NOTICE: Formatting and page numbering in this document may be different

from that in the original published version.


ONE HUNDRED-FIRST DAY


------------


MORNING SESSION


------------


Senate Chamber, Olympia, Wednesday, April 19, 1995

      The Senate was called to order at 9:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Cal Anderson, Haugen, Pelz and Wood. On motion of Senator Loveland, Senators Cal Anderson, Haugen and Pelz were excused. On motion of Senator Ann Anderson, Senator Wood was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Craig Lambert and Joe Osborne, presented the Colors. Reverend Robert Cassis, pastor of the South Sound Presbyterian Church of Lacey, offered the prayer.


MOTION


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


REPORTS OF STANDING COMMITTEES

GUBERNATORIAL APPOINTMENTS


April 18, 1995

GA 9047            GARY MOORE, reappointed March 18, 1994, for a term ending December 31, 1996, as a member of the Investment Board.

                           Reported by the Committee on Financial Institutions and Housing


      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Prentice, Chair; Fraser, Vice Chair; Hale and Sellar.


      Passed to Committee on Rules.

April 18, 1995

GA 9100            LEE D. LANNOYE, appointed February 14, 1994, for a term ending June 30, 1997, as a member of the Housing Finance Commission.

                           Reported by the Committee on Financial Institutions and Housing


      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Prentice, Chair; Fraser, Vice Chair; Hale and Sellar.


      Passed to Committee on Rules.


MESSAGES FROM THE GOVERNOR

April 18, 1995

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to advise you that on April 17, 1995, Governor Lowry approved the following Senate Bills entitled:

Substitute Senate Bill No. 5040

      Relating to district court districting committee.

Senate Bill No. 5098

      Relating to county financial functions.

Substitute Senate Bill No. 5234

      Relating to eligibility for juvenile offender basic training camp.

Engrossed Senate Bill No. 5243

      Relating to special permits for miniature boilers.

Senate Bill No. 5251

      Relating to the transportation authority of first class cities.

Engrossed Substitute Senate Bill No. 5253

      Relating to implementation of the public health improvement plan.

Substitute Senate Bill No. 5278

      Relating to awards to persons found not guilty by reason of self-defense.

Senate Bill No. 5294

      Relating to retirement provisions for municipal fire fighters.

Senate Bill No. 5332

      Relating to securities.

Substitute Senate Bill No. 5334

      Relating to the Washington business corporation act.

Substitute Senate Bill No. 5335

Relating to updating uniform commercial code provisions on investment securities.

Senate Bill No. 5351

Relating to requirements of cities regarding certification of family day-care provider's home facilities.

Substitute Senate Bill No. 5367

      Relating to the penalty for failing to obey an officer. 

Substitute Senate Bill No. 5463

      Relating to alcohol servers training for on-premises liquor licensees.

Substitute Senate Bill No. 5479

      Relating to clarifying transfers under the public school open enrollment program.

Senate Bill No. 5520

Relating to placement of children.

Senate Bill No. 5563

Relating to class H liquor licenses issued to hotels operating conferences or convention centers or having banquet facilities on property owned or through leasehold interest by the licensed hotel.

Senate Bill No. 5583

      Relating to unemployment insurance contribution rates for successor employers.

Senate Bill No. 5584

      Relating to noncharging of benefits to employers' unemployment insurance experience rating accounts.

Substitute Senate Bill No. 5609

      Relating to air pollution control authorities.

Senate Bill No. 5625

      Relating to hunting licenses.

Substitute Senate Bill No. 5688

      Relating to fetal alcohol exposure.

Senate Bill No. 5699

Relating to international student exchange visitor placement organizations.

Substitute Senate Bill No. 5997

      Relating to fireworks.

Sincerely,

KENT CAPUTO, Legal Counsel to the Governor


April 18, 1995

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to advise you that on April 18, 1995, Governor Lowry approved the following Senate Bills entitled:

Senate Bill No. 5043

      Relating to adoption of codes and statutes by reference by code cities.

Senate Bill No. 5078

      Relating to delinquency and cancellation charges on premium finance agreements.

Substitute Senate Bill No. 5164

      Relating to service orders.

Senate Bill No. 5165

      Relating to the statute of limitations for negotiable instruments.

Substitute Senate Bill No. 5166

      Relating to judgments.

Substitute Senate Bill No. 5214

      Relating to admissibility of children's statements.

Engrossed Senate Bill No. 5276

      Relating to nomenclature in the common school education code.

Senate Bill No. 5355

      Relating to claims for damages caused by deer or elk.

Senate Bill No. 5369

      Relating to merger of fire protection districts.

Senate Bill No. 5398

      Relating to reporting of personal service contracts.

Senate Bill No. 5401

      Relating to extending deadlines for studies of medical benefits for injured workers under a consolidated health care system.

Substitute Senate Bill No. 5410

      Relating to the Washington park arboretum.

Senate Bill No. 5430

      Relating to the capital and surplus requirements of insurance companies. 

Senate Bill No. 5433

      Relating to prohibited investments by insurers.

Substitute Senate Bill No. 5435

      Relating to preexisting condition limitations in medicare supplement policies or certificates.

Engrossed Senate Bill No. 5437

Relating to the disclosure of material transactions of insurance companies, certified health plans, health service contractors, and health maintenance organizations.

Substitute Senate Bill No. 5440

      Relating to students with firearms on school property.

Substitute Senate Bill No. 5764

      Relating to the redistricting commission.

Senate Bill No. 5767

      Relating to municipal irrigation assessment districts.

Substitute Senate Bill No. 5769

      Relating to recovery of unemployment insurance overpayments.

Substitute Senate Bill No. 5804

      Relating to release of power of appointment.

Engrossed Substitute Senate Bill No. 5820

Relating to unauthorized use of telecommunication and subscription video services.

Substitute Senate Bill No. 5835

      Relating to restraining orders.

Senate Bill No. 5857

      Relating to public works subletting and subcontracting.

Senate Bill No. 5871

      Relating to the board of plumbers.

Substitute Senate Bill No. 5918

Relating to a single system of accountability for the mental health service delivery system.

Substitute Senate Bill No. 6026

Relating to Washington state agricultural commodities.

Sincerely,

KENT CAPUTO, Legal Counsel to the Governor


MESSAGE FROM THE SECRETARY OF STATE


The Honorable Joel Pritchard

President of the Senate

The Legislature of the State of Washington

Olympia, Washington 98504


Mr. President:

      We respectfully transmit for your consideration the following bill which has been partially vetoed by the Governor, together with the official veto message of the Governor setting forth his objections to the section or item of the bill as required by Article III, section 12, of the Washington State Constitution:

Section 1, Substitute Senate Bill No. 5129, the remainder of which has been designated Chapter 39, Laws of 1995 Regular Session.

 

IN TESTIMONY WHEREOF, I have hereunto set my hand,

                                                                   and affixed the Seal of the state of Washington

                                                                   at Olympia, this 20th day of April, 1995.


      (Seal)                                                                                                                                                                                  RALPH MUNRO,

Secretary of State


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SUBSTITUTE SENATE BILL NO. 5129

April 17, 1995

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 1, Substitute Senate Bill No. 5129 entitled:

"AN ACT Relating to excluding utility line clearing from the definition of retail sale;"

      This measure removes pruning, trimming, repairing, removing, and clearing trees and brush near electric transmission or distribution lines or equipment from the definition of retail sale, thereby exempting such activity from state and local retail sales taxes. By doing so, this activity is changed from the retailing classification to the service classification for purposes of the state's business and occupation tax. The measure is effective on July 1, 1995.

      Section 1 of Substitute Senate Bill No. 5129 states that the 1993 Legislature did not intend to extend, nor did it believe it was extending, the sales tax to the trimming and clearing of trees and brush near power lines. The language further asserts that the Department of Revenue misinterpreted legislative intent by adopting a rule extending the sales tax to such services and that it is the intent of section 2 of the bill to clarify that these activities are not subject to the sales tax.

      I believe the Department of Revenue had no alternative authority but to include the activity in the sales tax base through its rule. The language in the 1993 legislation pertaining to this question (E2SSB No. 5967) does not indicate that tree trimming near power lines was to be excluded from the term "landscape maintenance and horticultural services." In addition, there was no expression at the time by the legislature that the department could legally rely upon to exclude such activity from the sales tax base. It should be noted that when the sales tax was applied to these services by this previous legislature, horticultural services "provided to farmers" were excluded from application of the tax. No comparable explicit exclusion was provided for utility line clearing services.

      As a result, section 2 of Substitute Senate Bill No. 5129 serves as a substantive change in law with application from July 1, 1995 forward. The presence of section 1, however, creates ambiguity and may encourage those who have paid sales tax on tree trimming near utility lines since the 1993 law change to believe they are entitled to refunds. Administering such claims and potentially litigating this issue would lead to an unnecessary expenditure of state funds and resources.

      For these reasons, I have vetoed section 1 of Substitute Senate Bill No. 5129.

      With the exception of section 1, Substitute Senate Bill No. 5129 is approved.

Respectfully submitted,

MIKE LOWRY, Governor


MESSAGE FROM THE GOVERNOR

VETO MESSAGE ON ENGROSSED SUBSTITUTE SENATE BILL NO. 5156


April 17, 1995

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval, Engrossed Substitute Senate Bill No. 5156 entitled:

"AN ACT Relating to promoting competition for long distance telecommunications;"

      It is the stated telecommunications policy of the state of Washington to preserve affordable service, advance efficiency and availability, ensure reasonable rates for customers, and promote diversity in the supply of services and products throughout the state. The legislature has charged the Utilities and Transportation Commission with implementation of this policy.

      Engrossed Substitute Senate Bill No. 5156 is contrary to that policy. It removes from the Commissions's hands the ability to investigate an advancement in efficiency through the introduction of "one-plus" dialing parity on behalf of consumers. It establishes a moratorium on current dialing patterns, depriving consumers of convenience and ease of choice in local long distance calling. This legislation unnecessarily maintains barriers to competition and efficiency readily eliminated by currently available technologies. This is not the way of Washington State.

      Washington State leads the nation in progressive telecommunications policies. We are gaining recognition for authorizing and affirming competition at the local level. We have learned that such competition provides the best product at the best price. Such competition is not only healthy for strong, cutting-edge business, it benefits the consumer as well.

      As the telecommunications service market becomes increasingly competitive, the complex balance of prices, costs, subsidies, access, availability, diversity and flexibility must be conscientiously and accurately assessed at every level of proposed change. This review and determination requires an appreciation for and understanding of perhaps the most complicated and rapidly advancing technology in the world. The Utilities and Transportation Commission offers the expertise and commitment to carry out this assessment. This is the right place to do the work.

      The implementation of Engrossed Substitute Senate Bill No. 5156 would unnecessarily delay the development of a truly competitive telecommunications marketplace in our state. The Commission has been responsibly and fairly guiding this development since 1985. Impeding its work for at least three years, or until federal action is taken, stands to destroy our distinct advantage in drawing investment to our state and providing the quality and diversity of service we deserve.

      I compliment the legislature on its efforts toward competitive equity in this complex area. However, I believe this proposal to be untimely. I am confident the Commission will not take action on this matter prior to the 1996 legislative session. This will leave ample time for review by the legislature of the interim efforts of both the Commission and the Governor's Telecommunications Policy Coordination Task Force.

      For these reasons, I have vetoed Engrossed Substitute Senate Bill No. 5156 in its entirety.

Respectfully submitted,

MIKE LOWRY, Governor


MOTION


      On motion of Senator Spanel, Substitute Senate Bill No. 5129 and Engrossed Substitute Senate Bill No. 5156 were held on the desk.


MESSAGES FROM THE HOUSE

April 18, 1995

MR. PRESIDENT:

      The House has adopted HOUSE CONCURRENT RESOLUTION NO. 4408, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 18, 1995

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SENATE BILL NO. 5019,

      SENATE BILL NO. 5029,

      SENATE BILL NO. 5039,

      SECOND SUBSTITUTE SENATE BILL NO. 5088,

      SENATE BILL NO. 5142,

      SUBSTITUTE SENATE BILL NO. 5182,

      SUBSTITUTE SENATE BILL NO. 5183,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5190,

      SUBSTITUTE SENATE BILL NO. 5209,

      SENATE BILL NO. 5239,

      SENATE BILL NO. 5267,

      SENATE BILL NO. 5275,

      SENATE BILL NO. 5282,

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5342,

      SENATE BILL NO. 5378,

      SENATE BILL NO. 5399,

      SUBSTITUTE SENATE BILL NO. 5402,

      SUBSTITUTE SENATE BILL NO. 5403, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 18, 1995

MR. PRESIDENT:

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

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1010,

      SUBSTITUTE HOUSE BILL NO. 1348.

TIMOTHY A. MARTIN, Chief Clerk


April 18, 1995

MR. PRESIDENT:

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

      SECOND SUBSTITUTE HOUSE BILL NO. 1162,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206,

      HOUSE BILL NO. 1224,

      HOUSE BILL NO. 1249,

      HOUSE BILL NO. 1282,

      SUBSTITUTE HOUSE BILL NO. 1342.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      INITIATIVE NO. 164.


SIGNED BY THE PRESIDENT


      The President signed:

      SUBSTITUTE SENATE BILL NO. 5012,

      SUBSTITUTE SENATE BILL NO. 5017,

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5064,

      SUBSTITUTE SENATE BILL NO. 5084,

      SENATE BILL NO. 5287,

      ENGROSSED SENATE BILL NO. 5397,

      SENATE BILL NO. 5445,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5503,

      SENATE BILL NO. 5523,

      SUBSTITUTE SENATE BILL NO. 5537.


INTRODUCTION AND FIRST READING OF HOUSE BILL

 

HCR 4408          by Representative Foreman

 

Extending the cut-off for certain bills.


MOTION


      On motion of Senator Spanel, House Concurrent Resolution No. 4408 was held on the desk.


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


MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5592 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 75.30.350 and 1994 c 260 s 2 are each amended to read as follows:

      (1) Effective January 1, 1995, it is unlawful to fish for coastal crab in Washington state waters without a Dungeness crab—coastal or a Dungeness crab—coastal class B fishery license. Gear used must consist of one buoy attached to each crab pot. Each crab pot must be fished individually.

      (2) A Dungeness crab—coastal fishery license is transferable. Except as provided in subsection (3) of this section, such a license shall only be issued to a person who proved active historical participation in the coastal crab fishery by having designated, after December 31, 1993, a vessel or a replacement vessel on the qualifying license that singly or in combination meets the following criteria:

      (a) Made a minimum of eight coastal crab landings totaling a minimum of five thousand pounds per season in at least two of the four qualifying seasons identified in subsection (((4))) (5) of this section, as documented by valid Washington state shellfish receiving tickets; and showed historical and continuous participation in the coastal crab fishery by having held one of the following licenses or their equivalents each calendar year beginning 1990 through 1993, and was designated on the qualifying license of the person who held one of the following licenses in 1994:

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

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

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

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

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

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

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

      (c) Made any number of coastal crab landings totaling a minimum of twenty thousand pounds per season in at least two of the four qualifying seasons identified in subsection (5) of this section, as documented by valid Washington state shellfish receiving tickets, showed historical and continuous participation in the coastal crab fishery by having held one of the qualifying licenses each calendar year beginning 1990 through 1993, and the vessel was designated on the qualifying license of the person who held that license in 1994.

      (3) A Dungeness crab-coastal fishery license shall be issued to a person who had a new vessel under construction between December 1, 1988, and September 15, 1992, if the vessel made coastal crab landings totaling a minimum of five thousand pounds by September 15, 1993, and the new vessel was designated on the qualifying license of the person who held that license in 1994. All landings shall be documented by valid Washington state shellfish receiving tickets. License applications under this subsection may be subject to review by the advisory review board in accordance with RCW 75.30.050. For purposes of this subsection, "under construction" means either:

      (a)(i) A contract for any part of the work was signed before September 15, 1992; and

      (ii) The contract for the vessel under construction was not transferred or otherwise alienated from the contract holder between the date of the contract and the issuance of the Dungeness crab-coastal fishery license; and

      (iii) Construction had not been completed before December 1, 1988; or

      (b)(i) The keel was laid before September 15, 1992; and

      (ii) Vessel ownership was not transferred or otherwise alienated from the owner between the time the keel was laid and the issuance of the Dungeness crab-coastal fishery license; and

      (iii) Construction had not been completed before December 1, 1988.

      (4) A Dungeness crab—coastal class B fishery license is not transferable. Such a license shall be issued to persons who do not meet the qualification criteria for a Dungeness crab—coastal fishery license, if the person has designated on a qualifying license after December 31, 1993, a vessel or replacement vessel that, singly or in combination, made a minimum of four landings totaling a minimum of two thousand pounds of coastal crab, documented by valid Washington state shellfish receiving tickets, during at least one of the four qualifying seasons, and if the person has participated continuously in the coastal crab fishery by having held or by having owned a vessel that held one or more of the licenses listed in subsection (2) of this section in each calendar year subsequent to the qualifying season in which qualifying landings were made through 1994. Dungeness crab—coastal class B fishery licenses cease to exist after December 31, 1999, and the continuing license provisions of RCW 34.05.422(3) are not applicable.

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

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

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

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

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

      (((5))) (6) For purposes of this section and RCW 75.30.420, "coastal crab" means Dungeness crab (cancer magister) taken in all Washington territorial and offshore waters south of the United States-Canada boundary and west of the Bonilla-Tatoosh line (a line from the western end of Cape Flattery to Tatoosh Island lighthouse, then to the buoy adjacent to Duntz Rock, then in a straight line to Bonilla Point of Vancouver island), Grays Harbor, Willapa Bay, and the Columbia river.

      (7) For purposes of this section, "replacement vessel" means a vessel used in the coastal crab fishery in 1994, and that replaces a vessel used in the coastal crab fishery during any period from 1988 through 1993, and which vessel's licensing and catch history, together with the licensing and catch history of the vessel it replaces, qualifies a single applicant for a Dungeness crab—coastal or Dungeness crab—coastal class B fishery license. A Dungeness crab—coastal or Dungeness crab—coastal class B fishery license may only be issued to a person who designated a vessel in the 1994 coastal crab fishery and who designated the same vessel in 1995."

      On page 1, line 1 of the title, after "licenses;" strike the remainder of the title and insert "and amending RCW 75.30.350.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5592.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5592, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5592, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 45.

      Excused: Senators Anderson, C., Haugen, Pelz and Wood - 4.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5592, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5633 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

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

      (1) Spartina alterniflora, Spartina anglica, Spartina x townsendii, and Spartina patens which are collectively called spartina are not native to the state of Washington nor to the west coast of North America. This noxious weed was inadvertently introduced into the wetlands of the state and is now aggressively invading new areas to the detriment of native ecosystems and aquatic habitat. The spread of spartina threatens to permanently convert and displace native freshwater and saltwater wetlands and intertidal zones, including critical habitat for migratory birds, many fish species, bivalves, invertebrates, marine mammals, and other animals. The continued spread of spartina will permanently reduce the diversity and the quantity of these species and will have a significant negative environmental impact.

      Spartina poses a significant hydrological threat. Clumps and meadows of spartina are dense environments that bind sediments and lift the intertidal gradient up out of the intertidal zone through time. This process reduces flows during flood conditions, raises flood levels, and significantly alters the hydrological regime of estuarine areas.

      Spartina spreads by rhizomes and seed production. Through lateral growth by rhizomes, spartina establishes a dense monotypic meadow. Through seed production and the spread of seed through the air and by water, spartina is currently being spread to other states and to Canadian provinces.

      (2) Purple loosestrife was first documented in the state in 1929 along freshwater shorelands. It is now present throughout the state and is particularly abundant in Grant county and its neighboring counties. The plant appears to be colonizing more rapidly on the eastern side of the state than on the western side. It was first introduced to the Winchester Wasteway area in the 1960's and has invaded the area rapidly. Purple loosestrife is displacing native plants and as a result is threatening an extremely important part of this state's wildlife habitat. Lythrum salicaria and L. virgatum are closely related loosestrife species that are morphologically similar and not easily distinguished from each other in the field. Both species have been referred to as purple loosestrife.

      (3) Current laws and rules designed to protect the environment and preserve the wetland habitats, fish, and wildlife of the state are not designed to respond to an ecosystem-wide threat of this kind. State and federal agencies, local governments, weed boards, concerned individuals, and property owners attempting to deal with the ecological emergency posed by spartina and purple loosestrife infestations have been frustrated by interagency disagreements, demands for an undue amount of procedural and scientific process and information, dilatory appeals, and the improper application of laws and regulations by agencies that have in fact undermined the legislative purposes of those same laws while ignoring the long-term implications of delay and inaction. There is a compelling need for strong leadership, coordination, and reporting by a single state agency to respond appropriately to this urgent environmental challenge.

      Any further delay of control efforts will significantly increase the cost of spartina and purple loosestrife control and reduce the likelihood of long-term success. Control efforts must be coordinated across political and ownership boundaries in order to be effective.

      (4) The presence of noxious weeds on public lands constitutes a public nuisance and negatively impacts public and private lands. The legislature finds that control and eradication of noxious weeds on private lands is in the public interest.

      NEW SECTION. Sec. 2. This state is facing an environmental disaster that will affect other states as well as other nations. The legislature finds that six years is sufficient time for state agencies to debate solutions to the spartina and purple loosestrife problems that are occurring in state waters. One of the purposes of this act is to focus agency action on control and future eradication of spartina and purple loosestrife. It is the mandate of the legislature that one state agency, the department of agriculture, be responsible for a unified effort to eliminate spartina and control purple loosestrife, with the advice of the state noxious weed control board, and that state agency shall be directly accountable to the legislature on the progress of the spartina eradication and purple loosestrife control program.

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

      (1) The director shall issue or approve water quality permits for use by federal, state, or local governmental agencies and licensed applicators for the purpose of using, for aquatic noxious weed control, herbicides and surfactants registered under state or federal pesticide control laws. The issuance of the permits shall be subject only to compliance with: Federal and state pesticide label requirements, the requirements of the federal insecticide, fungicide, and rodenticide act, the Washington pesticide control act, the Washington pesticide application act, and the state environmental policy act; and applicable requirements established in an option or options recommended for controlling the noxious weed by a final environmental impact statement published under chapter 43.21C RCW by the department prior to the effective date of this section, by the department of agriculture, or by the department of agriculture jointly with other state agencies. This section may not be construed as requiring the preparation of a new environmental impact statement to replace a final environmental impact statement published before the effective date of this section.

      (2) The director of ecology may not utilize this permit authority to otherwise condition or burden weed control efforts. The director's authority to issue water quality modification permits for activities other than the application of surfactants and approved herbicides, to control aquatic noxious weeds, is unaffected by this section.

      (3) As used in this section, "aquatic noxious weed" means an aquatic weed on the state noxious weed list adopted under RCW 17.10.080.

      NEW SECTION. Sec. 4. A new section is added to chapter 75.20 RCW to read as follows:

      (1) An activity conducted solely for the removal or control of spartina shall not require hydraulic project approval.

      (2) An activity conducted solely for the removal or control of purple loosestrife and which is performed with hand-held tools, hand-held equipment, or equipment carried by a person when used shall not require hydraulic project approval.

      (3) By June 30, 1997, the department of fish and wildlife shall develop rules for projects conducted solely for the removal or control of various aquatic noxious weeds other than spartina and purple loosestrife and for activities or projects for controlling purple loosestrife not covered by subsection (2) of this section, which projects will use, divert, obstruct, or change the natural flow or bed of any of the salt or fresh waters of the state. Following the adoption of the rules, the department shall produce and distribute a pamphlet describing the methods of removing or controlling the aquatic noxious weeds that are approved under the rules. The pamphlet serves as the hydraulic project approval for any project that is conducted solely for the removal or control of such aquatic noxious weeds and that is conducted as described in the pamphlet; no further hydraulic project approval is required for such a project.

      From time to time as information becomes available, the department shall adopt similar rules for additional aquatic noxious weeds or additional activities for removing or controlling aquatic noxious weeds not governed by subsection (1) or (2) of this section and shall produce and distribute one or more pamphlets describing these methods of removal or control. Such a pamphlet serves as the hydraulic project approval for any project that is conducted solely for the removal or control of such aquatic noxious weeds and that is conducted as described in the pamphlet; no further hydraulic project approval is required for such a project.

      (4) As used in this section, "spartina," "purple loosestrife," and "aquatic noxious weeds" have the meanings prescribed by section 12 of this act.

      (5) Nothing in this section shall prohibit the department of fish and wildlife from requiring a hydraulic project approval for those parts of hydraulic projects that are not specifically for the control or removal of spartina, purple loosestrife, or other aquatic noxious weeds.

      Sec. 5. RCW 90.58.030 and 1987 c 474 s 1 are each amended to read as follows:

      As used in this chapter, unless the context otherwise requires, the following definitions and concepts apply:

      (1) Administration:

      (a) "Department" means the department of ecology;

      (b) "Director" means the director of the department of ecology;

      (c) "Local government" means any county, incorporated city, or town which contains within its boundaries any lands or waters subject to this chapter;

      (d) "Person" means an individual, partnership, corporation, association, organization, cooperative, public or municipal corporation, or agency of the state or local governmental unit however designated;

      (e) "Hearing board" means the shoreline hearings board established by this chapter.

      (2) Geographical:

      (a) "Extreme low tide" means the lowest line on the land reached by a receding tide;

      (b) "Ordinary high water mark" on all lakes, streams, and tidal water is that mark that will be found by examining the bed and banks and ascertaining where the presence and action of waters are so common and usual, and so long continued in all ordinary years, as to mark upon the soil a character distinct from that of the abutting upland, in respect to vegetation as that condition exists on June 1, 1971, as it may naturally change thereafter, or as it may change thereafter in accordance with permits issued by a local government or the department: PROVIDED, That in any area where the ordinary high water mark cannot be found, the ordinary high water mark adjoining salt water shall be the line of mean higher high tide and the ordinary high water mark adjoining fresh water shall be the line of mean high water;

      (c) "Shorelines of the state" are the total of all "shorelines" and "shorelines of state-wide significance" within the state;

      (d) "Shorelines" means all of the water areas of the state, including reservoirs, and their associated wetlands, together with the lands underlying them; except (i) shorelines of state-wide significance; (ii) shorelines on segments of streams upstream of a point where the mean annual flow is twenty cubic feet per second or less and the wetlands associated with such upstream segments; and (iii) shorelines on lakes less than twenty acres in size and wetlands associated with such small lakes;

      (e) "Shorelines of state-wide significance" means the following shorelines of the state:

      (i) The area between the ordinary high water mark and the western boundary of the state from Cape Disappointment on the south to Cape Flattery on the north, including harbors, bays, estuaries, and inlets;

      (ii) Those areas of Puget Sound and adjacent salt waters and the Strait of Juan de Fuca between the ordinary high water mark and the line of extreme low tide as follows:

      (A) Nisqually Delta--from DeWolf Bight to Tatsolo Point,

      (B) Birch Bay--from Point Whitehorn to Birch Point,

      (C) Hood Canal--from Tala Point to Foulweather Bluff,

      (D) Skagit Bay and adjacent area--from Brown Point to Yokeko Point, and

      (E) Padilla Bay--from March Point to William Point;

      (iii) Those areas of Puget Sound and the Strait of Juan de Fuca and adjacent salt waters north to the Canadian line and lying seaward from the line of extreme low tide;

      (iv) Those lakes, whether natural, artificial, or a combination thereof, with a surface acreage of one thousand acres or more measured at the ordinary high water mark;

      (v) Those natural rivers or segments thereof as follows:

      (A) Any west of the crest of the Cascade range downstream of a point where the mean annual flow is measured at one thousand cubic feet per second or more,

      (B) Any east of the crest of the Cascade range downstream of a point where the annual flow is measured at two hundred cubic feet per second or more, or those portions of rivers east of the crest of the Cascade range downstream from the first three hundred square miles of drainage area, whichever is longer;

      (vi) Those wetlands associated with (i), (ii), (iv), and (v) of this subsection (2)(e);

      (f) "Wetlands" or "wetland areas" means those lands extending landward for two hundred feet in all directions as measured on a horizontal plane from the ordinary high water mark; floodways and contiguous floodplain areas landward two hundred feet from such floodways; and all marshes, bogs, swamps, and river deltas associated with the streams, lakes, and tidal waters which are subject to the provisions of this chapter; the same to be designated as to location by the department of ecology: PROVIDED, That any county or city may determine that portion of a one-hundred-year-flood plain to be included in its master program as long as such portion includes, as a minimum, the floodway and the adjacent land extending landward two hundred feet therefrom;

      (g) "Floodway" means those portions of the area of a river valley lying streamward from the outer limits of a watercourse upon which flood waters are carried during periods of flooding that occur with reasonable regularity, although not necessarily annually, said floodway being identified, under normal condition, by changes in surface soil conditions or changes in types or quality of vegetative ground cover condition. The floodway shall not include those lands that can reasonably be expected to be protected from flood waters by flood control devices maintained by or maintained under license from the federal government, the state, or a political subdivision of the state.

