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FIFTY-NINTH DAY


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MORNING SESSION


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Senate Chamber, Olympia, Wednesday, March 9, 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, McAuliffe, Pelz, Rinehart and Talmadge. On motion of Senator Oke, Senator Anderson was excused. On motion of Senator Drew, Senators McAuliffe, Pelz, Rinehart and Talmadge were excused.

      The Sergeant at Arms Color Guard, consisting of Pages Jeremy Ferguson-Shuck and Jennifer McKibbin, presented the Colors. Jim Cammack of the Baha'i Assembly of Thurston County, 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.


SIGNED BY THE PRESIDENT


      The President signed:

      SECOND SUBSTITUTE SENATE BILL NO. 5372,

      THIRD SUBSTITUTE SENATE BILL NO. 5918.


MOTION


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


SENATE RESOLUTION 1994-8678


By Senators Bauer and Snyder


      WHEREAS, The Washington State Legislature in 1981 established the Washington Scholars Program to recognize selected senior students from Washington public and private high schools for their academic achievements, leadership abilities, and community service contributions; and

      WHEREAS, Three senior students are selected from each of the state's forty-nine legislative districts by a review committee composed of distinguished secondary and postsecondary educators; and

      WHEREAS, The students selected for special recognition as Washington Scholars have distinguished themselves by their energy and diversity as student leaders; as participants in music, debate, sports, and other programs; and through valuable service to their communities; and

      WHEREAS, The families of the students have nurtured and supported the interests and talents of their children; and

      WHEREAS, The state of Washington benefits from the accomplishments of these caring and gifted individuals, not only as students, but as citizens of our communities and our state;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate commend the families of these students for their encouragement and support; and

      BE IT FURTHER RESOLVED, That the Washington Scholars be recognized and congratulated for their hard work, dedication, and maturity in achieving this noteworthy accomplishment; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate immediately transmit copies of this resolution to all of the Washington scholars from each of the forty-nine legislative districts.


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


MESSAGE FROM THE HOUSE


March 8, 1994


MR. PRESIDENT:

      The House has adopted HOUSE CONCURRENT RESOLUTION NO. 4437, and the same is herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


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


INTRODUCTION AND FIRST READING OF HOUSE BILL

 

HCR 4437          by Representatives Finkbeiner, Campbell, B. Thomas, J. Kohl, Eide, Lemmon, Johanson, Cothern, Flemming, L. Thomas, Shin, Caver, Hansen, Conway, Backlund, Bray, Moak, Foreman, Dunshee, Romero, Kessler, L. Johnson, Quall, Talcott, Brough, Patterson, G. Cole, Casada, Tate and Anderson

 

Providing electronic access to legislative information.


MOTION


      On motion of Senator Spanel, the rules were suspended, House Concurrent Resolution No. 4437 was advanced to second reading and placed on the second reading calendar.


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


SECOND READING


      HOUSE CONCURRENT RESOLUTION NO. 4437, by Representatives Finkbeiner, Campbell, B. Thomas, J. Kohl, Eide, Lemmon, Johanson, Cothern, Flemming, L. Thomas, Shin, Caver, Hansen, Conway, Backlund, Bray, Moak, Foreman, Dunshee, Romero, Kessler, L. Johnson, Quall, Talcott, Brough, Patterson, G. Cole, Casada, Tate and Anderson

 

Providing electronic access to legislative information.


      The concurrent resolution was read the second time. 


MOTION


      Senator Sutherland moved that the rules be suspended and House Concurrent Resolution No. 4437 be advanced to third reading, the second reading considered the third and the concurrent resolution be placed on final passage.

      Debate ensued.


POINT OF INQUIRY


      Senator Sutherland: "Senator Cantu, our resolution, in addition to the language that is included on line four, which says that information such as bills, bill digests, bill reports, etc., be included, also included RCW's, Administrative Codes, the Constitution, those kinds of things. Since this resolution doesn't include those words, but it does include information such as, would you interpret this resolution as also authorizing the Joint Legislative Assistance Committee, of which you are a member, to look at putting the WAC's, the RCW's, the Constitution and other things available for public access?"

      Senator Cantu: "Thank you, Senator Sutherland. I would interpret this that the Legislative Systems Committee can look at all of the aspects as we currently do today on LEGLink. We don't have some of them, but no, I would see that we would offer the services that would be of most interest to the general public. My interpretation of the language does in no way limit us to expand those horizons into the other things."

      The President declared the question before the Senate to be the adoption of House Concurrent Resolution No. 4437.

      HOUSE CONCURRENT RESOLUTION NO. 4437 was adopted by voice vote.


SECOND READING

GUBERNATORIAL APPOINTMENT


MOTION


      On motion of Senator Adam Smith, Gubernatorial Appointment No. 9334, Napoleon Caldwell, as a member of the Sentencing Guidelines Commission, was confirmed.


APPOINTMENT OF NAPOLEON CALDWELL


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

      Voting yea: Senators Amondson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, 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, Vognild, West, Williams, Winsley and Wojahn - 44.

      Excused: Senators Anderson, McAuliffe, Pelz, Rinehart and Talmadge - 5.


MOTION


      Senator Gaspard moved that the rules be suspended and the Committee on Ways and Means be relieved of further consideration of01371

 House Bill No. 2665 and that the bill be placed on second reading.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Gaspard to suspend the rules and relieve the Committee on Ways and Means of House Bill No. 2665 and to place the bill on the second reading calendar.

      The motion by Senator Gaspard carried and House Bill No. 2665 was placed on the second reading calendar.


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


MOTION


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


SENATE RESOLUTION 1994-8686


By Senators Fraser and Amondson


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

      WHEREAS, The Tumwater High School T-Birds Football Team exhibited the highest level of excellence in winning the 1993 Washington State High School Football "AAA" Championship, their first year in "AAA" league play action; and

      WHEREAS, The Tumwater High School T-Birds Football Team has an outstanding record of having been the Washington State High School Football "AA" Champions in 1990, 1989 and 1987; and

      WHEREAS, The Tumwater High School T-Birds Football Team has an incredible record of also having been in the Washington State High School Football "AA" playoffs in 1992, 1991, 1990, 1989, 1988, 1987, 1986, 1983, 1980 and 1977; and

      WHEREAS, The Tumwater High School T-Birds Football Team has an impressive record of being the "AAA" Greater St. Helens Football League Champions in 1993 and the "AA" Greater St. Helens Football League Champions in 1992, 1990, 1989, 1988, 1987, 1986, 1977, 1964 and 1963; and

      WHEREAS, The Tumwater High School T-Birds Football Team demonstrated amazing skill and admirable sportsmanship in achieving these outstanding accomplishments; and

      WHEREAS, Head Coach Sid Otton was the Greater St. Helens Football League's "Coach of the Year;" and

      WHEREAS, Head Coach Sid Otton and Assistant Coaches Pat Alexander, Steve Shoun, Randy Leeper, Jamie Weeks, Rob Hinkle, Gary Taylor, Merle Nelson, Tim Graham, Greg Hargrove, Charles Camper and Hildo Rodriguez and all the players led by Team Captains JD Cowan, Ed Marson, Adam Hannukaine and Jesse Lambert, share in the Tumwater High School T-Birds Football Team's success by combining outstanding coaching with outstanding playing; and

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

      WHEREAS, The inspiring individual and team achievements of the 1993 Tumwater High School T-Birds Football Team will always be remembered when commemorating their winning year; and

      WHEREAS, The victorious Tumwater High School T-Birds Football Team is a source of great pride to all the citizens of the state of Washington;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington honors the 1993 Tumwater High School T-Birds Football Team; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the 1993 Tumwater High School T-Birds Football Team Head Coach, Sid Otton, and the Principal of Tumwater High School, Bob Kuehl.


      Senators Fraser and Amondson spoke to Senate Resolution 1994-8686.


INTRODUCTION OF SPECIAL GUESTS


      The President welcomed and introduced the 1993 Washington State High School Football "AAA" champions, the Tumwater High School T-Birds and their coaches who were seated in the gallery.


INTRODUCTION OF SPECIAL GUESTS


      Senator Newhouse welcomed and introduced the 1994 Washington State High School Boys' Basketball Class "A" champions and their coaches from Zillah who were seated in the gallery.


MOTION


      At 9:41 a.m., on motion of Senator Gaspard, the Senate recessed until 1:30 p.m.


      The Senate was called to order at 1:37 p.m. by President Pritchard.

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


MESSAGE FROM THE HOUSE


March 9, 1994


MR. PRESIDENT:

      The House grants the request of the Senate for a conference on SUBSTITUTE SENATE BILL NO. 6007. The Speaker has appointed the following members as conferees: Representatives Morris, Mastin and Long.

MARILYN SHOWALTER, Chief Clerk


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


REPORT OF STANDING COMMITTEE

GUBERNATORIAL APPOINTMENT


March 9, 1994

 

GA 9447            ROBERT TURNER, appointed March 2, 1994, for a term ending at the Governor's pleasure, as Director of the Department of Fish and Wildlife.

                           Reported by the Committee on Natural Resources


      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Owen, Chair; Hargrove, Vice Chair; Amondson, Franklin, Haugen, Oke, Sellar, L. Smith, Snyder and Spanel.


MOTION


      On motion of Senator Spanel, the rules were suspended and Gubernatorial Appointment No. 9447 was advanced to second reading and placed on the second reading calendar.


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


MOTION


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


SENATE RESOLUTION 1994-8697


By Senator Owen


      WHEREAS, Heart disease is one of the leading causes of death for Americans; and

      WHEREAS, Steven H. Fleck, of Belfair Washington, a man diagnosed with terminal heart disease; and

      WHEREAS, Steven Fleck will soon attempt a ten thousand mile solo cross-country ride on his Harley-Davidson to draw attention to the work of the American Heart Association in the prevention and cure of heart disease; and

      WHEREAS, Mr. Fleck, known as the "Heart Rider," is courageously and selflessly devoting the rest of his life to trying to reach as many people as possible with his message;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate recognize and honor Mr. Steven H. Fleck and the American Heart Association.


INTRODUCTION OF SPECIAL GUEST


      The President welcomed and introduced Mr. and Mrs. Steven Fleck who were seated in the gallery.


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


CONFERENCE COMMITTEE REPORT


EHB 2347                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Changing the energy building code for glazing, doors, and skylights


MR. PRESIDENT:

MR. SPEAKER:

      We of your Conference Committee, to whom was referred ENGROSSED HOUSE BILL NO. 2347, Changing the energy building code for glazing, doors, and skylights, have had the same under consideration and we recommend that:

      That the following Senate Energy and Utilities Committee Amendment adopted March 2, 1994, be adopted with the following change:

      On page 3, line 23 of the Senate Energy and Utilities Committee amendment after "(c)" strike all language through "subsection." on page 3, line 26, and insert "((For log built homes with space heat other than electric resistance, the building code council shall establish equivalent thermal performance standards consistent with the standards and maximum glazing areas of (b) of this subsection.)) The requirements of (b)(ii) of this subsection do not apply to residences with log or solid timber walls with a minimum average thickness of three and one-half inches and with space heat other than electric resistance."

       Committee on Energy and Utilities Amendment

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 19.27A.020 and 1990 c 2 s 3 are each amended to read as follows:

       (1) No later than January 1, 1991, the state building code council shall promulgate rules to be known as the Washington state energy code as part of the state building code.

       (2) The council shall follow the legislature's standards set forth in this section to promulgate rules to be known as the Washington state energy code. The Washington state energy code shall be designed to require new buildings to meet a certain level of energy efficiency, but allow flexibility in building design, construction, and heating equipment efficiencies within that framework. The Washington state energy code shall be designed to allow space heating equipment efficiency to offset or substitute for building envelope thermal performance.

       (3) The Washington state energy code shall take into account regional climatic conditions. Climate zone 1 shall include all counties not included in climate zone 2. Climate zone 2 includes: Adams, Chelan, Douglas, Ferry, Grant, Kittitas, Lincoln, Okanogan, Pend Oreille, Spokane, Stevens, and Whitman counties.

       (4) The Washington state energy code for residential buildings shall require:

       (a) New residential buildings that are space heated with electric resistance heating systems to achieve energy use equivalent to that used in typical buildings constructed with:

       (i) Ceilings insulated to a level of R-38. The code shall contain an exception which permits single rafter or joist vaulted ceilings insulated to a level of R-30 (R value includes insulation only);

       (ii) In zone 1, walls insulated to a level of R-19 (R value includes insulation only), or constructed with two by four members, R-13 insulation batts, R-3.2 insulated sheathing, and other normal assembly components; in zone 2 walls insulated to a level of R-24 (R value includes insulation only), or constructed with two by six members, R-22 insulation batts, R-3.2 insulated sheathing, and other normal construction assembly components; for the purpose of determining equivalent thermal performance, the wall U-value shall be 0.058 in zone 1 and 0.044 in zone 2;

       (iii) Below grade walls, insulated on the interior side, to a level of R-19 or, if insulated on the exterior side, to a level of R-10 in zone 1 and R-12 in zone 2 (R value includes insulation only);

       (iv) Floors over unheated spaces insulated to a level of R-30 (R value includes insulation only);

       (v) Slab on grade floors insulated to a level of R-10 at the perimeter;

       (vi) Double glazed windows with values not more than U-0.4;




       (vii) In zone 1 the glazing area may be up to twenty-one percent of floor area and in zone 2 the glazing area may be up to seventeen percent of floor area where consideration of the thermal resistance values for other building components and solar heat gains through the glazing result in thermal performance equivalent to that achieved with thermal resistance values for other components determined in accordance with the equivalent thermal performance criteria of (a) of this subsection and glazing area equal to fifteen percent of the floor area. Throughout the state for the purposes of determining equivalent thermal performance, the maximum glazing area shall be fifteen percent of the floor area; and

       (viii) Exterior doors insulated to a level of R-5; or an exterior wood door with a thermal resistance value of less than R-5 and values for other components determined in accordance with the equivalent thermal performance criteria of (a) of this subsection.

       (b) New residential buildings which are space-heated with all other forms of space heating to achieve energy use equivalent to that used in typical buildings constructed with:

       (i) Ceilings insulated to a level of R-30 in zone 1 and R-38 in zone 2 the code shall contain an exception which permits single rafter or joist vaulted ceilings insulated to a level of R-30 (R value includes insulation only);

       (ii) Walls insulated to a level of R-19 (R value includes insulation only), or constructed with two by four members, R-13 insulation batts, R-3.2 insulated sheathing, and other normal assembly components;

       (iii) Below grade walls, insulated on the interior side, to a level of R-19 or, if insulated on the exterior side, to a level of R-10 in zone 1 and R-12 in zone 2 (R value includes insulation only);

       (iv) Floors over unheated spaces insulated to a level of R-19 in zone 1 and R-30 in zone 2 (R value includes insulation only);

       (v) Slab on grade floors insulated to a level of R-10 at the perimeter;

       (vi) Heat pumps with a minimum heating season performance factor (HSPF) of 6.8 or with all other energy sources with a minimum annual fuel utilization efficiency (AFUE) of seventy-eight percent;

       (vii) Double glazed windows with values not more than U-0.65 in zone 1 and U-0.60 in zone 2. The state building code council, in consultation with the state energy office, shall review these U-values, and, if economically justified for consumers, shall amend the Washington state energy code to improve the U-values by December 1, 1993. The amendment shall not take effect until July 1, 1994; and

       (viii) In zone 1, the maximum glazing area shall be twenty-one percent of the floor area. In zone 2 the maximum glazing area shall be seventeen percent of the floor area. Throughout the state for the purposes of determining equivalent thermal performance, the maximum glazing area shall be fifteen percent of the floor area.

       (c) For log built homes with space heat other than electric resistance, the building code council shall establish equivalent thermal performance standards consistent with the standards and maximum glazing areas of (b) of this subsection.

       (d) The state building code council may approve an energy code for pilot projects of residential construction that use innovative energy efficiency technologies intended to result in savings that are greater than those realized in the levels specified in this section.

       (5) U-values for glazing shall be determined using the area weighted average of all glazing in the building. ((U-values for glazing are the tested values for thermal transmittance due to conduction resulting from either the American architectural manufacturers' association (AAMA) 1503.1 test procedure or the American society for testing materials (ASTM) C236 or C976 test procedures. Testing shall be conducted under established winter horizontal heat flow test conditions using the fifteen miles per hour wind speed perpendicular to the exterior surface of the glazing as specified under AAMA 1503.1 and product sample sizes specified under AAMA 1503.1. The AAMA 1503.1 testing must be conducted by an AAMA certified testing laboratory. The ASTM C236 or C976 testing U-values include any tested values resulting from a future revised AAMA 1503.1 test procedure.)) U-values for vertical glazing shall be determined, certified, and labeled in accordance with the appropriate national fenestration rating council (NFRC) standard, as determined and adopted by the state building code council. Certification of U-values shall be conducted by a certified, independent agency licensed by the NFRC. The state building code council may develop and adopt alternative methods of determining, certifying, and labeling U-values for vertical glazing that may be used by fenestration manufacturers if determined to be appropriate by the council. The state building code council shall review and consider the adoption of the NFRC standards for determining, certifying, and labeling U-values for doors and skylights when developed and published by the NFRC. The state building code council may develop and adopt appropriate alternative methods for determining, certifying, and labeling U-values for doors and skylights. U-values for doors and skylights determined, certified, and labeled in accordance with the appropriate NFRC standard shall be acceptable for compliance with the state energy code. Sealed insulation glass, where used, shall conform to, or be in the process of being tested for, ASTM E-774-81 ((level)) class A or better. ((The state building code council shall maintain a list of the tested U-values for glazing products available in the state.))

       (6) The minimum state energy code for new nonresidential buildings shall be the Washington state energy code, 1986 edition, as amended.

       (7)(a) Except as provided in (b) of this subsection, the Washington state energy code for residential structures shall preempt the residential energy code of each city, town, and county in the state of Washington.

       (b) The state energy code for residential structures does not preempt a city, town, or county's energy code for residential structures which exceeds the requirements of the state energy code and which was adopted by the city, town, or county prior to March 1, 1990. Such cities, towns, or counties may not subsequently amend their energy code for residential structures to exceed the requirements adopted prior to March 1, 1990.

       (8) The state building code council shall consult with the state energy office as provided in RCW 34.05.310 prior to publication of proposed rules. The state energy office shall review the proposed rules for consistency with the guidelines adopted in subsection (4) of this section. The director of the state energy office shall recommend to the state building code council any changes necessary to conform the proposed rules to the requirements of this section.

       (9) The state building code council shall conduct a study of county and city enforcement of energy codes in the state. In conducting the study, the council shall conduct public hearings at designated council meetings to seek input from interested individuals and organizations, and to the extent possible, hold these meetings in conjunction with adopting rules under this section. The study shall include recommendations as to how code enforcement may be improved. The findings of the study shall be submitted in a report to the legislature no later than January 1, 1991.

       (10) If any electric utility providing electric service to customers in the state of Washington purchases at least one percent of its firm energy load from a federal agency, pursuant to section 5.(b)(1) of the Pacific Northwest electric power planning and conservation act (P.L. 96-501), and such utility is unable to obtain from that agency at least fifty percent of the funds for payments required by RCW 19.27A.035, the amendments to this section by chapter 2, Laws of 1990 shall be null and void, and the 1986 state energy code shall be in effect, except that a city, town, or county may enforce a local energy code with more stringent energy requirements adopted prior to March 1, 1990. This subsection shall expire June 30, 1995.

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

       On page 1, line 2 of the title, after "products;" strike the remainder of the title and insert "amending RCW 19.27A.020; and declaring an emergency.", and that the bill do pass as recommended by the Conference Committee.

      Signed by Senators Sutherland, Hochstatter and Owen; Representatives Bray, Kessler and Casada


MOTION


      On motion of Senator Sutherland, the Senate adopted the Report of the Conference Committee on Engrossed House Bill No. 2347.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2347, as recommended by the Conference Committee.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed House Bill No. 2347, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      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., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams and Winsley - 47.

      Absent: Senator Wojahn - 1.

      Excused: Senator Anderson - 1.

      ENGROSSED HOUSE BILL NO. 2347, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


SHB 2270                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Revising provisions about probate and trust matters


MR. PRESIDENT:

MR. SPEAKER:

      We of your Conference Committee, to whom was referred SUBSTITUTE HOUSE BILL NO. 2270, Revising provisions about probate and trust matters, have had the same under consideration and we recommend that:

      All previous amendments not be adopted and the following striking amendment by the Conference Committee be 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)) the effective date of this section.

       (((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 11.98.200 and 1993 c 339 s 2 are each amended to read as follows:

     Due to the inherent conflict of interest that exists between a trustee and a beneficiary of a trust, unless the terms of a trust refer specifically to RCW 11.98.200 through 11.98.240 and provide expressly to the contrary, the powers conferred upon a trustee who is a beneficiary of the trust, other than the trustor as a trustee, ((and other than the decedent's spouse or the testator's spouse where the spouse is the trustee of a trust for which a marital deduction is or was otherwise allowed or allowable, whether or not an appropriate marital deduction election was in fact made,)) cannot be exercised by the trustee to make:

     (1) Discretionary distributions of either principal or income to or for the benefit of the trustee, except to provide for the trustee's health, education, maintenance, or support as described under section 2041 or 2514 of the Internal Revenue Code and the applicable regulations adopted under that section;

     (2) Discretionary allocations of receipts or expenses as between principal and income, unless the trustee acts in a fiduciary capacity whereby the trustee has no power to enlarge or shift a beneficial interest except as an incidental consequence of the discharge of the trustee's fiduciary duties; or

     (3) Discretionary distributions of either principal or income to satisfy a legal ((support)) obligation of the trustee.

     A proscribed power under this section that is conferred upon two or more trustees may be exercised by the trustees that are not disqualified under this section. If there is no trustee qualified to exercise a power proscribed under this section, a person described in RCW 11.96.070 who is entitled to seek judicial proceedings with respect to a trust may apply to a court of competent jurisdiction to appoint another trustee who would not be disqualified, and the power may be exercised by another trustee appointed by the court. Alternatively, another trustee who would not be disqualified may be appointed in accordance with the provisions of the trust instrument if the procedures are provided, or as set forth in RCW 11.98.039 as if the office of trustee were vacant, or by a nonjudicial dispute resolution agreement under RCW 11.96.170.

     Sec. 66. RCW 11.98.240 and 1993 c 339 s 6 are each amended to read as follows:

     (1)(a)(i) RCW 11.98.200 and 11.98.210 respectively apply to a trust established under a will, codicil, trust agreement, declaration of trust, deed, or other instrument executed after July 25, 1993, unless the instrument's terms refer specifically to RCW 11.98.200 or 11.98.210 respectively and provide expressly to the contrary. However, except for RCW 11.98.200(3), the 1994 c ... (this act) amendments to RCW 11.98.200 apply to a trust established under a will, codicil, trust agreement, declaration of trust, deed, or other instrument executed after the effective date of this section, unless the instrument's terms refer specifically to RCW 11.98.200 and provide expressly to the contrary.

     (ii) Notwithstanding (a)(i) of this subsection, for the purposes of this subsection a codicil to a will or an amendment to a trust does not cause that instrument to be executed after ((the aforementioned date)) July 25, 1993, unless the codicil or amendment clearly shows an intent to have RCW 11.98.200 or 11.98.210 apply.

     (b) Notwithstanding (a) of this subsection, RCW 11.98.200 and 11.98.210 respectively apply to a trust established under a will or codicil of a decedent dying on or after July 25, 1993, and to an inter vivos trust to which the trustor had on or after July 25, 1993, the power to terminate, revoke, amend, or modify, unless:

     (i) The terms of the instrument specifically refer to RCW 11.98.200 or 11.98.210 respectively and provide expressly to the contrary; or

     (ii) The decedent or the trustor was not competent, on July 25, 1993, to change the disposition of his or her property, or to terminate, revoke, amend, or modify the trust, and did not regain his or her competence to dispose, terminate, revoke, amend, or modify before the date of the decedent's death or before the trust could not otherwise be revoked, terminated, amended, or modified by the decedent or trustor.

     (2) RCW 11.98.200 neither creates a new cause of action nor impairs an existing cause of action that, in either case, relates to a power proscribed under RCW 11.98.200 that was exercised before July 25, 1993. RCW 11.98.210 neither creates a new cause of action nor impairs an existing cause of action that, in either case, relates to a power proscribed, limited, or qualified under RCW 11.98.210.

