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

from that in the original published version.


FIFTY-FIFTH DAY


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MORNING SESSION


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Senate Chamber, Olympia, Saturday, March 2, 1996

      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 Senator Rinehart. On motion of Senator Thibaudeau, Senator Rinehart was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Jennifer Maxson and Kris Schmidt, presented the Colors. Elder James Erlandson, of the Reorganized Church of Jesus Christ of Latter-Day Saints of Olympia, 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.


MESSAGES FROM THE HOUSE

March 1, 1996

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1078,

      HOUSE BILL NO. 2389,

      SUBSTITUTE HOUSE BILL NO. 2535,

      HOUSE BILL NO. 2589,

      HOUSE BILL NO. 2628,

      SUBSTITUTE HOUSE BILL NO. 2755,

      HOUSE BILL NO. 2789, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


March 1, 1996

MR. PRESIDENT:

      The Speaker has signed:

      HOUSE BILL NO. 2137,

      SECOND SUBSTITUTE HOUSE BILL NO. 2292,

      SUBSTITUTE HOUSE BILL NO. 2320,

      SUBSTITUTE HOUSE BILL NO. 2388,

      SUBSTITUTE HOUSE BILL NO. 2605,

      SUBSTITUTE HOUSE BILL NO. 2634,

      HOUSE BILL NO. 2652,

      ENGROSSED HOUSE BILL NO. 2735,

      HOUSE BILL NO. 2913, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


March 1, 1996

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6146,

      SENATE BILL NO. 6177,

      SUBSTITUTE SENATE BILL NO. 6229,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6284,

      SENATE BILL NO. 6366,

      SENATE BILL NO. 6380,

      SUBSTITUTE SENATE BILL NO. 6422,

      SENATE BILL NO. 6425,

      SENATE BILL NO. 6617,

      SUBSTITUTE SENATE BILL NO. 6673,

      SENATE JOINT MEMORIAL NO. 8028, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1078,

      HOUSE BILL NO. 2389,

      SUBSTITUTE HOUSE BILL NO. 2535,

      HOUSE BILL NO. 2589,

      HOUSE BILL NO. 2628,

      SUBSTITUTE HOUSE BILL NO. 2755,

      HOUSE BILL NO. 2789.


SIGNED BY THE PRESIDENT


      The President signed:

      HOUSE BILL NO. 2137,

      SECOND SUBSTITUTE HOUSE BILL NO. 2292,

      SUBSTITUTE HOUSE BILL NO. 2320,

      SUBSTITUTE HOUSE BILL NO. 2388,

      SUBSTITUTE HOUSE BILL NO. 2605,

      SUBSTITUTE HOUSE BILL NO. 2634,

      HOUSE BILL NO. 2652,

      ENGROSSED HOUSE BILL NO. 2735,

      HOUSE BILL NO. 2913.


MESSAGE FROM THE HOUSE

March 1, 1996

MR. PRESIDENT:

      The House refuses to concur in the Senate amendment(s) to ENGROSSED FOURTH SUBSTITUTE HOUSE BILL NO. 1481 and asks the Senate for a conference thereon. The Speaker has appointed the following members as conferees: Representatives Cooke, Mastin and Brown.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Quigley, the Senate grants the request of the House for a conference on Engrossed Fourth Substitute House Bill No. 1481 and the Senate amendment(s) thereto.


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Engrossed Fourth Substitute House Bill No. 1481 and the Senate amendment(s) thereto: Senators Quigley, Wood and Wojahn.


      MOTION


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


MOTION


      At 9:11 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.



      The Senate was called to order at 10:36 a.m. by President Pritchard.


MESSAGE FROM THE HOUSE

February 27, 1996

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5053 with the following amendments:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 64.06.010 and 1994 c 200 s 2 are each amended to read as follows:

      (1) Except as provided in subsection (2) of this section, this chapter does not apply to the following transfers of residential real property:

      (((1))) (a) A foreclosure, deed-in-lieu of foreclosure, real estate contract forfeiture, or a sale by a lienholder who acquired the residential real property through foreclosure ((or)), deed-in-lieu of foreclosure, or real estate contract forfeiture;

      (((2))) (b) A gift or other transfer to a parent, spouse, or child of a transferor or child of any parent or spouse of a transferor;

      (((3))) (c) A transfer between spouses in connection with a marital dissolution;

      (((4))) (d) A transfer where a buyer had an ownership interest in the property within two years of the date of the transfer including, but not limited to, an ownership interest as a partner in a partnership, a limited partner in a limited partnership, a shareholder in a corporation, a leasehold interest, or transfers to and from a facilitator pursuant to a tax deferred exchange;

      (((5))) (e) A transfer of an interest that is less than fee simple, except that the transfer of a vendee's interest under a real estate contract is subject to the requirements of this chapter; ((and

      (6))) (f) A transfer made by the personal representative of the estate of the decedent or by a trustee in bankruptcy; and

      (g) A transfer of new residential construction, if the seller is registered under chapter 18.27 RCW, and if the buyer is the first purchaser and occupant.

      (2) This chapter shall apply to transfers of residential real property exempt under this section, if the seller provides to the buyer a completed real property transfer disclosure statement in the form described in RCW 64.06.020(1).

      Sec. 2. RCW 64.06.020 and 1994 c 200 s 3 are each amended to read as follows:

      (1) In a transaction for the sale of residential real property, the seller shall, unless the buyer has expressly waived the right to receive the disclosure statement, or unless the transfer is exempt under RCW 64.06.010, deliver to the buyer a completed real property transfer disclosure statement in the following ((form)) format and that contains, at a minimum, the following information:


INSTRUCTIONS TO THE SELLER

Please complete the following form. Do not leave any spaces blank. If the question clearly does not apply to the property write "NA". If the answer is "yes" to any * items, please explain on attached sheets. Please refer to the line number(s) of the question(s) when you provide your explanation(s). For your protection you must date and sign each page of this disclosure statement and each attachment. Delivery of the disclosure statement must occur not later than ((. . .)) five business days (((or five days if not filled in) of)), unless otherwise agreed, after mutual acceptance of a written contract to purchase between a buyer and a seller.

NOTICE TO THE BUYER

THE FOLLOWING DISCLOSURES ARE MADE BY THE SELLER(S), CONCERNING THE CONDITION OF THE PROPERTY LOCATED AT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

("THE PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A.


DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME THIS DISCLOSURE FORM IS COMPLETED BY THE SELLER. YOU HAVE ((. . .)) THREE BUSINESS DAYS, ((OR THREE BUSINESS DAYS IF NOT FILLED IN)) UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE YOUR OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE SELLER, UNLESS YOU WAIVE THIS RIGHT AT OR PRIOR TO ENTERING INTO A SALE AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY THE SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN THE BUYER AND THE SELLER.


FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF A QUALIFIED SPECIALIST TO INSPECT THE PROPERTY ON YOUR BEHALF, FOR EXAMPLE, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, OR PEST AND DRY ROT INSPECTORS. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES.


Seller . . . . is/ . . . . is not occupying the property.


                           I.        SELLER'S DISCLOSURES:


*If "Yes" attach a copy or explain. If necessary use an attached sheet.


                                                                      1. TITLE

[ ]Yes [ ]No [ ]Don't know            A. Do you have legal authority to sell the property?

[ ]Yes [ ]No [ ]Don't know            *B. Is title to the property subject to any of the following?

                                                                                                      (1) First right of refusal

                                                                                                      (2) Option

                                                                                                      (3) Lease or rental agreement

                                                                                                      (4) Life estate?

[ ]Yes [ ]No [ ]Don't know            *C. Are there any encroachments, boundary agreements, or boundary disputes?

[ ]Yes [ ]No [ ]Don't know            *D. Are there any rights of way, easements, or access limitations that may affect the owner's use of the property?

[ ]Yes [ ]No [ ]Don't know            *E. Are there any written agreements for joint maintenance of an easement or right of way?

[ ]Yes [ ]No [ ]Don't know            *F. Is there any study, survey project, or notice that would adversely affect the property?

[ ]Yes [ ]No [ ]Don't know            *G. Are there any pending or existing assessments against the property?

[ ]Yes [ ]No [ ]Don't know            *H. Are there any zoning violations, nonconforming uses, or any unusual restrictions on the subject property that would affect future construction or remodeling?

[ ]Yes [ ]No [ ]Don't know            *I. Is there a boundary survey for the property?

[ ]Yes [ ]No [ ]Don't know            *J. Are there any covenants, conditions, or restrictions which affect the property?

 

                                                                      2. WATER

                                                                                      A. Household Water

(1) The source of the water is [ ]Public [ ]Community [ ]Private [ ]Shared

(2) Water source information:

[ ]Yes [ ]No [ ]Don't know                                            *a. Are there any written agreements for shared water source?

[ ]Yes [ ]No [ ]Don't know                                            *b. Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source?

[ ]Yes [ ]No [ ]Don't know                                            *c. Are any known problems or repairs needed?

[ ]Yes [ ]No [ ]Don't know                                            *d. Does the source provide an adequate year round supply of potable water?

[ ]Yes [ ]No [ ]Don't know                            *(3) Are there any water treatment systems for the property? [ ]Leased [ ]Owned

                                                                                      B. Irrigation

[ ]Yes [ ]No [ ]Don't know                            (1) Are there any water rights for the property?

[ ]Yes [ ]No [ ]Don't know                            *(2) If they exist, to your knowledge, have the water rights been used during the last five-year period?

[ ]Yes [ ]No [ ]Don't know                            *(3) If so, is the certificate available?

                                                                                      C. Outdoor Sprinkler System

[ ]Yes [ ]No [ ]Don't know                            (1) Is there an outdoor sprinkler system for the property?

[ ]Yes [ ]No [ ]Don't know                            *(2) Are there any defects in the outdoor sprinkler system?


                                                                      3. SEWER/SEPTIC SYSTEM

A. The property is served by: [ ]Public sewer main, [ ]Septic tank system [ ]Other disposal system (describe)

                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know            B. If the property is served by a public or community sewer main, is the house connected to the main?

C. Is the property currently subject to a sewer capacity charge?

D. If the property is connected to a septic system:

[ ]Yes [ ]No [ ]Don't know                            (1) Was a permit issued for its construction, and was it approved by the city or county following its construction?

(2) When was it last pumped:

                                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 19. . .

[ ]Yes [ ]No [ ]Don't know                            *(3) Are there any defects in the operation of the septic system?

                             [ ]Don't know                    (4) When was it last inspected?

                                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 19. . .

                                                                                                      By Whom: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

                             [ ]Don't know                    (5) How many bedrooms was the system approved for?

                                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .bedrooms

[ ]Yes [ ]No [ ]Don't know            *((D)) E. Do all plumbing fixtures, including laundry drain, go to the septic/sewer system? If no, explain: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know            *((E)) F. Are you aware of any changes or repairs to the septic system?

[ ]Yes [ ]No [ ]Don't know            ((F)) G. Is the septic tank system, including the drainfield, located entirely within the boundaries of the property?


                                                                      4. STRUCTURAL 

[ ]Yes [ ]No [ ]Don't know            *A. Has the roof leaked?

[ ]Yes [ ]No [ ]Don't know            If yes, has it been repaired?

[ ]Yes [ ]No [ ]Don't know            *B. Have there been any conversions, additions, or remodeling?

[ ]Yes [ ]No [ ]Don't know                            *1. If yes, were all building permits obtained?

[ ]Yes [ ]No [ ]Don't know                            *2. If yes, were all final inspections obtained?

[ ]Yes [ ]No [ ]Don't know            C. Do you know the age of the house? If yes, year of original construction:

                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know            *D. Do you know of any settling, slippage, or sliding of either the house or other structures/improvements located on the property? If yes, explain:

                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know            *E. Do you know of any defects with the following: (Please check applicable items)


      □ Foundations                         □ Decks                                   □ Exterior Walls

      □ Chimneys                             □ Interior Walls       □ Fire Alarm

      □ Doors                                   □ Windows                                              □ Patio

      □ Ceilings                □ Slab Floors                           □ Driveways

      □ Pools                                    □ Hot Tub                                               □ Sauna

      □ Sidewalks                            □ Outbuildings                        □ Fireplaces

      □ Garage Floors                                                                      □ Walkways

      □ Other                                                                                                    □ Wood Stoves

 

[ ]Yes [ ]No [ ]Don't know            *F. Was a pest or dry rot, structural or "whole house" inspection done? When and by whom was the inspection completed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

[ ]Yes [ ]No [ ]Don't know            *G. Since assuming ownership, has your property had a problem with wood destroying organisms and/or have there been any problems with pest control, infestations, or vermin?


                                                                      5. SYSTEMS AND FIXTURES

If the following systems or fixtures are included with the transfer, do they have any existing defects:

[ ]Yes [ ]No [ ]Don't know            *A. Electrical system, including wiring, switches, outlets, and service

[ ]Yes [ ]No [ ]Don't know            *B. Plumbing system, including pipes, faucets, fixtures, and toilets

[ ]Yes [ ]No [ ]Don't know            *C. Hot water tank

[ ]Yes [ ]No [ ]Don't know            *D. Garbage disposal

[ ]Yes [ ]No [ ]Don't know            *E. Appliances

[ ]Yes [ ]No [ ]Don't know            *F. Sump pump

[ ]Yes [ ]No [ ]Don't know            *G. Heating and cooling systems

[ ]Yes [ ]No [ ]Don't know            *H. Security system [ ] Owned [ ] Leased

*I. Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


                                                                      6. COMMON INTEREST

[ ]Yes [ ]No [ ]Don't know            A. Is there a Home Owners' Association? Name of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

[ ]Yes [ ]No [ ]Don't know            B. Are there regular periodic assessments:

$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  per [ ] Month [ ] Year

                                                                                      [ ] Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know            *C. Are there any pending special assessments?

[ ]Yes [ ]No [ ]Don't know            *D. Are there any shared "common areas" or any joint maintenance agreements (facilities such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)?


                                                                      7. GENERAL

[ ]Yes [ ]No [ ]Don't know            *A. Is there any settling, soil, standing water, or drainage problems on the property?

[ ]Yes [ ]No [ ]Don't know            *B. Does the property contain fill material?

[ ]Yes [ ]No [ ]Don't know            *C. Is there any material damage to the property or any of the structure from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides?

[ ]Yes [ ]No [ ]Don't know            D. Is the property in a designated flood plain?

(([ ]Yes [ ]No [ ]Don't know         E. Is the property in a designated flood hazard zone?))

[ ]Yes [ ]No [ ]Don't know            ((*F.)) *E. Are there any substances, materials, or products that may be an environmental hazard such as, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the subject property?

[ ]Yes [ ]No [ ]Don't know            ((*G.)) *F. Are there any tanks or underground storage tanks (e.g., chemical, fuel, etc.) on the property?

[ ]Yes [ ]No [ ]Don't know            ((*H.)) *G. Has the property ever been used as an illegal drug manufacturing site?


                                                                      8. FULL DISCLOSURE BY SELLERS

A. Other conditions or defects:

[ ]Yes [ ]No [ ]Don't know            *Are there any other material defects affecting this property or its value that a prospective buyer should know about?

B. Verification:

The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy hereof. I/we authorize all of my/our real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property.


DATE . . . . . . . SELLER . . . . . . . . . SELLER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


                           II.       BUYER'S ACKNOWLEDGMENT

                                      A.            As buyer(s), I/we acknowledge the duty to pay diligent attention to any material defects which are known to me/us or can be known to me/us by utilizing diligent attention and observation.

                                      B.            Each buyer acknowledges and understands that the disclosures set forth in this statement and in any amendments to this statement are made only by the seller.

                                      C.            Buyer (which term includes all persons signing the "buyer's acceptance" portion of this disclosure statement below) hereby acknowledges receipt of a copy of this disclosure statement (including attachments, if any) bearing seller's signature.

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME OF DISCLOSURE. YOU, THE BUYER, HAVE ((. . .)) THREE BUSINESS DAYS (((OR THREE BUSINESS DAYS IF NOT FILLED IN))), UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE YOUR OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE SELLER UNLESS YOU WAIVE THIS RIGHT OF ((REVOCATION)) RESCISSION.

BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS REAL PROPERTY TRANSFER DISCLOSURE STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTHER PARTY.

DATE . . . . . . . BUYER . . . . . . . . . BUYER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


      (2) The real property transfer disclosure statement shall be for disclosure only, and shall not be considered part of any written agreement between the buyer and seller of residential real property. The real property transfer disclosure statement shall be only a disclosure made by the seller, and not any real estate licensee involved in the transaction, and shall not be construed as a warranty of any kind by the seller or any real estate licensee involved in the transaction.

      Sec. 3. RCW 64.06.030 and 1994 c 200 s 4 are each amended to read as follows:

      Unless the buyer has expressly waived the right to receive the disclosure statement, ((within)) not later than five business days or as otherwise agreed to, ((of)) after mutual acceptance of a written agreement between a buyer and a seller for the purchase and sale of residential real property, the seller shall deliver to the buyer a completed, signed, and dated real property transfer disclosure statement. Within three business days, or as otherwise agreed to, of receipt of the real property transfer disclosure statement, the buyer shall have the right to exercise one of the following two options: (1) Approving and accepting the real property transfer disclosure statement; or (2) rescinding the agreement for the purchase and sale of the property, which decision may be made by the buyer in the buyer's sole discretion. If the buyer elects to rescind the agreement, the buyer must deliver written notice of rescission to the seller within the three-business-day period, or as otherwise agreed to, and upon delivery of the written rescission notice the buyer shall be entitled to immediate return of all deposits and other considerations less any agreed disbursements paid to the seller, or to the seller's agent or an escrow agent for the seller's account, and the agreement for purchase and sale shall be void. If the buyer does not deliver a written recision notice to [the] seller within the three-business-day period, or as otherwise agreed to, the real property transfer disclosure statement will be deemed approved and accepted by the buyer.

      Sec. 4. RCW 64.06.040 and 1994 c 200 s 5 are each amended to read as follows:

      (1) If, after the date that a seller of residential real property completes a real property transfer disclosure statement, the seller becomes aware of additional information, or an adverse change occurs which makes any of the disclosures made inaccurate, the seller shall amend the real property transfer disclosure statement, and deliver the amendment to the buyer. No amendment shall be required, however, if the seller takes whatever corrective action is necessary so that the accuracy of the disclosure is restored, or the adverse change is corrected, at least three business days prior to the closing date. Unless the ((adverse change is corrected or repaired)) corrective action is completed by the seller prior to the closing date, the buyer shall have the right to exercise one of the following two options: (a) Approving and accepting the amendment, or (b) rescinding the agreement of purchase and sale of the property within three business days after receiving the amended real property transfer disclosure statement. Acceptance or recision shall be subject to the same procedures described in RCW 64.06.030. If the closing date provided in the purchase and sale agreement is scheduled to occur within the three-business-day rescission period provided for in this section, the closing date shall be extended until the expiration of the three-business-day rescission period. The buyer shall have no right of rescission if the seller takes whatever action is necessary so that the accuracy of the disclosure is restored at least three business days prior to the closing date.

      (2) In the event any act, occurrence, or agreement arising or becoming known after the closing of a residential real property transfer causes a real property transfer disclosure statement to be inaccurate in any way, the seller of such property shall have no obligation to amend the disclosure statement, and the buyer shall not have the right to rescind the transaction under this chapter.

      (3) If the seller in a residential real property transfer fails or refuses to provide to the prospective buyer a real property transfer disclosure statement as required under this chapter, the prospective buyer's right of rescission under this section shall apply until the earlier of three business days after receipt of the real property transfer disclosure statement or the date the transfer has closed, unless the buyer has otherwise waived the right of rescission in writing. Closing is deemed to occur when the buyer has paid the purchase price, or down payment, and the conveyance document, including a deed or real estate contract, from the seller has been delivered and recorded. After closing, the seller's obligation to deliver the real property transfer disclosure statement and the buyer's rights and remedies under this chapter shall terminate.

      Sec. 5. RCW 64.06.050 and 1994 c 200 s 6 are each amended to read as follows:

      (1) The seller of residential real property shall not be liable for any error, inaccuracy, or omission in the real property transfer disclosure statement if the seller had no ((personal)) actual knowledge of the error, inaccuracy, or omission. Unless the seller of residential real property has actual knowledge of an error, inaccuracy, or omission in a real property transfer disclosure statement, the seller shall not be liable for such error, inaccuracy, or omission if the disclosure was based on information provided by public agencies, or by other persons providing information within the scope of their professional license or expertise, including, but not limited to, a report or opinion delivered by a land surveyor, title company, title insurance company, structural inspector, pest inspector, licensed engineer, or contractor.

      (2) Any licensed real estate salesperson or broker involved in a residential real property transaction is not liable for any error, inaccuracy, or omission in the real property transfer disclosure statement if the licensee had no ((personal)) actual knowledge of the error, inaccuracy, or omission. Unless the salesperson or broker has actual knowledge of an error, inaccuracy, or omission in a real property transfer disclosure statement, the salesperson or broker shall not be liable for such error, inaccuracy, or omission if the disclosure was based on information provided by public agencies, or by other persons providing information within the scope of their professional license or expertise, including, but not limited to, a report or opinion delivered by a land surveyor, title company, title insurance company, structural inspector, pest inspector, licensed engineer, or contractor.

      Sec. 6. RCW 64.06.070 and 1994 c 200 s 8 are each amended to read as follows:

      Except as provided in RCW 64.06.050, nothing in this chapter shall extinguish or impair any rights or remedies of a buyer of real estate against the seller or against any agent acting for the seller otherwise existing pursuant to common law, statute, or contract; nor shall anything in this chapter create any new right or remedy for a buyer of residential real property other than the right of recision exercised on the basis and within the time limits provided in this chapter.

      NEW SECTION. Sec. 7. Section 2 of this act shall take effect July 1, 1996."

      On page 1, line 1 of the title, after "disclosure;" strike the remainder of the title and insert "amending RCW 64.06.010, 64.06.020, 64.06.030, 64.06.040, 64.06.050, and 64.06.070; and providing an effective date.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Haugen moved that the Senate refuse to concur in the House amendments and asks the House to recede therefrom.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Haugen that the Senate refuse to concur in the House amendments to Second Substitute Senate Bill No. 5053 and asks the House to recede therefrom.

      The motion by Senator Haugen carried and the Senate refuses to concur in the House amendments to Second Substitute Senate Bill No. 5053 and asks the House to recede therefrom.


      MOTION


      On motion of Senator Thibaudeau, Senator Rinehart was excused.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed FOURTH SUBSTITUTE SENATE BILL NO. 5159 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A warm water game fish enhancement program is created in the department to be funded from the sale of a warm water game fish surcharge. The enhancement program shall be designed to increase the opportunities to fish for and catch warm water game fish including: Largemouth black bass, smallmouth black bass, channel catfish, black crappie, white crappie, walleye, and tiger musky. The program shall be designed to use a practical applied approach to increasing warm water fishing. The department shall use the funds available efficiently to assure the greatest increase in the fishing for warm water fish at the lowest cost. This approach shall involve the minimization of overhead and administrative costs and the maximization of productive in-the-field activities.

      NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, as used in this chapter, "warm water game fish" includes the following species: Bass, channel catfish, walleye, crappie, and other species as defined by the department.

      NEW SECTION. Sec. 3. (1) A warm water game fish surcharge allows a person to fish throughout the state for warm water game fish.

      (2) The annual fee for a game fish surcharge is five dollars and the surcharge is required in addition to an annual game fishing license, except for those persons under fifteen years of age for which there is no charge. Holders of three-day resident fishing licenses, three-day nonresident fishing licenses, and nonresident annual fishing licenses shall pay a five-dollar surcharge to fish for warm water fish.

      (3) The department shall use the most cost-effective format in designing and administering the warm water game fish surcharge.

      (4) A warm water game fish surcharge shall only be required to fish for: Largemouth bass, smallmouth bass, walleye, black crappie, white crappie, channel catfish, and tiger musky.

      NEW SECTION. Sec. 4. The goals of the warm water game fish enhancement program are to improve the fishing for warm water game fish using cost-effective management. Development of new ponds and lakes shall be an important and integral part of the program. The department shall work with the department of natural resources to coordinate the reclamation of surface mines and the development of warm water game fish ponds. Improvement of warm water fishing shall be coordinated with the protection and conservation of cold water fish populations. This shall be accomplished by carefully designing the warm water projects to have minimal adverse effects upon the cold water fish populations. New pond and lake development should have beneficial effects upon wildlife due to the increase in lacustrine and wetland habitat that will accompany the improvement of warm water fish habitat. The department shall not develop projects that will increase the populations of undesirable or deleterious fish species such as carp, squawfish, walking catfish, and others.

      Fish culture programs shall be used in conditions where they will prove to be cost-effective, and may include the purchase of warm water fish from aquatic farmers defined in RCW 15.85.020. Consideration should be made for development of urban area enhancement of fishing opportunity for put-and-take species, such as channel catfish, that are amenable to production by low-cost fish culture methods. Fish culture shall also be used for stocking of high value species, such as walleye, smallmouth bass, and tiger musky. Introduction of special genetic strains that show high potential for recreational fishing improvement, including Florida strain largemouth bass and striped bass, shall be considered.

      Transplantation and introduction of exotic warm water fish shall be carefully reviewed to assure that adverse effects to native fish and wildlife populations do not occur. This review shall include an analysis of consequences from disease and parasite introduction.

      Population management through the use of fish toxicants, including rotenone or derris root, shall be an integral part of the warm water game fish enhancement program. However, any use of fish toxicants shall be subject to a thorough review to prevent adverse effects to cold water fish, desirable warm water fish, and other biota. Eradication of deleterious fish species shall be a goal of the program.

      Habitat improvement shall be a major aspect of the warm water game fish enhancement program. Habitat improvement opportunities shall be defined with scientific investigations, field surveys, and by using the extensive experience of other state management entities. Installation of cover, structure, water flow control structures, screens, spawning substrate, vegetation control, and other management techniques shall be fully used. The department shall work to gain access to privately owned waters that can be developed with habitat improvements to improve the warm water resource for public fishing.

      The department shall use the resources of cooperative groups to assist in the planning and implementation of the warm water game fish enhancement program. In the development of the program the department shall actively involve the organized fishing clubs that primarily fish for warm water fish. The warm water fish enhancement program shall be cooperative between the department and private landowners; private landowners shall not be required to alter the uses of their private property to fulfill the purposes of the warm water fish enhancement program. The director shall not impose restrictions on the use of private property, or take private property, for the purpose of the warm water fish enhancement program.

      NEW SECTION. Sec. 5. The warm water game fish account is hereby created in the state wildlife fund. Moneys in the account are subject to legislative appropriation and shall be used for the purpose of funding the warm water game fish enhancement program, including the development of warm water pond and lake habitat, culture of warm water game fish, improvement of warm water fish habitat, management of warm water fish populations, and other practical activities that will improve the fishing for warm water fish. Funds from the warm water game fish surcharge shall not serve as replacement funding for department-operated warm water fish projects existing on December 31, 1994. Funds from the warm water game fish account shall not be used for the operation or construction of the warm water fish culture project at Ringold unless specifically authorized by legislation.

      Funds from the sale of the warm water game fish surcharges shall be deposited in the warm water game fish account.

      NEW SECTION. Sec. 6. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1996, in the omnibus appropriations act, this act is null and void.

      NEW SECTION. Sec. 7. The department of fish and wildlife shall provide to the natural resource committees of the legislature an operational and management plan for the Ringold warm water fish culture project on or before December 31, 1996.

      NEW SECTION. Sec. 8. Sections 1 through 5 of this act shall constitute a new chapter in Title 77 RCW.

      NEW SECTION. Sec. 9. (1) Sections 1, 2, and 4 through 7 of this act shall take effect July 1, 1996.

      (2) Section 3 of this act shall take effect January 1, 1997."

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

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate refuses to concur in the House amendment to Fourth Substitute Senate Bill No. 5159 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5700 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 46.16 RCW to read as follows:

      Effective with vehicle registrations due or to become due on January 1, 2000, all vehicle license plates must have a common background except commercial vehicles as defined in RCW 46.32.005, vehicles originally licensed before January 1, 1987, that are currently owned by the original licensee, and vehicles with special plates designated in RCW 46.16.305 (1) and (3).

      Sec. 2. RCW 46.16.270 and 1990 c 250 s 32 are each amended to read as follows:

      Replacement plates issued after January 1, ((1987, will be centennial plates as described in RCW 46.16.650)) 2000, must have a common background. The ((total)) replacement plate fee including the one dollar per plate centennial plate fee shall be deposited in the motor vehicle fund.

      Upon the loss, defacement, or destruction of one or both of the vehicle license number plates issued for any vehicle where more than one plate was originally issued or where one or both have become so illegible or in such a condition as to be difficult to distinguish, or upon the owner's option, the owner of the vehicle shall make application for new vehicle license number plates upon a form furnished by the director. The application shall be filed with the director or the director's authorized agent, accompanied by the certificate of license registration of the vehicle and a fee in the amount of three dollars per plate, whereupon the director, or the director's authorized agent, shall issue new vehicle license number plates to the applicant. It shall be accompanied by a fee of two dollars for a new motorcycle license number plate. In the event the director has issued license period tabs or a windshield emblem instead of vehicle license number plates, and upon the loss, defacement, or destruction of the tabs or windshield emblem, application shall be made on a form provided by the director and in the same manner as above described, and shall be accompanied by a fee of one dollar for each pair of tabs or for each windshield emblem, whereupon the director shall issue to the applicant a duplicate pair of tabs, year tabs, and when necessary month tabs or a windshield emblem to replace those lost, defaced, or destroyed. For vehicles owned, rented, or leased by the state of Washington or by any county, city, town, school district, or other political subdivision of the state of Washington or United States government, or owned or leased by the governing body of an Indian tribe as defined in RCW 46.16.020, a fee shall be charged for replacement of a vehicle license number plate only to the extent required by the provisions of RCW 46.16.020, 46.16.061, 46.16.237, and 46.01.140. For vehicles owned, rented, or leased by foreign countries or international bodies to which the United States government is a signatory by treaty, the payment of any fee for the replacement of a vehicle license number plate shall not be required."

      On line 1 of the title, after "plates;" strike the remainder of the title and insert "amending RCW 46.16.270; and adding a new section to chapter 46.16 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk



MOTION


      On motion of Senator Owen, the Senate refuses to concur in the House amendments to Engrossed Second Substitute Senate Bill No. 5700 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

February 29, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6211 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 39.34 RCW to read as follows:

      (1) Each county, city, and town is responsible for the prosecution, adjudication, sentencing, and incarceration of misdemeanor and gross misdemeanor offenses committed by adults in their respective jurisdictions, and referred from their respective law enforcement agencies, whether filed under state law or city ordinance, and must carry out these responsibilities through the use of their own courts, staff, and facilities, or by entering into contracts or interlocal agreements under this chapter to provide these services. Nothing in this section is intended to alter the statutory responsibilities of each county for the prosecution, adjudication, sentencing, and incarceration for not more than one year of felony offenders, nor shall this section apply to any offense initially filed by the prosecuting attorney as a felony offense or an attempt to commit a felony offense.

      (2) The following principles must be followed in negotiating interlocal agreements or contracts: Cities and counties must consider (a) anticipated costs of services; and (b) anticipated and potential revenues to fund the services, including fines and fees, criminal justice funding, and state-authorized sales tax funding levied for criminal justice purposes.

      (3) If an agreement as to the levels of compensation within an interlocal agreement or contract for gross misdemeanor and misdemeanor services cannot be reached between a city and county, then either party may invoke binding arbitration on the compensation issued by notice to the other party. In the case of establishing initial compensation, the notice shall request arbitration within thirty days. In the case of nonrenewal of an existing contract or interlocal agreement, the notice must be given one hundred twenty days prior to the expiration of the existing contract or agreement and the existing contract or agreement remains in effect until a new agreement is reached or until an arbitration award on the matter of fees is made. The city and county each select one arbitrator, and the initial two arbitrators pick a third arbitrator.

      (4) For any city or town that has repealed a majority of that portion of its municipal code defining crimes, this section shall apply as of July 1, 1997. For all other cities and towns, this section shall apply as of July 1, 1998.

      NEW SECTION. Sec. 2. This act shall take effect January 1, 1997."

      On page 1, line 1 of the title, after "costs;" strike the remainder of the title and insert "adding a new section to chapter 39.34 RCW; and providing an effective date.", 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 amendments to Engrossed Substitute Senate Bill No. 6211 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

February 29, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6257 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. It is the intent of this act to make improvements to the guardian and guardian ad litem systems currently in place for the protection of minors and incapacitated persons.

      Sec. 2. RCW 2.56.030 and 1994 c 240 s 1 are each amended to read as follows:

      The administrator for the courts shall, under the supervision and direction of the chief justice:

      (1) Examine the administrative methods and systems employed in the offices of the judges, clerks, stenographers, and employees of the courts and make recommendations, through the chief justice, for the improvement of the same;

      (2) Examine the state of the dockets of the courts and determine the need for assistance by any court;

      (3) Make recommendations to the chief justice relating to the assignment of judges where courts are in need of assistance and carry out the direction of the chief justice as to the assignments of judges to counties and districts where the courts are in need of assistance;

      (4) Collect and compile statistical and other data and make reports of the business transacted by the courts and transmit the same to the chief justice to the end that proper action may be taken in respect thereto;

      (5) Prepare and submit budget estimates of state appropriations necessary for the maintenance and operation of the judicial system and make recommendations in respect thereto;

      (6) Collect statistical and other data and make reports relating to the expenditure of public moneys, state and local, for the maintenance and operation of the judicial system and the offices connected therewith;

      (7) Obtain reports from clerks of courts in accordance with law or rules adopted by the supreme court of this state on cases and other judicial business in which action has been delayed beyond periods of time specified by law or rules of court and make report thereof to supreme court of this state;

      (8) Act as secretary of the judicial conference referred to in RCW 2.56.060;

      (9) Formulate and submit to the judicial council of this state recommendations of policies for the improvement of the judicial system;

      (10) Submit annually, as of February 1st, to the chief justice and the judicial council, a report of the activities of the administrator's office for the preceding calendar year;

      (11) Administer programs and standards for the training and education of judicial personnel;

      (12) Examine the need for new superior court and district judge positions under a weighted caseload analysis that takes into account the time required to hear all the cases in a particular court and the amount of time existing judges have available to hear cases in that court. The results of the weighted caseload analysis shall be reviewed by the board for judicial administration and the judicial council, both of which shall make recommendations to the legislature ((by January 1, 1989)). It is the intent of the legislature that weighted caseload analysis become the basis for creating additional district court positions, and recommendations should address that objective;

      (13) Provide staff to the judicial retirement account plan under chapter 2.14 RCW;

      (14) Attend to such other matters as may be assigned by the supreme court of this state;

      (15) Within available funds, develop a curriculum for a general understanding of child development, placement, and treatment resources, as well as specific legal skills and knowledge of relevant statutes including chapters 13.32A, 13.34, and 13.40 RCW, cases, court rules, interviewing skills, and special needs of the abused or neglected child. This curriculum shall be completed and made available to all juvenile court judges, court personnel, and service providers ((by July 1, 1988. The curriculum shall)) and be updated yearly to reflect changes in statutes, court rules, or case law;

      (16) Develop, in consultation with the entities set forth in section 3(3) of this act, a comprehensive state-wide curriculum for all persons who act as paid guardians ad litem under Title 13 or 26 RCW. The curriculum shall be made available July 1, 1997, and include specialty sections on child development, child sexual abuse, child physical abuse, child neglect, clinical and forensic investigative and interviewing techniques, family reconciliation and mediation services and techniques, and relevant statutory and legal requirements. The curriculum shall be made available to all superior court judges, court personnel, and all persons who act as guardians ad litem;

      (17) Develop a curriculum for a general understanding of crimes of malicious harassment, as well as specific legal skills and knowledge of RCW 9A.36.080, relevant cases, court rules, and the special needs of malicious harassment victims. This curriculum shall be ((completed and)) made available to all superior court and court of appeals judges and to all justices of the supreme court ((by July 1, 1989));

      (((17))) (18) Develop, in consultation with the criminal justice training commission and the commissions established under chapters 43.113, 43.115, and 43.117 RCW, a curriculum for a general understanding of ethnic and cultural diversity and its implications for working with youth of color and their families. The curriculum shall be ((completed and made)) available to all superior court judges and court commissioners assigned to juvenile court, and other court personnel ((by October 1, 1993)). Ethnic and cultural diversity training shall be provided annually so as to incorporate cultural sensitivity and awareness into the daily operation of juvenile courts state-wide;

      (((18))) (19) Authorize the use of closed circuit television and other electronic equipment in judicial proceedings. The administrator shall promulgate necessary standards and procedures and shall provide technical assistance to courts as required.

      NEW SECTION. Sec. 3. A new section is added to chapter 2.56 RCW to read as follows:

      (1) The administrator for the courts shall review the advisability of the state-wide mandatory use of court-appointed special advocates as described in RCW 26.12.175 to act as guardians ad litem in appropriate cases under Titles 13 and 26 RCW. The review shall include recommendations regarding the increase of court fees or assessments as necessary to fully fund implementation and continuation of the possible state-wide use of court-appointed special advocates.

      (2) The administrator shall also conduct a study on the feasibility and desirability of requiring all persons who act as guardians ad litem under Titles 11, 13, and 26 RCW to be certified as qualified guardians ad litem prior to their eligibility for appointment.

      (3) In conducting the review and study the administrator shall consult with: (a) The presidents or directors of all public benefit nonprofit corporations that are eligible to receive state funds under RCW 43.330.135; (b) the attorney general, or a designee; (c) the secretary of the department of social and health services, or a designee; (d) the superior court judges association; (e) the Washington state bar association; (f) public defenders who represent children under Title 13 or 26 RCW; (g) private attorneys who represent parents under Title 13 or 26 RCW; (h) professionals who evaluate families for the purposes of determining the custody or placement decisions of children; (i) the office of financial management; (j) persons who act as volunteer or compensated guardians ad litem; and (k) parents who have dealt with guardians ad litem in court cases. For the purposes of studying the feasibility of a certification requirement for guardians ad litem acting under Title 11 RCW the administrator shall consult with the advisory group formed under RCW 11.88.090.

      NEW SECTION. Sec. 4. The review and study required under section 3 of this act shall be presented to the governor and to the legislature no later than December 1, 1996.

      Sec. 5. RCW 4.08.060 and 1899 c 91 s 1 are each amended to read as follows:

      When an ((insane)) incapacitated person, as defined in RCW 11.88.010, is a party to an action in the superior courts he or she shall appear by guardian, or if he or she has no guardian, or in the opinion of the court the guardian is an improper person, the court shall appoint one to act as guardian ad litem. Said guardian shall be appointed as follows:

      (1) When the ((insane)) incapacitated person is plaintiff, upon the application of a relative or friend of the ((insane)) incapacitated person.

      (2) When the ((insane)) incapacitated person is defendant, upon the application of a relative or friend of such ((insane)) incapacitated person, such application shall be made within thirty days after the service of summons if served in the state of Washington, and if served out of the state or service is made by publication, then such application shall be made within sixty days after the first publication of summons or within sixty days after the service out of the state. If no such application be made within the time above limited, application may be made by any party to the action.

      Sec. 6. RCW 8.25.270 and 1977 ex.s. c 80 s 12 are each amended to read as follows:

      When it ((shall)) appears in any petition or otherwise at any time during the proceedings for condemnation brought pursuant to chapters 8.04, 8.08, 8.12, 8.16, 8.20, and 8.24 RCW((, each as now or hereafter amended,)) that any ((infant)) minor, or ((allegedly incompetent or disabled)) alleged incapacitated person, as defined in RCW 11.88.010, is interested in any property that is to be taken or damaged, the court shall appoint a guardian ad litem for ((such infant)) the minor or ((allegedly incompetent or disabled)) alleged incapacitated person to appear and assist in ((his, her or their)) the person's defense, unless a guardian or limited guardian has previously been appointed, in which case the duty to appear and assist shall be delegated to the properly qualified guardian or limited guardian. The court shall make such orders or decrees as it shall deem necessary to protect and secure the interest of the ((infant)) minor or ((allegedly incompetent or disabled)) alleged incapacitated person ((in the property sought to be condemned or the compensation which shall be awarded therefore)).

      Sec. 7. RCW 11.16.083 and 1977 ex.s. c 234 s 1 are each amended to read as follows:

      Notwithstanding any other provision of this title, no notice of any hearing in probate or probate proceeding need be given to any legally competent person who is interested in any hearing in any probate as an heir, legatee, or devisee of the decedent who has in person or by attorney waived in writing notice of such hearing or proceeding. Such waiver of notice may apply to either a specific hearing or proceeding, or to any and all hearings and proceedings to be held during the administration of the estate in which event such waiver of notice shall be of continuing effect unless subsequently revoked by the filing of a written notice of revocation of the waiver and the mailing of a copy thereof to the personal representative and his or her attorney. Unless notice of a hearing is required to be given by publication, if all persons entitled to notice thereof shall have waived such notice, the court may hear the matter forthwith. A guardian of the estate or a guardian ad litem may make such waivers on behalf of ((his incompetent)) an incapacitated person, as defined in RCW 11.88.010, and a trustee may make such waivers on behalf of any competent or ((incompetent)) incapacitated beneficiary of his or her trust. A consul or other representative of a foreign government, whose appearance has been entered as provided by law on behalf of any person residing in a foreign country, may make such waiver of notice on behalf of such person. Any person who submits to the jurisdiction of the court in any hearing shall be deemed to have waived notice thereof.

      Sec. 8. RCW 11.88.030 and 1995 c 297 s 1 are each amended to read as follows:

      (1) Any person or entity may petition for the appointment of a qualified person, trust company, national bank, or nonprofit corporation authorized in RCW 11.88.020 ((as now or hereafter amended)) as the guardian or limited guardian of an incapacitated person. No liability for filing a petition for guardianship or limited guardianship shall attach to a petitioner acting in good faith and upon reasonable basis. A petition for guardianship or limited guardianship shall state:

      (a) The name, age, residence, and post office address of the alleged incapacitated person;

      (b) The nature of the alleged incapacity in accordance with RCW 11.88.010;

      (c) The approximate value and description of property, including any compensation, pension, insurance, or allowance, to which the alleged incapacitated person may be entitled;

      (d) Whether there is, in any state, a guardian or limited guardian, or pending guardianship action for the person or estate of the alleged incapacitated person;

      (e) The residence and post office address of the person whom petitioner asks to be appointed guardian or limited guardian;

      (f) The names and addresses, and nature of the relationship, so far as known or can be reasonably ascertained, of the persons most closely related by blood or marriage to the alleged incapacitated person;

      (g) The name and address of the person or facility having the care and custody of the alleged incapacitated person;

      (h) The reason why the appointment of a guardian or limited guardian is sought and the interest of the petitioner in the appointment, and whether the appointment is sought as guardian or limited guardian of the person, the estate, or both((, and why no alternative to guardianship is appropriate));

      (i) A description of any alternate arrangements previously made by the alleged incapacitated person, such as trusts or powers of attorney, including identifying any guardianship nominations contained in a power of attorney, and why a guardianship is nevertheless necessary;

      (j) The nature and degree of the alleged incapacity and the specific areas of protection and assistance requested and the limitation of rights requested to be included in the court's order of appointment;

      (((j))) (k) The requested term of the limited guardianship to be included in the court's order of appointment;

      (((k))) (l) Whether the petitioner is proposing a specific individual to act as guardian ad litem and, if so, the individual's knowledge of or relationship to any of the parties, and why the individual is proposed.

      (2)(a) The attorney general may petition for the appointment of a guardian or limited guardian in any case in which there is cause to believe that a guardianship is necessary and no private party is able and willing to petition.

      (b) Prepayment of a filing fee shall not be required in any guardianship or limited guardianship brought by the attorney general. Payment of the filing fee shall be ordered from the estate of the incapacitated person at the hearing on the merits of the petition, unless in the judgment of the court, such payment would impose a hardship upon the incapacitated person, in which case the filing shall be waived.

      (3) No filing fee shall be charged by the court for filing either a petition for guardianship or a petition for limited guardianship if the petition alleges that the alleged incapacitated person has total assets of a value of less than three thousand dollars.

      (4)(a) Notice that a guardianship proceeding has been commenced shall be personally served upon the alleged incapacitated person and the guardian ad litem along with a copy of the petition for appointment of a guardian. Such notice shall be served not more than five court days after the petition has been filed.

      (b) Notice under this subsection shall include a clear and easily readable statement of the legal rights of the alleged incapacitated person that could be restricted or transferred to a guardian by a guardianship order as well as the right to counsel of choice and to a jury trial on the issue of incapacity. Such notice shall be in substantially the following form and shall be in capital letters, double-spaced, and in a type size not smaller than ten-point type:


IMPORTANT NOTICE

PLEASE READ CAREFULLY


A PETITION TO HAVE A GUARDIAN APPOINTED FOR YOU HAS BEEN FILED IN THE . . . . . . COUNTY SUPERIOR COURT BY . . . . . . IF A GUARDIAN IS APPOINTED, YOU COULD LOSE ONE OR MORE OF THE FOLLOWING RIGHTS:

      (1) TO MARRY OR DIVORCE;

      (2) TO VOTE OR HOLD AN ELECTED OFFICE;

      (3) TO ENTER INTO A CONTRACT OR MAKE OR REVOKE A WILL;

      (4) TO APPOINT SOMEONE TO ACT ON YOUR BEHALF;

      (5) TO SUE AND BE SUED OTHER THAN THROUGH A GUARDIAN;

      (6) TO POSSESS A LICENSE TO DRIVE;

      (7) TO BUY, SELL, OWN, MORTGAGE, OR LEASE PROPERTY;

      (8) TO CONSENT TO OR REFUSE MEDICAL TREATMENT;

      (9) TO DECIDE WHO SHALL PROVIDE CARE AND ASSISTANCE;

      (10) TO MAKE DECISIONS REGARDING SOCIAL ASPECTS OF YOUR LIFE.


UNDER THE LAW, YOU HAVE CERTAIN RIGHTS.


YOU HAVE THE RIGHT TO BE REPRESENTED BY A LAWYER OF YOUR OWN CHOOSING. THE COURT WILL APPOINT A LAWYER TO REPRESENT YOU IF YOU ARE UNABLE TO PAY OR PAYMENT WOULD RESULT IN A SUBSTANTIAL HARDSHIP TO YOU.


YOU HAVE THE RIGHT TO ASK FOR A JURY TO DECIDE WHETHER OR NOT YOU NEED A GUARDIAN TO HELP YOU.


YOU HAVE THE RIGHT TO BE PRESENT IN COURT AND TESTIFY WHEN THE HEARING IS HELD TO DECIDE WHETHER OR NOT YOU NEED A GUARDIAN.


      (5) All petitions filed under the provisions of this section shall be heard within sixty days unless an extension of time is requested by a party or the guardian ad litem within such sixty day period and granted for good cause shown. If an extension is granted, the court shall set a new hearing date.

      Sec. 9. RCW 11.88.045 and 1995 c 297 s 3 are each amended to read as follows:

      (1)(a) Alleged incapacitated individuals shall have the right to be represented by counsel of their choosing at any stage in guardianship proceedings. The court shall provide counsel to represent any alleged incapacitated person at public expense when either: (i) The individual is unable to afford counsel, or (ii) the expense of counsel would result in substantial hardship to the individual, or (iii) the individual does not have practical access to funds with which to pay counsel. If the individual can afford counsel but lacks practical access to funds, the court shall provide counsel and may impose a reimbursement requirement as part of a final order. When, in the opinion of the court, the rights and interests of an alleged or adjudicated incapacitated person cannot otherwise be adequately protected and represented, the court on its own motion shall appoint an attorney at any time to represent such person. Counsel shall be provided as soon as practicable after a petition is filed and long enough before any final hearing to allow adequate time for consultation and preparation. Absent a convincing showing in the record to the contrary, a period of less than three weeks shall be presumed by a reviewing court to be inadequate time for consultation and preparation.

