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NINETY-FIFTH DAY

__________


MORNING SESSION


__________


House Chamber, Olympia, Thursday, April 13, 1995


             The House was called to order at 10:00 a.m. by the Speaker (Representative Hankins presiding). The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages David Leimgruber and Evan Westcott. Prayer was offered by Representative Smith.


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


             Representative Horn presiding assumed the chair.


RESOLUTION


             HOUSE RESOLUTION NO. 95-4645, by Representatives Dickerson, Ballasiotes, Chappell, Hatfield, Conway, Wolfe, Mason, Cole, Tokuda, Campbell, Kessler, Blanton, Sherstad, Radcliff, Koster, Kremen, Dyer and Basich


             WHEREAS, Youth violence in Washington state affects not just individuals but entire families, neighborhoods, and communities; and

             WHEREAS, Incidents of youth violence including murder, assault, and rape have been rising steadily for more than a decade; and

             WHEREAS, Youth violence is a reflection of significant problems underlying the fabric of our society, from poverty, drug and alcohol abuse, racism, child abuse and neglect, single parent households, inadequate educational systems, and media glamorization of violence; and

             WHEREAS, It is the goal of the House of Representatives to stop youth violence by expanding our vision beyond simply preventing violence and envisioning the creation of healthy communities; and

             WHEREAS, Creating healthy communities requires bringing together parents, educators, neighborhood associations, businesses, social and health services providers, law enforcement, and young people themselves;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the State of Washington condemn the scourge of youth violence, and encourage the citizens of this state to actively participate in the creation of renewed, healthy, violence-free communities.


             Representative Dickerson moved adoption of the resolution.


             Representatives Dickerson, Mason, Sommers, Chopp and Tokuda spoke in favor of adoption of the resolution.


             House Resolution No. 4645 was adopted.


POINT OF PERSONAL PRIVILEGE


             Representative Costa: Thank you Mr. Speaker, I unfortunately was a little tardy in being here for the House Resolution on youth violence today because I was out gathering resources for an 11 year old girl that was raped yesterday afternoon. However, I would like to honor the organizations in my area who are working on youth violence: One is the Snohomish County Youth Coalition who works through the Everett YMCA; the other is the interlocal youth gang taskforce through the Snohomish County Office of Children's Affairs. Another is the students against violence everywhere.

             There are other agencies in my area that are working hard to combat youth violence, and I just wanted to be able to recognize them as well today. Thank you.


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


SECOND READING


             SUBSTITUTE SENATE JOINT RESOLUTION NO. 8210, by Senate Committee on Law & Justice (originally sponsored by Senators Smith, McCaslin, Gaspard, Deccio, Wojahn, Snyder, Haugen, Morton, Long, Hale, Rinehart, Newhouse, Loveland, McDonald, Palmer, Bauer, Oke and Winsley; by request of Supreme Court)

 

Revising size and leadership of the state supreme court.


             The resolution was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the resolution was placed on final adoption.


             Representatives Hickel and Dellwo spoke in favor of adoption of the resolution.


             Representatives Cole, Hargrove and Brown spoke against adoption of the resolution.


POINT OF INQUIRY


             Representative Hickel yielded to a question by Representative Cole.


             Representative Cole: Thank you Mr. Speaker. My question is, my understanding is that this would make it possible at a later time to reduce the size of the court with just a majority vote instead of having to have 2/3rds vote like when you have to have a constitutional Amendment is that time.


             Representative Hickel: Actually I don't have the answer to that, it's my understanding that this measure simply allows the Justices of the Supreme Court to choose who they want to be the Chief Justice. I do not believe but I am not sure, maybe someone else here has that answer as to whether it will effect the other Bill.


             Representative Hickel again spoke in favor of passage of the resolution.


MOTIONS


             On motion of Representative Brown, Representative Appelwick was excused.


             On motion of Representative Talcott, Representatives Benton and Foreman were excused.


             The Speaker (Representative Horn presiding) stated the question before the House to be final adoption of Substitute Senate Joint Resolution No. 8210.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Joint Resolution No. 8210, and the resolution was adopted by the following vote: Yeas - 68, Nays - 23, Absent - 2, Excused - 4.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Blanton, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Chappell, Clements, Cody, Conway, Cooke, Costa, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Jacobsen, Johnson, Kessler, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Morris, Ogden, Pelesky, Poulsen, Radcliff, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Scott, Sehlin, Sheahan, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Veloria, Wolfe and Mr. Speaker - 68.

             Voting nay: Representatives Benton, Boldt, Brown, Casada, Cole, Crouse, Fuhrman, Goldsmith, Hargrove, Hymes, Kremen, Mason, Mastin, Mulliken, Patterson, Pennington, Quall, Schoesler, Sheldon, Sherstad, Thibaudeau, Tokuda and Valle - 23.

             Absent: Representatives Chopp and Sommers - 2.

             Excused: Representatives Appelwick, Chandler, Foreman and Reams - 4.


             Substitute Senate Joint Resolution No. 8210, having received the constitutional majority, was adopted.


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


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


             There being no objection, the House reverted to the fourth order of business.


INTRODUCTIONS AND FIRST READING

 

HB 2093           by Representatives Campbell, Smith, L. Thomas, McMorris, Chandler, Beeksma, McMahan, Mulliken and Lisk

 

AN ACT Relating to taxation of property without water permits; adding a new section to chapter 84.36 RCW; and creating a new section.

 

Referred to Committee on Agriculture & Ecology.

 

HB 2094           by Representatives Chappell, Brumsickle, Mastin, Regala, Elliot, Basich, Radcliff, Hankins, Morris, Kessler, Mitchell, Costa, Huff, Clements, Grant, G. Fisher, Romero, Quall, Hatfield, L. Thomas, Mason and Blanton

 

AN ACT Relating to providing parents with information on existing law as it pertains to the rights and responsibilities of parents in eduation; adding a new section to chapter 28A.300 RCW; adding a new section to chapter 28A.320 RCW; and creating a new section.

 

Referred to Committee on Education.


             There being no objection, the bills listed on today's introduction sheet under the fourth order of business were referred to the committees so designated.


MESSAGES FROM THE SENATE


April 13, 1995


Mr. Speaker:


             The Senate has passed:


SUBSTITUTE HOUSE BILL NO. 1178,

SUBSTITUTE HOUSE BILL NO. 1929,

SUBSTITUTE HOUSE BILL NO. 2060,

HOUSE JOINT MEMORIAL NO. 4028,

HOUSE JOINT MEMORIAL NO. 4029,

and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


April 13, 1995


Mr. Speaker:


             The President has signed:


HOUSE BILL NO. 1063,

HOUSE BILL NO. 1064,

SUBSTITUTE HOUSE BILL NO. 1069,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1389,

HOUSE BILL NO. 1465,

HOUSE BILL NO. 1532,

HOUSE BILL NO. 1771,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2036,

and the same are herewith transmitted.


Marty Brown, Secretary


April 13, 1995


Mr. Speaker:


             The President has signed:


HOUSE BILL NO. 1081,

HOUSE BILL NO. 1087,

HOUSE BILL NO. 1321,

HOUSE BILL NO. 1343,

SUBSTITUTE HOUSE BILL NO. 1404,

HOUSE BILL NO. 1468,

HOUSE BILL NO. 1501,

HOUSE BILL NO. 1553,


and the same are herewith transmitted.


Marty Brown, Secretary


April 13, 1995


Mr. Speaker:


             The Senate has concurred in the House amendments to SUBSTITUTE SENATE BILL NO. 5992, and passed the bill as amended by the House.


and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


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


             There being no objection, the House resumed consideration of Substitute Senate Bill No. 5315.


             With the consent of the House, amendment numbers 722, 728, 730, 798, 800, 805 and 828 to Substitute Senate Bill No. 5315 were withdrawn.


             Representative Chandler moved adoption of the following amendment by Representative Chandler:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 15.36.012 and 1994 c 143 s 102 are each amended to read as follows:

             For the purpose of this chapter:

             "Adulterated milk" means milk that is deemed adulterated under appendix L of the PMO.

             "Aseptic processing" means the process by which milk or milk products have been subjected to sufficient heat processing and packaged in a hermetically sealed container so as to meet the standards of the PMO.

             "Colostrum milk" means milk produced within ten days before or until practically colostrum free after parturition.

             "DMO" means supplement I, the recommended sanitation ordinance for grade A condensed and dry milk products and condensed and dry whey, to the PMO published by the United States public health service, food and drug administration.

             "Dairy farm" means a place or premises where one or more cows, goats, or other mammals are kept, a part or all of the milk or milk products from which is sold or offered for sale to a milk processing plant, transfer station, or receiving station.

             "Dairy technician" means any person who takes samples of milk or cream or fluid derivatives thereof, on which sample tests are to be made as a basis of payment, or who grades, weighs, or measures milk or cream or the fluid derivatives thereof, the grade, weight, or measure to be used as a basis of payment, or who operates equipment wherein milk or products thereof are pasteurized.

             "Department" means the state department of agriculture.

             "Director" means the director of agriculture of the state of Washington or the director's duly authorized representative.

             "Distributor" means a person other than a producer who offers for sale or sells to another, milk or milk products.

             "Grade A milk processing plant" means any milk processing plant that meets all of the standards of the PMO to process grade A pasteurized milk or milk products.

             "Grade A pasteurized milk" means grade A raw milk that has been pasteurized.

             "Grade A raw milk" means raw milk produced upon dairy farms conforming with all of the items of sanitation contained in the PMO, in which the bacterial plate count does not exceed twenty thousand per milliliter and the coliform count does not exceed ten per milliliter as determined in accordance with RCW ((15.36.110)) 15.36.201.

             "Grade A raw milk for pasteurization" means raw milk produced upon dairy farms conforming with all of the same items of sanitation contained in the PMO of grade A raw milk, and the bacterial plate count, as delivered from the farm, does not exceed eighty thousand per milliliter as determined in accordance with RCW ((15.36.110)) 15.36.201.

             "Grade C milk" is milk that violates any of the requirements for grade A milk but that is not deemed to be adulterated.

             "Homogenized" means milk or milk products which have been treated to ensure breakup of the fat globules to an extent consistent with the requirements outlined in the PMO.

             "Milk" means the lacteal secretion, practically free of colostrum, obtained by the complete milking of one or more healthy cows, goats, or other mammals.

             "Milk hauler" means a person who transports milk or milk products in bulk to or from a milk processing plant, receiving station, or transfer station.

             "Milk processing" means the handling, preparing, packaging, or processing of milk in any manner in preparation for sale as food, as defined in chapter 69.04 RCW. Milk processing does not include milking or producing milk on a dairy farm that is shipped to a milk processing plant for further processing.

             "Milk processing plant" means a place, premises, or establishment where milk or milk products are collected, handled, processed, stored, bottled, pasteurized, aseptically processed, bottled, or prepared for distribution, except an establishment ((whose activity is limited to retail sales)) that merely receives the processed milk products and serves them or sells them at retail.

             "Milk products" means the product of a milk manufacturing process.

             "Misbranded milk" means milk or milk products that carries a grade label unless such grade label has been awarded by the director and not revoked, or that fails to conform in any other respect with the statements on the label.

             "Official brucellosis adult vaccinated cattle" means those cattle, officially vaccinated over the age of official calfhood vaccinated cattle, that the director has determined have been commingled with, or kept in close proximity to, cattle identified as brucellosis reactors, and have been vaccinated against brucellosis in a manner and under the conditions prescribed by the director after a hearing and under rules adopted under chapter 34.05 RCW, the administrative procedure act.

             "Official laboratory" means a biological, chemical, or physical laboratory that is under the direct supervision of the state or a local regulatory agency.

             "Officially designated laboratory" means a commercial laboratory authorized to do official work by the department, or a milk industry laboratory officially designated by the department for the examination of grade A raw milk for pasteurization and commingled milk tank truck samples of raw milk for antibiotic residues and bacterial limits.

             "PMO" means the grade "A" pasteurized milk ordinance published by the United States public health service, food and drug administration.

             "Pasteurized" means the process of heating every particle of milk or milk product in properly designed and operated equipment to the temperature and time standards specified in the PMO.

             "Person" means an individual, partnership, firm, corporation, company, trustee, or association.

             "Producer" means a person or organization who operates a dairy farm and provides, sells, or offers milk for sale to a milk processing plant, receiving station, or transfer station.

             "Receiving station" means a place, premises, or establishment where raw milk is received, collected, handled, stored, or cooled and prepared for further transporting.

             "Sale" means selling, offering for sale, holding for sale, preparing for sale, trading, bartering, offering a gift as an inducement for sale of, and advertising for sale in any media.

             "Transfer station" means any place, premises, or establishment where milk or milk products are transferred directly from one milk tank truck to another.

             "Ultrapasteurized" means the process by which milk or milk products have been thermally processed in accordance with the time and temperature standards of the PMO, so as to produce a product which has an extended shelf life under refrigerated conditions.

             "Ungraded processing plant" means a milk processing plant that meets all of the standards of the PMO to produce milk products other than grade A milk or milk products.

             "Wash station" means a place, facility, or establishment where milk tanker trucks are cleaned in accordance with the standards of the PMO.

             All dairy products mentioned in this chapter mean those fit or used for human consumption.


             Sec. 2. RCW 15.36.071 and 1994 c 143 s 205 are each amended to read as follows:

             A milk hauler must obtain a milk hauler's license to conduct the operation under this chapter. A milk hauler's license is not transferable with respect to persons or locations or both. The license, issued by the director upon approval of an application for the license and compliance with the provisions of this chapter, shall contain the license number, name, residence, and place of business, if any, of the licensee. A milk hauler's license shall also contain endorsements for individual milk transport vehicles. The license plate number and registration number for each milk transport vehicle shall be listed on the endorsement.


             Sec. 3. RCW 15.36.171 and 1994 c 143 s 301 are each amended to read as follows:

             No milk or milk products shall be sold to the final consumer or to restaurants, soda fountains, grocery stores, or similar establishments except grade A pasteurized milk, or grade A raw milk. The director may revoke the license of any milk distributor ((failing)), milk processing plant, or producer whose product fails to qualify as grade A pasteurized or grade A raw, or in lieu thereof may degrade his or her product to grade C and permit its sale as other than fluid milk or grade A milk products during a period not exceeding thirty days. In the event of an emergency, the director may permit the sale of grade C milk for more than thirty days.


             Sec. 4. RCW 15.36.221 and 1984 c 226 s 5 are each amended to read as follows:

             Milk and milk products for consumption in the raw state or for pasteurization shall be cooled within two hours of completion of milking to forty degrees Fahrenheit or less and maintained at that temperature until picked up, in accordance with RCW ((15.36.110)) 15.36.201, so long as the blend temperature after the first and following milkings does not exceed fifty degrees Fahrenheit.


             Sec. 5. RCW 15.36.411 and 1994 c 143 s 502 are each amended to read as follows:

             The director may, subsequent to a hearing on the license, suspend or revoke a license issued under this chapter if the director determines that an applicant has committed any of the following acts:

             (1) Refused, neglected, or failed to comply with the provisions of this chapter, the rules adopted under this chapter, or a lawful order of the director.

             (2) Refused, neglected, or failed to keep and maintain records required by this chapter, or to make the records available if requested under the provisions of this chapter.

             (3) Refused the department access to a portion or area of a facility regulated under this chapter, for the purpose of carrying out the provisions of this chapter.

             (4) Refused the department access to records required to be kept under the provisions of this chapter.

             (5) Refused, neglected, or failed to comply with the applicable provisions of chapter 69.04 RCW, Washington food, drug, and cosmetic act, or rules adopted under chapter 69.04 RCW.

             The provisions of this section requiring that a hearing be conducted before an action may be taken against a license do not apply to an action taken under RCW 15.36.111, 15.36.201, or 15.36.421.

             Whenever a milk transport vehicle is found in violation of this chapter or rules adopted under this chapter, the endorsement for that milk transport vehicle contained on a milk hauler's license shall be suspended or revoked. The suspension or revocation does not apply to any other milk transport vehicle operated by the milk hauler.


             Sec. 6. RCW 15.36.431 and 1994 c 143 s 504 are each reenacted to read as follows:

             No person shall employ a tester, sampler, weigher, grader, or pasteurizer who is not licensed as a dairy technician.

             A person who violates the provisions of this section may be fined not less than two hundred fifty nor more than one thousand dollars, and his or her license issued under this chapter revoked or suspended subject to a hearing as provided under chapter 34.05 RCW.


             Sec. 7. RCW 15.36.441 and 1994 c 143 s 505 are each amended to read as follows:

             (1) If the results of an antibiotic, pesticide, or other drug residue test under RCW ((15.36.110)) 15.36.201 are above the actionable level established in the PMO and determined using procedures set forth in the PMO, a person holding a milk producer's license is subject to a civil penalty. The penalty shall be in an amount equal to one-half the value of the sum of the volumes of milk equivalent produced under the license on the day prior to and the day of the adulteration. The value of the milk shall be computed by the weighted average price for the federal market order under which the milk is delivered.

             (2) The penalty is imposed by the department giving a written notice which is either personally served upon or transmitted by certified mail, return receipt requested, to the person incurring the penalty. The notice of the civil penalty shall be a final order of the department unless, within fifteen days after the notice is received, the person incurring the penalty appeals the penalty by filing a notice of appeal with the department. If a notice of appeal is filed in a timely manner, a hearing shall be conducted on behalf of the department by the office of administrative hearings in accordance with chapters 34.05 and 34.12 RCW. At the conclusion of the hearing, the department shall determine whether the penalty should be affirmed, and, if so, shall issue a final order setting forth the civil penalty assessed, if any. The order may be appealed to superior court in accordance with chapter 34.05 RCW. Tests performed for antibiotic, pesticide, or other drug residues by an official laboratory or an officially designated laboratory of a milk sample drawn by a department official or a licensed dairy technician shall be admitted as prima facie evidence of the presence or absence of an antibiotic, pesticide, or other drug residue.

             (3) Any penalty imposed under this section is due and payable upon the issuance of the final order by the department. The penalty shall be deducted by the violator's marketing organization from the violator's final payment for the month following the issuance of the final order. The department shall promptly notify the violator's marketing organization of any penalties contained in the final order.

             (4) All penalties received or recovered from violations of this section shall be remitted monthly by the violator's marketing organization to the Washington state dairy products commission and deposited in a revolving fund to be used solely for the purposes of education and research. No appropriation is required for disbursements from this fund.

             (5) In case of a violation of the antibiotic, pesticide, or other drug residue test requirements, an investigation shall be made to determine the cause of the residue which shall be corrected. Follow-up sampling and testing must be done in accordance with the requirements of the PMO.


             NEW SECTION. Sec. 8. For the purpose of this chapter:

             (1) "Food storage warehouse" means any premises, establishment, building, room area, facility, or place, in whole or in part, where food is stored, kept, or held for wholesale distribution to other wholesalers or to retail outlets, restaurants, and any such other facility selling or distributing to the ultimate consumer. Food storage warehouses include, but are not limited to, facilities where food is kept or held refrigerated or frozen and include facilities where food is stored to the account of another firm and/or is owned by the food storage warehouse. "Food storage warehouse" does not include grain elevators or fruit and vegetable storage and packing houses that store, pack, and ship fresh fruit and vegetables even though they may use refrigerated or controlled atmosphere storage practices in their operation. However, this chapter applies to multiple food storage operations that also distribute or ripen fruits and vegetables.

             (2) "Department" means the Washington department of agriculture.

             (3) "Director" means the director of the Washington department of agriculture.

             (4) "Food" means the same as defined in RCW 69.04.008.

             (5) "Independent sanitation consultant" means an individual, partnership, cooperative, or corporation that by reason of education, certification, and experience has satisfactorily demonstrated expertise in food and dairy sanitation and is approved by the director to advise on such areas including, but not limited to: Principles of cleaning and sanitizing food processing plants and equipment; rodent, insect, bird, and other pest control; principals of hazard analysis critical control point; basic food product labeling; principles of proper food storage and protection; proper personnel work practices and attire; sanitary design, construction, and installation of food plant facilities, equipment, and utensils; and other pertinent food safety issues.


             NEW SECTION. Sec. 9. The director or his or her representative shall make annual inspections of each food storage warehouse for compliance with the provisions of chapter 69.04 RCW and the rules adopted under chapter 69.04 RCW, except that food storage warehouses exempted from licensure by the provisions of this chapter shall be inspected by the department as deemed necessary by the director. Any food storage warehouse found to not be in substantial compliance with chapter 69.04 RCW and the rules adopted under chapter 69.04 RCW will be reinspected as deemed necessary by the director to determine compliance. This does not preclude the director from using any other remedies as provided under chapter 69.04 RCW to gain compliance or to embargo products as provided under RCW 69.04.110 to protect the public from adulterated foods.


             NEW SECTION. Sec. 10. Except as provided in this section and section 11 of this act, it shall be unlawful for any person to operate a food storage warehouse in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license or license renewal shall be on a form prescribed by the director and accompanied by the license fee. The license fee is fifty dollars.

             The application shall include the full name of the applicant for the license and the location of the food storage warehouse he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association, or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation must be given on the application. The application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted under this chapter by the department, the applicant shall be issued a license or renewal thereof. The director shall waive licensure under this chapter for firms that are licensed under the provisions of chapter 69.07 or 15.36 RCW.


             NEW SECTION. Sec. 11. A food storage warehouse that is inspected for compliance with the current good manufacturing practices (Title 21 C.F.R. part 110) on at least an annual basis by a state or federal agency or by an independent sanitation consultant approved by the department shall be exempted from licensure under this chapter.

             A report identifying the inspector and the inspecting entity, the date of the inspection, and any violations noted on such inspection shall be forwarded to the department by the food storage warehouse within sixty days of the completion of the inspection. An inspection shall be conducted and an inspection report for a food storage warehouse shall be filed with the department at least once every twelve months or the warehouse shall be licensed under this chapter and inspected by the department for a period of two years.


             NEW SECTION. Sec. 12. If the application for renewal of any license provided for under this chapter is not filed prior to the expiration date as established by rule by the director, an additional fee of ten percent of the cost of the license shall be assessed and added to the original fee and must be paid by the applicant before the renewal license is issued.


             NEW SECTION. Sec. 13. The director may, subsequent to a hearing thereon, deny, suspend, or revoke any license provided for in this chapter if he or she determines that an applicant has committed any of the following acts:

             (1) Refused, neglected, or failed to comply with the provisions of this chapter, the rules adopted under this chapter, or any lawful order of the director;

             (2) Refused, neglected, or failed to keep and maintain records required by this chapter, or to make such records available if requested pursuant to the provisions of this chapter;

             (3) Refused the department access to any portion or area of the food storage warehouse for the purpose of carrying out the provisions of this chapter;

             (4) Refused the department access to any records required to be kept under the provisions of this chapter;

             (5) Refused, neglected, or failed to comply with any provisions of chapter 69.04 RCW, Washington food, drug, and cosmetic act, or any rules adopted under chapter 69.04 RCW.

             The provisions of this section requiring that a hearing be conducted before an action may be taken against a license do not apply to an action taken under section 14 of this act.


             NEW SECTION. Sec. 14. (1) Whenever the director finds a food storage warehouse operating under conditions that constitute an immediate danger to public health or whenever the licensee or any employee of the licensee actively prevents the director or the director's representative, during an on-site inspection, from determining whether such a condition exists, the director may summarily suspend, pending a hearing, a license provided for in this chapter.

             (2) Whenever a license is summarily suspended, the holder of the license shall be notified in writing that the license is, upon service of the notice, immediately suspended and that prompt opportunity for a hearing will be provided.

             (3) Whenever a license is summarily suspended, food distribution operations shall immediately cease. However, the director may reinstate the license if the condition that caused the suspension has been abated to the director's satisfaction.


             NEW SECTION. Sec. 15. It is unlawful to sell, offer for sale, or distribute in intrastate commerce food from or stored in a food storage warehouse that is required to be licensed under this chapter but that has not obtained a license, once notification by the director has been given to the persons selling, offering, or distributing food for sale, that the food is in or from such an unlicensed food storage warehouse.


             NEW SECTION. Sec. 16. All moneys received by the department under provisions of this chapter shall be paid into an account created in the agricultural local fund established in RCW 43.23.230 and shall be used solely to carry out provisions of this chapter and chapter 69.04 RCW.


             NEW SECTION. Sec. 17. The department may use all the civil remedies provided under chapter 69.04 RCW in carrying out and enforcing the provisions of this chapter.


             NEW SECTION. Sec. 18. (1) The department shall enforce and carry out the provisions of this chapter and may adopt the necessary rules to carry out its purpose.

             (2) The adoption of rules under the provisions of this chapter are subject to the applicable provisions of chapter 34.05 RCW, the administrative procedure act.


             NEW SECTION. Sec. 19. The director or director's deputies, assistants, and inspectors are authorized to do all acts and things necessary to carry out the provisions of this chapter, including the taking of verified statements. The department personnel are empowered to administer oaths of verification on the statement.


             NEW SECTION. Sec. 20. A new section is added to chapter 69.04 RCW to read as follows:

             The director need not petition the superior court as provided for in RCW 69.04.120 if the owner or claimant of such food or food products agrees in writing to the disposition of such food or food products as the director may order.


             Sec. 21. RCW 69.07.040 and 1993 sp.s. c 19 s 11 and 1993 c 212 s 2 are each reenacted and amended to read as follows:

             It shall be unlawful for any person to operate a food processing plant or process foods in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license shall be on a form prescribed by the director and accompanied by the license fee. The license fee is determined by computing the gross annual sales for the accounting year immediately preceding the license year. If the license is for a new operator, the license fee shall be based on an estimated gross annual sales for the initial license period.


             If gross annual sales are:                                                                                           The license fee is:

             $0 to $50,000                                                                                                                         $55.00

             $50,001 to $500,000                                                                                                               $110.00

             $500,001 to $1,000,000                                                                                                          $220.00

             $1,000,001 to $5,000,000                                                                                                       $385.00

             $5,000,001 to $10,000,000                                                                                                     $550.00

             Greater than $10,000,000                                                                                                       $825.00


Such application shall include the full name of the applicant for the license and the location of the food processing plant he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. The application shall also specify the type of food to be processed and the method or nature of processing operation or preservation of that food and any other necessary information. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof.

             Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. Wherever a license holder wishes to engage in processing a type of food product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee shall submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of food product only after the amendment has been approved by the department.

             If upon investigation by the director, it is determined that a person is processing food for retail sale and is not under permit, license, or inspection by a local health authority, then that person may be considered a food processor and subject to the provisions of this chapter. The director may waive the licensure requirements of this chapter for a person's operations at a facility if the person ((is licensed under chapter 15.32 RCW or has a permit)) has obtained a milk processing plant license under chapter 15.36 RCW to conduct the same or a similar operation at the facility.


             Sec. 22. RCW 69.07.100 and 1988 c 5 s 4 are each amended to read as follows:

             The provisions of this chapter shall not apply to establishments issued a permit or licensed under the provisions of:

             (1) ((Chapter 15.32 RCW, the Dairies and dairy products act;

             (2))) Chapter 69.25 RCW, the Washington wholesome eggs and egg products act;

             (((3))) (2) Chapter 69.28 RCW, the Washington state honey act;

             (((4))) (3) Chapter 16.49 RCW, the Meat inspection act;

             (((5))) (4) Title 66 RCW, relating to alcoholic beverage control; and

             (((6))) (5) Chapter 69.30 RCW, the Sanitary control of shellfish act: PROVIDED, That if any such establishments process foods not specifically provided for in the above entitled acts, such establishments shall be subject to the provisions of this chapter.

             The provisions of this chapter shall not apply to restaurants or food service establishments.


             Sec. 23. RCW 69.07.085 and 1988 c 254 s 9 are each amended to read as follows:

             The department may issue sanitary certificates to food processors under this chapter subject to such requirements as it may establish by rule. The fee for issuance shall be ((twenty)) fifty dollars per certificate. Fees collected under this section shall be deposited in the agricultural local fund.


             NEW SECTION. Sec. 24. The following acts or parts of acts are each repealed:

             (1) RCW 69.08.010 and 1971 c 27 s 1 & 1945 c 192 s 1;

             (2) RCW 69.08.020 and 1945 c 192 s 4;

             (3) RCW 69.08.030 and 1985 c 25 s 1 & 1945 c 192 s 2;

             (4) RCW 69.08.040 and 1985 c 25 s 2 & 1945 c 192 s 3;

             (5) RCW 69.08.045 and 1988 c 5 s 5 & 1971 c 27 s 2;

             (6) RCW 69.08.050 and 1945 c 192 s 5;

             (7) RCW 69.08.060 and 1945 c 192 s 6;

             (8) RCW 69.08.070 and 1945 c 192 s 7;

             (9) RCW 69.08.080 and 1945 c 192 s 8; and

             (10) RCW 69.08.090 and 1945 c 192 s 9.


             Sec. 25. RCW 69.25.020 and 1982 c 182 s 42 are each amended to read as follows:

             When used in this chapter the following terms shall have the indicated meanings, unless the context otherwise requires:

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

             (2) "Director" means the director of the department or his duly authorized representative.

             (3) "Person" means any natural person, firm, partnership, exchange, association, trustee, receiver, corporation, and any member, officer, or employee thereof, or assignee for the benefit of creditors.

             (4) "Adulterated" applies to any egg or egg product under one or more of the following circumstances:

             (a) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such article shall not be considered adulterated under this clause if the quantity of such substance in or on such article does not ordinarily render it injurious to health;

             (b) If it bears or contains any added poisonous or added deleterious substance (other than one which is: (i) A pesticide chemical in or on a raw agricultural commodity; (ii) a food additive; or (iii) a color additive) which may, in the judgment of the director, make such article unfit for human food;

             (c) If it is, in whole or in part, a raw agricultural commodity and such commodity bears or contains a pesticide chemical which is unsafe within the meaning of RCW 69.04.392, as enacted or hereafter amended;

             (d) If it bears or contains any food additive which is unsafe within the meaning of RCW 69.04.394, as enacted or hereafter amended;

             (e) If it bears or contains any color additive which is unsafe within the meaning of RCW 69.04.396, as enacted or hereafter amended: PROVIDED, That an article which is not otherwise deemed adulterated under subsection (4)(c), (d), or (e) of this section shall nevertheless be deemed adulterated if use of the pesticide chemical, food additive, or color additive, in or on such article, is prohibited by regulations of the director in official plants;

             (f) If it consists in whole or in part of any filthy, putrid, or decomposed substance, or if it is otherwise unfit for human food;

             (g) If it consists in whole or in part of any damaged egg or eggs to the extent that the egg meat or white is leaking, or it has been contacted by egg meat or white leaking from other eggs;

             (h) If it has been prepared, packaged, or held under insanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health;

             (((h))) (i) If it is an egg which has been subjected to incubation or the product of any egg which has been subjected to incubation;

             (((i))) (j) If its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health;

             (((j))) (k) If it has been intentionally subjected to radiation, unless the use of the radiation was in conformity with a regulation or exemption in effect pursuant to RCW 69.04.394; or

             (((k))) (l) If any valuable constituent has been in whole or in part omitted or abstracted therefrom; or if any substance has been substituted, wholly or in part therefor; or if damage or inferiority has been concealed in any manner; or if any substance has been added thereto or mixed or packed therewith so as to increase its bulk or weight, or reduce its quality or strength, or make it appear better or of greater value than it is.

             (5) "Capable of use as human food" shall apply to any egg or egg product unless it is denatured, or otherwise identified, as required by regulations prescribed by the director, to deter its use as human food.

             (6) "Intrastate commerce" means any eggs or egg products in intrastate commerce, whether such eggs or egg products are intended for sale, held for sale, offered for sale, sold, stored, transported, or handled in this state in any manner and prepared for eventual distribution in this state, whether at wholesale or retail.

             (7) "Container" or "package" includes any box, can, tin, plastic, or other receptacle, wrapper, or cover.

             (8) "Immediate container" means any consumer package, or any other container in which egg products, not consumer-packaged, are packed.

             (9) "Shipping container" means any container used in packaging a product packed in an immediate container.

             (10) "Egg handler" or "dealer" means any person who produces, contracts for or obtains possession or control of any eggs for the purpose of sale to another dealer or retailer, or for processing and sale to a dealer, retailer or consumer: PROVIDED, That for the purpose of this chapter, "sell" or "sale" includes the following: Offer for sale, expose for sale, have in possession for sale, exchange, barter, trade, or as an inducement for the sale of another product.

             (11) "Egg product" means any dried, frozen, or liquid eggs, with or without added ingredients, excepting products which contain eggs only in a relatively small proportion, or historically have not been, in the judgment of the director, considered by consumers as products of the egg food industry, and which may be exempted by the director under such conditions as he may prescribe to assure that the egg ingredients are not adulterated and such products are not represented as egg products.

             (12) "Egg" means the shell egg of the domesticated chicken, turkey, duck, goose, or guinea, or any other specie of fowl.

             (13) "Check" means an egg that has a broken shell or crack in the shell but has its shell membranes intact and contents not leaking.

             (14) "Clean and sound shell egg" means any egg whose shell is free of adhering dirt or foreign material and is not cracked or broken.

             (15) "Dirty egg" means an egg that has a shell that is unbroken and has adhering dirt or foreign material.

             (16) "Incubator reject" means an egg that has been subjected to incubation and has been removed from incubation during the hatching operations as infertile or otherwise unhatchable.

             (17) "Inedible" means eggs of the following descriptions: Black rots, yellow rots, white rots, mixed rots (addled eggs), sour eggs, eggs with green whites, eggs with stuck yolks, moldy eggs, musty eggs, eggs showing blood rings, and eggs containing embryo chicks (at or beyond the blood ring stage).

             (18) "Leaker" means an egg that has a crack or break in the shell and shell membranes to the extent that the egg contents are exposed or are exuding or free to exude through the shell.

             (19) "Loss" means an egg that is unfit for human food because it is smashed or broken so that its contents are leaking; or overheated, frozen, or contaminated; or an incubator reject; or because it contains a bloody white, large meat spots, a large quantity of blood, or other foreign material.

             (20) "Restricted egg" means any check, dirty egg, incubator reject, inedible, leaker, or loss.

             (21) "Inspection" means the application of such inspection methods and techniques as are deemed necessary by the director to carry out the provisions of this chapter.

             (22) "Inspector" means any employee or official of the department authorized to inspect eggs or egg products under the authority of this chapter.

             (23) "Misbranded" shall apply to egg products which are not labeled and packaged in accordance with the requirements prescribed by regulations of the director under RCW 69.25.100.

             (24) "Official certificate" means any certificate prescribed by regulations of the director for issuance by an inspector or other person performing official functions under this chapter.

             (25) "Official device" means any device prescribed or authorized by the director for use in applying any official mark.

             (26) "Official inspection legend" means any symbol prescribed by regulations of the director showing that egg products were inspected in accordance with this chapter.

             (27) "Official mark" means the official inspection legend or any other symbol prescribed by regulations of the director to identify the status of any article under this chapter.

             (28) "Official plant" means any plant which is licensed under the provisions of this chapter, at which inspection of the processing of egg products is maintained by the United States department of agriculture or by the state under cooperative agreements with the United States department of agriculture or by the state.

             (29) "Official standards" means the standards of quality, grades, and weight classes for eggs, adopted under the provisions of this chapter.

             (30) "Pasteurize" means the subjecting of each particle of egg products to heat or other treatments to destroy harmful, viable micro-organisms by such processes as may be prescribed by regulations of the director.

             (31) "Pesticide chemical", "food additive", "color additive", and "raw agricultural commodity" shall have the same meaning for purposes of this chapter as prescribed in chapter 69.04 RCW.

             (32) "Plant" means any place of business where egg products are processed.

             (33) "Processing" means manufacturing egg products, including breaking eggs or filtering, mixing, blending, pasteurizing, stabilizing, cooling, freezing, drying, or packaging egg products.

             (34) "Retailer" means any person in intrastate commerce who sells eggs to a consumer.

             (35) "At retail" means any transaction in intrastate commerce between a retailer and a consumer.

             (36) "Consumer" means any person who purchases eggs for his or her own family use or consumption; or any restaurant, hotel, boarding house, bakery, or other institution or concern which purchases eggs for serving to guests or patrons thereof, or for its own use in cooking or baking.

             (37) "Candling" means the examination of the interior of eggs by the use of transmitted light used in a partially dark room or place.

             (38) "Master license system" means the mechanism established by chapter 19.02 RCW by which master licenses, endorsed for individual state-issued licenses, are issued and renewed utilizing a master application and a master license expiration date common to each renewable license endorsement.

             (39) "Ambient temperature" means the atmospheric temperature surrounding or encircling shell eggs.


             Sec. 26. RCW 69.25.050 and 1982 c 182 s 43 are each amended to read as follows:

             No person shall act as an egg handler or dealer without first obtaining an annual license and permanent dealer's number from the department; such license shall expire on the master license expiration date. Application for an egg dealer license or egg dealer branch license, shall be made through the master license system. The annual egg dealer license fee shall be ((ten)) thirty dollars and the annual egg dealer branch license fee shall be ((five)) fifteen dollars. A copy of the master license shall be posted at each location where such licensee operates. Such application shall include the full name of the applicant for the license and the location of each facility he intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership or the names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant and any other necessary information prescribed by the director. Upon the approval of the application and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof. Such license and permanent egg handler or dealer's number shall be nontransferable.


             Sec. 27. RCW 69.25.150 and 1992 c 7 s 47 are each amended to read as follows:

             (1) ((Any person who commits any offense prohibited by RCW 69.25.110 shall upon conviction be guilty of a gross misdemeanor.)) (a) Any person violating any provision of this chapter or any rule adopted under this chapter is guilty of a misdemeanor and guilty of a gross misdemeanor for any second and subsequent violation. Any offense committed more than five years after a previous conviction shall be considered a first offense. A misdemeanor under this section is punishable to the same extent that a misdemeanor is punishable under RCW 9A.20.021 and a gross misdemeanor under this section is punishable to the same extent that a gross misdemeanor is punishable under RCW 9A.20.021.

             (b) Whenever the director finds that a person has committed a violation of any of the provisions of this chapter, and that violation has not been punished pursuant to (a) of this subsection, the director may impose upon and collect from the violator a civil penalty not exceeding one thousand dollars per violation per day. Each violation shall be a separate and distinct offense.

             When construing or enforcing the provisions of RCW 69.25.110, the act, omission, or failure of any person acting for or employed by any individual, partnership, corporation, or association within the scope of the person's employment or office shall in every case be deemed the act, omission, or failure of such individual, partnership, corporation, or association, as well as of such person.

             (2) No carrier or warehouseman shall be subject to the penalties of this chapter, other than the penalties for violation of RCW 69.25.140, or subsection (3) of this section, by reason of his or her receipt, carriage, holding, or delivery, in the usual course of business, as a carrier or warehouseman of eggs or egg products owned by another person unless the carrier or warehouseman has knowledge, or is in possession of facts which would cause a reasonable person to believe that such eggs or egg products were not eligible for transportation under, or were otherwise in violation of, this chapter, or unless the carrier or warehouseman refuses to furnish on request of a representative of the director the name and address of the person from whom he or she received such eggs or egg products and copies of all documents, if there be any, pertaining to the delivery of the eggs or egg products to, or by, such carrier or warehouseman.

             (3) Notwithstanding any other provision of law any person who forcibly assaults, resists, impedes, intimidates, or interferes with any person while engaged in or on account of the performance of his or her official duties under this chapter shall be punished by a fine of not more than five thousand dollars or imprisonment in a state correctional facility for not more than three years, or both. Whoever, in the commission of any such act, uses a deadly or dangerous weapon, shall be punished by a fine of not more than ten thousand dollars or by imprisonment in a state correctional facility for not more than ten years, or both.