     NEW SECTION. Sec. 67. A new section is added to chapter 11.94 RCW to read as follows:

     (1) The restrictions in RCW 11.95.100 through 11.95.150 on the power of a person holding a power of appointment apply to attorneys-in-fact holding the power to appoint to or for the benefit of the powerholder.

     (2) This section applies retroactively to July 25, 1993.

     Sec. 68. 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 subsection.

     Sec. 69. 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).

     Sec. 70. RCW 83.100.020 and 1993 c 73 s 9 are each amended to read as follows:

     As used in this chapter:

     (1) "Decedent" means a deceased individual;

     (2) "Department" means the department of revenue, the director of that department, or any employee of the department exercising authority lawfully delegated to him by the director;

     (3) "Federal credit" means (a) for a transfer, the maximum amount of the credit for state taxes allowed by section 2011 of the Internal Revenue Code; and (b) for a generation-skipping transfer, the maximum amount of the credit for state taxes allowed by section 2604 of the Internal Revenue Code;

     (4) "Federal return" means any tax return required by chapter 11 or 13 of the Internal Revenue Code;

     (5) "Federal tax" means (a) for a transfer, a tax under chapter 11 of the Internal Revenue Code; and (b) for a generation-skipping transfer, the tax under chapter 13 of the Internal Revenue Code;

     (6) "Generation-skipping transfer" means a "generation-skipping transfer" as defined and used in section 2611 of the Internal Revenue Code;

     (7) "Gross estate" means "gross estate" as defined and used in section 2031 of the Internal Revenue Code;

     (8) "Nonresident" means a decedent who was domiciled outside Washington at his death;

     (9) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state, or other governmental unit or subdivision or agency, department, or instrumentality thereof;

     (10) "Person required to file the federal return" means any person required to file a return required by chapter 11 or 13 of the Internal Revenue Code, such as the personal representative of an estate; or a transferor, trustee, or beneficiary of a generation-skipping transfer; or a qualified heir with respect to qualified real property, as defined and used in section 2032A(c) of the Internal Revenue Code;

     (11) "Property" means (a) for a transfer, property included in the gross estate; and (b) for a generation-skipping transfer, all real and personal property subject to the federal tax;

     (12) "Resident" means a decedent who was domiciled in Washington at time of death;

     (13) "Transfer" means "transfer" as used in section 2001 of the Internal Revenue Code, or a disposition or cessation of qualified use as defined and used in section 2032A(c) of the Internal Revenue Code;

     (14) "Trust" means "trust" under Washington law and any arrangement described in section 2652 of the Internal Revenue Code; and

     (15) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered on ((July 25, 1993)) the effective date of this section.

     Sec. 71. RCW 83.110.010 and 1993 c 73 s 10 are each amended to read as follows:

     As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

     (1) "Estate" means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate tax payable to this state;

     (2) "Excise tax" means the federal excise tax imposed by section 4980A(d) of the Internal Revenue Code, and interest and penalties imposed in addition to the excise tax;

     (3) "Fiduciary" means executor, administrator of any description, and trustee;

     (4) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered on ((July 25, 1993)) the effective date of this section;

     (5) "Person" means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency, or local governmental agency;

     (6) "Persons interested in retirement distributions" means any person determined as of the date the excise tax is due, including a personal representative, guardian, trustee, or beneficiary, entitled to receive, or who has received, by reason of or following the death of a decedent, any property or interest therein which constitutes a retirement distribution as defined in section 4980A(e) of the Internal Revenue Code, but this definition excludes any alternate payee under a qualified domestic relations order as such terms are defined in section 414(p) of the Internal Revenue Code;

     (7) "Person interested in the estate" means any person, including a personal representative, guardian, or trustee, entitled to receive, or who has received, from a decedent while alive or by reason of the death of a decedent any property or interest therein included in the decedent's taxable estate;

     (8) "Qualified heir" means a person interested in the estate who is entitled to receive, or who has received, an interest in qualified real property;

     (9) "Qualified real property" means real property for which the election described in section 2032A of the Internal Revenue Code has been made;

     (10) "State" means any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; and

     (11) "Tax" means the federal estate tax, the excise tax defined in subsection (2) of this section, and the estate tax payable to this state and interest and penalties imposed in addition to the tax.

     NEW SECTION. Sec. 72. 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. 73. (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. 74. The 1994 c ... (this act) amendments to RCW 11.98.200(3) are remedial in nature and apply retroactively to July 25, 1993.

     NEW SECTION. Sec. 75. (1) Except as provided in section 74 of this act, sections 1 through 72 of this act shall take effect January 1, 1995.

     (2) Section 3 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

     On page 1, line 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, 11.98.200, 11.98.240, 11.100.035, 82.32.240, 83.100.020, and 83.110.010; adding new sections to chapter 11.12 RCW; adding a new section to chapter 11.94 RCW; adding new chapters to Title 11 RCW; creating a new section; 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; providing an effective date; and declaring an emergency.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Adam Smith, Nelson and Ludwig; Representatives Johanson, Eide and Padden


MOTION


    On motion of Senator Ludwig, the Senate adopted the Report of the Conference Committee on Substitute House Bill No. 2270.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2270, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2270, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

    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., Rinehart, Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 48.

    Excused: Senator Anderson - 1.

    SUBSTITUTE HOUSE BILL NO. 2270, as recommended by the Conference Committee, 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.


MESSAGE FROM THE HOUSE


March 8, 1994


MR. PRESIDENT:

    The House suspended the rules and returned ENGROSSED SUBSTITUTE SENATE BILL NO. 6111 to second reading, amended the House amendment, and passed the bill as amended:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. Government derives its powers from the people. Ethics in government are the foundation on which the structure of government rests. State officials and employees of government hold a public trust that obligates them, in a special way, to honesty and integrity in fulfilling the responsibilities to which they are elected and appointed. Paramount in that trust is the principle that public office, whether elected or appointed, may not be used for personal gain or private advantage.

     The citizens of the state expect all state officials and employees to perform their public responsibilities in accordance with the highest ethical and moral standards and to conduct the business of the state only in a manner that advances the public's interest. State officials and employees are subject to the sanctions of law and scrutiny of the media; ultimately, however, they are accountable to the people and must consider this public accountability as a particular obligation of the public service. Only when affairs of government are conducted, at all levels, with openness as provided by law and an unswerving commitment to the public good does government work as it should.

     The obligations of government rest equally on the state's citizenry. The effectiveness of government depends, fundamentally, on the confidence citizens can have in the judgments and decisions of their elected representatives. Citizens, therefore, should honor and respect the principles and the spirit of representative democracy, recognizing that both elected and appointed officials, together with state employees, seek to carry out their public duties with professional skill and dedication to the public interest. Such service merits public recognition and support.

     All who have the privilege of working for the people of Washington state can have but one aim: To give the highest public service to its citizens.


PART I

GENERAL ETHICS PROVISIONS


     NEW SECTION. Sec. 101. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Agency" means any state board, commission, bureau, committee, department, institution, division, or tribunal in the legislative, executive, or judicial branch of state government. "Agency" includes all elective offices, the state legislature, those institutions of higher education created and supported by the state government, and those courts that are parts of state government.

     (2) "Head of agency" means the chief executive officer of an agency. In the case of an agency headed by a commission, board, committee, or other body consisting of more than one natural person, agency head means the person or board authorized to appoint agency employees and regulate their conduct.

     (3) "Assist" means to act, or offer or agree to act, in such a way as to help, aid, advise, furnish information to, or otherwise provide assistance to another person, believing that the action is of help, aid, advice, or assistance to the person and with intent so to assist such person.

     (4) "Beneficial interest" has the meaning ascribed to it under the Washington case law. However, an ownership interest in a mutual fund or similar investment pooling fund in which the owner has no management powers does not constitute a beneficial interest in the entities in which the fund or pool invests.

     (5) "Compensation" means anything of economic value, however designated, that is paid, loaned, granted, or transferred, or to be paid, loaned, granted, or transferred for, or in consideration of, personal services to any person.

     (6) "Confidential information" means (a) specific information, rather than generalized knowledge, that is not available to the general public on request or (b) information made confidential by law.

     (7) "Ethics boards" means the commission on judicial conduct, the legislative ethics board, and the executive ethics board.

     (8) "Family" has the same meaning as "immediate family" in RCW 42.17.020.

     (9) "Gift" means anything of economic value for which no consideration is given. "Gift" does not include:

     (a) Items from family members or friends where it is clear beyond a reasonable doubt that the gift was not made as part of any design to gain or maintain influence in the agency of which the recipient is an officer or employee;

     (b) Items related to the outside business of the recipient that are customary and not related to the recipient's performance of official duties;

     (c) Items exchanged among officials and employees or a social event hosted or sponsored by a state officer or state employee for coworkers;

     (d) Payments by a governmental or nongovernmental entity of reasonable expenses incurred in connection with a speech, presentation, appearance, or trade mission made in an official capacity. As used in this subsection, "reasonable expenses" are limited to travel, lodging, and subsistence expenses incurred the day before through the day after the event;

     (e) Items a state officer or state employee is authorized by law to accept;

     (f) Payment of enrollment and course fees and reasonable travel expenses attributable to attending seminars and educational programs sponsored by a bona fide nonprofit professional, educational, or trade association, or charitable institution. As used in this subsection, "reasonable expenses" are limited to travel, lodging, and subsistence expenses incurred the day before through the day after the event;

     (g) Items returned by the recipient to the donor within thirty days of receipt or donated to a charitable organization within thirty days of receipt;

     (h) Campaign contributions reported under chapter 42.17 RCW; and

     (i) Discounts available to an individual as a member of an employee group, occupation, or similar broad-based group.

     (10) "Honorarium" means money or thing of value offered to a state officer or state employee for a speech, appearance, article, or similar item or activity in connection with the state officer's or state employee's official role.

     (11) "Participate" means to participate in state action or a proceeding personally and substantially as a state officer or state employee, through approval, disapproval, decision, recommendation, the rendering of advice, investigation, or otherwise but does not include preparation, consideration, or enactment of legislation or the performance of legislative duties.

     (12) "Person" means any individual, partnership, association, corporation, firm, institution, or other entity, whether or not operated for profit.

     (13) "Regulatory agency" means any state board, commission, department, or officer, except those in the legislative or judicial branches, authorized by law to conduct adjudicative proceedings, issue permits or licenses, or to control or affect interests of identified persons.

     (14) "Responsibility" in connection with a transaction involving the state, means the direct administrative or operating authority, whether intermediate or final, and either exercisable alone or through subordinates, effectively to approve, disapprove, or otherwise direct state action in respect of such transaction.

     (15) "State action" means any action on the part of an agency, including, but not limited to:

     (a) A decision, determination, finding, ruling, or order; and

     (b) A grant, payment, award, license, contract, transaction, sanction, or approval, or the denial thereof, or failure to act with respect to a decision, determination, finding, ruling, or order.

     (16) "State officer" means every person holding a position of public trust in or under an executive, legislative, or judicial office of the state. "State officer" includes judges of the superior court, judges of the court of appeals, justices of the supreme court, members of the legislature together with the secretary of the senate and the chief clerk of the house of representatives, holders of elective offices in the executive branch of state government, chief executive officers of state agencies, members of boards, commissions, or committees with authority over one or more state agencies or institutions, and employees of the state who are engaged in supervisory, policy-making, or policy-enforcing work. For the purposes of this chapter, "state officer" also includes any person exercising or undertaking to exercise the powers or functions of a state officer.

     (17) "State employee" means an individual who is employed by an agency in any branch of state government. For purposes of this chapter, employees of the superior courts are not state officers or state employees.

     (18) "Thing of economic value", in addition to its ordinary meaning, includes:

     (a) A loan, property interest, interest in a contract or other chose in action, and employment or another arrangement involving a right to compensation;

     (b) An option, irrespective of the conditions to the exercise of the option; and

     (c) A promise or undertaking for the present or future delivery or procurement.

     (19) (a) "Transaction involving the state" means a proceeding, application, submission, request for a ruling or other determination, contract, claim, case, or other similar matter that the state officer, state employee, or former state officer or state employee in question believes, or has reason to believe:

     (i) Is, or will be, the subject of state action; or

     (ii) Is one to which the state is or will be a party; or

     (iii) Is one in which the state has a direct and substantial proprietary interest.

     (b) "Transaction involving the state" does not include the following: Preparation, consideration, or enactment of legislation, including appropriation of moneys in a budget, or the performance of legislative duties by an officer or employee; or a claim, case, lawsuit, or similar matter if the officer or employee did not participate in the underlying transaction involving the state that is the basis for the claim, case, or lawsuit.

     NEW SECTION. Sec. 102. ACTIVITIES INCOMPATIBLE WITH PUBLIC DUTIES. No state officer or state employee may have an interest, financial or otherwise, direct or indirect, or engage in a business or transaction or professional activity, or incur an obligation of any nature, that is in conflict with the proper discharge of the state officer's or state employee's duties.

     NEW SECTION. Sec. 103. FINANCIAL INTERESTS IN TRANSACTIONS. (1) No state officer or state employee may be beneficially interested, directly or indirectly, in a contract, sale, lease, purchase, or grant that may be made by, through, or is under the supervision of the officer or employee, in whole or in part, or accept, directly or indirectly, any compensation, gratuity, or reward from any other person beneficially interested in the contract, sale, lease, purchase, or grant.

     (2) No state officer or state employee may participate in a transaction involving the state in his or her official capacity with a person of which the officer or employee is an officer, agent, employee, or member, or in which the officer or employee owns a beneficial interest.

     NEW SECTION. Sec. 104. ASSISTING IN TRANSACTIONS. (1) Except in the course of official duties or incident to official duties, no state officer or state employee may assist another person, directly or indirectly, whether or not for compensation, in a transaction involving the state:

     (a) In which the state officer or state employee has at any time participated; or

     (b) If the transaction involving the state is or has been under the official responsibility of the state officer or state employee within a period of two years preceding such assistance.

     (2) No state officer or state employee may share in compensation received by another for assistance that the officer or employee is prohibited from providing under subsection (1) or (3) of this section.

     (3) A business entity of which a state officer or state employee is a partner, managing officer, or employee shall not assist another person in a transaction involving the state if the state officer or state employee is prohibited from doing so by subsection (1) of this section.

     (4) This chapter does not prevent a state officer or state employee from assisting, in a transaction involving the state:

     (a) The state officer's or state employee's parent, spouse, or child, or a child thereof for whom the officer or employee is serving as guardian, executor, administrator, trustee, or other personal fiduciary, if the state officer or state employee did not participate in the transaction; or

     (b) Another state employee involved in disciplinary or other personnel administration proceedings.

     NEW SECTION. Sec. 105. CONFIDENTIAL INFORMATION. No state officer or state employee may accept employment or engage in any business or professional activity that the officer or employee might reasonably expect would require or induce him or her to disclose confidential information acquired by the official or employee by reason of the official's or employee's official position.

     (2) No state officer or state employee may disclose confidential information gained by reason of the officer's or employee's official position or otherwise use the information for his or her personal gain or benefit or the gain or benefit of another.

     (3) No state officer or state employee may disclose confidential information to any person not entitled or authorized to receive the information.

     (4) No state officer or state employee may intentionally conceal a record if the officer or employee knew the record was required to be released under chapter 42.17 RCW, was under a personal obligation to release the record, and failed to do so. This subsection does not apply where the decision to withhold the record was made in good faith.

     NEW SECTION. Sec. 106. TESTIMONY OF STATE OFFICERS AND STATE EMPLOYEES. This chapter does not prevent a state officer or state employee from giving testimony under oath or from making statements required to be made under penalty of perjury or contempt.

     NEW SECTION. Sec. 107. SPECIAL PRIVILEGES. Except as required to perform duties within the scope of employment, no state officer or state employee may use his or her position to secure special privileges or exemptions for himself or herself, or his or her spouse, child, parents, or other persons.

     NEW SECTION. Sec. 108. POSTPUBLIC SERVICE EMPLOYMENT. (1) No former state officer or state employee may, within a period of one year from the date of termination of state employment, accept employment or receive compensation from an employer if:

     (a) The officer or employee, during the two years immediately preceding termination of state employment, was engaged in the negotiation or administration on behalf of the state or agency of one or more contracts with that employer and was in a position to make discretionary decisions affecting the outcome of such negotiation or the nature of such administration;

     (b) Such a contract or contracts have a total value of more than ten thousand dollars; and

     (c) The duties of the employment with the employer or the activities for which the compensation would be received include fulfilling or implementing, in whole or in part, the provisions of such a contract or contracts or include the supervision or control of actions taken to fulfill or implement, in whole or in part, the provisions of such a contract or contracts. This subsection shall not be construed to prohibit a state officer or state employee from accepting employment with a state employee organization.

     (2) No person who has served as a state officer or state employee may, within a period of two years following the termination of state employment, have a direct or indirect beneficial interest in a contract or grant that was expressly authorized or funded by specific legislative or executive action in which the former state officer or state employee participated.

     (3) No former state officer or state employee may accept an offer of employment or receive compensation from an employer if the officer or employee knows or has reason to believe that the offer of employment or compensation was intended, in whole or in part, directly or indirectly, to influence the officer or employee or as compensation or reward for the performance or nonperformance of a duty by the officer or employee during the course of state employment.

     (4) No former state officer or state employee may accept an offer of employment or receive compensation from an employer if the circumstances would lead a reasonable person to believe the offer has been made, or compensation given, for the purpose of influencing the performance or nonperformance of duties by the officer or employee during the course of state employment.

     (5) No former state officer or state employee may at any time subsequent to his or her state employment assist another person, whether or not for compensation, in any transaction involving the state in which the former state officer or state employee at any time participated during state employment. This subsection shall not be construed to prohibit any employee or officer of a state employee organization from rendering assistance to state officers or state employees in the course of employee organization business.

     (6) As used in this section, "employer" means a person as defined in section 101 of this act or any other entity or business that the person owns or in which the person has a controlling interest.

     NEW SECTION. Sec. 109. FORMER STATE OFFICERS AND STATE EMPLOYEES. This chapter shall not be construed to prevent a former state officer or state employee from rendering assistance to others if the assistance is provided without compensation in any form and is limited to one or more of the following:

     (1) Providing the names, addresses, and telephone numbers of state agencies or state employees;

     (2) Providing free transportation to another for the purpose of conducting business with a state agency;

     (3) Assisting a natural person or nonprofit corporation in obtaining or completing application forms or other forms required by a state agency for the conduct of a state business; or

     (4) Providing assistance to the poor and infirm.

     Sec. 110. RCW 42.18.270 and 1969 ex.s. c 234 s 27 are each amended to read as follows:

     (1) The head of an agency, upon finding that any former state officer or state employee of such agency or any other person has violated any provision of this chapter or rules adopted under it, may, in addition to any other powers the head of such agency may have, bar or impose reasonable conditions upon:

     (a) The appearance before such agency of such former state officer or state employee or other person; and

     (b) The conduct of, or negotiation or competition for, business with such agency by such former state officer or state employee or other person, such period of time as may reasonably be necessary or appropriate to effectuate the purposes of this chapter.

     (2) Findings of violations referred to in subsection (1)(b) of this section shall be made on record after notice and hearing, conducted in accordance with the Washington Administrative Procedure Act, chapter 34.05 RCW. Such findings and orders are subject to judicial review.

     (3) This section does not apply to the legislative or judicial branches of government.

     NEW SECTION. Sec. 111. COMPENSATION FOR OFFICIAL DUTIES. No state officer or state employee may, directly or indirectly, ask for or give or receive or agree to receive any compensation, gift, reward, or gratuity from a source except the state of Washington for performing or omitting or deferring the performance of any official duty, unless otherwise authorized by law.

     NEW SECTION. Sec. 112. COMPENSATION FOR OUTSIDE ACTIVITIES. (1) No state officer or state employee may receive any thing of economic value under any contract or grant outside of his or her official duties. The prohibition in this subsection does not apply where each of the following conditions are met:

     (a) The contract or grant is bona fide and actually performed;

     (b) The performance or administration of the contract or grant is not within the course of the officer's or employee's official duties, or is not under the officer's or employee's official supervision;

     (c) The performance of the contract or grant is not prohibited by section 104 of this act or by applicable laws or rules governing outside employment for the officer or employee;

     (d) The contract or grant is neither performed for nor compensated by any person from whom such officer or employee would be prohibited by section 115(4) of this act from receiving a gift;

     (e) The contract or grant is not one expressly created or authorized by the officer or employee in his or her official capacity or by his or her agency;

     (f) The contract or grant would not require unauthorized disclosure of confidential information.

     (2) In addition to satisfying the requirements of subsection (1) of this section, a state officer or state employee may have a beneficial interest in a grant or contract with a state agency only if:

     (a) The contract or grant is awarded or issued as a result of an open and competitive bidding process in which more than one bid or grant application was received; or

     (b) The contract or grant is awarded or issued as a result of an open and competitive bidding or selection process in which the officer's or employee's bid or proposal was the only bid or proposal received and the officer or employee has been advised by the appropriate ethics board, before execution of the contract or grant, that the contract or grant would not be in conflict with the proper discharge of the officer's or employee's official duties; or

     (c) The process for awarding the contract or issuing the grant is not open and competitive, but the officer or employee has been advised by the appropriate ethics board that the contract or grant would not be in conflict with the proper discharge of the officer's or employee's official duties.

     (3) A state officer or state employee awarded a contract or issued a grant in compliance with subsection (2) of this section shall file the contract or grant with the appropriate ethics board within thirty days after the date of execution.

     (4) This section does not prevent a state officer or state employee from receiving compensation contributed from the treasury of the United States, another state, county, or municipality if the compensation is received pursuant to arrangements entered into between such state, county, municipality, or the United States and the officer's or employee's agency. This section does not prohibit a state officer or state employee from serving or performing any duties under an employment contract with a governmental entity.

     (5) As used in this section, "officer" and "employee" do not include officers and employees who, in accordance with the terms of their employment or appointment, are serving without compensation from the state of Washington or are receiving from the state only reimbursement of expenses incurred or a predetermined allowance for such expenses.

     NEW SECTION. Sec. 113. HONORARIA. (1) No state officer or state employee may receive honoraria unless specifically authorized by the agency where they serve as state officer or state employee.

     (2) An agency may not permit honoraria under the following circumstances:

     (a) The person offering the honorarium is seeking or is reasonably expected to seek contractual relations with or a grant from the employer of the state officer or state employee, and the officer or employee is in a position to participate in the terms or the award of the contract or grant;

     (b) The person offering the honorarium is regulated by the employer of the state officer or state employee and the officer or employee is in a position to participate in the regulation; or

     (c) The person offering the honorarium (i) is seeking or opposing or is reasonably likely to seek or oppose enactment of legislation or adoption of administrative rules or actions, or policy changes by the state officer's or state employee's agency; and (ii) the officer or employee may participate in the enactment or adoption.

     NEW SECTION. Sec. 114. GIFTS. No state officer or state employee may receive, accept, take, seek, or solicit, directly or indirectly, any thing of economic value as a gift, gratuity, or favor from a person if it could be reasonably expected that the gift, gratuity, or favor would influence the vote, action, or judgment of the officer or employee, or be considered as part of a reward for action or inaction.

     NEW SECTION. Sec. 115. LIMITATIONS ON GIFTS. (1) No state officer or state employee may accept gifts, other than those specified in subsections (2) and (5) of this section, with an aggregate value in excess of fifty dollars from a single source in a calendar year or a single gift from multiple sources with a value in excess of fifty dollars. For purposes of this section, "single source" means any person, as defined in section 101 of this act, whether acting directly or through any agent or other intermediary, and "single gift" includes any event, item, or group of items used in conjunction with each other or any trip including transportation, lodging, and attendant costs, not excluded from the definition of gift under section 101 of this act. The value of gifts given to an officer's or employee's family member shall be attributed to the official or employee for the purpose of determining whether the limit has been exceeded, unless an independent business, family, or social relationship exists between the donor and the family member.

     (2) Except as provided in subsection (4) of this section, the following items are presumed not to influence under section 114 of this act, and may be accepted without regard to the limit established by subsection (1) of this section:

     (a) Unsolicited flowers, plants, and floral arrangements;

     (b) Unsolicited advertising or promotional items of nominal value, such as pens and note pads;

     (c) Unsolicited tokens or awards of appreciation in the form of a plaque, trophy, desk item, wall memento, or similar item;

     (d) Unsolicited items received by a state officer or state employee for the purpose of evaluation or review, if the officer or employee has no personal beneficial interest in the eventual use or acquisition of the item by the officer's or employee's agency;

     (e) Informational material, publications, or subscriptions related to the recipient's performance of official duties;

     (f) Food and beverages consumed at hosted receptions where attendance is related to the state officer's or state employee's official duties;

     (g) Admission to, and the cost of food and beverages consumed at, events sponsored by or in conjunction with a civic, charitable, governmental, or community organization; and

     (h) Unsolicited gifts from dignitaries from another state or a foreign country that are intended to be personal in nature.