      (b) Counsel for an alleged incapacitated individual shall act as an advocate for the client and shall not substitute counsel's own judgment for that of the client on the subject of what may be in the client's best interests. Counsel's role shall be distinct from that of the guardian ad litem, who is expected to promote the best interest of the alleged incapacitated individual, rather than the alleged incapacitated individual's expressed preferences.

      (c) If an alleged incapacitated person is represented by counsel and does not communicate with counsel, counsel may ask the court for leave to withdraw for that reason. If satisfied, after affording the alleged incapacitated person an opportunity for a hearing, that the request is justified, the court may grant the request and allow the case to proceed with the alleged incapacitated person unrepresented.

      (2) During the pendency of any guardianship, any attorney purporting to represent a person alleged or adjudicated to be incapacitated shall petition to be appointed to represent the incapacitated or alleged incapacitated person. Fees for representation described in this section shall be subject to approval by the court pursuant to the provisions of RCW 11.92.180.

      (3) The alleged incapacitated person is further entitled to testify and present evidence and, upon request, entitled to a jury trial on the issues of his or her alleged incapacity. The standard of proof to be applied in a contested case, whether before a jury or the court, shall be that of clear, cogent, and convincing evidence.

      (4) In all proceedings for appointment of a guardian or limited guardian, the court must be presented with a written report from a physician licensed to practice under chapter 18.71 or 18.57 RCW or licensed or certified psychologist selected by the guardian ad litem. If the alleged incapacitated person opposes the health care professional selected by the guardian ad litem to prepare the medical report, then the guardian ad litem must either use the health care professional selected by the alleged incapacitated person or obtain court approval, following a hearing, for the guardian ad litem's selection. The physician or psychologist shall have personally examined and interviewed the alleged incapacitated person within thirty days of preparation of the report to the court and shall have expertise in the type of disorder or incapacity the alleged incapacitated person is believed to have. The report shall contain the following information and shall be set forth in substantially the following format:

      (a) The name and address of the examining physician or psychologist;

      (b) The education and experience of the physician or psychologist pertinent to the case;

      (c) The dates of examinations of the alleged incapacitated person;

      (d) A summary of the relevant medical, functional, neurological, psychological, or psychiatric history of the alleged incapacitated person as known to the examining physician or psychologist;

      (e) The findings of the examining physician or psychologist as to the condition of the alleged incapacitated person;

      (f) Current medications;

      (g) The effect of current medications on the alleged incapacitated person's ability to understand or participate in guardianship proceedings;

      (h) Opinions on the specific assistance the alleged incapacitated person needs;

      (i) Identification of persons with whom the physician or psychologist has met or spoken regarding the alleged incapacitated person.

      The court shall not enter an order appointing a guardian or limited guardian until a medical or psychological report meeting the above requirements is filed.

      The requirement of filing a medical report is waived if the basis of the guardianship is minority.

      (5) During the pendency of an action to establish a guardianship, a petitioner or any person may move for temporary relief under chapter 7.40 RCW, to protect the alleged incapacitated person from abuse, neglect, abandonment, or exploitation, as those terms are defined in RCW 74.34.020, or to address any other emergency needs of the alleged incapacitated person. Any alternative arrangement executed before filing the petition for guardianship shall remain effective unless the court grants the relief requested under chapter 7.40 RCW, or unless, following notice and a hearing at which all parties directly affected by the arrangement are present, the court finds by clear, cogent, and convincing evidence that the alternative arrangement should not remain effective.

      Sec. 10. RCW 11.88.090 and 1995 c 297 s 4 are each amended to read as follows:

      (1) Nothing contained in RCW 11.88.080 through 11.88.120, 11.92.010 through 11.92.040, 11.92.060 through 11.92.120, 11.92.170, and 11.92.180((, as now or hereafter amended,)) shall affect or impair the power of any court to appoint a guardian ad litem to defend the interests of any incapacitated person interested in any suit or matter pending therein, or to commence and prosecute any suit in his or her behalf.

      (2) Upon receipt of a petition for appointment of guardian or limited guardian, except as provided herein, the court shall appoint a guardian ad litem to represent the best interests of the alleged incapacitated person, who shall be a person found or known by the court to:

      (a) Be free of influence from anyone interested in the result of the proceeding; and

      (b) Have the requisite knowledge, training, or expertise to perform the duties required by this section.

      The guardian ad litem shall within five days of receipt of notice of appointment file with the court and serve each party with a statement including: His or her background and qualifications; his or her hourly rate, if compensated; and whether or not he or she is or has been a guardian, a guardian ad litem, or an attorney in another action under Title 11, 13, or 26 RCW in which any of the attorneys for the parties were involved. Upon receipt of such statement, any party or the court may, within three days, move for substitution of the guardian ad litem upon a showing of lack of expertise necessary for the proceeding, an hourly rate higher than what is reasonable for the particular proceeding, or a conflict of interest.

      No guardian ad litem need be appointed when a parent is petitioning for a guardian or a limited guardian to be appointed for his or her minor child and the minority of the child, as defined by RCW 11.92.010, is the sole basis of the petition. The order appointing the guardian ad litem shall recite the duties set forth in subsection (((5))) (4) of this section. The appointment of a guardian ad litem shall have no effect on the legal competency of the alleged incapacitated person and shall not overcome the presumption of competency or full legal and civil rights of the alleged incapacitated person.

      (3)(a) The superior court of each county shall develop ((by September 1, 1991,)) and maintain a registry of persons who are willing and qualified to serve as guardians ad litem in guardianship matters. The court shall choose as guardian((s)) ad litem ((only)) a person((s)) whose name((s)) appears on the registry in a system of consistent rotation, except in extraordinary circumstances such as the need for particular expertise. The court shall develop procedures for periodic review of the persons on the registry and for probation, suspension, or removal of persons on the registry for failure to perform properly their duties as guardian ad litem. In the event the court does not select the person next on the list, it shall include in the order of appointment a written reason for its decision.

      (b) To be eligible for the registry a person shall:

      (i) Present a written statement ((of)) outlining his or her background and qualifications ((describing)). The background statement shall include, but is not limited to, the following information:

      (A) Level of formal education;

      (B) Training related to the guardian's duties;

      (C) Number of years' experience as a guardian ad litem;

      (D) Number of appointments as a guardian ad litem and the county or counties of appointment;

      (E) Criminal history, as defined in RCW 9.94A.030; and

      (F) Evidence of the person's knowledge, training, and experience in each of the following: Needs of impaired elderly people, physical disabilities, mental illness, developmental disabilities, and other areas relevant to the needs of incapacitated persons, legal procedure, and the requirements of chapters 11.88 and 11.92 RCW.

      The written statement of qualifications shall include a statement of the number of times the guardian ad litem has been removed for failure to perform his or her duties as guardian ad litem; and

      (ii) Complete ((a training program adopted by the court, or, in the absence of a locally adopted program, a candidate for inclusion upon the registry shall have completed a)) the model training program as described in (d) of this subsection.

      (c) ((The superior court of each county shall approve training programs designed to:

      (i) Train otherwise qualified human service professionals in those aspects of legal procedure and the requirements of chapters 11.88 and 11.92 RCW with which a guardian ad litem should be familiar;

      (ii) Train otherwise qualified legal professionals in those aspects of medicine, social welfare, and social service delivery systems with which a guardian ad litem should be familiar.)) The background and qualification information shall be updated annually.

      (d) ((The superior court of each county may approve a guardian ad litem training program on or before June 1, 1991.)) The department of social and health services((, aging and adult services administration,)) shall convene an advisory group to develop a model guardian ad litem training program and shall update the program biennially. The advisory group shall consist of representatives from consumer, advocacy, and professional groups knowledgeable in developmental disabilities, neurological impairment, physical disabilities, mental illness, aging, legal, court administration, the Washington state bar association, and other interested parties.

      (e) ((Any)) The superior court ((that has not adopted a guardian ad litem training program by September 1, 1991,)) shall require utilization of ((a)) the model program developed by the advisory group as described in (d) of this subsection, to assure that candidates applying for registration as a qualified guardian ad litem shall have satisfactorily completed training to attain these essential minimum qualifications to act as guardian ad litem.

      (4) ((The guardian ad litem's written statement of qualifications required by RCW 11.88.090(3)(b)(i) shall be made part of the record in each matter in which the person is appointed guardian ad litem.

      (5))) The guardian ad litem appointed pursuant to this section shall have the following duties:

      (a) To meet and consult with the alleged incapacitated person as soon as practicable following appointment and explain, in language which such person can reasonably be expected to understand, the substance of the petition, the nature of the resultant proceedings, the person's right to contest the petition, the identification of the proposed guardian or limited guardian, the right to a jury trial on the issue of his or her alleged incapacity, the right to independent legal counsel as provided by RCW 11.88.045, and the right to be present in court at the hearing on the petition;

      (b) To obtain a written report according to RCW 11.88.045; and such other written or oral reports from other qualified professionals as are necessary to permit the guardian ad litem to complete the report required by this section;

      (c) To meet with the person whose appointment is sought as guardian or limited guardian and ascertain:

      (i) The proposed guardian's knowledge of the duties, requirements, and limitations of a guardian; and

      (ii) The steps the proposed guardian intends to take or has taken to identify and meet the needs of the alleged incapacitated person;

      (d) To consult as necessary to complete the investigation and report required by this section with those known relatives, friends, or other persons the guardian ad litem determines have had a significant, continuing interest in the welfare of the alleged incapacitated person;

      (e) To investigate alternate arrangements made, or which might be created, by or on behalf of the alleged incapacitated person, such as revocable or irrevocable trusts, or durable powers of attorney; whether good cause exists for any such arrangements to be discontinued; and why such arrangements should not be continued or created in lieu of a guardianship;

      (f) To provide the court with a written report which shall include the following:

      (i) A description of the nature, cause, and degree of incapacity, and the basis upon which this judgment was made;

      (ii) A description of the needs of the incapacitated person for care and treatment, the probable residential requirements of the alleged incapacitated person and the basis upon which these findings were made;

      (iii) An evaluation of the appropriateness of the guardian or limited guardian whose appointment is sought and a description of the steps the proposed guardian has taken or intends to take to identify and meet current and emerging needs of the incapacitated person;

      (iv) A description of any alternative arrangements previously made by the alleged incapacitated person or which could be made, and whether and to what extent such alternatives should be used in lieu of a guardianship, and if the guardian ad litem is recommending discontinuation of any such arrangements, specific findings as to why such arrangements are contrary to the best interest of the alleged incapacitated person;

      (v) A description of the abilities of the alleged incapacitated person and a recommendation as to whether a guardian or limited guardian should be appointed. If appointment of a limited guardian is recommended, the guardian ad litem shall recommend the specific areas of authority the limited guardian should have and the limitations and disabilities to be placed on the incapacitated person;

      (((v))) (vi) An evaluation of the person's mental ability to rationally exercise the right to vote and the basis upon which the evaluation is made;

      (((vi))) (vii) Any expression of approval or disapproval made by the alleged incapacitated person concerning the proposed guardian or limited guardian or guardianship or limited guardianship;

      (((vii))) (viii) Identification of persons with significant interest in the welfare of the alleged incapacitated person who should be advised of their right to request special notice of proceedings pursuant to RCW 11.92.150; and

      (((viii))) (ix) Unless independent counsel has appeared for the alleged incapacitated person, an explanation of how the alleged incapacitated person responded to the advice of the right to jury trial, to independent counsel and to be present at the hearing on the petition.

      Within forty-five days after notice of commencement of the guardianship proceeding has been served upon the guardian ad litem, and at least ((ten)) fifteen days before the hearing on the petition, ((unless an extension or reduction of time has been granted by the court for good cause,)) the guardian ad litem shall file its report and send a copy to the alleged incapacitated person and his or her counsel, spouse, all children not residing with a notified person, those persons described in (((e)(vii))) (f)(viii) of this subsection, and persons who have filed a request for special notice pursuant to RCW 11.92.150. If the guardian ad litem needs additional time to finalize his or her report, then the guardian ad litem shall petition the court for a postponement of the hearing or, with the consent of all other parties, an extension or reduction of time for filing the report. If the hearing does not occur within sixty days of filing the petition, then upon the two-month anniversary of filing the petition and on or before the same day of each following month until the hearing, the guardian ad litem shall file interim reports summarizing his or her activities on the proceeding during that time period as well as fees and costs incurred;

      (((f))) (g) To advise the court of the need for appointment of counsel for the alleged incapacitated person within five court days after the meeting described in (a) of this subsection unless (i) counsel has appeared, (ii) the alleged incapacitated person affirmatively communicated a wish not to be represented by counsel after being advised of the right to representation and of the conditions under which court-provided counsel may be available, or (iii) the alleged incapacitated person was unable to communicate at all on the subject, and the guardian ad litem is satisfied that the alleged incapacitated person does not affirmatively desire to be represented by counsel.

      (((6))) (5) If the petition is brought by an interested person or entity requesting the appointment of some other qualified person or entity and a prospective guardian or limited guardian cannot be found, the court shall order the guardian ad litem to investigate the availability of a possible guardian or limited guardian and to include the findings in a report to the court pursuant to ((RCW 11.88.090(5)(e) as now or hereafter amended)) subsection (4)(f) of this section.

      (6) The parties to the proceeding may file responses to the guardian ad litem report with the court and deliver such responses to the other parties and the guardian ad litem at any time up to the second day prior to the hearing. If a guardian ad litem fails to file his or her report in a timely manner, the hearing shall be continued to give the court and the parties at least fifteen days before the hearing to review the report. At any time during the proceeding upon motion of any party or on the court's own motion, the court may remove the guardian ad litem for failure to perform his or her duties as specified in this chapter, provided that the guardian ad litem shall have five days' notice of any motion to remove before the court enters such order. In addition, the court in its discretion may reduce a guardian ad litem's fee for failure to carry out his or her duties.

      (7) The court appointed guardian ad litem shall have the authority, in the event that the alleged incapacitated person is in need of emergency life-saving medical services, and is unable to consent to such medical services due to incapacity pending the hearing on the petition to give consent for such emergency life-saving medical services on behalf of the alleged incapacitated person.

      (8) The court appointed guardian ad litem shall have the authority, to move for temporary relief under chapter 7.40 RCW to protect the alleged incapacitated person from abuse, neglect, abandonment, or exploitation, as those terms are defined in RCW 74.34.020, or to address any other emergency needs of the alleged incapacitated person. Any alternative arrangement executed before filing the petition for guardianship shall remain effective unless the court grants the relief requested under chapter 7.40 RCW, or unless, following notice and a hearing at which all parties directly affected by the arrangement are present, the court finds by clear, cogent, and convincing evidence that the alternative arrangement should not remain effective.

      (9) The guardian ad litem shall receive a fee determined by the court. The fee shall be charged to the alleged incapacitated person unless the court finds that such payment would result in substantial hardship upon such person, in which case the county shall be responsible for such costs: PROVIDED, That if no guardian or limited guardian is appointed the court may charge such fee to the petitioner or the alleged incapacitated person, or divide the fee, as it deems just; and if the petition is found to be frivolous or not brought in good faith, the guardian ad litem fee shall be charged to the petitioner. The court shall not be required to provide for the payment of a fee to any salaried employee of a public agency.

      (((9))) (10) Upon the presentation of the guardian ad litem report and the entry of an order either dismissing the petition for appointment of guardian or limited guardian or appointing a guardian or limited guardian, the guardian ad litem shall be dismissed and shall have no further duties or obligations unless otherwise ordered by the court. If the court orders the guardian ad litem to perform further duties or obligations, they shall not be performed at county expense.

      (11) The guardian ad litem shall appear in person at the final hearing on the petition unless all parties provide a written waiver of the requirement to appear.

      (12) At any hearing the court may consider whether or not any person who acts as a fiduciary has breached a statutory or fiduciary duty or is unable to continue.

      Sec. 11. RCW 11.92.190 and 1977 ex.s. c 309 s 14 are each amended to read as follows:

      No residential treatment facility which provides nursing or other care may detain a person within such facility against their will. Any court order, other than an order issued in accordance with the involuntary treatment provisions of chapters 10.77, 71.05, and 72.23 RCW, which purports to authorize such involuntary detention or purports to authorize a guardian or limited guardian to consent to such involuntary detention on behalf of an ((incompetent or disabled)) incapacitated person shall be void and of no force or effect. This section does not apply to the detention of a minor as provided in chapter 70.96A or 71.34 RCW.

      Nothing in this section shall be construed to require a court order authorizing placement of an ((incompetent or disabled)) incapacitated person in a residential treatment facility if such order is not otherwise required by law: PROVIDED, That notice of any residential placement of an ((incompetent or disabled)) incapacitated person shall be served, either before or after placement, by the guardian or limited guardian on such person, the guardian ad litem of record, and any attorney of record.

      NEW SECTION. Sec. 12. A new section is added to chapter 2.08 RCW to read as follows:

      In judicial districts with a population of more than six hundred thousand, attorneys may not serve as a superior court judge pro tempore or commissioner pro tempore while appointed to or serving on a case as a guardian ad litem for compensation under Title 11, 13, or 26 RCW.

      Sec. 13. RCW 13.34.100 and 1994 c 110 s 2 are each amended to read as follows:

      (1) The court shall appoint a guardian ad litem for a child who is the subject of an action under this chapter, unless a court for good cause finds the appointment unnecessary. The requirement of a guardian ad litem may be deemed satisfied if the child is represented by independent counsel in the proceedings.

      (2) If the court does not have available to it a guardian ad litem program with a sufficient number of volunteers, the court may appoint a suitable person to act as guardian ad litem for the child under this chapter. Another party to the proceeding or the party's employee or representative shall not be so appointed.

      (3) Each guardian ad litem program shall maintain a background information record for each guardian ad litem in the program. The background file shall include, but is not limited to, the following information:

      (a) Level of formal education;

      (b) Training related to the guardian's duties;

      (c) Number of years' experience as a guardian ad litem;

      (d) Number of appointments as a guardian ad litem and the county or counties of appointment; and

      (e) Criminal history, as defined in RCW 9.94A.030. The background statement shall not include identifying information that may be used to harm a guardian ad litem, such as home addresses and home telephone numbers, and for volunteer guardians ad litem the court may allow the use of maiden names or pseudonyms as necessary for their safety.

      The background information report shall be updated annually. As a condition of appointment, the guardian ad litem's background information record shall be made available to the court. If the appointed guardian ad litem is not a member of a guardian ad litem program the person shall provide the background information directly to the court. Paid guardians ad litem also shall immediately provide the background information record to the parties or their attorneys. If a guardian ad litem or court-appointed special advocate is a member of a volunteer program, a party or the party's attorney may file a motion requesting the background information for good cause. The moving party must notify the other parties and the program of the motion and any hearing on the motion according to applicable court rules. Upon a showing of good cause for allowing the moving party access to the background information, the court shall grant the motion.

      (4) The appointment of the guardian ad litem shall remain in effect until the court discharges the appointment or no longer has jurisdiction, whichever comes first. The guardian ad litem may also be discharged upon entry of an order of guardianship.

      (5) A guardian ad litem through counsel, or as otherwise authorized by the court, shall have the right to present evidence, examine and cross-examine witnesses, and to be present at all hearings. A guardian ad litem shall receive copies of all pleadings and other documents filed or submitted to the court, and notice of all hearings according to court rules. The guardian ad litem shall receive all notice contemplated for a parent or other party in all proceedings under this chapter.

      (6) If the child requests legal counsel and is age twelve or older, or if the guardian ad litem or the court determines that the child needs to be independently represented by counsel, the court may appoint an attorney to represent the child's position.

      (7) For the purposes of child abuse prevention and treatment act (42 U.S.C. Secs. 5101 et seq.) grants to this state under P.L. 93-247, or any related state or federal legislation, a person appointed pursuant to RCW 13.34.100 shall be deemed a guardian ad litem to represent the best interests of the minor in proceedings before the court.

      (8) When a volunteer guardian ad litem or a court-appointed special advocate is ordered on a case, the program shall give the court the name of the person assigned and the assignment shall be effective immediately. Pending the assignment of a volunteer guardian ad litem or court-appointed special advocate, the volunteer guardian ad litem program may serve as the guardian ad litem. If a party reasonably believes the court-appointed special advocate or volunteer guardian ad litem is incompetent, the party may request a review of the appointment by the program upon a showing of good cause. The program shall complete the review within five judicial days. If the party seeking review is not satisfied with the outcome of the review, the party may file a motion with the court for the removal of the court-appointed special advocate or volunteer guardian ad litem.

      Sec. 14. RCW 13.34.120 and 1994 c 288 s 2 are each amended to read as follows:

      (1) To aid the court in its decision on disposition, a social study, consisting of a written evaluation of matters relevant to the disposition of the case, shall be made by the person or agency filing the petition. The study shall include all social records and may also include facts relating to the child's cultural heritage, and shall be made available to the court. The court shall consider the social file, social study, guardian ad litem report, the court-appointed special advocate's report, if any, and any reports filed by a party at the disposition hearing in addition to evidence produced at the fact-finding hearing. At least ten working days before the disposition hearing, the department shall mail to the parent and his or her attorney a copy of the agency's social study and proposed service plan, which shall be in writing or in a form understandable to the parents or custodians. In addition, the department shall provide an opportunity for parents to review and comment on the plan at the community service office. If the parents disagree with the agency's plan or any part thereof, the parents shall submit to the court at least twenty-four hours before the hearing, in writing, or signed oral statement, an alternative plan to correct the problems which led to the finding of dependency. This section shall not interfere with the right of the parents or custodians to submit oral arguments regarding the disposition plan at the hearing.

      (2) In addition to the requirements set forth in subsection (1) of this section, a predisposition study to the court in cases of dependency alleged pursuant to RCW ((13.34.030(2))) 13.34.030(4) (b) or (c) shall contain the following information:

      (a) A statement of the specific harm or harms to the child that intervention is designed to alleviate;

      (b) A description of the specific programs, for both the parents and child, that are needed in order to prevent serious harm to the child; the reasons why such programs are likely to be useful; the availability of any proposed services; and the agency's overall plan for ensuring that the services will be delivered;

      (c) If removal is recommended, a full description of the reasons why the child cannot be protected adequately in the home, including a description of any previous efforts to work with the parents and the child in the home; the in-home treatment programs which have been considered and rejected; the preventive services that have been offered or provided and have failed to prevent the need for out-of-home placement, unless the health, safety, and welfare of the child cannot be protected adequately in the home; and the parents' attitude toward placement of the child;

      (d) A statement of the likely harms the child will suffer as a result of removal. This section should include an exploration of the nature of the parent-child attachment and the meaning of separation and loss to both the parents and the child;

      (e) A description of the steps that will be taken to minimize harm to the child that may result if separation occurs; and

      (f) Behavior that will be expected before determination that supervision of the family or placement is no longer necessary.

      Sec. 15. RCW 26.12.175 and 1993 c 289 s 4 are each amended to read as follows:

      (1)(a) The court may appoint a guardian ad litem to represent the interests of a minor or dependent child when the court believes the appointment of a guardian ad litem is necessary to protect the best interests of the child in any proceeding under this chapter. The family court services professionals may also make a recommendation to the court regarding whether a guardian ad litem should be appointed for the child. The court may appoint a guardian ad litem from the court-appointed special advocate program, if that program exists in the county.

      (b) Unless otherwise ordered, the guardian ad litem's role is to investigate and report to the court concerning parenting arrangements for the child, and to represent the child's best interests. The court may require the guardian ad litem to provide periodic reports to the parties regarding the status of his or her investigation. The guardian ad litem shall file his or her report at least sixty days prior to trial.

      (c) The court shall enter an order for costs, fees, and disbursements to cover the costs of the guardian ad litem. The court may order either or both parents to pay for the costs of the guardian ad litem, according to their ability to pay. If both parents are indigent, the county shall bear the cost of the guardian, subject to appropriation for guardians' ad litem services by the county legislative authority. Guardians ad litem who are not volunteers shall provide the parties with an itemized accounting of their time and billing for services each month.

      (2)(a) If the guardian ad litem appointed is from the county court-appointed special advocate program, the program shall supervise any guardian ad litem assigned to the case. The court-appointed special advocate program shall be entitled to notice of all proceedings in the case.

      (b) The legislative authority of each county may authorize creation of a court-appointed special advocate program. The county legislative authority may adopt rules of eligibility for court-appointed special advocate program services.

      (3) Each guardian ad litem program shall maintain a background information record for each guardian ad litem in the program. The background file shall include, but is not limited to, the following information:

      (a) Level of formal education;

      (b) Training related to the guardian's duties;

      (c) Number of years' experience as a guardian ad litem;

      (d) Number of appointments as a guardian ad litem and county or counties of appointment; and

      (e) Criminal history, as defined in RCW 9.94A.030. The background statement shall not include identifying information that may be used to harm a guardian ad litem, such as home addresses and home telephone numbers, and for volunteer guardians ad litem the court may allow the use of maiden names or pseudonyms as necessary for their safety.

      The background information report shall be updated annually. As a condition of appointment, the guardian ad litem's background information record shall be made available to the court. If the appointed guardian ad litem is not a member of a guardian ad litem program the person shall provide the background information to the court. Paid guardians ad litem also shall immediately provide the background information record to the parties or their attorneys. If a guardian ad litem or court-appointed special advocate is a member of a volunteer program, a party or the party's attorney may file a motion requesting the background information for good cause. The moving party must notify the other parties and the program of the motion and any hearing on the motion according to applicable court rules. Upon a showing of good cause for allowing the moving party access to the background information, the court shall grant the motion.

      (4) When a volunteer guardian ad litem or a court-appointed special advocate is ordered on a case, the program shall give the court the name of the person assigned and the assignment shall be effective immediately. Pending the assignment of a volunteer guardian ad litem or court-appointed special advocate, the volunteer guardian ad litem program may serve as the guardian ad litem. If a party reasonably believes the court-appointed special advocate or volunteer guardian ad litem is incompetent, the party may request a review of the appointment by the program upon a showing of good cause. The program shall complete the review within five judicial days. If the party seeking review is not satisfied with the outcome of the review, the party may file a motion with the court for the removal of the court-appointed special advocate or volunteer guardian ad litem.

      Sec. 16. RCW 26.44.053 and 1994 c 110 s 1 are each amended to read as follows:

      (1) In any judicial proceeding under this chapter or chapter 13.34 RCW in which it is alleged that a child has been subjected to child abuse or neglect, the court shall appoint a guardian ad litem for the child as provided in chapter 13.34 RCW. The requirement of a guardian ad litem may be deemed satisfied if the child is represented by counsel in the proceedings.

      (2) At any time prior to or during a hearing in such a case, the court may, on its own motion, or the motion of the guardian ad litem, or other parties, order the examination by a physician, psychologist, or psychiatrist, of any parent or child or other person having custody of the child at the time of the alleged child abuse or neglect, if the court finds such an examination is necessary to the proper determination of the case. The hearing may be continued pending the completion of such examination. The physician, psychologist, or psychiatrist conducting such an examination may be required to testify concerning the results of such examination and may be asked to give his or her opinion as to whether the protection of the child requires that he or she not be returned to the custody of his or her parents or other persons having custody of him or her at the time of the alleged child abuse or neglect. Persons so testifying shall be subject to cross-examination as are other witnesses. No information given at any such examination of the parent or any other person having custody of the child may be used against such person in any subsequent criminal proceedings against such person or custodian concerning the abuse or neglect of the child.

      (3) A parent or other person having legal custody of a child alleged to be abused or neglected shall be a party to any proceeding that may impair or impede such person's interest in and custody or control of the child.

      NEW SECTION. Sec. 17. A new section is added to chapter 13.34 RCW to read as follows:

      (1) All paid guardians ad litem appointed under this chapter, after January 1, 1998, shall have completed the comprehensive state-wide curriculum developed by the office of the administrator for the courts, under RCW 2.56.030(16), prior to their appointment.

      (2)(a) Each guardian ad litem program for compensated guardians ad litem shall establish a rotational registry system for the appointment of guardians ad litem. If a judicial district does not have a program the court shall establish the rotational registry system. Guardians ad litem shall be selected from the registry except in exceptional circumstances as determined and documented by the court. The parties may make a joint recommendation for the appointment of a guardian ad litem from the registry.

      (b) In judicial districts with a population over one hundred thousand, a list of three names shall be selected from the registry and given to the parties along with the background information as specified in RCW 13.34.100(3), including their hourly rate for services. Each party may, within three judicial days, strike one name from the list. If more than one name remains on the list, the court shall make the appointment from the names on the list. In the event all three names are stricken the person whose name appears next on the registry shall be appointed.

      (c) If a party reasonably believes that the appointed guardian ad litem lacks the necessary expertise for the proceeding, charges an hourly rate higher than what is reasonable for the particular proceeding, or has a conflict of interest, the party may, within three judicial days from the appointment, move for substitution of the appointed guardian ad litem by filing a motion with the court.

      (3) The rotational registry system shall not apply to court-appointed special advocate programs.

      NEW SECTION. Sec. 18. A new section is added to chapter 26.12 RCW to read as follows:

      (1) All paid guardians ad litem appointed under this chapter, after January 1, 1998, shall have completed the comprehensive state-wide curriculum developed by the office of the administrator for the courts, under RCW 2.56.030(16), prior to their appointment.

      (2)(a) Each guardian ad litem program for compensated guardians ad litem shall establish a rotational registry system for the appointment of guardians ad litem. If a judicial district does not have a program the court shall establish the rotational registry system. Guardians ad litem shall be selected from the registry except in exceptional circumstances as determined and documented by the court. The parties may make a joint recommendation for the appointment of a guardian ad litem from the registry.

      (b) In judicial districts with a population over one hundred thousand, a list of three names shall be selected from the registry and given to the parties along with the background information as specified in RCW 26.12.175(3), including their hourly rate for services. Each party may, within three judicial days, strike one name from the list. If more than one name remains on the list, the court shall make the appointment from the names on the list. In the event all three names are stricken the person whose name appears next on the registry shall be appointed.

      (c) If a party reasonably believes that the appointed guardian ad litem lacks the necessary expertise for the proceeding, charges an hourly rate higher than what is reasonable for the particular proceeding, or has a conflict of interest, the party may, within three judicial days from the appointment, move for substitution of the appointed guardian ad litem by filing a motion with the court.

      (3) The rotational registry system shall not apply to court-appointed special advocate programs.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Hargrove moved that the Senate refuse to concur in the House amendment to Engrossed Substitute Senate Bill No. 6257 and requests of the House a conference thereon.

      Debate ensued.


MOTION


      Senator West moved that the Senate do concur in the House amendment to Engrossed Substitute Senate Bill No. 6257.


MOTION


      On motion of Senator Snyder, further consideration of Engrossed Substitute Senate Bill No. 6257 was deferred.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6339 with the following amendment(s):

      On page 4, line 29, after "program" strike "or the board's alcohol server training program"

      On page 4, line 30, after "1993," strike "and prior to January 1, 1997,", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Pelz moved that the Senate refuse to concur in the House amendments to Senate Bill No. 6339 and asks the House to recede therefrom.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Pelz that the Senate refuse to concur in the House amendments to Senate Bill No. 6339 and asks the House to recede therefrom.

      The motion by Senator Pelz carried and the Senate refuses to concur in the House amendments to Senate Bill No. 6339 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

March 1, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6505 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 35.23 RCW to read as follows:

      No person shall be eligible to or hold an elective office in a city unless the person is a resident and registered voter therein.

      Sec. 2. RCW 35.02.130 and 1994 c 154 s 308 are each amended to read as follows:

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

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

      During this interim period, the newly formed city or town and its governing body shall be subject to the following as though the city or town were officially incorporated: RCW 4.24.470 relating to immunity; chapter 42.17 RCW relating to open government; chapter 40.14 RCW relating to the preservation and disposition of public records; chapters 42.20 and 42.23 RCW relating to ethics and conflicts of interest; chapters 42.30 and 42.32 RCW relating to open public meetings and minutes; RCW 35.22.288, ((35.23.310, 35.24.220)) 35.23.221, 35.27.300, 35A.12.160, as appropriate, and chapter 35A.65 RCW relating to the publication of notices and ordinances; RCW 35.21.875 and 35A.21.230 relating to the designation of an official newspaper; RCW 36.16.138 relating to liability insurance; RCW 35.22.620, 35.23.352, and 35A.40.210, as appropriate, and statutes referenced therein relating to public contracts and bidding; and chapter 39.34 RCW relating to interlocal cooperation. Tax anticipation or revenue anticipation notes or warrants and other short-term obligations may be issued and funds may be borrowed on the security of these instruments during this interim period, as provided in chapter 39.50 RCW. Funds also may be borrowed from federal, state, and other governmental agencies in the same manner as if the city or town were officially incorporated.

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

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

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

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

      In any newly incorporated city that has adopted the council-manager form of government, the term of office of the mayor, during the interim period only, shall be set by the council, and thereafter shall be as provided by law.

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

      Sec. 3. RCW 35.02.180 and 1986 c 234 s 17 are each amended to read as follows:

      The ownership of all county roads located within the boundaries of a newly incorporated city or town shall revert to the city or town and become streets as of the official date of incorporation. However, any special assessments attributable to these county roads shall continue to exist and be collected as if the incorporation had not occurred. Property within the newly incorporated city or town shall continue to be subject to any indebtedness attributable to these roads and any related property tax levies.

      The territory included within the newly incorporated city or town shall be removed from the road district as of the official date of incorporation. The territory included within the newly incorporated city or town shall be removed from a fire protection district or districts or library district or districts in which it was located, as of the official date of incorporation, unless the fire protection district or districts have annexed the city or town during the interim period as provided in RCW ((52.04.160 through 52.04.200)) 52.04.061 through 52.04.101, or the library district or districts have annexed the city or town during the interim period as provided in RCW ((27.12.260 through 27.12.290)) 27.12.360 through 27.12.395.

      The governing body of a city or town incorporated after August 1, 1995, may adopt a resolution submitting to the voters of a park and recreation district governed under the provisions of chapter 36.69 RCW and located wholly within the boundaries of a city or town, the question of whether the ownership of all assets and liabilities of the park and recreation district should revert to the city or town. The city or town shall cause the ballot proposition to be submitted to the voters at a state general election. If a majority of the votes cast in the election are in favor of the reversion, the assets and liabilities of the park and recreation district shall revert to the city or town and become assets and liabilities of the city or town on the date the election results are certified.

      Any special assessment attributable to the park and recreation district shall continue to exist and be collected as if the incorporation had not occurred. Property that was within the boundaries of the park and recreation district shall continue to be subject to any indebtedness attributable to the park and recreation district and any related property tax levies. Any funds received by the city or town which have been collected for the purposes of paying any bonded or other indebtedness of the district shall be used for the purpose for which they were collected and for no other purpose. All funds of the district on deposit with the county treasurer shall be used by the city or town solely for the purpose for which they were collected and for no other purpose.

      Sec. 4. RCW 35.07.040 and 1965 c 7 s 35.07.040 are each amended to read as follows:

      ((If the applicable census shows a population of less than four thousand)) Upon receipt of a valid petition for disincorporation, the council shall cause an election to be called upon the proposition of disincorporation. If the city or town has any indebtedness or outstanding liabilities, it shall order the election of a receiver at the same time.

      NEW SECTION. Sec. 5. A new section is added to chapter 35.13A RCW to read as follows:

      Whenever the board of commissioners of a water district or sewer district has determined by resolution that it is in the best interests of the district for a city to assume jurisdiction of the district, whether or not any of the territory or assessed valuation of the district is included within the corporate boundaries of the city, and the city legislative body has determined to assume jurisdiction of the district, the district and the city shall enter into a contract pursuant to RCW 35.13A.070, acceptable to both the district and the city, to carry out such assumption. The contract shall provide for the transfer to the city of all real and personal property, franchises, rights, assets, taxes levied but not collected for the district for other than indebtedness, water and sewer lines, and all other facilities and equipment of the district, which transfers shall be subject to all financial, statutory, or contractual obligations of the district for the security or performance of which such property may have been pledged. Such city in addition to its other powers, shall have the power to manage, control, maintain, and operate such property, facilities, and equipment and to fix and collect service and other charges from owners and occupants of properties so served by the city, subject, however, to any outstanding indebtedness, bonded or otherwise, of the district payable from taxes, assessments, or revenues of any kind or nature and to any other contractual obligations of the district including but not limited to the provisions of the contract entered into by such city and the district pursuant to RCW 35.13A.070.

      Pursuant to such contract, the city may assume the obligation of paying such district indebtedness and of levying and of collecting or causing to be collected such district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of such indebtedness, according to all of the terms, conditions, and covenants incident to such indebtedness, and shall assume and perform all other outstanding contractual obligations of the district in accordance with all of its terms, conditions, and covenants. No such assumption shall be deemed to impair the obligation of any indebtedness or other contractual obligation entered into after the effective date of this act. During the period until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property therein, shall continue to be liable for its and their proportionate share of such indebtedness, including any outstanding assessments levied within any local improvement district or utility local improvement district thereof. The city shall assume the obligation of causing the payment of such indebtedness, collecting such taxes, assessments, and charges, and observing and performing the other district contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied and collected therein, and causing service and other charges and assessments to be collected from such property or owners or occupants thereof, enforcing such collection, and performing all other acts necessary to ensure performance of the district's contractual obligations.

      When a city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service and other charges have accrued for such purpose but have not been collected by the district prior to such assumption, the property taxes or assessments when collected shall belong and be paid to the city and be used by such city so far as necessary for payment of the indebtedness of the district existing and unpaid on the date such city elects to assume the indebtedness. Any funds received by the city that have been collected for the purpose of paying any bonded or other indebtedness of the district, shall be used for the purpose for which they were collected and for no other purpose. Any outstanding indebtedness shall be paid as provided in the bond covenants. All funds of the district on deposit with the county treasurer at the time of title transfer shall be used by the city solely for the benefit of the utility and shall not be transferred to or used for the benefit of the city's general fund.

      Sec. 6. RCW 35.13A.070 and 1971 ex.s. c 95 s 7 are each amended to read as follows:

      Notwithstanding any provision of this chapter to the contrary, one or more cities and one or more water districts or sewer districts may, through their legislative authorities, authorize a contract with respect to the rights, powers, duties, and obligation of such cities, or districts with regard to the use and ownership of property, the providing of services, the maintenance and operation of facilities, allocation of cost, financing, and construction of new facilities, application and use of assets, disposition of liabilities and debts, the performance of contractual obligations, and any other matters arising out of the inclusion, in whole or in part, of the district or districts within any city or cities or the assumption by a city of jurisdiction of a district pursuant to section 5 of this act. The contract may provide for the furnishing of services by any party thereto and the use of city or district facilities or real estate for such purpose, and may also provide for the time during which such district or districts may continue to exercise any rights, privileges, powers, and functions provided by law for such district or districts as if the district or districts or portions thereof were not included within a city or subject to an assumption of jurisdiction pursuant to section 5 of this act, including but not by way of limitation, the right to promulgate rules and regulations, to levy and collect special assessments, rates, charges, service charges, and connection fees, ((and)) to adopt and carry out the provisions of a comprehensive plan, and amendments thereto, for a system of improvements, and to issue general obligation bonds or revenue bonds in the manner provided by law. The contract may provide for the transfer to a city of district facilities, property, rights, and powers as provided in RCW 35.13A.030 ((and)), 35.13A.050, and section 5 of this act, whether or not sixty percent or any of the area or assessed valuation of real estate lying within the district or districts is included within such city. The contract may provide that any party thereto may authorize, issue, and sell revenue bonds to provide funds for new water or sewer improvements or to refund any water revenue, sewer revenue, or combined water and sewer revenue bonds outstanding of any city((,)) or district ((which)) that is a party to such contract if such refunding is deemed necessary, providing such refunding will not increase interest costs. The contract may provide that any party thereto may authorize and issue, in the manner provided by law, general obligation or revenue bonds of like amounts, terms, conditions, and covenants as the outstanding bonds of any other party to the contract, and such new bonds may be substituted or exchanged for such outstanding bonds: PROVIDED, That no such exchange or substitution shall be effected in such a manner as to impair the obligation or security of any such outstanding bonds.

      Sec. 7. RCW 35.13A.080 and 1971 ex.s. c 95 s 8 are each amended to read as follows:

      In any of the cases provided for in RCW 35.13A.020, 35.13A.030, ((and)) 35.13A.050, and section 5 of this act, and notwithstanding any other method of dissolution provided by law, dissolution proceedings may be initiated by either the city or the district, or both, when the legislative body of the city and the governing body of the district agree to, and petition for, dissolution of the district.

      The petition for dissolution shall be signed by the chief administrative officer of the city and the district, upon authorization of the legislative body of the city and the governing body of the district((,)) respectively, and such petition shall be presented to the superior court of the county in which the city is situated.

      If the petition is thus authorized by both the city and district, and title to the property, facilities, and equipment of the district has passed to the city pursuant to action taken under this chapter, all indebtedness and local improvement district or utility local improvement district assessments of the district have been discharged or assumed by and transferred to the city, and the petition contains a statement of the distribution of assets and liabilities mutually agreed upon by the city and the district and a copy of the agreement between such city and the district is attached thereto, a hearing shall not be required and the court shall, if the interests of all interested parties have been protected, enter an order dissolving the district.

      In any of the cases provided for in RCW 35.13A.020 ((and)), 35.13A.030, and section 5 of this act, if the petition for an order of dissolution is signed on behalf of the city alone or the district alone, or there is no mutual agreement on the distribution of assets and liabilities, the superior court shall enter an order fixing a hearing date not less than sixty days from the day the petition is filed, and the clerk of the court of the county shall give notice of such hearing by publication in a newspaper of general circulation in the district once a week for three successive weeks and by posting in three public places in the district at least twenty-one days before the hearing. The notice shall set forth the filing of the petition, its purposes, and the date and place of hearing thereon.

      After the hearing the court shall enter its order with respect to the dissolution of the district. If the court finds that such district should be dissolved and the functions performed by the city, the court shall provide for the transfer of assets and liabilities to the city. The court may provide for the dissolution of the district upon such conditions as the court may deem appropriate. A certified copy of the court order dissolving the district shall be filed with the county auditor. If the court does not dissolve the district, it shall state the reasons for declining to do so.

      Sec. 8. RCW 35.27.070 and 1993 c 47 s 2 are each amended to read as follows:

      The government of a town shall be vested in a mayor and a council consisting of five members and a treasurer, all elective; the mayor shall appoint a clerk and a marshal; and may appoint a town attorney, pound master, street superintendent, a civil engineer, and such police and other subordinate officers and employees as may be provided for by ordinance. All appointive officers and employees shall hold office at the pleasure of the mayor, subject to any applicable law, rule, or regulation relating to civil service, and shall not be subject to confirmation by the town council.

      Sec. 9. RCW 41.04.190 and 1992 c 146 s 13 are each amended to read as follows:

      The cost of a policy or plan to a public agency or body is not additional compensation to the employees or elected officials covered thereby. The elected officials to whom this section applies include but are not limited to commissioners elected under chapters 28A.315, 52.14, 53.12, 54.12, 56.12, 57.12, 70.44, and 87.03 RCW, as well as any county elected officials who are provided insurance coverage under RCW 41.04.180 and those city officials elected under chapters 35.22, 35.23, 35.27, 35A.12, and 35A.13 RCW. Any officer authorized to disburse such funds may pay in whole or in part to an insurance carrier or health care service contractor the amount of the premiums due under the contract.

      NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

      (1) RCW 35.07.030 and 1965 c 7 s 35.07.030;

      (2) RCW 35.17.160 and 1965 c 7 s 35.17.160;

      (3) RCW 35.23.390 and 1965 c 7 s 35.23.390; and

      (4) RCW 35.23.400 and 1965 c 7 s 35.23.400.", 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 Engrossed Substitute Senate Bill No. 6505

 and asks the House to recede therefrom.


      There being no objection, the Senate resumed consideration of Engrossed Substitute Senate Bill No. 6257, deferred earlier today after Senator Hargrove moved to refuse to concur in the House amendment and requested a conference and Senator West moved that the Senate do concur in the House amendment.


MOTION


      On motion of Senator West, and there being no objection, the motion to concur in the House amendment to Engrossed Substitute Senate Bill No. 6257 was withdrawn.

      The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate refuse to concur in the House amendment to Engrossed Substitute House Bill No. 6257 and to request of the House a conference thereon.

      The motion by Senator Hargrove carried and the Senate refuses to concur in the House amendment to Engrossed Substitute Senate Bill No. 6257 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 6257 and the House amendment thereto: Senators Hargrove, Long and Franklin.


MOTION


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


MESSAGE FROM THE HOUSE

February 29, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6666 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. Until the department of ecology can assume full financial responsibility to maintain the water quality and treat nuisance weeds and algae in Washington state lakes, shoreline property owners may use any federally approved herbicide following label application requirements for control of nuisance weeds. The treatment of lake waters by licensed pesticide applicators with federally approved herbicides and algicides following federal label application requirements is not considered pollution. The department of ecology using existing department personnel and resources must develop a general long-term plan to maintain lake health and must allow weed algae treatment until a plan is completed, funded, and implemented.

      NEW SECTION. Sec. 2. Solutions to lake weed and algae problems must be long term and the use of herbicides is allowed following federal label application requirements for the long-term period of up to ten years while plans and funding for a permanent solution are being secured by the department of ecology.

      NEW SECTION. Sec. 3. There is created a committee to develop a Washington state lake health plan. The committee shall submit the plan to the legislature by December 1, 1997. The committee shall consist of the chair and ranking minority member of the senate agriculture and agricultural trade and development, ecology and parks, and government operations committees, and the house of representatives agriculture and ecology, natural resources, and government operations committees.

      NEW SECTION. Sec. 4. Sections 1 and 2 of this act are each added to chapter 90.48 RCW.

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

      On page 1, line 1 of the title, after "weeds;" strike the remainder of the title and insert "adding new sections to chapter 90.48 RCW; creating a new section; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Fraser moved that the Senate refuse to concur in the House amendments to Engrossed Substitute Senate Bill No. 6666 and requests of the House a conference thereon.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Fraser that the Senate refuse to concur in the House amendments to Engrossed Substitute Senate Bill No. 6666 and requests of the House a conference thereon.

      The motion by Senator Fraser carried and the Senate refuses to concur in the House amendments to Engrossed Substitute Senate Bill No. 6666 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 6666 and the House amendments thereto: Senators Fraser, Winsley and Fairley.


MOTION


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


      EDITOR'S NOTE: See change in conferees to Engrossed Substitute Senate Bill No. 6666 later on in the day.


MESSAGE FROM THE HOUSE

February 27, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6217 with the following amendment(s):

      On page 1, line 9, after "communication" insert ", reading,"

      On page 1, line 12, after "communication" insert ", reading,"

      On page 2, line 11, after "section." insert "The rules adopted by the state board of education shall address the needs of applicants who have a documented specific learning disability that may require special consideration when taking the basic skills examination."

      On page 2, after line 11, insert:

      "NEW SECTION. Sec. 2. (1) As part of the report required by RCW 28A.410.013, the state board of education shall include specific recommendations for establishment of a uniform test of basic skills:

      (a) As a requirement for admission to a professional teacher preparation program within Washington state; and

      (b) As a requirement for out-of-state teachers applying for Washington state certification.