             Sec. 28. RCW 69.25.170 and 1975 1st ex.s. c 201 s 18 are each amended to read as follows:

             (1) The director may, by regulation and under such conditions and procedures as he may prescribe, exempt from specific provisions of this chapter:

             (a) The sale, transportation, possession, or use of eggs which contain no more restricted eggs than are allowed by the tolerance in the official state standards for consumer grades for shell eggs;

             (b) The processing of egg products at any plant where the facilities and operating procedures meet such sanitary standards as may be prescribed by the director, and where the eggs received or used in the manufacture of egg products contain no more restricted eggs than are allowed by the official standards of the state consumer grades for shell eggs, and the egg products processed at such plant;

             (c) The sale of eggs by any poultry producer from his own flocks directly to a household consumer exclusively for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this subsection;

             (d) The sale of eggs by shell egg packers on his own premises directly to household consumers for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this subsection;

             (e) The sale of eggs by any egg producer with an annual egg production from a flock of three thousand hens or less.

             (2) The director may modify or revoke any regulation granting exemption under this chapter whenever he deems such action appropriate to effectuate the purposes of this chapter.


             Sec. 29. RCW 69.25.250 and 1993 sp.s. c 19 s 12 are each amended to read as follows:

             There is hereby levied an assessment not to exceed three mills per dozen eggs entering intrastate commerce, as prescribed by rules and regulations issued by the director. Such assessment shall be applicable to all eggs entering intrastate commerce except as provided in RCW 69.25.170 and 69.25.290. Such assessment shall be paid to the director on a monthly basis on or before the tenth day following the month such eggs enter intrastate commerce. The director may require reports by egg handlers or dealers along with the payment of the assessment fee. Such reports may include any and all pertinent information necessary to carry out the purposes of this chapter. The director may, by regulations, require egg container manufacturers to report on a monthly basis all egg containers sold to any egg handler or dealer and bearing such egg handler or dealer's ((license)) permanent number.


             Sec. 30. RCW 69.25.310 and 1975 1st ex.s. c 201 s 32 are each amended to read as follows:

             (1) All containers used by an egg handler or dealer to package eggs shall bear the name and address or the permanent number issued by the director to said egg handler or dealer. Such permanent number shall be displayed in a size and location prescribed by the director. ((It shall constitute a gross misdemeanor for any egg handler or dealer to reuse a container which bears the permanent number of another egg handler or dealer unless such number is totally obliterated prior to reuse.)) It shall be a violation for any egg handler or dealer to use a container that bears the permanent number of another egg handler or dealer unless such number is totally obliterated prior to use. The director may in addition require the obliteration of any or all markings that may be on any container which will be ((reused)) used for eggs by an egg handler or dealer.

             (2) Notwithstanding subsection (1) of this section and following written notice to the director, licensed egg handlers and dealers may use new containers bearing another handler's or dealer's permanent number on a temporary basis, in any event not longer than one year, with the consent of such other handler or dealer for the purpose of using up existing container stocks. Sale of container stock shall constitute agreement by the parties to use the permanent number.


             Sec. 31. RCW 69.25.320 and 1975 1st ex.s. c 201 s 33 are each amended to read as follows:

             (1) In addition to any other records required to be kept and furnished the director under the provisions of this chapter, the director may require any person who sells to any retailer, or to any restaurant, hotel, boarding house, bakery, or any institution or concern which purchases eggs for serving to guests or patrons thereof or for its use in preparation of any food product for human consumption, candled or graded eggs other than those of his own production sold and delivered on the premises where produced, to furnish that retailer or other purchaser with an invoice covering each such sale, showing the exact grade or quality, and the size or weight of the eggs sold, according to the standards prescribed by the director, together with the name and address of the person by whom the eggs were sold. The person selling and the retailer or other purchaser shall keep a copy of said invoice on file at his place of business for a period of thirty days, during which time the copy shall be available for inspection at all reasonable times by the director: PROVIDED, That no retailer or other purchaser shall be guilty of a violation of this chapter if he can establish a guarantee from the person from whom the eggs were purchased to the effect that they, at the time of purchase, conformed to the information required by the director on such invoice: PROVIDED FURTHER, That if the retailer or other purchaser having labeled any such eggs in accordance with the invoice keeps them for such a time after they are purchased as to cause them to deteriorate to a lower grade or standard, and sells them under the label of the invoice grade or standard, he shall be guilty of a violation of this chapter.

             (2) Each retailer and each distributor shall store shell eggs awaiting sale or display eggs under clean and sanitary conditions in areas free from rodents and insects. Shell eggs must be stored up off the floor away from strong odors, pesticides, and cleaners.

             (3) After being received at the point of first purchase, all graded shell eggs packed in containers for the purpose of sale to consumers shall be held and transported under refrigeration at ambient temperatures no greater than forty-five degrees Fahrenheit (seven and two-tenths degrees Celsius). This provision shall apply without limitation to retailers, institutional users, dealer/wholesalers, food handlers, transportation firms, or any person who handles eggs after the point of first purchase.

             (4) No invoice shall be required on eggs when packed for sale to the United States department of defense, or a component thereof, if labeled with grades promulgated by the United States secretary of agriculture.


             NEW SECTION. Sec. 32. The following acts or parts of acts are each repealed:

             (1) RCW 69.25.330 and 1975 1st ex.s. c 201 s 34; and

             (2) RCW 69.25.340 and 1975 1st ex.s. c 201 s 36.


             Sec. 33. RCW 15.53.901 and 1982 c 177 s 1 are each amended to read as follows:

             The definitions set forth in this section apply ((through [throughout])) throughout this chapter.

             (((1) "Department" means the department of agriculture of the state of Washington or its duly authorized representative.

             (2) "Person" means a natural person, individual, firm, partnership, corporation, company, society, or association.

             (3) "Distribute" means to import, consign, manufacture, produce, compound, mix, or blend commercial feed, or to offer for sale, sell, barter, or otherwise supply commercial feed in this state.

             (4) "Distributor" means any person who distributes.

             (5) "Sell" or "sale" includes exchange.

             (6) "Commercial feed" means all materials including customer-formula feed which are distributed for use as feed or for mixing in feed, for animals other than man.

             (7) "Feed ingredient" means each of the constituent materials making up a commercial feed.

             (8) "Customer-formula feed" means a mixture of commercial feed and/or materials each batch of which is mixed according to the specific instructions of the final purchaser or contract feeder.

             (9) "Brand" means the term, design, trademark, or other specific designation under which an individual commercial feed is distributed in this state.

             (10) "Product" means the name of the commercial feed that identifies it as to kind, class, or specific use.

             (11) "Label" means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed, or on the invoice or delivery slip with which a commercial feed is distributed.

             (12) "Labeling" means all labels and other written, printed, or graphic matter upon a commercial feed or any of its containers or wrappers, or otherwise accompanying such commercial feed.

             (13) "Ton" means a net weight of two thousand pounds avoirdupois.

             (14) "Percent" or "percentage" means percentage by weight.

             (15) "Official sample" means any sample of feed taken by the department, obtained and analyzed as provided in RCW 15.53.9024.

             (16) "Contract feeder" means an independent contractor, or any other person who feeds commercial feed to animals pursuant to an oral or written agreement whereby such commercial feed is supplied, furnished or otherwise provided to such person by any distributor and whereby such person's remuneration is determined all or in part by feed consumption, mortality, profits, or amount or quality of product: PROVIDED, That it shall not include a bona fide employee of a manufacturer or distributor of commercial feed.

             (17) "Retail" means to distribute to the ultimate consumer.))

             (1) "Brand name" means a word, name, symbol, or device, or any combination thereof, identifying the commercial feed of a distributor or registrant and distinguishing it from that of others.

             (2) "Commercial feed" means all materials or combination of materials that are distributed or intended for distribution for use as feed or for mixing in feed, unless such materials are specifically exempted. Unmixed whole seeds and physically altered entire unmixed seeds, when such whole seeds or physically altered seeds are not chemically changed or not adulterated within the meaning of RCW 15.53.902, are exempt. The department by rule may exempt from this definition, or from specific provisions of this chapter, commodities such as hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or substances when such commodities, compounds, or substances are not intermixed with other materials, and are not adulterated within the meaning of RCW 15.53.902.

             (3) "Contract feeder" means a person who is an independent contractor and feeds commercial feed to animals pursuant to a contract whereby such commercial feed is supplied, furnished, or otherwise provided to such person and whereby such person's remuneration is determined all or in part by feed consumption, mortality, profits, or amount or quality of product.

             (4) "Customer-formula feed" means commercial feed that consists of a mixture of commercial feeds or feed ingredients, or both, each batch of which is manufactured according to the instructions of the final purchaser.

             (5) "Department" means the department of agriculture of the state of Washington or its duly authorized representative.

             (6) "Director" means the director of the department or a duly authorized representative.

             (7) "Distribute" means to offer for sale, sell, exchange or barter, commercial feed; or to supply, furnish, or otherwise provide commercial feed to a contract feeder.

             (8) "Distributor" means a person who distributes.

             (9) "Drug" means an article intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals other than people and articles, other than feed intended to affect the structure or a function of the animal body.

             (10) "Exempt buyer" means a licensee who has agreed to be responsible for reporting tonnage and paying inspection fees for all commercial feeds they distribute. An exempt buyer must apply for exempt buyer status with the department. The department shall maintain a list of all exempt buyers and make the list available on request.

             (11) "Feed ingredient" means each of the constituent materials making up a commercial feed.

             (12) "Final purchaser" means a person who purchases commercial feed to feed to animals in his or her care.

             (13) "Initial distributor" means a person who first distributes a commercial feed in or into this state.

             (14) "Label" means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed, or on the invoice or delivery slip with which a commercial feed is distributed.

             (15) "Labeling" means all labels and other written, printed, or graphic matter: (a) Upon a commercial feed or any of its containers or wrappers; or (b) accompanying such commercial feed.

             (16) "Licensee" means a person who holds a commercial feed license as prescribed in this chapter.

             (17) "Manufacture" means to grind, mix or blend, or further process a commercial feed for distribution.

             (18) "Medicated feed" means a commercial feed containing a drug or other medication.

             (19) "Mineral feed" means a commercial feed intended to supply primarily mineral elements or inorganic nutrients.

             (20) "Official sample" means a sample of feed taken by the department, obtained and analyzed as provided in RCW 15.53.9024 (3), (5), or (6).

             (21) "Percent" or "percentage" means percentage by weight.

             (22) "Person" means an individual, firm, partnership, corporation, or association. 

             (23) "Pet" means a domesticated animal normally maintained in or near the household of the owner of the pet.

             (24) "Pet food" means a commercial feed prepared and distributed for consumption by pets.

             (25) "Product name" means the name of the commercial feed that identifies it as to kind, class, or specific use.

             (26) "Retail" means to distribute to the final purchaser.

             (27) "Sell" or "sale" includes exchange.

             (28) "Specialty pet" means a domesticated animal pet normally maintained in a cage or tank, such as, but not limited to, gerbils, hamsters, canaries, psittacine birds, mynahs, finches, tropical fish, goldfish, snakes, and turtles.

             (29) "Specialty pet food" means a commercial feed prepared and distributed for consumption by specialty pets.

             (30) "Ton" means a net weight of two thousand pounds avoirdupois.

             (31) "Quantity statement" means the net weight (mass), net volume (liquid or dry), or count.


             Sec. 34. RCW 15.53.9012 and 1965 ex.s. c 31 s 3 are each amended to read as follows:

             (1) The department shall administer, enforce and carry out the provisions of this chapter and may adopt rules necessary to carry out its purpose. In adopting such rules, the director shall consider (a) the official definitions of feed ingredients and official feed terms adopted by the association of American feed control officials and published in the official publication of that organization; and (b) any regulation adopted pursuant to the authority of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301, et seq.), if the department would have the authority under this chapter to adopt the regulations. The adoption of rules shall be subject to a public hearing and all other applicable provisions of chapter 34.05 RCW (Administrative Procedure Act)((, as enacted or hereafter amended)).

             (2) The director when adopting rules in respect to the feed industry shall consult with affected parties, such as manufacturers and distributors of commercial feed and any final rule adopted shall be designed to promote orderly marketing and shall be reasonable and necessary and based upon the requirements and condition of the industry and shall be for the purpose of promoting the well-being of the members of the feed industry as well as the well-being of the purchasers and users of feed and for the general welfare of the people of the state.


             NEW SECTION. Sec. 35. A new section is added to chapter 15.53 RCW to read as follows:

             (1) Beginning January 1, 1996, a person who manufactures a commercial feed, is an initial distributor of a commercial feed, or whose name appears as the responsible party on a commercial feed label to be distributed in or into this state shall first obtain from the department a commercial feed license for each facility. Sale of food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants, bona fide experimental feed on which accurate records and experimental programs are maintained, and pet food and specialty pet food are exempt from the requirement of a commercial feed license. The sale of byproducts or products of sugar refineries are not exempt from the requirement of a commercial feed license.

             (2) Application for a commercial feed license shall be made annually on forms provided by the department and shall be accompanied by a fee of fifty dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be twenty-five dollars. The commercial feed license shall expire on June 30th of each year.

             (3) An application for license shall include the following:

             (a) The name and address of the applicant;

             (b) Other information required by the department by rule.

             (4) After January 1, 1996, application for license renewal is due July 1st of each year. If an application for license renewal provided for in this section is not filed with the department prior to July 15th, a delinquency fee of fifty dollars shall be assessed and added to the original fee and must be paid by the applicant before the renewal license is issued. The assessment of the delinquency fee shall not prevent the department from taking other action as provided for in this chapter. The penalty does not apply if the applicant furnishes an affidavit that he or she has not distributed a commercial feed subsequent to the expiration of his or her prior license.

             (5) The department may deny a license application if the applicant is not in compliance with this chapter or applicable rules, and may revoke a license if the licensee is not in compliance with this chapter or applicable rules. Prior to denial or revocation of a license, the department shall provide notice and an opportunity to correct deficiencies. If an applicant or licensee fails to correct the deficiency, the department shall deny or revoke the license. If aggrieved by the decision, the applicant or licensee may request a hearing as authorized under chapter 34.05 RCW.

             (6) Notwithstanding the payment of a delinquency fee, it is a violation to distribute a commercial feed by an unlicensed person, and nothing in this chapter shall prevent the department from imposing a penalty authorized by this chapter for the violation.

             (7) The department may under conditions specified by rule, request copies of labels and labeling in order to determine compliance with the provisions of this chapter.


             Sec. 36. RCW 15.53.9014 and 1993 sp.s. c 19 s 2 are each amended to read as follows:

             (1) Each ((commercial feed)) pet food and specialty pet food shall be registered with the department and such registration shall be renewed annually before such commercial feed may be distributed in this state((: PROVIDED, That sales of food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants; unmixed seed, whole or processed, made directly from the entire seed; unground hay, straw, stover, silage, cobs, husks, and hulls, when not mixed with other material; bona fide experimental feeds on which accurate records and experimental programs are maintained; and customer-formula feeds are exempt from such registration. The exemption for byproducts provided by this subsection does not apply to byproducts or products of sugar refineries or to materials used in the preparation of pet foods.

             (a) Beginning July 1, 1993, each registration for a commercial feed product distributed in packages of ten pounds or more shall be accompanied by a fee of eleven dollars. If such commercial feed is also distributed in packages of less than ten pounds it shall be registered under subsection (b) of this section.

             (b) Beginning July 1, 1993, each registration for a commercial feed product distributed in packages of less than ten pounds shall be accompanied by an annual registration fee of forty-five dollars on each such commercial feed so distributed, but no inspection fee may be collected on packages of less than ten pounds of the commercial feed so registered)).

             (2) The application for registration of pet food and specialty pet food shall be on forms provided by the department and shall be accompanied by the fees in subsection (3) of this section. Registrations expire on June 30th of each year.

             (3) Pet food and specialty pet food registration fees are as follows:

             (a) Each pet food and specialty pet food distributed in packages of ten pounds or more shall be accompanied by a fee of eleven dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be five dollars and fifty cents. If such commercial feed is also distributed in packages of less than ten pounds it shall be registered under (b) of this subsection.

             (b) Each pet food and specialty pet food distributed in packages of less than ten pounds shall be accompanied by a fee of forty-five dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be twenty-two dollars and fifty cents. No inspection fee may be collected on pet food and specialty pet food distributed in packages of less than ten pounds.

             (4) The department may require that ((such)) the application for registration of pet food and specialty pet food be accompanied by a label and/or other printed matter describing the product. ((All registrations expire on December 31st of each year, and are renewable unless such registration is canceled by the department or it has called for a new registration, or unless canceled by the registrant.

             (4) The application shall include the information required by RCW 15.53.9016(1)(b) through (1)(e).))

             (5) A distributor shall not be required to register ((any commercial feed brand or product which)) a pet food or specialty pet food that is already registered under the provisions of this chapter, as long as it is distributed with the original label.

             (6) Changes in the guarantee of either chemical or ingredient composition of a ((commercial feed)) pet food or specialty pet food registered under the provisions of this chapter may be permitted if there is satisfactory evidence that such changes would not result in a lowering of the feed value of the product for the purpose for which it was designed.

             (7) The department is ((empowered)) authorized to refuse registration of any application not in compliance with the provisions of this chapter and any rule adopted under this chapter and to cancel any registration subsequently found to be not in compliance with any provisions of this chapter((, but a registration shall not be refused or canceled until the registrant has been given opportunity to be heard before the department and to amend his application in order to comply with the requirements of)) and any rule adopted under this chapter. Prior to refusal or cancellation of a registration, the applicant or registrant of an existing registered pet food or specialty pet food shall be notified of the reasons and given an opportunity to amend the application to comply. If the applicant does not make the necessary corrections, the department shall refuse to register the feed. The applicant or registrant of an existing registered pet food or specialty pet food may request a hearing as provided for in chapter 34.05 RCW.

             (8) After January 1, 1996, application for renewal of registration is due July 1st of each year. If an application for renewal of the registration provided for in this section is not filed prior to ((January 1st)) July 15th of any one year, a penalty of ten dollars per product shall be assessed and added to the original fee and shall be paid by the applicant before the renewal registration may be issued, unless the applicant furnishes an affidavit that he has not distributed this feed subsequent to the expiration of his or her prior registration.

             (9) It is a violation of this chapter to distribute an unregistered pet food or specialty pet food. Payment of a delinquency fee shall not prevent the department from imposing a penalty authorized by this chapter for the violation.


             Sec. 37. RCW 15.53.9016 and 1965 ex.s. c 31 s 5 are each amended to read as follows:

             (1) Any commercial feed ((registered with the department and)), except a customer-formula feed, distributed in this state shall be accompanied by a legible label bearing the following information:

             (a) ((The net weight as required under chapter 19.94 RCW as enacted or hereinafter amended.

             (b))) The product name ((or)) and the brand name, if any, under which the commercial feed is distributed.

             (((c) The guaranteed analysis of the commercial feed, listing the minimum percentage of crude protein, minimum percentage of crude fat, and maximum percentage of crude fiber. For mineral feeds the list shall include the following if added: Minimum and maximum percentages of calcium (Ca), minimum percentage of phosphorus (P), minimum percentage of iodine (I), and minimum and maximum percentages of salt (NaCl). Other substances or elements, determinable by laboratory methods, may be guaranteed by permission of the department. When any items are guaranteed, they shall be subject to inspection and analysis in accordance with the methods and regulations that may be prescribed by the department. Products distributed solely as mineral and/or vitamin supplements and guaranteed as specified in this section need not show guarantees for protein, fat, and fiber.

             (d))) (b) The guaranteed analysis stated in such terms as the department by rule determines is required to advise the user of the composition of the feed or to support claims made in the labeling. In all cases the substances or elements must be determinable by laboratory methods such as the methods published by the association of official analytical chemists.

             (c) The common or usual name of each ingredient used in the manufacture of the commercial feed, except as the department may, by regulation, permit the use of a collective term for a group of ingredients all of which perform the same function. An ingredient statement is not required for single standardized ingredient feeds which are officially defined.

             (((e))) (d) The name and principal mailing address of the person responsible for distributing the commercial feed.

             (e) Adequate directions for use for all commercial feeds containing drugs and for all such other commercial feeds as the department may require by rule as necessary for their safe and effective use.

             (f) Precautionary statements as the department by rule determines are necessary for the safe and effective use of the commercial feed.

             (g) The net weight as required under chapter 19.94 RCW.

             (2) When a commercial feed, except a customer-formula feed, is distributed in this state in bags or other containers, the label shall be placed on or affixed to the container; when a commercial feed, except a customer-formula feed, is distributed in bulk the label shall accompany delivery and be furnished to the purchaser at time of delivery.

             (3) A customer-formula feed shall be labeled by ((invoice)) shipping document. The ((invoice)) shipping document, which is to accompany delivery and be supplied to the purchaser at the time of delivery, shall bear the following information:

             (a) Name and address of the ((mixer)) manufacturer;

             (b) Name and address of the purchaser;

             (c) Date of ((sale; and)) delivery;

             (d) ((Brand name and number of pounds of each registered commercial feed used in the mixture and the name and number of pounds of each other feed ingredient added.

             (4) If a commercial feed contains a nonnutritive substance which is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or which is intended to affect the structure or any function of the animal body, the department may require the label to show the amount present, directions for use, and/or warnings against misuse of the feed.

             (5) A customer-formula feed shall be considered to be in violation of this chapter if it does not conform to the invoice labeling. Upon request of the department it shall be the duty of the person distributing the customer-formula feed to supply the department with a copy of the invoice which represents that particular feed: PROVIDED, That such person shall not be required to keep such invoice for a period of longer than six months)) Product name and the net weight as required under chapter 19.94 RCW;

             (e) Adequate directions for use for all customer-formula feeds containing drugs and for such other feeds as the department may require by rule as necessary for their safe and effective use;

             (f) The directions for use and precautionary statements as required by subsection (1) (e) and (f) of this section; and

             (g) If a drug containing product is used:

             (i) The purpose of the medication (claim statement);

             (ii) The established name of each active drug ingredient and the level of each drug used in the final mixture expressed in accordance with rules established by the department.

             (4) The product name and quantity statement of each commercial feed and each other ingredient used in the customer formula feed must be on file at the plant producing the product. These records must be kept on file for one year after the last sale. This information shall be made available to the purchaser, the dealer making the sale, and the department on request.


             Sec. 38. RCW 15.53.9018 and 1982 c 177 s 3 are each amended to read as follows:

             (1) ((On or after June 30, 1981,)) Except as provided in subsection (4) of this section, each initial distributor of a commercial feed in this state shall pay to the department an inspection fee on all commercial feed sold by such person during the year. The fee shall be not less than four cents nor more than ((fourteen)) twelve cents per ton as prescribed by the director by rule: PROVIDED, That such fees shall be used for routine enforcement ((of RCW 15.53.9022 and for analysis for contaminants only when the department has reasonable cause to believe any lot of feed or any feed ingredient is adulterated)) and administration of this chapter and rules adopted under this chapter.

             (2) ((In computing the tonnage on which the inspection fee must be paid, sales of: (a) Commercial feed to other feed registrants;)) An inspection fee is not required for: (a) Commercial feed distributed by a person having proof that inspection fees have been paid by his or her supplier (manufacturer); (b) commercial feed in packages weighing less than ten pounds; (c) commercial feed for shipment to points outside this state; (d) food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants; and (e) ((unmixed seed, whole or processed, made directly from the entire seed; (f) unground hay, straw, stover, silage, cobs, husks, and hulls, when not mixed with other material; and (g))) bona fide experimental feeds on which accurate records and experimental programs are maintained ((may be excluded. The exemption for byproducts provided by this subsection does not apply to byproducts or products of sugar refineries or to materials used in the preparation of pet foods)).

             (3) Tonnage will be reported and inspection fees will be paid on (a) byproducts or products of sugar refineries; (b) materials used in the preparation of pet foods and specialty pet food.

             (4) When more than one distributor is involved in the distribution of a commercial feed, the ((last registrant or)) initial distributor ((who distributes to a nonregistrant (dealer or consumer))) is responsible for reporting the tonnage and paying the inspection fee, unless ((the reporting and paying of fees have been made by a prior distributor of the feed)) this sale or transaction is made to an exempt buyer.

             (((4))) (5) Each person made responsible by this chapter for the payment of inspection fees for commercial feed sold in this state shall file a report with the department on January 1st and July 1st of each year showing the number of tons of such commercial feed sold during the six calendar months immediately preceding the date the report is due. The proper inspection fee shall be remitted with the report. The person required to file the report and pay the fee shall have a thirty-day period of grace immediately following the day the report and payment are due to file the report, and pay the fee. Upon permission of the department, an annual statement under oath may be filed by any person distributing within the state less than one hundred tons for each six-month period during any year, and upon filing such statement such person shall pay the inspection fee at the rate provided for in subsection (1) of this section. The minimum inspection fee shall be twelve dollars and fifty cents for each six-month reporting period or twenty-five dollars if reporting annually.

             (((5) Each distributor shall keep such reasonable and practical records as may be necessary or required by the department to indicate accurately the tonnage of commercial feed distributed in this state, and the department has the right to examine such records to verify statements of tonnage. Failure to make an accurate statement of tonnage or to pay the inspection fee or comply as provided herein constitutes a violation of this chapter, and may result in the issuance of an order for "withdrawal from distribution" on any commercial feed being subsequently distributed.

             (6) Inspection fees which are due and owing and have not been remitted to the department within thirty days following the due date shall have a collection fee of ten percent, but not less than ten dollars, added to the amount due when payment is finally made. The assessment of this collection fee shall not prevent the department from taking other actions as provided for in this chapter.

             (7))) (6) For the purpose of determining accurate tonnage of commercial feed distributed in this state or to identify or verify semiannual tonnage reports, the department may require each registrant or licensee, or both, to maintain records or file additional reports.

             (7) The department may examine at reasonable times the records maintained under this section. Records shall be maintained in usable condition by the registrant or licensee for a period of two years unless by rule this retention period is extended.

             (8) The registrant or licensee shall maintain records required under this section and submit these records to the department upon request.

             (9) Any person responsible for reporting tonnage or paying inspection fees who fails to do so before the thirty-first day following the last day of each reporting period, shall pay a penalty equal to fifteen percent of the inspection fee due or fifty dollars, whichever is greater. The penalty, together with any delinquent inspection fee is due before the forty-first day following the last day of each reporting period. The department may cancel registration of a registrant or may revoke a license of a licensee who fails to pay the penalty and delinquent inspection fees within that time period. The applicant or licensee may request a hearing as authorized under chapter 34.05 RCW.

             (10) The report required by subsection (((4))) (5) of this section shall not be a public record, and it is a misdemeanor for any person to divulge any information given in such report which would reveal the business operation of the person making the report: PROVIDED, That nothing contained in this subsection shall be construed to prevent or make unlawful the use of information concerning the business operation of a person if any action, suit, or proceeding instituted under the authority of this chapter, including any civil action for collection of unpaid inspection fees, which action is hereby authorized and which shall be as an action at law in the name of the director of the department.

             (((8))) (11) Any commercial feed purchased by a consumer or contract feeder outside the jurisdiction of this state and brought into this state for use is subject to all the provisions of this chapter, including inspection fees.


             Sec. 39. RCW 15.53.902 and 1982 c 177 s 4 are each amended to read as follows:

             It is unlawful for any person to distribute an adulterated feed. A commercial feed is deemed to be adulterated:

             (1) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such commercial feed shall not be considered adulterated under this subsection if the quantity of such substance in such commercial feed does not ordinarily render it injurious to health; or

             (2) If it bears or contains any added poisonous, added deleterious, or added nonnutritive substance which is unsafe within the meaning of section 406 of the Federal Food, Drug, and Cosmetic Act (other than one which is (a) a pesticide chemical in or on a raw agricultural commodity; or (b) a food additive); or

             (3) If it is, or it bears, or contains any food additive which is unsafe within the meaning of section 409 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 348); or

             (4) If it is a raw agricultural commodity and it bears or contains a pesticide chemical which is unsafe within the meaning of section 408(a) of the Federal Food, Drug, and Cosmetic Act: PROVIDED, That where a pesticide chemical has been used in or on a raw agricultural commodity in conformity with an exemption granted or a tolerance prescribed under section 408 of the Federal Food, Drug, and Cosmetic Act and such raw agricultural commodity has been subjected to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of such pesticide chemical remaining in or on such processed feed shall not be deemed unsafe if such residue in or on the raw agricultural commodity has been removed to the extent possible in good manufacturing practice and the concentration of such residue in the processed feed is not greater than the tolerance prescribed for the raw agricultural commodity unless the feeding of such processed feed will result or is likely to result in a pesticide residue in the edible product of the animal, which is unsafe within the meaning of section 408(a) of the Federal Food, Drug, and Cosmetic Act; or

             (5) If it is, or it bears or contains any color additive which is unsafe within the meaning of section 706 of the Federal Food, Drug, and Cosmetic Act; or

             (6) If it is, or it bears or contains any new animal drug that is unsafe within the meaning of section 512 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 360b); or

             (7) If any valuable constituent has been in whole or in part omitted or abstracted therefrom or any less valuable substance substituted therefor; or

             (((7))) (8) If its composition or quality falls below or differs from that which it is purported or is represented to possess by its labeling; or

             (((8))) (9) If it contains a drug and the methods used in or the facilities or controls used for its manufacture, processing, or packaging do not conform to current good manufacturing practice rules adopted by the department to assure that the drug meets the requirements of this chapter as to safety and has the identity and strength and meets the quality and purity characteristics that it purports or is represented to possess. In adopting such rules, the department shall adopt the current good manufacturing practice regulations for type A medicated articles and type B and type C medicated feeds established under authority of the Federal Food, Drug, and Cosmetic Act, unless the department determines that they are not appropriate to the conditions that exist in this state; or

             (10) If it contains viable, prohibited (primary) noxious weed seeds in excess of one per pound, or if it contains viable, restricted (secondary) noxious weed seeds in excess of twenty-five per pound. The primary and secondary noxious weed seeds shall be those as named pursuant to the provisions of chapter 15.49 RCW ((as enacted or hereafter amended)) and rules adopted thereunder.


             Sec. 40. RCW 15.53.9022 and 1965 ex.s. c 31 s 8 are each amended to read as follows:

             It shall be unlawful for any person to distribute misbranded feed. A commercial feed shall be deemed to be misbranded:

             (1) If its labeling is false or misleading in any particular;

             (2) If it is distributed under the name of another commercial feed;

             (3) If it is not labeled as required in RCW 15.53.9016 and in ((regulations)) rules prescribed under this chapter;

             (4) If it purports to be or is represented as a commercial feed ((ingredient)), or if it purports to contain or is represented as containing a commercial feed or feed ingredient, unless such commercial feed or feed ingredient conforms to the definition of identity, if any, prescribed by ((regulation)) rule of the department. In the adopting of such ((regulations)) rules the department may consider commonly accepted definitions such as those issued by nationally recognized associations or groups of feed control officials;

             (5) If any word, statement, or other information required by or under authority of this chapter to appear on the label or labeling is not prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or devices, in the labeling) and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;

             (6) If its composition or quality falls below or differs from that which it is purported or is represented to possess by its labeling.


             Sec. 41. RCW 15.53.9024 and 1965 ex.s. c 31 s 9 are each amended to read as follows:

             (1) ((It shall be the duty of the department to sample, inspect, make analysis of, and test commercial feed distributed within this state at such time and place and to such an extent as it may deem necessary to determine whether such feeds are in compliance with the provisions of this chapter. The department is authorized to stop any commercial vehicle transporting feed on the public highways and direct it to the nearest scales approved by the department to check weights of feeds being delivered. The department is also authorized, upon presentation of proper identification, to enter any distributor's premises including any vehicle of transport at all reasonable times in order to have access to commercial feed and to records relating to their distribution. This includes the determining of the weight of packages and bulk shipments.

             (2) The methods of sampling and analysis shall be those adopted by the department from officially recognized sources.

             (3))) For the purpose of enforcement of this chapter, and in order to determine whether its provisions have been complied with, including whether an operation is subject to such provisions, inspectors duly designated by the director, upon presenting appropriate credentials, and a written notice to the owner, operator, or agent in charge, are authorized (a) to enter, during normal business hours, a factory, warehouse, or establishment within the state in which commercial feeds are manufactured, processed, packed, or held for distribution, or to enter a vehicle being used to transport or hold such feeds; and (b) to inspect at reasonable times and within reasonable limits and in a reasonable manner, such factory, warehouse, establishment, or vehicle and all pertinent equipment, finished and unfinished materials, containers, and labeling. The inspection may include the verification of only such records, and production and control procedures as may be necessary to determine compliance with the current good manufacturing practice regulations established under RCW 15.53.902(9) and rules adopted under good manufacturing practices for feeds to include nonmedicated feeds.

             (2) A separate notice shall be given for each such inspection, but a notice is not required for each entry made during the period covered by the inspection. Each such inspection shall be commenced and completed with reasonable promptness. Upon completion of the inspection, the person in charge of the facility or vehicle shall be so notified.

             (3) If the inspector or employee making such inspection of a factory, warehouse, or other establishment has obtained a sample in the course of the inspection, upon completion of the inspection and prior to leaving the premises, he or she shall give to the owner, operator, or agent in charge, a receipt describing the samples obtained.

             (4) If the owner of a factory, warehouse, or establishment described in subsection (1) of this section, or his or her agent, refuses to admit the director or his or her agent to inspect in accordance with subsections (1) and (2) of this section, the director or his or her agent is authorized to obtain from any court of competent jurisdiction a warrant directing such owner or his or her agent to submit the premises described in the warrant to inspection.

             (5) For the enforcement of this chapter, the director or his or her duly assigned agent is authorized to enter upon any public or private premises including any vehicle of transport during regular business hours to have access to, and to obtain samples, and to examine records relating to distribution of commercial feeds.

             (6) Sampling and analysis shall be conducted in accordance with methods published by the association of official analytical chemists, or in accordance with other generally recognized methods.

             (7) The results of all analyses of official samples shall be forwarded by the department to the person named on the label and to the purchaser, if known. If the inspection and analysis of an official sample indicates a commercial feed has been adulterated or misbranded and upon request within thirty days following the receipt of the analysis, the department shall furnish to the registrant or licensee a portion of the sample concerned. If referee analysis is requested, a portion of the official sample shall be furnished by the department and shall be sent directly to an independent lab agreed to by all parties.

             (8) The department, in determining for administrative purposes whether a feed is deficient in any component, shall be guided solely by the official sample as defined in RCW 15.53.901(((13))) (20) and obtained and analyzed as provided for in this section.

             (((4) When the inspection and analysis of an official sample has been made the results of analysis shall be forwarded by the department to the distributor and to the purchaser if known. Upon request and within thirty days the department shall furnish to the distributor a portion of the sample concerned.

             (5))) (9) Analysis of an official sample by the department shall be accepted as prima facie evidence by any court of competent jurisdiction.


             Sec. 42. RCW 15.53.9038 and 1982 c 177 s 5 are each amended to read as follows:

             (1) When the department has reasonable cause to believe that any lot of commercial feed is adulterated or misbranded or is being distributed in violation of this chapter or any ((regulations)) rules hereunder it may issue and enforce a written or printed "withdrawal from distribution" order, or "stop sale" order, warning the distributor not to dispose of the lot of feed in any manner until written permission is given by the department ((or a court of competent jurisdiction)). The department shall release the lot of commercial feed so withdrawn when the provisions and ((regulations)) rules have been complied with. If compliance is not obtained within thirty days, parties may agree to an alternative disposition in writing or the department may ((begin)) institute condemnation proceedings ((for condemnation)) in a court of competent jurisdiction.

             (2) Any lot of commercial feed not in compliance with the provisions and ((regulations)) rules is subject to seizure on complaint of the department to a court of competent jurisdiction in the area in which the commercial feed is located. If the court finds the commercial feed to be in violation of this chapter and orders the condemnation of the commercial feed, it shall be disposed of in any manner consistent with the quality of the commercial feed and the laws of the state. The court shall first give the claimant an opportunity to apply to the court for release of the commercial feed or for permission to process or relabel the commercial feed to bring it into compliance with this chapter.


             Sec. 43. RCW 15.53.9042 and 1965 ex.s. c 31 s 18 are each amended to read as follows:

             The department shall publish at least annually, in such forms as it may deem proper, information concerning the distribution of commercial feed, together with such data on their production and use as it may consider advisable, and a report of the results of the analyses of official samples of commercial feed within the state as compared with the analyses guaranteed ((in the registration and)) on the label or as calculated from the invoice data for customer-formula feeds: PROVIDED, That the information concerning production and use of commercial feeds shall not disclose the operations of any person.


             Sec. 44. RCW 15.53.9053 and 1975 1st ex.s. c 257 s 12 are each amended to read as follows:

             (((1) The following acts or parts of acts are each repealed:

             (a) Section 10, chapter 31, Laws of 1965 ex. sess., section 33, chapter 240, Laws of 1967 and RCW 15.53.9026; and

             (b) Sections 11 through 14, chapter 31, Laws of 1965 ex. sess. and RCW 15.53.9028 through 15.53.9034.

             (2) The enactment of this act and the repeal of the sections listed in subsection (1) of this section shall not have the effect of terminating, or in any way modify any liability, civil or criminal, which shall already be in existence on July 1, 1975.

             (3))) All licenses and registrations in effect on July 1, ((1975)) 1995, shall continue in full force and effect until their regular expiration date, December 31, ((1975)) 1995. No registration or license that has already been paid under the requirements of prior law shall be refunded.


             NEW SECTION. Sec. 45. (1) The following acts or parts of acts are each repealed:

             (a) Section 10, chapter 31, Laws of 1965 ex. sess., section 33, chapter 240, Laws of 1967 and RCW 15.53.9026; and

             (b) Sections 11 through 14, chapter 31, Laws of 1965 ex. sess. and RCW 15.53.9028 through 15.53.9034.

             (2) The enactment of chapter 257, Laws of 1975 1st ex. sess. and the repeal of the sections listed in subsection (1) of this section shall not have the effect of terminating, or in any way modify any liability, civil or criminal, which shall already be in existence on July 1, 1975.


             NEW SECTION. Sec. 46. RCW 15.53.9036 and 1989 c 175 s 51, 1975 1st ex.s. c 257 s 6, & 1965 ex.s. c 31 s 15 are each repealed.


             NEW SECTION. Sec. 47. RCW 15.53.905 and 15.53.9052 are each decodified.


             Sec. 48. RCW 16.58.130 and 1994 c 46 s 15 are each amended to read as follows:

             Each licensee shall pay to the director a fee of no ((less)) more than ten cents ((but no more than fifteen cents)) for each head of cattle handled through the licensee's feed lot. The fee shall be set by the director by rule after a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Payment of such fee shall be made by the licensee on a monthly basis. Failure to pay as required shall be grounds for suspension or revocation of a certified feed lot license. Further, the director shall not renew a certified feed lot license if a licensee has failed to make prompt and timely payments.

             This section shall expire June 30, 1997.


             NEW SECTION. Sec. 49. 1994 c 46 s 24 is repealed.


             Sec. 50. 1994 c 46 s 29 (uncodified) is amended to read as follows:

             Sections 21 through 23 and 25 of this act shall take effect July 1, 1997.


             Sec. 51. RCW 16.57.220 and 1994 c 46 s 19 are each amended to read as follows:

             The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Except as provided by rule, such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection shall be not less than fifty cents nor more than seventy-five cents per head for cattle and not less than two dollars nor more than three dollars per head for horses as prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Fees for brand inspection of cattle and horses ((performed by the director)) at points other than those designated by the director or not in accord with the schedules established by the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.