     (3) The presumption in subsection (2) of this section is rebuttable and may be overcome based on the circumstances surrounding the giving and acceptance of the item.

     (4) Notwithstanding subsections (2) and (5) of this section, a state officer or state employee of a regulatory agency or of an agency that seeks to acquire goods or services who participates in those regulatory or contractual matters may receive, accept, take, or seek, directly or indirectly, only the following items from a person regulated by the agency or from a person who seeks to provide goods or services to the agency:

     (a) Unsolicited advertising or promotional items of nominal value, such as pens and note pads;

     (b) Unsolicited tokens or awards of appreciation in the form of a plaque, trophy, desk item, wall memento, or similar item;

     (c) Unsolicited items received by a state officer or state employee for the purpose of evaluation or review, if the officer or employee has no personal beneficial interest in the eventual use or acquisition of the item by the officer's or employee's agency;

     (d) Informational material, publications, or subscriptions related to the recipient's performance of official duties;

     (e) Food and beverages consumed at hosted receptions where attendance is related to the state officer's or state employee's official duties;

     (f) Admission to, and the cost of food and beverages consumed at, events sponsored by or in conjunction with a civic, charitable, governmental, or community organization; and

     (g) Those items excluded from the definition of gift in section 101 of this act except:

     (i) Payments by a governmental or nongovernmental entity of reasonable expenses incurred in connection with a speech, presentation, appearance, or trade mission made in an official capacity;

     (ii) Payments for seminars and educational programs sponsored by a bona fide nonprofit professional, educational, or trade association, or charitable institution; and

     (iii) Flowers, plants, and floral arrangements.

     (5) A state officer or state employee may accept gifts in the form of food and beverage on infrequent occasions in the ordinary course of meals where attendance by the officer or employee is related to the performance of official duties. Gifts in the form of food and beverage that exceed fifty dollars on a single occasion shall be reported as provided in chapter 42.17 RCW.

     Sec. 116. RCW 42.18.217 and 1987 c 426 s 3 are each amended to read as follows:

     (1) No state officer or state employee may employ or use any person, money, or property under the officer's or employee's official control or direction, or in his or her official custody, for the private benefit or gain of the officer, employee, or another.

     (2) This section does not prohibit the use of public resources to benefit others as part of a state officer's or state employee's public duties.

     (3) The appropriate ethics boards may adopt rules providing exceptions to this section for occasional use of the state officer or state employee, of de minimis cost and value, if the activity does not result in interference with the proper performance of public duties.

     Sec. 117. RCW 42.18.230 and 1987 c 426 s 5 are each amended to read as follows:

     (((1))) No person shall give, pay, loan, transfer, or deliver, directly or indirectly, to any other person any thing of economic value believing or having reason to believe that there exist circumstances making the receipt thereof a violation of ((RCW 42.18.170, 42.18.190, and 42.18.213)) section 104, 111, 112, 114, or 115 of this act.

     (((2) No person shall give, transfer, or deliver, directly or indirectly, to a state employee, any thing of economic value as a gift, gratuity, or favor if either:

     (a) Such person would not give the gift, gratuity, or favor but for such employee's office or position with the state; or

     (b) Such person is in a status specified in clause (a), (b), or (c) of RCW 42.18.200(2).

     Exceptions to this subsection (2) may be made by regulations issued pursuant to RCW 42.18.240 in situations referred to in RCW 42.18.200(3).))

     NEW SECTION. Sec. 118. USE OF PUBLIC RESOURCES FOR POLITICAL CAMPAIGNS. (1) No state officer or state employee may use or authorize the use of facilities of an agency, directly or indirectly, for the purpose of assisting a campaign for election of a person to an office or for the promotion of or opposition to a ballot proposition. Knowing acquiescence by a person with authority to direct, control, or influence the actions of the state officer or state employee using public resources in violation of this section constitutes a violation of this section. Facilities of an agency include, but are not limited to, use of stationery, postage, machines, and equipment, use of state employees of the agency during working hours, vehicles, office space, publications of the agency, and clientele lists of persons served by the agency.

     (2) This section shall not apply to the following activities:

     (a) Action taken at an open public meeting by members of an elected legislative body to express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or ordinance, or to support or oppose a ballot proposition as long as (i) required notice of the meeting includes the title and number of the ballot proposition, and (ii) members of the legislative body or members of the public are afforded an approximately equal opportunity for the expression of an opposing view;

     (b) A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry. For the purposes of this subsection, it is not a violation of this section for an elected official to respond to an inquiry regarding a ballot proposition, to make incidental remarks concerning a ballot proposition in an official communication, or otherwise comment on a ballot proposition without an actual, measurable expenditure of public funds. The public disclosure commission shall, after consultation with the ethics boards, adopt by rule a definition of measurable expenditure;

     (c) Activities that are part of the normal and regular conduct of the office or agency; and

     (d) De minimis use of public facilities by state-wide elected officials and legislators incidental to the preparation or delivery of permissible communications, including written and verbal communications initiated by them of their views on ballot propositions that foreseeably may affect a matter that falls within their constitutional or statutory responsibilities.

     (3) As to state officers and employees, this section operates to the exclusion of RCW 42.17.130.

     NEW SECTION. Sec. 119. INVESTMENTS. (1) Except for permissible investments as defined in this section, no state officer or state employee of any agency responsible for the investment of funds, who acts in a decision-making, advisory, or policy-influencing capacity with respect to investments, may have a direct or indirect interest in any property, security, equity, or debt instrument of a person, without prior written approval of the agency.

     (2) Agencies responsible for the investment of funds shall adopt policies governing approval of investments and establishing criteria to be considered in the approval process. Criteria shall include the relationship between the proposed investment and investments held or under consideration by the state, the size and timing of the proposed investment, access by the state officer or state employee to nonpublic information relative to the proposed investment, and the availability of the investment in the public market. Agencies responsible for the investment of funds also shall adopt policies consistent with this chapter governing use by their officers and employees of financial information acquired by virtue of their state positions. A violation of such policies adopted to implement this subsection shall constitute a violation of this chapter.

     (3) As used in this section, "permissible investments" means any mutual fund, deposit account, certificate of deposit, or money market fund maintained with a bank, broker, or other financial institution, a security publicly traded in an organized market if the interest in the security at acquisition is ten thousand dollars or less, or an interest in real estate, except if the real estate interest is in or with a party in whom the agency holds an investment.

     NEW SECTION. Sec. 120. AGENCY RULES. (1) Each agency may adopt rules consistent with law, for use within the agency to protect against violations of this chapter.

     (2) Each agency proposing to adopt rules under this section shall forward the rules to the appropriate ethics board before they may take effect. The board may submit comments to the agency regarding the proposed rules.

     NEW SECTION. Sec. 121. A new section is added to chapter 42.23 RCW to read as follows:

     (1) No municipal officer may use his or her position to secure special privileges or exemptions for himself, herself, or others.

     (2) No municipal officer may, directly or indirectly, give or receive or agree to receive any compensation, gift, reward, or gratuity from a source except the employing municipality, for a matter connected with or related to the officer's services as such an officer unless otherwise provided for by law.

     (3) No municipal officer may accept employment or engage in business or professional activity that the officer might reasonably expect would require or induce him or her by reason of his or her official position to disclose confidential information acquired by reason of his or her official position.

     (4) No municipal officer may disclose confidential information gained by reason of the officer's position, nor may the officer otherwise use such information for his or her personal gain or benefit.

PART II

ETHICS ENFORCEMENT BOARDS


     NEW SECTION. Sec. 201. LEGISLATIVE ETHICS BOARD. (1) The legislative ethics board is created, composed of nine members, selected as follows:

     (a) Two senators, one from each of the two largest caucuses, appointed by the president of the senate;

     (b) Two members of the house of representatives, one from each of the two largest caucuses, appointed by the speaker of the house of representatives;

     (c) Five citizen members:

     (i) One citizen member chosen by the governor from a list of three individuals submitted by each of the four legislative caucuses; and

     (ii) One citizen member selected by three of the four other citizen members of the legislative ethics board.

     (2) Except for initial members and members completing partial terms, nonlegislative members shall serve a single five-year term.

     (3) No more than three of the public members may be identified with the same political party.

     (4) Terms of initial nonlegislative board members shall be staggered as follows: One member shall be appointed to a one-year term; one member shall be appointed to a two-year term; one member shall be appointed to a three-year term; one member shall be appointed to a four-year term; and one member shall be appointed for a five-year term.

     (5) A vacancy on the board shall be filled in the same manner as the original appointment.

     (6) Legislative members shall serve two-year terms, from January 31st of an odd-numbered year until January 31st of the next odd-numbered year.

     (7) Each member shall serve for the term of his or her appointment and until his or her successor is appointed.

     (8) The citizen members shall annually select a chair from among themselves.

     NEW SECTION. Sec. 202. AUTHORITY OF LEGISLATIVE ETHICS BOARD. (1) The legislative ethics board shall enforce this chapter and rules adopted under it with respect to members and employees of the legislature.

     (2) The legislative ethics board shall:

     (a) Develop educational materials and training with regard to legislative ethics for legislators and legislative employees;

     (b) Issue advisory opinions;

     (c) Adopt rules or policies governing the conduct of business by the board, and adopt rules defining working hours for purposes of section 118 of this act and where otherwise authorized under chapter . . ., Laws of 1994 (this act);

     (d) Investigate, hear, and determine complaints by any person or on its own motion;

     (e) Impose sanctions including reprimands and monetary penalties;

     (f) Recommend suspension or removal to the appropriate legislative entity, or recommend prosecution to the appropriate authority; and

     (g) Establish criteria regarding the levels of civil penalties appropriate for different types of violations of this chapter and rules adopted under it.

     (3) The board may:

     (a) Issue subpoenas for the attendance and testimony of witnesses and the production of documentary evidence relating to any matter under examination by the board or involved in any hearing;

     (b) Administer oaths and affirmations;

     (c) Examine witnesses; and

     (d) Receive evidence.

     (4) Subject to section 224 of this act, the board has jurisdiction over any alleged violation that occurred before January 1, 1995, and that was within the jurisdiction of any of the boards established under chapter 44.60 RCW. The board's jurisdiction with respect to any such alleged violation shall be based on the statutes and rules in effect at time of the violation.

     NEW SECTION. Sec. 203. By constitutional design, the legislature consists of citizen-legislators who bring to bear on the legislative process their individual experience and expertise. The provisions of this act shall be interpreted in light of this constitutional principle.

     NEW SECTION. Sec. 204. TRANSFER OF JURISDICTION. On the effective date of this section, any complaints or other matters under investigation or consideration by the boards of legislative ethics in the house of representatives and the senate operating pursuant to chapter 44.60 RCW shall be transferred to the legislative ethics board created by this act. All files, including but not limited to minutes of meetings, investigative files, records of proceedings, exhibits, and expense records, shall be transferred to the legislative ethics board created in this act pursuant to their direction and the legislative ethics board created in this act shall assume full jurisdiction over all pending complaints, investigations, and proceedings.

     NEW SECTION. Sec. 205. EXECUTIVE ETHICS BOARD. (1) The executive ethics board is created, composed of five members, appointed by the governor as follows:

     (a) One member shall be a classified service employee as defined in chapter 41.06 RCW;

     (b) One member shall be a state officer or state employee in an exempt position;

     (c) One member shall be a citizen selected from a list of three names submitted by the attorney general;

     (d) One member shall be a citizen selected from a list of three names submitted by the state auditor; and

     (e) One member shall be a citizen selected at large by the governor.

     (2) Except for initial members and members completing partial terms, members shall serve a single five-year term.

     (3) No more than three members may be identified with the same political party.

     (4) Terms of initial board members shall be staggered as follows: One member shall be appointed to a one-year term; one member shall be appointed to a two-year term; one member shall be appointed to a three-year term; one member shall be appointed to a four-year term; and one member shall be appointed to a five-year term.

     (5) A vacancy on the board shall be filled in the same manner as the original appointment.

     (6) Each member shall serve for the term of his or her appointment and until his or her successor is appointed.

     (7) The members shall annually select a chair from among themselves.

     (8) Staff shall be provided by the office of the attorney general.

     NEW SECTION. Sec. 206. AUTHORITY OF EXECUTIVE ETHICS BOARD. (1) The executive ethics board shall enforce this chapter and rules adopted under it with respect to state-wide elected officers and all other officers and employees in the executive branch, boards and commissions, and institutions of higher education.

     (2) The executive ethics board shall:

     (a) Develop educational materials and training;

     (b) Adopt rules and policies governing the conduct of business by the board, and adopt rules defining working hours for purposes of section 118 of this act and where otherwise authorized under chapter . . ., Laws of 1994 (this act);

     (c) Issue advisory opinions;

     (d) Investigate, hear, and determine complaints by any person or on its own motion;

     (e) Impose sanctions including reprimands and monetary penalties;

     (f) Recommend to the appropriate authorities suspension, removal from position, prosecution, or other appropriate remedy; and

     (g) Establish criteria regarding the levels of civil penalties appropriate for violations of this chapter and rules adopted under it.

     (3) The board may:

     (a) Issue subpoenas for the attendance and testimony of witnesses and the production of documentary evidence relating to any matter under examination by the board or involved in any hearing;

     (b) Administer oaths and affirmations;

     (c) Examine witnesses; and

     (d) Receive evidence.

     (4) The executive ethics board may review and approve agency policies as provided for in this chapter.

     (5) This section does not apply to state officers and state employees of the judicial branch.

     NEW SECTION. Sec. 207. AUTHORITY OF COMMISSION ON JUDICIAL CONDUCT. The commission on judicial conduct shall enforce this chapter and rules adopted under it with respect to state officers and employees of the judicial branch and may do so according to procedures prescribed in Article IV, section 31 of the state Constitution. In addition to the sanctions authorized in Article IV, section 31 of the state Constitution, the commission may impose sanctions authorized by this chapter.

     NEW SECTION. Sec. 208. POLITICAL ACTIVITIES OF CITIZEN BOARD MEMBERS. No member of the executive ethics board and none of the five citizen members of the legislative ethics board may (1) hold or campaign for partisan elective office other than the position of precinct committeeperson, or any full-time nonpartisan office; (2) be an officer of any political party or political committee as defined in chapter 42.17 RCW other than the position of precinct committeeperson; (3) permit his or her name to be used, or make contributions, in support of or in opposition to any state candidate or state ballot measure; or (4) lobby or control, direct, or assist a lobbyist except that such member may appear before any committee of the legislature on matters pertaining to this chapter.

     NEW SECTION. Sec. 209. HEARING AND SUBPOENA AUTHORITY. Except as otherwise provided by law, the ethics boards may hold hearings, subpoena witnesses, compel their attendance, administer oaths, take the testimony of a person under oath, and in connection therewith, to require the production for examination of any books or papers relating to any matter under investigation or in question before the ethics board. The ethics board may make rules as to the issuance of subpoenas by individual members, as to service of complaints, decisions, orders, recommendations, and other process or papers of the ethics board.

     NEW SECTION. Sec. 210. ENFORCEMENT OF SUBPOENA AUTHORITY. In case of refusal to obey a subpoena issued to a person, the superior court of a county within the jurisdiction of which the investigation, proceeding, or hearing under this chapter is carried on or within the jurisdiction of which the person refusing to obey is found or resides or transacts business, upon application by the appropriate ethics board shall have jurisdiction to issue to the person an order requiring the person to appear before the ethics board or its member to produce evidence if so ordered, or to give testimony touching the matter under investigation or in question. Failure to obey such order of the court may be punished by the court as contempt.

     NEW SECTION. Sec. 211. FILING COMPLAINT. (1) A person may, personally or by his or her attorney, make, sign, and file with the appropriate ethics board a complaint on a form provided by the appropriate ethics board. The complaint shall state the name of the person alleged to have violated this chapter or rules adopted under it and the particulars thereof, and contain such other information as may be required by the appropriate ethics board.

     (2) If it has reason to believe that any person has been engaged or is engaging in a violation of this chapter or rules adopted under it, an ethics board may issue a complaint.

     NEW SECTION. Sec. 212. INVESTIGATION. After the filing of any complaint, except as provided in section 215 of this act, the staff of the appropriate ethics board shall investigate the complaint. The investigation shall be limited to the alleged facts contained in the complaint. The results of the investigation shall be reduced to writing and a determination shall be made that there is or that there is not reasonable cause to believe that a violation of this chapter or rules adopted under it has been or is being committed. A copy of the written determination shall be provided to the complainant and to the person named in such complaint.

     NEW SECTION. Sec. 213. PUBLIC HEARING--FINDINGS. (1) If the ethics board determines there is reasonable cause under section 212 of this act that a violation of this chapter or rules adopted under it occurred, a public hearing on the merits of the complaint shall be held.

     (2) The ethics board shall designate the location of the hearing. The case in support of the complaint shall be presented at the hearing by staff of the ethics board.

     (3) The respondent shall file a written answer to the complaint and appear at the hearing in person or otherwise, with or without counsel, and submit testimony and be fully heard. The respondent has the right to cross-examine witnesses.

     (4) Testimony taken at the hearing shall be under oath and recorded.

     (5) If, based upon a preponderance of the evidence, the ethics board finds that the respondent has violated this chapter or rules adopted under it, the board shall file an order stating findings of fact and enforcement action as authorized under this chapter.

     (6) If, upon all the evidence, the ethics board finds that the respondent has not engaged in an alleged violation of this chapter or rules adopted under it, the ethics board shall state findings of fact and shall similarly issue and file an order dismissing the complaint.

     (7) If the board makes a determination that there is not reasonable cause to believe that a violation has been or is being committed or has made a finding under subsection (6) of this section, the attorney general shall represent the officer or employee in any action subsequently commenced based on the alleged facts in the complaint.

     NEW SECTION. Sec. 214. REVIEW OF ORDER. Except as otherwise provided by law, reconsideration or judicial review of an ethics board's order that a violation of this chapter or rules adopted under it has occurred shall be governed by the provisions of chapter 34.05 RCW applicable to review of adjudicative proceedings.

     NEW SECTION. Sec. 215. COMPLAINT AGAINST LEGISLATOR OR STATE-WIDE ELECTED OFFICIAL. (1) If a complaint alleges a violation of section 118 of this act by a legislator or state-wide elected official other than the attorney general, the attorney general shall conduct the investigation under section 212 of this act and recommend action to the appropriate ethics board.

     (2) If a complaint alleges a violation of section 118 of this act by the attorney general, the state auditor shall conduct the investigation under section 212 of this act and recommend action to the appropriate ethics board.

     NEW SECTION. Sec. 216. CITIZEN ACTIONS. Any person who has notified the appropriate ethics board and the attorney general in writing that there is reason to believe that section 118 of this act is being or has been violated may, in the name of the state, bring a citizen action for any of the actions authorized under this chapter. A citizen action may be brought only if the appropriate ethics board or the attorney general have failed to commence an action under this chapter within forty-five days after notice from the person, the person has thereafter notified the appropriate ethics board and the attorney general that the person will commence a citizen's action within ten days upon their failure to commence an action, and the appropriate ethics board and the attorney general have in fact failed to bring an action within ten days of receipt of the second notice.

     If the person who brings the citizen's action prevails, the judgment awarded shall escheat to the state, but the person shall be entitled to be reimbursed by the state of Washington for costs and attorneys' fees incurred. If a citizen's action that the court finds was brought without reasonable cause is dismissed, the court may order the person commencing the action to pay all costs of trial and reasonable attorneys' fees incurred by the defendant.

     Upon commencement of a citizen action under this section, at the request of a state officer or state employee who is a defendant, the office of the attorney general shall represent the defendant if the attorney general finds that the defendant's conduct complied with this chapter and was within the scope of employment.

     NEW SECTION. Sec. 217. REFERRAL FOR ENFORCEMENT. As appropriate, an ethics board may refer a complaint:

     (1) To an agency for initial investigation and proposed resolution which shall be referred back to the appropriate ethics board for action; or

     (2) To the attorney general's office or prosecutor for appropriate action.

     NEW SECTION. Sec. 218. ACTION BY BOARDS. (1) Except as otherwise provided by law, an ethics board may order payment of the following amounts if it finds a violation of this chapter or rules adopted under it after a hearing under section 207 of this act or other applicable law:

     (a) Any damages sustained by the state that are caused by the conduct constituting the violation;

     (b) From each such person, a civil penalty of up to five thousand dollars per violation or three times the economic value of any thing received or sought in violation of this chapter or rules adopted under it, whichever is greater; and

     (c) Costs, including reasonable investigative costs, which shall be included as part of the limit under (b) of this subsection. The costs may not exceed the penalty imposed. The payment owed on the penalty shall be reduced by the amount of the costs paid.

     (2) Damages under this section may be enforced in the same manner as a judgment in a civil case.

     NEW SECTION. Sec. 219. ACTION BY ATTORNEY GENERAL. (1) Upon a written determination by the attorney general that the action of an ethics board was clearly erroneous or if requested by an ethics board, the attorney general may bring a civil action in the superior court of the county in which the violation is alleged to have occurred against a state officer, state employee, former state officer, former state employee, or other person who has violated or knowingly assisted another person in violating any of the provisions of this chapter or the rules adopted under it. In such action the attorney general may recover the following amounts on behalf of the state of Washington:

     (a) Any damages sustained by the state that are caused by the conduct constituting the violation;

     (b) From each such person, a civil penalty of up to five thousand dollars per violation or three times the economic value of any thing received or sought in violation of this chapter or the rules adopted under it, whichever is greater; and

     (c) Costs, including reasonable investigative costs, which shall be included as part of the limit under subsection (1)(b) of this section. The costs may not exceed the penalty imposed. The payment owed on the penalty shall be reduced by the amount of the costs paid.

     (2) In any civil action brought by the attorney general upon the basis that the attorney general has determined that the board's action was clearly erroneous, the court shall not proceed with the action unless the attorney general has first shown, and the court has found, that the action of the board was clearly erroneous.

     NEW SECTION. Sec. 220. HEARINGS CONDUCTED BY ADMINISTRATIVE LAW JUDGE. If an ethics board finds that there is reasonable cause to believe that a violation has occurred, the board shall consider the possibility of the alleged violator having to pay a total amount of penalty and costs of more than five hundred dollars. Based on such consideration, the board may give the person who is the subject of the complaint the option to have an administrative law judge conduct the hearing and rule on procedural and evidentiary matters. The board may also, on its own initiative, provide for retaining an administrative law judge. An ethics board may not require total payment of more than five hundred dollars in penalty and costs in any case where an administrative law judge is not used and the board did not give such option to the person who is the subject of the complaint.

     NEW SECTION. Sec. 221. RESCISSION OF STATE ACTION. (1) The attorney general may, on request of the governor or the appropriate agency, and in addition to other available rights of rescission, bring an action in the superior court of Thurston county to cancel or rescind state action taken by a state officer or state employee, without liability to the state of Washington, contractual or otherwise, if the governor or ethics board has reason to believe that: (a) A violation of this chapter or rules adopted under it has substantially influenced the state action, and (b) the interest of the state requires the cancellation or rescission. The governor may suspend state action pending the determination of the merits of the controversy under this section. The court may permit persons affected by the governor's actions to post an adequate bond pending such resolution to ensure compliance by the defendant with the final judgment, decree, or other order of the court.

     (2) This section does not limit other available remedies.

     Sec. 222. RCW 42.18.260 and 1969 ex.s. c 234 s 26 are each amended to read as follows:

     (1) ((The head of an agency may dismiss, suspend, or take such other action as may be appropriate in the circumstances in respect to any state employee of his agency upon finding that such employee has violated this chapter or regulations promulgated hereunder. Such action may include the imposition of conditions of the nature described in RCW 42.18.270(1))) A violation of this chapter or rules adopted under it is grounds for disciplinary action.

     (2) The procedures for any such action shall correspond to those applicable for disciplinary action for employee misconduct generally; for those state officers and state employees not specifically exempted ((therein)) in chapter 41.06 RCW, the rules set forth in ((the state civil service law,)) chapter 41.06 RCW((,)) shall apply. Any action against the state officer or state employee shall be subject to judicial review to the extent provided by law for disciplinary action for misconduct of state officers and state employees of the same category and grade.

