION


    On motion of Senator Sutherland, the rules were suspended, House Bill No. 2812 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 2812.


ROLL CALL


    The Secretary called the roll on the final passage of House Bill No. 2812 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

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

    Voting nay: Senator Bluechel - 1.

    Excused: Senator Rinehart - 1.

    HOUSE BILL NO. 2812, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2226, by House Committee on Environmental Affairs (originally sponsored by Representatives Horn, Rust and Cooke)

 

Requiring cities and towns to provide notice for rate increases for solid waste handling services.


    The bill was read the second time.


MOTION


    Senator Fraser moved that the following Committee on Ecology and Parks amendment not be adopted:

    On page 2, after line 24, insert the following:

     "Sec. 4. RCW 70.95.060 and 1969 ex.s. c 134 s 6 are each amended to read as follows:        (1) The department in accordance with procedures prescribed by the Administrative Procedure Act, chapter 34.05 RCW, as now or hereafter amended, may adopt such minimum functional standards for solid waste handling as it deems appropriate. The department in adopting such standards may classify areas of the state with respect to population density, climate, geology, and other relevant factors bearing on solid waste disposal standards.

     (2) Standards with an effective date on or after October 1, 1993 shall define "existing municipal solid waste landfill units" to include defined areas of land that have been permitted by a jurisdictional health department to receive, and any part of which is receiving, solid waste as of the effective date of the standard. This subsection (2) shall apply only to landfills with a total capacity of less than two million tons of municipal solid waste as of October 1, 1993."

    The President Pro Tempore declared the question before the Senate to be the motion by Senator Fraser that the Committee on Ecology and Parks amendment on page 3, after line 24, to Substitute House Bill No. 2226 not be adopted.

    The motion by Senator Fraser carried and the Committee on Ecology and Parks amendment on page 2, after line 24, was not adopted.


MOTIONS


    On motion of Senator Snyder, the following amendment by Senators Snyder, Loveland, Fraser, Prince and Linda Smith was adopted:

    On page 2, after line 24, insert the following:

     "Sec. 4. RCW 70.95.060 and 1969 ex.s. c 134 s 6 are each amended to read as follows:

     (1) The department in accordance with procedures prescribed by the Administrative Procedure Act, chapter 34.05 RCW, as now or hereafter amended, may adopt such minimum functional standards for solid waste handling as it deems appropriate. The department in adopting such standards may classify areas of the state with respect to population density, climate, geology, and other relevant factors bearing on solid waste disposal standards.

     (2) Standards with an effective date on or after October 1, 1993 shall define "existing municipal solid waste landfill units" to include defined areas of land that have been permitted by a jurisdictional health department to receive, and any part of which is receiving, solid waste as of the effective date of the standard. This subsection shall apply only to landfills in counties bordering the Columbia river with a population of between eighty and one hundred thousand and counties bordering the Snake River with a population of between fifteen and twenty thousand. Furthermore, for such landfills, this subsection shall apply only as long as the landfill does not receive waste from other counties, except as provided under a contract for disposal of waste entered before October 1, 1993, and any renewals of such contract for disposal of like quantities of waste."


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

    On page 1, line 2 of the title, after "chapter 35A.21 RCW;" insert "amending RCW 70.95.060;"


MOTION


    On motion of Senator Fraser, the rules were suspended, Substitute House Bill No. 2226, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Debate ensued.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2226, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2226, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

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

    Voting nay: Senator Cantu - 1.

    Excused: Senator Rinehart - 1.

    SUBSTITUTE HOUSE BILL NO. 2226, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2167, by House Committee on Revenue (originally sponsored by Representatives Heavey, G. Fisher, Lemmon, Forner, Veloria, Roland, Eide, Campbell, Jones, Dorn, Zellinsky, Rayburn, Springer, Leonard and Patterson)

 

Regulating race tracks.


    The bill was read the second time.


MOTIONS


    Senator Skratek moved that the following Committee on Trade, Technology and Economic Development amendment be adopted:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. It is the intent of the legislature to terminate payments into the Washington thoroughbred racing fund from licensees of nonprofit race meets until June 1, 1995, and to provide that one-half of moneys previously paid into the fund be directed to enhanced purses and one-half of moneys be deposited in an escrow or trust account and used solely for construction of a new thoroughbred race track facility in western Washington.

     Sec. 2. RCW 67.16.105 and 1993 c 170 s 2 are each amended to read as follows:

     (1) Licensees of race meets that are nonprofit in nature, are of ten days or less, and have an average daily handle of one hundred twenty thousand dollars or less shall withhold and pay to the commission daily for each authorized day of racing one-half percent of the daily gross receipts from all parimutuel machines at each race meet.

     (2) Licensees of race meets that do not fall under subsection (1) of this section shall withhold and pay to the commission daily for each authorized day of racing the following applicable percentage of all daily gross receipts from all parimutuel machines at each race meet:

     (a) If the daily gross receipts of all parimutuel machines are more than two hundred fifty thousand dollars, the licensee shall withhold and pay to the commission daily two and one-half percent of the daily gross receipts; and

     (b) If the daily gross receipts of all parimutuel machines are two hundred fifty thousand dollars or less, the licensee shall withhold and pay to the commission daily one percent of the daily gross receipts.

     (3) In addition to those amounts in subsections (1) and (2) of this section, all licensees shall forward one-tenth of one percent of the daily gross receipts of all parimutuel machines to the commission daily for payment to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this section, but said percentage shall not be charged against the licensees. The total of such payments shall not exceed one hundred fifty thousand dollars in any one year and any amount in excess of one hundred fifty thousand dollars shall be remitted to the general fund. Payments to nonprofit race meets under this subsection shall be distributed on a pro rata per-race-day basis and used only for purses at race tracks that have been operating under RCW 67.16.130 and subsection (1) of this section for the five consecutive years immediately preceding the year of payment.

     (4) In addition to those sums paid to the commission in subsection (2) of this section, licensees who are nonprofit corporations and have race meets of thirty days or more shall ((withhold and pay to the commission daily for each authorized day of racing)) retain and dedicate: (a) An amount equal to one and one-quarter percent of the daily gross receipts of all parimutuel machines at each race meet to be used solely for the purpose of increasing purses; and (b) an amount equal to one and one-quarter percent of the daily gross receipts of all parimutuel machines at each race meet to be deposited in an escrow or trust account and used solely for construction of a new thoroughbred race track facility in western Washington. Said percentages shall come from that amount the licensee is authorized to retain under RCW 67.16.170(2). ((The commission shall deposit these moneys in the Washington thoroughbred racing fund created in RCW 67.16.250.

     (5) The additional one and one-quarter percent of the moneys allowed to be retained by this section must be used for increased purses.)) The commission shall adopt such rules as may be necessary to enforce this subsection. The provisions of this subsection shall apply through June 1, 1995.

     (5) In the event the new racetrack is not constructed before January 1, 2001, all funds including interest, remaining in the escrow or trust account established in subsection (4) of this section, shall revert to the state general fund.

     (6) Effective ((January 1, 1994, the amount of daily gross receipts withheld and paid to the commission, as set out in subsection (4) of this section, shall revert to two and one-half percent of the daily gross receipts of all parimutuel machines at each race meet)) June 1, 1995, licensees who are nonprofit corporations and have race meets of thirty days or more shall withhold and pay to the commission daily for each authorized day of racing an amount equal to two and one-half percent of the daily gross receipts of all parimutuel machines at each race meet. These percentages shall come from the amount that the licensee is authorized to retain under RCW 67.16.170(2) and shall be in addition to those sums paid to the commission in subsection (2) of this section. The commission shall deposit these moneys in the Washington thoroughbred racing fund created in RCW 67.16.250.