             Sec. 52. RCW 16.57.220 and 1994 c 46 s 25 and 1994 c 46 s 19 are each reenacted and amended to read as follows:

             The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Except as provided by rule, such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection performed at inspection points according to schedules established by the director shall be sixty cents per head for cattle and not more than two dollars and forty cents per head for horses as prescribed by the director subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Fees for brand inspection of cattle and horses ((performed by the director)) at points other than those designated by the director or not in accord with the schedules established by the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.


             Sec. 53. RCW 16.57.230 and 1959 c 54 s 23 are each amended to read as follows:

             No person shall collect or make a charge for brand inspection of livestock unless there has been an actual brand inspection of such livestock ((by the director)).


             Sec. 54. RCW 16.57.240 and 1991 c 110 s 4 are each amended to read as follows:

             Any person purchasing, selling, holding for sale, trading, bartering, transferring title, slaughtering, handling, or transporting cattle shall keep a record on forms prescribed by the director. Such forms shall show the number, specie, brand or other method of identification of such cattle and any other necessary information required by the director. The original shall be kept for a period of three years or shall be furnished to the director upon demand or as prescribed by rule, one copy shall accompany the cattle to their destination and shall be subject to inspection at any time by the director or any peace officer or member of the state patrol: PROVIDED, That in the following instances only, cattle may be moved or transported within this state without being accompanied by ((a)) an official certificate of permit ((or an official)), brand inspection certificate ((or)), bill of sale, or self-inspection slip:

             (1) When such cattle are moved or transported upon lands under the exclusive control of the person moving or transporting such cattle;

             (2) When such cattle are being moved or transported for temporary grazing or feeding purposes and have the registered brand of the person having or transporting such cattle.


             Sec. 55. RCW 16.57.280 and 1991 c 110 s 5 are each amended to read as follows:

             No person shall knowingly have unlawful possession of any livestock marked with a recorded brand or tattoo of another person unless:

             (1) Such livestock lawfully bears the person's own healed recorded brand((,)); or

             (2) Such livestock is accompanied by a certificate of permit from the owner of the recorded brand or tattoo((,)); or

             (3) Such livestock is accompanied by a brand inspection certificate((,)); or

             (4) Such cattle is accompanied by a self-inspection slip; or

             (5) Such livestock is accompanied by a bill of sale from the previous owner or other satisfactory proof of ownership.

             A violation of this section constitutes a gross misdemeanor punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.


             Sec. 56. RCW 16.57.290 and 1989 c 286 s 23 are each amended to read as follows:

             All unbranded cattle and horses and those bearing brands not recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit, and those bearing brands recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit signed by the owner of the brand when presented for inspection by the director, shall be sold by the director or the director's representative, unless other satisfactory proof of ownership is presented showing the person presenting them to be lawfully in possession. Upon the sale of such cattle or horses, the director or the director's representative shall give the purchasers a bill of sale therefor, or, if theft is suspected, the cattle or horses may be impounded by the director or the director's representative.


             Sec. 57. RCW 16.65.030 and 1994 c 46 s 12 are each amended to read as follows:

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

             (a) A nonrefundable original license application fee of fifteen hundred dollars.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

             The fees for public livestock market licensees shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

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

             (5) Upon the approval of the application by the director and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof. Any license issued under the provisions of this chapter shall only be valid at location and for the sales day or days for which the license was issued)) Applications for renewal under RCW 16.65.040 shall include all information under subsection (1) of this section, except subsection (1)(a) of this section.


             NEW SECTION. Sec. 58. 1994 c 46 s 21 is repealed.


             NEW SECTION. Sec. 59. A new section is added to chapter 16.65 RCW to read as follows:

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

             (2) The license fee shall be based on the average gross sales volume per official sales day of that market:

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

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

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

             The fees for public livestock market licenses shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

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


             NEW SECTION. Sec. 60. A new section is added to chapter 16.65 RCW to read as follows:

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

             (2) The license fee shall be based on the average gross sales volume per official sales day of that market:

             (a) Markets with an average gross sales volume up to and including ten thousand dollars, a one hundred twenty dollar fee;

             (b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a two hundred forty dollar fee; and

             (c) Markets with an average gross sales volume over fifty thousand dollars, a three hundred sixty dollar fee.

             The fees for public market licenses shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

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


             NEW SECTION. Sec. 61. (1) Sections 52 and 60 of this act shall take effect July 1, 1997.

             (2) Sections 51 and 59 of this act shall expire July 1, 1997.


             Sec. 62. RCW 15.44.033 and 1967 c 240 s 30 are each amended to read as follows:

             Producer members of the commission shall be nominated and elected by producers within the district that such producer members represent in the year in which a commission member's term shall expire. Such producer members receiving the largest number of the votes cast in the respective districts which they represent shall be elected. The election shall be by secret mail ballot and under the supervision of the director.

             Nomination for candidates to be elected to the commission shall be conducted by mail by the director. Such nomination forms shall be mailed by the director to each producer in a district where a vacancy is about to occur. Such mailing shall be made on or after April 1st, but not later than April 10th of the year the commission vacancy will occur. The nomination form shall provide for the name of the producer being nominated and the names of five producers nominating such nominee. The producers nominating such nominee shall affix their signatures to such form and shall further attest that the said nominee meets the qualifications for a producer member to serve on the commission and that he or she will be willing to serve on the commission if elected.

             All nominations as provided for herein shall be returned to the director by April 30th, and the director shall not accept any nomination postmarked later than midnight April 30th, nor place the candidate thereon on the election ballot.

             Ballots for electing members to the commission will be mailed by the director to all eligible producers no later than May 15th, in districts where elections are to be held and such ballots to be valid shall be returned postmarked no later than May 31st of the year mailed, to the director in Olympia.

             ((Whenever producers fail to file any nominating petitions, the director shall nominate at least two, but not more than three, qualified producers and place their names on the secret mail election ballot as nominees: PROVIDED, That any qualified producer may be elected by a write-in ballot, even though said producer's name was not placed in nomination for such election.)) If only one person is nominated for a position on the commission, the director shall determine whether the person possesses the qualifications required by statute for the position and, if the director determines that the person possesses such qualifications, the director shall declare that the person has been duly elected.


             Sec. 63. RCW 43.88.240 and 1981 c 225 s 3 are each amended to read as follows:

             Unless otherwise directed in the commodity commission enabling statute, this chapter shall not apply to the Washington state ((apple advertising commission, the Washington state fruit commission, the Washington tree fruit research commission, the Washington state beef commission, the Washington state dairy products commission, or any agricultural)) commodity commissions created either under separate statute or under the provisions of chapters 15.65 and 15.66 RCW: PROVIDED, That all such commissions shall submit estimates and such other necessary information as may be required for the development of the budget and shall also be subject to audit by the appropriate state auditing agency or officer.


             NEW SECTION. Sec. 64. A new section is added to chapter 43.23 RCW to read as follows:

             For purposes of this chapter:

             (1) "Department" means department of agriculture;

             (2) "Person" means any individual, partnership, association, corporation, or organized group of persons whether or not incorporated.


             NEW SECTION. Sec. 65. A new section is added to chapter 43.23 RCW to read as follows:

             Except as otherwise specified by law, the director or his or her designee has the authority to retain collection agencies licensed under chapter 19.16 RCW for the purposes of collecting unpaid penalties, assessments, and other debts owed to the department.

             The director or his or her designee may also collect as costs moneys paid to the collection agency as charges, or in the case of credit cards or financial instruments, such as checks returned for nonpayment, moneys paid to financial institutions.


             NEW SECTION. Sec. 66. A new section is added to chapter 43.23 RCW to read as follows:

             Except as otherwise specified by law, any due and payable assessment levied under the authority of the director or his or her designee in such specified amount as may be determined by the department shall constitute a personal debt of every person so assessed or who otherwise owes the same, and the same shall be due and payable to the department when payment is called for by the department. In the event any person fails to pay the department the full amount of such assessment or such other sum on or before the date due, the department may, and is hereby authorized to, add to such unpaid assessment or other sum an amount not exceeding ten percent of the same to defray the cost of enforcing the collecting of the same. In the event of failure of such person or persons to pay any such due and payable assessment or other sum, the department may bring a civil action against such person or persons in a court of competent jurisdiction for the collections thereof, including all costs and reasonable attorneys' fees together with the above specified ten percent, and such action shall be tried and judgment rendered as in any other cause of action for debt due and payable.


             NEW SECTION. Sec. 67. A new section is added to chapter 43.23 RCW to read as follows:

             Except as otherwise specified by law, the department is authorized to charge interest at the rate authorized under RCW 43.17.240 for all unpaid balances for moneys owed to the department.


             NEW SECTION. Sec. 68. A new section is added to chapter 43.23 RCW to read as follows:

             Except as otherwise specified by law, in the event a check or negotiable instrument as defined by RCW 62A.3-104 is dishonored by nonacceptance or nonpayment, the department is entitled to collect a reasonable handling fee for each instrument. If the check or instrument is not paid within fifteen days and proper notice is sent, the department is authorized to recover the assessment, the handling fee, and any other charges allowed by RCW 62A.3-515.


             Sec. 69. RCW 15.58.070 and 1994 c 46 s 1 are each amended to read as follows:

             (1) Except as provided in subsection (((2))) (4) of this section, any person desiring to register a pesticide with the department shall pay to the director an annual registration fee for each pesticide registered by the department for such person. The registration fee for the registration of pesticides for any one person during a calendar year shall be: One hundred five dollars for each of the first twenty-five pesticides registered; one hundred dollars for each of the twenty-sixth through one-hundredth pesticides registered; seventy-five dollars for each of the one hundred first through one hundred fiftieth pesticides registered; and fifty dollars for each additional pesticide registered. In addition, the department may establish by rule a registration fee not to exceed ten dollars for each registered product labeled and intended for home and garden use only.

             (2) The revenue generated by the pesticide registration fees shall be deposited in the agricultural local fund to support the activities of the pesticide program within the department. The revenue generated by the home and garden use only fees shall be deposited in the agriculture—local fund, to be used to assist in funding activities of the pesticide incident reporting and tracking review panel.

             (3) All pesticide registrations expire on December 31st of each year. A registrant may elect to register a pesticide for a two-year period by prepaying for a second year at the time of registration.

             (((2))) (4) A person desiring to register a label where a special local need exists shall pay to the director a nonrefundable application fee of two hundred dollars upon submission of the registration request. In addition, a person desiring to renew an approved special local need registration shall pay to the director an annual registration fee of two hundred dollars for each special local needs label registered by the department for such person. The revenue generated by the special local needs application fees and the special local needs renewal fees shall be deposited in the agricultural local fund to be used to assist in funding the department's special local needs registration activities. All special local needs registrations expire on December 31st of each year.

             (((3))) (5) Any registration approved by the director and in effect on the 31st day of December for which a renewal application has been made and the proper fee paid, continues in full force and effect until the director notifies the applicant that the registration has been renewed, or otherwise denied in accord with the provision of RCW 15.58.110.


             NEW SECTION. Sec. 70. A new section is added to chapter 15.58 RCW to read as follows:

             All license fees collected under this chapter shall be paid to the director for use exclusively in the enforcement of this chapter.


             NEW SECTION. Sec. 71. RCW 15.58.410 and 1971 ex.s. c 190 s 41 are each repealed.


             Sec. 72. RCW 16.24.130 and 1975 1st ex.s. c 7 s 16 are each amended to read as follows:

             The brand inspector shall cause to be published once in a newspaper published in the county where the animal was found, a notice of the impounding.

             The notice shall state:

             (1) A description of the animal, including brand, tattoo or other identifying characteristics;

             (2) When and where found;

             (3) Where impounded; and

             (4) That if unclaimed, the animal will be sold at a public livestock market sale or other public sale, and the date of such sale: PROVIDED, That if no newspaper shall be published in such county, copies of the notice shall be posted at four commonly frequented places therein.

             If the animal is marked with a brand or tattoo which is registered with the director of agriculture, the brand inspector, on or before the date of publication or posting, shall send a copy of the notice to the owner of record by registered mail.


             Sec. 73. RCW 16.24.150 and 1975 1st ex.s. c 7 s 17 are each amended to read as follows:

             If no person shall claim the animal within ten days after the date of publication or posting of the notice, it shall be sold at the next succeeding public livestock market sale to be held at the sales yard where impounded, provided that in the director's discretion the department of agriculture may otherwise cause the animal to be sold at public sale.

             The legislature intends this to be a clarification of existing law; therefore, this section shall have retroactive effect as of December 1, 1994.


             Sec. 74. RCW 15.76.140 and 1965 ex.s. c 32 s 1 are each amended to read as follows:

             (1) Before any agricultural fair may become eligible for state allocations it must have conducted two successful consecutive annual fairs immediately preceding application for such allocations, and have its application therefor approved by the director.

             (2) Beginning January 1,1994, and until June 30, 1997, the director may waive this requirement for an agricultural fair that through itself or its predecessor sponsoring organization has successfully operated at least two years as a county fair, has received a funding allocation as a county fair under this act for those two years, and that reorganizes as an area fair.


             NEW SECTION. Sec. 75. Sections 8 through 19 of this act shall constitute a new chapter in Title 69 RCW.


             NEW SECTION. Sec. 76. Section 48 of this act takes effect January 1, 1996.


             NEW SECTION. Sec. 77. Sections 1 through 47, 53 through 56, and 62 through 71 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 June 30, 1995.


             NEW SECTION. Sec. 78. Sections 72 and 73 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 "marketing;" strike the remainder of the title and insert "amending RCW 15.36.012, 15.36.071, 15.36.171, 15.36.221, 15.36.411, 15.36.441, 69.07.100, 69.07.085, 69.25.020, 69.25.050, 69.25.150, 69.25.170, 69.25.250, 69.25.310, 69.25.320, 15.53.901, 15.53.9012, 15.53.9014, 15.53.9016, 15.53.9018, 15.53.902, 15.53.9022, 15.53.9024, 15.53.9038, 15.53.9042, 15.53.9053, 16.58.130, 16.57.220, 16.57.230, 16.57.240, 16.57.280, 16.57.290, 16.65.030, 15.44.033, 43.88.240, 15.58.070, 16.24.130, 16.24.150, and 15.76.140; amending 1994 c 46 s 29 (uncodified); reenacting and amending RCW 69.07.040 and 16.57.220; reenacting RCW 15.36.431; adding a new section to chapter 69.04 RCW; adding a new section to chapter 15.53 RCW; adding new sections to chapter 16.65 RCW; adding new sections to chapter 43.23 RCW; adding a new section to chapter 15.58 RCW; adding a new chapter to Title 69 RCW; decodifying RCW 15.53.905 and 15.53.9052; repealing RCW 69.08.010, 69.08.020, 69.08.030, 69.08.040, 69.08.045, 69.08.050, 69.08.060, 69.08.070, 69.08.080, 69.08.090, 69.25.330, 69.25.340, 15.53.9036, and 15.58.410; repealing 1994 c 46 s 24; repealing 1994 c 46 s 21; prescribing penalties; providing effective dates; providing an expiration date; and declaring an emergency."


             Representative McMorris moved adoption of the following amendment to the amendment by Representative McMorris:


             On page 8, beginning on line 10 of the amendment, strike "shall make annual inspections of each food storage warehouse" and insert "may inspect food storage warehouses"


             On page 8, line 12 of the amendment, after "69.04 RCW" strike all material through "department" on line 14


             Representative McMorris spoke in favor of the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representative Sheahan moved adoption of the following amendment to the amendment by Representative Sheahan:


             On page 42, beginning on line 32 of the amendment, strike all of sections 48, 49, and 50


             On page 55, beginning on line 3 of the amendment, strike all of section 76


             Renumber remaining sections consecutively, correct internal references and correct the title accordingly.


             Representatives Sheahan, Schoesler and Lisk spoke in favor of the adoption of the amendment to the amendment.


             Representatives Chandler and Mastin spoke against the adoption of the amendment to the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 837 to Substitute Senate Bill No. 5315 was withdrawn.


             Representative Schoesler moved adoption of the following amendment to the amendment by Representative Schoesler:


             On page 54, after line 37 of the amendment, insert the following:


             "NEW SECTION. Sec. 75. The legislature finds that in Washington, the loss of state lands from productive use due to infestation by noxious weeds is a major public concern.

             It is the intent of the legislature that serious and fundamental policy direction be given to state agencies to:

             (1) Ensure that state lands set an example of excellence in noxious weed control and eradication on state lands;

             (2) Halt the spread of noxious weeds from state to private lands;

             (3) Recognize that state agencies are ultimately responsible for noxious weed control on state land, regardless of type, timing, or amount of use;

             (4) Recognize that the public is not well served by the spread of noxious weeds on state lands, in part, because of the decrease in wildlife habitat and loss of land productivity.

             The legislature further finds that biological control agents represent one of the only cost-effective control measures for existing, widespread noxious weed infestations. Members of the genus Centaurea, commonly referred to as knapweeds, currently infest and destroy the productivity of hundreds of thousands of acres in Washington.


             NEW SECTION. Sec. 76. The state noxious weed control board shall develop a study to determine the cost of controlling weeds on state-owned or managed lands, included along state-owned rights of way. The board may conduct the study, or may contract with either public or private agencies to conduct and complete the study. The departments of natural resources, transportation, and fish and wildlife, and the parks and recreation commission shall cooperate with the weed board or the contractor in the study.

             As part of the study, the state noxious weed control board shall identify those weed species that are practical to control and should be controlled. The board shall also identify the impacts and estimate the costs of not controlling these weeds. The board may exclude from the study those weeds that, due to high cost or impracticality, cannot be controlled on private lands. The board shall develop a prioritized list of weeds that are practical to control and that should be controlled on state-owned and managed lands.


             NEW SECTION. Sec. 77. The state noxious weed control board shall study alternative funding mechanisms for Washington's noxious weed control program. The departments of natural resources, transportation, and fish and wildlife, and the parks and recreation commission shall cooperate with the weed board in the study. As part of the study, the state noxious weed control board shall identify the impacts and costs of each alternative. Funding alternatives shall address weed control needs of private citizens, local governments, county weed boards, state agencies, the state noxious weed control board, and federal agencies.


             NEW SECTION. Sec. 78. A new section is added to chapter 17.10 RCW to read as follows:

             All state agencies shall control noxious weeds on lands they own, lease, or otherwise control. Agencies shall develop plans to control noxious weeds in accordance with standards in this chapter. All state agencies' lands must comply with this chapter, regardless of noxious weed control efforts on adjacent lands. County noxious weed control boards shall assist landowners to meet and exceed the standards on state lands.


             NEW SECTION. Sec. 79. (1) The standing committee on agriculture and agricultural trade and development of the senate and the standing committee on agriculture and ecology of the house of representatives shall jointly study land leasing practices of state agencies in regard to weed control and report their findings to the legislature in 1996.

             (2) State agencies shall list noxious weed control projects in their respective jurisdictions in order of priority, along with their plans to control these infestations, and shall submit the lists and plans to the legislative committees identified in subsection (1) of this section before the beginning of the 1996 regular session of the legislature.


             Sec. 80. RCW 17.10.240 and 1987 c 438 s 31 are each amended to read as follows:

             The activated county noxious weed control board of each county shall annually submit a budget to the county legislative authority for the operating cost of the county's weed program for the ensuing fiscal year: PROVIDED, That if the board finds the budget approved by the legislative authority is insufficient for an effective county noxious weed control program it shall petition the county legislative authority to hold a hearing as provided in RCW 17.10.890. Control of weeds is a special benefit to the lands within any such section. Funding for the budget shall be derived from ((either or both)) any or all of the following:

             (1) The county legislative authority may, in lieu of a tax, levy an assessment against the land for this purpose. Prior to the levying of an assessment the county noxious weed control board shall hold a public hearing at which it shall gather information to serve as a basis for classification and shall then classify the lands into suitable classifications, including but not limited to dry lands, range lands, irrigated lands, nonuse lands, forest lands, or federal lands. The board shall develop and forward to the county legislative authority, as a proposed level of assessment for each class, such an amount as shall seem just. The assessment rate shall be either uniform per acre in its respective class or a flat rate per parcel rate plus a uniform rate per acre: PROVIDED, That if no special benefits should be found to accrue to a class of land, a zero assessment may be levied. The legislative authority, upon receipt of the proposed levels of assessment from the board, after a hearing, shall accept, modify, or refer back to the board for its reconsideration all or any portion of the proposed levels of assessment. The findings by the county legislative authority of such special benefits, when so declared by resolution and spread upon the minutes of said authority shall be conclusive as to whether or not the same constitutes a special benefit to the lands within the section. The amount of such assessment shall constitute a lien against the property. The county legislative authority may by resolution or ordinance require that notice of the lien be sent to each owner of property for which the assessment has not been paid by the date it was due and that each such lien created shall be collected by the treasurer in the same manner as delinquent real property tax, if within thirty days from the date the owner is sent notice of the lien, including the amount thereof, the lien remains unpaid and an appeal has not been made pursuant to RCW 17.10.180. Liens treated as delinquent taxes shall bear interest at the rate of twelve percent per annum and such interest shall accrue as of the date notice of the lien is sent to the owner: PROVIDED FURTHER, That any collections for such lien shall not be considered as tax; or

             (2) The county legislative authority may appropriate money from the county general fund necessary for the administration of the county noxious weed control program. In addition the county legislative authority may make emergency appropriations as it deems necessary for the implementation of this chapter.

             (3) Forest lands used solely for the planting, growing, or harvesting of trees and which are typified, except during a single period of five years following clear-cut logging, by canopies so dense as to prohibit growth of an understory may be subject to an annual noxious weed assessment levied by a county legislative authority that shall not exceed one-tenth of the weighted average per acre noxious weed assessment levied on all other lands in unincorporated areas within the county that are subject to the weed assessment. This assessment shall be computed in accordance with the formula in subsection (4) of this section.

             (4) The calculation of the "weighted average per acre noxious weed assessment" shall be a ratio expressed as follows: (a) The numerator shall be the total amount of funds estimated to be collected from the per acre assessment on all lands except (i) forest lands as identified in subsection (3) of this section, (ii) lands exempt from the noxious weed assessment, and (iii) lands located in an incorporated area. (b) The denominator shall be the total acreage from which funds in (a) of this subsection are collected. For lands of less than one acre in size, the denominator calculation may be based on the following assumptions: (i) Unimproved lands shall be calculated as being one-half acre in size on the average, and (ii) improved lands shall be calculated as being one-third acre in size on the average. The county legislative authority may choose to calculate the denominator for lands of less than one acre in size using other assumptions about average parcel size based on local information.

             (5) For those counties that levy a per parcel assessment to help fund noxious weed control programs, the per parcel assessment on forest lands as defined in subsection (3) of this section shall not exceed one-tenth of the per parcel assessment on nonforest lands.


             NEW SECTION. Sec. 81. The sum of thirty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1997, to Washington State University for the use of the cooperative extension service in the selection, testing, and production of biological control agents for knapweed species on the state noxious weed list adopted under RCW 17.10.080, with the intent of improving field availability of these agents.


             NEW SECTION. Sec. 82. The sum of twenty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1997, to the state noxious weed control board to study, or contract for a study, on the cost of controlling weeds on state-owned or managed lands."


             On page 55, line 10 of the amendment, after "72" strike "and 73" and insert ", 73, and 75 through 82"


             On page 55, line 18 of the title amendment, after "insert" strike the remainder of the title amendment and insert "amending RCW 15.36.012, 15.36.071, 15.36.171, 15.36.221, 15.36.411, 15.36.441, 69.07.100, 69.07.085, 69.25.020, 69.25.050, 69.25.150, 69.25.170, 69.25.250, 69.25.310, 69.25.320, 15.53.901, 15.53.9012, 15.53.9014, 15.53.9016, 15.53.9018, 15.53.902, 15.53.9022, 15.53.9024, 15.53.9038, 15.53.9042, 15.53.9053, 16.58.130, 16.57.220, 16.57.230, 16.57.240, 16.57.280, 16.57.290, 16.65.030, 15.44.033, 43.88.240, 15.58.070, 16.24.130, 16.24.150, 15.76.140, and 17.10.240; amending 1994 c 46 s 29 (uncodified); reenacting and amending RCW 69.07.040 and 16.57.220; reenacting RCW 15.36.431; adding a new section to chapter 69.04 RCW; adding a new section to chapter 15.53 RCW; adding new sections to chapter 16.65 RCW; adding new sections to chapter 43.23 RCW; adding a new section to chapter 15.58 RCW; adding a new section to chapter 17.10 RCW; adding a new chapter to Title 69 RCW; creating new sections; decodifying RCW 15.53.905 and 15.53.9052; repealing RCW 69.08.010, 69.08.020, 69.08.030, 69.08.040, 69.08.045, 69.08.050, 69.08.060, 69.08.070, 69.08.080, 69.08.090, 69.25.330, 69.25.340, 15.53.9036, and 15.58.410; repealing 1994 c 46 s 24; repealing 1994 c 46 s 21; prescribing penalties; making appropriations; providing effective dates; providing an expiration date; and declaring an emergency."


             Representative Schoesler spoke in favor of the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representatives Chandler and Mastin spoke in favor of the adoption of the striking amendment.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Chandler spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 5315 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5315 as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 96.

             Excused: Representative Appelwick - 1.


             Substitute Senate Bill No. 5315, as amended by the House, having received the constitutional majority, was declared passed.


             ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5342, by Senate Committee on Ways & Means (originally sponsored by Senators Snyder, Swecker, Hargrove, Owen, Spanel and Rasmussen; by request of Governor Lowry)

 

Redefining the program to aid rural natural resources impact areas.


             The bill was read the second time.


             There being no objection, the committee amendment was moved. Committee on Appropriations recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, April 3, 1995.)


             Representative Silver moved adoption of the following amendment to the committee amendment by Representative Silver:


             On page 1 of the committee amendment, line 7, after "June 30," strike "1997" and insert "1998"


             Representative Silver spoke in favor of the adoption of the amendment to the committee amendment.


             The amendment to the committee amendment was adopted.


             The committee amendment as amended was adopted.


             Representative Kessler moved adoption of the following amendment by Representative Kessler:


             On page 41, after line 7, insert the following:


             "NEW SECTION. Sec. 33. The sum of fifteen million dollars, or as much thereof as may be necessary is appropriated for the biennium ending June 30, 1997, from the general fund to the department of fish and wildlife for the watershed restoration jobs grant program.

             (1) The goals of this program are to:

             (a) Restore and protect fish and wildlife habitat in priority watersheds as established by the watershed coordinating council;

             (b) Provide good wage jobs for dislocated natural resource workers in distressed communities;

             (c) Assist in establishing new businesses in watershed restoration; and

             (d) Carry out projects developed through local initiatives.

             (2) Seven hundred fifty thousand dollars of this amount is provided solely for watershed restoration programs to be completed by the department of ecology̓s Washington conservation corps crews in priority watersheds as established by the watershed coordinating council.

             (3) Five hundred seventy thousand dollars of this amount shall be used by the department of fish and wildlife to provide technical and engineering support for watershed restoration projects and to monitor implemented projects.

             (4) State agencies shall expend no more than three percent of total funding for direct administration of this program, except funds expended by the Washington conservation corp shall be subject solely to the limitations set forth in RCW 43.220.230. Of this amount three hundred fifty thousand dollars is solely for the department of fish and wildlife to administer the program. The remaining amount may be used by appropriate state agencies as determined by the watershed restoration jobs grant advisory task force created in subsection (7) of this section.

             (5) State agencies, local governments, tribes, and nonprofit organizations shall be eligible for these grants. Funds may be expended for directly associated planning, design, and engineering costs. Funds shall be used for specific projects and not for ongoing operational costs. Examples of the type of eligible projects include, but are not limited to, closure or improvement of forest roads, repair of culverts, removal of fish passage barriers, and stream restoration and protection.

             (6) At least eleven million dollars of this amount shall be allocated for projects selected on the following basis:

             (a) The watershed priorities established by the watershed coordinating council;

             (b) The number of dislocated natural resource workers employed by the project;

             (c) The extent to which the project fits into an existing watershed plan;

             (d) The extent of local partnerships or match for the project.

             (7) Two million dollars of this amount shall be allocated for projects in nonpriority watersheds, which are based on strong scientific principles and which employ dislocated natural resource workers.

             (8) The department of fish and wildlife and the department of natural resources shall administer the program in consultation with the watershed coordinating council. For the purposes of administering this program the department of fish and wildlife and the department of natural resources shall create a watershed restoration jobs grant advisory task force. This task force shall consist of the department of fish and wildlife, the department of natural resources, the department of ecology, the Puget Sound water quality authority, the executive director of the Washington conservation commission, the employment security department, the work force training board, and the rural community assistance coordinator who shall serve as the task force chair. The task force shall consult with tribal governments, the federal government, and labor and other interested stakeholders.

             (9) The department of fish and wildlife and the department of natural resources shall, in consultation with the watershed coordinating council, provide a report on the effectiveness of the watershed restoration jobs grant program to the governor and legislature by October 1, 1996."


             Renumber the remaining sections consecutively, correct internal references accordingly, and fix the title.


             Representatives Kessler, Sheldon, Johnson, Ebersole, Basich, Hatfield, Ogden, Conway and Kremen spoke in favor of the adoption of the amendment.


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


             Representatives Silver and Beeksma spoke against the adoption of the amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 41, after line 7, to Engrossed Second Substitute Senate Bill No. 5342 and the amendment was not adopted by the following vote: Yeas - 47, Nays - 48, Absent - 1, Excused - 1.

             Voting yea: Representatives Basich, Boldt, Brown, Brumsickle, Buck, Campbell, Chappell, Chopp, Cody, Cole, Conway, Cooke, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Hymes, Jacobsen, Johnson, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Pennington, Poulsen, Quall, Regala, Romero, Rust, Scott, Sheldon, Smith, Sommers, Thibaudeau, Thomas, B., Tokuda, Valle, Van Luven, Veloria and Wolfe - 47.

             Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Cairnes, Carlson, Carrell, Casada, Chandler, Clements, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Huff, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Stevens, Talcott, Thomas, L., Thompson and Mr. Speaker - 48.

             Absent: Representative Horn - 1.

             Excused: Representative Appelwick - 1.


             Representative Silver moved adoption of the following amendment by Representative Silver:


             On page 41, line 18, after "June 30," strike "1998" and insert "1999"


             Representative Silver spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Buck, Silver, Basich, Lisk, Johnson, Ebersole, Conway and Hargrove spoke in favor of passage of the bill.


             Representative Lisk again spoke in favor of passage of the bill.


             Representative Ebersole again spoke in favor of passage of the bill.


MOTION


             On motion of Representative Talcott, Representative Foreman was excused.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Second Substitute Senate Bill No. 5342 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5342 as amended by the House, and the bill passed the House by the following vote: Yeas - 93, Nays - 2, Absent - 0, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 93.

             Voting nay: Representatives Goldsmith and Hargrove - 2.

             Excused: Representatives Appelwick and Foreman - 2.


             Engrossed Second Substitute Senate Bill No. 5342, as amended by the House, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Engrossed Second Substitute Senate Bill No. 5448.


             There being no objection, the committee amendment was not adopted.


             With the consent of the House, amendment numbers 740, 757, 801, 802 and 803 to Engrossed Second Substitute Senate Bill No. 5448 were withdrawn.


             Representative Chandler moved adoption of the following amendment by Representative Chandler:


             Strike everything after the enacting clause and insert the following:


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

             (1) Protection of the state's water resources, and utilization of such resources for provision of public water supplies, requires more efficient and effective management than is currently provided under state law;

             (2) The provision of public water supplies to the people of the state should be undertaken in a manner that is consistent with the planning principles of the growth management act and the comprehensive plans adopted by local governments under the growth management act;

             (3) Small water systems have inherent difficulties with proper planning, operation, financing, management and maintenance. The ability of such systems to provide safe and reliable supplies to their customers on a long-term basis needs to be assured through proper management and training of operators;

             (4) New water quality standards and operational requirements for public water systems will soon generate higher rates for the customers of those systems, which may be difficult for customers to afford to pay. It is in the best interest of the people of this state that small systems maintain themselves in a financially viable condition;

             (5) The drinking water 2000 task force has recommended maintaining a strong and properly funded state-wide drinking water program, retaining primary responsibility for administering the federal safe drinking water act in Washington. The task force has further recommended delegation of as many water system regulatory functions as possible to local governments, with provision of adequate resources and elimination of barriers to such delegation. In order to achieve these objectives, the state shall provide adequate funding from both general state funds and funding directly from the regulated water system;

             (6) The public health services improvement plan recommends that the principal public health functions in Washington, including regulation of public water systems, should be fully funded by state revenues and undertaken by local jurisdictions with the capacity to perform them; and

             (7) State government, local governments, water suppliers, and other interested parties should work for continuing economic growth of the state by maximizing the use of existing water supply management alternatives, including regional water systems, satellite management, and coordinated water system development.


             Sec. 2. RCW 70.116.060 and 1977 ex.s. c 142 s 6 are each amended to read as follows:

             (1) A coordinated water system plan shall be submitted to the secretary for design approval within two years of the establishment of the boundaries of a critical water supply service area.

             (2) The secretary shall review the coordinated water system plan and, to the extent the plan is consistent with the requirements of this chapter and regulations adopted hereunder, shall approve the plan, provided that the secretary shall not approve those portions of a coordinated water system plan ((which)) that fail to meet the requirements for future service area boundaries until any boundary dispute is resolved as set forth in RCW 70.116.070.

             (3) Following the approval of a coordinated water system plan by the secretary:

             (a) All purveyors constructing or proposing to construct public water system facilities within the area covered by the plan shall comply with the plan.

             (b) No other purveyor shall establish a public water system within the area covered by the plan, unless the ((secretary)) local legislative authority determines that existing purveyors are unable to provide the service in a timely and reasonable manner, pursuant to guidelines developed by the secretary. An existing purveyor is unable to provide the service in a timely manner if the water cannot be provided to an applicant for water within one hundred twenty days unless specified otherwise by the local legislative authority. If such a determination is made, the ((secretary may)) local legislative authority shall require the new public water system to be constructed in accordance with the construction standards and specifications embodied in the coordinated water system plan approved for the area. The service area boundaries in the coordinated plan for the affected utilities shall be revised to reflect the decision of the local legislative authority.

             (4) The secretary may deny proposals to establish or to expand any public water system within a critical water supply service area for which there is not an approved coordinated water system plan at any time after two years of the establishment of the critical water supply service area: PROVIDED, That service connections shall not be considered expansions.

             (5) The affected legislative authorities may develop and utilize a mechanism for addressing disputes that arise in the implementation of the coordinated water system plan after the plan has been approved by the secretary.

             (6) After adoption of the initial coordinated water system plan, the local legislative authority or the secretary may determine that the plan should be updated or revised. The legislative authority may initiate an update at any time, but the secretary may initiate an update no more frequently than once every five years. The update may encompass all or a portion of the plan, with the scope of the update to be determined by the secretary and the legislative authority. The process for the update shall be the one prescribed in RCW 70.116.050.

             (7) The provisions of subsection (3) of this section shall not apply in any county for which a coordinated water system plan has not been approved under subsection (2) of this section.

             (8) If the secretary initiates an update or revision of a coordinated water system plan, the state shall pay for the cost of updating or revising the plan.


             Sec. 3. RCW 70.119A.060 and 1991 c 304 s 4 are each amended to read as follows:

             (1) In order to assure safe and reliable public drinking water and to protect the public health, public water systems shall:

             (a) Protect the water sources used for drinking water;

             (b) Provide treatment adequate to assure that the public health is protected;

             (c) Provide and effectively operate and maintain public water system facilities;

             (d) Plan for future growth and assure the availability of safe and reliable drinking water;

             (e) Provide the department with the current names, addresses, and telephone numbers of the owners, operators, and emergency contact persons for the system, including any changes to this information, and provide to users the name and twenty-four hour telephone number of an emergency contact person; and

             (f) Take whatever investigative or corrective action is necessary to assure that a safe and reliable drinking water supply is continuously available to users.

             (2) No new public water system may be approved or created unless: (a) It is owned or operated by a satellite system management agency established under RCW 70.116.134 and the satellite system management system complies with financial viability requirements of the department; or (b) a satellite management system is not available and it is determined that the new system has sufficient management and financial resources to provide safe and reliable service. The approval of any new system that is not owned by a satellite system management agency shall be conditioned upon future management or ownership by a satellite system management agency, if such management or ownership can be made with reasonable economy and efficiency, or upon periodic review of the system's operational history to determine its ability to meet the department's financial viability and other operating requirements. The department and local health jurisdictions shall enforce this requirement under authority provided under this chapter, chapter 70.116, or 70.05 RCW, or other authority governing the approval of new water systems by the department or a local jurisdiction.

             (3) The department and local health jurisdictions shall carry out the rules and regulations of the state board of health adopted pursuant to RCW 43.20.050(2)(a) and other rules adopted by the department relating to public water systems.


             NEW SECTION. Sec. 4. A new section is added to chapter 70.119A RCW to read as follows:

             The department shall create a water supply advisory committee. Membership on the committee shall reflect a broad range of interests in the regulation of public water supplies, including water utilities of all sizes, local governments, business groups, special purpose districts, local health jurisdictions, other state and federal agencies, financial institutions, environmental organizations, the legislature, and other groups substantially affected by the department's role in implementing state and federal requirements for public water systems. Members shall be appointed for fixed terms of no less than two years, and may be reappointed. Any members of an existing advisory committee to the drinking water program may remain as members of the water supply advisory committee. The committee shall provide advice to the department on the organization, functions, service delivery methods, and funding of the drinking water program. The committee shall also review the adequacy and necessity of the current and prospective funding for the drinking water program, and the results of the committees' review shall be forwarded to the department for inclusion in a report to the appropriate standing committees of the legislature no later than November 1, 1996. The report shall include a discussion of the extent to which the drinking water program has progressed toward achieving the objectives of the public health improvement plan, and an assessment of any changes to the program necessitated by modifications to the federal safe drinking water act.


             Sec. 5. RCW 82.16.020 and 1989 c 302 s 204 are each amended to read as follows:

             (1) There is levied and there shall be collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned. The tax shall be equal to the gross income of the business, multiplied by the rate set out after the business, as follows:

             (a) Railroad, express, railroad car, sewerage collection, and telegraph businesses: Three and six-tenths percent;

             (b) Light and power business: Three and sixty-two one-hundredths percent;

             (c) Gas distribution business: Three and six-tenths percent;

             (d) Urban transportation business: Six-tenths of one percent;

             (e) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state: Six-tenths of one percent;

             (f) Motor transportation and tugboat businesses, and all public service businesses other than ones mentioned above: One and eight-tenths of one percent;

             (g) Water distribution business: Four and seven-tenths percent.

             (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.

             (3) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses shall be deposited in the public works assistance account created in RCW 43.155.050.

             (4) Fifteen percent of the moneys collected under subsection (1) of this section on water distribution businesses shall be deposited in the safe drinking water account created in RCW 70.119A.120.


             Sec. 6. RCW 70.119.020 and 1991 c 305 s 2 are each amended to read as follows:

             As used in this chapter unless context requires another meaning:

             (1) "Board" means the board established pursuant to RCW 70.95B.070 which shall be known as the water and waste water operator certification board of examiners.

             (2) "Certificate" means a certificate of competency issued by the secretary stating that the operator has met the requirements for the specified operator classification of the certification program.

             (3) "Certified operator" means an individual holding a valid certificate and employed or appointed by any county, water district, municipality, public or private corporation, company, institution, person, or the state of Washington and who is designated by the employing or appointing officials as the person responsible for active daily technical operation.

