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NINETY-FIFTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Thursday, April 17, 1997

      The Senate was called to order at 8:30 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Hargrove, Patterson and Strannigan. On motion of Senator Franklin, Senators Hargrove and Patterson were excused.

      The Sergeant at Arms Color Guard, consisting of Pages Robert Bawell and Anna Bazzi, presented the Colors. Reverend Tammy Leiter, pastor of the Westminster Presbyterian Church of Olympia, offered the prayer.

MOTION

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

MOTION

      At 8:36 a.m., on motion of Senator Johnson, the Senate was declared to be at ease.

      The Senate was called to order at 9:36 a.m. by Vice President Pro Tempore Morton.

MESSAGE FROM THE HOUSE

April 16, 1997

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1017,

      SUBSTITUTE HOUSE BILL NO. 1024,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1064,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1419,

      HOUSE BILL NO. 1615,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1678,

      SUBSTITUTE HOUSE BILL NO. 1776,

      SUBSTITUTE HOUSE BILL NO. 1985,

      HOUSE BILL NO. 2163,

      HOUSE BILL NO. 2197, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1017,

      SUBSTITUTE HOUSE BILL NO. 1024,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1064,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1419,

      HOUSE BILL NO. 1615,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1678,

      SUBSTITUTE HOUSE BILL NO. 1776,

      SUBSTITUTE HOUSE BILL NO. 1985,

      HOUSE BILL NO. 2163,

      HOUSE BILL NO. 2197.

SECOND READING

      HOUSE JOINT MEMORIAL NO. 4005, by Representatives Mulliken, Chandler, Hankins, Sheahan, Skinner, Lisk, Delvin, Clements, Honeyford, Schoesler, Mastin, Grant, Mielke and McMorris

Returning land within the Hanford control zone to agricultural and wildlife uses.

      The joint memorial was read the second time. 

MOTION

      On motion of Senator Hochstatter, the rules were suspended, House Joint Memorial No. 4005 was advanced to third reading, the second reading considered the third and the joint memorial was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Joint Memorial No. 4005.

ROLL CALL

      The Secretary called the roll on the final passage of House Joint Memorial No. 4005 and the joint memorial passed the Senate by the following vote: Yeas, 31; Nays, 15; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Franklin, Hale, Haugen, Hochstatter, Horn, Johnson, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Stevens, Swecker, West, Winsley, Wood and Zarelli - 31.  Voting nay: Senators Brown, Fairley, Finkbeiner, Fraser, Goings, Heavey, Jacobsen, Kline, Kohl, McAuliffe, Prentice, Spanel, Swanson, Thibaudeau and Wojahn - 15.          Absent: Senator Strannigan - 1.             Excused: Senators Hargrove and Patterson - 2.      HOUSE JOINT MEMORIAL NO. 4005, having received the constitutional majority, was declared passed.

INTRODUCTION OF SPECIAL GUESTS

      The Vice President Pro Tempore welcomed and introduced the FFA State Executive Officers who were seated in the gallery.

WITHDRAWAL OF NOTICE TO RECONSIDER ENGROSSED SUBSTITUTE SENATE BILL NO. 5762

      On motion of Senator Franklin, and there being no objection, the notice for reconsideration was withdrawn to reconsider the vote by which Engrossed Substitute Senate Bill No. 5762 passed the Senate.

SECOND READING

      SENATE BILL NO. 5355, by Senators Benton, Brown, Swecker, Finkbeiner, Patterson, Rossi and Winsley

Extending the use tax exemption for donated property.

MOTIONS

      On motion of Senator West, Substitute Senate Bill No. 5355 was substituted for Senate Bill No. 5355 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator West, the rules were suspended, Substitute Senate Bill No. 5355 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

MOTION

      On motion of Senator Goings, Senator Swanson was excused.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5355.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5355 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.  Excused: Senators Hargrove, Patterson and Swanson - 3.     SUBSTITUTE SENATE BILL NO. 5355, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 2165, by Representatives K. Schmidt, Zellinsky, Fisher, Morris, Radcliff, Sehlin, Sheldon and Hatfield

Paying interest on retroactive raises for ferry workers

      The bill was read the second time.

MOTIONS

      On motion of Senator Prince, the following Committee on Transportation amendment was adopted:

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 47.64.120 and 1983 c 15 s 3 are each amended to read as follows:          (1) Ferry system management and ferry system employee organizations, through their collective bargaining representatives, shall meet at reasonable times, to negotiate in good faith with respect to wages, hours, working conditions, insurance, and health care benefits as limited by RCW 47.64.270, and other matters mutually agreed upon. Employer funded retirement benefits shall be provided under the public employees retirement system under chapter 41.40 RCW and shall not be included in the scope of collective bargaining.         (2) Upon ratification of bargaining agreements, ferry employees are entitled to an amount equivalent to the interest earned on retroactive compensation increases. For purposes of this section, the interest earned on retroactive compensation increases is the same monthly rate of interest that was earned on the amount of the compensation increases while held in the state treasury. The interest will be computed for each employee until the date the retroactive compensation is paid, and must be allocated in accordance with appropriation authority. The interest earned on retroactive compensation is not considered part of the ongoing compensation obligation of the state and is not compensation earnable for the purposes of chapter 41.40 RCW. Negotiations shall also include grievance procedures for resolving any questions arising under the agreement, which shall be embodied in a written agreement and signed by the parties."  On motion of Senator Prince, the following title amendment was adopted:

      On line 2 of the title, after "employees;" strike the remainder of the title and insert "and amending RCW 47.64.120."

MOTION

      On motion of Senator Prince, the rules were suspended, House Bill No. 2165, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 2165, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2165, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 1; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45.  Voting nay: Senator Sellar - 1.              Absent: Senator Kline - 1.     Excused: Senators Hargrove and Patterson - 2.      HOUSE BILL NO. 2165, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1202, by Representatives Quall, Dickerson, Poulsen, Smith, O'Brien, Costa, Ogden and Mason

Adopting the recommendations of the task force examining high school credit equivalencies.

      The bill was read the second time.

MOTION

      On motion of Senator Hochstatter, the rules were suspended, House Bill No. 1202, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1202.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1202 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Hargrove and Patterson - 2.     HOUSE BILL NO. 1202, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2046, by House Committee on Appropriations (originally sponsored by Representatives Cooke, Kessler and Boldt)

Creating foster parent liaison positions.

      The bill was read the second time.

MOTION

      Senator West moved that the following Committee on Ways and Means amendment be adopted:

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 74.13.031 and 1995 c 191 s 1 are each amended to read as follows:  The department shall have the duty to provide child welfare services ((as defined in RCW 74.13.020,)) and shall:      (1) Develop, administer, supervise, and monitor a coordinated and comprehensive plan that establishes, aids, and strengthens services for the protection and care of homeless, runaway, dependent, or neglected children.        (2) ((Develop a recruiting plan for recruiting)) Within available resources, recruit an adequate number of prospective adoptive and foster homes, both regular and specialized, i.e. homes for children of ethnic minority, including Indian homes for Indian children, sibling groups, handicapped and emotionally disturbed, teens, pregnant and parenting teens, and annually ((submit the plan for review to the house and senate committees on social and health services)) report to the governor and the legislature concerning the department's success in: (a) Meeting the need for adoptive and foster home placements; (b) reducing the foster parent turnover rate; (c) completing home studies for legally free children; and (d) implementing and operating the passport program required by section 5 of this act. The ((plan)) report shall include a section entitled "Foster Home Turn-Over, Causes and Recommendations."      (3) Investigate complaints of neglect, abuse, or abandonment of children, and on the basis of the findings of such investigation, offer child welfare services in relation to the problem to such parents, legal custodians, or persons serving in loco parentis, and/or bring the situation to the attention of an appropriate court, or another community agency: PROVIDED, That an investigation is not required of nonaccidental injuries which are clearly not the result of a lack of care or supervision by the child's parents, legal custodians, or persons serving in loco parentis. If the investigation reveals that a crime may have been committed, the department shall notify the appropriate law enforcement agency.      (4) Offer, on a voluntary basis, family reconciliation services to families who are in conflict.             (5) Monitor out-of-home placements, on a timely and routine basis, to assure the safety, well-being, and quality of care being provided is within the scope of the intent of the legislature as defined in RCW 74.13.010 and 74.15.010, and annually submit a report ((delineating the results)) measuring the extent to which the department achieved the specified goals to the ((house and senate committees on social and health services)) governor and the legislature.      (6) Have authority to accept custody of children from parents and to accept custody of children from juvenile courts, where authorized to do so under law, to provide child welfare services including placement for adoption, and to provide for the physical care of such children and make payment of maintenance costs if needed. Except where required by Public Law 95-608 (25 U.S.C. Sec. 1915), no private adoption agency which receives children for adoption from the department shall discriminate on the basis of race, creed, or color when considering applications in their placement for adoption.    (7) Have authority to provide temporary shelter to children who have run away from home and who are admitted to crisis residential centers.            (8) Have authority to purchase care for children; and shall follow in general the policy of using properly approved private agency services for the actual care and supervision of such children insofar as they are available, paying for care of such children as are accepted by the department as eligible for support at reasonable rates established by the department.        (9) Establish a children's services advisory committee which shall assist the secretary in the development of a partnership plan for utilizing resources of the public and private sectors, and advise on all matters pertaining to child welfare, licensing of child care agencies, adoption, and services related thereto. At least one member shall represent the adoption community.       (10) Have authority to provide continued foster care or group care for individuals from eighteen through twenty years of age to enable them to complete their high school or vocational school program.      (11) Have authority within funds appropriated for foster care services to purchase care for Indian children who are in the custody of a federally recognized Indian tribe or tribally licensed child-placing agency pursuant to parental consent, tribal court order, or state juvenile court order; and the purchase of such care shall be subject to the same eligibility standards and rates of support applicable to other children for whom the department purchases care.     Notwithstanding any other provision of RCW 13.32A.170 through 13.32A.200 and 74.13.032 through 74.13.036, or of this section all services to be provided by the department of social and health services under subsections (4), (6), and (7) of this section, subject to the limitations of these subsections, may be provided by any program offering such services funded pursuant to Titles II and III of the federal juvenile justice and delinquency prevention act of 1974.        NEW SECTION. Sec. 2. A new section is added to chapter 74.13 RCW to read as follows:     Within available resources, the department shall provide a foster parent liaison position in each department region. The department shall contract with a private nonprofit organization to provide the foster parent liaison function. The foster parent liaison shall enhance the working relationship between department case workers and foster parents. The foster parent liaison shall provide expedited assistance for the unique needs and requirements posed by special needs foster children in out-of-home care. Any contract entered into under this section for a foster parent liaison shall include a requirement that the contractor substantially reduce the turnover rate of foster parents in the region by an agreed upon percentage. The department shall evaluate whether an organization that has a contract under this section has reduced the turnover rate by the agreed upon amount or more when determining whether to extend or renew a contract under this section.      NEW SECTION. Sec. 3. A new section is added to chapter 74.13 RCW to read as follows:              Within available resources, the department shall increase the number of adoptive and foster families available to accept children through an intensive recruitment and retention program. The department shall contract with a private agency to coordinate foster care and adoptive home recruitment activities for the department and private agencies.  NEW SECTION. Sec. 4. A new section is added to chapter 43.20A RCW to read as follows:      The secretary or the secretary's designee may purchase services from nonprofit agencies for the purpose of conducting home studies for legally free children who have been awaiting adoption finalization for more than ninety days. The home studies selected to be done under this section shall be for the children who have been legally free and awaiting adoption finalization the longest period of time.       NEW SECTION. Sec. 5. A new section is added to chapter 74.13 RCW to read as follows:                  (1) Within available resources, the department shall prepare a passport containing all known and available information concerning the mental, physical, legal, health, and educational status of the child for any child who has been in foster care for ninety consecutive days or more. The passport shall be provided to a foster parent at any placement of a child covered by this section. The department shall update the passport during the regularly scheduled court reviews required under chapter 13.34 RCW. For any child in foster care on the effective date of this act, no time spent in foster care before the effective date of this act shall be included in the computation of the ninety days.       (2) In addition to the requirements of subsection (1) of this section, the department shall, within available resources, notify a foster parent before placement of a child of any known health conditions that pose a serious threat to the child and any known behavioral history that presents a serious risk of harm to the child or others.             NEW SECTION. Sec. 6. A new section is added to chapter 74.13 RCW to read as follows:      The department may provide child care for all foster parents who are required to attend department-sponsored meetings or training sessions. If the department does not provide such child care, the department, where feasible, shall conduct the activities covered by this section in the foster parent's home or other location acceptable to the foster parent.        Sec. 7. RCW 74.13.280 and 1995 c 311 s 21 are each amended to read as follows:          (1) Except as provided in RCW 70.24.105, whenever a child is placed in out-of-home care by the department or a child-placing agency, the department or agency ((may)) shall, within available resources, share information about the child and the child's family with the care provider and ((may)) shall, within available resources, consult with the care provider regarding the child's case plan. If the child is dependent pursuant to a proceeding under chapter 13.34 RCW, the department or agency shall keep the care provider informed regarding the dates and location of dependency review and permanency planning hearings pertaining to the child.            (2) Any person who receives information about a child or a child's family pursuant to this section shall keep the information confidential and shall not further disclose or disseminate the information except as authorized by law.     (3) Nothing in this section shall be construed to limit the authority of the department or child-placing agencies to disclose client information or to maintain client confidentiality as provided by law.       NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."        On motion of Senator Long, the following amendment by Senators Long and Hargrove to the Committee on Ways and Means striking amendment was adopted:

      On page 4 of the amendment, beginning on line 13, after "(1)", strike all material through "days." on line 23 and insert "Within available resources, the department shall prepare a passport containing all known and available information concerning the mental, physical, health, and educational status of the child for any child who has been in a foster home for ninety consecutive days or more. The passport shall be provided to a foster parent at any placement of a child covered by this section. The department shall update the passport during the regularly scheduled court reviews required under chapter 13.34 RCW.       New placements after the effective date of this act shall have first priority in the preparation of passports. Within available resources, the department may prepare passports for any child in a foster home on the effective date of this act, provided that no time spent in a foster home before the effective date of this act shall be included in the computation of the ninety days."                 The Vice President Pro Tempore declared the question before the Senate to be the adoption of the Committee on Ways and Means striking amendment, as amended, to Engrossed Second Substitute House Bill No. 2046.

      The committee striking amendment, as amended, was adopted.

MOTIONS

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

      On page 1, line 1 of the title, after "care;" strike the remainder of the title and insert "amending RCW 74.13.031 and 74.13.280; adding new sections to chapter 74.13 RCW; adding a new section to chapter 43.20A RCW; providing an effective date; and declaring an emergency."      On motion of Senator West, the rules were suspended, Engrossed Second Substitute House Bill No. 2046, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTIONS

      On motion of Senator Hale, Senator Strannigan was excused.

      On motion of Senator Franklin, Senator Loveland was excused..

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute House Bill No. 2046, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 2046, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 2; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.                    Absent: Senators Deccio and Finkbeiner - 2.   Excused: Senators Hargrove, Loveland and Strannigan - 3..      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2046, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Franklin, Senator Heavey was excused.

SECOND READING

      SENATE BILL NO. 5622, by Senators Long, Strannigan and Winsley

Removing the expiration of tax exemptions for new construction of alternative housing for youth in crisis.

      The bill was read the second time.

MOTION

      On motion of Senator West, the rules were suspended, Senate Bill No. 5622, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5622.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5622 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46. Excused: Senators Hargrove, Heavey and Strannigan - 3.               SENATE BILL NO. 5622, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 5074, by Senators Sellar and Snyder

Increasing interstate trade through tax incentives for warehouse and grain operations.

MOTIONS

      On motion of Senator West, Second Substitute Senate Bill No. 5074 was substituted for Senate Bill No. 5074 and the second substitute bill was placed on second reading and read the second time.

      On motion of Senator Hale, the following amendment was adopted:On page 8, line 2, strike "July 1, 1997" and insert "immediately"

MOTIONS

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

      On page 1, line 5 of the title, strike "providing an effective date"          On motion of Senator West, the rules were suspended, Engrossed Second Substitute Senate Bill No. 5074, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute Senate Bill No. 5074.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5074 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 2; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45. Absent: Senators Benton and Goings - 2.         Excused: Senators Hargrove and Strannigan - 2.  ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5074, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 5196, by Senators Strannigan, West, Bauer, Heavey, Prentice and Wood

Allowing a business and occupation tax deduction for certain amusement devices.

MOTIONS

      On motion of Senator West, Substitute Senate Bill No. 5196 was substituted for Senate Bill No. 5196 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator West, the rules were suspended, Substitute Senate Bill No. 5196 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5196.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5196 and the bill passed the Senate by the following vote:

Yeas, 40; Nays, 6; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Finkbeiner, Franklin, Goings, Hale, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Swecker, West, Winsley, Wojahn, Wood and Zarelli - 40.              Voting nay: Senators Fairley, Fraser, Snyder, Spanel, Swanson and Thibaudeau - 6.                 Absent: Senator Haugen - 1.  Excused: Senators Hargrove and Strannigan - 2.   SUBSTITUTE SENATE BILL NO. 5196, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 1191, by House Committee on Appropriations (originally sponsored by Representatives Backlund, Dyer, Skinner and Sherstad)

Providing for review of mandated health insurance benefits.

      The bill was read the second time.

MOTIONS

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

      On page 6, beginning on line 12, strike all material down through and including line 15

      On motion of Senator West, the rules were suspended, Second Substitute House Bill No. 1191, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Second Substitute House Bill No. 1191, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 1191, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 30; Nays, 17; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Deccio, Finkbeiner, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Johnson, Long, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Stevens, Swecker, West, Winsley, Wood and Zarelli - 30.        Voting nay: Senators Bauer, Brown, Fairley, Franklin, Fraser, Jacobsen, Kline, Kohl, Loveland, McAuliffe, Prentice, Sheldon, Snyder, Spanel, Swanson, Thibaudeau and Wojahn - 17.             Excused: Senators Hargrove and Strannigan - 2.                  SECOND SUBSTITUTE HOUSE BILL NO. 1191, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 2080, by House Committee on Government Reform and Land Use (originally sponsored by Representatives Parlette, Reams, Mulliken, Chandler and Boldt)

Regulating classification of lands with long-term commercial significance.

      The bill was read the second time.

MOTION

      Senator West moved that the following Committee on Ways and Means amendment be adopted:

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 84.34 RCW to read as follows:               (1) An additional type of current use valuation is established in this section for agricultural lands that is called agricultural lands with long-term commercial significance.         (2) Lands shall be classified as agricultural lands with long-term commercial significance if: (a) The lands are designated as agricultural lands under RCW 36.70A.170(1) by a county, city, or town planning under RCW 36.70A.040; (b) the lands are devoted primarily to agricultural uses specified under RCW 36.70A.030(2) and not used for residential purposes, industrial purposes, or other commercial purposes; (c) the county, city, or town has adopted its comprehensive plan and development regulations under RCW 36.70A.070 and 36.70A.040; and (d) the owner files an application for this status with the county assessor.         The assessed valuation of agricultural lands with long-term commercial significance shall be one-half of the value of such lands established under RCW 84.40.030 or the value established under RCW 84.34.065, whichever is lower.          (3) The classification of any lands as agricultural lands with long-term commercial significance shall be removed if either: (a) The county, city, or town removes the designation of these lands under RCW 36.70A.170(1); or (b) the use of such lands changes to a use not permitted for designation as agricultural lands with long-term commercial significance under subsection (2) of this section. After the removal of the classification of agricultural lands with long-term commercial significance, the lands shall be valued at their full market value unless the lands are reclassified under another current use classification under this chapter. Lands removed from classification as agricultural lands with long-term commercial significance shall not be subject to an additional tax, penalties, or interest under RCW 84.34.070 through 84.34.108.           Sec. 2. RCW 84.34.020 and 1992 c 69 s 4 are each amended to read as follows:         As used in this chapter, unless a different meaning is required by the context:     (1) "Open space land" means (a) any land area so designated by an official comprehensive land use plan adopted by any city or county and zoned accordingly(([,])), or (b) any land area, the preservation of which in its present use would (i) conserve and enhance natural or scenic resources, or (ii) protect streams or water supply, or (iii) promote conservation of soils, wetlands, beaches or tidal marshes, or (iv) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries or other open space, or (v) enhance recreation opportunities, or (vi) preserve historic sites, or (vii) preserve visual quality along highway, road, and street corridors or scenic vistas, or (viii) retain in its natural state tracts of land not less than one acre situated in an urban area and open to public use on such conditions as may be reasonably required by the legislative body granting the open space classification, or (c) any land meeting the definition of farm and agricultural conservation land under subsection (8) of this section. As a condition of granting open space classification, the legislative body may not require public access on land classified under (b)(iii) of this subsection for the purpose of promoting conservation of wetlands.          (2) "Farm and agricultural land" means either (a) any parcel of land that is twenty or more acres or multiple parcels of land that are contiguous and total twenty or more acres (i) devoted primarily to the production of livestock or agricultural commodities for commercial purposes, (ii) enrolled in the federal conservation reserve program or its successor administered by the United States department of agriculture, or (iii) other similar commercial activities as may be established by rule ((following consultation with the advisory committee established in section 19 of this act)); (b) any parcel of land that is five acres or more but less than twenty acres devoted primarily to agricultural uses, which has produced a gross income from agricultural uses equivalent to, as of January 1, 1993, (i) one hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993, and (ii) on or after January 1, 1993, two hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter; (c) any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income as of January 1, 1993, of (i) one thousand dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993, and (ii) on or after January 1, 1993, fifteen hundred dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter. Parcels of land described in (b)(i) and (c)(i) of this subsection shall, upon any transfer of the property excluding a transfer to a surviving spouse, be subject to the limits of (b)(ii) and (c)(ii) of this subsection. Agricultural lands shall also include such incidental uses as are compatible with agricultural purposes, including wetlands preservation, provided such incidental use does not exceed twenty percent of the classified land and the land on which appurtenances necessary to the production, preparation, or sale of the agricultural products exist in conjunction with the lands producing such products. Agricultural lands shall also include any parcel of land of one to five acres, which is not contiguous, but which otherwise constitutes an integral part of farming operations being conducted on land qualifying under this section as "farm and agricultural lands"; or (d) the land on which housing for employees and the principal place of residence of the farm operator or owner of land classified pursuant to (a) of this subsection is sited if: The housing or residence is on or contiguous to the classified parcel; and the use of the housing or the residence is integral to the use of the classified land for agricultural purposes.

      (3) "Timber land" means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres which is or are devoted primarily to the growth and harvest of forest crops for commercial purposes. A timber management plan shall be filed with the county legislative authority at the time (a) an application is made for classification as timber land pursuant to this chapter or (b) when a sale or transfer of timber land occurs and a notice of classification continuance is signed. Timber land means the land only.      (4) "Current" or "currently" means as of the date on which property is to be listed and valued by the assessor.   (5) "Owner" means the party or parties having the fee interest in land, except that where land is subject to real estate contract "owner" shall mean the contract vendee.      (6) "Contiguous" means land adjoining and touching other property held by the same ownership. Land divided by a public road, but otherwise an integral part of a farming operation, shall be considered contiguous.      (7) "Granting authority" means the appropriate agency or official who acts on an application for classification of land pursuant to this chapter.                 (8) "Farm and agricultural conservation land" means either:      (a) Land that was previously classified under subsection (2) of this section, that no longer meets the criteria of subsection (2) of this section, and that is reclassified under subsection (1) of this section; or             (b) Land that is traditional farmland that is not classified under chapter 84.33 or 84.34 RCW, that has not been irrevocably devoted to a use inconsistent with agricultural uses, and that has a high potential for returning to commercial agriculture.        (9) "Agricultural lands of long-term commercial significance" means lands designated by a county, city, or town under RCW 36.70A.170(1) that have been classified as agricultural lands with long-term commercial significance under section 1 of this act.            Sec. 3. RCW 84.34.070 and 1992 c 69 s 10 are each amended to read as follows:               (1) When land has once been classified under this chapter as open space land, farm and agricultural land, or timber land, it shall remain under such classification and shall not be applied to other use except as provided by subsection (2) of this section for at least ten years from the date of classification and shall continue under such classification until and unless withdrawn from classification after notice of request for withdrawal shall be made by the owner. During any year after eight years of the initial ten-year classification period have elapsed, notice of request for withdrawal of all or a portion of the land may be given by the owner to the assessor or assessors of the county or counties in which such land is situated. In the event that a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when such land was originally granted classification pursuant to this chapter unless the remaining parcel has different income criteria. Within seven days the assessor shall transmit one copy of such notice to the legislative body which originally approved the application. The assessor or assessors, as the case may be, shall, when two assessment years have elapsed following the date of receipt of such notice, withdraw such land from such classification and the land shall be subject to the additional tax and applicable interest due under RCW 84.34.108. Agreement to tax according to use shall not be considered to be a contract and can be abrogated at any time by the legislature in which event no additional tax or penalty shall be imposed.              (2) The following reclassifications are not considered withdrawals or removals and are not subject to additional tax under RCW 84.34.108:    (a) Reclassification between lands under RCW 84.34.020 (2) and (3);      (b) Reclassification of land classified under RCW 84.34.020 (2) or (3) or chapter 84.33 RCW to open space land under RCW 84.34.020(1);      (c) Reclassification of land classified under RCW 84.34.020 (2) or (3) to forest land classified under chapter 84.33 RCW; and      (d) Reclassification of land classified as open space land under RCW 84.34.020(1)(c) and reclassified to farm and agricultural land under RCW 84.34.020(2) if the land had been previously classified as farm and agricultural land under RCW 84.34.020(2).             (3) Applications for reclassification shall be subject to applicable provisions of RCW 84.34.037, 84.34.035, 84.34.041, and chapter 84.33 RCW.      (4) The income criteria for land classified under RCW 84.34.020(2) (b) and (c) may be deferred for land being reclassified from land classified under RCW 84.34.020 (1)(c) or (3), or chapter 84.33 RCW into RCW 84.34.020(2) (b) or (c) for a period of up to five years from the date of reclassification.           Sec. 4. RCW 84.34.108 and 1992 c 69 s 12 are each amended to read as follows:               (1) When land has once been classified under this chapter as open space land, farm and agricultural land, or timber land, a notation of such classification shall be made each year upon the assessment and tax rolls and such land shall be valued pursuant to RCW 84.34.060 or 84.34.065 until removal of all or a portion of such classification by the assessor upon occurrence of any of the following:       (a) Receipt of notice from the owner to remove all or a portion of such classification;           (b) Sale or transfer to an ownership, except a transfer that resulted from a default in loan payments made to or secured by a governmental agency that intends to or is required by law or regulation to resell the property for the same use as before, making all or a portion of such land exempt from ad valorem taxation;       (c) Sale or transfer of all or a portion of such land to a new owner, unless the new owner has signed a notice of classification continuance, except transfer to an owner who is an heir or devisee of a deceased owner shall not, by itself, result in removal of classification. ((The signed notice of continuance shall be attached to the real estate excise tax affidavit provided for in RCW 82.45.120, as now or hereafter amended.)) The signed notice of classification continuance shall be part of the real estate excise tax affidavit provided for in RCW 82.45.120 or attached as a separate document to the real estate excise tax affidavit. The notice of continuance shall be on a form prepared by the department of revenue. If the notice of continuance is not signed by the new owner and attached to the real estate excise tax affidavit, all additional taxes calculated pursuant to subsection (3) of this section shall become due and payable by the seller or transferor at time of sale. The county auditor shall not accept an instrument of conveyance of classified land for filing or recording unless the new owner has signed the notice of continuance or the additional tax has been paid. The seller, transferor, or new owner may appeal the new assessed valuation calculated under subsection (3) of this section to the county board of equalization. Jurisdiction is hereby conferred on the county board of equalization to hear these appeals;            (d) Determination by the assessor, after giving the owner written notice and an opportunity to be heard, that all or a portion of such land no longer meets the criteria for classification under this chapter. The criteria for classification pursuant to this chapter continue to apply after classification has been granted.           The granting authority, upon request of an assessor, shall provide reasonable assistance to the assessor in making a determination whether such land continues to meet the qualifications of RCW 84.34.020 (1) or (3). The assistance shall be provided within thirty days of receipt of the request.       (2) Within thirty days after such removal of all or a portion of such land from current use classification as open space land, farm and agricultural land, or timber land, the assessor shall notify the owner in writing, setting forth the reasons for such removal. The seller, transferor, or owner may appeal such removal to the county board of equalization.                (3) Unless the removal is reversed on appeal, the assessor shall revalue the affected land with reference to full market value on the date of removal from classification. Both the assessed valuation before and after the removal of classification shall be listed and taxes shall be allocated according to that part of the year to which each assessed valuation applies. Except as provided in subsection (5) of this section, an additional tax, applicable interest, and penalty shall be imposed which shall be due and payable to the county treasurer thirty days after the owner is notified of the amount of the additional tax. As soon as possible, the assessor shall compute the amount of such an additional tax, applicable interest, and penalty and the treasurer shall mail notice to the owner of the amount thereof and the date on which payment is due. The amount of such additional tax, applicable interest, and penalty shall be determined as follows:      (a) The amount of additional tax shall be equal to the difference between the property tax paid as "open space land", "farm and agricultural land", or "timber land" and the amount of property tax otherwise due and payable for the seven years last past had the land not been so classified; (b) The amount of applicable interest shall be equal to the interest upon the amounts of such additional tax paid at the same statutory rate charged on delinquent property taxes from the dates on which such additional tax could have been paid without penalty if the land had been assessed at a value without regard to this chapter;        (c) The amount of the penalty shall be as provided in RCW 84.34.080. The penalty shall not be imposed if the removal satisfies the conditions of RCW 84.34.070.                  (4) Additional tax, applicable interest, and penalty, shall become a lien on such land which shall attach at the time such land is removed from classification under this chapter and shall have priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation or responsibility to or with which such land may become charged or liable. Such lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes as provided in RCW 84.64.050 now or as hereafter amended. Any additional tax unpaid on its due date shall thereupon become delinquent. From the date of delinquency until paid, interest shall be charged at the same rate applied by law to delinquent ad valorem property taxes.        (5) The additional tax, applicable interest, and penalty specified in subsection (3) of this section shall not be imposed if the removal of classification pursuant to subsection (1) of this section resulted solely from:      (a) Transfer to a government entity in exchange for other land located within the state of Washington;               (b)(i) A taking through the exercise of the power of eminent domain, or (ii) sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power, said entity having manifested its intent in writing or by other official action;      (c) A natural disaster such as a flood, windstorm, earthquake, or other such calamity rather than by virtue of the act of the landowner changing the use of such property;           (d) Official action by an agency of the state of Washington or by the county or city within which the land is located which disallows the present use of such land;      (e) Transfer of land to a church when such land would qualify for exemption pursuant to RCW 84.36.020;        (f) Acquisition of property interests by state agencies or agencies or organizations qualified under RCW 84.34.210 and 64.04.130 for the purposes enumerated in those sections: PROVIDED, That at such time as these property interests are not used for the purposes enumerated in RCW 84.34.210 and 64.04.130 the additional tax specified in subsection (3) of this section shall be imposed; or        (g) Removal of land classified as farm and agricultural land under RCW 84.34.020(2)(d)."