      (3) Procedural terms:

      (a) "Guidelines" means those standards adopted to implement the policy of this chapter for regulation of use of the shorelines of the state prior to adoption of master programs. Such standards shall also provide criteria to local governments and the department in developing master programs;

      (b) "Master program" shall mean the comprehensive use plan for a described area, and the use regulations together with maps, diagrams, charts, or other descriptive material and text, a statement of desired goals, and standards developed in accordance with the policies enunciated in RCW 90.58.020;

      (c) "State master program" is the cumulative total of all master programs approved or adopted by the department of ecology;

      (d) "Development" means a use consisting of the construction or exterior alteration of structures; dredging; drilling; dumping; filling; removal of any sand, gravel, or minerals; bulkheading; driving of piling; placing of obstructions; or any project of a permanent or temporary nature which interferes with the normal public use of the surface of the waters overlying lands subject to this chapter at any state of water level;

      (e) "Substantial development" shall mean any development of which the total cost or fair market value exceeds two thousand five hundred dollars, or any development which materially interferes with the normal public use of the water or shorelines of the state; except that the following shall not be considered substantial developments for the purpose of this chapter:

      (i) Normal maintenance or repair of existing structures or developments, including damage by accident, fire, or elements;

      (ii) Construction of the normal protective bulkhead common to single family residences;

      (iii) Emergency construction necessary to protect property from damage by the elements;

      (iv) Construction and practices normal or necessary for farming, irrigation, and ranching activities, including agricultural service roads and utilities on wetlands, and the construction and maintenance of irrigation structures including but not limited to head gates, pumping facilities, and irrigation channels: PROVIDED, That a feedlot of any size, all processing plants, other activities of a commercial nature, alteration of the contour of the wetlands by leveling or filling other than that which results from normal cultivation, shall not be considered normal or necessary farming or ranching activities. A feedlot shall be an enclosure or facility used or capable of being used for feeding livestock hay, grain, silage, or other livestock feed, but shall not include land for growing crops or vegetation for livestock feeding and/or grazing, nor shall it include normal livestock wintering operations;

      (v) Construction or modification of navigational aids such as channel markers and anchor buoys;

      (vi) Construction on wetlands by an owner, lessee, or contract purchaser of a single family residence for his own use or for the use of his family, which residence does not exceed a height of thirty-five feet above average grade level and which meets all requirements of the state agency or local government having jurisdiction thereof, other than requirements imposed pursuant to this chapter;

      (vii) Construction of a dock, including a community dock, designed for pleasure craft only, for the private noncommercial use of the owner, lessee, or contract purchaser of single and multiple family residences, the cost of which does not exceed two thousand five hundred dollars;

      (viii) Operation, maintenance, or construction of canals, waterways, drains, reservoirs, or other facilities that now exist or are hereafter created or developed as a part of an irrigation system for the primary purpose of making use of system waters, including return flow and artificially stored ground water for the irrigation of lands;

      (ix) The marking of property lines or corners on state owned lands, when such marking does not significantly interfere with normal public use of the surface of the water;

      (x) Operation and maintenance of any system of dikes, ditches, drains, or other facilities existing on September 8, 1975, which were created, developed, or utilized primarily as a part of an agricultural drainage or diking system;

      (xi) Any action commenced prior to December 31, 1982, pertaining to (A) the restoration of interim transportation services as may be necessary as a consequence of the destruction of the Hood Canal bridge, including, but not limited to, improvements to highways, development of park and ride facilities, and development of ferry terminal facilities until a new or reconstructed Hood Canal bridge is open to traffic; and (B) the reconstruction of a permanent bridge at the site of the original Hood Canal bridge;

      (xii) The process of removing or controlling an aquatic noxious weed, as defined in section 12 of this act, through the use of an herbicide or other treatment methods applicable to weed control that are recommended by a final environmental impact statement published by the department of agriculture or the department jointly with other state agencies under chapter 43.21C RCW.

      Sec. 6. RCW 17.10.010 and 1987 c 438 s 1 are each amended to read as follows:

      Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:

      (1) "Noxious weed" means any plant which when established is highly destructive, competitive, or difficult to control by cultural or chemical practices.

      (2) "State noxious weed list" means a list of noxious weeds adopted by the state noxious weed control board which list is divided into three classes:

      (a) Class A shall consist of those noxious weeds not native to the state that are of limited distribution or are unrecorded in the state and that pose a serious threat to the state;

      (b) Class B shall consist of those noxious weeds not native to the state that are of limited distribution or are unrecorded in a region of the state and that pose a serious threat to that region;

      (c) Class C shall consist of any other noxious weeds.

      (3) "Person" means any individual, partnership, corporation, firm, the state or any department, agency, or subdivision thereof, or any other entity.

      (4) "Owner" means the person in actual control of property, or his agent, whether such control is based on legal or equitable title or on any other interest entitling the holder to possession and, for purposes of liability, pursuant to RCW 17.10.170 or 17.10.210, means the possessor of legal or equitable title or the possessor of an easement: PROVIDED, That when the possessor of an easement has the right to control or limit the growth of vegetation within the boundaries of an easement, only the possessor of such easement shall be deemed, for the purpose of this chapter, an "owner" of the property within the boundaries of such easement.

      (5) As pertains to the duty of an owner, the words "control", "contain", "eradicate", and the term "prevent the spread of noxious weeds" shall mean conforming to the standards of noxious weed control or prevention adopted by rule or regulation by the state noxious weed control board and an activated county noxious weed control board.

      (6) "Agent" means any occupant or any other person acting for the owner and working or in charge of the land.

      (7) "Agricultural purposes" are those which are intended to provide for the growth and harvest of food and fiber.

      (8) "Director" means the director of the department of agriculture or the director's appointed representative.

      (9) "Weed district" means a weed district as defined in chapters 17.04 and 17.06 RCW.

      (10) "Aquatic noxious weed" means an aquatic plant species that is listed on the state weed list under RCW 17.10.080.

      Sec. 7. RCW 90.48.020 and 1987 c 109 s 122 are each amended to read as follows:

      Whenever the word "person" is used in this chapter, it shall be construed to include any political subdivision, government agency, municipality, industry, public or private corporation, copartnership, association, firm, individual or any other entity whatsoever.

      Wherever the words "waters of the state" shall be used in this chapter, they shall be construed to include lakes, rivers, ponds, streams, inland waters, underground waters, salt waters and all other surface waters and watercourses within the jurisdiction of the state of Washington.

      Whenever the word "pollution" is used in this chapter, it shall be construed to mean such contamination, or other alteration of the physical, chemical or biological properties, of any waters of the state, including change in temperature, taste, color, turbidity, or odor of the waters, or such discharge of any liquid, gaseous, solid, radioactive, or other substance into any waters of the state as will or is likely to create a nuisance or render such waters harmful, detrimental or injurious to the public health, safety or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish or other aquatic life.

      Wherever the word "department" is used in this chapter it shall mean the department of ecology.

      Whenever the word "director" is used in this chapter it shall mean the director of ecology.

      Whenever the words "aquatic noxious weed" are used in this chapter, they have the meaning prescribed under section 12 of this act.

      NEW SECTION. Sec. 8. State agencies and local governments may not use any other local, state, or federal permitting requirement, regulatory authority, or legal mechanism to override the legislative intent and statutory mandates of this act.

      NEW SECTION. Sec. 9. Spartina removal shall include restoration to return intertidal land and other infested lands to the condition found on adjacent unaffected lands in the same tidal elevation. The department of fish and wildlife, the department of ecology, the department of agriculture, and the department of natural resources shall develop a restoration plan in cooperation with owners of spartina infested lands and shall submit the plan to the appropriate standing committees of the house of representatives and the senate by December 31, 1995.

      NEW SECTION. Sec. 10. (1) The state department of agriculture is the lead agency for the control of spartina and purple loosestrife with the advice of the state noxious weed control board.

      (2) Responsibilities of the lead agency include:

      (a) Coordination of the control program including memorandums of understanding, contracts, and agreements with local, state, federal, and tribal governmental entities and private parties;

      (b) Preparation of a state-wide spartina management plan utilizing integrated vegetation management strategies that encompass all of Washington's tidelands. The plan shall be developed in cooperation with local, state, federal, and tribal governments, private landowners, and concerned citizens. The plan shall prioritize areas for control. Nothing in this subsection prohibits the department from taking action to control spartina in a particular area of the state in accordance with a plan previously prepared by the state while preparing the state-wide plan;

      (c) Directing on the ground control efforts that include, but are not limited to: (i) Control work and contracts; (ii) spartina survey; (iii) collection and maintenance of spartina location data; (iv) purchasing equipment, goods, and services; (v) survey of threatened and endangered species; and (vi) site-specific environmental information and documents; and

      (d) Evaluating the effectiveness of the control efforts.

      The lead agency shall report to the appropriate standing committees of the house of representatives and the senate no later than May 15th and December 15th of each year through the year 1999 on the progress of the program, the number of acres treated by various methods of control, and on the funds spent.

      NEW SECTION. Sec. 11. This section applies to appropriations made to the department of agriculture specifically for the removal or control of spartina or purple loosestrife or both plants. The legislature finds that: The presence of spartina or purple loosestrife on private lands threatens wildlife habitat and provides a source of renewed infestation for public lands; and effective eradication or control of spartina or purple loosestrife requires concerted efforts on both public and private lands to protect public resources. The department of agriculture may grant funds to other state agencies, local governments, and nonprofit corporations for eradication or control purposes and may use those moneys itself. The department of agriculture may match private funds for eradication or control programs on private property on a fifty-fifty matching basis. The accounting and supervision of the funds at the local level shall be conducted by the department of agriculture.

      NEW SECTION. Sec. 12. (1) Facilitating the control of spartina and purple loosestrife is a high priority for all state agencies.

      (2) The department of natural resources is responsible for spartina and purple loosestrife control on state-owned aquatic lands managed by the department of natural resources.

      (3) The department of fish and wildlife is responsible for spartina and purple loosestrife control on state-owned aquatic lands managed by the department of fish and wildlife.

      (4) The state parks and recreation commission is responsible for spartina and purple loosestrife control on state-owned aquatic lands managed by the state parks and recreation commission.

      (5) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this chapter, RCW 90.48.020, 90.58.030, and section 4 of this act:

      (a) "Spartina" means Spartina alterniflora, Spartina anglica, Spartina x townsendii, and Spartina patens.

      (b) "Purple loosestrife" means Lythrum salicaria and Lythrum virgatum.

      (c) "Aquatic noxious weed" means an aquatic weed on the state noxious weed list adopted under RCW 17.10.080.

      NEW SECTION. Sec. 13. Sections 1, 2, and 8 through 12 of this act shall constitute a new chapter in Title 17 RCW.

      NEW SECTION. Sec. 14. 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. 15. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

      On page 1, line 1 of the title, after "control;" strike the remainder of the title and insert "amending RCW 90.58.030, 17.10.010, and 90.48.020; adding a new section to chapter 90.48 RCW; adding a new section to chapter 75.20 RCW; adding a new chapter to Title 17 RCW; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate concurred in the House amendments to Engrossed Second Substitute Senate Bill No. 5633.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute Senate Bill No. 5633, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5633, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5633, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5613 with the following amendment(s):

      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.

      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.

      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 s 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., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Pelz, the Senate concurred in the House amendments to Engrossed Senate Bill No. 5613.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5613, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5613, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      ENGROSSED SENATE BILL NO. 5613, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.




MESSAGE FROM THE HOUSE

April 10, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5629 with the following amendment(s):

      On page 4, line 4, strike "((twenty-five)) fifty" and insert "twenty-five"", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Pelz, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5629.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5629, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5629, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5629, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 4, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5662 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 78.56.110 and 1994 c 232 s 11 are each amended to read as follows:

      (1) The department of ecology ((and the department of natural resources)) shall not issue necessary permits to an applicant for a metals mining and milling operation until the applicant has deposited with the department of ecology a performance security which is acceptable to ((both agencies)) the department of ecology based on the requirements of subsection (2) of this section. This performance

3

security may be:

      (a) Bank letters of credit ((acceptable to both agencies));

      (b) A cash deposit;

      (c) Negotiable securities ((acceptable to both agencies));

      (d) An assignment of a savings account;

      (e) A savings certificate in a Washington bank; or

      (f) A corporate surety bond executed in favor of the department of ecology by a corporation authorized to do business in the state of Washington under Title 48 RCW ((and acceptable to both agencies)).

      The ((agencies)) department of ecology may, for any reason, refuse any performance security not deemed adequate.

      (2) The performance security shall be conditioned on the faithful performance of the applicant or operator in meeting the following obligations:

      (a) Compliance with the environmental protection laws of the state of Washington administered by the department of ecology, or permit conditions administered by the department of ecology, associated with the construction, operation, and closure pertaining to metals mining and milling operations, and with the related ((rules)) environmental protection ordinances and permit conditions established by ((state and)) local government ((with respect to those operations as defined in RCW 78.44.031(17) and the construction, operation, reclamation, and closure of a metals mining and milling operation)) when requested by local government;

      (b) Reclamation of metals mining and milling operations that do not meet the threshold of surface mining as defined by RCW 78.44.031(17);

      (c) Postclosure environmental monitoring as determined by the department of ecology ((and the department of natural resources)); and

      (((c))) (d) Provision of sufficient funding as determined by the department of ecology for cleanup of potential problems revealed during or after closure.

      (3) The department of ecology ((and the department of natural resources shall jointly)) may, if it deems appropriate, adopt rules for determining the amount of the performance security, requirements for the performance security, requirements for the issuer of the performance security, and any other requirements necessary for the implementation of this section.

      (4) The department of ecology ((and the department of natural resources, acting jointly,)) may increase or decrease the amount of the performance security at any time to compensate for any alteration in the operation that affects meeting the obligations in subsection (2) of this section. At a minimum, the ((agencies)) department shall ((jointly)) review the adequacy of the performance security every two years.

      (5) Liability under the performance security shall be maintained until the obligations in subsection (2) of this section are met to the satisfaction of the department of ecology ((and the department of natural resources)). Liability under the performance security may be released only upon written notification by the department of ecology((, with the concurrence of the department of natural resources)).

      (6) Any interest or appreciation on the performance security shall be held by the department of ecology until the obligations in subsection (2) of this section have been met to the satisfaction of the department of ecology ((and the department of natural resources)). At such time, the interest shall be remitted to the applicant or operator. However, if the applicant or operator fails to comply with the obligations of subsection (2) of this section, the interest or appreciation may be used by ((either agency)) the department of ecology to comply with the obligations.

      (7) Only one agency may require a performance security to satisfy the deposit requirements of RCW 78.44.087, and only one agency may require a performance security to satisfy the deposit requirements of this section. However, a single performance security, when acceptable to both the department of ecology and the department of natural resources, may be utilized by both agencies to satisfy the requirements of this section and RCW 78.44.087.

      Sec. 2. RCW 78.56.120 and 1994 c 232 s 12 are each amended to read as follows:

      The department of ecology may, with staff, equipment, and material under its control, or by contract with others, remediate or mitigate any impact of a metals mining and milling operation when it finds that the operator or permit holder has failed to comply with relevant statutes, rules, or permits, and the operator or permit holder has failed to take adequate or timely action to rectify these impacts.

      If the department intends to remediate or mitigate such impacts, the department shall issue an order to submit performance security requiring the permit holder or surety to submit to the department the amount of moneys posted pursuant to ((chapter 232, Laws of 1994)) RCW 78.56.110. If the amount specified in the order to submit performance security is not paid within twenty days after issuance of the notice, the attorney general upon request of the department shall bring an action on behalf of the state in a superior court to recover the amount specified and associated legal fees.

      The department may proceed at any time after issuing the order to submit performance security to remediate or mitigate adverse impacts.

      The department shall keep a record of all expenses incurred in carrying out any remediation or mitigation activities authorized under this section, including:

      (1) Remediation or mitigation;

      (2) A reasonable charge for the services performed by the state's personnel and the state's equipment and materials utilized; and

      (3) Administrative and legal expenses related to remediation or mitigation.

      The department shall refund to the surety or permit holder all amounts received in excess of the amount of expenses incurred. If the amount received is less than the expenses incurred, the attorney general, upon request of the department of ecology, may bring an action against the permit holder on behalf of the state in the superior court to recover the remaining costs listed in this section.

      ((If the department of natural resources finds that reclamation has not occurred according to the standards required under chapter 78.44 RCW in a metals mining and milling operation, then the department of natural resources may cause reclamation to occur pursuant to RCW 78.44.240. Upon approval of the department of ecology, the department of natural resources may reclaim part or all of the metals mining and milling operation using that portion of the surety posted pursuant to chapter 232, Laws of 1994 that has been identified for reclamation.))

      Sec. 3. RCW 78.44.087 and 1994 c 232 s 23 are each amended to read as follows:

      (1) The department shall not issue a reclamation permit until the applicant has deposited with the department an acceptable performance security on forms prescribed and furnished by the department. A public or governmental agency shall not be required to post performance security nor shall a permit holder be required to post surface mining performance security with more than one state or local agency.

      (2) This performance security may be:

      (((1))) (a) Bank letters of credit acceptable to the department;

      (((2))) (b) A cash deposit;

      (((3))) (c) Negotiable securities acceptable to the department;

      (((4))) (d) An assignment of a savings account;

      (((5))) (e) A savings certificate in a Washington bank on an assignment form prescribed by the department;

      (((6))) (f) Assignments of interests in real property within the state of Washington; or

      (((7))) (g) A corporate surety bond executed in favor of the department by a corporation authorized to do business in the state of Washington under Title 48 RCW and authorized by the department.

      (3) The performance security shall be conditioned upon the faithful performance of the requirements set forth in this chapter and of the rules adopted under it.

      (4) The department shall have the authority to determine the amount of the performance security using a standardized performance security formula developed by the department. The amount of the security shall be determined by the department and based on the estimated costs of completing reclamation according to the approved reclamation plan or minimum standards and related administrative overhead for the area to be surface mined during (a) the next twelve-month period, (b) the following twenty-four months, and (c) any previously disturbed areas on which the reclamation has not been satisfactorily completed and approved.

      (5) The department may increase or decrease the amount of the performance security at any time to compensate for a change in the disturbed area, the depth of excavation, a modification of the reclamation plan, or any other alteration in the conditions of the mine that affects the cost of reclamation. The department may, for any reason, refuse any performance security not deemed adequate.

      (6) Liability under the performance security shall be maintained until reclamation is completed according to the approved reclamation plan to the satisfaction of the department unless released as hereinafter provided. Liability under the performance security may be released only upon written notification by the department. Notification shall be given upon completion of compliance or acceptance by the department of a substitute performance security. The liability of the surety shall not exceed the amount of security required by this section and the department's reasonable legal fees to recover the security.

      (7) Any interest or appreciation on the performance security shall be held by the department until reclamation is completed to its satisfaction. At such time, the interest shall be remitted to the permit holder; except that such interest or appreciation may be used by the department to effect reclamation in the event that the permit holder fails to comply with the provisions of this chapter and the costs of reclamation exceed the face value of the performance security.

      (8) Except as provided in this section, no other state agency or local government shall require performance security for the purposes of surface mine reclamation and only one agency of government shall require and hold the performance security. The department may enter into written agreements with federal agencies in order to avoid redundant bonding of surface mines straddling boundaries between federally controlled and other lands within Washington state.

      ((The department and the department of ecology shall jointly require performance security for metals mining and milling operations regulated under chapter 232, Laws of 1994.))"

      On page 1, line 3 of the title, after "operations;" strike the remainder of the title and insert "and amending RCW 78.56.110, 78.56.120, and 78.44.087.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5662.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5662, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5662, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5662, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5685 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 46.12 RCW to read as follows:

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

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

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

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

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

      Sec. 3. RCW 46.80.005 and 1977 ex.s. c 253 s 1 are each amended to read as follows:

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

      Sec. 4. RCW 46.80.010 and 1977 ex.s. c 253 s 2 are each amended to read as follows:

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

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

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

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

      Sec. 5. RCW 46.80.020 and 1979 c 158 s 192 are each amended to read as follows:

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

      Sec. 6. RCW 46.80.040 and 1971 ex.s. c 7 s 3 are each amended to read as follows:

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

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

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

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

      Sec. 8. RCW 46.80.060 and 1961 c 12 s 46.80.060 are each amended to read as follows:

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

      Sec. 9. RCW 46.80.070 and 1977 ex.s. c 253 s 5 are each amended to read as follows:

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

      Sec. 10. RCW 46.80.080 and 1977 ex.s. c 253 s 6 are each amended to read as follows:

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

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

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

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

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

      (b) Name of state where last registered;

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

      (d) Name of vehicle;

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

      (f) Date purchased;

      (g) Disposition of the motor and chassis;

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

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

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

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

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

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

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

      Sec. 11. RCW 46.80.090 and 1979 c 158 s 194 are each amended to read as follows:

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

      Sec. 12. RCW 46.80.100 and 1977 ex.s. c 253 s 8 are each amended to read as follows:

      If, after issuing a ((motor)) vehicle wrecker's license, the bond is canceled by the surety in a method provided by law, the department shall immediately notify the principal covered by ((such)) the bond ((by registered mail)) and afford ((him)) the principal the opportunity of obtaining another bond before the termination of the original ((and should such)). If the principal fails, neglects, or refuses to obtain ((such)) a replacement, the director may cancel or suspend the ((motor)) vehicle wrecker's license ((which has been issued to him under the provisions of this chapter)). Notice of cancellation of the bond may be accomplished by sending a notice by first class mail using the last known address in department records for the principal covered by the bond and recording the transmittal on an affidavit of first class mail.

      Sec. 13. RCW 46.80.110 and 1989 c 337 s 17 are each amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

      NEW SECTION. Sec. 14. A new section is added to chapter 46.80 RCW to read as follows:

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

      Sec. 15. RCW 46.80.130 and 1971 ex.s. c 7 s 9 are each amended to read as follows:

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

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

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

      Sec. 16. RCW 46.80.150 and 1983 c 142 s 9 are each amended to read as follows:

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

      Sec. 17. RCW 46.80.160 and 1961 c 12 s 46.80.160 are each amended to read as follows:

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

      Sec. 18. RCW 46.80.170 and 1977 ex.s. c 253 s 11 are each amended to read as follows:

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

      NEW SECTION. Sec. 19. A new section is added to chapter 46.80 RCW to read as follows:

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

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

      NEW SECTION. Sec. 20. A new section is added to chapter 46.80 RCW to read as follows:

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

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

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

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

      Sec. 21. RCW 46.80.900 and 1977 ex.s. c 253 s 13 are each amended to read as follows:

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

       NEW SECTION. Sec. 22. (1) The legislature recognizes that currently the state patrol inspects rebuilt vehicles for stolen parts. However, they are not authorized to perform complete safety inspections.

      (2) The state patrol shall assemble a study group and complete a study, to be submitted to the legislative transportation committee no later than January 1, 1996, on the feasibility of implementing safety inspections for vehicles that are rebuilt after surrender of the certificate of ownership to the department of licensing under RCW 46.12.070 due to the vehicle's destruction or declaration as a total loss. The study shall include, but is not limited to:

      (a) An examination of safety inspection systems in other states;

      (b) A determination of how a safety inspection program might be implemented in Washington state;

      (c) An analysis of the cost of conducting a safety inspection and who should be responsible for bearing those costs; and

      (d) An evaluation of whether state agencies or private business might most effectively and efficiently conduct safety inspections.

      (3) The study group prescribed in subsection (2) of this section must include representatives of the state patrol, the department of licensing, the Washington traffic safety commission, the insurance industry, the autobody industry, and other appropriate groups.

      (4) Section 24 of this act and RCW 46.12.050 require notification on the certificates of ownership and registration as to whether a vehicle has previously been destroyed or declared a total loss. The department of licensing, in consultation with the study group members prescribed in subsection (3) of this section, shall study the feasibility of expanding the notification requirement to apply to all vehicles, regardless of age. The study group shall also develop a recommendation regarding the feasibility of differentiating on the certificates of ownership and registration whether the vehicle has sustained cosmetic damage or structural damage. The department shall report its findings to the legislative transportation committee no later than January 1, 1996.

      Sec. 23. RCW 46.12.030 and 1990 c 238 s 1 are each amended to read as follows:

      The application for certificate of ownership shall be upon a blank form to be furnished by the department and shall contain:

      (1) A full description of the vehicle, which shall contain the proper vehicle identification number, the number of miles indicated on the odometer at the time of delivery of the vehicle, and any distinguishing marks of identification;

      (2) The name and address of the person who is to be the registered owner of the vehicle and, if the vehicle is subject to a security interest, the name and address of the secured party;

      (3) Such other information as the department may require. The department may in any instance, in addition to the information required on the application, require additional information and a physical examination of the vehicle or of any class of vehicles, or either. A physical examination of the vehicle is mandatory if it previously was registered in any other state or country or if it has been rebuilt after surrender of the certificate of ownership to the department under RCW 46.12.070 due to the vehicle's destruction or declaration as a total loss. The inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the foreign title and registration certificate. If the vehicle is from a jurisdiction that does not issue titles, the inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the registration certificate. The inspection must also confirm that the license plates on the vehicle are those assigned to the vehicle by the jurisdiction in which the vehicle was previously licensed. The inspection must be made by a member of the Washington state patrol or other person authorized by the department to make such inspections.

       The application shall be subscribed by the registered owner and be sworn to by that applicant in the manner described by RCW 9A.72.085. The department shall retain the application in either the original, computer, or photostatic form.

      NEW SECTION. Sec. 24. A new section is added to chapter 46.12 RCW to read as follows:

      (1) Effective January 1, 1997, the department shall issue a unique certificate of ownership and certificate of license registration, as required by chapter 46.16 RCW, for vehicles less than four years old that are rebuilt after surrender of the certificate of ownership to the department under RCW 46.12.070 due to the vehicle's destruction or declaration as a total loss. Each certificate shall conspicuously display across its front, a word indicating that the vehicle was rebuilt.

      (2) Beginning January 1, 1997, upon inspection of a vehicle that has been rebuilt under RCW 46.12.030, the state patrol shall securely affix or inscribe a marking at the driver's door latch pillar indicating that the vehicle has previously been destroyed or declared a total loss.

      (3) It is a class C felony for a person to remove the marking prescribed in subsection (2) of this section.

      (4) The department may adopt rules as necessary to implement this section.

      Sec. 25. RCW 46.63.020 and 1994 c 275 s 33 and 1994 c 141 s 2 are each reenacted and amended to read as follows:

      Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

      (1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

      (2) RCW 46.09.130 relating to operation of nonhighway vehicles;

      (3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

      (4) RCW 46.10.130 relating to the operation of snowmobiles;

      (5) Chapter 46.12 RCW relating to certificates of ownership and registration and markings indicating that a vehicle has been destroyed or declared a total loss;

      (6) RCW 46.16.010 relating to initial registration of motor vehicles;

      (7) RCW 46.16.011 relating to permitting unauthorized persons to drive;

      (8) RCW 46.16.160 relating to vehicle trip permits;

      (9) RCW 46.16.381 (6) or (9) relating to unauthorized use or acquisition of a special placard or license plate for disabled persons' parking;

      (10) RCW 46.20.021 relating to driving without a valid driver's license;

      (11) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

      (12) RCW 46.20.342 relating to driving with a suspended or revoked license or status;

      (13) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

      (14) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

      (15) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;

      (16) RCW 46.25.170 relating to commercial driver's licenses;

      (17) Chapter 46.29 RCW relating to financial responsibility;

      (18) RCW 46.30.040 relating to providing false evidence of financial responsibility;

      (19) RCW 46.37.435 relating to wrongful installation of sunscreening material;

      (20) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

      (21) RCW 46.48.175 relating to the transportation of dangerous articles;

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

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

      (24) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

      (25) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

      (26) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;

      (27) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

      (28) RCW 46.55.035 relating to prohibited practices by tow truck operators;

      (29) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

      (30) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

      (31) RCW 46.61.022 relating to failure to stop and give identification to an officer;

      (32) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

      (33) RCW 46.61.500 relating to reckless driving;

      (34) RCW 46.61.502, 46.61.504, 46.61.5051, 46.61.5052, and 46.61.5053 relating to persons under the influence of intoxicating liquor or drugs;

      (35) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

      (36) RCW 46.61.522 relating to vehicular assault;

      (37) RCW 46.61.525 relating to negligent driving;

      (38) RCW 46.61.527(4) relating to reckless endangerment of roadway workers;

      (39) RCW 46.61.530 relating to racing of vehicles on highways;

      (40) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

      (41) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

      (42) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

      (43) Chapter 46.65 RCW relating to habitual traffic offenders;

      (44) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

      (45) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

      (46) Chapter 46.80 RCW relating to motor vehicle wreckers;

      (47) Chapter 46.82 RCW relating to driver's training schools;

      (48) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;

      (49) RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW.