     NEW SECTION. Sec. 223. ADDITIONAL INVESTIGATIVE AUTHORITY. In addition to other authority under this chapter, the attorney general may investigate persons not under the jurisdiction of an ethics board whom the attorney general has reason to believe were involved in transactions in violation of this chapter or rules adopted under it.

     NEW SECTION. Sec. 224. LIMITATIONS PERIOD. Any action taken under this chapter must be commenced within five years from the date of the violation. However, if it is shown that the violation was not discovered because of concealment by the person charged, then the action must be commenced within two years from the date the violation was discovered or reasonably should have been discovered: (1) By any person with direct or indirect supervisory responsibilities over the person who allegedly committed the violation; or (2) if no person has direct or indirect supervisory authority over the person who committed the violation, by the appropriate ethics board.

     NEW SECTION. Sec. 225. The members of the legislative ethics board created by section 201 of this act and the executive ethics board created by section 204 of this act shall be appointed no later than October 1, 1994. Notwithstanding the authority granted to these boards by sections 202 and 205 of this act, until January 1, 1995, the authority of each board shall be limited to conducting meetings and incurring expenses solely for administrative and organizational purposes.

     This section shall expire January 1, 1995.

     NEW SECTION. Sec. 226. Any violations occurring prior to January 1, 1995, of any of the following laws shall be disposed of as if chapter . . ., Laws of 1994 (this act) were not enacted and such laws continued in full force and effect: RCW 42.17.130, chapter 42.18 RCW, chapter 42.21 RCW, and chapter 42.22 RCW.

     NEW SECTION. Sec. 227. The citizen members of the legislative ethics board and the members of the executive ethics board shall be compensated as provided in RCW 43.03.250 and reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060. Legislator members of the legislative ethics board shall be reimbursed as provided in RCW 44.04.120.

PART III

MISCELLANEOUS PROVISIONS


     NEW SECTION. Sec. 301. LIBERAL CONSTRUCTION. This chapter shall be construed liberally to effectuate its purposes and policy and to supplement existing laws as may relate to the same subject.

     NEW SECTION. Sec. 302. PARTS AND CAPTIONS NOT LAW. Parts and captions used in this act do not constitute any part of the law.

     NEW SECTION. Sec. 303. The following sections are each recodified as sections in chapter 42.-- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act):

RCW 42.18.217

RCW 42.18.230

RCW 42.18.260

RCW 42.18.270

RCW 42.18.330

RCW 42.22.050

     NEW SECTION. Sec. 304. The following acts or parts of acts are each repealed:

     (1) RCW 42.18.010 and 1969 ex.s. c 234 s 1;

     (2) RCW 42.18.020 and 1969 ex.s. c 234 s 2;

     (3) RCW 42.18.030 and 1969 ex.s. c 234 s 3;

     (4) RCW 42.18.040 and 1969 ex.s. c 234 s 4;

     (5) RCW 42.18.050 and 1969 ex.s. c 234 s 5;

     (6) RCW 42.18.060 and 1969 ex.s. c 234 s 6;

     (7) RCW 42.18.070 and 1969 ex.s. c 234 s 7;

     (8) RCW 42.18.080 and 1969 ex.s. c 234 s 8;

     (9) RCW 42.18.090 and 1969 ex.s. c 234 s 9;

     (10) RCW 42.18.100 and 1969 ex.s. c 234 s 10;

     (11) RCW 42.18.110 and 1969 ex.s. c 234 s 11;

     (12) RCW 42.18.120 and 1969 ex.s. c 234 s 12;

     (13) RCW 42.18.130 and 1973 c 137 s 1 & 1969 ex.s. c 234 s 13;

     (14) RCW 42.18.140 and 1969 ex.s. c 234 s 14;

     (15) RCW 42.18.150 and 1969 ex.s. c 234 s 15;

     (16) RCW 42.18.170 and 1969 ex.s. c 234 s 17;

     (17) RCW 42.18.180 and 1969 ex.s. c 234 s 18;

     (18) RCW 42.18.190 and 1969 ex.s. c 234 s 19;

     (19) RCW 42.18.200 and 1969 ex.s. c 234 s 20;

     (20) RCW 42.18.210 and 1969 ex.s. c 234 s 21;

     (21) RCW 42.18.213 and 1987 c 426 s 1;

     (22) RCW 42.18.215 and 1987 c 426 s 2;

     (23) RCW 42.18.221 and 1989 c 96 s 6 & 1987 c 426 s 4;

     (24) RCW 42.18.240 and 1969 ex.s. c 234 s 24;

     (25) RCW 42.18.250 and 1969 ex.s. c 234 s 25;

     (26) RCW 42.18.280 and 1969 ex.s. c 234 s 28;

     (27) RCW 42.18.290 and 1973 c 137 s 2 & 1969 ex.s. c 234 s 29;

     (28) RCW 42.18.300 and 1973 c 137 s 3 & 1969 ex.s. c 234 s 30;

     (29) RCW 42.18.310 and 1969 ex.s. c 234 s 31;

     (30) RCW 42.18.320 and 1969 ex.s. c 234 s 32;

     (31) RCW 42.18.900 and 1969 ex.s. c 234 s 40;

     (32) RCW 42.20.010 and 1969 ex.s. c 234 s 34 & 1909 c 249 s 82;

     (33) RCW 42.21.010 and 1965 ex.s. c 150 s 1;

     (34) RCW 42.21.020 and 1989 c 175 s 93, 1971 c 81 s 106, & 1965 ex.s. c 150 s 2;

     (35) RCW 42.21.030 and 1965 ex.s. c 150 s 3;

     (36) RCW 42.21.040 and 1965 ex.s. c 150 s 4;

     (37) RCW 42.21.050 and 1965 ex.s. c 150 s 5;

     (38) RCW 42.21.080 and 1965 ex.s. c 150 s 8;

     (39) RCW 42.21.090 and 1969 ex.s. c 234 s 36;

     (40) RCW 42.22.010 and 1959 c 320 s 1;

     (41) RCW 42.22.020 and 1959 c 320 s 2;

     (42) RCW 42.22.030 and 1961 c 268 s 8 & 1959 c 320 s 3;

     (43) RCW 42.22.040 and 1989 c 11 s 13 & 1959 c 320 s 4;

     (44) RCW 42.22.060 and 1959 c 320 s 6;

     (45) RCW 42.22.070 and 1959 c 320 s 7;

     (46) RCW 42.22.120 and 1969 ex.s. c 234 s 37;

     (47) RCW 44.60.010 and 1977 ex.s. c 218 s 1 & 1967 ex.s. c 150 s 1;

     (48) RCW 44.60.020 and 1980 c 87 s 43, 1977 ex.s. c 218 s 2, & 1967 ex.s. c 150 s 2;

     (49) RCW 44.60.030 and 1967 ex.s. c 150 s 3;

     (50) RCW 44.60.040 and 1977 ex.s. c 218 s 3 & 1967 ex.s. c 150 s 4;

     (51) RCW 44.60.050 and 1984 c 287 s 92, 1979 c 151 s 159, 1977 ex.s. c 218 s 4, 1975-'76 2nd ex.s. c 34 s 135, & 1967 ex.s. c 150 s 5;

     (52) RCW 44.60.070 and 1980 c 165 s 1, 1977 ex.s. c 218 s 5, & 1967 ex.s. c 150 s 6;

     (53) RCW 44.60.080 and 1977 ex.s. c 218 s 6 & 1967 ex.s. c 150 s 8;

     (54) RCW 44.60.090 and 1967 ex.s. c 150 s 9;

     (55) RCW 44.60.100 and 1977 ex.s. c 218 s 7;

     (56) RCW 44.60.110 and 1980 c 165 s 2 & 1977 ex.s. c 218 s 8;

     (57) RCW 44.60.120 and 1977 ex.s. c 218 s 9; and

     (58) RCW 44.60.130 and 1977 ex.s. c 218 s 10.

     Sec. 305. RCW 27.26.070 and 1989 c 96 s 3 are each amended to read as follows:

     (1) The commission may cooperate with other agencies both inside and outside the state of Washington to establish a private, nonprofit corporation for the purpose of providing automated bibliographic, computer-based telecommunications, interlibrary, reference, and referral systems, computer network services, and related library services that are equivalent to the services provided by the western library network on June 1, 1989. The commission may adopt policies and rules consistent with the purposes and provisions of RCW 27.26.070 through 27.26.090 and section 11, chapter 96, Laws of 1989 and ((RCW 42.18.221)) chapter 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act) pursuant to the administrative procedure act.

     (2) The commission may terminate the services provided by the western library network before June 30, 1997, if a successor organization agrees to assume full responsibility for providing services that are equivalent to the services provided by the western library network on June 1, 1989, to the state library, other agencies of state and local government, and other users of the western library network. The commission may not terminate western library network services within six months after June 1, 1989. The commission may not enter into a contract with a successor organization for the delivery of network services after five and one-half years from June 1, 1989.

     Sec. 306. RCW 28B.50.060 and 1991 c 238 s 31 are each amended to read as follows:

     A director of the state system of community and technical colleges shall be appointed by the college board and shall serve at the pleasure of the college board. The director shall be appointed with due regard to the applicant's fitness and background in education, and knowledge of and recent practical experience in the field of educational administration particularly in institutions beyond the high school level. The college board may also take into consideration an applicant's proven management background even though not particularly in the field of education.

     The director shall devote his or her time to the duties of his or her office and shall not have any direct pecuniary interest in or any stock or bonds of any business connected with or selling supplies to the field of education within this state, in keeping with chapter ((42.18 RCW, the executive conflict of interest act)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act).

     The director shall receive a salary to be fixed by the college board and shall be reimbursed for travel expenses incurred in the discharge of his or her official duties in accordance with RCW 43.03.050 and 43.03.060((, as now existing or hereafter amended)).

     The director shall be the executive officer of the college board and serve as its secretary and under its supervision shall administer the provisions of this chapter and the rules((, regulations)) and orders established thereunder and all other laws of the state. The director shall attend, but not vote at, all meetings of the college board. The director shall be in charge of offices of the college board and responsible to the college board for the preparation of reports and the collection and dissemination of data and other public information relating to the state system of community and technical colleges. At the direction of the college board, the director shall, together with the chairman of the college board, execute all contracts entered into by the college board.

     The director shall, with the approval of the college board: (1) Employ necessary assistant directors of major staff divisions who shall serve at the director's pleasure on such terms and conditions as the director determines, and (2) subject to the provisions of chapter ((28B.16)) 41.06 RCW((, the higher education personnel law,)) the director shall, with the approval of the college board, appoint and employ such field and office assistants, clerks and other employees as may be required and authorized for the proper discharge of the functions of the college board and for whose services funds have been appropriated.

     The board may, by written order filed in its office, delegate to the director any of the powers and duties vested in or imposed upon it by this chapter. Such delegated powers and duties may be exercised by the director in the name of the college board.

     Sec. 307. RCW 28C.18.040 and 1991 c 238 s 5 are each amended to read as follows:

     (1) The director shall serve as chief executive officer of the board who shall administer the provisions of this chapter, employ such personnel as may be necessary to implement the purposes of this chapter, and utilize staff of existing operating agencies to the fullest extent possible.

     (2) The director shall not be the chair of the board.

     (3) Subject to the approval of the board, the director shall appoint necessary deputy and assistant directors and other staff who shall be exempt from the provisions of chapter 41.06 RCW. The director's appointees shall serve at the director's pleasure on such terms and conditions as the director determines but subject to ((the code of ethics contained in chapter 42.18 RCW)) chapter 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act).

     (4) The director shall appoint and employ such other employees as may be required for the proper discharge of the functions of the board.

     (5) The director shall, as permissible under P.L. 101-392, as amended, integrate the staff of the council on vocational education, and contract with the state board for community and technical colleges for assistance for adult basic skills and literacy policy development and planning as required by P.L. 100-297, as amended.

     Sec. 308. RCW 35.02.130 and 1991 c 360 s 3 are each amended to read as follows:

     The city or town officially shall become incorporated at a date from one hundred eighty days to three hundred sixty days after the date of the election on the question of incorporation. An interim period shall exist between the time the newly elected officials have been elected and qualified and this official date of incorporation. During this interim period, the newly elected officials are authorized to adopt ordinances and resolutions which shall become effective on or after the official date of incorporation, and to enter into contracts and agreements to facilitate the transition to becoming a city or town and to ensure a continuation of governmental services after the official date of incorporation. Periods of time that would be required to elapse between the enactment and effective date of such ordinances, including but not limited to times for publication or for filing referendums, shall commence upon the date of such enactment as though the city or town were officially incorporated.

     During this interim period, the city or town governing body may adopt rules establishing policies and procedures under the state environmental policy act, chapter 43.21C RCW, and may use these rules and procedures in making determinations under the state environmental policy act, chapter 43.21C RCW.

     During this interim period, the newly formed city or town and its governing body shall be subject to the following as though the city or town were officially incorporated: RCW 4.24.470 relating to immunity; chapter 42.17 RCW relating to open government; chapter 40.14 RCW relating to the preservation and disposition of public records; chapters 42.20((, 42.22,)) and 42.23 RCW relating to ethics and conflicts of interest; chapters 42.30 and 42.32 RCW relating to open public meetings and minutes; RCW 35.22.288, 35.23.310, 35.24.220, 35.27.300, 35A.12.160, as appropriate, and chapter 35A.65 RCW relating to the publication of notices and ordinances; RCW 35.21.875 and 35A.21.230 relating to the designation of an official newspaper; RCW 36.16.138 relating to liability insurance; RCW 35.22.620, 35.23.352, and 35A.40.210, as appropriate, and statutes referenced therein relating to public contracts and bidding; and chapter 39.34 RCW relating to interlocal cooperation. Tax anticipation or revenue anticipation notes or warrants and other short-term obligations may be issued and funds may be borrowed on the security of these instruments during this interim period, as provided in chapter 39.50 RCW. Funds also may be borrowed from federal, state, and other governmental agencies in the same manner as if the city or town were officially incorporated.

     RCW 84.52.020 and 84.52.070 shall apply to the extent that they may be applicable, and the governing body of such city or town may take appropriate action by ordinance during the interim period to adopt the property tax levy for its first full calendar year following the interim period.

     The governing body of the new city or town may acquire needed facilities, supplies, equipment, insurance, and staff during this interim period as if the city or town were in existence. An interim city manager or administrator, who shall have such administrative powers and duties as are delegated by the governing body, may be appointed to serve only until the official date of incorporation. After the official date of incorporation the governing body of such a new city organized under the council manager form of government may extend the appointment of such an interim manager or administrator with such limited powers as the governing body determines, for up to ninety days. This governing body may submit ballot propositions to the voters of the city or town to authorize taxes to be collected on or after the official date of incorporation, or authorize an annexation of the city or town by a fire protection district or library district to be effective immediately upon the effective date of the incorporation as a city or town.

     The boundaries of a newly incorporated city or town shall be deemed to be established for purposes of RCW 84.09.030 on the date that the results of the initial election on the question of incorporation are certified or the first day of January following the date of this election if the newly incorporated city or town does not impose property taxes in the same year that the voters approve the incorporation.

     The newly elected officials shall take office immediately upon their election and qualification with limited powers during this interim period as provided in this section. They shall acquire their full powers as of the official date of incorporation and shall continue in office until their successors are elected and qualified at the next general municipal election after the official date of incorporation: PROVIDED, That if the date of the next general municipal election is less than twelve months after the date of the first election of councilmembers, those initially elected councilmembers shall serve until their successors are elected and qualified at the next following general municipal election as provided in RCW 29.04.170. For purposes of this section, the general municipal election shall be the date on which city and town general elections are held throughout the state of Washington, pursuant to RCW 29.13.020.

     The official date of incorporation shall be on a date from one hundred eighty to three hundred sixty days after the date of the election on the question of incorporation, as specified in a resolution adopted by the governing body during this interim period. A copy of the resolution shall be filed with the county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located. If the governing body fails to adopt such a resolution, the official date of incorporation shall be three hundred sixty days after the date of the election on the question of incorporation. The county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located shall file a notice with the county assessor that the city or town has been authorized to be incorporated immediately after the favorable results of the election on the question of incorporation have been certified. The county legislative authority shall file a notice with the secretary of state that the city or town is incorporated as of the official date of incorporation.

     Sec. 309. RCW 35.21.418 and 1984 c 1 s 2 are each amended to read as follows:

     A commission, established by an agreement between a Washington municipality and the Province of British Columbia to carry out a treaty between the United States of America and Canada as authorized in RCW 35.21.417, shall be public and shall have all powers and capacity necessary and appropriate for the purposes of performing its functions under the agreement, including, but not limited to, the following powers and capacity: To acquire and dispose of real property other than by condemnation; to enter into contracts; to sue and be sued in either Canada or the United States; to establish an endowment fund in either or both the United States and Canada and to invest the endowment fund in either or both countries; to solicit, accept, and use donations, grants, bequests, or devises intended for furthering the functions of the endowment; to adopt such rules or procedures as it deems desirable for performing its functions; to engage advisors and consultants; to establish committees and subcommittees; to adopt rules for its governance; to enter into agreements with public and private entities; and to engage in activities necessary and appropriate for implementing the agreement and the treaty.

     The endowment fund and commission may not be subject to state or local taxation. A commission, so established, may not be subject to statutes and laws governing Washington cities and municipalities in the conduct of its internal affairs: PROVIDED, That all commission members appointed by the municipality shall comply with chapter ((42.22 RCW)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act), and: PROVIDED FURTHER, That all commission meetings held within the state of Washington shall be held in compliance with chapter 42.30 RCW. All obligations or liabilities incurred by the commission shall be satisfied exclusively from its own assets and insurance.

     Sec. 310. RCW 43.33A.110 and 1989 c 179 s 1 are each amended to read as follows:

     The state investment board may make appropriate rules and regulations for the performance of its duties. The board shall establish investment policies and procedures designed exclusively to maximize return at a prudent level of risk. However, in the case of the department of labor and industries' accident, medical aid, and reserve funds, the board shall establish investment policies and procedures designed to attempt to limit fluctuations in industrial insurance premiums and, subject to this purpose, to maximize return at a prudent level of risk. The board shall adopt rules to ensure that its members perform their functions in compliance with chapter ((42.18 RCW)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act). Rules adopted by the board shall be adopted pursuant to chapter 34.05 RCW.

     Sec. 311. RCW 43.72.020 and 1993 c 492 s 403 are each amended to read as follows:

     (1) There is created an agency of state government to be known as the Washington health services commission. The commission shall consist of five members reflecting ethnic and racial diversity, appointed by the governor, with the consent of the senate. One member shall be designated by the governor as chair and shall serve at the pleasure of the governor. The insurance commissioner shall serve as an additional nonvoting member. Of the initial members, one shall be appointed to a term of three years, two shall be appointed to a term of four years, and two shall be appointed to a term of five years. Thereafter, members shall be appointed to five-year terms. Vacancies shall be filled by appointment for the remainder of the unexpired term of the position being vacated.

     (2) Members of the commission shall have no pecuniary interest in any business subject to regulation by the commission and shall be subject to chapter ((42.18 RCW, the executive branch conflict of interest act)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act).

     (3) Members of the commission shall occupy their positions on a full-time basis and are exempt from the provisions of chapter 41.06 RCW. Commission members and the professional commission staff are subject to the public disclosure provisions of chapter 42.17 RCW. Members shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. A majority of the members of the commission constitutes a quorum for the conduct of business.

     Sec. 312. RCW 51.36.110 and 1993 c 515 s 6 are each amended to read as follows:

     The director of the department of labor and industries or the director's authorized representative shall have the authority to:

     (1) Conduct audits and investigations of providers of medical, chiropractic, dental, vocational, and other health services furnished to industrially injured workers pursuant to Title 51 RCW. In the conduct of such audits or investigations, the director or the director's authorized representatives may examine all records, or portions thereof, including patient records, for which services were rendered by a health services provider and reimbursed by the department, notwithstanding the provisions of any other statute which may make or purport to make such records privileged or confidential: PROVIDED, That no original patient records shall be removed from the premises of the health services provider, and that the disclosure of any records or information obtained under authority of this section by the department of labor and industries is prohibited and constitutes a violation of ((RCW 42.22.040)) section 105 of this act, unless such disclosure is directly connected to the official duties of the department: AND PROVIDED FURTHER, That the disclosure of patient information as required under this section shall not subject any physician or other health services provider to any liability for breach of any confidential relationships between the provider and the patient: AND PROVIDED FURTHER, That the director or the director's authorized representative shall destroy all copies of patient medical records in their possession upon completion of the audit, investigation, or proceedings;

     (2) Approve or deny applications to participate as a provider of services furnished to industrially injured workers pursuant to Title 51 RCW; and

     (3) Terminate or suspend eligibility to participate as a provider of services furnished to industrially injured workers pursuant to Title 51 RCW.

     Sec. 313. RCW 66.08.080 and 1981 1st ex.s. c 5 s 3 are each amended to read as follows:

     Except as provided by chapter ((42.18 RCW)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act), no member of the board and no employee of the board shall have any interest, directly or indirectly, in the manufacture of liquor or in any liquor sold under this title, or derive any profit or remuneration from the sale of liquor, other than the salary or wages payable to him in respect of his office or position, and shall receive no gratuity from any person in connection with such business.

     Sec. 314. RCW 67.16.160 and 1973 1st ex.s. c 216 s 5 are each amended to read as follows:

     No later than ninety days after July 16, 1973 the horse racing commission shall promulgate, pursuant to chapter 34.05 RCW, reasonable rules ((and regulations)) implementing to the extent applicable to the circumstances of the horse racing commission the conflict of interest laws of the state of Washington as set forth in chapters ((42.18,)) 42.21 and ((42.22 RCW)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act).

     Sec. 315. RCW 80.50.030 and 1990 c 12 s 3 are each amended to read as follows:

     (1) There is created and established the energy facility site evaluation council.

     (2)(a) The chairman of the council shall be appointed by the governor with the advice and consent of the senate, shall have a vote on matters before the council, shall serve for a term coextensive with the term of the governor, and is removable for cause. The chairman may designate a member of the council to serve as acting chairman in the event of the chairman's absence. The chairman is a "state employee" for the purposes of chapter ((42.18 RCW)) 42.--- RCW (sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act). As applicable, when attending meetings of the council(([,])), members may receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060, and are eligible for compensation under RCW 43.03.240.

     (b) The chairman or a designee shall execute all official documents, contracts, and other materials on behalf of the council. The Washington state energy office shall provide all administrative and staff support for the council. The director of the energy office has supervisory authority over the staff of the council and shall employ such personnel as are necessary to implement this chapter. Not more than three such employees may be exempt from chapter 41.06 RCW.

     (3) The council shall consist of the directors, administrators, or their designees, of the following departments, agencies, commissions, and committees or their statutory successors:

     (a) Department of ecology;

     (b) Department of ((fisheries;

     (c) Department of)) fish and wildlife;

     (((d))) (c) Parks and recreation commission;

     (((e))) (d) Department of health;

     (((f))) (e) State energy office;

     (((g))) (f) Department of community, trade, and economic development;

     (((h))) (g) Utilities and transportation commission;

     (((i))) (h) Office of financial management;

     (((j))) (i) Department of natural resources;

     (((k) Department of community development;

     (l))) (j) Department of agriculture;

     (((m))) (k) Department of transportation.

     (4) The appropriate county legislative authority of every county wherein an application for a proposed site is filed shall appoint a member or designee as a voting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the county which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site;

     (5) The city legislative authority of every city within whose corporate limits an energy plant is proposed to be located shall appoint a member or designee as a voting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the city which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site.

     (6) For any port district wherein an application for a proposed port facility is filed subject to this chapter, the port district shall appoint a member or designee as a nonvoting member to the council. The member or designee so appointed shall sit with the council only at such times as the council considers the proposed site for the port district which he or she represents, and such member or designee shall serve until there has been a final acceptance or rejection of the proposed site. The provisions of this subsection shall not apply if the port district is the applicant, either singly or in partnership or association with any other person.