MOTION

      On motion of Senator West, further consideration of Second Substitute House Bill No. 2080 was deferred.

      President Owen assumed the Chair.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1113, by House Committee on Agriculture and Ecology (originally sponsored by Representatives Chandler, Mastin, McMorris, Koster, Delvin, Mulliken, Johnson, Schoesler and Honeyford)

Authorizing a change in the use of water made surplus by certain activities and modifying transfer provisions.

      The bill was read the second time.

MOTION

      Senator Swecker moved that the following Committee on Agriculture and Environment amendment not be adopted:

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that there is a significant number of high-value horticultural crops that can be grown utilizing water-efficient irrigation systems. The legislature finds that over a period of several years, existing orchard plantings will be revitalized and replaced with new plantings, and that additional orchards will be planted which provide opportunities for improved water efficiency.       The legislature finds that significant water savings could be realized through the installation of more efficient irrigation systems such as trickle irrigation systems where climatically and economically suitable. The legislature also finds that positive economic incentives, establishment of necessary legal procedures, and removal of legal barriers are needed to stimulate the development of workable technologies and farming systems that rely on lesser quantities of water.     The purpose of this act is to stimulate the use of water-efficient irrigation systems by allowing the saved water to be voluntarily transferred by the water right holder to other uses or other places of use.  Additionally, the purpose is to establish incentives through enabling self-funded, private capital or public funds to provide improved market-based incentives for adopting water saving technologies and to allow the benefits of the conserved water to be fully realized. It is the intent of this act that sufficient protections be provided to assure that existing water users are not adversely affected by transfers approved under this act.            NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.               (1) "Contract" means a written legal instrument that provides for the transfer of a portion of a water right from an existing water right holder to another person for consideration.             (2) "Department" means the department of ecology.      (3) "Net water savings" has the same meaning as defined in RCW 90.42.020.     (4) "Person" means a person, corporation, quasi-municipal corporation, municipal corporation, or state agency.    (5) "Reduction in evaporative loss" means the amount of water that is no longer lost to further use as a result of changing from a conventional irrigation system to a water-efficient irrigation system. "Reduction in evaporative loss" includes the reduction in the amount of water consumed through evaporation or through transpiration by nonproductive plants such as cover crops, but does not include any water that contributed to return flows used to satisfy existing rights.         (6) "Trust water right" means a water right transferred to and managed by the department for the benefit of instream flows or for the allocation to new uses as provided in chapter 90.38 or 90.42 RCW.    (7) "Water-efficient irrigation system" means a system that, through technological modifications, results in water savings.              NEW SECTION. Sec. 3. A person holding a valid water right or contractual right to use water, who finances the installation of a water-efficient irrigation system, may enter into a contract with another person for the transfer of water saved through installation of the water-efficient irrigation system. In determining the amount that is transferrable, the department shall allow the transfer of an amount equal to the reduction in the evaporative loss. The reduction in evaporative loss is a readily transferrable component of net water savings.      In addition, the department shall evaluate whether there are additional net water savings that result directly from installation of the water-efficient irrigation system that could be transferred to the purchaser without detriment to other existing water users. The department may not delay because of decisions on the determination of additional net water savings the approval of the transfer of the water that constitutes the reduction in evaporative loss. The use of water supplied by an irrigation district that is saved through installation of a qualifying water-efficient irrigation system as provided in this section shall be regulated solely as provided by the board of directors of the irrigation district.      A person wishing to make application for a transfer of a water right under this chapter shall comply with RCW 90.03.380. A contract may allow for a permanent transfer of a portion of the original water right, or for lease agreements with set expiration dates. The applicant shall state that the contract is not permanent in the application if the contract is not permanent.                  The transferred portion has the same date of priority as the water right from which it originated, but between them the transferred portion of the right is inferior in priority unless otherwise provided by the parties in the contract.         The department shall maintain a record of contracts with the certificate of water right for the transferred water.          NEW SECTION. Sec. 4. The department may adopt rules, in accordance with chapter 34.05 RCW, for procedures to be used to facilitate the processing of requests for water right transfers made under this chapter and to establish a streamlined procedure to quantify the reduction in the evaporative loss. In developing streamlined procedures, the department may use data from the United States natural resource conservation service or the Washington state cooperative extension service to base calculations of reduction in evaporative loss in various regions of the state.               The rules may establish procedures for the department to make preliminary findings that can be used as an initial basis for developing contracts by applicants.    NEW SECTION. Sec. 5. An applicant shall accompany an application for a water right transfer under this chapter with a fee established in RCW 90.03.470.       NEW SECTION. Sec. 6. In processing applications for transfers of portions of water rights under this chapter, if the department is unable to conclusively determine the validity of the original water right, the department may include a presumption of validity in the certificate of water rights. The presumption must provide to the contract purchaser the same right to the use of water embodied in the original water right.      The presumption of validity may not be used as evidence as to the existence or nonexistence in a water right adjudication conducted under chapter 90.03 RCW.     NEW SECTION. Sec. 7. A holder of a water right may voluntarily enter into a contract with the department. The department may utilize funds that are now or hereafter authorized for the purchase of water savings made available under this chapter. The department shall utilize the same methods of calculating water that is transferrable to another party under this chapter in determining the amount of water that is transferrable to the state. If additional net water saved is available for the benefit of only a stream segment, the calculations may be made on a case-by-case basis while assuring no detriment to existing water users occurs.      NEW SECTION. Sec. 8. A valid water right user who installs a water-efficient irrigation system may apply for a transfer of the reduction in evaporative loss, plus any additional net water savings, for the irrigation of an additional parcel of previously unirrigated land, to land with less senior water rights, or that lacks a full and sufficient supply. The application must be processed based upon the same criteria as if the transfer were to be made to another person.         NEW SECTION. Sec. 9. This chapter may be known and cited as the agricultural water conservation incentives act.       Sec. 10. RCW 90.03.380 and 1996 c 320 s 19 are each amended to read as follows:      (1) The right to the use of water which has been applied to a beneficial use in the state shall be and remain appurtenant to the land or place upon which the same is used((: PROVIDED, HOWEVER, That said)). However, all or a portion of a right may be transferred to another or to others and become appurtenant to any other land or additional place of use without loss of priority of right theretofore established if such change can be made without detriment or injury to existing rights. The point of diversion of water for beneficial use or the purpose of use may be changed, if such change can be made without detriment or injury to existing rights. A change in the place of use, point of diversion, and/or purpose of use of a water right to enable irrigation of additional acreage or the addition of new uses may be permitted if such change results in no increase in the annual consumptive quantity of water used under the water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water diverted pursuant to the water right, reduced by the estimated annual amount of return flows, averaged over the most recent five-year period of continuous beneficial use of the water right. Before any transfer of such right to use water or change of the point of diversion of water or change of purpose of use can be made, any person having an interest in the transfer or change, shall file a written application therefor with the department, and said application shall not be granted until notice of said application shall be published as provided in RCW 90.03.280. If it shall appear that such transfer or such change may be made without injury or detriment to existing rights, the department shall issue to the applicant an authorization to make the change or transfer. When the applicant has completed the change or transfer, the department shall issue to the applicant a certificate in duplicate granting the right for such transfer or for such change of point of diversion or of use. The certificate so issued shall be filed and be made a record with the department and the duplicate certificate issued to the applicant may be filed with the county auditor in like manner and with the same effect as provided in the original certificate or permit to divert water.   (2) If an application for change proposes to transfer water rights from one irrigation district to another, the department shall, before publication of notice, receive concurrence from each of the irrigation districts that such transfer or change will not adversely affect the ability to deliver water to other landowners or impair the financial integrity of either of the districts.                   (3) A change in place of use by an individual water user or users of water provided by an irrigation district need only receive approval for the change from the board of directors of the district if the use of water continues within the irrigation district, and when water is provided by an irrigation entity that is a member of a board of joint control created under chapter 87.80 RCW, approval need only be received from the board of joint control if the use of water continues within the area of jurisdiction of the joint board and the change can be made without detriment or injury to existing rights. The board of directors of an irrigation district may approve such a change if the board determines that the change: Will not adversely affect the district's ability to deliver water to other landowners; will not require the construction by the district of diversion or drainage facilities unless the board finds that the construction by the district is in the interest of the district; will not impair the financial or operational integrity of the district; and is consistent with the contractual obligations of the district.     (4) This section shall not apply to trust water rights acquired by the state through the funding of water conservation projects under chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.     Sec. 11. RCW 90.44.100 and 1987 c 109 s 113 are each amended to read as follows:        After an application to, and upon the issuance by the department of an amendment to the appropriate permit or certificate of ground water right, the holder of a valid right to withdraw public ground waters may, without losing his priority of right, construct wells or other means of withdrawal at a new location in substitution for or in addition to those at the original location, or he may change the manner or the place of use of the water: PROVIDED, HOWEVER, That such amendment shall be issued only after publication of notice of the application and findings as prescribed in the case of an original application. Such amendment shall be issued by the department only on the conditions that: (1) The additional or substitute well or wells shall tap the same body of public ground water as the original well or wells; (2) use of the original well or wells shall be discontinued upon construction of the substitute well or wells; (3) the construction of an additional well or wells shall not enlarge the right conveyed by the original permit or certificate; and (4) other existing rights shall not be impaired. The department may specify an approved manner of construction and shall require a showing of compliance with the terms of the amendment, as provided in RCW 90.44.080 in the case of an original permit. An amendment to a permit or certificate to change the place of use, point of withdrawal, and/or purpose of use of a ground water right to enable irrigation of additional acreage or the addition of new uses may be issued if such change results in no increase in the annual consumptive quantity of water used or authorized for use under the ground water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water withdrawn or authorized for withdrawal pursuant to the ground water right reduced by the estimated annual amount of return flows. For permits or certificates under which actual amounts of water have been withdrawn, withdrawals and return flows shall be averaged over the most recent five-year period of continuous beneficial use of the ground water right or, if the period of actual continuous beneficial use is less than five years, such lesser period.              NEW SECTION. Sec. 12. Sections 2 through 9 of this act constitute a new chapter in Title 90 RCW.              NEW SECTION. Sec. 13. 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 takes effect July 1, 1997."        Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Swecker that the Committee on Agriculture and Environment striking amendment to Engrossed Substitute House Bill No. 1113 not be adopted.

      The motion by Senator Swecker carried on a rising vote and the committee striking amendment was not adopted.

MOTIONS

      Senator Swecker moved that the following amendment by Senators Swecker and Morton be adopted:

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that incentives need to be established to encourage the installation of more efficient irrigation conveyance and on-farm application systems and that significant benefits can accrue including water quantity and water quality benefits. The legislature finds that increasing the amount of lands that may be irrigated under an existing water right can impact the amount of return flow water available to meet the needs of other existing water rights. Further, that adherence to a strict nonimpairment standard has slowed efforts to make irrigation water delivery systems more efficient. The legislature finds that reliance on public funds to provide incentives to install efficient irrigation systems is less reliable and more costly to the public than providing economic incentives together with establishing compensating mechanisms to protect existing rights from impairment.      The purpose of this act is to establish mechanisms that will provide a means to test incentives for improving the efficiency of irrigation water use.                     NEW SECTION. Sec. 2. A new section is added to chapter 90.03 RCW to read as follows:         RCW 90.03.380 does not apply to a change regarding a portion of the water governed by a water right to appropriate surface water used for agricultural purposes that is made surplus to the beneficial uses exercised under the right through the implementation of practices or technologies, including but not limited to conveyance practices or technologies that are more efficient or more water use efficient than those under which the right was perfected or through a change in the crops grown under the water right. If a portion of the water governed by a water right to surface water is made surplus to the beneficial uses exercised under the right through the implementation of practices or technologies, including but not limited to conveyance practices or technologies, which are more efficient or more water use efficient than those under which the right was perfected, the right to use the surplus water may be changed to use on other lands owned by the holder of the water right that are contiguous to the lands upon which the use of the water was authorized by the right before such a change in accordance with the following:        (1) For the purpose of calculating the amount of surplus water that may be allocated to irrigate additional lands, the water right holder shall assume that the amount of water per acre that is to be used to irrigate the additional land is equal to the revised amount of water per acre that the lands previously allowed to be irrigated under the original right would receive. Once the amount of surplus water is calculated in accordance with this section, the allowable quantity of water that may be used to irrigate each parcel may be used on either the original parcel or on the additional land without differentiation; (2) Of the waters determined to be surplus to the beneficial uses exercised under the right:                 (a) Fifty percent shall be available to be used on additional land and shall retain the date of priority of the original right; and             (b) Fifty percent shall be available to be used on additional land and shall have a date of priority that is subordinate to other water rights that were established as of the date the water was applied to the additional land.         The holder of the water right shall notify the department of such a change. The department may prescribe a form upon which notification is to be made. The department shall establish procedures to verify the information contained in the notification and may require the submission of additional information to assure general compliance with the provisions of this section. Such notification constitutes a change in the holder's water right and, upon receiving the notification, the department shall revise its records for the water right to reflect the change.   This section does not apply to water supplied by an irrigation district.                  This section does not apply to surplus water resulting from water efficiency improvements that were financed in whole or in part with state funds.            Any person who uses this section shall not impair any existing right unless compensation or mitigation for such impairment or injury is agreed to by the holder of the affected water right.            NEW SECTION. Sec. 3. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.            (1) "Contract" means a written legal instrument that provides for the transfer of a portion of a water right from an existing water right holder to another person for consideration.              (2) "Department" means the department of ecology.      (3) "Net water savings" has the same meaning as defined in RCW 90.42.020.     (4) "Person" means a person, corporation, quasi-municipal corporation, municipal corporation, or state agency.    (5) "Reduction in evaporative loss" means the amount of water that is no longer lost to further use as a result of changing from a conventional irrigation system to a water-efficient irrigation system. "Reduction in evaporative loss" includes the reduction in the amount of water consumed through evaporation or through transpiration by nonproductive plants such as cover crops, but does not include any water that contributed to return flows used to satisfy existing rights.         (6) "Trust water right" means a water right transferred to and managed by the department for the benefit of instream flows or for the allocation to new uses as provided in chapter 90.38 or 90.42 RCW.    (7) "Water-efficient irrigation system" means a system that, through technological modifications, results in water savings.              NEW SECTION. Sec. 4. A person holding a valid water right or contractual right to use water, who finances the installation of a water-efficient irrigation system, may enter into a contract with another person for the transfer of water saved through installation of the water-efficient irrigation system. In determining the amount that is transferrable, the department shall allow the transfer of an amount equal to the reduction in the evaporative loss. The reduction in evaporative loss is a readily transferrable component of net water savings.      In addition, the department shall evaluate whether there are additional net water savings that result directly from installation of the water-efficient irrigation system that could be transferred to the purchaser without detriment to other existing water users. The department may not delay because of decisions on the determination of additional net water savings the approval of the transfer of the water that constitutes the reduction in evaporative loss. The use of water supplied by an irrigation district that is saved through installation of a qualifying water-efficient irrigation system as provided in this section shall be regulated solely as provided by the board of directors of the irrigation district.      A person wishing to make application for a transfer of a water right under this chapter shall comply with RCW 90.03.380. A contract may allow for a permanent transfer of a portion of the original water right, or for lease agreements with set expiration dates. The applicant shall state that the contract is not permanent in the application if the contract is not permanent.                  The transferred portion has the same date of priority as the water right from which it originated, but between them the transferred portion of the right is inferior in priority unless otherwise provided by the parties in the contract.         The department shall maintain a record of contracts with the certificate of water right for the transferred water.          NEW SECTION. Sec. 5. The department may adopt rules, in accordance with chapter 34.05 RCW, for procedures to be used to facilitate the processing of requests for water right transfers made under this chapter and to establish a streamlined procedure to quantify the reduction in the evaporative loss. In developing streamlined procedures, the department may use data from the United States natural resource conservation service or the Washington state cooperative extension service to base calculations of reduction in evaporative loss in various regions of the state.               The rules may establish procedures for the department to make preliminary findings that can be used as an initial basis for developing contracts by applicants.    NEW SECTION. Sec. 6. An applicant shall accompany an application for a water right transfer under this chapter with a fee established in RCW 90.03.470.       NEW SECTION. Sec. 7. In processing applications for transfers of portions of water rights under this chapter, if the department is unable to conclusively determine the validity of the original water right, the department may include a presumption of validity in the certificate of water rights. The presumption must provide to the contract purchaser the same right to the use of water embodied in the original water right.      The presumption of validity may not be used as evidence as to the existence or nonexistence in a water right adjudication conducted under chapter 90.03 RCW.     NEW SECTION. Sec. 8. A holder of a water right may voluntarily enter into a contract with the department. The department may utilize funds that are now or hereafter authorized for the purchase of water savings made available under this chapter. The department shall utilize the same methods of calculating water that is transferrable to another party under this chapter in determining the amount of water that is transferrable to the state. If additional net water saved is available for the benefit of only a stream segment, the calculations may be made on a case-by-case basis while assuring no detriment to existing water users occurs.      NEW SECTION. Sec. 9. A valid water right user who installs a water-efficient irrigation system may apply for a transfer of the reduction in evaporative loss, plus any additional net water savings, for the irrigation of an additional parcel of previously unirrigated land, to land with less senior water rights, or that lacks a full and sufficient supply. The application must be processed based upon the same criteria as if the transfer were to be made to another person.         NEW SECTION. Sec. 10. This chapter may be known and cited as the agricultural water conservation incentives act.   Sec. 11. RCW 90.03.380 and 1996 c 320 s 19 are each amended to read as follows:      (1) The right to the use of water which has been applied to a beneficial use in the state shall be and remain appurtenant to the land or place upon which the same is used((: PROVIDED, HOWEVER, That said)). However, all or a portion of a right may be transferred to another or to others and become appurtenant to any other land or place of use without loss of priority of right theretofore established if such change can be made without detriment or injury to existing rights. The point of diversion of water for beneficial use or the purpose of use may be changed, if such change can be made without detriment or injury to existing rights. A change in the place of use, point of diversion, and/or purpose of use of a water right to enable irrigation of additional acreage or the addition of new uses may be permitted if such change results in no increase in the annual consumptive quantity of water used under the water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water diverted pursuant to the water right, reduced by the estimated annual amount of return flows, averaged over the most recent five-year period of continuous beneficial use of the water right. Before any transfer of such right to use water or change of the point of diversion of water or change of purpose of use can be made, any person having an interest in the transfer or change, shall file a written application therefor with the department, and said application shall not be granted until notice of said application shall be published as provided in RCW 90.03.280. If it shall appear that such transfer or such change may be made without injury or detriment to existing rights, the department shall issue to the applicant an authorization to make the change or transfer. When the applicant has completed the change or transfer, the department shall issue to the applicant a certificate in duplicate granting the right for such transfer or for such change of point of diversion or of use. The certificate so issued shall be filed and be made a record with the department and the duplicate certificate issued to the applicant may be filed with the county auditor in like manner and with the same effect as provided in the original certificate or permit to divert water.   (2) If an application for change proposes to transfer water rights from one irrigation district to another, the department shall, before publication of notice, receive concurrence from each of the irrigation districts that such transfer or change will not adversely affect the ability to deliver water to other landowners or impair the financial integrity of either of the districts.                   (3) A change in place of use by an individual water user or users of water provided by an irrigation district need only receive approval for the change from the board of directors of the district if the use of water continues within the irrigation district, and when water is provided by an irrigation entity that is a member of a board of joint control created under chapter 87.80 RCW, approval need only be received from the board of joint control if the use of water continues within the area of jurisdiction of the joint board and the change can be made without detriment or injury to existing rights. The board of directors of an irrigation district may approve such a change if the board determines that the change: Will not adversely affect the district's ability to deliver water to other landowners; will not require the construction by the district of diversion or drainage facilities unless the board finds that the construction by the district is in the interest of the district; will not impair the financial or operational integrity of the district; and is consistent with the contractual obligations of the district.     (4) This section shall not apply to trust water rights acquired by the state through the funding of water conservation projects under chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.     Sec. 12. RCW 90.44.100 and 1987 c 109 s 113 are each amended to read as follows:        After an application to, and upon the issuance by the department of an amendment to the appropriate permit or certificate of ground water right, the holder of a valid right to withdraw public ground waters may, without losing his priority of right, construct wells or other means of withdrawal at a new location in substitution for or in addition to those at the original location, or he may change the manner or the place of use of the water: PROVIDED, HOWEVER, That such amendment shall be issued only after publication of notice of the application and findings as prescribed in the case of an original application. Such amendment shall be issued by the department only on the conditions that: (1) The additional or substitute well or wells shall tap the same body of public ground water as the original well or wells; (2) use of the original well or wells shall be discontinued upon construction of the substitute well or wells; (3) the construction of an additional well or wells shall not enlarge the right conveyed by the original permit or certificate; and (4) other existing rights shall not be impaired. The department may specify an approved manner of construction and shall require a showing of compliance with the terms of the amendment, as provided in RCW 90.44.080 in the case of an original permit. An amendment to a permit or certificate to change the place of use, point of withdrawal, and/or purpose of use of a ground water right to enable irrigation of additional acreage or the addition of new uses may be issued if such change results in no increase in the annual consumptive quantity of water used or authorized for use under the ground water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water withdrawn or authorized for withdrawal pursuant to the ground water right reduced by the estimated annual amount of return flows. For permits or certificates under which actual amounts of water have been withdrawn, withdrawals and return flows shall be averaged over the most recent five-year period of continuous beneficial use of the ground water right or, if the period of actual continuous beneficial use is less than five years, such lesser period.              NEW SECTION. Sec. 13. The department of ecology shall submit a report to the legislature by December 1, 2000, containing the results of activities authorized under this act.        NEW SECTION. Sec. 14. Sections 3 through 10 of this act constitute a new chapter in Title 90 RCW.             NEW SECTION. Sec. 15. Sections 1 through 10 of this act expire June 30, 2001."  On motion of Senator Swecker, the following amendments to the striking amendment by Senators Swecker and Morton was adopted:

      On page 8, line 5, after "used ", delete "or authorized for use under the ground water right" and insert "under a certificate or authorized for use under a permit"       On page 8, beginning on line 8, after "withdrawn" delete "or authorized for withdrawal pursuant to the ground water right" and insert "under a certificate or the amount authorized for use under a permit"               The President declared the question before the Senate to be the adoption of the striking amendment by Senators Swecker and Morton, as amended, to Engrossed Substitute House Bill No. 1113.

      Debate ensued.

      The striking amendment by Senators Swecker and Morton, as amended, was adopted.

MOTIONS

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

      On page 1, line 1 of the title, after "changes;" strike the remainder of the title and insert "amending RCW 90.03.380 and 90.44.100; adding a new section to chapter 90.03 RCW; adding a new chapter to Title 90 RCW; creating new sections; and providing an expiration date."      On motion of Senator Swecker, the rules were suspended, Engrossed Substitute House Bill No. 1113, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1113, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1113, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 33; Nays, 15; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Goings, Hale, Haugen, Hochstatter, Horn, Johnson, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Stevens, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 33.         Voting nay: Senators Brown, Fairley, Franklin, Fraser, Heavey, Jacobsen, Kline, Kohl, McAuliffe, Patterson, Prentice, Spanel, Swanson, Thibaudeau and Wojahn - 15.       Excused: Senator Hargrove - 1.             ENGROSSED SUBSTITUTE HOUSE BILL NO. 1113, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

      There being no objection, the Senate resumed consideration of Second Substitute House Bill No. 2080, deferred on second reading earlier today after Senator West had moved that the Committee on Ways and Means striking amendment be adopted.

      The President declared the question before the Senate to be the adoption of the Committee on Ways and Means striking amendment to Second Substitute House Bill No. 2080.

      Debate ensued.

      The committee striking amendment was adopted.

MOTIONS

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

      On page 1, line 2 of the title, after "products;" strike the remainder of the title and insert "amending RCW 84.34.020, 84.34.070, and 84.34.108; and adding a new section to chapter 84.34 RCW."     On motion of Senator West, the rules were suspended, Second Substitute House Bill No. 2080, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

      On motion of Senator Franklin, Senator Bauer was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute House Bill No. 2080, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 2080, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 2; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45. Voting nay: Senators Fairley and Kohl - 2.      Excused: Senators Bauer and Hargrove - 2.          SECOND SUBSTITUTE HOUSE BILL NO. 2080, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

WITHDRAWAL OF NOTICE TO RECONSIDER HOUSE BILL NO. 1458

      On motion of Senator Wojahn, and there being no objection, the notice was withdrawn to reconsider the vote by which House Bill No. 1458, as amended by the Senate, passed the Senate.

      EDITOR'S NOTE: Motion for reconsideration of House Bill No. 1458, as amended by the Senate, was made by Senator Johnson on April 16. The motion for reconsideration carried and further consideration of the bill was deferred. House Bill No. 1458, as amended by the Senate, was transmitted to the House of Representatives on April 17, 1997.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1592, by House Committee on Finance (originally sponsored by Representatives Bush, Kastama, Mulliken, Regala, K. Schmidt, McDonald, Lantz, Robertson, Chandler, Poulsen, Talcott, Backlund, McMorris, Thompson, O'Brien, Linville, Dunn and Sheldon)

Providing tax exemptions for small water districts and systems.

      The bill was read the second time.

MOTIONS

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

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that encouraging water districts to better manage state water resources and encouraging satellite management of failing water systems is in the best interests of the people of Washington state. Continual updates of water quantity and quality, as mandated by federal and state agencies, have revealed that degradation of water quality exists in small water systems throughout the state and that satellite management and consolidation of small systems under a centralized management structure can best utilize existing resources available to assure safe, clean drinking water. The legislature further finds that costs involved in upgrading these small systems can be extremely burdensome to water customers and public water purveyors. With diminishing resources available to these small systems, the legislature finds that granting business and occupation and excise tax relief, under certain conditions, will assist smaller water districts to meet state and federal standards.                  NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:      (1) This chapter does not apply to amounts received for water services supplied by a water-sewer district established under Title 57 RCW that has been certified by the department of health as:       (a) Having less than one thousand five hundred connections; and             (b) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.          (2) This chapter does not apply to amounts received for water services supplied by a water system that has been certified by the department of health as:          (a) Being operated or owned by a qualified satellite management agency under RCW 70.116.134;      (b) Having less than two hundred connections; and               (c) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.             (3) To receive an exemption under this section, the water system shall supply to the department of health proof that an amount equal to at least 90 percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.             (4) The department of health shall certify to the department of revenue the eligibility of water districts and water systems under this section. In order to determine eligibility, the department of health may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water rate. The department of health shall update the estimated state-wide average residential water rate by July 1 of each year that this section remains in effect.                 (5) This section expires July 1, 2003.     NEW SECTION. Sec. 3. A new section is added to chapter 82.16 RCW to read as follows:    (1) This chapter does not apply to amounts received for water services supplied by a water-sewer district established under Title 57 RCW that has been certified by the department of health as:                 (a) Having less than one thousand five hundred connections; and             (b) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.          (2) This chapter does not apply to amounts received for water services supplied by a water system that has been certified by the department of health as:          (a) Being operated or owned by a qualified satellite management agency under RCW 70.116.134;      (b) Having less than two hundred connections; and               (c) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.             (3) To receive an exemption under this section, the water system shall supply to the department of health proof that an amount equal to at least 90 percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.             (4) The department of health shall certify to the department of revenue the eligibility of water districts and water systems under this section. In order to determine eligibility, the department of health may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water rate. The department of health shall update the estimated state-wide average residential water rate by July 1 of each year that this section remains in effect.                 (5) This section expires July 1, 2003."   On motion of Senator West, the following title amendment was adopted:

      On page 1, line 2 of the title, after "systems;" strike the remainder of the title and insert "adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW; creating a new section; and providing expiration dates."