      Sec. 26. RCW 46.70.180 and 1994 c 284 s 13 are each amended to read as follows:

      Each of the following acts or practices is unlawful:

      (1) To cause or permit to be advertised, printed, displayed, published, distributed, broadcasted, televised, or disseminated in any manner whatsoever, any statement or representation with regard to the sale or financing of a vehicle which is false, deceptive, or misleading, including but not limited to the following:

      (a) That no down payment is required in connection with the sale of a vehicle when a down payment is in fact required, or that a vehicle may be purchased for a smaller down payment than is actually required;

      (b) That a certain percentage of the sale price of a vehicle may be financed when such financing is not offered in a single document evidencing the entire security transaction;

      (c) That a certain percentage is the amount of the service charge to be charged for financing, without stating whether this percentage charge is a monthly amount or an amount to be charged per year;

      (d) That a new vehicle will be sold for a certain amount above or below cost without computing cost as the exact amount of the factory invoice on the specific vehicle to be sold;

      (e) That a vehicle will be sold upon a monthly payment of a certain amount, without including in the statement the number of payments of that same amount which are required to liquidate the unpaid purchase price.

      (2) To incorporate within the terms of any purchase and sale agreement any statement or representation with regard to the sale or financing of a vehicle which is false, deceptive, or misleading, including but not limited to terms that include as an added cost to the selling price of a vehicle an amount for licensing or transfer of title of that vehicle which is not actually due to the state, unless such amount has in fact been paid by the dealer prior to such sale.

      (3) To set up, promote, or aid in the promotion of a plan by which vehicles are to be sold to a person for a consideration and upon further consideration that the purchaser agrees to secure one or more persons to participate in the plan by respectively making a similar purchase and in turn agreeing to secure one or more persons likewise to join in said plan, each purchaser being given the right to secure money, credits, goods, or something of value, depending upon the number of persons joining the plan.

      (4) To commit, allow, or ratify any act of "bushing" which is defined as follows: Taking from a prospective buyer of a vehicle a written order or offer to purchase, or a contract document signed by the buyer, which:

      (a) Is subject to the dealer's, or his or her authorized representative's future acceptance, and the dealer fails or refuses within forty-eight hours, exclusive of Saturday, Sunday, or legal holiday, and prior to any further negotiations with said buyer, to deliver to the buyer either the dealer's signed acceptance or all copies of the order, offer, or contract document together with any initial payment or security made or given by the buyer, including but not limited to money, check, promissory note, vehicle keys, a trade-in, or certificate of title to a trade-in; or

      (b) Permits the dealer to renegotiate a dollar amount specified as trade-in allowance on a vehicle delivered or to be delivered by the buyer as part of the purchase price, for any reason except:

      (i) Failure to disclose that the vehicle's certificate of ownership has been branded for any reason, including, but not limited to, status as a rebuilt vehicle as provided in RCW 46.12.050 and section 24 of this act; and

      (ii) Substantial physical damage or latent mechanical defect occurring before the dealer took possession of the vehicle and which could not have been reasonably discoverable at the time of the taking of the order, offer, or contract; or

      (c) Fails to comply with the obligation of any written warranty or guarantee given by the dealer requiring the furnishing of services or repairs within a reasonable time.

      (5) To commit any offense relating to odometers, as such offenses are defined in RCW 46.37.540, 46.37.550, 46.37.560, and 46.37.570. A violation of this subsection is a class C felony punishable under chapter 9A.20 RCW.

      (6) For any vehicle dealer or vehicle salesman to refuse to furnish, upon request of a prospective purchaser, the name and address of the previous registered owner of any used vehicle offered for sale.

      (7) To commit any other offense under RCW 46.37.423, 46.37.424, or 46.37.425.

      (8) To commit any offense relating to a dealer's temporary license permit, including but not limited to failure to properly complete each such permit, or the issuance of more than one such permit on any one vehicle.

      (9) For a dealer, salesman, or mobile home manufacturer, having taken an instrument or cash "on deposit" from a purchaser prior to the delivery of the bargained-for vehicle, to commingle the "on deposit" funds with assets of the dealer, salesman, or mobile home manufacturer instead of holding the "on deposit" funds as trustee in a separate trust account until the purchaser has taken delivery of the bargained-for vehicle. Delivery of a manufactured home shall be deemed to occur in accordance with RCW 46.70.135(5). Failure, immediately upon receipt, to endorse "on deposit" instruments to such a trust account, or to set aside "on deposit" cash for deposit in such trust account, and failure to deposit such instruments or cash in such trust account by the close of banking hours on the day following receipt thereof, shall be evidence of intent to commit this unlawful practice: PROVIDED, HOWEVER, That a motor vehicle dealer may keep a separate trust account which equals his or her customary total customer deposits for vehicles for future delivery. For purposes of this section, "on deposit" funds received from a purchaser of a manufactured home means those funds that a seller requires a purchaser to advance before ordering the manufactured home, but does not include any loan proceeds or moneys that might have been paid on an installment contract.

      (10) For a dealer or manufacturer to fail to comply with the obligations of any written warranty or guarantee given by the dealer or manufacturer requiring the furnishing of goods and services or repairs within a reasonable period of time, or to fail to furnish to a purchaser, all parts which attach to the manufactured unit including but not limited to the undercarriage, and all items specified in the terms of a sales agreement signed by the seller and buyer.

      (11) For a vehicle dealer to pay to or receive from any person, firm, partnership, association, or corporation acting, either directly or through a subsidiary, as a buyer's agent for consumers, any compensation, fee, gratuity, or reward in connection with the purchase or sale of a new motor vehicle.

      (12) For a buyer's agent acting directly or through a subsidiary to pay to or to receive from any motor vehicle dealer any compensation, fee, gratuity, or reward in connection with the purchase or sale of a new motor vehicle.

      (13) For a buyer's agent to arrange for or to negotiate the purchase, or both, of a new motor vehicle through an out-of-state dealer without disclosing in writing to the customer that the new vehicle would not be subject to chapter 19.118 RCW.

      (14) Being a manufacturer, other than a motorcycle manufacturer governed by chapter 46.94 RCW, to:

      (a) Coerce or attempt to coerce any vehicle dealer to order or accept delivery of any vehicle or vehicles, parts or accessories, or any other commodities which have not been voluntarily ordered by the vehicle dealer: PROVIDED, That recommendation, endorsement, exposition, persuasion, urging, or argument are not deemed to constitute coercion;

      (b) Cancel or fail to renew the franchise or selling agreement of any vehicle dealer doing business in this state without fairly compensating the dealer at a fair going business value for his or her capital investment which shall include but not be limited to tools, equipment, and parts inventory possessed by the dealer on the day he or she is notified of such cancellation or termination and which are still within the dealer's possession on the day the cancellation or termination is effective, if: (i) The capital investment has been entered into with reasonable and prudent business judgment for the purpose of fulfilling the franchise; and (ii) the cancellation or nonrenewal was not done in good faith. Good faith is defined as the duty of each party to any franchise to act in a fair and equitable manner towards each other, so as to guarantee one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party: PROVIDED, That recommendation, endorsement, exposition, persuasion, urging, or argument are not deemed to constitute a lack of good faith.

      (c) Encourage, aid, abet, or teach a vehicle dealer to sell vehicles through any false, deceptive, or misleading sales or financing practices including but not limited to those practices declared unlawful in this section;

      (d) Coerce or attempt to coerce a vehicle dealer to engage in any practice forbidden in this section by either threats of actual cancellation or failure to renew the dealer's franchise agreement;

      (e) Refuse to deliver any vehicle publicly advertised for immediate delivery to any duly licensed vehicle dealer having a franchise or contractual agreement for the retail sale of new and unused vehicles sold or distributed by such manufacturer within sixty days after such dealer's order has been received in writing unless caused by inability to deliver because of shortage or curtailment of material, labor, transportation, or utility services, or by any labor or production difficulty, or by any cause beyond the reasonable control of the manufacturer;

      (f) To provide under the terms of any warranty that a purchaser of any new or unused vehicle that has been sold, distributed for sale, or transferred into this state for resale by the vehicle manufacturer may only make any warranty claim on any item included as an integral part of the vehicle against the manufacturer of that item.

      Nothing in this section may be construed to impair the obligations of a contract or to prevent a manufacturer, distributor, representative, or any other person, whether or not licensed under this chapter, from requiring performance of a written contract entered into with any licensee hereunder, nor does the requirement of such performance constitute a violation of any of the provisions of this section if any such contract or the terms thereof requiring performance, have been freely entered into and executed between the contracting parties. This paragraph and subsection (14)(b) of this section do not apply to new motor vehicle manufacturers governed by chapter 46.96 RCW.

      (15) Unlawful transfer of an ownership interest in a motor vehicle as defined in RCW 19.116.050.

      NEW SECTION. Sec. 27. The following acts or parts of acts are each repealed:

      (1) RCW 46.12.360 and 1990 c 42 s 325, 1980 c 32 s 7, & 1975-'76 2nd ex.s. c 91 s 7; and

      (2) RCW 46.80.055 and 1985 c 109 s 8."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Owen, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5685.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5685, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5685, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5685, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


INTRODUCTION OF SPECIAL GUEST


      The President welcomed and introduced United States Senator Slade Gorton, who was seated on the rostrum.

      With permission of the Senate, business was suspended to permit Congressman Gorton to address the Senate.


MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5718 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 75.08 RCW to read as follows:

      The manager of a state fish hatchery operated by the department of fish and wildlife may allow nonprofit volunteer groups affiliated with the hatchery to undertake projects to raise donations, gifts, and grants that enhance support for the hatchery or activities in the surrounding watershed that benefit the hatchery. The manager may provide agency personnel and services, if available, to assist in the projects and may allow the volunteer groups to conduct activities on the grounds of the hatchery.

      The director of the department of fish and wildlife shall encourage and facilitate arrangements between hatchery managers and nonprofit volunteer groups and may establish guidelines for such arrangements."

      On page 1, line 2 of the title, after "programs;" strike the remainder of the title and insert "and adding a new section to chapter 75.08 RCW."", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate concurred in the House amendments to Senate Bill No. 5718.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5718, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5718, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 47.

      Excused: Senators Anderson, C. and Wood - 2.

      SENATE BILL NO. 5718, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5724 with the following amendment(s):

      On page 2, line 30, after "decisions))" insert ". The commission shall by July 1, 1997, develop a policy that ensures that if any material prepared pursuant to RCW 2.32.110 is licensed for resale, the material is made available for licensing to all commercial resellers on an equal and non-exclusive basis", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendment to Substitute Senate Bill No. 5724.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5724, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5724, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Anderson, C. - 1.

      SUBSTITUTE SENATE BILL NO. 5724, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5742 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature recognizes that the state of Washington has a rich agricultural history and that agriculture continues to be one of the most basic and important industries of the state. The legislature finds that the growth of this vital industry requires that students continue to receive vocational agriculture instruction from trained and qualified vocational agriculture instructors. The legislature further finds that the number of qualified vocational agriculture educators is declining. The legislature finds that a vocational agriculture teacher recruitment program is necessary to protect the educational and career opportunities for students with interests in vocational agriculture.

      NEW SECTION. Sec. 2. A new section is added to chapter 28A.415 RCW to read as follows:

      (1) The Washington state vocational agriculture teacher recruitment program is established. The program shall be designed by the state board of education, in consultation with the higher education coordinating board, representatives of institutions of higher education, education organizations having an interest in teacher recruitment issues, state-wide agricultural business organizations, organizations having an interest in agriculture education, the superintendent of public instruction, the state board for community and technical colleges, and the department of agriculture. The program shall be designed to recruit students who are in grades nine through twelve and adults who have entered other occupations to be future vocational agriculture teachers.

      (2) The program shall include the following:

      (a) Encouraging students in grades nine through twelve to acquire the academic and related skills necessary to prepare for the study of vocational agriculture at an institution of higher education;

      (b) Promoting vocational agriculture teaching career opportunities to develop an awareness of the opportunities in the education profession;

      (c) Providing opportunities for students to experience the application of regular high school course work to activities related to a teaching career in vocational agriculture;

      (d) Providing information on the transferability of skills learned in other occupations and professions to activities related to a teaching career in vocational agriculture;

      (e) Providing opportunities for underrepresented populations to participate in activities related to a teaching career in vocational agriculture; and

      (f) Providing for increased cooperation among institutions of higher education including community colleges, the superintendent of public instruction, the state board of education, and local school districts in working toward the goals of the program.

      NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1995, in the omnibus appropriations act, this act is null and void.

      On page 1, line 2 of the title, after "teachers;" strike the remainder of the title and insert "adding a new section to chapter 28A.415 RCW; and creating new sections.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rasmussen, the Senate concurred in the House amendments to Substitute Senate Bill No. 5742.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5742, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5724, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Absent: Senators Owen and Rinehart - 2.

      Excused: Senator Anderson, C. - 1.

      SUBSTITUTE SENATE BILL NO. 5742, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 10, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5751 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 66.44 RCW to read as follows:

      (1) No person apparently under the influence of liquor may purchase or consume liquor on any premises licensed by the board.

      (2) A person's intoxication may not be used as a defense in an action under this section.

      (3) A violation of this section is a civil infraction punishable by a fine of not less than one hundred dollars and not more than two hundred dollars."

      On page 1, line 1 of the title, after "beverages;" strike the remainder of the title and insert "adding a new section to chapter 66.44 RCW; and prescribing penalties.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendments to Substitute Senate Bill No. 5751.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5751, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5751, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 35; Nays, 12; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Long, McDonald, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sheldon, Smith, Snyder, Spanel, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 35.

      Voting nay: Senators Fairley, Finkbeiner, Heavey, Johnson, Kohl, Loveland, McAuliffe, McCaslin, Morton, Pelz, Sellar and Strannigan - 12.

      Absent: Senator Deccio - 1.

      Excused: Senator Anderson, C. - 1.

      SUBSTITUTE SENATE BILL NO. 5751, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Loveland, Senator Heavey was excused.


MESSAGE FROM THE HOUSE

April 4, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5931 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 30.04.111 and 1994 c 92 s 12 are each amended to read as follows:

      The total loans and extensions of credit by a bank or trust company to a person outstanding at any one time shall not exceed twenty percent of the capital and surplus of such bank or trust company. The following loans and extensions of credit shall not be subject to this limitation:

      (1) Loans or extensions of credit arising from the discount of commercial or business paper evidencing an obligation to the person negotiating it with recourse;

      (2) Loans or extensions of credit secured by bonds, notes, certificates of indebtedness, or treasury bills of the United States or by other such obligations wholly guaranteed as to principal and interest by the United States;

      (3) Loans or extensions of credit to or secured by unconditional takeout commitments or guarantees of any department, agency, bureau, board, commission, or establishment of the United States or any corporation wholly owned directly or indirectly by the United States;

      (4) Loans or extensions of credit fully secured by a segregated deposit account or accounts in the lending bank;

      (5) Loans or extensions of credit secured by collateral having a readily ascertained market value of at least one hundred fifteen percent of the outstanding amount of the loan or extension of credit;

      (6) Loans or extensions of credit secured by bills of lading, warehouse receipts, or similar documents transferring or securing title to readily marketable staples shall be subject to a limitation of thirty-five percent of capital and surplus in addition to the general limitations, if the market value of the staples securing each additional loan or extension of credit at all times equals or exceeds one hundred fifteen percent of the outstanding amount of the loan or extension of credit. The staples shall be fully covered by insurance whenever it is customary to insure the staples;

      (7) The purchase of bankers' acceptances of the kind described in section 13 of the federal reserve act and issued by other banks shall not be subject to any limitation based on capital and surplus;

      (8) The unpaid purchase price of a sale of bank property, if secured by such property.

      For the purposes of this section "capital" shall include the amount of common stock outstanding and unimpaired, the amount of preferred stock outstanding and unimpaired, and capital notes or debentures issued pursuant to chapter 30.36 RCW.

      For the purposes of this section "surplus" shall include capital surplus, reflecting the amounts paid in excess of the par or stated value of capital stock, or amounts contributed to the bank other than for capital stock, and ((amounts transferred to surplus from)) undivided profits ((pursuant to resolution of the board of directors)).

      The term "person" shall include an individual, sole proprietor, partnership, joint venture, association, trust, estate, business trust, corporation, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization.

      The director may prescribe rules to administer and carry out the purposes of this section, including without limitation rules to define or further define terms used in this section and to establish limits or requirements other than those specified in this section for particular classes or categories of loans or extensions of credit, and to determine when a loan putatively made to a person shall, for purposes of this section, be attributed to another person. In adopting the rules, the director shall be guided by rulings of the comptroller of the currency that govern lending limits applicable to national commercial banks.

      Sec. 2. RCW 30.04.215 and 1994 c 256 s 37 and 1994 c 92 s 20 are each reenacted to read as follows:

      (1) Notwithstanding any other provisions of law, in addition to all powers enumerated by this title, and those necessarily implied therefrom, a bank may engage in other business activities that have been determined by the board of governors of the federal reserve system or by the United States Congress to be closely related to the business of banking, as of December 31, 1993.

      (2) A bank that desires to perform an activity that is not expressly authorized by subsection (1) of this section shall first apply to the director for authorization to conduct such activity. Within thirty days of the receipt of this application, the director shall determine whether the activity is closely related to the business of banking, whether the public convenience and advantage will be promoted, whether the activity is apt to create an unsafe or unsound practice by the bank and whether the applicant is capable of performing such an activity. If the director finds the activity to be closely related to the business of banking and the bank is otherwise qualified, he or she shall forthwith inform the applicant that the activity is authorized. If the director determines that such activity is not closely related to the business of banking or the bank is not otherwise qualified, he or she shall forthwith inform the applicant in writing. The applicant shall have the right to appeal from an unfavorable determination in accordance with the procedures of the Administrative Procedure Act, chapter 34.05 RCW. In determining whether a particular activity is closely related to the business of banking, the director shall be guided by the rulings of the board of governors of the federal reserve system and the comptroller of the currency in making determinations in connection with the powers exercisable by bank holding companies, and the activities performed by other commercial banks or their holding companies.

      (3) ((In addition to all powers enumerated by this title, and those necessarily implied therefrom, a bank may engage in other business activities that are determined by the director, by rule adopted pursuant to chapter 34.05 RCW, to be closely related to the business of banking, or necessary or convenient thereto, and the exercise thereof will promote the public convenience and advantage. Provided, however, that such other business activities shall also have been determined by the board of governors of the federal reserve system or by the United States congress to be closely related to the business of banking.)) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a bank has under the laws of this state, a bank shall have the powers and authorities conferred as of August 31, 1994, upon federally chartered bank doing business in this state. A bank may exercise the powers and authorities conferred on a federally chartered bank after this date, only if the director finds that the exercise of such powers and authorities:

      (a) Serves the convenience and advantage of depositors, borrowers, or the general public; and

      (b) Maintains the fairness of competition and parity between state-chartered banks and federally chartered banks.

      As used in this section, "powers and authorities" include without limitation powers and authorities in corporate governance and operational matters.

      The restrictions, limitations, and requirements applicable to specific powers or authorities of federally chartered banks shall apply to banks exercising those powers or authorities permitted under this subsection but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted banks solely under this subsection.

      (4) Any activity which may be performed by a bank, except the taking of deposits, may be performed by (a) a corporation or (b) another entity approved by the director, which in either case is owned in whole or in part by the bank.

      Sec. 3. RCW 30.08.180 and 1994 c 92 s 60 are each amended to read as follows:

      Every bank and trust company shall make at least three regular reports each year to the director, as of the dates which he or she shall designate, according to form prescribed by him or her, verified by the president, manager or cashier and attested by at least two directors, which shall exhibit under appropriate heads the resources and liabilities of such corporation. The dates designated by the director shall be the dates designated by the comptroller of the currency of the United States for reports of national banking associations. ((Each such report in condensed form, to be prescribed by the director, shall be published once in a newspaper of general circulation, published in a place where the corporation is located, or if there be no newspaper published in such place, then in some newspaper published in the same county.))

      Every such corporation shall also make such special reports as the director shall call for.

      Sec. 4. RCW 30.08.190 and 1994 c 256 s 51 and 1994 c 92 s 61 are each reenacted and amended to read as follows:

      (1) Every regular report shall be filed with the director within thirty days from the date of issuance of the notice. Every special report shall be filed with the director within such time as shall be specified by him or her in the notice therefor.

      (2) The director shall provide a copy of any regular report free of charge to any person that submits a written request for the report.

      (3) Every bank and trust company which fails to file any report, required to be filed under subsection (1) of this section and within the time specified, shall be subject to a penalty of fifty dollars per day for each day's delay. A civil action for the recovery of any such penalty may be brought by the attorney general in the name of the state."

      On page 1, line 2 of the title, after "institutions;" strike the remainder of the title and insert "amending RCW 30.04.111 and 30.08.180; and reenacting and amending RCW 30.04.215 and 30.08.190.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Prentice, the Senate concurred in the House amendments to Senate Bill No. 5931.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5931, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5931, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Heavey - 2.

      SENATE BILL NO. 5931, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5956 with the following amendment(s):

      On page 1, line 9, after "obligations" strike "as defined under RCW 9.94A.030" and insert "as enumerated in RCW 9.94A.030 that are ordered pursuant to a felony or misdemeanor conviction", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendment to Senate Bill No. 5956.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5956, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5956, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Absent: Senator Hargrove - 1.

      Excused: Senators Anderson, C. and Heavey - 2.

      SENATE BILL NO. 5956, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 4, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5962 with the following amendment(s):

      On page 1, line 4, after "The" strike "department of agriculture" and insert "dairy inspection program advisory committee created by RCW 15.36.561"

      On page 1, line 7, after "The" strike "department" and insert "committee"

      On page 1, line 12, after "The" strike "department" and insert "committee", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rasmussen, the Senate concurred in the House amendments to Engrossed Senate Bill No. 5962.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5962, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5962, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Absent: Senator Hargrove - 1.

      Excused: Senators Anderson, C. and Heavey - 2.

      ENGROSSED SENATE BILL NO. 5962, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Kohl, Senator Quigley was excused.


MESSAGE FROM THE HOUSE

April 11, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5977 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 43.43.670 and 1980 c 69 s 2 are each amended to read as follows:

      There is created in the Washington state patrol a crime laboratory system which is authorized to:

      (1) Provide laboratory services for the purpose of analyzing and scientifically handling any physical evidence relating to any crime.

      (2) Provide training assistance for local law enforcement personnel.

      The crime laboratory system shall assign priority to a request for services with due regard to whether the case involves criminal activity against persons. The Washington state ((advisory)) forensic investigations council ((on criminal justice services)) shall assist the crime laboratory system in devising policies to promote the most efficient use of laboratory resources consistent with this section. The forensic investigations council shall be actively involved in the preparation of the crime laboratory budget and shall approve the crime laboratory budget prior to its formal submission by the state patrol to the office of financial management pursuant to RCW 43.88.030.

      Sec. 2. RCW 43.103.010 and 1983 1st ex.s. c 16 s 1 are each amended to read as follows:

      The purposes of this act are declared by the legislature to be as follows:

      (1) To preserve and enhance the state crime laboratory, which is an essential part of the criminal justice system in the state of Washington;

      (2) To fund the death investigation system and to make related state and local institutions more efficient;

      (((2))) (3) To preserve and enhance the state toxicology laboratory which is an essential part of the criminal justice and death investigation systems in the state of Washington;

      (((3))) (4) To provide resources necessary for the performance, by qualified pathologists, of autopsies which are also essential to the criminal justice and death investigation systems of this state and its counties;

      (((4))) (5) To improve the performance of death investigations and the criminal justice system through the formal training of county coroners and county medical examiners;

      (((5))) (6) To establish and maintain a dental identification system; and

      (((6))) (7) To provide flexibility so that any county may establish a county morgue when it serves the public interest.

      Sec. 3. RCW 43.103.020 and 1983 1st ex.s. c 16 s 2 are each amended to read as follows:

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

      (1) "Council" means the Washington state ((death)) forensic investigations council.

      (2) "Crime laboratory" means the Washington state patrol crime laboratory system created in RCW 43.43.670.

      (3) "Toxicology laboratory" means the Washington state toxicology laboratory.

      Sec. 4. RCW 43.103.030 and 1991 c 176 s 2 are each amended to read as follows:

      There is created the Washington state ((death)) forensic investigations council. The council shall oversee the state toxicology laboratory and, together with the president of the University of Washington or the president's designee, control the laboratory's operation. The council may also study and recommend cost-efficient improvements to the death investigation system in Washington and report its findings to the legislature.

      Further, the council shall, jointly with the chairperson of the pathology department of the University of Washington's School of Medicine, or the chairperson's designee, oversee the state forensic pathology fellowship program, determine the budget for the program and set the fellow's annual salary, and take those steps necessary to administer the program.

      The forensic investigations council shall be actively involved in the preparation of the crime laboratory and toxicology laboratory budgets and shall approve the crime laboratory and toxicology laboratory budgets prior to their formal submission to the office of financial management pursuant to RCW 43.88.030.

      Sec. 5. RCW 43.103.040 and 1983 1st ex.s. c 16 s 4 are each amended to read as follows:

      The council shall consist of ((nine)) twelve members who shall be selected as follows: One county coroner; one county prosecutor; one county prosecutor who also serves as ex officio county coroner; one county medical examiner; one county sheriff; one chief of police; ((one representative)) the chief of the state patrol; ((one)) two members of a county legislative authority; ((and)) one pathologist who is currently in private practice; and two members of a city legislative authority.

      ((All members shall be appointed to the council by the governor.)) The governor shall appoint members to the council from among the nominees submitted for each position as follows: The Washington association of county officials shall submit two nominees each for the coroner position and the medical examiner position; the Washington state association of counties shall submit two nominees each for the two county legislative authority positions; the association of Washington cities shall submit two nominees each for the two city legislative authority positions; the Washington association of prosecuting attorneys shall submit two nominees each for the county prosecutor-ex officio county coroner and for the county prosecutor position; the Washington association of sheriffs and police chiefs shall submit two nominees each for the county sheriff position and the chief of police position; and the Washington association of pathologists shall submit two nominees for the private pathologist position.

      Sec. 6. RCW 43.103.050 and 1983 1st ex.s. c 16 s 5 are each amended to read as follows:

      All members of the council are appointed for terms of four years, commencing on July 1 and expiring on June 30. However, of the members appointed to the ((initial)) council, five shall be appointed for two-year terms and ((four)) six shall be appointed for four-year terms. A person chosen to fill a vacancy created other than by the natural expiration of a member's term shall be nominated and appointed as provided in RCW 43.103.040 for the unexpired term of the member he or she is to succeed. Any member may be reappointed for additional terms.

      Sec. 7. RCW 43.103.070 and 1983 1st ex.s. c 16 s 7 are each amended to read as follows:

      The council shall elect a ((chairman)) chair and a vice ((chairman)) chair from among its members. ((Five)) The chair shall not vote except in case of a tie vote. Seven members of the council shall constitute a quorum. The governor shall summon the council to its first meeting. Otherwise, meetings may be called by the ((chairman)) chair and shall be called by him or her upon the written request of five members of the council. Conference calls by telephone are a proper form of meeting.

      Sec. 8. RCW 43.103.090 and 1983 1st ex.s. c 16 s 9 are each amended to read as follows:

      The council ((has the following powers)) may:

      (1) ((To)) Meet at such times and places as may be designated by a majority vote of the council members or, if a majority cannot agree, by the ((chairman)) chair;

      (2) ((To)) Adopt rules governing the council and the conduct of its meetings;

      (3) ((To)) Require reports from the state toxicologist on matters pertaining to the toxicology laboratory;

      (4) ((To review and, if necessary, require changes in the budget request of the toxicology laboratory)) Require reports from the chief of the Washington state patrol on matters pertaining to the crime laboratory;

      (5) Be actively involved in the preparation of the crime laboratory and toxicology laboratory budgets and shall approve the crime laboratory and toxicology laboratory budgets prior to their formal submission to the office of financial management pursuant to RCW 43.88.030; ((and

      (5) To)) (6) Do anything, necessary or convenient, which enables the council to perform its duties and to exercise its powers;

      (7) Appoint a toxicologist as state toxicologist to serve at the pleasure of the council; and

      (8) Set the salary for the state toxicologist.

      Sec. 9. RCW 43.79.445 and 1991 sp.s. c 13 s 21 are each amended to read as follows:

      There is established an account in the state treasury referred to as the "death investigations' account" which shall exist for the purpose of receiving, holding, investing, and disbursing funds appropriated or provided in RCW 70.58.107 and any moneys appropriated or otherwise provided thereafter.