      (2) This section shall expire January 31, 1997."

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

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator McAuliffe moved that the Senate refuse to concur in the House amendments and requests of the House a conference thereon.


MOTION


      Senator Johnson moved that the Senate concur in the House amendments on page 1, lines 9 and 12, and the amendment on page 2, after line 11, inserting a NEW SECTION, and not concur in the House amendment on page 2, after line 11, after "section."


MOTION


      On motion of Senator McAuliffe, and there being no objection, the motion to not concur in the House amendments to Senate Bill No. 6217 and to request a conference was withdrawn.

      The President declared the question before the Senate to be the motion by Senator Johnson that the Senate concur in the House amendments on page 1, lines 9 and 12, and the amendment on page 2, line 11, inserting a NEW SECTION, and not concur in the House amendment on page 2, after line 11, after "section." to Senate Bill No. 6217.

      The motion by Senator Johnson to concur in the House amendments on page 1, lines 9 and 12, and the amendment on page 2, line 11, inserting a NEW SECTION, and not concur in the House amendment on page 2, line 11, after "section." to Senate Bill No. 6217 carried.


MESSAGE FROM THE HOUSE

February 29, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6285 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. (1) The legislature finds that department of corrections staff and jail staff perform essential public functions that are vital to our communities. The health and safety of these workers is often placed in jeopardy while they perform the responsibilities of their jobs. Therefore, the legislature intends that department of corrections staff and jail staff who have been substantially exposed to the bodily fluids of an offender or detainee shall be entitled to receive the HIV test results of the offender or detainee. However, the legislature recognizes that the mandatory disclosure of the HIV status of individual offenders may cause some corrections and jail staff to use more precautions with those offenders and detained people they know to be HIV positive. The legislature also recognizes the risk exists that some corrections and jail staff may correspondingly use fewer precautions with those offenders and detained people they are not informed are HIV positive. The legislature finds, however, that the system of universal precautions required under federal and state law in all settings where risk of occupational exposure to communicable diseases exists remains the most effective way to reduce the risk of communicable disease transmission. The legislature does not intend to discourage the use of universal precautions but to provide supplemental information for corrections and jail staff to utilize as part of their universal precautions with all offenders and detained people.

      (2) The legislature further finds that, through the efforts of health care professionals and corrections staff, offenders in department of corrections facilities and people detained in local jails are being encouraged to take responsibility for their health by requesting voluntary and anonymous pretest counseling, HIV testing, posttest counseling, and AIDS counseling. The legislature does not intend, through this act, to mandate disclosure of the results of voluntary and anonymous tests. The legislature intends to continue to protect the confidential exchange of medical information related to voluntary and anonymous pretest counseling, HIV testing, posttest counseling, and AIDS counseling as provided by chapter 70.24 RCW.

      Sec. 2. RCW 70.24.105 and 1994 c 72 s 1 are each amended to read as follows:

      (1) No person may disclose or be compelled to disclose the identity of any person who has investigated, considered, or requested a test or treatment for a sexually transmitted disease, except as authorized by this chapter.

      (2) No person may disclose or be compelled to disclose the identity of any person upon whom an HIV antibody test is performed, or the results of such a test, nor may the result of a test for any other sexually transmitted disease when it is positive be disclosed. This protection against disclosure of test subject, diagnosis, or treatment also applies to any information relating to diagnosis of or treatment for HIV infection and for any other confirmed sexually transmitted disease. The following persons, however, may receive such information:

      (a) The subject of the test or the subject's legal representative for health care decisions in accordance with RCW 7.70.065, with the exception of such a representative of a minor child over fourteen years of age and otherwise competent;

      (b) Any person who secures a specific release of test results or information relating to HIV or confirmed diagnosis of or treatment for any other sexually transmitted disease executed by the subject or the subject's legal representative for health care decisions in accordance with RCW 7.70.065, with the exception of such a representative of a minor child over fourteen years of age and otherwise competent;

      (c) The state public health officer, a local public health officer, or the centers for disease control of the United States public health service in accordance with reporting requirements for a diagnosed case of a sexually transmitted disease;

      (d) A health facility or health care provider that procures, processes, distributes, or uses: (i) A human body part, tissue, or blood from a deceased person with respect to medical information regarding that person; (ii) semen, including that provided prior to March 23, 1988, for the purpose of artificial insemination; or (iii) blood specimens;

      (e) Any state or local public health officer conducting an investigation pursuant to RCW 70.24.024, provided that such record was obtained by means of court ordered HIV testing pursuant to RCW 70.24.340 or 70.24.024;

      (f) A person allowed access to the record by a court order granted after application showing good cause therefor. In assessing good cause, the court shall weigh the public interest and the need for disclosure against the injury to the patient, to the physician-patient relationship, and to the treatment services. Upon the granting of the order, the court, in determining the extent to which any disclosure of all or any part of the record of any such test is necessary, shall impose appropriate safeguards against unauthorized disclosure. An order authorizing disclosure shall: (i) Limit disclosure to those parts of the patient's record deemed essential to fulfill the objective for which the order was granted; (ii) limit disclosure to those persons whose need for information is the basis for the order; and (iii) include any other appropriate measures to keep disclosure to a minimum for the protection of the patient, the physician-patient relationship, and the treatment services, including but not limited to the written statement set forth in subsection (5) of this section;

      (g) Persons who, because of their behavioral interaction with the infected individual, have been placed at risk for acquisition of a sexually transmitted disease, as provided in RCW 70.24.022, if the health officer or authorized representative believes that the exposed person was unaware that a risk of disease exposure existed and that the disclosure of the identity of the infected person is necessary;

      (h) A law enforcement officer, fire fighter, health care provider, health care facility staff person, or other persons as defined by the board in rule pursuant to RCW 70.24.340(4), who has requested a test of a person whose bodily fluids he or she has been substantially exposed to, pursuant to RCW 70.24.340(4), if a state or local public health officer performs the test;

      (i) Claims management personnel employed by or associated with an insurer, health care service contractor, health maintenance organization, self-funded health plan, state-administered health care claims payer, or any other payer of health care claims where such disclosure is to be used solely for the prompt and accurate evaluation and payment of medical or related claims. Information released under this subsection shall be confidential and shall not be released or available to persons who are not involved in handling or determining medical claims payment; and

      (j) A department of social and health services worker, a child placing agency worker, or a guardian ad litem who is responsible for making or reviewing placement or case-planning decisions or recommendations to the court regarding a child, who is less than fourteen years of age, has a sexually transmitted disease, and is in the custody of the department of social and health services or a licensed child placing agency; this information may also be received by a person responsible for providing residential care for such a child when the department of social and health services or a licensed child placing agency determines that it is necessary for the provision of child care services.

      (3) No person to whom the results of a test for a sexually transmitted disease have been disclosed pursuant to subsection (2) of this section may disclose the test results to another person except as authorized by that subsection.

      (4) The release of sexually transmitted disease information regarding an offender or detained person, except as provided in subsection (2)(e) of this section, shall be governed as follows:

      (a) The sexually transmitted disease status of a department of corrections offender shall be made available by department of corrections health care providers and local public health officers to a department of corrections superintendent or administrator as necessary for disease prevention or control and for protection of the safety and security of the staff, offenders, and the public. The information may be submitted to transporting officers and receiving facilities, including facilities that are not under the department of ((correction's)) corrections' jurisdiction.

      (b) The sexually transmitted disease status of a person detained in a jail shall be made available by the local public health officer to a jail administrator as necessary for disease prevention or control and for protection of the safety and security of the staff, offenders, detainees, and the public. The information may be submitted to transporting officers and receiving facilities.

      (c) Information regarding ((a department of corrections offender's)) the sexually transmitted disease status of an offender or detained person is confidential and may be disclosed by a correctional superintendent or administrator or local jail administrator only as necessary for disease prevention or control and for protection of the safety and security of the staff, offenders, and the public. Unauthorized disclosure of this information to any person may result in disciplinary action, in addition to any other penalties as may be prescribed by law.

      (d) Notwithstanding the limitations on disclosure contained in (a), (b), and (c) of this subsection, whenever any member of jail staff or department of corrections staff has been substantially exposed to the bodily fluids of an offender or detained person, then the results of any tests conducted pursuant to RCW 70.24.340, 70.24.360, or 70.24.370 shall be immediately disclosed to the correctional superintendent or administrator or local jail administrator. The superintendent or administrator is then required to immediately disclose these results to the staff member who was substantially exposed. Disclosure must be accompanied by appropriate counseling for the staff member, including information regarding follow-up testing.

      (e) The receipt by any individual of any information disclosed pursuant to this subsection (4) shall be utilized only for disease prevention or control and for protection of the safety and security of the staff, offenders, detainees, and the public. Use of this information for any other purpose, including harassment or discrimination, may result in disciplinary action, in addition to the penalties prescribed in RCW 70.24.080 or any other penalties as may be prescribed by law.

      (5) Whenever disclosure is made pursuant to this section, except for subsections (2)(a) and (6) of this section, it shall be accompanied by a statement in writing which includes the following or substantially similar language: "This information has been disclosed to you from records whose confidentiality is protected by state law. State law prohibits you from making any further disclosure of it without the specific written consent of the person to whom it pertains, or as otherwise permitted by state law. A general authorization for the release of medical or other information is NOT sufficient for this purpose." An oral disclosure shall be accompanied or followed by such a notice within ten days.

      (6) The requirements of this section shall not apply to the customary methods utilized for the exchange of medical information among health care providers in order to provide health care services to the patient, nor shall they apply within health care facilities where there is a need for access to confidential medical information to fulfill professional duties.

      (7) Upon request of the victim, disclosure of test results under this section to victims of sexual offenses under chapter 9A.44 RCW shall be made if the result is negative or positive. The county prosecuting attorney shall notify the victim of the right to such disclosure. Such disclosure shall be accompanied by appropriate counseling, including information regarding follow-up testing.

      NEW SECTION. Sec. 3. The department of health and the department of corrections shall each adopt rules to implement this act. The department of health and the department of corrections shall also report to the legislature by January 1, 1997, on the following: (1) Changes made in rules, policies, and procedures to implement this act; and (2) a summary of the number and circumstances of mandatory test results that were disclosed to department of corrections staff and jail staff pursuant to section 2 of this act."

      On page 1, line 2 of the title, after "staff;" strike the remainder of the title and insert "amending RCW 70.24.105; and creating new sections.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Hargrove moved that the Senate refuse to concur in the House amendments to Engrossed Substitute Senate Bill No. 6285 and requests of the House a conference thereon.


MOTION


      Senator Kohl moved that the Senate do concur in the House amendments to Engrossed Substitute Senate Bill No. 6285.

      Debate ensued.


MOTION


      On motion of Senator Snyder, further consideration of Engrossed Substitute Senate Bill No. 6285 was deferred.


CHANGE IN CONFERENCE COMMITTEE APPOINTMENT TO ENGROSSED SUBSTITUTE SENATE BILL NO. 6666


      The President appointed Senator Swecker to replace Senator Winsley as a conferee on Engrossed Substitute Senate Bill No. 6666.


MOTION


      On motion of Senator Heavey, the change of Senator Swecker replacing Senator Winsley as a conferee to Engrossed Substitute Senate Bill No. 6666 was confirmed.


MESSAGES FROM HOUSE

March 1, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED HOUSE BILL NO. 2953, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


March 1, 1996

MR. PRESIDENT:

      The House has passed:

      SENATE BILL NO. 5500,

      SENATE BILL NO. 6171,

      SENATE BILL NO. 6222,

      SUBSTITUTE SENATE BILL NO. 6267,

      SENATE BILL NO. 6292, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      SENATE BILL NO. 5500,

      SENATE BILL NO. 6171,

      SENATE BILL NO. 6222,

      SUBSTITUTE SENATE BILL NO. 6267,

      SENATE BILL NO. 6292.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6089 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 77.12.720 and 1994 sp.s. c 7 s 443 are each amended to read as follows:

      The firearms range account is hereby created in the state general fund. Moneys in the account shall be subject to legislative appropriation and shall be used for purchase and development of land, construction or improvement of range facilities, including fixed structure construction or remodeling, equipment purchase, safety or environmental improvements, noise abatement, and liability protection for public and nonprofit firearm range training and practice facilities.

      Grant funds shall not be used for expendable shooting supplies, or normal operating expenses. In making grants, the interagency committee for outdoor recreation shall give priority to projects for noise abatement or safety improvement. Grant funds shall not supplant funds for other organization programs.

      The funds will be available to nonprofit shooting organizations, school districts, and state, county, or local governments on a match basis. All entities receiving matching funds must be open on a regular basis and usable by law enforcement personnel or the general public who possess Washington concealed pistol licenses or Washington hunting licenses or who are enrolled in a firearm safety class.

      Applicants for a grant from the firearms range account shall provide matching funds in either cash or in-kind contributions. The match must represent one dollar in value for each one dollar of the grant except that in the case of a grant for noise abatement or safety improvements the match must represent one dollar in value for each two dollars of the grant. In-kind contributions include but are not limited to labor, materials, and new property. Existing assets and existing development may not apply to the match.

      Applicants other than school districts or local or state government must be registered as a nonprofit or not-for-profit organization with the Washington secretary of state ((and the United States internal revenue service)). The organization's articles of incorporation must contain provisions for the organization's structure, officers, legal address, and registered agent.

      Organizations requesting grants must provide the hours of range availability for public and law enforcement use. The fee structure will be submitted with the grant application.

      Any nonprofit organization or agency accepting a grant under this program will be required to pay back the entire grant amount to the firearms range account if the use of the range facility is discontinued less than ten years after the grant is accepted.

      Entities receiving grants must make the facilities for which grant funding is received open for hunter safety education classes and firearm safety classes on a regular basis for no fee.

      Government units or school districts applying for grants must open their range facility on a regular basis for hunter safety education classes and firearm safety classes.

      The interagency committee for outdoor recreation shall adopt rules to implement chapter 195, Laws of 1990, pursuant to chapter 34.05 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Drew, the Senate concurred in the House amendment to Senate Bill No. 6089.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6089, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6089, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

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

      Voting nay: Senator Wojahn - 1.

      Excused: Senator Rinehart - 1.

      SENATE BILL NO. 6089, 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

February 29, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6090 with the following amendment(s):

      On page 4, beginning on line 9, strike ", at the discretion of the recording officer", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk



MOTION


      On motion of Senator Haugen the Senate concurred in the House amendment to Senate Bill No. 6090.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6090, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6090, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.

      Excused: Senator Rinehart - 1.

      SENATE BILL NO. 6090, 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

February 27, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6091 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:


"PART I - GENERAL PROVISIONS


      NEW SECTION. Sec. 101. A new section is added to chapter 57.02 RCW to read as follows:

      Every sewer district and every water district previously created shall be reclassified and shall become a water-sewer district, and shall be known as the ". . . . . Water-Sewer District," or "Water-Sewer District No. . . . ." or shall continue to be known as a "sewer district" or a "water district," with the existing name or number inserted, as appropriate. As used in this title, "district" means a water-sewer district, a sewer district, or a water district. All debts, contracts, and obligations previously made or incurred by or in favor of any water district or sewer district, and all bonds or other obligations issued or executed by those districts, and all assessments or levies, and all other things and proceedings done or taken by those districts or by their respective officers, are declared legal and valid and of full force and effect.

      Sec. 102. RCW 57.02.010 and 1982 1st ex.s. c 17 s 8 are each amended to read as follows:

      Wherever in this title ((57 RCW)) petitions are required to be signed by the owners of property, the following rules shall govern the sufficiency ((thereof)) of the petitions:

      (1) The signature of a record owner, as determined by the records of the county auditor of the county in which the real property is located, shall be sufficient without the signature of ((his or her)) the owner's spouse.

      (2) ((In the case of)) For mortgaged property, the signature of the mortgagor shall be sufficient.

      (3) ((In the case of)) For property purchased on contract, the signature of the contract purchaser, as shown by the records of the county auditor of the county in which the real property is located, shall be ((deemed)) sufficient.

      (4) Any officer of a corporation owning land in the district duly authorized to execute deeds or encumbrances on behalf of the corporation may sign on behalf of ((such)) that corporation((: PROVIDED)), except that there shall be attached to the petition a certified excerpt from the bylaws showing such authority.

      (5) If any property in the district stands in the name of a deceased person or any person for whom a guardian has been appointed, the signature of the ((executor)) personal representative, administrator, or guardian, as the case may be, shall be equivalent to the signature of the owner of the property.

      Sec. 103. RCW 56.02.110 and 1979 c 35 s 3 are each amended to read as follows:

      (((1))) The board of commissioners of a ((sewer)) district may notify the owner or reputed owner of any tract, parcel of land, or other property located within the area included in a petition being circulated for a local improvement district ((being circulated)) or utility local improvement district under chapter ((56.20)) 57.16 RCW ((or in a petition for)), an annexation ((being circulated)) under chapter ((56.24)) 57.24 RCW, a consolidation under chapter 57.32 RCW, a merger under chapter 57.36 RCW, a withdrawal of territory under chapter 57.28 RCW, or a transfer of territory under RCW 57.32.160.

      (((2))) Upon the request of any person, the board of commissioners of a ((sewer)) district may:

      (((a))) (1) Review a proposed petition ((to check if the petition is properly drafted)) for proper drafting; and

      (((b))) (2) Provide information regarding the effects of the adoption of any proposed petition.

      Sec. 104. RCW 57.02.030 and 1959 c 108 s 19 are each amended to read as follows:

      The rule of strict construction shall ((have no application)) not apply to this title, ((but the same)) which shall be liberally construed to carry out ((the)) its purposes and objects ((for which this title is intended)).

      Sec. 105. RCW 57.02.040 and 1988 c 162 s 7 are each amended to read as follows:

      (1) Notwithstanding any provision of law to the contrary, ((no water district shall be formed or reorganized under chapter 57.04 RCW, nor shall any water district annex territory under chapter 57.24 RCW, nor shall any water district withdraw territory under chapter 57.28 RCW, nor shall any water district consolidate under chapter 57.32 RCW, nor shall any water district be merged under chapter 57.36 RCW, nor shall any sewer district be merged into a water district under chapter 57.40 RCW, unless such proposed action)) the following proposed actions shall be approved as provided for in RCW 56.02.070 (as recodified by this act):

      (a) Formation or reorganization under chapter 57.04 RCW;

      (b) Annexation of territory under chapter 57.24 RCW;

      (c) Withdrawal of territory under chapter 57.28 RCW;

      (d) Transfer of territory under RCW 57.32.160;

      (e) Consolidation under chapter 57.32 RCW; and

      (f) Merger under chapter 57.36 RCW.

      ((The county legislative authority shall within thirty days of the date after receiving)) (2) At least one of the districts involved shall give notice of the proposed action((, approve such action or hold a hearing on such action. In addition, a copy of such proposed action shall be mailed)) to the county legislative authority, state department of ecology, and ((to the)) state department of ((social and)) health ((services)). The county legislative authority shall within thirty days of receiving notice of the proposed action approve the action or hold a hearing on the action.

      (3) The county legislative authority shall decide within sixty days of a hearing whether to approve or not approve ((such)) the proposed action. In approving or not approving the proposed action, the county legislative authority shall consider the following criteria:

      (((1))) (a) Whether the proposed action in the area under consideration is in compliance with the development program ((which)) that is outlined in the county comprehensive plan, or city or town comprehensive plan where appropriate, and its supporting documents; ((and/or

      (2))) (b) Whether the proposed action in the area under consideration is in compliance with the basinwide water and/or sewage plan as approved by the state department of ecology and the state department of social and health services; ((and/or)) and

      (((3))) (c) Whether the proposed action is in compliance with the policies expressed in the county plan for water and/or sewage facilities.

      (4) If the proposed action is inconsistent with subsection((s (1), (2), or)) (3)(a), (b), or (c) of this section, the county legislative authority shall not approve it. If ((such)) the proposed action is consistent with ((all such)) subsection((s)) (3)(a), (b), and (c) of this section, the county legislative authority shall approve it unless it finds that ((utility)) water or sewer service in the area under consideration will be most appropriately served by the county itself under the provisions of chapter 36.94 RCW, or by ((a)) another district, city, town, or municipality((, or by another existing special purpose district rather than by the proposed action under consideration)). If there has not been adopted for the area under consideration a plan or program under ((any one of subsections (1), (2) or)) subsection (3)(a), (b), or (c) of this section, the proposed action shall not be found inconsistent with such subsection.

      (5) Where a ((water)) district is proposed to be formed, and where no boundary review board ((has been)) is established in the county, the petition described in RCW 57.04.030 shall serve as the notice of proposed action under this section, and the hearing provided for in RCW 57.04.030 shall serve as the hearing provided for in this section and in RCW 56.02.070 (as recodified by this act).

      Sec. 106. RCW 56.02.070 and 1988 c 162 s 6 are each amended to read as follows:

      In any county where a boundary review board, as provided in chapter 36.93 RCW, ((has)) is not ((been)) established, the approval of the proposed action shall be by the county legislative authority pursuant to RCW ((56.02.060 and)) 57.02.040((,)) and shall be final, and the procedures required to adopt such proposed action shall be followed as provided by law.

      In any county where a boundary review board, as provided in chapter 36.93 RCW, ((has been)) is established, a notice of intention of the proposed action shall be filed with the boundary review board as required by RCW 36.93.090 and ((a copy thereof)) with the county legislative authority. The ((latter)) county legislative authority shall transmit to the boundary review board a report of its approval or disapproval of the proposed action together with its findings and recommendations ((thereon)) under ((the provisions of RCW 56.02.060 and)) 57.02.040. ((If)) Approval by the county legislative authority ((has approved)) of the proposed action((, such approval)) shall be final and the procedures required to adopt ((such)) the proposal shall be followed as provided by law, unless the boundary review board reviews the action under ((the provisions of)) RCW 36.93.100 through 36.93.180. If the county legislative authority ((has)) does not ((approved)) approve the proposed action, the boundary review board shall review the action under ((the provisions of)) RCW 36.93.150 through 36.93.180. The action of the boundary review board ((after review of the proposed action)) shall supersede approval or disapproval by the county legislative authority.

      Where a ((water or sewer)) district is proposed to be formed, and where no boundary review board ((has been)) is established in the county, the hearings provided for in RCW ((56.04.040 and)) 57.04.030 shall serve as the hearing provided for in this section((, in RCW 56.02.060,)) and in RCW 57.02.040.

      Sec. 107. RCW 56.02.100 and 1977 ex.s. c 208 s 3 are each amended to read as follows:

      The procedures and provisions of RCW 85.08.830 through 85.08.890, which are applicable to drainage improvement districts, joint drainage improvement districts, or consolidated drainage improvement districts ((which)) that desire to merge into ((an)) irrigation districts, shall also apply to ((sewer)) districts organized, or reorganized, under this title ((which)) that desire to merge into irrigation districts.

      The authority granted by this section shall be cumulative and in addition to any other power or authority granted by law to any ((sewer)) district.

      Sec. 108. RCW 57.02.050 and 1994 c 223 s 66 are each amended to read as follows:

      Whenever the boundaries or proposed boundaries of a ((water)) district include or are proposed to include by means of formation, annexation, transfer, withdrawal, consolidation, or merger (((including merger with a sewer district))), territory in more than one county((,)):

      (1) All duties delegated by this title ((57 RCW)) to officers of the county in which the district is located shall be delegated to the officers of the county in which the largest land area of the district is located, except that elections shall be conducted pursuant to general election law((,));

      (2) Actions subject to review and approval under RCW 57.02.040 ((and 56.02.070)) shall be reviewed and approved only by the officers or boundary review board((s)) in the county in which such actions are proposed to occur((,));

      (3) Verification of ((electors')) voters' signatures shall be conducted by the county ((election officer)) auditor of the county in which such signators reside((,)); and

      (4) Comprehensive plan review and approval or rejection by the respective county legislative authorities under RCW 57.16.010 shall be limited to that part of such plans within the respective counties.

      NEW SECTION. Sec. 109. A new section is added to chapter 57.02 RCW to read as follows:

      Elections in a district shall be conducted under general election laws.


PART II - FORMATION AND DISSOLUTION


      Sec. 201. RCW 57.04.001 and 1989 c 84 s 56 are each amended to read as follows:

      Actions taken under this chapter ((57.04 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 202. RCW 57.04.020 and 1982 1st ex.s. c 17 s 9 are each amended to read as follows:

      Water-sewer districts ((for the acquirement, construction, maintenance, operation, development and regulation of a water supply system and providing for additions and betterments thereto)) are authorized to be established for the purposes of chapter 57.08 RCW. Such districts may include within their boundaries one or more ((incorporated)) counties, cities, and towns, or other political subdivisions. However, no portion or all of any city or town may be included without the consent by resolution of the city or town legislative authority.

      Sec. 203. RCW 57.04.030 and 1990 c 259 s 27 are each amended to read as follows:

      (1) For the purpose of formation of water-sewer districts, a petition shall be presented to the county legislative authority of each county in which the proposed ((water)) district is located((, which)). The petition shall set forth the ((object)) reasons for the creation of the district, ((shall)) designate the boundaries ((thereof and set forth the further fact)) of the district, and state that establishment of the district will be conducive to the public health, convenience, and welfare and will be of benefit to the property included in the district. The petition shall state the proposed name of the district, which may be ". . . . . . . Sewer-Water District," ". . . . . . . Water District," ". . . . . . . Sewer District," or may be designated by a number such as ". . . . . . . . County Water-Sewer District No. . . .." The petition shall specify the proposed property tax levy assessment, if any, which shall not exceed one dollar and twenty-five cents per thousand dollars of assessed value, for general preliminary expenses of the district. The petition shall be signed by at least ten percent of the registered voters who voted in the last ((general)) municipal general election, who shall be qualified ((electors)) voters on the date of filing the petition, residing within the district described in the petition.

      The petition shall be filed with the county auditor of ((each)) the county in which all or the largest geographic portion of the proposed district is located, who shall((,)) within ten days examine and verify the signatures ((of the signers residing in the county; and for such purpose the county election official shall have access to all registration books in the possession of the officers of any incorporated city or town in such proposed district)) on the petition. No person having signed such a petition shall be allowed to withdraw ((his)) the person's name from the petition after the filing of the petition with the county ((election officer. The petition shall be transmitted to the election officer of the county in which the largest land area of the district is located who shall certify to the sufficiency or insufficiency of the number of signatures)) auditor. If the area proposed to be included in the district is located in more than one county, the auditor of the county in which the largest geographic portion of the district is located shall be the lead auditor and shall immediately transfer a copy of the petitions to the auditor of each other county in which the proposed district is located. Within ten days after the lead auditor received the petition, the auditors of these other counties shall certify to the lead auditor: (a) The number of voters of that county residing in the proposed district who voted at the last municipal general election; and (b) the number of valid signatures on the petition of voters of that county residing in the proposed district. The lead auditor shall certify the sufficiency of the petition after receiving this information. If the petition shall be found to contain a sufficient number of signatures, the county ((election officer)) auditor or lead county auditor shall then transmit ((the same)) it, together with a certificate of sufficiency attached thereto to the county legislative authority of each county in which the proposed district is located.

      (2) If in the opinion of the county health officer the existing water, sewerage, or drainage facilities are inadequate in the district to be created, and creation of the district is necessary for public health and safety, then the legislative authority of the county may declare by resolution that a water-sewer district is a public health and safety necessity, and the district shall be organized under this title, without a petition being required.

      (3) Following receipt of a petition certified to contain a sufficient number of signatures, or upon declaring a district to be a public health and safety necessity, at a regular or special meeting the county legislative authority shall cause to be published once a week for at least two weeks in one or more newspapers of general circulation in the proposed district, a notice that such a petition has been presented, stating the time of the meeting at which the petition shall be considered, and setting forth the boundaries of the proposed district. When ((such)) a petition is presented for hearing, each county legislative authority shall hear the petition or may adjourn the hearing from time to time not exceeding one month in all. Any person, firm, or corporation may appear before the county legislative authority and make objections to the establishment of the district or the proposed boundary lines thereof. Upon a final hearing each county legislative authority shall make such changes in the proposed boundary lines within the county as it deems to be proper and shall establish and define the boundaries and shall find whether the proposed ((water)) district will be conducive to the public health, welfare, and convenience and be of special benefit to the land included within the boundaries of the proposed district. No lands ((which)) that will not, in the judgment of the county legislative authority, be ((benefited)) benefitted by inclusion therein, shall be included within the boundaries of the district. No change shall be made by the county legislative authority in the boundary lines to include any territory outside of the boundaries described in the petition, except that the boundaries of any proposed district may be extended by the county legislative authority to include other lands in the county upon a petition signed by the owners of all of the land within the proposed extension.

      Sec. 204. RCW 57.04.050 and 1994 c 292 s 2 are each amended to read as follows:

      Upon entry of the findings of the final hearing on the petition if one or more county legislative authorities find that the proposed district will be conducive to the public health, welfare, and convenience and ((be of special)) will benefit ((to)) the land therein, they shall call a special election by presenting a resolution to the county auditor at least forty-five days prior to the proposed election date. A special election ((will)) shall be held on a date decided by the commissioners in accordance with RCW ((29.13.010 and)) 29.13.020. The commissioners shall cause to be published a notice of the election for four successive weeks in a newspaper of general circulation in the proposed district, which notice shall state the hours during which the polls will be open, the boundaries of the district as finally adopted and the object of the election, and the notice shall also be posted ((for)) ten days in ten public places in the proposed district. In submitting the proposition to the voters, it shall be expressed on the ballots in the following terms:


      ((Water)) . . . . . District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .YES □

      ((Water)) . . . . . District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NO □


giving the name of the district as provided in the petition. The proposition to be effective must be approved by a majority of the voters voting on the proposition.

      At the same election a proposition shall be submitted to the voters, for their approval or rejection, authorizing the ((water)) district, if formed, to ((levy at the earliest time permitted by law)) impose on all property located in the district a general tax for one year, in excess of the limitations provided by law, in the amount specified in the petition to create the district, not to exceed one dollar and twenty-five cents per thousand dollars of assessed value, for general preliminary expenses of the district((. The proposition may not appear at the September or November election. The proposition shall)), that proposition to be expressed on the ballots in the following terms:

 

      One year . . . . . . dollars and . . . . . . cents per thousand dollars of assessed value tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . YES □

      ((One year . . . . . . dollars and . . . . . . cents per thousand dollars of assessed value tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ))NO □


      Such a ballot proposition may only be submitted to voters for their approval or rejection if the special election is held in February, March, April, or May. The proposition to be effective must be approved by at least three-fifths of the voters voting on the proposition in the manner set forth in Article VII, section 2(a) of the state Constitution ((of this state, as amended by Amendment 59 and as thereafter amended)).

      Sec. 205. RCW 57.04.060 and 1929 c 114 s 5 are each amended to read as follows:

      If at ((such)) the election a majority of the voters voting upon ((such)) the proposition ((shall)) vote in favor of the formation of ((such)) the district the ((board of)) county ((commissioners)) legislative authority shall so declare in its canvass of the returns of ((such)) the election to be made within ten days after the date of the election, and ((such water)) the district shall then be and become a municipal corporation of the state of Washington, and the name of ((such water)) the district shall be ((". . . . . . Water District" (inserting the name appearing on the ballot))) the name of the district as provided in the petition and the ballot.

      The county's expenses incurred in the formation of the district, including the election costs associated with the ballot proposition authorizing the district, election of the initial commissioners under RCW 57.12.030, and the ballot proposition authorizing the excess levy, shall be repaid to the county if the district is formed.

      Sec. 206. RCW 57.04.065 and 1984 c 147 s 7 are each amended to read as follows:

      Any ((water)) district ((heretofore or hereafter organized and existing)) may apply to change its name by filing with the county legislative authority in which was filed the original petition for organization of the district, a certified copy of a resolution of its board of commissioners adopted by majority vote of all of the members of ((said)) that board at a regular meeting thereof providing for such change of name. After approval of the new name by the county legislative authority, all proceedings for ((such)) the district((s)) shall be had under ((such)) the changed name, but all existing obligations and contracts of the district entered into under its former name shall remain outstanding without change and with the validity thereof unimpaired and unaffected by such change of name((, and the)). A change of name heretofore made by any existing ((water)) district in this state, substantially in the manner ((above)) approved under this section, is ((hereby)) ratified, confirmed, and validated.

      Sec. 207. RCW 57.04.070 and 1985 c 141 s 6 are each amended to read as follows:

      Whenever two or more petitions for the formation of a ((water)) district shall be filed as provided in this chapter, the petition describing the greater area shall supersede all others and an election shall first be held thereunder, and no lesser ((water)) district shall ever be created within the limits in whole or in part of any ((water)) district, except as provided in RCW ((57.40.150 and)) 36.94.420((, as now or hereafter amended)).

      Sec. 208. RCW 56.04.080 and 1941 c 210 s 40 are each amended to read as follows:

      All elections held pursuant to this title, whether general or special, shall be conducted by the county ((election board)) auditor of the county in which the district is located. Except as provided in RCW 57.04.060, the expense of all such elections shall be paid for out of the funds of ((such sewer)) the district.

      Sec. 209. RCW 57.04.100 and 1994 c 81 s 80 are each amended to read as follows:

      Any ((water)) district ((organized under this title)) may be disincorporated in the same manner (insofar as the same is applicable) as is provided in RCW 35.07.010 through 35.07.220 for the disincorporation of cities and towns, except that the petition for disincorporation shall be signed by not less than twenty-five percent of the voters in the ((water)) district.

      Sec. 210. RCW 57.04.110 and 1955 c 358 s 1 are each amended to read as follows:

      A ((water)) district whose boundaries are identical with, or if the district is located entirely within, the boundaries of ((an incorporated)) a city or town may be dissolved by summary dissolution proceedings if the ((water)) district is free from all debts and liabilities except contractual obligations between the district and the city or town. Summary dissolution shall take place if the board of commissioners of the ((water)) district votes unanimously to dissolve the district and to turn all of its property over to the city or town within which the district lies, and the council of such city or town unanimously passes an ordinance accepting the conveyance of the property and assets of the district tendered to the city or town by the ((water)) district.

      Sec. 211. RCW 56.04.120 and 1991 c 363 s 136 are each amended to read as follows:

      (1) On and after March 16, 1979, any sewerage improvement districts created under Title 85 RCW and located in a county with a population of from forty thousand to less than seventy thousand shall become ((sewer)) districts and shall be operated, maintained, and have the same powers as ((sewer)) districts created under this title ((56 RCW)), upon being so ordered by the county legislative authority of the county in which such district is located after a hearing of which notice is given by publication in a newspaper of general circulation within the district and mailed to any known creditors, holders of contracts, and obligees at least thirty days prior to such hearing. After such hearing if the county legislative authority finds the converting of such district to be in the best interest of that district, it shall order that such sewer improvement district shall become a ((sewer)) district and fix the date of such conversion. All debts, contracts, and obligations created while attempting to organize or operate a sewerage improvement district and all other financial obligations and powers of the district to satisfy such obligations established under Title 85 RCW are legal and valid until they are fully satisfied or discharged under Title 85 RCW.

      (2) The board of supervisors of a sewerage improvement district in a county with a population of from forty thousand to less than seventy thousand shall act as the board of commissioners of the ((sewer)) district ((created)) under subsection (1) of this section until other members of the board of commissioners of the ((sewer)) district are elected and qualified. There shall be an election on the same date as the 1979 state general election and the seats of all three members of the governing authority of every entity which was previously known as a sewerage improvement district in a county with a population of from forty thousand to less than seventy thousand shall be up for election. The election shall be held in the manner provided for in RCW ((56.12.020)) 57.12.030 for the election of the first board of commissioners of a ((sewer)) district. Thereafter, the terms of office of the members of the governing body shall be determined under RCW ((56.12.020)) 57.12.030.

      Sec. 212. RCW 56.04.130 and 1979 c 35 s 2 are each amended to read as follows:

      Any sewerage improvement district which has been operating as a sewer district shall be a ((sewer)) district under this title as of March 16, 1979, upon being so ordered by the ((board of)) county ((commissioners)) legislative authority of the county in which such district is located after a hearing of which notice is given by publication in a newspaper of general circulation within the district and mailed to any known creditors, holders of contracts, and obligees at least thirty days prior to such hearing. After such hearing if the ((board of)) county ((commissioners)) legislative authority finds that the sewerage improvement district was operating as a ((sewer)) district and that the converting of such district will be in the best interest of that district, it shall order that such sewer improvement district shall become a ((sewer)) district immediately upon the passage of the resolution containing such order. The debts, contracts, and obligations of any sewerage improvement district which has been erroneously operating as a ((sewer)) district are recognized as legal and binding. The members of the government authority of any sewerage improvement district which has been operating as a ((sewer)) district and who were erroneously elected as sewer district commissioners shall be recognized as the governing authority of a ((sewer)) district. The members of the governing authority shall continue in office for the term for which they were elected.


PART III - POWERS


      NEW SECTION. Sec. 301. A district shall have the following powers:

      (1) To acquire by purchase or condemnation, or both, all lands, property and property rights, and all water and water rights, both within and without the district, necessary for its purposes. The right of eminent domain shall be exercised in the same manner and by the same procedure as provided for cities and towns, insofar as consistent with this title, except that all assessment or reassessment rolls to be prepared and filed by eminent domain commissioners or commissioners appointed by the court shall be prepared and filed by the district, and the duties devolving upon the city treasurer are imposed upon the county treasurer;

      (2) To lease real or personal property necessary for its purposes for a term of years for which that leased property may reasonably be needed;

      (3) To construct, condemn and purchase, add to, maintain, and supply waterworks to furnish the district and inhabitants thereof and any other persons, both within and without the district, with an ample supply of water for all uses and purposes public and private with full authority to regulate and control the use, content, distribution, and price thereof in such a manner as is not in conflict with general law and may construct, acquire, or own buildings and other necessary district facilities. Where a customer connected to the district's system uses the water on an intermittent or transient basis, a district may charge for providing water service to such a customer, regardless of the amount of water, if any, used by the customer. District waterworks may include facilities which result in combined water supply and electric generation, if the electricity generated thereby is a byproduct of the water supply system. That electricity may be used by the district or sold to any entity authorized by law to use or distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of water supply. For such purposes, a district may take, condemn and purchase, acquire, and retain water from any public or navigable lake, river or watercourse, or any underflowing water, and by means of aqueducts or pipeline conduct the same throughout the district and any city or town therein and carry it along and upon public highways, roads, and streets, within and without such district. For the purpose of constructing or laying aqueducts or pipelines, dams, or waterworks or other necessary structures in storing and retaining water or for any other lawful purpose such district may occupy the beds and shores up to the high water mark of any such lake, river, or other watercourse, and may acquire by purchase or condemnation such property or property rights or privileges as may be necessary to protect its water supply from pollution. For the purposes of waterworks which include facilities for the generation of electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owner;

      (4) To purchase and take water from any municipal corporation, private person, or entity. A district contiguous to Canada may contract with a Canadian corporation for the purchase of water and for the construction, purchase, maintenance, and supply of waterworks to furnish the district and inhabitants thereof and residents of Canada with an ample supply of water under the terms approved by the board of commissioners;

      (5) To construct, condemn and purchase, add to, maintain, and operate systems of sewers for the purpose of furnishing the district, the inhabitants thereof, and persons outside the district with an adequate system of sewers for all uses and purposes, public and private, including but not limited to on-site sewage disposal facilities, approved septic tanks or approved septic tank systems, other facilities and systems for the collection, interception, treatment, and disposal of wastewater, and for the control of pollution from wastewater and for the protection, preservation, and rehabilitation of surface and underground waters, facilities for the drainage and treatment of storm or surface waters, public highways, streets, and roads with full authority to regulate the use and operation thereof and the service rates to be charged. Sewage facilities may include facilities which result in combined sewage disposal, treatment, or drainage and electric generation, except that the electricity generated thereby is a byproduct of the system of sewers. Such electricity may be used by the district or sold to any entity authorized by law to distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of sewage disposal, treatment, or drainage. For such purposes a district may conduct sewage throughout the district and throughout other political subdivisions within the district, and construct and lay sewer pipe along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights of way necessary for such sewer pipe. A district may erect sewage treatment plants within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from its sewers or its sewage treatment plant. For the purposes of sewage facilities which include facilities that result in combined sewage disposal, treatment, or drainage and electric generation where the electric generation is a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;

      (6) To construct, condemn, acquire, and own buildings and other necessary district facilities;

      (7) To compel all property owners within the district located within an area served by the district's system of sewers to connect their private drain and sewer systems with the district's system under such penalty as the commissioners shall prescribe by resolution. The district may for such purpose enter upon private property and connect the private drains or sewers with the district system and the cost thereof shall be charged against the property owner and shall be a lien upon property served;

      (8) Where a district contains within its borders, abuts, or is located adjacent to any lake, stream, ground water as defined by RCW 90.44.035, or other waterway within the state of Washington, to provide for the reduction, minimization, or elimination of pollutants from those waters in accordance with the district's comprehensive plan, and to issue general obligation bonds, revenue bonds, local improvement district bonds, or utility local improvement bonds for the purpose of paying all or any part of the cost of reducing, minimizing, or eliminating the pollutants from these waters;

      (9) To fix rates and charges for water, sewer, and drain service supplied and to charge property owners seeking to connect to the district's systems, as a condition to granting the right to so connect, in addition to the cost of the connection, such reasonable connection charge as the board of commissioners shall determine to be proper in order that those property owners shall bear their equitable share of the cost of the system. For the purposes of calculating a connection charge, the board of commissioners shall determine the pro rata share of the cost of existing facilities and facilities planned for construction within the next ten years and contained in an adopted comprehensive plan and other costs borne by the district which are directly attributable to the improvements required by property owners seeking to connect to the system. The cost of existing facilities shall not include those portions of the system which have been donated or which have been paid for by grants. The connection charge may include interest charges applied from the date of construction of the system until the connection, or for a period not to exceed ten years, whichever is shorter, at a rate commensurate with the rate of interest applicable to the district at the time of construction or major rehabilitation of the system, or at the time of installation of the lines to which the property owner is seeking to connect. A district may permit payment of the cost of connection and the reasonable connection charge to be paid with interest in installments over a period not exceeding fifteen years. The county treasurer may charge and collect a fee of three dollars for each year for the treasurer's services. Those fees shall be a charge to be included as part of each annual installment, and shall be credited to the county current expense fund by the county treasurer. Revenues from connection charges excluding permit fees are to be considered payments in aid of construction as defined by department of revenue rule.

      Except as otherwise provided in RCW 90.03.525, any public entity and public property, including the state of Washington and state property, shall be subject to rates and charges for sewer, water, storm water control, drainage, and street lighting facilities to the same extent private persons and private property are subject to those rates and charges that are imposed by districts. In setting those rates and charges, consideration may be made of in-kind services, such as stream improvements or donation of property;

      (10) To contract with individuals, associations and corporations, the state of Washington, and the United States;

      (11) To employ such persons as are needed to carry out the district's purposes and fix salaries and any bond requirements for those employees;

      (12) To contract for the provision of engineering, legal, and other professional services as in the board of commissioner's discretion is necessary in carrying out their duties;

      (13) To sue and be sued;

      (14) To loan and borrow funds and to issue bonds and instruments evidencing indebtedness under chapter 57.20 RCW and other applicable laws;

      (15) To transfer funds, real or personal property, property interests, or services subject to RCW 57.08.015;

      (16) To levy taxes in accordance with this chapter and chapters 57.04 and 57.20 RCW;

      (17) To provide for making local improvements and to levy and collect special assessments on property benefitted thereby, and for paying for the same or any portion thereof in accordance with chapter 57.16 RCW;

      (18) To establish street lighting systems under RCW 57.08.060;

      (19) To exercise such other powers as are granted to water-sewer districts by this title or other applicable laws; and

      (20) To exercise any of the powers granted to cities and counties with respect to the acquisition, construction, maintenance, operation of, and fixing rates and charges for waterworks and systems of sewerage and drainage.

      NEW SECTION. Sec. 302. Except upon approval of both districts by resolution, a district may not provide a service within an area in which that service is available from another district or within an area in which that service is planned to be made available under an effective comprehensive plan of another district.

      Sec. 303. RCW 57.08.011 and 1989 c 308 s 14 are each amended to read as follows:

      A ((water)) district may enter into a contract with any person, corporation, or other entity, public or private, that owns a water system located in the ((water)) district to manage, operate, maintain, or repair the water system. Such a contract may be entered into only if the general comprehensive plan of the ((water)) district reflects the water system that is to be so managed, operated, maintained, or repaired.

      A ((water)) district shall be liable to provide the services provided in such a contract only if the required contractual payments are made to the district, and such payments shall be secured by a lien on the property served by the water system to the same extent that rates and charges imposed by the ((water)) district constitute liens on the property served by the district. The responsibility for all costs incurred by the water system in complying with water quality laws, regulations, and standards shall be solely that of the water system and not the ((water)) district, except to the extent payments have been made to the district for the costs of such compliance.

      A ((water)) district periodically may transfer to another account surplus moneys that may accumulate in an account established by the district to receive payments for the provision of services for such a water system.

      Sec. 304. RCW 57.08.014 and 1983 c 198 s 2 are each amended to read as follows:

      In addition to the authority of a ((water)) district to establish classifications for rates and charges and impose such rates and charges, ((as provided in RCW 57.08.010 and 57.20.020,)) a ((water)) district may adjust((,)) or delay ((such)) those rates and charges for ((poor)) low-income persons or classes of ((poor)) low-income persons, including but not limited to, poor handicapped persons and poor senior citizens. Other financial assistance available to ((poor)) low-income persons shall be considered in determining charges and rates under this section. Notification of special rates or charges established under this section shall be provided to all persons served by the district annually and upon initiating service. Information on cost shifts caused by establishment of the special rates or charges shall be included in the notification. Any reduction in charges and rates granted to ((poor)) low-income persons in one part of a service area shall be uniformly extended to ((poor)) low-income persons in all other parts of the service area.

      Sec. 305. RCW 57.08.015 and 1993 c 198 s 19 are each amended to read as follows:

      The board of commissioners of a ((water)) district may sell, at public or private sale, property belonging to the district if the board determines that the property is not and will not be needed for district purposes and if the board gives notice of intention to sell as in this section provided((: PROVIDED, That)). However, no such notice of intention shall be required to sell personal property of less than two thousand five hundred dollars in value.

      The notice of intention to sell shall be published once a week for two consecutive weeks in a newspaper of general circulation in the district. The notice shall describe the property and state the time and place at which it will be sold or offered for sale, the terms of sale, whether the property is to be sold at public or private sale, and if at public sale the notice shall call for bids, fix the conditions ((thereof)) of the bids and ((shall)) reserve the right to reject any and all bids.

      Sec. 306. RCW 57.08.016 and 1993 c 198 s 20 are each amended to read as follows:

      (1) There shall be no private sale of real property where the appraised value exceeds the sum of two thousand five hundred dollars. Subject to the provisions of subsection (2) of this section, no real property ((valued at two thousand five hundred dollars or more)) of the district shall be sold for less than ninety percent of the value thereof as established by a written appraisal made not more than six months prior to the date of sale by three disinterested real estate brokers licensed under the laws of the state or professionally designated real estate appraisers as defined in RCW 74.46.020. The appraisal shall be signed by the appraisers and filed with the secretary of the board of commissioners of the district, who shall keep it at the office of the district open to public inspection. Any notice of intention to sell real property of the district shall recite the appraised value thereof((: PROVIDED, That there shall be no private sale of real property where the appraised value exceeds the sum of two thousand five hundred dollars)).