             (4) "Department" means the department of health.

             (5) "Distribution system" means that portion of a public water system which stores, transmits, pumps and distributes water to consumers.

             (6) "Ground water under the direct influence of surface water" means any water beneath the surface of the ground with:

             (a) Significant occurrence of insects or other microorganisms, algae, or large diameter pathogens such as giardia lamblia; or

             (b) Significant and relatively rapid shifts in water characteristics such as turbidity, temperature, conductivity, or pH which closely correlate to climatological or surface water conditions.

             (7) "Group A water system" means a system with fifteen or more service connections, regardless of the number of people; or a system serving an average of twenty-five or more people per day for sixty or more days within a calendar year, regardless of the number of service connections. Group A water system does not include a system serving fewer than fifteen single-family residences, regardless of the number of people.

             (8) "Nationally recognized association of certification authorities" shall mean an organization which serves as an information center for certification activities, recommends minimum standards and guidelines for classification of potable water treatment plants, water distribution systems and waste water facilities and certification of operators, facilitates reciprocity between state programs and assists authorities in establishing new certification programs and updating existing ones.

             (9) "Public water system" means any system, excluding a system serving only one single-family residence and a system with four or fewer connections all of which serve residences on the same farm, providing piped water for human consumption or domestic use, including any collection, treatment, storage, or distribution facilities under control of the purveyor and used primarily in connection with the system; and collection or pretreatment storage facilities not under control of the purveyor but primarily used in connection with the system.

             (10) "Purification plant" means that portion of a public water system which treats or improves the physical, chemical or bacteriological quality of the system's water to bring the water into compliance with state board of health standards.

             (11) "Secretary" means the secretary of the department of health.

             (12) "Service" means a connection to a public water system designed to serve a single-family residence, dwelling unit, or equivalent use. If the facility has group home or barracks-type accommodations, three persons will be considered equivalent to one service.

             (13) "Surface water" means all water open to the atmosphere and subject to surface runoff.


             Sec. 7. RCW 70.119.030 and 1991 c 305 s 3 are each amended to read as follows:

             (1) A public water system shall have a certified operator if:

             (a) ((The system serves one hundred or more services in use at any one time)) It is a group A water system; or

             (b) It is a ((group A)) public water system using a surface water source or a ground water source under the direct influence of surface water.

             (2) The certified operators shall be in charge of the technical direction of a water system's operation, or an operating shift of such a system, or a major segment of a system necessary for monitoring or improving the quality of water. The operator shall be certified as provided in RCW 70.119.050.

             (3) A certified operator may provide required services to more than one system or to a group of systems. The amount of time that a certified operator shall be required to be present at any given system shall be based upon the time required to properly operate and maintain the public water system as designed and constructed in accordance with RCW 43.20.050. The employing or appointing officials shall designate the position or positions requiring mandatory certification within their individual systems and shall assure that such certified operators are responsible for the system's technical operation.

             (4) The department shall, in establishing by rule or otherwise the requirements for public water systems with fewer than one hundred connections, phase in such requirements in order to assure that (a) an adequate number of certified operators are available to serve the additional systems, (b) the systems have adequate notice and time to plan for securing the services of a certified operator, (c) the department has the additional data and other administrative capacity, (d) adequate training is available to certify additional operators as necessary, and (e) any additional requirements under federal law are satisfied. The department shall waive the requirement for a certified operator for a system with fewer than one hundred connections if that system satisfactorily demonstrates to the department that: It is not in significant noncompliance with monitoring or water quality standards, as defined by the department by rule; it otherwise meets the requirements of the department with regard to adequacy and financial viability; and it does not have, or is not required to have, any water treatment facilities. The waiver shall only be valid while the system meets these requirements.

             (5) Any examination required by the department as a prerequisite for the issuance of a certificate under this chapter shall be offered in each region where the department has a regional office.

             (6) Operators not required to be certified by this chapter are encouraged to become certified on a voluntary basis.


             Sec. 8. RCW 70.116.050 and 1977 ex.s. c 142 s 5 are each amended to read as follows:

             (1) Each purveyor within the boundaries of a critical water supply service area shall develop a water system plan for the purveyor's future service area if such a plan has not already been developed: PROVIDED, That nonmunicipally owned public water systems are exempt from the planning requirements of this chapter, except for the establishment of service area boundaries if they((: (a) Were in existence as of September 21, 1977; and (b))) have no plans for water service beyond their existing service area((, and (c) meet minimum quality and pressure design criteria established by the state board of health)): PROVIDED FURTHER, That if the county legislative authority permits a change in development that will increase the demand for water service of such a system beyond the existing system's ability to provide minimum water service, the purveyor shall develop a water system plan in accordance with this section. The establishment of future service area boundaries shall be in accordance with RCW 70.116.070.

             (2) After the boundaries of a critical water supply service area have been established pursuant to RCW 70.116.040, the committee established in RCW 70.116.040 shall participate in the development of a coordinated water system plan for the designated area. Such a plan shall incorporate all water system plans developed pursuant to subsection (1) of this section. The plan shall provide for maximum integration and coordination of public water system facilities consistent with the protection and enhancement of the public health and well-being. Decisions of the committee shall be by majority vote of those present at meetings of the committee.

             (3) Those portions of a critical water supply service area not yet served by a public water system shall have a coordinated water system plan developed by existing purveyors based upon permitted densities in county plans, ordinances, and/or growth policies for a minimum of five years beyond the date of establishment of the boundaries of the critical water supply service area.

             (4) To insure that the plan incorporates the proper designs to protect public health, the secretary shall adopt regulations pursuant to chapter 34.05 RCW concerning the scope and content of coordinated water system plans, and shall ensure, as minimum requirements, that such plans:

             (a) Are reviewed by the appropriate local governmental agency to insure that the plan is not inconsistent with the land use plans, shoreline master programs, and/or developmental policies of the general purpose local government or governments whose jurisdiction the water system plan affects.

             (b) Recognize all water resource plans, water quality plans, and water pollution control plans which have been adopted by units of local, regional, and state government.

             (c) Incorporate the fire protection standards developed pursuant to RCW 70.116.080.

             (d) Identify the future service area boundaries of the public water system or systems included in the plan within the critical water supply service area.

             (e) Identify feasible emergency inter-ties between adjacent purveyors.

             (f) Include satellite system management requirements consistent with RCW 70.116.134.

             (g) Include policies and procedures that generally address failing water systems for which counties may become responsible under RCW 43.70.195.

             (5) If a "water general plan" for a critical water supply service area or portion thereof has been prepared pursuant to chapter 36.94 RCW and such a plan meets the requirements of subsections (1) and (4) of this section, such a plan shall constitute the coordinated water system plan for the applicable geographical area.

             (6) The committee established in RCW 70.116.040 may develop and utilize a mechanism for addressing disputes that arise in the development of the coordinated water system plan.

             (7) Prior to the submission of a coordinated water system plan to the secretary for approval ((of the design of the proposed facilities)) pursuant to RCW 70.116.060, ((the plan shall be reviewed for consistency with subsection (4) of this section by)) the legislative authorities of the counties in which the critical water supply service area is located shall hold a public hearing thereon and shall determine the plan's consistency with subsection (4) of this section. If within sixty days of receipt of the plan, the legislative authorities find any segment of a proposed service area of a purveyor's plan or any segment of the coordinated water system plan to be inconsistent with any current land use plans, shoreline master programs, and/or developmental policies of the general purpose local government or governments whose jurisdiction the water system plan affects, the secretary shall not approve that portion of the plan until the inconsistency is resolved between the local government and the purveyor. If no comments have been received from the legislative authorities within sixty days of receipt of the plan, the secretary may consider the plan for approval.

             (8) Any county legislative authority may adopt an abbreviated plan for the provision of water supplies within its boundaries that includes provisions for service area boundaries, minimum design criteria, and review process. The elements of the abbreviated plan shall conform to the criteria established by the department under subsection (4) of this section and shall otherwise be consistent with other adopted land use and resource plans. The county legislative authority may, in lieu of the committee required under RCW 70.116.040, and the procedures authorized in this section, utilize an advisory committee that is representative of the water utilities and local governments within its jurisdiction to assist in the preparation of the abbreviated plan, which may be adopted by resolution and submitted to the secretary for approval. Purveyors within the boundaries covered by the abbreviated plan need not develop a water system plan, except to the extent required by the secretary or state board of health under other authority. Any abbreviated plan adopted by a county legislative authority pursuant to this subsection shall be subject to the same provisions contained in RCW 70.116.060 for coordinated water system plans that are approved by the secretary.


             Sec. 9. RCW 70.119A.040 and 1993 c 305 s 2 are each amended to read as follows:

             (1)(a) In addition to or as an alternative to any other penalty or action allowed by law, a person who violates a law or rule regulating public water systems and administered by the department of health is subject to a penalty of not more than five thousand dollars per day for every such violation, or, in the case of a violation that has been determined to be a public health emergency, a penalty of not more than ten thousand dollars per day for every such violation. Every such violation shall be a separate and distinct offense. The amount of fine shall reflect the health significance of the violation and the previous record of compliance on the part of the public water supplier. In case of continuing violation, every day's continuance shall be a separate and distinct violation.

             (b) In addition, a person who constructs, modifies, or expands a public water system or who commences the construction, modification, or expansion of a public water system without first obtaining the required departmental approval is subject to penalties of not more than five thousand dollars per service connection, ((or,)) except that a penalty may not exceed one thousand dollars per service connection if the public water system has less than one thousand connections and the person had submitted all information and plans to the department necessary for departmental approval for modification or expansion of the system and the department has not acted within a reasonable period of time. In the case of a system serving a transient population, a penalty of not more than four hundred dollars per person based on the highest average daily population the system serves or is anticipated to serve may be imposed. The total penalty that may be imposed pursuant to this subsection (1)(b) is five hundred thousand dollars. For the purpose of computing the penalty under this subsection, a service connection shall include any new service connection actually constructed, any anticipated service connection the system has been designed to serve, and, in the case of a system modification not involving expansions, each existing service connection that benefits or would benefit from the modification.

             (c) Every person who, through an act of commission or omission, procures, aids, or abets a violation is considered to have violated the provisions of this section and is subject to the penalty provided in this section.

             (2) The penalty provided for in this section shall be imposed by a notice in writing to the person against whom the civil penalty is assessed and shall describe the violation. The notice shall be personally served in the manner of service of a summons in a civil action or in a manner that shows proof of receipt. A penalty imposed by this section is due twenty-eight days after receipt of notice unless application for an adjudicative proceeding is filed as provided in subsection (3) of this section.

             (3) Within twenty-eight days after notice is received, the person incurring the penalty may file an application for an adjudicative proceeding and may pursue subsequent review as provided in chapter 34.05 RCW and applicable rules of the department or board of health.

             (4) A penalty imposed by a final administrative order is due upon service of the final administrative order. A person who fails to pay a penalty assessed by a final administrative order within thirty days of service of the final administrative order shall pay, in addition to the amount of the penalty, interest at the rate of one percent of the unpaid balance of the assessed penalty for each month or part of a month that the penalty remains unpaid, commencing with the month in which the notice of penalty was served and such reasonable attorney's fees as are incurred in securing the final administrative order.

             (5) A person who institutes proceedings for judicial review of a final administrative order assessing a civil penalty under this chapter shall place the full amount of the penalty in an interest bearing account in the registry of the reviewing court. At the conclusion of the proceeding the court shall, as appropriate, enter a judgment on behalf of the department and order that the judgment be satisfied to the extent possible from moneys paid into the registry of the court or shall enter a judgment in favor of the person appealing the penalty assessment and order return of the moneys paid into the registry of the court together with accrued interest to the person appealing. The judgment may award reasonable attorney's fees for the cost of the attorney general's office in representing the department.

             (6) If no appeal is taken from a final administrative order assessing a civil penalty under this chapter, the department may file a certified copy of the final administrative order with the clerk of the superior court in which the public water system is located or in Thurston county, and the clerk shall enter judgment in the name of the department and in the amount of the penalty assessed in the final administrative order.

             (7) A judgment entered under subsection (5) or (6) of this section shall have the same force and effect as, and is subject to all of the provisions of law relating to, a judgment in a civil action, and may be enforced in the same manner as any other judgment of the court in which it is entered.

             (8) All penalties imposed under this section shall be payable to the state treasury and credited to the ((general fund)) safe drinking water account, and shall be used by the department to provide training and technical assistance to system owners and operators.

             (9) Except in cases of public health emergencies, the department may not impose monetary penalties under this section unless a prior effort has been made to resolve the violation informally.


             Sec. 10. RCW 70.119A.130 and 1991 c 304 s 7 are each amended to read as follows:

             ((Until July 1, 1996, local governments shall be prohibited from administering a separate operating permit requirement for public water systems. After July 1, 1996,)) Local governments may establish separate operating permit requirements for public water systems provided the operating permit requirements have been approved by the department. The department shall not approve local operating permit requirements unless the local system will result in an increased level of service to the public water system. There shall not be duplicate operating permit requirements imposed by local governments and the department.


             NEW SECTION. Sec. 11. A new section is added to chapter 70.119A RCW to read as follows:

             A drinking water assistance account is created in the state treasury. The purpose of the account is to allow the state to take advantage of any federal funds that become available for safe drinking water. Expenditures from the account may only be made by the secretary or the public works board after appropriation. Moneys in the account may only be used to assist water systems to provide safe drinking water through a program administered through the department of health and the public works board. Money may be placed in the account from the proceeds of bonds when authorized by the legislature, transfers from other state funds or accounts, federal capitalization grants or other financial assistance, all repayments of moneys borrowed from the account, all interest payments made by borrowers from the account or otherwise earned on the account, or any other lawful source. Expenditures from the account may only be made by the secretary or the public works board after appropriation. Moneys in the account may only be used to assist local governments and water systems to provide safe and reliable drinking water and to administer the program.


             Sec. 12. RCW 43.155.050 and 1993 sp.s. c 24 s 921 are each amended to read as follows:

             The public works assistance account is hereby established in the state treasury. Money may be placed in the public works assistance account from the proceeds of bonds when authorized by the legislature or from any other lawful source. Money in the public works assistance account shall be used to make loans and to give financial guarantees to local governments for public works projects. Moneys in the account may also be appropriated to provide for state match requirements under federal law for projects and activities conducted and financed by the board under the drinking water assistance account. During the 1993-95 fiscal biennium, moneys in the public works assistance account may be appropriated for flood control assistance including grants under chapter 86.26 RCW. To the extent that moneys in the public works assistance account are not appropriated during the 1993-95 fiscal biennium for public works or flood control assistance, the legislature may direct their transfer to the state general fund. In awarding grants under chapter 86.26 RCW, the department of ecology shall give strong preference to local governments that have: (1) Implemented, or are in the process of implementing, an ordinance that establishes a flood plain policy that is substantially more stringent than minimum federal requirements; (2) completed a comprehensive flood control plan meeting the requirements of RCW 86.12.200; or (3) constructed, or are in the process of constructing, a system of overtopping dikes or levees that allow public access.


             Sec. 13. RCW 80.04.110 and 1991 c 134 s 1 and 1991 c 100 s 2 are each reenacted and amended to read as follows:

             (1) Complaint may be made by the commission of its own motion or by any person or corporation, chamber of commerce, board of trade, or any commercial, mercantile, agricultural or manufacturing society, or any body politic or municipal corporation, or by the public counsel section of the office of the attorney general, or its successor, by petition or complaint in writing, setting forth any act or thing done or omitted to be done by any public service corporation in violation, or claimed to be in violation, of any provision of law or of any order or rule of the commission: PROVIDED, That no complaint shall be entertained by the commission except upon its own motion, as to the reasonableness of the schedule of the rates or charges of any gas company, electrical company, water company, or telecommunications company, unless the same be signed by the mayor, council or commission of the city or town in which the company complained of is engaged in business, or not less than twenty-five consumers or purchasers of such gas, electricity, water or telecommunications service, or at least twenty-five percent of the consumers or purchasers of the company's service: PROVIDED, FURTHER, That when two or more public service corporations, (meaning to exclude municipal and other public corporations) are engaged in competition in any locality or localities in the state, either may make complaint against the other or others that the rates, charges, rules, regulations or practices of such other or others with or in respect to which the complainant is in competition, are unreasonable, unremunerative, discriminatory, illegal, unfair or intending or tending to oppress the complainant, to stifle competition, or to create or encourage the creation of monopoly, and upon such complaint or upon complaint of the commission upon its own motion, the commission shall have power, after notice and hearing as in other cases, to, by its order, subject to appeal as in other cases, correct the abuse complained of by establishing such uniform rates, charges, rules, regulations or practices in lieu of those complained of, to be observed by all of such competing public service corporations in the locality or localities specified as shall be found reasonable, remunerative, nondiscriminatory, legal, and fair or tending to prevent oppression or monopoly or to encourage competition, and upon any such hearing it shall be proper for the commission to take into consideration the rates, charges, rules, regulations and practices of the public service corporation or corporations complained of in any other locality or localities in the state.

             (2) All matters upon which complaint may be founded may be joined in one hearing, and no motion shall be entertained against a complaint for misjoinder of complaints or grievances or misjoinder of parties; and in any review of the courts of orders of the commission the same rule shall apply and pertain with regard to the joinder of complaints and parties as herein provided: PROVIDED, All grievances to be inquired into shall be plainly set forth in the complaint. No complaint shall be dismissed because of the absence of direct damage to the complainant.

             (3) Upon the filing of a complaint, the commission shall cause a copy thereof to be served upon the person or corporation complained of, which shall be accompanied by a notice fixing the time when and place where a hearing will be had upon such complaint. The time fixed for such hearing shall not be less than ten days after the date of the service of such notice and complaint, excepting as herein provided. The commission shall enter its final order with respect to a complaint filed by any entity or person other than the commission within ten months from the date of filing of the complaint, unless the date is extended for cause. Rules of practice and procedure not otherwise provided for in this title may be prescribed by the commission. Such rules may include the requirement that a complainant use informal processes before filing a formal complaint.

             (4) The commission shall, as appropriate, audit a nonmunicipal water system upon receipt of an administrative order from the department, or the city or county in which the water system is located, finding that the water delivered by a system does not meet state board of health standards adopted under RCW 43.20.050(2)(a) or standards adopted under chapters 70.116 and 70.119A RCW, and the results of the audit shall be provided to the requesting department, city, or county. However, the number of nonmunicipal water systems referred to the commission in any one calendar year shall not exceed twenty percent of the water companies subject to commission regulation as defined in RCW 80.04.010.

             Every nonmunicipal water system referred to the commission for audit under this section shall pay to the commission an audit fee in an amount, based on the system's twelve-month audited period, equal to the fee required to be paid by regulated companies under RCW 80.24.010.

             (5) Any customer or purchaser of service from a water system or company that is subject to commission regulation may file a complaint with the commission if he or she has reason to believe that the water delivered by the system to the customer does not meet state drinking water standards under chapter 43.20 or 70.116 RCW. The commission shall investigate such a complaint, and shall request that the state department of health or local health department of the county in which the system is located test the water for compliance with state drinking water standards, and provide the results of such testing to the commission. The commission may decide not to investigate the complaint if it determines that the complaint has been filed in bad faith, or for the purpose of harassment of the water system or company, or for other reasons has no substantial merit. The water system or company shall bear the expense for the testing. After the commission has received the complaint from the customer and during the pendency of the commission investigation, the water system or company shall not take any steps to terminate service to the customer or to collect any amounts alleged to be owed to the company by the customer. The commission may issue an order or take any other action to ensure that no such steps are taken by the system or company. The customer may, at the customer's option and expense, obtain a water quality test by a licensed or otherwise qualified water testing laboratory, of the water delivered to the customer by the water system or company, and provide the results of such a test to the commission. If the commission determines that the water does not meet state drinking water standards, it shall exercise its authority over the system or company as provided in this title, and may, where appropriate, order a refund to the customer on a pro rata basis for the substandard water delivered to the customer, and shall order reimbursement to the customer for the cost incurred by the customer, if any, in obtaining a water quality test.


             Sec. 14. RCW 70.116.070 and 1977 ex.s. c 142 s 7 are each amended to read as follows:

             (1) The proposed service area boundaries of public water systems within the critical water supply service area that are required to submit water system plans under this chapter shall be ((determined by written agreement among the purveyors and with the approval of the appropriate legislative authority. Failure of the legislative authority to file with the secretary objections to the proposed service area boundaries within sixty days of receipt of the proposed boundary agreement may be construed as approval of the agreement)) identified in the system's plan. The local legislative authority, or its planning department or other designee, shall review the proposed boundaries to determine whether the proposed boundaries of one or more systems overlap. The boundaries determined by the local legislative authority not to overlap shall be incorporated into the coordinated water system plan. Where any overlap exists, the local legislative authority may attempt to resolve the conflict through procedures established under RCW 70.116.060(5).

             (2) ((If no service area boundary agreement has been established within a reasonable period of time, or if the legislative authority has filed with the secretary objections in writing as provided in subsection (1) of this section)) Any final decision by a local legislative authority regarding overlapping service areas, or any unresolved disputes regarding service area boundaries, may be appealed or referred to the secretary in writing for resolution. After receipt of an appeal or referral, the secretary shall hold a public hearing thereon. The secretary shall provide notice of the hearing by certified mail to each purveyor ((providing service in the critical water supply service area)) involved in the dispute, to each county legislative authority having jurisdiction in the area and to the public. The secretary shall provide public notice pursuant to the provisions of chapter 65.16 RCW. Such notice shall be given at least twenty days prior to the hearing. The hearing may be continued from time to time and, at the termination thereof, the secretary may restrict the expansion of service of any purveyor within the area if the secretary finds such restriction is necessary to provide the greatest protection of the public health and well-being.


             Sec. 15. RCW 56.08.200 and 1991 c 190 s 1 are each amended to read as follows:

             It is unlawful and a misdemeanor to make, or cause to be made, or to maintain any ((sewer)) connection with any sewer or water system of any sewer district, or with any sewer or water system which is connected directly or indirectly with any sewer or water system of any sewer district without having permission from the sewer district.


             Sec. 16. RCW 57.08.180 and 1991 c 190 s 5 are each amended to read as follows:

             It is unlawful and a misdemeanor to make, or cause to be made, or to maintain any ((sewer)) connection with any sewer or water system of any water district, or with any sewer or water system which is connected directly or indirectly with any sewer or water system of any water district without having permission from the water district.


             NEW SECTION. Sec. 17. Section 10 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 July 1, 1995."


             On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 70.116.060, 70.119A.060, 82.16.020, 70.119.020, 70.119.030, 70.116.050, 70.119A.040, 70.119A.130, 43.155.050, 70.116.070, 56.08.200, and 57.08.180; reenacting and amending RCW 80.04.110; adding new sections to chapter 70.119A RCW; creating a new section; prescribing penalties; providing an effective date; and declaring an emergency."


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 7, after line 3 of the amendment, insert the following:

             "(8) "Group B water system" means a system with more than four service connections but less than fifteen service connections and serving either: (a) an average of less than twenty-five people per day for sixty or more days within a calendar year; or (b) any number of people for less than sixty days within a calendar year."


             Renumber the remaining subsections consecutively.


             Representatives B. Thomas and Cairnes spoke in favor of the adoption of the amendment to the amendment.


             Representative Rust spoke against the adoption of the amendment to the amendment.


             Representative B. Thomas again spoke in favor of the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representative Sheldon moved adoption of the following amendment to the amendment by Representative Sheldon:


             On page 8, line 27 of the amendment, after "shall" strike everything down to and including "requirements." on line 35 and insert "not require a certified operator for a system with fewer than one hundred connections unless that system is determined by the department to be in significant noncompliance with monitoring or water quality standards, as defined by the department by rule, or has, or is required to have, water treatment facilities other than simple disinfection."


             Representatives Sheldon and Chandler spoke in favor of the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representative Campbell moved adoption of the following amendment by Representative Campbell:


             On page 19, after line 28 of the amendment, insert the following:

             "NEW SECTION. Sec. 17. A new section is added to chapter 84.36 RCW to read as follows:

             Land, platted for residential development, for which an application to the appropriate water supplier or agency for residential water use has been denied, is exempt from taxation. Land assessed under 84.33 or 84.34 RCW is not eligible for exemption. Land used for commercial purposes is not eligible for exemption.

             Claims for exemption under this section shall be made to the assessor each year by March 31 for exemption from taxes payable in the following year. The exemption is limited to one year. The applicant must show denial of residential water use dated within twelve months before the March 31 exemption application date.

             The land loses its exempt status as of the date on which an application for residential water use is granted by the appropriate water supplier or agency. Land which changes from exempt to taxable status is subject to a pro rata portion of taxes as provided in RCW 84.04.350 through 84.40.390."


             Renumber the remaining section consecutively, correct any internal references accordingly, and correct the title.


POINT OF ORDER


             Representative Rust: Thank you Mr. Speaker. I would request a ruling on the scope and object of the amendment.


             There being no objection, the House deferred further consideration of Engrossed Second Substitute Senate Bill No. 5448 and the bill held it's place on the second reading calendar.


             SUBSTITUTE SENATE BILL NO. 5606, by Senate Committee on Ecology & Parks (originally sponsored by Senators Fraser, Haugen, Owen, McCaslin, Swecker, Newhouse, Oke, Rasmussen, Winsley, Morton and Schow)

 

Providing for use of reclaimed water.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Appropriations recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, April 3, 1995.)


             With the consent of the House, amendment numbers 796, 797 and 799 to Substitute Senate Bill No. 5606 were withdrawn.


             Representative Chandler moved adoption of the following amendment by Representative Chandler:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 90.46.005 and 1992 c 204 s 1 are each amended to read as follows:

             The legislature finds that by encouraging the use of reclaimed water while assuring the health and safety of all Washington citizens and the protection of its environment, the state of Washington will continue to use water in the best interests of present and future generations.

             To facilitate the ((opportunity to)) use of reclaimed water as soon as is practicable, the legislature encourages the cooperative efforts of the public and private sectors and the use of pilot projects to effectuate the goals of this chapter. The legislature further directs the department of health and the department of ecology to coordinate efforts towards developing an efficient and streamlined process for creating and implementing processes for the use of reclaimed water.

             It is hereby declared that the people of the state of Washington have a primary interest in the development of facilities to provide reclaimed water to replace potable water in nonpotable applications, to supplement existing surface and ground water supplies, and to assist in meeting the future water requirements of the state.

             The legislature further finds and declares that the utilization of reclaimed water by local communities for domestic, agricultural, industrial, recreational, and fish and wildlife habitat creation and enhancement purposes, including wetland enhancement, will contribute to the peace, health, safety, and welfare of the people of the state of Washington. To the extent reclaimed water is appropriate and available for beneficial uses, it should be used where feasible to supplement existing water supplies without threatening existing resources or public health in order to preserve potable water for drinking purposes.

             The legislature further finds and declares that the use of reclaimed water is not inconsistent with the policy of antidegradation of state waters announced in other state statutes, including the water pollution control act, chapter 90.48 RCW and the water resources act, chapter 90.54 RCW.

             It is the intent of the legislature that the department of ecology and the department of health undertake the necessary steps to encourage the development of water reclamation facilities so that reclaimed water may be made available to help meet the growing water requirements of the state.

             The legislature further finds and declares that reclaimed water facilities are water pollution control facilities as defined in chapter 70.146 RCW and are eligible for financial assistance as provided in chapter 70.146 RCW.


             Sec. 2. RCW 90.46.010 and 1992 c 204 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) "Greywater" means ((sewage)) wastewater having the consistency and strength of residential domestic type wastewater. Greywater includes wastewater from sinks, showers, and laundry fixtures, but does not include toilet or urinal waters.

             (2) "Land application" means application of treated effluent for purposes of irrigation or landscape enhancement for residential, business, and governmental purposes.

             (3) "Person" means any state, individual, public or private corporation, political subdivision, governmental subdivision, governmental agency, municipality, copartnership, association, firm, trust estate, or any other legal entity whatever.

             (4) "Reclaimed water" means effluent derived in any part from sewage from a wastewater treatment system that has been adequately and reliably treated, so that as a result of that treatment, it is suitable for a ((direct)) beneficial use or a controlled use that would not otherwise occur and is no longer considered wastewater.

             (5) "Sewage" means water-carried human wastes((, including kitchen, bath, and laundry waste)) from residences, buildings, industrial and commercial establishments, or other places, together with such ground water infiltration, surface waters, or industrial wastewater as may be present.

             (6) "User" means any person who uses reclaimed water.

             (7) "Wastewater" means water and wastes discharged from homes, businesses, and industry to the sewer system.

             (8) "Beneficial use," as used in this chapter, means the use of reclaimed water, that has been transported from the point of production to the point of use without an intervening discharge to the waters of the state, for a beneficial purpose.

             (9) "Direct recharge" means the controlled subsurface addition of water directly to the ground water basin that results in the replenishment of ground water.

             (10) "Ground water recharge criteria" means the contaminant criteria found in the drinking water quality standards adopted by the state board of health pursuant to chapter 43.20 RCW and the department of health pursuant to chapter 70.119A RCW.

             (11) "Planned ground water recharge project" means any reclaimed water project designed for the purpose of recharging ground water, via direct recharge or surface spreading.

             (12) "Reclamation criteria" means the criteria set forth in the water reclamation and reuse interim standards and subsequent revisions adopted by the department of ecology and the department of health.

             (13) "Streamflow augmentation" means the discharge of reclaimed water to rivers and streams of the state or other surface water bodies, but not wetlands.

             (14) "Surface percolation" means the controlled application of water to the ground surface for the purpose of recharging ground water.

             (15) "Wetland or wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted to life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. No agency shall use a delineation process for what constitutes a wetland that is more stringent than that adopted by the United States army corps of engineers.

             (16) "Man-made wetlands" means a wetland intentionally created from a nonwetland site to produce or replace natural habitat.


             NEW SECTION. Sec. 3. A new section is added to chapter 90.46 RCW to read as follows:

             (1) Reclaimed water may be beneficially used for surface percolation provided the reclaimed water meets the ground water recharge criteria as measured in ground water beneath or down gradient of the recharge project site, and has been incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.

             (2) If the state ground water recharge criteria as defined by RCW 90.46.010 do not contain a standard for a constituent or contaminant, the department of ecology shall establish a discharge limit consistent with the goals of this chapter.

             (3) Reclaimed water that does not meet the ground water recharge criteria may be beneficially used for surface percolation where the department of ecology has specifically authorized such use at such lower standard.


             NEW SECTION. Sec. 4. A new section is added to chapter 90.46 RCW to read as follows:

             (1) Reclaimed water may be beneficially used for discharge into man-made wetlands provided the reclaimed water meets the class A or B reclaimed water standards as defined in the reclamation criteria, and the discharge is incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.

             (2) Reclaimed water that does not meet the class A or B reclaimed water standards may be beneficially used for discharge into man-made wetlands where the department of ecology has specifically authorized such use at such lower standards.


             NEW SECTION. Sec. 5. A new section is added to chapter 90.46 RCW to read as follows:

             Reclaimed water intended for beneficial reuse may be discharged for streamflow augmentation provided the reclaimed water meets the requirements of the federal water pollution control act, chapter 90.48 RCW, and is incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.


             NEW SECTION. Sec. 6. A new section is added to chapter 90.46 RCW to read as follows:

             The department of ecology shall, in consultation with the department of health, adopt a single set of standards, procedures, and guidelines, on or before December 31, 1996, for direct recharge using reclaimed water. The standards shall address both water quality considerations and avoidance of property damage from excessive recharge.


             NEW SECTION. Sec. 7. A new section is added to chapter 90.46 RCW to read as follows:

             The department of ecology shall, in consultation with the department of health, adopt a single set of standards, procedures, and guidelines, on or before June 30, 1996, for discharge of reclaimed water to wetlands.


             NEW SECTION. Sec. 8. A new section is added to chapter 90.46 RCW to read as follows:

             On or before December 31, 1995, the department of ecology and department of health shall, in consultation with local governments and local interested parties, jointly review and, if required, propose amendments to chapter 372-32 WAC to resolve conflicts between the development of reclaimed water projects in the Puget Sound region and chapter 372-32 WAC.


             NEW SECTION. Sec. 9. The department of ecology and the department of health shall report on the progress of the implementation of this act to the members of the agriculture and ecology committee of the house of representatives and the members of the ecology and parks committee of the senate by December 15, 1995.


             Sec. 10. RCW 90.46.050 and 1992 c 204 s 6 are each amended to read as follows:

             (((1))) The department of health shall, before ((May 1, 1992)) July 1, 1995, form an advisory committee, in coordination with the department of ecology and the department of agriculture, which will provide technical assistance in the development of standards, procedures, and guidelines required by this chapter. Such committee shall be composed of individuals from the public water and wastewater utilities, landscaping enhancement industry, commercial and industrial application community, and any other persons deemed technically helpful by the department of health.

             (((2) The department of health shall report to the joint select committee on water resource policy by December 1, 1992, on the fee structure which has been recommended under RCW 90.46.030(3) and review fees authorized under RCW 90.46.040(3).))


             NEW SECTION. Sec. 11. Sections 1 through 10 of this act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule or order adopted under those sections, nor as affecting any proceeding instituted under those sections.


             Sec. 12. RCW 90.03.380 and 1991 c 347 s 15 are each amended to read as follows:

             (1) The right to the use of water which has been applied to a beneficial use in the state shall be and remain appurtenant to the land or place upon which the same is used: PROVIDED, HOWEVER, That ((said)) the right may be transferred to another or to others and become appurtenant to any other land or place of use without loss of priority of right theretofore established if such change can be made without detriment or injury to existing rights. The point of diversion of water for beneficial use or the purpose of use may be changed, if such change can be made without detriment or injury to existing rights. Before any transfer of such right to use water or change of the point of diversion of water or change of purpose of use can be made, any person having an interest in the transfer or change, shall file a written application therefor with the department, and ((said)) the application shall not be granted until notice of ((said)) the application ((shall be)) is published as provided in RCW 90.03.280. If it shall appear that such transfer or such change may be made without injury or detriment to existing rights, the department shall issue to the applicant a certificate in duplicate granting the right for such transfer or for such change of point of diversion or of use. The certificate so issued shall be filed and be made a record with the department and the duplicate certificate issued to the applicant may be filed with the county auditor in like manner and with the same effect as provided in the original certificate or permit to divert water.

             (2) If an application for change proposes to transfer water rights from one irrigation district to another, the department shall, before publication of notice, receive concurrence from each of the irrigation districts that such transfer or change will not adversely affect the ability to deliver water to other landowners or impair the financial or operational integrity of either of the districts.

             (3) A change in place of use by an individual water user or users of water provided by an irrigation district need only receive approval for the change from the board of directors of the district if the use of water continues within the irrigation district. The board of directors may approve such a change if the board determines that the change: Will not adversely affect the district's ability to deliver water to other landowners; will not require the construction by the district of diversion or drainage facilities unless the board finds that the construction by the district is in the interest of the district; will not impair the financial or operational integrity of the district; and is consistent with the contractual obligations of the district.

             (4) Subsections (1), (2), and (3) of this section do not apply to a change regarding a portion of the water governed by a water right that is made surplus to the beneficial uses exercised under the right through the implementation of practices or technologies, including but not limited to conveyance practices or technologies, which are more efficient or more water use efficient than those under which the right was perfected or through a change in the crops grown under the water right. The use within an irrigation district of water supplied by the district and made surplus as provided in this subsection shall be regulated solely as provided by the board of directors of the irrigation district except as follows: Such a use requires the approval of the board of directors of the irrigation district or must otherwise be authorized by the board; the board may approve or authorize such a use only if the use does not impair the financial or operational integrity of the district; and water made surplus through a change in the crops grown with district-supplied water is not available for use as a matter of right by the individual water user making the change, but may be used by the board for the benefit of the district generally. The district's board of directors may approve or otherwise authorize under this subsection uses of such surplus water that result in the total irrigated acreage within the district exceeding the irrigated acreage recorded with the department for the district's water right if the board notifies the department of the change in the irrigated acreage within the district. Such a notification provides a change in the district's water right and, upon receiving the notification, the department shall revise its records for the district's right to reflect the change. A change or use authorized by or under this subsection shall be made without loss of priority of the right. The use of water other than irrigation district-supplied water that is made surplus as provided in this subsection is governed by section 13 of this act.

             (5) This section shall not apply to trust water rights acquired by the state through the funding of water conservation projects under chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.

             (6) The department may not initiate relinquishment proceedings under chapter 90.14 RCW regarding a water right for which an application for a transfer or change is filed under this section for a period of two years after the date the department receives the filing.


             NEW SECTION. Sec. 13. A new section is added to chapter 90.03 RCW to read as follows:

             If a portion of the water governed by a water right is made surplus to the beneficial uses exercised under the right through the implementation of practices or technologies, including but not limited to conveyance practices or technologies, which are more efficient or more water use efficient than those under which the right was perfected or through a change in the crops grown under the water right, the right to use the surplus water may be changed to use on other lands owned by the holder of the water right that are contiguous to the lands upon which the use of the water was authorized by the right before such a change. Such a change shall be made without loss of priority of the right. The holder of the water right shall notify the department of such a change. The notification provides a change in the holder's water right and, upon receiving the notification, the department shall revise its records for the water right to reflect the change.

             This section does not apply to water supplied by an irrigation district.


             Sec. 14. RCW 90.44.100 and 1987 c 109 s 113 are each amended to read as follows:

             (1) After an application to, and upon the issuance by the department of an amendment to the appropriate permit or certificate of ground water right, the holder of a valid right to withdraw public ground waters may, without losing his priority of right, construct wells or other means of withdrawal at a new location in substitution for or in addition to those at the original location, or he may change the manner or the place of use of the water((: PROVIDED, HOWEVER, That such)). An amendment shall be issued only after publication of notice of the application and findings as prescribed in the case of an original application. Such amendment shall be issued by the department only on the conditions that: (((1))) (a) The additional or substitute well or wells shall tap the same body of public ground water as the original well or wells; (((2))) (b) use of the original well or wells shall be discontinued upon construction of the substitute well or wells; (((3))) (c) the construction of an additional well or wells shall not enlarge the right conveyed by the original permit or certificate; and (((4))) (d) other existing rights shall not be impaired. The department may specify an approved manner of construction and shall require a showing of compliance with the terms of the amendment, as provided in RCW 90.44.080 in the case of an original permit.

             (2) This section does not apply to a change in use of a portion of the water governed by a ground water right that is made surplus to the beneficial uses exercised under the right through the implementation of practices or technologies, including but not limited to conveyance practices or technologies, which are more efficient or more water use efficient than those under which the right was perfected or through a change in the crops grown under the water right. RCW 90.03.380(4) and section 13 of this act apply to water made surplus as provided in this subsection.

             (3) The department may not initiate relinquishment proceedings under chapter 90.14 RCW regarding a water right for which an application for a transfer or change is filed under this section for a period of two years after the date the department receives the filing.