      Moneys in the death investigations' account shall be disbursed by the state treasurer once every year on December 31 and at any other time determined by the treasurer. The treasurer shall make disbursements to: The state toxicology laboratory, counties for the cost of autopsies, the University of Washington to fund the state forensic pathology fellowship program, the state patrol for providing partial funding for the state dental identification system, the criminal justice training commission for training county coroners, medical examiners and their staff, and the state ((death)) forensic investigations council.

      The University of Washington and the Washington state ((death)) forensic investigations council shall jointly determine the yearly amount for the state forensic pathology fellowship program established by RCW 28B.20.426.

      Sec. 10. RCW 68.50.107 and 1986 c 87 s 2 are each amended to read as follows:

      There shall be established ((at)) in conjunction with the University of Washington Medical School and under the authority of the state forensic investigations council a state toxicological laboratory under the direction of the state toxicologist whose duty it will be to perform all necessary toxicologic procedures requested by all coroners, medical examiners, and prosecuting attorneys. ((Annually the president of the University of Washington, with the consent of)) The state ((death)) forensic investigations council((,)) shall appoint a ((competent)) toxicologist as state toxicologist ((who shall serve a one year term. The state toxicologist may be reappointed to as many additional one year terms as the president of the university and the death investigations council deem proper. The facilities of the police school of the Washington State University and the services of its professional staff shall be made available to coroners, medical examiners, and prosecuting attorneys in their investigations under this chapter. This)). The laboratory shall be funded by disbursement from the class H license fees as provided in RCW 66.08.180 and by appropriation from the death investigations account as provided in RCW 43.79.445.

      Sec. 11. RCW 82.14.310 and 1993 sp.s. c 21 s 1 are each amended to read as follows:

      (1) The county criminal justice assistance account is created in the state treasury.

      (2) The moneys deposited in the county criminal justice assistance account for distribution under this section, less any moneys appropriated for purposes under RCW 82.44.110, shall be distributed at such times as distributions are made under RCW 82.44.150 and on the relative basis of each county's funding factor as determined under this subsection.

      (a) A county's funding factor is the sum of:

      (i) The population of the county, divided by one thousand, and multiplied by two-tenths;

      (ii) The crime rate of the county, multiplied by three-tenths; and

      (iii) The annual number of criminal cases filed in the county superior court, for each one thousand in population, multiplied by five-tenths.

      (b) Under this section and RCW 82.14.320 and 82.14.330:

      (i) The population of the county or city shall be as last determined by the office of financial management;

      (ii) The crime rate of the county or city is the annual occurrence of specified criminal offenses, as calculated in the most recent annual report on crime in Washington state as published by the Washington association of sheriffs and police chiefs, for each one thousand in population;

      (iii) The annual number of criminal cases filed in the county superior court shall be determined by the most recent annual report of the courts of Washington, as published by the office of the administrator for the courts.

      (iv) Distributions and eligibility for distributions in the 1989-91 biennium shall be based on 1988 figures for both the crime rate as described under (ii) of this subsection and the annual number of criminal cases that are filed as described under (iii) of this subsection. Future distributions shall be based on the most recent figures for both the crime rate as described under (ii) of this subsection and the annual number of criminal cases that are filed as described under (iii) of this subsection.

      (3) Moneys distributed under this section shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

      Sec. 12. RCW 82.14.320 and 1993 sp.s. c 21 s 2 are each amended to read as follows:

      (1) The municipal criminal justice assistance account is created in the state treasury.

      (2) No city may receive a distribution under this section from the municipal criminal justice assistance account unless:

      (a) The city has a crime rate in excess of one hundred twenty-five percent of the state-wide average as calculated in the most recent annual report on crime in Washington state as published by the Washington association of sheriffs and police chiefs;

      (b) The city has levied the tax authorized in RCW 82.14.030(2) at the maximum rate or the tax authorized in RCW 82.46.010(3) at the maximum rate; and

      (c) The city has a per capita yield from the tax imposed under RCW 82.14.030(1) at the maximum rate of less than one hundred fifty percent of the state-wide average per capita yield for all cities from such local sales and use tax.

      (3) The moneys deposited in the municipal criminal justice assistance account for distribution under this section, less any moneys appropriated for purposes under RCW 82.44.110, shall be distributed at such times as distributions are made under RCW 82.44.150. The distributions shall be made as follows:

      (a) Unless reduced by this subsection, thirty percent of the moneys shall be distributed ratably based on population as last determined by the office of financial management to those cities eligible under subsection (2) of this section that have a crime rate determined under subsection (2)(a) of this section which is greater than one hundred seventy-five percent of the state-wide average crime rate. No city may receive more than fifty percent of any moneys distributed under this subsection (a) but, if a city distribution is reduced as a result of exceeding the fifty percent limitation, the amount not distributed shall be distributed under (b) of this subsection.

      (b) The remainder of the moneys, including any moneys not distributed in subsection (2)(a) of this section, shall be distributed to all cities eligible under subsection (2) of this section ratably based on population as last determined by the office of financial management.

      (4) No city may receive more than thirty percent of all moneys distributed under subsection (3) of this section.

      (5) Notwithstanding other provisions of this section, the distributions to any city that substantially decriminalizes or repeals its criminal code after July 1, 1990, and that does not reimburse the county for costs associated with criminal cases under RCW 3.50.800 or 3.50.805(2), shall be made to the county in which the city is located.

      (6) Moneys distributed under this section shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

      Sec. 13. RCW 82.14.330 and 1994 c 273 s 22 are each amended to read as follows:

      (1) The moneys deposited in the municipal criminal justice assistance account for distribution under this section, less any moneys appropriated for purposes under RCW 82.44.110, shall be distributed to the cities of the state as follows:

      (a) Twenty percent appropriated for distribution shall be distributed to cities with a three-year average violent crime rate for each one thousand in population in excess of one hundred fifty percent of the state-wide three-year average violent crime rate for each one thousand in population. The three-year average violent crime rate shall be calculated using the violent crime rates for each of the preceding three years from the annual reports on crime in Washington state as published by the Washington association of sheriffs and police chiefs. Moneys shall be distributed under this subsection (1)(a) ratably based on population as last determined by the office of financial management, but no city may receive more than one dollar per capita. Moneys remaining undistributed under this subsection at the end of each calendar year shall be distributed to the criminal justice training commission to reimburse participating city law enforcement agencies with ten or fewer full-time commissioned patrol officers the cost of temporary replacement of each officer who is enrolled in basic law enforcement training, as provided in RCW 43.101.200.

      (b) Sixteen percent shall be distributed to cities ratably based on population as last determined by the office of financial management, but no city may receive less than one thousand dollars.

      The moneys deposited in the municipal criminal justice assistance account for distribution under this subsection shall be distributed at such times as distributions are made under RCW 82.44.150.

      Moneys distributed under this subsection shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

      (2) In addition to the distributions under subsection (1) of this section:

      (a) Fourteen percent shall be distributed to cities that have initiated innovative law enforcement strategies, including alternative sentencing and crime prevention programs. No city may receive more than one dollar per capita under this subsection (2)(a).

      (b) Twenty percent shall be distributed to cities that have initiated programs to help at-risk children or child abuse victim response programs. No city may receive more than fifty cents per capita under this subsection (2)(b).

      (c) Twenty percent shall be distributed to cities that have initiated programs designed to reduce the level of domestic violence within their jurisdictions or to provide counseling for domestic violence victims. No city may receive more than fifty cents per capita under this subsection (2)(c).

      (d) Ten percent shall be distributed to cities that contract with another governmental agency for a majority of the city's law enforcement services.

      Moneys distributed under this subsection shall be distributed to those cities that submit funding requests under this subsection to the department of community, trade, and economic development based on criteria developed under RCW 82.14.335. Allocation of funds shall be in proportion to the population of qualified jurisdictions, but the distribution to a city shall not exceed the amount of funds requested. Cities shall submit requests for program funding to the department of community, trade, and economic development by November 1 of each year for funding the following year. The department shall certify to the state treasurer the cities eligible for funding under this subsection and the amount of each allocation.

      The moneys deposited in the municipal criminal justice assistance account for distribution under this subsection, less any moneys appropriated for purposes under RCW 82.44.110, shall be distributed at the times as distributions are made under RCW 82.44.150. Moneys remaining undistributed under this subsection at the end of each calendar year shall be distributed to the criminal justice training commission to reimburse participating city law enforcement agencies with ten or fewer full-time commissioned patrol officers the cost of temporary replacement of each officer who is enrolled in basic law enforcement training, as provided in RCW 43.101.200.

      If a city is found by the state auditor to have expended funds received under this subsection in a manner that does not comply with the criteria under which the moneys were received, the city shall be ineligible to receive future distributions under this subsection until the use of the moneys are justified to the satisfaction of the director or are repaid to the state general fund. The director may allow noncomplying use of moneys received under this subsection upon a showing of hardship or other emergent need.

      (3) Notwithstanding other provisions of this section, the distributions to any city that substantially decriminalizes or repeals its criminal code after July 1, 1990, and that does not reimburse the county for costs associated with criminal cases under RCW 3.50.800 or 3.50.805(2), shall be made to the county in which the city is located.

      Sec. 14. 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 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 percent into the Puget Sound capital construction account in the motor vehicle fund.

      (c) 4.07 percent into the Puget Sound ferry operations account in the motor vehicle fund.

      (d) 5.88 percent into the general fund to be distributed under RCW 82.44.155.

      (e) 4.75 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.

      (f) 1.60 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.

      (h) 5 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1995.

      (i) 5.9686 percent into the county criminal justice assistance account created in RCW 82.14.310.

      (j) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320.

      (k) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330.

      (l) 2.95 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. Not more than five percent of the funds deposited to these accounts shall be available for appropriations for enhancements to the state patrol crime laboratory system and the continuing costs related to these enhancements. Motor vehicle excise tax funds appropriated for such enhancements shall not supplant existing funds from the state general fund. 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.

      Sec. 15. RCW 46.61.5054 and 1994 c 275 s 7 are each amended to read as follows:

      (1)(a) In addition to penalties set forth in RCW 46.61.5051 through 46.61.5053, a one hundred twenty-five dollar fee shall be assessed to a person who is either convicted, sentenced to a lesser charge, or given deferred prosecution, as a result of an arrest for violating RCW 46.61.502, 46.61.504, 46.61.520, or 46.61.522. This fee is for the purpose of funding the Washington state toxicology laboratory and the Washington state patrol ((breath test program)) for grants and activities to increase the conviction rate and decrease the incidence of persons driving under the influence of alcohol or drugs.

      (b) Upon a verified petition by the person assessed the fee, the court may suspend payment of all or part of the fee if it finds that the person does not have the ability to pay.

      (c) When a minor has been adjudicated a juvenile offender for an offense which, if committed by an adult, would constitute a violation of RCW 46.61.502, 46.61.504, 46.61.520, or 46.61.522, the court shall assess the one hundred twenty-five dollar fee under (a) of this subsection. Upon a verified petition by a minor assessed the fee, the court may suspend payment of all or part of the fee if it finds that the minor does not have the ability to pay the fee.

      (2) The fee assessed under subsection (1) of this section shall be collected by the clerk of the court and distributed as follows:

      (a) Forty percent shall be subject to distribution under RCW 3.46.120, 3.50.100, 35.20.220, 3.62.020, 3.62.040, or 10.82.070.

      (b) ((If the case involves a blood test by the state toxicology laboratory,)) The remainder of the fee shall be forwarded to the state treasurer ((for)) who shall, through June 30, 1997, deposit: Fifty percent in the death investigations' account to be used solely for funding the state toxicology laboratory blood or breath testing programs((.

      (c) Otherwise, the remainder of the fee shall be forwarded to the state treasurer for deposit)); and fifty percent in the state patrol highway account to be used solely for funding ((the Washington state patrol breath test program)) activities to increase the conviction rate and decrease the incidence of persons driving under the influence of alcohol or drugs. Effective July 1, 1997, the remainder of the fee shall be forwarded to the state treasurer who shall deposit: Fifteen percent in the death investigations' account to be used solely for funding the state toxicology laboratory blood or breath testing programs; and eighty-five percent in the state patrol highway account to be used solely for funding activities to increase the conviction rate and decrease the incidence of persons driving under the influence of alcohol or drugs.

      Sec. 16. RCW 66.08.180 and 1987 c 458 s 10 are each amended to read as follows:

      Moneys in the liquor revolving fund shall be distributed by the board at least once every three months in accordance with RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, That the board shall reserve from distribution such amount not exceeding five hundred thousand dollars as may be necessary for the proper administration of this title((: AND PROVIDED FURTHER, That)).

      (1) All license fees, penalties and forfeitures derived under this act from class H licenses or class H licensees shall every three months be disbursed by the board as follows:

      (((1) 5.95 percent to the University of Washington and 3.97 percent to Washington State University for alcoholism and drug abuse research and for the dissemination of such research;

      (2) 1.75 percent, but in no event less than one)) (a) Three hundred ((fifty)) thousand dollars per biennium, to the University of Washington for the forensic investigations council to conduct the state toxicological laboratory pursuant to RCW ((68.08.107)) 68.50.107; and

      (((3) 88.33)) (b) Of the remaining funds:

      (i) 6.06 percent to the University of Washington and 4.04 percent to Washington State University for alcoholism and drug abuse research and for the dissemination of such research; and

      (ii) 89.9 percent to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW ((70.96.085, as now or hereafter amended)) 70.96A.050;

      (((4))) (2) The first fifty-five dollars per license fee provided in RCW 66.24.320 and 66.24.330 up to a maximum of one hundred fifty thousand dollars annually shall be disbursed every three months by the board to the general fund to be used for juvenile alcohol and drug prevention programs for kindergarten through third grade to be administered by the superintendent of public instruction;

      (((5))) (3) Twenty percent of the remaining total amount derived from license fees pursuant to RCW 66.24.320, 66.24.330, 66.24.340, 66.24.350, 66.24.360, and 66.24.370, shall be transferred to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW ((70.96.085)) 70.96A.050; and

      (((6))) (4) One-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three months be disbursed by the board to Washington State University solely for wine and wine grape research, extension programs related to wine and wine grape research, and resident instruction in both wine grape production and the processing aspects of the wine industry in accordance with RCW 28B.30.068. The director of financial management shall prescribe suitable accounting procedures to ensure that the funds transferred to the general fund to be used by the department of social and health services and appropriated are separately accounted for.

      NEW SECTION. Sec. 17. 1994 c 275 s 44 (uncodified) is repealed.

      NEW SECTION. Sec. 18. Section 17 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

      On page 1, line 1 of the title, after "investigations;" strike the remainder of the title and insert "amending RCW 43.43.670, 43.103.010, 43.103.020, 43.103.030, 43.103.040, 43.103.050, 43.103.070, 43.103.090, 43.79.445, 68.50.107, 82.14.310, 82.14.320, 82.14.330, 46.61.5054, and 66.08.180; reenacting and amending RCW 82.44.110; repealing 1994 c 275 s 44 (uncodified); and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Sheldon, the Senate concurred in the House amendments to Substitute Senate Bill No. 5977.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5977, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5977, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Anderson, C., Heavey and Quigley - 3.

      SUBSTITUTE SENATE BILL NO. 5977, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 10, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 6045 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 41.32.570 and 1994 c 69 s 2 are each amended to read as follows:

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

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

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

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

      (3) In addition to the seventy-five days of service permitted under subsection (1) of this section, a retired administrator or retired teacher may also serve as a substitute administrator up to an additional fifteen days per school year without reduction of pension if a school district board of directors adopts a resolution declaring that the services of a retired administrator or retired teacher are necessary because it cannot find a replacement administrator to fill a vacancy. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with the name of the retired administrator or retired teacher who has been employed as a substitute administrator to the department. However, a retired administrator or retired teacher may not serve more than a total of fifteen additional days per school year pursuant to subsections (2) and (3) of this section.

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

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

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

      On page 1, line 1 of the title, after "administrators;" strike the remainder of the title and insert "amending RCW 41.32.570; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator McAuliffe, the Senate concurred in the House amendments to Engrossed Senate Bill No. 6045.


MOTION


      On motion of Senator Ann Anderson, Senator West was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6045, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6045, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 46.

      Excused: Senators Anderson, C., Heavey and West - 3.

      ENGROSSED SENATE BILL NO. 6045, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


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


MOTION


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


SENATE RESOLUTION 1995-8632


By Senators Sutherland, Bauer and Palmer


      WHEREAS, The Clark County Evergreen School District Plainsmen Boys' Basketball team is the 1995 Class AAA Basketball Champion; and

      WHEREAS, The Plainsmen have distinguished themselves and brought honor to their school by becoming the second ever undefeated Class AAA state champion, and the first since 1980; and

      WHEREAS, Under the coaching and supervision of John Triplett and assistant coach Ken Nesland Evergreen were the state's highest-scoring team this season with a 75.1-point per game average; and

      WHEREAS, The Plainsmen used full-court press through four grueling state tournament contests to become only the third Clark County team to win the boys' basketball title in the state's highest classification; and

      WHEREAS, The Plainsmen are the first Boys' Basketball team in thirty years to win the Basketball Championship from Southwest Washington; and

      WHEREAS, The Evergreen team had a 3.786 team Grade Point Average; and

      WHEREAS, Paul Bustrin was named the tournament's Most Valuable Player and was placed on the tournament's first team all-star squad; and

      WHEREAS, Guard Matt Dyment was placed on the tournament's first team all-star squad; and

      WHEREAS, This team has deservedly, and through their own efforts, commitment, and sacrifice, achieved the title of Washington State Class AAA Basketball Champion;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor the 1995 Clark County Evergreen School District Boys' Basketball team with passage of this Senate Floor Resolution; and

      BE IT FURTHER RESOLVED, That with passage of this resolution, the members of the Washington State Senate acknowledge the example this group of amateur athletes has set, and the importance of athletic participation as part of the pursuit of academic achievement.


INTRODUCTION OF SPECIAL GUESTS


      The President welcomed and introduced the Evergreen School District Plainsmen Boy's Basketball Team and their coaches, who were seated in the gallery.


MOTION


      On motion of Senator Spanel, the Senate returned to the fourth order of business.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5387 with the following amendment(s):

      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., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Prentice, the Senate concurred in the House amendment to Second Substitute Senate Bill No. 5387.


MOTION


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

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5387, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5387, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 2; Absent, 2; Excused, 5.

      Voting yea: Senators Anderson, A., Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley and Wojahn - 40.

      Voting nay: Senators Cantu and Hochstatter - 2.

      Absent: Senators Oke and Wood - 2.

      Excused: Senators Anderson, C., Drew, Heavey, Owen and West - 5.

      SECOND SUBSTITUTE SENATE BILL NO. 5387, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Johnson, Senator Moyer was excused.


MESSAGE FROM THE HOUSE

April 4, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5406 with the following amendment(s):

      On page 1, after line 17, insert the following:

      "NEW SECTION. Sec. 4. A new section is added to chapter 63.14 RCW to read as follows:

      (1) With respect to a retail installment transaction, as defined in RCW 63.14.010(8), if the court as a matter of law finds the agreement or contract, or any clause in the agreement or contract, to have been unconscionable at the time it was made, the court may refuse to enforce the agreement or contract, may enforce the remainder of the agreement or contract, or may limit the application of any unconscionable clause to avoid an unconscionable result.

      (2) If it is claimed or it appears to the court that the agreement or contract, or any clause in the agreement or contract, may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to assist the court in making a determination regarding unconscionability.

      (3) For the purpose of this section, a charge or practice expressly permitted by this chapter is not in itself unconscionable."

      Renumber the remaining section consecutively and correct the title reference accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Prentice moved that the Senate concur in the House amendment to Substitute Senate Bill No. 5406.


POINT OF INQUIRY


      Senator Hale: "Senator Prentice, does Section 4, subsection (3) of the House amendment to Substitute Senate Bill No. 5406 prevent a court from determining that a particular interest rate is unconscionable, absent other indicators of unconscionability?"

      Senator Prentice: "No, the language at Section 4, subsection (3) of the House amendment to Substitute Senate Bill No. 5406 states that 'a charge or practice permitted by this chapter is not in itself unconscionable.' This language should be interpreted as meaning that unless a specific numerical interest rate is permitted in statute, the rate can, in and of itself, be deemed unconscionable. Because no specific rate is either permitted or prohibited, a court is free to determine whether the rate is unconscionable under existing law. Thus, while parties are free to contract for an interest rate, clearly exorbitant rates can be deemed unconscionable."

      The President declared the question before the Senate to be the motion by Senator Prentice that the Senate do concur in the House amendment to Substitute Senate Bill No. 5406.

      The motion by Senator Prentice carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5406.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5406, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5406, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 3; Absent, 0; Excused, 5.

      Voting yea: Senators Anderson, A., Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 41.

      Voting nay: Senators Cantu, Pelz and Wojahn - 3.

      Excused: Senators Anderson, C., Drew, Heavey, Moyer and Owen - 5.

      SUBSTITUTE SENATE BILL NO. 5406, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 10:48 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

      The Senate was called to order at 11:27 a.m. by President Pritchard.


MOTIONS


      On motion of Senator Wood, Senators Hochstatter, McDonald and Winsley were excused.

      On motion of Senator Loveland, Senator Pelz was excused.


MESSAGE FROM THE HOUSE

April 14, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 6037 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that the proliferation and complexity of state agency rules requires oversight beyond that which is currently provided by the legislative, executive, and judicial branches of government. The legislature further finds that some states have created independent commissions to oversee the regulatory process, and that this type of commission may have merit in Washington's system of regulatory oversight.

      NEW SECTION. Sec. 2. The senate and house of representatives government operations committees shall conduct a joint interim study on the advisability of creating an independent commission to provide oversight of the state's regulatory system. The study may include an examination of the appropriate roles for the legislative, executive, and judicial branches of government in the oversight of rule making. The study may also include an analysis of the costs of creating an independent commission and the benefits to be obtained. The committees may examine the possible functions of an independent commission, including its role in the systematic review of existing agency rules for compliance with the determinations contained in section 201, chapter. . ., Laws of 1995 (section 201 of Engrossed Substitute House Bill No. 1010). The committees shall report their recommendations to the legislature by January 1, 1996."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Sheldon, the Senate concurred in the House amendment to Engrossed Senate Bill No. 6037.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6037, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6037, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 43.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Pelz and Winsley - 6.

      ENGROSSED SENATE BILL NO. 6037, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Loveland, Senator Owen was excused.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SENATE JOINT MEMORIAL NO. 8014 with the following amendment(s):

      On page 2, line 18, after "contrary" strike all material through "procedures and" on line 20, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Sutherland, the Senate concurred in the House amendment to Engrossed Senate Joint Memorial No. 8014.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Joint Memorial No. 8014, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Joint Memorial No. 8014, as amended by the House, and the joint memorial passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 42.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz and Winsley - 7.

      SENATE JOINT MEMORIAL NO. 8014, as amended by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5292 with the following amendment(s):

      On page 1, beginning on line 13, after "specified in" strike all material through "1992" on line 15, and insert "federal pipeline safety laws (49 U.S.C. 60101 et seq.) in effect on the effective date of this act", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Sutherland, the Senate concurred in the House amendment to Senate Bill No. 5292.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5292, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5292, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 42.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz and Winsley - 7.

      SENATE BILL NO. 5292, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5089 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that citizens of the state increasingly rely on the dependability of enhanced 911, a system that allows the person answering an emergency call to immediately determine the location of the emergency without the need of the caller to speak. The legislature further finds that in some cases, calls made from telephones connected to private telephone systems may not be precisely located by the answerer, eliminating some of the benefit of enhanced 911, and that this condition could additionally imperil citizens calling from these locations in an emergency. The legislature also finds that until national standards have been developed to address this condition, information-forwarding requirements should be mandated for only those settings with the most risk, including schools, residences, and some business settings.

      Sec. 2. RCW 80.04.010 and 1991 c 100 s 1 are each amended to read as follows:

      As used in this title, unless specifically defined otherwise or unless the context indicates otherwise:

      "Automatic location identification" means a system by which information about a caller's location, including the seven-digit number or ten-digit number used to place a 911 call or a different seven-digit number or ten-digit number to which a return call can be made from the public switched network, is forwarded to a public safety answering point for display.

      "Automatic number identification" means a system that allows for the automatic display of the seven-digit or ten-digit number used to place a 911 call.

      "Commission" means the utilities and transportation commission.

      "Commissioner" means one of the members of such commission.

      "Competitive telecommunications company" means a telecommunications company which has been classified as such by the commission pursuant to RCW 80.36.320.

      "Competitive telecommunications service" means a service which has been classified as such by the commission pursuant to RCW 80.36.330.

      "Corporation" includes a corporation, company, association or joint stock association.

      "Person" includes an individual, a firm or partnership.

      "Gas plant" includes all real estate, fixtures and personal property, owned, leased, controlled, used or to be used for or in connection with the transmission, distribution, sale or furnishing of natural gas, or the manufacture, transmission, distribution, sale or furnishing of other type gas, for light, heat or power.

      "Gas company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receiver appointed by any court whatsoever, and every city or town, owning, controlling, operating or managing any gas plant within this state.

      "Electric plant" includes all real estate, fixtures and personal property operated, owned, used or to be used for or in connection with or to facilitate the generation, transmission, distribution, sale or furnishing of electricity for light, heat, or power for hire; and any conduits, ducts or other devices, materials, apparatus or property for containing, holding or carrying conductors used or to be used for the transmission of electricity for light, heat or power.

      "Electrical company" includes any corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever (other than a railroad or street railroad company generating electricity solely for railroad or street railroad purposes or for the use of its tenants and not for sale to others), and every city or town owning, operating or managing any electric plant for hire within this state. "Electrical company" does not include a company or person employing a cogeneration facility solely for the generation of electricity for its own use or the use of its tenants or for sale to an electrical company, state or local public agency, municipal corporation, or quasi municipal corporation engaged in the sale or distribution of electrical energy, but not for sale to others, unless such company or person is otherwise an electrical company.

      "LATA" means a local access transport area as defined by the commission in conformance with applicable federal law.

      "Private telecommunications system" means a telecommunications system controlled by a person or entity for the sole and exclusive use of such person, entity, or affiliate thereof, including the provision of private shared telecommunications services by such person or entity. "Private telecommunications system" does not include a system offered for hire, sale, or resale to the general public.

      "Private shared telecommunications services" includes the provision of telecommunications and information management services and equipment within a user group located in discrete private premises in building complexes, campuses, or high-rise buildings, by a commercial shared services provider or by a user association, through privately owned customer premises equipment and associated data processing and information management services and includes the provision of connections to the facilities of a local exchange and to interexchange telecommunications companies.

      "Private switch automatic location identification service" means a service that enables automatic location identification to be provided to a public safety answering point for 911 calls originating from station lines served by a private switch system.

      "Radio communications service company" includes every corporation, company, association, joint stock association, partnership, and person, their lessees, trustees, or receivers appointed by any court, and every city or town making available facilities to provide radio communications service, radio paging, or cellular communications service for hire, sale, or resale.

      "Telecommunications company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town owning, operating or managing any facilities used to provide telecommunications for hire, sale, or resale to the general public within this state.

      "Noncompetitive telecommunications service" means any service which has not been classified as competitive by the commission.

      "Facilities" means lines, conduits, ducts, poles, wires, cables, cross-arms, receivers, transmitters, instruments, machines, appliances, instrumentalities and all devices, real estate, easements, apparatus, property and routes used, operated, owned or controlled by any telecommunications company to facilitate the provision of telecommunications service.

      "Telecommunications" is the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means. As used in this definition, "information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols.

      "Water system" includes all real estate, easements, fixtures, personal property, dams, dikes, head gates, weirs, canals, reservoirs, flumes or other structures or appliances operated, owned, used or to be used for or in connection with or to facilitate the supply, storage, distribution, sale, furnishing, diversion, carriage, apportionment or measurement of water for power, irrigation, reclamation, manufacturing, municipal, domestic or other beneficial uses for hire.

      "Water company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town owning, controlling, operating, or managing any water system for hire within this state: PROVIDED, That for purposes of commission jurisdiction it shall not include any water system serving less than one hundred customers where the average annual gross revenue per customer does not exceed three hundred dollars per year, which revenue figure may be increased annually by the commission by rule adopted pursuant to chapter 34.05 RCW to reflect the rate of inflation as determined by the implicit price deflator of the United States department of commerce: AND PROVIDED FURTHER, That such measurement of customers or revenues shall include all portions of water companies having common ownership or control, regardless of location or corporate designation. "Control" as used herein shall be defined by the commission by rule and shall not include management by a satellite agency as defined in chapter 70.116 RCW if the satellite agency is not an owner of the water company. "Water company" also includes, for auditing purposes only, nonmunicipal water systems which are referred to the commission pursuant to an administrative order from the department, or the city or county as provided in RCW 80.04.110. However, water companies exempt from commission regulation shall be subject to the provisions of chapter 19.86 RCW. A water company cannot be removed from regulation except with the approval of the commission. Water companies subject to regulation may petition the commission for removal from regulation if the number of customers falls below one hundred or the average annual revenue per customer falls below three hundred dollars. The commission is authorized to maintain continued regulation if it finds that the public interest so requires.