      (2) If no purchasers can be obtained for the property at ninety percent or more of its appraised value after one hundred twenty days of offering the property for sale, the board of commissioners of the ((water)) district may adopt a resolution stating that the district has been unable to sell the property at the ninety percent amount. The ((water)) district then may sell the property at the highest price it can obtain at public auction. A notice of intention to sell at public auction shall be published once a week for two consecutive weeks in a newspaper of general circulation in the ((water)) district. The notice shall describe the property, state the time and place at which it will be offered for sale and the terms of sale, and shall call for bids, fix the conditions thereof, and reserve the right to reject any and all bids.

      Sec. 307. RCW 57.08.030 and 1933 c 142 s 2 are each amended to read as follows:

      ((Should the commissioners of any such water district decide that it would be to the advantage of)) (1) Whenever any district shall have installed a distributing system of water mains and laterals, and as a source of supply of water shall be purchasing or intending to purchase water from any city or town, and whenever it appears to be advantageous to the water consumers ((of such water district to make the conveyance provided for in RCW 57.08.020, they shall cause the proposition of making such conveyance to be submitted to the electors of the water district at any general election or at a special election to be called for the purpose of voting on the same. If at any such election a majority of the electors voting at such election shall be in favor of making such conveyance, the water district commissioners)) in the district that such city or town shall take over the water system of the district and supply water to those water users, the commissioners of the district, when authorized as provided in subsection (2) of this section, shall have the right to convey ((to such city or town the mains and laterals belonging to the water district upon such city or town entering into a contract satisfactory to the water commissioners to)) the distributing system to that city or town if that city or town is willing to accept, maintain, and repair the same.

      (2) Should the commissioners of the district decide that it would be to the advantage of the water consumers of the district to make the conveyance provided for in subsection (1) of this section, they shall cause the proposition of making that conveyance to be submitted to the voters of the district at any general election or at a special election to be called for the purpose of voting on the same. If at the election a majority of the voters voting on the proposition shall be in favor of making the conveyance, the district commissioners shall have the right to convey to the city or town the mains and laterals belonging to the district upon the city or town entering into a contract satisfactory to the commissioners to maintain and repair the same.

      (3) Whenever a city or town located wholly or in part within a district shall enter into a contract with the commissioners of a district providing that the city or town shall take over all of the operation of the facilities of the district located within its boundaries, the area of the district located within the city or town shall upon the execution of the contract cease to be served by the district for water service purposes. However, the affected land within that city or town shall remain liable for the payment of all assessments, any lien upon the property at the time of the execution of the agreement, and for any lien of all general obligation bonds due at the date of the contract, and the city shall remain liable for its fair prorated share of the debt of the area for any revenue bonds, outstanding as of the date of contract.

      Sec. 308. RCW 57.08.040 and 1933 c 142 s 3 are each amended to read as follows:

      Whenever any city or town is selling or proposes to sell water to a ((water district organized under the laws of the state of Washington and the provisions of RCW 57.08.020 and 57.08.030 have been complied with, any such)) district, the city or town may by ordinance accept a conveyance of any ((such)) distributing system and enter into a contract with the ((water)) district for the maintenance and repair of the system and the supplying of water to the ((water)) district consumers.

      Sec. 309. RCW 56.08.060 and 1981 c 45 s 4 are each amended to read as follows:

      A ((sewer)) district may enter into contracts with any county, city, town, ((sewer district, water district,)) or any other municipal corporation, or with any private person((, firm)) or corporation, for the acquisition, ownership, use, and operation of any property, facilities, or services, within or without the ((sewer)) district, and necessary or desirable to carry out the purposes of the ((sewer district, and a sewer district or a water district duly authorized to exercise sewer district powers may provide sewer service)) district. A district may provide water, sewer, drainage, or street lighting services to property owners in areas within or without the limits of the district((: PROVIDED, That if any such area)), except that if the area to be served is located within another existing district duly authorized to exercise ((sewer)) district powers in ((such)) that area, then water, sewer, drainage, or street lighting service may not be so provided by contract or otherwise without the consent by resolution of the board of commissioners of ((such)) that other district.

      Sec. 310. RCW 57.08.047 and 1989 c 84 s 57 are each amended to read as follows:

      The provision of water or sewer service beyond the boundaries of a ((water)) district may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 311. RCW 57.08.050 and 1994 c 31 s 2 are each amended to read as follows:

      (1) ((The board of water commissioners shall have authority to create and fill such positions and fix salaries and bonds thereof as it may by resolution provide.

      (2))) All ((materials purchased and)) work ordered, the estimated cost of which is in excess of five thousand dollars, shall be let by contract. All contract projects, the estimated cost of which is less than fifty thousand dollars, may be awarded to a contractor using ((a)) the small works roster process provided in RCW 39.04.155 ((or the process provided in RCW 39.04.190 for purchases)). The board of ((water)) commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster. All contract projects equal to or in excess of fifty thousand dollars shall be let by competitive bidding. Before awarding any such contract the board of ((water)) commissioners shall publish a notice in a newspaper of general circulation where the district is located at least once thirteen days before the last date upon which bids will be received, inviting sealed proposals for such work, plans and specifications which must at the time of publication of such notice be on file in the office of the board of ((water)) commissioners subject to the public inspection. ((Such)) The notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed with the board of water commissioners on or before the day and hour named therein.

      (((3))) Each bid shall be accompanied by a certified or cashier's check or postal money order payable to the order of the county treasurer for a sum not less than five percent of the amount of the bid, or accompanied by a bid bond in an amount not less than five percent of the bid with a corporate surety licensed to do business in the state, conditioned that the bidder will pay the district as liquidated damages the amount specified in the bond, unless the bidder enters into a contract in accordance with ((his or her)) the bidder's bid, and no bid shall be considered unless accompanied by such check, cash or bid bond. At the time and place named such bids shall be publicly opened and read and the board of ((water)) commissioners shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon plans and specifications on file or to the best bidder submitting ((his or her)) the bidder's own plans and specifications((: PROVIDED, That)). However, no contract shall be let in excess of the cost of the materials or work. The board of ((water)) commissioners may reject all bids for good cause and readvertise and in such case all checks, cash or bid bonds shall be returned to the bidders. If ((such)) the contract ((be)) is let, then all checks, cash, or bid bonds shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for ((the purchase of such materials or)) doing ((such)) the work, and a bond to perform such work furnished with sureties satisfactory to the board of ((water)) commissioners in the full amount of the contract price between the bidder and the commission in accordance with the bid. If the bidder fails to enter into the contract in accordance with the bid and furnish ((such)) the bond within ten days from the date at which the bidder is notified that ((he or she)) the bidder is the successful bidder, the check, cash, or bid bonds and the amount thereof shall be forfeited to the ((water)) district((: PROVIDED, That)). If the bidder fails to enter into a contract in accordance with ((his or her)) the bidder's bid, and the board of ((water)) commissioners deems it necessary to take legal action to collect on any bid bond required ((herein)) by this section, then the ((water)) district shall be entitled to collect from the bidder any legal expenses, including reasonable attorneys' fees occasioned thereby.

      (((4))) (2) Any purchase of materials, supplies, or equipment, with an estimated cost in excess of ten thousand dollars, shall be by contract. Any purchase of materials, supplies, or equipment, with an estimated cost of from five thousand dollars to less than fifty thousand dollars shall be made using the process provided in RCW 39.04.155 or by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section. Any purchase of materials, supplies, or equipment with an estimated cost of fifty thousand dollars or more shall be made by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section.

      (3) In the event of an emergency when the public interest or property of the ((water)) district would suffer material injury or damage by delay, upon resolution of the board of ((water)) commissioners, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board((,)) or official acting for the board((,)) may waive the requirements of this chapter with reference to any purchase or contract. In addition, these requirements may be waived for purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation.

      Sec. 312. RCW 57.08.060 and 1987 c 449 s 11 are each amended to read as follows:

      (((1))) In addition to the powers given ((water)) districts by law, ((they)) a district shall also have power to acquire, construct, maintain, operate, and develop street lighting systems.

      (((2))) To establish a street lighting system, the board of ((water)) commissioners shall adopt a resolution proposing a street lighting system and delineating the boundaries of the area to be served by the proposed street lighting system. The board shall conduct a public hearing on the resolution to create a street lighting system. Notice of the hearing shall be published at least once each week for two consecutive weeks in one or more newspapers of general circulation in the area to be served by the proposed street lighting system. Following the hearing, the board may by resolution establish the street lighting system.

      (((3))) A street lighting system shall not be established if, within thirty days following the decision of the board, a petition opposing the street lighting system is filed with the board and contains the signatures of at least forty percent of the voters registered in the area to be served by the proposed system.

      (((4))) The ((water)) district has the same powers of ((collection for)) imposing charges for providing street lighting, collecting delinquent street lighting charges, and financing street lighting systems by issuing general obligation bonds, issuing revenue bonds, and creating improvement districts as ((the water district)) it has for ((collection of)) imposing charges for providing water, collecting delinquent water service charges, and financing water systems by issuing general obligation bonds, issuing revenue bonds, and creating improvement districts.

      (((5) Any street lighting system established by a water district prior to March 31, 1982, is declared to be legal and valid.))

      Sec. 313. RCW 57.08.065 and 1981 c 45 s 11 are each amended to read as follows:

      ((In addition to the powers now given water districts by law, they)) (1) A district shall ((also)) have power to establish, maintain, and operate a mutual water ((and)), sewer, drainage, and street lighting system ((or)), a ((separate sewer system within their water district area in the same manner as provided by law for the doing thereof in connection with water supply)) mutual system of any two or three of the systems, or separate systems.

      ((In addition thereto, a water district constructing, maintaining and operating a sanitary sewer system may exercise all the powers permitted to a sewer district under Title 56 RCW, including, but not limited to, the right to compel connections to the district's system, liens for delinquent sewer connection charges or sewer service charges, and all other powers presently exercised by or which may be hereafter granted to such sewer districts: PROVIDED, That a water district may not exercise sewer district powers in any area within its boundaries which is part of an existing district which previously shall have been duly authorized to exercise sewer district powers in such area without the consent by resolution of the board of commissioners of such other district: PROVIDED FURTHER, That no water district shall proceed to exercise the powers herein granted to establish, maintain, construct and operate any sewer system without first obtaining written approval and certification of necessity so to do from the department of ecology and department of social and health services. Any comprehensive plan for a system of sewers or addition thereto or betterment thereof shall be approved by the same county and state officials as are required to approve such plans adopted by a sewer district.

      A water district shall have the power to issue general obligation bonds for sewer system purposes: PROVIDED, That a proposition to authorize general obligation bonds payable from excess tax levies for sewer system purposes pursuant to chapter 56.16 RCW shall be submitted to all of the qualified voters within that part of the water district which is not contained within another existing district duly authorized to exercise sewer district powers, and the taxes to pay the principal of and interest on the bonds approved by such voters shall be levied only upon all of the taxable property within such part of the water district.))

      (2) Where any two or more districts include the same territory as of the effective date of this section, none of the overlapping districts may provide any service that was made available by any of the other districts prior to the effective date of this section within the overlapping territory without the consent by resolution of the board of commissioners of the other district or districts.

      (3) A district that was a water district prior to the effective date of this section, that did not operate a sewer system prior to the effective date of this section, may not proceed to exercise the powers to establish, maintain, construct, and operate any sewer system without first obtaining written approval and certification of necessity from the department of ecology and department of health. Any comprehensive plan for a system of sewers or addition thereto or betterment thereof proposed by a district that was a water district prior to the effective date of this section shall be approved by the same county and state officials as were required to approve such plans adopted by a sewer district immediately prior to the effective date of this section and as subsequently may be required.

      NEW SECTION. Sec. 314. The commissioners of any district shall provide for revenues by fixing rates and charges for furnishing sewer and drainage service to those to whom service is available or for providing water, such rates and charges to be fixed as deemed necessary by the commissioners, so that uniform charges will be made for the same class of customer or service. Rates and charges may be combined for the furnishing of more than one type of sewer service, such as but not limited to storm or surface water and sanitary.

      In classifying customers of such water, sewer, or drainage system, the board of commissioners may in its discretion consider any or all of the following factors: The difference in cost of service to various customers; the location of the various customers within and without the district; the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the service furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful practices; capital contributions made to the system including but not limited to assessments; and any other matters which present a reasonable difference as a ground for distinction. Rates shall be established as deemed proper by the commissioners and as fixed by resolution and shall produce revenues sufficient to take care of the costs of maintenance and operation, revenue bond and warrant interest and principal amortization requirements, and all other charges necessary for efficient and proper operation of the system.

      The commissioners shall enforce collection of connection charges, and rates and charges for water supplied against property owners connecting with the system or receiving such water, and for sewer and drainage services charged against property to which and its owners to whom the service is available, such charges being deemed charges against the property served, by addition of penalties of not more than ten percent thereof in case of failure to pay the charges at times fixed by resolution. The commissioners may provide by resolution that where either connection charges or rates and charges for services supplied are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon at the rate of not more than the prime lending rate of the district's bank plus four percentage points per year shall be a lien against the property upon which the service was received, subject only to the lien for general taxes.

      The district may, at any time after the connection charges or rates and charges for services supplied or available and penalties are delinquent for a period of sixty days, bring suit in foreclosure by civil action in the superior court of the county in which the real property is located. The court may allow, in addition to the costs and disbursements provided by statute, attorneys' fees, title search and report costs, and expenses as it adjudges reasonable. The action shall be in rem, and may be brought in the name of the district against an individual or against all of those who are delinquent in one action. The laws and rules of the court shall control as in other civil actions.

      In addition to the right to foreclose provided in this section, the district may also cut off all or part of the service after charges for water or sewer service supplied or available are delinquent for a period of sixty days.

      Sec. 315. RCW 56.08.012 and 1986 c 278 s 59 are each amended to read as follows:

      Except as otherwise provided in RCW 90.03.525, any public entity and public property, including ((the)) state of Washington ((and state)) property, shall be subject to rates and charges for storm water control facilities to the same extent as private persons and private property are subject to such rates and charges that are imposed by ((sewer)) districts pursuant to ((RCW 56.08.010 or 56.16.090)) section 301 or 314 of this act. In setting ((these)) those rates and charges, consideration may be ((made of)) given to in-kind services, such as stream improvements or donation of property.

      Sec. 316. RCW 57.08.100 and 1991 sp.s. c 30 s 25 are each amended to read as follows:

      Subject to chapter 48.62 RCW, a ((water)) district, by a majority vote of its board of commissioners, may enter into contracts to provide health care services and/or group insurance and/or term life insurance and/or social security insurance for the benefit of its employees and may pay all or any part of the cost thereof. Any two or more ((water)) districts ((or any one or more water districts and one or more sewer districts)), by a majority vote of their respective boards of commissioners, may, if deemed expedient, join in the procuring of such health care services and/or group insurance and/or term life insurance, and the board of commissioners of ((each)) a participating ((sewer and/or water)) district may by appropriate resolution authorize ((their)) its respective district to pay all or any portion of the cost thereof.

      A ((water)) district with five thousand or more customers providing health, group, or life insurance to its employees may provide its commissioners with the same coverage((: PROVIDED, That)). However, the per person amounts for such insurance paid by the district shall not exceed the per person amounts paid by the district for its employees.

      Sec. 317. RCW 57.08.105 and 1973 c 125 s 7 are each amended to read as follows:

      The board of ((water)) commissioners of each ((water)) district may purchase liability insurance with such limits as ((they)) it may deem reasonable for the purpose of protecting ((their)) its officials and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

      Sec. 318. RCW 57.08.110 and 1995 c 301 s 76 are each amended to read as follows:

      To improve the organization and operation of ((water)) districts, the commissioners of two or more such districts may form an association thereof, for the purpose of securing and disseminating information of value to the members of the association and for the purpose of promoting the more economical and efficient operation of the comprehensive plans of water supply and sewage treatment and disposal in their respective districts. The commissioners of ((water)) districts so associated shall adopt articles of association, select such officers as they may determine, and employ and discharge such agents and employees as shall be deemed convenient to carry out the purposes of the association. ((Water)) District commissioners and employees are authorized to attend meetings of the association. The expenses of ((the)) an association may be paid from the maintenance or general funds of the associated districts in such manner as shall be provided in the articles of association((: PROVIDED, That)). However, the aggregate contributions made to ((the)) an association by ((the)) a district in any calendar year shall not exceed the amount ((which)) that would be raised by a levy of two and one-half cents per thousand dollars of assessed value against the taxable property of the district. The financial records of such an association shall be subject to audit by the state auditor.

      Sec. 319. RCW 57.08.120 and 1991 c 82 s 6 are each amended to read as follows:

      A ((water)) district may lease out real property which it owns or in which it has an interest and which is not immediately necessary for its purposes upon such terms as the board of ((water)) commissioners deems proper((: PROVIDED, That)). No such lease shall be made until the ((water)) district has first caused notice thereof to be published twice in a newspaper in general circulation in the ((water)) district, the first publication to be at least fifteen days and the second at least seven days prior to the making of such lease((, which)). The notice shall describe the property ((proposed to be leased out, to whom, for what purpose, and the rental to be charged therefor)), the lessee, and the lease payments. A hearing shall be held pursuant to the terms of the ((said)) notice, at which time any and all persons who may be interested shall have the right to appear and to be heard.

      No such lease shall be ((for a period longer than twenty-five years, and each lease of real property shall be)) made unless secured by a bond conditioned ((to perform)) on the performance of the terms of ((such)) the lease, with surety satisfactory to the commissioners((, in a penalty not less than the rental for one-sixth of the term: PROVIDED, That the penalty shall not be less than the rental for one year where the term is one year or more. In a lease, the term of which exceeds five years, and when at the option of the commissioners, it is so stipulated in the lease, the commission shall accept, with surety satisfactory to it,)) and with a penalty of not less than one-sixth of the term of the lease or for one year's rental, whichever is greater.

      No such lease shall be made for a term longer than twenty-five years. In cases involving leases of more than five years, the commissioners may provide for or stipulate to acceptance of a bond conditioned ((to perform the terms of the lease for some part of the term, in no event less than five years (unless the remainder of the unexpired term is less than five years, in which case for the full remainder) and in every such case the commissioners shall require of the lessee, another or other like bond to be delivered within two years, and not)) on the performance of a part of the term for five years or more whenever it is further provided that the lessee must procure and deliver to the commissioners renewal bonds with like terms and conditions no more than two years prior nor less than one year prior to the expiration of ((the period covered by the existing bond, covering an additional part of the term in accordance with the foregoing provisions in respect to the original bond, and so on until the end of the term so that there will always be in force a bond securing the performance of the lease, and the penalty in each bond shall be not less than the rental for one-half the period covered thereby, but no)) such bond during the entire term of the lease. However, no such bond shall be construed to secure the furnishing of any other bond by the same surety or indemnity company. ((However,)) The board of commissioners may require a reasonable security deposit in lieu of a bond on leased ((real)) property owned by a ((water)) district.

      The commissioners may accept as surety on any bond required by this section((, either)) an approved surety company ((or one or more persons satisfactory to the commissioners, or in lieu of such bond may accept a deposit as security of such property or collateral or the giving of such other form of security as may be satisfactory to the commissioners)), or may accept in lieu thereof a secured interest in property of a value at least twice the amount of the bond required, conditioned further that in the event the commissioners determine that the value of the bond security has become or is about to become impaired, additional security shall be required from the lessee.

      The authority granted under this section shall not be exercised by the board of commissioners unless the property is declared by resolution of the board of commissioners to be property for which there is a future need by the district and for the use of which provision is made in the comprehensive plan of the district as the same may be amended from time to time.

      Sec. 320. RCW 57.08.140 and 1971 ex.s. c 243 s 8 are each amended to read as follows:

      The provisions of RCW 57.08.015, 57.08.016, and 57.08.120 ((and 57.08.130)) shall have no application as to the sale or conveyance of real or personal property or any interest or right therein by a ((water)) district to the county or park and recreation district wherein such property is located for park and recreational purposes, but in ((such)) those cases the provisions of RCW 39.33.060 shall govern.

      Sec. 321. RCW 57.08.017 and 1986 c 244 s 16 are each amended to read as follows:

      RCW 57.08.015, 57.08.016, 57.08.050, and 57.08.120((, and 57.08.130)) shall not apply to agreements entered into under authority of chapter 70.150 RCW ((provided)) if there is compliance with the procurement procedure under RCW 70.150.040.

      Sec. 322. RCW 57.08.180 and 1995 c 376 s 15 are each amended to read as follows:

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

      Sec. 323. RCW 57.08.150 and 1987 c 309 s 4 are each amended to read as follows:

      A ((water)) district may not require that a specified engineer prepare plans or designs for extensions to its systems if the extensions are to be financed and constructed by a private party, but may review, and approve or reject, the plans or designs which have been prepared for such a private party based upon standards and requirements established by the ((water)) district.

      Sec. 324. RCW 57.08.160 and 1989 c 421 s 5 are each amended to read as follows:

      Any district is hereby authorized, within limits established by the Constitution of the state of Washington, to assist the owners of structures in financing the acquisition and installation of fixtures, systems, and equipment, for compensation or otherwise, for the conservation or more efficient use of water in the structures under a water conservation plan adopted by the district if the cost per unit of water saved or conserved by the use of the fixtures, systems, and equipment is less than the cost per unit of water supplied by the next least costly new water source available to the district to meet future demand. Except where otherwise authorized, assistance shall be limited to:

      (1) Providing an inspection of the structure, either directly or through one or more inspectors under contract, to determine and inform the owner of the estimated cost of purchasing and installing conservation fixtures, systems, and equipment for which financial assistance will be approved and the estimated life cycle savings to the water system and the consumer that are likely to result from the installation of the fixtures, systems, or equipment;

      (2) Providing a list of businesses that sell and install the fixtures, systems, and equipment within or in close proximity to the service area of the city or town, each of which businesses shall have requested to be included and shall have the ability to provide the products in a workmanlike manner and to utilize the fixtures, systems, and equipment in accordance with the prevailing national standards;

      (3) Arranging to have approved conservation fixtures, systems, and equipment installed by a private contractor whose bid is acceptable to the owner of the structure and verifying the installation; and

      (4) Arranging or providing financing for the purchase and installation of approved conservation fixtures, systems, and equipment. The fixtures, systems, and equipment shall be purchased or installed by a private business, the owner, or the utility.

      Pay back shall be in the form of incremental additions to the utility bill, billed either together with the use charge or separately. Loans shall not exceed one hundred twenty months in length.

      Sec. 325. RCW 57.08.170 and 1991 c 82 s 7 are each amended to read as follows:

      A ((water)) district may adopt a water conservation plan and emergency water use restrictions. The district may enforce a water conservation plan and emergency water use restrictions by imposing a fine as provided by resolution for failure to comply with any such plan or restrictions. The commissioners may provide by resolution that if a fine for failure to comply with the water conservation plan or emergency water use restrictions is delinquent for a specified period of time, the district shall certify the delinquency to the treasurer of the county in which the real property is located and serve notice of the delinquency on the subscribing water customer who fails to comply, and the fine is then a separate item for inclusion on the bill of the party failing to comply with the water conservation plan or emergency water use restrictions.

      NEW SECTION. Sec. 326. Sections 301, 302, and 314 of this act are each added to chapter 57.08 RCW.


PART IV - OFFICERS AND ELECTIONS


      Sec. 401. RCW 57.12.010 and 1985 c 330 s 6 are each amended to read as follows:

      The governing body of a district shall be a board of ((water)) commissioners consisting of three members, or five members as provided in RCW 57.12.015, or more, as provided in the event of merger or consolidation. The board shall annually elect one of its members as president and another as secretary.

       The board shall by resolution adopt rules governing the transaction of its business and shall adopt an official seal. All proceedings shall be by resolution recorded in a book kept for that purpose which shall be a public record.

      A district shall provide by resolution for the payment of compensation to each of its commissioners at a rate of fifty dollars for each day or portion thereof devoted to the business of the district((: PROVIDED, That)). However the compensation for each commissioner shall not exceed four thousand eight hundred dollars per year. In addition, the secretary may be paid a reasonable sum for clerical services.

      Any commissioner may waive all or any portion of his or her compensation payable under this section as to any month or months during ((his or her)) the commissioner's term of office, by a written waiver filed with the district ((as provided in this section. The waiver, to be effective, must be filed)) at any time after the commissioner's election and prior to the date on which the compensation would otherwise be paid. The waiver shall specify the month or period of months for which it is made.

       No commissioner shall be employed full time by the district. ((Each)) A commissioner shall be reimbursed for reasonable expenses actually incurred in connection with ((such)) district business, including ((his)) subsistence and lodging((,)) while away from the commissioner's place of residence and mileage for use of a privately-owned vehicle at the mileage rate authorized in RCW 43.03.060 ((as now existing or hereafter amended)).

      ((The date for holding elections and taking office as herein provided shall be subject to the provisions of any consolidated election laws that may be made applicable thereto although previously enacted.))

      Sec. 402. RCW 57.12.015 and 1994 c 223 s 67 are each amended to read as follows:

      (1) In the event a three-member board of commissioners of any ((water)) district with any number of customers determines by resolution that it would be in the best interest of the district to increase the number of commissioners from three to five, or ((in the event)) if the board of a district with any number of customers is presented with a petition signed by ten percent of the registered voters resident within the district who voted in the last general municipal election calling for an increase in the number of commissioners of the district, the board shall submit a resolution to the county auditor requesting that an election be held. Upon receipt of the resolution, the county auditor shall call a special election to be held within the ((water)) district ((in accordance with RCW 29.13.010 and 29.13.020)), at which election a proposition in substantially the following language shall be submitted to the voters:

 

Shall the Board of Commissioners of    (name and/or ((No.)) number of ((water)) district)    be increased from three to five members?

Yes . . . . .

No  . . . . .


If the proposition receives a majority approval at the election the board of commissioners of the ((water)) district shall be increased to five members.

      (2) In any ((water)) district with more than ten thousand customers, if a three-member board of commissioners determines by resolution that it would be in the best interest of the district to increase the number of commissioners from three to five, the number of commissioners shall be so increased without an election, unless within ninety days of adoption of that resolution a petition requesting an election and signed by at least ten percent of the registered voters who voted in the last ((general)) municipal general election is filed with the board. If such a petition is received, the board shall submit the resolution and the petition to the county auditor, who shall call a special election in the manner described in this section ((and in accordance with the provisions of RCW 29.13.010 and 29.13.020)).

      (3) The two additional positions created on boards of ((water)) commissioners by this section shall be filled initially ((either)) as for a vacancy ((or by nomination under RCW 57.12.039)), except that the appointees ((or newly elected commissioners)) shall draw lots, one appointee to serve until the next ((general water)) district general election after the appointment, at which two commissioners shall be elected for six-year terms, and the other appointee to serve until the second ((general water)) district general election after the appointment, at which two commissioners shall be elected for six-year terms.

      Sec. 403. RCW 57.12.030 and 1994 c 223 s 69 are each amended to read as follows:

      ((Water district elections shall be held in accordance with the general election laws of this state.))

      Except as in this section otherwise provided, the term of office of each ((water)) district commissioner shall be six years, such term to be computed from the first day of January following the election, and commissioners shall serve until their successors are elected and qualified and assume office in accordance with RCW 29.04.170.

      Three ((water)) initial district commissioners shall be elected at the same election at which the proposition is submitted to the voters as to whether such ((water)) district shall be formed. The election of ((water)) initial district commissioners shall be null and void if the ballot proposition to form the ((water)) district is not approved. Each candidate shall run for one of three separate commissioner positions. A special filing period shall be opened as provided in RCW 29.15.170 and 29.15.180. The person receiving the greatest number of votes for each position shall be elected to that position.

      The ((newly elected water)) initial district commissioners shall assume office immediately when they are elected and qualified. Staggering of the terms of office for the ((new water)) initial district commissioners shall be accomplished as follows: (1) The person who is elected receiving the greatest number of votes shall be elected to a six-year term of office if the election is held in an odd-numbered year or a five-year term of office if the election is held in an even-numbered year; (2) the person who is elected receiving the next greatest number of votes shall be elected to a four-year term of office if the election is held in an odd-numbered year or a three-year term of office if the election is held in an even-numbered year; and (3) the other person who is elected shall be elected to a two-year term of office if the election is held in an odd-numbered year or a one-year term of office if the election is held in an even-numbered year. The terms of office shall be calculated from the first day of January after the election.

      Thereafter, commissioners shall be elected to six-year terms of office. Commissioners shall serve until their successors are elected and qualified and assume office in accordance with RCW 29.04.170.

      Sec. 404. RCW 57.12.039 and 1994 c 223 s 70 are each amended to read as follows:

      (1) Notwithstanding RCW 57.12.020 and 57.12.030, the board of commissioners may provide by majority vote that subsequent commissioners be elected from commissioner districts within the district. If the board exercises this option, it shall divide the district into three, or five if the number of commissioners has been increased under RCW 57.12.015, commissioner districts of approximately equal population following current precinct and district boundaries.

      (2) Commissioner districts shall be used as follows: (a) Only a registered voter who resides in a commissioner district may be a candidate for, or serve as, a commissioner of the commissioner district; and (b) only voters of a commissioner district may vote at a primary to nominate candidates for a commissioner of the commissioner district. Voters of the entire ((water)) district may vote at a general election to elect a person as a commissioner of the commissioner district. Commissioner districts shall be redrawn as provided in chapter 29.70 RCW.

      (3) In ((water)) districts in which commissioners are nominated from commissioner districts, at the inception of a five-member board of commissioners, the new commissioner districts shall be numbered one through five and the three incumbent commissioners shall represent commissioner districts one through three. If, as a result of redrawing the district boundaries two or three of the incumbent commissioners reside in one of the new commissioner districts, the commissioners who reside in the same commissioner district shall determine by lot which of the first three numbered commissioner districts they shall represent for the remainder of their respective terms. A primary shall be held to nominate candidates from districts four and five where necessary and commissioners shall be elected at large at the general election. The persons elected as commissioners from commissioner districts four and five shall take office immediately after qualification as defined under RCW 29.01.135.

      Sec. 405. RCW 57.12.020 and 1994 c 223 s 68 are each amended to read as follows:

      A vacancy on the board shall occur and shall be filled as provided in chapter 42.12 RCW. In addition, if a commissioner is absent from three consecutive scheduled meetings unless by permission of the board, the office may be declared vacant. However, such an action shall not be taken unless the commissioner is notified by mail after two consecutive unexcused absences that the position will be declared vacant if the commissioner is absent without being excused from the next regularly scheduled meeting.


PART V - COMPREHENSIVE PLANS


      Sec. 501. RCW 57.16.010 and 1990 1st ex.s. c 17 s 35 are each amended to read as follows:

      ((The water district commissioners)) Before ordering any improvements ((hereunder)) or submitting to vote any proposition for incurring any indebtedness, the district commissioners shall adopt a general comprehensive plan ((of water supply for the district. They)) for the type or types of facilities the district proposes to provide. A district may prepare a separate general comprehensive plan for each of these services and other services that districts are permitted to provide, or the district may combine any or all of its comprehensive plans into a single general comprehensive plan.

      (1) For a general comprehensive plan of a water supply system, the commissioners shall investigate the several portions and sections of the district for the purpose of determining the present and reasonably foreseeable future needs thereof; shall examine and investigate, determine, and select a water supply or water supplies for such district suitable and adequate for present and reasonably foreseeable future needs thereof; and shall consider and determine a general system or plan for acquiring such water supply or water supplies((;)), and the lands, waters, and water rights and easements necessary therefor, and for retaining and storing any such waters, and erecting dams, reservoirs, aqueducts, and pipe lines to convey the same throughout such district. There may be included as part of the system the installation of fire hydrants at suitable places throughout the district((, and the purchase and maintenance of necessary fire fighting equipment and apparatus, together with facilities for housing same)). The ((water district)) commissioners shall determine a general comprehensive plan for distributing such water throughout such portion of the district as may then reasonably be served by means of subsidiary aqueducts and pipe lines, and a long-term plan for financing the planned projects and the method of distributing the cost and expense thereof ((against such water district and against local improvement districts or utility local improvement districts within such water district for any lawful purpose, and)), including ((any such)) the creation of local improvement districts or utility local improvement districts ((lying wholly or partially within the limits of any city or town in such district)), and shall determine whether the whole or part of the cost and expenses shall be paid from ((water)) revenue or general obligation bonds. ((After July 23, 1989, when the district adopts a general comprehensive plan or plans for an area annexed as provided for in RCW 57.16.010, the district shall include a long-term plan for financing the planned projects. The commissioners may employ such engineering and legal service as in their discretion is necessary in carrying out their duties.

      The)) (2) For a general comprehensive plan for a sewer system, the commissioners shall investigate all portions and sections of the district and select a general comprehensive plan for a sewer system for the district suitable and adequate for present and reasonably foreseeable future needs thereof. The general comprehensive plan shall provide for treatment plants and other methods for the disposal of sewage and industrial and other liquid wastes now produced or which may reasonably be expected to be produced within the district and shall, for such portions of the district as may then reasonably be served, provide for the acquisition or construction and installation of laterals, trunk sewers, intercepting sewers, syphons, pumping stations or other sewage collection facilities, septic tanks, septic tank systems or drainfields, and systems for the transmission and treatment of wastewater. The general comprehensive plan shall provide a long-term plan for financing the planned projects and the method of distributing the cost and expense of the sewer system, including the creation of local improvement districts or utility local improvement districts; and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.

      (3) For a general comprehensive plan for a drainage system, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for a drainage system for the district suitable and adequate for present and future needs thereof. The general comprehensive plan shall provide for a system to collect, treat, and dispose of storm water or surface waters, including use of natural systems and the construction or provision of culverts, storm water pipes, ponds, and other systems. The general comprehensive plan shall provide for a long-term plan for financing the planned projects and provide for a method of distributing the cost and expense of the drainage system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.

      (4) For a general comprehensive plan for street lighting, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for street lighting for the district suitable and adequate for present and future needs thereof. The general comprehensive plan shall provide for a system or systems of street lighting, provide for a long-term plan for financing the planned projects, and provide for a method of distributing the cost and expense of the street lighting system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.

      (5) The commissioners may employ such engineering and legal service as in their discretion is necessary in carrying out their duties.

      (6) Any general comprehensive plan or plans shall be adopted by resolution and submitted to an engineer designated by the legislative authority of the county in which fifty-one percent or more of the area of the district is located, and to the director of health of the county in which the district or any portion thereof is located, and must be approved in writing by the engineer and director of health, except that a comprehensive plan relating to street lighting shall not be submitted to or approved by the director of health. The general comprehensive plan shall be approved, conditionally approved, or rejected by the director of health ((within sixty days of the plan's receipt)) and by the designated engineer within sixty days of ((the plan's receipt)) their respective receipt of the plan. However, this sixty-day time limitation may be extended by the director of health or engineer for up to an additional sixty days if sufficient time is not available to review adequately the general comprehensive plans.

      Before becoming effective, the general comprehensive plan shall also be submitted to, and approved by resolution of, the legislative authority of every county within whose boundaries all or a portion of the ((water)) district lies. The general comprehensive plan shall be approved, conditionally approved, or rejected by each of ((these)) the county legislative authorities pursuant to the criteria in RCW 57.02.040 for approving the formation, reorganization, annexation, consolidation, or merger of ((water)) districts((, and)). The resolution, ordinance, or motion of the legislative body ((which)) that rejects the comprehensive plan or a part thereof shall specifically state in what particular the comprehensive plan or part thereof rejected fails to meet these criteria. The general comprehensive plan shall not provide for the extension or location of facilities that are inconsistent with the requirements of RCW 36.70A.110. Nothing in this chapter shall preclude a county from rejecting a proposed plan because it is in conflict with the criteria in RCW 57.02.040. Each general comprehensive plan shall be deemed approved if the county legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the county legislative authority or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the county legislative authority. However, a county legislative authority may extend this ninety-day time limitation by up to an additional ninety days where a finding is made that ninety days is insufficient to review adequately the general comprehensive plan. In addition, the ((water)) commissioners and the county legislative authority may mutually agree to an extension of the deadlines in this section.

      If the district includes portions or all of one or more cities or towns, the general comprehensive plan shall be submitted also to, and approved by resolution of, the ((governing bodies of such)) legislative authorities of the cities and towns before becoming effective. The general comprehensive plan shall be deemed approved by the city or town ((governing body)) legislative authority if the city or town ((governing body)) legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the city or town or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the county legislative authority. However, a city or town ((governing body)) legislative authority may extend this time limitation by up to an additional ninety days where a finding is made that insufficient time exists to adequately review the general comprehensive plan within these time limitations. In addition, the ((sewer [water])) commissioners and the city or town ((governing body)) legislative authority may mutually agree to an extension of the deadlines in this section.

      Before becoming effective, the general comprehensive plan shall be approved by any state agency whose approval may be required by applicable law. Before becoming effective, any amendment to, alteration of, or addition to, a general comprehensive plan shall also be subject to such approval as if it were a new general comprehensive plan((: PROVIDED, That)). However, only if the amendment, alteration, or addition affects a particular city or town, shall the amendment, alteration, or addition be subject to approval by such particular city or town governing body.

      Sec. 502. RCW 56.08.030 and 1953 c 250 s 5 are each amended to read as follows:

      No expenditure for carrying on any part of ((such)) a general comprehensive plan shall be made other than the necessary salaries of engineers, clerical, ((and)) office expenses, and other professional expenses of the district, and the cost of engineering, surveying, preparation, and collection of data necessary for making and adopting a general plan of improvements in the district, until the general comprehensive plan of improvements has been adopted by the commissioners and approved as provided in RCW ((56.08.020)) 57.16.010.

      NEW SECTION. Sec. 503. A new section is added to Title 57 RCW to read as follows:

      Whenever an area has been annexed to a district after the adoption of a general comprehensive plan, the commissioners shall adopt by resolution a plan for additions and betterments to the original comprehensive plan to provide for the needs of the area annexed.

      Sec. 504. RCW 57.16.140 and 1982 c 213 s 4 are each amended to read as follows:

      The construction of or existence of sewer capacity or water supply ((capacity)) in excess of the needs of the density allowed by zoning shall not be grounds for any legal challenge to any zoning decision by the county.


PART VI - IMPROVEMENT DISTRICTS


      Sec. 601. RCW 57.16.050 and 1987 c 169 s 2 are each amended to read as follows:

      (1) A district may establish local improvement districts within its territory; levy special assessments ((under the mode of)) and allow annual installments on the special assessments, together with interest thereon, extending over a period not exceeding twenty years, on all property specially benefited by a local improvement, on the basis of special benefits to pay in whole or in part the damage or costs of any improvements ordered in the district; and issue local improvement bonds in the local improvement district to be repaid by the collection of special assessments. ((Such)) The bonds may be of any form, including bearer bonds or registered bonds as provided in RCW 39.46.030. The levying, collection, and enforcement of ((such)) special assessments and the issuance of bonds shall be as provided for the levying, collection, and enforcement of special assessments and the issuance of local improvement district bonds by cities and towns insofar as is consistent ((herewith)) with this title. The duties devolving upon the city or town treasurer are ((hereby)) imposed upon the county treasurer of the county in which the real property is located for the purposes hereof. The mode of assessment shall be determined by the ((water)) commissioners by resolution.

      ((When in)) (2) A district may establish a utility local improvement district, in lieu of a local improvement district, if the petition or resolution for ((the establishment of a)) establishing the local improvement district, and ((in)) the approved comprehensive plan or approved amendment thereto or plan providing for additions and betterments to the original plan, previously adopted, ((it is provided)) provides that, except as set forth in this section, the special assessments shall be for the ((sole)) purpose of payment of improvements and payment into the revenue bond fund for the payment of revenue bonds((, then the local improvement district shall be designated as a "utility local improvement district.")). No warrants or bonds shall be issued in a utility local improvement district, but the collection of interest and principal on all special assessments in the utility local improvement district shall be paid into the revenue bond fund, except that special assessments paid before the issuance and sale of bonds may be deposited in a fund for the payment of costs of improvements in the utility local improvement district. Revenue bonds shall be issued using the procedures by which cities and towns issue revenue bonds, insofar as is consistent with this title.

      (((2))) Such revenue bonds may also be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 602. RCW 57.16.060 and 1991 c 190 s 7 are each amended to read as follows:

      Local improvement districts or utility local improvement districts to carry out the whole or any portion of the general comprehensive plan of improvements or plan providing for additions and betterments to ((the)) an original general comprehensive plan previously adopted may be initiated either by resolution of the board of ((water)) commissioners or by petition signed by the owners according to the records of the office of the applicable county auditor of at least fifty-one percent of the area of the land within the limits of the ((local)) improvement district to be created.

      In case the board of ((water)) commissioners desires to initiate the formation of ((a local improvement district or a utility local)) an improvement district by resolution, it first shall ((first)) pass a resolution declaring its intention to order ((such)) the improvement, setting forth the nature and territorial extent of such proposed improvement, designating the number of the proposed ((local improvement district or utility local)) improvement district, and describing the boundaries thereof, stating the estimated cost and expense of the improvement and the proportionate amount thereof which will be borne by the property within the proposed improvement district, and fixing a date, time, and place for a public hearing on the formation of the proposed ((local)) improvement district.

      In case any such ((local improvement district or utility local)) improvement district is initiated by petition, ((such)) the petition shall set forth the nature and territorial extent of the proposed improvement requested to be ordered and the fact that the signers thereof are the owners according to the records of the applicable county auditor of at least fifty-one percent of the area of land within the limits of the ((local improvement district or utility local)) improvement district to be created. Upon the filing of such petition the board shall determine whether the petition is sufficient, and the board's determination thereof shall be conclusive upon all persons. No person may withdraw his or her name from the petition after it has been filed with the board of ((water)) commissioners. If the board finds the petition to be sufficient, it shall proceed to adopt a resolution declaring its intention to order the improvement petitioned for, setting forth the nature and territorial extent of the improvement, designating the number of the proposed ((local)) improvement district and describing the boundaries thereof, stating the estimated cost and expense of the improvement and the proportionate amount thereof which will be borne by the property within the proposed ((local)) improvement district, and fixing a date, time, and place for a public hearing on the formation of the proposed ((local)) improvement district.

      Notice of the adoption of the resolution of intention, whether the resolution was adopted on the initiative of the board or pursuant to a petition of the property owners, shall be published in at least two consecutive issues of a newspaper of general circulation in the proposed ((local)) improvement district, the date of the first publication to be at least fifteen days prior to the date fixed by such resolution for hearing before the board of ((water)) commissioners. Notice of the adoption of the resolution of intention shall also be given each owner or reputed owner of any lot, tract, parcel of land, or other property within the proposed improvement district by mailing the notice at least fifteen days before the date fixed for the public hearing to the owner or reputed owner of the property as shown on the tax rolls of the county ((treasurer)) auditor of the county in which the real property is located at the address shown thereon. Whenever such notices are mailed, the ((water)) commissioners shall maintain a list of ((such)) the reputed property owners, which list shall be kept on file at a location within the ((water)) district and shall be made available for public perusal. The notices shall refer to the resolution of intention and designate the proposed improvement district by number. The notices also shall ((also)) set forth the nature of the proposed improvement, the total estimated cost, the proportion of total cost to be borne by assessments, and the date, time, and place of the hearing before the board of ((water)) commissioners. In the case of improvements initiated by resolution, the notice also shall ((also)): (1) State that all persons desiring to object to the formation of the proposed district must file their written protests with the secretary of the board of ((water)) commissioners no later than ten days after the public hearing; (2) state that if owners of at least forty percent of the area of land within the proposed improvement district file written protests with the secretary of the board, the power of the ((water)) commissioners to proceed with the creation of the proposed improvement district shall be divested; (3) provide the name and address of the secretary of the board; and (4) state the hours and location within the ((water)) district where the names of the property owners within the proposed improvement district are kept available for public perusal. In the case of the notice given each owner or reputed owner by mail, the notice shall set forth the estimated amount of the cost and expense of such improvement to be borne by the particular lot, tract, parcel of land, or other property.

      ((Whether the improvement is initiated by petition or resolution, the board shall conduct a public hearing at the time and place designated in the notice to property owners. At this hearing the board shall hear objections from any person affected by the formation of the local district and may make such changes in the boundaries of the district or such modifications in the plans for the proposed improvement as shall be deemed necessary. The board may not change the boundaries of the district to include property not previously included in it without first passing a new resolution of intention and giving a new notice to property owners in the manner and form and within the time provided in this chapter for the original notice.

      After the hearing and the expiration of the ten-day period for filing written protests, the commissioners shall have jurisdiction to overrule protests and proceed with any such improvement initiated by petition or resolution. The jurisdiction of the commissioners to proceed with any improvement initiated by resolution shall be divested by protests filed with the secretary of the board no later than ten days after the hearing, signed by the owners, according to the records of the applicable county auditor, of at least forty percent of the area of land within the proposed local district.

      If the commissioners find that the district should be formed, they shall by resolution form the district and order the improvement. After execution of the resolution forming the district, the secretary of the board of commissioners shall publish, in a legal publication that serves the area subject to the district, a notice setting forth that a resolution has been passed forming the district and that a lawsuit challenging the jurisdiction or authority of the water district to proceed with the improvement and creating the district must be filed, and notice to the water district served, within thirty days of the publication of the notice. The notice shall set forth the nature of the appeal. Property owners bringing the appeal shall follow the procedures as set forth under appeal under RCW 57.16.090. Whenever a resolution forming a district has been adopted, the formation is conclusive in all things upon all parties, and cannot be contested or questioned in any manner in any proceeding whatsoever by any person not commencing a lawsuit in the manner and within the time provided in this section, except for lawsuits made under RCW 57.16.090.

      Following an appeal, if it is unsuccessful or if no appeal is made under RCW 57.16.090, the commissioners may proceed with the improvement and provide the general funds of the water district to be applied thereto, adopt detailed plans of the local improvement district or utility local improvement district and declare the estimated cost thereof, acquire all necessary land therefor, pay all damages caused thereby, and commence in the name of the water district such eminent domain proceedings as may be necessary to entitle the district to proceed with the work. The board shall thereupon proceed with the work and file with the county treasurer of the county in which the real property is located its roll levying special assessments in the amount to be paid by special assessment against the property situated within the improvement district in proportion to the special benefits to be derived by the property therein from the improvement.))

      Sec. 603. RCW 57.16.073 and 1987 c 315 s 6 are each amended to read as follows:

      Whenever it is proposed that ((a local improvement district or utility local)) an improvement district finance sanitary sewer or potable water facilities, additional notice of the public hearing on the proposed improvement district shall be mailed to the owners of any property located outside of the proposed improvement district that would be required as a condition of federal housing administration loan qualification, at the time of notice, to be connected to the specific sewer or water facilities installed by the ((local)) improvement district. The notice shall include information about this restriction.

      Sec. 604. RCW 57.16.065 and 1989 c 243 s 11 are each amended to read as follows:

      ((Any)) Notice given to the public or to the owners of specific lots, tracts, or parcels of land relating to the formation of ((a local improvement district or utility local)) an improvement district shall contain a statement that actual assessments may vary from assessment estimates so long as they do not exceed a figure equal to the increased true and fair value the improvement adds to the property.

      Sec. 605. RCW 56.20.030 and 1991 c 190 s 3 are each amended to read as follows:

      Whether ((the)) an improvement district is initiated by petition or resolution, the board shall conduct a public hearing at the time and place designated in the notice to property owners. At this hearing the board shall hear objections from any person affected by the formation of the ((local)) improvement district and may make such changes in the boundaries of the improvement district or such modifications in the plans for the proposed improvement as shall be deemed necessary. The board may not change the boundaries of the improvement district to include property not previously included in it without first passing a new resolution of intention and giving a new notice to property owners in the manner and form and within the time provided in this chapter for the original notice.