     Sec. 3. RCW 67.16.250 and 1991 c 270 s 12 are each amended to read as follows:

     The Washington thoroughbred racing fund is created in the state treasury. Effective June 1, 1995, all receipts derived under RCW 67.16.105(((4))) (6) from licensees who are nonprofit corporations and whose race meets are thirty days or more shall be deposited into the account. Moneys in the account may be spent only after legislative appropriation. Expenditures from the account shall be expended to benefit and support interim continuation of thoroughbred racing, capital construction of a new race track facility, and programs enhancing the general welfare, safety, and advancement of the Washington thoroughbred racing industry.

     NEW SECTION. Sec. 4. 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 motion of Senator Skratek, the following amendments by Senators Skratek and West to the Committee on Trade, Technology and Economic Development striking amendment were considered simultaneously and were adopted:

    On page 1, line 9 of the amendment, after "meets" insert "from the effective date of this act"

    On page 1, line 10 of the amendment, strike "previously" and insert "that otherwise would have been"

    The President Pro Tempore declared the question before the Senate to be the adoption of the Committee on Trade, Technology and Economic Development striking amendment, as amended, to Substitute House Bill No. 2167.

    The motion by Senator Skratek carried and the Committee on Trade, Technology and Economic Development striking amendment, as amended, was adopted.


MOTIONS


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

    On page 1, line 2 of the title, after "provisions;" strike the remainder of the title and insert "amending RCW 67.16.105 and 67.16.250; creating a new section; and declaring an emergency."

    On motion of Senator Skratek, the rules were suspended, Substitute House Bill No. 2167, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


REQUEST TO BE EXCUSED


    Citing Rule No. 22, and a possible conflict of interest, Senator Talmadge requested to be excused from voting on Substitute House Bill No. 2167, as amended by the Senate.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2167, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2167, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

    Excused: Senators Rinehart and Talmadge - 2.

    SUBSTITUTE HOUSE BILL NO. 2167, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2452, by House Committee on Agriculture and Rural Development (originally sponsored by Representatives Rayburn, Lisk, Mastin, Chandler, Lemmon, Grant, Finkbeiner, Wineberry, Bray, Cothern and Dyer)

 

Modifying provisions regarding shipping wine.


    The bill was read the second time.


MOTION


    On motion of Senator Moore, the rules were suspended, Substitute House Bill No. 2452 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2452.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2452 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

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

    SUBSTITUTE HOUSE BILL NO. 2452, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2176, by House Committee on Local Government (originally sponsored by Representatives G. Cole, Edmondson, Jacobsen, Padden, Dunshee, Orr, Lemmon and Carlson)

 

Incorporating and annexing cities and towns.


    The bill was read the second time.


MOTIONS


    Senator Haugen moved that the following Committee on Government Operations amendment be adopted:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. A new section is added to chapter 35.02 RCW to read as follows:

     Any person proposing the incorporation of a city or town shall file a notice of the proposed incorporation with the county legislative authority of the county in which all or the major portion of the proposed city or town is located. The notice shall include the matters required to be included in the incorporation petition under RCW 35.02.030 and be accompanied by both a one hundred dollar filing fee and an affidavit from the person stating that he or she is a registered voter residing in the proposed city or town.

     The county legislative authority shall promptly notify the boundary review board of the proposed incorporation, which shall hold a public meeting on the proposed incorporation within thirty days of the notice being filed where persons favoring and opposing the proposed incorporation may state their views. If a boundary review board does not exist in the county, the county legislative authority shall provide the public meeting. The public meeting shall be held at a location in or near the proposed city or town. Notice of the public meeting shall be published in a newspaper of general circulation in the area proposed to be incorporated at least once ten days prior to the public meeting.

     NEW SECTION. Sec. 2. A new section is added to chapter 35.02 RCW to read as follows:

     Within one working day after the public meeting under section 1 of this act, the county auditor shall provide an identification number for the incorporation effort to the person who made the notice of proposing the incorporation. The identification number shall be included on the petition proposing the incorporation.

     The petition proposing the incorporation may retain the proposed boundaries and other matters as described in the notice, or may alter the proposed boundaries and other matters.

     Sec. 3. RCW 35.02.030 and 1986 c 234 s 4 are each amended to read as follows:

     The petition for incorporation shall: (1) Indicate whether the proposed city or town shall be a noncharter code city operating under Title 35A RCW, or a city or town operating under Title 35 RCW; (2) indicate the form or plan of government the city or town is to have; (3) set forth and particularly describe the proposed boundaries of the proposed city or town; (4) state the name of the proposed city or town; (5) state the number of inhabitants therein, as nearly as may be; and (6) pray that ((it may)) the city or town be incorporated. The petition shall conform to the requirements for form prescribed in RCW 35A.01.040. The petition shall include the identification number provided under section 2 of this act and state the last date by which the petition may be filed, as determined under RCW 35.02.020.

     If the proposed city or town is located in more than one county, the petition shall be prepared in such a manner as to indicate the different counties within which the signators reside.

     A city or town operating under Title 35 RCW may have a mayor/council, council/manager, or commission form of government. A city operating under Title 35A RCW may have a mayor/council or council/manager plan of government.

     If the petition fails to specify the matters described in subsection (1) of this section, the proposal shall be to incorporate as a noncharter code city. If the petition fails to specify the matter described in subsection (2) of this section, the proposal shall be to incorporate with a mayor/council form or plan of government.

     Sec. 4. RCW 35.02.020 and 1986 c 234 s 3 are each amended to read as follows:

     A petition for incorporation must be signed by ((qualified)) registered voters resident within the limits of the proposed city or town equal in number to at least ten percent of the ((votes cast at the last state general election and presented to)) number of voters residing within the proposed city or town and filed with the auditor of the county in which all, or the largest portion of, the proposed city or town is located. The petition must be filed with the auditor by no later than one hundred eighty days after the date the public meeting on the proposed incorporation was held under section 1 of this act, or the next regular business day following the one hundred eightieth day if the one hundred eightieth day is not a regular business day.

     NEW SECTION. Sec. 5. A new section is added to chapter 35.02 RCW to read as follows:

     For a period of ninety days after a petition proposing the incorporation of a city or town is filed with the county auditor, a petition or resolution proposing the annexation of any portion of the territory included in the incorporation proposal may be filed or adopted and the proposed annexation may continue following the applicable statutory procedures. Territory that ultimately is annexed, as a result of the filing of such an annexation petition or adoption of such an annexation resolution during this ninety-day period, shall be withdrawn from the incorporation proposal.

     A proposed annexation of a portion of the territory included within the proposed incorporation, that is initiated by the filing of an annexation petition or adoption of an annexation resolution after this ninety-day period, shall be held in abeyance and may not occur unless: (1) The boundary review board modifies the boundaries of the proposed incorporation to remove the territory from the proposed incorporation; (2) the boundary review board rejects the proposed incorporation and the proposed city or town has a population of less than seven thousand five hundred; or (3) voters defeat the ballot proposition authorizing the proposed incorporation.

     NEW SECTION. Sec. 6. Where a petition proposing the incorporation of a city or town has been filed with a county auditor prior to the effective date of this act, the time limitations on competing annexation proposals that are provided under section 5 of this act are modified as follows:

     (1) A petition or resolution proposing the annexation of any portion of the territory included in the incorporation proposal, that was filed or adopted within the later of ninety days after the date the incorporation petition was filed or the effective date of this act, may continue following the applicable statutory procedures. A boundary review board may simultaneously consider the proposed incorporation and such an annexation.

     (2) A petition or resolution proposing the annexation of any portion of the territory included in the incorporation proposal, that is filed or adopted within the later of ninety days after the date the incorporation petition was filed or the effective date of this act, shall be held in abeyance and may not occur unless: (a) The boundary review board modifies the boundaries of the proposed incorporation to remove the territory from the proposed incorporation; (b) the boundary review board rejects the proposed incorporation and the proposed city or town has a population of less than seven thousand five hundred; or (c) voters defeat the ballot proposition authorizing the proposed incorporation.