     Sec. 316. RCW 86.09.286 and 1969 ex.s. c 234 s 35 are each amended to read as follows:

     No director or any other officer named in this chapter shall in any manner be interested, directly or indirectly, in any contract awarded or to be awarded by the board, or in the profits to be derived therefrom; and for any violation of this provision, such officer shall be deemed guilty of a misdemeanor, and such conviction shall work a forfeiture of his office, and he shall be punished by a fine not exceeding five hundred dollars, or by imprisonment in the county jail not exceeding six months, or by both fine and imprisonment: PROVIDED, That nothing in this section contained shall be construed to prevent any district officer from being employed by the district as foreman or as a day laborer: PROVIDED FURTHER, That this section shall have no application to any person who is a state employee as defined in ((RCW 42.18.130)) section 101 of this act.

     NEW SECTION. Sec. 317. A new section is added to chapter 42.17 RCW to read as follows:

     RCW 42.17.130 does not apply to any person who is a state officer or state employee as defined in section 101 of this act.

     NEW SECTION. Sec. 318. Sections 101 through 109, 111 through 115, 118 through 120, 201, 202, 203, 205 through 221, 223, 224, 227, 301, and 302 of this act shall constitute a new chapter in Title 42 RCW.

     NEW SECTION. Sec. 319. Sections 101 through 121, 203, 204, 207 through 224, and 301 through 317 of this act shall take effect January 1, 1995.

     NEW SECTION. Sec. 320. 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.", and the same are herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


MOTION


    On motion of Senator Drew, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 6111.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6111, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6111, as amended by the House, 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, 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., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 48.

    Voting nay: Senator Smith, L. - 1.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6111, as amended by the House, 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 2:00 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.


    The Senate was called to order at 2:55 p.m. by President Pritchard.


MESSAGE FROM THE HOUSE


March 8, 1994


MR. PRESIDENT:

    The House does not concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2737 and asks the Senate to recede therefrom, and the same are herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


MOTION


    On motion of Senator Skratek, the rules were suspended, Engrossed Substitute House Bill No. 2737 was returned to second reading and read the second time.

MOTION


    Senator Skratek moved that the following 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 4 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" means activities related to: Manufacturing, processing, research, production, assembly, tooling, warehousing, 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 43.163.080 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. 3. 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. 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. 4. 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, per year, included under the authority's general plan of economic development finance objectives;

     (2) The authority may 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, if authorized by the legislature, such other economic development financing programs adopted in future general plans of economic development finance objectives developed under RCW 43.163.090.

     (4) The authority may not issue any bonds for the programs authorized under this section after June 30, 2000.

     Sec. 5. RCW 43.163.130 and 1989 c 279 s 14 are each amended to read as follows:

     (1) The authority may issue its nonrecourse revenue bonds in order to obtain the funds to carry out the programs authorized in this chapter. The bonds shall be special obligations of the authority, payable solely out of the special fund or funds established by the authority for their repayment.

     (2) Any bonds issued under this chapter may be secured by a financing document between the authority and the purchasers or owners of such bonds or between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state.

     (a) The financing document may pledge or assign, in whole or in part, the revenues and funds held or to be received by the authority, any present or future contract or other rights to receive the same, and the proceeds thereof.

     (b) The financing document may contain such provisions for protecting and enforcing the rights, security, and remedies of bondowners as may be reasonable and proper, including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event of default which may include the acceleration of maturities, restrictions on the individual rights of action by bondowners, and covenants setting forth duties of and limitations on the authority in conduct of its programs and the management of its property.

     (c) In addition to other security provided in this chapter or otherwise by law, bonds issued by the authority may be secured, in whole or in part, by financial guaranties, by insurance or by letters of credit issued to the authority or a trustee or any other person, by any bank, trust company, insurance or surety company or other financial institution, within or without the state. The authority may pledge or assign, in whole or in part, the revenues and funds held or to be received by the authority, any present or future contract or other rights to receive the same, and the proceeds thereof, as security for such guaranties or insurance or for the reimbursement by the authority to any issuer of such letter of credit of any payments made under such letter of credit.

     (3) Without limiting the powers of the authority contained in this chapter, in connection with each issue of its obligation bonds, the authority shall create and establish one or more special funds, including, but not limited to debt service and sinking funds, reserve funds, project funds, and such other special funds as the authority deems necessary, useful, or convenient.

     (4) Any security interest created against the unexpended bond proceeds and against the special funds created by the authority shall be immediately valid and binding against the money and any securities in which the money may be invested without authority or trustee possession. The security interest shall be prior to any party having any competing claim against the moneys or securities, without filing or recording under Article 9 of the Uniform Commercial Code, Title 62A RCW, and regardless of whether the party has notice of the security interest.

     (5) The bonds may be issued as serial bonds, term bonds or any other type of bond instrument consistent with the provisions of this chapter. The bonds shall bear such date or dates; mature at such time or times; bear interest at such rate or rates, either fixed or variable; be payable at such time or times; be in such denominations; be in such form; bear such privileges of transferability, 2exchangeability, and interchangeability; be subject to such terms of redemption; and be sold at public or private sale, in such manner, at such time or times, and at such price or prices as the authority shall determine. The bonds shall be executed by the manual or facsimile signatures of the authority's chair and either its secretary or executive director, and may be authenticated by the trustee (if the authority determines to use a trustee) or any registrar which may be designated for the bonds by the authority.

     (6) Bonds may be issued by the authority to refund other outstanding authority bonds, at or prior to maturity of, and to pay any redemption premium on, the outstanding bonds. Bonds issued for refunding purposes may be combined with bonds issued for the financing or refinancing of new projects. Pending the application of the proceeds of the refunding bonds to the redemption of the bonds to be redeemed, the authority may enter into an agreement or agreements with a corporate trustee regarding the interim investment of the proceeds and the application of the proceeds and the earnings on the proceeds to the payment of the principal of and interest on, and the redemption of, the bonds to be redeemed.

     (7) The bonds of the authority may be negotiable instruments under Title 62A RCW.

     (8) Neither the members of the authority, nor its employees or agents, nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance of the bonds.

     (9) The authority may purchase its bonds with any of its funds available for the purchase. The authority may hold, pledge, cancel or resell the bonds subject to and in accordance with agreements with bondowners.

     (10) The authority shall not exceed two hundred fifty million dollars in total outstanding debt at any time.

     (11) The state finance committee shall be notified in advance of the issuance of bonds by the authority in order to promote the orderly offering of obligations in the financial markets.

     (12) The authority may not issue any bonds after June 30, 2000.

     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 striking amendment by Senator Skratek to Engrossed Substitute House Bill No. 2737, under suspension of the rules.

    The motion by Senator Skratek carried and the striking amendment was adopted under suspension of the rules.


        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, 43.163.080, 43.163.120, and 43.163.130; 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 under suspension of the rules, 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 Rinehart and Quigley were excused.

    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 under suspension of the rules.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2737, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 4; Absent, 2; Excused, 2.

    Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, Ludwig, McAuliffe, McCaslin, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 41.

    Voting nay: Senators Cantu, Morton, Nelson and Newhouse - 4.

    Absent: Senators McDonald and Oke - 2.

    Excused: Senators Quigley and Rinehart - 2.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2737, as amended by the Senate under suspension of the rules, 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.


MESSAGE FROM THE HOUSE


March 9, 1994


MR. PRESIDENT:

    The House insists on its position regarding the Senate amendment(s) to HOUSE BILL No. 2480 and asks the Senate for a conference thereon. The Speaker has appointed the following members as conferees: Representatives Holm, G. Fisher and Foreman.

MARILYN SHOWALTER, Chief Clerk


MOTION


    On motion of Senator Drew, the Senate grants the request of the House for a conference on House Bill No. 2480 and the Senate amendment(s) thereto.


APPOINTMENT OF CONFERENCE COMMITTEE


    The President appointed as members of the Conference Committee on House Bill No. 2480 and the Senate amendment(s) thereto: Senators Hargrove, Oke and Owen.


MOTION


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


MOTION


    On motion of Senator Linda Smith, Senators McDonald and Oke were excused.


CONFERENCE COMMITTEE REPORT


E2SHB 2605                                                                                                                                                                                 March 8, 1994


Includes "NEW ITEMS": YES


Changing higher education statutory relationships


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2605, Changing higher education statutory relationships, have had the same under consideration and we recommend that:

    The Senate Committee on Higher Education amendment, as amended, March 4, 1994, be adopted; and that the Committee on Higher Education amendment be further amended as follows:

    Beginning on page 2, line 4 of the amendment, strike all of sections 3 and 4

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

     On page 7, after line 22 of the amendment, insert the following:

     "NEW SECTION. Sec. 7. Unless the context clearly requires otherwise, the definitions in this section apply throughout this section and sections 8 and 9 of this act.

     (1) "Eligible student" means an enlisted member or an officer of the rank of captain or below in the Washington national guard who is a resident student as defined in RCW 28B.15.012 and 28B.15.013, who attends an institution of higher education that is located in this state and accredited by the Northwest Association of Schools and Colleges, and who meets any additional selection criteria adopted by the office.

     (2) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a member of the Washington national guard under rules adopted by the office.

     (3) "Forgiven" or "to forgive" or "forgiveness" means either to render service in the Washington national guard in lieu of monetary repayment, or to be relieved of the service obligation under rules adopted by the office.

     (4) "Office" means the office of the adjutant general of the state military department.

     (5) "Participant" means an eligible student who has received a conditional scholarship under this chapter.

     (6) "Service obligation" means serving in the Washington national guard for one additional year for each year of conditional scholarship received under this program.

     NEW SECTION. Sec. 8. The Washington state national guard conditional scholarship program is established. The program shall be administered by the office. In administering the program, the powers and duties of the office shall include, but need not be limited to:

     (1) The selection of eligible students to receive conditional scholarships;

     (2) The award of conditional scholarships funded by federal and state funds, private donations, or repayments from any participant who does not complete the participant's service obligation. Use of state funds is subject to available funds. The annual amount of each conditional scholarship may vary, but shall not exceed the annual cost of undergraduate tuition fees and services and activities fees at the University of Washington, plus an allowance for books and supplies;

     (3) The adoption of necessary rules and guidelines;

     (4) The adoption of participant selection criteria. The criteria may include but need not be limited to requirements for: Satisfactory progress, minimum grade point averages, enrollment in courses or programs that lead to a baccalaureate degree or an associate degree or a certificate, and satisfactory participation as a member of the Washington national guard;

     (5) The notification of participants of their additional service obligation or required repayment of the conditional scholarship; and

     (6) The collection of repayments from participants who do not meet the eligibility criteria or service obligations.

     NEW SECTION. Sec. 9. (1) Participants in the conditional scholarship program incur an obligation to repay the conditional scholarship, with interest, unless they serve in the Washington national guard for one additional year for each year of conditional scholarship received, under rules adopted by the office.

     (2) The entire principal and interest of each yearly repayment shall be forgiven for each additional year in which a participant serves in the Washington national guard, under rules adopted by the office.

     (3) If a participant elects to repay the conditional scholarship, the period of repayment shall be four years, with payments accruing quarterly commencing nine months from the date that the participant leaves the Washington national guard or withdraws from the institution of higher education, whichever comes first. The interest rate on the repayments shall be eight percent per year. Provisions for deferral and forgiveness shall be determined by the office.

     (4) The office is responsible for collection of repayments made under this section. The office shall exercise due diligence in such collection, maintaining all necessary records to ensure that maximum repayments are made. Collection and servicing of repayments under this section shall be pursued using the full extent of law, including wage garnishment if necessary. The office is responsible to forgive all or parts of such repayments under the criteria established in this section, and shall maintain all necessary records of forgiven payments. The office may contract with the higher education coordinating board for collection of repayments under this section.

     (5) Receipts from the payment of principal or interest paid by or on behalf of participants shall be deposited with the office and shall be used to cover the costs of granting the conditional scholarships, maintaining necessary records, and making collections under subsection (4) of this section. The office shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional scholarships to eligible students.

     NEW SECTION. Sec. 10. Sections 7 through 9 of this act shall constitute a new chapter in Title 28B RCW."

     On page 7, at the beginning of line 28 of the title amendment, strike "28B.15.012,"

     On page 7, line 29 of the title amendment, after "(uncodified);" strike everything through "28B.15 RCW." and insert "and adding a new chapter to Title 28B RCW."

     Committee on Higher Education amendment, as amended

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 28B.15.725 and 1993 sp.s. c 18 s 26 are each amended to read as follows:

     Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College may enter into undergraduate ((upper division)) student exchange agreements with ((comparable public four-year)) institutions of higher education of other states and agree to exempt participating undergraduate ((upper division)) students from payment of all or a portion of the nonresident tuition fees differential subject to the following restrictions:

     (1) In any given academic year, the number of students receiving a waiver at a state institution shall not exceed the number of that institution's students receiving nonresident tuition waivers at participating out-of-state institutions. Waiver imbalances that may occur in one year shall be off-set in the year immediately following.

     (2) Undergraduate ((upper division)) student participation in an exchange program authorized by this section is limited to one academic year.

     Sec. 2. 1989 c 290 s 1 (uncodified) is amended to read as follows:

     The legislature recognizes that a unique educational experience can result from an undergraduate ((upper division)) student attending an out-of-state institution. It also recognizes that some Washington residents may be unable to pursue such out-of-state enrollment owing to their limited financial resources and the higher cost of nonresident tuition. The legislature intends to facilitate expanded nonresident undergraduate ((upper division)) enrollment opportunities for residents of the state by authorizing the governing boards of the four-year institutions of higher education to enter into exchange programs with other states' ((comparable public four-year)) institutions with comparable programs wherein the participating institutions agree that visiting undergraduate ((upper division)) students will pay resident tuition rates of the host institutions.

     NEW SECTION. Sec. 3. A new section is added to chapter 28B.15 RCW to read as follows:

     For the purposes of determining resident tuition rates, resident students shall include American Indian students who meet two conditions. First, for a period of one year immediately before enrollment in a state institution of higher education as defined in RCW 28B.10.016, the student must have been domiciled in one or a combination of the following states: Idaho; Montana; Oregon; or Washington. Second, the students must be members of one of the following American Indian tribes whose traditional and customary tribal boundaries included portions of the state of Washington, or whose tribe was granted reserved lands within the state of Washington:

     (1) Colville Confederated Tribes;

     (2) Confederated Tribes of the Chehalis Reservation;

     (3) Hoh Indian Tribe;

     (4) Jamestown S'Klallam Tribe;

     (5) Kalispel Tribe of Indians;

     (6) Lower Elwha Klallam Tribe;

     (7) Lummi Nation;

     (8) Makah Indian Tribe;

     (9) Muckleshoot Indian Tribe;

     (10) Nisqually Indian Tribe;

     (11) Nooksack Indian Tribe;

     (12) Port Gamble S'Klallam Community;

     (13) Puyallup Tribe of Indians;

     (14) Quileute Tribe;

     (15) Quinault Indian Nation;

     (16) Confederated Tribes of Salish Kootenai;

     (17) Sauk Suiattle Indian Nation;

     (18) Shoalwater Bay Indian Tribe;

     (19) Skokomish Indian Tribe;

     (20) Snoqualmie Tribe;

     (21) Spokane Tribe of Indians;

     (22) Squaxin Island Tribe;

     (23) Stillaguamish Tribe;

     (24) Suquamish Tribe of the Port Madison Reservation;

     (25) Swinomish Indian Community;

     (26) Tulalip Tribes;

     (27) Upper Skagit Indian Tribe;

     (28) Yakama Indian Nation;

     (29) Coeur d'Alene Tribe;

     (30) Confederated Tribes of the Umatilla Indian Reservation;

     (31) Confederated Tribes of Warm Springs;

     (32) Kootenai Tribe; and

     (33) Nez Perce Tribe.

     Any student enrolled at a state institution of higher education as defined in RCW 28B.10.016 who is paying resident tuition under this section, and who has not established domicile in the state of Washington at least one year before enrollment, shall not be included in any calculation of state-funded enrollment for budgeting purposes, and no state general fund moneys shall be appropriated to a state institution of higher education for the support of such student.

     Sec. 4. RCW 28B.15.012 and 1993 sp.s. c 18 s 4 are each amended to read as follows:

     Whenever used in chapter 28B.15 RCW:

     (1) The term "institution" shall mean a public university, college, or community college within the state of Washington.

     (2) The term "resident student" shall mean: (a) A financially independent student who has had a domicile in the state of Washington for the period of one year immediately prior to the time of commencement of the first day of the semester or quarter for which the student has registered at any institution and has in fact established a bona fide domicile in this state primarily for purposes other than educational; (b) a dependent student, if one or both of the student's parents or legal guardians have maintained a bona fide domicile in the state of Washington for at least one year immediately prior to commencement of the semester or quarter for which the student has registered at any institution; (c) a student classified as a resident based upon domicile by an institution on or before May 31, 1982, who was enrolled at a state institution during any term of the 1982-1983 academic year, so long as such student's enrollment (excepting summer sessions) at an institution in this state is continuous; (d) any student who has spent at least seventy-five percent of both his or her junior and senior years in high schools in this state, whose parents or legal guardians have been domiciled in the state for a period of at least one year within the five-year period before the student graduates from high school, and who enrolls in a public institution of higher education within six months of leaving high school, for as long as the student remains continuously enrolled for three quarters or two semesters in any calendar year; ((or)) (e) a student who is the spouse or a dependent of a person who is on active military duty stationed in the state; or (f) a student who meets the requirements of section 3 of this act: PROVIDED, That a nonresident student enrolled for more than six hours per semester or quarter shall be considered as attending for primarily educational purposes, and for tuition and fee paying purposes only such period of enrollment shall not be counted toward the establishment of a bona fide domicile of one year in this state unless such student proves that the student has in fact established a bona fide domicile in this state primarily for purposes other than educational.

     (3) The term "nonresident student" shall mean any student who does not qualify as a "resident student" under the provisions of RCW 28B.15.012 and 28B.15.013. A nonresident student shall include:

     (a) A student attending an institution with the aid of financial assistance provided by another state or governmental unit or agency thereof, such nonresidency continuing for one year after the completion of such semester or quarter.

     (b) A person who is not a citizen of the United States of America who does not have permanent or temporary resident status or does not hold "Refugee-Parolee" or "Conditional Entrant" status with the United States immigration and naturalization service or is not otherwise permanently residing in the United States under color of law and who does not also meet and comply with all the applicable requirements in RCW 28B.15.012 and 28B.15.013.

     (4) The term "domicile" shall denote a person's true, fixed and permanent home and place of habitation. It is the place where the student intends to remain, and to which the student expects to return when the student leaves without intending to establish a new domicile elsewhere. The burden of proof that a student, parent or guardian has established a domicile in the state of Washington primarily for purposes other than educational lies with the student.

     (5) The term "dependent" shall mean a person who is not financially independent. Factors to be considered in determining whether a person is financially independent shall be set forth in rules and regulations adopted by the higher education coordinating board and shall include, but not be limited to, the state and federal income tax returns of the person and/or the student's parents or legal guardian filed for the calendar year prior to the year in which application is made and such other evidence as the board may require.

     Sec. 5. RCW 28B.50.839 and 1993 c 87 s 2 are each amended to read as follows:

     (1) In consultation with eligible community and technical colleges, the college board shall set priorities and guidelines for the program.

     (2) Under this section, a college shall not receive more than four faculty grants in twenty-five thousand dollar increments, with a maximum total of one hundred thousand dollars per campus in any biennium.

     (3) All community and technical colleges and foundations shall be eligible for matching trust funds. Institutions and foundations may apply to the college board for grants from the fund in twenty-five thousand dollar increments up to a maximum of one hundred thousand dollars when they can match the state funds with equal cash donations from private sources, except that in the initial year of the program, no college or foundation may receive more than one grant until every college or its foundation has received one grant. These donations shall be made specifically to the exceptional faculty awards program and deposited by the institution or foundation in a local endowment fund or a foundation's fund. Otherwise unrestricted gifts may be deposited in the endowment fund by the institution or foundation.

     (4) Once sufficient private donations are received by the institution or foundation, the institution shall inform the college board and request state matching funds. The college board shall evaluate the request for state matching funds based on program priorities and guidelines. The college board may ask the state treasurer to release the state matching funds to a local endowment fund established by the institution or a foundation's fund established by a foundation for each faculty award created.

     (5) A college, by action of its board of trustees, may transfer those exceptional faculty award funds accumulated in its local endowment fund between July 1, 1991, and July 25, 1993, to its foundation's local endowment fund established as provided in subsection (3) of this section.

     Sec. 6. RCW 28A.600.110 and 1988 c 210 s 4 are each amended to read as follows:

     There is established by the legislature of the state of Washington the Washington state scholars program. The purposes of this program annually are to:

     (1) Provide for the selection of three seniors residing in each legislative district in the state graduating from high schools ((in each legislative district)) who have distinguished themselves academically among their peers.

     (2) Maximize public awareness of the academic achievement, leadership ability, and community contribution of Washington state public and private high school seniors through appropriate recognition ceremonies and events at both the local and state level.

     (3) Provide a listing of the Washington scholars to all Washington state public and private colleges and universities to facilitate communication regarding academic programs and scholarship availability.

     (4) Make available a state level mechanism for utilization of private funds for scholarship awards to outstanding high school seniors.

     (5) Provide, on written request and with student permission, a listing of the Washington scholars to private scholarship selection committees for notification of scholarship availability.

     (6) Permit a waiver of tuition and services and activities fees as provided for in RCW 28B.15.543 and grants under RCW 28B.80.245."

     On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "amending RCW 28B.15.725, 28B.15.012, 28B.50.839, and 28A.600.110; amending 1989 c 290 s 1 (uncodified); and adding a new section to chapter 28B.15 RCW.",and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Bauer, Prince and Drew; Representatives Jacobsen, Quall and Carlson


MOTION


    On motion of Senator Bauer, the Senate adopted the Report of the Conference Committee on Engrossed Second Substitute House Bill No. 2605.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute House Bill No. 2605, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 2605, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 4; Absent, 0; Excused, 4.

    Voting yea: Senators Amondson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Loveland, Ludwig, McAuliffe, McCaslin, Moore, Morton, Moyer, Newhouse, Niemi, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 41.

    Voting nay: Senators Anderson, Cantu, Hochstatter and Nelson - 4.

    Excused: Senators McDonald, Oke, Quigley and Rinehart - 4.

    ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2605, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


EHB 1756                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Requiring the use of licensed or certified electricians for certain purposes


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED HOUSE BILL NO. 1756, Requiring the use of licensed or certified electricians for certain purposes, have had the same under consideration and we recommend that:

    All previous amendments not be adopted and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 19.28.610 and 1992 c 240 s 3 are each amended to read as follows:

     Nothing in RCW 19.28.510 through 19.28.620 shall be construed to require that a person obtain a license or a certified electrician in order to do electrical work at his or her residence or farm or place of business or on other property owned by him((: PROVIDED, HOWEVER, That)) or her unless the electrical work is on the construction of a new building intended for rent, sale, or lease. However, if the construction is of a new residential building with up to four units intended for rent, sale, or lease, the owner may receive an exemption from the requirement to obtain a license or use a certified electrician if he or she provides a signed affidavit to the department stating that he or she will be performing the work and will occupy one of the units as his or her principal residence. The owner shall apply to the department for this exemption and may only receive an exemption once every twenty-four months. It is intended that the owner receiving this exemption shall occupy the unit as his or her principal residence for twenty-four months after completion of the units. Nothing in RCW 19.28.510 through 19.28.620 shall be intended to derogate from or dispense with the requirements of any valid electrical code enacted by a city or town pursuant to RCW 19.28.010(((2)))(3), except that no code shall require the holder of a certificate of competency to demonstrate any additional proof of competency or obtain any other license or pay any fee in order to engage in the electrical construction trade((: AND PROVIDED FURTHER, That)). RCW 19.28.510 through 19.28.620 shall not apply to common carriers subject to Part I of the Interstate Commerce Act, nor to their officers and employees((: AND PROVIDED FURTHER, That)). Nothing in RCW 19.28.510 through 19.28.620 shall be deemed to apply to the installation or maintenance of telephone, telegraph, radio, or television wires and equipment; nor to any electrical utility or its employees in the installation, repair, and maintenance of electrical wiring, circuits, and equipment by or for the utility, or comprising a part of its plants, lines or systems. The licensing provisions of RCW 19.28.510 through 19.28.620 shall not apply to:

     (1) Persons making electrical installations on their own property((;

     (2))) or to regularly employed employees working on the premises of their employer, unless the electrical work is on the construction of a new building intended for rent, sale, or lease; or

     (((3))) (2) Employees of an employer while the employer is performing utility type work of the nature described in RCW 19.28.200 so long as such employees have registered in the state of Washington with or graduated from a state-approved outside lineman apprenticeship course that is recognized by the department and that qualifies a person to perform such work((:)).