MOTION

      On motion of Senator West, the rules were suspended, Substitute House Bill No. 1592, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1592, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1592, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Bauer and Hargrove - 2.          SUBSTITUTE HOUSE BILL NO. 1592, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1588, by Representatives Mulliken, Dickerson, Kastama, Thompson, Boldt, Clements, Romero, Mason, Conway, Blalock, Hatfield, Scott, O'Brien, Costa, Ogden, Dunn, Kessler, Kenney and Cooper

Exempting hearing instruments from sales and use tax.

      The bill was read the second time.

MOTION

      On motion of Senator West, the rules were suspended, House Bill No. 1588 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1588.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1588 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Voting nay: Senator Fairley - 1.            Excused: Senators Bauer and Hargrove - 2.          HOUSE BILL NO. 1588, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1076, by House Committee on Government Reform and Land Use (originally sponsored by Representatives Reams, Poulsen, Mastin, Hatfield, Skinner, Linville, Dyer, Kessler, Sherstad, Grant, Pennington, Mielke, Thompson, Carlson, Boldt, Bush, Smith and D. Schmidt)

Reforming regulatory activities.

      The bill was read the second time.

MOTIONS

      On motion of Senator McCaslin, the following Committee on Government Operations amendment was adopted:

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 34.05.328 and 1995 c 403 s 201 are each amended to read as follows:         (1) Before adopting a rule described in subsection (5) of this section, an agency shall:        (a) Clearly state in detail the general goals and specific objectives of the statute that the rule implements;              (b) Determine that the rule is needed to achieve the general goals and specific objectives stated under (a) of this subsection, and analyze alternatives to rule making and the consequences of not adopting the rule;              (c) Determine that the probable benefits of the rule are greater than its probable costs, taking into account both the qualitative and quantitative benefits and costs and the specific directives of the statute being implemented;               (d) Determine, after considering alternative versions of the rule and the analysis required under (b) and (c) of this subsection, that the rule being adopted is the least burdensome alternative for those required to comply with it that will achieve the general goals and specific objectives stated under (a) of this subsection;      (e) Determine that the rule does not require those to whom it applies to take an action that violates requirements of another federal or state law;                    (f) Determine that the rule does not impose more stringent performance requirements on private entities than on public entities unless required to do so by federal or state law;           (g) Determine if the rule differs from any federal regulation or statute applicable to the same activity or subject matter and, if so, determine that the difference is justified by the following:         (i) A state statute that explicitly allows the agency to differ from federal standards; or             (ii) Substantial evidence that the difference is necessary to achieve the general goals and specific objectives stated under (a) of this subsection; and           (h) Coordinate the rule, to the maximum extent practicable, with other federal, state, and local laws applicable to the same activity or subject matter.        (2) In making its determinations pursuant to subsection (1)(b) through (g) of this section, the agency shall place in the rule-making file documentation of sufficient quantity and quality so as to persuade a reasonable person that the determinations are justified.                 (3) Before adopting rules described in subsection (5) of this section, an agency shall place in the rule-making file a rule implementation plan for rules filed under each adopting order. The plan shall describe how the agency intends to:  (a) Implement and enforce the rule, including a description of the resources the agency intends to use;               (b) Inform and educate affected persons about the rule;    (c) Promote and assist voluntary compliance; and                 (d) Evaluate whether the rule achieves the purpose for which it was adopted, including, to the maximum extent practicable, the use of interim milestones to assess progress and the use of objectively measurable outcomes.                (4) After adopting a rule described in subsection (5) of this section regulating the same activity or subject matter as another provision of federal or state law, an agency shall do all of the following:           (a) Provide to the business assistance center a list citing by reference the other federal and state laws that regulate the same activity or subject matter;      (b) Coordinate implementation and enforcement of the rule with the other federal and state entities regulating the same activity or subject matter by making every effort to do one or more of the following:       (i) Deferring to the other entity;             (ii) Designating a lead agency; or           (iii) Entering into an agreement with the other entities specifying how the agency and entities will coordinate implementation and enforcement.     If the agency is unable to comply with this subsection (4)(b), the agency shall report to the legislature pursuant to (c) of this subsection;         (c) Report to the joint administrative rules review committee:                (i) The existence of any overlap or duplication of other federal or state laws, any differences from federal law, and any known overlap, duplication, or conflict with local laws; and           (ii) Make recommendations for any legislation that may be necessary to eliminate or mitigate any adverse effects of such overlap, duplication, or difference.        (5)(a) Except as provided in (b) of this subsection, this section applies to:            (i) Significant legislative rules of the departments of ecology, labor and industries, health, revenue, social and health services, and natural resources, the employment security department, the forest practices board, the office of the insurance commissioner, and to the legislative rules of the department of fish and wildlife implementing chapter 75.20 RCW; and                     (ii) Any rule of any agency, if this section is voluntarily made applicable to the rule by the agency, or is made applicable to the rule by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rule making under RCW 34.05.320.    (b) This section does not apply to:          (i) Emergency rules adopted under RCW 34.05.350;      (ii) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;     (iii) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;            (iv) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;              (v) Rules the content of which is explicitly and specifically dictated by statute; ((or))                  (vi) Rules that set or adjust fees or rates pursuant to legislative standards ; or                  (vii) Rules of the department of social and health services relating only to client medical or financial eligibility and rules concerning liability for care of dependents.      (c) For purposes of this subsection:        (i) A "procedural rule" is a rule that adopts, amends, or repeals (A) any procedure, practice, or requirement relating to any agency hearings; (B) any filing or related process requirement for making application to an agency for a license or permit; or (C) any policy statement pertaining to the consistent internal operations of an agency.              (ii) An "interpretive rule" is a rule, the violation of which does not subject a person to a penalty or sanction, that sets forth the agency̓s interpretation of statutory provisions it administers.        (iii) A "significant legislative rule" is a rule other than a procedural or interpretive rule that (A) adopts substantive provisions of law pursuant to delegated legislative authority, the violation of which subjects a violator of such rule to a penalty or sanction; (B) establishes, alters, or revokes any qualification or standard for the issuance, suspension, or revocation of a license or permit; or (C) adopts a new, or makes significant amendments to, a policy or regulatory program.         (d) In the notice of proposed rule making under RCW 34.05.320, an agency shall state whether this section applies to the proposed rule pursuant to (a)(i) of this subsection, or if the agency will apply this section voluntarily.        (6) By January 31, 1996, and by January 31st of each even-numbered year thereafter, the office of financial management, after consulting with state agencies, counties, and cities, and business, labor, and environmental organizations, shall report to the governor and the legislature regarding the effects of this section on the regulatory system in this state. The report shall document:    (a) The rules proposed to which this section applied and to the extent possible, how compliance with this section affected the substance of the rule, if any, that the agency ultimately adopted;       (b) The costs incurred by state agencies in complying with this section;               (c) Any legal action maintained based upon the alleged failure of any agency to comply with this section, the costs to the state of such action, and the result;            (d) The extent to which this section has adversely affected the capacity of agencies to fulfill their legislatively prescribed mission;    (e) The extent to which this section has improved the acceptability of state rules to those regulated; and               (f) Any other information considered by the office of financial management to be useful in evaluating the effect of this section.  NEW SECTION. Sec. 2. A new section is added to chapter 43.20A RCW to read as follows:               A committee or council required by federal law, within the department of social and health services, that makes policy recommendations regarding reimbursement for drugs under the requirements of federal law or regulations is subject to chapters 42.30 and 42.32 RCW."                On motion of Senator McCaslin, the following title amendment was adopted:

      On line 1 of the title, after "government;" strike the remainder of the title and insert "amending RCW 34.05.328; and adding a new section to chapter 43.20A RCW."

MOTION

      On motion of Senator McCaslin, the rules were suspended, Substitute House Bill No. 1076, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1076, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1076, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 2; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, West, Winsley, Wood and Zarelli - 45.                    Voting nay: Senators Thibaudeau and Wojahn - 2.          Excused: Senators Bauer and Hargrove - 2.          SUBSTITUTE HOUSE BILL NO. 1076, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1924, by Representatives Ballasiotes, Sheahan, Dickerson, Radcliff, Sheldon, Chopp, Mason, Conway, Costa, Mitchell, K. Schmidt, Buck, Wensman, Schoesler, Parlette, Hankins, Backlund, Johnson, D. Schmidt, Sterk, Sump, Cooke, Mastin, Scott, O'Brien, Cooper, Hatfield, Blalock, Kessler, Mulliken, Cole, Kenney, Gardner, McMorris and Tokuda

Changing the sentencing for sex offenses.

      The bill was read the second time.

MOTION

      Senator Roach moved that the following amendment by Senators Goings, Long and Hargrove be adopted:

      On page 21, after line 31, insert the following:      "Sec. 3. RCW 9A.44.130 and 1996 c 275 s 11 are each amended to read as follows:      (1) Any adult or juvenile residing in this state who has been found to have committed or has been convicted of any sex offense, or who has been found not guilty by reason of insanity under chapter 10.77 RCW of committing any sex offense, shall register with the county sheriff for the county of the person's residence.             (2) The person shall provide the county sheriff with the following information when registering: (a) Name; (b) address; (c) date and place of birth; (d) place of employment; (e) crime for which convicted; (f) date and place of conviction; (g) aliases used; and (h) social security number.                (3)(a) Sex offenders shall register within the following deadlines. For purposes of this section the term "conviction" refers to adult convictions and juvenile adjudications for sex offenses:        (i) SEX OFFENDERS IN CUSTODY. Sex offenders who committed a sex offense on, before, or after February 28, 1990, and who, on or after July 28, 1991, are in custody, as a result of that offense, of the state department of corrections, the state department of social and health services, a local division of youth services, or a local jail or juvenile detention facility, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. The agency that has jurisdiction over the offender shall provide notice to the sex offender of the duty to register. Failure to register within twenty-four hours of release constitutes a violation of this section and is punishable as provided in subsection (7) of this section.        (ii) SEX OFFENDERS NOT IN CUSTODY BUT UNDER STATE OR LOCAL JURISDICTION. Sex offenders, who, on July 28, 1991, are not in custody but are under the jurisdiction of the indeterminate sentence review board or under the department of correction's active supervision, as defined by the department of corrections, the state department of social and health services, or a local division of youth services, for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 28, 1991. A change in supervision status of a sex offender who was required to register under this subsection (3)(a)(ii) as of July 28, 1991, shall not relieve the offender of the duty to register or to reregister following a change in residence. The obligation to register shall only cease pursuant to RCW 9A.44.140.         (iii) SEX OFFENDERS UNDER FEDERAL JURISDICTION. Sex offenders who, on or after July 23, 1995, as a result of that offense are in the custody of the United States bureau of prisons or other federal or military correctional agency for sex offenses committed before, on, or after February 28, 1990, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. Sex offenders who, on July 23, 1995, are not in custody but are under the jurisdiction of the United States bureau of prisons, United States courts, United States parole commission, or military parole board for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 23, 1995. A change in supervision status of a sex offender who was required to register under this subsection (3)(a)(iii) as of July 23, 1995, shall not relieve the offender of the duty to register or to reregister following a change in residence. The obligation to register shall only cease pursuant to RCW 9A.44.140.   (iv) SEX OFFENDERS WHO ARE CONVICTED BUT NOT CONFINED. Sex offenders who are convicted of a sex offense on or after July 28, 1991, for a sex offense that was committed on or after February 28, 1990, but who are not sentenced to serve a term of confinement immediately upon sentencing, shall report to the county sheriff to register immediately upon completion of being sentenced.      (v) SEX OFFENDERS WHO ARE NEW RESIDENTS OR RETURNING WASHINGTON RESIDENTS. Sex offenders who move to Washington state from another state or a foreign country that are not under the jurisdiction of the state department of corrections, the indeterminate sentence review board, or the state department of social and health services at the time of moving to Washington, must register within thirty days of establishing residence or reestablishing residence if the person is a former Washington resident. The duty to register under this subsection applies to sex offenders convicted under the laws of another state or a foreign country, federal or military statutes, or Washington state for offenses committed on or after February 28, 1990. Sex offenders from other states or a foreign country who, when they move to Washington, are under the jurisdiction of the department of corrections, the indeterminate sentence review board, or the department of social and health services must register within twenty-four hours of moving to Washington. The agency that has jurisdiction over the offender shall notify the offender of the registration requirements before the offender moves to Washington.  (vi) SEX OFFENDERS FOUND NOT GUILTY BY REASON OF INSANITY. Any adult or juvenile who has been found not guilty by reason of insanity under chapter 10.77 RCW of committing a sex offense on, before, or after February 28, 1990, and who, on or after July 23, 1995, is in custody, as a result of that finding, of the state department of social and health services, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. The state department of social and health services shall provide notice to the adult or juvenile in its custody of the duty to register. Any adult or juvenile who has been found not guilty by reason of insanity of committing a sex offense on, before, or after February 28, 1990, but who was released prior to July 23, 1995, shall be required to register within twenty-four hours of receiving notice of this registration requirement. The state department of social and health services shall make reasonable attempts within available resources to notify offenders who were released prior to July 23, 1995. Failure to register within twenty-four hours of release, or of receiving notice, constitutes a violation of this section and is punishable as provided in subsection (7) of this section.        (b) Failure to register within the time required under this section constitutes a per se violation of this section and is punishable as provided in subsection (7) of this section. The county sheriff shall not be required to determine whether the person is living within the county.         (c) An arrest on charges of failure to register, service of an information, or a complaint for a violation of this section, or arraignment on charges for a violation of this section, constitutes actual notice of the duty to register. Any person charged with the crime of failure to register under this section who asserts as a defense the lack of notice of the duty to register shall register immediately following actual notice of the duty through arrest, service, or arraignment. Failure to register as required under this subsection (c) constitutes grounds for filing another charge of failing to register. Registering following arrest, service, or arraignment on charges shall not relieve the offender from criminal liability for failure to register prior to the filing of the original charge.                 (d) The deadlines for the duty to register under this section do not relieve any sex offender of the duty to register under this section as it existed prior to July 28, 1991.          (4)(a) If any person required to register pursuant to this section changes his or her residence address within the same county, the person must send written notice of the change of address to the county sheriff at least fourteen days before moving. If any person required to register pursuant to this section moves to a new county, the person must send written notice of the change of address at least fourteen days before moving to the county sheriff in the new county of residence and must register with that county sheriff within twenty-four hours of moving. The person must also send written notice within ten days of the change of address in the new county to the county sheriff with whom the person last registered. If any person required to register pursuant to this section moves out of Washington state, the person must also send written notice within ten days of moving to the new state or a foreign country to the county sheriff with whom the person last registered in Washington state.               (b) It is an affirmative defense to a charge that the person failed to send a notice at least fourteen days in advance of moving as required under (a) of this subsection that the person did not know the location of his or her new residence at least fourteen days before moving. The defendant must establish the defense by a preponderance of the evidence and, to prevail on the defense, must also prove by a preponderance that the defendant sent the required notice within twenty-four hours of determining the new address.     (5) The county sheriff shall obtain a photograph of the individual and shall obtain a copy of the individual's fingerprints.               (6) "Sex offense" for the purpose of RCW 9A.44.130, 10.01.200, 43.43.540, 70.48.470, and 72.09.330 means any offense defined as a sex offense by RCW 9.94A.030 and any violation of RCW 9.68A.090 or 9A.44.096 as well as any gross misdemeanor that is, under chapter 9A.28 RCW, a criminal attempt, criminal solicitation, or criminal conspiracy to commit an offense that is classified as a sex offense under RCW 9.94A.030.       (7) A person who knowingly fails to register or who moves without notifying the county sheriff as required by this section is guilty of a class C felony if the crime for which the individual was convicted was a ((class A)) felony or a federal or out-of-state conviction for an offense that under the laws of this state would be a((class A)) felony. If the crime was other than a ((class A)) felony or a federal or out-of-state conviction for an offense that under the laws of this state would be other than a ((class A)) felony, violation of this section is a gross misdemeanor."       Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senators Goings, Long and Hargrove on page 21, after line 31, to House Bill No. 1924.

      The motion by Senator Roach carried and the amendment was adopted.

MOTION

      Senator Roach moved that the following amendment by Senators Rossi, Hargrove, Fairley and Roach be adopted:

      On page 21, after line 31, insert the following:      "Sec. 3 RCW 9.94A.030 and 1996 c 289 s 1 and 1996 c 275 s 5 are each reenacted and amended to read as follows:          Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.      (1) "Collect," or any derivative thereof, "collect and remit," or "collect and deliver," when used with reference to the department of corrections, means that the department is responsible for monitoring and enforcing the offender's sentence with regard to the legal financial obligation, receiving payment thereof from the offender, and, consistent with current law, delivering daily the entire payment to the superior court clerk without depositing it in a departmental account.         (2) "Commission" means the sentencing guidelines commission.      (3) "Community corrections officer" means an employee of the department who is responsible for carrying out specific duties in supervision of sentenced offenders and monitoring of sentence conditions.    (4) "Community custody" means that portion of an inmate's sentence of confinement in lieu of earned early release time or imposed pursuant to RCW 9.94A.120 (6), (8), or (10) served in the community subject to controls placed on the inmate's movement and activities by the department of corrections.        (5) "Community placement" means that period during which the offender is subject to the conditions of community custody and/or postrelease supervision, which begins either upon completion of the term of confinement (postrelease supervision) or at such time as the offender is transferred to community custody in lieu of earned early release. Community placement may consist of entirely community custody, entirely postrelease supervision, or a combination of the two.              (6) "Community service" means compulsory service, without compensation, performed for the benefit of the community by the offender.       (7) "Community supervision" means a period of time during which a convicted offender is subject to crime-related prohibitions and other sentence conditions imposed by a court pursuant to this chapter or RCW 16.52.200(6) or 46.61.524. For first-time offenders, the supervision may include crime-related prohibitions and other conditions imposed pursuant to RCW 9.94A.120(5). For purposes of the interstate compact for out-of-state supervision of parolees and probationers, RCW 9.95.270, community supervision is the functional equivalent of probation and should be considered the same as probation by other states.                  (8) "Confinement" means total or partial confinement as defined in this section.  (9) "Conviction" means an adjudication of guilt pursuant to Titles 10 or 13 RCW and includes a verdict of guilty, a finding of guilty, and acceptance of a plea of guilty.    (10) "Court-ordered legal financial obligation" means a sum of money that is ordered by a superior court of the state of Washington for legal financial obligations which may include restitution to the victim, statutorily imposed crime victims' compensation fees as assessed pursuant to RCW 7.68.035, court costs, county or interlocal drug funds, court-appointed attorneys' fees, and costs of defense, fines, and any other financial obligation that is assessed to the offender as a result of a felony conviction. Upon conviction for vehicular assault while under the influence of intoxicating liquor or any drug, RCW 46.61.522(1)(b), or vehicular homicide while under the influence of intoxicating liquor or any drug, RCW 46.61.520(1)(a), legal financial obligations may also include payment to a public agency of the expense of an emergency response to the incident resulting in the conviction, subject to the provisions in RCW 38.52.430.      (11) "Crime-related prohibition" means an order of a court prohibiting conduct that directly relates to the circumstances of the crime for which the offender has been convicted, and shall not be construed to mean orders directing an offender affirmatively to participate in rehabilitative programs or to otherwise perform affirmative conduct.          (12)(a) "Criminal history" means the list of a defendant's prior convictions, whether in this state, in federal court, or elsewhere. The history shall include, where known, for each conviction (i) whether the defendant has been placed on probation and the length and terms thereof; and (ii) whether the defendant has been incarcerated and the length of incarceration. (b) "Criminal history" shall always include juvenile convictions for sex offenses and serious violent offenses and shall also include a defendant's other prior convictions in juvenile court if: (i) The conviction was for an offense which is a felony or a serious traffic offense and is criminal history as defined in RCW 13.40.020(9); (ii) the defendant was fifteen years of age or older at the time the offense was committed; and (iii) with respect to prior juvenile class B and C felonies or serious traffic offenses, the defendant was less than twenty-three years of age at the time the offense for which he or she is being sentenced was committed.       (13) "Day fine" means a fine imposed by the sentencing judge that equals the difference between the offender's net daily income and the reasonable obligations that the offender has for the support of the offender and any dependents.                (14) "Day reporting" means a program of enhanced supervision designed to monitor the defendant's daily activities and compliance with sentence conditions, and in which the defendant is required to report daily to a specific location designated by the department or the sentencing judge.                 (15) "Department" means the department of corrections.       (16) "Determinate sentence" means a sentence that states with exactitude the number of actual years, months, or days of total confinement, of partial confinement, of community supervision, the number of actual hours or days of community service work, or dollars or terms of a legal financial obligation. The fact that an offender through "earned early release" can reduce the actual period of confinement shall not affect the classification of the sentence as a determinate sentence.              (17) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of any amount required by law to be withheld. For the purposes of this definition, "earnings" means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonuses, or otherwise, and, notwithstanding any other provision of law making the payments exempt from garnishment, attachment, or other process to satisfy a court-ordered legal financial obligation, specifically includes periodic payments pursuant to pension or retirement programs, or insurance policies of any type, but does not include payments made under Title 50 RCW, except as provided in RCW 50.40.020 and 50.40.050, or Title 74 RCW.      (18) "Drug offense" means:    (a) Any felony violation of chapter 69.50 RCW except possession of a controlled substance (RCW 69.50.401(d)) or forged prescription for a controlled substance (RCW 69.50.403);     (b) Any offense defined as a felony under federal law that relates to the possession, manufacture, distribution, or transportation of a controlled substance; or            (c) Any out-of-state conviction for an offense that under the laws of this state would be a felony classified as a drug offense under (a) of this subsection.                  (19) "Escape" means:                (a) Escape in the first degree (RCW 9A.76.110), escape in the second degree (RCW 9A.76.120), willful failure to return from furlough (RCW 72.66.060), willful failure to return from work release (RCW 72.65.070), or willful failure to be available for supervision by the department while in community custody (RCW 72.09.310); or             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as an escape under (a) of this subsection.       (20) "Felony traffic offense" means:      (a) Vehicular homicide (RCW 46.61.520), vehicular assault (RCW 46.61.522), eluding a police officer (RCW 46.61.024), or felony hit-and-run injury-accident (RCW 46.52.020(4)); or                (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a felony traffic offense under (a) of this subsection.   (21) "Fines" means the requirement that the offender pay a specific sum of money over a specific period of time to the court.            (22)(a) "First-time offender" means any person who is convicted of a felony (i) not classified as a violent offense or a sex offense under this chapter, or (ii) that is not the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance classified in schedule I or II that is a narcotic drug, nor the manufacture, delivery, or possession with intent to deliver methamphetamine, its salts, isomers, and salts of its isomers as defined in RCW 69.50.206(d)(2), nor the selling for profit of any controlled substance or counterfeit substance classified in schedule I, RCW 69.50.204, except leaves and flowering tops of marihuana, and except as provided in (b) of this subsection, who previously has never been convicted of a felony in this state, federal court, or another state, and who has never participated in a program of deferred prosecution for a felony offense.              (b) For purposes of (a) of this subsection, a juvenile adjudication for an offense committed before the age of fifteen years is not a previous felony conviction except for adjudications of sex offenses and serious violent offenses.          (23) "Most serious offense" means any of the following felonies or a felony attempt to commit any of the following felonies, as now existing or hereafter amended:            (a) Any felony defined under any law as a class A felony or criminal solicitation of or criminal conspiracy to commit a class A felony;              (b) Assault in the second degree;      (c) Assault of a child in the second degree;            (d) Child molestation in the second degree;           (e) Controlled substance homicide;      (f) Extortion in the first degree;              (g) Incest when committed against a child under age fourteen;              (h) Indecent liberties;      (i) Kidnapping in the second degree;      (j) Leading organized crime;  (k) Manslaughter in the first degree;      (l) Manslaughter in the second degree;               (m) Promoting prostitution in the first degree;  (n) Rape in the third degree;   (o) Robbery in the second degree;      (p) Sexual exploitation;          (q) Vehicular assault;             (r) Vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;    (s) Any other class B felony offense with a finding of sexual motivation, as "sexual motivation" is defined under this section;              (t) Any other felony with a deadly weapon verdict under RCW 9.94A.125;     (u) Any felony offense in effect at any time prior to December 2, 1993, that is comparable to a most serious offense under this subsection, or any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a most serious offense under this subsection;           (v)(i) A prior conviction for indecent liberties under RCW 9A.88.100(1) (a), (b), and (c), chapter 260, Laws of 1975 1st ex. sess. as it existed until July 1, 1979, RCW 9A.44.100(1) (a), (b), and (c) as it existed from July 1, 1979, until June 11, 1986, and RCW 9A.44.100(1) (a), (b), and (d) as it existed from June 11, 1986, until July 1, 1988;                 (ii) A prior conviction for indecent liberties under RCW 9A.44.100(1)(c) as it existed from June 11, 1986, until July 1, 1988, if: (A) The crime was committed against a child under the age of fourteen; or (B) the relationship between the victim and perpetrator is included in the definition of indecent liberties under RCW 9A.44.100(1)(c) as it existed from July 1, 1988, through the effective date of this section or RCW 9A.44.100(1) (d) or (e) as it existed from July 25, 1993, through the effective date of this section.      (24) "Nonviolent offense" means an offense which is not a violent offense.         (25) "Offender" means a person who has committed a felony established by state law and is eighteen years of age or older or is less than eighteen years of age but whose case has been transferred by the appropriate juvenile court to a criminal court pursuant to RCW 13.40.110. Throughout this chapter, the terms "offender" and "defendant" are used interchangeably.   (26) "Partial confinement" means confinement for no more than one year in a facility or institution operated or utilized under contract by the state or any other unit of government, or, if home detention or work crew has been ordered by the court, in an approved residence, for a substantial portion of each day with the balance of the day spent in the community. Partial confinement includes work release, home detention, work crew, and a combination of work crew and home detention as defined in this section.            (27) "Persistent offender" is an offender who:       (a)(i) Has been convicted in this state of any felony considered a most serious offense; and                (ii) Has, before the commission of the offense under (a) of this subsection, been convicted as an offender on at least two separate occasions, whether in this state or elsewhere, of felonies that under the laws of this state would be considered most serious offenses and would be included in the offender score under RCW 9.94A.360; provided that of the two or more previous convictions, at least one conviction must have occurred before the commission of any of the other most serious offenses for which the offender was previously convicted; or               (b)(i) Has been convicted of (A) rape in the first degree, rape in the second degree, or indecent liberties by forcible compulsion; (B) murder in the first degree, murder in the second degree, kidnapping in the first degree, kidnapping in the second degree, assault in the first degree, assault in the second degree, or burglary in the first degree, with a finding of sexual motivation; or (C) an attempt to commit any crime listed in this subsection (27)(b)(i); and                     (ii) Has, before the commission of the offense under (b)(i) of this subsection, been convicted as an offender on at least one occasion, whether in this state or elsewhere, of an offense listed in (b)(i) of this subsection.      (28) "Postrelease supervision" is that portion of an offender's community placement that is not community custody.           (29) "Restitution" means the requirement that the offender pay a specific sum of money over a specific period of time to the court as payment of damages. The sum may include both public and private costs. The imposition of a restitution order does not preclude civil redress.           (30) "Serious traffic offense" means:     (a) Driving while under the influence of intoxicating liquor or any drug (RCW 46.61.502), actual physical control while under the influence of intoxicating liquor or any drug (RCW 46.61.504), reckless driving (RCW 46.61.500), or hit-and-run an attended vehicle (RCW 46.52.020(5)); or          (b) Any federal, out-of-state, county, or municipal conviction for an offense that under the laws of this state would be classified as a serious traffic offense under (a) of this subsection.    (31) "Serious violent offense" is a subcategory of violent offense and means:      (a) Murder in the first degree, homicide by abuse, murder in the second degree, assault in the first degree, kidnapping in the first degree, or rape in the first degree, assault of a child in the first degree, or an attempt, criminal solicitation, or criminal conspiracy to commit one of these felonies; or    (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a serious violent offense under (a) of this subsection.      (32) "Sentence range" means the sentencing court's discretionary range in imposing a nonappealable sentence.                 (33) "Sex offense" means:                (a) A felony that is a violation of chapter 9A.44 RCW or RCW 9A.64.020 or 9.68A.090 or a felony that is, under chapter 9A.28 RCW, a criminal attempt, criminal solicitation, or criminal conspiracy to commit such crimes;                 (b) A felony with a finding of sexual motivation under RCW 9.94A.127 or 13.40.135; or     (c) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a sex offense under (a) of this subsection.   (34) "Sexual motivation" means that one of the purposes for which the defendant committed the crime was for the purpose of his or her sexual gratification.          (35) "Total confinement" means confinement inside the physical boundaries of a facility or institution operated or utilized under contract by the state or any other unit of government for twenty-four hours a day, or pursuant to RCW 72.64.050 and 72.64.060.     (36) "Transition training" means written and verbal instructions and assistance provided by the department to the offender during the two weeks prior to the offender's successful completion of the work ethic camp program. The transition training shall include instructions in the offender's requirements and obligations during the offender's period of community custody.      (37) "Victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged.       (38) "Violent offense" means:                (a) Any of the following felonies, as now existing or hereafter amended: Any felony defined under any law as a class A felony or an attempt to commit a class A felony, criminal solicitation of or criminal conspiracy to commit a class A felony, manslaughter in the first degree, manslaughter in the second degree, indecent liberties if committed by forcible compulsion, kidnapping in the second degree, arson in the second degree, assault in the second degree, assault of a child in the second degree, extortion in the first degree, robbery in the second degree, vehicular assault, and vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;              (b) Any conviction for a felony offense in effect at any time prior to July 1, 1976, that is comparable to a felony classified as a violent offense in (a) of this subsection; and          (c) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a violent offense under (a) or (b) of this subsection.    (39) "Work crew" means a program of partial confinement consisting of civic improvement tasks for the benefit of the community of not less than thirty-five hours per week that complies with RCW 9.94A.135. The civic improvement tasks shall have minimal negative impact on existing private industries or the labor force in the county where the service or labor is performed. The civic improvement tasks shall not affect employment opportunities for people with developmental disabilities contracted through sheltered workshops as defined in RCW 82.04.385. Only those offenders sentenced to a facility operated or utilized under contract by a county or the state are eligible to participate on a work crew. Offenders sentenced for a sex offense as defined in subsection (33) of this section are not eligible for the work crew program.                 (40) "Work ethic camp" means an alternative incarceration program designed to reduce recidivism and lower the cost of corrections by requiring offenders to complete a comprehensive array of real-world job and vocational experiences, character-building work ethics training, life management skills development, substance abuse rehabilitation, counseling, literacy training, and basic adult education.             (41) "Work release" means a program of partial confinement available to offenders who are employed or engaged as a student in a regular course of study at school. Participation in work release shall be conditioned upon the offender attending work or school at regularly defined hours and abiding by the rules of the work release facility.               (42) "Home detention" means a program of partial confinement available to offenders wherein the offender is confined in a private residence subject to electronic surveillance."    Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senators Rossi, Hargrove, Fairley and Roach on page 21, after line 31, to House Bill No. 1924.