     NEW SECTION. Sec. 7. A new section is added to chapter 35.13 RCW to read as follows:

     After a petition proposing an annexation by a city or town is filed with the city or town or the governing body of the city or town, or after a resolution proposing an annexation by a city or town has been adopted by the city or town governing body, no territory included in the proposed annexation may be annexed by another city or town or incorporated into a city or town unless: (1) The boundary review board modifies the boundaries of the proposed annexation and removes the territory; (2) the boundary review board or review board created under RCW 35.13.171 rejects the proposed annexation; or (3) the city or town governing body rejects the proposed annexation or voters defeat the ballot proposition authorizing the annexation.

     NEW SECTION. Sec. 8. A new section is added to chapter 35A.14 RCW to read as follows:

     After a petition proposing an annexation by a code city has been filed with the city or the city legislative authority, or after a resolution proposing the annexation by a code city has been adopted by the city legislative authority, no territory included in the proposed annexation may be annexed by another city or town or incorporated into a city or town unless: (1) The boundary review board or county annexation review board created under RCW 35A.14.160 modifies the boundaries of the proposed annexation and removes the territory; (2) the boundary review board or county annexation review board created under RCW 35A.14.160 rejects the proposed annexation; or (3) the city legislative authority rejects the proposed annexation or voters defeat the ballot proposition authorizing the annexation.

     NEW SECTION. Sec. 9. A new section is added to chapter 36.93 RCW to read as follows:

     A boundary review board may simultaneously consider the proposed incorporation of a city or town, and the proposed annexation of a portion of the territory included in the proposed incorporation, if the resolution or petition initiating the annexation is adopted or filed ninety or fewer days after the petition proposing the incorporation was filed.

     NEW SECTION. Sec. 10. A new section is added to chapter 36.93 RCW to read as follows:

     The proposed incorporation of any city or town that includes territory located in a county in which a boundary review board exists shall be reviewed by the boundary review board and action taken as described under RCW 36.93.150.

     Sec. 11. RCW 35.02.001 and 1989 c 84 s 25 are each amended to read as follows:

     ((Actions taken under chapter 35.02 RCW may be)) The incorporation of a city or town is subject to ((potential)) review by a boundary review board under chapter 36.93 RCW if a boundary review board exists in the county in which all or any portion of the territory proposed to be incorporated is located.

     Sec. 12. RCW 35.02.010 and 1986 c 234 s 2 are each amended to read as follows:

     Any contiguous area containing not less than ((three)) one thousand five hundred inhabitants lying outside the limits of an incorporated city or town may become incorporated as a city or town operating under Title 35 or 35A RCW as provided in this chapter: PROVIDED, That no area which lies within five air miles of the boundary of any city having a population of fifteen thousand or more shall be incorporated which contains less than three thousand inhabitants.

     Sec. 13. RCW 36.93.100 and 1992 c 162 s 1 are each amended to read as follows:

     The board shall review and approve, disapprove, or modify any of the actions set forth in RCW 36.93.090 when any of the following shall occur within forty-five days of the filing of a notice of intention:

     (1) Three members of a five-member boundary review board or five members of a boundary review board in a county with a population of one million or more files a request for review: PROVIDED, That the members of the boundary review board shall not be authorized to file a request for review of the following actions:

     (a) The incorporation of any special district or change in the boundary of any city, town, or special purpose district;

     (b) The extension of permanent water service outside of its existing corporate boundaries by a city, town, or special purpose district if (i) the extension is through the installation of water mains of six inches or less in diameter or (ii) the county legislative authority for the county in which the proposed extension is to be built is required or chooses to plan under RCW 36.70A.040 and has by a majority vote waived the authority of the board to initiate review of all other extensions; or

     (c) The extension of permanent sewer service outside of its existing corporate boundaries by a city, town, or special purpose district if (i) the extension is through the installation of sewer mains of eight inches or less in diameter or (ii) the county legislative authority for the county in which the proposed extension is to be built is required or chooses to plan under RCW 36.70A.040 and has by a majority vote waived the authority of the board to initiate review of all other extensions;

     (2) Any governmental unit affected, including the governmental unit for which the boundary change or extension of permanent water or sewer service is proposed, or the county within which the area of the proposed action is located, files a request for review of the specific action;

     (3) A petition requesting review is filed and is signed by:

     (a) Five percent of the registered voters residing within the area which is being considered for the proposed action (as determined by the boundary review board in its discretion subject to immediate review by writ of certiorari to the superior court); or

     (b) An owner or owners of property consisting of five percent of the assessed valuation within such area;

     (4) The majority of the members of boundary review boards concur with a request for review when a petition requesting the review is filed by five percent of the registered voters who deem themselves affected by the action and reside within one-quarter mile of the proposed action but not within the jurisdiction proposing the action.

     If a period of forty-five days shall elapse without the board's jurisdiction having been invoked as set forth in this section, the proposed action shall be deemed approved.

     If a review of a proposal is requested, the board shall make a finding as prescribed in RCW 36.93.150 within one hundred twenty days after the filing of such a request for review. If this period of one hundred twenty days shall elapse without the board making a finding as prescribed in RCW 36.93.150, the proposal shall be deemed approved unless the board and the person who submitted the proposal agree to an extension of the one hundred twenty day period.

     Sec. 14. RCW 35.02.039 and 1986 c 234 s 7 are each amended to read as follows:

     (1) The county legislative authority of the county in which the proposed city or town is located shall hold a public hearing on the proposed incorporation if no boundary review board exists in the county((, or if the boundary review board does not take jurisdiction over the proposal)). The public hearing shall be held within sixty days of when the county auditor notifies the legislative authority of the sufficiency of the petition if no boundary review board exists in the county, or within ninety days of when notice of the proposal is filed with the boundary review board if the boundary review board fails to take jurisdiction over the proposal. The public hearing may be continued to other days, not extending more than sixty days beyond the initial hearing date. If the boundary review board takes jurisdiction, the county legislative authority shall not hold a public hearing on the proposal.

     (2) If the proposed city or town is located in more than one county, a public hearing shall be held in each of the counties by the county legislative authority or boundary review board. Joint public hearings may be held by two or more county legislative authorities, or two or more boundary review boards.

     Sec. 15. RCW 36.93.150 and 1990 c 273 s 1 are each amended to read as follows:

     The board, upon review of any proposed action, shall take such of the following actions as it deems necessary to best carry out the intent of this chapter:

     (1) ((Approval of)) Approve the proposal as submitted((;)).

     (2) Subject to RCW 35.02.170, ((modification of)) modify the proposal by adjusting boundaries to add or delete territory((: PROVIDED, That)). However, any proposal for annexation ((by the board)) of territory to a town shall be subject to RCW 35.21.010 and the board shall not add additional territory, the amount of which is greater than that included in the original proposal((: PROVIDED FURTHER, That such)). Any modifications shall not interfere with the authority of a city, town, or special purpose district to require or not require preannexation agreements, covenants, or petitions((: AND PROVIDED FURTHER, That)). A board shall not modify the proposed incorporation of a city with an estimated population of seven thousand five hundred or more by removing territory from the proposal, or adding territory to the proposal, that constitutes ten percent or more of the total area included within the proposal before the board((, but)). However, a board shall remove territory in the proposed incorporation that is located outside of an urban growth area or is annexed by a city or town, and may remove territory in the proposed incorporation if a petition or resolution proposing the annexation is filed or adopted that has priority over the proposed incorporation, before the area is established that is subject to this ten percent restriction on removing or adding territory. A board shall not modify the proposed incorporation of a city with a population of seven thousand five hundred or more to reduce the territory in such a manner as to reduce the population below seven thousand five hundred((;)).

     (3) ((Determination of)) Determine a division of assets and liabilities between two or more governmental units where relevant((;)).