     ((AND PROVIDED FURTHER, That))

     Nothing in RCW 19.28.510 through 19.28.620 shall be construed to restrict the right of any householder to assist or receive assistance from a friend, neighbor, relative or other person when none of the individuals doing the electrical installation hold themselves out as engaged in the trade or business of electrical installations. Nothing precludes any person who is exempt from the licensing requirements of this chapter under this section from obtaining a journeyman or specialty certificate of competency if they otherwise meet the requirements of this chapter."

     On page 1, line 1 of the title, after "19.28.620;" strike the remainder of the title and insert "and amending RCW 19.28.610.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Sutherland, Hochstatter and Prentice; Representatives Heavey, Veloria and Chandler


MOTION


    On motion of Senator Sutherland, the Senate adopted the Report of the Conference Committee on Engrossed House Bill No. 1756.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Senate Bill No. 1756, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed House Bill No. 1756, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 28; Nays, 17; Absent, 1; Excused, 3.

    Voting yea: Senators Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Loveland, Ludwig, McAuliffe, McCaslin, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Rasmussen, M., Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge and Williams - 28.

    Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Hochstatter, Morton, Nelson, Newhouse, Oke, Prince, Roach, Schow, Sellar, Smith, L., Vognild, West and Wojahn - 17.

    Absent: Senator Winsley - 1.

    Excused: Senators McDonald, Quigley and Rinehart - 3.

    ENGROSSED HOUSE BILL NO. 1756, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


EHB 2190                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Modifying limitations of housing-related capital bond proceeds


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED HOUSE BILL NO. 2190, Modifying limitations of housing-related capital bond proceeds, have had the same under consideration and we recommend that:

    All previous amendments not be adopted and the following striking amendment by the Conference Committee be 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 except for activities authorized under subsection (2) (b) and (c) of this section.

     (5) Administrative costs of the department shall not exceed four percent of the annual funds available for 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 except for activities authorized under subsection (2)(b) of this section.

     (5) Administrative costs of the department shall not exceed four percent of the annual funds available for the affordable housing program.

     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."

     On page 1, line 1 of the title, after "fund;" strike the remainder of the title and insert "and amending RCW 43.185.050, 43.185.060, 43.185A.030, and 43.185A.040.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Prentice, Amondson and Pelz; Representatives Wang, Ogden and McMorris


MOTION


    On motion of Senator Prentice, the Senate adopted the Report of the Conference Committee on Engrossed House Bill No. 2190.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2190, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed House Bill No. 2190, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 30; Nays, 16; Absent, 0; Excused, 3.

    Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Loveland, Ludwig, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams, Winsley and Wojahn - 30.

    Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Deccio, Erwin, Haugen, McCaslin, Morton, Nelson, Newhouse, Oke, Schow, Sellar, Smith, L. and West - 16.

    Excused: Senators McDonald, Quigley and Rinehart - 3.

    ENGROSSED HOUSE BILL NO. 2190, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


SHB 1159                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Disclosing improper governmental action


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred SUBSTITUTE HOUSE BILL NO. 1159, Disclosing improper governmental action, have had the same under consideration and we recommend that:

    All previous amendment(s) not be adopted, and the following striking amendment by the Conference Committee be 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 otherwise, the definitions in this section apply throughout this chapter.

     (1)(a) "Improper governmental action" means any action by a local government officer or employee:

     (i) That is undertaken in the performance of the officer's or employee's official duties, whether or not the action is within the scope of the employee's employment; and

     (ii) That is in violation of any federal, state, or local law or rule, is an abuse of authority, is of substantial and specific danger to the public health or safety, or is a gross waste of public funds.

     (b) "Improper governmental action" does not include personnel actions including but not limited to employee grievances, complaints, appointments, promotions, transfers, assignments, reassignments, reinstatements, restorations, reemployments, performance evaluations, reductions in pay, dismissals, suspensions, demotions, violations of the local government collective bargaining and civil service laws, alleged labor agreement violations, reprimands, or any action that may be taken under chapter 41.08, 41.12, 41.14, 41.56, 41.59, or 53.18 RCW or RCW 54.04.170 and 54.04.180.

     (2) "Local government" means any governmental entity other than the state, federal agencies, or an operating system established under chapter 43.52 RCW. It includes, but is not limited to cities, counties, school districts, and special purpose districts.

     (3) "Retaliatory action" means: (a) Any adverse change in a local government employee's employment status, or the terms and conditions of employment including denial of adequate staff to perform duties, frequent staff changes, frequent and undesirable office changes, refusal to assign meaningful work, unwarranted and unsubstantiated letters of reprimand or unsatisfactory performance evaluations, demotion, transfer, reassignment, reduction in pay, denial of promotion, suspension, dismissal, or any other disciplinary action; or (b) hostile actions by another employee towards a local government employee that were encouraged by a supervisor or senior manager or official.

     (4) "Emergency" means a circumstance that if not immediately changed may cause damage to persons or property.

     NEW SECTION. Sec. 2. A new section is added to chapter 42.41 RCW to read as follows:

     (1) A local government official or employee may not use his or her official authority or influence, directly or indirectly, to threaten, intimidate, or coerce an employee for the purpose of interfering with that employee's right to disclose information concerning an improper governmental action in accordance with the provisions of this chapter.

     (2) Nothing in this section authorizes an individual to disclose information prohibited by law."

     On page 1, line 1 of the title, after "action;" strike the remainder of the title and insert "amending RCW 42.41.020; and adding a new section to chapter 42.41 RCW.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Haugen, Winsley and Drew; Representatives H. Myers, Springer and Edmondson


MOTION


    On motion of Senator Haugen, the Senate adopted the Report of the Conference Committee on Substitute House Bill No. 1159.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1159, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 1159, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 1; Absent, 1; Excused, 3.

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

    Voting nay: Senator Bluechel - 1.

    Absent: Senator Moore - 1.

    Excused: Senators McDonald, Quigley and Rinehart - 3.

    SUBSTITUTE HOUSE BILL NO. 1159, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


SHB 2627                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Creating a housing finance program


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred SUBSTITUTE HOUSE BILL NO. 2627, Creating a housing finance program, have had the same under consideration and we recommend that:


    All previous amendments not be adopted, and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. A new section is added to chapter 43.180 RCW to read as follows:

     The commission, in cooperation with the department of community, trade, and economic development, and the state investment board, shall develop and implement a housing finance program that:

     (1) Provides subsidized or unsubsidized mortgage financing for single-family home ownership, including a single condominium unit, located in the state of Washington;

     (2) Requests the state investment board to make investments, within its policies and investment guidelines, in mortgage-backed securities that are collateralized by loans made within the state of Washington; and

     (3) Provides flexible loan underwriting guidelines, including but not limited to provisions that will allow reduced downpayment requirements for the purchaser.

     NEW SECTION. Sec. 2. A new section is added to chapter 43.180 RCW to read as follows:

     The housing finance program developed under section 1 of this act shall:

     (1) Be limited to borrowers with incomes that do not exceed one hundred fifteen percent of the state or county median family income, whichever is higher, adjusted for family size;

     (2) Be limited to first-time home buyers as defined in RCW 43.185A.010;

     (3) Be targeted so that priority is given to low-income households as defined in RCW 43.185A.010;

     (4) To the extent funds are made available, provide either downpayment or closing costs assistance to households eligible for assistance under chapter 43.185A RCW and this chapter; and

     (5) Provide notification to active participants of the state retirement systems managed by the department of retirement systems under chapter 41.50 RCW.

     NEW SECTION. Sec. 3. A new section is added to chapter 43.180 RCW to read as follows:

     (1) The commission shall submit to the legislature in its annual report a summary of the progress of the housing finance program developed under section 1 of this act. The report shall include, but not be limited to the number of loans made and location of property financed under sections 1 and 2 of this act.

     (2) The commission shall take such steps as are necessary to ensure that sections 1 and 2 of this act are implemented on the effective date of this act.

     NEW SECTION. Sec. 4. 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 page 1, line 1 of the title, after "finance;" strike the remainder of the title and insert "and adding new sections to chapter 43.180 RCW.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Amondson and Prentice; Representatives Wineberry, Quall and Schoesler


MOTION


    Senator Prentice moved that the Senate do adopt the Report of the Conference Committee on Substitute House Bill No. 2627.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Prentice that the Senate do adopt the Report of the Conference Committee on Substitute House Bill No. 2627.

    The motion by Senator Prentice carried and the Report of the Conference Committee on Substitute House Bill No. 2627 was adopted.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2627, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2627, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 3; Absent, 0; Excused, 3.

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

    Voting nay: Senators Cantu, McCaslin and Oke - 3.

    Excused: Senators McDonald, Quigley and Rinehart - 3.

    SUBSTITUTE HOUSE BILL NO. 2627, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


ESHB 1652                                                                                                                                                                                   March 8, 1994


Includes "NEW ITEMS": YES


Revising provisions relating to animal cruelty


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE HOUSE BILL NO. 1652, Revising provisions relating to animal cruelty, have had the same under consideration and we recommend that:

    The Senate Committee on Law and Justice striking amendment, as amended, adopted March 3, 1994, be adopted with the following change:

    On page 6, line 24 of the amendment, after "intentionally" strike "or knowingly"

     Committee on Law and Justice amendment, as amended

     Strike everything after the enacting clause and insert the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (b) Abandons the animal.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (16) "Drug offense" means:

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

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

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

     (17) "Escape" means:

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

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

     (18) "Felony traffic offense" means:

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

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

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

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

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

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

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

     (b) Assault in the second degree;

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

     (d) Child molestation in the second degree;

     (e) Controlled substance homicide;

     (f) Extortion in the first degree;

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

     (h) Indecent liberties;

     (i) Kidnapping in the second degree;

     (j) Leading organized crime;

     (k) Manslaughter in the first degree;

     (l) Manslaughter in the second degree;

     (m) Promoting prostitution in the first degree;

     (n) Rape in the third degree;

     (o) Robbery in the second degree;

     (p) Sexual exploitation;

     (q) Vehicular assault;

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

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

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

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

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

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

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

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

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

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

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

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

     (28) "Serious traffic offense" means:

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

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

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

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

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

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

     (31) "Sex offense" means:

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

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

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

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

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

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

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

     (36) "Violent offense" means:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     For the purposes of this chapter:

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

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

     (b) Manslaughter in the first degree; or

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

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

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

     (a) Community-based sanctions;

     (b) Community-based rehabilitation;

     (c) Monitoring and reporting requirements;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (a) Four misdemeanors;

     (b) Two misdemeanors and one gross misdemeanor;

     (c) One misdemeanor and two gross misdemeanors;

     (d) Three gross misdemeanors;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Signed by Senators Adam Smith and Nelson; Representatives Johanson, Romero and Fuhrman


MOTION


    On motion of Senator Moore, the Senate adopted the Report of the Conference Committee on Engrossed Substitute House Bill No. 1652.


MOTION


    On motion of Senator Drew, Senators Ludwig and Adam Smith were excused.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1652, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1652, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 1; Absent, 2; Excused, 5.

    Voting yea: Senators Amondson, Anderson, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, McAuliffe, McCaslin, Moore, Morton, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Schow, Sheldon, Skratek, Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 41.

    Voting nay: Senator Sellar - 1.

    Absent: Senators Bauer and Newhouse - 2.

    Excused: Senators Ludwig, McDonald, Quigley, Rinehart and Smith, A. - 5.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 1652, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


HB 2486                                                                                                                                                                                        March 8, 1994


Includes "NEW ITEMS": YES


Delaying or repealing specified sunset provisions


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred HOUSE BILL NO. 2486, Delaying or repealing specified sunset provisions, have had the same under consideration and we recommend that:

    All previous amendment(s) not be adopted and the following amendment by the Conference Committee be adopted:

    On page 2, after line 11, insert the following:

    "Sec. 4. RCW 28B.102.900 and 1987 c 437 s 9 are each amended to read as follows:

    No conditional scholarships shall be granted after June 30, ((1994, until the program is reviewed by the legislative budget committee and is reenacted by the legislature)) 1995."

    On page 1, beginning on line 1 of the title, after "43.131.381" strike "and 43.131.382" and insert ", 43.131.382, and 28B.102.900", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Haugen, McDonald and Drew; Representatives Ogden and Sommers


MOTION


    On motion of Senator Haugen, the Senate adopted the Report of the Conference Committee on House Bill No. 2486.

    The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2486, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of House Bill No. 2486, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 3; Absent, 0; Excused, 4.

    Voting yea: Senators Anderson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Loveland, McAuliffe, Moore, Morton, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Schow, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, West, Williams, Winsley and Wojahn - 42.

    Voting nay: Senators Amondson, Cantu and McCaslin - 3.

    Excused: Senators Ludwig, McDonald, Quigley and Rinehart - 4.

    HOUSE BILL NO. 2486, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


SHB 2760                                                                                                                                                                                      March 8, 1994


Includes "NEW ITEMS": YES


Authorizing sales tax equalization for transit systems


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred SUBSTITUTE HOUSE BILL NO. 2760, Authorizing sales tax equalization for transit systems, have had the same under consideration and we recommend that:

    All previous amendments not be adopted, and the following striking amendment by the Conference Committee 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 the sales and use tax under RCW 82.14.045 shall be eligible for 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 the sales and use tax authorized under RCW 82.14.045 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.

     (2) For each tenth of one percent of sales and use tax imposed under RCW 82.14.045, 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 sales and use tax collected under RCW 82.14.045 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 under RCW 82.14.045 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 the tax authorized under RCW 82.14.045.

     (i) A newly established municipality imposing the tax authorized under RCW 82.14.045 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 the tax authorized under RCW 82.14.045 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 the tax authorized under RCW 82.14.045 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 the tax authorized under RCW 82.14.045 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 the tax authorized under RCW 82.14.045 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 tax authorized under RCW 82.14.045 is 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 the sales and use tax authorized under RCW 82.14.045 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 the section.

     (5) A municipality that reduces its sales and use tax rate under RCW 82.14.045 after January 1, 1994, may not receive distributions under this section."

     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.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Vognild and Drew; Representatives R. Fisher, Brown and Schmidt


MOTION


    On motion of Senator Vognild, the Senate adopted the Report of the Conference Committee on Substitute House Bill No. 2760.

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


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2760, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 35; Nays, 10; Absent, 1; Excused, 3.

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

    Voting nay: Senators Amondson, Anderson, Cantu, McCaslin, Nelson, Newhouse, Roach, Schow, Sellar and Smith, L. - 10.

    Absent: Senator Winsley - 1.

    Excused: Senators McDonald, Quigley and Rinehart - 3.

    SUBSTITUTE HOUSE BILL NO. 2760, as recommended by the Conference Committee, 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 3:45 p.m., on motion of Senator Gaspard, the Senate recessed until 6:30 p.m.


    The Senate was called to order at 6:39 p.m. by President Pritchard.


SIGNED BY THE PRESIDENT


    The President signed:

    SENATE BILL NO. 6065,

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6071,

    SENATE BILL NO. 6080,

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6084,

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6111,

    SUBSTITUTE SENATE BILL NO. 6138,

    SUBSTITUTE SENATE BILL NO. 6428,

    SENATE BILL NO. 6584.


MESSAGE FROM THE HOUSE


March 9, 1994

MR. PRESIDENT:

    The House grants the request of the Senate for a conference on SUBSTITUTE SENATE BILL NO 6047. The Speaker has appointed the following members as conferees: Representatives Appelwick, Johanson and Ballasiotes.

MARILYN SHOWALTER, Chief Clerk


MESSAGE FROM THE HOUSE


March 9, 1994

MR. PRESIDENT:

    The House has adopted the Report of the Conference Committee on SUBSTITUTE HOUSE BILL NO. 2270 and has passed the bill as recommended by the Conference Committee.

MARILYN SHOWALTER, Chief Clerk


MESSAGE FROM THE HOUSE


March 9, 1994

MR. PRESIDENT:

    The House has adopted the Report of the Conference Committee on ENGROSSED HOUSE BILL NO. 2347 and has passed the bill as recommended by the Conference Committee.

MARILYN SHOWALTER, Chief Clerk


MESSAGE FROM THE HOUSE


March 9, 1994

MR. PRESIDENT:

    The House has adopted the Report of the Conference Committee on ENGROSSED SUBSTITUTE SENATE BILL NO. 6068 and has passed the bill as recommended by the Conference Committee, and the same is herewith transmitted.

MARILYN SHOWALTER, Chief Clerk


CONFERENCE COMMITTEE REPORT


ESSB 6068                                                                                                                                                                                    March 8, 1994


Includes "NEW ITEMS": YES


Revising procedures for appeals involving boards within the environmental hearings office


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE BILL NO. 6068, Revising procedures for appeals involving boards within the environmental hearings office, have had the same under consideration and we recommend that:

    All previous amendments not be adopted, and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 90.58.170 and 1988 c 128 s 76 are each amended to read as follows:

     A shorelines hearings board sitting as a quasi judicial body is hereby established within the environmental hearings office under RCW 43.21B.005. The shorelines hearings board shall be made up of six members: Three members shall be members of the pollution control hearings board; two members, one appointed by the association of Washington cities and one appointed by the association of county commissioners, both to serve at the pleasure of the associations; and the commissioner of public lands or his or her designee. The chairman of the pollution control hearings board shall be the chairman of the shorelines hearings board. Except as provided in section 2 of this act, a decision must be agreed to by at least four members of the board to be final. The members of the shorelines ((appeals)) board shall receive the compensation, travel, and subsistence expenses as provided in RCW 43.03.050 and 43.03.060.

     NEW SECTION. Sec. 2. A new section is added to chapter 90.58 RCW to read as follows:

     (1) In the case of an appeal involving a single family residence or appurtenance to a single family residence, including a dock or pier designed to serve a single family residence, the request for review may be heard by a panel of three board members, at least one and not more than two of whom shall be members of the pollution control hearings board. Two members of the three must agree to issue a final decision of the board.

     (2) The board shall define by rule alternative processes to expedite appeals. These alternatives may include: Mediation, upon agreement of all parties; submission of testimony by affidavit; or other forms that may lead to less formal and faster resolution of appeals.

     Sec. 3. RCW 90.58.180 and 1989 c 175 s 183 are each amended to read as follows:

     (1) Any person aggrieved by the granting, denying, or rescinding of a permit on shorelines of the state pursuant to RCW 90.58.140 may seek review from the shorelines hearings board by filing a request for the same within thirty days of the date of filing as defined in RCW 90.58.140(6).

     Concurrently with the filing of any request for review with the board as provided in this section pertaining to a final order of a local government, the requestor shall file a copy of his or her request with the department and the attorney general. If it appears to the department or the attorney general that the requestor has valid reasons to seek review, either the department or the attorney general may certify the request within thirty days after its receipt to the shorelines hearings board following which the board shall then, but not otherwise, review the matter covered by the requestor((: PROVIDED, That)). The failure to obtain such certification shall not preclude the requestor from obtaining a review in the superior court under any right to review otherwise available to the requestor. The department and the attorney general may intervene to protect the public interest and insure that the provisions of this chapter are complied with at any time within fifteen days from the date of the receipt by the department or the attorney general of a copy of the request for review filed pursuant to this section. The shorelines hearings board shall initially schedule review proceedings on such requests for review without regard as to whether such requests have or have not been certified or as to whether the period for the department or the attorney general to intervene has or has not expired, unless such review is to begin within thirty days of such scheduling. If at the end of the thirty day period for certification neither the department nor the attorney general has certified a request for review, the hearings board shall remove the request from its review schedule.

     (2) The department or the attorney general may obtain review of any final order granting a permit, or granting or denying an application for a permit issued by a local government by filing a written request with the shorelines hearings board and the appropriate local government within thirty days from the date the final order was filed as provided in RCW 90.58.140(6).

     (3) The review proceedings authorized in subsections (1) and (2) of this section are subject to the provisions of chapter 34.05 RCW pertaining to procedures in adjudicative proceedings. Judicial review of such proceedings of the shorelines hearings board ((may be had as provided in)) is governed by chapter 34.05 RCW.

     (4) A local government may appeal to the shorelines hearings board any rules, regulations, or guidelines adopted or approved by the department within thirty days of the date of the adoption or approval. The board shall make a final decision within sixty days following the hearing held thereon.

     If the board determines that the rule, regulation, or guideline:

     (a) Is clearly erroneous in light of the policy of this chapter; or

     (b) Constitutes an implementation of this chapter in violation of constitutional or statutory provisions; or

     (c) Is arbitrary and capricious; or

     (d) Was developed without fully considering and evaluating all material submitted to the department by the local government; or

     (e) Was not adopted in accordance with required procedures;

the board shall enter a final decision declaring the rule, regulation, or guideline invalid, remanding the rule, regulation, or guideline to the department with a statement of the reasons in support of the determination, and directing the department to adopt, after a thorough consultation with the affected local government, a new rule, regulation, or guideline. Unless the board makes one or more of the determinations as hereinbefore provided, the board shall find the rule, regulation, or guideline to be valid and enter a final decision to that effect.

     (5) Rules, regulations, and guidelines shall be subject to review in superior court, if authorized pursuant to RCW ((34.05.538: PROVIDED, That)) 34.05.570(2). No review shall be granted by a superior court on petition from a local government unless the local government shall first have obtained review under subsection (4) of this section and the petition for court review is filed within three months after the date of final decision by the shorelines hearings board.

     Sec. 4. RCW 43.21C.075 and 1983 c 117 s 4 are each amended to read as follows:

     (1) Because a major purpose of this chapter is to combine environmental considerations with public decisions, any appeal brought under this chapter shall be linked to a specific governmental action. The State Environmental Policy Act provides a basis for challenging whether governmental action is in compliance with the substantive and procedural provisions of this chapter. The State Environmental Policy Act is not intended to create a cause of action unrelated to a specific governmental action.

     (2) Unless otherwise provided by this section:

     (a) Appeals under this chapter shall be of the governmental action together with its accompanying environmental determinations.

     (b) Appeals of environmental determinations made (or lacking) under this chapter shall be commenced within the time required to appeal the governmental action which is subject to environmental review.

     (3) If an agency has a procedure for appeals of agency environmental determinations made under this chapter, such procedure:

     (a) Shall not allow more than one agency appeal proceeding on a procedural determination (the adequacy of a determination of significance/nonsignificance or of a final environmental impact statement), consistent with any state statutory requirements for appeals to local legislative bodies. The appeal proceeding on a determination of significance/nonsignificance may occur before the agency's final decision on a proposed action. Such an appeal shall also be allowed for a determination of significance/nonsignificance which may be issued by the agency after supplemental review;

     (b) Shall consolidate appeal of procedural issues and of substantive determinations made under this chapter (such as a decision to require particular mitigation measures or to deny a proposal) by providing for simultaneous appeal of an agency decision on a proposal and any environmental determinations made under this chapter, with the exception of the threshold determination appeal as provided in (a) of this subsection or an appeal to the local legislative authority under RCW 43.21C.060 or other applicable state statutes;

     (c) Shall provide for the preparation of a record for use in any subsequent appeal proceedings, and shall provide for any subsequent appeal proceedings to be conducted on the record, consistent with other applicable law. An adequate record consists of findings and conclusions, testimony under oath, and taped or written transcript. An electronically recorded transcript will suffice for purposes of review under this ((paragraph)) subsection; and

     (d) Shall provide that procedural determinations made by the responsible official shall be entitled to substantial weight.

     (4) If a person aggrieved by an agency action has the right to judicial appeal and if an agency has an appeal procedure, such person shall, prior to seeking any judicial review, use such procedure if any such procedure is available, unless expressly provided otherwise by state statute.

     (5) RCW 43.21C.080 establishes an optional "notice of action" procedure which, if used, imposes a time period for appealing decisions under this chapter. Some statutes and ordinances contain time periods for challenging governmental actions which are subject to review under this chapter, such as various local land use approvals (the "underlying governmental action"). This section does not modify any such time periods. This section governs when a judicial appeal must be brought under this chapter where a "notice of action" is used, and/or where there is another time period which is required by statute or ordinance for challenging the underlying governmental action. In this subsection, the term "appeal" refers to a judicial appeal only.

     (a) If there is a time period for appealing the underlying governmental action, appeals under this chapter shall be commenced within thirty days. The agency shall give official notice stating the date and place for commencing an appeal. If there is an agency proceeding under subsection (3) of this section, the appellant shall, prior to commencing a judicial appeal, submit to the responsible official a notice of intent to commence a judicial appeal. This notice of intent shall be given within the time period for commencing a judicial appeal on the underlying governmental action.