      After the hearing and the expiration of the ten-day period for filing ((written)) protests, the commissioners shall have jurisdiction to overrule protests and proceed with any such improvement district initiated by petition or resolution. The jurisdiction of the commissioners to proceed with any improvement district initiated by resolution shall be divested((: (a))) by protests filed with the secretary of the board ((no later than)) within ten days after the public hearing, signed by the owners, according to the records of the applicable county auditor, of at least forty percent of the area of land within the proposed ((local)) improvement district ((or (b) by the commissioners not adopting a resolution ordering the improvement at a public hearing held not more than ninety days from the day the resolution of intention was adopted, unless the commissioners file with the county auditor a copy of the notice required by RCW 56.20.020, and in no event at a hearing held more than two years from the day the resolution of intention was adopted)).

      If the commissioners find that the improvement district should be formed, they shall by resolution form the improvement district and order the improvement. After execution of the resolution forming the improvement district, the secretary of the board of commissioners shall publish, in a legal publication that serves the area subject to the improvement district, a notice setting forth that a resolution has been passed forming the improvement district and that a lawsuit challenging the jurisdiction or authority of the ((sewer)) district to proceed with the improvement and creating the improvement district must be filed, and notice to the ((sewer)) district served, within thirty days of the publication of the notice. The notice shall set forth the nature of the appeal. Property owners bringing the appeal shall follow the procedures ((as)) set forth under ((appeal under RCW 56.20.080)) RCW 57.16.090. Whenever a resolution forming ((a)) an improvement district has been adopted, the formation is conclusive in all things upon all parties, and cannot be contested or questioned in any manner in any proceeding whatsoever by any person not commencing a lawsuit in the manner and within the time provided in this section, except for lawsuits made under RCW ((56.20.080)) 57.16.090.

      Following an appeal, if it is unsuccessful or if no appeal is made under RCW ((56.20.080)) 57.16.090, the commissioners may proceed with creating the improvement district, provide the improvement and provide the general funds of the ((sewer)) district to be applied thereto, adopt detailed plans of the ((utility local)) improvement district and declare the estimated cost thereof, acquire all necessary land therefor, pay all damages caused thereby, and commence in the name of the ((sewer)) district such eminent domain proceedings ((and supplemental assessment or reassessment proceedings to pay all eminent domain awards)) as may be necessary to entitle the district to proceed with the ((work)) improvements. The board ((of sewer commissioners)) shall thereupon proceed with the work and file with the county treasurer of ((each)) the county in which the real property is ((to be assessed)) located its roll levying special assessments in the amount to be paid by special assessment against the property situated within the ((local)) improvement district in proportion to the special benefits to be derived by the property therein from the improvements.

      Sec. 606. RCW 57.16.070 and 1982 1st ex.s. c 17 s 17 are each amended to read as follows:

      Before approval of the roll a notice shall be published once a week for two consecutive weeks in a newspaper of general circulation in the ((local)) improvement district, stating that the roll is on file and open to inspection in the office of the secretary, and fixing the time, not less than fifteen or more than thirty days from the date of the first publication of the notice, within which protests must be filed with the secretary against any assessments shown thereon, and fixing a time when a hearing will be held by the commissioners on the protests. Notice shall also be given by mailing, at least fifteen days before the hearing, a similar notice to the owners or reputed owners of the land in the ((local)) improvement district as they appear on the books of the treasurer of the county in which the real property is located. At the hearing, or any adjournment thereof, the commissioners may correct, change, or modify the roll, or any part thereof, or set aside the roll and order a new assessment, and may then by resolution approve it. If an assessment is raised a new notice similar to the first shall be given, after which final approval of the roll may be made. When property has been entered originally upon the roll and the assessment thereon is not raised, no objection thereto shall be considered by the commissioners or by any court on appeal unless the objection is made in writing at, or prior((,)) to, the date fixed for the original hearing upon the roll.

      Sec. 607. RCW 57.16.080 and 1959 c 18 s 13 are each amended to read as follows:

      ((In the event that)) If any portion of the system after its installation is not adequate for the purpose for which it was intended, or ((that)) if for any reason changes, alterations, or betterments are necessary in any portion of the system after its installation, then ((a local)) an improvement district with boundaries which may include one or more existing ((local)) improvement districts may be created in the ((water)) district in the same manner as is provided herein for the creation of ((local)) improvement districts((; that)). Upon the organization of such ((a local)) an improvement district ((as provided for in this paragraph)), the plan of the improvement and the payment of the cost of the improvement shall be carried out in the same manner as is provided herein for the carrying out of and the paying for the improvement in the ((local)) improvement districts previously provided for in this ((act)) title.

      Sec. 608. RCW 57.16.100 and 1929 c 114 s 14 are each amended to read as follows:

      (1) Whenever any assessment roll for local improvements shall have been confirmed by the ((water district commission of such water district as herein provided)) district board of commissioners, the regularity, validity, and correctness of the proceedings relating to ((such)) the improvements, and to the assessment therefor, including the action of the ((water)) district ((commission)) commissioners upon ((such)) the assessment roll and the confirmation thereof, shall be conclusive in all things upon all parties, and cannot in any manner be contested or questioned in any proceeding whatsoever by any person not filing written objections to such roll in the manner and within the time provided in this ((act)) chapter, and not appealing from the action of the ((water district commission)) commissioners in confirming such assessment roll in the manner and within the time in this ((act)) chapter provided. No proceedings of any kind shall be commenced or prosecuted for the purpose of defeating or contesting any such assessment, or the sale of ((any)) property to pay such assessment, or any certificate of delinquency issued therefor, or the foreclosure of any lien issued therefor((: PROVIDED, That)). However, this section shall not be construed as prohibiting the bringing of injunction proceedings to prevent the sale of any real estate upon the grounds (((1))) (a) that the property about to be sold does not appear upon the assessment roll, or (((2))) (b) that ((said)) the assessment had been paid.

      (2) This section also shall not prohibit the correction of clerical errors and errors in the computation of assessments in assessment rolls by the following procedure:

      (a) The board of commissioners may file a petition with the superior court of the county wherein the real property is located, asking that the court enter an order correcting such errors and directing that the county treasurer pay a portion or all of the incorrect assessment by the transfer of funds from the district's maintenance fund, if such relief be necessary.

      (b) Upon the filing of the petition, the court shall set a date for hearing and upon the hearing may enter an order as provided in (a) of this subsection. However, neither the correcting order nor the corrected assessment roll shall result in an increased assessment to the property owner.

      Sec. 609. RCW 57.16.090 and 1991 c 190 s 8 are each amended to read as follows:

      The decision of the ((water)) district ((commission)) board of commissioners upon any objections made within the time and in the manner herein prescribed((,)) may be reviewed by the superior court upon an appeal thereto taken in the following manner. ((Such)) The appeal shall be made by filing written notice of appeal with the secretary of ((said water district commission)) the board of commissioners and with the clerk of the superior court in the county in which the real property is situated within ten days after publication of a notice that the resolution confirming such assessment roll has been adopted, and such notice of appeal shall describe the property and set forth the objections of such appellant to such assessment((; and)). Within ten days from the filing of such notice of appeal with the clerk of the superior court, the appellant shall file with the clerk of the court((,)) a transcript consisting of the assessment roll and the appellant's objections thereto, together with the resolution confirming ((such)) the assessment roll and the record of the ((water)) district ((commission)) commissioners with reference to the assessment((, which)). The transcript, upon payment of the necessary fees therefor, shall be furnished by the secretary of the ((water district commission)) board of commissioners and shall be certified by the secretary to contain full, true, and correct copies of all matters and proceedings required to be included in such transcript. Such fees shall be the same as the fees payable to the county clerk for the preparation and certification of transcripts on appeal to the supreme court or the court of appeals in civil actions. At the time of the filing of the notice of appeal with the clerk of the superior court, the appellant shall file a sufficient bond in the penal sum of two hundred dollars, with at least two sureties, to be approved by the judge of ((said)) the court, conditioned to prosecute such appeal without delay, and if unsuccessful to pay all costs to which the ((water)) district is put by reason of such appeal. The court may order the appellant, upon application therefor, to execute and file such additional bond or bonds as the necessity of the case may require. Within three days after such transcript is filed in the superior court, the appellant shall give written notice to the secretary of ((such water)) the district((,)) that such transcript is filed. The notice shall state a time, not less than three days from the service thereof, when the appellant will call up the cause for hearing((; and)). The superior court shall, at ((said)) such time or at such further time as may be fixed by order of the court, hear and determine such appeal without a jury((; and such cause)). The appeal shall have preference over all civil causes pending in the court, except ((proceedings under an act relating to)) eminent domain proceedings and actions of forcible entry and detainer. The judgment of the court shall confirm, unless the court shall find from the evidence that such assessment is either founded upon ((the)) a fundamentally wrong basis or a decision of the ((council or other legislative body)) board of commissioners thereon was arbitrary or capricious, or both((;)), in which event the judgment of the court shall correct, modify, or annul the assessment insofar as ((the same)) it affects the property of the appellant. A certified copy of the decision of the court shall be filed with the officer who shall have custody of the assessment roll, who shall modify and correct ((such)) the assessment roll in accordance with such decision. Appellate review of the judgment of the superior court may be sought as in other civil cases. However, the ((review)) appeal must be sought within fifteen days after the date of the entry of the judgment of such superior court. A certified copy of the order of the supreme court or the court of appeals upon such appeal shall be filed with the officer having custody of ((such)) the assessment roll, who shall thereupon modify and correct ((such)) the assessment roll in accordance with ((such)) the decision.

      Sec. 610. RCW 57.16.110 and 1982 1st ex.s. c 17 s 19 are each amended to read as follows:

      Whenever any land against which there has been levied any special assessment by any ((water)) district shall have been sold in part or subdivided, the board of ((water)) commissioners of ((such)) the district shall have the power to order a segregation of the assessment.

      Any person desiring to have ((such)) a special assessment against a tract of land segregated to apply to smaller parts thereof shall apply to the board of commissioners of the ((water)) district ((which)) that levied the assessment. If the ((water)) commissioners determine that a segregation should be made, they shall by resolution order the treasurer of the county in which the real property is located to make segregation on the original assessment roll as directed in the resolution. The segregation shall be made as nearly as possible on the same basis as the original assessment was levied, and the total of the segregated parts of the assessment shall equal the assessment before segregation. The resolution shall describe the original tract((,)) and the amount and date of the original assessment, and shall define the boundaries of the divided parts and the amount of the assessment chargeable to each part. A certified copy of the resolution shall be delivered to the treasurer of the county in which the real property is located who shall proceed to make the segregation ordered upon being tendered a fee of three dollars for each tract of land for which a segregation is to be made. In addition to ((such)) the charge the board of ((water)) commissioners may require as a condition to the order of segregation that the person seeking it pay the district the reasonable engineering and clerical costs incident to making the segregation.

      Sec. 611. RCW 57.16.150 and 1987 c 449 s 16 are each amended to read as follows:

      Judgments foreclosing ((local improvement)) special assessments pursuant to RCW 35.50.260 may also allow to ((water)) districts, in addition to delinquent installments, interest, penalties, and costs, such attorneys' fees as the court may adjudge reasonable.


PART VII - FINANCES


      Sec. 701. RCW 57.16.020 and 1984 c 186 s 51 are each amended to read as follows:

      The commissioners may submit to the voters of the district at any general or special election, a proposition that the district incur a general indebtedness payable from annual tax levies to be made in excess of the constitutional ((and/or statutory)) tax limitation((s)) for the construction of any part or all of the improvements described in its general comprehensive plan or plans. Elections shall be held as provided in RCW 39.36.050. The proposition authorizing both the bond issue and imposition of excess bond retirement levies ((shall)) must be adopted by three-fifths of the voters voting thereon, at which election the total number of persons voting on the proposition shall constitute not less than forty percent of the total number of votes cast in the ((water)) district at the last preceding general election. ((Such)) The bonds shall not be issued to run for a period longer than ((twenty)) thirty years from the date of the issue. ((Such)) The bonds shall be issued and sold in accordance with chapter 39.46 RCW. ((When the general comprehensive plan has been adopted the commissioners shall carry it out to the extent specified in the proposition to incur general indebtedness.))

      Whenever the proposition to issue general obligation bonds and impose such excess bond retirement levies has been approved, there shall be levied by the officers or governing body charged with the duty of levying taxes, annual levies in excess of the constitutional tax limitation sufficient to meet the annual or semiannual payments of principal and interest on the bonds upon all taxable property within the district.

      Sec. 702. RCW 57.20.015 and 1984 c 186 s 54 are each amended to read as follows:

      (1) The board of ((water)) commissioners of any ((water)) district may by resolution, without submitting the matter to the voters of the district, provide for the issuance of refunding general obligation bonds to refund any outstanding general obligation bonds, or any part thereof, at maturity thereof, or before the maturity thereof if they are subject to call for prior redemption or all of the owners thereof consent thereto. Refunding bonds may be combined with an issue of bonds for other district purposes, as long as those other bonds are approved in accordance with applicable law.

      (2) The total cost to the district over the life of the refunding bonds or refunding portion of an issue of bonds shall not exceed the total cost to the district which the district would have incurred but for such refunding over the remainder of the life of the bonds to be refunded thereby.

      (3) The refunding bonds may be exchanged for the bonds to be refunded thereby, or may be sold in such manner as the board of ((water)) commissioners deems to be for the best interest of the district, and the proceeds of such sale used exclusively for the purpose of paying, retiring, and canceling the bonds to be refunded and interest thereon. Such bonds may be of any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

      (((4) The provisions of RCW 57.20.010, concerning the issuance and sale of general obligation bonds and providing for annual tax levies in excess of the constitutional and/or statutory tax limitations shall apply to the refunding general obligation bonds issued under this section.))

      Sec. 703. RCW 57.16.030 and 1987 c 449 s 14 are each amended to read as follows:

      (1) The commissioners may, without submitting a proposition to the voters, authorize by resolution the district to issue revenue bonds for the construction costs, interest during the period of construction and six months thereafter, working capital or other costs of the improvements described in any part or all of ((the)) a general comprehensive plan or plans, or for other purposes or functions of a ((water)) district authorized by statute. The amount of the bonds to be issued shall be included in the resolution ((submitted)).

      (2) Any resolution authorizing the issuance of revenue bonds may include provision for refunding any local improvement district bonds of a district, out of the proceeds of sale of revenue bonds, and a district may pay off any outstanding local improvement bonds with such funds either by purchase in the open market below their par value and accrued interest or by call at par value and accrued interest at the next succeeding interest payment date. The bonds may be in any form, including bearer bonds or registered bonds as provided by RCW 39.46.030.

      ((When a resolution authorizing revenue bonds has been adopted the commissioners may forthwith carry out the general comprehensive plan to the extent specified.

      (2))) (3) Notwithstanding subsection (1) of this section, ((such)) district revenue bonds may be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 704. RCW 57.16.035 and 1977 ex.s. c 299 s 5 are each amended to read as follows:

      Whenever a ((water)) district shall have adopted a general comprehensive plan and bonds to defray the cost thereof shall have been authorized by resolution of the board of ((water)) commissioners, and before the completion of the improvements the board of ((water)) commissioners shall find by resolution that the authorized bonds are not sufficient to defray the cost of such improvements due to the increase of costs of construction subsequent to the adoption of ((said)) the plan, the board of ((water)) commissioners may by resolution authorize the issuance and sale of additional ((water)) revenue bonds for such purpose in excess of those previously issued.

      Sec. 705. RCW 57.16.040 and 1984 c 186 s 52 are each amended to read as follows:

      In the same manner as provided for the adoption of ((the)) an original general comprehensive plan, a plan providing for additions and betterments to the original general comprehensive plan may be adopted. Without limiting its generality "additions and betterments" shall include any necessary change in, amendment of, or addition to the general comprehensive plan.

      The district may incur a general indebtedness payable from annual tax levies to be made in excess of the constitutional ((and/or statutory)) tax limitation((s)) for the construction of the additions and betterments in the same way that general indebtedness may be incurred for the construction of the original general comprehensive plan after submission to the voters of the entire district in the manner the original proposition to incur indebtedness was submitted as provided in RCW 57.16.020 (as recodified by this act). Upon ratification the additions and betterments may be carried out by the commissioners to the extent specified or referred to in the proposition to incur the general indebtedness.

      The district may issue revenue bonds to pay for the construction of the additions and the betterments pursuant to resolution of the board of ((water)) commissioners.

      Sec. 706. RCW 57.20.020 and 1991 c 347 s 20 are each amended to read as follows:

      (1) ((Whenever any issue or issues of water revenue bonds have been authorized in compliance with the provisions of RCW 57.16.010 through 57.16.040, said bonds shall be in bearer form or registered as to principal or interest or both, as provided in RCW 39.46.030, and may provide for conversion between registered and coupon bonds; shall be in such denominations, shall be numbered, shall bear such date, and shall be payable at such time or times up to a maximum period of not to exceed thirty years as shall be determined by the board of water commissioners of the district; shall bear interest at such rate or rates payable at such time or times as authorized by the board; shall be payable at the office of the county treasurer of the county in which the water district is located and may also be payable at such other place or places as the board of water commissioners may determine; shall be executed by the president of the board of water commissioners and attested and sealed by the secretary thereof, one of which signatures may, with the written permission of the signator whose facsimile signature is being used, be a facsimile; and may have facsimile signatures of said president or secretary imprinted on any interest coupons in lieu of original signatures.))

      The ((water district)) commissioners shall have power and are required to create a special fund or funds for the sole purpose of paying the interest and principal of ((such)) revenue bonds into which special fund or funds the ((said water district)) commissioners shall obligate and bind the ((water)) district to set aside and pay a fixed proportion of the gross revenues of the water supply, sewer, or drainage system or any fixed amount out of and not exceeding a fixed proportion of such revenues, or a fixed amount or amounts without regard to any fixed proportion, and such bonds and the interest thereof shall be payable only out of such special fund or funds, ((but)) and shall be a lien and charge against all revenues and payments received from any utility local improvement district or districts pledged to secure such bonds, subject only to operating and maintenance expenses.

      In creating any such special fund or funds the ((water district)) commissioners ((of such water district)) shall have due regard to the cost of operation and maintenance of the plant or system as constructed or added to and to any proportion or part of the revenue previously pledged as a fund for the payment of bonds, warrants, or other indebtedness, and shall not set aside into such special fund a greater amount or proportion of the revenue and proceeds than in their judgment will be available over and above such cost of maintenance and operation and the amount or proportion, if any, of the revenue so previously pledged. Any such bonds and interest thereon issued against any such fund as ((herein)) provided in this section shall be a valid claim of the owner thereof only as against the ((said)) special fund and its fixed proportion or amount of the revenue pledged to such fund, and shall not constitute an indebtedness of ((such water)) the district within the meaning of the constitutional provisions and limitations. Each such bond shall state upon its face that it is payable from a special fund, naming the ((said)) fund and the resolution creating it. ((Said)) Such bonds shall be sold in such manner, at such price, and at such rate or rates of interest as the ((water district)) commissioners shall deem for the best interests of the ((water)) district, either at public or private sale, and the ((said)) commissioners may provide in any contract for the construction and acquirement of the proposed improvement (and for the refunding of outstanding local improvement district obligations, if any) that payment therefor shall be made in such bonds at par value thereof.

      When any such special fund shall have been heretofore or shall be hereafter created and any such bonds shall have been heretofore or shall hereafter be issued against the same a fixed proportion or a fixed amount out of and not to exceed such fixed proportion, or a fixed amount or amounts without regard to any fixed proportion, of revenue shall be set aside and paid into ((said)) the special fund as provided in the resolution creating such fund or authorizing such bonds((, and)). In case any ((water)) district shall fail thus to set aside and pay ((said)) the fixed proportion or amount ((as aforesaid)), the owner of any bond payable from such special fund may bring suit or action against the ((water)) district and compel such setting aside and payment.

      (2) ((Notwithstanding subsection (1) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.

      (3) The water district commissioners of any water district, in the event that such water revenue bonds are issued, shall provide for revenues by fixing rates and charges for the furnishing of water supply to those receiving such service, such rates and charges to be fixed as deemed necessary by such water district commissioners, so that uniform charges will be made for the same class of customer or service.

      In classifying customers served or service furnished by such water supply system, the board of water commissioners may in its discretion consider any or all of the following factors: The difference in cost of service to the various customers; the location of the various customers within and without the district; the difference in cost of maintenance, operation, repair and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the water furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful practices; capital contributions made to the system including but not limited to assessments; and any other matters which present a reasonable difference as a ground for distinction. Such rates shall be made on a monthly basis as may be deemed proper by such commissioners and as fixed by resolution and shall produce revenues sufficient to take care of the costs of maintenance and operation, revenue bond and warrant interest and principal amortization requirements and all other charges necessary for efficient and proper operation of the system.)) Revenue bonds payable from a special fund may be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 707. RCW 57.20.023 and 1959 c 108 s 12 are each amended to read as follows:

      The board of ((water)) commissioners may make such covenants as it may deem necessary to secure and guarantee the payment of the principal of and interest on ((water)) revenue bonds of the district, including but not being limited to covenants for the establishment and maintenance of adequate reserves to secure or guarantee the payment of such principal and interest; the protection and disposition of the proceeds of sale of such bonds; the use and disposition of the gross revenues of the water supply system, sewer system, or drainage system of the district and any additions or betterments thereto or extensions thereof; the use and disposition of any utility local improvement district assessments; the creation and maintenance of funds for renewals and replacements of the system; the establishment and maintenance of rates and charges adequate to pay principal and interest of such bonds and to maintain adequate coverage over debt service; the maintenance, operation and management of the system and the accounting, insuring and auditing of the business in connection therewith; the terms upon which such bonds or any of them may be redeemed at the election of the district; limitations upon the right of the district to dispose of its system or any part thereof; the appointment of trustees, depositaries and paying agents to receive, hold, disburse, invest and reinvest all or any part of the proceeds of sale of the bonds and all or any part of the income, revenue and receipts of the district, and the ((board of water)) commissioners may make such other covenants as it may deem necessary to accomplish the most advantageous sale of such bonds. The board of ((water)) commissioners may also provide that revenue bonds payable out of the same source or sources may later be issued on a parity with any revenue bonds being issued and sold.

      Sec. 708. RCW 57.20.025 and 1977 ex.s. c 299 s 8 are each amended to read as follows:

      The board of ((water)) commissioners of any ((water)) district may by resolution provide for the issuance of refunding revenue bonds to refund outstanding general obligation bonds and/or revenue bonds, or any part thereof, and/or all outstanding local improvement district bonds, at maturity thereof, or before maturity thereof if they are subject to call for prior redemption or all of the holders thereof consent thereto. The total interest cost to the district over the life of the refunding bonds shall not exceed the total cost to the district which the district would have incurred but for such refunding over the remainder of the life of the bonds to be refunded thereby. The refunding bonds may be exchanged for the bonds to be refunded thereby, or may be sold in such manner as the board of ((water)) commissioners deems to be for the best interest of the district, and the proceeds used, except as hereinafter provided, exclusively for the purpose of paying, retiring, and canceling the bonds to be refunded and interest thereon.

      All unpaid utility local improvement district assessments payable into the revenue bond redemption fund established for payment of the bonds to be refunded shall thereafter when collected be paid into the revenue bond redemption fund established for payment of the refunding revenue bonds.

      Whenever local improvement district bonds have been refunded as provided by RCW 57.16.030 ((as now or hereafter amended)) (as recodified by this act), or pursuant to this section, all local improvement district assessments remaining unpaid shall thereafter when collected be paid into the revenue bond redemption fund established for payment of the refunding revenue bonds, and the cash balance, if any, in the local improvement guaranty fund of the district and the proceeds received from any other assets owned by such fund shall be used in whole or in part as a reserve fund for the refunding revenue bonds or be transferred in whole or in part to any other funds of the district as the board of ((water)) commissioners may determine. ((In the event that)) If any warrants are outstanding against the local improvement guaranty fund of the district at the time of the issuance of such refunding revenue bonds, ((said)) the bonds shall be issued in an amount sufficient also to fund and pay such outstanding warrants.

      The provisions of RCW 57.20.020 shall apply to the refunding revenue bonds issued under this title.

      Sec. 709. RCW 57.20.027 and 1975 1st ex.s. c 25 s 5 are each amended to read as follows:

      ((Water)) Districts may also issue revenue warrants and revenue bond anticipation warrants for the same purposes for which such districts may issue revenue bonds. The provisions of this chapter relating to the authorization, terms, conditions, covenants, issuance and sale of revenue bonds (exclusive of provisions relating to refunding) shall be applicable to such warrants. ((Water)) Districts issuing revenue bond anticipation warrants may make covenants relative to the issuance of revenue bonds to provide funds for the redemption of part or all of such warrants and may contract for the sale of such bonds and warrants.

      Sec. 710. RCW 57.20.030 and 1982 1st ex.s. c 17 s 20 are each amended to read as follows:

      Every ((water)) district in the state is ((hereby)) authorized to create a fund for the purpose of guaranteeing, to the extent of such fund, and in the manner hereinafter provided, the payment of all of its local improvement bonds issued((, subsequent to June 9, 1937,)) to pay for any local improvement within its confines. Such fund shall be designated "Local Improvement Guaranty Fund((,)) of the ".....Water-Sewer District," "......Water District," ".....Sewer District," or "......District No. .....," and shall be established by resolution of the board of ((water)) commissioners. For the purpose of maintaining such fund, every ((water)) district, after the establishment thereof, shall at all times set aside and pay into such a fund such proportion of the monthly gross revenues of the water supply, sewer, or drainage system of such ((water)) district as the commissioners thereof may direct by resolution. This proportion may be varied from time to time as the commissioners deem expedient or necessary((: PROVIDED, HOWEVER, That)). However, under the existence of the conditions set forth in subsections (1) and (2) ((next hereunder)) of this section, then the proportion must be as ((therein)) specified((, to wit)) in subsections (1) and (2) of this section:

      (1) Whenever any bonds of any local improvement district have been guaranteed under this ((act)) section and RCW 57.20.080 and 57.20.090 and the guaranty fund does not have a cash balance equal to twenty percent of all bonds originally guaranteed under this ((act,)) section and RCW 57.20.080 and 57.20.090 (excluding issues which have been retired in full), then twenty percent of the gross monthly revenues derived from ((all)) water ((users)), sewer, and drainage systems in the territory included in ((said)) the local improvement district (but not necessarily from users in other parts of the ((water)) district as a whole) shall be set aside and paid into the guaranty fund((: PROVIDED, HOWEVER)), except that whenever((,)) under the requirements of this subsection, ((said)) the cash balance accumulates so that it is equal to twenty percent of all bonds guaranteed, or to the full amount of all bonds guaranteed, outstanding and unpaid (which amount might be less than twenty percent of the original total guaranteed), then no further money((s)) need be set aside and paid into ((said)) the guaranty fund so long as ((said)) the condition shall continue.

      (2) Whenever any warrants issued against the guaranty fund, as ((hereinbelow)) provided in this section, remain outstanding and uncalled for lack of funds for six months from the date of issuance thereof; or whenever any coupons or bonds guaranteed under this ((act)) section and RCW 57.20.080 and 57.20.090 have been matured for six months and have not been redeemed either in cash or by issuance and delivery of warrants upon the guaranty fund, then twenty percent of the gross monthly revenues (or such portion thereof as the commissioners of the ((water)) district determine will be sufficient to retire ((said)) the warrants or redeem ((said)) the coupons or bonds in the ensuing six months) derived from all water, sewer, and drainage system users in the ((water)) district shall be set aside and paid into the guaranty fund((: PROVIDED, HOWEVER, That)). However, whenever under the requirements of this subsection all warrants, coupons, or bonds specified in this subsection ((above)) have been redeemed, no further income needs to be set aside and paid into ((said)) the guaranty fund under the requirements of this subsection until and unless other warrants remain outstanding and unpaid for six months or other coupons or bonds default.

      (3) For the purposes of complying with the requirements of setting aside and paying into the local improvement guaranty fund a proportion of the monthly gross revenues of the water supply, sewer, or drainage system of any ((water)) district, as ((hereinabove)) provided in subsections (1) and (2) of this section, ((said water)) that district shall bind and obligate itself to maintain and operate ((said)) the applicable system and further bind and obligate itself to establish, maintain, and collect such rates for water, sewer, or drainage as will produce gross revenues sufficient to maintain and operate ((said water supply)) that system and to make necessary provision for the local improvement guaranty fund as specified by this section and RCW 57.20.080 and 57.20.090. ((And said water)) The district shall alter its rates for water, sewer, and drainage service from time to time and shall vary the same in different portions of its territory to comply with ((the said)) those requirements.

      (4) Whenever any coupon or bond guaranteed by this ((act)) section shall mature and there shall not be sufficient funds in the appropriate local improvement district bond redemption fund to pay the same, then the applicable county treasurer shall pay same from the local improvement guaranty fund of the ((water)) district; if there shall not be sufficient funds in the ((said)) guaranty fund to pay same, then the same may be paid by issuance and delivery of a warrant upon the local improvement guaranty fund.

      (5) Whenever the cash balance in the local improvement guaranty fund is insufficient for the required purposes, warrants drawing interest at a rate determined by the commissioners may be issued by the applicable county auditor, against the ((said)) fund to meet any liability accrued against it and must be issued upon demand of the holders of any maturing coupons and/or bonds guaranteed by this section, or to pay for any certificates of delinquency for delinquent installments of assessments as provided in subsection (6) of this section. Guaranty fund warrants shall be a first lien in their order of issuance upon the gross revenues set aside and paid into ((said)) that fund.

      (6) Within twenty days after the date of delinquency of any annual installment of assessments levied for the purpose of paying the local improvement bonds of any ((water)) district guaranteed under the provisions of this ((act)) section, it shall be mandatory for the county treasurer of the county in which the real property is located to compile a statement of all installments delinquent, together with the amount of accrued interest and penalty appurtenant to each of ((said)) the installments. Thereupon the applicable county treasurer shall forthwith purchase (for the ((water)) district) certificates of delinquency for all such delinquent installments. Payment for all such certificates of delinquency shall be made from the local improvement guaranty fund and if there shall not be sufficient money((s)) in ((said)) the fund to pay for such certificates of delinquency, the applicable county treasurer shall accept ((said)) the local improvement guaranty fund warrants in payment therefor. All ((such)) of those certificates of delinquency shall be issued in the name of the local improvement guaranty fund and all guaranty fund warrants issued in payment therefor shall be issued in the name of the appropriate local improvement district fund. Whenever any market is available and the commissioners of the ((water)) district so direct, the applicable county treasurer shall sell any certificates of delinquency belonging to the local improvement guaranty fund((: PROVIDED, That)). However, any such sale must not be for less than face value thereof plus accrued interest from date of issuance to date of sale.

      ((Such)) (7) Certificates of delinquency, as ((above)) provided in subsection (6) of this section, shall be issued by the county treasurer of the county in which the real property is located, shall bear interest at the rate of ten percent per annum, shall be in each instance for the face value of the delinquent installment, plus accrued interest to date of issuance of certificate of delinquency, plus a penalty of five percent of such face value, and shall set forth:

      (a) Description of property assessed;

      (b) Date installment of assessment became delinquent;

      (c) Name of owner or reputed owner, if known.

      ((Such)) The certificates of delinquency may be redeemed by the owner of the property assessed at any time up to two years from the date of foreclosure of such certificate of delinquency. If any such certificate of delinquency ((be)) is not redeemed on the second occurring first day of January subsequent to its issuance, the county treasurer who issued the certificate of delinquency shall then proceed to foreclose such certificate of delinquency in the manner specified for the foreclosure of the lien of local improvement assessments, pursuant to chapter 35.50 RCW and if no redemption be made within the succeeding two years shall execute and deliver a deed conveying fee simple title to the property described in the foreclosed certificate of delinquency.

      Sec. 711. RCW 57.20.080 and 1983 c 167 s 165 are each amended to read as follows:

      Whenever there shall be paid out of a guaranty fund any sum on account of principal or interest upon a local improvement bond, or on account of purchase of certificates of delinquency, the ((water)) district, as trustee for the fund, shall be subrogated to all rights of the owner of the bonds, or any interest, or delinquent assessment installments, so paid; and the proceeds thereof, or of the assessment or assessments underlying the same, shall become a part of the guaranty fund. There shall also be paid into ((each)) such guaranty fund the interest received from the bank deposits of the fund, as well as any surplus remaining in the local improvement funds guaranteed by the guaranty fund, after the payment of all outstanding bonds payable primarily out of such local improvement funds. As among the several issues of bonds guaranteed by the fund, no preference shall exist, but defaulted bonds and any defaulted interest payments shall be purchased out of the fund in the order of their presentation.

      The commissioners of every ((water)) district ((operating under RCW 57.20.030, 57.20.080, and 57.20.090)) that establishes a guaranty fund shall prescribe, by resolution, appropriate rules and regulations for the guaranty fund, not inconsistent herewith. So much of the money of a guaranty fund as is necessary and is not required for other purposes under this section and RCW 57.20.030((, 57.20.080,)) and 57.20.090 may, at the discretion of the commissioners of the ((water)) district, be used to purchase property at county tax foreclosure sales or from the county after foreclosure in cases where such property is subject to unpaid local improvement assessments securing bonds guaranteed by the guaranty fund and such purchase is deemed necessary for



the purpose of protecting the guaranty fund. In such cases the ((said)) guaranty fund shall be subrogated to all rights of the ((water)) district. After so acquiring title to real property, the ((water)) district may lease or resell and convey the same in the same manner that county property is authorized to be leased or resold and for such prices and on such terms as may be determined by resolution of the board of ((water)) commissioners. Any provision of law to the contrary notwithstanding, all proceeds resulting from such resales shall belong to and be paid into the guaranty fund.

      Sec. 712. RCW 57.20.090 and 1983 c 167 s 166 are each amended to read as follows:

      The owner of any local improvement bonds guaranteed under the provisions of this section and RCW 57.20.030((,)) and 57.20.080((, and 57.20.090)) shall not have any claim therefor against the ((water)) district by which the same is issued, except for payment from the special assessments made for the improvement for which ((said)) the local improvement bonds were issued, and except as against the local improvement guaranty fund of ((said water)) the district; and the ((water)) district shall not be liable to any owner of such local improvement bond for any loss to the guaranty fund occurring in the lawful operation thereof by the ((water)) district. The remedy of the owner of a local improvement bond, in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each local improvement bond guaranteed by this section and RCW 57.20.030((,)) and 57.20.080((, and 57.20.090)). The establishment of a local improvement guaranty fund by any ((water)) district shall not be deemed at variance from any comprehensive plan heretofore adopted by ((such water)) that district.

      ((In the event)) If any local improvement guaranty fund hereunder authorized at any time has a balance therein in cash, and the obligations guaranteed thereby have all been paid off, then such balance shall be transferred to the maintenance fund of the ((water)) district.

      Sec. 713. RCW 57.20.110 and 1970 ex.s. c 42 s 35 are each amended to read as follows:

      ((Each and every water district that may hereafter be organized pursuant to this act is hereby)) A district is authorized and empowered by and through its board of ((water)) commissioners to contract indebtedness for ((water)) its purposes, and the maintenance thereof not exceeding one-half of one percent of the value of the taxable property in ((such water)) the district, as the term "value of the taxable property" is defined in RCW 39.36.015.

      Sec. 714. RCW 57.20.120 and 1984 c 186 s 55 are each amended to read as follows:

      ((Each and every water district hereafter to be organized pursuant to this title,)) A district may contract indebtedness in excess of the amount named in RCW 57.20.110, but not exceeding in amount, together with existing indebtedness, two and one-half percent of the value of the taxable property in ((said)) that district, as the term "value of the taxable property" is defined in RCW 39.36.015, and impose excess property tax levies to retire the indebtedness whenever three-fifths of the voters voting at ((said)) the election in such ((water)) district assent thereto, at which election the total number of persons voting on the proposition shall constitute not less than forty percent of the total number of votes cast in the ((water)) district at the last preceding general election, at an election to be held in ((said water)) the district in the manner provided by this title and RCW 39.36.050((: PROVIDED, That all bonds so to be issued shall be subject to the provisions regarding bonds as set out in RCW 57.20.010)).

      Sec. 715. RCW 57.20.130 and 1983 c 167 s 167 are each amended to read as follows:

      Any coupons for the payment of interest on ((said)) bonds of any district shall be considered for all purposes as warrants drawn upon the general fund of the ((said water)) district issuing such bonds, and when presented to the treasurer of the county having custody of the funds of such ((water)) district at maturity, or thereafter, and when so presented, if there are not funds in the treasury to pay the ((said)) coupons, it shall be the duty of the county treasurer to endorse ((said)) the coupons as presented for payment, in the same manner as county warrants are indorsed, and thereafter ((said)) the coupons shall bear interest at the same rate as the bonds to which ((it was)) they were attached. When there are no funds in the treasury to make interest payments on bonds not having coupons, the overdue interest payment shall continue bearing interest at the bond rate until it is paid, unless otherwise provided in the proceedings authorizing the sale of the bonds.

      Sec. 716. RCW 57.20.135 and 1988 c 162 s 11 are each amended to read as follows:

      Upon obtaining the approval of the county treasurer, the board of commissioners of a ((water)) district with more than twenty-five hundred water customers or sewer customers may designate by resolution some other person having experience in financial or fiscal matters as the treasurer of the district. Such a treasurer shall possess all of the powers, responsibilities, and duties of, and shall be subject to the same restrictions as provided by law for, the county treasurer with regard to a ((water)) district, and the county auditor with regard to ((water)) district financial matters. Such treasurer shall be bonded for not less than twenty-five thousand dollars. Approval by the county treasurer authorizing such a ((water)) district to designate its treasurer shall not be arbitrarily or capriciously withheld.

      Sec. 717. RCW 57.20.140 and 1983 c 57 s 3 are each amended to read as follows:

      ((Unless the board of commissioners of a water district designates a treasurer under RCW 57.20.135, the county)) The treasurer designated under RCW 57.20.135 shall create and maintain a separate fund designated as the maintenance fund or general fund of the district into which shall be paid all money received by ((him)) the treasurer from the collection of taxes other than taxes levied for the payment of general obligation bonds of the district and all revenues of the district other than assessments levied in local improvement districts or utility local improvement districts, and no money shall be disbursed therefrom except upon warrants of the county auditor issued by authority of the commissioners or upon a resolution of the commissioners ordering a transfer to any other fund of the district. The ((county)) treasurer also shall ((also)) maintain such other special funds as may be prescribed by the ((water)) district, into which shall be placed such money((s)) as the board of ((water)) commissioners may by its resolution direct, and from which disbursements shall be made upon proper warrants of the county auditor issued against the same by authority of the board of ((water)) commissioners.

      Sec. 718. RCW 57.20.150 and 1959 c 108 s 15 are each amended to read as follows:

      Whenever a ((water)) district has accumulated money((s)) in the maintenance fund or general fund of the district in excess of the requirements of ((such)) that fund, the board of ((water)) commissioners may in its discretion use any of ((such)) that surplus money((s)) for any of the following purposes: (1) Redemption or servicing of outstanding obligations of the district((,)); (2) maintenance expenses of the district((,)); (3) construction or acquisition of any facilities necessary to carry out the purposes of the district; or (4) any other proper district purpose.

      Sec. 719. RCW 57.20.160 and 1986 c 294 s 13 are each amended to read as follows:

      Whenever there shall have accumulated in any general or special fund of a ((water)) district money((s)), the disbursement of which is not yet due, the board of ((water)) commissioners may, by resolution, authorize the ((county)) treasurer to deposit or invest such money((s)) in qualified public depositaries, or to invest such money((s)) in any investment permitted at any time by RCW 36.29.020((: PROVIDED, That)). However, the county treasurer may refuse to invest any district money((s)) the disbursement of which will be required during the period of investment to meet outstanding obligations of the district.

      Sec. 720. RCW 57.20.165 and 1981 c 24 s 2 are each amended to read as follows:

      ((Water)) District money((s)) shall be deposited by the district in ((an)) any account, which may be interest-bearing, subject to such requirements and conditions as may be prescribed by the state auditor. The account shall be in the name of the district except((,)) upon request by the treasurer, the accounts shall be in the name of the "......(name of county)..... county treasurer." The treasurer may instruct the financial institutions holding the deposits to transfer them to the treasurer at such times as the treasurer may deem appropriate, consistent with regulations governing and policies of the financial institution.

      Sec. 721. RCW 57.20.170 and 1959 c 108 s 17 are each amended to read as follows:

      The board of ((water)) commissioners of any ((water)) district may, by resolution, authorize and direct a loan or loans from maintenance funds or general funds of the district to construction funds or other funds of the district((: PROVIDED, That such)), so long as that loan ((does)) or loans do not, in the opinion of the board of ((water)) commissioners, impair the ability of the district to operate and maintain its water supply, sewer, drainage, or street lighting systems.




PART VIII - WATER AND SEWER SYSTEM EXTENSIONS


      Sec. 801. RCW 57.22.010 and 1989 c 389 s 11 are each amended to read as follows:

      If the ((water)) district approves an extension to the ((water)) system, the district shall contract with owners of real estate located within the district boundaries, at an owner's request, for the purpose of permitting extensions to the district's ((water)) system to be constructed by such owner at such owner's sole cost where such extensions are required as a prerequisite to further property development. The contract shall contain such conditions as the district may require pursuant to the district's adopted policies and standards. The district shall request comprehensive plan approval for such extension, if required, and connection of the extension to the district system is conditioned upon:

      (1) Construction of such extension according to plans and specifications approved by the district;

      (2) Inspection and approval of such extension by the district;

      (3) Transfer to the district of such extension without cost to the district upon acceptance by the district of such extension;

      (4) Payment of all required connection charges to the district;

      (5) Full compliance with the owner's obligations under such contract and with the district's rules and regulations;

      (6) Provision of sufficient security to the district to ensure completion of the extension and other performance under the contract;

      (7) Payment by the owner to the district of all of the district's costs associated with such extension including, but not limited to, the district's engineering, legal, and administrative costs; and

      (8) Verification and approval of all contracts and costs related to such extension.

      Sec. 802. RCW 57.22.020 and 1989 c 389 s 12 are each amended to read as follows:

      The contract shall also provide, subject to the terms and conditions in this section, for the reimbursement to the owner or the owner's assigns for a period not to exceed fifteen years of a portion of the costs of the ((water)) facilities constructed pursuant to such contract from connection charges received by the district from other property owners who subsequently connect to or use the ((water)) facilities within the fifteen-year period and who did not contribute to the original cost of such ((water)) facilities.

      Sec. 803. RCW 57.22.030 and 1989 c 389 s 13 are each amended to read as follows:

      The reimbursement shall be a pro rata share of construction and ((reimbursement of)) contract administration costs of the ((water)) project. Reimbursement for ((water)) projects shall include, but not be limited to, design, engineering, installation, and restoration.

      Sec. 804. RCW 57.22.040 and 1989 c 389 s 14 are each amended to read as follows:

      The procedures for reimbursement contracts shall be governed by the following:

      (1) A reimbursement area shall be formulated by the board of commissioners within a reasonable time after the acceptance of the extension. The reimbursement shall be based upon a determination by the board of commissioners of which parcels would require similar ((water)) improvements upon development.

      (2) The contract must be recorded in the appropriate county auditor's office after the final execution of the agreement.

      Sec. 805. RCW 57.22.050 and 1989 c 389 s 15 are each amended to read as follows:

      As an alternative to financing projects under this chapter solely by owners of real estate, ((a water)) districts may join in the financing of improvement projects and may be reimbursed in the same manner as the owners of real estate who participate in the projects, if the ((water district)) board of commissioners has specified the conditions of its participation in a resolution.


PART IX - ANNEXATION OF TERRITORY


      Sec. 901. RCW 57.24.001 and 1989 c 84 s 58 are each amended to read as follows:

      Actions taken under this chapter ((57.24 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 902. RCW 57.24.010 and 1990 c 259 s 31 are each amended to read as follows:

      Territory within the county or counties in which a district is located, or territory adjoining or in close proximity to a district but which is located in another county, may be annexed to and become a part of the district. All annexations shall be accomplished in the following manner: Ten percent of the number of registered voters residing in the territory proposed to be annexed who voted in the last ((general)) municipal general election may file a petition with the district commissioners and cause the question to be submitted to the voters of the territory whether such territory will be annexed and become a part of the district. If the commissioners concur in the petition, they shall file it with the county auditor of ((each)) the county in which all or the largest geographic portion of the real property proposed to be annexed is located, who shall, within ten days, examine ((and validate)) the signatures thereon and certify to the sufficiency or insufficiency thereof((; and for such purpose the county auditor shall have access to all registration books in the possession of the officers of any city or town in the proposed district)). If the area proposed to be annexed is located in more than one county, the auditor of the county in which the largest geographic portion of the area proposed to be annexed is located shall be the lead auditor and shall immediately transfer a copy of the petitions to the auditor of each other county in which the area proposed to be annexed is located. Within ten days after the lead auditor received the petition, the auditors of these other counties shall certify to the lead auditor: (1) The number of voters of that county residing in the area proposed to be annexed who voted at the last municipal general election; and (2) the number of valid signatures on the petition of voters of that county residing in the area proposed to be annexed. The lead auditor shall certify the sufficiency of the petition after receiving this information. If the petition contains a sufficient number of valid signatures, the lead county auditor ((of the county in which the real property proposed to be annexed is located)) shall transmit it, together with a certificate of sufficiency attached thereto, to the ((water)) commissioners of the district.

      If there are no registered voters residing in the territory to be annexed, the petition may be signed by such a number as appear of record to own at least a majority of the acreage in the territory, and the petition shall disclose the total number of acres of land in the territory and the names of all record owners of land therein. If the commissioners are satisfied as to the sufficiency of the petition and concur therein, they shall send it, together with their certificate of concurrence attached thereto to the county legislative authority of each county in which the territory proposed to be annexed is located.

      The county legislative authority, upon receipt of a petition certified to contain a sufficient number of signatures of registered voters, or upon receipt of a petition signed by such a number as own at least a majority of the acreage, together with a certificate of concurrence signed by the ((water)) commissioners, at a regular or special meeting shall cause to be published once a week for at least two weeks in a newspaper in general circulation throughout the territory proposed to be annexed a notice that the petition has been filed, stating the time of the meeting at which it shall be presented, and setting forth the boundaries of the territory proposed to be annexed.

      Sec. 903. RCW 57.24.020 and 1982 1st ex.s. c 17 s 22 are each amended to read as follows:

      When such petition is presented for hearing, the legislative authority of each county in which the territory proposed to be annexed is located shall hear the petition or may adjourn the hearing from time to time not exceeding one month in all, and any person, firm, or corporation may appear before the county legislative authority and make objections to the proposed boundary lines or to annexation of the territory described in the petition. Upon a final hearing each county legislative authority shall make such changes in the proposed boundary lines within the county as ((they)) it deems to be proper and shall establish and define such boundaries and shall find whether the proposed annexation as established by the county legislative authority to the ((water)) district will be conducive to the public health, welfare and convenience and will be of special benefit to the land included within the boundaries of the territory proposed to be annexed to the ((water district of the territory proposed to be annexed to the water)) district. No lands which will not, in the judgment of the county legislative authority, be benefited by inclusion therein, shall be included within the boundaries of the territory as so established and defined. No change shall be made by the county legislative authority in the boundary lines, including any territory outside of the boundary lines described in the petition. No person having signed such petition shall be allowed to withdraw ((his)) such person's name therefrom after the filing of the petition with the board of ((water)) commissioners.