     (4) ((Determination)) Determine whether, or the extent to which, functions of a special purpose district are to be assumed by an incorporated city or town, metropolitan municipal corporation, or another existing special purpose district((; or)).

     (5) ((Disapproval of)) Disapprove the proposal except that the board shall not have jurisdiction: (a) To disapprove the dissolution or disincorporation of a special purpose district which is not providing services but shall have jurisdiction over the determination of a division of the assets and liabilities of a dissolved or disincorporated special purpose district; (b) over the division of assets and liabilities of a special purpose district that is dissolved or disincorporated pursuant to chapter 36.96 RCW; nor (c) to disapprove the incorporation of a city with an estimated population of seven thousand five hundred or more, but the board may recommend against the proposed incorporation of a city with such an estimated population.

     Unless the board ((shall disapprove)) disapproves a proposal, it shall be presented under the appropriate statute for approval of a public body and, if required, a vote of the people. A proposal that has been modified shall be presented under the appropriate statute for approval of a public body and if required, a vote of the people. If a proposal, other than that for a city, town, or special purpose district annexation, after modification does not contain enough signatures of persons within the modified area, as are required by law, then the initiating party, parties or governmental unit has thirty days after the modification decision to secure enough signatures to satisfy the legal requirement. If the signatures cannot be secured then the proposal may be submitted to a vote of the people, as required by law.

     The addition or deletion of property by the board shall not invalidate a petition which had previously satisfied the sufficiency of signature provisions of RCW 35.13.130 or 35A.14.120. When the board, after due proceedings held, disapproves a proposed action, such proposed action shall be unavailable, the proposing agency shall be without power to initiate the same or substantially the same as determined by the board, and any succeeding acts intended to or tending to effectuate that action shall be void, but such action may be reinitiated after a period of twelve months from date of disapproval and shall again be subject to the same consideration.

     The board shall not modify or deny a proposed action unless there is evidence on the record to support a conclusion that the action is inconsistent with one or more of the objectives under RCW 36.93.180. Every such determination to modify or deny a proposed action shall be made in writing pursuant to a motion, and shall be supported by appropriate written findings and conclusions, based on the record.

     Sec. 16. RCW 36.93.160 and 1988 c 202 s 40 are each amended to read as follows:

     (1) When the jurisdiction of the boundary review board has been invoked, the board shall set the date, time and place for a public hearing on the proposal. The board shall give at least thirty days' advance written notice of the date, time and place of the hearing to the governing body of each governmental unit having jurisdiction within the boundaries of the territory proposed to be annexed, formed, incorporated, disincorporated, dissolved or consolidated, or within the boundaries of a special district whose assets and facilities are proposed to be assumed by a city or town, and to the governing body of each city within three miles of the exterior boundaries of ((such)) the area and to the proponent of ((such)) the change. Notice shall also be given by publication in any newspaper of general circulation in the area of the proposed boundary change at least three times, the last publication of which shall be not less than five days prior to the date set for the public hearing. Notice shall also be posted in ten public places in the area affected for five days when the area is ten acres or more. When the area affected is less than ten acres, five notices shall be posted in five public places for five days. Notice as provided in this subsection shall include any territory which the board has determined to consider adding in accordance with RCW 36.93.150(2).

     (2) A verbatim record shall be made of all testimony presented at the hearing and upon request and payment of the reasonable costs thereof, a copy of the transcript of ((such)) the testimony shall be provided to any person or governmental unit.

     (3) The chairman upon majority vote of the board or a panel may direct the chief clerk of the boundary review board to issue subpoenas to any public officer to testify, and to compel the production by him of any records, books, documents, public records or public papers.

     (4) Within forty days after the conclusion of the final hearing on the proposal, the board shall file its written decision, setting forth the reasons therefor, with the board of county commissioners and the clerk of each governmental unit directly affected. The written decision shall indicate whether the proposed change is approved, rejected, or modified and, if modified, the terms of ((such)) the modification. The written decision need not include specific data on every factor required to be considered by the board, but shall indicate that all standards were given consideration. Dissenting members of the board shall have the right to have their written dissents included as part of the decision.

     (5) Unanimous decisions of the hearing panel or a decision of a majority of the members of the board shall constitute the decision of the board and shall not be appealable to the whole board. Any other decision shall be appealable to the entire board within ten days. Appeals shall be on the record, which shall be furnished by the appellant, but the board may, in its sole discretion, permit the introduction of additional evidence and argument. Decisions shall be final and conclusive unless within ((ten)) thirty days from the date of ((said)) the action a governmental unit affected by the decision or any person owning real property or residing in the area affected by the decision files ((in the superior court a notice of appeal)) with the growth planning hearings board for that jurisdiction a notice of appeal. Appeals to the growth planning hearings board are limited to determination of whether the decision is consistent with RCW 36.93.157, 36.93.170, and 36.93.180.

     The filing of ((such)) the notice of appeal within ((such)) the time limit shall stay the effective date of the decision of the board until such time as the appeal shall have been adjudicated or withdrawn. ((On appeal the superior court shall not take any evidence other than that contained in the record of the hearing before the board.

     (6) The superior court may affirm the decision of the board or remand the case for further proceedings; or it may reverse the decision if any substantial rights may have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

     (a) In violation of constitutional provisions, or

     (b) In excess of the statutory authority or jurisdiction of the board, or

     (c) Made upon unlawful procedure, or

     (d) Affected by other error of law, or

     (e) Unsupported by material and substantial evidence in view of the entire record as submitted, or

     (f) Arbitrary or capricious.

An aggrieved party may seek appellate review of any final judgment of the superior court in the manner provided by law as in other civil cases.))

     Sec. 17. RCW 36.70A.280 and 1991 sp.s. c 32 s 9 are each amended to read as follows:

     (1) A growth planning hearings board shall hear and determine only those petitions alleging either: (a) That a state agency, county, or city is not in compliance with the requirements of this chapter, or chapter 43.21C RCW as it relates to plans, regulations, and amendments thereto, adopted under RCW 36.70A.040; ((or)) (b) that the twenty-year growth management planning population projections adopted by the office of financial management ((pursuant to)) under RCW 43.62.035 should be adjusted; or (c) that a decision of a county boundary review board is not consistent with the requirements of chapter 36.93 RCW.

     (2) A petition may be filed only by the state, a county, or city that plans under this chapter, a person who has either appeared before the county or city regarding the matter on which a review is being requested or is certified by the governor within sixty days of filing the request with the board, or a person qualified ((pursuant to)) under RCW 34.05.530.

     (3) For purposes of this section "person" means any individual, partnership, corporation, association, governmental subdivision or unit thereof, or public or private organization, or entity of any character.

     (4) When considering a possible adjustment to a growth management planning population projection prepared by the office of financial management, a board shall consider the implications of any such adjustment to the population forecast for the entire state.

     The rationale for any adjustment that is adopted by a board must be documented and filed with the office of financial management within ten working days after adoption.

     If adjusted by a board, a county growth management planning population projection shall only be used for the planning purposes set forth in this chapter and shall be known as a "board adjusted population projection". None of these changes shall affect the official state and county population forecasts prepared by the office of financial management, which shall continue to be used for state budget and planning purposes.

     Sec. 18. RCW 35.02.070 and 1986 c 234 s 9 are each amended to read as follows:

     (1) If a county legislative authority holds a public hearing on a proposed incorporation, it shall establish and define the boundaries of the proposed city or town, being authorized to decrease ((but not)) or increase the area proposed in the petition((, except for adjusting the boundaries out to the right of way line of any portion of a public highway, street, or road pursuant to RCW 35.02.170. Any decrease shall not exceed twenty percent of the area proposed or that portion of the area located within the county: PROVIDED, That the area shall not be so decreased that the number of inhabitants therein shall be less than required by RCW 35.02.010 as now or hereafter amended)) under the same restrictions that a boundary review board may modify the proposed boundaries. The county legislative authority, or the boundary review board if it takes jurisdiction, shall determine the number of inhabitants within the boundaries it has established.