     (b) A notice of action under RCW 43.21C.080 may be used. If a notice of action is used, judicial appeals shall be commenced within the time period specified by RCW 43.21C.080, unless there is a time period for appealing the underlying governmental action in which case (a) of this subsection shall apply.

     (c) Notwithstanding RCW 43.21C.080(1), if there is a time period for appealing the underlying governmental action, a notice of action may be published within such time period.

     (6)(a) Judicial review of an appeal decision made by an agency under RCW 43.21C.075(5) shall be on the record, consistent with other applicable law.

     (b) A taped or written transcript may be used. If a taped transcript is to be reviewed, a record shall identify the location on the taped transcript of testimony and evidence to be reviewed. Parties are encouraged to designate only those portions of the testimony necessary to present the issues raised on review, but if a party alleges that a finding of fact is not supported by evidence, the party should include in the record all evidence relevant to the disputed finding. Any other party may designate additional portions of the taped transcript relating to issues raised on review. A party may provide a written transcript of portions of the testimony at the party's own expense or apply to that court for an order requiring the party seeking review to pay for additional portions of the written transcript.

     (c) Judicial review under this chapter shall without exception be of the governmental action together with its accompanying environmental determinations.

     (7) Jurisdiction over the review of determinations under this chapter in an appeal before an agency or superior court shall upon consent of the parties be transferred in whole or part to the shorelines hearings board. The shorelines hearings board shall hear the matter and sign the final order expeditiously. The superior court shall certify the final order of the shorelines hearings board and said certified final order may only be appealed to an appellate court. In the case of an appeal under this chapter regarding a project or other matter that is also the subject of an appeal to the shorelines hearings board under chapter 90.58 RCW, the shorelines hearings board shall have sole jurisdiction over both the appeal under this section and the appeal under chapter 90.58 RCW, shall consider them together, and shall issue a final order.

     (8) For purposes of this section and RCW 43.21C.080, the words "action", "decision", and "determination" mean substantive agency action including any accompanying procedural determinations under this chapter (except where the word "action" means "appeal" in RCW 43.21C.080(2) and (3)). The word "action" in this section and RCW 43.21C.080 does not mean a procedural determination by itself made under this chapter. The word "determination" includes any environmental document required by this chapter and state or local implementing rules. The word "agency" refers to any state or local unit of government. The word "appeal" refers to administrative, legislative, or judicial appeals.

     (9) The court in its discretion may award reasonable attorney's fees of up to one thousand dollars in the aggregate to the prevailing party, including a governmental agency, on issues arising out of this chapter if the court makes specific findings that the legal position of a party is frivolous and without reasonable basis.

     NEW SECTION. Sec. 5. A new section is added to chapter 43.21B RCW to read as follows:

     In an appeal that involves a penalty of five thousand dollars or less, the appeal may be heard by one member of the board, whose decision shall be the final decision of the board. The board shall define by rule alternative procedures to expedite small appeals. These alternatives may include: Mediation, upon agreement of all parties; submission of testimony by affidavit; or other forms that may lead to less formal and faster resolution of appeals.

     Sec. 6. RCW 43.21B.180 and 1989 c 175 s 104 are each amended to read as follows:

     Judicial review of a decision of the hearings board ((shall be de novo except when the decision has been rendered pursuant to a formal hearing elected under the provisions of this chapter, in which event judicial review)) may be obtained only pursuant to RCW 34.05.510 through 34.05.598. The director shall have the same right of review from a decision made pursuant to RCW 43.21B.110 as does any person.

     Sec. 7. RCW 43.21B.190 and 1988 c 202 s 43 are each amended to read as follows:

     Within thirty days after the final decision and order of the hearings board upon such an appeal has been communicated to the interested parties, ((or within thirty days after an appeal has been denied after an informal hearing,)) such interested party aggrieved by the decision and order of the hearings board may appeal to the superior court. In all appeals involving a decision or an order of the hearings board after an informal hearing, the petition shall be filed in the superior court for the county of the petitioner's residence or principal place of business, or in the absence of a residence or principal place of business, for Thurston county. Such appeal may be perfected by filing with the clerk of the superior court a notice of appeal, and by serving a copy thereof by mail, or personally on the director, the air pollution control boards or authorities, established pursuant to chapter 70.94 RCW or on the board as the case may be. The hearings board shall serve upon the appealing party, the director, the air pollution control board or authorities established pursuant to chapter 70.94 RCW, or the board, as the case may be, and on any other party appearing at the hearings board's proceeding, and file with the clerk of the court before trial, a certified copy of the hearings board's decision and order. Appellate review of a decision of the superior court may be sought as in other civil cases. No bond shall be required on appeals to the superior court or on review by the supreme court unless specifically required by the judge of the superior court.

     Sec. 8. RCW 43.21B.230 and 1990 c 65 s 6 are each amended to read as follows:

     Any person having received notice of a denial of a petition, a notice of determination, notice of or an order made by the department may appeal, within thirty days from the date of the notice of such denial, order, or determination to the hearings board. The appeal shall be perfected by serving a copy of the notice of appeal upon the department or air pollution authority established pursuant to chapter 70.94 RCW, as the case may be, within the time specified herein and by filing the original thereof with proof of service with the clerk of the hearings board. ((If the person intends that the hearing before the hearings board be a formal one, the notice of appeal shall so state. In the event that the notice of appeal does not so state, the hearing shall be an informal one: PROVIDED, HOWEVER, That nothing shall prevent the department or the air pollution authority, as the case may be, within ten days from the date of its receipt of the notice of appeal, from filing with the clerk of the hearings board notice of its intention that the hearing be a formal one.))

     Sec. 9. RCW 76.09.230 and 1992 c 52 s 23 are each amended to read as follows:

     (1) ((In all appeals over which the appeals board has jurisdiction, a party taking an appeal may elect either a formal or an informal hearing, unless such party has had an informal hearing with the department. Such election shall be made according to the rules of practice and procedure to be promulgated by the appeals board. In the event that appeals are taken from the same decision, order, or determination, as the case may be, by different parties and only one of such parties elects a formal hearing, a formal hearing shall be granted.

     (2))) In all appeals over which the appeals board has jurisdiction, upon request of one or more parties and with the consent of all parties, the appeals board shall promptly schedule a conference for the purpose of attempting to mediate the case. The mediation conference shall be held prior to the hearing on not less than seven days' advance written notice to all parties. All other proceedings pertaining to the appeal shall be stayed until completion of mediation, which shall continue so long as all parties consent: PROVIDED, That this shall not prevent the appeals board from deciding motions filed by the parties while mediation is ongoing: PROVIDED, FURTHER, That discovery may be conducted while mediation is ongoing if agreed to by all parties. Mediation shall be conducted by an administrative appeals judge or other duly authorized agent of the appeals board who has received training in dispute resolution techniques or has a demonstrated history of successfully resolving disputes, as determined by the appeals board. A person who mediates in a particular appeal shall not participate in a hearing on that appeal or in writing the decision and order in the appeal. Documentary and other physical evidence presented and evidence of conduct or statements made during the course of mediation shall be treated by the mediator and the parties in a confidential manner and shall not be admissible in subsequent proceedings in the appeal except in accordance with the provisions of the Washington rules of evidence pertaining to compromise negotiations.

     (((3))) (2) In all appeals the appeals board shall have all powers relating to administration of oaths, issuance of subpoenas, and taking of depositions, but such powers shall be exercised in conformity with chapter 34.05 RCW.

     (((4))) (3) In all appeals ((involving formal hearing)) the appeals board, and each member thereof, shall be subject to all duties imposed upon and shall have all powers granted to, an agency by those provisions of chapter 34.05 RCW relating to adjudicative proceedings.

     (((5))) (4) All proceedings((, including both formal and informal hearings,)) before the appeals board or any of its members shall be conducted in accordance with such rules of practice and procedure as the board may prescribe. The appeals board shall publish such rules and arrange for the reasonable distribution thereof.

     (((6))) (5) Judicial review of a decision of the appeals board ((shall be de novo except when the decision has been rendered pursuant to the formal hearing, in which event judicial review)) may be obtained only pursuant to RCW 34.05.510 through 34.05.598.

     NEW SECTION. Sec. 10. The office of the administrator for the courts, under the direction of the appellate courts, shall conduct a study to expedite appeals from administrative hearings. The study shall be conducted in close cooperation with the environmental hearings office. Recommendations from the study shall be made to the appropriate standing committees of the legislature by September 1, 1994.

     NEW SECTION. Sec. 11. (1) The environmental hearings office shall review and make recommendations regarding the consolidation of the following boards into a single board with jurisdiction over such land use and environmental decisions as such boards collectively exercise under current law:

     (a) Pollution control hearings board;

     (b) Growth planning hearings boards;

     (c) Shorelines hearings board;

     (d) Hydraulics appeals board; and

     (e) Forest practices appeals board.

The office shall review the caseloads, staffing, and appeal procedures of such boards, as well as current and anticipated caseloads in view of future regulatory, planning or other requirements likely to impact the caseloads of such boards.

     (2) The office shall include the results of its review in a report to the governor and the standing committees of the legislature on environmental and judiciary matters on or before December 1, 1994. The report shall include recommendations on whether such board consolidation may achieve administrative efficiencies while ensuring timely resolution of all matters which may be considered by such a board. The report shall also include recommendations on board size, staffing, and other considerations relevant to consolidation of the existing boards."

     On page 1, line 2 of the title, after "office;" strike the remainder of the title and insert "amending RCW 90.58.170, 90.58.180, 43.21C.075, 43.21B.180, 43.21B.190, 43.21B.230, and 76.09.230; adding a new section to chapter 90.58 RCW; adding a new section to chapter 43.21B RCW; and creating new sections.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Fraser, Talmadge and Morton; Representatives Rust, L. Johnson and Horn


MOTION


    On motion of Senator Fraser, the Senate adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6068.


MOTION


    On motion of Senator Drew, Senator Niemi was excused.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6068, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6068, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 2; Excused, 2.

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

    Absent: Senators Pelz and Smith, A. - 2.

    Excused: Senators McDonald and Niemi - 2.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6068, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


RESHB 1471                                                                                                                                                                                March 9, 1994


Includes "NEW ITEMS": YES


Regulating the non-Puget Sound coastal commercial crab fishery


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred REENGROSSED SUBSTITUTE HOUSE BILL NO. 1471, Regulating the non-Puget Sound coastal commercial crab fishery, have had the same under consideration and we recommend that:

    All previous amendments not be adopted, and the following striking amendment by the Conference Committee be 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 led 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. Gear used must consist of one buoy attached to each crab pot. Each crab pot must be fished individually.

     (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, 1999, 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 9 of this act, "coastal crab" means Dungeness crab (cancer magister) taken in all Washington territorial and offshore 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. (1) The director shall allow the landing into Washington state of crab taken in offshore waters only if:

     (a) The crab are legally caught and landed by fishers with a valid Washington state Dungeness crab--coastal fishery license or a valid Dungeness crab--coastal class B fishery license; or

     (b) The crab are legally caught and landed by fishers with a valid Oregon or California commercial crab fishing license during the calendar year between the dates of February 15th and September 15th inclusive, if the crab were caught in offshore waters beyond the jurisdiction of Washington state, if the crab were taken with crab gear that consisted of one buoy attached to each crab pot, if each crab pot was fished individually, and if the fisher landing the crab has obtained a valid delivery license; or

     (c) The director determines that the landing of offshore Dungeness crab by fishers without a Washington state Dungeness crab--coastal fishery license or a valid Dungeness crab--coastal class B fishery license is in the best interest of the coastal crab processing industry and the director has been requested to allow such landings by at least three Dungeness crab processors, and if the landings are permitted only between the dates of December 1st to February 15th inclusively, if only crab fishers commercially licensed to fish by Oregon or California are permitted to land, if the crab was taken with gear that consisted of one buoy attached to each crab pot, if each crab pot was fished individually, if the fisher landing the crab has obtained a valid delivery license, and if the decision is made on a case-by-case basis for the sole reason of improving the economic stability of the commercial crab fishery.

     (2) Nothing in this section allows the commercial fishing of Dungeness crab in waters within three miles of Washington state by fishers who do not possess a valid Dungeness crab--coastal fishery license or a valid Dungeness crab--coastal class B fishery license. Landings of offshore Dungeness crab by fishers without a valid Dungeness crab--coastal fishery license or a valid Dungeness crab--coastal class B license do not qualify the fisher for such licenses.

     NEW SECTION. Sec. 4. A person commercially fishing for Dungeness crab in offshore waters outside of Washington state jurisdiction shall obtain a Dungeness crab offshore delivery license from the director if the person does not possess a valid Dungeness crab--coastal fishery license or a valid Dungeness crab--coastal class B fishery license and the person wishes to land Dungeness crab into a place or a port in the state. The annual fee for a Dungeness crab offshore delivery license is two hundred fifty dollars. The director may specify restrictions on landings of offshore Dungeness crab in Washington state as authorized in section 3 of this act.

     Fees from the offshore Dungeness crab delivery license shall be placed in the costal crab account created in section 6 of this act.

     NEW SECTION. Sec. 5. Dungeness crab--coastal fishery licenses are freely transferable on a willing seller-willing buyer basis, if upon each sale of a Dungeness crab--coastal fishery license, twenty percent of the sale proceeds are remitted to the department and deposited in the coastal crab account. Funds shall be used for license purchase as provided in section 7 of this act or for coastal crab management activities as provided in section 8 of this act.

     For any license transfer that includes the transfer of the designated vessel and associated business, the seller must sign a notarized affidavit that the value of the vessel and associated business was not inflated. A marine survey documenting the value of the vessel and associated business shall be filed with the department along with the affidavit and the application to transfer the Dungeness crab--coastal fishery license. The cost of the survey shall be paid by the purchaser.

     NEW SECTION. Sec. 6. (1) The coastal crab account is 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 for license purchase as provided in section 7 of this act, or for coastal crab management activities as provided in section 8 of this act. The appropriate standing committees of the legislature shall review the status and expenditures of the coastal crab account yearly.

     (2) A surcharge of two hundred fifty dollars shall be collected with each Dungeness crab--coastal fishery license and Dungeness crab--coastal class B fishery license for 1995 and 1996, for the purposes of purchasing Dungeness crab--coastal class B fishery licenses as provided in section 7 of this act. The moneys shall be deposited into the coastal crab account.

     NEW SECTION. Sec. 7. Expenditures from the coastal crab account may be made by the department to purchase Dungeness crab--coastal class B fishery licenses during the following time periods:

     (1) January 1, 1995, to December 31, 1995, at a price not to exceed five thousand dollars per license; or

     (2) January 1, 1996, to December 31, 1996, at a price not to exceed three thousand 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. 8. Expenditures from the coastal crab account may be made by the department for management of the coastal crab resource. Management activities may include studies of resource viability, interstate negotiations concerning regulation of the offshore crab resource, resource enhancement projects, or other activities as determined by the department.

     NEW SECTION. Sec. 9. (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. 10. (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. 11. 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. 12. 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. 13. Except as provided under section 17 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. 14. 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. 15. 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. 16. (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. 17. 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 may 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. 18. 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 fishery in cases involving Dungeness crab--coastal fishery licenses and Dungeness crab--coastal class B fishery licenses. The members shall include one person from the commercial crab processors, one Dungeness crab--coastal fishery license holder, and one citizen representative of a coastal community.

     (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. 19. 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." Extenuating circumstances may include situations in which a person had a vessel under construction such that qualifying landings could not be made. 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. 20. 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. 21. 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.

     Sec. 22. 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. 23. (1) Section 15 of this act is added to chapter 75.28 RCW.

     (2) Sections 2 through 10, 13, 16, 17, 19, and 20 of this act are each added to chapter 75.30 RCW.

     NEW SECTION. Sec. 24. 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. 25. Sections 1 through 5, 9 through 19, and 21 through 24 of this act shall take effect January 1, 1995.

     NEW SECTION. Sec. 26. Section 8 of this act shall take effect January 1, 1997."

     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 effective dates.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Snyder and Owen; Representatives King, Orr and Sehlin


MOTION


    Senator Owen moved that the Senate adopt the Report of the Conference Committee on Reengrossed Substitute House Bill No. 1471.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Owen that the Senate adopt the Report of the Conference Committee on Reengrossed Substitute House Bill No. 1471.

    The motion by Senator Owen carried and the Report on the Conference Committee on Reengrossed Substitute House Bill No 1471 was adopted.


MOTIONS


    On motion of Senator Loveland, Senator Skratek was excused.

    On motion of Senator Drew, Senator Adam Smith 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 recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Reengrossed Substitute House Bill No. 1471, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 2; Absent, 2; Excused, 3.

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

    Voting nay: Senators Amondson and Anderson - 2.

    Absent: Senators Deccio and Rinehart - 2.

    Excused: Senators Niemi, Skratek and Smith, A. - 3.

    REENGROSSED SUBSTITUTE HOUSE BILL NO. 1471, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


ESHB 2237                                                                                                                                                                                   March 9, 1994


Includes "NEW ITEMS": YES


Improving the efficiency of state facilities and the budget process


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE HOUSE BILL NO. 2237, Improving the efficiency of state facilities and the budget process, have had the same under consideration and we recommend that:

    All previous amendments not be adopted and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. The legislature finds that the acquisition, construction, and management of state-owned and leased facilities has a profound and long-range effect upon the delivery and cost of state programs, and that there is an increasing need for better facility planning and management to improve the effectiveness and efficiency of state facilities.

     Sec. 2. RCW 43.88.030 and 1991 c 358 s 1 and 1991 c 284 s 1 are each reenacted and amended to read as follows:

     (1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues as approved by the economic and revenue forecast council or upon the estimated revenues of 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 those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the interagency revenue task force. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

     Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.

     The budget document or documents shall also contain:

     (a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;

     (b) The undesignated fund balance or deficit, by fund;

     (c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;

     (d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

     (e) Tabulations showing expenditures classified by fund, function, activity and object;

     (f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury; and

     (g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.70 RCW, shown by agency and in total.

     (2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

     (a) Interest, amortization and redemption charges on the state debt;

     (b) Payments of all reliefs, judgments and claims;

     (c) Other statutory expenditures;

     (d) Expenditures incident to the operation for each agency;

     (e) Revenues derived from agency operations;

     (f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;

     (g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;

     (h) Common school expenditures on a fiscal-year basis;

     (i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods.

     (3) A separate capital budget document or schedule shall be submitted that will contain the following:

     (a) A ((capital plan consisting of proposed capital spending for at least four fiscal periods succeeding the next fiscal period)) statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;

     (b) A capital program consisting of proposed capital projects for ((at least)) the next biennium and the two ((fiscal periods)) biennia succeeding the next ((fiscal period)) biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;

     (c) A capital plan consisting of proposed capital spending for at least four ((fiscal periods)) biennia succeeding the next ((fiscal period)) biennium;

     (d) A statement of the reason or purpose for a project;

     (e) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;

     (f) A statement about the proposed site, size, and estimated life of the project, if applicable;

     (g) Estimated total project cost;

     (h) For major projects valued over five million dollars, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs shall be displayed in a standard format defined by the office of financial management to allow comparisons between projects;

     (i) Estimated total project cost for each phase of the project as defined by the office of financial management;

     (((i))) (j) Estimated ensuing biennium costs;

     (((j))) (k) Estimated costs beyond the ensuing biennium;

     (((k))) (l) Estimated construction start and completion dates;

     (((l))) (m) Source and type of funds proposed;

     (((m))) (n) Estimated ongoing operating budget costs or savings resulting from the project, including staffing and maintenance costs;

     (o) For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, shall identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions shall include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document shall identify the source of funds from which the operation and maintenance costs are proposed to be funded;

     (p) Such other information bearing upon capital projects as the governor deems to be useful;

     (((n))) (q) Standard terms, including a standard and uniform definition of maintenance for all capital projects;

     (((o))) (r) Such other information as the legislature may direct by law or concurrent resolution.

     For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.

     (4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.

     Sec. 3. RCW 43.88A.020 and 1979 c 151 s 146 are each amended to read as follows:

     The office of financial management shall, in cooperation with appropriate legislative committees and legislative staff, establish a procedure for the provision of fiscal notes on the expected impact of bills and resolutions which increase or decrease or tend to increase or decrease state government revenues or expenditures. Such fiscal notes shall indicate by fiscal year the impact for the remainder of the biennium in which the bill or resolution will first take effect as well as a cumulative forecast of the fiscal impact for the succeeding four fiscal years. Fiscal notes shall separately identify the fiscal impacts on the operating and capital budgets. Estimates of fiscal impacts shall be calculated using the procedures contained in the fiscal note instructions issued by the office of financial management.

     In establishing the fiscal impact called for pursuant to this chapter, the office of financial management shall coordinate the development of fiscal notes with all state agencies affected.

     Sec. 4. RCW 43.88.032 and 1989 c 311 s 1 are each amended to read as follows:

     (1) Annual ongoing or routine maintenance costs shall be programmed in the operating budget rather than in the capital budget.

     (2) All debt-financed pass-through money to local governments shall be programmed and separately identified in the ((capital)) budget document.

     Sec. 5. RCW 43.88.110 and 1991 sp.s. c 32 s 27 and 1991 c 358 s 2 are each reenacted and amended to read as follows:

     This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.

     (1) Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.

     (2) The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.

     (3) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.

     (4) The office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:

     (a) Appropriations made for capital projects including transportation projects;

     (b) Estimates of total project costs including past, current, ensuing, and future biennial costs;

     (c) Comparisons of actual costs to estimated costs;

     (d) Comparisons of estimated construction start and completion dates with actual dates;

     (e) Documentation of fund shifts between projects.

     This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.

     (5) The office of financial management, prior to approving allotments for major capital construction projects valued over five million dollars, shall institute procedures for reviewing such projects at the predesign stage that will reduce long-term costs and increase facility efficiency. The procedures shall include, but not be limited to, the following elements:

     (a) Evaluation of facility program requirements and consistency with long-range plans;

     (b) Utilization of a system of cost, quality, and performance standards to compare major capital construction projects; and

     (c) A requirement to incorporate value-engineering analysis and constructability review into the project schedule.

     (6) No expenditure may be incurred or obligation entered into for such major capital construction projects including, without exception, land acquisition, site development, predesign, design, construction, and equipment acquisition and installation, until the allotment of the funds to be expended has been approved by the office of financial management. This limitation does not prohibit the continuation of expenditures and obligations into the succeeding biennium for projects for which allotments have been approved in the immediate prior biennium.

     (7) If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed operating expenditures for reasonableness and conformance with legislative intent. Once the governor approves the statements of proposed operating expenditures, further revisions shall be made only at the beginning of the second fiscal year and must be initiated by the governor. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. Revisions caused by executive increases to spending authority shall not be made after June 30, 1987. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.

     (((6))) (8) It is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management.

     (((7))) (9) The director of financial management shall monitor agency operating expenditures against the approved statement of proposed expenditures and shall provide the legislature with quarterly explanations of major variances.

     (((8))) (10) The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. Allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.

     NEW SECTION. Sec. 6. A new section is added to chapter 43.88 RCW to read as follows:

     (1) The capital appropriations act may authorize the governor, through the director of financial management, to transfer the appropriation authority for a capital project that is in excess of the amount required for the completion of the project to another capital project for which the appropriation is insufficient.

     (a) No such transfer may be used to expand the capacity or change the intended use of the project beyond that intended by the legislature in making the appropriation.

     (b) The transfer may be effected only between capital projects within a specific department, commission, agency, or institution of higher education.

     (c) The transfer may be effected only if the project from which the transfer of funds is made is substantially complete and there are funds remaining, or bids have been let on the project from which the transfer of funds is made and it appears to a substantial certainty that the project can be completed within the biennium for less than the amount appropriated.

     (2) For the purposes of this section, the legislature intends that each project be defined as proposed to the legislature in the governor's budget document, unless the legislative history demonstrates that the legislature intended to define the scope of a project in a different way.

     (3) The office of financial management shall notify the legislative fiscal committees of the senate and the house of representatives at least thirty days before any transfer is effected under this section except emergency projects or any transfer under two hundred fifty thousand dollars, and shall prepare a report to such committees listing all completed transfers at the close of each fiscal year.

     Sec. 7. RCW 43.82.010 and 1990 c 47 s 1 are each amended to read as follows:

     (1) The director of ((the department of)) general administration, on behalf of the agency involved, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate. This section does not transfer financial liability for the acquired property to the department of general administration.