      "Cogeneration facility" means any machinery, equipment, structure, process, or property, or any part thereof, installed or acquired for the primary purpose of the sequential generation of electrical or mechanical power and useful heat from the same primary energy source or fuel.

      "Public service company" includes every gas company, electrical company, telecommunications company, and water company. Ownership or operation of a cogeneration facility does not, by itself, make a company or person a public service company.

      "Local exchange company" means a telecommunications company providing local exchange telecommunications service.

      "Department" means the department of health.

      The term "service" is used in this title in its broadest and most inclusive sense.

      NEW SECTION. Sec. 3. A new section is added to chapter 80.36 RCW to read as follows:

      By January 1, 1997, or one year after enhanced 911 service becomes available or a private switch automatic location identification service approved by the Washington utilities and transportation commission is available from the serving local exchange telecommunications company, whichever is later, any private shared telecommunications services provider that provides service to residential customers shall assure that the telecommunications system is connected to the public switched network such that calls to 911 result in automatic location identification for each residential unit in a format that is compatible with the existing or planned county enhanced 911 system.

      NEW SECTION. Sec. 4. A new section is added to chapter 28A.150 RCW to read as follows:

      By January 1, 1997, or one year after enhanced 911 service becomes available or a private switch automatic location identification service approved by the Washington utilities and transportation commission is available from the serving local exchange telecommunications company, whichever is later, all common and public schools located in counties that provide enhanced 911 service shall provide persons using school facilities direct access to telephones that are connected to the public switched network such that calls to 911 result in automatic location identification for each telephone in a format that is compatible with the existing and planned county enhanced 911 system during all times that the facility is in use. Any school district acquiring a private telecommunications system that allows connection to the public switched network after January 1, 1997, shall assure that the telecommunications system is connected to the public switched network such that calls to 911 result in automatic location identification for each telephone in a format that is compatible with the existing or planned county enhanced 911 system.

      NEW SECTION. Sec. 5. A new section is added to chapter 80.36 RCW to read as follows:

      By January 1, 1997, or one year after enhanced 911 service becomes available or a private switch automatic location identification service approved by the Washington utilities and transportation commission is available from the serving local exchange telecommunications company, whichever is later,




any commercial shared services provider of private shared telecommunications services for hire or resale to the general public to multiple unaffiliated business users from a single system shall assure that such a system is connected to the public switched network such that calls to 911 result in automatic location identification for each telephone in a format that is compatible with the existing or planned county enhanced 911 system. This section shall apply only to providers of service to businesses containing a physical area exceeding twenty-five thousand square feet, or businesses on more than one floor of a building, or businesses in multiple buildings.

      NEW SECTION. Sec. 6. A new section is added to chapter 35.21 RCW to read as follows:

      No city or town may enact or enforce an ordinance or regulation mandating automatic number identification or automatic location identification for a private telecommunications system or for a provider of private shared telecommunications services.

      NEW SECTION. Sec. 7. A new section is added to chapter 35A.21 RCW to read as follows:

      No code city may enact or enforce an ordinance or regulation mandating automatic number identification or automatic location identification for a private telecommunications system or for a provider of private shared telecommunications services.

      NEW SECTION. Sec. 8. A new section is added to chapter 36.32 RCW to read as follows:

      No county may enact or enforce an ordinance or regulation mandating automatic number identification or automatic location identification for a private telecommunications system or for a provider of private shared telecommunications services.

      NEW SECTION. Sec. 9. A new section is added to chapter 38.52 RCW to read as follows:

      The state enhanced 911 coordination office may develop and implement public education materials regarding the capability of specific equipment used as part of a private telecommunications system or in the provision of private shared telecommunications services to forward automatic location identification and automatic number identification.

      NEW SECTION. Sec. 10. A new section is added to chapter 38.52 RCW to read as follows:

      The state enhanced 911 coordination office and the enhanced 911 advisory committee may participate in efforts to set uniform national standards for automatic number identification and automatic location identification data transmission for private telecommunications systems and private shared telecommunications services. The enhanced 911 advisory committee shall report to the legislature by January 1, 1997, the progress of such standards development and shall make recommendations on steps to be taken if such standards have not been adopted.

      Sec. 11. RCW 43.63A.320 and 1993 c 280 s 69 are each amended to read as follows:

      Except for matters relating to the statutory duties of the director of community, trade, and economic development which are to be carried out through the director of fire protection, the board shall have the responsibility of developing a comprehensive state policy regarding fire protection services. In carrying out its duties, the board shall:

      (1) Adopt a state fire protection master plan;

      (2) Monitor fire protection in the state and develop objectives and priorities to improve fire protection for the state's citizens;

      (3) Establish and promote state arson control programs and ensure development of local arson control programs;

      (4) Provide representation for local fire protection services to the governor in state-level fire protection planning matters such as, but not limited to, hazardous materials;

      (5) Recommend to the director of community, trade, and economic development rules on minimum information requirements of automatic location identification for the purposes of enhanced 911 emergency service;

      (6) Seek and solicit grants, gifts, bequests, devices, and matching funds for use in furthering the objectives and duties of the board, and establish procedures for administering them;

      (((6))) (7) Promote mutual aid and disaster planning for fire services in this state;

      (((7))) (8) Assure the dissemination of information concerning the amount of fire damage including that damage caused by arson, and its causes and prevention;

      (((8))) (9) Submit annually a report to the governor containing a statement of its official acts pursuant to this chapter, and make such studies, reports, and recommendations to the governor and the legislature as are requested;

      (((9))) (10) Adopt a state fire training and education master plan;

      (((10))) (11) Develop and adopt a master plan for the construction, equipping, maintaining, and operation of necessary fire service training and education facilities, but the authority to construct, equip, and maintain such facilities is subject to chapter 43.19 RCW;

      (((11))) (12) Develop and adopt a master plan for the purchase, lease, or other acquisition of real estate necessary to establish and operate fire service training and education facilities in a manner provided by law;

      (((12))) (13) Adopt standards for state-wide fire service training and education courses including courses in arson detection and investigation for personnel of fire, police, and prosecutor's departments;

      (((13))) (14) Assure the administration of any legislation enacted by the legislature in pursuance of the aims and purposes of any acts of Congress insofar as the provisions thereof may apply;

      (((14))) (15) Cooperate with the common schools, community colleges, institutions of higher education, and any department or division of the state, or of any county or municipal corporation in establishing and maintaining instruction in fire service training and education in accordance with any act of Congress and legislation enacted by the legislature in pursuance thereof and in establishing, building, and operating training and education facilities.

      This section does not apply to forest fire service personnel and programs. Industrial fire departments and private fire investigators may participate in training and education programs under this chapter for a reasonable fee established by rule.

      NEW SECTION. Sec. 12. 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. 13. Section 11 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 3 of the title, after "services;" strike the remainder of the title and insert "amending RCW 80.04.010 and 43.63A.320; adding new sections to chapter 80.36 RCW; adding a new section to chapter 28A.150 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35A.21 RCW; adding a new section to chapter 36.32 RCW; adding new sections to chapter 38.52 RCW; creating a new section; providing an effective date; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Sutherland, the Senate concurred in the House amendments to Substitute Senate Bill No. 5089.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5089, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5089, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 42.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz and Winsley - 7.

      SUBSTITUTE SENATE BILL NO. 5089, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5024 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 72.10.020 and 1989 c 157 s 3 are each amended to read as follows:

      (1) The department may develop and implement a health services plan for the delivery of health care services to ((inmates)) offenders in the department's ((custody)) correctional facilities, at the discretion of the secretary, and in conformity with state and federal law.

      (2) To discourage the unwarranted use of health care services, all offenders shall participate in the costs of health care services by paying no less than three dollars per health visit. Pursuant to the authority granted in chapter 34.05 RCW, the secretary may collect this amount for health care services directly from an offender's institution account.

      (3) Inmates are required to make copayments under subsection (2) of this section for health care services that are offender initiated. Inmates are not required to pay for emergency treatment or for visits initiated by health care staff or treatment of those conditions that constitute a serious health care need.

      (4) Inmates shall be required to purchase all over-the-counter medications at a nominal charge. Over-the-counter medicines shall only be available on an individual unit dose basis as determined by the department and may be distributed through the inmate store.

      (5) No inmate shall be denied any health care service, including over-the-counter medications, because of inability to pay.

      (6) The department shall adopt rules to implement this section."

      On page 1, line 1 of the title, after "offenders;" strike the remainder of the title and insert "and amending RCW 72.10.020.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Hargrove, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5024 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 11, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5119 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The intent of this act is to:

      (1) Simplify the calculation of postretirement adjustments so that they can be more easily communicated to plan I active and retired members;

      (2) Provide postretirement adjustments based on years of service rather than size of benefit;

      (3) Provide postretirement adjustments at an earlier age;

      (4) Provide postretirement adjustments to a larger segment of plan I retirees; and

      (5) Simplify administration by reducing the number of plan I postretirement adjustments to one.

      NEW SECTION. Sec. 2. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:

      (1) Beginning July 1, 1995, and annually thereafter, the retirement allowance of a person meeting the requirements of this section shall be increased by the annual increase amount.

      (2) The following persons shall be eligible for the benefit provided in subsection (1) of this section:

      (a) A beneficiary who has received a retirement allowance for at least one year and has attained at least age sixty-six by July 1st in the calendar year in which the annual increase is given; or

      (b) A beneficiary whose retirement allowance is lower than the minimum benefit provided under section 3 of this act.

      (3) The following persons shall also be eligible for the benefit provided in subsection (1) of this section:

      (a) A beneficiary receiving the minimum benefit on June 30, 1995, under RCW 41.32.485; or

      (b) A recipient of a survivor benefit on June 30, 1995, which has been increased by RCW 41.32.575.

      (4) If otherwise eligible, those receiving an annual adjustment under RCW 41.32.530(1)(d) shall be eligible for the annual increase adjustment in addition to the benefit that would have been received absent this section.

      (5) Those receiving a temporary disability benefit under RCW 41.32.540 shall not be eligible for the benefit provided by this section.

      (6) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this postretirement adjustment not granted prior to that time.

      NEW SECTION. Sec. 3. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:

      (1) No one who becomes a beneficiary after June 30, 1995, shall receive a monthly retirement allowance of less than twenty-four dollars and twenty-two cents times the number of years of service creditable to the person whose service is the basis of such retirement allowance.

      (2) If the retirement allowance payable was adjusted at the time benefit payments to the beneficiary commenced, the minimum allowance provided in this section shall be adjusted in a manner consistent with that adjustment.

      (3) Beginning July 1, 1996, the minimum benefit set forth in subsection (1) of this section shall be adjusted annually by the annual increase.

      (4) Those receiving a temporary disability benefit under RCW 41.32.540 shall not be eligible for the benefit provided by this section.

      NEW SECTION. Sec. 4. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan I" to read as follows:

      (1) The amount of the July 1, 1993, increase to the retirement allowance of beneficiaries under this chapter as a result of the temporary adjustment authorized by section 2, chapter 519, Laws of 1993, shall be made a permanent adjustment on July 1, 1995.

      (2) Beneficiaries receiving a benefit under RCW 41.32.485 who are at least age seventy-nine shall receive on July 1, 1995, a permanent adjustment of one dollar and eighteen cents per month per year of service.

      (3) Beneficiaries under this chapter who are not subject to subsection (1) of this section and not receiving a benefit under RCW 41.32.485 shall receive the following permanent adjustment to their retirement allowance on July 1, 1995:

       (a) Those who are age seventy, thirty-nine cents per month per year of service;

      (b) Those who are age seventy-one, seventy-nine cents per month per year of service; and

      (c) Those who are at least age seventy-two, one dollar and eighteen cents per month per year of service.

      NEW SECTION. Sec. 5. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan I" to read as follows:

      (1) Beginning July 1, 1995, and annually thereafter, the retirement allowance of a person meeting the requirements of this section shall be increased by the annual increase amount.

      (2) The following persons shall be eligible for the benefit provided in subsection (1) of this section:

      (a) A beneficiary who has received a retirement allowance for at least one year and has attained at least age sixty-six by July 1st in the calendar year in which the annual increase is given; or

      (b) A beneficiary whose retirement allowance is lower than the minimum benefit provided under section 7 of this act.

      (3) The following persons shall also be eligible for the benefit provided in subsection (1) of this section:

      (a) A beneficiary receiving the minimum benefit on June 30, 1995, under RCW 41.40.198; or

      (b) A recipient of a survivor benefit on June 30, 1995, which has been increased by RCW 41.40.325.

      (4) If otherwise eligible, those receiving an annual adjustment under RCW 41.40.188(1)(c) shall be eligible for the annual increase adjustment in addition to the benefit that would have been received absent this section.

      (5) Those receiving a benefit under RCW 41.40.220(1), or a survivor of a disabled member under RCW 41.44.170(5) shall be eligible for the benefit provided by this section.

      (6) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this postretirement adjustment not granted prior to that time.

      NEW SECTION. Sec. 6. A new section is added to chapter 41.40 RCW under the subchapter heading "Part I" to read as follows:

      For the purposes of sections 5, 7, and 8 of this act, "beneficiary" means a beneficiary under RCW 41.40.010 or 41.44.030, or both RCW 41.40.010 and 41.44.030.

      NEW SECTION. Sec. 7. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan I" to read as follows:

      (1) Except as provided in subsections (4) and (5) of this section, no one who becomes a beneficiary after June 30, 1995, shall receive a monthly retirement allowance of less than twenty-four dollars and twenty-two cents times the number of years of service creditable to the person whose service is the basis of such retirement allowance.

      (2) Where the retirement allowance payable was adjusted at the time benefit payments to the beneficiary commenced, the minimum allowance provided in this section shall be adjusted in a manner consistent with that adjustment.

      (3) Beginning July 1, 1996, the minimum benefit set forth in subsection (1) of this section shall be adjusted annually by the annual increase.

      (4) Those receiving a benefit under RCW 41.40.220(1) or under RCW 41.44.170 (3) and (5) shall not be eligible for the benefit provided by this section.

      (5) For persons who served as elected officials and whose accumulated employee contributions and credited interest was less than seven hundred fifty dollars at the time of retirement, the minimum benefit under subsection (1) of this section shall be ten dollars per month per each year of creditable service.

      NEW SECTION. Sec. 8. A new section is added to chapter 41.40 RCW under the subchapter heading "Plan I" to read as follows:

      (1) The amount of the July 1, 1993, increase to the retirement allowance of beneficiaries under this chapter as a result of the temporary adjustment authorized by section 3, chapter 519, Laws of 1993, shall be made a permanent adjustment on July 1, 1995.

      (2) Beneficiaries receiving a benefit under RCW 41.40.198 who are at least age seventy-nine shall receive on July 1, 1995, a permanent adjustment of one dollar and eighteen cents per month per year of service.

      (3) Beneficiaries under this chapter who are not subject to subsection (1) of this section and are not receiving a benefit under RCW 41.40.198 shall receive the following permanent adjustment to their retirement allowance on July 1, 1995:

       (a) Those who are age seventy, thirty-nine cents per month per year of service;

      (b) Those who are age seventy-one, seventy-nine cents per month per year of service; and

      (c) Those who are at least age seventy-two, one dollar and eighteen cents per month per year of service.

      Sec. 9. RCW 41.32.010 and 1994 c 298 s 3, 1994 c 247 s 2, and 1994 c 197 s 12 are each reenacted and amended to read as follows:

      As used in this chapter, unless a different meaning is plainly required by the context:

      (1)(a) "Accumulated contributions" for plan I members, means the sum of all regular annuity contributions and, except for the purpose of withdrawal at the time of retirement, any amount paid under RCW 41.50.165(2) with regular interest thereon.

      (b) "Accumulated contributions" for plan II members, means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

      (2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest.

      (3) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member.

      (4) "Member reserve" means the fund in which all of the accumulated contributions of members are held.

      (5)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance or other benefit provided by this chapter.

      (b) "Beneficiary" for plan II members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

      (6) "Contract" means any agreement for service and compensation between a member and an employer.

      (7) "Creditable service" means membership service plus prior service for which credit is allowable. This subsection shall apply only to plan I members.

      (8) "Dependent" means receiving one-half or more of support from a member.

      (9) "Disability allowance" means monthly payments during disability. This subsection shall apply only to plan I members.

      (10)(a) "Earnable compensation" for plan I members, means:

      (i) All salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year. In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money.

      (ii) "Earnable compensation" for plan I members also includes the following actual or imputed payments, which are not paid for personal services:

      (A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit.

      (B) If a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee. In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years.

      (iii) For members employed less than full time under written contract with a school district, or community college district, in an instructional position, for which the member receives service credit of less than one year in all of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, the member may elect to have earnable compensation defined as provided in RCW 41.32.345. For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent as a classroom instructor (including office hours), a librarian, or a counselor. Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit.

      (iv) "Earnable compensation" does not include:

      (A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;

      (B) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.

      (b) "Earnable compensation" for plan II members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.

      "Earnable compensation" for plan II members also includes the following actual or imputed payments which, except in the case of (b)(ii)(B) of this subsection, are not paid for personal services:

      (i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit.

      (ii) In any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of:

      (A) The earnable compensation the member would have received had such member not served in the legislature; or

      (B) Such member's actual earnable compensation received for teaching and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions.

      (11) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid.

      (12) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year.

      (13) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended.

      (14) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended.

      (15) "Member" means any teacher included in the membership of the retirement system. Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the member reserve.

      (16) "Membership service" means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system: PROVIDED, That where a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered. The provisions of this subsection shall apply only to plan I members.

      (17) "Pension" means the moneys payable per year during life from the pension reserve.

      (18) "Pension reserve" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid.

      (19) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable. The provisions of this subsection shall apply only to plan I members.

      (20) "Prior service contributions" means contributions made by a member to secure credit for prior service. The provisions of this subsection shall apply only to plan I members.

      (21) "Public school" means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof employing teachers, except the University of Washington and Washington State University.

      (22) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the member reserve. This subsection shall apply only to plan I members.

      (23) "Regular interest" means such rate as the director may determine.

      (24)(a) "Retirement allowance" for plan I members, means monthly payments based on the sum of annuity and pension, or any optional benefits payable in lieu thereof.

      (b) "Retirement allowance" for plan II members, means monthly payments to a retiree or beneficiary as provided in this chapter.

      (25) "Retirement system" means the Washington state teachers' retirement system.

      (26)(a) "Service" for plan I members means the time during which a member has been employed by an employer for compensation.

      (i) If a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered.

      (ii) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470.

      (iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.

      (b) "Service" for plan II members, means periods of employment by a member for one or more employers for which earnable compensation is earned subject to the following conditions:

      (i) A member employed in an eligible position or as a substitute shall receive one service credit month for each month of September through August of the following year if he or she earns earnable compensation for eight hundred ten or more hours during that period and is employed during nine of those months, except that a member may not receive credit for any period prior to the member's employment in an eligible position except as provided in RCW 41.32.812 and 41.50.132;

      (ii) If a member is employed either in an eligible position or as a substitute teacher for nine months of the twelve month period between September through August of the following year but earns earnable compensation for less than eight hundred ten hours but for at least six hundred thirty hours, he or she will receive one-half of a service credit month for each month of the twelve month period;

      (iii) All other members in an eligible position or as a substitute teacher shall receive service credit as follows:

      (A) A service credit month is earned in those calendar months where earnable compensation is earned for ninety or more hours;

      (B) A half-service credit month is earned in those calendar months where earnable compensation is earned for at least seventy hours but less than ninety hours; and

      (C) A quarter-service credit month is earned in those calendar months where earnable compensation is earned for less than seventy hours.

      (iv) Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive a service credit month for each of the months in a state elective position by making the required member contributions.

      (v) When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered.

      (vi) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470. For purposes of plan II "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

      (A) Less than eleven days equals one-quarter service credit month;

      (B) Eleven or more days but less than twenty-two days equals one-half service credit month;

      (C) Twenty-two days equals one service credit month;

      (D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;

      (E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

      (vii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.

      (viii) The department shall adopt rules implementing this subsection.

      (27) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

      (28) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one.

      (29) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature.

      (30) "Average final compensation" for plan II members, means the member's average earnable compensation of the highest consecutive sixty service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.32.810(2).

      (31) "Retiree" means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member. A person is in receipt of a retirement allowance as defined in subsection (24) of this section or other benefit as provided by this chapter when the department mails, causes to be mailed, or otherwise transmits the retirement allowance warrant.

      (32) "Department" means the department of retirement systems created in chapter 41.50 RCW.

      (33) "Director" means the director of the department.

      (34) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

      (35) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

      (36) "Substitute teacher" means:

      (a) A teacher who is hired by an employer to work as a temporary teacher, except for teachers who are annual contract employees of an employer and are guaranteed a minimum number of hours; or

      (b) Teachers who either (i) work in ineligible positions for more than one employer or (ii) work in an ineligible position or positions together with an eligible position.

      (37)(a) "Eligible position" for plan II members from June 7, 1990, through September 1, 1991, means a position which normally requires two or more uninterrupted months of creditable service during September through August of the following year.

      (b) "Eligible position" for plan II on and after September 1, 1991, means a position that, as defined by the employer, normally requires five or more months of at least seventy hours of earnable compensation during September through August of the following year.

      (c) For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position.

      (d) The elected position of the superintendent of public instruction is an eligible position.

      (38) "Plan I" means the teachers' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

      (39) "Plan II" means the teachers' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

      (40) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items compiled by the bureau of labor statistics, United States department of labor.

      (41) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

      (42) "Index B" means the index for the year prior to index A.

      (43) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.

      (44) "Adjustment ratio" means the value of index A divided by index B.

      (45) "Annual increase" means, initially, fifty-nine cents per month per year of service which amount shall be increased each July 1st by three percent, rounded to the nearest cent.

      Sec. 10. RCW 41.40.010 and 1994 c 298 s 2, 1994 c 247 s 5, 1994 c 197 s 23, and 1994 c 177 s 8 are each reenacted and amended to read as follows:

      As used in this chapter, unless a different meaning is plainly required by the context:

      (1) "Retirement system" means the public employees' retirement system provided for in this chapter.

      (2) "Department" means the department of retirement systems created in chapter 41.50 RCW.

      (3) "State treasurer" means the treasurer of the state of Washington.

      (4)(a) "Employer" for plan I members, means every branch, department, agency, commission, board, and office of the state, any political subdivision or association of political subdivisions of the state admitted into the retirement system, and legal entities authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and the term shall also include any labor guild, association, or organization the membership of a local lodge or division of which is comprised of at least forty percent employees of an employer (other than such labor guild, association, or organization) within this chapter. The term may also include any city of the first class that has its own retirement system.

      (b) "Employer" for plan II members, means every branch, department, agency, commission, board, and office of the state, and any political subdivision and municipal corporation of the state admitted into the retirement system, including public agencies created pursuant to RCW 35.63.070, 36.70.060, and 39.34.030.

      (5) "Member" means any employee included in the membership of the retirement system, as provided for in RCW 41.40.023. RCW 41.26.045 does not prohibit a person otherwise eligible for membership in the retirement system from establishing such membership effective when he or she first entered an eligible position.

      (6) "Original member" of this retirement system means:

      (a) Any person who became a member of the system prior to April 1, 1949;

      (b) Any person who becomes a member through the admission of an employer into the retirement system on and after April 1, 1949, and prior to April 1, 1951;

      (c) Any person who first becomes a member by securing employment with an employer prior to April 1, 1951, provided the member has rendered at least one or more years of service to any employer prior to October 1, 1947;

      (d) Any person who first becomes a member through the admission of an employer into the retirement system on or after April 1, 1951, provided, such person has been in the regular employ of the employer for at least six months of the twelve-month period preceding the said admission date;

      (e) Any member who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement becomes entitled to be credited with ten years or more of membership service except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member;

      (f) Any member who has been a contributor under the system for two or more years and who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement has rendered five or more years of service for the state or any political subdivision prior to the time of the admission of the employer into the system; except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member.

      (7) "New member" means a person who becomes a member on or after April 1, 1949, except as otherwise provided in this section.

      (8)(a) "Compensation earnable" for plan I members, means salaries or wages earned during a payroll period for personal services and where the compensation is not all paid in money, maintenance compensation shall be included upon the basis of the schedules established by the member's employer. Compensation that a member receives for being in standby status is also compensation earnable, subject to the conditions of this subsection. A member is in standby status when not being paid for time actually worked and only when both of the following conditions exist: (i) The member is required to be present at, or in the immediate vicinity of, a specified location; and (ii) the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise. Standby compensation is regular salary for the purposes of RCW 41.50.150(2).

      (A) "Compensation earnable" for plan I members also includes the following actual or imputed payments, which are not paid for personal services:

      (I) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable and the individual shall receive the equivalent service credit;

      (II) If a leave of absence is taken by an individual for the purpose of serving in the state legislature, the salary which would have been received for the position from which the leave of absence was taken, shall be considered as compensation earnable if the employee's contribution is paid by the employee and the employer's contribution is paid by the employer or employee.

      (III) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and 72.09.240;

      (IV) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038; and

      (V) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670.

      (B) "Compensation earnable" does not include:

      (I) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;

      (II) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.

      (b) "Compensation earnable" for plan II members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude nonmoney maintenance compensation and lump sum or other payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay. Compensation that a member receives for being in standby status is also compensation earnable, subject to the conditions of this subsection. A member is in standby status when not being paid for time actually worked and only when both of the following conditions exist: (i) The member is required to be present at, or in the immediate vicinity of, a specified location; and (ii) the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise. Standby compensation is regular salary for the purposes of RCW 41.50.150(2).

      "Compensation earnable" for plan II members also includes the following actual or imputed payments, which are not paid for personal services:

      (A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable to the extent provided above, and the individual shall receive the equivalent service credit;

      (B) In any year in which a member serves in the legislature, the member shall have the option of having such member's compensation earnable be the greater of:

      (I) The compensation earnable the member would have received had such member not served in the legislature; or

      (II) Such member's actual compensation earnable received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(B)(II) of this subsection is greater than compensation earnable under (b)(ii)(B)(I) of this subsection shall be paid by the member for both member and employer contributions;

      (C) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and 72.09.240;

      (D) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038; and

      (E) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670.

      (9)(a) "Service" for plan I members, except as provided in RCW 41.40.088, means periods of employment in an eligible position or positions for one or more employers rendered to any employer for which compensation is paid, and includes time spent in office as an elected or appointed official of an employer. Compensation earnable earned in full time work for seventy hours or more in any given calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service except as provided in RCW 41.40.088. Only service credit months and one-quarter service credit months shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter. Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits. Time spent in standby status, whether compensated or not, is not service.

      (i) Service by a state employee officially assigned by the state on a temporary basis to assist another public agency, shall be considered as service as a state employee: PROVIDED, That service to any other public agency shall not be considered service as a state employee if such service has been used to establish benefits in any other public retirement system.

      (ii) An individual shall receive no more than a total of twelve service credit months of service during any calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for seventy or more hours is rendered.

      (iii) A school district employee may count up to forty-five days of sick leave as creditable service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan I "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

      (A) Less than twenty-two days equals one-quarter service credit month;

      (B) Twenty-two days equals one service credit month;

      (C) More than twenty-two days but less than forty-five days equals one and one-quarter service credit month.

      (b) "Service" for plan II members, means periods of employment by a member in an eligible position or positions for one or more employers for which compensation earnable is paid. Compensation earnable earned for ninety or more hours in any calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for at least seventy hours but less than ninety hours in any calendar month shall constitute one-half service credit month of service. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service. Time spent in standby status, whether compensated or not, is not service.

      Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits.

      (i) Service in any state elective position shall be deemed to be full time service, except that persons serving in state elective positions who are members of the teachers' retirement system or law enforcement officers' and fire fighters' retirement system at the time of election or appointment to such position may elect to continue membership in the teachers' retirement system or law enforcement officers' and fire fighters' retirement system.

      (ii) A member shall receive a total of not more than twelve service credit months of service for such calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for ninety or more hours is rendered.

      (iii) Up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan II "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

      (A) Less than eleven days equals one-quarter service credit month;

      (B) Eleven or more days but less than twenty-two days equals one-half service credit month;

      (C) Twenty-two days equals one service credit month;

      (D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;

      (E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

      (10) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

      (11) "Service credit month" means a month or an accumulation of months of service credit which is equal to one.