     (2) A county legislative authority shall disapprove the proposed incorporation if, without decreasing the area proposed in the petition, it does not conform with RCW 35.02.010. A county legislative authority may not otherwise disapprove a proposed incorporation.

     (3) A county legislative authority or boundary review board has jurisdiction only over that portion of a proposed city or town located within the boundaries of the county.

     Sec. 19. RCW 35.02.078 and 1986 c 234 s 10 are each amended to read as follows:

     An election shall be held in the area proposed to be incorporated to determine whether the proposed city or town shall be incorporated ((if)) when the boundary review board ((approves or modifies and approves)) takes action on the proposal other than disapproving the proposal, or if the county legislative authority does not disapprove the proposal as provided in RCW 35.02.070. Voters at this election shall determine if the area is to be incorporated.

     The initial election on the question of incorporation shall be held at the next special election date specified in RCW 29.13.020 that occurs sixty or more days after the final public hearing by the county legislative authority or authorities, or ((the approval or modification and approval)) action by the boundary review board or boards. The county legislative authority or authorities shall call for this election and, if the incorporation is approved, shall call for other elections to elect the elected officials as provided in this section. If the vote in favor of the incorporation receives forty percent or less of the total vote on the question of incorporation, no new election on the question of incorporation for the area or any portion of the area proposed to be incorporated may be held for a period of three years from the date of the election in which the incorporation failed.

     If the incorporation is authorized as provided by RCW 35.02.120, separate elections shall be held to nominate and elect persons to fill the various elective offices prescribed by law for the population and type of city or town, and to which it will belong. The primary election to nominate candidates for these elective positions shall be held at the next special election date, as specified in RCW 29.13.020, that occurs sixty or more days after the election on the question of incorporation. The election to fill these elective positions shall be held at the next special election date, as specified in RCW 29.13.020, that occurs thirty or more days after certification of the results of the primary election.

     NEW SECTION. Sec. 20. A new section is added to chapter 43.21C RCW to read as follows:

     Annexation of territory by a city or town is exempted from compliance with this chapter.

     NEW SECTION. Sec. 21. The following acts or parts of acts are each repealed:

     (1) RCW 35.13.175 and 1973 1st ex.s. c 164 s 18 & 1965 c 7 s 35.13.175;

     (2) RCW 35A.14.230 and 1967 ex.s. c 119 s 35A.14.230;

     (3) RCW 36.93.115 and 1982 c 220 s 5; and

     (4) RCW 36.93.152 and 1990 c 273 s 2.

     NEW SECTION. Sec. 22. 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."


    Senator Sutherland moved that the following amendments to the Committee on Government Operations striking amendment be considered simultaneously and be adopted:

    On page 4, after line 26 of the amendment, insert the following:

     "Sec. 8. RCW 35.13.130 and 1990 c 33 s 566 are each amended to read as follows:

     A petition for annexation of an area contiguous to a city or town may be made in writing addressed to and filed with the legislative body of the municipality to which annexation is desired. Except where all the property sought to be annexed is property of a school district, and the school directors thereof file the petition for annexation as in RCW 28A.335.110 authorized, the petition must be signed by the owners of not less than seventy-five percent in value according to the assessed valuation for general taxation of the property for which annexation is petitioned: PROVIDED, That in cities and towns with populations greater than one hundred sixty thousand located east of the Cascade mountains, the owner of tax exempt property may sign an annexation petition and have the tax exempt property annexed into the city or town, but the value of the tax exempt property shall not be used in calculating the sufficiency of the required property owner signatures unless only tax exempt property is proposed to be annexed into the city or town. The petition shall set forth a description of the property according to government legal subdivisions or legal plats which is in compliance with RCW 35.02.170, and shall be accompanied by a plat which outlines the boundaries of the property sought to be annexed. If the legislative body has required the assumption of all or of any portion of city or town indebtedness by the area annexed, and/or the adoption of a comprehensive plan for the area to be annexed, these facts, together with a quotation of the minute entry of such requirement or requirements shall be set forth in the petition. The signing of an outside utility agreement that includes a waiver of a property owner's right not to sign an annexation petition may not be counted as a signature on an annexation petition."

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

     On page 5, after line 3 of the amendment, insert the following:

     "Sec. 9. RCW 35A.14.120 and 1989 c 351 s 6 are each amended to read as follows:

     Proceedings for initiating annexation of unincorporated territory to a charter code city or noncharter code city may be commenced by the filing of a petition of property owners of the territory proposed to be annexed, in the following manner. This method of annexation shall be alternative to other methods provided in this chapter. Prior to the circulation of a petition for annexation, the initiating party or parties, who shall be the owners of not less than ten percent in value, according to the assessed valuation for general taxation of the property for which annexation is sought, shall notify the legislative body of the code city in writing of their intention to commence annexation proceedings. The legislative body shall set a date, not later than sixty days after the filing of the request, for a meeting with the initiating parties to determine whether the code city will accept, reject, or geographically modify the proposed annexation, whether it shall require the simultaneous adoption of a proposed zoning regulation, if such a proposal has been prepared and filed for the area to be annexed as provided for in RCW 35A.14.330 and 35A.14.340, and whether it shall require the assumption of all or of any portion of existing city indebtedness by the area to be annexed. If the legislative body requires the assumption of all or of any portion of indebtedness and/or the adoption of a proposed zoning regulation, it shall record this action in its minutes and the petition for annexation shall be so drawn as to clearly indicate these facts. Approval by the legislative body shall be a condition precedent to circulation of the petition. There shall be no appeal from the decision of the legislative body. A petition for annexation of an area contiguous to a code city may be filed with the legislative body of the municipality to which annexation is desired. It must be signed by the owners, as defined by RCW 35A.01.040(9) (a) through (d), of not less than sixty percent in value, according to the assessed valuation for general taxation of the property for which annexation is petitioned: PROVIDED, That a petition for annexation of an area having at least eighty percent of the boundaries of such area contiguous with a portion of the boundaries of the code city, not including that portion of the boundary of the area proposed to be annexed that is coterminous with a portion of the boundary between two counties in this state, need be signed by only the owners of not less than fifty percent in value according to the assessed valuation for general taxation of the property for which the annexation is petitioned. Such petition shall set forth a description of the property according to government legal subdivisions or legal plats and shall be accompanied by a map which outlines the boundaries of the property sought to be annexed. If the legislative body has required the assumption of all or any portion of city indebtedness by the area annexed or the adoption of a proposed zoning regulation, these facts, together with a quotation of the minute entry of such requirement, or requirements, shall also be set forth in the petition. The signing of an outside utility agreement that includes a waiver of a property owner's right not to sign an annexation petition may not be counted as a signature on an annexation petition."

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


MOTION


    On motion of Senator Sutherland, and there being no objection, the amendments on page 4, after line 26, and page 5, after line 3, to the Committee on Government Operations striking amendment to Substitute House Bill No. 2176 were withdrawn.


MOTION


    Senator Haugen moved that the following amendment by Senators Haugen and Winsley to the Committee on Government Operations striking amendment be adopted:

    On page 9, beginning on line 37 of the amendment, strike all of sections 16 and 17 and insert the following:

     "Sec. 16. RCW 36.93.160 and 1988 c 202 s 40 are each amended to read as follows:

     (1) When the jurisdiction of the boundary review board has been invoked, the board shall set the date, time and place for a public hearing on the proposal. The board shall give at least thirty days' advance written notice of the date, time and place of the hearing to the governing body of each governmental unit having jurisdiction within the boundaries of the territory proposed to be annexed, formed, incorporated, disincorporated, dissolved or consolidated, or within the boundaries of a special district whose assets and facilities are proposed to be assumed by a city or town, and to the governing body of each city within three miles of the exterior boundaries of ((such)) the area and to the proponent of ((such)) the change. Notice shall also be given by publication in any newspaper of general circulation in the area of the proposed boundary change at least three times, the last publication of which shall be not less than five days prior to the date set for the public hearing. Notice shall also be posted in ten public places in the area affected for five days when the area is ten acres or more. When the area affected is less than ten acres, five notices shall be posted in five public places for five days. Notice as provided in this subsection shall include any territory which the board has determined to consider adding in accordance with RCW 36.93.150(2).