      The motion by Senator Roach carried and the amendment was adopted.

MOTIONS

      On motion of Senator Roach, the following title amendments were considered simultaneously and were adopted:

      On page 1, line 2 of the title, after "9.94A.320" strike "and 9.94A.120" and insert ", 9.94A.120, and 9.94A.030"               On page 1, line 2 of the title, after ".320" strike all material through "120" and insert ", 9.94A.120, and 9.94A.130"

MOTION

      On motion of Senator Roach, the rules were suspended, House Bill No. 1924, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1924, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1924, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Bauer and Hargrove - 2.          HOUSE BILL NO. 1924, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

STATEMENT FOR THE JOURNAL

      I was off the floor before the final gavel and I wish to record my support of Substitute House Bill No. 1190. I would have voted 'yes' had I been present.

SENATOR PAM ROACH, Thirty-first District

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1190, by House Committee on Government Administration (originally sponsored by Representatives Backlund, Huff, Lambert, McMorris, Cairnes, Honeyford, Sherstad, McDonald, D. Schmidt and Wensman)

Requiring preliminary compliance reviews of performance audits and consideration of performance audit recommendations in budget preparation.

      The bill was read the second time.

MOTIONS

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

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 43.88.090 and 1996 c 317 s 10 are each amended to read as follows:  (1) For purposes of developing budget proposals to the legislature, the governor shall have the power, and it shall be the governor's duty, to require from proper agency officials such detailed estimates and other information in such form and at such times as the governor shall direct. The estimates for the legislature and the judiciary shall be transmitted to the governor and shall be included in the budget without revision. The estimates for state pension contributions shall be based on the rates provided in chapter 41.45 RCW. Copies of all such estimates shall be transmitted to the standing committees on ways and means of the house and senate at the same time as they are filed with the governor and the office of financial management.  The estimates shall include statements or tables which indicate, by agency, the state funds which are required for the receipt of federal matching revenues. The estimates shall be revised as necessary to reflect legislative enactments and adopted appropriations and shall be included with the initial biennial allotment submitted under RCW 43.88.110. The estimates must reflect that the agency considered any alternatives to reduce costs or improve service delivery identified in the findings of a performance audit of the agency by the joint legislative audit and review committee. Nothing in this subsection requires performance audit findings to be published as part of the budget.         (2) Each state agency shall define its mission and establish measurable goals for achieving desirable results for those who receive its services and the taxpayers who pay for those services. Each agency shall also develop clear strategies and timelines to achieve its goals. This section does not require an agency to develop a new mission or goals in place of identifiable missions or goals that meet the intent of this section. The mission and goals of each agency must conform to statutory direction and limitations.    (3) For the purpose of assessing program performance, each state agency shall establish program objectives for each major program in its budget. The objectives must be consistent with the missions and goals developed under this section. The objectives must be expressed to the extent practicable in outcome-based, objective, and measurable form unless an exception to adopt a different standard is granted by the office of financial management and approved by the legislative committee on performance review. The office of financial management shall provide necessary professional and technical assistance to assist state agencies in the development of strategic plans that include the mission of the agency and its programs, measurable goals, strategies, and performance measurement systems.        (4) Each state agency shall adopt procedures for continuous self-assessment of each program and activity, using the mission, goals, objectives, and measurements required under subsections (2) and (3) of this section.               (5) It is the policy of the legislature that each agency's budget proposals must be directly linked to the agency's stated mission and program goals and objectives. Consistent with this policy, agency budget proposals must include integration of performance measures that allow objective determination of a program's success in achieving its goals. The office of financial management shall develop a plan to merge the budget development process with agency performance assessment procedures. The plan must include a schedule to integrate agency strategic plans and performance measures into agency budget requests and the governor's budget proposal over three fiscal biennia. The plan must identify those agencies that will implement the revised budget process in the 1997-1999 biennium, the 1999-2001 biennium, and the 2001-2003 biennium. In consultation with the legislative fiscal committees, the office of financial management shall recommend statutory and procedural modifications to the state's budget, accounting, and reporting systems to facilitate the performance assessment procedures and the merger of those procedures with the state budget process. The plan and recommended statutory and procedural modifications must be submitted to the legislative fiscal committees by September 30, 1996.  (6) In the year of the gubernatorial election, the governor shall invite the governor-elect or the governor-elect's designee to attend all hearings provided in RCW 43.88.100; and the governor shall furnish the governor-elect or the governor-elect's designee with such information as will enable the governor-elect or the governor-elect's designee to gain an understanding of the state's budget requirements. The governor-elect or the governor-elect's designee may ask such questions during the hearings and require such information as the governor-elect or the governor-elect's designee deems necessary and may make recommendations in connection with any item of the budget which, with the governor-elect's reasons therefor, shall be presented to the legislature in writing with the budget document. Copies of all such estimates and other required information shall also be submitted to the standing committees on ways and means of the house and senate.                Sec. 2. RCW 44.28.091 and 1996 c 288 s 14 are each amended to read as follows:             (1) No later than nine months after the final performance audit has been transmitted by the joint committee to the appropriate standing committees of the house of representatives and the senate, the ((joint committee in consultation with the standing committees may)) agency or local government shall produce a preliminary compliance report on ((the agency's or local government's)) its compliance with the final performance audit recommendations and submit it to the joint committee. ((The agency or local government may attach its comments to the joint committee's preliminary compliance report as a separate addendum.)) At the request of the joint committee, the agency or local government shall periodically provide updates to the preliminary compliance report until the joint committee determines that the agency or local government has complied with the final performance audit recommendations to the joint committee's satisfaction.            (2) ((Within three months after the issuance of the preliminary compliance report,)) The joint committee may hold ((at least one)) public hearings and receive public testimony ((regarding the findings and recommendations contained in the preliminary compliance report. The joint committee may waive the public hearing requirement if the preliminary compliance report demonstrates that the agency or local government is in compliance with the audit recommendations)) if the agency or local government is not making satisfactory progress in achieving compliance. The joint committee shall issue any final compliance report ((within four weeks after the public hearing or hearings)) after an agency or local government has satisfactorily complied with the final audit recommendations. The legislative auditor shall transmit the final compliance report in the same manner as a final performance audit is transmitted under RCW 44.28.088."           On motion of Senator West, the following title amendment was adopted:

      On page 1, line 1 of the title, after "audits;" strike the remainder of the title and insert "and amending RCW 43.88.090 and 44.28.091."

MOTION

      On motion of Senator West, the rules were suspended, Substitute House Bill No. 1190, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

      On motion of Senator Swecker, Senator Rossi was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1190, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1190, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 2; Excused, 3.

      Voting yea: Senators Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.        Absent: Senators Anderson and Roach - 2.      Excused: Senators Bauer, Hargrove and Rossi - 3.               SUBSTITUTE HOUSE BILL NO. 1190, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1102, by Representatives Lambert, H. Sommers, Cooke, Carlson, Conway, Ogden and Mason (by request of Joint Committee on Pension Policy)

Retirement benefits based on excess compensation.

      The bill was read the second time.

MOTION

      On motion of Senator West, the rules were suspended, House Bill No. 1102 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1102.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1102 and the bill passed the Senate by the following vote:

Yeas, 44; Nays, 0; Absent, 2; Excused, 3.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.        Absent: Senators Finkbeiner and McDonald - 2.              Excused: Senators Bauer, Hargrove and Rossi - 3.       HOUSE BILL NO. 1102, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      At 11:58 a.m., on motion of Senator Johnson, the Senate recessed until 1:00 p.m.

      The Senate was called to order at 1:00 p.m. by President Owen.

SECOND READING

GUBERNATORIAL APPOINTMENTS

MOTION

      On motion of Senator Snyder, Gubernatorial Appointment No. 9145, Gregory Costello, as a member of the Forest Practices Appeals Board, was confirmed.

APPOINTMENT OF GREGORY COSTELLO

      The Secretary called the roll and the appointment was confirmed by the following vote: Yeas, 33; Nays, 1; Absent, 13; Excused, 2.

      Voting yea: Senators Anderson, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hochstatter, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, Morton, Newhouse, Patterson, Prentice, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, Wojahn, Wood and Zarelli - 33.               Voting nay: Senator Benton - 1.            Absent: Senators Finkbeiner, Hale, Haugen, Heavey, Horn, Loveland, McDonald, Oke, Prince, Schow, Strannigan, West and Winsley - 13.                  Excused: Senators Bauer and Hargrove - 2.

MOTION

      On motion of Senator Wood, Gubernatorial Appointment No. 9195, William Robinson, as a member of the Spokane Joint Center for Higher Education, was confirmed.

APPOINTMENT OF WILLIAM ROBINSON

      The Secretary called the roll and the appointment was confirmed by the following vote: Yeas, 39; Nays, 1; Absent, 7; Excused, 2.

      Voting yea: Senators Anderson, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Wojahn, Wood and Zarelli - 39.            Voting nay: Senator Benton - 1.      Absent: Senators Finkbeiner, Haugen, Heavey, Roach, Schow, Strannigan and Winsley - 7.              Excused: Senators Bauer and Hargrove - 2.

MOTION

      On motion of Senator Franklin, Senator Heavey was excused.

MOTION

      On motion of Senator Long, Gubernatorial Appointment No. 9177, Pam Lucas, as a member of the State Hospital, Eastern Washington Advisory Board, was confirmed.

APPOINTMENT OF PAM LUCAS

      The Secretary called the roll and the appointment was confirmed by the following vote: Yeas, 44; Nays, 1; Absent, 1; Excused, 3.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.                    Voting nay: Senator Finkbeiner - 1.                 Absent: Senator Strannigan - 1.             Excused: Senators Bauer, Hargrove and Heavey - 3.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1277, by House Committee on Finance (originally sponsored by Representatives B. Thomas, Dunshee, Carrell, Thompson and D. Schmidt) (by request of Department of Revenue)

Providing for confidentiality of property tax information.

      The bill was read the second time.

MOTIONS

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

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 84.08 RCW to read as follows:               (1) For purposes of this section, "tax information" means confidential income data and proprietary business information obtained by the department in the course of carrying out the duties now or hereafter imposed upon it in this title that has been communicated in confidence in connection with the assessment of property and that has not been publicly disseminated by the taxpayer, the disclosure of which would be either highly offensive to a reasonable person and not a legitimate concern to the public or would result in an unfair competitive disadvantage to the taxpayer.          (2) Tax information is confidential and privileged, and except as authorized by this section, neither the department nor any other person may disclose tax information.    (3) Subsection (2) of this section, however, does not prohibit the department from:     (a) Disclosing tax information to any county assessor or county treasurer;           (b) Disclosing tax information in a civil or criminal judicial proceeding or an administrative proceeding in respect to taxes or penalties imposed under this title or Title 82 RCW or in respect to assessment or valuation for tax purposes of the property to which the information or facts relate;              (c) Disclosing tax information with the written permission of the taxpayer;                 (d) Disclosing tax information to the proper officer of the tax department of any state responsible for the imposition or collection of property taxes, or for the valuation of property for tax purposes, if the other state grants substantially similar privileges to the proper officers of this state;               (e) Disclosing tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under chapter 42.17 RCW or is a document maintained by a court of record not otherwise prohibited from disclosure;                 (f) Disclosing tax information to a peace officer as defined in RCW 9A.04.110 or county prosecutor, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecutor who receives the tax information may disclose the tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the tax information originally was sought; or             (g) Disclosing information otherwise available under chapter 42.17 RCW.                 (4) A violation of this section constitutes a gross misdemeanor.       Sec. 2. RCW 84.40.020 and 1973 c 69 s 1 are each amended to read as follows:         All real property in this state subject to taxation shall be listed and assessed every year, with reference to its value on the first day of January of the year in which it is assessed. Such listing and all supporting documents and records shall be open to public inspection during the regular office hours of the assessor's office: PROVIDED, That confidential income data is hereby exempted from public inspection ((pursuant to RCW 42.17.310)) as noted in RCW 42.17.260 and 42.17.310. All personal property in this state subject to taxation shall be listed and assessed every year, with reference to its value and ownership on the first day of January of the year in which it is assessed: PROVIDED, That if the stock of goods, wares, merchandise or material, whether in a raw or finished state or in process of manufacture, owned or held by any taxpayer on January 1 of any year does not fairly represent the average stock carried by such taxpayer, such stock shall be listed and assessed upon the basis of the monthly average of stock owned or held by such taxpayer during the preceding calendar year or during such portion thereof as the taxpayer was engaged in business.             Sec. 3. RCW 84.40.340 and 1973 1st ex.s. c 74 s 1 are each amended to read as follows:          For the purpose of verifying any list, statement, or schedule required to be furnished to the assessor by any taxpayer, any assessor or his trained and qualified deputy at any reasonable time may visit, investigate and examine any personal property, and for this purpose the records, accounts and inventories also shall be subject to any such visitation, investigation and examination which shall aid in determining the amount and valuation of such property. Such powers and duties may be performed at any office of the taxpayer in this state, and the taxpayer shall furnish or make available all such information pertaining to property in this state to the assessor although the records may be maintained at any office outside this state.      Any information or facts obtained pursuant to this section shall be used by the assessor only for the purpose of determining the assessed valuation of the taxpayer's property: PROVIDED, That such information or facts shall also be made available to the department of revenue upon request for the purpose of determining any sales or use tax liability with respect to personal property, and except in a ((court action pertaining)) civil or criminal judicial proceeding or an administrative proceeding in respect to penalties imposed pursuant to RCW 84.40.130, to such sales or use taxes, or to the assessment or valuation for tax purposes of the property to which such information and facts relate, shall not be disclosed by the assessor or the department of revenue without the permission of the taxpayer to any person other than public officers or employees whose duties relate to valuation of property for tax purposes or to the imposition and collection of sales and use taxes, and any violation of this secrecy provision shall constitute a gross misdemeanor.            Sec. 4. RCW 42.17.310 and 1996 c 305 s 2, 1996 c 253 s 302, 1996 c 191 s 88, and 1996 c 80 s 1 are each reenacted and amended to read as follows:         (1) The following are exempt from public inspection and copying:     (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.         (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.     (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by section 1 of this act, RCW 82.32.330, 84.40.020, or 84.40.340 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.    (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.             (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.      (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.       (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.      (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.   (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.    (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.                (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.              (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.              (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (ii) highway construction or improvement as required by RCW 47.28.070.      (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.               (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW, and by persons pertaining to export projects pursuant to RCW 43.23.035.                 (p) Financial disclosures filed by private vocational schools under chapters 28B.85 and 28C.10 RCW.      (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.          (r) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency.      (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.       (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.         (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.         (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.     (w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).       (x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.    (y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.              (z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.       (aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.          (bb) Financial and valuable trade information under RCW 51.36.120.      (cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or 70.123.075 or a rape crisis center as defined in RCW 70.125.030.                (dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.      (ee) Investigative records compiled by an employing agency conducting a current investigation of a possible unfair practice under chapter 49.60 RCW or of a possible violation of other federal, state, or local laws prohibiting discrimination in employment.              (ff) Business related information protected from public inspection and copying under RCW 15.86.110.     (gg) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW.        (hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510, regardless of which agency is in possession of the information and documents.      (ii) Personal information in files maintained in a data base created under RCW 43.07.360.                 (jj) Names of individuals residing in emergency or transitional housing that are furnished to the department of revenue or a county assessor in order to substantiate a claim for property tax exemption under RCW 84.36.043.           (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.         (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.      (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld."      On motion of Senator West, the rules were suspended, Substitute House Bill No. 1277, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1277, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1277, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45. Absent: Senator Strannigan - 1.        Excused: Senators Bauer, Hargrove and Heavey - 3.            SUBSTITUTE HOUSE BILL NO. 1277, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1819, by Representatives Benson, Grant, L. Thomas and Zellinsky

Establishing the confidentiality of voluntary compliance efforts by financial institutions.

      The bill was read the second time.

MOTIONS

      On motion of Senator Prentice, the following amendment was adopted:

      On page 2, line 33, strike "federal or"    On motion of Senator Winsley, the rules were suspended, House Bill No. 1819, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1819, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1819, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Bauer and Hargrove - 2.          HOUSE BILL NO. 1819, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6094, by Senators McCaslin and Haugen (by request of Governor Locke)

Changing growth management provisions.

      The bill was read the second time.

MOTION

      Senator Anderson moved that the following amendments by Senators McCaslin, Haugen, Anderson, Patterson and Fraser be considered simultaneously and be adopted:

      On page 1, line 8, after "1." insert "A new section is added to chapter 36.70A RCW to read as follows:"            On page 1, line 11, after "importance of" insert "agriculture, forestry, and"        On page 1, line 13, after "economies" insert "and forest uses that are located outside of designated resource lands"            On page 1, line 19, after "lifestyles;" insert "will encourage the economic prosperity of rural residents;"      On page 2, line 7, after "life" insert "The legislature recognizes that there will be a variety of interpretations by counties of how best to implement a rural element, reflecting the diverse needs and local circumstances found across the state. RCW 36.70A.070(5) provides a framework for local elected officials to make these determinations. References to both wildlife and water are intended in RCW 36.70A.030 and 36.70A.070 to acknowledge their importance as features or components of rural character. It is expected that these matters will be addressed in comprehensive plans, but that counties may not necessarily need to adopt new regulations to account adequately for them in establishing a pattern of land use and development for rural areas."                On page 2, line 24, after "planning" insert ", harmonizing the planning goals of this chapter,"  On page 4, line 20, after "county" insert "in the rural element of its comprehensive plan"               On page 4, line 23, after "lifestyles" strike "and" and insert ","           On page 4, line 24, after "economies," strike all material through "handicrafts" on line 25, and insert "and opportunities to both live and work in rural areas"               On page 5, line 3, after "element." insert "Rural development does not refer to agriculture or forestry activities that may be conducted in rural areas"    On page 7, line 22, after "Rural" strike "development" and insert "element"           On page 7, line 34, after "such" strike all material through "development" and insert "lands and)) rural development, forestry, and agriculture in rural areas. The rural element shall"               On page 7, line 39, strike "and nonresidential uses" and insert "and nonresidential rural development, other than cottage industries"                 On page 8, line 1, after "serve" insert "and provide jobs for"      On page 8, line 1, after "population" strike "and" and insert "or serve"                 On page 8, at the beginning of line 31, strike all material through "and"     On page 8, line 33, after "subsection" insert ". An industrial area is not required to be principally designed to serve the existing and protected rural population as required by (b) of this subsection"           On page 8, line 38, after "development." insert "A small-scale recreation or tourist use is not required to be principally designed to serve the existing and projected rural population as required by (b) of this subsection."       On page 9, line 4, after "uses" insert "or new development of isolated cottage industries"               On page 9, beginning on line 5, after "uses" strike all material through "36.70A.040" on line 7 and insert ", but do provide job opportunities for rural residents"      On page 9, line 16, after "that" strike ", as of July 1, 1990,"  On page 9, line 28, after "sprawl" insert ";             (v) For purposes of (d) of this subsection, an existing area or existing use is one that was in existence:              (A) On July 1, 1990, in a county that was initially required to plan under all of the provisions of this chapter;        (B) On the date the county adopted a resolution under RCW 36.70A.040(2), in a county that is planning under all of the provisions of this chapter under RCW 36.70A.040(2); or          (C) On the date the office of financial management certifies the county's population as provided in RCW 36.70A.040(5), in a county that is planning under all of the provisions of this chapter pursuant to RCW 36.70A.040(5)"                On page 9, line 29, strike "(f)" and insert "(e)"      On page 24, beginning on line 22, after "goals of" strike all material through "act)" on line 23 and insert "this chapter"     Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendments by Senators McCaslin, Haugen, Anderson, Patterson and Fraser on pages 1, 2, 4, 5, 7, 8 , 9, and 24, to Senate Bill No. 6094.

      The motion by Senator Anderson carried and the amendments were adopted.

MOTIONS

      On motion of Senator McCaslin, the following amendments by Senators McCaslin and Haugen were considered simultaneously and were adopted:

      On page 1, line 8, after "Sec. 1." insert "A new section is added to chapter 36.70A RCW to read as follows:"    On page 9, at the beginning of line 29, strike "(f)" and insert "(e)"           On page 22, line 3, after "receipt" insert "of the board's order"              On page 22, line 7, after "in" insert "subsection (2) of this section and"     On page 22, line 13, after "though" strike "it" and insert "the application"            On page 22, line 24, after "receipt" insert "of the board's order"             On page 22, line 26, after "receipt" insert "of the board's order"            On page 24, line 22, after "goals of" insert "this"    On page 24, at the beginning of line 23, strike all material through "act)"             On page 28, line 29, after "activity" strike ";"        On page 34, line 24, after "nonagricultural" insert ", nonforest,"           Senator McCaslin moved that the following amendments by Senators McCaslin and Haugen be considered simultaneously and be adopted:

      On page 21, beginning on line 24, after "decision" strike all material through "board" on line 25, and insert "((to superior court as provided in RCW 34.05.514 or 36.01.050 within thirty days of the final order of the board)) directly to the court of appeals for assignment by the chief presiding judge"            On page 39, after line 39, insert the following:      "Sec. 32. RCW 34.05.518 and 1995 c 382 s 5 are each amended to read as follows:  (1) The final decision of an administrative agency in an adjudicative proceeding under this chapter may be directly reviewed by the court of appeals either (a) upon certification by the superior court pursuant to this section or (b) if the final decision is from an environmental board as defined in subsection (3) of this section, upon acceptance by the court of appeals after a certificate of appealability has been filed by the environmental board that rendered the final decision.       (2) For direct review upon certification by the superior court, an application for direct review must be filed with the superior court within thirty days of the filing of the petition for review in superior court. The superior court may certify a case for direct review only if the judicial review is limited to the record of the agency proceeding and the court finds that:           (a) Fundamental and urgent issues affecting the future administrative process or the public interest are involved which require a prompt determination;                (b) Delay in obtaining a final and prompt determination of such issues would be detrimental to any party or the public interest;         (c) An appeal to the court of appeals would be likely regardless of the determination in superior court; and      (d) The appellate court's determination in the proceeding would have significant precedential value.                  Procedures for certification shall be established by court rule.                 (3)(a) For the purposes of direct review of final decisions of environmental boards, environmental boards include those boards identified in RCW 43.21B.005 ((and growth management hearings boards as identified in RCW 36.70A.250)).      (b) An environmental board may issue a certificate of appealability if it finds that delay in obtaining a final and prompt determination of the issues would be detrimental to any party or the public interest and either:             (i) Fundamental and urgent state-wide or regional issues are raised; or      (ii) The proceeding is likely to have significant precedential value.                  (4) The environmental board shall state in the certificate of appealability which criteria it applied, explain how that criteria was met, and file with the certificate a copy of the final decision.      (5) For an appellate court to accept direct review of a final decision of an environmental board, it shall consider the same criteria outlined in subsection (3) of this section.   (6) The procedures for direct review of final decisions of environmental boards include:     (a) Within thirty days after filing the petition for review with the superior court, a party may file an application for direct review with the superior court and serve the appropriate environmental board and all parties of record. The application shall request the environmental board to file a certificate of appealability.     (b) If an issue on review is the jurisdiction of the environmental board, the board may file an application for direct review on that issue.           (c) The environmental board shall have thirty days to grant or deny the request for a certificate of appealability and its decision shall be filed with the superior court and served on all parties of record.     (d) If a certificate of appealability is issued, the parties shall have fifteen days from the date of service to file a notice of discretionary review in the superior court, and the notice shall include a copy of the certificate of appealability and a copy of the final decision.         (e) If the appellate court accepts review, the certificate of appealability shall be transmitted to the court of appeals as part of the certified record.            (f) If a certificate of appealability is denied, review shall be by the superior court. The superior court's decision may be appealed to the court of appeals."             Renumber the remaining sections consecutively.      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendments by Senator McCaslin and Haugen on page 21, beginning on line 24, and page 39, after line 39, to Senate Bill No. 6094.

      The motion by Senator McCaslin carried and the amendments were adopted.