             Sec. 15. RCW 90.03.290 and 1994 c 264 s 84 are each amended to read as follows:

             When an application complying with the provisions of this chapter and with the rules and regulations of the department has been filed, the same shall be placed on record with the department, and it shall be its duty to investigate the application, and determine what water, if any, is available for appropriation, and find and determine to what beneficial use or uses it can be applied. If it is proposed to appropriate water for irrigation purposes, the department shall investigate, determine and find what lands are capable of irrigation by means of water found available for appropriation. If it is proposed to appropriate water for the purpose of power development, the department shall investigate, determine and find whether the proposed development is likely to prove detrimental to the public interest, having in mind the highest feasible use of the waters belonging to the public. If the application does not contain, and the applicant does not promptly furnish sufficient information on which to base such findings, the department may issue a preliminary permit, for a period of not to exceed three years, requiring the applicant to make such surveys, investigations, studies, and progress reports, as in the opinion of the department may be necessary. If the applicant fails to comply with the conditions of the preliminary permit, it and the application or applications on which it is based shall be automatically canceled and the applicant so notified. If the holder of a preliminary permit shall, before its expiration, file with the department a verified report of expenditures made and work done under the preliminary permit, which, in the opinion of the department, establishes the good faith, intent and ability of the applicant to carry on the proposed development, the preliminary permit may, with the approval of the governor, be extended, but not to exceed a maximum period of five years from the date of the issuance of the preliminary permit. The department shall make and file as part of the record in the matter, written findings of fact concerning all things investigated, and if it shall find that there is water available for appropriation for a beneficial use, and the appropriation thereof as proposed in the application will not impair existing rights or be detrimental to the public welfare, it shall issue a permit stating the amount of water to which the applicant shall be entitled and the beneficial use or uses to which it may be applied: PROVIDED, That where the water applied for is to be used for irrigation purposes, it shall become appurtenant only to such land as may be reclaimed thereby to the full extent of the soil for agricultural purposes. But where there is no unappropriated water in the proposed source of supply, or where the proposed use conflicts with existing rights, or threatens to prove detrimental to the public interest, having due regard to the highest feasible development of the use of the waters belonging to the public, it shall be duty of the department to reject such application and to refuse to issue the permit asked for. If the permit is refused because of conflict with existing rights and such applicant shall acquire same by purchase or condemnation under RCW 90.03.040, the department may thereupon grant such permit. Any application may be approved for a less amount of water than that applied for, if there exists substantial reason therefor, and in any event shall not be approved for more water than can be applied to beneficial use for the purposes named in the application. In determining whether or not a permit shall issue upon any application, it shall be the duty of the department to investigate all facts relevant and material to the application. After the department approves said application in whole or in part and before any permit shall be issued thereon to the applicant, such applicant shall pay the fee provided in RCW 90.03.470: PROVIDED FURTHER, That in the event a permit is issued by the department upon any application, it shall be its duty to notify the director of fish and wildlife of such issuance.

             This section does not apply to changes made under section 13 of this act or to applications for transfers or changes made under RCW 90.03.380 or 90.44.100.


             Sec. 16. RCW 90.44.445 and 1993 c 99 s 1 are each amended to read as follows:

             In any acreage expansion program adopted by the department as an element of a ground water management program, the authorization for a water right certificate holder to participate in the program shall be on an annual basis for the first two years. After the two-year period, the department may authorize participation for ten-year periods. The department may authorize participation for ten-year periods for certificate holders who have already participated in an acreage expansion program for two years. The department may require annual certification that the certificate holder has complied with all requirements of the program. The department may terminate the authority of a certificate holder to participate in the program for one calendar year if the certificate holder fails to comply with the requirements of the program.

             This section applies only in an area with a ground water area or subarea management program in effect on the effective date of this section. The provisions of section 13 of this act, RCW 90.03.380, and 90.44.100 apply to transfers, changes, and amendments to permits or rights for the beneficial use of ground water in any other area.


             NEW SECTION. Sec. 17. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."


             On page 1, line 2 of the title, after "wastewater;" strike the remainder of the title and insert "amending RCW 90.46.005, 90.46.010, 90.46.050, 90.03.380, 90.44.100, 90.03.290, and 90.44.445; adding new sections to chapter 90.46 RCW; adding a new section to chapter 90.03 RCW; creating new sections; and declaring an emergency."


POINT OF ORDER


             Representative Rust: Thank you Mr. Speaker. I would request a ruling on the scope and object of the amendment.


             There being no objection, the House deferred further consideration of Substitute Senate Bill No. 5606 and the bill held it's place on the second reading calendar.


             SENATE BILL NO. 5142, by Senators Quigley and Sellar

 

Extending authority to enter into payment agreements.


             The bill was read the second time.


             There being no objection, the committee amendment was adopted. Committee on Financial Institutions & Insurance recommendation: Majority, do pass as amended. (For committee amendment see Journal, 74th Day, March 23, 1995.)


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives L. Thomas and Wolfe spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Senate Bill No. 5142 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5142 as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Appelwick and Foreman - 2.


             Senate Bill No. 5142, as amended by the House, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL


April 12, 1995


Mr. Speaker:


             Under suspension of rules, SUBSTITUTE HOUSE BILL NO. 1248 was returned to second reading for further amendment. The Senate passed the bill with the following additional amendment:


             On page 1, line 18, after "commenced" strike "after the effective date of this act and"


             On page 2, beginning on line 20, after "made" strike all material through "made" on line 22


and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


MOTION


             Representative Van Luven moved that the House concur in the Senate amendments to Substitute House Bill No. 1248 and pass the bill as amended by the Senate.


             Representatives Van Luven, Robertson and Lisk spoke in favor of the motion.


             There being no objection, the House deferred further consideration of Substitute House Bill No. 1248.


             There being no objection, the House considered Engrossed Senate Bill No. 5529.


             ENGROSSED SENATE BILL NO. 5529, by Senators McAuliffe, Rinehart, Moyer, McDonald, Wojahn and Winsley; by request of Office of Financial Management

 

Changing school district levy provisions.


             The bill was read the second time.


             There being no objection, the committee amendment was adopted. Committee on Appropriations recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, April 3, 1995.)


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Silver, Cole, Brumsickle, Ebersole, Benton, Carrell and B. Thomas spoke in favor of passage of the bill.


             Representatives Carlson, Hickel and Hargrove spoke against passage of the bill.


             Representative Silver again spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Senate Bill No. 5529 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5529 as amended by the House, and the bill passed the House by the following vote: Yeas - 79, Nays - 16, Absent - 0, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Cairnes, Campbell, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Grant, Hankins, Hatfield, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Kremen, Lambert, Mason, Mastin, McMahan, Mielke, Morris, Patterson, Pelesky, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Silver, Skinner, Smith, Sommers, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 79.

             Voting nay: Representatives Buck, Carlson, Fuhrman, Goldsmith, Hargrove, Hickel, Honeyford, Koster, Lisk, McMorris, Mitchell, Mulliken, Ogden, Pennington, Sherstad and Stevens - 16.

             Excused: Representatives Appelwick and Foreman - 2.


             Engrossed Senate Bill No. 5529, as amended by the House, having received the constitutional majority, was declared passed.


             SENATE BILL NO. 5748, by Senators Prentice, Fraser, Sellar, Rinehart, Prince, Smith, C. Anderson, Franklin, Kohl, Heavey, Pelz and Wojahn; by request of Human Rights Commission

 

Expanding the state law against discrimination.


             The bill was read the second time.


             With the consent of the House, amendment number 781 to Senate Bill No. 5748 was withdrawn.


             Representative Sheahan moved adoption of the following amendment by Representative Sheahan:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 49.60.010 and 1993 c 510 s 1 are each amended to read as follows:

             This chapter shall be known as the "law against discrimination". It is an exercise of the police power of the state for the protection of the public welfare, health, and peace of the people of this state, and in fulfillment of the provisions of the Constitution of this state concerning civil rights. The legislature hereby finds and declares that practices of discrimination against any of its inhabitants because of race, creed, color, national origin, families with children, sex, marital status, age, or the presence of any sensory, mental, or physical disability or the use of a trained guide dog or service dog by a disabled person are a matter of state concern, that such discrimination threatens not only the rights and proper privileges of its inhabitants but menaces the institutions and foundation of a free democratic state. A state agency is herein created with powers with respect to elimination and prevention of discrimination in employment, in credit and insurance transactions, in places of public resort, accommodation, or amusement, and in real property transactions because of race, creed, color, national origin, families with children, sex, marital status, age, or the presence of any sensory, mental, or physical disability or the use of a trained guide dog or service dog by a disabled person; and the commission established hereunder is hereby given general jurisdiction and power for such purposes.


             Sec. 2. RCW 49.60.040 and 1993 c 510 s 4 and 1993 c 69 s 3 are each reenacted and amended to read as follows:

             As used in this chapter:

             (1) "Person" includes one or more individuals, partnerships, associations, organizations, corporations, cooperatives, legal representatives, trustees and receivers, or any group of persons; it includes any owner, lessee, proprietor, manager, agent, or employee, whether one or more natural persons; and further includes any political or civil subdivisions of the state and any agency or instrumentality of the state or of any political or civil subdivision thereof;

             (2) "Commission" means the Washington state human rights commission;

             (3) "Employer" includes any person acting in the interest of an employer, directly or indirectly, who employs eight or more persons, and does not include any religious or sectarian organization not organized for private profit;

             (4) "Employee" does not include any individual employed by his or her parents, spouse, or child, or in the domestic service of any person;

             (5) "Labor organization" includes any organization which exists for the purpose, in whole or in part, of dealing with employers concerning grievances or terms or conditions of employment, or for other mutual aid or protection in connection with employment;

             (6) "Employment agency" includes any person undertaking with or without compensation to recruit, procure, refer, or place employees for an employer;

             (7) "Marital status" means the legal status of being married, single, separated, divorced, or widowed;

             (8) "National origin" includes "ancestry";

             (9) "Full enjoyment of" includes the right to purchase any service, commodity, or article of personal property offered or sold on, or by, any establishment to the public, and the admission of any person to accommodations, advantages, facilities, or privileges of any place of public resort, accommodation, assemblage, or amusement, without acts directly or indirectly causing persons of any particular race, creed, color, sex, national origin, or with any sensory, mental, or physical disability, or the use of a trained guide dog or service dog by a disabled person, to be treated as not welcome, accepted, desired, or solicited;

             (10) "Any place of public resort, accommodation, assemblage, or amusement" includes, but is not limited to, any place, licensed or unlicensed, kept for gain, hire, or reward, or where charges are made for admission, service, occupancy, or use of any property or facilities, whether conducted for the entertainment, housing, or lodging of transient guests, or for the benefit, use, or accommodation of those seeking health, recreation, or rest, or for the burial or other disposition of human remains, or for the sale of goods, merchandise, services, or personal property, or for the rendering of personal services, or for public conveyance or transportation on land, water, or in the air, including the stations and terminals thereof and the garaging of vehicles, or where food or beverages of any kind are sold for consumption on the premises, or where public amusement, entertainment, sports, or recreation of any kind is offered with or without charge, or where medical service or care is made available, or where the public gathers, congregates, or assembles for amusement, recreation, or public purposes, or public halls, public elevators, and public washrooms of buildings and structures occupied by two or more tenants, or by the owner and one or more tenants, or any public library or educational institution, or schools of special instruction, or nursery schools, or day care centers or children's camps: PROVIDED, That nothing contained in this definition shall be construed to include or apply to any institute, bona fide club, or place of accommodation, which is by its nature distinctly private, including fraternal organizations, though where public use is permitted that use shall be covered by this chapter; nor shall anything contained in this definition apply to any educational facility, columbarium, crematory, mausoleum, or cemetery operated or maintained by a bona fide religious or sectarian institution;

             (11) "Real property" includes buildings, structures, dwellings, real estate, lands, tenements, leaseholds, interests in real estate cooperatives, condominiums, and hereditaments, corporeal and incorporeal, or any interest therein;

             (12) "Real estate transaction" includes the sale, appraisal, brokering, exchange, purchase, rental, or lease of real property, transacting or applying for a real estate loan, or the provision of brokerage services;

             (13) "Dwelling" means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land that is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof;

             (14) "Sex" means gender;

             (15) "Aggrieved person" means any person who: (a) Claims to have been injured by an unfair practice in a real estate transaction; or (b) believes that he or she will be injured by an unfair practice in a real estate transaction that is about to occur;

             (16) "Complainant" means the person who files a complaint in a real estate transaction;

             (17) "Respondent" means any person accused in a complaint or amended complaint of an unfair practice in a real estate transaction;

             (18) "Credit transaction" includes any open or closed end credit transaction, whether in the nature of a loan, retail installment transaction, credit card issue or charge, or otherwise, and whether for personal or for business purposes, in which a service, finance, or interest charge is imposed, or which provides for repayment in scheduled payments, when such credit is extended in the regular course of any trade or commerce, including but not limited to transactions by banks, savings and loan associations or other financial lending institutions of whatever nature, stock brokers, or by a merchant or mercantile establishment which as part of its ordinary business permits or provides that payment for purchases of property or service therefrom may be deferred;

             (((18))) (19) "Families with children status" means ((when)) one or more individuals who have not attained the age of eighteen years ((is)) being domiciled with a parent or another person having legal custody of such individual or individuals, or with the designee of such parent or other person having such legal custody, with the written permission of such parent or other person. Families with children status also applies to any person who is pregnant or is in the process of securing legal custody ((or guardianship)) of any individual who has not attained the age of eighteen years;

             (20) "Covered multifamily dwelling" means: (a) Buildings consisting of four or more dwelling units if such buildings have one or more elevators; and (b) ground floor dwelling units in other buildings consisting of four or more dwelling units;

             (21) "Premises" means the interior or exterior spaces, parts, components, or elements of a building, including individual dwelling units and the public and common use areas of a building.


             Sec. 3. RCW 49.60.222 and 1993 c 510 s 17 and 1993 c 69 s 5 are each reenacted and amended to read as follows:

             (1) It is an unfair practice for any person, whether acting for himself, herself, or another, because of sex, marital status, race, creed, color, national origin, families with children status, the presence of any sensory, mental, or physical disability, or the use of a trained guide dog or service dog by a disabled person:

             (a) To refuse to engage in a real estate transaction with a person;

             (b) To discriminate against a person in the terms, conditions, or privileges of a real estate transaction or in the furnishing of facilities or services in connection therewith;

             (c) To refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;

             (d) To refuse to negotiate for a real estate transaction with a person;

             (e) To represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to his or her attention, or to refuse to permit the person to inspect real property;

             (f) To discriminate in the sale or rental, or to otherwise make unavailable or deny a dwelling, to any person ((because of a disability of that person,)); or to a person residing in or intending to reside in that dwelling after it is sold, rented, or made ((unavailable)) available; or to any person associated with the person buying or renting;

             (g) To make, print, circulate, post, or mail, or cause to be so made or published a statement, advertisement, or sign, or to use a form of application for a real estate transaction, or to make a record or inquiry in connection with a prospective real estate transaction, which indicates, directly or indirectly, an intent to make a limitation, specification, or discrimination with respect thereto;

             (h) To offer, solicit, accept, use, or retain a listing of real property with the understanding that a person may be discriminated against in a real estate transaction or in the furnishing of facilities or services in connection therewith;

             (i) To expel a person from occupancy of real property;

             (j) To discriminate in the course of negotiating, executing, or financing a real estate transaction whether by mortgage, deed of trust, contract, or other instrument imposing a lien or other security in real property, or in negotiating or executing any item or service related thereto including issuance of title insurance, mortgage insurance, loan guarantee, or other aspect of the transaction. Nothing in this section shall limit the effect of RCW 49.60.176 relating to unfair practices in credit transactions; or

             (k) To attempt to do any of the unfair practices defined in this section.

             (2) For the purposes of this chapter discrimination based on the presence of any sensory, mental, or physical disability or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person includes:

             (a) A refusal to permit, at the expense of the disabled person, reasonable modifications of existing ((dwelling)) premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the dwelling, except that, in the case of a rental, the landlord may, where it is reasonable to do so, condition permission for a modification on the renter agreeing to restore the interior of the dwelling to the condition that existed before the modification, reasonable wear and tear excepted;

             (b) To refuse to make reasonable accommodation in rules, policies, practices, or services when such accommodations may be necessary to afford a person with the presence of any sensory, mental, or physical disability and/or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person equal opportunity to use and enjoy a dwelling; or

             (c) To fail to design and construct covered multifamily dwellings and premises in conformance with the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.) and all other applicable laws or regulations pertaining to access by persons with any sensory, mental, or physical disability or use of a trained guide dog or service dog. Whenever the requirements of applicable laws or regulations differ, the requirements which require greater accessibility for persons with any sensory, mental, or physical disability shall govern.

             ((For purposes of this subsection (2), "dwelling" means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by four or more families, and any vacant land that is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof.))

             Nothing in (a) or (b) of this subsection shall apply to: (i) a single-family house rented or leased by the owner if the owner does not own or have an interest in the proceeds of the rental or lease of more than three such single-family houses at one time, the rental or lease occurred without the use of a real estate broker or salesperson, as defined in RCW 18.85.010, and the rental or lease occurred without the publication, posting, or mailing of any advertisement, sign, or statement in violation of subsection (1)(g) of this section; or (ii) rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other if the owner maintains and occupies one of the rooms or units as his or her residence.

             (3) Notwithstanding any other provision of this chapter, it shall not be an unfair practice or a denial of civil rights for any public or private educational institution to separate the sexes or give preference to or limit use of dormitories, residence halls, or other student housing to persons of one sex or to make distinctions on the basis of marital or families with children status.

             (4) Except pursuant to subsection (2)(a) of this section, this section shall not be construed to require structural changes, modifications, or additions to make facilities accessible to a disabled person except as otherwise required by law. Nothing in this section affects the rights, responsibilities, and remedies of landlords and tenants pursuant to chapter 59.18 or 59.20 RCW, including the right to post and enforce reasonable rules of conduct and safety for all tenants and their guests, provided that chapters 59.18 and 59.20 RCW are only affected to the extent they are inconsistent with the nondiscrimination requirements of this chapter. Nothing in this section limits the applicability of any reasonable federal, state, or local restrictions regarding the maximum number of occupants permitted to occupy a dwelling.

             (5) Notwithstanding any other provision of this chapter, it shall not be an unfair practice for any public establishment providing for accommodations offered for the full enjoyment of transient guests as defined by RCW 9.91.010(1)(c) to make distinctions on the basis of families with children status. Nothing in this section shall limit the effect of RCW 49.60.215 relating to unfair practices in places of public accommodation.

             (6) Nothing in this chapter prohibiting discrimination based on families with children status applies to housing for older persons as defined by the federal fair housing amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through (3). Nothing in this chapter authorizes requirements for housing for older persons different than the requirements in the federal fair housing amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through (3).


             Sec. 4. RCW 49.60.225 and 1993 c 510 s 20 and 1993 c 69 s 9 are each reenacted and amended to read as follows:

             (1) When a reasonable cause determination has been made under RCW 49.60.240 that an unfair practice in a real estate transaction has been committed and a finding has been made that the respondent has engaged in any unfair practice under RCW 49.60.250, the administrative law judge shall promptly issue an order for such relief suffered by the aggrieved person as may be appropriate, which may include actual damages as provided by ((Title VIII of the United States civil rights act of 1964, as amended, and)) the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.), and injunctive or other equitable relief. Such order may, to further the public interest, assess a civil penalty against the respondent:

             (a) In an amount up to ten thousand dollars if the respondent has not been determined to have committed any prior unfair practice in a real estate transaction;

             (b) In an amount up to twenty-five thousand dollars if the respondent has been determined to have committed one other unfair practice in a real estate transaction during the five-year period ending on the date of the filing of this charge; or

             (c) In an amount up to fifty thousand dollars if the respondent has been determined to have committed two or more unfair practices in a real estate transaction during the seven-year period ending on the date of the filing of this charge, for loss of the right secured by RCW 49.60.010, 49.60.030, 49.60.040, and 49.60.222 through 49.60.224, as now or hereafter amended, to be free from discrimination in real property transactions because of sex, marital status, race, creed, color, national origin, families with children status, or the presence of any sensory, mental, or physical disability or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person. Enforcement of the order and appeal therefrom by the complainant or respondent may be made as provided in RCW 49.60.260 and 49.60.270. If acts constituting the unfair practice in a real estate transaction that is the object of the charge are determined to have been committed by the same natural person who has been previously determined to have committed acts constituting an unfair practice in a real estate transaction, then the civil penalty of up to fifty thousand dollars may be imposed without regard to the period of time within which any subsequent unfair practice in a real estate transaction occurred. All civil penalties assessed under this section shall be paid into the state treasury and credited to the general fund.

             (2) Such order shall not affect any contract, sale, conveyance, encumbrance, or lease consummated before the issuance of an order that involves a bona fide purchaser, encumbrancer, or tenant who does not have actual notice of the charge filed under this chapter.

             (3) Notwithstanding any other provision of this chapter, persons awarded damages under this section may not receive additional damages pursuant to RCW 49.60.250.


             Sec. 5. RCW 49.60.240 and 1993 c 510 s 22 and 1993 c 69 s 12 are each reenacted and amended to read as follows:

             After the filing of any complaint, the chairperson of the commission shall refer it to the appropriate section of the commission's staff for prompt investigation and ascertainment of the facts alleged in the complaint. The investigation shall be limited to the alleged facts contained in the complaint. The results of the investigation shall be reduced to written findings of fact, and a finding shall be made that there is or that there is not reasonable cause for believing that an unfair practice has been or is being committed. A copy of said findings shall be provided to the complainant and to the person named in such complaint, hereinafter referred to as the respondent.

             If the finding is made that there is reasonable cause for believing that an unfair practice has been or is being committed, the commission's staff shall immediately endeavor to eliminate the unfair practice by conference, conciliation, and persuasion.

             If an agreement is reached for the elimination of such unfair practice as a result of such conference, conciliation, and persuasion, the agreement shall be reduced to writing and signed by the respondent, and an order shall be entered by the commission setting forth the terms of said agreement. No order shall be entered by the commission at this stage of the proceedings except upon such written agreement, except that during the period beginning with the filing of complaints alleging an unfair practice with respect to real estate transactions pursuant to RCW 49.60.222 through 49.60.225, and ending with the filing of a finding of reasonable cause or a dismissal by the commission, the commission staff shall, to the extent feasible, engage in conciliation with respect to such complaint. Any conciliation agreement arising out of conciliation efforts by the commission shall be an agreement between the respondent and the complainant and shall be subject to the approval of the commission. Each conciliation agreement shall be made public unless the complainant and respondent otherwise agree and the commission determines that disclosure is not required to further the purposes of this chapter.

             If no such agreement can be reached, a finding to that effect shall be made and reduced to writing, with a copy thereof provided to the complainant and the respondent.

             The commission may adopt rules, including procedural time requirements, for processing complaints alleging an unfair practice with respect to real estate transactions pursuant to RCW 49.60.222 through 49.60.225 and which may be consistent with the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.), but which in no case shall exceed or be more restrictive than the requirements or standards of such act.


             Sec. 6. RCW 49.60.260 and 1993 c 69 s 15 are each amended to read as follows:

             (1) The commission or any person entitled to relief of a final order may petition the court within the county wherein any unfair practice occurred or wherein any person charged with an unfair practice resides or transacts business for the enforcement of any final order which is not complied with and is issued by the commission or an administrative law judge under the provisions of this chapter and for appropriate temporary relief or a restraining order, and shall certify and file in court the final order sought to be enforced. Within five days after filing such petition in court, the commission or any person entitled to relief of a final order shall cause a notice of the petition to be sent by certified mail to all parties or their representatives.

             (2) If within sixty days after the date the administrative law judge's order concerning an unfair practice in a real estate transaction is entered, no petition has been filed under subsection (1) of this section and the commission has not sought enforcement of the final order under this section, any person entitled to relief under the final order may petition for a decree enforcing the order in the superior courts of the state of Washington for the county in which the unfair practice in a real estate transaction under RCW 49.60.222 through 49.60.224 is alleged to have occurred.

             (3) From the time the petition is filed, the court shall have jurisdiction of the proceedings and of the questions determined thereon, and shall have the power to grant such temporary relief or restraining order as it deems just and suitable.

             (4) If the petition shows that there is a final order issued by the commission or administrative law judge under RCW 49.60.240 or 49.60.250 and that the order has not been complied with in whole or in part, the court shall issue an order directing the person who is alleged to have not complied with the administrative order to appear in court at a time designated in the order, not less than ten days from the date thereof, and show cause why the administrative order should not be enforced according to the terms. The commission or any person entitled to relief of any final order shall immediately serve the noncomplying party with a copy of the court order and the petition.

             (5) The administrative order shall be enforced by the court if the person does not appear, or if the person appears and the court finds that:

             (a) The order is regular on its face;

             (b) The order has not been complied with; and

             (c) The person's answer discloses no valid reason why the order should not be enforced, or that the reason given in the person's answer could have been raised by review under RCW 34.05.510 through 34.05.598, and the person has given no valid excuse for failing to use that remedy.

             (6) The jurisdiction of the court shall be exclusive and its judgment and decree shall be final, except that the same shall be subject to appellate review by the supreme court or the court of appeals, on appeal, by either party, irrespective of the nature of the decree or judgment. The review shall be taken and prosecuted in the same manner and form and with the same effect as is provided in other cases.


             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 July 1, 1995."


             Representatives Sheahan and Costa spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Sheahan and Costa spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Senate Bill No. 5748 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5748, as amended by the House and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Appelwick and Foreman - 2.


             Senate Bill No. 5748, as amended by the House, having received the constitutional majority, was declared passed.


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


             The Speaker called the House to order.


             ENGROSSED SUBSTITUTE SENATE BILL NO. 5219, by Senate Committee on Law & Justice (originally sponsored by Senators Smith, Roach, C. Anderson, Long, Haugen, McCaslin, Spanel, Drew, Winsley, Kohl and Sheldon)

 

Changing domestic violence provisions.


             The bill was read the second time.


             Representative Costa moved that the House not adopt the Appropriation Committee Amendment. Committee on Appropriations recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, April 3, 1995.)


             Representative Sheahan moved that the House adopt the Appropriations Committee Amendment.


             Representatives Sheahan spoke in favor of adopting the Appropriations Committee amendment.


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


             Representatives Costa, Dickerson and Veloria spoke against adopting the Appropriations Committee Amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the Appropriations Committee Amendment to Engrossed Substitute Senate Bill No. 5219 and the Appropriations Committee Amendment was not adopted by the following vote: Yeas - 33, Nays - 64, Absent - 0, Excused - 0.

             Voting yea: Representatives Backlund, Beeksma, Benton, Boldt, Brumsickle, Chandler, Clements, Crouse, Elliot, Foreman, Fuhrman, Goldsmith, Hargrove, Hickel, Horn, Huff, Johnson, McMahan, McMorris, Mielke, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Talcott, Thomas, B., Van Luven and Mr. Speaker - 33.

             Voting nay: Representatives Appelwick, Ballasiotes, Basich, Blanton, Brown, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chappell, Chopp, Cody, Cole, Conway, Cooke, Costa, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Fisher, G., Fisher, R., Grant, Hankins, Hatfield, Honeyford, Hymes, Jacobsen, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Scott, Sheldon, Smith, Sommers, Stevens, Thibaudeau, Thomas, L., Thompson, Tokuda, Valle, Veloria and Wolfe - 64.


             Representative Cooke moved adoption of the following amendment by Representative Cooke:


             On page 44, after line 24, insert the following:


             "Sec. 38. RCW 36.18.010 and 1991 c 26 s 2 are each amended to read as follows:

             County auditors or recording officers shall collect the following fees for their official services:

             For recording instruments, for the first page, legal size (eight and one-half by fourteen inches or less), five dollars; for each additional legal size page, one dollar; the fee for recording multiple transactions contained in one instrument will be calculated individually for each transaction requiring separate indexing as required under RCW 65.04.050;

             For preparing and certifying copies, for the first legal size page, three dollars; for each additional legal size page, one dollar;

             For preparing noncertified copies, for each legal size page, one dollar;

             For administering an oath or taking an affidavit, with or without seal, two dollars;

             For issuing a marriage license, eight dollars, (this fee includes taking necessary affidavits, filing returns, indexing, and transmittal of a record of the marriage to the state registrar of vital statistics) plus an additional five-dollar fee for use and support of the prevention of child abuse and neglect activities to be transmitted monthly to the state treasurer and deposited in the state general fund((, which five-dollar fee shall expire June 30, 1995,)) plus an additional ten-dollar fee to be transmitted monthly to the state treasurer and deposited in the state general fund. The legislature intends to appropriate an amount at least equal to the revenue generated by this fee for the purposes of the displaced homemaker act, chapter 28B.04 RCW;

             For searching records per hour, eight dollars;

             For recording plats, fifty cents for each lot except cemetery plats for which the charge shall be twenty-five cents per lot; also one dollar for each acknowledgment, dedication, and description: PROVIDED, That there shall be a minimum fee of twenty-five dollars per plat;

             For recording of miscellaneous records, not listed above, for first legal size page, five dollars; for each additional legal size page, one dollar;

             For modernization and improvement of the recording and indexing system, a surcharge as provided in RCW 36.22.170."


             Renumber the remaining section consecutively.


             On page 44, after line 28, insert the following:


             "NEW SECTION. Sec. 39. Section 38 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.


             NEW SECTION. Sec. 40. 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 6 of the title, after "10.14.080," strike "and" and after "26.50.150" insert ", and 36.18.010"


             On page 1, line 9 of the title, after "section;" strike "and" and after "penalties" insert "; and declaring an emergency"


             Representatives Cooke, Thibaudeau and Sheahan spoke in favor of the adoption of the amendment.


             The amendment was adopted.


MOTION


             On motion of Representative Patterson, Representatives Brown and Basich were excused.


             With the consent of the House, amendment number 753 to Engrossed Substitute Senate Bill No. 5219 was withdrawn.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Sheahan, Romero, Costa, Conway and Chopp spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5219 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5219 as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Brown - 2.


             Engrossed Substitute Senate Bill No. 5219, as amended by the House, having received the constitutional majority, was declared passed.


             SUBSTITUTE SENATE BILL NO. 5537, by Senate Committee on Education (originally sponsored by Senators McAuliffe, Pelz, Rasmussen, Kohl and Wojahn; by request of Board of Education)

 

Changing teacher preparation provisions.


             The bill was read the second time.


             There being no objection, the committee amendment was moved. Committee on Education recommendation: Majority, do pass as amended. (For committee amendment see Journal, 78th Day, March 27, 1995.)


             Representative Brumsickle moved adoption of the following amendment to the committee amendment by Representative Brumsickle:


             On page 1, beginning on line 28, strike all of Section 2


             On page 4, beginning on line 28, strike all of Subsection 5


             Renumber remaining subsections, correct internal references, and correct the title accordingly.


             Representative Brumsickle spoke in favor of the adoption of the amendment to the committee amendment.


             Representative Cole spoke against the adoption of the amendment to the committee amendment.


             The amendment to the committee amendment was adopted.


             The committee amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Brumsickle spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5537 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5537 as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Brown - 2.


             Substitute Senate Bill No. 5537, as amended by the House, having received the constitutional majority, was declared passed.


             SENATE BILL NO. 5755, by Senators Loveland, Newhouse, Spanel, Rasmussen and Haugen

 

Concerning the taxation of property donated to a nonprofit entity.


             The bill was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives B. Thomas, Morris and Carlson spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Senate Bill No. 5755.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5755, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Brown - 2.


             Senate Bill No. 5755, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Substitute House Bill No. 2087.


             With the consent of the House, amendment number 785 to Substitute House Bill No. 2087 was withdrawn.


             Representative Carrell moved adoption of the following amendment by Representative Carrell:


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

             "NEW SECTION. Sec. 3. A new section is added to chapter 28A.410 RCW to read as follows:

             In carrying out its duties and responsibilities under RCW 28A.410.010, after September 1, 1995, the state board of education may require certificated personnel who have obtained a continuing certificate to complete continuing education coursework as a condition for retaining his or her continuing certificate only if the credits earned through completion of the coursework may be used to advance the individual on the salary schedule of his or her school district."


Correct the title accordingly.


             Representatives Carrell and Morris spoke in favor of the adoption of the amendment.


             Representative Cole spoke against the adoption of the amendment.


             Representative Carrell again spoke in favor of adoption of the amendment.


             A division was called. The Speaker called on the House to divide. The results of the division was: 66-YEAS, 29-NAYS. The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Brumsickle and Carrell spoke in favor of passage of the bill.


             Representative Quall spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2087.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2087, and the bill passed the House by the following vote: Yeas - 60, Nays - 35, Absent - 0, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 60.

             Voting nay: Representatives Appelwick, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Pennington, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representatives Basich and Brown - 2.


             Engrossed Substitute House Bill No. 2087, having received the constitutional majority, was declared passed.


             SENATE BILL NO. 5501, by Senators Bauer, Rinehart, Oke, Prince and Wojahn; by request of Legislative Budget Committee

 

Streamlining hospital regulation and inspection.


             The bill was read the second time.


             Representative Sherstad moved adoption of the following amendment by Representative Sherstad:


             On page 4, after line 4, insert the following:


             "Sec. 7. RCW 70.38.025 and 1991 c 158 s 1 are each amended to read as follows:

             When used in this chapter, the terms defined in this section shall have the meanings indicated.

             (1) "Board of health" means the state board of health created pursuant to chapter 43.20 RCW.

             (2) "Capital expenditure" is an expenditure, including a force account expenditure (i.e., an expenditure for a construction project undertaken by a nursing home facility as its own contractor) which, under generally accepted accounting principles, is not properly chargeable as an expense of operation or maintenance. Where a person makes an acquisition under lease or comparable arrangement, or through donation, which would have required review if the acquisition had been made by purchase, such expenditure shall be deemed a capital expenditure. Capital expenditures include donations of equipment or facilities to a nursing home facility which if acquired directly by such facility would be subject to certificate of need review under the provisions of this chapter and transfer of equipment or facilities for less than fair market value if a transfer of the equipment or facilities at fair market value would be subject to such review. The cost of any studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition, improvement, expansion, or replacement of any plant or equipment with respect to which such expenditure is made shall be included in determining the amount of the expenditure.

             (3) "Continuing care retirement community" means an entity which provides shelter and services under continuing care contracts with its members and which sponsors or includes a health care facility or a health service. A "continuing care contract" means a contract to provide a person, for the duration of that person's life or for a term in excess of one year, shelter along with nursing, medical, health-related, or personal care services, which is conditioned upon the transfer of property, the payment of an entrance fee to the provider of such services, or the payment of periodic charges for the care and services involved. A continuing care contract is not excluded from this definition because the contract is mutually terminable or because shelter and services are not provided at the same location.

             (4) "Department" means the department of health.

             (5) "Expenditure minimum" means, for the purposes of the certificate of need program, one million dollars adjusted by the department by rule to reflect changes in the United States department of commerce composite construction cost index; or a lesser amount required by federal law and established by the department by rule.

             (6) "Health care facility" means hospices, ((hospitals, psychiatric hospitals,)) nursing homes, kidney disease treatment centers, ((ambulatory surgical facilities,)) and home health agencies, and includes such facilities when owned and operated by a political subdivision or instrumentality of the state and such other facilities as required by federal law and implementing regulations, but does not include Christian Science sanatoriums operated, listed, or certified by the First Church of Christ Scientist, Boston, Massachusetts. ((In addition, the term does not include any nonprofit hospital: (a) Which is operated exclusively to provide health care services for children; (b) which does not charge fees for such services; and (c) if not contrary to federal law as necessary to the receipt of federal funds by the state.))

             (7) "Health maintenance organization" means a public or private organization, organized under the laws of the state, which:

             (a) Is a qualified health maintenance organization under Title XIII, section 1310(d) of the Public Health Services Act; or

             (b)(i) Provides or otherwise makes available to enrolled participants health care services, including at least the following basic health care services: Usual physician services, hospitalization, laboratory, x-ray, emergency, and preventive services, and out-of-area coverage; (ii) is compensated (except for copayments) for the provision of the basic health care services listed in (b)(i) to enrolled participants by a payment which is paid on a periodic basis without regard to the date the health care services are provided and which is fixed without regard to the frequency, extent, or kind of health service actually provided; and (iii) provides physicians' services primarily (A) directly through physicians who are either employees or partners of such organization, or (B) through arrangements with individual physicians or one or more groups of physicians (organized on a group practice or individual practice basis).

             (8) "Health services" means clinically related (i.e., preventive, diagnostic, curative, rehabilitative, or palliative) services and includes alcoholism, drug abuse, and mental health services and as defined in federal law.

             (9) "Health service area" means a geographic region appropriate for effective health planning which includes a broad range of health services.

             (10) "Person" means an individual, a trust or estate, a partnership, a corporation (including associations, joint stock companies, and insurance companies), the state, or a political subdivision or instrumentality of the state, including a municipal corporation or a hospital district.

             (11) "Provider" generally means a health care professional or an organization, institution, or other entity providing health care but the precise definition for this term shall be established by rule of the department, consistent with federal law.

             (12) "Public health" means the level of well-being of the general population; those actions in a community necessary to preserve, protect, and promote the health of the people for which government is responsible; and the governmental system developed to guarantee the preservation of the health of the people.

             (13) "Secretary" means the secretary of health or the secretary's designee.

             (14) "Tertiary health service" means a specialized service that meets complicated medical needs of people and requires sufficient patient volume to optimize provider effectiveness, quality of service, and improved outcomes of care.

             (((15) "Hospital" means any health care institution which is required to qualify for a license under RCW 70.41.020(2); or as a psychiatric hospital under chapter 71.12 RCW.))


             Sec. 8. RCW 70.38.105 and 1992 c 27 s 1 are each amended to read as follows:

             (1) The department is authorized and directed to implement the certificate of need program in this state pursuant to the provisions of this chapter.

             (2) There shall be a state certificate of need program which is administered consistent with the requirements of federal law as necessary to the receipt of federal funds by the state.

             (3) No person shall engage in any undertaking which is subject to certificate of need review under subsection (4) of this section without first having received from the department either a certificate of need or an exception granted in accordance with this chapter.

             (4) The following shall be subject to certificate of need review under this chapter:

             (a) The construction, development, or other establishment of a new health care facility;

             (b) ((The sale, purchase, or lease of part or all of any existing hospital as defined in RCW 70.38.025;

             (c))) Any capital expenditure for the construction, renovation, or alteration of a nursing home which substantially changes the services of the facility after January 1, 1981, provided that the substantial changes in services are specified by the department in rule;

             (((d))) (c) Any capital expenditure for the construction, renovation, or alteration of a nursing home which exceeds the expenditure minimum as defined by RCW 70.38.025. However, a capital expenditure which is not subject to certificate of need review under (a), (b), (((c),)) or (((e))) (d) of this subsection and which is solely for any one or more of the following is not subject to certificate of need review except to the extent required by the federal government as a condition to receipt of federal assistance and does not substantially affect patient charges:

             (i) Communications and parking facilities;

             (ii) Mechanical, electrical, ventilation, heating, and air conditioning systems;

             (iii) Energy conservation systems;

             (iv) Repairs to, or the correction of, deficiencies in existing physical plant facilities which are necessary to maintain state licensure;

             (v) Acquisition of equipment, including data processing equipment, which is not or will not be used in the direct provision of health services;

             (vi) Construction which involves physical plant facilities, including administrative and support facilities, which are not or will not be used for the provision of health services;

             (vii) Acquisition of land; and

             (viii) Refinancing of existing debt;

             (((e))) (d) A change in bed capacity of a health care facility which increases the total number of licensed beds or redistributes beds among acute care, nursing home care, and boarding home care if the bed redistribution is to be effective for a period in excess of six months, or a change in bed capacity of a rural health care facility licensed under RCW 70.175.100 that increases the total number of nursing home beds or redistributes beds from acute care or boarding home care to nursing home care if the bed redistribution is to be effective for a period in excess of six months;

             (((f))) (e) Any new tertiary health services which are offered in or through a health care facility or rural health care facility licensed under RCW 70.175.100, and which were not offered on a regular basis by, in, or through such health care facility or rural health care facility within the twelve-month period prior to the time such services would be offered;

             (((g))) (f) Any expenditure for the construction, renovation, or alteration of a nursing home or change in nursing home services in excess of the expenditure minimum made in preparation for any undertaking under subsection (4) of this section and any arrangement or commitment made for financing such undertaking. Expenditures of preparation shall include expenditures for architectural designs, plans, working drawings, and specifications. The department may issue certificates of need permitting predevelopment expenditures, only, without authorizing any subsequent undertaking with respect to which such predevelopment expenditures are made; and

             (((h))) (g) Any increase in the number of dialysis stations in a kidney disease center.