      (12) "Prior service" means all service of an original member rendered to any employer prior to October 1, 1947.

      (13) "Membership service" means:

      (a) All service rendered, as a member, after October 1, 1947;

      (b) All service after October 1, 1947, to any employer prior to the time of its admission into the retirement system: PROVIDED, That an amount equal to the employer and employee contributions which would have been paid to the retirement system on account of such service shall have been paid to the retirement system with interest (as computed by the department) on the employee's portion prior to retirement of such person, by the employee or his or her employer, except as qualified by RCW 41.40.023: PROVIDED FURTHER, That employer contributions plus employee contributions with interest submitted by the employee under this subsection shall be placed in the employee's individual account in the employees' savings fund and be treated as any other contribution made by the employee, with the exception that the contributions submitted by the employee in payment of the employer's obligation, together with the interest the director may apply to the employer's contribution, shall be excluded from the calculation of the member's annuity in the event the member selects a benefit with an annuity option;

      (c) Service not to exceed six consecutive months of probationary service rendered after April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of the total amount of the employer's contribution to the retirement fund which would have been required under the law in effect when such probationary service was rendered if the member had been a member during such period, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member;

      (d) Service not to exceed six consecutive months of probationary service, rendered after October 1, 1947, and before April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of five percent of such member's salary during said period of probationary service, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member.

      (14)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance, pension or other benefit provided by this chapter.

      (b) "Beneficiary" for plan II members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

      (15) "Regular interest" means such rate as the director may determine.

      (16) "Accumulated contributions" means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

      (17)(a) "Average final compensation" for plan I members, means the annual average of the greatest compensation earnable by a member during any consecutive two year period of service credit months for which service credit is allowed; or if the member has less than two years of service credit months then the annual average compensation earnable during the total years of service for which service credit is allowed.

      (b) "Average final compensation" for plan II members, means the member's average compensation earnable of the highest consecutive sixty months of service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.40.710(2).

      (18) "Final compensation" means the annual rate of compensation earnable by a member at the time of termination of employment.

      (19) "Annuity" means payments for life derived from accumulated contributions of a member. All annuities shall be paid in monthly installments.

      (20) "Pension" means payments for life derived from contributions made by the employer. All pensions shall be paid in monthly installments.

      (21) "Retirement allowance" means the sum of the annuity and the pension.

      (22) "Employee" means any person who may become eligible for membership under this chapter, as set forth in RCW 41.40.023.

      (23) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality and other tables as may be adopted by the director.

      (24) "Retirement" means withdrawal from active service with a retirement allowance as provided by this chapter.

      (25) "Eligible position" means:

      (a) Any position that, as defined by the employer, normally requires five or more months of service a year for which regular compensation for at least seventy hours is earned by the occupant thereof. For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position;

      (b) Any position occupied by an elected official or person appointed directly by the governor for which compensation is paid.

      (26) "Ineligible position" means any position which does not conform with the requirements set forth in subsection (25) of this section.

      (27) "Leave of absence" means the period of time a member is authorized by the employer to be absent from service without being separated from membership.

      (28) "Totally incapacitated for duty" means total inability to perform the duties of a member's employment or office or any other work for which the member is qualified by training or experience.

      (29) "Retiree" means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member. A person is in receipt of a retirement allowance as defined in subsection (21) of this section or other benefit as provided by this chapter when the department mails, causes to be mailed, or otherwise transmits the retirement allowance warrant.

      (30) "Director" means the director of the department.

      (31) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

      (32) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

      (33) "Plan I" means the public employees' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

      (34) "Plan II" means the public employees' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

      (35) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

      (36) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

      (37) "Index B" means the index for the year prior to index A.

      (38) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.

      (39) "Adjustment ratio" means the value of index A divided by index B.

      (40) "Annual increase" means, initially, fifty-nine cents per month per year of service which amount shall be increased each July 1st by three percent, rounded to the nearest cent.

      NEW SECTION. Sec. 11. The following acts or parts of acts are each repealed:

      (1) RCW 41.32.487 and 1989 c 272 s 6 & 1987 c 455 s 3;

      (2) RCW 41.32.4871 and 1993 c 519 s 2;

      (3) RCW 41.32.499 and 1991 c 35 s 56, 1973 2nd ex.s. c 32 s 1, & 1973 1st ex.s. c 189 s 9;

      (4) RCW 41.32.575 and 1994 c 247 s 3 & 1989 c 272 s 3;

      (5) RCW 41.40.195 and 1991 c 35 s 79, 1973 2nd ex.s. c 14 s 1, 1973 1st ex.s. c 190 s 11, 1971 ex.s. c 271 s 6, & 1970 ex.s. c 68 s 1;

      (6) RCW 41.40.198 and 1989 c 272 s 8, 1987 c 455 s 2, 1986 c 306 s 3, & 1979 ex.s. c 96 s 1;

      (7) RCW 41.40.1981 and 1989 c 272 s 9 & 1987 c 455 s 4;

      (8) RCW 41.40.1983 and 1993 c 519 s 3; and

      (9) RCW 41.40.325 and 1994 c 247 s 6 & 1989 c 272 s 2.

      NEW SECTION. Sec. 12. RCW 41.32.488 is decodified.

      NEW SECTION. Sec. 13. The department of retirement systems may continue to pay cost-of-living adjustments consistent with the provisions of the statutes repealed by section 11 of this act, in lieu of the benefits provided by sections 2, 4, 5, and 8 of this act, if the department determines that: (1) A member earned service credit under chapter 41.40 or 41.32 RCW on or after May 8, 1989; and (2) a retiree would receive greater increases in the next ten years under the statutes repealed by section 11 of this act than under the provisions of sections 2, 4, 5, and 8 of this act; and (3) the retiree does not elect the benefits provided by this act over the benefits provided under the statutes repealed by section 11 of this act. The election must be made in a manner prescribed by the department.

      NEW SECTION. Sec. 14. 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 "purposes;" strike the remainder of the title and insert "reenacting and amending RCW 41.32.010 and 41.40.010; adding new sections to chapter 41.32 RCW; adding new sections to chapter 41.40 RCW; creating new sections; decodifying RCW 41.32.488; repealing RCW 41.32.487, 41.32.4871, 41.32.499, 41.32.575, 41.40.195, 41.40.198, 41.40.1981, 41.40.1983, and 41.40.325; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rinehart, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5119 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5365 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 18.130.020 and 1994 sp.s. c 9 s 602 are each amended to read as follows:

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

      (1) "Disciplining authority" means the agency, board, or commission having the authority to take disciplinary action against a holder of, or applicant for, a professional or business license upon a finding of a violation of this chapter or a chapter specified under RCW 18.130.040.

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

      (3) "Secretary" means the secretary of health or the secretary's designee.

      (4) "Board" means any of those boards specified in RCW 18.130.040.

      (5) "Commission" means any of the commissions specified in RCW 18.130.040.

      (6) "Unlicensed practice" means:

      (a) Practicing a profession or operating a business identified in RCW 18.130.040 without holding a valid, unexpired, unrevoked, and unsuspended license to do so; or

      (b) Representing to a consumer, through offerings, advertisements, or use of a professional title or designation, that the individual is qualified to practice a profession or operate a business identified in RCW 18.130.040, without holding a valid, unexpired, unrevoked, and unsuspended license to do so.

      (7) "Disciplinary action" means sanctions identified in RCW 18.130.160.

      (8) "Practice review" means an investigative audit of records related to the complaint, without prior identification of specific patient or consumer names, or an assessment of the conditions, circumstances, and methods of the professional's practice related to the complaint, to determine whether unprofessional conduct may have been committed.

      (9) "Health agency" means city and county health departments and the department of health.

      (10) "License," "licensing," and "licensure" shall be deemed equivalent to the terms "license," "licensing," "licensure," "certificate," "certification," and "registration" as those terms are defined in RCW 18.120.020.

      Sec. 2. RCW 18.130.040 and 1995 c 1 s 19 (Initiative Measure No. 607), 1994 sp.s. c 9 s 603, and 1994 c 17 s 19 are each reenacted and amended to read as follows:

      (1) This chapter applies only to the secretary and the boards and commissions having jurisdiction in relation to the professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.

      (2)(a) The secretary has authority under this chapter in relation to the following professions:

      (i) Dispensing opticians licensed under chapter 18.34 RCW;

      (ii) Naturopaths licensed under chapter 18.36A RCW;

      (iii) Midwives licensed under chapter 18.50 RCW;

      (iv) Ocularists licensed under chapter 18.55 RCW;

      (v) Massage operators and businesses licensed under chapter 18.108 RCW;

      (vi) Dental hygienists licensed under chapter 18.29 RCW;

      (vii) Acupuncturists certified under chapter 18.06 RCW;

      (viii) Radiologic technologists certified and x-ray technicians registered under chapter 18.84 RCW;

      (ix) Respiratory care practitioners certified under chapter 18.89 RCW;

      (x) Persons registered or certified under chapter 18.19 RCW;

      (xi) Persons registered as nursing pool operators under chapter 18.52C RCW;

      (xii) Nursing assistants registered or certified under chapter 18.79 RCW;

      (xiii) Health care assistants certified under chapter 18.135 RCW;

      (xiv) Dietitians and nutritionists certified under chapter 18.138 RCW;

      (xv) Sex offender treatment providers certified under chapter 18.155 RCW; ((and))

      (xvi) Persons licensed and certified under chapter 18.73 RCW or RCW 18.71.205; and

      (xvii) Denturists licensed under chapter 18.30 RCW.

      (b) The boards and commissions having authority under this chapter are as follows:

      (i) The podiatric medical board as established in chapter 18.22 RCW;

      (ii) The chiropractic quality assurance commission as established in chapter 18.25 RCW;

      (iii) The dental quality assurance commission as established in chapter 18.32 RCW;

      (iv) The board on fitting and dispensing of hearing aids as established in chapter 18.35 RCW;

      (v) The board of examiners for nursing home administrators as established in chapter 18.52 RCW;

      (vi) The optometry board as established in chapter 18.54 RCW governing licenses issued under chapter 18.53 RCW;

      (vii) The board of osteopathic medicine and surgery as established in chapter 18.57 RCW governing licenses issued under chapters 18.57 and 18.57A RCW;

      (viii) The board of pharmacy as established in chapter 18.64 RCW governing licenses issued under chapters 18.64 and 18.64A RCW;

      (ix) The medical quality assurance commission as established in chapter 18.71 RCW governing licenses and registrations issued under chapters 18.71 and 18.71A RCW;

      (x) The board of physical therapy as established in chapter 18.74 RCW;

      (xi) The board of occupational therapy practice as established in chapter 18.59 RCW;

      (xii) The nursing care quality assurance commission as established in chapter 18.79 RCW governing licenses issued under that chapter;

      (xiii) The examining board of psychology and its disciplinary committee as established in chapter 18.83 RCW; and

      (xiv) The veterinary board of governors as established in chapter 18.92 RCW((; and

      (xv) Denturists licensed under chapter 18.30 RCW)).

      (3) In addition to the authority to discipline license holders, the disciplining authority has the authority to grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered pursuant to RCW 18.130.160 by the disciplining authority.

      (4) All disciplining authorities shall adopt procedures to ensure substantially consistent application of this chapter, the uniform disciplinary act, among the disciplining authorities listed in subsection (2) of this section.

      NEW SECTION. Sec. 3. A new section is added to chapter 18.30 RCW to read as follows:

      The uniform disciplinary act, chapter 18.130 RCW, shall govern the issuance and denial of licenses, unauthorized practice, and the discipline of persons licensed under this chapter. The secretary shall be the disciplinary authority under this chapter.

      Sec. 4. RCW 18.130.050 and 1993 c 367 s 21 and 1993 c 367 s 5 are each reenacted and amended to read as follows:

      The disciplining authority has the following authority:

      (1) To adopt, amend, and rescind such rules as are deemed necessary to carry out this chapter;

      (2) To investigate all complaints or reports of unprofessional conduct as defined in this chapter and to hold hearings as provided in this chapter;

      (3) To issue subpoenas and administer oaths in connection with any investigation, hearing, or proceeding held under this chapter;

      (4) To take or cause depositions to be taken and use other discovery procedures as needed in any investigation, hearing, or proceeding held under this chapter;

      (5) To compel attendance of witnesses at hearings;

      (6) In the course of investigating a complaint or report of unprofessional conduct, to conduct practice reviews;

      (7) To take emergency action ordering summary suspension of a license, or restriction or limitation of the licensee's practice pending proceedings by the disciplining authority;

      (8) To use a presiding officer as authorized in RCW 18.130.095(3) or the office of administrative hearings as authorized in chapter 34.12 RCW to conduct hearings. ((However,)) The disciplining authority shall make the final decision regarding disposition of the license unless the disciplining authority elects to delegate in writing the final decision to the presiding officer;

      (9) To use individual members of the boards to direct investigations. However, the member of the board shall not subsequently participate in the hearing of the case;

      (10) To enter into contracts for professional services determined to be necessary for adequate enforcement of this chapter;

      (11) To contract with licensees or other persons or organizations to provide services necessary for the monitoring and supervision of licensees who are placed on probation, whose professional activities are restricted, or who are for any authorized purpose subject to monitoring by the disciplining authority;

      (12) To adopt standards of professional conduct or practice;

      (13) To grant or deny license applications, and in the event of a finding of unprofessional conduct by an applicant or license holder, to impose any sanction against a license applicant or license holder provided by this chapter;

      (14) To designate individuals authorized to sign subpoenas and statements of charges;

      (15) To establish panels consisting of three or more members of the board to perform any duty or authority within the board's jurisdiction under this chapter;

      (16) To review and audit the records of licensed health facilities' or services' quality assurance committee decisions in which a licensee's practice privilege or employment is terminated or restricted. Each health facility or service shall produce and make accessible to the disciplining authority the appropriate records and otherwise facilitate the review and audit. Information so gained shall not be subject to discovery or introduction into evidence in any civil action pursuant to RCW 70.41.200(3).

      Sec. 5. RCW 18.130.060 and 1991 c 3 s 269 are each amended to read as follows:

      In addition to the authority specified in RCW 18.130.050, the secretary has the following additional authority:

      (1) To employ such investigative, administrative, and clerical staff as necessary for the enforcement of this chapter;

      (2) Upon the request of a board, to appoint not more than three pro tem members for the purpose of participating as members of one or more committees of the board in connection with proceedings specifically identified in the request. Individuals so appointed must meet the same minimum qualifications as regular members of the board. While serving as board members pro tem, persons so appointed have all the powers, duties, and immunities, and are entitled to the emoluments, including travel expenses in accordance with RCW 43.03.050 and 43.03.060, of regular members of the board. The chairperson of a committee shall be a regular member of the board appointed by the board chairperson. Committees have authority to act as directed by the board with respect to all matters concerning the review, investigation, and adjudication of all complaints, allegations, charges, and matters subject to the jurisdiction of the board. The authority to act through committees does not restrict the authority of the board to act as a single body at any phase of proceedings within the board's jurisdiction. Board committees may make interim orders and issue final decisions with respect to matters and cases delegated to the committee by the board. Final decisions may be appealed as provided in chapter 34.05 RCW, the Administrative Procedure Act;

      (3) To establish fees to be paid for witnesses, expert witnesses, and consultants used in any investigation and to establish fees to witnesses in any agency adjudicative proceeding as authorized by RCW 34.05.446;

      (4) To conduct investigations and practice reviews at the direction of the disciplining authority and to issue subpoenas, administer oaths, and take depositions in the course of conducting those investigations and practice reviews at the direction of the disciplining authority;

      (5) To have the health professions regulatory program establish a system to recruit potential public members, to review the qualifications of such potential members, and to provide orientation to those public members appointed pursuant to law by the governor or the secretary to the boards and commissions specified in RCW 18.130.040(2)(b), and to the advisory committees and councils for professions specified in RCW 18.130.040(2)(a).

      Sec. 6. RCW 18.130.095 and 1993 c 367 s 2 are each amended to read as follows:

      (1) The secretary, in consultation with the disciplining authorities, shall develop uniform procedural rules to respond to public inquiries concerning complaints and their disposition, active investigations, statement of charges, findings of fact, and final orders involving a licensee, applicant, or unlicensed person. The uniform procedural rules adopted under this subsection apply to all adjudicative proceedings conducted under this chapter and shall include provisions for the establishing time ((lines)) periods for assessment, investigation, charging, discovery, settlement, and ((scheduling hearings)) adjudication of complaints, and shall include enforcement provisions for violations of the specific time periods by the department, the disciplining authority, and the respondent.

      (2) The uniform procedures for conducting investigations shall provide that prior to taking a written statement:

      (a) For violation of this chapter, the investigator shall inform such person, in writing of: (i) The nature of the complaint; (ii) that the person may consult with legal counsel at his or her expense prior to making a statement; and (iii) that any statement that the person makes may be used in an adjudicative proceeding conducted under this chapter; and

      (b) From a witness or potential witness in an investigation under this chapter, the investigator shall inform the person, in writing, that the statement may be released to the licensee, applicant, or unlicensed person under investigation if a statement of charges is issued.

      (3) Only upon the authorization of a ((disciplinary)) disciplining authority identified in RCW 18.130.040(2)(b), the secretary, or his or her designee, may serve as the presiding officer for any disciplinary proceedings of the ((disciplinary)) disciplining authority authorized under this chapter. Except as provided in RCW 18.130.050(8), the presiding officer shall not vote on or make any final decision. All functions performed by the presiding officer shall be subject to chapter 34.05 RCW. The secretary, in consultation with the ((disciplinary)) disciplining authorities, shall adopt procedures for implementing this subsection. ((This subsection shall not apply to the board of funeral directors and embalmers.))

      (4) The uniform procedural rules shall be adopted by all disciplining authorities listed in RCW 18.130.040(2), and shall be used for all adjudicative proceedings conducted under this chapter, as defined by chapter 34.05 RCW. The uniform procedural rules shall address the use of a presiding officer authorized in subsection (3) of this section to determine and issue decisions on all legal issues and motions arising during adjudicative proceedings.

      Sec. 7. RCW 18.130.098 and 1994 sp.s. c 9 s 604 are each amended to read as follows:

      (1) The settlement process must be substantially uniform for licensees governed by ((regulatory entities having authority)) disciplining authorities under this chapter. The disciplinary authorities may also use alternative dispute resolution to resolve complaints during adjudicative proceedings.

      (2) Disclosure of the identity of reviewing disciplining authority members who participate in the settlement process is available to the respondent((s)) or ((their legal)) his or her representative upon request.

      (3) The settlement conference will occur only if a settlement is not achieved through written documents. The respondent((s)) will have the opportunity to conference either by phone or in person with the reviewing disciplining authority member if the respondent chooses. The respondent((s)) may also have ((their)) his or her attorney conference either by phone or in person with the reviewing disciplining authority member without the respondent being present personally.

      (4) If the respondent wants to meet in person with the reviewing disciplining authority member, he or she will travel to the reviewing ((disciplinary)) disciplining authority member and have such a conference with ((the attorney general)) a department representative in attendance either by phone or in person.

      Sec. 8. RCW 18.130.170 and 1987 c 150 s 6 are each amended to read as follows:

      (1) If the disciplining authority believes a license holder or applicant may be unable to practice with reasonable skill and safety to consumers by reason of any mental or physical condition, a statement of charges in the name of the disciplining authority shall be served on the license holder or applicant and notice shall also be issued providing an opportunity for a hearing. The hearing shall be limited to the sole issue of the capacity of the license holder or applicant to practice with reasonable skill and safety. If the disciplining authority determines that the license holder or applicant is unable to practice with reasonable skill and safety for one of the reasons stated in this subsection, the disciplining authority shall impose such sanctions under RCW 18.130.160 as is deemed necessary to protect the public.

      (2)(a) In investigating or adjudicating a complaint or report that a license holder or applicant may be unable to practice with reasonable skill or safety by reason of any mental or physical condition, the disciplining authority may require a license holder or applicant to submit to a mental or physical examination by one or more licensed or certified health professionals designated by the disciplining authority. The license holder or applicant shall be provided written notice of the disciplining authority's intent to order a mental or physical examination, which notice shall include: (i) A statement of the specific conduct, event, or circumstances justifying an examination; (ii) a summary of the evidence supporting the disciplining authority's concern that the license holder or applicant may be unable to practice with reasonable skill and safety by reason of a mental or physical condition, and the grounds for believing such evidence to be credible and reliable; (iii) a statement of the nature, purpose, scope, and content of the intended examination; (iv) a statement that the license holder or applicant has the right to respond in writing within twenty days to challenge the disciplining authority's grounds for ordering an examination or to challenge the manner or form of the examination; and (v) a statement that if the license holder or applicant timely responds to the notice of intent, then the license holder or applicant will not be required to submit to the examination while the response is under consideration.

      (b) Upon submission of a timely response to the notice of intent to order a mental or physical examination, the license holder or applicant shall have an opportunity to respond to or refute such an order by submission of evidence or written argument or both. The evidence and written argument supporting and opposing the mental or physical examination shall be reviewed by either a panel of the disciplining authority members who have not been involved with the allegations against the license holder or applicant or a neutral decision maker approved by the disciplining authority. The reviewing panel of the disciplining authority or the approved neutral decision maker may, in its discretion, ask for oral argument from the parties. The reviewing panel of the disciplining authority or the approved neutral decision maker shall prepare a written decision as to whether: There is reasonable cause to believe that the license holder or applicant may be unable to practice with reasonable skill and safety by reason of a mental or physical condition, or the manner or form of the mental or physical examination is appropriate, or both.

      (c) Upon receipt by the disciplining authority of the written decision, or upon the failure of the license holder or applicant to timely respond to the notice of intent, the disciplining authority may issue an order requiring the license holder or applicant to undergo a mental or physical examination. All such mental or physical examinations shall be narrowly tailored to address only the alleged mental or physical condition and the ability of the license holder or applicant to practice with reasonable skill and safety. An order of the disciplining authority requiring the license holder or applicant to undergo a mental or physical examination is not a final order for purposes of appeal. The cost of the examinations ordered by the disciplining authority shall be paid out of the health professions account. In addition to any examinations ordered by the disciplining authority, the licensee may submit physical or mental examination reports from licensed or certified health professionals of the license holder's or applicant's choosing and expense. ((Failure of a license holder or applicant to submit to examination when directed constitutes grounds for immediate suspension or denial of the license, consequent upon which a default and final order may be entered without the taking of testimony or presentations of evidence, unless the failure was due to circumstances beyond the person's control.))

      (d) If the disciplining authority finds that a license holder or applicant has failed to submit to a properly ordered mental or physical examination, then the disciplining authority may order appropriate action or discipline under RCW 18.130.180(9), unless the failure was due to circumstances beyond the person's control. However, no such action or discipline may be imposed unless the license holder or applicant has had the notice and opportunity to challenge the disciplining authority's grounds for ordering the examination, to challenge the manner and form, to assert any other defenses, and to have such challenges or defenses considered by either a panel of the disciplining authority members who have not been involved with the allegations against the license holder or applicant or a neutral decision maker approved by the disciplining authority, as previously set forth in this section. Further, the action or discipline ordered by the disciplining authority shall not be more severe than a suspension of the license, certification, registration or application until such time as the license holder or applicant complies with the properly ordered mental or physical examination.

      (e) Nothing in this section shall restrict the power of a disciplining authority to act in an emergency under RCW 34.05.422(4), 34.05.479, and 18.130.050(7).

      (f) A determination by a court of competent jurisdiction that a license holder or applicant is mentally incompetent or mentally ill is presumptive evidence of the license holder's or applicant's inability to practice with reasonable skill and safety. An individual affected under this section shall at reasonable intervals be afforded an opportunity, at his or her expense, to demonstrate that the individual can resume competent practice with reasonable skill and safety to the consumer.

      (3) For the purpose of subsection (2) of this section, an applicant or license holder governed by this chapter, by making application, practicing, or filing a license renewal, is deemed to have given consent to submit to a mental, physical, or psychological examination when directed in writing by the disciplining authority and further to have waived all objections to the admissibility or use of the examining health professional's testimony or examination reports by the disciplining authority on the ground that the testimony or reports constitute privileged communications.

      Sec. 9. RCW 18.130.180 and 1993 c 367 s 22 are each amended to read as follows:

      The following conduct, acts, or conditions constitute unprofessional conduct for any license holder or applicant under the jurisdiction of this chapter:

      (1) The commission of any act involving moral turpitude, dishonesty, or corruption relating to the practice of the person's profession, whether the act constitutes a crime or not. If the act constitutes a crime, conviction in a criminal proceeding is not a condition precedent to disciplinary action. Upon such a conviction, however, the judgment and sentence is conclusive evidence at the ensuing disciplinary hearing of the guilt of the license holder or applicant of the crime described in the indictment or information, and of the person's violation of the statute on which it is based. For the purposes of this section, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for the conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;

      (2) Misrepresentation or concealment of a material fact in obtaining a license or in reinstatement thereof;

      (3) All advertising which is false, fraudulent, or misleading;

      (4) Incompetence, negligence, or malpractice which results in injury to a patient or which creates an unreasonable risk that a patient may be harmed. The use of a nontraditional treatment by itself shall not constitute unprofessional conduct, provided that it does not result in injury to a patient or create an unreasonable risk that a patient may be harmed;

      (5) Suspension, revocation, or restriction of the individual's license to practice ((the)) any health care profession by competent authority in any state, federal, or foreign jurisdiction, a certified copy of the order, stipulation, or agreement being conclusive evidence of the revocation, suspension, or restriction;

      (6) The possession, use, prescription for use, or distribution of controlled substances or legend drugs in any way other than for legitimate or therapeutic purposes, diversion of controlled substances or legend drugs, the violation of any drug law, or prescribing controlled substances for oneself;

      (7) Violation of any state or federal statute or administrative rule regulating the profession in question, including any statute or rule defining or establishing standards of patient care or professional conduct or practice;

      (8) Failure to cooperate with the disciplining authority by:

      (a) Not furnishing any papers or documents;

      (b) Not furnishing in writing a full and complete explanation covering the matter contained in the complaint filed with the disciplining authority; ((or))

      (c) Not responding to subpoenas issued by the disciplining authority, whether or not the recipient of the subpoena is the accused in the proceeding; or

      (d) Not providing reasonable and timely access for authorized representatives of the disciplining authority seeking to perform practice reviews at facilities utilized by the license holder;

      (9) Failure to comply with an order issued by the ((disciplinary)) disciplining authority or a stipulation for informal disposition entered into with the ((disciplinary)) disciplining authority;

      (10) Aiding or abetting an unlicensed person to practice when a license is required;

      (11) Violations of rules established by any health agency;

      (12) Practice beyond the scope of practice as defined by law or rule;

      (13) Misrepresentation or fraud in any aspect of the conduct of the business or profession;

      (14) Failure to adequately supervise auxiliary staff to the extent that the consumer's health or safety is at risk;

      (15) Engaging in a profession involving contact with the public while suffering from a contagious or infectious disease involving serious risk to public health;

      (16) Promotion for personal gain of any unnecessary or inefficacious drug, device, treatment, procedure, or service;

      (17) Conviction of any gross misdemeanor or felony relating to the practice of the person's profession. For the purposes of this subsection, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;

      (18) The procuring, or aiding or abetting in procuring, a criminal abortion;

      (19) The offering, undertaking, or agreeing to cure or treat disease by a secret method, procedure, treatment, or medicine, or the treating, operating, or prescribing for any health condition by a method, means, or procedure which the licensee refuses to divulge upon demand of the disciplining authority;

      (20) The willful betrayal of a practitioner-patient privilege as recognized by law;

      (21) Violation of chapter 19.68 RCW;

      (22) Interference with an investigation or disciplinary proceeding by willful misrepresentation of facts before the disciplining authority or its authorized representative, or by the use of threats or harassment against any patient or witness to prevent them from providing evidence in a disciplinary proceeding or any other legal action, or by the use of financial inducements to any patient or witness to prevent or attempt to prevent him or her from providing evidence in a disciplinary proceeding;

      (23) Current misuse of:

      (a) Alcohol;

      (b) Controlled substances; or

      (c) Legend drugs;

      (24) Abuse of a client or patient or sexual contact with a client or patient;

      (25) Acceptance of more than a nominal gratuity, hospitality, or subsidy offered by a representative or vendor of medical or health-related products or services intended for patients, in contemplation of a sale or for use in research publishable in professional journals, where a conflict of interest is presented, as defined by rules of the disciplining authority, in consultation with the department, based on recognized professional ethical standards;

      (26) Violation of standards of ethics in contracting established under section 11 of this act.

      NEW SECTION. Sec. 10. The secretary of health shall coordinate and assist the regulatory boards and commissions of the health professions with prescriptive authority in the development of uniform guidelines for addressing opiate therapy for acute pain, and chronic pain associated with cancer and other terminal diseases, or other chronic or intractable pain conditions. The purpose of the guidelines is to assure the provision of effective medical treatment in accordance with recognized national standards and consistent with requirements of the public health and safety.