MOTIONS

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

      On page 1, beginning on line 4 of the title, after "36.93.170," strike "and 84.14.010" and insert "84.14.010, and 34.05.518"      On motion of Senator McCaslin, the rules were suspended, Engrossed Senate Bill No. 6094 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6094.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6094 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Voting nay: Senator Fairley - 1.            Excused: Senator Bauer - 1.  ENGROSSED SENATE BILL NO. 6094, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

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

MESSAGE FROM THE HOUSE

April 17, 1997

MR. PRESIDENT:

      The House has adopted the Report of the Conference Committee on SUBSTITUTE SENATE BILL NO. 6062 and has passed the bill as recommended by the Conference Committee., and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk,

REPORT OF CONFERENCE COMMITTEE

SSB 6062                                                                                                                                                                                       April 16, 1997

Includes “New Items”: YES

An Act relating to fiscal matters

      We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6062, have had the same under consideration and we recommend that:

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

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. (1) A budget is hereby adopted and, subject to the provisions set forth in the following sections, the several amounts specified in the following sections, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for salaries, wages, and other expenses of the agencies and offices of the state and for other specified purposes for the fiscal biennium beginning July 1, 1997, and ending June 30, 1999, except as otherwise provided, out of the several funds of the state hereinafter named.        (2) Unless the context clearly requires otherwise, the definitions in this section apply throughout this act.              (a) "Fiscal year 1998" or "FY 1998" means the fiscal year ending June 30, 1998.            (b) "Fiscal year 1999" or "FY 1999" means the fiscal year ending June 30, 1999.           (c) "FTE" means full time equivalent.      (d) "Lapse" or "revert" means the amount shall return to an unappropriated status.              (e) "Provided solely" means the specified amount may be spent only for the specified purpose. Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.PART IGENERAL GOVERNMENTNEW SECTION. Sec. 101. FOR THE HOUSE OF REPRESENTATIVESGeneral Fund Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$24,241,000General Fund Appropriation (FY 1999)$25,637,000TOTAL APPROPRIATION$49,878,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $75,000 of the general fund fiscal year 1998 appropriation and $75,000 of the general fund fiscal year 1999 appropriation are provided solely for the independent operations of the legislative ethics board. Expenditure decisions of the board, including employment of staff, shall be independent of the senate and house of representatives.  (2) $25,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Substitute Senate Concurrent Resolution No. 8408 (water policy report). If the concurrent resolution is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.         NEW SECTION. Sec. 102. FOR THE SENATEGeneral Fund Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .$ 19,357,000General Fund Appropriation (FY 1999)$20,663,000TOTAL APPROPRIATION$40,020,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $75,000 of the general fund fiscal year 1998 appropriation and $75,000 of the general fund fiscal year 1999 appropriation are provided solely for the independent operations of the legislative ethics board. Expenditure decisions of the board, including employment of staff, shall be independent of the senate and house of representatives.  (2) $25,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Substitute Senate Concurrent Resolution No. 8408 (water policy report). If the concurrent resolution is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.         (3) $100,000 of the general fund appropriation for fiscal year 1998 is provided solely for a study of financial aid and tuition by the senate committee on ways and means and the house of representatives committee on appropriations.             (a) The study shall report on the current usage and distribution of financial aid, investigate other resources available to financial aid recipients, and shall compare alternative methods of financial aid distribution and their impacts on the sectors of higher education and students served within each sector.      (b) The study shall also provide comparative data from other states on methods of establishing tuition rates and the relationship of tuition to state funding. NEW SECTION. Sec. 103. FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEEGeneral Fund Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,524,000General Fund Appropriation (FY 1999)$1,837,000TOTAL APPROPRIATION$3,361,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $103,000 of the general fund fiscal year 1998 appropriation and $412,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5633 (performance audit of the department of transportation). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.   (2) $50,000 of the general fund appropriation for fiscal year 1998 is provided solely to implement Substitute Senate Bill No. 5071 (school district territory). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.      NEW SECTION. Sec. 104. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEEGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,263,000General Fund Appropriation (FY 1999)$1,332,000TOTAL APPROPRIATION$2,595,000

      The appropriations in this section are subject to the following conditions and limitations: The committee shall conduct an inventory and examination of state data processing projects funded in this act and make recommendations to improve the accountability and legislative evaluation and oversight of these projects.   NEW SECTION. Sec. 105. FOR THE OFFICE OF THE STATE ACTUARYDepartment of Retirement Systems Expense Account         Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,681,000NEW SECTION. Sec. 106. FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEEGeneral Fund Appropriation (FY 1998). . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,430,000General Fund Appropriation (FY 1999)$5,430,000TOTAL APPROPRIATION$10,860,000

      The appropriations in this section are subject to the following conditions and limitations: $800,000 of the general fund fiscal year 1998 appropriation and $800,000 of the general fund fiscal year 1999 appropriation are provided solely for purchasing computers and related equipment on behalf of the senate, house of representatives, and statute law committee. Equipment shall be purchased only at the request of the customer agencies.  NEW SECTION. Sec. 107. FOR THE STATUTE LAW COMMITTEEGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$3,226,000General Fund Appropriation (FY 1999)$3,559,000TOTAL APPROPRIATION$6,785,000

      The appropriations in this section are subject to the following conditions and limitations: $35,000 of the general fund fiscal year 1998 appropriation and $36,000 of the general fund fiscal year 1999 appropriation are provided solely for the uniform legislation commission.      NEW SECTION. Sec. 108. FOR THE SUPREME COURTGeneral Fund Appropriation (FY 1998). . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .$4,640,000General Fund Appropriation (FY 1999)$4,813,000TOTAL APPROPRIATION$9,453,000NEW SECTION. Sec. 109. FOR THE LAW LIBRARYGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,769,000General Fund Appropriation (FY 1999)$1,785,000TOTAL APPROPRIATION$3,554,000NEW SECTION. Sec. 110. FOR THE COURT OF APPEALSGeneral Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,225,000General Fund Appropriation (FY 1999)$10,133,000TOTAL APPROPRIATION$20,358,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $271,000 of the general fund fiscal year 1999 appropriation is provided solely for an additional judge position and related support staff in division I, effective July 1, 1998.(2) $490,000 of the general fund fiscal year 1998 appropriation is provided solely for remodeling existing space in division I court facilities to house additional staff.NEW SECTION. Sec. 111. FOR THE COMMISSION ON JUDICIAL CONDUCTGeneral Fund Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$652,000General Fund Appropriation (FY 1999)$653,000TOTAL APPROPRIATION$1,305,000NEW SECTION. Sec. 112. FOR THE ADMINISTRATOR FOR THE COURTSGeneral Fund Appropriation (FY 1998). . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$12,723,000General Fund Appropriation (FY 1999)$12,595,000Public Safety and Education AccountAppropriation$31,134,000Judicial Information Systems AccountAppropriation. . . . .                . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,305,000TOTAL APPROPRIATION$72,757,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) Funding provided in the judicial information systems account appropriation shall be used for the operations and maintenance of technology systems that improve services provided by the supreme court, the court of appeals, the office of public defense, and the office of the administrator for the courts. $400,000 of the judicial information systems account appropriation is provided solely for the year 2000 date conversion.(2) No moneys appropriated in this section may be expended by the administrator for the courts for payments in excess of fifty percent of the employer contribution on behalf of superior courts judges for insurance and health care plans and federal social security and medicare and medical aid benefits. Consistent with Article IV, section 13 of the state Constitution and 1996 Attorney General's Opinion No. 2, it is the intent of the legislature that the cost of these employer contributions shall be shared equally between the state and county or counties in which the judges serve. The administrator for the courts shall continue to implement procedures for the collection and disbursement of these employer contributions.(3) $6,510,000 of the public safety and education account appropriation is provided solely for the continuation of treatment alternatives to street crimes (TASC) programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.(4) $125,000 of the public safety and education account appropriation is provided solely for the workload associated with the increase in state cases filed in Thurston county superior court.(5) $223,000 of the public safety and education account appropriation is provided solely for the gender and justice commission.(6) $308,000 of the public safety and education account appropriation is provided solely for the minority and justice commission.(7) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for judicial program enhancements. Within the funding provided in this subsection, the office of administrator of courts in consultation with the supreme court shall determine the program or programs to receive an enhancement.(8) $35,000 of the general fund fiscal year 1998 appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1771 (guardian certification). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.(9) $100,000 of the general fund fiscal year 1998 appropriation is provided solely for the Snohomish county preprosecution diversion program.NEW SECTION. Sec. 113. FOR THE OFFICE OF PUBLIC DEFENSEPublic Safety and Education AccountAppropriation. . . . . . . . . . . . . . . . $     12,187,000

      The appropriation in this section is subject to the following conditions and limitations:       (1) The cost of defending indigent offenders in death penalty cases has escalated significantly over the last four years. The office of public defense advisory committee shall analyze the current methods for reimbursing private attorneys and shall develop appropriate standards and criteria designed to control costs and still provide indigent defendants their constitutional right to representation at public expense. The office of public defense advisory committee shall report its findings and recommendations to the supreme court and the appropriate legislative committees by September 30, 1998.(2) $688,000 of the public safety and education account appropriation is provided solely to increase the reimbursement for private attorneys providing constitutionally mandated indigent defense in nondeath penalty cases.NEW SECTION. Sec. 114. FOR THE OFFICE OF THE GOVERNORGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,047,000General Fund--State Appropriation (FY 1999)$4,963,000General Fund--Federal Appropriation$188,000Water Quality Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                        700,000TOTAL APPROPRIATION$10,898,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $1,618,000 of the general fund--state appropriation for fiscal year 1998, $1,520,000 of the general fund--state appropriation for fiscal year 1999, $700,000 of the water quality account appropriation, and $188,000 of the general fund--federal appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items PSAT-01 through PSAT-06.                 (2) $12,000 of the general fund--state appropriation for fiscal year 1998 and $13,000 of the general fund--state appropriation for fiscal year 1999 are provided for the state law enforcement medal of honor committee for the purposes of recognizing qualified law enforcement officers as provided by chapter 41.72 RCW.                  NEW SECTION. Sec. 115. FOR THE LIEUTENANT GOVERNORGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$282,000General Fund Appropriation (FY 1999)$283,000TOTAL APPROPRIATION$565,000NEW SECTION. Sec. 116. FOR THE PUBLIC DISCLOSURE COMMISSIONGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                  1,457,000General Fund Appropriation (FY 1999)$1,206,000TOTAL APPROPRIATION$2,663,000

      The appropriations in this section are subject to the following conditions and limitations: $306,000 of the general fund fiscal year 1998 appropriation and $72,000 of the general fund fiscal year 1999 appropriation are provided solely for technology for customer service improvements.NEW SECTION. Sec. 117. FOR THE SECRETARY OF STATEGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$8,055,000General Fund Appropriation (FY 1999)$5,901,000Archives & Records Management Account--StateAppropriation$4,032,000Archives & Records Management Account--Private/LocalAppropriation. . . . . . . . . . . . . . . . . . . . . . . . $2,553,000Department of Personnel Service AccountAppropriation$663,000TOTAL APPROPRIATION$21,204,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $2,355,000 of the general fund appropriation for fiscal year 1998 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures.(2) $2,011,000 of the general fund appropriation for fiscal year 1998 and $2,536,000 of the general fund appropriation for fiscal year 1999 are provided solely for the verification of initiative and referendum petitions, maintenance of related voter registration records, and the publication and distribution of the voters and candidates pamphlet.(3) $99,000 of the general fund appropriation is provided solely for the state's participation in the United States census block boundary suggestion program.(4) $125,000 of the fiscal year 1998 general fund appropriation is provided solely for legal advertising of state measures under RCW 29.27.072.(5) $45,000 of the general fund fiscal year 1998 appropriation is provided solely for an economic feasibility study of a state horse park.(6) The election review section under chapter 29.60 RCW shall be administered in a manner consistent with Engrossed Senate Bill No. 5565 (election procedures review).NEW SECTION. Sec. 118. FOR THE GOVERNOR'S OFFICE OF INDIAN AFFAIRSGeneral Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$185,000General Fund Appropriation (FY 1999)$188,000TOTAL APPROPRIATION$373,000NEW SECTION. Sec. 119. FOR THE COMMISSION ON ASIAN-AMERICAN AFFAIRSGeneral Fund Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000General Fund Appropriation (FY 1999)$201,000TOTAL APPROPRIATION$401,000NEW SECTION. Sec. 120. FOR THE STATE TREASURERState Treasurer's Service AccountAppropriation. . . . .                . . . . . . . . . . . . . . . . . . . . . . . . $11,567,000NEW SECTION. Sec. 121. FOR THE STATE AUDITORGeneral Fund Appropriation (FY 1998)$678,000General Fund Appropriation (FY 1999). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$678,000State Auditing Services Revolving AccountAppropriation$11,928,000TOTAL APPROPRIATION$13,284,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) Audits of school districts by the division of municipal corporations shall include findings regarding the accuracy of: (a) Student enrollment data; and (b) the experience and education of the district's certified instructional staff, as reported to the superintendent of public instruction for allocation of state funding.(2) $420,000 of the general fund appropriation for fiscal year 1998 and $420,000 of the general fund appropriation for fiscal year 1999 are provided solely for staff and related costs to audit special education programs that exhibit unusual rates of growth, extraordinarily high costs, or other characteristics requiring attention of the state safety net committee. The auditor shall consult with the superintendent of public instruction regarding training and other staffing assistance needed to provide expertise to the audit staff.(3) $250,000 of the general fund fiscal year 1998 appropriation and $250,000 of the general fund fiscal year 1999 appropriation are provided solely for the budget and reporting system (BARS) to improve the reporting of local government fiscal data. Audits of counties and cities by the division of municipal corporations shall include findings regarding the completeness, accuracy, and timeliness of BARS data reported to the state auditor's office.NEW SECTION. Sec. 122. FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALSGeneral Fund Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000General Fund Appropriation (FY 1999)$63,000TOTAL APPROPRIATION$67,000NEW SECTION. Sec. 123. FOR THE ATTORNEY GENERALGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $  4,361,000General Fund--State Appropriation (FY 1999)$3,631,000General Fund--Federal Appropriation$2,248,000Public Safety and Education AccountAppropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,300,000New Motor Vehicle Arbitration AccountAppropriation$1,094,000Legal Services Revolving AccountAppropriation$125,008,000TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$     137,642,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year.(2) The attorney general shall include, at a minimum, the following information with each bill sent to agencies receiving legal services: (a) The number of hours and cost of attorney services provided during the billing period; (b) cost of support staff services provided during the billing period; (c) attorney general overhead and central support costs charged to the agency for the billing period; (d) direct legal costs, such as filing and docket fees, charged to the agency for the billing period; and (e) other costs charged to the agency for the billing period. The attorney general may, with approval of the office of financial management change its billing system to meet the needs of its user agencies.(3) $300,000 of the fiscal year 1998 general fund--state appropriation is provided for a comprehensive assessment of environmental and public health impacts and for other costs related to pursuing remedies for pollution in the Spokane river basin.(4) $640,000 of the fiscal year 1998 general fund--state appropriation and $210,000 of the fiscal year 1999 general fund--state appropriation are provided solely to implement the supervision management and recidivist tracking program to allow the department of corrections and local law enforcement agencies to share information concerning the activities of offenders on community supervision. No information on any person may be entered into or retained in the program unless the person is under the jurisdiction of the department of corrections.NEW SECTION. Sec. 124. FOR THE DEPARTMENT OF FINANCIAL INSTITUTIONSSecurities Regulation Account Appropriation$5,445,000

      The appropriation in this section is subject to the following conditions and limitations: $34,000 of the securities regulation account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.NEW SECTION. Sec. 125. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENTGeneral Fund--State Appropriation (FY 1998). . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$56,361,000General Fund--State Appropriation (FY 1999)$55,351,000General Fund--Federal Appropriation$155,278,000General Fund--Private/Local Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,903,000Public Safety and Education AccountAppropriation$8,781,000Public Works Assistance AccountAppropriation$2,223,000Building Code Council Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,318,000Administrative Contingency AccountAppropriation$1,776,000Low-Income Weatherization Assistance AccountAppropriation$923,000State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $555,000Violence Reduction and Drug Enforcement AccountAppropriation$6,042,000Manufactured Home Installation Training AccountAppropriation$250,000Washington Housing Trust AccountAppropriation. . . . . . . . . . . . . . . . . . . . . . . . $7,999,000Public Facility Construction Loan Revolving AccountAppropriation$515,000TOTAL APPROPRIATION$304,275,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) $3,282,500 of the general fund--state appropriation for fiscal year 1998 and $3,282,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington technology center. For work essential to the mission of the Washington technology center and conducted in partnership with universities, the center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 biennium.       (2) $155,000 of the general fund--state appropriation for fiscal year 1998 and $155,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington manufacturing extension partnership.      (3) $9,964,000 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1998 as follows:    (a) $3,603,250 to local units of governments to continue the multi-jurisdictional narcotics task forces;     (b) $500,000 to the department to continue the state-wide drug prosecution assistance program in support of multijurisdictional narcotics task forces;      (c) $1,306,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;               (d) $240,000 to the department for grants to support tribal law enforcement needs;      (e) $900,000 to drug courts in eastern and western Washington;           (f) $300,000 to the department for grants to provide sentencing alternatives training programs to defenders;           (g) $200,000 for grants to support substance-abuse treatment in county jails;               (h) $517,075 to the department for legal advocacy for victims of domestic violence and for training of local law enforcement officers and prosecutors on domestic violence laws and procedures;                (i) $903,000 to the department to continue youth violence prevention and intervention projects;             (j) $91,000 for the governor's council on substance abuse;    (k) $99,000 for program evaluation and monitoring;           (l) $100,000 for the department of corrections for a feasibility study of replacing or updating the offender based tracking system.  (m) $498,200 for development of a state-wide system to track criminal history records; and               (n) No more than $706,400 to the department for grant administration and reporting.            These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this section. If moneys in excess of those appropriated in this section become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without a specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding fiscal year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.      (4) $1,000,000 of the general fund fiscal year 1998 appropriation and $1,000,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Engrossed Substitute House Bill No. 1576 (buildable lands) or Senate Bill No. 6094 (growth management). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.     (5) $4,800,000 of the public safety and education account appropriation is provided solely for indigent civil legal representation services contracts and contracts administration. The amount provided in this subsection is contingent upon enactment of section 2 of Engrossed Substitute House Bill No. 2276 (civil legal services for indigent persons). If section 2 of the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.      (6) $643,000 of the general fund--state fiscal year 1998 appropriation and $643,000 of the general fund--state fiscal year 1999 appropriation are provided solely to increase payment rates for contracted early childhood education assistance program providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.      (7) $75,000 of the general fund--state fiscal year 1998 appropriation and $75,000 of the general fund--state fiscal year 1999 appropriation are provided solely as a grant for the community connections program in Walla Walla county.                 (8) $300,000 of the general fund--state fiscal year 1998 appropriation and $300,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract with the Washington state association of court-appointed special advocates/guardians ad litem (CASA/GAL) to establish pilot programs in three counties to recruit additional community volunteers to represent the interests of children in dependency proceedings. Of this amount, a maximum of $30,000 shall be used by the department to contract for an evaluation of the effectiveness of CASA/GAL in improving outcomes for dependent children. The evaluation shall address the cost-effectiveness of CASA/GAL and to the extent possible, identify savings in other programs of the state budget where the savings resulted from the efforts of the CASA/GAL volunteers. The department shall report to the governor and legislature by October 15, 1998.   (9) $75,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for state sponsorship of the "BIO 99" international biotechnology conference and exhibition in the Seattle area in 1999.       (10) $698,000 of the general fund--state appropriation for fiscal year 1998, $697,000 of the general fund--state appropriation for fiscal year 1999, and $1,101,000 of the administrative contingency account appropriation are provided solely for contracting with associate development organizations.      (11) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to expand the long-term care ombudsman program.     (12) $60,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of the Puget Sound work plan action item DCTED-01.    (13) $555,000 of the state toxics control account appropriation is provided solely for the public participation grant program pursuant to RCW 70.105D.070. In administering the grant program, the department shall award grants based upon a state-wide competitive process each year. Priority is to be given to applicants that demonstrate the ability to provide accurate technical information on complex waste management issues. Amounts provided in this subsection may not be spent on lobbying activities.      (14) $20,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a task force on tourism promotion and development. The task force shall report to the legislature on its findings and recommendations by January 31, 1998.            (15) $71,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the pacific northwest economic region (PNWER).       (16) $123,000 of the general fund--state appropriation for fiscal year 1998 and $124,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the community development finance program.      (17) Within the appropriations provided in this section, the department shall conduct a study of possible financial incentives to assist in revitalization of commercial areas and report its findings and recommendations to the appropriate committees of the legislature by November 15, 1997.            NEW SECTION. Sec. 126. FOR THE ECONOMIC AND REVENUE FORECAST COUNCILGeneral Fund Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$452,000General Fund Appropriation (FY 1999)$453,000TOTAL APPROPRIATION$905,000NEW SECTION. Sec. 127. FOR THE OFFICE OF FINANCIAL MANAGEMENTGeneral Fund--State Appropriation (FY 1998). . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,178,000General Fund--State Appropriation (FY 1999)$9,916,000General Fund--Federal Appropriation$23,331,000TOTAL APPROPRIATION$43,425,000

      The appropriations in this section are subject to the following conditions and limitations: $125,000 of the general fund--state appropriation for fiscal year 1998 and $125,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for staff support for the implementation of the Washington educational network. Funds shall be transferred to the appropriate agency as required by Substitute House Bill No. 1698 or Substitute Senate Bill No. 5002 or substantially similar legislation (K-20 telecommunications).NEW SECTION. Sec. 128. FOR THE OFFICE OF ADMINISTRATIVE HEARINGSAdministrative Hearings Revolving Account     Appropriation. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                       19,615,000

      The appropriation in this section is subject to the following conditions and limitations: $1,798,000 of the administrative hearings revolving fund appropriation is provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.NEW SECTION. Sec. 129. FOR THE DEPARTMENT OF PERSONNELDepartment of Personnel Service AccountAppropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,493,000Higher Education Personnel Services AccountAppropriation$1,632,000TOTAL APPROPRIATION$18,125,000

      The appropriations in this section are subject to the following conditions and limitations:   (1) The department shall reduce its charge for personnel services to the lowest rate possible.(2) $32,000 of the department of personnel service fund appropriation is provided solely for the creation, printing, and distribution of the personal benefits statement for state employees.(3) The department of personnel service account appropriation contains sufficient funds to continue the employee exchange program with the Hyogo prefecture in Japan.(4) $500,000 of the department of personnel service account appropriation is provided solely for the career transition program to assist state employees who are separated or are at risk of lay-off due to reduction-in-force. Services shall include employee retraining and career counseling.(5) $800,000 of the department of personnel service account appropriation is provided solely for the human resource data warehouse to: Expand the type and amount of information available on the state-wide work force; and to provide the office of financial management, legislature, and state agencies with direct access to the data for policy and planning purposes. The department of personnel shall establish uniform reporting procedures, applicable to all state agencies and higher education institutions, for reporting data to the data warehouse by June 30, 1998. The department of personnel will report quarterly to the legislative fiscal committees, the office of financial management, the information services board, and the office of information technology oversight of the department of information services the following items: (a) The number of state agencies that have received access to the data warehouse (it is anticipated that approximately 40 agencies will receive access during the 1997-99 biennium); (b) the change in requests for downloads from the mainframe computer by agencies with access to the data warehouse, to reflect transferring customers use of the mainframe computer to the more economical use of data warehouse information; and (c) a summary of customer feedback from agencies with access to the data warehouse. Authority to expend this amount is conditioned on compliance with section 902 of this act.(6) The department of personnel has the authority to charge agencies for expenses associated with converting its payroll/personnel computer system to accommodate the year 2000 date change. Funding to cover these expenses shall be realized from the agency FICA savings associated with the pretax benefits contributions plan.(7) The department of personnel shall charge all administrative services costs incurred by the department of retirement systems for the deferred compensation program. The billings to the department of retirement systems shall be for actual costs only.NEW SECTION. Sec. 130. FOR THE WASHINGTON STATE LOTTERYIndustrial Insurance Premium RefundAppropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000Lottery Administrative AccountAppropriation$

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$19,966,000TOTAL APPROPRIATION$19,975,000NEW SECTION. Sec. 131. FOR THE COMMISSION ON HISPANIC AFFAIRSGeneral Fund Appropriation (FY 1998). .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$199,000General Fund Appropriation (FY 1999$208,000TOTAL APPROPRIATION$407,000NEW SECTION. Sec. 132. FOR THE COMMISSION ON AFRICAN-AMERICAN AFFAIRSGeneral Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$170,000General Fund Appropriation (FY 1999)$168,000TOTAL APPROPRIATION$338,000NEW SECTION. Sec. 133. FOR THE PERSONNEL APPEALS BOARDDepartment of Personnel Service AccountAppropriation. . . . . . . . . . . . . . . . . . $       1,539,000

       NEW SECTION. Sec. 134. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account     Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$357,000Department of Retirement Systems Expense AccountAppropriation$31,415,000TOTAL APPROPRIATION$31,772,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,373,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the electronic document image management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.         (2) $1,259,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the receivables management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.       (3) The department of retirement systems shall complete a study examining whether it would be cost-effective to contract out the administration functions for the dependent care assistance program and shall report to the fiscal committees of the legislature by December 15, 1997.

       NEW SECTION. Sec. 135. FOR THE STATE INVESTMENT BOARD

State Investment Board Expense Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                10,303,000

       NEW SECTION. Sec. 136. FOR THE DEPARTMENT OF REVENUE

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $65,033,000General Fund Appropriation (FY 1999)$65,320,000Timber Tax Distribution AccountAppropriation$4,778,000Waste Reduction/Recycling/Litter Control              Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100,000State Toxics Control Account Appropriation$67,000Solid Waste Management AccountAppropriation$92,000Oil Spill Administration Account                Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                                        14,000TOTAL APPROPRIATION$135,404,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,540,000 of the general fund appropriation for fiscal year 1998 and $1,710,000 of the general fund appropriation for fiscal year 1999 are provided solely for senior citizen property tax deferral distribution.                    (2) Within the amounts appropriated in this section the department shall conduct a study identifying the impacts of exempting all shellfish species from the tax imposed on enhanced food fish under chapter 82.27 RCW. The study shall include an estimate of the fiscal impacts to state revenues as well as an examination of how such an exemption would impact shellfish-based industries and communities where shellfish-based industries are located. The department shall complete this study and report its findings to the legislature by December 1, 1997.

       NEW SECTION. Sec. 137. FOR THE BOARD OF TAX APPEALS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$885,000General Fund Appropriation (FY 1999)$889,000TOTAL APPROPRIATION$1,774,000

       NEW SECTION. Sec. 138. FOR THE MUNICIPAL RESEARCH COUNCIL

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,651,000General Fund Appropriation (FY 1999)$1,743,000County Research Services Account Appropriation$625,000TOTAL APPROPRIATION$4,019,000

       The appropriations in this section are subject to the following conditions and limitations: The county research services account appropriation is provided solely to implement Substitute Senate Bill No. 5521 (county research services). If the bill is not enacted by June 30, 1997, the appropriation shall lapse.

       NEW SECTION. Sec. 139. FOR THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

OMWBE Enterprises Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                  2,357,000

       NEW SECTION. Sec. 140. FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,302,000General Fund--State Appropriation (FY 1999)$1,278,000General Fund--Federal Appropriation$2,402,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$400,000Motor Transport Account Appropriation$14,120,000Air Pollution Control Account Appropriation$391,000General Administration Facilities and Services         Revolving Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$22,299,000Central Stores Revolving AccountAppropriation$3,306,000Energy Efficiency Services AccountAppropriation$180,000Risk Management Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,328,000TOTAL APPROPRIATION$48,006,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,200,000 of the general fund--state appropriation for fiscal year 1998 and $1,200,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the purchase of food for distribution to the state's food assistance network and related expenses.               (2) $25,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the World War II memorial on the condition that the currently approved design for the World War II memorial be sited on the location selected by the World War II advisory committee and approved and recommended by the capitol campus design advisory committee. This site is immediately south of the Columbia street and 11th avenue axial on the west capitol campus.  (3) Except for the World War II memorial, no additional monuments may be placed on the capitol campus until the completion of the capitol campus monuments and memorial policy by the department of general administration, adoption of the policy by the state capitol committee, and inclusion of the policy in the department of general administration's administrative code.      (4) The department shall not purchase any travel product for any state employee or state official from a vendor who is not a Washington-based seller of travel licensed under chapter 19.138 RCW.          (5) The department shall study the state motor pool vehicle fleet to develop a plan for meeting and exceeding the minimum vehicle mileage standards established by the federal government. The department shall report its findings and conclusions to the appropriate legislative committees by December 1, 1997.            (6) The department shall sell or contract for sale all surplus motor pool fleet vehicles and shall, when cost effective, contract out for the reconditioning, transport, and delivery of the vehicles prior to their sale at auction.

       NEW SECTION. Sec. 141. FOR THE DEPARTMENT OF INFORMATION SERVICES

Data Processing Revolving Account            Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                      3,577,000K-20 Technology Account Appropriation$44,028,000TOTAL APPROPRIATION$47,605,000

      The appropriation in this section is subject to the following conditions and limitations:       (1) The department shall provide a toll-free telephone number and operator service staff for the general public to call for information about state agencies. The department may provide such staff, equipment, and facilities as are necessary for this purpose. The director shall adopt rules to fix terms and charges for these services. All state agencies and the legislature shall participate in the information program and shall reimburse the department of information services in accordance with rules established by the director. The department shall also provide conference calling services for state and other public agencies on a fee-for-service basis.            (2) $44,028,000 of the K-20 technology account appropriation shall be expended in accordance with the expenditures authorized by the K-20 telecommunications oversight and policy committee as currently existing or as modified by Substitute House Bill No. 1698, Substitute Senate Bill No. 5002, or substantially similar legislation (K-20 telecommunications network).

       NEW SECTION. Sec. 142. FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$106,000Insurance Commissioners Regulatory AccountAppropriation$22,431,000TOTAL APPROPRIATION$22,537,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $532,000 of the insurance commissioner's regulatory account appropriation is provided solely for the expenditure of funds received under the consent order with the Prudential insurance company. These funds are provided solely for implementing the Prudential remediation process and for examinations of the Prudential company.           (2) $206,000 of the insurance commissioner's regulatory account appropriation is provided solely to implement Substitute House Bill No. 1387 (basic health plan benefits). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.              (3) $298,000 of the insurance commissioner's regulatory account appropriation is provided solely for technology improvements that will support the electronic filing of insurance rates and contracts and enable regulators and the industry to share information about licensed agents to protect the public from fraudulent sales practices.

       NEW SECTION. Sec. 143. FOR THE BOARD OF ACCOUNTANCY

Certified Public Accountants' Account         Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                                                                                       978,000

       The appropriation in this section is subject to the following conditions and limitations: $22,000 of the certified public accountants' account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

       NEW SECTION. Sec. 144. FOR THE FORENSIC INVESTIGATION COUNCIL

Death Investigations Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                       12,000

       NEW SECTION. Sec. 145. FOR THE HORSE RACING COMMISSION

Horse Racing Commission Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                  4,828,000

      NEW SECTION. Sec. 146. FOR THE LIQUOR CONTROL BOARDGeneral Fund Appropriation (FY 1998). . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .$1,603,000General Fund Appropriation (FY 1999)$1,242,000Liquor Control Board Construction and MaintenanceAccount Appropriation$9,919,000Liquor Revolving Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$121,391,000TOTAL APPROPRIATION$134,155,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,250,000 of the liquor revolving account appropriation is provided solely for the agency information technology upgrade. This item is conditioned on satisfying the requirements of section 902 of this act, including the development of a project management plan, a project schedule, a project budget, a project agreement, and incremental funding based on completion of key milestones.                 (2) $1,603,000 of the general fund fiscal year 1998 appropriation and $1,242,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute Senate Bill No. 6084 or Engrossed Substitute House Bill No. 2272 (transferring enforcement provisions regarding cigarette and tobacco taxes to the liquor control board). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.      (3) $459,000 of the liquor revolving account appropriation is provided solely for implementation of Substitute Senate Bill No. 5664 (credit and debit cards purchases in state liquor stores). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.         (4) $154,000 of the liquor revolving account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.      NEW SECTION. Sec. 147. FOR THE UTILITIES AND TRANSPORTATION COMMISSIONPublic Service Revolving Account--State                   Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$24,313,000Public Service Revolving Account--FederalAppropriation$292,000TOTAL APPROPRIATION$24,605,000NEW SECTION. Sec. 148. FOR THE BOARD FOR VOLUNTEER FIREFIGHTERSVolunteer Firefighters' Relief & Pension Administrative      Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $529,000NEW SECTION. Sec. 149. FOR THE MILITARY DEPARTMENTGeneral Fund--State Appropriation (FY 1998)$8,151,000General Fund--State Appropriation (FY 1999). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,735,000General Fund--Federal Appropriation$34,314,000General Fund--Private/Local Appropriation$238,000Flood Control Assistance Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000Enhanced 911 Account Appropriation$26,782,000Disaster Response Account--State Appropriation$23,977,000Disaster Response Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$95,419,000TOTAL APPROPRIATION$203,616,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $3,581,000 of the general fund--state appropriation for fiscal year 1999, $3,000,000 of the flood control assistance account appropriation, and $6,197,000 of the general fund--federal appropriation are provided solely for deposit in the disaster response account to cover costs pursuant to subsection (2) of this section.         (2) $23,977,000 of the disaster response account--state appropriation is provided solely for the state share of response and recovery costs associated with federal emergency management agency (FEMA) disaster number 1079 (November/December 1995 storms), FEMA disaster 1100 (February 1996 floods), FEMA disaster 1152 (November 1996 ice storm), FEMA disaster 1159 (December 1996 holiday storm), FEMA disaster 1172 (March 1997 floods) and to assist local governmental entities with the matching funds necessary to earn FEMA funds for FEMA disaster 1100 (February 1996 floods).       (3) $100,000 of the general fund--state fiscal year 1998 appropriation and $100,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of a conditional scholarship program pursuant to chapter 28B.103 RCW.          (4) $35,000 of the general fund--state fiscal year 1998 appropriation and $35,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the north county emergency medical service.      NEW SECTION. Sec. 150. FOR THE PUBLIC EMPLOYMENT RELATIONS COMMISSIONGeneral Fund Appropriation (FY 1998). . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,768,000General Fund Appropriation (FY 1999)$1,764,000TOTAL APPROPRIATION$3,532,000NEW SECTION. Sec. 151. FOR THE GROWTH PLANNING HEARINGS BOARDGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,247,000General Fund Appropriation (FY 1999)$1,252,000TOTAL APPROPRIATION$2,499,000NEW SECTION. Sec. 152. FOR THE STATE CONVENTION AND TRADE CENTERState Convention and Trade Center Operating Account                  Appropriation. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$27,175,000NEW SECTION. Sec. 153. FOR THE CASELOAD FORECAST COUNCILGeneral Fund Appropriation (FY 1998)$489,000General Fund Appropriation (FY 1999). . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$390,000TOTAL APPROPRIATION$879,000

      The appropriations in this section are subject to the following conditions and limitations:                   The appropriations are provided solely to implement Substitute Senate Bill No. 5472 (caseload forecast council). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

PART II

HUMAN SERVICES

       NEW SECTION. Sec. 201. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

      (2) The department of social and health services shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.       (3) The appropriations in sections 202 through 213 of this act shall be expended for the programs and in the amounts listed in those sections.