      Upon the entry of the findings of the final hearing each county legislative authority, if ((they)) it finds the proposed annexation to be conducive to the public health, welfare, and convenience and to be of special benefit to the land proposed to be annexed and included within the boundaries of the district, shall give notice of a special election to be held within the boundaries of the territory proposed to be annexed to the ((water)) district for the purpose of determining whether the same shall be annexed to the ((water)) district. The notice shall particularly describe the boundaries established by the county legislative authority, and shall state the name of the ((water)) district to which the territory is proposed to be annexed, and the notice shall be published in a newspaper of general circulation in the territory proposed to be annexed at least once a week for a minimum of two successive weeks prior to the election and shall be posted for the same period in at least four public places within the boundaries of the territory proposed to be annexed, which notice shall designate the places within the territory proposed to be annexed where the election shall be held, and the proposition to the voters shall be expressed on ballots which contain the words:

For Annexation to ((Water)) District

or

Against Annexation to ((Water)) District

The county legislative authority shall name the persons to act as judges at ((such)) that election.

      Sec. 904. RCW 57.24.040 and 1929 c 114 s 16 are each amended to read as follows:

      The ((said)) annexation election shall be held on the date designated in ((such)) the notice and shall be conducted in accordance with the general election laws of the state. ((In the event)) If the original petition for annexation is signed by qualified ((electors)) voters, then only qualified ((electors,)) voters at the date of election((,)) residing in the territory proposed to be annexed, shall be permitted to vote at the ((said)) election. ((In the event))

      If the original petition for annexation is signed by property owners as provided for in this ((act)) chapter, then no person shall be entitled to vote at ((such)) that election unless at the time of the filing of the original petition he or she owned land in the district of record and in addition thereto at the date of election shall be a qualified ((elector)) voter of the county in which such district is located. It shall be the duty of the county auditor, upon request of the county ((commissioners)) legislative authority, to certify ((to the election officers of any such election,)) the names of all persons owning land in the district at the date of the filing of the original petition as shown by the records of ((his)) the auditor's office; and at any such election the ((election officers)) county auditor may require any such ((landowner)) property owner offering to vote to take an oath that ((he)) the property owner is a qualified ((elector)) voter of the county before ((he)) the property owner shall be allowed to vote((; PROVIDED, That)). However, at any election held under the provisions of this ((act)) chapter an officer or agent of any corporation having its principal place of business in ((said)) the county and owning land at the date of filing the original petition in the district duly authorized ((thereto)) in writing may cast a vote on behalf of such corporation. When so voting ((he)) the person shall file with the ((election officers)) county auditor such a written instrument of ((his)) that person's authority. ((The judge or judges at such election shall make return thereof to the board of water commissioners, who shall canvass such return and cause a statement of the result of such election to be entered on the record of such commissioners.))

      If the majority of the votes cast upon the question of such election shall be for annexation, then ((such)) the territory concerned shall immediately be and become annexed to such ((water)) district and the same shall then forthwith be a part of the ((said water)) district, the same as though originally included in ((such)) that district.

      Sec. 905. RCW 57.24.050 and 1929 c 114 s 17 are each amended to read as follows:

      All elections held pursuant to this ((act)) chapter, whether general or special, shall be conducted by the county election board of the county in which the district is located. The expense of all such elections shall be paid for out of the funds of such ((water)) district.

      Sec. 906. RCW 57.24.070 and 1985 c 141 s 8 are each amended to read as follows:

      As an alternative method of annexation, a petition for annexation of an area contiguous to a ((water)) district may be made in writing, addressed to and filed with the board of commissioners of the district to which annexation is desired. It must be signed by the owners, according to the records of the county auditor, of not less than sixty percent of the area of land for which annexation is petitioned, excluding county and state rights of way, parks, tidelands, lakes, retention ponds, and stream and water courses. Additionally, the petition shall set forth a description of the property according to government legal subdivisions or legal plats, and shall be accompanied by a plat which outlines the boundaries of the property sought to be annexed. ((Such)) Those county and state properties shall be excluded from local improvement districts or utility local improvement districts in the annexed area and from special assessments, rates, or charges of the district except where service has been regulated and provided to such properties. The owners of such property shall be invited to be included within local improvement districts or utility local improvement districts at the time they are proposed for formation.

      Sec. 907. RCW 57.24.090 and 1953 c 251 s 20 are each amended to read as follows:

      Following the hearing the board of commissioners shall determine by resolution whether annexation shall be made. It may annex all or any portion of the proposed area but may not include in the annexation any property not described in the petition. Upon passage of the resolution a certified copy shall be filed with the ((board of county commissioners)) legislative authority of the county in which the annexed property is located.

      Sec. 908. RCW 57.24.170 and 1982 c 146 s 4 are each amended to read as follows:

      When there is, within a ((water)) district, unincorporated territory containing less than one hundred acres and having at least eighty percent of the boundaries of such area contiguous to the ((water)) district, the board of commissioners may resolve to annex ((such)) that territory to the ((water)) district. The resolution shall describe the boundaries of the area to be annexed, state the number of voters residing therein as nearly as may be, and set a date for a public hearing on such resolution for annexation. Notice of the hearing shall be given by publication of the resolution at least once a week for two weeks prior to the date of the hearing, in one or more newspapers of general circulation within the ((water)) district and one or more newspapers of general circulation within the area to be annexed.

      Sec. 909. RCW 57.24.180 and 1982 c 146 s 5 are each amended to read as follows:

      On the date set for hearing under RCW 57.24.170, residents or property owners of the area included in the resolution for annexation shall be afforded an opportunity to be heard. The board of commissioners may provide by resolution for annexation of the territory described in the resolution, but the effective date of the resolution shall be not less than forty-five days after the passage thereof. The board of commissioners shall cause notice of the proposed effective date of the annexation, together with a description of the property to be annexed, to be published at least once each week for two weeks subsequent to passage of the resolution, in one or more newspapers of general circulation within the ((water)) district and in one or more newspapers of general circulation within the area to be annexed. Upon the filing of a timely and sufficient referendum petition under RCW 57.24.190, a referendum election shall be held under RCW 57.24.190, and the annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto. After the expiration of the forty-fifth day from((,)) but excluding the date of passage of the annexation resolution, if no timely and sufficient referendum petition has been filed, under RCW 57.24.190, the area annexed shall become a part of the ((water)) district upon the date fixed in the resolution of annexation.

      Sec. 910. RCW 57.24.190 and 1990 c 259 s 32 are each amended to read as follows:

      ((Such)) The annexation resolution under RCW 57.24.180 shall be subject to referendum for forty-five days after the passage thereof. Upon the filing of a timely and sufficient referendum petition with the board of commissioners, signed by registered voters in number equal to not less than ten percent of the registered voters in the area to be annexed who voted in the last ((general)) municipal general election, the question of annexation shall be submitted to the voters of such area in a general election if one is to be held within ninety days or at a special election called for that purpose by the board of commissioners in accordance with RCW 29.13.010 and 29.13.020. Notice of ((such)) that election shall be given under RCW 57.24.020 and the election shall be conducted under RCW 57.24.040. The annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto.

      After the expiration of the forty-fifth day from but excluding the date of passage of the annexation resolution, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the ((water)) district upon the date fixed in the resolution of annexation upon transmitting the resolution to the county legislative authority.

      Sec. 911. RCW 57.24.200 and 1986 c 258 s 2 are each amended to read as follows:

      ((Water)) A district((s)) may expend funds to inform residents in areas proposed for annexation into the district of the following:

      (1) Technical information and data;

      (2) The fiscal impact of the proposed improvement; and

      (3) The types of improvements planned.

Expenditures under this section shall be limited to research, preparation, printing, and mailing of the information.

      Sec. 912. RCW 57.24.210 and 1995 c 279 s 2 are each amended to read as follows:

      When there is unincorporated territory containing less than one hundred acres and having at least eighty percent of the boundaries of such area contiguous to two municipal corporations providing water service, one of which is ((either a water or sewer)) a water-sewer district, the legislative authority of either of the contiguous municipal corporations may resolve to annex such territory to that municipal corporation, provided a majority of the legislative authority of the other contiguous municipal corporation concurs. In such event, the municipal corporation resolving to annex such territory may proceed to effect the annexation by complying with RCW 57.24.170 through 57.24.190. For purposes of this section, "municipal corporation" means a ((water district, sewer)) water-sewer district, city, or town.

      Sec. 913. RCW 57.24.220 and 1994 c 292 s 8 are each amended to read as follows:

      A ((water)) district assuming responsibility for a water system that is not in compliance with state or federal requirements for public drinking water systems, and its agents and employees, are immune from lawsuits or causes of action, based on noncompliance with state or federal requirements for public drinking water systems, which predate the date of assuming responsibility and continue after the date of assuming responsibility, provided that the ((water)) district has submitted and is complying with a plan and schedule of improvements approved by the department of health. This immunity shall expire on the earlier of the date the plan of improvements is completed or four years from the date of assuming responsibility. This immunity does not apply to intentional injuries, fraud, or bad faith.


PART X - WITHDRAWAL OF TERRITORY


      Sec. 1001. RCW 57.28.001 and 1989 c 84 s 59 are each amended to read as follows:

      Actions taken under this chapter ((57.28 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 1002. RCW 57.28.010 and 1941 c 55 s 1 are each amended to read as follows:

      Territory within ((an established water)) a district ((for public supply systems)) may be withdrawn therefrom in the following manner and upon the following conditions: The petition for withdrawal shall be in writing and shall designate the boundaries of the territory proposed to be withdrawn from the district and shall be signed by at least twenty-five percent of the qualified ((electors)) voters residing within the territory so designated who are qualified ((electors)) voters on the date of filing such petition. The petition shall set forth that the territory proposed to be withdrawn is of such location or character that water and sewer services cannot be furnished to it by ((such water)) the district at reasonable cost, and shall further set forth that the withdrawal of such territory will be of benefit to such territory and conducive to the general welfare of the balance of the district.

      Sec. 1003. RCW 57.28.020 and 1982 1st ex.s. c 17 s 23 are each amended to read as follows:

      The petition for withdrawal shall be filed with the county ((election officer)) auditor of each county in which the ((water)) district is located, and after the filing no person having signed the petition shall be allowed to withdraw ((his)) the person's name therefrom. Within ten days after such filing, each county ((election officer)) auditor shall examine and verify the signatures of signers residing in the respective county. ((For such purpose the county election officer shall have access to all appropriate registration books in the possession of the election officers of any incorporated city or town within the water district.)) The petition shall be transmitted to the ((election officer)) auditor of the county in which ((the largest land area)) all or the major geographic portion of the district is located, who shall certify to the sufficiency or insufficiency of the signatures. If the area proposed to be withdrawn is located in more than one county, the auditor of the county in which the largest geographic portion of the area proposed to be withdrawn is located shall be the lead auditor and shall immediately transfer a copy of the petitions to the auditor of each other county in which the area proposed to be withdrawn is located. Within ten days after the lead auditor received the petition, the auditors of these other counties shall certify to the lead auditor: (1) The number of voters of that county residing in the area proposed to be withdrawn who voted at the last municipal general election; and (2) the number of valid signatures on the petition of voters of that county residing in the area proposed to be withdrawn. The lead auditor shall certify the sufficiency of the petition after receiving this information. If such petition be found by such county ((election officer)) auditor to contain sufficient signatures, the petition, together with a certificate of sufficiency attached thereto, shall be transmitted to the board of commissioners of the ((water)) district.

      Sec. 1004. RCW 57.28.030 and 1941 c 55 s 3 are each amended to read as follows:

      In the event there are no qualified ((electors)) voters residing within the territory proposed to be withdrawn, ((then)) the petition for withdrawal may be signed by such persons as appear of record to own at least a majority of the acreage within such territory, in which event the petition shall also state the total number of acres and the names of all record owners of the land within such territory. The petition so signed shall be filed with the board of commissioners of the ((water)) district, and after such filing no person having signed the same shall be allowed to withdraw ((his)) that person's name.

      Sec. 1005. RCW 57.28.035 and 1985 c 153 s 1 are each amended to read as follows:

      As an alternative procedure to those set forth in RCW 57.28.010 through 57.28.030, the withdrawal of territory within a ((water)) district may be commenced by a resolution of the board of commissioners that sets forth boundaries of the territory to be withdrawn and sets a date for the public hearing required under RCW 57.28.050. Upon the final hearing, the board of commissioners shall make such changes in the proposed boundaries as they deem proper, except that no changes in the boundary lines may be made by the board of commissioners to include lands not within the boundaries of the territory as described in such resolution.

      Whenever the board of commissioners proposes to commence the withdrawal of any portion of ((their)) its territory located within a city or town using the alternative procedures herein authorized, ((they)) it shall first notify such city or town of their intent to withdraw ((said)) the territory. If the legislative authority of the city or town takes no action within sixty days of receipt of notification, the district may proceed with the resolution method.

      If the city or town legislative authority disapproves of use of the alternative procedures, the board of commissioners may proceed using the process established ((pursuant to)) under RCW 57.28.010 through 57.28.030.

      A withdrawal procedure commenced under this section shall be subject to the procedures and requirements set forth in RCW 57.28.040 through 57.28.110.

      Sec. 1006. RCW 57.28.040 and 1985 c 469 s 59 are each amended to read as follows:

      Upon receipt by the board of commissioners of a petition and certificate of sufficiency of the auditor, or if the petition is signed by landowners and the board of commissioners ((are)) is satisfied as to the sufficiency of the signatures thereon, ((they)) it shall at a regular or special meeting fix a date for hearing on the petition and give notice that the petition has been filed, stating the time and place of the meeting of the board of commissioners at which the petition will be heard and setting forth the boundaries of the territory proposed to be withdrawn. The notice shall be published at least once a week for two successive weeks in a newspaper of general circulation therein, and if no such newspaper is printed in the county, then in some newspaper of general circulation in the county and district. Any additional notice of the hearing may be given as the board of commissioners may by resolution direct.

      Prior to fixing the time for a hearing on any such petition, the board of commissioners in ((their)) its discretion may require the petitioners to furnish a satisfactory bond conditioned that the petitioners shall pay all costs incurred by the ((water)) district in connection with the petition, including the cost of an election if one is held pursuant thereto, and should the petitioners fail or refuse to post such a bond, if one is required by the ((water)) district board of commissioners, then there shall be no duty on the part of the board of commissioners to act upon the petition.

      Sec. 1007. RCW 57.28.050 and 1986 c 109 s 1 are each amended to read as follows:

      The petition for withdrawal shall be heard at the time and place specified in such notice or the hearing may be adjourned from time to time, not exceeding one month in all, and any person may appear at such hearing and make objections to the withdrawal of such territory or to the proposed boundary lines thereof. Upon final hearing on the petition for withdrawal, the board of commissioners of the ((water)) district shall make such changes in the proposed boundary lines as ((they)) it deems to be proper, except that no changes in the boundary lines shall be made by the board of commissioners to include lands not within the boundaries of the territory as described in such petition. In establishing and defining such boundaries the board of commissioners shall exclude any property which is then being furnished with water or sewer service by the ((water)) district or which is included in any distribution or collection system the construction of ((which has been duly authorized or)) which is included within any duly established local improvement district or utility local improvement district, and the territory as finally established and defined must be substantial in area and consist of adjoining or contiguous properties. The board of commissioners shall thereupon make and by resolution adopt findings of fact as to the following questions:

      (1) Would the withdrawal of such territory be of benefit to such territory?

      (2) Would such withdrawal be conducive to the general welfare of the balance of the district?

      Such findings shall be entered in the records of the ((water)) district, together with any recommendations the board of commissioners may by resolution adopt.

      Sec. 1008. RCW 57.28.060 and 1982 1st ex.s. c 17 s 24 are each amended to read as follows:

      Within ten days after the final hearing the board of commissioners of the ((water)) district shall transmit to the county legislative authority of each county in which the ((water)) district is located the petition for withdrawal, together with a copy of the findings and recommendations of the board of commissioners of the ((water)) district certified by the secretary of the ((water)) district to be a true and correct copy of such findings and recommendations as the same appear on the records of the ((water)) district.

      Sec. 1009. RCW 57.28.070 and 1982 1st ex.s. c 17 s 25 are each amended to read as follows:

      Upon receipt of the petition and certified copy of the findings and recommendations adopted by the ((water)) district commissioners, the county legislative authority of each county in which the district is located at a regular or special meeting shall fix a time and place for hearing thereon and shall cause to be published at least once a week for two or more weeks in successive issues of a newspaper of general circulation in the ((water)) district, a notice that such petition has been presented to the county legislative authority stating the time and place of the hearing thereon, setting forth the boundaries of the territory proposed to be withdrawn as such boundaries are established and defined in the findings or recommendations of the board of commissioners of the ((water)) district.

      Sec. 1010. RCW 57.28.080 and 1941 c 55 s 8 are each amended to read as follows:

      ((Such)) The petition shall be heard at the time and place specified in ((such)) the notice, or the hearing may be adjourned from time to time, not exceeding one month in all, and any person may appear at ((such)) the hearing and make objections to the withdrawal of ((such)) the territory. Upon final hearing on ((such)) the petition the ((said)) county ((commissioners)) legislative authority shall thereupon make, enter, and by resolution adopt ((their)) its findings of fact on the questions ((above)) set forth in RCW 57.28.050. If ((such)) the findings of fact answer ((said)) the questions affirmatively, and if they are the same as the findings made by the ((water)) district commissioners, then the county ((commissioners)) legislative authority shall by resolution declare that ((such)) the territory be withdrawn from ((such water)) that district, and thereupon ((such)) the territory shall be withdrawn and excluded from ((such water)) that district the same as if it had never been included therein except for the lien of taxes as hereinafter set forth((, provided, that)). However, the boundaries of the territory withdrawn shall be the boundaries established and defined by the ((said water)) district board of commissioners and shall not be altered or changed by the county ((commissioners)) legislative authority unless the unanimous consent of the ((water)) district commissioners be given in writing to any such alteration or change.

      Sec. 1011. RCW 57.28.090 and 1982 1st ex.s. c 17 s 26 are each amended to read as follows:

      If the findings of any county legislative authority answer any of ((such)) the questions of fact set forth in RCW 57.28.050 in the negative, or if any of the findings of the county legislative authority are not the same as the findings of the ((water)) district board of commissioners upon the same question, then in either of such events, the petition for withdrawal shall be deemed denied. Thereupon, and in such event, the county legislative authority of each county in which the district is located shall by resolution cause a special election to be held not less than thirty days or more than sixty days from the date of the final hearing of any county legislative authority upon the petition for withdrawal, at which election the proposition expressed on the ballots shall be substantially as follows:


      "Shall the territory established and defined by the ((water)) district board of commissioners at ((their)) its meeting held on the . . . . . . (insert date of final hearing of ((water)) district board of commissioners upon the petition for withdrawal) be withdrawn from ((water)) district . . . . . . (naming it).

                                                      YES □                     NO □"

      Sec. 1012. RCW 57.28.100 and 1982 1st ex.s. c 17 s 27 are each amended to read as follows:

      Notice of ((such)) the election shall be posted and published in the same manner provided by law for the posting and publication of notice of elections to annex territory to ((water)) districts. The territory described in the notice shall be that established and defined by the ((water)) district board of commissioners. All qualified voters residing within the ((water)) district shall have the right to vote at the election. If a majority of the votes cast favor the withdrawal from the ((water)) district of such territory, then within ten days after the official canvass of ((such)) the election the county legislative authority of each county in which the district is located((,)) shall by resolution establish that the territory has been withdrawn, and the territory shall thereupon be withdrawn and excluded from the ((water)) district the same as if it had never been included therein except for the lien of any taxes as hereinafter set forth.

      Sec. 1013. RCW 57.28.110 and 1941 c 55 s 11 are each amended to read as follows:

      ((Any and all)) Taxes or assessments levied or assessed against property located in territory withdrawn from a ((water)) district shall remain a lien and be ((collectible)) collected as by law provided when ((such)) the taxes or assessments are levied or assessed prior to ((such)) the withdrawal or when ((such)) the levies or assessments are duly made to provide revenue for the payment of general obligations or general obligation bonds of the ((water)) district duly incurred or issued prior to ((such)) the withdrawal.


PART XI - CONSOLIDATION OF DISTRICTS AND TRANSFER OF TERRITORY


      Sec. 1101. RCW 57.32.001 and 1989 c 84 s 60 are each amended to read as follows:

      Actions taken under this chapter ((57.32 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 1102. RCW 57.32.010 and 1989 c 308 s 11 are each amended to read as follows:

      Two or more ((water)) districts may be joined into one consolidated ((water)) district. The consolidation may be initiated in either of the following ways: (1) Ten percent of the ((legal electors)) voters residing within each of the ((water)) districts proposed to be consolidated may petition the board of ((water)) commissioners of ((each of)) their respective ((water)) districts to cause the question to be submitted to the((legal electors)) voters of the ((water)) districts proposed to be consolidated; or (2) the board((s)) of ((water)) commissioners of each of the ((water)) districts proposed to be consolidated may by resolution determine that the consolidation of the districts shall be conducive to the public health, welfare, and convenience and to be of special benefit to the lands of the districts.

      Sec. 1103. RCW 57.32.020 and 1982 1st ex.s. c 17 s 30 are each amended to read as follows:

      If the consolidation proceedings are initiated by petitions, upon the filing of such petitions with the boards of ((water)) commissioners of the ((water)) districts, the boards of ((water)) commissioners of each district shall file such petitions with the ((election officer)) auditor of ((each)) the county in which ((any)) all or the largest geographic portion of the respective districts is located, who shall within ten days examine and verify the signatures of the signers residing in the county. ((The petition shall be transmitted by the other county election officers to the county election officer of the county in which the largest land area involved in the petitions is located, who shall certify to the sufficiency or insufficiency of the signatures.)) If the districts proposed to be consolidated include areas located in more than one county, the auditor of the county in which the largest geographic portion of the consolidating districts is located shall be the lead auditor and shall immediately transfer a copy of the petitions to the auditor of each other county in which the consolidating districts are located. Within ten days after the lead auditor received the petition, the auditors of these other counties shall certify to the lead auditor: (1) The number of voters of that county residing in each consolidating district; and (2) the number of valid signatures on the petition of voters of that county residing in each consolidating district. The lead auditor shall certify the sufficiency of the petition after receiving this information. If all of such petitions shall be found to contain a sufficient number of signatures, the county ((election officer)) auditor shall transmit the same, together with a certificate of sufficiency attached thereto, to the board((s)) of ((water)) commissioners of each of the districts proposed for consolidation. ((In the event that))

      If there are no ((legal electors)) voters residing in one or more of the ((water)) districts proposed to be consolidated, such petitions may be signed by such a number of landowners as appear of record to own at least a majority of the acreage in the pertinent ((water)) district, and the petitions shall disclose the total number of acres of land in ((the said water)) that district and shall also contain the names of all record owners of land therein.

      Sec. 1104. RCW 57.32.021 and 1967 ex.s. c 39 s 8 are each amended to read as follows:

      Upon receipt by the boards of ((water)) commissioners of the districts proposed for consolidation, hereinafter referred to as the "consolidating districts", of the lead county auditor's certificate of sufficiency of the petitions, or upon adoption by the boards of ((water)) commissioners of the consolidating districts of their resolutions for consolidation, the boards of ((water)) commissioners of the consolidating districts shall, within ninety days, enter into an agreement providing for consolidation. The agreement shall set forth the method and manner of consolidation, a comprehensive plan or scheme of water supply, sewer, and drainage services for the consolidated district, and((,)) if the comprehensive plan or scheme of water supply, sewer, and drainage services provides that one or more of the consolidating districts or the proposed consolidated district issue revenue bonds for either the construction ((and/or)) or other costs of any part or all of ((said)) the comprehensive plan, or both, then the details thereof shall be set forth. The requirement that a comprehensive plan or scheme of water supply, sewer, and drainage services for the consolidated district be set forth in the agreement for consolidation((,)) shall be satisfied if the existing comprehensive plans or schemes of the consolidating districts are incorporated therein by reference and any changes or additions thereto are set forth in detail.

      Sec. 1105. RCW 57.32.022 and 1994 c 223 s 71 are each amended to read as follows:

      The ((respective)) boards of ((water)) commissioners of the consolidating districts shall certify the agreement to the county ((election officer)) auditors of ((each county)) the respective counties in which the districts are located. A special election shall be called by the county ((election officer)) auditors for the purpose of submitting to the voters of each of the consolidating districts the proposition of whether or not the several districts shall be consolidated into one ((water)) district. The proposition shall give the title of the proposed consolidated district. Notice of the election shall be given and the election conducted in accordance with the general election laws.

      Sec. 1106. RCW 57.32.023 and 1994 c 223 s 72 are each amended to read as follows:

      If at the election a majority of the voters in each of the consolidating districts vote in favor of the consolidation, the county canvassing board shall so declare in its canvass and the return of such election shall be made within ten days after the date thereof. Upon the return the consolidation shall be effective and the consolidating districts shall cease to exist and shall then be and become a new ((water)) district and municipal corporation of the state of Washington. The name of ((such)) the new ((water)) district shall be "((Water District No. . . . . .)) Water-Sewer District," ". . . . . Water District," ". . . . . Sewer District," or ". . . . . District No.,"((,)) which shall be the name appearing on the ballot. The district shall have all and every power, right, and privilege possessed by other water-sewer, sewer, or water districts of the state of Washington. The district may issue revenue bonds to pay for the construction of any additions and betterments set forth in the comprehensive plan of water supply, sewer, and drainage services contained in the agreement for consolidation and any future additions and betterments to the comprehensive plan of water supply, sewer, and drainage services, as its board of ((water)) district commissioners shall by resolution adopt, without submitting a proposition therefor to the voters of the district.

      Sec. 1107. RCW 57.32.024 and 1967 ex.s. c 39 s 11 are each amended to read as follows:

      Upon the formation of any consolidated ((water)) district, all funds, rights, and property, real and personal, of the former districts, shall vest in and become the property of the consolidated district. Unless the agreement for consolidation provides to the contrary, any outstanding indebtedness of any form, owed by the districts, shall remain the obligation of the area of the original debtor district and the ((water)) board of commissioners of the consolidated ((water)) district shall make such levies, assessments, or charges for service upon that area or the ((water)) users therein as shall pay off the indebtedness at maturity.

      Sec. 1108. RCW 57.32.130 and 1985 c 141 s 9 are each amended to read as follows:

      The ((water)) commissioners of ((all water)) the districts consolidated into any new consolidated ((water)) district shall become ((water)) commissioners thereof until their respective terms of office expire or until they resign from office if the resignation is before the expiration of their terms of office. At each election of ((water)) commissioners following the consolidation, only one position shall be filled, so that as the terms of office expire, the total number of ((water)) commissioners in the consolidated ((water)) district shall be reduced to three. However, if the agreement provides that the consolidated district eventually will be governed by a five-member board of commissioners, one commissioner shall be elected to a six-year term of office at the first district general election following the consolidation, two commissioners shall be elected to six-year terms of office at the second district general election following the consolidation, and two commissioners shall be elected to six-year terms of office at the third district general election following the consolidation.

      Sec. 1109. RCW 57.32.160 and 1987 c 449 s 18 are each amended to read as follows:

      A part of one ((water or sewer)) district may be transferred into an adjacent ((water)) district if the area can be better served thereby. Such transfer can be accomplished by a petition, directed to both districts, signed by the owners according to the records of the county auditor of not less than sixty percent of the area of land to be transferred. If a majority of the commissioners of each district approves the petition, copies of the approving resolutions shall be filed with the county legislative authority which shall act upon the petition as a proposed action in accordance with RCW 57.02.040.


PART XII - MERGER OF DISTRICTS


      Sec. 1201. RCW 57.36.001 and 1989 c 84 s 61 are each amended to read as follows:

      Actions taken under this chapter ((57.36 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 1202. RCW 57.36.010 and 1989 c 308 s 12 are each amended to read as follows:

      Whenever ((two water)) one or more districts desire to merge((, either district, hereinafter)) into another district, the district or districts desiring to merge into the other district shall be referred to as the "merging district"((, may merge into the other district, hereinafter)) or "merging districts" and the district into which the merging district or districts desire to merge shall be referred to as the "merger district."((, and)) after the merger, the merger district ((will)) shall survive under its original name or number.

      Sec. 1203. RCW 57.36.020 and 1967 ex.s. c 39 s 4 are each amended to read as follows:

      A merger of ((two water)) districts may be initiated in either of the following ways:

      (1) Whenever the boards of ((water)) commissioners of ((both such)) districts determine by resolution that the merger of such districts shall be conducive to the public health, welfare, and convenience and to be of special benefit to the lands of such districts.

      (2) Whenever ten percent of the ((legal electors)) voters residing within the merging district or districts petition the board of ((water)) commissioners of the merging ((water)) district or districts for a merger, and the board of ((water)) commissioners of the merger district determines by resolution that the merger of the districts shall be conducive to the public health, welfare, and convenience of the ((two)) districts.

      Sec. 1204. RCW 57.36.030 and 1982 1st ex.s. c 17 s 33 are each amended to read as follows:

      Whenever a merger is initiated in either of the two ways provided under this chapter, the boards of ((water)) commissioners of the ((two)) districts shall enter into an agreement providing for the merger. ((Said)) The agreement must be entered into within ninety days following completion of the last act in initiation of the merger.

      The respective boards of ((water)) commissioners shall certify the agreement to the county ((election officer)) auditor of each county in which the districts are located. ((The)) Each county ((election officer)) auditor shall call a special election for the purpose of submitting to the voters of the ((merging)) respective districts the proposition of whether the merging district or districts shall be merged into the merger district. Notice of the elections shall be given and the elections conducted in accordance with the general election laws.

      Sec. 1205. RCW 57.36.040 and 1982 c 104 s 2 are each amended to read as follows:

      If at such election a majority of the voters of the merging ((water)) district or districts shall vote in favor of the merger, the county canvassing board shall so declare in its canvass and the return of such election shall be made within ten days after the date thereof, and upon such return the merger shall be effective and the merging ((water)) district or districts shall cease to exist and shall become a part of the merger ((water)) district. The ((water)) commissioners of the merging district or districts shall hold office as commissioners of the new ((consolidated water)) merged district until their respective terms of office expire or until they resign from office if the resignation is before the expiration of their terms of office. ((At the district election immediately preceding the time when the total number of remaining water commissioners is reduced to two through expiration of terms of office, one water commissioner shall be elected for a four year term of office. At the next district election, one water commissioner shall be elected for a four year term of office and one shall be elected for a six year term of office. Thereafter, each water commissioner shall be elected for a six-year term of office in the manner provided by RCW 57.12.020 and 57.12.030 for elections in an existing district.)) The election of commissioners in the merger district after the merger shall occur as provided in RCW 57.32.130 in a consolidated district after the consolidation.

      Sec. 1206. RCW 57.40.135 and 1988 c 162 s 4 are each amended to read as follows:

      A person who serves on the board of commissioners of a ((sewer)) merging district ((that merges under this chapter into a water district, for which the person also serves on the board of commissioners, shall only hold one position on the board of commissioners of the district that results from the merger)) and a merger district shall hold only one position on the board of commissioners of the merger district and shall only receive compensation, expenses, and benefits that are available to a single commissioner.

      Sec. 1207. RCW 57.36.050 and 1967 ex.s. c 39 s 7 are each amended to read as follows:

      All funds and property, real and personal, of the merging district or districts, shall vest in and become the property of the merger district. Unless the agreement of merger provides to the contrary, any outstanding indebtedness of any form, owed by the districts, shall remain the obligation of the area of the original debtor district; and the ((water)) commissioners of the merger ((water)) district shall make such levies, assessments, or charges for service upon ((said)) such area or the ((water)) users therein as shall pay off such indebtedness at maturity.


PART XIII - DISPOSITION OF PROPERTY


      Sec. 1301. RCW 57.42.010 and 1973 1st ex.s. c 56 s 1 are each amended to read as follows:

      Subject to the provisions of RCW 57.42.020 and 57.42.030, any ((water)) district created under the provisions of this title may sell, transfer, exchange, lease or otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to a public utility district in the same county on such terms as may be mutually agreed upon by the board of commissioners of each district.

      Sec. 1302. RCW 57.42.020 and 1973 1st ex.s. c 56 s 2 are each amended to read as follows:

      No ((water)) district shall dispose of its property to a public utility district unless the respective board of commissioners of each district shall determine by resolution that such disposition is in the public interest and conducive to the public health, welfare, and convenience. Copies of each resolution, together with copies of the proposed disposition agreement, shall be filed with the legislative authority of the county in which the ((water)) district is located((,)) and with the superior court of that county. Unless the proposed agreement provides otherwise, any outstanding indebtedness of any form((,)) owed by the water district((,)) shall remain the obligation of the area of the ((water)) district, and the board of commissioners of the public utility district ((commissioners)) shall be empowered to make such levies, assessments, or charges upon that area or the water, sewer, or drainage users therein as shall pay off the indebtedness at maturity.

      Sec. 1303. RCW 57.42.030 and 1973 1st ex.s. c 56 s 3 are each amended to read as follows:

      Within ninety days after the resolutions and proposed agreement have been filed with the court, the court shall fix a date for a hearing and shall direct that notice of the hearing be given by publication. After reviewing the proposed agreement and considering other evidence presented at the hearing, the court may determine by decree that the proposed disposition is in the public interest and conducive to the public health, welfare, and convenience. In addition, the decree shall authorize the payment of all or a portion of the indebtedness of the ((water)) district relating to property disposed of under such decree. Pursuant to the court decree, the ((water)) district shall dispose of its property under the terms of the disposition agreement with the public utility district.


PART XIV - LOW-INCOME CUSTOMER ASSISTANCE


      Sec. 1401. RCW 57.46.010 and 1995 c 399 s 149 are each amended to read as follows:

      A ((water)) district may include along with, or as part of its regular customer billings, a request for voluntary contributions to assist qualified low-income residential customers of the district in paying their ((water)) district bills. All funds received by the district in response to such requests shall be transmitted to the grantee of the department of community, trade, and economic development which administers federally funded energy assistance programs for the state in the district's service area or to a charitable organization within the district's service area. All such funds shall be used solely to supplement assistance to low-income residential customers of the district in paying their ((water)) district bills. The grantee or charitable organization shall be responsible to determine which of the district's customers are qualified for low-income assistance and the amount of assistance to be provided to those who are qualified.

      Sec. 1402. RCW 57.46.020 and 1995 c 399 s 150 are each amended to read as follows:

      All assistance provided under this chapter shall be disbursed by the grantee or charitable organization. Where possible the ((water)) district ((will)) shall be paid on behalf of the customer by the grantee or the charitable organization. When direct vendor payment is not feasible, a check ((will)) shall be issued jointly payable to the customer and the ((water)) district. The availability of funds for assistance to a district's low-income customers as a result of voluntary contributions shall not reduce the amount of assistance for which the district's customers are eligible under the federally funded energy assistance programs administered by the grantee of the department of community, trade, and economic development within the district's service area. The grantee or charitable organization shall provide the district with a quarterly report on January 15th, April 15th, July 15th, and October 15th which includes information concerning the total amount of funds received from the district, the names of all recipients of assistance from these funds, the amount received by each recipient, and the amount of funds received from the district currently on hand and available for future low-income assistance.

      Sec. 1403. RCW 57.46.030 and 1993 c 45 s 7 are each amended to read as follows:

      Contributions received under a program implemented by a ((water)) district in compliance with this chapter shall not be considered a commingling of funds.

PART XV - DISINCORPORATION


      Sec. 1501. RCW 57.90.001 and 1989 c 84 s 63 are each amended to read as follows:

      Actions taken under this chapter ((57.90 RCW)) may be subject to potential review by a boundary review board under chapter 36.93 RCW.

      Sec. 1502. RCW 57.90.010 and 1991 c 363 s 137 are each amended to read as follows:

      Water-sewer, sewer, water, ((sewer,)) park and recreation, metropolitan park, county rural library, cemetery, flood control, mosquito control, diking and drainage, irrigation or reclamation, weed, health, or fire protection districts, and any air pollution control authority, hereinafter referred to as "special districts((",))," which are located wholly or in part within a county with a population of two hundred ten thousand or more may be disincorporated when the district has not actively carried out any of the special purposes or functions for which it was formed within the preceding consecutive five-year period.

      Sec. 1503. RCW 57.90.020 and 1982 1st ex.s. c 17 s 35 are each amended to read as follows:

      Upon the filing with the county legislative authority of each county in which the district is located of a resolution of any governmental unit calling for the disincorporation of a special district, or upon the filing with the county legislative authority of each county in which the district is located of the petition of twenty percent of the ((qualified electors)) voters within a special district calling for the disincorporation of ((a)) the special district, the county legislative authority shall hold public hearings to determine whether or not any services have been provided within a consecutive five year period and whether the best interests of all persons concerned will be served by the proposed dissolution of the special district.

      Sec. 1504. RCW 57.90.030 and 1963 c 55 s 3 are each amended to read as follows:

      If the ((board of)) county ((commissioners)) legislative authority finds that no services have been provided within the preceding consecutive five-year period and that the best interests of all persons concerned will be served by disincorporating the special district, it shall order that such action be taken, specify the manner in which it is to be accomplished and supervise the liquidation of any assets and the satisfaction of any outstanding indebtedness.

      Sec. 1505. RCW 57.90.040 and 1963 c 55 s 4 are each amended to read as follows:

      ((In the event)) If a special district is disincorporated the proceeds of the sale of any of its assets, together with money((s)) on hand in the treasury of the special district, shall after payment of all costs and expenses and all outstanding indebtedness be paid to the county treasurer to be placed to the credit of the school district, or districts, in which such special district is situated.

      Sec. 1506. RCW 57.90.050 and 1963 c 55 s 5 are each amended to read as follows:

      ((In the event)) If a special district is disincorporated and the proceeds of the sale of any of its assets, together with money((s)) on hand in the treasury of the special district, are insufficient to retire any outstanding indebtedness, together with all costs and expenses of liquidation, the ((board of)) county ((commissioners)) legislative authority shall levy assessments in the manner provided by law against the property in the special district in amounts sufficient to retire ((said)) the indebtedness and pay ((such)) the costs and expenses.

      Sec. 1507. RCW 57.90.100 and 1971 ex.s. c 125 s 1 are each amended to read as follows:

      Whenever as the result of abandonment of an irrigation district right of way real property held by an irrigation district is to be sold or otherwise disposed of, notice shall be given to the owners of the lands adjoining that real property and such owners shall have ((a)) the right of first refusal to purchase at the appraised price all or any part of the real property to be sold or otherwise disposed of which adjoins or is adjacent to their land.

      Real property to be sold or otherwise disposed of under this section shall have been first appraised by the county assessor or by a person designated by ((him)) the county assessor.

      Notice under this section shall be sufficient if sent by registered mail to the owner((, and)) at the address((, as)) shown in the tax records of the county in which the land is situated. Notice under this section shall be in addition to any ((other)) notice required by law.

      After sixty days from the date of sending of notice, if no applications for purchase have been received by the irrigation district or other person or entity sending notice, the rights of first refusal of owners of adjoining lands shall be deemed to have been waived, and the real property may be ((sold or otherwise)) disposed of or sold.

      If two or more owners of adjoining lands apply to purchase the same real property, or apply to purchase overlapping parts of the real property, the respective rights of the applicants may be determined in the superior court of the county in which the real property is situated((; and)). The court may divide the real property in question between some or all of the applicants or award the whole to one applicant, as justice may require.


PART XVI - TECHNICAL CORRECTIONS


      Sec. 1601. RCW 35.13.900 and 1995 c 279 s 3 are each amended to read as follows:

      Nothing in this chapter precludes or otherwise applies to an annexation by a city or town of unincorporated territory as authorized by RCW ((56.24.180, 56.24.200, and 56.24.205, or)) 57.24.170, 57.24.190, and 57.24.210.

      Sec. 1602. RCW 35.58.570 and 1989 c 389 s 1 are each amended to read as follows:

      (1) A metropolitan municipal corporation that is engaged in the transmission, treatment, and disposal of sewage may impose a capacity charge on users of the metropolitan municipal corporation's sewage facilities when the user connects, reconnects, or establishes a new service. The capacity charge shall be approved by the council of the metropolitan municipal corporation and reviewed and reapproved annually.

      (2) The capacity charge shall be based upon the cost of the sewage facilities' excess capacity that is necessary to provide sewerage treatment for new users to the system. The capacity charge, which may be collected over a period of fifteen years, shall not exceed:

      (a) Seven dollars per month per residential customer equivalent for connections and reconnections occurring prior to January 1, 1996; and

      (b) Ten dollars and fifty cents per month per residential customer equivalent for connections and reconnections occurring after January 1, 1996, and prior to January 1, 2001.

      For connections and reconnections occurring after January 1, 2001, the capacity charge shall not exceed fifty percent of the basic sewer rate per residential customer equivalent established by the metropolitan municipal corporation at the time of the connection or reconnection.

      (3) The capacity charge for a building other than a single-family residence shall be based on the projected number of residential customer equivalents to be represented by the building, considering its intended use.

      (4) The council of the metropolitan municipal corporation shall enforce the collection of the capacity charge in the same manner provided for the collection, enforcement, and payment of rates and charges for water-sewer districts provided in ((RCW 56.16.100 and 56.16.110)) section 314 of this act. At least thirty days before commencement of an action to foreclose a lien for a capacity charge, the metropolitan municipal corporation shall send written notice of delinquency in payment of the capacity charge to any first mortgage or deed of trust holder of record at the address of record.

      (5) As used in this section, "sewage facilities" means capital projects identified since January 1, 1982, to July 23, 1989, in the metropolitan municipal corporation's comprehensive water pollution abatement plan. "Residential customer equivalent" shall have the same meaning used by the metropolitan municipal corporation in determining rates and charges at the time the capacity charge is imposed.

      Sec. 1603. RCW 35.97.050 and 1983 c 216 s 5 are each amended to read as follows:

      If the legislative authority of a municipality deems it advisable that the municipality purchase, acquire, or construct a heating system, or make any additions or extensions to a heating system, the legislative authority shall so provide by an ordinance or a resolution specifying and adopting the system or plan proposed, declaring the estimated cost thereof, as near as may be, and specifying the method of financing and source of funds. Any construction, alteration, or improvement of a heating system by any county, city, town, irrigation district, water-sewer district, ((sewer district,)) or port district shall be in compliance with the appropriate competitive bidding requirements in Titles 35, 36, 53, ((56,)) 57, or 87 RCW.

      Sec. 1604. RCW 35A.14.901 and 1995 c 279 s 4 are each amended to read as follows:

      Nothing in this chapter precludes or otherwise applies to an annexation by a code city of unincorporated territory as authorized by RCW ((56.24.180, 56.24.200, and 56.24.205, or)) 57.24.170, 57.24.190, and 57.24.210.

      Sec. 1605. RCW 35A.56.010 and 1987 c 331 s 79 are each amended to read as follows:

      Except as otherwise provided in this title, state laws relating to special service or taxing districts shall apply to, grant powers, and impose duties upon code cities and their officers to the same extent as such laws apply to and affect other classes of cities and towns and their employees, including, without limitation, the following: (1) Chapter 70.94 RCW, relating to air pollution control; (2) chapter 68.52 RCW, relating to cemetery districts; (3) chapter 29.68 RCW, relating to congressional districts; (4) chapters 14.07 and 14.08 RCW, relating to municipal airport districts; (5) chapter 36.88 RCW, relating to county road improvement districts; (6) Title 85 RCW, relating to diking districts, drainage districts, and drainage improvement districts; (7) chapter 36.54 RCW, relating to ferry districts; (8) Title 52 RCW, relating to fire protection districts; (9) Title 86 RCW, relating to flood control districts and flood control; (10) chapter 70.46 RCW, relating to health districts; (11) chapters 87.03 through 87.84 and 89.12 RCW, relating to irrigation districts; (12) chapter 35.61 RCW, relating to metropolitan park districts; (13) chapter 35.58 RCW, relating to metropolitan municipalities; (14) chapter 17.28 RCW, relating to mosquito control districts; (15) chapter 17.12 RCW, relating to agricultural pest districts; (16) ((chapter 13.12 RCW, relating to parental or truant schools; (17))) Title 53 RCW, relating to port districts; (((18))) (17) chapter 70.44 RCW, relating to public hospital districts; (((19))) (18) Title 54 RCW, relating to public utility districts; (((20))) (19) chapter 91.08 RCW, relating to public waterway districts; (((21) Title 56 RCW for sewer districts; (22))) (20) chapter 89.12 RCW, relating to reclamation districts; (((23))) (21) chapters 57.02 through 57.36 RCW, relating to water-sewer districts; and (((24))) (22) chapter 17.04 RCW, relating to weed districts.

      Sec. 1606. RCW 35A.70.010 and 1967 ex.s. c 119 s 35A.70.010 are each amended to read as follows:

      Every code city shall have authority to protect waters within the city or comprising part of the city's water supply pursuant to the authority provided therefor by RCW 9.66.050, 54.16.050, ((56.08.010,)) 69.30.130, 57.08.010, 8.12.030, 70.54.010 and 70.54.030.

      Sec. 1607. RCW 36.29.160 and 1963 c 4 s 36.29.160 are each amended to read as follows:

      The county treasurer shall make segregation, collect, and receive from any owner or owners of any subdivision or portion of any lot, tract or parcel of land upon which assessments or charges have been made or may be made hereafter in public utility districts, ((sewer districts,)) water-sewer districts, or county road improvement districts, under the terms of Title 54 RCW, ((Title 56 RCW,)) Title 57 RCW, or chapter 36.88 RCW, such portion of the assessments or charges levied or to be levied against such lot, tract or parcel of land in payment of such assessment or charges as the board of commissioners of the public utility district, ((sewer district,)) the water-sewer district commissioners or the board of county commissioners, respectively, shall certify to be chargeable to such subdivision, which certificate shall state that such property as segregated is sufficient security for the assessment or charges. Upon making collection upon any such subdivision the county treasurer shall note such payment upon his records and give receipt therefor.

      Sec. 1608. RCW 36.93.090 and 1995 c 131 s 1 are each amended to read as follows:

      Whenever any of the following described actions are proposed in a county in which a board has been established, the initiators of the action shall file within one hundred eighty days a notice of intention with the board: PROVIDED, That when the initiator is the legislative body of a governmental unit, the notice of intention may be filed immediately following the body's first acceptance or approval of the action. The board may review any such proposed actions pertaining to:

      (1) The: (a) Creation, incorporation, or change in the boundary, other than a consolidation, of any city, town, or special purpose district; (b) consolidation of special purpose districts, but not including consolidation of cities and towns; or (c) dissolution or disincorporation of any city, town, or special purpose district, except that a board may not review the dissolution or disincorporation of a special purpose district which was dissolved or disincorporated pursuant to the provisions of chapter 36.96 RCW: PROVIDED, That the change in the boundary of a city or town arising from the annexation of contiguous city or town owned property held for a public purpose shall be exempted from the requirements of this section; or

      (2) The assumption by any city or town of all or part of the assets, facilities, or indebtedness of a special purpose district which lies partially within such city or town; or

      (3) The establishment of or change in the boundaries of a mutual water and sewer system or separate sewer system by a water-sewer district pursuant to RCW 57.08.065 or chapter 57.40 RCW((, as now or hereafter amended)); or

      (4) ((The establishment of or change in the boundaries of a mutual sewer and water system or separate water system by a sewer district pursuant to RCW 56.20.015 or chapter 56.36 RCW, as now or hereafter amended; or

      (5))) The extension of permanent water or sewer service outside of its existing service area by a city, town, or special purpose district. The service area of a city, town, or special purpose district shall include all of the area within its corporate boundaries plus, (a) for extensions of water service, the area outside of the corporate boundaries which it is designated to serve pursuant to a coordinated water system plan approved in accordance with RCW 70.116.050; and (b) for extensions of sewer service, the area outside of the corporate boundaries which it is designated to serve pursuant to a comprehensive sewerage plan approved in accordance with chapter 36.94 RCW and RCW 90.48.110.