             (5) The department is authorized to charge fees for the review of certificate of need applications and requests for exemptions from certificate of need review. The fees shall be sufficient to cover the full cost of review and exemption, which may include the development of standards, criteria, and policies.

             (6) No person may divide a project in order to avoid review requirements under any of the thresholds specified in this section.


             Sec. 9. RCW 70.38.115 and 1993 c 508 s 6 are each amended to read as follows:

             (1) Certificates of need shall be issued, denied, suspended, or revoked by the designee of the secretary in accord with the provisions of this chapter and rules of the department which establish review procedures and criteria for the certificate of need program.

             (2) Criteria for the review of certificate of need applications, except as provided in subsection (3) of this section for health maintenance organizations, shall include but not be limited to consideration of the following:

             (a) The need that the population served or to be served by such services has for such services;

             (b) The availability of less costly or more effective alternative methods of providing such services;

             (c) The financial feasibility and the probable impact of the proposal on the cost of and charges for providing health services in the community to be served;

             (d) In the case of health services to be provided, (i) the availability of alternative uses of project resources for the provision of other health services, (ii) the extent to which such proposed services will be accessible to all residents of the area to be served, and (iii) the need for and the availability in the community of services and facilities for osteopathic and allopathic physicians and their patients. The department shall consider the application in terms of its impact on existing and proposed institutional training programs for doctors of osteopathy and medicine at the student, internship, and residency training levels;

             (e) In the case of a construction project, the costs and methods of the proposed construction, including the cost and methods of energy provision, and the probable impact of the construction project reviewed (i) on the cost of providing health services by the person proposing such construction project and (ii) on the cost and charges to the public of providing health services by other persons;

             (f) ((The special needs and circumstances of osteopathic hospitals, nonallopathic services and children's hospitals;

             (g))) Improvements or innovations in the financing and delivery of health services which foster cost containment and serve to promote quality assurance and cost-effectiveness;

             (((h))) (g) In the case of health services proposed to be provided, the efficiency and appropriateness of the use of existing services and facilities similar to those proposed;

             (((i))) (h) In the case of existing services or facilities, the quality of care provided by such services or facilities in the past; and

             (((j) In the case of hospital certificate of need applications, whether the hospital meets or exceeds the regional average level of charity care, as determined by the secretary; and

             (k))) (i) In the case of nursing home applications:

             (i) The availability of other nursing home beds in the planning area to be served; and

             (ii) The availability of other services in the community to be served. Data used to determine the availability of other services will include but not be limited to data provided by the department of social and health services.

             (3) A certificate of need application of a health maintenance organization or a health care facility which is controlled, directly or indirectly, by a health maintenance organization, shall be approved by the department if the department finds:

             (a) Approval of such application is required to meet the needs of the members of the health maintenance organization and of the new members which such organization can reasonably be expected to enroll; and

             (b) The health maintenance organization is unable to provide, through services or facilities which can reasonably be expected to be available to the organization, its health services in a reasonable and cost-effective manner which is consistent with the basic method of operation of the organization and which makes such services available on a long-term basis through physicians and other health professionals associated with it.

             A health care facility, or any part thereof, with respect to which a certificate of need was issued under this subsection may not be sold or leased and a controlling interest in such facility or in a lease of such facility may not be acquired unless the department issues a certificate of need approving the sale, acquisition, or lease.

             (4) Until the final expiration of the state health plan as provided under RCW 70.38.919, the decision of the department on a certificate of need application shall be consistent with the state health plan in effect, except in emergency circumstances which pose a threat to the public health. The department in making its final decision may issue a conditional certificate of need if it finds that the project is justified only under specific circumstances. The conditions shall directly relate to the project being reviewed. The conditions may be released if it can be substantiated that the conditions are no longer valid and the release of such conditions would be consistent with the purposes of this chapter.

             (5) Criteria adopted for review in accordance with subsection (2) of this section may vary according to the purpose for which the particular review is being conducted or the type of health service reviewed.

             (6) The department shall specify information to be required for certificate of need applications. Within fifteen days of receipt of the application, the department shall request additional information considered necessary to the application or start the review process. Applicants may decline to submit requested information through written notice to the department, in which case review starts on the date of receipt of the notice. Applications may be denied or limited because of failure to submit required and necessary information.

             (7) Concurrent review is for the purpose of comparative analysis and evaluation of competing or similar projects in order to determine which of the projects may best meet identified needs. Categories of projects subject to concurrent review include at least new health care facilities, new services, and expansion of existing health care facilities. The department shall specify time periods for the submission of applications for certificates of need subject to concurrent review, which shall not exceed ninety days. Review of concurrent applications shall start fifteen days after the conclusion of the time period for submission of applications subject to concurrent review. Concurrent review periods shall be limited to one hundred fifty days, except as provided for in rules adopted by the department authorizing and limiting amendment during the course of the review, or for an unresolved pivotal issue declared by the department.

             (8) Review periods for certificate of need applications other than those subject to concurrent review shall be limited to ninety days. Review periods may be extended up to thirty days if needed by a review agency, and for unresolved pivotal issues the department may extend up to an additional thirty days. A review may be extended in any case if the applicant agrees to the extension.

             (9) The department or its designee, shall conduct a public hearing on a certificate of need application if requested, unless the review is expedited or subject to emergency review. The department by rule shall specify the period of time within which a public hearing must be requested and requirements related to public notice of the hearing, procedures, recordkeeping and related matters.

             (10) Any applicant denied a certificate of need or whose certificate of need has been suspended or revoked has the right to an adjudicative proceeding. The proceeding is governed by chapter 34.05 RCW, the Administrative Procedure Act.

             (11) An amended certificate of need shall be required for the following modifications of an approved project:

             (a) A new service requiring review under this chapter;

             (b) An expansion of a service subject to review beyond that originally approved;

             (c) An increase in bed capacity;

             (d) A significant reduction in the scope of a nursing home project without a commensurate reduction in the cost of the nursing home project, or a cost increase (as represented in bids on a nursing home construction project or final cost estimates acceptable to the person to whom the certificate of need was issued) if the total of such increases exceeds twelve percent or fifty thousand dollars, whichever is greater, over the maximum capital expenditure approved. The review of reductions or cost increases shall be restricted to the continued conformance of the nursing home project with the review criteria pertaining to financial feasibility and cost containment.

             (12) An application for a certificate of need for a nursing home capital expenditure which is determined by the department to be required to eliminate or prevent imminent safety hazards or correct violations of applicable licensure and accreditation standards shall be approved.

             (13) In the case of an application for a certificate of need to replace existing nursing home beds, all criteria must be met on the same basis as an application for a certificate of need for a new nursing home, except that the need criteria shall be deemed met if the applicant is an existing licensee who proposes to replace existing beds that the licensee has operated for at least one year with the same or fewer number of beds in the same planning area. When an entire nursing home ceases operation, its beds shall be treated as existing nursing home beds for purposes of replacement for eight years or until a certificate of need to replace them is issued, whichever occurs first. However, the nursing home must give notice of its intent to retain the beds to the department of health no later than thirty days after the effective date of the facility's closure."


             On page 1, line 2 of the title, after "70.41.120," strike "and 74.42.600" and insert "74.42.600, 70.38.025, 70.38.105, and 70.38.115"


             Representative Schoesler moved adoption of the following amendment to the amendment by Representative Schoesler:


             On page 2, line 15 after "agencies," insert the following:

             "except those home health agencies operated by a hospital district in a county with a population under twenty thousand,"


             Representative Schoesler spoke in favor of the adoption of the amendment to the amendment.


             Representative Dellwo spoke against the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representative Sherstad spoke in favor of the adoption of the amendment as amended.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Dyer spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Senate Bill No. 5501 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5501, as amended by the House and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Brown - 2.


             Senate Bill No. 5501, as amended by the House, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 2090, by Representatives K. Schmidt, R. Fisher, Mitchell, Scott, Robertson, Hatfield, Skinner, Tokuda, Buck, Elliot, Ogden, Cairnes, Romero, Brown, Quall, Chopp, Patterson, Hankins and Blanton

 

Revising provisions relating to taxation of gasohol.


             The bill was read the second time. There being no objection, Substitute House Bill No. 2090 was substituted for House Bill No. 2090 and the substitute bill was placed on second reading.


             Substitute House Bill No. 2090 was read the second time.


             Representative K. Schmidt moved adoption of the following amendment by Representative K. Schmidt:


             On page 2, beginning on line 27, strike all of section 3.


             On page 4, line 30 after "46.68.090(1)(1)." insert the following:

             "The tax exemption refund will be based upon the difference between the amount of tax collected on the original taxable sale invoice and the rebilled taxable sale invoice that reflects the alcohol that is exempt from the motor fuel tax."


             On page 4, line 31, strike all of subsection 4.


             On page 4, line 33, strike all of subsection 5.


             On page 5, line 7, strike "March 28, 1995" and insert "immediately"


             On page 5, after line 8, insert the following:

"Sec. 4. 1994 c 225 s 3 (uncodified) is amended to read as follows:

             (1) If a court enters a final order invalidating or remanding section 1 of this act on the grounds that it does not comply with section 13, chapter 2, Laws of 1994, it is the intent of the legislature that ((this measure)) Laws of 1994, chapter 225 as amended be submitted to the people for their adoption, ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.

             (2) If a court remands this act for a vote of the people, the ballot title shall be substantially as follows: "Shall the alcohol fuel tax exemption given to fuel distributors be eliminated?"

             (3) If the voters approve the repeal as provided in section 1 of this act, the repeal shall be made retroactive to May 1, 1994."


             On page 5, after line 8, insert the following:

"NEW SECTION. Sec. 6. No refunds authorized under this act shall be provided until 1994 c 225 is rejected by the people at the next November general election. Any funds received as taxes paid subject to refunds authorized in section 3 of this act shall be deposited in the Gasohol Exemption Holding Account. The department of licensing is authorized to issue refunds after 1994 c 225 has been rejected by the people at the next November general election.


"NEW SECTION. Sec. 7. 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 circumstance is not affected."


             Representative K. Schmidt spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives K. Schmidt and R. Fisher spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2090.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2090, and the bill passed the House by the following vote: Yeas - 94, Nays - 1, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 94.

             Voting nay: Representative Pennington - 1.

             Excused: Representatives Basich and Brown - 2.


             Engrossed Substitute House Bill No. 2090, having received the constitutional majority, was declared passed.


             There being no objection, all bills passed today will be transmitted to the Senate.


             The Speaker declared the House to be at ease.


             The Speaker called the House to order.


             There being no objection, the House considered the following bills in the following order: Engrossed Senate Bill No. 5876, Engrossed Second Substitute Senate Bill No. 5448, Substitute Senate Bill No. 5606, Engrossed Substitute Senate Bill No. 5607, Senate Bill No. 5087, Substitute Senate Bill No. 5333, House Bill No. 1566, Senate Bill No. 5287, Second Substitute Senate Bill No. 5387 and Engrossed Senate Bill No. 5613.


             ENGROSSED SENATE BILL NO. 5876, by Senators Haugen and Winsley

 

Making population determinations and projections.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Government Operations recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Reams and Rust spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Senate Bill No. 5876.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5876, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 96.

             Excused: Representative Basich - 1.


             Engrossed Senate Bill No. 5876, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Engrossed Second Substitute Senate Bill No. 5448.


SPEAKER'S RULING


             Representative Rust, the Speaker is prepared to Rule on your Point of Order which challenges Amendment 821 to Engrossed Second Substitute Senate Bill No. 5448 as being beyond the Scope and Object of the bill.

             The title of Engrossed Second Substitute Senate Bill No. 5448 is "AN ACT Relating to public water systems.

             The title is broad. The bill amends various sections of the RCW's, reenacts and amends RCW 80.04.110, adds new sections to chapter 70.119A RCW, and creates a new section.

             The object of Engrossed Second Substitute Senate Bill No. 5448 is to establish various authority and criteria for creating and regulating public water systems.

             Amendment 821 creates a tax exemption for specific lands denied certain water use applications.

             The Speaker finds that the Amendment 821 is beyond the scope and object of the bill.


             Representative Rust, Your Point of Order is well taken.


             Representative Mastin spoke in favor of the amendment as amended.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Chandler and Rust spoke in favor of passage of the bill.


MOTION


             On motion of Representative Brown, Representative Dellwo was excused.


             The Speaker stated the question before the House to be final passage of Engrossed Second Substitute Senate Bill No. 5448 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5448 as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Dellwo - 2.


             Engrossed Second Substitute Senate Bill No. 5448, as amended by the House, having received the constitutional majority, was declared passed.


             There being no objection, the House deferred consideration of Substitute Senate Bill No. 5606 and the bill held it's place on the second reading calendar.


             The Speaker called on Representative Horn to preside.


             There being no objection, the House resumed consideration of Engrossed Substitute Senate Bill No. 5607.


SPEAKER'S RULING


             Representative Backlund, The Speaker (Representative Horn presiding) is prepared to Rule on your Point of Order.

             The title of Engrossed Substitute Senate Bill No. 5607 is "AN ACT Relating to performance audits of state government. The title is narrow.

             Section 6 of Engrossed Substitute Senate Bill No. 5607 provides a list of the items that a zero-base budget review must include. The review must include the costs and full-time equivalent staff associated with each program, the administrative staff costs and staffing levels and an estimate of the amount of funds that reach the intended recipients of the program or activity.

             Amendment 806 would require that budget documents submitted by the governor contain the information that the bill asks to be determined by the audit. While the bill addresses the issue of what kind of performance has occurred the amendment addresses what kind of performance is intended to occur.

             The Speaker (Representative Horn presiding) finds that amendment 806 perfects the bill and is not beyond the scope and object of the bill.


             Representative Backlund, Your Point of Order is not well taken.


             Representative Conway, you may continue.


             Representatives Conway and Backlund spoke in favor of the adoption of the amendment to the committee amendment.


             The amendment to the committee amendment was adopted.


             Representative Backlund spoke in favor of the adoption of the committee amendment as amended.


             The committee amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Backlund, Reams, Huff, Sommers and Conway spoke in favor of passage of the bill.


             Representative Ogden spoke against passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5607 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5607 as amended by the House, and the bill passed the House by the following vote: Yeas - 93, Nays - 1, Absent - 1, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 93.

             Voting nay: Representative Ogden - 1.

             Absent: Representative Brown - 1.

             Excused: Representatives Basich and Dellwo - 2.


             Engrossed Substitute Senate Bill No. 5607, as amended by the House, having received the constitutional majority, was declared passed.


             The Speaker assumed the chair.


             There being no objection, the House deferred consideration of Senate Bill No. 5087 and the bill held it's place on the second reading calendar.


             SUBSTITUTE SENATE BILL NO. 5333, by Senate Committee on Law & Justice (originally sponsored by Senators Smith, Long and Johnson)

 

Revising regulations for the investment of trust funds.


             The bill was read the second time.


             There being no objection, the committee amendment was adopted. Committee on Law & Justice recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Hickel spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5333 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5333 as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Dellwo - 2.


             Substitute Senate Bill No. 5333, as amended by the House, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 1566, by Representative Dyer; by request of Health Care Authority

 

Changing health care authority responsibilities.


             The bill was read the second time. There being no objection, Second Substitute House Bill No. 1566 was substituted for House Bill No. 1566 and the second substitute bill was placed on second reading.


             Second Substitute House Bill No. 1566 was read the second time.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             On page 1, line 11, after "(1)" strike all material through "section." on page 2, line 15 and insert "In a manner prescribed by the state health care authority, school districts and educational service districts shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120 the amount specified for remittance in the omnibus appropriations act.

             (2) The remittance requirements specified in this section shall not apply to employees of a school district or educational service district who receive insurance benefits through contracts with the health care authority."

             Representative Dyer spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 617 and 623 to Second Substitute House Bill No. 1566 were withdrawn.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             On page 5, line 38, after "section" insert the following:

             "; and

             (f) Ensure the control of benefit costs under managed competition by adopting rules to prevent employers from entering into an agreement with employees or employee organizations when the agreement would result in increased utilization in public employees' benefits board plans or reduce the expected savings of managed competition"


             Representative Dyer spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment numbers 625 and 633 to Second Substitute House Bill No. 1566 were withdrawn.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             On page 11, line 35 after "board" strike "shall"


             On page 11, line 35 after "board" insert "may"


             Representative Dyer spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             Representative Carlson moved adoption of the following amendment by Representative Carlson:


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

             "(8) "Benefits contribution plan" means a plan whereby state and public employees may agree to a contribution to benefit costs which will allow the employee to participate in benefits offered pursuant to 26 U.S.C. Sec. 125 or other sections of the Internal Revenue Code.

             (9) "Salary" means a state employee's monthly salary or wages.

             (10) "Participant" means an individual who fulfills the eligibility and enrollment requirements under the benefits contribution plan.

             (11) "Plan year" means the time period established by the authority."


On page 14, after line 15, insert the following:

             "NEW SECTION. Sec. 13. A new section is added to chapter 41.05 RCW to read as follows:

             (1) The state of Washington may enter into benefits contribution plans with employees of the state pursuant to the Internal Revenue Code, 26 U.S.C. Sec. 125 for the purpose of making it possible for employees of the state to select on a "before-tax basis" certain taxable and nontaxable benefits pursuant to 26 U.S.C. Sec. 125. The purpose of the benefits contribution plan established in this chapter is to attract and retain individuals in governmental service by permitting them to enter into agreements with the state to provide for benefits pursuant to 26 U.S.C. Sec. 125 and other applicable sections of the Internal Revenue Code.

(2) Nothing in the benefits contribution plan constitutes an employment agreement between the participant and the state, and nothing contained in the participant's benefits contribution agreement, the plan, or RCW 41.05.105 through 41.05.145 gives a participant any right to be retained in state employment.

 

             NEW SECTION. Sec. 14. A new section is added to chapter 41.05 RCW to read as follows:

             The authority shall have responsibility for the formulation and adoption of a plan, policies and procedures designed to guide, direct, and administer the benefits contribution plan.

             (1) A plan document describing the benefits contribution plan shall be adopted and administered by the authority. The authority shall represent the state in all matters concerning the administration of the plan. The state, through the authority, may engage the services of a professional consultant or administrator on a contractual basis to serve as an agent to assist the authority or perform the administrative functions necessary in carrying out the purposes of this act.

             (2) The authority shall formulate and establish policies and procedures for the administration of the benefits contribution plan that are consistent with existing state law, the internal revenue code, and the regulations adopted by the internal revenue service as they may apply to the benefits offered to participants under the plan. 

             (3) The funds held by the state for the benefits contribution program shall be deposited in the benefits contribution account in the state treasury. Any interest in excess of the amount used to defray the cost of administering the benefits contribution plan shall become a part of the general fund. Unclaimed moneys remaining in the benefits contribution account at the end of a plan year after all timely submitted claims for that plan year have been processed shall become a part of the benefits contribution administrative account. The authority may assess each participant a fee for administering the salary reduction plan. In addition to moneys for initial costs, moneys may be appropriated from the general fund or benefits contribution administrative account for any expense relating to the administration of the benefits contribution plan.

             (4) The benefits contribution administrative account is created in the state treasury. The authority may periodically bill agencies for employer savings experienced as the result of benefits contribution program participation by employees. All receipts from the following shall be deposited in the account: (a) charges to agencies for all or a portion of the estimated savings due to reductions in employer contributions under the social security act; (b) charges for other similar savings; (c) unclaimed moneys in the benefits contribution account at the end of the plan year after all timely submitted claims for that plan year have been processed; and (d) fees charged to participants. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for any expense related to the administration of the benefits contribution plan.

             (5) Every action taken by the authority in administering sections 13 through 19 of this act shall be presumed to be a fair and reasonable exercise of the authority vested in or the duties imposed upon it. The authority shall be presumed to have exercised reasonable care, diligence, and prudence and to have acted impartially as to all persons interested unless the contrary be proved by clear and convincing affirmative evidence.


             NEW SECTION. Sec. 15. A new section is added to chapter 41.05 RCW to read as follows:

             (1) Elected officials and all permanent employees of the state are eligible to participate in the benefits contribution plan and contribute amount(s) by agreement with the authority. The authority may adopt rules to permit participation in the plan by temporary employees of the state.

             (2) Persons eligible under subsection (1) of this section may enter into benefits contribution agreements with the state.

             (3)(a) In the initial year of the benefits contribution plan, and eligible person may become a participant after the adoption of the plan and before its effective date by agreeing to have a portion of his or her gross salary contributed and deposited into a health care and other benefits account to be used for reimbursement of expenses covered by the plan.

             (b) After the initial year of the benefits contribution plan, an eligible person may become a participant for a full plan year, with annual benefit selection for each new plan year made before the beginning of the plan year, as determined by the authority, or upon becoming eligible.

             (c) Once an eligible person elects to participate and the determination of the amount of gross salary that he or she shall contribute and the benefit for which the funds are to be used during the plan year, the agreement shall be irrevocable and may not be amended during the plan year except as provided in (d) of this subsection. Prior to making an election to participate in the benefit contribution plan, the eligible person shall be informed in writing of all the benefits and contributions that will occur as a result of such election.

             (d) The authority shall provide in the benefits contribution plan that a participant may enroll, terminate, or change his or her election after the plan year has begun if there is a significant change in a participant's status, as provided by 26 U.S.C. Sec. 125 and the regulations adopted under that section and defined by the authority.

             (4) The authority shall establish as part of the benefits contribution plan the procedures for and effect of withdrawal from the plan by reason of retirement, death, leave of absence, or termination of employment. To the extent possible under federal law, the authority shall protect participants from forfeiture of rights under the plan.

             (5) Any contribution under the benefits contribution plan shall continue to be included as regular compensation for the purpose of computing the state retirement and pension benefits earned by the employee.


             NEW SECTION. Sec. 16. A new section is added to chapter 41.05 RCW to read as follows:

             The benefits contribution account is established in the state treasury. All fees paid to reimburse participants or service providers pursuant to the provisions of sections 13 through 19 of this act shall be paid from the benefit contribution account.


             NEW SECTION. Sec. 17. A new section is added to chapter 41.05 RCW to read as follows:

             (1) The authority shall keep or cause to be kept full and adequate accounts and records of the assets, obligations, transactions, and affairs of a salary reduction plan created under section 14 of this act.

             (2) The authority shall file an annual report of the financial condition, transactions, and affairs of the salary reduction plan under the authority's jurisdiction. A copy of the annual report shall be filed with the speaker of the house of representatives, the president of the senate, the governor, and the state auditor.


             NEW SECTION. Sec. 18. A new section is added to chapter 41.05 RCW to read as follows:

             (1) The state may terminate the benefits contribution plan at the end of the plan year or upon notification of federal action affecting the status of the plan.

             (2) The authority may amend the benefits contribution plan at any time if the amendment does not affect the rights of the participants to receive eligible reimbursement from the participants' benefits contribution accounts.


             NEW SECTION. Sec. 19. A new section is added to chapter 41.05 RCW to read as follows:

             The authority shall adopt rules necessary to implement sections 13 through 18 of this act.


             NEW SECTION. Sec. 20. A new section is added to chapter 41.05 RCW to read as follows:

             Health care and other benefits--Benefits contribution plan--Construction of statutes. Sections 13 through 19 of this act shall be construed to effectuate the purposes of 26 U.S.C. Sec. 125 and other applicable sections of the Internal Revenue Code as required.


             Sec. 21. RCW 28A.400.350  and 1993 c 492 and s 226 are each amended as follows:

              (1) The board of directors of any of the state's school districts may make available liability, life, health, health care, accident, disability and salary protection or insurance or any one of, or a combination of the enumerated types of insurance, or any other type of insurance or protection, for the members of the boards of directors, the students, and employees of the school district, and their dependents. Such coverage may be provided by contracts with private carriers, with the state health care authority after July 1, 1990, pursuant to the approval of the authority administrator, or through self-insurance or self-funding pursuant to chapter 48.62 RCW, or in any other manner authorized by law. ((Except for health benefits purchased with nonstate funds as provided in RCW 28A.400.200, effective on and after October 1, 1995, health care coverage, life insurance, liability insurance, accidental death and dismemberment insurance, and disability income insurance shall be provided only by contracts with the state health care authority.))

             (2) Whenever funds are available for these purposes the board of directors of the school district may contribute all or a part of the cost of such protection or insurance for the employees of their respective school districts and their dependents. The premiums on such liability insurance shall be borne by the school district.

             After October 1, 1990, school districts may not contribute to any employee protection or insurance other than liability insurance unless the district's employee benefit plan conforms to RCW 28A.400.275 and 28A.400.280.

             (3) For school board members and students, the premiums due on such protection or insurance shall be borne by the assenting school board member or student. The school district may contribute all or part of the costs, including the premiums, of life, health, health care, accident or disability insurance which shall be offered to all students participating in interschool activities on the behalf of or as representative of their school or school district. The school district board of directors may require any student participating in extracurricular interschool activities to, as a condition of participation, document evidence of insurance or purchase insurance that will provide adequate coverage, as determined by the school district board of directors, for medical expenses incurred as a result of injury sustained while participating in the extracurricular activity. In establishing such a requirement, the district shall adopt regulations for waiving or reducing the premiums of such coverage as may be offered through the school district to students participating in extracurricular activities, for those students whose families, by reason of their low income, would have difficulty paying the entire amount of such insurance premiums. The district board shall adopt regulations for waiving or reducing the insurance coverage requirements for low-income students in order to assure such students are not prohibited from participating in extracurricular interschool activities.

             (4) All contracts for insurance or protection written to take advantage of the provisions of this section shall provide that the beneficiaries of such contracts may utilize on an equal participation basis the services of those practitioners licensed pursuant to chapters 18.22, 18.25, 18.53, 18.57, and 18.71 RCW."


             Renumber remaining section consecutively and correct title and internal references accordingly.


             Representative Carlson spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             On page 12, line 33, after "determines" insert ", subject to collective bargaining under applicable statutes,"


             Representative Dyer spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 632 to Second Substitute House Bill No. 1566 was withdrawn.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             On page 13, line 35, before "public" strike "the" and insert "a"


             On page 14, line 2, after "later." strike all material through "plans." on line 6 and insert the following:

"Employees of a bargaining unit or administrative or managerial employees otherwise not included in a bargaining unit shall be required to transfer by group. Administrative or managerial employees shall transfer in accordance with rules established by the health care authority. If employee groups elect to transfer, they are eligible to reenroll in the public employees' benefits board-sponsored plans in January, 2001, and every five years thereafter."


             On page 14, after line 15, insert the following:

             "NEW SECTION. Sec. 13. A new section is added to chapter 28B.50 RCW to read as follows:

             (1) In a manner prescribed by the state health care authority, technical colleges that have employees enrolled in a benefits trust shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120:

             (a) For each full-time employee of the district, an amount equal to four and seven-tenths percent multiplied by the insurance benefit allocation rate in the appropriations act for each employee, for each month of the school year;

             (b) For each part-time employee of the college who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for benefits prescribed by the public employees' benefits board, an amount equal to four and seven-tenths percent multiplied by the insurance benefit allocation rate in the appropriations act, for each month of the year, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

             (2) The remittance requirements of this section do not apply to employees of a technical college who receive insurance benefits through contracts with the health care authority.

             (3) The legislature reserves the right to increase or decrease the percent or amount required to be remitted in this section."


             Renumber sections consecutively and correct internal references accordingly, and correct the title.


             Representative Dyer spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             Representative Chappell moved adoption of the following amendment by Representative Chappell:


             On page 14, after line 6, add a new section as follows

"NEW SECTION. Sec. 12. A new section is added to Title 43 RCW

to read as follows:

For the purpose of accurately describing professional health

services purchased by the state, health-related state agencies may develop fee schedules based on billing codes and service descriptions published by the American medical association or the United State federal health care financing administration, or develop agency unique codes and service descriptions."


             Representative Campbell spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 622 to Second Substitute House Bill No. 1566 was withdrawn.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


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


             The Speaker stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1566.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1566, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Basich and Dellwo - 2.


             Engrossed Second Substitute House Bill No. 1566, having received the constitutional majority, was declared passed.


             SENATE BILL NO. 5287, by Senators Wood, Sheldon, Bauer, Kohl, Rasmussen and Hochstatter; by request of Higher Education Coordinating Board

 

Providing school loan forgiveness in exchange for service within Washington state.


             The bill was read the second time.


             There being no objection, the committee amendment was adopted. Committee on Health Care recommendation: Majority, do pass as amended. (For committee amendment see Journal, 68th Day, March 17 1995.)


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Carlson spoke in favor of passage of the bill.


             Representative Goldsmith spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Senate Bill No. 5287 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5287 as amended by the House, and the bill passed the House by the following vote: Yeas - 84, Nays - 11, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Blanton, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Kremen, Lambert, Lisk, Mason, Mastin, McMorris, Mielke, Mitchell, Morris, Ogden, Patterson, Pelesky, Pennington, Poulsen, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 84.

             Voting nay: Representatives Beeksma, Benton, Boldt, Casada, Goldsmith, Hargrove, Koster, McMahan, Mulliken, Quall and Stevens - 11.

             Excused: Representatives Basich and Dellwo - 2.


             Senate Bill No. 5287, as amended by the House, having received the constitutional majority, was declared passed.


             SECOND SUBSTITUTE SENATE BILL NO. 5387, by Senate Committee on Ways & Means (originally sponsored by Senators Wojahn, Winsley, Franklin, Haugen, Rasmussen, McCaslin and West)

 

Providing tax incentives for multiple-unit housing in urban centers.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Finance recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, April 3, 1995.)


             Representative Mitchell moved adoption of the following amendment by Representative Mitchell:


             Strike everything after the enacting clause and insert the following:


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

             (1) That in many of Washington's urban centers there is insufficient availability of desirable and convenient residential units to meet the needs of a growing number of the public who would live in these urban centers if these desirable, convenient, attractive, and livable places to live were available;

             (2) That the development of additional and desirable residential units in these urban centers that will attract and maintain a significant increase in the number of permanent residents in these areas will help to alleviate the detrimental conditions and social liability that tend to exist in the absence of a viable residential population and will help to achieve the planning goals mandated by the growth management act under RCW 36.70A.020; and

             (3) That planning solutions to solve the problems of urban sprawl often lack incentive and implementation techniques needed to encourage residential redevelopment in those urban centers lacking sufficient residential opportunities, and it is in the public interest and will benefit, provide, and promote the public health, safety, and welfare to stimulate new or enhanced residential opportunities within urban centers through a tax incentive as provided by this chapter.


             NEW SECTION. Sec. 2. It is the purpose of this chapter to encourage increased residential opportunities in cities that are required to plan or choose to plan under the growth management act within urban centers where the legislative body of the affected city has found there is insufficient housing opportunities. It is further the purpose of this chapter to stimulate the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities within these urban centers. To achieve these purposes, this chapter provides for special valuations for eligible improvements associated with multiunit housing in residentially deficient urban centers.


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

             (1) "City" means a city or town with a population of at least one hundred fifty thousand located in a county planning under the growth management act.

             (2) "Governing authority" means the local legislative authority of a city having jurisdiction over the property for which an exemption may be applied for under this chapter.

             (3) "Growth management act" means chapter 36.70A RCW.

             (4) "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.

             (5) "Owner" means the property owner of record.

             (6) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental accommodation that is leased for a period of at least one month. This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.

             (7) "Rehabilitation improvements" means modifications to existing structures, that are vacant for twelve months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.

             (8) "Residential targeted area" means an area within an urban center that has been designated by the governing authority as a residential targeted area in accordance with this chapter.

             (9) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.

             (10) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain:

             (a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;

             (b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and

             (c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.


             NEW SECTION. Sec. 4. The provisions of this chapter relating to special valuation apply only to locally designated residential targeted areas of those cities planning under the growth management act.


             NEW SECTION. Sec. 5. (1) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, for ten successive years beginning January 1 of the year immediately following the calendar year after issuance of the certificate of tax exemption eligibility. However, the exemption does not include the value of land or nonhousing-related improvements not qualifying under this chapter.

             (2) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter. The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.

             (3) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.


             NEW SECTION. Sec. 6. An owner of property making application under this chapter must meet the following requirements:

             (1) The new or rehabilitated multiple-unit housing must be located in a residential targeted area as designated by the city;

             (2) The multiple-unit housing must meet the guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, and other adopted requirements indicated necessary by the city. The required amenities should be relative to the size of the project and tax benefit to be obtained;

             (3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy. In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units;

             (4) New construction multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application;

             (5) Property proposed to be rehabilitated must be vacant at least twelve months before submitting an application and fail to comply with one or more standards of the applicable state or local building or housing codes on or after the effective date of this section; and

             (6) The applicant must enter into a contract with the city approved by the governing body under which the applicant has agreed to the implementation of the development on terms and conditions satisfactory to the governing authority.


             NEW SECTION. Sec. 7. (1) The following criteria must be met before an area may be designated as a residential targeted area:

             (a) The area must be within an urban center, as determined by the governing authority;

             (b) The area must lack, as determined by the governing authority, sufficient available, desirable, and convenient residential housing to meet the needs of the public who would be likely to live in the urban center, if the desirable, attractive, and livable places to live were available; and

             (c) The providing of additional housing opportunity in the area, as determined by the governing authority, will assist in achieving one or more of the stated purposes of this chapter.

             (2) For the purpose of designating a residential targeted area or areas, the governing authority may adopt a resolution of intention to so designate an area as generally described in the resolution. The resolution must state the time and place of a hearing to be held by the governing authority to consider the designation of the area and may include such other information pertaining to the designation of the area as the governing authority determines to be appropriate to apprise the public of the action intended.

             (3) The governing authority shall give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than thirty days before the date of the hearing in a paper having a general circulation in the city where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area.

             (4) Following the hearing, or a continuance of the hearing, the governing authority may designate all or a portion of the area described in the resolution of intent as a residential targeted area if it finds, in its sole discretion, that the criteria in subsections (1) through (3) of this section have been met.

             (5) After designation of a residential targeted area, the governing authority shall adopt standards and guidelines to be utilized in considering applications and making the determinations required under section 9 of this act. The standards and guidelines must establish basic requirements for both new construction and rehabilitation including application process and procedures. These guidelines may include the following:

             (a) Requirements that address demolition of existing structures and site utilization; and

             (b) Building requirements that may include elements addressing parking, height, density, environmental impact, and compatibility with the existing surrounding property and such other amenities as will attract and keep permanent residents and that will properly enhance the livability of the residential targeted area in which they are to be located.


             NEW SECTION. Sec. 8. An owner of property seeking tax incentives under this chapter must complete the following procedures:

             (1) In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the governing authority or duly authorized agent, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;

             (2) In the case of new and rehabilitated multifamily housing, the owner shall apply to the city on forms adopted by the governing authority. The application must contain the following:

             (a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;

             (b) A description of the project and site plan, including the floor plan of units and other information requested;

             (c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;

             (3) The applicant must verify the application by oath or affirmation; and

             (4) The application must be made on or before April 1 of each year, and must be accompanied by the application fee, if any, required under section 10 of this act. The governing authority may permit the applicant to revise an application before final action by the governing authority.


             NEW SECTION. Sec. 9. The duly authorized administrative official or committee of the city may approve the application if it finds that:

             (1) A minimum of four new units are being constructed or in the case of occupied rehabilitation or conversion a minimum of four additional multifamily units are being developed;

             (2) The proposed project is or will be, at the time of completion, in conformance with all local plans and regulations that apply at the time the application is approved;

             (3) The owner has complied with all standards and guidelines adopted by the city under this chapter; and

             (4) The site is located in a residential targeted area of an urban center that has been designated by the governing authority in accordance with procedures and guidelines indicated in section 7 of this act.


             NEW SECTION. Sec. 10. (1) The governing authority or an administrative official or commission authorized by the governing authority shall approve or deny an application filed under this chapter within ninety days after receipt of the application.

             (2) If the application is approved, the city shall issue the owner of the property a conditional certificate of acceptance of tax exemption. The certificate must contain a statement by a duly authorized administrative official of the governing authority that the property has complied with the required findings indicated in section 8 of this act.

             (3) If the application is denied by the authorized administrative official or commission authorized by the governing authority, the deciding administrative official or commission shall state in writing the reasons for denial and send the notice to the applicant at the applicant's last known address within ten days of the denial.

             (4) Upon denial by a duly authorized administrative official or commission, an applicant may appeal the denial to the governing authority within thirty days after receipt of the denial. The appeal before the governing authority will be based upon the record made before the administrative official with the burden of proof on the applicant to show that there was no substantial evidence to support the administrative official's decision. The decision of the governing body in denying or approving the application is final.


             NEW SECTION. Sec. 11. The governing authority may establish an application fee. This fee may not exceed an amount determined to be required to cover the cost to be incurred by the governing authority and the assessor in administering this chapter. The application fee must be paid at the time the application for limited exemption is filed. If the application is approved, the governing authority shall pay the application fee to the county assessor for deposit in the county current expense fund, after first deducting that portion of the fee attributable to its own administrative costs in processing the application. If the application is denied, the governing authority may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant.


             NEW SECTION. Sec. 12. (1) Upon completion of rehabilitation or new construction for which an application for limited exemption under this chapter has been approved and after issuance of the certificate of occupancy, the owner shall file with the city the following:

             (a) A statement of the amount of rehabilitation or construction expenditures made with respect to each housing unit and the composite expenditures made in the rehabilitation or construction of the entire property;

             (b) A description of the work that has been completed and a statement that the rehabilitation improvements or new construction on the owner's property qualify the property for limited exemption under this chapter; and

             (c) A statement that the work has been completed within three years of the issuance of the conditional certificate of tax exemption.

             (2) Within thirty days after receipt of the statements required under subsection (1) of this section, the authorized representative of the city shall determine whether the work completed is consistent with the application and the contract approved by the governing authority and is qualified for limited exemption under this chapter. The city shall also determine which specific improvements completed meet the requirements and required findings.

             (3) If the rehabilitation, conversion, or construction is completed within three years of the date the application for limited exemption is filed under this chapter, or within an authorized extension of this time limit, and the authorized representative of the city determines that improvements were constructed consistent with the application and other applicable requirements and the owner's property is qualified for limited exemption under this chapter, the city shall file the certificate of tax exemption with the county assessor within ten days of the expiration of the thirty-day period provided under subsection (2) of this section.

             (4) The authorized representative of the city shall notify the applicant that a certificate of tax exemption is not going to be filed if the representative determines that:

             (a) The rehabilitation or new construction was not completed within three years of the application date, or within any authorized extension of the time limit;

             (b) The improvements were not constructed consistent with the application or other applicable requirements; or

             (c) The owner's property is otherwise not qualified for limited exemption under this chapter.

             (5) If the authorized representative of the city finds that construction or rehabilitation of multiple-unit housing was not completed within the required time period due to circumstances beyond the control of the owner and that the owner has been acting and could reasonably be expected to act in good faith and with due diligence, the governing authority or the city official authorized by the governing authority may extend the deadline for completion of construction or rehabilitation for a period not to exceed twenty-four consecutive months.