       NEW SECTION. Sec. 202. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILDREN AND FAMILY SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $191,716,000General Fund--State Appropriation (FY 1999)$201,581,000General Fund--Federal Appropriation$247,553,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000Violence Reduction and Drug Enforcement AccountAppropriation$4,230,000TOTAL APPROPRIATION$645,480,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $16,510,000 of the general fund--state appropriation for fiscal year 1998 and $17,508,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purposes consistent with the maintenance of effort requirements under the federal temporary assistance for needy families program established under P.L. 104-193.    (2) $837,000 of the violence reduction and drug enforcement account appropriation and $7,228,000 of the general fund--federal appropriation are provided solely for the operation of the family policy council, the community public health and safety networks, and delivery of services authorized under the federal family preservation and support act. Within the funds provided, the family policy council shall contract for an evaluation of the community networks with the institute for public policy and shall provide for audits of ten networks. Within the funds provided, the family policy council may build and maintain a geographic information system database tied to community network geography.          (3) $577,000 of the general fund--state fiscal year 1998 appropriation and $577,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract for the operation of one pediatric interim care facility. The facility shall provide residential care for up to twelve children through two years of age. Seventy-five percent of the children served by the facility must be in need of special care as a result of substance abuse by their mothers. The facility also shall provide on-site training to biological, adoptive, or foster parents. The facility shall provide at least three months of consultation and support to parents accepting placement of children from the facility. The facility may recruit new and current foster and adoptive parents for infants served by the facility. The department shall not require case management as a condition of the contract.             (4) $481,000 of the general fund--state fiscal year 1998 appropriation and $481,000 of the general fund--state fiscal year 1999 appropriation are provided solely for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.      (5) $640,000 of the general fund--state appropriation for fiscal year 1998 and $640,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to fund the provisions of Second Substitute House Bill No. 1862 (community-based alternative response system) or Second Substitute Senate Bill No. 5710 (juvenile care and treatment), including section 2 of the bill. Amounts provided in this subsection to implement Second Substitute House Bill No. 1862 or Second Substitute Senate Bill No. 5710 must be used to serve families who are screened from the child protective services risk assessment process. Services shall be provided through contracts with community-based organizations. If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.               (6) $594,000 of the general fund--state appropriation for fiscal year 1998, $556,000 of the general fund--state appropriation for fiscal year 1999, and $290,000 of the general fund--federal appropriation are provided solely to fund the provisions of Engrossed Second Substitute House Bill No. 2046 (foster parent liaison). The department shall establish a foster parent liaison in each department of social and health services region of the state and contract with a private provider to implement a recruitment and retention program for foster parents and adoptive families. The department shall provide a minimum of two hundred additional adoptive and foster home placements by June 30, 1998. If the bill is not enacted by June 30, 1997, the amounts in this subsection shall lapse.                    (7) $433,000 of the fiscal year 1998 general fund--state appropriation, $395,000 of the fiscal year 1999 general fund--state appropriation, and $894,000 of the general fund--federal appropriation are provided solely to increase the rate paid to private child-placing agencies.            (8) $580,000 of the general fund--state appropriation for fiscal year 1998 and $580,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and expansion of child care training requirements and optional training programs. The department shall adopt rules to require annual training in early childhood development of all directors, supervisors, and lead staff at child care facilities. Directors, supervisors, and lead staff at child care facilities include persons licensed as family child care providers, and persons employed at child care centers or school age child care centers. The department shall establish a program to fund scholarships and grants to assist persons in meeting these training requirements. The department shall also develop criteria for approving training programs and establish a system for tracking who has received the required level of training. In adopting rules, developing curricula, setting up systems, and administering scholarship programs, the department shall consult with the child care coordinating committee and other community stakeholders.            (9) The department shall provide a report to the legislature by November 1997 on the growth in additional rates paid to foster parents beyond the basic monthly rate. This report shall explain why exceptional, personal, and special rates are being paid for an increasing number of children and why the amount paid for these rates per child has risen in recent years. This report must also recommend methods by which the legislature may improve the current foster parent compensation system, allow for some method of controlling the growth in costs per case, and improve the department's and the legislature's ability to forecast the program's needs in future years.                      (10) $100,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for legal costs associated with the defense of vendors operating a secure treatment facility, for actions arising from the good faith performance of treatment services for behavioral difficulties or needs.                 (11) $2,745,000 of the fiscal year 1998 general fund--state appropriation, $2,745,000 of the fiscal year 1999 general fund--state appropriation, and $1,944,000 of the general fund--federal appropriation are provided solely for the category of services titled "intensive family preservation services."      (12) $2,200,000 of the fiscal year 1998 general fund--state appropriation and $2,200,000 of the fiscal year 1999 general fund--state appropriation are provided solely to continue existing continuum of care and street youth projects.                     (13) $1,456,000 of the general fund--state appropriation for fiscal year 1998, $1,474,000 of the general fund--state appropriation for fiscal year 1999 and $1,141,000 of the general fund--federal appropriation are provided solely for the improvement of quality and capacity of the child care system and related consumer education. The activities funded by this appropriation shall include, but not be limited to: Expansion of child care resource and referral network services to serve additional families, to provide technical assistance to child care providers, and to cover currently unserved areas of the state; development of and incentives for child care during nonstandard work hours; and the development of care for infants, toddlers, preschoolers, and school age youth. These amounts are provided in addition to funding for child care training and fire inspections of child care facilities. These activities shall also improve the quality and capacity of the child care system.

       NEW SECTION. Sec. 203. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--JUVENILE REHABILITATION PROGRAM

      (1) COMMUNITY SERVICESGeneral Fund--State Appropriation (FY 1998). . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29,732,000General Fund--State Appropriation (FY 1999)$28,764,000General Fund--Federal Appropriation$16,127,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $378,000Violence Reduction and Drug Enforcement AccountAppropriation$13,381,000TOTAL APPROPRIATION$88,382,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $445,000 of the violence reduction and drug enforcement account appropriation is provided solely for deposit in the county criminal justice assistance account solely for costs to the criminal justice system associated with the implementation of RCW 13.04.030 as amended by Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If RCW 13.04.030 is not amended by Engrossed Third Substitute House Bill No. 3900 by June 30, 1997, the amount provided in this subsection shall lapse. The amount provided in this subsection is intended to provide funding for county adult court and jail costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 and shall be distributed in accordance with RCW 82.14.310.            (b) $4,913,000 of the violence reduction and drug enforcement account is provided solely for the implementation of Engrossed Third Substitute Senate Bill No. 3900 (revising the juvenile code). The amount provided in this subsection is intended to provide funding for county impacts associated with the implementation of Third Substitute Senate Bill No. 3900 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula. If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.       (c) $2,350,000 of the general fund--state fiscal year 1998 appropriation and $2,350,000 of the general fund--state fiscal year 1999 appropriation are provided solely for an early intervention program to be administered at the county level. Moneys shall be awarded on a competitive basis to counties that have submitted plans for implementation of an early intervention program consistent with proven methodologies currently in place in the state. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.         (d) $1,832,000 of the violence reduction and drug enforcement appropriation is provided solely to implement alcohol and substance abuse treatment for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that have submitted a plan for the provision of treatment services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation. If Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions) is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.                  (e) $50,000 of the general fund--state fiscal year 1998 appropriation and $100,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the juvenile rehabilitation administration to contract with the institute for public policy for the responsibilities assigned in Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

      (2) INSTITUTIONAL SERVICESGeneral Fund--State Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,823,000General Fund--State Appropriation (FY 1999)$52,373,000General Fund--Private/Local Appropriation$721,000Violence Reduction and Drug Enforcement Account                  Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                              13,156,000TOTAL APPROPRIATION$116,073,000

      The appropriations in this subsection are subject to the following conditions and limitations: $3,691,000 of the general fund--state fiscal year 1998 appropriation, $6,679,000 of the general fund--state fiscal year 1999 appropriation, and $1,555,000 of the violence reduction and drug enforcement account appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

      (3) PROGRAM SUPPORTGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,874,000General Fund--State Appropriation (FY 1999)$1,623,000General Fund--Federal Appropriation$156,000Violence Reduction and Drug Enforcement Account   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                                        421,000TOTAL APPROPRIATION$4,074,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $92,000 of the general fund--state fiscal year 1998 appropriation and $36,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.         (b) $206,000 of the general fund--state fiscal year 1998 appropriation is provided solely for the implementation of Substitute House Bill No. 1968 (juvenile offender placement). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.      (c) $49,000 of the general fund--state fiscal year 1998 appropriation and $49,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.                    (d) Within the amounts provided in this subsection, the juvenile rehabilitation administration (JRA) shall develop by January 1, 1998, a staffing model for noncustody functions at JRA institutions and work camps. The models should, whenever possible, reflect the most efficient practices currently being used within the system.

       NEW SECTION. Sec. 204. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MENTAL HEALTH PROGRAM

      (1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKSGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . $167,577,000General Fund--State Appropriation (FY 1999)$170,803,000General Fund--Federal Appropriation$296,006,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000TOTAL APPROPRIATION$638,386,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) Regional support networks shall use portions of the general fund--state appropriation for implementation of working agreements with the vocational rehabilitation program which will maximize the use of federal funding for vocational programs.                   (b) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and adult services program for the general fund--state cost of medicaid personal care services that enrolled regional support network consumers use because of their psychiatric disability.       (c) $2,413,000 of the general fund--state appropriation for fiscal year 1998 and $2,393,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to directly reimburse eligible providers for the medicaid share of mental health services provided to persons eligible for both medicaid and medicare. To be reimbursed, the service must be covered by and provided in accordance with the state medicaid plan.                  (d) $1,304,000 of the general fund--state appropriation for fiscal year 1998, $3,356,000 of the general fund--state appropriation for fiscal year 1999, and $5,056,000 of the general fund--federal appropriation are provided solely for distribution to those regional support networks whose 1997-99 allocation would otherwise be less than the regional support network would receive if all funding appropriated in this subsection (1) of this section for medicaid outpatient mental health services were distributed among all regional support networks at the state-wide average per capita rate for each eligibility category.               (e) At least thirty days prior to entering contracts that would capitate payments for voluntary psychiatric hospitalizations, the mental health division shall report the proposed capitation rates, and the assumptions and calculations by which they were established, to the budget and forecasting divisions of the office of financial management, the appropriations committee of the house of representatives, and the ways and means committee of the senate.

      (2) INSTITUTIONAL SERVICESGeneral Fund--State Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $59,496,000General Fund--State Appropriation (FY 1999$59,508,000General Fund--Federal Appropriation$127,118,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,940,000TOTAL APPROPRIATION$277,062,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations when it is cost-effective to do so.          (b) The mental health program at Western state hospital shall continue to use labor provided by the Tacoma prerelease program of the department of corrections.

      (3) CIVIL COMMITMENTGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                               5,423,000General Fund Appropriation (FY 1999)$6,082,000TOTAL APPROPRIATION$11,505,000

      (4) SPECIAL PROJECTSGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                  50,000General Fund--State Appropriation (FY 1999)$450,000General Fund--Federal Appropriation$3,826,000TOTAL APPROPRIATION$4,326,000

      The appropriations in this subsection are subject to the following conditions and limitations: $50,000 of the general fund--state appropriation for fiscal year 1998 and $450,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and operation of the pilot project for mentally ill offenders described in Substitute Senate Bill No. 6002 (mentally ill offenders). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

      (5) PROGRAM SUPPORTGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $         2,560,000General Fund--State Appropriation (FY 1999)$2,395,000General Fund--Federal Appropriation$3,111,000TOTAL APPROPRIATION$8,066,000

       The appropriations in this subsection are subject to the following conditions and limitations: $60,000 of the general fund--state appropriation for fiscal year 1998 is provided solely to increase the department's capacity to carry out legislative intent set forth in RCW 71.24.400 through 71.24.415. To facilitate this activity, the secretary shall appoint an oversight committee of project stakeholders including representatives from: Service providers, mental health regional support networks, the department's mental health division, the department's division of alcohol and substance abuse, the department's division of children and family services, and the department's medical assistance administration. The oversight group shall continue to seek ways to streamline service delivery as set forth in RCW 71.24.405 until at least July 1, 1998.

       NEW SECTION. Sec. 205. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--DEVELOPMENTAL DISABILITIES PROGRAM

      (1) COMMUNITY SERVICESGeneral Fund--State Appropriation (FY 1998). . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,172,000General Fund--State Appropriation (FY 1999)$142,643,000General Fund--Federal Appropriation$194,347,000Health Services Account Appropriation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,695,000TOTAL APPROPRIATION$478,857,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $1,695,000 of the health services account appropriation and $1,835,000 of the general fund--federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund--state and matching general fund--federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.              (b) $365,000 of the general fund--state appropriation for fiscal year 1998 and $1,543,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment, or other day activities and training programs, for young people who complete their high school curriculum in 1997 or 1998.              (c) $22,974,000 of the general fund--state appropriation for fiscal year 1998 and $25,111,000 of the general fund--state appropriation for fiscal year 1999, plus any vendor rate increases allotted in accordance with section 213 of this act, are provided solely to deliver personal care services to an average of 6,250 children and adults in fiscal year 1998 and an average of 7,100 children and adults in fiscal year 1999. If the secretary of social and health services determines that total expenditures are likely to exceed these appropriated amounts, the secretary shall take action as required by RCW 74.09.520 to adjust either functional eligibility standards or service levels or both sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules and may not be taken to the extent that projected over-expenditures are offset by under-expenditures elsewhere within the program's general fund--state appropriation.               (d) $453,000 of the general fund--state appropriation for fiscal year 1998, $214,000 of the general fund--state appropriation for fiscal year 1999, and $719,000 of the general fund--federal appropriation are provided solely to continue operation of the united cerebral palsy residential center during the period in which its residents are phasing into new community residences.          (e) $197,000 of the general fund--state appropriation for fiscal year 1998 and $197,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to contract with the Washington initiative for supported employment for the purpose of continuing the promotion of supported employment services for persons with disabilities.

      (2) INSTITUTIONAL SERVICESGeneral Fund--State Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $63,982,000General Fund--State Appropriation (FY 1999)$63,206,000General Fund--Federal Appropriation$142,955,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,729,000TOTAL APPROPRIATION$279,872,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) With the funds appropriated in this subsection, the secretary of social and health services shall develop an eight-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.       (b) $112,000 of the general fund--state appropriation for fiscal year 1998, $113,000 of the general fund--state appropriation for fiscal year 1999, and $75,000 of the general fund--federal appropriation are provided solely for a nursing community outreach project at Yakima valley school. Registered nursing staff are to provide nursing assessments, consulting services, training, and quality assurance on behalf of individuals residing in central Washington.              (c) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation are provided solely for the development of a sixteen-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

      (3) PROGRAM SUPPORTGeneral Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $         2,543,000General Fund--State Appropriation (FY 1999)$2,517,000General Fund--Federal Appropriation$1,645,000TOTAL APPROPRIATION$

      (4) SPECIAL PROJECTSGeneral Fund--Federal Appropriation. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                                                                                                                                12,030,000

       NEW SECTION. Sec. 206. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--AGING AND ADULT SERVICES PROGRAM

207.34General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                  392,045,000

General Fund--State Appropriation (FY 1999). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $416,304,000General Fund--Federal Appropriation$878,169,000Health Services Account Appropriation$6,087,000TOTAL APPROPRIATION$1,692,605,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The entire health services account appropriation and $6,076,000 of the general fund--federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund--state and matching general fund--federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.              (2) $1,277,000 of the general fund--state appropriation for fiscal year 1998 and $1,277,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of the volunteer chore program.         (3) $107,997,000 of the general fund--state appropriation for fiscal year 1998 and $120,397,000 of the general fund--state appropriation for fiscal year 1999, plus any vendor rate increases allocated to these services in accordance with section 213 of this act, are provided solely to deliver chore, COPES, and medicaid personal care services. If the secretary of social and health services determines that total expenditures are likely to exceed these amounts, the secretary shall take action as required by RCW 74.09.520, 74.39A.120, and 74.09.530 to adjust functional eligibility standards and/or service levels sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules, and shall not be taken to the extent that projected over-expenditures are offset by under-expenditures resulting from lower than budgeted nursing home caseloads.               (4) $26,000 of the general fund--state appropriation for fiscal year 1998, $59,000 of the general fund--state appropriation for fiscal year 1999, and $85,000 of the general fund--federal appropriation are provided solely to employ registered nurses rather than social workers to fill six of the new field positions to be filled in fiscal year 1998 and seven more of the new positions to be filled in fiscal year 1999. These registered nurses shall conduct assessments, develop and monitor service plans, and consult with social work staff to assure that persons with medical needs are placed in and receive the appropriate level of care.                      (5) $425,000 of the general fund--state appropriation for fiscal year 1998 and $882,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Second Substitute Senate Bill No. 5179 (nursing facility reimbursement). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.          (6) A maximum of $2,193,000 of the general fund--state appropriation for fiscal year 1998 and $2,351,000 of the general fund--federal appropriation for fiscal year 1998 are provided to fund the medicaid share of any new prospective payment rate adjustments as may be necessary in accordance with RCW 74.46.460.              (7) $242,000 of the general fund--state appropriation for fiscal year 1998, $212,000 of the general fund--state appropriation for fiscal year 1999, and $498,000 of the general fund--federal appropriation are provided solely for operation of a system for investigating allegations of staff abuse and neglect in nursing homes, as provided in Second Substitute House Bill No. 1850 (long-term care standards of care).         (8) $350,000 of the general fund--state appropriation for fiscal year 1998 and $382,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to supplement the incomes of disabled legal immigrants who, because of loss of their federal supplemental security income benefit, would otherwise be at risk of placement into a more expensive long-term care setting.         (9)(a) The department shall establish a shadow case mix payment system to educate facilities about payment system alternatives. The department shall provide shadow rates beginning July 1, 1997, based on the following:                 (i) The direct care portion of the rate, usually called "nursing services," shall be set under a case mix methodology that classifies residents under the Resource Utilization Group III (RUG-III) Version 5.10 (or subsequent revision) 44 group index maximizing model based on the Minimum Data Set (MDS) Version 2.0.          (ii) Payment to a facility shall be based on facility weighted average case mix data which provides one rate to a facility reflecting its mix of residents. For purposes of determining the facility's cost per case mix unit, the facility average case mix score will be based on the case mix of all residents. For purposes of determining the facility's payment rate, the facility average case mix score shall be based on the case mix of medicaid residents.                    (iii) The direct care rates shall be adjusted prospectively each quarter based on the facility's MDS 2.0 data from the quarter commencing six months preceding the rate effective date. For example, the MDSs for 1/1/97 - 3/31/97 shall be used to establish shadow rates for 7/1/97 - 9/30/97.         (iv) Those costs which currently comprise nursing services as defined by chapter 74.46 RCW, excluding therapies, shall be included in the direct care component for case mix.               (v) Data from 1994 cost reports (allowable and audited costs) shall be used to establish the shadow rates. The costs shall be inflated comparable to fiscal year 1998 payment rates, according to RCW 74.46.420.                  (vi) Separate prices, ceilings, and corridors shall be established for the peer groups of metropolitan statistical area and nonmetropolitan statistical area.      (b) The following methods shall be used to establish the shadow case mix rates:                 (i) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be established at the median direct care cost per case mix unit.                 (ii) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be based on the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards.        (iii) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards. The ceiling, per peer group, shall be established at 110 percent of the cost per case-mix unit of the group of benchmark facilities.       (iv) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the industry-wide median direct care cost per case-mix unit. The ceiling, per peer group, shall be established at 110 percent of the industry-wide median direct care cost per case-mix unit.                   (c) The department shall provide all data, information, and specifications of the methods used in establishing the shadow case mix rates to the nursing home provider associations.   (d) It is the legislature's intent that the average state payment for nursing facility services under the new system increase by no more than 175 percent of the health care financing administration nursing home input price index, excluding capital costs. In designing the new payment system, the department shall develop and propose options for the combined direct and indirect rate components that assure this.         (10) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for payments to any nursing facility licensed under chapter 18.51 RCW which meets all of the following criteria: (a) The nursing home entered into an arm's length agreement for a facility lease prior to January 1, 1980; (b) the lessee purchased the leased nursing home after January 1, 1980; and (c) the lessor defaulted on its loan or mortgage for the assets of the home after January 1, 1991, and prior to January 1, 1992. Payments provided pursuant to this subsection shall not be subject to the settlement, audit, or rate-setting requirements contained in chapter 74.46 RCW.         (11) $546,000 of the general fund--state appropriation for fiscal year 1998, $583,000 of the general fund--state appropriation for fiscal year 1999, and $1,220,000 of the general fund--federal appropriation are provided solely for an increase in the state payment rates for adult residential care and enhanced adult residential care.

       NEW SECTION. Sec. 208. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ECONOMIC SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $543,150,000General Fund--State Appropriation (FY 1999$529,985,000General Fund--Federal Appropriation$952,618,000TOTAL APPROPRIATION$2,025,753,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) General assistance-unemployable recipients who are assessed as needing alcohol or drug treatment shall be assigned a protective payee to prevent the diversion of cash assistance toward purchasing alcohol or other drugs.                   (2) The legislature finds that, with the passage of the federal personal responsibility and work opportunity act and Engrossed House Bill No. 3901, the temporary assistance for needy families is no longer an entitlement. The legislature declares that the currently appropriated level for the program is sufficient for the next few budget cycles. To the extent, however, that currently appropriated amounts exceed costs during the 1997-99 biennium, the department is encouraged to set aside excess federal funds for use in future years.        (3) $485,000 of the general fund--state fiscal year 1998 appropriation, $3,186,000 of the general fund--state fiscal year 1999 appropriation, and $3,168,000 of the general fund--federal appropriation are provided solely to continue to implement the previously competitively procured electronic benefits transfer system through the western states EBT alliance for distribution of cash grants and food stamps so as to meet the requirements of P.L. 104-193.                (4) $50,000 of the fiscal year 1998 general fund--state appropriation is provided solely for a study of child care affordability as directed in section 403 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the Washington institute for public policy. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.            (5) $500,000 of the fiscal year 1998 general fund--state appropriation and $500,000 of the fiscal year 1999 general fund--state appropriation are provided solely for an evaluation of the WorkFirst program as directed in section 705 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the joint legislative audit and review committee. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.                  (6) $73,129,000 of the general fund--federal appropriation is provided solely to implement section 402 of Engrossed House Bill No. 3901 (implementing welfare reform). If section 402 of the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.   (7) $7,624,000 of the fiscal year 1998 general fund--state appropriation, $18,489,000 of the fiscal year 1999 general fund--state appropriation, and $29,781,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform), including sections 404 and 405. If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 209. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,714,000General Fund--State Appropriation (FY 1999)$14,829,000General Fund--Federal Appropriation$80,497,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $630,000Violence Reduction and Drug Enforcement AccountAppropriation$72,900,000TOTAL APPROPRIATION$183,570,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $2,062,000 of the general fund--federal appropriation and $7,482,000 of the violence reduction and drug enforcement account appropriation are provided solely for the grant programs for school districts and educational service districts set forth in RCW 28A.170.080 through 28A.170.100, including state support activities, as administered through the office of the superintendent of public instruction.           (2) $1,902,000 of the general fund--state fiscal year 1998 appropriation, $1,902,000 of the general fund--state fiscal year 1999 appropriation, and $1,592,000 of the general fund--federal appropriation are provided solely for alcohol and substance abuse assessment, treatment, including treatment for drug affected infants and toddlers, and child care services for clients of the division of children and family services. Assessment shall be provided by approved chemical dependency treatment programs as requested by child protective services personnel in the division of children and family services. Child care shall be provided as deemed necessary by the division of children and family services while parents requiring alcohol and substance abuse treatment are attending treatment programs.      (3) $760,000 of the fiscal year 1998 general fund--state appropriation and $760,000 of the fiscal year 1999 general fund--state appropriation are provided solely to fund a program serving mothers of children affected by fetal alcohol syndrome and related conditions, known as the birth-to-three program. The program may be operated in two cities in the state.                     (4) $248,000 of the fiscal year 1998 general fund--state appropriation and $495,000 of the fiscal year 1999 general fund--state appropriation are provided solely to implement Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 210. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MEDICAL ASSISTANCE PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $684,033,000General Fund--State Appropriation (FY 1999)$684,885,000General Fund--Federal Appropriation$2,038,101,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $223,900,000Health Services Account Appropriation$253,004,000Emergency Medical and Trauma Care ServicesAccount Appropriation$4,600,000TOTAL APPROPRIATION. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $               3,888,523,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The department shall continue to make use of the special eligibility category created for children through age 18 and in households with incomes below 200 percent of the federal poverty level made eligible for medicaid as of July 1, 1994.            (2) It is the intent of the legislature that Harborview medical center continue to be an economically viable component of the health care system and that the state's financial interest in Harborview medical center be recognized.    (3) Funding is provided in this section for the adult dental program for Title XIX categorically eligible and medically needy persons and to provide foot care services by podiatric physicians and surgeons.               (4) $1,622,000 of the general fund--state appropriation for fiscal year 1998 and $1,622,000 of the general fund--state appropriation for fiscal year 1999 are provided for treatment of low-income kidney dialysis patients.        (5) $80,000 of the general fund--state appropriation for fiscal year 1998, $80,000 of the general fund--state appropriation for fiscal year 1999, and $160,000 of the general fund--federal appropriation are provided solely for the prenatal triage clearinghouse to provide access and outreach to reduce infant mortality.          (6) The department shall employ the managed care contracting and negotiation strategies defined in Substitute Senate Bill No. 5125 to assure that the average per-recipient cost of managed care services for temporary assistance to needy families and expansion populations increases by no more than two percent per year in calendar years 1998 and 1999.      (7) The department shall seek federal approval to require adult medicaid recipients who are not elderly or disabled to contribute ten dollars per month toward the cost of their medical assistance coverage. The department shall report on the progress of this effort to the house of representatives and senate health care and fiscal committees by September 1 and November 15, 1997.       (8) $325,000 of the general fund--state appropriation for fiscal year 1998 and $325,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase rates paid for air ambulance services.

       NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--VOCATIONAL REHABILITATION PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,652,000General Fund--State Appropriation (FY 1999)$8,592,000General Fund--Federal Appropriation$79,542,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $   2,904,000TOTAL APPROPRIATION$99,690,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The division of vocational rehabilitation shall negotiate cooperative interagency agreements with local organizations, including higher education institutions, mental health regional support networks, and county developmental disabilities programs to improve and expand employment opportunities for people with severe disabilities served by those local agencies.     (2) $363,000 of the general fund--state appropriation for fiscal year 1998, $506,000 of the general fund--state appropriation for fiscal year 1999, and $3,208,000 of the general fund--federal appropriation are provided solely for vocational rehabilitation services for individuals enrolled for services with the developmental disabilities program who complete their high school curriculum in 1997 or 1998.

       NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,572,000General Fund--State Appropriation (FY 1999)$23,956,000General Fund--Federal Appropriation$40,352,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      270,000TOTAL APPROPRIATION$89,150,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The department may transfer up to $1,289,000 of the general fund--state appropriation for fiscal year 1998, $1,757,000 of the general fund--state appropriation for fiscal year 1999, and $2,813,000 of the general fund--federal appropriation to the administration and supporting services program from various other programs to implement administrative reductions.              (2) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.      (3) The department shall not expend any funding for staffing or publication of the sexual minority initiative.                     (4) $60,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a welfare fraud pilot program as described by House Bill No. 1822 (welfare fraud investigation).                 (5) $55,000 of the fiscal year 1998 general fund--state appropriation, $64,000 of the fiscal year 1999 general fund--state appropriation, and $231,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILD SUPPORT PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,122,000General Fund--State Appropriation (FY 1999)$20,877,000General Fund--Federal Appropriation$145,739,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,207,000TOTAL APPROPRIATION$220,945,000

      The appropriations provided in this section are subject to the following conditions and limitations:                    (1) The department shall contract with private collection agencies to pursue collection of AFDC child support arrearages in cases that might otherwise consume a disproportionate share of the department's collection efforts. The department's child support collection staff shall determine which cases are appropriate for referral to private collection agencies. In determining appropriate contract provisions, the department shall consult with other states that have successfully contracted with private collection agencies to the extent allowed by federal support enforcement regulations.        (2) The department shall request a waiver from federal support enforcement regulations to replace the current program audit criteria, which is process-based, with performance measures based on program outcomes.        (3) The amounts appropriated in this section for child support legal services shall be expended only by means of contracts with local prosecutor's offices.            (4) $305,000 of the general fund--state fiscal year 1998 appropriation, $494,000 of the general fund--state fiscal year 1999 appropriation, and $1,408,000 of the general fund--federal appropriation are provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47,435,000General Fund--State Appropriation (FY 1999)$47,514,000General Fund--Federal Appropriation$54,366,000Health Services Account Appropriation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,502,000Violence Reduction and Drug Enforcement AccountAppropriation$2,215,000TOTAL APPROPRIATION$153,032,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $22,893,000 of the general fund--state appropriation for fiscal year 1998, $22,835,000 of the general fund--state appropriation for fiscal year 1999, $35,431,000 of the general fund--federal appropriation, $2,215,000 of the violence reduction and drug enforcement account, and $1,502,000 of the health services account are provided solely to increase the rates of contracted service providers. The department need not provide all vendors with the same percentage rate increase. Rather, the department is encouraged to use these funds to help assure an adequate supply of qualified vendors. Vendors providing services in markets where recruitment and retention of qualified providers is a problem may receive larger rate increases than other vendors. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery. Any rate increases granted as a result of this section must be implemented so that the carry-forward costs into the 1999-01 biennium do not exceed the amounts provided in this subsection. Within thirty days of granting a vendor rate increase under this section, the department shall report the following information to the fiscal committees of the legislature: (1) The amounts and effective dates of any increases granted; (2) the process and criteria used to determine the increases; and (3) any data used in that process. In accordance with RCW 43.88.110(1), the department and the office of financial management shall allot funds appropriated in this section to the programs and budget units from which the funds will be expended. Such allotments shall be completed no later than September 15, 1997.                    (2) $263,000 of the fiscal year 1998 general fund--state appropriation, $349,000 of the fiscal year 1999 general fund--state appropriation, and $1,186,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 215. FOR THE STATE HEALTH CARE AUTHORITY

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,316,000General Fund--State Appropriation (FY 1999)$6,317,000State Health Care Authority AdministrationAccount Appropriation$Health Services Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,796,000TOTAL APPROPRIATION$328,148,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The general fund--state appropriations are provided solely for health care services provided through local community clinics.                      (2) The health care authority shall utilize competitive contracting strategies, increase co-pay requirements, adjust state subsidy levels, and take other actions it deems necessary to assure that the funds appropriated in this section are sufficient to subsidize basic health plan enrollment for a monthly average of 130,000 persons during fiscal years 1998 and 1999.                (3) Within funds appropriated in this section and sections 205 and 206 of this act, the health care authority shall continue to provide an enhanced basic health plan subsidy option for foster parents licensed under chapter 74.15 RCW and workers in state-funded homecare programs. Under this enhanced subsidy option, foster parents and homecare workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at a cost of ten dollars per covered worker per month.     (4) The health care authority shall require organizations and individuals that are paid to deliver basic health plan services to contribute a minimum of forty-five dollars per enrollee per month if the organization or individual chooses to sponsor an individual's enrollment in the subsidized basic health plan.         (5) $150,000 of the health services account appropriation is provided solely to implement Substitute House Bill No. 1805 (health care savings accounts). If this bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.         (6) The health care authority shall report to the fiscal committees of the legislature by December 1, 1997, on the number of basic health plan enrollees who are illegal aliens but are not resident citizens, legal aliens, legal refugees, or legal asylees.                (7) $270,000 of the health services account appropriation is provided solely to pay commissions to agents and brokers in accordance with RCW 70.47.015(5) for application assistance provided to persons on the reservation list as of June 30, 1997, who enroll in the subsidized basic health plan on or after July 1, 1997.

       NEW SECTION. Sec. 216. FOR THE HUMAN RIGHTS COMMISSION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,019,000General Fund--State Appropriation (FY 1999)$2,036,000General Fund--Federal Appropriation$1,444,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                 259,000TOTAL APPROPRIATION$5,758,000

       NEW SECTION. Sec. 217. FOR THE BOARD OF INDUSTRIAL INSURANCE APPEALS

Worker and Community Right-to-Know Account        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$     20,000Accident Account Appropriation$10,785,000Medical Aid Account Appropriation$10,787,000TOTAL APPROPRIATION$21,592,000

       NEW SECTION. Sec. 218. FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000Death Investigations Account Appropriation$38,000Public Safety and Education AccountAppropriation$13,434,000Violence Reduction and Drug Enforcement Account                  Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      346,000TOTAL APPROPRIATION$13,918,000

      The appropriations made in this section are subject to the following conditions and limitations:          (1) $80,000 of the public safety and education account appropriation is provided solely to continue the study of law enforcement and corrections training begun in 1996. In conducting the study, the criminal justice training commission shall consult with the appropriate policy and fiscal committees of the legislature. Specific elements to be addressed in the study include: (a) The feasibility and the rationale for increasing basic law enforcement training from 440 to 600 hours; (b) the feasibility and rationale for creating a certification process for law enforcement officers; (c) the feasibility and rationale for expanding the correctional officers academy; (d) the feasibility and rationale for expanding the juvenile service workers academy and/or the adult services academy; and (e) any other items considered relevant by the commission. Any recommendations made shall include a plan and timeline for how they would be implemented. The board on correctional training standards and education and the board on law enforcement training standards and education shall be actively involved in the study effort. Copies of the study shall be provided to the appropriate policy and fiscal committees of the legislature and the director of financial management by October 1, 1997.      (2) $50,000 of the public safety and education account appropriation is provided solely to prepare a cost and fee study of the current and proposed criminal justice course offerings. The analysis shall identify total costs and major cost components for: (a) Any current training classes which are considered mandatory; and (b) any proposed or modified training courses which are considered mandatory. Mandatory classes include, but are not limited to, the following: Basic law enforcement academy, correctional officers academy, supervisory and management training of law enforcement officers, supervisory and management training of correctional officers, juvenile service workers academy, and the adult service academy. The study shall also recommend a methodology for estimating the future demand for these classes. The study shall also estimate the cost of implementing any recommendations made pursuant to subsection (1) of this section. The study shall be conducted by a private sector consultant selected by the office of financial management in consultation with the executive director of the criminal justice training commission. The final report shall be completed by January 1, 1998.      (3) $92,000 of the public safety and education account appropriation is provided solely for the purpose of training law enforcement managers and supervisors.              (4) $40,000 of the public safety and education account appropriation is provided solely to implement the provisions of Substitute House Bill No. 1423 (criminal justice training commission). If this bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

       NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,805,000General Fund Appropriation (FY 1999)$6,848,000Public Safety and Education Account--State Appropriation$16,246,000Public Safety and Education Account--      Federal Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,002,000Public Safety and Education Account--Private/Local Appropriation$2,014,000Electrical License Account Appropriation$22,542,000Farm Labor Revolving Account Appropriation$28,000Worker and Community Right-to-Know Account      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,187,000Public Works Administration Account Appropriation$1,975,000Accident Account--State Appropriation$146,849,000Accident Account--Federal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,112,000Medical Aid Account--State Appropriation$155,220,000Medical Aid Account--Federal Appropriation$1,592,000Plumbing Certificate Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $846,000Pressure Systems Safety Account Appropriation$2,106,000TOTAL APPROPRIATION$380,372,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims service delivery", "electrical permitting and inspection system", and "credentialing information system" are conditioned upon compliance with section 902 of this act.      (2) Pursuant to RCW 7.68.015, the department shall operate the crime victims compensation program within the public safety and education account funds appropriated in this section. In the event that cost containment measures are necessary, the department may (a) institute copayments for services; (b) develop preferred provider and managed care contracts; (c) coordinate with the department of social and health services to use the public safety and education account as matching funds for federal Title XIX reimbursement, to the extent this maximizes total funds available for services to crime victims.     (3) $54,000 of the general fund appropriation for fiscal year 1998 and $54,000 of the general fund appropriation for fiscal year 1999 are provided solely for an interagency agreement to reimburse the board of industrial insurance appeals for crime victims appeals.                (4) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.         (5) $43,000 of the general fund--state appropriation for fiscal year 1998, $35,000 of the general fund--state appropriation for fiscal year 1999, $20,000 of the electrical license account appropriation, and $58,000 of the plumbing certificate account appropriation are provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.                    (6) The expenditures of the elevator, factory assembled structures, and contractors' registration and compliance programs may not exceed the revenues generated by these programs.

       NEW SECTION. Sec. 220. FOR THE INDETERMINATE SENTENCE REVIEW BOARD

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,141,000General Fund Appropriation (FY 1999)$920,000TOTAL APPROPRIATION$2,061,000

       The appropriations in this section are subject to the following conditions and limitations: $920,000 of the general fund appropriation for fiscal year 1999 is provided solely to implement House Bill No. 1646 (indeterminate sentence review) or Senate Bill No. 5410 (indeterminate sentence review board). If neither of these bills is enacted by June 30, 1997, this amount shall lapse.

       NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF VETERANS AFFAIRS

      (1) HEADQUARTERSGeneral Fund Appropriation (FY 1998). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,339,000General Fund Appropriation (FY 1999)$1,334,000Industrial Insurance Premium Refund AccountAppropriation$80,000Charitable, Educational, Penal, and Reformatory        Institutions Account Appropriation. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $                                                                            4,000TOTAL APPROPRIATION$2,757,000

      (2) FIELD SERVICESGeneral Fund--State Appropriation (FY 1998). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $   2,418,000General Fund--State Appropriation (FY 1999)$2,420,000General Fund--Federal Appropriation$26,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $          85,000TOTAL APPROPRIATION$4,949,000

      (3) INSTITUTIONAL SERVICESGeneral Fund--State Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,101,000General Fund--State Appropriation (FY 1999)$5,369,000General Fund--Federal Appropriation$19,556,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $          14,583,000TOTAL APPROPRIATION$45,609,000

       NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF HEALTH

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,955,000General Fund--State Appropriation (FY 1999)$57,462,000General Fund--Federal Appropriation$259,139,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,351,000Hospital Commission Account Appropriation$3,089,000Health Professions Account Appropriation$36,038,000Emergency Medical and Trauma Care Services Account                Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$21,042,000Safe Drinking Water Account Appropriation$2,494,000Drinking Water Assistance Account--FederalAppropriation$5,385,000Waterworks Operator Certification Appropriation$588,000Water Quality Account Appropriation$3,065,000Violence Reduction and Drug Education Account        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $469,000State Toxics Control Account Appropriation$2,854,000Medical Test Site Licensure Account Appropriation$1,624,000Youth Tobacco Prevention Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,812,000Health Services Account Appropriation$24,224,000TOTAL APPROPRIATION$497,591,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $2,134,000 of the health professions account appropriation is provided solely for the development and implementation of a licensing and disciplinary management system. Expenditures are conditioned upon compliance with section 902 of this act. These funds shall not be expended without appropriate project approval by the department of information systems.    (2) Funding provided in this section for the drinking water program data management system shall not be expended without appropriate project approval by the department of information systems. Expenditures are conditioned upon compliance with section 902 of this act.              (3) The department is authorized to raise existing fees charged to the nursing professions and midwives, by the pharmacy board, and for boarding home licenses, in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of conducting business.         (4) $1,633,000 of the general fund--state fiscal year 1998 appropriation and $1,634,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of the Puget Sound water work plan and agency action items, DOH-01, DOH-02, DOH-03, DOH-04, DOH-05, DOH-06, DOH-07, DOH-08, DOH-09, DOH-10, DOH-11, and DOH-12.                 (5) $10,000,000 of the health services account appropriation is provided solely for distribution to local health departments for distribution on a per capita basis. Prior to distributing these funds, the department shall adopt rules and procedures to ensure that these funds are not used to replace current local support for public health programs.          (6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of a youth suicide prevention program at the state level, including a state-wide public educational campaign to increase knowledge of suicide risk and ability to respond and provision of twenty-four hour crisis hotlines, staffed to provide suicidal youth and caregivers a source of instant help.              (7) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.      (8) $259,000 of the health professions account appropriation is provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.      (9) $150,000 of the general fund--state fiscal year 1998 appropriation and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for community-based oral health grants that may fund sealant programs, education, prevention, and other oral health interventions. The grants may be awarded to state or federally funded community and migrant health centers, tribal clinics, or public health jurisdictions. Priority shall be given to communities with established oral health coalitions. Grant applications for oral health education and prevention grants shall include (a) an assessment of the community's oral health education and prevention needs; (b) identification of the population to be served; and (c) a description of the grant program's predicted outcomes.          (10) $21,042,000 of the emergency medical and trauma care services account appropriation is provided solely for implementation of Substitute Senate Bill No. 5127 (trauma care services). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.             (11) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for family support and provider training services for children with special health care needs.           (12) $300,000 of the general fund--federal appropriation is provided solely for an abstinence education program which complies with P.L. 104-193. $400,000 of the general fund--federal appropriation is provided solely for abstinence education projects at the office of the superintendent of public instruction and shall be transferred to the office of the superintendent of public instruction for the 1998-99 school year. The department shall apply for abstinence education funds made available by the federal personal responsibility and work opportunity act of 1996 and implement a program that complies with the requirements of that act.        (13) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Second Substitute House Bill No. 1191 (mandated health benefit review). If the bill is not enacted by June 30, 1997, the amounts provided in this section shall lapse.        (14) $100,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the volunteer retired provider program. Funds shall be used to increase children's access to dental care services in rural and underserved communities by paying malpractice insurance and professional licensing fees for retired dentists participating in the program.                (15) $852,000 of the drinking water assistance account--federal appropriation is provided solely for an interagency agreement with the department of community, trade, and economic development to administer, in cooperation with the public works board, loans to local governments and public water systems for projects and activities to protect and improve the state's drinking water facilities and resources.          (16) Amounts provided in this section are sufficient to operate the AIDS prescription drug program. To operate the program within the appropriated amount, the department shall limit new enrollments, manage access to the most expensive drug regimens, establish waiting lists and priority rankings, assist clients in accessing drug assistance programs sponsored by drug manufacturers, or pursue other means of managing expenditures by the program.        (17) Funding provided in this section is sufficient to implement section 8 of Engrossed Substitute House Bill No. 2264 (eliminating the health care policy board).       (18) $4,150,000 of the health services account appropriation is provided solely for the Washington poison center.

       NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF CORRECTIONS

      (1) ADMINISTRATION AND PROGRAM SUPPORTGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$       13,926,000General Fund Appropriation (FY 1999)$13,910,000Violence Reduction and Drug Enforcement AccountAppropriation$500,000TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                    28,336,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $187,000 of the general fund fiscal year 1998 appropriation and $155,000 of the general fund fiscal year 1999 appropriation are provided solely for implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by July 1, 1997, the amounts provided shall lapse.      (b) $500,000 of the violence reduction and drug enforcement account appropriation is provided solely for a feasibility study regarding the replacement of the department's offender based tracking system.

      (2) INSTITUTIONAL SERVICESGeneral Fund--State Appropriation (FY 1998). . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $289,204,000General Fund--State Appropriation (FY 1999)$302,933,000General Fund--Federal Appropriation$18,097,000Industrial Insurance Premium Rebate Account             Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $673,000Violence Reduction and Drug Enforcement AccountAppropriation$1,614,000TOTAL APPROPRIATION$612,521,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.      (b) $2,298,000 of the general fund--state fiscal year 1998 appropriation and $5,414,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of RCW 13.04.030 as amended by Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If RCW 13.04.030 is not amended by Engrossed Third Substitute House Bill No. 3900 by June 30, 1997, the amounts provided shall lapse.                  (c) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.           (d) It is the intent of the legislature that the department reduce health care expenditures in the 1997-99 biennium using the scenario identified in the health services delivery system study which limited health care costs to $43,000,000 in fiscal year 1998 and $40,700,000 in fiscal year 1999. The department shall consult with direct health care service providers and health care staff in implementing this scenario.      (e) $296,000 of the general fund--state appropriation for fiscal year 1998 and $297,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.      (f) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. If any funds are generated in excess of actual costs, they shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

      (3) COMMUNITY CORRECTIONSGeneral Fund Appropriation (FY 1998).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                        89,364,000General Fund Appropriation (FY 1999)$90,416,000TOTAL APPROPRIATION$179,780,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $14,000 of the general fund fiscal year 1998 appropriation and $106,000 of the general fund fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of RCW 13.04.030 as amended by Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If RCW 13.04.030 is not amended by Engrossed Third Substitute House Bill No. 3900 by June 30, 1997, the amounts provided shall lapse.     (b) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.                 (c) $467,000 of the general fund appropriation for fiscal year 1998 and $505,000 of the general fund appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers and contracted work release facilities. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

      (4) CORRECTIONAL INDUSTRIESGeneral Fund Appropriation (FY 1998). . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                            4,055,000General Fund Appropriation (FY 1999)$4,167,000TOTAL APPROPRIATION$8,222,000

      The appropriations in this subsection are subject to the following conditions and limitations:              (a) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.      (b) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for the correctional industries board of directors to hire one staff person, responsible directly to the board, to assist the board in fulfilling its duties.

      (5) INTERAGENCY PAYMENTSGeneral Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                        6,945,000General Fund Appropriation (FY 1999)$6,444,000TOTAL APPROPRIATION$13,389,000

       NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF SERVICES FOR THE BLIND

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,368,000General Fund--State Appropriation (FY 1999)$1,411,000General Fund--Federal Appropriation$10,454,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                  80,000TOTAL APPROPRIATION$13,313,000

       NEW SECTION. Sec. 225. FOR THE SENTENCING GUIDELINES COMMISSION

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $714,000General Fund Appropriation (FY 1999$713,000TOTAL APPROPRIATION$$1,427,000

       NEW SECTION. Sec. 226. FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $173,595,000General Fund--Private/Local Appropriation$24,842,000Unemployment Compensation Administration Account--Federal Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $181,985,000Administrative Contingency Account Appropriation$12,579,000Employment Service Administrative AccountAppropriation$13,176,000Employment & Training Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                                    600,000TOTAL APPROPRIATION$406,777,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims and adjudication call centers", "data/wage quality initiative", and "one stop information connectivity" are conditioned upon compliance with section 902 of this act.      (2) $600,000 of the employment and training trust account appropriation is provided solely for the account's share of unemployment insurance tax collection costs.      (3) $1,126,000 of the general fund--federal appropriation is provided solely for the continuation of job placement centers colocated on community and technical college campuses.              (4) The employment security department shall spend no more than $25,049,511 of the unemployment compensation administration account--federal appropriation for the general unemployment insurance development effort (GUIDE) project, except that the department may exceed this amount by up to $2,600,000 to offset the cost associated with any vendor-caused delay. The additional spending authority is contingent upon the department fully recovering these moneys from any project vendors failing to perform in full. Authority to spend the amount provided by this subsection is conditioned on compliance with section 902 of this act.        (5) $114,000 of the administrative contingency account appropriation is provided solely for the King county reemployment support center.

PART III

NATURAL RESOURCES

       NEW SECTION. Sec. 301. FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $213,000General Fund--State Appropriation (FY 1999)$222,000General Fund--Private/Local Appropriation$435,000TOTAL APPROPRIATION$870,000

       The appropriations in this section are subject to the following condition and limitation: $120,000 of the general fund--state appropriation for fiscal year 1998, $120,000 of the general fund--state appropriation for fiscal year 1999, and $240,000 of the general fund--local appropriation are provided solely for each Columbia river gorge county to receive an $80,000 grant for the purposes of implementing the scenic area management plan. If a Columbia river gorge county has not adopted an ordinance to implement the scenic area management plan in accordance with the national scenic area act (P.L. 99-663), then the grant funds for that county may be used by the commission to implement the plan for that county.

       NEW SECTION. Sec. 302. FOR THE DEPARTMENT OF ECOLOGY

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,749,000General Fund--State Appropriation (FY 1999)$27,794,000General Fund--Federal Appropriation$45,315,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $643,000Special Grass Seed Burning Research Account Appropriation$42,000Reclamation Revolving Account Appropriation$2,441,000Flood Control Assistance Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                 4,850,000State Emergency Water Projects Revolving AccountAppropriation$319,000Waste Reduction/Recycling/Litter ControlAppropriation$10,316,000State and Local Improvements Revolving Account               (Waste Facilities) Appropriation. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $601,000State and Local Improvements Revolving Account(Water Supply Facilities) Appropriation$1,366,000Basic Data Account Appropriation$182,000Vehicle Tire Recycling Account Appropriation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,194,000Water Quality Account Appropriation$2,892,000Wood Stove Education and Enforcement AccountAppropriation$1,055,000Worker and Community Right-to-Know Account                  Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $469,000State Toxics Control Account Appropriation$53,160,000Local Toxics Control Account Appropriation$4,342,000Water Quality Permit Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,378,000Underground Storage Tank Account Appropriation$2,443,000Solid Waste Management Account Appropriation$1,021,000Hazardous Waste Assistance Account Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,615,000Air Pollution Control Account Appropriation$16,224,000Oil Spill Administration Account Appropriation$6,958,000Air Operating Permit Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,033,000Freshwater Aquatic Weeds Account Appropriation$1,829,000Oil Spill Response Account Appropriation$7,078,000Metals Mining Account Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,000Water Pollution Control Revolving Account--StateAppropriation$349,000Water Pollution Control Revolving Account--FederalAppropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,726,000Biosolids Permit Account Appropriation$567,000Environmental Excellence Account Appropriation$247,000TOTAL APPROPRIATION$251,240,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $3,211,000 of the general fund--state appropriation for fiscal year 1998, $3,211,000 of the general fund--state appropriation for fiscal year 1999, $394,000 of the general fund--federal appropriation, $2,017,000 of the oil spill administration account, $819,000 of the state toxics control account appropriation, and $3,591,000 of the water quality permit fee account are provided solely for the implementation of the Puget Sound work plan and agency action items DOE-01, DOE-02, DOE-03, DOE-04, DOE-05, DOE-06, DOE-07, DOE-08, and DOE-09.                 (2) $2,000,000 of the state toxics control account appropriation is provided solely for the following purposes:                    (a) To conduct remedial actions for sites for which there are no potentially liable persons, for which potentially liable persons cannot be found, or for which potentially liable persons are unable to pay for remedial actions; and                  (b) To provide funding to assist potentially liable persons under RCW 70.105D.070(2)(d)(xi) to pay for the cost of the remedial actions; and        (c) To conduct remedial actions for sites for which potentially liable persons have refused to conduct remedial actions required by the department; and                     (d) To contract for services as necessary to support remedial actions.              (3) $1,500,000 of the general fund--state appropriation for fiscal year 1998 and $1,900,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the processing of water right permit applications, continued implementation of water resources data management systems, and providing technical and data support to local watershed planning efforts in accordance with sections 101 through 116 of Second Substitute House Bill No. 2054 (water resource management). If any of sections 101 through 116 of Second Substitute House Bill No. 2054 is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.                  (4) $2,500,000 of the general fund--state appropriation for fiscal year 1998 and $2,500,000 of the general fund--state appropriation for fiscal year 1999 are appropriated for grants to local WRIA planning units established in accordance with sections 101 through 116 of Second Substitute House Bill No. 2054 (water resource management). If any of sections 101 through 116 of Second Substitute House Bill No. 2054 is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.              (5) $200,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the implementation of Engrossed Substitute House Bill No. 1111 (water rights). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.                  (6) $200,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the implementation of Engrossed Substitute House Bill No. 1118 (reopening a water rights claim filing period). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.                  (7) $3,600,000 of the general fund--state appropriation for fiscal year 1998 and $3,600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the auto emissions inspection and maintenance program. Expenditures of the amounts provided in this subsection are contingent upon a like amount being deposited in the general fund from the auto emission inspection fees in accordance with RCW 70.120.170(4).              (8) $170,000 of the oil spill administration account appropriation is provided solely for implementation of the Puget Sound work plan action item UW-02 through a contract with the University of Washington's Sea Grant program in order to develop an educational program that targets small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.       (9) The merger of the office of marine safety into the department of ecology shall be accomplished in a manner that will maintain a priority focus on oil spill prevention, as well as maintain a strong oil spill response capability. The merged program shall be established to provide a high level of visibility and ensure that there shall not be a diminution of the existing level of effort from the merged programs.           (10) The entire environmental excellence account appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. In implementing the bill, the department shall organize the needed expertise to process environmental excellence applications after an application has been received.     (11) $200,000 of the freshwater aquatic weeds account appropriation is provided solely to address saltcedar weed problems.             (12) $4,498,000 of the waste reduction/recycling/litter control account appropriation is provided for fiscal year 1998 to be expended in accordance with Second Substitute Senate Bill No. 5842 (litter control and recycling). From the amount provided for fiscal year 1998, the department shall provide $352,000 through an interagency agreement to the department of corrections to hire correctional crews to remove litter in areas that are not accessible to youth crews. $5,818,000 of the waste reduction/recycling/litter control account appropriation is provided for fiscal year 1999. The amount provided for fiscal year 1999 is to remain in unallotted status until the recommendations of the task force established in Second Substitute Senate Bill No. 5842 are acted upon by the legislature during the 1998 legislative session. If Substitute Senate Bill No. 5842 is not enacted by June 30, 1997, the amount provided for fiscal year 1999 shall lapse.      (13) The entire biosolids permit account appropriation is provided solely for implementation of Engrossed Senate Bill No. 5590 (biosolids management). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.                   (14) $29,000 of the general fund--state appropriation for fiscal year 1998 and $99,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.                     (15) $60,000 of the freshwater aquatic weeds account appropriation is provided solely for a grant to the department of fish and wildlife to control and eradicate purple loosestrife using the most cost-effective methods available, including chemical control where appropriate.              (16) $250,000 of the flood control assistance account appropriation is provided solely as a reappropriation to complete the Skokomish valley flood reduction plan. The amount provided in this subsection shall be reduced by the amount expended from this account for the Skokomish valley flood reduction plan during the biennium ending June 30, 1997.          (17) The number of special purpose vehicles in the department's fleet on July 1, 1997, shall be reduced by fifty percent as of June 30, 1999. Special purpose vehicles may be replaced by fuel efficient economy vehicles or not replaced at all depending on the vehicle requirements of the agency. An exception to this reduction in the number of special purpose vehicles is provided for those special purpose vehicles used by the department's youth corps program. Special purpose vehicle is defined as a four-wheel drive off-road motor vehicle.               (18) $600,000 of the flood control assistance account appropriation is provided solely to complete flood control projects that were awarded funds during the 1995-97 biennium. These funds shall be spent only to complete projects that could not be completed during the 1995-97 biennium due to delays caused by weather or delays in the permitting process.      (19) $113,000 of the general fund--state appropriation for fiscal year 1998 and $112,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5505 (assistance to water applicants). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.                     (20) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5785 (consolidation of groundwater rights). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.          (21) $20,000 of the general fund--state appropriation for fiscal year 1998 and $20,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5276 (water right applications). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.                  (22) $35,000 of the general fund--state appropriation for fiscal year 1998 and $35,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5030 (lakewater irrigation). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.     (23) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the continuation of the southwest Washington coastal erosion study.

       NEW SECTION. Sec. 303. FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,026,000General Fund--State Appropriation (FY 1999)$20,835,000General Fund--Federal Appropriation$2,428,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $59,000Winter Recreation Program Account Appropriation$759,000Off Road Vehicle Account Appropriation$251,000Snowmobile Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,290,000Aquatic Lands Enhancement Account Appropriation$321,000Public Safety and Education Account Appropriation$48,000Industrial Insurance Premium Refund Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000Waste Reduction/Recycling/Litter Control Appropriation$34,000Water Trail Program Account Appropriation$14,000Parks Renewal and Stewardship Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,344,000TOTAL APPROPRIATION$73,419,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $189,000 of the aquatic lands enhancement account appropriation is provided solely for the implementation of the Puget Sound work plan agency action items P&RC-01 and P&RC-03.   (2) $264,000 of the general fund--federal appropriation is provided for boater programs state-wide and for implementation of the Puget Sound work plan.      (3) $45,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a feasibility study of a public/private effort to establish a reserve for recreation and environmental studies in southwest Kitsap county.      (4) Within the funds provided in this section, the state parks and recreation commission shall provide to the legislature a status report on implementation of the recommendations contained in the 1994 study on the restructuring of Washington state parks. This status report shall include an evaluation of the campsite reservation system including the identification of any incremental changes in revenues associated with implementation of the system and a progress report on other enterprise activities being undertaken by the commission. The report may also include recommendations on other revenue generating options. In preparing the report, the commission is encouraged to work with interested parties to develop a long-term strategy to support the park system. The commission shall provide this report by December 1, 1997.                    (5) $85,000 of the general fund--state appropriation for fiscal year 1998 and $165,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development of underwater park programs and facilities. The department shall work with the underwater parks program task force to develop specific plans for the use of these funds.

       NEW SECTION. Sec. 304. FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Firearms Range Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,000Recreation Resources Account Appropriation$2,352,000NOVA Program Account Appropriation$590,000TOTAL APPROPRIATION$2,988,000

       The appropriations in this section are subject to the following conditions and limitations: Any proceeds from the sale of the PRISM software system shall be deposited into the recreation resources account.