      NEW SECTION. Sec. 11. A new section is added to chapter 18.130 RCW to read as follows:

      (1) Any quality assurance commission, professional regulatory board, or committee subject to RCW 18.130.040, or health professional association, or any other person, may recommend to the secretary the adoption of rules providing for standards of ethical conduct with respect to the terms and conditions of a contract or agreement between a practitioner subject to RCW 18.130.040 and a payer of health services, including but not limited to a carrier regulated under Title 48 RCW. Recommendations shall be considered by the secretary only if the proposed rule would foster strict compliance with standards of patient care, professional conduct, and scopes of practice; would promote quality medical and health practice; or would protect the public health and safety.

      (2) The secretary is authorized to adopt rules, pursuant to chapter 34.05 RCW, based upon recommendations made in accordance with subsection (1) of this section. When practical and appropriate and with the approval of the appropriate commission, board, or committee, the secretary shall apply the rules to all practitioners subject to RCW 18.130.040 to promote consistent standards for contracting between such practitioners and payers of health services.

      NEW SECTION. Sec. 12. Sections 2 and 3 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."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Fairley, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5365 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5431 with the following amendment(s):

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

      "NEW SECTION. Sec. 3. A new section is added to chapter 43.70 RCW to read as follows:

      (1) To promote the public interest consistent with the purposes of chapter 492, Laws of 1993 as amended by chapter . . ., Laws of 1995 (this act), the department shall continue to require hospitals to submit hospital financial and patient discharge information, which shall be collected, maintained, analyzed, and disseminated by the department. The department may, if deemed cost-effective and efficient, contract with a private entity for any or all parts of data collection. Data elements shall be reported in conformance with a uniform reporting system established by the department. This includes data elements identifying each hospital's revenues, expenses, contractual allowances, charity care, bad debt, other income, total units of inpatient and outpatient services, and other financial information reasonably necessary to fulfill the purposes of chapter 492, Laws of 1993 as amended by chapter . . ., Laws of 1995 (this act). Data elements relating to use of hospital services by patients shall be the same as those currently compiled by hospitals through inpatient discharge abstracts. The department shall encourage and permit reporting by electronic transmission or hard copy as is practical and economical to reporters.

      (2) In identifying financial reporting requirements, the department may require both annual reports and condensed quarterly reports from hospitals, so as to achieve both accuracy and timeliness in reporting, but shall craft such requirements with due regard of the data reporting burdens of hospitals.

      (3) The health care data collected, maintained, and studied by the department shall only be available for retrieval in original or processed form to public and private requestors and shall be available within a reasonable period of time after the date of request. The cost of retrieving data for state officials and agencies shall be funded through the state general appropriation. The cost of retrieving data for individuals and organizations engaged in research or private use of data or studies shall be funded by a fee schedule developed by the department that reflects the direct cost of retrieving the data or study in the requested form.

      (4) All persons subject to chapter 492, Laws of 1993 shall comply with departmental requirements established by rule in the acquisition of data.

      NEW SECTION. Sec. 4. A new section is added to chapter 43.70 RCW to read as follows:

      HEALTH CARE QUALITY--FINDINGS AND INTENT. The legislature finds that it is difficult for consumers of health care services to determine the quality of health care in rural areas and other parts of the state prior to purchase or utilization of medical care. The legislature also finds that accountability is a key component in promoting quality assurance and quality improvement throughout the health care delivery system, including public programs. Quality assurance and improvement standards are necessary to promote the public interest, contribute to cost efficiencies, and improve the ability of consumers to ascertain quality health care purchases.

      The legislature intends to have consumers, health carriers, health care providers and facilities, and public agencies participate in the development of quality assurance and improvement standards that can be used to develop a uniform quality assurance program for use by all public and private health plans, providers, and facilities. To that end, in conducting the study required under section 3 of this act, the department of health shall:

      (1) Consider the needs of consumers, employers, health care providers and facilities, and public and private health plans;

      (2) Take full advantage of existing national standards of quality assurance to extend to middle-income populations the protections required for state management of health programs for low-income populations;

      (3) Consider the appropriate minimum level of quality assurance standards that should be disclosed to consumers and employers by health care providers and facilities, and public and private health plans; and

      (4) Consider standards that permit health care providers and facilities to share responsibility for participation in a uniform quality assurance program.

      NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

      UNIFORM QUALITY ASSURANCE. (1) The department of health shall study the feasibility of a uniform quality assurance and improvement program for use by all public and private health plans and health care providers and facilities in rural areas and other parts of the state. In this study, the department shall consult with:

      (a) Public and private purchasers of health care services;

      (b) Health carriers;

      (c) Health care providers and facilities; and

      (d) Consumers of health services.

      (2) In conducting the study, the department shall adopt standards that meet the needs of affected persons and organizations, whether public or private, without creation of differing levels of quality assurance. All consumers of health services should be afforded the same level of quality assurance.

      (3) At a minimum, the study shall include but not be limited to the following program components and indicators appropriate for consumer disclosure:

      (a) Health care provider training, credentialing, and licensure standards;

      (b) Health care facility credentialing and recredentialing;

      (c) Staff ratios in health care facilities;

      (d) Annual mortality and morbidity rates of cases based on a defined set of procedures performed or diagnoses treated in health care facilities, adjusted to fairly consider variable factors such as patient demographics and case severity;

      (e) The average total cost and average length of hospital stay for a defined set of procedures and diagnoses in health care facilities;

      (f) The total number of the defined set of procedures, by specialty, performed by each physician at a health care facility within the previous twelve months;

      (g) Utilization performance profiles by provider, both primary care and specialty care, that have been adjusted to fairly consider variable factors such as patient demographics and severity of case;

      (h) Health plan fiscal performance standards;

      (i) Health care provider and facility recordkeeping and reporting standards;

      (j) Health care utilization management that monitors trends in health service under-utilization, as well as over-utilization of services;

      (k) Health monitoring that is responsive to consumer and purchaser needs; and

      (l) Assessment of consumer satisfaction and disclosure of consumer survey results.

      (4) In conducting the study, the department shall develop standards that permit each health care facility, provider group, or health carrier to assume responsibility for and determine the physical method of collection, storage, and assimilation of quality indicators for consumer disclosure. The study may define the forms, frequency, and posting requirements for disclosure of information.

      (5) The department shall submit its final report and recommendations to the legislature by December 31, 1995.

      (6) The department shall not adopt any rule implementing the uniform quality assurance program or consumer disclosure provisions unless expressly directed to do so by an act of law.

      NEW SECTION. Sec. 6. A new section is added to chapter 43.70 RCW to read as follows:

      QUALITY ASSURANCE--INTERAGENCY COOPERATION--ELIMINATION AND COORDINATION OF DUPLICATE STATE PROGRAMS. No later than July 1, 1995, the department of health together with the health care authority, the department of social and health services, the office of the insurance commissioner, and the department of labor and industries shall form an interagency group for coordination and consultation on quality assurance activities and collaboration on final recommendations for the study required under section 3 of this act. By December 31, 1995, the group shall review all state agency programs governing health service quality assurance and shall recommend to the legislature, the consolidation, coordination, or elimination of rules and programs that would be made unnecessary pursuant to the development of a uniform quality assurance and improvement program."

      Renumber the remaining sections consecutively, correct internal references accordingly, and correct the title., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Quigley, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5431 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5607 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature seeks to achieve efficiency and effectiveness in state government in order to make the state of Washington the most effective and best-performing state government in the United States, measured in terms of quality of customer service, accountability for cost-effective services, and productivity. This act is an initial step toward this goal.

      NEW SECTION. Sec. 2. (1) The state auditor shall undertake comprehensive performance audits required under sections 3 through 5 of this act.

      (2) In addition to the criteria for performance audits set forth in RCW 43.88.160, the audits must include:

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

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

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

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

      (3) In addition to the criteria for performance audits set forth in subsection (2) of this section, the performance audit of programs, services, and activities operated by the superintendent of public instruction must also include the following:

      (a) Identification of which activities of the superintendent of public instruction are the result of legal mandates; which activities are the result of legislative or client requests; and which activities do not serve a useful purpose;

      (b) A determination of the fiscal savings that could be achieved by the state or by districts by eliminating the programs that are determined to serve no useful purpose; and

      (c) An examination of the efficiency with which the office of the superintendent of public instruction operates the programs under its jurisdiction and fulfills the duties assigned to it by law.

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

      (5) The office of the state auditor shall provide the staff necessary for the audits. The state auditor shall involve private-sector professional and technical experts in conducting the audits, and may contract with private-sector professionals and other experts for that purpose.

      (6) The state auditor shall solicit suggestions for improving government performance from both front-line public employees and government service recipients in the conduct of the audits. In conducting the audit of the office of the superintendent of public instruction, the auditor shall also solicit suggestions from legislators, the governor, school districts, educational service district employees, students, state-wide education and parent associations, and other appropriate interest groups. The state auditor shall establish a toll-free telephone number at which the public may make suggestions and report government waste, in order to aid the identification of both waste and innovation.

      (7) The state auditor shall present an audit work plan to the legislative budget committee within sixty days of the effective date of this act. The state auditor shall present the audit reports to the legislature, the governor, and citizens by one year from the effective date of this act, except that the audit report of the office of the superintendent of public instruction shall be presented by December 31, 1995.

      NEW SECTION. Sec. 3. Subject to the provisions of sections 2 and 6 of this act, the state auditor shall undertake a comprehensive performance audit of the rehabilitation and job support services provided by the department of social and health services.

      NEW SECTION. Sec. 4. Subject to the provisions of sections 2 and 6 of this act, the state auditor shall undertake a comprehensive performance audit of the programs, services, and activities operated by the superintendent of public instruction.

      NEW SECTION. Sec. 5. Subject to the provisions of sections 2 and 6 of this act, the state auditor shall undertake a comprehensive performance audit of the department of community, trade, and economic development.

      NEW SECTION. Sec. 6. If specific funding for the performance audit specified under section 3 of this act, referencing section 3 of this act by bill number, is not provided by June 30, 1995, in the omnibus appropriations act, section 3 of this act shall not be implemented and is null and void unless specific funding for the performance audit, referencing section 3 of this act, is provided by June 30, 1996, in the omnibus appropriations act for the second year of the biennium.

      If specific funding for the performance audit specified under section 4 of this act, referencing section 4 of this act by bill number, is not provided by June 30, 1995, in the omnibus appropriations act, section 4 of this act shall not be implemented and is null and void unless specific funding for the performance audit, referencing section 4 of this act, is provided by June 30, 1996, in the omnibus appropriations act for the second year of the biennium.

      If specific funding for the performance audit specified under section 5 of this act, referencing section 5 of this act by bill number, is not provided by June 30, 1995, in the omnibus appropriations act, section 5 of this act shall not be implemented and is null and void unless specific funding for the performance audit, referencing section 5 of this act, is provided by June 30, 1996, in the omnibus appropriations act for the second year of the biennium.

      Sec. 7. RCW 43.88.160 and 1994 c 184 s 11 are each amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (5) The treasurer shall:

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

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

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

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

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

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

      (6) The state auditor shall:

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

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

      (c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include determinations as to whether agencies, in making expenditures, complied with the laws of this state. The state auditor is authorized to perform or participate in performance ((verifications only as expressly authorized by the legislature in the omnibus biennial appropriations acts)) audits only as expressly authorized by the legislature. A performance audit for the purpose of this section is an audit that determines the following: Whether a government entity is acquiring, protecting, and using its resources economically and efficiently in accordance with all significant laws and rules; the causes of inefficiencies or uneconomical practices; the extent to which the desired outcomes or results intended by the legislature are being achieved; the causes for not achieving intended outcomes or results; and compliance with significant laws and rules applicable to the program. The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW ((or a performance verification)), may report to the legislative budget committee or other appropriate committees of the legislature, in a manner prescribed by the legislative budget committee, on facts relating to the management or performance of governmental programs where such facts are discovered incidental to the legal and financial audit ((or performance verification)). The auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. ((This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts.)) When the state auditor has completed a performance audit authorized by the legislature, the auditor shall transmit the audit to the state agency for its comments. The state agency shall provide any response to the state auditor within thirty days after receipt of the performance audit. The response of the state agency shall be incorporated into the final performance audit report. Before releasing the results of any performance audit to the legislature or general public, the state auditor shall submit the performance audit to the legislative budget committee and the performance partnership operating committee established in chapter 43.88B RCW for their recommendations and comments.

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

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

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

      (7) The legislative budget committee may:

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

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

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

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

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

      Sec. 8. RCW 43.88.090 and 1994 c 184 s 10 are each amended to read as follows:

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

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

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

      NEW SECTION. Sec. 9. A new section is added to chapter 43.88 RCW to read as follows:

      (1) All budget documents submitted by the governor to the legislature shall:

      (a) Identify the costs and the number of full-time equivalent employees associated with each discrete program, function, and activity of each state agency;

      (b) Identify administrative staffing levels and administrative costs associated with each discrete program, function, and activity of each state agency; and

      (c) Contain an estimate of the amount of funds or benefits that reach the intended recipients of the program or activity.

      (2) The requirements in this section shall apply both when the costs described in subsection (1) of this section are included in the budget base and when the costs are incremental changes to the base.

      NEW SECTION. Sec. 10. 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 "government;" strike the remainder of the title and insert "amending RCW 43.88.160 and 43.88.090; adding a new section to chapter 43.88 RCW; creating new sections; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rinehart, the Senate refuses to concur in the House amendments to Engrossed Substitute Senate Bill No. 5607 and requests of the House a conference thereon.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5739 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 82.04.365 and 1979 ex.s. c 196 s 7 are each amended to read as follows:

      BAZAARS, RUMMAGE SALES, MEALS, AND LIBRARY SALES--BUSINESS AND OCCUPATION TAX EXEMPTION. (1) This chapter does not apply to ((amounts derived)) the first thirty-five thousand dollars received in a calendar year by a nonprofit organization as a result of conducting or participating in a bazaar or rummage sale if:

      (a) The organization does not conduct or participate in more than ((two)) twelve bazaars or rummage sales per year; and

      (b) Each bazaar or rummage sale does not extend over a period of more than ((two)) five days((; and

      (c) The gross income received by each organization from each bazaar or rummage sale does not exceed one thousand dollars)).

      (2) This chapter does not apply to the first fifty thousand dollars received in a calendar year by a nonprofit organization as a result of meal-serving events for fund-raising purposes, if:

      (a) Each meal-serving event occurs no more than one day every two weeks; or

      (b) Each meal-serving event does not extend over a period of more than five days and is held no more frequently than three times per year.

      (3) This chapter does not apply to the first thirty-five thousand dollars received in a calendar year by a nonprofit organization from sales of used books, used videos, used sound recordings, or similar used information products, if substantially all of the net proceeds from the sales are used to support a library as defined in RCW 27.12.010.

      (4) For purposes of this section, "nonprofit organization" means an organization that meets all of the following criteria:

      (a) The members, stockholders, officers, directors, or trustees of the organization do not receive any part of the organization's gross income, except as payment for services rendered;

      (b) The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and

      (c) The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office.

      NEW SECTION. Sec. 2. A new section is added to chapter 82.08 RCW to read as follows:

      BAZAARS, RUMMAGE SALES, MEALS, AND LIBRARY SALES--SALES TAX EXEMPTION. The tax levied by RCW 82.08.020 does not apply to a sale made by a nonprofit organization if the gross income from the sale is exempt under RCW 82.04.365.

      Sec. 3. RCW 82.04.366 and 1991 c 51 s 1 are each amended to read as follows:

      AUCTIONS--BUSINESS AND OCCUPATION TAX EXEMPTION. (1) This chapter does not apply to amounts received by a public benefit nonprofit organization from sales at an auction that the organization conducts or participates in, if:

      (a) The organization does not conduct or participate in more than ((one)) two auctions per year; and

      (b) The auction does not extend over a period of more than ((two)) five days.

      (2) As used in this section, "public benefit nonprofit organization" means an organization exempt from tax under section 501(c)(3) of the federal internal revenue code, as in effect on January 1, 1991, or a subsequent date provided by the director by rule consistent with the purpose of this section.

      Sec. 4. RCW 82.08.02571 and 1991 c 51 s 2 are each amended to read as follows:

      AUCTIONS--SALES TAX EXEMPTION. (1) The tax levied by RCW 82.08.020 does not apply to sales made by a public benefit nonprofit organization at an auction that the organization conducts or participates in, if:

      (a) The organization does not conduct or participate in more than ((one)) two auctions per year; and

      (b) The auction does not extend over a period of more than ((two)) five days.

      (2) As used in this section, "public benefit nonprofit organization" means an organization exempt from tax under section 501(c)(3) of the federal internal revenue code, as in effect on January 1, 1991, or a subsequent date provided by the director by rule consistent with the purpose of this section.

      NEW SECTION. Sec. 5. CAPTIONS. Captions as used in this act constitute no part of the law.

      NEW SECTION. Sec. 6. EFFECTIVE DATE. 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."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rinehart, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5739 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 10, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5854 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to Title 48 RCW to read as follows:

      (1) Health carriers, including disability insurers regulated under chapter 48.20 or 48.21 RCW, health care service contractors as defined in RCW 48.44.010, health maintenance organizations as defined in RCW 48.46.020, and insuring entities regulated under chapter 48.43 RCW, as amended, shall ensure that enrolled female patients have access to timely and appropriate covered women's health services.

       (2) Consistent with scope of practice, providers of women's health services under this act shall include, but not be limited to, the following: Obstetrician/gynecologists and family practitioners licensed pursuant to chapters 18.57 and 18.71 RCW; physician assistants who specialize in women's health services licensed pursuant to chapters 18.57A and 18.71A RCW; and advanced registered nurse practitioner specialists in women's health and certified nurse midwives licensed pursuant to chapter 18.79 RCW.

      (3) Health carriers may underwrite separate or additional coverage permitting an enrollee to access a provider of the patient's choice for women's health services without referral from another health care provider."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Heavey moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5854 and requests of the House a conference thereon.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Heavey that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5854 and requests of the House a conference thereon.

      The motion by Senator Heavey carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5854 and requests of the House a conference thereon.


MESSAGE FROM THE HOUSE

April 11, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5162 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 28B.15.620 and 1994 c 208 s 1 are each amended to read as follows:

      (1) The legislature finds that military and naval veterans who have served their country in wars on foreign soil have risked their own lives to defend both the lives of all Americans and the freedoms that define and distinguish our nation. The legislature also finds that veterans of the Vietnam conflict suffered during and after the war as the country anguished over its involvement in the conflict. It is the intent of the legislature to honor Vietnam veterans for the public service they have provided to their country. It is the further intent of the legislature that, for eligible Vietnam veterans, colleges and universities waive tuition and fee increases that have occurred since October 1, 1977.

      (2) Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may exempt veterans of the Vietnam conflict who have served in the southeast Asia theater of operations from the payment of all or a portion of any increase in tuition and fees that occur after October 1, 1977, if the veteran qualifies as a resident student under RCW 28B.15.012((, was enrolled in state institutions of higher education on or before May 7, 1990, and meets the requirements of subsection (2) of this section.

      (2) Beginning with the fall academic term of 1994, veterans receiving the exemption under subsection (1) of this section must meet these additional requirements:

      (a) Remain continuously enrolled for seven or more quarter credits per academic term or their equivalent, except summer term and not including community service courses;

      (b) Have an adjusted gross family income as most recently reported to the internal revenue service that does not exceed Washington state's median family income as established by the federal bureau of the census; and

      (c) Have exhausted all entitlement to federal vocational or educational benefits conferred by virtue of their military service)). Institutions shall give priority in granting the waivers to any veteran defined under this section who could have qualified as a Washington resident student under RCW 28B.15.012(2) had he or she been enrolled as a student at the time he or she entered military or naval service. In addition, to receive a tuition and fees waiver under this subsection, the veteran must have an adjusted gross family income as most recently reported to the federal internal revenue service that is lower than Washington state's median family income as established by the federal bureau of the census.

      (3) For the purposes of this section, "veterans of the Vietnam conflict" shall be those persons who have been on active federal service as a member of the armed military or ((navel)) naval forces of the United States between a period commencing August 5, 1964, and ending on May 7, 1975.

      (4) This section shall expire June 30, ((1997)) 1999."

      On page 1, line 1 of the title, after "veterans;" strike the remainder of the title and insert "and amending RCW 28B.15.620.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Bauer, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5162 and asks the House to recede therefrom.


MOTIONS


      On motion of Senator Ann Anderson, Senators Prince and Wood were excused.

      On motion of Senator Loveland, Senator Smith was excused.

      On motion of Senator Johnson, Senator Schow was excused.


MESSAGE FROM THE HOUSE

April 11, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5326 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 9A.44.130 and 1994 c 84 s 2 are each amended to read as follows:

      (1) Any adult or juvenile residing in this state who has been found to have committed or has been convicted of any sex offense, or who has been found not guilty by reason of insanity under chapter 10.77 RCW of committing any sex offense, shall register with the county sheriff for the county of the person's residence.

      (2) The person shall provide the county sheriff with the following information when registering: (a) Name; (b) address; (c) date and place of birth; (d) place of employment; (e) crime for which convicted; (f) date and place of conviction; (g) aliases used; and (h) social security number.

      (3)(a) Sex offenders shall register within the following deadlines. For purposes of this section the term "conviction" refers to adult convictions and juvenile adjudications for sex offenses:

      (i) SEX OFFENDERS IN CUSTODY. Sex offenders who committed a sex offense on, before, or after February 28, 1990, and who, on or after July 28, 1991, are in custody, as a result of that offense, of the state department of corrections, the state department of social and health services, a local division of youth services, or a local jail or juvenile detention facility, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. The agency that has jurisdiction over the offender shall provide notice to the sex offender of the duty to register. Failure to register within twenty-four hours of release constitutes a violation of this section and is punishable as provided in subsection (7) of this section.

      (ii) SEX OFFENDERS NOT IN CUSTODY BUT UNDER STATE OR LOCAL JURISDICTION. Sex offenders, who, on July 28, 1991, are not in custody but are under the jurisdiction of the indeterminate sentence review board or under the department of correction's active supervision, as defined by the department of corrections, the state department of social and health services, or a local division of youth services, for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 28, 1991. A change in supervision status of a sex offender who was required to register under this subsection (3)(a)(ii) as of July 28, 1991, shall not relieve the offender of the duty to register or to reregister following a change in residence. The obligation to register shall only cease pursuant to RCW 9A.44.140.

      (iii) SEX OFFENDERS UNDER FEDERAL JURISDICTION. Sex offenders who, on or after July 23, 1995, as a result of that offense are in the custody of the United States bureau of prisons or other federal or military correctional agency for sex offenses committed before, on, or after February 28, 1990, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. Sex offenders who, on July 23, 1995, are not in custody but are under the jurisdiction of the United States bureau of prisons, United States courts, United States parole commission, or military parole board for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 23, 1995. A change in supervision status of a sex offender who was required to register under this subsection (3)(a)(iii) as of July 23, 1995, shall not relieve the offender of the duty to register or to reregister following a change in residence. The obligation to register shall only cease pursuant to RCW 9A.44.140.

      (iv) SEX OFFENDERS WHO ARE CONVICTED BUT NOT CONFINED. Sex offenders who are convicted of a sex offense on or after July 28, 1991, for a sex offense that was committed on or after February 28, 1990, but who are not sentenced to serve a term of confinement immediately upon sentencing, shall report to the county sheriff to register immediately upon completion of being sentenced.

      (((iv))) (v) SEX OFFENDERS WHO ARE NEW RESIDENTS OR RETURNING WASHINGTON RESIDENTS. Sex offenders who move to Washington state from another state or a foreign country that are not under the jurisdiction of the state department of corrections, the indeterminate sentence review board, or the state department of social and health services at the time of moving to Washington, must register within thirty days of establishing residence or reestablishing residence if the person is a former Washington resident. The duty to register under this subsection applies to sex offenders convicted under the laws of another state or a foreign country, federal or military statutes, or Washington state for offenses committed on or after February 28, 1990. Sex offenders from other states or a foreign country who, when they move to Washington, are under the jurisdiction of the department of corrections, the indeterminate sentence review board, or the department of social and health services must register within twenty-four hours of moving to Washington. The agency that has jurisdiction over the offender shall notify the offender of the registration requirements before the offender moves to Washington.

      (vi) SEX OFFENDERS FOUND NOT GUILTY BY REASON OF INSANITY. Any adult or juvenile who has been found not guilty by reason of insanity under chapter 10.77 RCW of committing a sex offense on, before, or after February 28, 1990, and who, on or after July 23, 1995, is in custody, as a result of that finding, of the state department of social and health services, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. The state department of social and health services shall provide notice to the adult or juvenile in its custody of the duty to register. Any adult or juvenile who has been found not guilty by reason of insanity of committing a sex offense on, before, or after February 28, 1990, but who was released prior to July 23, 1995, shall be required to register within twenty-four hours of receiving notice of this registration requirement. The state department of social and health services shall make reasonable attempts within available resources to notify offenders who were released prior to July 23, 1995. Failure to register within twenty-four hours of release, or of receiving notice, constitutes a violation of this section and is punishable as provided in subsection (7) of this section.

      (b) Failure to register within the time required under this section constitutes a per se violation of this section and is punishable as provided in subsection (7) of this section. The county sheriff shall not be required to determine whether the person is living within the county.

      (c) An arrest on charges of failure to register, service of an information, or a complaint for a violation of this section, or arraignment on charges for a violation of this section, constitutes actual notice of the duty to register. Any person charged with the crime of failure to register under this section who asserts as a defense the lack of notice of the duty to register shall register immediately following actual notice of the duty through arrest, service, or arraignment. Failure to register as required under this subsection (c) constitutes grounds for filing another charge of failing to register. Registering following arrest, service, or arraignment on charges shall not relieve the offender from criminal liability for failure to register prior to the filing of the original charge.

      (d) The deadlines for the duty to register under this section do not relieve any sex offender of the duty to register under this section as it existed prior to July 28, 1991.

      (4) If any person required to register pursuant to this section changes his or her residence address within the same county, the person must send written notice of the change of address to the county sheriff within ten days of ((establishing the new residence)) moving. If any person required to register pursuant to this section moves to a new county, the person must register with the county sheriff in the new county within ten days of ((establishing the new residence)) moving. The person must also send written notice within ten days of the change of address in the new county to the county sheriff with whom the person last registered. If any person required to register pursuant to this section moves out of Washington state, the person must also send written notice within ten days of moving to the new state or a foreign country to the county sheriff with whom the person last registered in Washington state.

      (5) The county sheriff shall obtain a photograph of the individual and shall obtain a copy of the individual's fingerprints.

      (6) "Sex offense" for the purpose of RCW 9A.44.130, 10.01.200, 43.43.540, 70.48.470, and 72.09.330 means any offense defined as a sex offense by RCW 9.94A.030.

      (7) A person who knowingly fails to register or who moves without notifying the county sheriff as required by this section is guilty of a class C felony if the crime for which the individual was convicted was a class A felony or a federal or out-of-state conviction for an offense that under the laws of this state would be a class A felony. If the crime was other than a class A felony or a federal or out-of-state conviction for an offense that under the laws of this state would be a class A felony, violation of this section is a gross misdemeanor.

      Sec. 2. RCW 9A.44.140 and 1991 c 274 s 3 are each amended to read as follows:

      (1) The duty to register under RCW 9A.44.130 shall end:

      (a) For a person convicted of a class A felony: Such person may only be relieved of the duty to register under subsection (((2))) (3) or (((3))) (4) of this section.

      (b) For a person convicted of a class B felony: Fifteen years after the last date of release from confinement, if any, (including full-time residential treatment) pursuant to the conviction, or entry of the judgment and sentence, if the person has spent fifteen consecutive years in the community without being convicted of any new offenses.

      (c) For a person convicted of a class C felony: Ten years after the last date of release from confinement, if any, (including full-time residential treatment) pursuant to the conviction, or entry of the judgment and sentence, if the person has spent ten consecutive years in the community without being convicted of any new offenses.

      (2) The provisions of subsection (1) of this section shall apply equally to a person who has been found not guilty by reason of insanity under chapter 10.77 RCW of a sex offense.

      (((2))) (3) Any person having a duty to register under RCW 9A.44.130 may petition the superior court to be relieved of that duty. The petition shall be made to the court in which the petitioner was convicted of the offense that subjects him or her to the duty to register, or, in the case of convictions in other states, a foreign country, or a federal or military court, to the court in Thurston county. The prosecuting attorney of the county shall be named and served as the respondent in any such petition. The court shall consider the nature of the registrable offense committed, and the criminal and relevant noncriminal behavior of the petitioner both before and after conviction, and may consider other factors. Except as provided in subsection (((3))) (4) of this section, the court may relieve the petitioner of the duty to register only if the petitioner shows, with clear and convincing evidence, that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330.