             (6) The governing authority may provide by ordinance for an appeal of a decision by the deciding officer or authority that an owner is not entitled to a certificate of tax exemption to the governing authority, a hearing examiner, or other city officer authorized by the governing authority to hear the appeal in accordance with such reasonable procedures and time periods as provided by ordinance of the governing authority. The owner may appeal a decision by the deciding officer or authority that is not subject to local appeal or a decision by the local appeal authority that the owner is not entitled to a certificate of tax exemption in superior court under RCW 34.05.510 through 34.05.598, if the appeal is filed within thirty days of notification by the city to the owner of the decision being challenged.


             NEW SECTION. Sec. 13. Thirty days after the anniversary of the date of the certificate of tax exemption and each year for a period of ten years, the owner of the rehabilitated or newly constructed property shall file with a designated agent of the city an annual report indicating the following:

             (1) A statement of occupancy and vacancy of the rehabilitated or newly constructed property during the twelve months ending with the anniversary date;

             (2) A certification by the owner that the property has not changed use since the date of the certificate approved by the city; and

             (3) A description of changes or improvements constructed after issuance of the certificate of tax exemption.


             NEW SECTION. Sec. 14. (1) If improvements have been exempted under this chapter, the improvements continue to be exempted and not be converted to another use for at least ten years from date of issuance of the certificate of tax exemption. If the owner intends to convert the multifamily development to another use, the owner shall notify the assessor within sixty days of the change in use. If, after a certificate of tax exemption has been filed with the county assessor the city or assessor or agent discovers that a portion of the property is changed or will be changed to a use that is other than residential or that housing or amenities no longer meet the requirements as previously approved or agreed upon by contract between the governing authority and the owner and that the multifamily housing, or a portion of the housing, no longer qualifies for the exemption, the tax exemption must be canceled and the following must occur:

             (a) Additional real property tax must be imposed upon the value of the nonqualifying improvements in the amount that would normally be imposed, plus a penalty must be imposed amounting to twenty percent. This additional tax is calculated based upon the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements dated back to the date that the improvements were converted to a nonmultifamily use;

             (b) The tax must include interest upon the amounts of the additional tax at the same statutory rate charged on delinquent property taxes from the dates on which the additional tax could have been paid without penalty if the improvements had been assessed at a value without regard to this chapter; and

             (c) The additional tax owed together with interest and penalty must become a lien on the land and attach at the time the property or portion of the property is removed from multifamily use or the amenities no longer meet applicable requirements, and has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the land may become charged or liable. The lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes. An additional tax unpaid on its due date is delinquent. From the date of delinquency until paid, interest must be charged at the same rate applied by law to delinquent ad valorem property taxes.

             (2) Upon a determination that a tax exemption is to be canceled for a reason stated in this section, the governing authority shall notify the record owner of the property as shown by the tax rolls by mail, return receipt requested, of the determination to cancel the exemption. The owner may appeal the determination to the governing authority within thirty days by filing a notice of appeal with the clerk of the governing authority, which notice must specify the factual and legal basis on which the determination of cancellation is alleged to be erroneous. The governing authority or a hearing examiner or other official authorized by the governing authority may hear the appeal. At the hearing, all affected parties may be heard and all competent evidence received. After the hearing, the deciding body or officer shall either affirm, modify, or repeal the decision of cancellation of exemption based on the evidence received. An aggrieved party may appeal the decision of the deciding body or officer to the superior court under RCW 34.05.510 through 34.05.598.

             (3) Upon determination by the governing authority or authorized representative to terminate an exemption, the county officials having possession of the assessment and tax rolls shall correct the rolls in the manner provided for omitted property under RCW 84.40.080. The county assessor shall make such a valuation of the property and improvements as is necessary to permit the correction of the rolls. The owner may appeal the valuation to the county board of equalization under chapter 84.48 RCW. If there has been a failure to comply with this chapter, the property must be listed as an omitted assessment for assessment years beginning January 1 of the calendar year in which the noncompliance first occurred, but the listing as an omitted assessment may not be for a period more than three calendar years preceding the year in which the failure to comply was discovered.


             NEW SECTION. Sec. 15. 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. 16. Sections 1 through 15 of this act shall constitute a new chapter in Title 84 RCW."


             Correct the title accordingly.


             Representative Mitchell spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Mitchell spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Second Substitute Senate Bill No. 5387 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 5387 as amended by the House, and the bill passed the House by the following vote: Yeas - 85, Nays - 10, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Chandler, Chappell, Clements, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Wolfe and Mr. Speaker - 85.

             Voting nay: Representatives Casada, Chopp, Cody, Hargrove, Hatfield, Kessler, Mason, Sheldon, Thibaudeau and Veloria - 10.

             Excused: Representatives Basich and Dellwo - 2.


             Second Substitute Senate Bill No. 5387, as amended by the House, having received the constitutional majority, was declared passed.


             ENGROSSED SENATE BILL NO. 5613, by Senators Pelz, Franklin, Hargrove, Snyder, Fraser, Bauer, McAuliffe, Smith, Prentice, Heavey and Rinehart

 

Revising the provision authorizing the department of labor and industries to hold industrial insurance orders in abeyance.


             The bill was read the second time.


             Representative Lisk moved that the committee amendment not be adopted. Committee on Commerce & Labor recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             Representative Lisk moved adoption of the following amendment by Representative Lisk:


             Strike everything after the enacting clause and insert the following:

             "Sec. 1. RCW 51.52.060 and 1986 c 200 s 11 are each amended to read as follows:

             ((Any)) (1)(a) A worker, beneficiary, employer, or other person aggrieved by an order, decision, or award of the department must, before he or she appeals to the courts, file with the board and the director, by mail or personally, within sixty days from the day on which ((such)) a copy of ((such)) the order, decision, or award was communicated to such person, a notice of appeal to the board((: PROVIDED, That)). However, a health services provider or other person aggrieved by a department order or decision making demand, whether with or without penalty, for repayment of sums paid to a provider of medical, dental, vocational, or other health services rendered to an industrially injured worker must, before he or she appeals to the courts, file with the board and the director, by mail or personally, within twenty days from the day on which ((such)) a copy of ((such)) the order or decision was communicated to the health services provider upon whom the department order or decision was served, a notice of appeal to the board.

             (b) Failure to file a notice of appeal with both the board and the department shall not be grounds for denying the appeal if the notice of appeal is filed with either the board or the department.

             (2) Within ten days of the date on which an appeal has been granted by the board, the board shall notify the other interested parties ((thereto)) to the appeal of the receipt ((thereof)) of the appeal and shall forward a copy of ((said)) the notice of appeal to ((such)) the other interested parties. Within twenty days of the receipt of such notice of the board, the worker or the employer may file with the board a cross-appeal from the order of the department from which the original appeal was taken((: PROVIDED, That nothing contained in this section shall be deemed to change, alter or modify the practice or procedure of the department for the payment of awards pending appeal: AND PROVIDED, That failure to file notice of appeal with both the board and the department shall not be ground for denying the appeal if the notice of appeal is filed with either the board or the department: AND PROVIDED, That,)).

             (3) If within the time limited for filing a notice of appeal to the board from an order, decision, or award of the department, the department ((shall)) directs the submission of further evidence or the investigation of any further fact, the time for filing ((such)) the notice of appeal shall not commence to run until ((such)) the person ((shall have)) has been advised in writing of the final decision of the department in the matter((: PROVIDED, FURTHER, That)). In the event the department ((shall)) directs the submission of further evidence or the investigation of any further fact, as ((above)) provided in this section, the department shall render a final order, decision, or award within ninety days from the date ((such)) further submission of evidence or investigation of further fact is ordered which time period may be extended by the department for good cause stated in writing to all interested parties for an additional ninety days((: PROVIDED, FURTHER, That)).

             (4) The department, either within the time limited for appeal, or within thirty days after receiving a notice of appeal, may:

             (a) Modify, reverse, or change any order, decision, or award((, or may)); or

             (b)(i) Except as provided in (b)(ii) of this subsection, hold ((any such)) an order, decision, or award in abeyance for a period of ninety days which time period may be extended by the department for good cause stated in writing to all interested parties for an additional ninety days pending further investigation in light of the allegations of the notice of appeal((, and)); or

             (ii) Hold an order, decision, or award issued under RCW 51.32.160 in abeyance for a period not to exceed ninety days from the date of receipt of an application under RCW 51.32.160. The department may extend the ninety-day time period for an additional sixty days for good cause.

             The board shall ((thereupon)) deny the appeal upon the issuance of an order under (b) (i) or (ii) of this subsection holding an earlier order, decision, or award in abeyance, without prejudice to the appellant's right to appeal from any subsequent determinative order issued by the department.

             This subsection (4)(b) does not apply to applications deemed granted under RCW 51.32.160.

             (5) An employer shall have the right to appeal an application deemed granted under RCW 51.32.160 on the same basis as any other application adjudicated pursuant to that section.

             (6) A provision of this section shall not be deemed to change, alter, or modify the practice or procedure of the department for the payment of awards pending appeal.


             Sec. 2. RCW 51.32.160  and 1988 c 161 § 11 are each amended to read as follows:

             (1)(a) If aggravation, diminution, or termination of disability takes place, the director may, upon the application of the beneficiary, made within seven years from the date the first closing order becomes final, or at any time upon his or her own motion, readjust the rate of compensation in accordance with the rules in this section provided for the same, or in a proper case terminate the payment: PROVIDED, That the director may, upon application of the worker made at any time, provide proper and necessary medical and surgical services as authorized under RCW 51.36.010. The department shall promptly mail a copy of the application to the employer at the employer's last known address as shown by the records of the department.

             (b) "Closing order" as used in this section means an order based on factors which include medical recommendation, advice, or examination.

             (c) Applications for benefits where the claim has been closed without medical recommendation, advice, or examination are not subject to the seven year limitation of this section. The preceding sentence shall not apply to any closing order issued prior to July 1, 1981. First closing orders issued between July 1, 1981, and July 1, 1985, shall, for the purposes of this section only, be deemed issued on July 1, 1985. The time limitation of this section shall be ten years in claims involving loss of vision or function of the eyes.

             (d) If an order denying an application to reopen filed on or after July 1, 1988, is not issued within ninety days of receipt of such application by the self-insured employer or the department, such application shall be deemed granted. However, for good cause, the department may extend the time for making the final determination on the application for an additional sixty days.

             (2) If a worker receiving a pension for total disability returns to gainful employment for wages, the director may suspend or terminate the rate of compensation established for the disability without producing medical evidence that shows that a diminution of the disability has occurred.

             (3) No act done or ordered to be done by the director, or the department prior to the signing and filing in the matter of a written order for such readjustment shall be grounds for such readjustment."


             Correct the title.


             Representative Lisk moved adoption of the following amendment to the amendment by Representative Lisk:


             On page 3, line 7, after "cause." insert the following:

             "For purposes of this subsection, good cause includes delay that results from conduct of the claimant that is subject to sanction under RCW 51.32.110."


             Representative Lisk spoke in favor of the adoption of the amendment to the amendment.


             The amendment to the amendment was adopted.


             Representative Lisk spoke in favor of the adoption of the amendment as amended.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Lisk and Romero spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Senate Bill No. 5613 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5613 as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 96.

             Excused: Representative Dellwo - 1.


             Engrossed Senate Bill No. 5613, as amended by the House, having received the constitutional majority, was declared passed.


             There being no objection, the House immediately considered House Bill No. 2089.


             HOUSE BILL NO. 2089, by Representatives B. Thomas, Foreman, Carrell, L. Thomas, Goldsmith, Cairnes, Johnson, Sehlin, Silver, Talcott, Smith, Campbell, Sheahan, Huff, Horn, McMorris, Beeksma, Fuhrman, Hymes, Thompson, Schoesler, Hargrove, Carlson, Pennington, Backlund, Lambert, Mitchell, Casada, Mielke, Mulliken, Honeyford, Robertson, McMahan, Buck, Stevens, Brumsickle, Benton, Sherstad, Dyer, Radcliff, Cooke, Delvin, D. Schmidt, Chandler, Ballasiotes, Elliot, Van Luven, Skinner, Blanton and Boldt

 

Enacting the taxpayer relief act of 1995.


             The bill was read the second time.


             With the consent of the House, amendment numbers 696, 847, 706 and 846 to House Bill No. 2089 were withdrawn.


             Representative G. Fisher moved adoption of the following amendment by Representative G. Fisher:


             On page 22, after line 24, insert the following:


             "Sec. 19. RCW 82.04.4451 and 1994 sp.s. c 2 s 1 are each amended to read as follows:

             (1) In computing the tax imposed under this chapter, a credit is allowed against the amount of tax otherwise due under this chapter, as provided in this section. The maximum credit for a taxpayer for a reporting period is ((thirty-five)) four hundred fifty dollars multiplied by the number of months in the reporting period, as determined under RCW 82.32.045.

             (2) When the amount of tax otherwise due under this chapter is equal to or less than the maximum credit, a credit is allowed equal to the amount of tax otherwise due under this chapter.

             (3) When the amount of tax otherwise due under this chapter exceeds the maximum credit, a reduced credit is allowed equal to twice the maximum credit, minus the tax otherwise due under this chapter, but not less than zero."


             Renumber remaining sections consecutively, correct internal references accordingly, and correct the title.


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B.Thomas:


             On page 1, after line 5, strike the remainder of the amendment and insert:

             "NEW SECTION. Sec. 19. The legislature finds:

             (1) Washington is the only state to impose a business and occupation tax upon gross income as its primary business tax;

             (2) The business and occupation tax is unrelated to a business's ability to pay;

             (3) The business and occupation tax arbitrarily penalizes businesses with low-profit margins, such as new businesses, high turnover businesses, and small, nonvertically integrated businesses;

             (4) The business and occupation tax results in multiple taxation by taxing full gross income at each stage of production, including manufacturing, wholesaling, and retailing; and

             (5) The business and occupation tax does not encourage economic development.


             NEW SECTION. Sec. 20. There is hereby created a joint select committee on business tax reform composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the joint select committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).


             NEW SECTION. Sec. 21. The joint select committee on business tax reform shall complete a thorough review of Washington's business tax system. The committee shall examine alternatives to the current business and occupation tax and recommend changes that would increase the overall fairness of the state's business tax system, reduce tax burdens for small businesses, and encourage economic development. The joint select committee on business tax reform shall submit its final report to the legislature by December 31, 1995."


             Renumber sections consecutively, correct any internal references accordingly, and correct the title.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


             Representative G. Fisher spoke against the adoption of the amendment to the amendment.


             A division was called. The Speaker called on the House to divide. The results of the division was: 62-YEAS, 34-NAYS. The amendment to the amendment was adopted.


             The amendment as amended was adopted.


             Representative R. Fisher moved adoption of the following amendment by Representative R. Fisher:


             On page 22, after line 24, insert the following:


             "Sec. 19. RCW 82.44.020 and 1993 sp.s. c 23 s 61 are each amended to read as follows:

             (1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses. The annual amount of such excise tax shall be ((two)) 1.8 percent of the value of such vehicle.

             (2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the value of such vehicle.

             (3) Effective with October 1992 motor vehicle registration expirations, a clean air excise tax is imposed in addition to any other tax imposed by this section for the privilege of using in the state any motor vehicle as defined in RCW 82.44.010, except that farm vehicles as defined in RCW 46.04.181 shall not be subject to the tax imposed by this subsection. The annual amount of the additional excise tax shall be two dollars and twenty-five cents. Effective with July 1994 motor vehicle registration expirations, the annual amount of additional excise tax shall be two dollars.

             (4) An additional excise tax is imposed on truck-type power units that are used in combination with a trailer to transport loads in excess of forty thousand pounds combined gross weight. The annual amount of such additional excise tax shall be fifty-eight one-hundredths of one percent of the value of the vehicle.

             The department shall distribute the additional tax collected under this subsection as follows:

             (a) For each trailing unit subject to subsection (5) of this section, an amount equal to the clean air excise tax prescribed in subsection (3) of this section shall be distributed in the manner prescribed in RCW 82.44.110(3);

             (b) Of the remainder of the additional excise tax collected under this subsection, ten percent shall be distributed in the manner prescribed in RCW 82.44.110(2) and ninety percent shall be distributed in the manner prescribed in RCW 82.44.110(1). This tax shall not apply to power units used exclusively for hauling logs.

             (5) The excise taxes imposed by subsections (1) through (3) of this section shall not apply to trailing units which are used in combination with a power unit subject to the additional excise tax imposed by subsection (4) of this section. This subsection shall not apply to trailing units used for hauling logs.

             (6) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

             (7) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes. The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.


             Sec. 20. RCW 82.44.110 and 1993 sp.s. c 21 s 7 and 1993 c 492 s 253 are each reenacted and amended to read as follows:

             The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter. The director shall forthwith transmit the excise taxes to the state treasurer.

             (1) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(1) as follows:

             (a) ((1.60)) 1.778 percent into the motor vehicle fund to defray administrative and other expenses incurred by the department in the collection of the excise tax.

             (b) ((8.15)) 9.056 percent into the Puget Sound capital construction account in the motor vehicle fund.

             (c) ((4.07)) 4.522 percent into the Puget Sound ferry operations account in the motor vehicle fund.

             (d) ((5.88)) 6.533 percent into the general fund to be distributed under RCW 82.44.155.

             (e) ((4.75)) 5.278 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.

             (f) ((1.60)) 1.778 percent into the county sales and use tax equalization account in the general fund created in RCW 82.14.200.

             (g) ((62.6440 percent into the general fund through June 30, 1995, and)) 57.6440 percent into the general fund beginning July 1, 1995, through December 31, 1995, and 52.937 percent thereafter.

             (h) ((5)) 5.556 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1995.

             (i) ((5.9686)) 6.632 percent into the county criminal justice assistance account created in RCW 82.14.310.

             (j) ((1.1937)) 1.326 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320.

             (k) ((1.1937)) 1.326 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330.

             (l) ((2.95)) 3.278 percent into the general fund to be distributed by the state treasurer to county health departments to be used exclusively for public health. The state treasurer shall distribute these funds proportionately among the counties based on population as determined by the most recent United States census.

             Notwithstanding (i) through (k) of this subsection, no more than sixty million dollars shall be deposited into the accounts specified in (i) through (k) of this subsection for the period January 1, 1994, through June 30, 1995. For the fiscal year ending June 30, 1998, and for each fiscal year thereafter, the amounts deposited into the accounts specified in (i) through (k) of this subsection shall not increase by more than the amounts deposited into those accounts in the previous fiscal year increased by the implicit price deflator for the previous fiscal year. Any revenues in excess of this amount shall be deposited into the general fund.

             (2) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(2) into the transportation fund.

             (3) The state treasurer shall deposit the excise tax imposed by RCW 82.44.020(3) into the air pollution control account created by RCW 70.94.015."


             Renumber remaining sections consecutively, correct internal references, and correct the title accordingly.


             On page 60, after line 14, insert the following:


             "NEW SECTION. Sec. 72. Sections 19 and 20 of this act shall take effect January 1, 1996."


             Renumber remaining sections consecutively.


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 5, strike everything through page 4, line 7, and insert:


             "NEW SECTION. Sec. 1. a. There is hereby created a joint select committee on motor vehicle excise tax relief, composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

             b. The committee shall complete a thorough study of the appropriateness of reducing the rate of the motor vehicle excise tax. The committee shall submit its final report to the legislature by December 31, 1995."


             Renumber subsections consecutively, correct any internal references accordingly, and correct the title.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


             Representative R. Fisher spoke against the adoption of the amendment to the amendment.


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


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 5, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.

             Voting nay: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representative Dellwo - 1.


             The amendment as amended was adopted.


             Representative Van Luven moved adoption of the following amendment by Representative Van Luven:


             On page 22, after line 24, insert the following:


             "NEW SECTION. Sec. 19. The department of revenue shall conduct a study on the benefits of providing a state-wide sales and use tax exemption on machinery and equipment used in cogeneration at a manufacturing site and deliver the report to the legislature by December 1, 1995. The report shall include, but not be limited to an estimate of the number of cogeneration projects that would be built, the estimated revenue impact to state and local government, and other factors the department may select. As used in this section, "cogeneration" means the simultaneous generation of electrical energy and low-grade heat from the same fuel source."


             Renumber the remaining sections consecutively and correct internal references accordingly.


             Representatives Van Luven and B. Thomas spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             Representative Chappell moved adoption of the following amendment by Representative Chappell:


             On page 22, after line 24, insert:

             "NEW SECTION. Sec. 19. A new section is added to chapter 82.04 RCW to read as follows:

             (1) During the first sixty months of operation, a new business with fewer than eight employees is exempt from taxes due under this chapter according to the following schedule:

                                                                 Year                                                                                   Exemption

                                                                 1                                                                                         50%

                                                                 2                                                                                         50%

                                                                 3                                                                                         50%

                                                                 4                                                                                         35%

                                                                 5                                                                                         20%

                                                                 after 5                                                                                 0%

             A business is not eligible for exemption under this section after the sixtieth month of operation.

             (2) As used in this section:

             (a) "New business" means a business that obtained or was required to obtain a registration certificate under RCW 82.32.030 for the first time during the calendar year for which exemption is first claimed under this chapter.

             (b) "New business" does not include:

             (i) A business that has been restructured, reorganized, or transferred, unless the majority of the activities to be conducted after restructuring, reorganization, or transferral are significantly different from the activities previously conducted;

             (ii) A new branch location or other facility except by an existing out-of-state entity first doing business in this state;

             (iii) A business that is substantially similar to a business currently operated, or operated within the past five years, by the same principals.

             The department may require a new business to certify its status as part of its master business application, or with the first tax return claiming exemption under this section."


             Renumber remaining sections consecutively and correct internal references.


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 3, strike everything through line 17 and insert:

             "NEW SECTION. Sec. 1. a. There is hereby created a joint select committee on tax reform for new businesses, composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

             b. The committee shall complete a thorough review of Washington's business tax system. The committee shall examine tax alternatives and recommend changes that would reduce tax burdens for new businesses. The committee shall submit its final report to the legislature by December 31, 1995."


             On page 2, strike lines 4 through 6


             Representative B. Thomas spoke in favor of the adoption of the to the amendment.


             Representatives Chappell, L. Thomas Ebersole, Morris and Mason spoke against the adoption of the amendment to the amendment.


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


             Representative B. Thomas again spoke in favor of the adoption of the amendment to the amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 3, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.

             Voting nay: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representative Dellwo - 1.


             The amendment as amended was adopted.


             Representative Morris moved adoption of the following amendment by Representative Morris:


             On page 22, beginning on line 25, strike all of section 19 and insert the following:


             "NEW SECTION. Sec. 19. It is the intent of sections 20 through 25 of this act to provide property tax relief for homeowners whose property taxes are at excessive levels. Rapid increases in home values often have the effect of increasing property taxes to excessive levels without an accompanying increase in a homeowner's ability to pay. Sections 20 through 25 of this act limit homeowners property taxes based on their ability to pay. Sections 20 through 25 of this act provide a means to eliminate tremendous surges in property taxes so that families will be able to keep pace and seniors will not be taxed out of their homes.


             NEW SECTION. Sec. 20. As used in this section and sections 21 through 23 of this act, except where the context clearly indicates a different meaning:

             (1) "Residence" means single-family dwelling unit whether such unit be separate or part of a multiunit dwelling, including the land on which such dwelling stands not to exceed one acre. The term shall also include a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term shall also include a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence shall be deemed real property.

             (2) "Department" means the state department of revenue.

             (3) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse during the assessment year for the treatment or care of either person received in the home or in a nursing home.

             (4) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1995, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:

             (a) Capital gains, other than nonrecognized gain on the sale of a principal residence under section 1034 of the federal internal revenue code, or gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;

             (b) Amounts deducted for loss;

             (c) Amounts deducted for depreciation;

             (d) Pension and annuity receipts;

             (e) Military pay and benefits other than attendant-care and medical-aid payments;

             (f) Veterans benefits other than attendant-care and medical-aid payments;

             (g) Federal social security act and railroad retirement benefits;

             (h) Dividend receipts; and

             (i) Interest received on state and municipal bonds.

             (5) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.


             NEW SECTION. Sec. 21. (1) A person is eligible to receive a partial reduction of regular and special property taxes if the following conditions are met:

             (a) The property taxes must have been imposed upon a residence that was owned and occupied by the person claiming the reduction as a principal place of residence as of January 1st of the year for which the reduction is claimed. Confinement of the person to a hospital or nursing home shall not disqualify the claim of reduction if the residence is temporarily unoccupied or if the residence is occupied by a spouse or a person financially dependent on the claimant for support; and

             (b) After taking the exemption under RCW 84.36.381 if applicable, the regular and special property taxes owed are in excess of five percent of the household's combined disposable income.

             (2) In determining eligibility under this section, income shall be income for the year prior to which the property taxes are due. Persons applying for a reduction under this section must apply by August 30th of each year to qualify for the reduction.


             NEW SECTION. Sec. 22. (1) The department shall provide to persons eligible under section 21(1) of this act an amount equal to that portion of regular and special property taxes that is in excess of five percent of the household's combined disposable income.

             (2) The maximum allowable reduction for any household under section 21 of this act in 1995 is one thousand dollars. Thereafter, this reduction base is adjusted annually by the department based on the implicit price deflator for personal consumption expenditures as published by the United States department of commerce.


             NEW SECTION. Sec. 23. The property tax reduction fund is created in the state treasury. Moneys in the fund may be spent only after appropriation. Expenditures from the fund may be used only for allowable reductions under section 21 of this act and costs of administering the program. The state treasurer shall credit money into the property tax reduction fund as necessary to provide property tax reductions and pay for administrative costs.


             NEW SECTION. Sec. 24. The department of revenue may adopt rules to implement sections 19 through 26 of this act.


             Sec. 25. RCW 84.52.067 and 1967 ex.s. c 133 s 2 are each amended to read as follows:

             All property taxes levied by the state for the support of common schools shall be paid into the general fund or the property tax reduction fund of the state treasury, as provided in RCW 84.56.280.


             NEW SECTION. Sec. 26. Sections 20 through 23 of this act are each added to chapter 84.36 RCW.


             NEW SECTION. Sec. 27. Sections 19 through 25 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."


             Renumber the remaining sections consecutively, correct internal references accordingly, and correct the title.


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 4, strike the remainder of the amendment and insert "On page 22, after line 31, insert:

             "NEW SECTION. Sec. 20. The legislature finds:

             (1) The property tax remains a key component of the state-local tax system, and by far the largest source of local government revenues;

             (2) Average levy rates and effective tax rates have risen substantially over the last ten years;

             (3) Property assessments may increase rapidly in certain geographic areas, resulting in sharp increases in taxes on many homeowners, without corresponding increases in ability to pay;

             (4) Property tax increases may place financial hardships on many low-income and middle-income families;

             (5) Current constitutional provisions relating to the property tax may not provide sufficient protections from such financial hardships;

             (6) Some property tax relief measures that may be proposed to address this problem would result in unfair tax shifts and other inequities; and

             (7) Some property tax relief measures that may be proposed to address this problem would result in costly administrative burdens upon state and local government budgets.


             NEW SECTION. Sec. 21. There is hereby created a joint select committee on property tax reform composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the joint select committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).


             NEW SECTION. Sec. 22. The joint select committee on property tax reform shall complete a thorough review of this state's property tax system, addressing the following issues:

             (1) What is the nature and intent of the constitutional requirement of uniformity in property taxation?

             (2) Is fair market value the only constitutionally permitted basis for property taxation?

             (3) Does the current property tax administration comply with the uniformity requirement?

             (4) Assuming the greatest practicable compliance with the uniformity requirement, is the current property tax system fair and equitable?

             (5) Is the current property tax system perceived by the taxpayers to be a fair and equitable property tax system?

             (6) What changes, if any, should the legislature make in the property tax system?

             (7) Would these changes require an amendment of the state Constitution?

             (8) What would be the consequences of these changes on individual taxpayers, classes of taxpayers, and state and local government budgets?


             NEW SECTION. Sec. 23. The joint select committee on property tax reform shall submit its final report to the legislature by December 31, 1995."


             Renumber sections consecutively, correct any internal references accordingly, and correct the title.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


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


             Representatives Morris, Brown, G. Fisher and Patterson spoke against the adoption of the amendment to the amendment.


             Representative Morris again spoke against the adoption of the amendment to the amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 4, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 60, Nays - 36, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 60.

             Voting nay: Representatives Appelwick, Basich, Benton, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 36.

             Excused: Representative Dellwo - 1.


             The amendment as amended was adopted.


             With the consent of the House, amendment numbers 697, 849, 736 and 843 to House Bill No. 2089 were withdrawn.


             Representative Cody moved adoption of the following amendment by Representative Cody:


             On page 40, line 38, after "tax" insert ", however no seller convicted under RCW 70.155.100(2)(a)(v) shall be eligible for reimbursement under this section for a period of five years"


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 4, strike everything through line 12, and insert "On page 40, after line 38, insert:

             "NEW SECTION. Sec. 1. a. There is hereby created a joint select committee on cigarette retailer reimbursement, composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

             b. The committee shall complete a thorough review of the effect of sales tax reimbursement for retailers who sell cigarettes to minors. The committee shall submit its final report to the legislature by December 31, 1995."


             Renumber subsections consecutively and correct any internal references accordingly.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


             Representative Cody spoke against the adoption of the amendment to the amendment.


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


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 4, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.

             Voting nay: Representatives Appelwick, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Koster, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representative Dellwo - 1.


             The amendment as amended was withdrawn.


             Representative Van Luven moved adoption of the following amendment by Representative Van Luven:


             On page 56, after line 23, insert the following:


             "NEW SECTION. Sec. 62. The legislature finds that property owners often hire property management companies to manage their real property. Frequently, the property management companies also manage the personnel who perform the necessary services at the property location. The property management company is merely acting as a conduit for the property owner's payment to the personnel at the property site.

             Section 63 of this act is intended to clarify that the business and occupation tax does not apply to amounts received by a property management company and paid to on-site personnel. Section 63 of this act is not intended to modify the taxation of amounts received by a property management company for purposes other than payment to on-site personnel.


             NEW SECTION. Sec. 63. A new section is added to chapter 82.04 RCW to read as follows:

             This chapter shall not apply to amounts received by a property management company from the owner of a property for gross wages and benefits paid to or on behalf of on-site personnel. In such cases, the property owners may pay the on-site personnel through use of trust accounts, dedicated bank accounts, or paymaster accounts established for this purpose by the property management company. As used in this section, "on-site personnel" means a person who meets all of the following conditions: (1) The person works at the owner's property; (2) the person's duties include leasing property units, maintaining the property, collecting rents, or similar activities; and (3) pursuant to a written property management agreement, the person's compensation is the obligation of the property owner and not the property manager."


             On page 60, line 9, after "through" strike "62" and insert "64"


             Representatives Van Luven and B. Thomas spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment numbers 704, 707 and 850 to House Bill No. 2089 were withdrawn.


             Representative Morris moved adoption of the following amendment by Representative Morris:


             On page 59, after line 38, insert the following:


             "NEW SECTION. Sec. 68. A new section is added to chapter 82.08 RCW to read as follows:

             The tax levied by RCW 82.08.020 shall not apply to sales to a volunteer fire department that does not provide any remuneration or reimbursement to any commissioner, fire fighter, or staff.


             NEW SECTION. Sec. 69. A new section is added to chapter 82.12 RCW to read as follows:

             The provisions of this chapter shall not apply in respect to the use of any item acquired by a volunteer fire department that does not provide any remuneration or reimbursement to any commissioner, fire fighter, or staff."


             On page 60, after line 16, insert the following:


             "NEW SECTION. Sec. 73. Sections 68 and 69 of this act shall take effect January 1, 1996."


             Renumber the remaining section, correct internal references, and correct the title accordingly.


             Representative Morris spoke in favor of the adoption of the amendment.


             Representative B. Thomas spoke against the adoption of the amendment.


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


             Representative Morris again spoke in favor of the adoption of the amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 59, line 38, to House Bill No. 2089 and the amendment was not adopted by the following vote: Yeas - 39, Nays - 57, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Basich, Brown, Brumsickle, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hankins, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Pennington, Poulsen, Quall, Regala, Romero, Rust, Scott, Sheldon, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 39.

             Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 57.

             Excused: Representative Dellwo - 1.


STATEMENT FOR THE JOURNAL


             In intended to vote YEA on Amendment 713 to Substitute House Bill No. 2089.


PEGGY JOHNSON, 35th District


             Representative Cole moved adoption of the following amendment by Representative Cole:


             On page 59, after line 38, insert the following:


             "NEW SECTION. Sec. 68. A new section is added to chapter 82.08 RCW to read as follows:

             The tax levied by RCW 82.08.020 shall not apply to sales to public schools, as defined in RCW 28A.150.010, and institutions of higher education, as defined in RCW 28B.10.016(4), of items necessary for the provision of services and the operation and maintenance of the public school or institution of higher education.


             NEW SECTION. Sec. 69. A new section is added to chapter 82.12 RCW to read as follows:

             The provisions of this chapter shall not apply in respect to the use by public schools, as defined in RCW 28A.150.010, and institutions of higher education, as defined in RCW 28B.10.016(4), of items acquired for the provision of services and the operation and maintenance of the public school or institution of higher education."


             On page 60, line 4, strike "67" and insert "69"


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 5, strike everything through line 23, and insert:

             "NEW SECTION. Sec. 68. (1) There is hereby created a joint select committee on education expenditures taxation, composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

             (2) The committee shall complete a thorough review of the effect of Washington's tax system on expenditures by public schools and institutions of higher education, with particular emphasis on the appropriateness of a sales and use tax exemption for those expenditures. The committee shall submit its final report to the legislature by December 31, 1995."


             Renumber subsections consecutively, correct any internal references accordingly, and correct the title.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


             Representative Cole spoke against the adoption of the amendment to the amendment.


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


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 5, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.

             Voting nay: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representative Dellwo - 1.


             The amendment as amended was adopted.


             Representative Dickerson moved adoption of the following amendment by Representative Dickerson:


             On page 59, after line 38, insert the following:


             "Sec. 68. RCW 82.08.0281 and 1993 sp.s. c 25 s 308 are each amended to read as follows:

             (1) The tax levied by RCW 82.08.020 shall not apply to sales of ((prescription)) drugs, including sales to the state or a political subdivision or municipal corporation thereof of drugs to be dispensed to patients ((by prescription)) without charge. The term "((prescription)) drugs" shall include any medicine, drug, ((prescription lens)) vitamin, or other substance other than food for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or other ailment in humans, or for use for family planning purposes, including the prevention of conception, whether supplied((:

             (1) By a family planning clinic that is under contract with the department of health to provide family planning services; or

             (2) Under the written prescription to a pharmacist by a practitioner authorized by law of this state or laws of another jurisdiction to issue prescriptions; or

             (3) Upon an oral prescription of such practitioner which is reduced promptly to writing and filed by a duly licensed pharmacist; or

             (4) By refilling any such written or oral prescription if such refilling is authorized by the prescriber either in the original prescription or by oral order which is reduced promptly to writing and filed by the pharmacist; or

             (5) By physicians or optometrists by way of written directions and specifications for the preparation, grinding, and fabrication of lenses)) by prescription of a practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions or authorized by the federal food and drug administration for over-the-counter sale.

             (2) The tax levied by RCW 82.08.020 shall not apply to sales of eyeglasses intended to aid or correct visual defects or anomalies of humans.

             (3) The tax levied by RCW 82.08.020 shall not apply to sales of the following medical care products: Fever thermometers, first aid supplies, vaporizers, humidifiers, and other health-aid appliances, and convalescent aids.

             (4) The tax levied by RCW 82.08.020 shall not apply to sales of adult incontinent pads and pants.


             Sec. 69. RCW 82.08.0283 and 1991 c 250 s 2 are each amended to read as follows:

             (1) The tax levied by RCW 82.08.020 shall not apply to sales of insulin and items necessary for injecting insulin; prosthetic ((and)) devices; orthotic devices prescribed for an individual by a person licensed under chapters 18.25, 18.57, or 18.71 RCW ((or)); hearing aids dispensed or fitted by a person licensed under chapter 18.35 RCW; medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW; ostomic items; durable medical equipment prescribed for an individual by a person authorized by the state to prescribe durable medical equipment; and medically prescribed oxygen. In addition, the tax levied by RCW 82.08.020 shall not apply to sales or charges made for tangible personal property consumed and for labor and services rendered in the repair of any of the items exempted under this section.

             (2) For the purposes of this section((,)):

             (a) "Medically prescribed oxygen" includes, but is not limited to, sale or rental of oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems to an individual under a prescription issued by a person licensed under chapter 18.57 or 18.71 RCW for use in the medical treatment of that individual.

             (b) "Durable medical equipment" includes, but is not limited to, wheelchairs, hospital beds, standing aids, walking aids, bathroom aids, aids to daily living, lifting devices and chairs, and parts and accessories of all such durable medical equipment.


             Sec. 70. RCW 82.12.0275 and 1993 sp.s. c 25 s 309 are each amended to read as follows:

             (1) The provisions of this chapter shall not apply in respect to the use of ((prescription)) drugs, including the use by the state or a political subdivision or municipal corporation thereof of drugs to be dispensed to patients ((by prescription)) without charge. The term "((prescription)) drugs" shall include any medicine, drug, ((prescription lens)) vitamin, or other substance other than food for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or other ailment in humans, or for use for family planning purposes, including the prevention of conception, whether supplied((:

             (1) By a family planning clinic that is under contract with the department of health to provide family planning services; or

             (2) Under the written prescription to a pharmacist by a practitioner authorized by law of this state or laws of another jurisdiction to issue prescriptions; or

             (3) Upon an oral prescription of such practitioner which is reduced promptly to writing and filed by a duly licensed pharmacist; or

             (4) By refilling any such written or oral prescription if such refilling is authorized by the prescriber either in the original prescription or by oral order which is reduced promptly to writing and filed by the pharmacist; or

             (5) By physicians or optometrists by way of written directions and specifications for the preparation, grinding, and fabrication of lenses)) by prescription of a practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions or authorized by the federal food and drug administration for over-the-counter sale.

             (2) The provisions of this chapter shall not apply in respect to the use of eyeglasses intended to aid or correct visual defects or anomalies of humans.

             (3) The provisions of this chapter shall not apply in respect to the use of the following medical care products: Fever thermometers, first aid supplies, vaporizers, humidifiers, and other health-aid appliances, and convalescent aids.

             (4) The provisions of this chapter shall not apply with respect to the use of adult incontinent pads and pants.


             Sec. 71. RCW 82.12.0277 and 1991 c 250 s 3 are each amended to read as follows:

             (1) The provisions of this chapter shall not apply in respect to the use of insulin and items necessary for injecting insulin; prosthetic ((and)) devices; orthotic devices prescribed for an individual by a person licensed under chapters 18.25, 18.57, or 18.71 RCW ((or)); hearing aids dispensed or fitted by a person licensed under chapter 18.35 RCW; medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW; ostomic items; durable medical equipment prescribed for an individual by a person authorized by the state to prescribe durable medical equipment; and medically prescribed oxygen. In addition, the provisions of this chapter shall not apply with respect to the use of tangible personal property consumed in the repair of any of the items exempted under this section.

             (2) For the purposes of this section((,)):

             (a) "Medically prescribed oxygen" includes, but is not limited to, sale or rental of oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems to an individual under a prescription issued by a person licensed under chapter 18.57 or 18.71 RCW for use in the medical treatment of that individual.

             (b) "Durable medical equipment" includes, but is not limited to, wheelchairs, hospital beds, standing aids, walking aids, bathroom aids, aids to daily living, lifting devices and chairs, and parts and accessories of all such durable medical equipment."