     (2) Except for real estate occupied by federal agencies, the director shall determine the location, size, and design of any real estate or improvements thereon acquired or held pursuant to subsection (1) of this section. Facilities acquired or held pursuant to this chapter, and any improvements thereon, shall conform to standards adopted by the director and approved by the office of financial management governing facility efficiency unless a specific exemption from such standards is provided by the director of general administration. The director of general administration shall report to the office of financial management annually on any exemptions granted pursuant to this subsection.

     (3) The director of general administration may fix the terms and conditions of each lease entered into under this chapter, except that no lease shall extend greater than twenty years in duration. The director of general administration may enter into a long-term lease greater than five years in duration upon a determination by the director of the office of financial management that the long-term lease provides a more favorable rate than would otherwise be available, it appears to a substantial certainty that the facility is necessary for use by the state for the full length of the lease term, and the facility meets the standards adopted pursuant to subsection (2) of this section. The director of general administration may enter into a long-term lease greater than ten years in duration if an analysis shows that the life-cycle cost of leasing the facility is less than the life-cycle cost of purchasing or constructing a facility in lieu of leasing the facility.

     (4) It is the policy of the state to encourage the collocation and consolidation of state services into single or adjacent facilities, whenever appropriate, to improve public service delivery, minimize duplication of facilities, increase efficiency of operations, and promote sound growth management planning.

     (5) The director of general administration shall provide coordinated long-range planning services to identify and evaluate opportunities for collocating and consolidating state facilities. Upon the renewal of any lease, the inception of a new lease, or the purchase of a facility, the director of general administration shall determine whether an opportunity exists for collocating the agency or agencies in a single facility with other agencies located in the same geographic area. If a collocation opportunity exists, the director of general administration shall consult with the affected state agencies and the office of financial management to evaluate the impact collocation would have on the cost and delivery of agency programs, including whether program delivery would be enhanced due to the centralization of services. The director of general administration, in consultation with the office of financial management, shall develop procedures for implementing collocation and consolidation of state facilities.

     (6) The director of general administration is authorized to purchase, lease, rent, or otherwise acquire improved or unimproved real estate as owner or lessee and to lease or sublet all or a part of such real estate to state or federal agencies. The director of general administration shall charge each using agency its proportionate rental which shall include an amount sufficient to pay all costs, including, but not limited to, those for utilities, janitorial and accounting services, and sufficient to provide for contingencies; which shall not exceed five percent of the average annual rental, to meet unforeseen expenses incident to management of the real estate.

     (((4))) (7) If the director of general administration determines that it is necessary or advisable to undertake any work, construction, alteration, repair, or improvement on any real estate acquired pursuant to subsection((s)) (1) or (((3))) (6) of this section, the director shall cause plans and specifications thereof and an estimate of the cost of such work to be made and filed in his or her office and the state agency benefiting thereby is hereby authorized to pay for such work out of any available funds: PROVIDED, That the cost of executing such work shall not exceed the sum of twenty-five thousand dollars. Work, construction, alteration, repair, or improvement in excess of twenty-five thousand dollars, other than that done by the owner of the property if other than the state, shall be performed in accordance with the public works law of this state.

     (((5))) (8) In order to obtain maximum utilization of space, the director of general administration shall make space utilization studies, and shall establish standards for use of space by state agencies. Such studies shall include the identification of opportunities for collocation and consolidation of state agency office and support facilities.

     (((6))) (9) The director of general administration may construct new buildings on, or improve existing facilities, and furnish and equip, all real estate under his or her management. Prior to the construction of new buildings or major improvements to existing facilities or acquisition of facilities using a lease purchase contract, the director of general administration shall conduct an evaluation of the facility design and budget using life-cycle cost analysis, value-engineering, and other techniques to maximize the long-term effectiveness and efficiency of the facility or improvement.

     (((7))) (10) All conveyances and contracts to purchase, lease, rent, transfer, exchange, or sell real estate and to grant and accept easements shall be approved as to form by the attorney general, signed by the director of general administration or the director's designee, and recorded with the county auditor of the county in which the property is located.

     (((8))) (11) The director of general administration may delegate any or all of the functions specified in this section to any agency upon such terms and conditions as the director deems advisable.

     (((9))) (12) This section does not apply to the acquisition of real estate by:

     (a) The state college and universities for research or experimental purposes;

     (b) The state liquor control board for liquor stores and warehouses; and

     (c) The department of natural resources, the department of ((fisheries, the department of)) fish and wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.

     (((10))) (13) Notwithstanding any provision in this chapter to the contrary, the department of general administration may negotiate ground leases for public lands on which property is to be acquired under a financing contract pursuant to chapter 39.94 RCW under terms approved by the state finance committee.

     NEW SECTION. Sec. 8. (1) The legislature finds that current facility planning, budgeting, and management responsibilities are spread among a number of state agencies, and that there may be a need to consolidate these functions within a single entity with independent powers and fiduciary responsibility for state facilities as a whole to increase the consistency and quality of facility decisions.

     (2) The office of financial management shall evaluate the need for and potential responsibilities of a central state facilities authority to coordinate and manage the design, acquisition, construction, and utilization of state facilities, including leased facilities. The evaluation shall include an examination of the current roles and responsibilities of state agencies including the department of general administration, the higher education coordinating board, the state board for community and technical colleges, and the office of financial management to identify critical areas for improvement and any overlapping areas of responsibility.

     (3) The office of financial management shall consider the following potential responsibilities of a central facilities authority in its evaluation:

     (a) Involvement in agency master planning and facility predesign activities to assist agencies in developing creative alternatives for meeting program needs;

     (b) Development of facility performance and cost standards to assist in facility planning and budget evaluation;

     (c) Critical evaluation of facility designs and budget requests through life-cycle cost analysis, value-engineering, and other tools to maximize the long-term effectiveness and efficiency of state facilities;

     (d) Central management of and planning for the state's facility inventory, including both leased and state-owned facilities, to maximize agency collocation and consolidation opportunities and create identifiable state government and education centers;

     (e) Administration and management of agency capital construction projects;

     (f) Development of leasing standards and procedures, including a methodology for analyzing the costs and benefits of leasing versus owning facilities, and appropriate procurement of leased, lease-developed, or lease-purchased facilities;

     (g) Development of facility operation and maintenance standards or guidelines;

     (h) Administration and allocation of centrally pooled appropriations for projects affecting more than one agency or for which efficiency can be enhanced by central administration; and

     (i) Other responsibilities as determined by the office of financial management.

     (3) The evaluation shall consider increasing the responsibilities and powers of an existing agency or agencies, or establishing a new agency or agencies to accomplish the objectives of this section. The evaluation shall also estimate the costs and benefits of operating a central facility authority or authorities.

     (4) The office of financial management shall convene a steering committee composed of representatives of affected state agencies and the private real estate industry to assist in collecting needed information and conducting the evaluation.

     (5) The office of financial management shall report on the results of its evaluation to the appropriate standing committees of the legislature by January 10, 1995.

     This section shall expire June 30, 1995.

     NEW SECTION. Sec. 9. The office of financial management shall conduct a review of the state's bonding requirements under chapter 39.08 RCW, shall analyze alternative forms of security, and shall report its findings and analysis to the appropriate committees of the senate and the house of representatives no later that January 10, 1995. The alternative forms of security shall include, but not be limited to, a bond in an amount less than the full contract price, letter of credit, certified check, cash escrow, and assets of the contractor. The purpose of the review is to determine if alternative forms of security will provide essentially the same level of protection to the state at a lower cost to the contractor and the state.

     This section shall expire June 30, 1995.

     NEW SECTION. Sec. 10. (1) The state board of education shall study the potential for savings by constructing common schools from prototypical school construction designs. The findings and recommendations of the board shall be submitted to the senate committee on ways and means and the house of representatives capital budget committee by December 15, 1994.

     (2) This section expires June 30, 1995.

     NEW SECTION. Sec. 11. A new section is added to chapter 28A.525 RCW to read as follows:

     The state board of education, for purposes of determining eligibility for state assistance for new construction, shall adopt rules excluding from the inventory of available educational space those spaces that have been constructed for educational and community activities from grants received from other public or private entities.

     Sec. 12. RCW 79.24.580 and 1993 sp.s. c 24 s 927 are each amended to read as follows:

     After deduction for management costs as provided in RCW 79.64.040 and payments to towns under RCW 79.92.110(2), all moneys received by the state from the sale or lease of state-owned aquatic lands and from the sale of valuable material from state-owned aquatic lands shall be ((distributed as follows: (1) To the state building bond redemption fund such amounts necessary to retire bonds issued pursuant to RCW 79.24.630 through 79.24.647 prior to January 1, 1987, and for which tide and harbor area revenues have been pledged, and (2) all moneys not deposited for the purposes of subsection (1) of this section shall be)) deposited in the aquatic lands enhancement account which is hereby created in the state treasury. After appropriation, these funds shall be used solely for aquatic lands enhancement projects; for the purchase, improvement, or protection of aquatic lands for public purposes; for providing and improving access to such lands; and for volunteer cooperative fish and game projects. During the fiscal biennium ending June 30, 1995, the funds may be appropriated for shellfish management, enforcement, and enhancement and for developing and implementing plans for population monitoring and restoration of native wild salmon stock.

     Sec. 13. RCW 43.82.110 and 1969 c 121 s 2 are each amended to read as follows:

     All office or other space made available through the provisions of this chapter shall be leased by the director to such state or federal agencies, for such rental, and on such terms and conditions as he or she deems advisable: PROVIDED, HOWEVER, If space becomes surplus, the director is authorized to lease office or other space in any project to any person, corporation or body politic, for such period as the director shall determine said space is surplus, and upon such other terms and conditions as he or she may prescribe.

     ((There is hereby created within the treasury a special fund to be known as the "general administration bond redemption fund" in which all pledged rentals shall be deposited. In the event bonds are issued for more than one project, the rentals from each project will be maintained as separate accounts. The funds in this account or accounts shall be used to meet principal and interest payments when due on the bonds issued to finance the specific project for which each such account was created until all of such bonds and interest thereon have been paid.

     The bonds shall include a covenant that the payment or redemption thereof and the interest thereon are secured by a first and direct charge and lien on the rentals deposited in the general administration bond redemption fund, as aforesaid, and received from the project for which the bonds were issued. Such rentals shall be pledged by the state for such purpose.))

     Sec. 14. RCW 43.82.120 and 1965 c 8 s 43.82.120 are each amended to read as follows:

     ((There is hereby established within the state treasury a reserve fund to be known as the "general administration bond redemption guarantee fund.")) All ((unpledged)) rental income collected by the department of general administration from rental of state buildings shall be deposited in the ((general administration bond redemption guarantee fund until a total of two hundred thousand dollars is on deposit in said fund after which all unpledged rental income shall be deposited in the)) general administration management fund, the creation of which is hereby authorized. ((In the event the general administration bond redemption guarantee fund is diminished, it shall be replenished in the same manner.

     If at any time there is insufficient money in the general administration bond redemption fund to make any payments of interest or principal due on any bonds payable from such fund, the state treasurer shall transfer from such general administration bond redemption guarantee fund to the general administration bond redemption fund an amount sufficient to meet such payments.))

     NEW SECTION. Sec. 15. The legislature finds that there is inequitable distribution among state programs of capital costs associated with maintaining and rehabilitating state facilities. The legislature finds that there are insufficient available resources to support even minor capital improvements other than debt financing. The legislature further finds that little attention is focused on efficient facility management because in many cases capital costs are not factored into the ongoing process of allocating state resources. The purpose of sections 16 through 18 of this act is to create a mechanism to distribute capital costs among the agencies and programs occupying facilities owned and managed by the department of general administration in Thurston county that will foster increased accountability for facility decisions and more efficient use of the facilities.

     Sec. 16. RCW 43.01.090 and 1991 sp.s. c 31 s 10 are each amended to read as follows:

     The director of general administration may assess a charge or rent against each state board, commission, agency, office, department, activity, or other occupant or user for payment of a proportionate share of costs for occupancy of buildings, structures, or facilities including but not limited to all costs of acquiring, constructing, operating, and maintaining such buildings, structures, or facilities and the repair, remodeling, or furnishing thereof and for the rendering of any service or the furnishing or providing of any supplies, equipment, or materials.

     The director of general administration may recover the full costs including appropriate overhead charges of the foregoing by periodic billings as determined by the director including but not limited to transfers upon accounts and advancements into the general administration facilities and services revolving fund. Charges related to the rendering of real estate services under RCW 43.82.010 and to the operation of nonassigned public spaces in Thurston county shall be allocated separately from other charges assessed under this section. Rates shall be established by the director of general administration after consultation with the director of financial management. The director of general administration may allot, provide, or furnish any of such facilities, structures, services, equipment, supplies, or materials to any other public service type occupant or user at such rates or charges as are equitable and reasonably reflect the actual costs of the services provided: PROVIDED, HOWEVER, That the legislature, its duly constituted committees, interim committees and other committees shall be exempted from the provisions of this section.

     Upon receipt of such bill, each entity, occupant, or user shall cause a warrant or check in the amount thereof to be drawn in favor of the department of general administration which shall be deposited in the state treasury to the credit of the general administration facilities and services revolving fund established in RCW 43.19.500 unless the director of financial management has authorized another method for payment of costs.

     Beginning July 1, 1995, the director of general administration shall assess a capital projects surcharge upon each agency or other user occupying a facility owned and managed by the department of general administration in Thurston county. The capital projects surcharge does not apply to agencies or users that agree to pay all future repairs, improvements, and renovations to the buildings they occupy and a proportional share, as determined by the office of financial management, of all other campus repairs, installations, improvements, and renovations that provide a benefit to the buildings they occupy or that have an agreement with the department of general administration that contains a charge for a similar purpose, including but not limited to section 19 of this act, in an amount greater than the capital projects surcharge. The director, after consultation with the director of financial management, shall adopt differential capital project surcharge rates to reflect the differences in facility type and quality. The initial payment structure for this surcharge shall be one dollar per square foot per year. The surcharge shall increase over time to an amount that when combined with the facilities and service charge equals the market rate for similar types of lease space in the area or equals five dollars per square foot per year, whichever is less. The capital projects surcharge shall be in addition to other charges assessed under this section. Proceeds from the capital projects surcharge shall be deposited into the Thurston county capital facilities account created in section 18 of this act.

     Sec. 17. RCW 43.19.500 and 1982 c 41 s 2 are each amended to read as follows:

     There is hereby created a fund within the state treasury designated as the "department of general administration facilities and services revolving fund". Such revolving fund shall be used by the department of general administration for the payment of certain costs, expenses, and charges, as ((hereinafter)) specified in this section, incurred by it in the operation and administration of the department in the rendering of services, the furnishing or supplying of equipment, supplies and materials, and for providing or allocating facilities, including the operation, maintenance, rehabilitation, or furnishings thereof to other agencies, offices, departments, activities, and other entities enumerated in RCW 43.01.090 and including the rendering of services in acquiring real estate under RCW 43.82.010 and the operation and maintenance of nonassigned public spaces in Thurston county. The department shall treat the rendering of services in acquiring real estate and the operation and maintenance of nonassigned public spaces as ((a)) separate operating ((entity)) entities within the fund for financial accounting and control.

     The schedule of services, facilities, equipment, supplies, materials, maintenance, rehabilitation, furnishings, operations, and administration to be so financed and recovered shall be determined jointly by the director of general administration and the director of financial management, in equitable amounts which, together with any other income or appropriation, will provide the department of general administration with funds to meet its anticipated expenditures during any allotment period.

     The director of general administration may ((promulgate)) adopt rules ((and regulations)) governing the provisions of RCW 43.01.090 and this section and the relationships and procedures between the department of general administration and such other entities.

     NEW SECTION. Sec. 18. A new section is added to chapter 43.19 RCW to read as follows:

     The Thurston county capital facilities account is created in the state treasury. The account is subject to the appropriation and allotment procedures under chapter 43.88 RCW. Moneys in the account may be expended for capital projects in facilities owned and managed by the department of general administration in Thurston county.

     NEW SECTION. Sec. 19. It is hereby declared to be the policy of the state of Washington that each agency or other occupant of newly constructed or substantially renovated facilities owned and operated by the department of general administration in Thurston county shall proportionally share the debt service costs associated with the original construction or substantial renovation of the facility. Beginning July 1, 1995, each state agency or other occupant of a facility constructed or substantially renovated after July 1, 1992, and owned and operated by the department of general administration in Thurston county, shall be assessed a charge to pay the principal and interest payments on any bonds or other financial contract issued to finance the construction or renovation or an equivalent charge for similar projects financed by cash sources. In recognition that full payment of debt service costs may be higher than market rates for similar types of facilities or higher than existing agreements for similar charges entered into prior to the effective date of this section, the initial charge may be less than the full cost of principal and interest payments. The charge shall be assessed to all occupants of the facility on a proportional basis based on the amount of occupied space or any unique construction requirements. The office of financial management, in consultation with the department of general administration, shall develop procedures to implement this section and report to the legislative fiscal committees, by October 1994, their recommendations for implementing this section. The office of financial management shall separately identify in the budget document all payments and the documentation for determining the payments required by this section for each agency and fund source during the current and the two past and future fiscal biennia. The charge authorized in this section is subject to annual audit by the state auditor.

     NEW SECTION. Sec. 20. The following acts or parts of acts are each repealed:

     (1) RCW 43.82.040 and 1965 c 8 s 43.82.040;

     (2) RCW 43.82.050 and 1965 c 8 s 43.82.050;

     (3) RCW 43.82.060 and 1965 c 8 s 43.82.060;

     (4) RCW 43.82.070 and 1965 c 8 s 43.82.070;

     (5) RCW 43.82.080 and 1965 c 8 s 43.82.080; and

     (6) RCW 43.82.090 and 1979 ex.s. c 67 s 4 & 1965 c 8 s 43.82.090.

     NEW SECTION. Sec. 21. The following acts or parts of acts are each repealed:

     (1) RCW 79.24.630 and 1970 ex.s. c 14 s 1;

     (2) RCW 79.24.632 and 1969 ex.s. c 273 s 4 & 1967 ex.s. c 105 s 5;

     (3) RCW 79.24.634 and 1969 ex.s. c 273 s 5 & 1967 ex.s. c 105 s 6;

     (4) RCW 79.24.636 and 1969 ex.s. c 273 s 6 & 1967 ex.s. c 105 s 7;

     (5) RCW 79.24.638 and 1982 2nd ex.s. c 8 s 5, 1969 ex.s. c 273 s 7, & 1967 ex.s. c 105 s 8;

     (6) RCW 79.24.640 and 1969 ex.s. c 273 s 8 & 1967 ex.s. c 105 s 9;

     (7) RCW 79.24.642 and 1969 ex.s. c 273 s 9 & 1967 ex.s. c 105 s 10;

     (8) RCW 79.24.6421 and 1969 ex.s. c 273 s 1;

     (9) RCW 79.24.6422 and 1969 ex.s. c 273 s 2;

     (10) RCW 79.24.644 and 1967 ex.s. c 105 s 11;

     (11) RCW 79.24.645 and 1969 ex.s. c 273 s 10;

     (12) RCW 79.24.646 and 1967 ex.s. c 105 s 12; and

     (13) RCW 79.24.647 and 1969 ex.s. c 273 s 13.

     NEW SECTION. Sec. 22. (1) For the purposes of RCW 43.82.010, "the department of fish and wildlife" means "the department of fisheries and the department of wildlife" until July 1, 1994.

     (2) This section expires July 1, 1994.

     NEW SECTION. Sec. 23. Sections 8 and 9 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."

     On page 1, line 1 of the title, after "facilities;" strike the remainder of the title and insert "amending RCW 43.88A.020, 43.88.032, 43.82.010, 79.24.580, 43.82.110, and 43.82.120; reenacting and amending RCW 43.88.030, 43.88.110, 43.01.090, and 43.19.500; adding a new section to chapter 43.88 RCW; adding a new section to chapter 28A.525 RCW; adding a new section to chapter 43.19 RCW; creating new sections; repealing RCW 43.82.040, 43.82.050, 43.82.060, 43.82.070, 43.82.080, 43.82.090, 79.24.630, 79.24.632, 79.24.634, 79.24.636, 79.24.638, 79.24.640, 79.24.642, 79.24.6421, 79.24.6422, 79.24.644, 79.24.645, 79.24.646, and 79.24.647; and declaring an emergency.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Quigley, West and Snyder; Representatives Wang, Ogden and Sehlin


MOTION


    Senator Quigley moved that the Senate adopt the Report of the Conference Committee on Engrossed Substitute House Bill No. 2237.


POINT OF INQUIRY


    Senator Snyder: "Senator Quigley, Section 19 of the bill refers to facilities that are newly constructed or substantially renovated. Could you clarify the meaning of the term 'substantially renovated?'"

    Senator Quigley: "A substantially renovated building is one where a major reconstruction is undertaken to the extent that the life of the building is substantially extended. This would mean major structural reconstruction, replacement of HVAC systems and other utility renewals. In terms of costs, this would mean an investment of over fifty percent of the value of the building.

    "One could also point to the five million dollar threshold that the bill establishes as the size of the project that initiates a full capital project review by the Office of Financial Management. The five million dollar level is a level used for several years by the Legislature for a more extensive review of the project. I would caution that a flat dollar amount is subject to inflationary changes, and the percentage of cost would be a more appropriate measure."

    The President declared the question before the Senate to be the motion by Senator Quigley that the Senate adopt the Report of the Conference Committee on Engrossed Substitute House Bill No. 2237.

    The motion by Senator Quigley carried and the Senate adopted the Report of the Conference Committee on Engrossed Substitute House Bill No. 2237.


MOTION


    On motion of Senator Vognild, Senator Rinehart was excused.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2237, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2237, as recommended by the Conference Committee, 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, 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.

    Excused: Senators Niemi, Rinehart and Smith, A. - 3.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2237, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


ESHB 2815                                                                                                                                                                                   March 9, 1994


Includes "NEW ITEMS": YES


Reforming state procurement practices


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE HOUSE BILL NO. 2815, Reforming state procurement practices, have had the same under consideration and we recommend that:

    All previous amendments not be adopted and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

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

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

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

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

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

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

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

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

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

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

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

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

     On page 1, line 1 of the title, after "practices;" strike the remainder of the title and insert "and amending RCW 43.19.1906 and 43.19.1908.", and that the bill do pass as recommended by the Conference Committee.

    Signed by Senators Haugen, Winsley and Drew; Representatives Anderson, Conway and L. Thomas


MOTION


    On motion of Senator Haugen, the Senate adopted the Report of the Conference Committee on Engrossed Substitute House Bill No. 2815.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2815, as recommended by the Conference Committee.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2815, as recommended by the Conference Committee, 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, Ludwig, McAuliffe, 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, Vognild, West, Williams, Winsley and Wojahn - 46.

    Voting nay: Senator McCaslin - 1.

    Excused: Senators Niemi and Rinehart - 2.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2815, as recommended by the Conference Committee, 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.


CONFERENCE COMMITTEE REPORT


ESHB 2850                                                                                                                                                                                   March 9, 1994


Includes "NEW ITEMS": YES


Changing education provisions.


MR. PRESIDENT:

MR. SPEAKER:

    We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE HOUSE BILL NO. 2850, Changing education provisions, have had the same under consideration and we recommend that:

    All previous amendments not be adopted and the following striking amendment by the Conference Committee be adopted:

    Strike everything after the enacting clause and insert the following:

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

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

     (b) State evaluations and findings on the schools for the twenty-first century program, as well as national research, indicate that extra time for site-based planning activities and staff development and planning for school improvement efforts is critical to the success of such efforts. It is the intent of the legislature that school districts use the funds under this section to provide time and resources for site-based planning activities and staff development and planning that is in addition to locally funded extra time and resources provided for purposes of improving student learning. Districts are strongly encouraged not to supplant local funds with state funds provided under this section.

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

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

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

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

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

     (iii) Include a proposed budget; and

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

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

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

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

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

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

     (8) The superintendent of public instruction shall report annually to the legislature by December 1st the following information:

     (a) The use of the funds granted under this section;

     (b) An estimate of any increase in staff development and planning in the 1994-95, 1995-96, and 1996-97 school years respectively, above that in the 1993-94 school year; and

     (c) An estimate of any increase in site-based planning activities in the 1994-95, 1995-96, and 1996-97 school years respectively, above that in the 1993-94 school year.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     The superintendent of public instruction((