      Sec. 1609. RCW 36.94.420 and 1985 c 141 s 1 are each amended to read as follows:

      If so provided in the transfer agreement, the area served by the system shall, upon completion of the transfer, be deemed annexed to and become a part of the water-sewer ((or sewer)) district acquiring the system. The county shall provide notice of the hearing by the county legislative authority on the ordinance executing the transfer agreement under RCW 36.94.330 as follows: (1) By mailed notice to all ratepayers served by the system at least fifteen days prior to the hearing; and (2) by notice in a newspaper of general circulation once at least fifteen days prior to the hearing.

      In the event of an annexation under this section resulting from the transfer of a system of sewerage or combined water and sewer systems from a county to a water-sewer district governed by Title 57 RCW, the water-sewer district shall have all the powers of a water-sewer district provided by chapter 57.36 RCW ((57.40.150)), as if a water-sewer district had been merged into a water-sewer district. ((In the event of an annexation under this section as a result of the transfer of a system of water or combined water and sewer systems from a county to a sewer district governed by Title 56 RCW, the sewer district shall have all the powers of a sewer district provided by RCW 56.36.060 as if a water district had been merged into the sewer district.))

      Sec. 1610. RCW 41.04.190 and 1992 c 146 s 13 are each amended to read as follows:

      The cost of a policy or plan to a public agency or body is not additional compensation to the employees or elected officials covered thereby. The elected officials to whom this section applies include but are not limited to commissioners elected under chapters 28A.315, 52.14, 53.12, 54.12, ((56.12,)) 57.12, 70.44, and 87.03 RCW, as well as any county elected officials who are provided insurance coverage under RCW 41.04.180. Any officer authorized to disburse such funds may pay in whole or in part to an insurance carrier or health care service contractor the amount of the premiums due under the contract.

      Sec. 1611. RCW 43.99F.020 and 1990 1st ex.s. c 15 s 9 are each amended to read as follows:

      For the purpose of providing funds to public bodies for the planning, design, acquisition, construction, and improvement of public waste disposal and management facilities, or for purposes of assisting a public body to obtain an ownership interest in waste disposal and management facilities and/or to defray a part of the payments made by a public body to a service provider under a service agreement entered into pursuant to RCW 70.150.060, in this state, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of three hundred thirty million dollars, or so much thereof as may be required, to finance the improvements defined in this chapter and all costs incidental thereto. The department may not use or permit the use of any funds derived from the sale of bonds authorized by this chapter for: (1) the support of a solid waste recycling activity or service in a locale if the department determines that the activity or service is reasonably available to persons within that locale from private enterprise; or (2) the construction of municipal wastewater facilities unless said facilities have been approved by a general purpose unit of local government in accordance with chapter 36.94 RCW, chapter 35.67 RCW, or RCW ((56.08.020)) 57.16.010. These bonds shall be paid and discharged within thirty years of the date of issuance. No bonds authorized by this chapter shall be offered for sale without prior legislative appropriation of the proceeds of the bonds to be sold.

      Sec. 1612. RCW 82.02.020 and 1990 1st ex.s. c 17 s 42 are each amended to read as follows:

      Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 82.02.050 through 82.02.090, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

      This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

      (1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;

      (2) The payment shall be expended in all cases within five years of collection; and

      (3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

      No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.

      Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

      This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

      Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.

      Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

      Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.

      Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440 and 59.18.450.

      This section does not apply to special purpose districts formed and acting pursuant to Titles 54, ((56,)) 57, or 87 RCW, nor is the authority conferred by these titles affected.

      Sec. 1613. RCW 84.09.030 and 1994 c 292 s 4 are each amended to read as follows:

      Except as follows, the boundaries of counties, cities and all other taxing districts, for purposes of property taxation and the levy of property taxes, shall be the established official boundaries of such districts existing on the first day of March of the year in which the property tax levy is made.

      The official boundaries of a newly incorporated taxing district shall be established at a different date in the year in which the incorporation occurred as follows:

      (1) Boundaries for a newly incorporated city shall be established on the last day of March of the year in which the initial property tax levy is made, and the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was incorporated within its boundaries shall be altered as of this date to exclude this area, if the budget for the newly incorporated city is filed pursuant to RCW 84.52.020 and the levy request of the newly incorporated city is made pursuant to RCW 84.52.070. Whenever a proposed city incorporation is on the March special election ballot, the county auditor shall submit the legal description of the proposed city to the department of revenue on or before the first day of March;

      (2) Boundaries for a newly incorporated port district shall be established on the first day of October if the boundaries of the newly incorporated port district are coterminous with the boundaries of another taxing district, as they existed on the first day of March of that year;

      (3) Boundaries of any other newly incorporated taxing district shall be established on the first day of June of the year in which the property tax levy is made if the taxing district has boundaries coterminous with the boundaries of another taxing district, as they existed on the first day of March of that year;

      (4) Boundaries for a newly incorporated water-sewer district shall be established on the fifteenth of June of the year in which the proposition under RCW 57.04.050 authorizing a water district excess levy is approved.

      The boundaries of a taxing district shall be established on the first day of June if territory has been added to, or removed from, the taxing district after the first day of March of that year with boundaries coterminous with the boundaries of another taxing district as they existed on the first day of March of that year. However, the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was annexed to a city or town within its boundaries shall be altered as of this date to exclude this area. In any case where any instrument setting forth the official boundaries of any newly established taxing district, or setting forth any change in such boundaries, is required by law to be filed in the office of the county auditor or other county official, said instrument shall be filed in triplicate. The officer with whom such instrument is filed shall transmit two copies to the county assessor.

      No property tax levy shall be made for any taxing district whose boundaries are not established as of the dates provided in this section.

      Sec. 1614. RCW 84.38.020 and 1995 c 329 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) "Claimant" means a person who either elects or is required under RCW 84.64.050 to defer payment of the special assessments and/or real property taxes accrued on the claimant's residence by filing a declaration to defer as provided by this chapter.

      When two or more individuals of a household file or seek to file a declaration to defer, they may determine between them as to who the claimant shall be.

      (2) "Department" means the state department of revenue.

      (3) "Equity value" means the amount by which the fair market value of a residence as determined from the records of the county assessor exceeds the total amount of any liens or other obligations against the property.

      (4) "Real property taxes" means ad valorem property taxes levied on a residence in this state in the preceding calendar year.

      (5) "Residence" has the meaning given in RCW 84.36.383, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations.

      (6) "Special assessment" means the charge or obligation imposed by a city, town, county, or other municipal corporation upon property specially benefited by a local improvement, including assessments under chapters 35.44, 36.88, 36.94, 53.08, 54.16, ((56.20,)) 57.16, 86.09, and 87.03 RCW and any other relevant chapter.

      Sec. 1615. RCW 84.52.052 and 1993 c 284 s 4 are each amended to read as follows:

      The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. As used in this section, the term "taxing district" means any county, metropolitan park district, park and recreation service area, park and recreation district, ((sewer district,)) water-sewer district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, rural partial-county library district, intercounty rural library district, fire protection district, cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, or cultural arts, stadium, and convention district.

      Any such taxing district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and 84.52.043, or 84.55.010 through 84.55.050, when authorized so to do by the voters of such taxing district in the manner set forth in Article VII, section 2(a) of the Constitution of this state((, as amended by Amendment 64 and as thereafter amended,)) at a special or general election to be held in the year in which the levy is made.

      A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any such taxing district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

      Sec. 1616. RCW 90.03.510 and 1986 c 278 s 63 are each amended to read as follows:

      Whenever a county, city, town, water-sewer district, or flood control zone district imposes rates or charges to fund storm water control facilities or improvements and the operation and maintenance of such facilities or improvements under RCW 35.67.020, 35.92.020, 36.89.080, 36.94.140, ((56.08.010, or 56.16.090)) section 301 of this act, or section 314 of this act, it may provide a credit for the value of storm water control facilities or improvements that a person or entity has installed or located that mitigate or lessen the impact of storm water which otherwise would occur.

      Sec. 1617. RCW 90.03.525 and 1986 c 278 s 54 are each amended to read as follows:

      The rate charged by a local government utility to the department of transportation with respect to state highway right of way or any section of state highway right of way for the construction, operation, and maintenance of storm water control facilities under chapters 35.67, 35.92, 36.89, 36.94, ((56.08)) 57.08, and 86.15 RCW, shall be thirty percent of the rate for comparable real property, except as otherwise provided in this section. The rate charged to the department with respect to state highway right of way or any section of state highway right of way within a local government utility's jurisdiction shall not, however, exceed the rate charged for comparable city street or county road right of way within the same jurisdiction. The legislature finds that the aforesaid rates are presumptively fair and equitable because of the traditional and continuing expenditures of the department of transportation for the construction, operation, and maintenance of storm water control facilities designed to control surface water or storm water runoff from state highway rights of way. The utility imposing the charge and the department of transportation may, however, agree to either higher or lower rates with respect to the construction, operation, or maintenance of any specific storm water control facilities based upon the extent and adequacy of storm water control facilities constructed by the department and upon the actual benefits to state highway rights of way from the storm water control facilities constructed by the local government utility. If a different rate is agreed to, a report so stating shall be submitted to the legislative transportation committee. If the local government utility and the department of transportation cannot agree upon the proper rate, and after a report has been submitted to the legislative transportation committee and after ninety days from submission of such report, either may commence an action in the superior court for the county in which the state highway right of way is located to establish the proper rate. The court in establishing the proper rate shall take into account the extent and adequacy of storm water control facilities constructed by the department and the actual benefits to the sections of state highway rights of way from storm water control facilities constructed, operated, and maintained by the local government utility. Control of surface water runoff and storm water runoff from state highway rights of way shall be deemed an actual benefit to the state highway rights of way. The rate for sections of state highway right of way as determined by the court shall be set forth in terms of the percentage of the rate for comparable real property, but shall in no event exceed the rate charged for comparable city street or county road right of way within the same jurisdiction.


PART XVII - MISCELLANEOUS


      NEW SECTION. Sec. 1700. Part headings as used in this act do not constitute any part of the law.

      NEW SECTION. Sec. 1701. (1) RCW 56.02.070, 56.02.100, and 56.02.110, as amended by this act, are each recodified as sections in chapter 57.02 RCW.

      (2) RCW 56.04.080, 56.04.120, and 56.04.130, as amended by this act, are each recodified as sections in chapter 57.04 RCW.

      (3) RCW 56.02.030, 56.02.080, and 56.36.070 are each recodified as sections in chapter 57.06 RCW.

      (4) RCW 56.08.060 and 56.08.012, as amended by this act, and 56.08.170 are each recodified as sections in chapter 57.08 RCW.

      (5) RCW 56.08.030, as amended by this act, is recodified as a section in chapter 57.16 RCW.

      (6) RCW 56.20.030, as amended by this act, is recodified as a section in chapter 57.16 RCW.

      (7) RCW 57.16.020, 57.16.030, 57.16.035, and 57.16.040 are each recodified as sections in chapter 57.20 RCW.

      (8) RCW 57.40.135, as amended by this act, is recodified as a section in chapter 57.36 RCW.

      NEW SECTION. Sec. 1702. The following acts or parts of acts are each repealed:

      (1) RCW 56.02.010 and 1953 c 250 s 26;

      (2) RCW 56.02.040 and 1959 c 103 s 18;

      (3) RCW 56.02.050 and 1971 ex.s. c 272 s 12;

      (4) RCW 56.02.055 and 1982 1st ex.s. c 17 s 1;

      (5) RCW 56.02.060 and 1988 c 162 s 5 & 1971 ex.s. c 139 s 1;

      (6) RCW 56.02.120 and 1982 1st ex.s. c 17 s 2;

      (7) RCW 56.04.001 and 1989 c 84 s 50;

      (8) RCW 56.04.020 and 1974 ex.s. c 58 s 1, 1971 ex.s. c 272 s 1, 1945 c 140 s 1, 1943 c 74 s 1, & 1941 c 210 s 1;

      (9) RCW 56.04.030 and 1990 c 259 s 21, 1987 c 33 s 1, 1945 c 140 s 2, & 1941 c 210 s 2;

      (10) RCW 56.04.040 and 1945 c 140 s 3 & 1941 c 210 s 3;

      (11) RCW 56.04.050 and 1990 c 259 s 22, 1987 c 33 s 2, 1973 1st ex.s. c 195 s 61, 1953 c 250 s 1, 1945 c 140 s 4, & 1941 c 210 s 4;

      (12) RCW 56.04.060 and 1945 c 140 s 5 & 1941 c 210 s 6;

      (13) RCW 56.04.065 and 1983 c 88 s 1;

      (14) RCW 56.04.070 and 1985 c 141 s 2, 1981 c 45 s 3, & 1941 c 210 s 5;

      (15) RCW 56.04.090 and 1994 c 81 s 79, 1945 c 140 s 16, & 1941 c 210 s 47;

      (16) RCW 56.08.010 and 1989 c 389 s 2, 1989 c 308 s 1, & 1987 c 449 s 1;

      (17) RCW 56.08.013 and 1985 c 98 s 1 & 1977 ex.s. c 146 s 1;

      (18) RCW 56.08.014 and 1983 c 198 s 1;

      (19) RCW 56.08.015 and 1984 c 147 s 6 & 1969 c 119 s 1;

      (20) RCW 56.08.020 and 1990 1st ex.s. c 17 s 34, 1982 c 213 s 1, 1979 c 23 s 1, 1977 ex.s. c 300 s 1, 1971 ex.s. c 272 s 2, 1959 c 103 s 2, 1953 c 250 s 4, 1947 c 212 s 2, 1945 c 140 s 10, 1943 c 74 s 2, & 1941 c 210 s 11;

      (21) RCW 56.08.040 and 1953 c 250 s 6, 1951 c 129 s 1, 1943 c 74 s 3, & 1941 c 210 s 13;

      (22) RCW 56.08.050 and 1977 ex.s. c 300 s 2, 1953 c 250 s 7, & 1941 c 210 s 15;

      (23) RCW 56.08.065 and 1989 c 84 s 51;

      (24) RCW 56.08.070 and 1994 c 31 s 1;

      (25) RCW 56.08.075 and 1987 c 449 s 2 & 1982 c 105 s 2;

      (26) RCW 56.08.080 and 1993 c 198 s 17, 1989 c 308 s 5, 1984 c 172 s 1, & 1953 c 51 s 1;

      (27) RCW 56.08.090 and 1993 c 198 s 18, 1989 c 308 s 6, 1988 c 162 s 1, 1984 c 103 s 2, & 1953 c 51 s 2;

      (28) RCW 56.08.092 and 1986 c 244 s 15;

      (29) RCW 56.08.100 and 1991 sp.s. c 30 s 24, 1991 c 82 s 1, 1981 c 190 s 5, 1973 c 24 s 1, & 1961 c 261 s 1;

      (30) RCW 56.08.105 and 1973 c 125 s 6;

      (31) RCW 56.08.110 and 1995 c 301 s 75, 1973 1st ex.s. c 195 s 62, 1970 ex.s. c 47 s 4, & 1961 c 267 s 1;

      (32) RCW 56.08.120 and 1967 c 178 s 1;

      (33) RCW 56.08.130 and 1967 c 178 s 2;

      (34) RCW 56.08.140 and 1991 c 82 s 2 & 1967 c 178 s 3;

      (35) RCW 56.08.150 and 1967 c 178 s 4;

      (36) RCW 56.08.160 and 1967 c 178 s 5;

      (37) RCW 56.08.180 and 1982 c 213 s 3;

      (38) RCW 56.08.190 and 1987 c 309 s 3;

      (39) RCW 56.08.200 and 1995 c 376 s 14 & 1991 c 190 s 1;

      (40) RCW 56.12.010 and 1985 c 330 s 5, 1980 c 92 s 1, 1969 ex.s. c 148 s 7, 1959 c 103 s 4, 1955 c 373 s 1, 1945 c 140 s 8, & 1941 c 210 s 9;

      (41) RCW 56.12.015 and 1994 c 223 s 62, 1991 c 190 s 2, 1990 c 259 s 23, & 1987 c 449 s 3;

      (42) RCW 56.12.020 and 1994 c 223 s 63, 1979 ex.s. c 126 s 38, 1963 c 200 s 17, 1955 c 55 s 12, & 1953 c 110 s 1;

      (43) RCW 56.12.030 and 1994 c 223 s 64, 1990 c 259 s 24, 1986 c 41 s 1, 1985 c 141 s 3, 1981 c 169 s 2, 1953 c 250 s 9, 1947 c 212 s 1, 1945 c 140 s 7, & 1941 c 210 s 8;

      (44) RCW 56.12.040 and 1987 c 449 s 4;

      (45) RCW 56.12.050 and 1994 c 223 s 65;

      (46) RCW 56.16.010 and 1984 c 186 s 46, 1973 1st ex.s. c 195 s 63, 1953 c 250 s 10, 1951 2nd ex.s. c 26 s 1, & 1941 c 210 s 14;

      (47) RCW 56.16.020 and 1987 c 449 s 5, 1977 ex.s. c 300 s 3, 1959 c 103 s 5, 1953 c 250 s 11, 1951 c 129 s 2, & 1941 c 210 s 16;

      (48) RCW 56.16.030 and 1989 c 389 s 3, 1984 c 186 s 47, 1977 ex.s. c 300 s 4, 1973 1st ex.s. c 195 s 64, 1959 c 103 s 6, 1953 c 250 s 12, 1951 2nd ex.s. c 26 s 2, 1951 c 129 s 3, 1945 c 140 s 11, & 1941 c 210 s 17;

      (49) RCW 56.16.035 and 1977 ex.s. c 300 s 5 & 1959 c 103 s 7;

      (50) RCW 56.16.040 and 1984 c 186 s 48, 1983 c 167 s 155, 1973 1st ex.s. c 195 s 65, 1970 ex.s. c 56 s 80, 1969 ex.s. c 232 s 85, 1953 c 250 s 13, 1951 2nd ex.s. c 26 s 3, 1945 c 140 s 12, & 1941 c 210 s 18;

      (51) RCW 56.16.050 and 1984 c 186 s 49, 1970 ex.s. c 42 s 34, 1945 c 140 s 15, & 1941 c 210 s 42;

      (52) RCW 56.16.060 and 1983 c 167 s 156, 1975 1st ex.s. c 25 s 1, 1971 ex.s. c 272 s 4, 1970 ex.s. c 56 s 81, 1969 ex.s. c 232 s 86, 1959 c 103 s 8, & 1941 c 210 s 19;

      (53) RCW 56.16.065 and 1975 1st ex.s. c 25 s 4;

      (54) RCW 56.16.070 and 1959 c 103 s 9 & 1941 c 210 s 20;

      (55) RCW 56.16.080 and 1983 c 167 s 157, 1975 1st ex.s. c 25 s 2, 1970 ex.s. c 56 s 82, & 1941 c 210 s 21;

      (56) RCW 56.16.085 and 1959 c 103 s 10;

      (57) RCW 56.16.090 and 1991 c 347 s 19, 1974 ex.s. c 58 s 3, 1959 c 103 s 11, & 1941 c 210 s 22;

      (58) RCW 56.16.100 and 1977 ex.s. c 300 s 6, 1971 ex.s. c 272 s 5, 1953 c 250 s 14, & 1941 c 210 s 23;

      (59) RCW 56.16.110 and 1977 ex.s. c 300 s 7, 1971 ex.s. c 272 s 6, 1953 c 250 s 15, & 1941 c 210 s 24;

      (60) RCW 56.16.115 and 1984 c 186 s 50, 1977 ex.s. c 300 s 8, 1973 1st ex.s. c 195 s 66, 1959 c 103 s 12, & 1953 c 250 s 16;

      (61) RCW 56.16.130 and 1983 c 167 s 158 & 1941 c 210 s 45;

      (62) RCW 56.16.135 and 1988 c 162 s 10 & 1983 c 57 s 2;

      (63) RCW 56.16.140 and 1983 c 57 s 1, 1971 ex.s. c 272 s 7, 1959 c 103 s 13, & 1941 c 210 s 46;

      (64) RCW 56.16.150 and 1959 c 103 s 14;

      (65) RCW 56.16.160 and 1986 c 294 s 12, 1983 c 66 s 21, 1981 c 24 s 3, 1973 1st ex.s. c 140 s 2, & 1959 c 103 s 15;

      (66) RCW 56.16.165 and 1981 c 24 s 1;

      (67) RCW 56.16.170 and 1959 c 103 s 16;

      (68) RCW 56.20.010 and 1987 c 169 s 1, 1971 ex.s. c 272 s 8, & 1941 c 210 s 26;

      (69) RCW 56.20.015 and 1983 c 167 s 159, 1981 c 45 s 5, 1980 c 12 s 1, 1977 ex.s. c 300 s 9, & 1974 ex.s. c 58 s 4;

      (70) RCW 56.20.020 and 1986 c 256 s 1, 1977 ex.s. c 300 s 10, 1974 ex.s. c 58 s 5, 1965 ex.s. c 40 s 1, 1953 c 250 s 17, & 1941 c 210 s 27;

      (71) RCW 56.20.032 and 1989 c 243 s 10;

      (72) RCW 56.20.033 and 1987 c 315 s 5;

      (73) RCW 56.20.040 and 1953 c 250 s 19 & 1941 c 210 s 29;

      (74) RCW 56.20.050 and 1941 c 210 s 30;

      (75) RCW 56.20.060 and 1941 c 210 s 31;

      (76) RCW 56.20.070 and 1971 ex.s. c 272 s 10, 1969 c 126 s 1, & 1941 c 210 s 33;

      (77) RCW 56.20.080 and 1991 c 190 s 4, 1971 ex.s. c 272 s 11, 1971 c 81 s 125, 1965 ex.s. c 40 s 2, & 1941 c 210 s 32;

      (78) RCW 56.20.090 and 1953 c 250 s 20;

      (79) RCW 56.20.120 and 1987 c 449 s 7;

      (80) RCW 56.22.010 and 1989 c 389 s 4;

      (81) RCW 56.22.020 and 1989 c 389 s 5;

      (82) RCW 56.22.030 and 1989 c 389 s 6;

      (83) RCW 56.22.040 and 1989 c 389 s 7;

      (84) RCW 56.22.050 and 1989 c 389 s 8;

      (85) RCW 56.24.001 and 1989 c 84 s 52;

      (86) RCW 56.24.070 and 1990 c 259 s 25, 1989 c 308 s 3, 1988 c 162 s 13, 1985 c 469 s 56, 1982 1st ex.s. c 17 s 3, & 1967 ex.s. c 11 s 1;

      (87) RCW 56.24.080 and 1985 c 469 s 57 & 1967 ex.s. c 11 s 2;

      (88) RCW 56.24.090 and 1967 ex.s. c 11 s 3;

      (89) RCW 56.24.100 and 1967 ex.s. c 11 s 4;

      (90) RCW 56.24.110 and 1967 ex.s. c 11 s 5;

      (91) RCW 56.24.120 and 1985 c 141 s 4 & 1967 ex.s. c 11 s 6;

      (92) RCW 56.24.130 and 1967 ex.s. c 11 s 7;

      (93) RCW 56.24.140 and 1967 ex.s. c 11 s 8;

      (94) RCW 56.24.150 and 1967 ex.s. c 11 s 9;

      (95) RCW 56.24.180 and 1982 c 146 s 1;

      (96) RCW 56.24.190 and 1982 c 146 s 2;

      (97) RCW 56.24.200 and 1990 c 259 s 26 & 1982 c 146 s 3;

      (98) RCW 56.24.205 and 1995 c 279 s 1 & 1987 c 449 s 8;

      (99) RCW 56.24.210 and 1986 c 258 s 1;

      (100) RCW 56.24.900 and 1967 ex.s. c 11 s 11;

      (101) RCW 56.28.001 and 1989 c 84 s 53;

      (102) RCW 56.28.010 and 1953 c 250 s 27;

      (103) RCW 56.28.020 and 1985 c 153 s 2;

      (104) RCW 56.32.001 and 1989 c 84 s 54;

      (105) RCW 56.32.010 and 1989 c 308 s 9, 1975 1st ex.s. c 86 s 1, & 1967 c 197 s 2;

      (106) RCW 56.32.020 and 1975 1st ex.s. c 86 s 2 & 1967 c 197 s 3;

      (107) RCW 56.32.030 and 1975 1st ex.s. c 86 s 3 & 1967 c 197 s 4;

      (108) RCW 56.32.040 and 1975 1st ex.s. c 86 s 4 & 1967 c 197 s 5;

      (109) RCW 56.32.050 and 1975 1st ex.s. c 86 s 5 & 1967 c 197 s 6;

      (110) RCW 56.32.060 and 1967 c 197 s 7;

      (111) RCW 56.32.070 and 1985 c 141 s 5 & 1967 c 197 s 8;

      (112) RCW 56.32.080 and 1989 c 308 s 10, 1975 1st ex.s. c 86 s 6, & 1967 c 197 s 9;

      (113) RCW 56.32.090 and 1967 c 197 s 10;

      (114) RCW 56.32.100 and 1975 1st ex.s. c 86 s 7 & 1967 c 197 s 11;

      (115) RCW 56.32.110 and 1994 c 289 s 1, 1975 1st ex.s. c 86 s 8, & 1967 c 197 s 12;

      (116) RCW 56.32.115 and 1975 1st ex.s. c 86 s 9;

      (117) RCW 56.32.120 and 1967 c 197 s 13;

      (118) RCW 56.32.160 and 1987 c 449 s 9;

      (119) RCW 56.36.001 and 1989 c 84 s 55;

      (120) RCW 56.36.010 and 1982 1st ex.s. c 17 s 4 & 1969 ex.s. c 148 s 1;

      (121) RCW 56.36.020 and 1969 ex.s. c 148 s 2;

      (122) RCW 56.36.030 and 1971 ex.s. c 146 s 7 & 1969 ex.s. c 148 s 3;

      (123) RCW 56.36.040 and 1982 c 104 s 1, 1981 c 45 s 6, & 1969 ex.s. c 148 s 4;

      (124) RCW 56.36.045 and 1988 c 162 s 3;

      (125) RCW 56.36.050 and 1969 ex.s. c 148 s 5;

      (126) RCW 56.36.060 and 1981 c 45 s 7 & 1969 ex.s. c 148 s 6;

      (127) RCW 56.40.010 and 1995 c 399 s 147 & 1993 c 45 s 1;

      (128) RCW 56.40.020 and 1995 c 399 s 148 & 1993 c 45 s 2; and

      (129) RCW 56.40.030 and 1993 c 45 s 3.

      NEW SECTION. Sec. 1703. The following acts or parts of acts are each repealed:

      (1) RCW 57.08.010 and 1994 c 81 s 81 & 1991 c 82 s 4;

      (2) RCW 57.08.045 and 1981 c 45 s 10, 1959 c 108 s 4, & 1953 c 251 s 3;

      (3) RCW 57.08.080 and 1982 1st ex.s. c 17 s 12 & 1959 c 108 s 2;

      (4) RCW 57.08.090 and 1982 1st ex.s. c 17 s 13, 1977 ex.s. c 299 s 1, & 1959 c 108 s 3;

      (5) RCW 57.08.130 and 1967 ex.s. c 135 s 2;

      (6) RCW 57.12.045 and 1987 c 449 s 13;

      (7) RCW 57.20.100 and 1984 c 230 s 84, 1983 c 3 s 163, 1973 1st ex.s. c 195 s 73, 1951 2nd ex.s. c 25 s 4, 1951 c 62 s 1, & 1929 c 114 s 18;

      (8) RCW 57.40.100 and 1982 1st ex.s. c 17 s 34 & 1971 ex.s. c 146 s 1;

      (9) RCW 57.40.110 and 1971 ex.s. c 146 s 2;

      (10) RCW 57.40.120 and 1971 ex.s. c 146 s 3;

      (11) RCW 57.40.130 and 1982 c 104 s 3, 1981 c 45 s 12, & 1971 ex.s. c 146 s 4;

      (12) RCW 57.40.140 and 1971 ex.s. c 146 s 5; and

      (13) RCW 57.40.150 and 1981 c 45 s 13 & 1971 ex.s. c 146 s 6.

      NEW SECTION. Sec. 1704. This act shall take effect July 1, 1997."

      On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "amending RCW 57.02.010, 56.02.110, 57.02.030, 57.02.040, 56.02.070, 56.02.100, 57.02.050, 57.04.001, 57.04.020, 57.04.030, 57.04.050, 57.04.060, 57.04.065, 57.04.070, 56.04.080, 57.04.100, 57.04.110, 56.04.120, 56.04.130, 57.08.011, 57.08.014, 57.08.015, 57.08.016, 57.08.030, 57.08.040, 56.08.060, 57.08.047, 57.08.050, 57.08.060, 57.08.065, 56.08.012, 57.08.100, 57.08.105, 57.08.110, 57.08.120, 57.08.140, 57.08.017, 57.08.180, 57.08.150, 57.08.160, 57.08.170, 57.12.010, 57.12.015, 57.12.030, 57.12.039, 57.12.020, 57.16.010, 56.08.030, 57.16.140, 57.16.050, 57.16.060, 57.16.073, 57.16.065, 56.20.030, 57.16.070, 57.16.080, 57.16.100, 57.16.090, 57.16.110, 57.16.150, 57.16.020, 57.20.015, 57.16.030, 57.16.035, 57.16.040, 57.20.020, 57.20.023, 57.20.025, 57.20.027, 57.20.030, 57.20.080, 57.20.090, 57.20.110, 57.20.120, 57.20.130, 57.20.135, 57.20.140, 57.20.150, 57.20.160, 57.20.165, 57.20.170, 57.22.010, 57.22.020, 57.22.030, 57.22.040, 57.22.050, 57.24.001, 57.24.010, 57.24.020, 57.24.040, 57.24.050, 57.24.070, 57.24.090, 57.24.170, 57.24.180, 57.24.190, 57.24.200, 57.24.210, 57.24.220, 57.28.001, 57.28.010, 57.28.020, 57.28.030, 57.28.035, 57.28.040, 57.28.050, 57.28.060, 57.28.070, 57.28.080, 57.28.090, 57.28.100, 57.28.110, 57.32.001, 57.32.010, 57.32.020, 57.32.021, 57.32.022, 57.32.023, 57.32.024, 57.32.130, 57.32.160, 57.36.001, 57.36.010, 57.36.020, 57.36.030, 57.36.040, 57.40.135, 57.36.050, 57.42.010, 57.42.020, 57.42.030, 57.46.010, 57.46.020, 57.46.030, 57.90.001, 57.90.010, 57.90.020, 57.90.030, 57.90.040, 57.90.050, 57.90.100, 35.13.900, 35.58.570, 35.97.050, 35A.14.901, 35A.56.010, 35A.70.010, 36.29.160, 36.93.090, 36.94.420, 41.04.190, 43.99F.020, 82.02.020, 84.09.030, 84.38.020, 84.52.052, 90.03.510, and 90.03.525; adding new sections to chapter 57.02 RCW; adding new sections to chapter 57.08 RCW; adding a new section to Title 57 RCW; adding new sections to chapter 57.04 RCW; adding new sections to chapter 57.06 RCW; adding new sections to chapter 57.16 RCW; adding new sections to chapter 57.20 RCW; adding a new section to chapter 57.36 RCW; creating a new section; recodifying RCW 56.02.070, 56.02.100, 56.02.110, 56.04.080, 56.04.120, 56.04.130, 56.02.030, 56.02.080, 56.36.070, 56.08.060, 56.08.012, 56.08.170, 56.08.030, 56.20.030, 57.16.020, 57.16.030, 57.16.035, 57.16.040, and 57.40.135; repealing RCW 56.02.010, 56.02.040, 56.02.050, 56.02.055, 56.02.060, 56.02.120, 56.04.001, 56.04.020, 56.04.030, 56.04.040, 56.04.050, 56.04.060, 56.04.065, 56.04.070, 56.04.090, 56.08.010, 56.08.013, 56.08.014, 56.08.015, 56.08.020, 56.08.040, 56.08.050, 56.08.065, 56.08.070, 56.08.075, 56.08.080, 56.08.090, 56.08.092, 56.08.100, 56.08.105, 56.08.110, 56.08.120, 56.08.130, 56.08.140, 56.08.150, 56.08.160, 56.08.180, 56.08.190, 56.08.200, 56.12.010, 56.12.015, 56.12.020, 56.12.030, 56.12.040, 56.12.050, 56.16.010, 56.16.020, 56.16.030, 56.16.035, 56.16.040, 56.16.050, 56.16.060, 56.16.065, 56.16.070, 56.16.080, 56.16.085, 56.16.090, 56.16.100, 56.16.110, 56.16.115, 56.16.130, 56.16.135, 56.16.140, 56.16.150, 56.16.160, 56.16.165, 56.16.170, 56.20.010, 56.20.015, 56.20.020, 56.20.032, 56.20.033, 56.20.040, 56.20.050, 56.20.060, 56.20.070, 56.20.080, 56.20.090, 56.20.120, 56.22.010, 56.22.020, 56.22.030, 56.22.040, 56.22.050, 56.24.001, 56.24.070, 56.24.080, 56.24.090, 56.24.100, 56.24.110, 56.24.120, 56.24.130, 56.24.140, 56.24.150, 56.24.180, 56.24.190, 56.24.200, 56.24.205, 56.24.210, 56.24.900, 56.28.001, 56.28.010, 56.28.020, 56.32.001, 56.32.010, 56.32.020, 56.32.030, 56.32.040, 56.32.050, 56.32.060, 56.32.070, 56.32.080, 56.32.090, 56.32.100, 56.32.110, 56.32.115, 56.32.120, 56.32.160, 56.36.001, 56.36.010, 56.36.020, 56.36.030, 56.36.040, 56.36.045, 56.36.050, 56.36.060, 56.40.010, 56.40.020, 56.40.030, 57.08.010, 57.08.045, 57.08.080, 57.08.090, 57.08.130, 57.12.045, 57.20.100, 57.40.100, 57.40.110, 57.40.120, 57.40.130, 57.40.140, and 57.40.150; and providing an effective date.", 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. 6091.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6091, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6091, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

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

      Absent: Senator Franklin - 1.

      Excused: Senator Rinehart - 1.

      SUBSTITUTE SENATE BILL NO. 6091, 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

February 27, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6126 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 84.56.020 and 1991 c 245 s 16 and 1991 c 52 s 1 are each reenacted and amended to read as follows:

      (1) The county treasurer shall be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county. All taxes upon real and personal property made payable by the provisions of this title shall be due and payable to the treasurer on or before the thirtieth day of April and, except as provided in this section, shall be delinquent after that date((: PROVIDED, That)).

      (2) Each tax statement shall include a notice that checks for payment of taxes may be made payable to "Treasurer of . . . . . . County" or other appropriate office, but tax statements shall not include any suggestion that checks may be made payable to the name of the individual holding the office of treasurer nor any other individual((: PROVIDED FURTHER, That)).

      (3) When the total amount of tax or special assessments on personal property or on any lot, block or tract of real property payable by one person is ((thirty)) fifty dollars or more, and if one-half of such tax be paid on or before the thirtieth day of April, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date((: PROVIDED FURTHER, That)).

      (4) When the total amount of tax or special assessments on any lot, block or tract of real property or on any mobile home payable by one person is ((thirty)) fifty dollars or more, and if one-half of such tax be paid after the thirtieth day of April but before the thirty-first day of October, together with the applicable interest and penalty on the full amount of ((such)) tax payable for that year, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date.

      (((2))) (5) Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis on the full year amount of tax unpaid from the date of delinquency until paid. Interest shall be calculated at the rate in effect at the time of payment of the tax, regardless of when the taxes were first delinquent. In addition, delinquent taxes under this section are subject to penalties as follows:

      (a) A penalty of three percent of the full year amount of tax unpaid shall be assessed on the ((amount of)) tax delinquent on June 1st of the year in which the tax is due.

      (b) An additional penalty of eight percent shall be assessed on the ((total)) amount of tax delinquent on December 1st of the year in which the tax is due.

      (((3))) (6) Subsection (((2))) (5) of this section notwithstanding, no interest or penalties may be assessed for the period April 30, ((1991)) 1996, through December 31, ((1991)) 1996, on delinquent ((1991)) taxes imposed in 1995 for collection in 1996 which are imposed on the personal residences owned by military personnel who participated in the situation known as (("Operation Desert Shield," "Operation Desert Storm," or any following operation from August 2, 1990, to a date specified by an agency of the federal government as the end of such operations)) "Joint Endeavor."

      (((4))) (7) For purposes of this chapter, "interest" means both interest and penalties.

      (((5))) (8) All collections of interest on delinquent taxes shall be credited to the county current expense fund; but the cost of foreclosure and sale of real property, and the fees and costs of distraint and sale of personal property, for delinquent taxes, shall, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and shall be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint and sale for delinquent taxes without regard to budget limitations.

      Sec. 2. RCW 84.56.340 and 1994 c 301 s 53 are each amended to read as follows:

      Any person desiring to pay taxes upon any part or parts of real property heretofore or hereafter assessed as one parcel, or tract, or upon such person's undivided fractional interest in such a property, may do so by applying to the county assessor, who must carefully investigate and ascertain the relative or proportionate value said part or part interest bears to the whole tract assessed, on which basis the assessment must be divided, and the assessor shall forthwith certify such proportionate value to the county treasurer: PROVIDED, That excepting when property is being acquired for public use, or where a person or financial institution desires to pay the taxes and any penalties and interest on a mobile home upon which they have a lien by mortgage or otherwise, no segregation of property for tax purposes shall be made unless all current year and delinquent taxes and assessments on the entire tract have been paid in full. The county assessor shall duly certify the proportionate value to the county treasurer. The county treasurer, upon receipt of certification, shall duly accept payment and issue receipt on the apportionment certified by the county assessor. In cases where protest is filed to said division appeal shall be made to the county legislative authority at its next regular session for final division, and the county treasurer shall accept and receipt for said taxes as determined and ordered by the county legislative authority. Any person desiring to pay on an undivided interest in any real property may do so by paying to the county treasurer a sum equal to such proportion of the entire taxes charged on the entire tract as interest paid on bears to the whole.

      NEW SECTION. Sec. 3. A new section is added to chapter 36.29 RCW to read as follows:

      County treasurers are authorized to accept credit cards, charge cards, debit cards, federal wire, and automatic clearinghouse system transactions, or other electronic communication, for any payment of any kind including, but not limited to, taxes, fines, interest, penalties, special assessments, fees, rates, charges, or moneys due counties. A payer desiring to pay by a credit card, charge card, debit card, federal wire, automatic clearinghouse system, or other electronic communication shall bear the cost of processing the transaction in an amount determined by the treasurer. Such determination shall be based upon costs incurred by the treasurer including handling, collecting, discount, disbursing, and accounting for the transaction.

      NEW SECTION. Sec. 4. This act is effective for taxes levied for collection in 1997 and thereafter."

      On page 1, line 1 of the title, after "practices;" strike the remainder of the title and insert "amending RCW 84.56.340; reenacting and amending RCW 84.56.020; adding a new section to chapter 36.29 RCW; and creating a new section.", 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. 6126.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6126, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6126, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

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

      Voting nay: Senator Loveland - 1.

      Excused: Senator Rinehart - 1.

      SUBSTITUTE SENATE BILL NO. 6126, 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

February 28, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6129 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 48.43 RCW to read as follows:

      (1) For purposes of this section:

      (a) "Health carrier" includes disability insurers regulated under chapter 48.20 or 48.21 RCW, health care services contractors regulated under chapter 48.44 RCW, plans operating under the health care authority under chapter 41.05 RCW, the basic health plan operating under chapter 70.47 RCW, the state health insurance pool operating under chapter 48.41 RCW, insuring entities regulated under this chapter, and health maintenance organizations regulated under chapter 48.46 RCW.

      (b) "Intermediary" means a person duly authorized to negotiate and execute provider contracts with health carriers on behalf of mental health care practitioners.

      (c) Consistent with their lawful scopes of practice, "mental health care practitioners" includes only the following: Any generally recognized medical specialty of practitioners licensed under chapter 18.57 or 18.71 RCW who provide mental health services, advanced practice psychiatric nurses as authorized by the nursing care quality assurance commission under chapter 18.79 RCW, psychologists licensed under chapter 18.83 RCW, social workers, marriage and family therapists, and mental health counselors certified under chapter 18.19 RCW.

      (d) "Mental health services" means outpatient services.

      (2) Consistent with federal and state law and rule, no contract between a mental health care practitioner and an intermediary or between a mental health care practitioner and a health carrier that is written, amended, or renewed after the effective date of this section may contain a provision prohibiting a practitioner and an enrollee from agreeing to contract for services solely at the expense of the enrollee as follows:

      (a) On the exhaustion of the enrollee's mental health care coverage;

      (b) During an appeal or an adverse certification process;

      (c) When an enrollee's condition is excluded from coverage; or

      (d) For any other clinically appropriate reason at any time.

      (3) If a mental health care practitioner provides services to an enrollee during an appeal or adverse certification process, the practitioner must provide to the enrollee written notification that the enrollee is responsible for payment of these services, unless the health carrier elects to pay for services provided.

      (4) This section does not apply to a mental health care practitioner who is employed full time on the staff of a health carrier."

      On page 1, line 1 of the title, after "services;" strike the remainder of the title and insert "and adding a new section to chapter 48.43 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Fairley, the Senate concurred in the House amendments to Senate Bill No. 6129.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6129, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6129, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.

      Excused: Senator Rinehart - 1.

      SENATE BILL NO. 6129, 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

February 27, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6138 with the following amendment(s):

      On page 2, line 18, after "RCW." strike all material through "no" on line 21 and insert "((Unless an applicant demonstrates that he or she has completed a prostitution prevention and intervention program under RCW 43.63A.720 through 43.63A.740, 9.68A.105, and 9A.88.120,)) No", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Kohl, the Senate concurred in the House amendment to Senate Bill No. 6138.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6138, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6138, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.

      Excused: Senator Rinehart - 1.

      SENATE BILL NO. 6138, 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 Thibaudeau, Senator McAuliffe was excused.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6169 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 23B.19.020 and 1989 c 165 s 198 are each amended to read as follows:

      The definitions in this section apply throughout this chapter.

      (1) "Acquiring person" means a person or group of persons, other than the target corporation or a subsidiary of the target corporation, who beneficially owns ten percent or more of the outstanding voting shares of the target corporation. The term "acquiring person" does not include a person who (a) beneficially ((owns)) owned ten percent or more of the outstanding voting shares of the target corporation on March 23, 1988; (b) acquires its shares by gift, inheritance, or in a transaction in which no consideration is exchanged; ((or)) (c) exceeds the ten percent threshold as a result of action taken solely by the target corporation, such as redemption of shares, unless that person, by its own action, acquires additional shares of the target corporation; (d) beneficially was the owner of ten percent or more of the outstanding voting shares prior to the time the target corporation had a class of voting shares registered with the securities and exchange commission pursuant to section 12 or 15 of the exchange act; or (e) beneficially was the owner of ten percent or more of the outstanding voting shares prior to the time the target corporation amended its articles of incorporation to provide that the corporation shall be subject to the provisions of this chapter. An agent, bank, broker, nominee, or trustee for another person, if the other person is not an acquiring person, who acts in good faith and not for the purpose of circumventing this chapter, is not an acquiring person. For the purpose of determining whether a person is an acquiring person, the number of voting shares of the target corporation that are outstanding shall include shares beneficially owned by the person through application of subsection (4) of this section, but shall not include any other unissued voting shares of the target corporation which may be issuable pursuant to any agreement, arrangement, or understanding; or upon exercise of conversion rights, warrants, or options; or otherwise.

      (2) "Affiliate" means a person who directly or indirectly controls, or is controlled by, or is under common control with, a person.

      (3) "Announcement date," when used in reference to any significant business transaction, means the date of the first public announcement of the final, definitive proposal for such a significant business transaction.

      (4) "Associate" means (a) a domestic or foreign corporation or organization of which a person is an officer, director, member, or partner or in which a person performs a similar function; (b) a direct or indirect beneficial owner of ten percent or more of any class of equity securities of a person; (c) a trust or estate in which a person has a beneficial interest or as to which a person serves as trustee or in a similar fiduciary capacity; and (d) ((if having the same residence as a person, the person's relative, spouse, or spouse's relative)) the spouse or a parent or sibling of a person or a child, grandchild, sibling, parent, or spouse of any thereof, of a person or an individual having the same home as a person.

      (((4))) (5) "Beneficial ownership," when used with respect to any shares, means ownership by a person:

      (a) Who, individually or with or through any of its affiliates or associates, beneficially owns such shares, directly or indirectly; or

      (b) Who, individually or with or through any of its affiliates or associates, has (i) the right to acquire the shares, whether the right is exercisable immediately or only after the passage of time, pursuant to any agreement, arrangement, or understanding, whether or not in writing, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise. A person is not the beneficial owner of shares tendered pursuant to a tender or exchange offer made by the person or any of the person's affiliates or associates until the tendered shares are accepted for purchase or exchange; or (ii) the right to vote the shares pursuant to any agreement, arrangement, or understanding, whether or not in writing. A person is not the beneficial owner of any shares under (b)(ii) of this subsection if the agreement, arrangement, or understanding to vote the shares arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made in accordance with the applicable rules and regulations under the exchange act and is not then reportable on schedule 13D under the exchange act, or any comparable or successor report; or

      (c) Who has any agreement, arrangement, or understanding, whether or not in writing, for the purpose of acquiring, holding, voting, except voting pursuant to a revocable proxy or consent as described in (b)(ii) of this subsection, or disposing of the shares with any other person who beneficially owns, or whose affiliates or associates beneficially own, directly or indirectly, the shares.

      (((5))) (6) "Common shares" means any shares other than preferred shares.

      (7) "Consummation date," with respect to any significant business transaction, means the date of consummation of such a significant business transaction, or, in the case of a significant business transaction as to which a shareholder vote is taken, the later of the business day prior to the vote or twenty days prior to the date of consummation of such a significant business transaction.

      (8) "Control," "controlling," "controlled by," and "under common control with," means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise. A person's beneficial ownership of ten percent or more of a domestic or foreign corporation's outstanding voting shares shall create a rebuttable presumption that such person has control of such corporation. However, a person does not have control of a domestic or foreign corporation if the person holds voting shares, in good faith and not for the purpose of circumventing this chapter, as an agent, bank, broker, nominee, custodian, or trustee for one or more beneficial owners who do not individually or as a group have control of such corporation.

      (((6))) (9) "Domestic corporation" means an issuer of voting shares which is organized under chapter 23B.02 RCW or any predecessor provision.

      (10) "Exchange act" means the federal securities exchange act of 1934, as amended.

      (((7))) (11) "Market value," in the case of property other than cash or shares, means the fair market value of the property on the date in question as determined by the board of directors of the target corporation in good faith.

      (((8))) (12) "Person" means an individual, domestic or foreign corporation, partnership, trust, unincorporated association, or other entity; an affiliate or associate of any such person; or any two or more persons acting as a partnership, syndicate, or other group for the purpose of acquiring, holding, or dispersing of securities of a domestic or foreign corporation.