     (2) A verbatim record shall be made of all testimony presented at the hearing and upon request and payment of the reasonable costs thereof, a copy of the transcript of ((such)) the testimony shall be provided to any person or governmental unit.

     (3) The chairman upon majority vote of the board or a panel may direct the chief clerk of the boundary review board to issue subpoenas to any public officer to testify, and to compel the production by him of any records, books, documents, public records or public papers.

     (4) Within forty days after the conclusion of the final hearing on the proposal, the board shall file its written decision, setting forth the reasons therefor, with the board of county commissioners and the clerk of each governmental unit directly affected. The written decision shall indicate whether the proposed

change is approved, rejected or modified and, if modified, the terms of ((such)) the modification. The written decision need not include specific data on every factor required to be considered by the board, but shall indicate that all standards were given consideration. Dissenting members of the board shall have the right to have their written dissents included as part of the decision.

     (5) Unanimous decisions of the hearing panel or a decision of a majority of the members of the board shall constitute the decision of the board and shall not be appealable to the whole board. Any other decision shall be appealable to the entire board within ten days. Appeals shall be on the record, which shall be furnished by the appellant, but the board may, in its sole discretion, permit the introduction of additional evidence and argument. Decisions shall be final and conclusive unless within ((ten)) thirty days from the date of ((said)) the action a governmental unit affected by the decision or any person owning real property or residing in the area affected by the decision files in the superior court a notice of appeal.

     The filing of ((such)) the notice of appeal within ((such)) the time limit shall stay the effective date of the decision of the board until such time as the appeal shall have been adjudicated or withdrawn. On appeal the superior court shall not take any evidence other than that contained in the record of the hearing before the board.

     (6) The superior court may affirm the decision of the board or remand the case for further proceedings; or it may reverse the decision if any substantial rights may have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

     (a) In violation of constitutional provisions, or

     (b) In excess of the statutory authority or jurisdiction of the board, or

     (c) Made upon unlawful procedure, or

     (d) Affected by other error of law, or

     (e) Unsupported by material and substantial evidence in view of the entire record as submitted, or

     (f) ((Arbitrary or capricious)) Clearly erroneous.

An aggrieved party may seek appellate review of any final judgment of the superior court in the manner provided by law as in other civil cases."

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

    Debate ensued.

    The President Pro Tempore declared the question before the Senate to be the adoption of the amendment by Senators Haugen and Winsley on page 9, beginning on line 37, to the Committee on Government Operations striking amendment to Substitute House Bill No. 2176.

    The motion by Senator Haugen carried and the amendment to the committee striking amendment was adopted.

    The President Pro Tempore declared the question before the Senate to be the adoption of the Committee on Government Operations striking amendment, as amended, to Substitute House Bill No. 2176.

    The motion by Senator Haugen carried and the Committee on Government Operations striking amendment, as amended was adopted.


MOTIONS


    On motion of Senator Haugen, the following title amendments were considered simultaneously and were adopted:

    On page 1, line 1 of the title, after "annexations;" strike the remainder of the title and insert "amending RCW 35.02.030, 35.02.020, 35.02.001, 35.02.010, 36.93.100, 36.93.150, 36.93.160, 36.70A.280, 35.02.070, and 35.02.078; adding new sections to chapter 35.02 RCW; adding a new section to chapter 35.13 RCW; adding a new section to chapter 35A.14 RCW; adding new sections to chapter 36.93 RCW; adding a new section to chapter 43.21C RCW; creating a new section; repealing RCW 35.13.175, 35A.14.230, 36.93.115, and 36.93.152; and declaring an emergency."

    On page 14, line 34 of the title amendment, after "36.93.160," strike "36.70A.280,"

    On motion of Senator Haugen, the rules were suspended, Substitute House Bill No. 2176, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2176, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2176, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

    Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 48.

    Voting nay: Senator Hargrove - 1.

    SUBSTITUTE HOUSE BILL NO. 2176, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


    President Pritchard assumed the Chair.


SECOND READING


    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2737, by House Committee on Capital Budget (originally sponsored by Representatives Wineberry, Sheldon, Schoesler, Shin and Springer) (by request of Department of Trade and Economic Development)

 

Modifying provisions regarding the Washington economic development finance authority.


    The bill was read the second time.


MOTION


    Senator Skratek moved that the following Committee on Trade, Technology and Economic Development amendment be adopted:

     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."

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the Committee on Trade, Technology and Economic Development striking amendment to Engrossed Substitute House Bill No. 2737.

    The motion by Senator Skratek carried and the committee striking amendment was adopted.


MOTIONS


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

    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."

    On motion of Senator Skratek, the rules were suspended, Engrossed Substitute House Bill No. 2737, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2737, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2737, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 8; Absent, 0; Excused, 0.

    Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, West, Williams, Winsley and Wojahn - 41.

    Voting nay: Senators Cantu, McCaslin, McDonald, Morton, Nelson, Newhouse, Oke and Talmadge - 8.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2737, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.



SECOND READING


    SECOND SUBSTITUTE HOUSE BILL NO. 2210, by House Committee on Appropriations (originally sponsored by Representatives Cothern, L. Johnson, Sommers, J. Kohl, Jacobsen, Ogden, Rust, Ballasiotes, Long and Wang)

 

Creating a thirtieth community and technical college district.


    The bill was read the second time.


MOTIONS


    On motion of Senator Bauer, the following Committee on Higher Education amendment was adopted:

     Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. A new section is added to chapter 28B.50 RCW to read as follows:

     The legislature finds that population growth in north King and south Snohomish counties has created a need to expand higher education and work force training programs for the people living and working in those areas. In keeping with the recommendations of the higher education coordinating board, the legislature intends to help address those education and training needs through the creation of Cascadia Community College, expansion of educational opportunities at Lake Washington Technical College, and support of the University of Washington's branch campus at Bothell-Woodinville. It is further the intention of the legislature, in keeping with the higher education coordinating board recommendations, that the Cascadia Community College and the University of Washington branch campus be collocated, and that the new community college and the University of Washington's branch campus work in partnership to ensure that properly prepared students from community colleges and other institutions are able to transfer smoothly to the branch campus.

     The legislature further finds that a governing board for Cascadia Community College needs to be appointed and confirmed as expeditiously as possible. The legislature intends to work cooperatively with the governor to facilitate the appointment and confirmation of trustees for the college.