      (((3))) (4) An offender having a duty to register under RCW 9A.44.130 for a sex offense committed when the offender was a juvenile may petition the superior court to be relieved of that duty. The court shall consider the nature of the registrable offense committed, and the criminal and relevant noncriminal behavior of the petitioner both before and after adjudication, and may consider other factors. The court may relieve the petitioner of the duty to register for a sex offense that was committed while the petitioner was fifteen years of age or older only if the petitioner shows, with clear and convincing evidence, that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330. The court may relieve the petitioner of the duty to register for a sex offense that was committed while the petitioner was under the age of fifteen if the petitioner (a) has not been adjudicated of any additional sex offenses during the twenty-four months following the adjudication for the sex offense giving rise to the duty to register, and (b) the petitioner proves by a preponderance of the evidence that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330.

      (((4))) (5) Unless relieved of the duty to register pursuant to this section, a violation of RCW 9A.44.130 is an ongoing offense for purposes of the statute of limitations under RCW 9A.04.080.

      (((5))) (6) Nothing in RCW 9.94A.220 relating to discharge of an offender shall be construed as operating to relieve the offender of his or her duty to register pursuant to RCW 9A.44.130.

      NEW SECTION. Sec. 3. A new section is added to chapter 9A.44 RCW to read as follows:

      When a sex offender registers with the county sheriff pursuant to RCW 9A.44.130, the county sheriff shall make reasonable attempts to verify that the sex offender is residing at the registered address. Reasonable attempts at verifying an address shall include at a minimum sending certified mail, with return receipt requested, to the sex offender at the registered address, and if the return receipt is not signed by the sex offender, talking in person with the residents living at the address. The sheriff shall make reasonable attempts to locate any sex offender who cannot be located at the registered address."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Hargrove, the Senate concurred in the House amendment to Substitute Senate Bill No. 5326.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5326, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5326, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 0; Absent, 1; Excused, 11.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Palmer, Prentice, Quigley, Rasmussen, Rinehart, Roach, Sellar, Sheldon, Snyder, Spanel, Strannigan, Sutherland, Swecker, West and Wojahn - 37.

      Absent: Senator McCaslin - 1.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz, Prince, Schow, Smith, Winsley and Wood - 11.

      SUBSTITUTE SENATE BILL NO. 5326, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


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

      There being no objection, the Senate resumed consideration of House Concurrent Resolution No. 4408, which was introduced and held on the desk earlier today.


MOTION


      On motion of Senator Spanel, the rules were suspended and House Concurrent Resolution No. 4408 was advanced to second reading and read the second time.


MOTIONS


      On motion of Senator Gaspard, the following amendment by Senators Gaspard and McDonald was adopted:

      On page 1, line 7, after "5386" insert ", SSB 5103"

      On motion of Senator Spanel, the rules were suspended, House Concurrent Resolution No. 4408, as amended by the Senate, was advanced to third reading, the second reading considered the third and the concurrent resolution, as amended by the Senate, was placed

on final passage and adopted.

      HOUSE CONCURRENT RESOLUTION NO. 4408, as amended by the Senate, was adopted by voice vote.


MOTION


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

      The Senate was called to order at 1:42 p.m. by President Pritchard.

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


MESSAGE FROM THE HOUSE

April 19, 1995

MR. PRESIDENT:

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

      SUBSTITUTE HOUSE BILL NO. 1017,

      SECOND ENGROSSED HOUSE BILL NO. 1130,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1156,

      HOUSE BILL NO. 1176,

      HOUSE BILL NO. 1186,

      HOUSE BILL NO. 1193,

      SUBSTITUTE HOUSE BILL NO. 1195.

TIMOTHY A. MARTIN, Chief Clerk


MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5443 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 84.55 RCW to read as follows:

      A taxing district, other than the state, that collects regular levies shall hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and shall be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, shall hold the hearing. For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.

      If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter."

      On page 1, line 2 of the title, after "taxes;" strike the remainder of the title and insert "and adding a new section to chapter 84.55 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Haugen, the Senate concurred in the House amendments to Substitute Senate Bill No. 5443.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5443, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5443, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 44.

      Absent: Senator Fairley - 1.

      Excused: Senators Anderson, C., Hochstatter, Owen and Pelz - 4.

      SUBSTITUTE SENATE BILL NO. 5443, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

 

MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5610 with the following amendment(s):

      On page 1, after line 6, strike all material through "by law." on line 17, and insert the following:

      "If a court, during a judicial proceeding under this title relating to a parenting plan or child custody, finds by a preponderance of the evidence that a person has intentionally made a false allegation of child abuse or neglect or has induced another person to make a false allegation of child abuse or neglect during the judicial proceeding, the court may impose a monetary penalty not to exceed one thousand dollars against the person making or inducing another to make the accusation. The monetary penalty shall be awarded to the person against whom the false allegation is made. When the court imposes the monetary penalty, the court may also provide that reasonable attorneys' fees may be imposed if the person entitled to the monetary penalty incurs attorneys' fees to recover the penalty. The award may be enforced in the same manner as other civil judgments. A "person" means a witness, a party, or a party's attorney.

      The remedy provided by this section is in addition to any other remedy provided by law.

      This section shall not apply to unemancipated minors."

      On page 5, beginning on line 1, strike everything through "9A.20 RCW." on line 5, and insert the following:

      "A person is guilty of a class C felony punishable in accordance with chapter 9A.20 RCW if the person intentionally: (1) Makes a false accusation of child abuse or neglect during a judicial proceeding under this title relating to a parenting plan or child custody, or (2) induces another person to make a false allegation of child abuse or neglect during a judicial proceeding under this title relating to a parenting plan or child custody.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendments to Engrossed Senate Bill No. 5610.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5610, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5610, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Anderson, C., Hochstatter and Pelz - 3.

      ENGROSSED SENATE BILL NO. 5610, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 19, 1995

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1009,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1010,

      SUBSTITUTE HOUSE BILL NO. 1035,

      SUBSTITUTE HOUSE BILL NO. 1053,

      SECOND SUBSTITUTE HOUSE BILL NO. 1162,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206,

      HOUSE BILL NO. 1224,

      HOUSE BILL NO. 1249,

      HOUSE BILL NO. 1282,

      SUBSTITUTE HOUSE BILL NO. 1342,

      SUBSTITUTE HOUSE BILL NO. 1348,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1787,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2090, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1009,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1010,

      SUBSTITUTE HOUSE BILL NO. 1035,

      SUBSTITUTE HOUSE BILL NO. 1053,

      SECOND SUBSTITUTE HOUSE BILL NO. 1162,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206,

      HOUSE BILL NO. 1224,

      HOUSE BILL NO. 1249,

      HOUSE BILL NO. 1282,

      SUBSTITUTE HOUSE BILL NO. 1342,

      SUBSTITUTE HOUSE BILL NO. 1348,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1787,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2090.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5120 with the following amendment(s):

      On page 2, line 34, strike "41.26.550(2)" and insert "41.50.165(2)"

      On page 3, line 19, strike "41.26.550(2)" and insert "41.50.165(2)", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Loveland, the Senate concurred in the House amendments to Senate Bill No. 5120.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5120, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5120, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 45.

      Absent: Senator Deccio - 1.

      Excused: Senators Anderson, C., Hochstatter and Pelz - 3.

      SENATE BILL NO. 5120, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5421 with the following amendment(s):

      On page 4, line 5, after "persons" insert "or vulnerable adults"

      On page 4, line 34, after "RCW 43.43.830" insert "or his or her guardian", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Hargrove, the Senate concurred in the House amendments to Substitute Senate Bill No. 5421.

      The President declared the question before the Senate to be the roll call on the final passage of Substiute Senate Bill No. 5421, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5421, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Hochstatter - 2.

      SUBSTITUTE SENATE BILL NO. 5421, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Ann Anderson, Senator Moyer was excused.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5748 with the following amendment(s):

       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.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Prentice, the Senate concurred in the House amendment to Senate Bill No. 5748.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5748, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5748, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 45.

      Absent: Senator Gaspard - 1.

      Excused: Senators Anderson, C., Hochstatter and Moyer - 3.

      SENATE BILL NO. 5748, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5898 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 70.94.656 and 1991 sp.s. c 13 s 28 are each amended to read as follows:

      It is hereby declared to be the policy of this state that strong efforts should be made to minimize adverse effects on air quality from the open burning of field and turf grasses grown for seed. To such end this section is intended to promote the development of economical and practical alternate agricultural practices to such burning, and to provide for interim regulation of such burning until practical alternates are found.

      (1) The department shall approve of a study or studies for the exploration and identification of economical and practical alternate agricultural practices to the open burning of field and turf grasses grown for seed. Any study conducted pursuant to this section shall be conducted by Washington State University. The university may not charge more than eight percent for administrative overhead. Prior to the issuance of any permit for such burning under RCW 70.94.650, there shall be collected a fee not to exceed one dollar per acre of crop to be burned. Any such fees received by any authority shall be transferred to the department of ecology. The department of ecology shall deposit all such acreage fees in a special grass seed burning research account, hereby created, in the state treasury.

      (2) The department shall allocate moneys annually from this account for the support of any approved study or studies as provided for in ((this)) subsection (1) of this section. ((For the conduct of any such study or studies, the department may contract with public or private entities: PROVIDED, That)) Whenever the department of ecology shall conclude that sufficient reasonably available alternates to open burning have been developed, and at such time as all costs of any studies have been paid, the grass seed burning research account shall be dissolved, and any money remaining therein shall revert to the general fund. The fee collected under ((this)) subsection (1) of this section shall constitute the research portion of fees required under RCW 70.94.650 for open burning of grass grown for seed.

      (((2))) (3) Whenever on the basis of information available to it, the department after public hearings have been conducted wherein testimony will be received and considered from interested parties wishing to testify shall conclude that any procedure, program, technique, or device constitutes a practical alternate agricultural practice to the open burning of field or turf grasses grown for seed, the department shall, by order, certify approval of such alternate. Thereafter, in any case which any such approved alternate is reasonably available, the open burning of field and turf grasses grown for seed shall be disallowed and no permit shall issue therefor.

      (((3))) (4) Until approved alternates become available, the department or the authority may limit the number of acres on a pro rata basis among those affected for which permits to burn will be issued in order to effectively control emissions from this source.

      (((4))) (5) Permits issued for burning of field and turf grasses may be conditioned to minimize emissions insofar as practical, including denial of permission to burn during periods of adverse meteorological conditions.

      (6) By November 1, 1996, and every two years thereafter until grass seed burning is prohibited, Washington State University shall submit to the appropriate standing committees of the legislature a brief report assessing the potential of the university's research to result in economical and practical alternatives to grass seed burning.

      Sec. 2. RCW 70.94.120 and 1969 ex.s. c 168 s 14 are each amended to read as follows:

      (1) The city selection committee of each county which is included within an authority shall meet within one month after the activation of such authority for the purpose of making its initial appointments to the board of such authority and thereafter whenever necessary for the purpose of making succeeding appointments. All meetings shall be held upon at least two weeks written notice given by the county auditor to each member of the city selection committee of each county and he shall give such notice upon request of any member of such committee. A similar notice shall be given to the general public by a publication of such notice in a newspaper of general circulation in such authority. The county auditor shall act as recording officer, maintain its records and give appropriate notice of its proceedings and actions.

      (2) As an alternative to meeting in accordance with subsection (1) of this section, the county auditor may mail ballots by certified mail to the members of the city selection committee, specifying a date by which to complete the ballot, and a date by which to return the completed ballot. Each mayor who chooses to participate in the balloting shall write in the choice for appointment, sign the ballot, and return the ballot to the county auditor. Each completed ballot shall be date-stamped upon receipt by the mayor or staff of the mayor of the city or town. The timely return of completed ballots by a majority of the members of each city selection committee constitutes a quorum and the common choice by a majority of the quorum constitutes a valid appointment.

      (3) Balloting shall be preceded by at least two weeks' written notice, given by the county auditor to each member of the city selection committee. A similar notice shall be given to the general public by publication in a newspaper of general circulation in the authority.

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

      On page 1, line 1 of the title, after "seed;" strike the remainder of the title and insert "amending RCW 70.94.656 and 70.94.120; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Fraser, the Senate concurred in the House amendments to Senate Bill No. 5898.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5898, as amended by the House.



ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5898, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Hochstatter - 2.

      SENATE BILL NO. 5898, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5998 with the following amendment(s):

       On page 2, line 11, after "section" insert "until such inconsistencies have been corrected", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Fraser, the Senate concurred in the House amendment to Engrossed Senate Bill No. 5998.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5998, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5998, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Hochstatter - 2.

      ENGROSSED SENATE BILL NO. 5998, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6004 with the following amendment(s):

       On page 2, after line 34, insert:

      "NEW SECTION. Sec. 2. A new section is added to chapter 3.02 RCW to read as follows:

      Each county, city, and town is responsible for the adjudication and disposition of gross misdemeanor and misdemeanor offenders and shall carry out this responsibility through the use of its own courts, staff and facilities, or by entering into contracts or interlocal agreements under chapter 39.34 RCW to provide these services.

      Such agreements or contracts shall contain, at a minimum, the following elements: (a) Anticipated costs of services; (b) anticipated revenues from whatever sources to fund the services, including fines and forfeitures and criminal justice funding; and (c) duration, which may not exceed three years."

      Correct the title., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Haugen, the Senate refuses to concur in the House amendment to Senate Bill No. 6004 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 11, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5676 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 26.09.191 and 1994 c 267 s 1 are each amended to read as follows:

      (1) The permanent parenting plan shall not require mutual decision-making or designation of a dispute resolution process other than court action if it is found that a parent has engaged in any of the following conduct: (a) Willful abandonment that continues for an extended period of time or substantial refusal to perform parenting functions; (b) physical, sexual, or a pattern of emotional abuse of a child; or (c) a history of acts of domestic violence as defined in RCW 26.50.010(1) or an assault or sexual assault which causes grievous bodily harm or the fear of such harm.

      (2)(a) The parent's residential time with the child shall be limited if it is found that the parent has engaged in any of the following conduct: (i) Willful abandonment that continues for an extended period of time or substantial refusal to perform parenting functions; (ii) physical, sexual, or a pattern of emotional abuse of a child; or (iii) a history of acts of domestic violence as defined in RCW 26.50.010(1) or an assault or sexual assault which causes grievous bodily harm or the fear of such harm. The parent's residential time with the child shall be limited if the parent has been convicted as an adult of a sex offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW. This subsection shall not apply when (c) of this subsection applies.

      (b) The parent's residential time with the child shall be limited if it is found that the parent resides with a person who has engaged in any of the following conduct: (i) Physical, sexual, or a pattern of emotional abuse of a child; or (ii) a history of acts of domestic violence as defined in RCW 26.50.010(1) or an assault or sexual assault that causes grievous bodily harm or the fear of such harm. If a parent resides with a person who as an adult has been convicted or as a juvenile has been adjudicated, or with a juvenile who has been adjudicated, of a sex offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, the court shall restrain the parent from contact with the parent's child except contact that occurs outside that person's presence. This subsection (2)(b) shall not apply when (c) of this subsection applies.

      (c) If a parent has been ((convicted as an adult of a sexual offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, or has been)) found to be a sexual predator under chapter 71.09 RCW, the court shall restrain the parent from contact with a child that would otherwise be allowed under this chapter. If a parent resides with an adult or juvenile who has been ((convicted, or with a juvenile who has been adjudicated, of a sexual offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, or who has been)) found to be a sexual predator under chapter 71.09 RCW, the court shall restrain the parent from contact with the parent's child except contact that occurs outside that person's presence.

      (d)(i) The limitations imposed by the court under (a) or (b) of this subsection shall be reasonably calculated to protect the child from physical, sexual, or emotional abuse or harm that could result if the child has contact with the parent requesting residential time. If the court expressly finds based on the evidence that limitation on the residential time with the child will not adequately protect the child from the harm or abuse that could result if the child has contact with the parent requesting residential time, the court shall restrain the parent requesting residential time from all contact with the child.

      (ii) The court shall not enter an order under (a) of this subsection allowing a parent to have contact with a child if the parent has been found by clear and convincing evidence in a civil action or by a preponderance of the evidence in a dependency action to have sexually abused the child, except upon recommendation by an evaluator or therapist for the child that the child is ready for contact with the parent and will not be harmed by the contact. The court shall not enter an order allowing a parent to have contact with the child if the parent resides with a person who has been found by clear and convincing evidence in a civil action or by a preponderance of the evidence in a dependency action to have sexually abused a child, unless the court finds that the parent accepts that the person engaged in the harmful conduct and the parent is willing to and capable of protecting the child from harm from the person.

      (iii) If the court limits residential time under (a) or (b) of this subsection to require supervised contact between the child and the parent, the court shall not approve of a supervisor for contact between a child and a parent who has engaged in physical, sexual, or a pattern of emotional abuse of the child unless the court finds based upon the evidence that the supervisor accepts that the harmful conduct occurred and is willing to and capable of protecting the child from harm. The court shall revoke court approval of the supervisor upon finding, based on the evidence, that the supervisor has failed to protect the child or is no longer willing to or capable of protecting the child.

      (e) If the court expressly finds based on the evidence that contact between the parent and the child will not cause physical, sexual, or emotional abuse or harm to the child and that the probability that the parent's or other person's harmful or abusive conduct will recur is so remote that it would not be in the child's best interests to apply the limitations of (a), (b), and (d) (i) and (iii) of this subsection, or if the court expressly finds the parent's conduct did not have an impact on the child, then the court need not apply the limitations of (a), (b), and (d) (i) and (iii) of this subsection. The weight given to the existence of a protection order issued under chapter 26.50 RCW as to domestic violence is within the discretion of the court. This subsection shall not apply when (c) and (d)(ii) of this subsection apply.

      (3) A parent's involvement or conduct may have an adverse effect on the child's best interests, and the court may preclude or limit any provisions of the parenting plan, if any of the following factors exist:

      (a) A parent's neglect or substantial nonperformance of parenting functions;

      (b) A long-term emotional or physical impairment which interferes with the parent's performance of parenting functions as defined in RCW 26.09.004;

      (c) A long-term impairment resulting from drug, alcohol, or other substance abuse that interferes with the performance of parenting functions;

      (d) The absence or substantial impairment of emotional ties between the parent and the child;

      (e) The abusive use of conflict by the parent which creates the danger of serious damage to the child's psychological development;

      (f) A parent has withheld from the other parent access to the child for a protracted period without good cause; or

      (g) Such other factors or conduct as the court expressly finds adverse to the best interests of the child.

      (4) In entering a permanent parenting plan, the court shall not draw any presumptions from the provisions of the temporary parenting plan.

      (5) In determining whether any of the conduct described in this section has occurred, the court shall apply the civil rules of evidence, proof, and procedure.

      Sec. 2. RCW 26.10.160 and 1994 c 267 s 2 are each amended to read as follows:

      (1) A parent not granted custody of the child is entitled to reasonable visitation rights except as provided in subsection (2) of this section.

      (2)(a) Visitation with the child shall be limited if it is found that the parent seeking visitation has engaged in any of the following conduct: (i) Willful abandonment that continues for an extended period of time or substantial refusal to perform parenting functions; (ii) physical, sexual, or a pattern of emotional abuse of a child; or (iii) a history of acts of domestic violence as defined in RCW 26.50.010(1) or an assault or sexual assault which causes grievous bodily harm or the fear of such harm. The parent's visitation with the child shall be limited if the parent has been convicted as an adult of a sex offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW. This subsection shall not apply when (c) of this subsection applies.

      (b) The parent's ((residential time)) visitation with the child shall be limited if it is found that the parent resides with a person who has engaged in any of the following conduct: (i) Physical, sexual, or a pattern of emotional abuse of a child; or (ii) a history of acts of domestic violence as defined in RCW 26.50.010(1) or an assault or sexual assault which causes grievous bodily harm or the fear of such harm. If a parent resides with a person who as an adult has been convicted or as a juvenile has been adjudicated, or with a juvenile who has been adjudicated, of a sex offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, the court shall restrain the parent from contact with the parent's child except contact that occurs outside that person's presence. This subsection (2)(b) shall not apply when (c) of this subsection applies.

      (c) If a parent has been ((convicted as an adult of a sexual offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, or has been)) found to be a sexual predator under chapter 71.09 RCW, the court shall restrain the parent from contact with a child that would otherwise be allowed under this chapter. If a parent resides with an adult or juvenile who has been ((convicted, or with a juvenile who has been adjudicated, of a sexual offense under RCW 9A.64.020 or chapter 9.68A or 9A.44 RCW, or who has been)) found to be a sexual predator under chapter 71.09 RCW, the court shall restrain the parent from contact with the parent's child except contact that occurs outside that person's presence.

      (d)(i) The limitations imposed by the court under (a) or (b) of this subsection shall be reasonably calculated to protect the child from the physical, sexual, or emotional abuse or harm that could result if the child has contact with the parent requesting visitation. If the court expressly finds based on the evidence that limitations on visitation with the child will not adequately protect the child from the harm or abuse that could result if the child has contact with the parent requesting visitation, the court shall restrain the person seeking visitation from all contact with the child.

      (ii) The court shall not enter an order under (a) of this subsection allowing a parent to have contact with a child if the parent has been found by clear and convincing evidence in a civil action or by a preponderance of the evidence in a dependency action to have sexually abused the child, except upon recommendation by an evaluator or therapist for the child that the child is ready for contact with the parent and will not be harmed by the contact. The court shall not enter an order allowing a parent to have contact with the child if the parent resides with a person who has been found by clear and convincing evidence in a civil action or by a preponderance of the evidence in a dependency action to have sexually abused a child, unless the court finds that the parent accepts that the person engaged in the harmful conduct and the parent is willing to and capable of protecting the child from harm from the person.

      (iii) If the court limits ((residential time)) visitation under (a) or (b) of this subsection to require supervised contact between the child and the parent, the court shall not approve of a supervisor for contact between a child and a parent who has engaged in physical, sexual, or a pattern of emotional abuse of the child unless the court finds based upon the evidence that the supervisor accepts that the harmful conduct occurred and is willing to and capable of protecting the child from harm. The court shall revoke court approval of the supervisor upon finding, based on the evidence, that the supervisor has failed to protect the child or is no longer willing to or capable of protecting the child.

      (e) If the court expressly finds based on the evidence that contact between the parent and the child will not cause physical, sexual, or emotional abuse or harm to the child and that the probability that the parent's or other person's harmful or abusive conduct will recur is so remote that it would not be in the child's best interests to apply the limitations of (a), (b), and (d) (i) and (iii) of this subsection, or if the court expressly finds based on the evidence that the parent's conduct did not have an impact on the child, then the court need not apply the limitations of (a), (b), and (d) (i) and (iii) of this subsection. The weight given to the existence of a protection order issued under chapter 26.50 RCW as to domestic violence is within the discretion of the court. This subsection shall not apply when (c) and (d)(ii) of this subsection apply.

      (3) Any person may petition the court for visitation rights at any time including, but not limited to, custody proceedings. The court may order visitation rights for any person when visitation may serve the best interest of the child whether or not there has been any change of circumstances.

      (4) The court may modify an order granting or denying visitation rights whenever modification would serve the best interests of the child. Modification of a parent's visitation rights shall be subject to the requirements of subsection (2) of this section."

      On page 1, line 2 of the title, after "parents;" strike the remainder of the title and insert "and amending RCW 26.09.191 and 26.10.160.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5676 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5219 with the following amendment(s):

       On page 42, after line 29, strike all of section 37

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

      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", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5219.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5219, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5219, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Hochstatter - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5219, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5333 with the following amendment(s):

       Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 11.100.010 and 1985 c 30 s 63 are each amended to read as follows:

      Any corporation, association, or person handling or investing trust funds as a fiduciary shall be governed in the handling and investment of such funds as in this chapter specified. A fiduciary who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with requirements of this chapter. The specific requirements of this chapter may be expanded, restricted, eliminated, or otherwise altered by provisions of the controlling instrument.

      Sec. 2. RCW 11.100.020 and 1985 c 30 s 65 are each amended to read as follows:

      (1) A fiduciary is authorized to acquire and retain every kind of property. In acquiring, investing, reinvesting, exchanging, selling and managing property for the benefit of another, a fiduciary, in determining the prudence of a particular investment, shall give due consideration to the role that the proposed investment or investment course of action plays within the overall portfolio of assets. In applying such total asset management approach, a fiduciary shall exercise the judgment and care under the circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, and if the fiduciary has special skills or is named trustee on the basis of representations of special skills or expertise, the fiduciary is under a duty to use those skills.

      (2) Except as may be provided to the contrary in the instrument, the following are among the factors that should be considered by a fiduciary in applying this total asset management approach:

      (a) The probable income as well as the probable safety of their capital;

      (b) Marketability of investments;

      (c) General economic conditions;

      (d) Length of the term of the investments;

      (((d))) (e) Duration of the trust;

      (((e))) (f) Liquidity needs;

      (((f))) (g) Requirements of the beneficiary or beneficiaries;

      (((g))) (h) Other assets of the beneficiary or beneficiaries, including earning capacity; and

      (((h))) (i) Effect of investments in increasing or diminishing liability for taxes.

      (3) Within the limitations of the foregoing standard, and subject to any express provisions or limitations contained in any particular trust instrument, a fiduciary is authorized to acquire and retain every kind of property, real, personal, or mixed, and every kind of investment specifically including but not by way of limitation, debentures and other corporate obligations, and stocks, preferred or common, which persons of prudence, discretion, and intelligence acquire for their own account.

      Sec. 3. RCW 11.100.035 and 1994 c 221 s 68 are each amended to read as follows:

      (1) Within the standards of judgment and care established by law, and subject to any express provisions or limitations contained in any particular trust instrument, guardians, trustees, and other fiduciaries, whether individual or corporate, are authorized to acquire and retain securities of any open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940 as now or hereafter amended.

      (2) Within the limitations of subsection (1) of this section, whenever the trust instrument directs, requires, authorizes, or permits investment in obligations of the United States government, the ((trustee)) fiduciary may invest in and hold such obligations either directly or in the form of securities of, or other interests in, an open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940, as now or hereafter amended, if both of the following conditions are met:

      (a) The portfolio of the investment company or investment trust is limited to obligations of the United States and to repurchase agreements fully collateralized by such obligations; and

      (b) The investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.

      (3) If the fiduciary is a bank or trust company, then the fact that the fiduciary, or an affiliate of the fiduciary, provides services to the investment company or investment trust such as that of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise, and is receiving reasonable compensation for those services does not preclude the bank or trust company from investing or reinvesting in the securities of the open-end or closed-end management investment company or investment trust. The fiduciary shall furnish a copy of the prospectus relating to the securities to each person to whom a regular periodic accounting would ordinarily be rendered under the trust instrument or under RCW 11.106.020, upon the request of that person. The restrictions set forth under RCW 11.100.090 may not be construed as prohibiting the fiduciary powers granted under this subsection.

      NEW SECTION. Sec. 4. A new section is added to chapter 11.100 RCW to read as follows:

      A fiduciary shall invest and manage the trust assets solely in the interests of the trust beneficiaries. If a trust has two or more beneficiaries, the fiduciary shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.

      NEW SECTION. Sec. 5. A new section is added to chapter 11.100 RCW to read as follows:

      Subject to the provisions of RCW 11.100.060 and any express provisions in the trust instrument to the contrary, a fiduciary shall diversify the investments of the trust unless the fiduciary reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.

      Sec. 6. RCW 11.100.130 and 1985 c 30 s 77 are each amended to read as follows:

      Whenever power or authority to direct or control the acts of a ((trustee)) fiduciary or the investments of a trust is conferred directly or indirectly upon any person other than the designated trustee of the trust, such person shall be deemed to be a fiduciary and shall be liable to the beneficiaries of ((said)) the trust and to the designated trustee to the same extent as if he or she were a designated trustee in relation to the exercise or nonexercise of such power or authority.

      NEW SECTION. Sec. 7. This act applies prospectively only and not retroactively.

      NEW SECTION. Sec. 8. 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 "funds;" strike the remainder of the title and insert "amending RCW 11.100.010, 11.100.020, 11.100.035, and 11.100.130; adding new sections to chapter 11.100 RCW; creating a new section; providing an effective date; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Smith, the Senate concurred in the House amendments to Substitute Senate Bill No. 5333.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5333, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5333, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Hochstatter - 2.

      SUBSTITUTE SENATE BILL NO. 5333, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      President Pro Tempore Wojahn assumed the Chair.


MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5315 with the following amendment(s):

       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 may inspect food storage warehouses for compliance with the provisions of chapter 69.04 RCW and the rules adopted under chapter 69.04 RCW 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.