             On page 60, line 4, strike "67" and insert "71"


             The amendment was adopted.


             Representative B. Thomas moved adoption of the following amendment to the amendment by Representative B. Thomas:


             On page 1, after line 5, strike everything through page 4, line 23 and insert:

             "NEW SECTION. Sec. 1. a. There is hereby created a joint select medical products tax relief committee, composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives. The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee. The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW. Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the committee. The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

             b. The committee shall complete a thorough study of the appropriateness of sales and use tax exemptions for nonprescription drugs, vitamins, durable medical equipment, and similar medical products. The committee shall submit its final report to the legislature by December 31, 1995."


             Renumber subsections consecutively, correct any internal references accordingly, and correct the title.


             Representative B. Thomas spoke in favor of the adoption of the amendment to the amendment.


             Representative Dickerson spoke against the adoption of the amendment to the amendment.


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


ROLL CALL


             The Clerk called the roll on the adoption of the amendment, on page 1, after line 5, to House Bill No. 2089 and the amendment was adopted by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pelesky, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 61.

             Voting nay: Representatives Appelwick, Basich, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 35.

             Excused: Representative Dellwo - 1.


             The amendment as amended was adopted.


             With the consent of the House, amendment numbers 813, 842, 854, 855, 858, 859 and 860 to House Bill No. 2089 were withdrawn.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives B. Thomas, Chappell, Foreman, Smith, Morris, Benton, Sheldon and Pennington spoke in favor of passage of the bill.


             Representatives Brown, Valle, Ebersole, Conway and Romero spoke against passage of the bill.


MOTION


             On motion of Representative Sheahan, Rule 13C was suspended.


             Representative K. Schmidt demanded the previous question and the demand was sustained.


             The Speaker stated the question before the House to be final passage of Engrossed House Bill No. 2089.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 2089, and the bill passed the House by the following vote: Yeas - 75, Nays - 21, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Patterson, Pelesky, Pennington, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wolfe and Mr. Speaker - 75.

             Voting nay: Representatives Appelwick, Brown, Chopp, Cody, Cole, Conway, Costa, Dickerson, Ebersole, Fisher, R., Jacobsen, Mason, Ogden, Poulsen, Regala, Rust, Sommers, Thibaudeau, Tokuda, Valle and Veloria - 21.

             Excused: Representative Dellwo - 1.


             Engrossed House Bill No. 2089, having received the constitutional majority, was declared passed.


             ENGROSSED SUBSTITUTE SENATE BILL NO. 5943, by Senate Committee on Ways & Means (originally sponsored by Senators Rinehart, Prince, Sheldon, Deccio and Kohl)

 

Financing convention and trade centers.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Trade & Economic Development recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             Representative Van Luven moved adoption of the following amendment by Representative Van Luven:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. (1) The governing body of a city, while not required by legislative mandate to do so, may, after July 1, 1995, by resolution or ordinance for the purposes authorized under sections 5 and 7 of this act, fix and impose a sales tax on the charge for rooms to be used for lodging by transients in accordance with the terms of chapter . . ., Laws of 1995 (this act). Such tax shall be collected from those persons who are taxable by the state under RCW 67.40.090, but only those taxable persons located within the boundaries of the city imposing the tax. The rate of such tax imposed by a city shall be two percent of the charge for rooms to be used for lodging by transients. Any such tax imposed under this section shall not be collected prior to January 1, 2000. The tax authorized under this section shall be levied and collected in the same manner as those taxes authorized under chapter 82.14 RCW. Penalties, receipts, abatements, refunds, and all other similar matters relating to the tax shall be as provided in chapter 82.08 RCW.

             (2) The tax levied under this section shall remain in effect and not be modified for that period for which the principal and interest obligations of state bonds issued to finance the expansion of the state convention and trade center under RCW 67.40.030 remain outstanding.

             (3) As used in this section, the term "city" means a municipality that has within its boundaries a convention and trade facility as defined in RCW 67.40.020.


             NEW SECTION. Sec. 2. When remitting sales tax receipts to the state under RCW 82.14.050, the city treasurer, or its designee, shall at the same time remit the sales taxes collected under section 1 of this act for the municipality. The sum so collected and paid over on behalf of the municipality shall be credited against the amount of the tax otherwise due to the state from those same taxpayers under RCW 82.08.020(1).


             NEW SECTION. Sec. 3. (1) The cities shall contract, prior to the effective date of a resolution or ordinance imposing a sales tax under section 1 of this act, the administration and collection of the local option sales tax to the state department of revenue at no cost to the municipality. The tax authorized by chapter . . ., Laws of 1995 (this act) which is collected by the department of revenue shall be deposited by the state into the account created under RCW 67.40.040 in the state treasury.

             (2) The sales tax authorized under section 1 of this act shall be due and payable in the same manner as those taxes authorized under RCW 82.14.030.


             NEW SECTION. Sec. 4. The state sales tax on construction performed under section 5 of this act collected by the department of revenue under chapter 82.08 RCW shall be deposited by the state into the account created under RCW 67.40.040 in the state treasury.


             NEW SECTION. Sec. 5. All taxes levied and collected under section 1 of this act shall be credited to the state convention and trade center account in the state treasury and used solely by the corporation formed under RCW 67.40.020 for the purpose of paying all or any part of the cost associated with: The financing, design, acquisition, construction, equipping, operating, maintaining, and reequipping of convention center facilities related to the expansion recommended by the convention center expansion and city facilities task force created under section 148, chapter 6, Laws of 1994 sp. sess.; the acquisition, construction, and relocation costs of replacement housing; and the repayment of loans and advances from the state, including loans authorized previously under this chapter, or to pay or secure the payment of all or part of the principal of or interest on any state bonds issued for purposes authorized under this chapter.


             NEW SECTION. Sec. 6. Upon the effective date of this act, the corporation may proceed with preliminary design and planning activities, environmental studies, and real estate appraisals for convention center improvements. No other expenditures may be made in support of the expansion project recommended by the convention center expansion and city facilities task force created under section 148, chapter 6, Laws of 1994 sp. sess. prior to acceptance by the board of directors of the corporation of an irrevocable commitment for funding from public or private participants consistent with the expansion development study task force recommendations report dated December 1994.


             NEW SECTION. Sec. 7. (1) Moneys received from any tax imposed under section 1 of this act shall be used for the purpose of providing funds to the corporation for the costs associated with paying all or any part of the cost associated with: The financing, design, acquisition, construction, equipping, operating, maintaining, and reequipping of convention center facilities; the acquisition, construction, and relocation costs of replacement housing; and repayment of loans and advances from the state, including loans authorized previously under this chapter, or to pay or secure the payment of all or part of the principal of or interest on any state bonds issued for purposes authorized under this chapter.

             (2) If any of the revenue from any local sales tax authorized under section 1 of this act shall have been encumbered or pledged by the state to secure the payment of any state bonds as authorized under RCW 67.40.030, then as long as that agreement or pledge shall be in effect, the legislature shall not withdraw from the municipality the authority to levy and collect the tax or the tax credit authorized under sections 1 and 2 of this act.


             Sec. 8. RCW 67.28.180 and 1991 c 363 s 139 and 1991 c 336 s 1 are each reenacted and amended to read as follows:

             (1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property: PROVIDED, That it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

             (2) Any levy authorized by this section shall be subject to the following:

             (a) Any county ordinance or resolution adopted pursuant to this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.

             (b) In the event that any county has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such county shall be exempt from the provisions of (a) of this subsection, to the extent that the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160: PROVIDED, That so much of such pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used: (i) In any county with a population of one million or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred; or (ii) in other counties, for county-owned facilities for agricultural promotion. A county is exempt under this subsection in respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013.

             As used in this subsection (2)(b), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto. The stadium restaurant authorized by this subsection (2)(b) shall be operated by a private concessionaire under a contract with the county.

             (c) No city within a county exempt under subsection (2)(b) of this section may levy the tax authorized by this section so long as said county is so exempt: PROVIDED, That in the event that any city in such county has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such city may levy the tax so long as ((and to the extent that)) the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.

             (3) Any levy authorized by this section by a county that has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160 shall be subject to the following:

             (a) Taxes collected under this section in any calendar year in excess of five million three hundred thousand dollars shall only be used as follows:

             (i) Seventy-five percent from January 1, 1992, through December 31, 2000, and seventy percent from January 1, 2001, through December 31, 2012, for art museums, cultural museums, heritage museums, the arts, and the performing arts. Moneys spent under this subsection (3)(a)(i) shall be used for the purposes of this subsection (3)(a)(i) in all parts of the county.

             (ii) Twenty-five percent from January 1, 1992, through December 31, 2000, and thirty percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority: Stadium capital improvements, as defined in subsection (2)(b) of this section; acquisition of open space lands; youth sports activities; and tourism promotion.

             (b) At least seventy percent of moneys spent under (a)(i) of this subsection for the period January 1, 1992, through December 31, 2000, shall be used only for the purchase, design, construction, and remodeling of performing arts, visual arts, heritage, and cultural facilities, and for the purchase of fixed assets that will benefit art, heritage, and cultural organizations. For purposes of this subsection, fixed assets are tangible objects such as machinery and other equipment intended to be held or used for ten years or more. Moneys received under this subsection (3)(b) may be used for payment of principal and interest on bonds issued for capital projects. Qualifying organizations receiving moneys under this subsection (3)(b) must be financially stable and have at least the following:

             (i) A legally constituted and working board of directors;

             (ii) A record of artistic, heritage, or cultural accomplishments;

             (iii) Been in existence and operating for at least two years;

             (iv) Demonstrated ability to maintain net current liabilities at less than thirty percent of general operating expenses;

             (v) Demonstrated ability to sustain operational capacity subsequent to completion of projects or purchase of machinery and equipment; and

             (vi) Evidence that there has been independent financial review of the organization.

             (c) At least forty percent of the revenues distributed pursuant to (a)(i) of this subsection for the period January 1, 2001, through December 31, 2012, shall be deposited in an account and shall be used to establish an endowment. Principal in the account shall remain permanent and irreducible. The earnings from investments of balances in the account may only be used for the purposes of (a)(i) of this subsection.

             (d) School districts and schools shall not receive revenues distributed pursuant to (a)(i) of this subsection.

             (e) Moneys distributed to art museums, cultural museums, heritage museums, the arts, and the performing arts, and moneys distributed for tourism promotion shall be in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.

             (f) As used in this section, "tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events. Moneys allocated to tourism promotion in a class AA county shall be allocated to nonprofit organizations formed for the express purpose of tourism promotion in the county. Such organizations shall use moneys from the taxes to promote events in all parts of the class AA county.

             (g) No taxes collected under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged. Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.

             (h) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes collected under this section are or are projected to be insufficient to meet debt service requirements on such bonds.

             (i) If ((a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if)) a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged shall be retired.

             (j) The county shall not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government. This subsection (3)(j) does not apply to contracts in existence on April 1, 1986.

             If a court of competent jurisdiction declares any provision of this subsection (3) invalid, then that invalid provision shall be null and void and the remainder of this section is not affected.


             Sec. 9. RCW 67.28.182 and 1987 c 483 s 2 are each amended to read as follows:

             (1) The legislative body of ((Pierce)) any county with a population of over five hundred thousand but less than one million, within which is a national park, and the ((councils)) legislative bodies of cities in ((Pierce county)) these counties are each authorized to levy and collect a special excise tax of not to exceed ((two)) five percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. For the purposes of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

             (2) Any county ordinance or resolution adopted under this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed under this section upon the same taxable event.

             (3) Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section shall pay over such tax to the county or city as provided in RCW 67.28.200. The deduction from state taxes under RCW 67.28.190 does not apply to taxes imposed under this section.

             (4) All taxes levied and collected under this section shall be credited to a special fund in the treasury of the county or city. Such taxes shall be levied ((only)) as follows: (a) At least two percent for the purpose of visitor and convention promotion and development, including marketing of local convention facilities; and (b) at least three percent for the acquisition, construction, expansion, marketing, management, and financing of convention facilities, and facilities necessary to support major tourism destination attractions that serve a minimum of one million visitors per year. Until withdrawn for use, the moneys accumulated in such fund may be invested in interest bearing securities by the county or city treasurer in any manner authorized by law.


             Sec. 10. RCW 67.28.240 and 1993 sp.s. c 16 s 3 are each amended to read as follows:

             (1) The legislative body of a county that qualified under RCW 67.28.180(2)(b) other than a county with a population of one million or more and the legislative bodies of cities in the qualifying county are each authorized to levy and collect a special excise tax of three percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. For the purposes of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

             (2) No ((city may impose the special excise tax authorized in subsection (1) of this section during the time the city is imposing the tax under RCW 67.28.180, and no)) county may impose the special excise tax authorized in subsection (1) of this section until such time as those cities within the county containing at least one-half of the total incorporated population have imposed the tax.

             (3) Any county ordinance or resolution adopted under this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed under this section upon the same taxable event.

             (4) Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section shall pay over such tax to the county or city as provided in RCW 67.28.200. The deduction from state taxes under RCW 67.28.190 does not apply to taxes imposed under this section.


             NEW SECTION. Sec. 11. RCW 67.28.250 and 1992 c 156 s 2 & 1988 ex.s. c 1 s 22 are each repealed.


             Sec. 12. RCW 67.40.020 and 1993 c 500 s 9 are each amended to read as follows:

             (1) The governor is authorized to form a public nonprofit corporation in the same manner as a private nonprofit corporation is formed under chapter 24.03 RCW. The public corporation shall be an instrumentality of the state and have all the powers and be subject to the same restrictions as are permitted or prescribed to private nonprofit corporations, but shall exercise those powers only for carrying out the purposes of this chapter and those purposes necessarily implied therefrom. The governor shall appoint a board of nine directors for the corporation who shall serve terms of six years, except that two of the original directors shall serve for two years and two of the original directors shall serve for four years. After January 1, 1991, at least one position on the board shall be filled by a member representing management in the hotel or motel industry subject to taxation under RCW 67.40.090. The directors may provide for the payment of their expenses. The corporation may ((cause a state convention and trade center with an overall size of approximately three hundred thousand square feet to be designed and constructed on a site in the city of Seattle. In acquiring, designing, and constructing the state convention and trade center, the corporation shall consider the recommendations and proposals issued on December 11, 1981, by the joint select committee on the state convention and trade center)) acquire, construct, expand, and improve the state convention and trade center within the city of Seattle. Notwithstanding the provisions of subsection (2) of this section, the corporation may acquire, lease, sell, or otherwise encumber property rights, including but not limited to development or condominium rights, deemed by the corporation as necessary for facility expansion.

             (2) The corporation may acquire and transfer real and personal property by lease, sublease, purchase, or sale, and further acquire property by condemnation of privately owned property or rights to and interests in such property pursuant to the procedure in chapter 8.04 RCW. However, acquisitions and transfers of real property, other than by lease, may be made only if the acquisition or transfer is approved by the director of financial management in consultation with the chairpersons of the appropriate fiscal committees ((on ways and means)) of the senate and house of representatives. The corporation may accept gifts or grants, request the financing provided for in RCW 67.40.030, cause the state convention and trade center facilities to be constructed, and do whatever is necessary or appropriate to carry out those purposes. Upon approval by the director of financial management in consultation with the chairpersons of the ((ways and means)) appropriate fiscal committees of the house of representatives and the senate, the corporation may enter into lease and sublease contracts for a term exceeding the fiscal period in which these lease and sublease contracts are made. The terms of sale or lease of properties acquired by the corporation on February 9, 1987, pursuant to the property purchase and settlement agreement entered into by the corporation on June 12, 1986, including the McKay parcel which the corporation is contractually obligated to sell under that agreement, shall also be subject to the approval of the director of financial management in consultation with the chairpersons of the ((ways and means)) appropriate fiscal committees of the house of representatives and the senate. No approval by the director of financial management is required for leases of individual retail space, meeting rooms, or convention-related facilities. In order to allow the corporation flexibility to secure appropriate insurance by negotiation, the corporation is exempt from RCW 48.30.270. The corporation shall maintain, operate, promote, and manage the state convention and trade center.

             (3) In order to allow the corporation flexibility in its personnel policies, the corporation is exempt from chapter 41.06 RCW, chapter 41.05 RCW, RCW 43.01.040 through 43.01.044, chapter 41.04 RCW and chapter 41.40 RCW.


             Sec. 13. RCW 67.40.030 and 1990 c 181 s 1 are each amended to read as follows:

             For the purpose of providing funds for the state convention and trade center, the state finance committee is authorized to issue, upon request of the corporation formed under RCW 67.40.020 and in one or more offerings, general obligation bonds of the state of Washington in the sum of ((one)) two hundred sixty million, seven hundred sixty-five thousand dollars, or so much thereof as may be required, to finance this project and all costs incidental thereto, to capitalize all or a portion of interest during construction, to provide for expansion, renovation, exterior cleanup and repair of the Eagles building, conversion of various retail and other space to meeting rooms, and contingency costs of the center, purchase of the McKay Parcel as defined in the property and purchase agreement entered into by the corporation on June 12, 1986, development of low-income housing and to reimburse the general fund for expenditures in support of the project and for those expenditures authorized under section 5 of this act. The state finance committee may make such bond covenants as it deems necessary to carry out the purposes of this section and this chapter. No bonds authorized in this section may be offered for sale without prior legislative appropriation.


             Sec. 14. RCW 67.40.040 and 1991 sp.s. c 13 s 11 are each amended to read as follows:

             (1) The proceeds from the sale of the bonds authorized in RCW 67.40.030, proceeds of the ((tax)) taxes imposed under RCW 67.40.090 and section 1 of this act, and all other moneys received by the state convention and trade center from any public or private source which are intended to fund the acquisition, design, construction, expansion, exterior cleanup and repair of the Eagles building, conversion of various retail and other space to meeting rooms, purchase of the land and building known as the McKay Parcel, development of low-income housing, or renovation of the center, and those expenditures authorized under section 5 of this act shall be deposited in the state convention and trade center account hereby created in the state treasury and in such subaccounts as are deemed appropriate by the directors of the corporation.

             (2) Moneys in the account, including unanticipated revenues under RCW 43.79.270, shall be used exclusively for the following purposes in the following priority:

             (a) For reimbursement of the state general fund under RCW 67.40.060;

             (b) After appropriation by statute:

             (i) For payment of expenses incurred in the issuance and sale of the bonds issued under RCW 67.40.030;

             (ii) For expenditures authorized in section 5 of this act;

             (iii) For acquisition, design, and construction of the state convention and trade center; and

             (((iii))) (iv) For reimbursement of any expenditures from the state general fund in support of the state convention and trade center; and

             (c) For transfer to the state convention and trade center operations account.

             (3) The corporation shall identify with specificity those facilities of the state convention and trade center that are to be financed with proceeds of general obligation bonds, the interest on which is intended to be excluded from gross income for federal income tax purposes. The corporation shall not permit the extent or manner of private business use of those bond-financed facilities to be inconsistent with treatment of such bonds as governmental bonds under applicable provisions of the Internal Revenue Code of 1986, as amended.

             (4) In order to ensure consistent treatment of bonds authorized under chapter . . ., Laws of 1995 (this act) with applicable provisions of the Internal Revenue Code of 1986, as amended, and notwithstanding RCW 43.84.092, investment earnings on bond proceeds deposited in the state convention and trade center account in the state treasury shall be retained in the account, and shall be expended by the corporation for the purposes authorized under chapter . . ., Laws of 1995 (this act) and in a manner consistent with applicable provisions of the Internal Revenue Code of 1986, as amended.


             Sec. 15. RCW 67.40.045 and 1993 sp.s. c 12 s 9 are each amended to read as follows:

             (1) The director of financial management, in consultation with the chairpersons of the ((ways and means)) appropriate fiscal committees of the senate and house of representatives, may authorize temporary borrowing from the state treasury for the purpose of covering cash deficiencies in the state convention and trade center account resulting from project completion costs. Subject to the conditions and limitations provided in this section, lines of credit may be authorized at times and in amounts as the director of financial management determines are advisable to meet current and/or anticipated cash deficiencies. Each authorization shall distinctly specify the maximum amount of cash deficiency which may be incurred and the maximum time period during which the cash deficiency may continue. The total amount of borrowing outstanding at any time shall never exceed the lesser of:

             (a) $58,275,000; or

             (b) An amount, as determined by the director of financial management from time to time, which is necessary to provide for payment of project completion costs.

             (2) Unless the due date under this subsection is extended by statute, all amounts borrowed under the authority of this section shall be repaid to the state treasury by June 30, ((1997)) 1999, together with interest at a rate determined by the state treasurer to be equivalent to the return on investments of the state treasury during the period the amounts are borrowed. Borrowing may be authorized from any excess balances in the state treasury, except the agricultural permanent fund, the Millersylvania park permanent fund, the state university permanent fund, the normal school permanent fund, the permanent common school fund, and the scientific permanent fund.

             (3) As used in this section, "project completion" means:

             (a) All remaining development, construction, and administrative costs related to completion of the convention center; and

             (b) Costs of the McKay building demolition, Eagles building rehabilitation, development of low-income housing, and construction of rentable retail space and an operable parking garage.

             (4) It is the intent of the legislature that project completion costs be paid ultimately from the following sources:

             (a) $29,250,000 to be received by the corporation under an agreement and settlement with Industrial Indemnity Co.;

             (b) $1,070,000 to be received by the corporation as a contribution from the city of Seattle;

             (c) $20,000,000 from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;

             (d) $4,765,000 for contingencies and project reserves from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;

             (e) $13,000,000 for conversion of various retail and other space to meeting rooms, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;

             (f) $13,300,000 for expansion at the 900 level of the facility, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;

             (g) $10,400,000 for purchase of the land and building known as the McKay Parcel, for development of low-income housing, for development, construction, and administrative costs related to completion of the state convention and trade center, including settlement costs related to construction litigation, and for partially refunding obligations under the parking garage revenue note issued by the corporation to Industrial Indemnity Company in connection with the agreement and settlement identified in (a) of this subsection, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090. All proceeds from any sale of the McKay parcel shall be deposited in the state convention and trade center account and shall not be expended without appropriation by law;

             (h) $300,000 for Eagles building exterior cleanup and repair, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090; and

             (i) The proceeds of the sale of any properties owned by the state convention and trade center that are not planned for use for state convention and trade center operations, with the proceeds to be used for development, construction, and administrative costs related to completion of the state convention and trade center, including settlement costs related to construction litigation.

             (5) The borrowing authority provided in this section is in addition to the authority to borrow from the general fund to meet the bond retirement and interest requirements set forth in RCW 67.40.060. To the extent the specific conditions and limitations provided in this section conflict with the general conditions and limitations provided for temporary cash deficiencies in RCW 43.88.260 (section 7, chapter 502, Laws of 1987), the specific conditions and limitations in this section shall govern.

             (6) For expenditures authorized under section 5 of this act, the corporation may use the proceeds of the special excise tax authorized under RCW 67.40.090, the sales tax authorized under section 1 of this act, contributions to the corporation from public or private participants, and investment earnings on any of the funds listed in this subsection.


             Sec. 16. RCW 67.40.090 and 1991 c 2 s 3 are each amended to read as follows:

             (1) Commencing April 1, 1982, there is imposed, and the department of revenue shall collect, in King county a special excise tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, except that no such tax may be levied on any premises having fewer than sixty lodging units. It shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes rental or lease of real property and not a mere license to use or enjoy the same. The legislature on behalf of the state pledges to maintain and continue this tax until the bonds authorized by this chapter are fully redeemed, both principal and interest.

             (2) The rate of the tax imposed under this section shall be as provided in this subsection.

             (a) From April 1, 1982, through December 31, 1982, inclusive, the rate shall be three percent in the city of Seattle and two percent in King county outside the city of Seattle.

             (b) From January 1, 1983, through June 30, 1988, inclusive, the rate shall be five percent in the city of Seattle and two percent in King county outside the city of Seattle.

             (c) From July 1, 1988, through December 31, 1992, inclusive, the rate shall be six percent in the city of Seattle and two and four-tenths percent in King county outside the city of Seattle.

             (d) From January 1, 1993, and until ((the change date)) bonds and all other borrowings authorized under RCW 67.40.030 are retired, the rate shall be seven percent in the city of Seattle and two and eight-tenths percent in King county outside the city of Seattle.

             (e) Except as otherwise provided in (d) of this subsection, on and after the change date, the rate shall be six percent in the city of Seattle and two and four-tenths percent in King county outside the city of Seattle.

             (f) As used in this section, "change date" means the October 1st next occurring after certification occurs under (g) of this subsection.

             (g) On August 1st of 1998 and of each year thereafter until certification occurs under this subsection, the state treasurer shall determine whether seventy-one and forty-three one-hundredths percent of the revenues actually collected and deposited with the state treasurer for the tax imposed under this section during the twelve months ending June 30th of that year, excluding penalties and interest, exceeds the amount actually paid in debt service during the same period for bonds issued under RCW 67.40.030 by at least two million dollars. If so, the state treasurer shall so certify to the department of revenue.

             (3) The proceeds of the special excise tax shall be deposited as provided in this subsection.

             (a) Through June 30, 1988, inclusive, all proceeds shall be deposited in the state convention and trade center account.

             (b) From July 1, 1988, through December 31, 1992, inclusive, eighty-three and thirty-three one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.

             (c) From January 1, 1993, until the change date, eighty-five and seventy-one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.

             (d) On and after the change date, eighty-three and thirty-three one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.

             (4) Chapter 82.32 RCW applies to the tax imposed under this section.


             NEW SECTION. Sec. 17. Sections 1 through 7 of this act are each added to chapter 67.40 RCW.


             NEW SECTION. Sec. 18. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


             NEW SECTION. Sec. 19. 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 "centers;" strike the remainder of the title and insert "amending RCW 67.28.182, 67.28.240, 67.40.020, 67.40.030, 67.40.040, 67.40.045, and 67.40.090; reenacting and amending RCW 67.28.180; adding new sections to chapter 67.40 RCW; repealing RCW 67.28.250; and declaring an emergency."


             Representative Mielke moved adoption of the following amendment to the amendment by Representative Mielke:


             On page 11, after line 9, insert the following:

             "NEW SECTION. Sec. 12. A new section is added to chapter 67.28 RCW to read as follows:

             (l) The legislative body of a city located east of the crest of the Cascade mountains with a population of not less than one hundred seventy-five thousand is authorized to levy and collect an additional excise tax not to exceed two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. For the purpose of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

             (2) The provisions of RCW 67.28.190 apply to the tax levied and collected under this section.

             (3) All taxes levied and collected under this section shall be credited to a special fund in the treasury of the city. Such taxes only for the acquisition, construction, expansion, renovation, maintenance, and operation of a convention and trade center owned by the city."

             Renumber the remaining sections consecutively, correct the internal references accordingly and correct the title.


             Representatives Mielke and Brown spoke in favor of the adoption of the amendment to the amendment.


             Representatives Sehlin and B. Thomas spoke against the adoption of the amendment to the amendment.


             Representative Mielke again spoke in favor of the adoption of the amendment to the amendment.


             The amendment was not adopted.


             Representative Ballasiotes moved adoption of the following amendment to the amendment by Representative Ballasiotes:


             On page 11, line 10 of the amendment, strike section 13


             On page 12, line 33, strike "chapter...,Laws of 1995 (this act)" and insert "RCW 67.40.030"


             Representative Ballasiotes spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 825 to Engrossed Substitute Senate Bill No. 5943 was withdrawn.


             Representatives Van Luven, Huff, Horn and Robertson spoke in favor of the adoption of the amendment as amended.


             Representatives Sehlin and Sherstad spoke against the adoption of the amendment as amended.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Ogden, Ballasiotes and Dyer spoke in favor of passage of the bill.


             Representatives Sommers and Hargrove spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5943 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5943 as amended by the House, and the bill passed the House by the following vote: Yeas - 54, Nays - 42, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Hatfield, Hickel, Horn, Huff, Jacobsen, Kessler, Mitchell, Ogden, Patterson, Poulsen, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Scott, Skinner, Talcott, Thibaudeau, Thomas, B., Thompson, Tokuda, Valle, Van Luven, Wolfe and Mr. Speaker - 54.

             Voting nay: Representatives Beeksma, Brown, Campbell, Carlson, Carrell, Casada, Chandler, Crouse, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Honeyford, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Morris, Mulliken, Pelesky, Pennington, Quall, Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Smith, Sommers, Stevens, Thomas, L. and Veloria - 42.

             Excused: Representative Dellwo - 1.


             Engrossed Substitute Senate Bill No. 5943, as amended by the House, having received the constitutional majority, was declared passed.


             SUBSTITUTE SENATE BILL NO. 5127, by Senate Committee on Government Operations (originally sponsored by Senators West, Haugen, Morton, Prince, Moyer and McCaslin)

 

Changing provisions regarding public facilities districts.


             The bill was read the second time.


             There being no objection, the committee amendment was moved. Committee on Finance recommendation: Majority, do pass as amended. (For committee amendment see Journal, 85th Day, april 3, 1995.)


             Representative B. Thomas moved adoption of the following amendment to the committee amendment by Representative B. Thomas:


             On page 2, after line 33, insert:

             "A vacancy shall be filled in the same manner as the original appointment was made and the person appointed to fill a vacancy shall serve for the remainder of the unexpired term of the office for the position to which he or she was appointed.

             A director may be removed from office for cause by action of at least two-thirds of the members of the county legislative authority."


             Representative B. Thomas spoke in favor of the adoption of the amendment to the committee amendment.


             The amendment was adopted.


             The amendment as amended was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Reams spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5127 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5127 as amended by the House, and the bill passed the House by the following vote: Yeas - 70, Nays - 26, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Carlson, Carrell, Chappell, Chopp, Clements, Cody, Cole, Conway, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Fisher, G., Fisher, R., Foreman, Hankins, Hatfield, Horn, Huff, Hymes, Jacobsen, Kessler, Lambert, Mason, McMahan, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Rust, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Silver, Skinner, Sommers, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 70.

             Voting nay: Representatives Beeksma, Cairnes, Campbell, Casada, Chandler, Cooke, Elliot, Fuhrman, Goldsmith, Grant, Hargrove, Hickel, Honeyford, Johnson, Koster, Kremen, Lisk, Mastin, McMorris, Pennington, Romero, Schmidt, K., Sheldon, Sherstad, Smith and Stevens - 26.

             Excused: Representative Dellwo - 1.


             Substitute Senate Bill No. 5127, as amended by the House, having received the constitutional majority, was declared passed.


             ENGROSSED SUBSTITUTE SENATE BILL NO. 6049, by Senate Committee on Ways & Means (originally sponsored by Senators Prentice, Finkbeiner, Snyder and Pelz)

 

Financing public stadiums used by sports teams.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Trade & Economic Development recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             Representative Van Luven moved adoption of the following amendment by Representative Van Luven:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 67.28 RCW to read as follows:

             The legislative authority of a county with a population of one million or more may by resolution or ordinance impose a sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall be two percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax. Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section for any county shall pay over such tax to the county as provided in RCW 67.28.200 and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and pay over to the department of revenue under RCW 82.14.030 and 82.14.049. All taxes levied and collected under this section shall be deposited into the baseball stadium account created in section 3 of this act.


             NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

             In computing tax there may be deducted from the measure of tax by those engaged in banking, loan, security, or other financial businesses, amounts derived from interest received on loans for the siting, acquisition, or construction of a major league baseball stadium in a county with a population of one million or more.


             NEW SECTION. Sec. 3. A new section is added to chapter 67.28 RCW to read as follows:

             The baseball stadium account is created in the state treasury. The account shall include revenue from the sources established by section 1 of this act, appropriations by the legislature, private contributions, and all other sources. Expenditures from the fund may be used only for the purpose of paying all or part of the cost of the siting, acquisition, and construction of a major league baseball stadium by a county with a population of one million or more. To be eligible to receive disbursements from the fund, a county must evidence intent to build a stadium through the adoption of a resolution and must establish that it is obligated and committed to the project. Only the director of the office of financial management 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.


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

             (1) "Applicant" means a person applying for a tax deferral under this chapter.

             (2) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.

             (3) "Department" means the department of revenue.

             (4) "Initiation of construction" means that date upon which on-site construction commences.

             (5) "Investment project" means construction of buildings, site preparation, and the acquisition of related machinery and equipment when the buildings, machinery, and equipment are to be used in the siting, acquisition, and construction of a major league baseball stadium, including services and labor rendered and tangible personal property consumed.

             (6) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a major league baseball stadium.

             (7) "Major league baseball stadium" means a site for major league baseball that is located in a county with a population of one million or more on which construction is commenced after the effective date of this act and prior to July 1, 1999.

             (8) "Operationally complete" means constructed or improved to the point of being functionally useable for major league baseball.

             (9) "Person" has the meaning given in RCW 82.04.030.

             (10) "Recipient" means a person receiving a tax deferral under this chapter.


             NEW SECTION. Sec. 5. Application for deferral of taxes under this chapter shall be made before initiation of construction of the major league baseball stadium or acquisition of machinery and equipment. The application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the location of the investment project, estimated or actual costs, time schedules for completion and operation, and other information required by the department. The department shall rule on the application within sixty days.


             NEW SECTION. Sec. 6. (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each investment project. The use of the certificate shall be governed by rules established by the department.

             (2) This section shall expire July 1, 1999.


             NEW SECTION. Sec. 7. (1) The recipient shall begin paying the deferred taxes in the fifth year after the date certified by the department as the date on which the investment project is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years with amounts of payment scheduled as follows:

 

                          Repayment Year                                      % of Deferred Tax Repaid

                                      1                                                                         10%

                                      2                                                                         10%

                                      3                                                                         10%

                                      4                                                                         10%

                                      5                                                                         10%

                                      6                                                                         10%

                                      7                                                                         10%

                                      8                                                                         10%

                                      9                                                                         10%

                                     10                                                                        10%

 

             (2) The department may authorize an accelerated repayment schedule upon request of the recipient.

             (3) Interest shall not be charged on any taxes deferred under this chapter for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this chapter. The debt for deferred taxes is not extinguished by insolvency or other failure of the recipient.


             NEW SECTION. Sec. 8. Chapter 82.32 RCW applies to the administration of this chapter.


             NEW SECTION. Sec. 9. Applications and any other information received by the department under this chapter is not confidential and is subject to disclosure.


             NEW SECTION. Sec. 10. Sections 4 through 9 of this act shall constitute a new chapter in Title 82 RCW.


             NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


             NEW SECTION. Sec. 12. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995."


             On page 1, line 2 of the title, after "teams;" strike the remainder of the title and insert "adding new sections to chapter 67.28 RCW; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 82 RCW; providing an effective date; and declaring an emergency."


             Representative Van Luven spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             With the consent of the House, amendment number 699 to Engrossed Substitute Senate Bill No. 6049 was withdrawn.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


POINT OF INQUIRY


             Representative Appelwick yielded to a question by Representative Hatfield.


             Representative Hatfield: Thank you Mr. Speaker. I'm just curious as to how the public investment in this project compares to similar undertakings in Arlington, Texas, Baltimore and Cleveland.


             Representative Appelwick: The bill itself doesn't require any requirements but the Task Force recommended to the county that before they sign a lease the county would require a minimum of 35% but closer t a 45% commitment. That's higher than any other public stadium built in this county. Before this goes forward the local officials have asked to have that substantial commitment in terms of public funding. And secondly have asked to have a lien against the franchise in the event of sale to retire the debt. That has also not been done in this country yet.


             Representatives D. Schmidt, Appelwick, Van Luven and Quall spoke in favor of passage of the bill.


             Representatives Sheldon, Mason, Campbell and Hargrove spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6049 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6049 as amended by the House, and the bill failed to pass the House by the following vote: Yeas - 40, Nays - 56, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Ballasiotes, Basich, Blanton, Chopp, Cody, Delvin, Dickerson, Dyer, Ebersole, Fisher, G., Fisher, R., Foreman, Grant, Hankins, Hatfield, Horn, Huff, Jacobsen, Lambert, Poulsen, Quall, Radcliff, Reams, Regala, Rust, Schmidt, D., Schoesler, Sheahan, Sommers, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria and Mr. Speaker - 40.

             Voting nay: Representatives Backlund, Beeksma, Benton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cole, Conway, Cooke, Costa, Crouse, Elliot, Fuhrman, Goldsmith, Hargrove, Hickel, Honeyford, Hymes, Johnson, Kessler, Koster, Kremen, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Pennington, Robertson, Romero, Schmidt, K., Scott, Sehlin, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens and Wolfe - 56.

             Excused: Representative Dellwo - 1.


             Engrossed Substitute Senate Bill No. 6049, as amended by the House, having received the constitutional majority, was declared failed.


MOTION FOR RECONSIDERATION


             Representative Dyer: Having voted on the prevailing side of which Engrossed Substitute Senate Bill No. 6049 failed to pass the House moved for immediately reconsideration.


             A division was called. The Speaker called on the House to divide. The results of the division was: 55-YEAS, 41-NAYS. The motion was adopted.


             There being no objection, the House deferred further consideration of Engrossed Substitute Senate Bill No. 6049 on reconsideration.


             ENGROSSED SUBSTITUTE SENATE BILL NO. 5914, by Senate Committee on Ways & Means (originally sponsored by Senators Prentice, Heavey, Deccio and Finkbeiner)

 

Financing public stadium, convention, performing arts, visual arts, and other tourism facilities.


             The bill was read the second time.


             There being no objection, the committee amendment was not adopted. Committee on Trade & Economic Development recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, March 31, 1995.)


             With the consent of the House, amendment number 698 to Engrossed Substitute Senate Bill No. 5914 was withdrawn.


             Representative Van Luven moved adoption of the following amendment by Representative Van Luven:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 36.38.010 and 1963 c 4 s 36.38.010 are each amended to read as follows:

             Any county may by ordinance enacted by its ((board of)) county ((commissioners)) legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place shall collect and remit the tax to the county treasurer of the county: PROVIDED, No county shall impose such tax on persons paying an admission to any activity of any elementary or secondary school.

             As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge. It shall also include any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.

             The tax herein authorized shall not be exclusive and shall not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind: PROVIDED, That whenever the same or similar kind of tax is imposed by any such city or town, no such tax shall be levied within the corporate limits of such city or town by the ((board of)) county ((commissioners)), except that the legislative authority of a county with a population of one million or more may levy a tax of not more than one cent on forty cents or fraction thereof on events in stadiums that are owned by county government and that have seating capacities over forty-five thousand.


             Sec. 2. RCW 35.21.280 and 1965 c 7 s 35.21.280 are each amended to read as follows:

             Every city and town may levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid by the person who pays an admission charge to any place: PROVIDED, No city or town shall impose such tax on persons paying an admission to any activity of any elementary or secondary school. This includes a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same privileges or accommodations. A city that is located in a county with a population of one million or more may not levy a tax in excess of one cent on forty cents or fraction thereof on events in stadiums that are owned by county government and that have seating capacities over forty-five thousand. The city or town may require anyone who receives payment for an admission charge to collect and remit the tax to the city or town.

             The term "admission charge" includes:

             (1) A charge made for season tickets or subscriptions;

             (2) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;

             (3) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;

             (4) A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge;

             (5) Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile."


             On page 1, line 2 of the title, after "facilities;" strike the remainder of the title and insert "and amending RCW 36.38.010 and 35.21.280."


             Representative Van Luven spoke in favor of the adoption of the amendment.


             Representative Kremen spoke against the adoption of the amendment.


             The amendment was adopted.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Sherstad and Delvin spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5914 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5914 as amended by the House, and the bill passed the House by the following vote: Yeas - 89, Nays - 7, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pelesky, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Spea