     Sec. 2. RCW 28B.50.040 and 1991 c 238 s 23 are each amended to read as follows:

     The state of Washington is hereby divided into ((twenty-nine)) thirty college districts as follows:

     (1) The first district shall encompass the counties of Clallam and Jefferson;

     (2) The second district shall encompass the counties of Grays Harbor and Pacific;

     (3) The third district shall encompass the counties of Kitsap and Mason;

     (4) The fourth district shall encompass the counties of San Juan, Skagit and Island;

     (5) The fifth district shall encompass Snohomish county except for the Northshore common school district and that portion encompassed by the twenty-third district created in subsection (23) of this section: PROVIDED, That the fifth district shall encompass the Everett Community College;

     (6) The sixth district shall encompass the present boundaries of the common school districts of Seattle and Vashon Island, King county;

     (7) The seventh district shall encompass the present ((boundaries)) boundary of the common school district((s)) of Shoreline in King county ((and Northshore in King and Snohomish counties));

     (8) The eighth district shall encompass the present boundaries of the common school districts of ((Lake Washington,)) Bellevue, Issaquah, ((Lower Snoqualmie,)) Mercer Island, Skykomish and Snoqualmie, King county;

     (9) The ninth district shall encompass the present boundaries of the common school districts of Federal Way, Highline and South Central, King county;

     (10) The tenth district shall encompass the present boundaries of the common school districts of Auburn, Black Diamond, Renton, Enumclaw, Kent, Lester and Tahoma, King county, and the King county portion of Puyallup common school district No. 3;

     (11) The eleventh district shall encompass all of Pierce county, except for the present boundaries of the common school districts of Tacoma and Peninsula;

     (12) The twelfth district shall encompass Lewis county, the Rochester common school district No. 401, the Tenino common school district No. 402 of Thurston county, and the Thurston county portion of the Centralia common school district No. 401;

     (13) The thirteenth district shall encompass the counties of Cowlitz, and Wahkiakum;

     (14) The fourteenth district shall encompass the counties of Clark, Skamania and that portion of Klickitat county not included in the sixteenth district;

     (15) The fifteenth district shall encompass the counties of Chelan, Douglas and Okanogan;

     (16) The sixteenth district shall encompass the counties of Kittitas, Yakima, and that portion of Klickitat county included in United States census divisions 1 through 4;

     (17) The seventeenth district shall encompass the counties of Ferry, Lincoln (except consolidated school district 105-157-166J and the Lincoln county portion of common school district 167-202), Pend Oreille, Spokane, Stevens and Whitman;

     (18) The eighteenth district shall encompass the counties of Adams and Grant, and that portion of Lincoln county comprising consolidated school district 105-157-166J and common school district 167-202;

     (19) The nineteenth district shall encompass the counties of Benton and Franklin;

     (20) The twentieth district shall encompass the counties of Asotin, Columbia, Garfield and Walla Walla;

     (21) The twenty-first district shall encompass Whatcom county;

     (22) The twenty-second district shall encompass the present boundaries of the common school districts of Tacoma and Peninsula, Pierce county;

     (23) The twenty-third district shall encompass that portion of Snohomish county within such boundaries as the state board for community and technical colleges shall determine: PROVIDED, That the twenty-third district shall encompass the Edmonds Community College;

     (24) The twenty-fourth district shall encompass all of Thurston county except the Rochester common school district No. 401, the Tenino common school district No. 402, and the Thurston county portion of the Centralia common school district No. 401;

     (25) The twenty-fifth district shall encompass all of Whatcom county;

     (26) The twenty-sixth district shall encompass the Northshore, Lake Washington, Bellevue, Mercer Island, Issaquah, Riverview, Snoqualmie Valley and Skykomish school districts;

     (27) The twenty-seventh district shall encompass the Renton, Kent, Auburn, Tahoma, and Enumclaw school districts and a portion of the Seattle school district described as follows: Commencing at a point established by the intersection of the Duwamish river and the south boundary of the Seattle Community College District (number six) and thence north along the centerline of the Duwamish river to the west waterway; thence north along the centerline of the west waterway to Elliot Bay; thence along Elliot Bay to a line established by the intersection of the extension of Denny Way to Elliot Bay; thence east along the line established by the centerline of Denny Way to Lake Washington; thence south along the shoreline of Lake Washington to the south line of the Seattle Community College District; and thence west along the south line of the Seattle Community College District to the point of beginning;

     (28) The twenty-eighth district shall encompass all of Pierce county; ((and))

     (29) The twenty-ninth district shall encompass all of Pierce county; and

     (30) The thirtieth district shall encompass the present boundaries of the common school districts of Lake Washington and Riverview in King county and Northshore in King and Snohomish counties.

     Sec. 3. RCW 28B.45.020 and 1989 1st ex.s. c 7 s 3 are each amended to read as follows:

     The University of Washington is responsible for ensuring the expansion of upper-division and graduate educational programs in the central Puget Sound area under rules or guidelines adopted by the higher education coordinating board. The University of Washington shall meet that responsibility through the operation of at least two branch campuses. One branch campus shall be located in the Tacoma area. ((Another branch campus shall be located in the Bothell-Woodinville area.)) Another branch campus shall be collocated with Cascadia Community College in the Bothell-Woodinville area.

     NEW SECTION. Sec. 4. A new section is added to chapter 28B.50 RCW to read as follows:

     There is hereby created a board of trustees for district thirty and Cascadia Community College. The members of the board shall be appointed pursuant to the provisions of RCW 28B.50.100.

     NEW SECTION. Sec. 5. 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 motion of Senator Bauer, the following title amendment was adopted:

    On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "amending RCW 28B.50.040 and 28B.45.020; adding new sections to chapter 28B.50 RCW; and declaring an emergency."


MOTION


    On motion of Senator Bauer, the rules were suspended, Second Substitute House Bill No. 2210, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Debate ensued.

    The President declared the question before the Senate to be the roll call on the final passage of Second Substitute House Bill No. 2210, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Second Substitute House Bill No. 2210, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 32; Nays, 17; Absent, 0; Excused, 0.

    Voting yea: Senators Bauer, Cantu, Deccio, Drew, Erwin, Fraser, Gaspard, Haugen, Loveland, Ludwig, McAuliffe, McDonald, Nelson, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, Williams, Winsley and Wojahn - 32.

    Voting nay: Senators Amondson, Anderson, Bluechel, Franklin, Hargrove, Hochstatter, McCaslin, Moore, Morton, Moyer, Newhouse, Niemi, Oke, Schow, Sellar, Talmadge and West - 17.

    SECOND SUBSTITUTE HOUSE BILL NO. 2210, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    HOUSE BILL NO. 2275, by Representatives Kessler, H. Myers, Springer, Jones, Morris, Sheldon, Wineberry, King, Campbell, Holm, Chandler and Foreman (by request of Department of Community Development)

 

Modifying the emergency mortgage and rental assistance program for dislocated forest products workers.


    The bill was read the second time.


MOTION


    Senator Skratek moved that the following Committee on Trade, Technology and Economic Development amendment be adopted:

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 43.63A.600 and 1993 c 280 s 77 are each amended to read as follows:

     (1) The department of community, trade, and economic development, as a member of the agency timber task force and in consultation with the economic recovery coordination board, shall establish and administer the emergency mortgage and rental assistance program. The department shall identify the communities most adversely affected by reductions in timber harvest levels and shall prioritize assistance under this program to these communities. The department shall work with the department of social and health services and the timber recovery coordinator to develop the program in timber impact areas. Organizations eligible to receive grant funds for distribution under the program are those organizations that are eligible to receive assistance through the Washington housing trust fund. The department shall disburse the funds to eligible local organizations as grants. The local organizations shall use the funds to make grants or loans as specified in RCW 43.63A.600 through 43.63A.640. If funds are disbursed as loans, the local organization shall establish a revolving grant and loan fund with funds received as loan repayments and shall continue to make grants or loans or both grants and loans from funds received as loan repayments to dislocated forest products workers eligible under the provisions of RCW 43.63A.600 through 43.63A.640 and to other persons residing in timber impact areas who meet the requirements of RCW 43.63A.600 through 43.63A.640.

     (2) The goals of the program are to:

     (a) Provide temporary emergency mortgage loans or rental assistance grants or loans on behalf of dislocated forest products workers in timber impact areas who are unable to make ((current)) mortgage, property tax, or rental payments on their permanent residences and are subject to immediate eviction for nonpayment of mortgage installments, property taxes, or nonpayment of rent;

     (b) Prevent the dislocation of individuals and families from their permanent residences and their communities; and

     (c) Maintain economic and social stability in timber impact areas.

     Sec. 2. RCW 43.63A.610 and 1991 c 315 s 24 are each amended to read as follows:

     Emergency mortgage assistance shall be provided under the following general guidelines:

     (1) Loans provided under the program shall not exceed an amount equal to twenty-four months of mortgage payments.