      (((9))) (13) "Preferred shares" means any class or series of shares of a target corporation which under the bylaws or articles of incorporation of such a corporation is entitled to receive payment of dividends prior to any payment of dividends on some other class or series of shares, or is entitled in the event of any voluntary liquidation, dissolution, or winding up of the target corporation to receive payment or distribution of a preferential amount before any payments or distributions are received by some other class or series of shares.

      (14) "Shares" means any:

      (a) Shares or similar security, any certificate of interest, any participation in any profit sharing agreement, any voting trust certificate, or any certificate of deposit for shares; and

      (b) Security convertible, with or without consideration, into shares, or any warrant, call, or other option or privilege of buying shares without being bound to do so, or any other security carrying any right to acquire, subscribe to, or purchase shares.

      (15) "Significant business transaction" means:

      (a) A merger, share exchange, or consolidation of a target corporation or a subsidiary of a target corporation with (i) an acquiring person, or (ii) any other domestic or foreign corporation which is, or after the merger, share exchange, or consolidation would be, an affiliate or associate of the acquiring person;

      (b) A sale, lease, exchange, mortgage, pledge, transfer, or other disposition or encumbrance, whether in one transaction or a series of transactions, to or with an acquiring person or an affiliate or associate of an acquiring person of assets of a target corporation or a subsidiary of a target corporation (i) having an aggregate market value equal to five percent or more of the aggregate market value of all the assets, determined on a consolidated basis, of the target corporation, (ii) having an aggregate market value equal to five percent or more of the aggregate market value of all the outstanding shares of the target corporation, or (iii) representing five percent or more of the earning power or net income, determined on a consolidated basis, of the target corporation;

      (c) The termination, while the corporation has an acquiring person and as a result of the acquiring person's acquisition of ten percent or more of the shares of the corporation, of five percent or more of the employees of the target corporation or its subsidiaries employed in this state, whether at one time or over the five-year period following the share acquisition ((date)) time. For the purposes of (c) of this subsection, a termination other than an employee's death or disability or bona fide voluntary retirement, transfer, resignation, termination for cause under applicable common law principles, or leave of absence shall be presumed to be a termination resulting from the acquiring person's acquisition of shares, which presumption ((may be rebutted by clear and convincing evidence)) is rebuttable. A bona fide voluntary transfer of employees between the target corporation and its subsidiaries or between its subsidiaries is not a termination for the purposes of (c) of this subsection;

      (d) The issuance, transfer, or redemption by a target corporation or a subsidiary of a target corporation, whether in one transaction or a series of transactions, of shares or of options, warrants, or rights to acquire shares of a target corporation or a subsidiary of a target corporation to or beneficially owned by an acquiring person or an affiliate or associate of an acquiring person except pursuant to the exercise of warrants or rights to purchase shares offered, or a dividend, distribution, or redemption paid or made pro rata to, all shareholders or holders of options, warrants, or rights to acquire shares of the target corporation, and except for involuntary redemptions permitted by the target corporation's charter or by the law of this state or the state of incorporation;

      (e) The ((adoption of a plan or proposal for the sale of assets,)) liquidation((,)) or dissolution of a target corporation proposed by, or pursuant to an agreement, arrangement, or understanding, whether or not in writing, with an acquiring person or an affiliate or associate of an acquiring person;

      (f) A reclassification of securities, including, without limitation, any ((stock)) shares split, ((stock)) shares dividend, or other distribution of ((stock)) shares in respect of stock, or any reverse ((stock)) shares split, or recapitalization of a target corporation, or a merger or consolidation of a target corporation with a subsidiary of the target corporation, or any other transaction, whether or not with or into or otherwise involving an acquiring person, proposed by, or pursuant to an agreement, arrangement, or understanding, whether or not in writing, with an acquiring person or an affiliate or associate of an acquiring person, that has the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of a class or series of voting shares or securities convertible into voting shares of a target corporation or a subsidiary of the target corporation that is directly or indirectly owned by an acquiring person or an affiliate or associate of an acquiring person, except as a result of immaterial changes due to fractional share adjustments; or

      (g) A receipt by an acquiring person or an affiliate or associate of an acquiring person of the benefit, directly or indirectly, except proportionately as a shareholder of a target corporation, of loans, advances, guarantees, pledges, or other financial assistance or tax credits or other tax advantages provided by or through a target corporation((; or

      (h) An agreement, contract, or other arrangement providing for any of the transactions in this subsection)).

      (((10))) (16)"Share acquisition ((date)) time" means the ((date on)) time at which a person first becomes an acquiring person of a target corporation.

      (((11))) (17) "Subsidiary" means a domestic or foreign corporation that has a majority of its outstanding voting shares owned, directly or indirectly, by another domestic or foreign corporation.

      (((12))) (18) "Tangible assets" means tangible real and personal property of all kinds. It shall also include leasehold interests in tangible real and personal property.

      (((13))) (19) "Target corporation" means:

      (a) Every domestic corporation ((organized under chapter 23B.02 RCW or any predecessor provision if, as of the share acquisition date, the corporation's principal executive office is located in the state and either a majority of the corporation's employees, together with those of its subsidiaries, are residents of the state or the corporation, together with its subsidiaries, employs more than one thousand residents of the state)), if:

      (i) The corporation has a class of voting shares registered with the securities and exchange commission pursuant to section 12 or 15 of the exchange act; or

      (ii) The corporation's articles of incorporation have been amended to provide that such a corporation shall be subject to the provisions of this chapter, if the corporation did not have a class of voting shares registered with the securities and exchange commission pursuant to section 12 or 15 of the exchange act on the effective date of that amendment; and

      (b) Every foreign corporation required to have a certificate of authority to transact business in this state pursuant to chapter 23B.15 RCW, if((, as of the share acquisition date)):

      (i) The corporation has a class of voting shares registered with the securities and exchange commission pursuant to section 12 or 15 of the exchange act;

      (ii) The corporation's principal executive office is located in the state;

      (((ii))) (iii) The corporation has: (A) More than ten percent of its shareholders of record resident in the state; or (B) more than ten percent of its shares owned of record by state residents; or (C) one thousand or more shareholders of record resident in the state;

      (((iii))) (iv) A majority of the corporation's employees, together with those of its subsidiaries, are residents of the state or the corporation, together with its subsidiaries, employs more than one thousand residents of the state; and

      (((iv))) (v) A majority of the corporation's tangible assets, together with those of its subsidiaries, measured by market value, are located in the state or the corporation, together with its subsidiaries, has more than fifty million dollars' worth of tangible assets located in the state.

      For purposes of this subsection, the record date for determining the percentages and numbers of shareholders and shares shall be the last shareholder record date before the event requiring that the determination be made. A shareholder record date shall be determined pursuant to ((RCW 23B.07.070 for a domestic corporation and)) the comparable provision to RCW 23B.07.070 of the law of the state in which a foreign corporation is incorporated. If a shareholder record date has not been fixed by the board of directors within the preceding four months, the determination shall be made as of the end of the ((domestic or foreign)) corporation's most recent fiscal quarter.

      The residence of each shareholder is presumed to be the address appearing in the records of the ((domestic or foreign)) corporation. Shares held of record by brokers or nominees shall be disregarded for purposes of calculating the percentages and numbers specified in this subsection. Shares of a ((domestic or foreign)) corporation allocated to the account of an employee or former employee or beneficiaries of employees or former employees of a ((domestic or foreign)) corporation and held in a plan that is qualified under section 401(a) of the federal internal revenue code of 1986, as amended, and is a defined contribution plan within the meaning of section 414(i) of the code shall be deemed, for the purposes of this subsection, to be held of record by the employee to whose account such shares are allocated.

      A domestic or foreign corporation shall be deemed to be a target corporation if the domestic or foreign corporation's failure to satisfy the requirements of this subsection is caused by the action of, or is the result of a proposal by, an acquiring person or affiliate or associate of an acquiring person.

      (20) "Voting shares" means shares of a corporation entitled to vote generally in the election of directors.

      Sec. 2. RCW 23B.19.030 and 1989 c 165 s 199 are each amended to read as follows:

      This chapter does not apply to((:

      (1) A significant business transaction of a target corporation that does not have a class of voting stock registered with the securities and exchange commission pursuant to section 12 of the exchange act [15 U.S.C. Sec. 78L]; or

      (2))) a significant business transaction of a target corporation with an acquiring person of the target corporation which became an acquiring person inadvertently, if the acquiring person (((a))) (1) as soon as practicable, divests itself of a sufficient amount of the voting shares of the target corporation so that it no longer is the beneficial owner, directly or indirectly, of ten percent or more of the outstanding voting shares of the target corporation, and (((b))) (2) would not at any time within the five-year period preceding the announcement date ((of the first public announcement)) of the significant business transaction have been an acquiring person but for the inadvertent acquisition.

      Sec. 3. RCW 23B.19.040 and 1989 c 165 s 200 are each amended to read as follows:

      (1)(a) Notwithstanding ((any provision of this title)) anything to the contrary contained in this title, except under subsection (2) of this section and RCW 23B.19.030, a target corporation shall not engage in any significant business transaction for a period of five years following the acquiring person's share acquisition ((date)) time unless the significant business transaction or the purchase of shares made by the acquiring person ((on the share acquisition date)) is approved prior to the acquiring person's share acquisition ((date)) time by a majority of the members of the board of directors of the target corporation.

      (b) If a good faith proposal for a significant business transaction is made in writing to the board of directors of the target corporation prior to the significant business transaction or prior to the share acquisition ((date)) time, the board of directors shall respond in writing, within thirty days or such shorter period, if any, as may be required by the exchange act setting forth its reasons for its decision regarding the proposal. If a good faith proposal to purchase shares is made in writing to the board of directors of the target corporation, the board of directors, unless it responds affirmatively in writing within thirty days or a shorter period, if any, as may be required by the exchange act shall be deemed to have disapproved such share purchase.

      (2) Notwithstanding anything to the contrary contained in this title, except under subsection (1) of this section and RCW 23B.19.030, a target corporation shall not engage at any time in any significant business transaction with any acquiring person of such a corporation other than a significant business transaction that meets all of the following conditions:

      (a) The aggregate amount of the cash and the market value as of the consummation date of consideration other than cash to be received per share by holders of outstanding common shares of such a target corporation in a significant business transaction is at least equal to the higher of the following:

      (i) The highest per share price paid by such an acquiring person at a time when the person was the beneficial owner, directly or indirectly, of five percent or more of the outstanding voting shares of a target corporation, for any shares of common shares of the same class or series acquired by it: (A) Within the five-year period immediately prior to the announcement date with respect to a significant business transaction; or (B) within the five-year period immediately prior to, or in, the transaction in which the acquiring person became an acquiring person, whichever is higher plus, in either case, interest compounded annually from the earliest date on which the highest per share acquisition price was paid through the consummation date at the rate for one-year United States treasury obligations from time to time in effect; less the aggregate amount of any cash dividends paid, and the market value of any dividends paid other than in cash, per share of common shares since the earliest date, up to the amount of the interest; and

      (ii) The market value per share of common shares on the announcement date with respect to a significant business transaction or on the date of the acquiring person's share acquisition time, whichever is higher; plus interest compounded annually from such a date through the consummation date at the rate for one-year United States treasury obligations from time to time in effect; less the aggregate amount of any cash dividends paid, and the market value of any dividends paid other than in cash, per share of common shares since the date, up to the amount of the interest.

      (b) The aggregate amount of the cash and the market value as of the consummation date of consideration other than cash to be received per share by holders of outstanding shares of any class or series of shares, other than common shares, of the target corporation is at least equal to the highest of the following, whether or not the acquiring person has previously acquired any shares of such a class or series of shares:

      (i) The highest per share price paid by an acquiring person at a time when the person was the beneficial owner, directly or indirectly, of five percent or more of the outstanding voting shares of a resident domestic corporation, for any shares of the same class or series of shares acquired by it: (A) Within the five-year period immediately prior to the announcement date with respect to a significant business transaction; or (B) within the five-year period immediately prior to, or in, the transaction in which the acquiring person became an acquiring person, whichever is higher; plus, in either case, interest compounded annually from the earliest date on which the highest per share acquisition price was paid through the consummation date at the rate for one-year United States treasury obligations from time to time in effect; less the aggregate amount of any cash dividends paid, and the market value of any dividends paid other than in cash, per share of the same class or series of shares since the earliest date, up to the amount of the interest;

      (ii) The highest preferential amount per share to which the holders of shares of the same class or series of shares are entitled in the event of any voluntary liquidation, dissolution, or winding up of the target corporation, plus the aggregate amount of any dividends declared or due as to which the holders are entitled prior to payment of dividends on some other class or series of shares, unless the aggregate amount of the dividends is included in the preferential amount; and

      (iii) The market value per share of the same class or series of shares on the announcement date with respect to a significant business transaction or on the date of the acquiring person's share acquisition time, whichever is higher; plus interest compounded annually from such a date through the consummation date at the rate for one-year United States treasury obligations from time to time in effect; less the aggregate amount of any cash dividends paid and the market value of any dividends paid other than in cash, per share of the same class or series of shares since the date, up to the amount of the interest.

      (c) The consideration to be received by holders of a particular class or series of outstanding shares, including common shares, of the target corporation in a business combination is in cash or in the same form as the acquiring person has used to acquire the largest number of shares of the same class or series of shares previously acquired by the person, and the consideration shall be distributed promptly.

      (3) Subsection (2) of this section does not apply to a target corporation that on the effective date of this act had a provision in its articles of incorporation, adopted under RCW 23B.17.020(3)(d), expressly electing not to be covered under RCW 23B.17.020, which is repealed by section 6 of this act.

      (4) A ((target corporation that engages in a)) significant business transaction that ((violates)) is made in violation of subsection (1) or (2) of this section and that is not exempt under RCW ((23B.19.010 shall have its certificate of incorporation or certificate of authority to transact business in this state revoked under RCW 23B.14.200 or 23B.15.300 for domestic or foreign target corporations, respectively. In addition, such significant transaction shall be)) 23B.19.030 is void.

      Sec. 4. RCW 23B.01.400 and 1995 c 47 s 1 are each amended to read as follows:

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

      (1) "Articles of incorporation" include amended and restated articles of incorporation and articles of merger.

      (2) "Authorized shares" means the shares of all classes a domestic or foreign corporation is authorized to issue.

      (3) "Conspicuous" means so written that a reasonable person against whom the writing is to operate should have noticed it. For example, printing in italics or boldface or contrasting color, or typing in capitals or underlined, is conspicuous.

      (4) "Corporation" or "domestic corporation" means a corporation for profit, which is not a foreign corporation, incorporated under or subject to the provisions of this title.

      (5) "Deliver" includes (a) mailing and (b) for purposes of delivering a demand, consent, or waiver to the corporation or one of its officers, transmission by facsimile equipment.

      (6) "Distribution" means a direct or indirect transfer of money or other property, except its own shares, or incurrence of indebtedness by a corporation to or for the benefit of its shareholders in respect to any of its shares. A distribution may be in the form of a declaration or payment of a dividend; a distribution in partial or complete liquidation, or upon voluntary or involuntary dissolution; a purchase, redemption, or other acquisition of shares; a distribution of indebtedness; or otherwise.

      (7) "Effective date of notice" has the meaning provided in RCW 23B.01.410.

      (8) "Employee" includes an officer but not a director. A director may accept duties that make the director also an employee.

      (9) "Entity" includes a corporation and foreign corporation, not-for-profit corporation, profit and not-for-profit unincorporated association, business trust, estate, partnership, trust, and two or more persons having a joint or common economic interest, and the state, United States, and a foreign government.

      (10) "Foreign corporation" means a corporation for profit incorporated under a law other than the law of this state.

      (11) "Foreign limited partnership" means a partnership formed under laws other than of this state and having as partners one or more general partners and one or more limited partners.

      (12) "Governmental subdivision" includes authority, county, district, and municipality.

      (13) "Includes" denotes a partial definition.

      (14) "Individual" includes the estate of an incompetent or deceased individual.

      (15) "Limited partnership" or "domestic limited partnership" means a partnership formed by two or more persons under the laws of this state and having one or more general partners and one or more limited partners.

      (16) "Means" denotes an exhaustive definition.

      (17) "Notice" has the meaning provided in RCW 23B.01.410.

      (18) "Person" includes an individual and an entity.

      (19) "Principal office" means the office, in or out of this state, so designated in the annual report where the principal executive offices of a domestic or foreign corporation are located.

      (20) "Proceeding" includes civil suit and criminal, administrative, and investigatory action.

      (21) "Public company" means a corporation that has a class of shares registered with the federal securities and exchange commission pursuant to section 12 or 15 of the securities exchange act of 1934, or section 8 of the investment company act of 1940, or any successor statute((, and that has more than three hundred holders of record of its shares)).

      (22) "Record date" means the date established under chapter 23B.07 RCW on which a corporation determines the identity of its shareholders and their shareholdings for purposes of this title. The determinations shall be made as of the close of business on the record date unless another time for doing so is specified when the record date is fixed.

      (23) "Secretary" means the corporate officer to whom the board of directors has delegated responsibility under RCW 23B.08.400(3) for custody of the minutes of the meetings of the board of directors and of the shareholders and for authenticating records of the corporation.

      (24) "Shares" means the units into which the proprietary interests in a corporation are divided.

      (25) "Shareholder" means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation.

      (26) "State," when referring to a part of the United States, includes a state and commonwealth, and their agencies and governmental subdivisions, and a territory and insular possession, and their agencies and governmental subdivisions, of the United States.

      (27) "Subscriber" means a person who subscribes for shares in a corporation, whether before or after incorporation.

      (28) "United States" includes a district, authority, bureau, commission, department, and any other agency of the United States.

      (29) "Voting group" means all shares of one or more classes or series that under the articles of incorporation or this title are entitled to vote and be counted together collectively on a matter at a meeting of shareholders. All shares entitled by the articles of incorporation or this title to vote generally on the matter are for that purpose a single voting group.

      Sec. 5. RCW 23B.02.020 and 1994 c 256 s 27 are each amended to read as follows:

      (1) The articles of incorporation must set forth:

      (a) A corporate name for the corporation that satisfies the requirements of RCW 23B.04.010;

      (b) The number of shares the corporation is authorized to issue in accordance with RCW 23B.06.010 and 23B.06.020;

      (c) The street address of the corporation's initial registered office and the name of its initial registered agent at that office in accordance with RCW 23B.05.010; and

      (d) The name and address of each incorporator in accordance with RCW 23B.02.010.

      (2) The articles of incorporation or bylaws must either specify the number of directors or specify the process by which the number of directors will be fixed, unless the articles of incorporation dispense with a board of directors pursuant to RCW 23B.08.010.

      (3) Unless its articles of incorporation provide otherwise, a corporation is governed by the following provisions:

      (a) The board of directors may adopt bylaws to be effective only in an emergency as provided by RCW 23B.02.070;

      (b) A corporation has the purpose of engaging in any lawful business under RCW 23B.03.010;

      (c) A corporation has perpetual existence and succession in its corporate name under RCW 23B.03.020;

      (d) A corporation has the same powers as an individual to do all things necessary or convenient to carry out its business and affairs, including itemized powers under RCW 23B.03.020;

      (e) All shares are of one class and one series, have unlimited voting rights, and are entitled to receive the net assets of the corporation upon dissolution under RCW 23B.06.010 and 23B.06.020;

      (f) If more than one class of shares is authorized, all shares of a class must have preferences, limitations, and relative rights identical to those of other shares of the same class under RCW 23B.06.010;

      (g) If the board of directors is authorized to designate the number of shares in a series, the board may, after the issuance of shares in that series, reduce the number of authorized shares of that series under RCW 23B.06.020;

      (h) The board of directors must authorize any issuance of shares under RCW 23B.06.210;

      (i) Shares may be issued pro rata and without consideration to shareholders under RCW 23B.06.230;

      (j) Shares of one class or series may not be issued as a share dividend with respect to another class or series, unless there are no outstanding shares of the class or series to be issued, or a majority of votes entitled to be cast by such class or series approve as provided in RCW 23B.06.230;

      (k) A corporation may issue rights, options, or warrants for the purchase of shares of the corporation under RCW 23B.06.240;

      (l) A shareholder has, and may waive, a preemptive right to acquire the corporation's unissued shares as provided in RCW 23B.06.300;

      (m) Shares of a corporation acquired by it may be reissued under RCW 23B.06.310;

      (n) The board may authorize and the corporation may make distributions not prohibited by statute under RCW 23B.06.400;

      (o) The preferential rights upon dissolution of certain shareholders will be considered a liability for purposes of determining the validity of a distribution under RCW 23B.06.400;

      (p) Unless this title requires otherwise, the corporation is required to give notice only to shareholders entitled to vote at a meeting and the notice for an annual meeting need not include the purpose for which the meeting is called under RCW 23B.07.050;

      (q) A corporation that is a public company shall hold a special meeting of shareholders if the holders of at least ten percent of the votes entitled to be cast on any issue proposed to be considered at the meeting demand a meeting under RCW 23B.07.020;

      (r) Subject to statutory exceptions, each outstanding share, regardless of class, is entitled to one vote on each matter voted on at a shareholders' meeting under RCW 23B.07.210;

      (s) A majority of the votes entitled to be cast on a matter by a voting group constitutes a quorum, unless the title provides otherwise under RCW 23B.07.250 and 23B.07.270;

      (t) Action on a matter, other than election of directors, by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless this title requires a greater number of affirmative votes under RCW 23B.07.250;

      (u) All shares of one or more classes or series that are entitled to vote will be counted together collectively on any matter at a meeting of shareholders under RCW 23B.07.260;

      (v) Directors are elected by cumulative voting under RCW 23B.07.280;

      (w) Directors are elected by a plurality of votes cast by shares entitled to vote under RCW 23B.07.280;

      (x) A corporation must have a board of directors under RCW 23B.08.010;

      (y) All corporate powers must be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, its board of directors under RCW 23B.08.010;

      (z) The shareholders may remove one or more directors with or without cause under RCW 23B.08.080;

      (aa) A vacancy on the board of directors may be filled by the shareholders or the board of directors under RCW 23B.08.100;

      (bb) A corporation shall indemnify a director who was wholly successful in the defense of any proceeding to which the director was a party because the director is or was a director of the corporation against reasonable expenses incurred by the director in connection with the proceeding under RCW 23B.08.520;

      (cc) A director of a corporation who is a party to a proceeding may apply for indemnification of reasonable expenses incurred by the director in connection with the proceeding to the court conducting the proceeding or to another court of competent jurisdiction under RCW 23B.08.540;

      (dd) An officer of the corporation who is not a director is entitled to mandatory indemnification under RCW 23B.08.520, and is entitled to apply for court-ordered indemnification under RCW 23B.08.540, in each case to the same extent as a director under RCW 23B.08.570;

      (ee) The corporation may indemnify and advance expenses to an officer, employee, or agent of the corporation who is not a director to the same extent as to a director under RCW 23B.08.570;

      (ff) A corporation may indemnify and advance expenses to an officer, employee, or agent who is not a director to the extent, consistent with law, that may be provided by its articles of incorporation, bylaws, general or specific action of its board of directors, or contract under RCW 23B.08.570;

      (gg) A corporation's board of directors may adopt certain amendments to the corporation's articles of incorporation without shareholder action under RCW 23B.10.020;

      (hh) Unless the title or the board of directors require a greater vote or a vote by voting groups, an amendment to the corporation's articles of incorporation must be approved by each voting group entitled to vote on the proposed amendment by two-thirds, or, in the case of a public company, a majority, of all the votes entitled to be cast by that voting group under RCW 23B.10.030;

      (ii) A corporation's board of directors may amend or repeal the corporation's bylaws unless this title reserves this power exclusively to the shareholders in whole or in part, or unless the shareholders in amending or repealing a bylaw provide expressly that the board of directors may not amend or repeal that bylaw under RCW 23B.10.200;

      (jj) Unless this title or the board of directors require a greater vote or a vote by voting groups, a plan of merger or share exchange must be approved by each voting group entitled to vote on the merger or share exchange by two-thirds of all the votes entitled to be cast by that voting group under RCW 23B.11.030;

      (kk) Approval by the shareholders of the sale, lease, exchange, or other disposition of all, or substantially all, the corporation's property in the usual and regular course of business is not required under RCW 23B.12.010;

      (ll) Approval by the shareholders of the mortgage, pledge, dedication to the repayment of indebtedness, or other encumbrance of any or all of the corporation's property, whether or not in the usual and regular course of business, is not required under RCW 23B.12.010;

      (mm) Unless the board of directors requires a greater vote or a vote by voting groups, a sale, lease, exchange, or other disposition of all or substantially all of the corporation's property, other than in the usual and regular course of business, must be approved by each voting group entitled to vote on such transaction by two-thirds of all votes entitled to be cast by that voting group under RCW 23B.12.020; and

      (nn) Unless the board of directors requires a greater vote or a vote by voting groups, a proposal to dissolve must be approved by each voting group entitled to vote on the dissolution by two-thirds of all votes entitled to be cast by that voting group under RCW 23B.14.020((; and

      (oo) A corporation with fewer than three hundred holders of record of its shares does not require special approval of interested shareholder transactions under RCW 23B.17.020)).

      (4) Unless its articles of incorporation or its bylaws provide otherwise, a corporation is governed by the following provisions:

      (a) The board of directors may authorize the issuance of some or all of the shares of any or all of the corporation's classes or series without certificates under RCW 23B.06.260;

      (b) A corporation that is not a public company shall hold a special meeting of shareholders if the holders of at least ten percent of the votes entitled to be cast on any issue proposed to be considered at the meeting demand a meeting under RCW 23B.07.020;

      (c) A director need not be a resident of this state or a shareholder of the corporation under RCW 23B.08.020;

      (d) The board of directors may fix the compensation of directors under RCW 23B.08.110;

      (e) Members of the board of directors may participate in a meeting of the board by any means of similar communication by which all directors participating can hear each other during the meeting under RCW 23B.08.200;

      (f) Action permitted or required by this title to be taken at a board of directors' meeting may be taken without a meeting if action is taken by all members of the board under RCW 23B.08.210;

      (g) Regular meetings of the board of directors may be held without notice of the date, time, place, or purpose of the meeting under RCW 23B.08.220;

      (h) Special meetings of the board of directors must be preceded by at least two days' notice of the date, time, and place of the meeting, and the notice need not describe the purpose of the special meeting under RCW 23B.08.220;

      (i) A quorum of a board of directors consists of a majority of the number of directors under RCW 23B.08.240;

      (j) If a quorum is present when a vote is taken, the affirmative vote of a majority of directors present is the act of the board of directors under RCW 23B.08.240;

      (k) A board of directors may create one or more committees and appoint members of the board of directors to serve on them under RCW 23B.08.250; and

      (l) Unless approved by the shareholders, a corporation may indemnify, or make advances to, a director for reasonable expenses incurred in the defense of any proceeding to which the director was a party because of being a director only to the extent such action is consistent with RCW 23B.08.500 through 23B.08.580.

      (5) The articles of incorporation may contain the following provisions:

      (a) The names and addresses of the individuals who are to serve as initial directors;

      (b) The par value of any authorized shares or classes of shares;

      (c) Provisions not inconsistent with law related to the management of the business and the regulation of the affairs of the corporation;

      (d) Any provision that under this title is required or permitted to be set forth in the bylaws;

      (e) Provisions not inconsistent with law defining, limiting, and regulating the powers of the corporation, its board of directors, and shareholders;

      (f) If the articles of incorporation authorize dividing shares into classes, the election of all or a specified number of directors may be effected by the holders of one or more authorized classes of shares under RCW 23B.08.040;

      (g) The terms of directors may be staggered under RCW 23B.08.060;

      (h) Shares may be redeemable or convertible (i) at the option of the corporation, the shareholder, or another person, or upon the occurrence of a designated event; (ii) for cash, indebtedness, securities, or other property; or (iii) in a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic data or events under RCW 23B.06.010; and

      (i) A director's personal liability to the corporation or its shareholders for monetary damages for conduct as a director may be eliminated or limited under RCW 23B.08.320.

      (6) The articles of incorporation or the bylaws may contain the following provisions:

      (a) A restriction on the transfer or registration of transfer of the corporation's shares under RCW 23B.06.270;

      (b) Shareholders may participate in a meeting of shareholders by any means of communication by which all persons participating in the meeting can hear each other under RCW 23B.07.080;

      (c) A quorum of the board of directors may consist of as few as one-third of the number of directors under RCW 23B.08.240;

      (d) If the corporation is registered as an investment company under the investment company act of 1940, a provision limiting the requirement to hold an annual meeting of shareholders as provided in RCW 23B.07.010(2); and

      (e) If the corporation is registered as an investment company under the investment company act of 1940, a provision establishing terms of directors which terms may be longer than one year as provided in RCW 23B.05.050.

      (7) The articles of incorporation need not set forth any of the corporate powers enumerated in this title.

      NEW SECTION. Sec. 6. RCW 23B.17.020 and 1989 c 165 s 189 are each repealed."

      On page 1, line 2 of the title, after "act;" strike the remainder of the title and insert "amending RCW 23B.19.020, 23B.19.030, 23B.19.040, 23B.01.400, and 23B.02.020; and repealing RCW 23B.17.020.", 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. 6169.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6169, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6169, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.

      Excused: Senators McAuliffe and Rinehart - 2.

      SUBSTITUTE SENATE BILL NO. 6169, 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 Anderson, Senator Johnson was excused.


MESSAGE FROM THE HOUSE

February 28, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6189 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. In order to implement the constitutional guarantee of counsel and to ensure the effective and efficient delivery of the indigent appellate services funded by the state of Washington, an office of public defense is established as an independent agency of the judicial branch.

      NEW SECTION. Sec. 2. The supreme court shall appoint the director of the office of public defense from a list of three names submitted by the advisory committee created under section 4 of this act. Qualifications shall include admission to the practice of law in this state for at least five years, experience in the representation of persons accused of a crime, and proven managerial or supervisory experience. The director shall serve at the pleasure of the supreme court and receive a salary to be fixed by the advisory committee.

      NEW SECTION. Sec. 3. The director, under the supervision and direction of the advisory committee, shall:

      (1) Administer all criminal appellate indigent defense services;

      (2) Submit a biennial budget for all costs related to state appellate indigent defense;

      (3) Establish administrative procedures, standards, and guidelines for the program including a cost-efficient system that provides for recovery of costs;

      (4) Recommend criteria and standards for determining and verifying indigency. In recommending criteria for determining indigency, the director shall compile and review the indigency standards used by other state agencies and shall periodically submit the compilation and report to the legislature on the appropriateness and consistency of such standards;

      (5) Collect information regarding indigency cases funded by the state and report annually to the legislature and the supreme court;

      (6) Coordinate with the supreme court and the judges of each division of the court of appeals to determine how attorney services should be provided.

      The office of public defense shall not provide direct representation of clients.

      NEW SECTION. Sec. 4. (1) There is created an advisory committee consisting of the following members:

      (a) Three persons appointed by the chief justice of the supreme court, including the chair of the appellate indigent defense commission identified in subsection (3) of this section;

      (b) Two nonattorneys appointed by the governor;

      (c) Two senators, one from each of the two largest caucuses, appointed by the president of the senate; and two members of the house of representatives, one from each of the two largest caucuses, appointed by the speaker of the house of representatives;

      (d) One person appointed by the court of appeals executive committee;

      (e) One person appointed by the Washington state bar association.

      (2) During the term of his or her appointment, no appointee may: (a) Provide indigent defense services except on a pro bono basis; (b) serve as an appellate judge or an appellate court employee; or (c) serve as a prosecutor or prosecutor employee.

      (3) The initial advisory committee shall be comprised of the current members of the appellate indigent defense commission, as established by Supreme Court Order No. 25700-B, dated March 9, 1995, plus two additional legislator members appointed under subsection (1)(c) of this section. Members shall serve until the termination of their current terms, and may be reappointed. The two additional legislator members, who are not on the appellate indigent defense commission, shall each serve three-year terms. Members of the advisory committee shall receive no compensation for their services as members of the commission, but may be reimbursed for travel and other expenses in accordance with rules adopted by the office of financial management.

      NEW SECTION. Sec. 5. All employees of the office of public defense shall be exempt from state civil service under chapter 41.06 RCW.

      NEW SECTION. Sec. 6. (1) All powers, duties, and functions of the supreme court and the office of the administrator for the courts pertaining to appellate indigent defense are transferred to the office of public defense.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the supreme court or the office of the administrator for the courts pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the office of public defense. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the supreme court or the office of the administrator for the courts in carrying out the powers, functions, and duties transferred shall be made available to the office of public defense. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the office of public defense.

      (b) Any appropriations made to the supreme court or the office of the administrator for the courts for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the office of public defense.

      (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

      (3) All employees of the supreme court or the office of the administrator for the courts engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the office of public defense. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the office of public defense to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

      (4) All rules and all pending business before the supreme court or the office of the administrator for the courts pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the office of public defense. All existing contracts and obligations shall remain in full force and shall be performed by the office of public defense.

      (5) The transfer of the powers, duties, functions, and personnel of the supreme court or the office of the administrator for the courts shall not affect the validity of any act performed before the effective date of this section.

      (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

      (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

      NEW SECTION. Sec. 7. A new section is added to chapter 43.131 RCW to read as follows:

      The office of public defense and its powers and duties shall be terminated on June 30, 2000, as provided in section 8 of this act.

      NEW SECTION. Sec. 8. A new section is added to chapter 43.131 RCW to read as follows:

      The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2001:

      (1) RCW 2.--.--- and 1996 c -- s 1 (section 1 of this act);

      (2) RCW 2.--.--- and 1996 c -- s 2 (section 2 of this act);

      (3) RCW 2.--.--- and 1996 c -- s 3 (section 3 of this act);

      (4) RCW 2.--.--- and 1996 c -- s 4 (section 4 of this act); and

      (5) RCW 2.--.--- and 1996 c -- s 5 (section 5 of this act).

      NEW SECTION. Sec. 9. Sections 1 through 5 of this act shall constitute a new chapter in Title 2 RCW.", 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 Substitute Senate Bill No. 6189.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6189, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6189, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Kohl, Long, Loveland, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.

      Excused: Senators Johnson, McAuliffe and Rinehart - 3.

      SUBSTITUTE SENATE BILL NO. 6189, 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

February 26, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6214 with the following amendment(s):

      On page 1, line 15, after "similar" insert "flexible synthetic", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Rasmussen, the Senate concurred in the House amendment to Substitute Senate Bill No. 6214.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6214, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6214, 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, Goings, Hale, Hargrove, Heavey, Hochstatter, Kohl, Long, Loveland, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45.

      Absent: Senator Haugen - 1.

      Excused: Senators Johnson, McAuliffe and Rinehart - 3.

      SUBSTITUTE SENATE BILL NO. 6214, 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

February 28, 1996

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6266 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The purpose of this chapter is to provide alternative procedures for fixing boundary points or lines when they cannot be determined from the existing public record and landmarks or are otherwise in dispute. This chapter does not impair, modify, or supplant any other remedy available at law or equity.

      NEW SECTION. Sec. 2. As used in this chapter, "surveyor" means every person authorized to practice the profession of land surveying under the provisions of chapter 18.43 RCW.

      NEW SECTION. Sec. 3. Whenever a point or line determining the boundary between two or more parcels of real property cannot be identified from the existing public record, monuments, and landmarks, or is in dispute, the landowners affected by the determination of the point or line may resolve any dispute and fix the boundary point or line by one of the following procedures:

      (1) If all of the affected landowners agree to a description and marking of a point or line determining a boundary, they shall document the agreement in a written instrument, using appropriate legal descriptions and including a survey map, filed in accordance with chapter 58.09 RCW. The written instrument shall be signed and acknowledged by each party in the manner required for a conveyance of real property. The agreement is binding upon the parties, their successors, assigns, heirs and devisees and runs with the land. The agreement shall be recorded with the real estate records in the county or counties in which the affected parcels of real estate or any portion of them is located;

      (2) If all of the affected landowners cannot agree to a point or line determining the boundary between two or more parcels of real estate, any one of them may bring suit for determination as provided in RCW 58.04.020.

      NEW SECTION. Sec. 4. Any surveyor authorized by the court and the surveyor's employees may, without liability for trespass, enter upon any land or waters and remain there while performing the duties as required in sections 1 through 4 of this act. The persons named in this section may, without liability for trespass, investigate, construct, or place a monument or reference monuments for the position of any land boundary mark or general land office corner or mark and subdivisional corners thereof. Persons entering lands under the authority of sections 1 through 4 of this act must exercise due care not to damage property while on land or waters performing their duties, and are liable for property damage, if any, caused by their negligence or willful misconduct. Where practical, the persons named in this section must announce and identify themselves and their intention before entering upon private property in the performance of their duties.

      NEW SECTION. Sec. 5. A person who intentionally disturbs a survey monument placed by a surveyor in the performance of the surveyor's duties is guilty of a gross misdemeanor and is liable for the cost of the reestablishment.

      NEW SECTION. Sec. 6. RCW 58.04.010 and 1895 c 77 s 9 are each repealed.

      NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 58.04 RCW.

      Sec. 8. RCW 58.04.020 and 1886 p 104 s 1 are each amended to read as follows:

      (1) Whenever the boundaries of lands between two or more adjoining proprietors ((shall)) have been lost, or by time, accident or any other cause, ((shall)) have become obscure, or uncertain, and the adjoining proprietors cannot agree to establish the same, one or more of ((said)) the adjoining proprietors may bring ((his)) a civil action in equity, in the superior court, for the county in which such lands, or part of them are situated, and ((such)) that superior court, as a court of equity, may upon ((such)) the complaint, order such lost or uncertain boundaries to be erected and established and properly marked.

      (2) The superior court may order the parties to utilize mediation before the civil action is allowed to proceed."

      On page 1, line 2 of the title, after "boundaries;" strike the remainder of the title and insert "amending RCW 58.04.020; adding new sections to chapter 58.04 RCW; repealing RCW 58.04.010; 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 Engrossed Substitute Senate Bill No. 6266.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6266, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6266, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.

      Excused: Senators Johnson and Rinehart - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6266, 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

February 29, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6289 with the following amendment(s):

      On page 5, line 5, after "RCW 48.05.340" insert"; however, a foreign or alien society may continue to issue new policies or certificates to members of the society who have an existing policy or certificate in force with the society on June 30, 1997", 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. 6289.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6289, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6289, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.

      Excused: Senators Johnson and Rinehart - 2.

      SENATE BILL NO. 6289, 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

February 28, 1996

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 6312 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 28B.15.628 and 1994 c 208 s 2 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. It is the intent of the legislature to honor Persian Gulf combat zone veterans for the public service they have provided to their country. It is the further intent of the legislature that, for eligible Persian Gulf combat zone veterans, institutions of higher education waive tuition and fee increases that have occurred after the 1990-91 academic year.

      (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 Persian Gulf combat zone from all or a portion of increases in tuition and fees that occur after the 1990-91 academic year, if((:

      (a))) the veteran could have qualified as a Washington resident student under RCW 28B.15.012(2), had he or she been enrolled as a student on August 1, 1990((;

      (b) The veteran is enrolled for seven or more quarter credits per academic term or their equivalent, except summer term and not including community service courses; and

      (c) The veteran's adjusted gross family income as most recently reported to the internal revenue service does not exceed Washington state's median family income as established by the federal bureau of the census)).

      (3) For the purposes of this section, "a veteran of the Persian Gulf combat zone" means a person who ((during any portion of calendar year 1991, served in active federal service as a member of the armed military or naval forces of the United States in a combat zone as designated by the president of the United States by executive order)) served on active duty in the armed forces of the United States during any portion of the 1991 calendar year in the Persian Gulf combat zone as designated by executive order of the president of the United States.

      (4) This section expires June 30, 1999.

      Sec. 2. 1994 c 208 s 4 (uncodified) is amended to read as follows:

      Section((s)) 13 ((and 14)) of this act shall expire on June 30, 1997."

      On page 1, line 1 of the title, after "veterans;" strike the remainder of the title and insert "amending RCW 28B.15.628; amending 1994 c 208 s 4 (uncodified); and providing an expiration date.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Bauer, the Senate concurred in the House amendments to Senate Bill No. 6312.


MOTION


      On motion of Senator Thibaudeau, Senator Owen was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6312, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6312, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.

      Excused: Senators Owen and Rinehart - 2.

      SENATE BILL NO. 6312, 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

February 29, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6315 with the following amendment(s):

      On page 2, line 3, after "authorized to" insert "use the following non-exclusive options:", 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. 6315.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6315, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6315, 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, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Moyer, Newhouse, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.

      Absent: Senator McDonald - 1.

      Excused: Senators Owen and Rinehart - 2.

      SUBSTITUTE SENATE BILL NO. 6315, 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

February 26, 1996

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6379 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 28C.18.005 and 1991 c 238 s 1 are each amended to read as follows:

      The legislature finds that the state's system of work force training and education is inadequate for meeting the needs of the state's workers, employers, and economy. A growing shortage of skilled workers is already hurting the state's economy. There is a shortage of available workers and too often prospective employees lack the skills and training needed by employers. Moreover, with demographic changes in the state's population employers will need to employ a more culturally diverse work force in the future.

      The legislature further finds that the state's current work force training and education system is fragmented among numerous agencies, councils, boards, and committees, with inadequate overall coordination. No comprehensive strategic plan guides the different parts of the system. There is no single point of leadership and responsibility. There is insufficient guidance from employers and workers built into the system to ensure that the system is responsive to the needs of its customers. Adult work force education lacks a uniform system of governance, with an inefficient division in governance between community colleges and vocational technical institutes, and inadequate local authority. The parts of the system providing adult basic skills and literacy education are especially uncoordinated and lack sufficient visibility to adequately address the needs of the large number of adults in the state who are functionally illiterate. The work force training and education system's data and evaluation methods are inconsistent and unable to provide adequate information for determining how well the system is performing on a regular basis so that the system may be held accountable for the outcomes it produces. Much of the work force training and education system provides inadequate opportunities to meet the needs of people from culturally diverse backgrounds. Finally, our public and private educational institutions are not producing the number of people educated in vocational/technical skills needed by employers.

      The legislature recognizes that we must make certain that our public and private institutions of education place appropriate emphasis on the needs of employers and on the needs of the approximately eighty percent of our young people who enter the world of work without completing a four-year program of higher education. We must make our work force education and training system better coordinated, more efficient, more responsive to the needs of business and workers and local communities, more accountable for its performance, and more open to the needs of a culturally diverse population.

      Sec. 2. RCW 28C.18.010 and 1991 c 238 s 2 are each amended to read as follows:

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

      (1) "Board" means the work force training and education coordinating board.

      (2) "Director" means the director of the work force training and education coordinating board.

      (3) "Training system" means programs and courses of secondary vocational education, technical college programs and courses, community college vocational programs and courses, private career school and college programs and courses, employer-sponsored training, adult basic education programs and courses, programs and courses funded by the job training partnership act, programs and courses funded by the federal vocational act, programs and courses funded under the federal adult education act, publicly funded programs and courses for adult literacy education, and apprenticeships, and programs and courses offered by private and public nonprofit organizations that are representative of communities or significant segments of communities and provide job training or adult literacy services.

      (4) "Work force skills" means skills developed through applied learning that strengthen and reinforce an individual's academic knowledge, critical thinking, problem solving, and work ethic and, thereby, develop the employability, occupational skills, and management of home and work responsibilities necessary for economic independence.

      (5) "Vocational education" means organized educational programs offering a sequence of courses which are directly related to the preparation or retraining of individuals in paid or unpaid employment in current or emerging occupations requiring other than a baccalaureate or advanced degree. Such programs shall include competency-based applied learning which contributes to an individual's academic knowledge, higher-order reasoning, and problem-solving skills, work attitudes, general employability skills, and the occupational-specific skills necessary for economic independence as a productive and contributing member of society. Such term also includes applied technology education.

      (6) "Adult basic education" means instruction designed to achieve mastery of skills in reading, writing, oral communication, and computation at a level sufficient to allow the individual to function effectively as a parent, worker, and citizen in the United States, commensurate with that individual's actual ability level, and includes English as a second language and preparation and testing service for the general education development exam.

      Sec. 3. RCW 28C.18.030 and 1991 c 238 s 4 are each amended to read as follows:

      The purpose of the board is to provide planning, coordination, evaluation, monitoring, and policy analysis for the state training system as a whole, and advice to the governor and legislature concerning the state training system, in cooperation with ((the agencies which comprise)) the state training system((,)) and the higher education coordinating board.

      Sec. 4. RCW 28C.18.060 and 1993 c 280 s 17 are each amended to read as follows:

      The board, in cooperation with the operating agencies of the state training system and private career schools and colleges shall:

      (1) Concentrate its major efforts on planning, coordination evaluation, policy analysis, and recommending improvements to the state's training system.

      (2) Advocate for the state training system and for meeting the needs of employers and the work force for work force education and training.

      (3) Establish and maintain an inventory of the programs of the state training system, and related state programs, and perform a biennial assessment of the vocational education, training, and adult basic education and literacy needs of the state; identify ongoing and strategic education needs; and assess the extent to which employment, training, vocational and basic education, rehabilitation services, and public assistance services represent a consistent, integrated approach to meet such needs.

      (4) Develop and maintain a state comprehensive plan for work force training and education, including but not limited to, goals, objectives, and priorities for the state training system, and review the state training system for consistency with the state comprehensive plan. In developing the state comprehensive plan for work force training and education, the board shall use, but shall not be limited to: Economic, labor market, and populations trends reports in office of financial management forecasts; joint office of financial management and employment security department labor force, industry employment, and occupational forecasts; the results of scientifically based outcome, net-impact and cost-benefit evaluations; the needs of employers as evidenced in formal employer surveys and other employer input; and the needs of program participants and workers as evidenced in formal surveys and other input from program participants and the labor community.

      (5) In consultation with the higher education coordinating board, review and make recommendations to the office of financial management and the legislature on operating and capital facilities budget requests for operating agencies of the state training system for purposes of consistency with the state comprehensive plan for work force training and education.

      (6) Provide for coordination among the different operating agencies and components of the state training system at the state level and at the regional level.

      (7) Develop a consistent and reliable data base on vocational education enrollments, costs, program activities, and job placements from publicly funded vocational education programs in this state.

      (8) Establish standards for data collection and maintenance for the operating agencies of the state training system in a format that is accessible to use by the board. The board shall require a minimum of common core data to be collected by each operating agency of the state training system.

      The board shall develop requirements for minimum common core data in consultation with the office of financial management and the operating agencies of the training system.

      (9) Establish minimum standards for program evaluation for the operating agencies of the state training system, including, but not limited to, the use of common survey instruments and procedures for measuring perceptions of program participants and employers of program participants, and monitor such program evaluation.

      (10) Every two years administer scientifically based outcome evaluations of the state training system, including, but not limited to, surveys of program participants, surveys of employers of program participants, and matches with employment security department payroll and wage files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state training system.

      (11) In cooperation with the employment security department, provide for the improvement and maintenance of quality and utility in occupational information and forecasts for use in training system planning and evaluation. Improvements shall include, but not be limited to, development of state-based occupational change factors involving input by employers and employees, and delineation of skill and training requirements by education level associated with current and forecasted occupations.

      (12) Provide for the development of common course description formats, common reporting requirements, and common definitions for operating agencies of the training system.

      (13) Provide for effectiveness and efficiency reviews of the state training system.

      (14) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between institutions of the state training system, and encourage articulation agreements for programs enco