     (2) The maximum loan amount allowed under the program shall not exceed twenty thousand dollars.

     (3) Loans shall be made to applicants who meet specific income guidelines established by the department.

     (4) Loan payments shall be made directly to the mortgage lender.

     (5) Loans shall be granted on a first-come, first-served basis.

     (6) Repayment of loans provided under the program shall be made to eligible local organizations, and must not take more than twenty years. Funds repaid to the program shall be used as grants or loans under the provisions of RCW 43.63A.600 through 43.63A.640.

     (((7) The department may provide for emergency short-term loans.))

     Sec. 3. RCW 43.63A.620 and 1991 c 315 s 25 are each amended to read as follows:

     Emergency rental assistance shall be provided under the following general guidelines:

     (1) Rental assistance provided under the program may be in the form of loans or grants and shall not exceed an amount equal to twenty-four months of ((mortgage)) rental payments.

     (2) Rental assistance shall be made to applicants who meet specific income guidelines established by the department.

     (3) Rental payments shall be made directly to the landlord.

     (4) Rental assistance shall be granted on a first-come, first-served basis.

     Sec. 4. RCW 43.63A.630 and 1991 c 315 s 26 are each amended to read as follows:

     To be eligible for assistance under the program, an applicant must:

     (1) Be unable to keep mortgage or rental payments current, due to a loss of employment, and shall be at significant risk of eviction;

     (2) Have his or her permanent residence located in an eligible community;

     (3) If requesting emergency mortgage assistance, be the owner of an equitable interest in the permanent residence and intend to reside in the home being financed;

     (4) Be actively seeking new employment or be enrolled in a training program approved by the director; and

     (5) Submit an application for assistance to an organization eligible to receive funds under RCW 43.63A.600 ((by June 30, 1996)).

     Sec. 5. RCW 43.63A.640 and 1991 c 315 s 27 are each amended to read as follows:

     The department shall carry out the following duties:

     (1) Administer the program;

     (2) Identify organizations eligible to receive funds to implement the program;

     (3) Develop and adopt the necessary rules and procedures for implementation of the program and for dispersal of program funds to eligible organizations;

     (4) Establish the interest rate for repayment of loans at two percent below the market rate;

     (5) Work with lending institutions and social service providers in the eligible communities to assure that all eligible persons are informed about the program;

     (6) Utilize federal and state programs that complement or facilitate carrying out the program;

     (7) ((Submit a report to the senate commerce and labor committee and the house of representatives housing committee by January 31, 1992)) Ensure that local eligible organizations that dissolve or become ineligible assign their program funds, rights to loan repayments, and loan security instruments, to the government of the county in which the local organization is located. If the county government accepts the program assets described in this subsection, it shall act as a local eligible organization under the provisions of RCW 43.63A.600 through 43.63A.640. If the county government declines to participate, the program assets shall revert to the department.

     NEW SECTION. Sec. 6. This act shall take effect July 1, 1994."

    Debate ensued.

    The President declared the question before the Senate to be the adoption of the Committee on Trade, Technology and Economic Development striking amendment to House Bill No. 2275.

    The motion by Senator Skratek carried and the Committee on Trade, Technology and Economic Development striking amendment was adopted.


MOTIONS


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

    On page 1, line 2 of the title, after "workers;" strike the remainder of the title and insert "amending RCW 43.63A.600, 43.63A.610, 43.63A.620, 43.63A.630, and 43.63A.640; and providing an effective date."

    On motion of Senator Skratek, the rules were suspended, House Bill No. 2275, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTIONS


    On motion of Senator Bluechel, Senator Amondson was excused.

    On motion of Senator Loveland, Senator Vognild was excused.

    The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2275, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of House Bill No. 2275, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

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

    Excused: Senators Amondson and Vognild - 2.

    HOUSE BILL NO. 2275, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


    On motion of Senator Loveland, Senator Hargrove was excused.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 2274, by House Committee on Education (originally sponsored by Representatives Quall, Carlson, R. Meyers, Brough, Basich, Karahalios, Peery, Kessler, Eide, L. Johnson, Linville, Shin, Hansen, Talcott, Long, Van Luven, Cooke, Veloria, Scott, Johanson, Finkbeiner, Dunshee, Schoesler, Mastin, Pruitt, Wineberry, King, Conway, Kremen, Springer and H. Myers)

 

Establishing high school credit equivalencies for credits earned in institutions of higher education.


    The bill was read the second time.


MOTIONS


    On motion of Senator Bauer, the following Committee on Higher Education amendment was adopted:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. A new section is added to chapter 28A.305 RCW to read as follows:

     In exercising the state board of education's authority to establish high school credit equivalencies for credits earned at institutions of higher education, the state board of education has highlighted the need for an ongoing forum that encourages the various education entities to provide each other with advice and counsel as rules and policies are adopted that have implications for students in all sectors of the state's education system. The legislature appreciates the willingness of the state board of education to consider any recommendations from the task force created in section 2 of this act and to delay until September 1995, implementation of its rule establishing course equivalencies. Ultimately the issue of credit equivalencies must be decided within the broad context of education reform and the desire of the legislature to provide options for students to move through the system without meeting bureaucratic barriers to individual educational success.

     NEW SECTION. Sec. 2. A new section is added to chapter 28A.305 RCW to read as follows:

     (1) By May 1, 1994, or as soon as possible thereafter, the higher education coordinating board and the state board of education shall convene a task force creating a forum for ongoing discussion of curriculum issues that transect higher education and the common schools. In selecting members of the task force, the boards shall consult the office of the superintendent of public instruction, the commission on student learning, the state board for community and technical colleges, the work force training and education coordinating board, the Washington council on high school-college relations, representatives of the four-year institutions, representatives of the school directors, the school and district administrators, teachers, higher education faculty, students, counselors, vocational directors, parents, and other interested organizations. The process shall be designed to provide advice and counsel to the appropriate boards on topics that may include but are not limited to: (a) The changing nature of educational instruction and crediting, and awarding appropriate credit for knowledge and competencies learned in a variety of ways in both institutions of higher education and high schools; (b) options for students to enroll in programs and institutions that will best meet the students' needs and educational goals; and (c) articulation agreements between institutions of higher education and high schools.

     (2) By December 30, 1994, after considering the advice of the task force created in this section, the higher education coordinating board and the state board of education shall report the recommendations on establishing credit equivalencies to the house of representatives and senate education and higher education committees.

     NEW SECTION. Sec. 3. A new section is added to chapter 28B.80 RCW to read as follows:

     The higher education coordinating board shall work with the state board of education to establish the task force under section 2 of this act.

     NEW SECTION. Sec. 4. 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 motion of Senator Bauer, the following title amendment was adopted:

    On page 1, line 2 of the title, after "education;" strike the remainder of the title and insert "adding new sections to chapter 28A.305 RCW; adding a new section to chapter 28B.80 RCW; and declaring an emergency."


MOTION


    On motion of Senator Bauer, the rules were suspended, Substitute House Bill No. 2274, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2274, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2274, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

    Voting yea: Senators Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, McDonald, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, West, Williams, Winsley and Wojahn - 45.

    Absent: Senator Moore - 1.

    Excused: Senators Amondson, Hargrove and Vognild - 3.

    SUBSTITUTE HOUSE BILL NO. 2274, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


    On motion of Senator Loveland, Senator Ludwig was excused.


SECOND READING


    SUBSTITUTE HOUSE BILL NO. 1159, by House Committee on Local Government (originally sponsored by Representatives H. Myers, Edmondson, Ludwig, Scott, Campbell, Kremen, Rayburn and Johanson)

 

Disclosing improper governmental action.


    The bill was read the second time.




MOTIONS


    On motion of Senator Drew, the following Committee on Government Operations amendment was adopted:

    Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 42.41.020 and 1992 c 44 s 2 are each amended to read as follows:

     Unless the context clearly requires othe