       NEW SECTION. Sec. 305. FOR THE ENVIRONMENTAL HEARINGS OFFICE

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $780,000General Fund Appropriation (FY 1999)$773,000TOTAL APPROPRIATION$1,553,000

       The appropriations in this section are subject to the following conditions and limitations: $4,000 of the general fund appropriation for fiscal year 1998 and $4,000 of the general fund appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5119 (forest practices appeals board). If this bill is not enacted by June 30, 1997, $4,000 of the general fund appropriation for fiscal year 1998 and $4,000 of the general fund appropriation for fiscal year 1999 shall lapse.

       NEW SECTION. Sec. 306. FOR THE CONSERVATION COMMISSION

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $838,000General Fund Appropriation (FY 1999)$840,000Water Quality Account Appropriation$440,000TOTAL APPROPRIATION$2,118,000

       The appropriations in this section are subject to the following conditions and limitations: $181,000 of the general fund appropriation for fiscal year 1998, $181,000 of the general fund appropriation for fiscal year 1999, and $130,000 of the water quality account appropriation are provided solely for the implementation of the Puget Sound work plan agency action item CC-01.

       NEW SECTION. Sec. 307. FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,049,000General Fund--State Appropriation (FY 1999)$36,571,000General Fund--Federal Appropriation$73,015,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,758,000Off Road Vehicle Account Appropriation$488,000Aquatic Lands Enhancement Account Appropriation$5,593,000Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $590,000Industrial Insurance Premium Refund Appropriation$120,000Recreational Fisheries Enhancement Appropriation$2,387,000Warm Water Game Fish Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,419,000Wildlife Account Appropriation$52,372,000Game Special Wildlife Account--State Appropriation$1,911,000Game Special Wildlife Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,844,000Game Special Wildlife Account--Private/LocalAppropriation$350,000Oil Spill Administration Account Appropriation$843,000Environmental Excellence Account Appropriation$20,000Eastern Washington Pheasant Enhancement AccountAppropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $547,000TOTAL APPROPRIATION$250,877,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,181,000 of the general fund--state appropriation for fiscal year 1998 and $1,181,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action items DFW-01, DFW-03, DFW-04, and DFW-8 through DFW-15.      (2) $188,000 of the general fund--state appropriation for fiscal year 1998 and $155,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a maintenance and inspection program for department-owned dams. The department shall submit a report to the governor and the appropriate legislative committees by October 1, 1998, on the status of department-owned dams. This report shall provide a recommendation, including a cost estimate, on whether each facility should continue to be maintained or should be decommissioned.          (3) $832,000 of the general fund--state appropriation for fiscal year 1998 and $825,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement salmon recovery activities and other actions required to respond to federal listings of salmon species under the endangered species act.           (4) $350,000 of the wildlife account appropriation, $72,000 of the general fund--state appropriation for fiscal year 1998, and $73,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for control and eradication of class B designate weeds on department owned and managed lands. The amounts from the general fund--state appropriations are provided solely for control of spartina.         (5) $140,000 of the wildlife account appropriation is provided solely for a cooperative effort with the department of agriculture for research and eradication of purple loosestrife on state lands.      (6) In controlling weeds on state-owned lands, the department shall use the most cost-effective methods available, including chemical control where appropriate, and the department shall report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.          (7) A maximum of $1,000,000 is provided from the wildlife fund for fiscal year 1998. The amount provided in this subsection is for the emergency feeding of deer and elk that may be starving and that are posing a risk to private property due to severe winter conditions during the winter of 1997-98. The amount expended under this subsection must not exceed the amount raised pursuant to section 3 of Substitute House Bill No. 1478. Of the amount expended under this subsection, not more than fifty percent may be from fee revenue generated pursuant to section 3 of Substitute House Bill No. 1478. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.         (8) $193,000 of the general fund--state appropriation for fiscal year 1998, $194,000 of the general fund--state appropriation for fiscal year 1999, and $300,000 of the wildlife account appropriation are provided solely for the design and development of an automated license system.      (9) The department is directed to offer for sale its Cessna 421 aircraft by June 30, 1998. Proceeds from the sale shall be deposited in the wildlife account.                 (10) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to continue the department's habitat partnerships program during the 1997-99 biennium.              (11) $350,000 of the general fund--state appropriation for fiscal year 1998 and $350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purchase of monitoring equipment necessary to fully implement mass marking of coho salmon.                     (12) $238,000 of the general fund--state appropriation for fiscal year 1998 and $219,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.   (13) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the United States department of agriculture to carry out animal damage control projects throughout the state related to cougars, bears, and coyotes.                  (14) $97,000 of the general fund--state appropriation for fiscal year 1998 and $98,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement animal damage control programs for Canada geese in the lower Columbia river basin.              (15) $170,000 of the general fund--state appropriation for fiscal year 1998, $170,000 of the general fund--state appropriation for fiscal year 1999, and $360,000 of the wildlife account appropriation are provided solely to hire additional enforcement officers to address problem wildlife throughout the state.      (16) $197,000 of the general fund--state appropriation for fiscal year 1998 and $196,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5120 (remote site incubators). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.     (17) $133,000 of the general fund--state appropriation for fiscal year 1998 and $133,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5442 (flood control permitting). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.      (18) $105,000 of the recreational fisheries enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5886 (regional enhancement groups). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.      (19) $100,000 of the aquatic lands enhancement account appropriation is provided solely for grants to the regional fisheries enhancement groups.               (20) $547,000 of the eastern Washington pheasant enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5104 (pheasant enhancement program). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.         (21) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to hire Washington conservation corps crews to maintain department-owned and managed lands.        (22) The entire environmental excellence account appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.      (23) $156,000 of the recreational fisheries enhancement appropriation is provided solely for Substitute Senate Bill No. 5102 (fishing license surcharge). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.   (24) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for staffing and operation of the Tenant Lake interpretive center.

       NEW SECTION. Sec. 308. FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,117,000General Fund--State Appropriation (FY 1999)$25,518,000General Fund--Federal Appropriation$1,156,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $422,000Forest Development Account Appropriation$49,923,000Off Road Vehicle Account Appropriation$3,628,000Surveys and Maps Account Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,088,000Aquatic Lands Enhancement Account Appropriation$4,869,000Resources Management Cost Account Appropriation$89,613,000Waste Reduction/Recycling/Litter Control         Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $450,000Surface Mining Reclamation Account Appropriation$1,420,000Aquatic Land Dredged Material Disposal Site AccountAppropriation$751,000Natural Resources Conservation Areas Stewardship

      Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $77,000Air Pollution Control Account Appropriation$890,000Metals Mining Account Appropriation$62,000TOTAL APPROPRIATION$205,984,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $7,017,000 of the general fund--state appropriation for fiscal year 1998 and $6,900,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for emergency fire suppression.         (2) $18,000 of the general fund--state appropriation for fiscal year 1998, $18,000 of the general fund--state appropriation for fiscal year 1999, and $957,000 of the aquatic lands enhancement account appropriation are provided solely for the implementation of the Puget Sound work plan agency action items DNR-01, DNR-02, and DNR-04.                       (3) $450,000 of the resource management cost account appropriation is provided solely for the control and eradication of class B designate weeds on state lands. The department shall use the most cost-effective methods available, including chemical control where appropriate, and report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.          (4) $2,682,000 of the general fund--state appropriation for fiscal year 1998 and $3,063,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for fire protection activities.                (5) $541,000 of the general fund--state appropriation for fiscal year 1998 and $549,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the stewardship of natural area preserves, natural resource conservation areas, and the operation of the natural heritage program.          (6) $2,300,000 of the aquatic lands enhancement account appropriation is provided for the department's portion of the Eagle Harbor settlement.               (7) $195,000 of the general fund--state appropriation for fiscal year 1998 and $220,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.         (8) $600,000 of the general fund--state appropriation for fiscal year 1998 and $600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the cooperative monitoring, evaluation, and research projects related to implementation of the timber-fish-wildlife agreement.                   (9) $6,568,000 of the forest development account appropriation is provided solely for silviculture activities on forest board lands. To the extent that forest board counties apply for reconveyance of lands pursuant to Substitute Senate Bill No. 5325 (county land transfers), the amount provided in this subsection shall be reduced by an amount equal to the estimated silvicultural expenditures planned in each county that applies for reconveyance.

       NEW SECTION. Sec. 309. FOR THE DEPARTMENT OF AGRICULTURE

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,596,000General Fund--State Appropriation (FY 1999)$7,008,000General Fund--Federal Appropriation$4,716,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $405,000Aquatic Lands Enhancement Account Appropriation$806,000Industrial Insurance Premium RefundAppropriation$184,000State Toxics Control Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                                   1,338,000TOTAL APPROPRIATION$22,053,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $35,000 of the general fund--state appropriation for fiscal year 1998 and $36,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for technical assistance on pesticide management including the implementation of the Puget Sound work plan agency action item DOA-01.      (2) $461,000 of the general fund--state appropriation for fiscal year 1998 and $361,000 of the general fund--federal appropriation are provided solely to monitor and eradicate the Asian gypsy moth.                 (3) $138,000 of the general fund--state appropriation for fiscal year 1998 and $138,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for two additional staff positions in the plant protection program.               (4) $12,000 of the general fund--state appropriation for fiscal year 1998 and $13,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute Senate Bill No. 5077 (integrated pest management). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

       NEW SECTION. Sec. 310. FOR THE WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM

Pollution Liability Insurance Program Trust Account                    Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . $                                                                                                                                                                               909,000

PART IV

TRANSPORTATION

       NEW SECTION. Sec. 401. FOR THE DEPARTMENT OF LICENSING

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,536,000General Fund Appropriation (FY 1999)$4,409,000Architects' License Account Appropriation$857,000Cemetery Account Appropriation$188,000Professional Engineers' Account Appropriation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,674,000Real Estate Commission Account Appropriation$6,708,000Master License Account Appropriation$6,998,000Uniform Commercial Code Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,291,000Real Estate Education Account Appropriation$606,000Funeral Directors And Embalmers Account Appropriation$409,000TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                    31,676,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $21,000 of the general fund fiscal year 1998 appropriation and $22,000 of the general fund fiscal year 1999 appropriation are provided solely to implement House Bill No. 1827 or Senate Bill No. 5754 (boxing, martial arts, wrestling). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.   (2) $40,000 of the master license account appropriation is provided solely to implement Substitute Senate Bill No. 5483 (whitewater river outfitters). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.      (3) $229,000 of the general fund fiscal year 1998 appropriation and $195,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Senate Bill No. 5997 (cosmetology inspections). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.            (4) $31,000 of the general fund fiscal year 1998 appropriation, $1,000 of the general fund fiscal 1999 appropriation, $7,000 of the architects' license account appropriation, $18,000 of the professional engineers' account appropriation, $14,000 of the real estate commission account appropriation, $40,000 of the master license account appropriation, and $3,000 of the funeral directors and embalmers account appropriation are provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.      (5) $17,000 of the professional engineers' account appropriation is provided solely to implement Senate Bill No. 5266 (engineers/land surveyors). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.               (6) $110,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Senate Bill No. 5998 (cosmetology advisory board). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.            (7) $74,000 of the uniform commercial code account appropriation is provided solely to implement Engrossed Senate Bill No. 5163 (UCC filing). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.       (8) $11,000 of the general fund fiscal year 1998 appropriation and $2,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute House Bill No. 1748 or Substitute Senate Bill No. 5513 (vessel registration). If neither bill is enacted by June 30, 1997, the amount provided in this subsection shall lapse.

       NEW SECTION. Sec. 402. FOR THE STATE PATROL

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,712,000General Fund--State Appropriation (FY 1999)$7,850,000General Fund--Federal Appropriation$3,990,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $341,000Public Safety and Education Account Appropriation$4,652,000County Criminal Justice Assistance AccountAppropriation$3,905,000Municipal Criminal Justice Assistance Account                     Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,573,000Fire Service Trust Account Appropriation$92,000Fire Service Training Account Appropriation$1,762,000State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $439,000Violence Reduction and Drug Enforcement AccountAppropriation$310,000Fingerprint Identification Account Appropriation$3,082,000TOTAL APPROPRIATION. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                    35,708,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $254,000 of the fingerprint identification account appropriation is provided solely for an automated system that will facilitate the access of criminal history records remotely by computer or telephone for preemployment background checks and other non-law enforcement purposes. The agency shall submit an implementation status report to the office of financial management and the legislature by September 1, 1997.          (2) $264,000 of the general fund--federal appropriation is provided solely for a feasibility study to develop a criminal investigation computer system. The study will report on the feasibility of developing a system that uses incident-based reporting as its foundation, consistent with FBI standards. The system will have the capability of connecting with local law enforcement jurisdictions as well as fire protection agencies conducting arson investigations. The study will report on the system requirements for incorporating case management, intelligence data, imaging, and geographic information. The system will also provide links to existing crime information databases such as WASIS and WACIC. The agency shall submit a copy of the proposed study workplan to the office of financial management and the department of information services for approval prior to expenditure. A final report shall be submitted to the appropriate committees of the legislature, the office of financial management, and the department of information services no later than June 30, 1998.

PART V

EDUCATION

       NEW SECTION. Sec. 501. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR STATE ADMINISTRATION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,575,000General Fund--State Appropriation (FY 1999)$46,152,000General Fund--Federal Appropriation$49,439,000Public Safety and Education Account                 Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                              2,598,000Health Services Account Appropriation$400,000Violence Reduction and Drug Enforcement AccountAppropriation$3,672,000Education Savings Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                              29,312,000TOTAL APPROPRIATION$156,148,000

      The appropriations in this section are subject to the following conditions and limitations:

      (1) AGENCY OPERATIONS                (a) $394,000 of the general fund--state appropriation for fiscal year 1998 and $394,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities.            (b)(i) $250,000 of the general fund--state appropriation for fiscal year 1998 and $250,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enhancing computer systems and support in the office of superintendent of public instruction. These amounts shall be used to: Make a database of school information available electronically to schools, state government, and the general public; reduce agency and school district administrative costs through more effective use of technology; and replace paper reporting and publication to the extent feasible with electronic media. The superintendent, in cooperation with the commission on student learning, shall develop a state student record system including elements reflecting student achievement. The system shall be made available to the office of financial management and the legislature with suitable safeguards of student confidentiality. The superintendent shall report to the office of financial management and the legislative fiscal committees by December 1 of each year of the biennium on the progress and plans for the expenditure of these amounts.               (ii) The superintendent, in cooperation with the commission on student learning, shall develop a feasibility plan for a state student record system, including elements reflecting student academic achievement on goals 1 and 2 under RCW 28A.150.210. The feasibility plan shall be made available to the office of financial management and the fiscal and education committees of the legislature for approval before a student records database is established, and shall identify data elements to be collected and suitable safeguards of student confidentiality and proper use of database records, with particular attention to eliminating unnecessary and intrusive data about nonacademic related information.          (c) $348,000 of the public safety and education account appropriation is provided solely for administration of the traffic safety education program, including in-service training related to instruction in the risks of driving while under the influence of alcohol and other drugs.                (d) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5394 or Substitute House Bill No. 1776 (school audit resolutions). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.        (e) The superintendent of public instruction shall not accept, allocate, or expend any federal funds to implement the federal goals 2000 program.

      (2) STATE-WIDE PROGRAMS           (a) $2,174,000 of the general fund--state appropriation is provided for in-service training and educational programs conducted by the Pacific Science Center.                  (b) $63,000 of the general fund--state appropriation is provided for operation of the Cispus environmental learning center.                (c) $2,754,000 of the general fund--state appropriation is provided for educational centers, including state support activities.                 (d) $2,500,000 of the general fund--state fiscal year 1998 appropriation and $2,500,000 of the general fund--state fiscal year 1999 appropriation are for initiatives to improve reading in early grades as identified in legislation enacted by the 1997 legislature, including Second Substitute Senate Bill No. 5508 and Engrossed Second Substitute House Bill No. 2042, including section 4 of the bill. Amounts appropriated in this subsection 2(d) shall lapse unless both bills are enacted as passed by the legislature.          (e) $3,672,000 of the violence reduction and drug enforcement account appropriation and $2,250,000 of the public safety education account appropriation are provided solely for matching grants to enhance security in schools. Not more than seventy-five percent of a district's total expenditures for school security in any school year may be paid from a grant under this subsection. The grants shall be expended solely for the costs of employing or contracting for building security monitors in schools during school hours and school events. Of the amount provided in this subsection, at least $2,850,000 shall be spent for grants to districts that, during the 1988-89 school year, employed or contracted for security monitors in schools during school hours. However, these grants may be used only for increases in school district expenditures for school security over expenditure levels for the 1988-89 school year.                     (f) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation transferred from the department of health are provided solely for a program that provides grants to school districts for media campaigns promoting sexual abstinence and addressing the importance of delaying sexual activity, pregnancy, and childbearing until individuals are ready to nurture and support their children. Grants to the school districts shall be for projects that are substantially designed and produced by students. The grants shall require a local private sector match equal to one-half of the state grant, which may include in-kind contribution of technical or other assistance from consultants or firms involved in public relations, advertising broadcasting, and graphics or video production or other related fields.        (g) $1,500,000 of the general fund--state appropriation for fiscal year 1998 and $1,500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. Allocation of this money to school districts shall be based on the number of petitions filed.    (h) $300,000 of the general fund--state appropriation is provided for alcohol and drug prevention programs pursuant to RCW 66.08.180.        (i)(i) $5,000,000 of the general fund--state appropriation and $14,656,000 of the education savings account appropriation for fiscal year 1998 and $5,000,000 of the general fund--state appropriation and $14,656,000 of the education savings account appropriation for fiscal year 1999 are provided solely for matching grants and related state activities to provide school district consortia with programs utilizing technology to improve learning. A maximum of $100,000 each fiscal year of this amount is provided for administrative support and oversight of the K-20 network by the superintendent of public instruction. The superintendent of public instruction shall convene a technology grants committee representing private sector technology, school districts, and educational service districts to recommend to the superintendent grant proposals that have the best plans for improving student learning through innovative curriculum using technology as a learning tool and evaluating the effectiveness of the curriculum innovations. After considering the technology grants committee recommendations, the superintendent shall make matching grant awards, including granting at least fifteen percent of funds on the basis of criteria in (ii)(A) through (C) of this subsection (2)(h).              (ii) Priority for award of funds will be to (A) school districts most in need of assistance due to financial limits, (B) school districts least prepared to take advantage of technology as a means of improving student learning, and (C) school districts in economically distressed areas. The superintendent of public instruction, in consultation with the technology grants committee, shall propose options to the committee for identifying and prioritizing districts according to criteria in (i) and (ii) of this subsection (2)(i).          (iii) Options for review criteria to be considered by the superintendent of public instruction include, but are not limited to, free and reduced lunches, levy revenues, ending fund balances, equipment inventories, and surveys of technology preparedness. An "economically distressed area" is (A) a county with an unemployment rate that is at least twenty percent above the state-wide average for the previous three years; (B) a county that has experienced sudden and severe or long-term and severe loss of employment, or erosion of its economic base resulting in decline of its dominant industries; or (C) a district within a county which (I) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (II) has an unemployment rate which is at least forty percent higher than the county's unemployment rate.        (j) $50,000 of the general fund--state appropriations is provided as matching funds for district contributions to provide analysis of the efficiency of school district business practices. The superintendent of public instruction shall establish criteria, make awards, and provide a report to the fiscal committees of the legislature by December 15, 1997, on the progress and details of analysis funded under this subsection (2)(j).              (k) $1,816,000 of the general fund--state fiscal year 1998 appropriation and $3,378,000 of the general fund--state fiscal year 1999 appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 2019, Substitute Senate Bill No. 5764, or Senate Bill No. 7901 (charter schools). If none of the bills is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.         (i) The fiscal year 1998 amount appropriated in this subsection is provided for expenditure as follows:              (A) A maximum of $300,000 for the appeals process;      (B) A maximum of $75,000 for the study of charter schools;      (C) A maximum of $530,000 for startup loans; and               (D) $911,000 for apportionment to charter schools based on enrollment and other workload factors.                 (ii) The fiscal year 1999 amount appropriated in this subsection is provided for expenditure as follows:      (A) A maximum of $300,000 for the appeals process;           (B) A maximum of $75,000 for the study of charter schools;      (C) A maximum of $532,000 for startup loans; and               (D) $2,471,000 for apportionment to charter schools based on enrollment and other workload factors.          (l) $19,977,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the purchase of classroom instructional materials and supplies. The superintendent shall allocate the funds at a maximum rate of $20.82 per full-time equivalent student, beginning September 1, 1998, and ending June 30, 1999. The expenditure of the funds shall be determined at each school site by the school building staff, parents, and the community. School districts shall distribute all funds received to school buildings without deduction.         (m) $15,000 of the general fund--state appropriation is provided solely to assist local districts vocational education programs in applying for low frequency FM radio licenses with the federal communications commission.               (n) $35,000 of the general fund--state appropriation is provided solely to the state board of education to design a program to encourage high school students and other adults to pursue careers as vocational education teachers in the subject matter of agriculture.                    (o) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for allocation to the primary coordinators of the state geographic alliance to improve the teaching of geography in schools.      (p) $1,000,000 of the general fund--state appropriation is provided for state administrative costs and start-up grants for alternative programs and services that improve instruction and learning for at-risk students consistent with the objectives of Engrossed Substitute House Bill No. 1378 (educational opportunities). Each grant application shall contain proposed performance indicators and an evaluation plan to measure the success of the program and its impact on improved student learning. Applications shall contain the applicant's plan for maintaining the program and/or services after the grant period, shall address the needs of students who cannot be accommodated within the framework of existing school programs or services and shall address how the applicant will serve any student within the proposed program's target age range regardless of the reason for truancy, suspension, expulsion, or other disciplinary action. Up to $50,000 per year may be used by the superintendent of public instruction for grant administration. The superintendent shall submit an evaluation of the alternative program start-up grants provided under this section, and section 501(2)(q), chapter 283, Laws of 1996, to the fiscal and education committees of the legislature by November 15, 1998. Grants shall be awarded to applicants showing the greatest potential for improved student learning for at-risk students including:             (i) Students who have been suspended, expelled, or are subject to other disciplinary actions;              (ii) Students with unexcused absences who need intervention from community truancy boards or family support programs;      (iii) Students who have left school; and                 (iv) Students involved with the court system.          The office of the superintendent of public instruction shall prepare a report describing student recruitment, program offerings, staffing practices, and available indicators of program effectiveness of alternative education programs funded with state and, to the extent information is available, local funds. The report shall contain a plan for conducting an evaluation of the educational effectiveness of alternative education programs.

       NEW SECTION. Sec. 502. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR GENERAL APPORTIONMENT (BASIC EDUCATION)

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,429,727,000General Fund Appropriation (FY 1999)$3,511,157,000TOTAL APPROPRIATION$6,940,884,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.              (2) Allocations for certificated staff salaries for the 1997-98 and 1998-99 school years shall be determined using formula-generated staff units calculated pursuant to this subsection. Staff allocations for small school enrollments in (d) through (f) of this subsection shall be reduced for vocational full-time equivalent enrollments. Staff allocations for small school enrollments in grades K-6 shall be the greater of that generated under (a) of this subsection, or under (d) and (e) of this subsection. Certificated staffing allocations shall be as follows:                    (a) On the basis of each 1,000 average annual full-time equivalent enrollments, excluding full-time equivalent enrollment otherwise recognized for certificated staff unit allocations under (c) through (f) of this subsection:      (i) Four certificated administrative staff units per thousand full-time equivalent students in grades K-12;  (ii) 49 certificated instructional staff units per thousand full-time equivalent students in grades K-3;              (iii) An additional 5.3 certificated instructional staff units for grades K-3. Any funds allocated for these additional certificated units shall not be considered as basic education funding;           (A) Funds provided under this subsection (2)(a)(iii) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3. For any school district documenting a lower certificated instructional staff ratio, the allocation shall be based on the district's actual grades K-3 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater;      (B) Districts at or above 51.0 certificated instructional staff per one thousand full-time equivalent students in grades K-3 may dedicate up to 1.3 of the 54.3 funding ratio to employ additional classified instructional assistants assigned to basic education classrooms in grades K-3. For purposes of documenting a district's staff ratio under this section, funds used by the district to employ additional classified instructional assistants shall be converted to a certificated staff equivalent and added to the district's actual certificated instructional staff ratio. Additional classified instructional assistants, for the purposes of this subsection, shall be determined using the 1989-90 school year as the base year;            (C) Any district maintaining a ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3 may use allocations generated under this subsection (2)(a)(iii) in excess of that required to maintain the minimum ratio established under RCW 28A.150.260(2)(b) to employ additional basic education certificated instructional staff or classified instructional assistants in grades 4-6. Funds allocated under this subsection (2)(a)(iii) shall only be expended to reduce class size in grades K-6. No more than 1.3 of the certificated instructional funding ratio amount may be expended for provision of classified instructional assistants; and    (iv) Forty-six certificated instructional staff units per thousand full-time equivalent students in grades 4-12;      (b) For school districts with a minimum enrollment of 250 full-time equivalent students whose full-time equivalent student enrollment count in a given month exceeds the first of the month full-time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full-time equivalent students been included in the normal enrollment count for that particular month;              (c) On the basis of full-time equivalent enrollment in:      (i) Vocational education programs approved by the superintendent of public instruction, a maximum of 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each 18.3 full-time equivalent vocational students. Beginning with the 1998-99 school year, districts documenting staffing ratios of less than 1 certificated staff per 18.3 students shall be allocated the greater of the total ratio in subsections (2)(a)(i) and (iv) of this section or the actual documented ratio;                   (ii) Skills center programs approved by the superintendent of public instruction, 0.92 certificated instructional staff units and 0.08 certificated administrative units for each 16.67 full-time equivalent vocational students;             (iii) Indirect cost charges, as defined by the superintendent of public instruction, to vocational-secondary programs shall not exceed 10 percent; and                  (iv) Vocational full-time equivalent enrollment shall be reported on the same monthly basis as the enrollment for students eligible for basic support, and payments shall be adjusted for reported vocational enrollments on the same monthly basis as those adjustments for enrollment for students eligible for basic support.                      (d) For districts enrolling not more than twenty-five average annual full-time equivalent students in grades K-8, and for small school plants within any school district which have been judged to be remote and necessary by the state board of education and enroll not more than twenty-five average annual full-time equivalent students in grades K-8:                 (i) For those enrolling no students in grades 7 and 8, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one-twentieth of a certificated instructional staff unit for each additional student enrolled; and                  (ii) For those enrolling students in grades 7 or 8, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one-tenth of a certificated instructional staff unit for each additional student enrolled;      (e) For specified enrollments in districts enrolling more than twenty-five but not more than one hundred average annual full-time equivalent students in grades K-8, and for small school plants within any school district which enroll more than twenty-five average annual full-time equivalent students in grades K-8 and have been judged to be remote and necessary by the state board of education:        (i) For enrollment of up to sixty annual average full-time equivalent students in grades K-6, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units; and              (ii) For enrollment of up to twenty annual average full-time equivalent students in grades 7 and 8, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units;              (f) For districts operating no more than two high schools with enrollments of less than three hundred average annual full-time equivalent students, for enrollment in grades 9-12 in each such school, other than alternative schools:      (i) For remote and necessary schools enrolling students in any grades 9-12 but no more than twenty-five average annual full-time equivalent students in grades K-12, four and one-half certificated instructional staff units and one-quarter of a certificated administrative staff unit;            (ii) For all other small high schools under this subsection, nine certificated instructional staff units and one-half of a certificated administrative staff unit for the first sixty average annual full time equivalent students, and additional staff units based on a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per each additional forty-three and one-half average annual full time equivalent students.               Units calculated under (f)(ii) of this subsection shall be reduced by certificated staff units at the rate of forty-six certificated instructional staff units and four certificated administrative staff units per thousand vocational full-time equivalent students.              (g) For each nonhigh school district having an enrollment of more than seventy annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit; and          (h) For each nonhigh school district having an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one-half of a certificated instructional staff unit.     (3) Allocations for classified salaries for the 1997-98 and 1998-99 school years shall be calculated using formula-generated classified staff units determined as follows:                  (a) For enrollments generating certificated staff unit allocations under subsection (2) (d) through (h) of this section, one classified staff unit for each three certificated staff units allocated under such subsections;        (b) For all other enrollment in grades K-12, including vocational full-time equivalent enrollments, one classified staff unit for each sixty average annual full-time equivalent students; and            (c) For each nonhigh school district with an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, an additional one-half of a classified staff unit.                (4) Fringe benefit allocations shall be calculated at a rate of 20.22 percent in the 1997-98 and 1998-99 school years for certificated salary allocations provided under subsection (2) of this section, and a rate of 18.65 percent in the 1997-98 and 1998-99 school years for classified salary allocations provided under subsection (3) of this section.          (5) Insurance benefit allocations shall be calculated at the maintenance rate specified in section 504(2) of this act, based on the number of benefit units determined as follows:      (a) The number of certificated staff units determined in subsection (2) of this section; and                  (b) The number of classified staff units determined in subsection (3) of this section multiplied by 1.152. This factor is intended to adjust allocations so that, for the purposes of distributing insurance benefits, full-time equivalent classified employees may be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full-time equivalent.              (6)(a) For nonemployee-related costs associated with each certificated staff unit allocated under subsection (2) (a), (b), and (d) through (h) of this section, there shall be provided a maximum of $7,950 per certificated staff unit in the 1997-98 school year and a maximum of $8,165 per certificated staff unit in the 1998-99 school year.      (b) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997-98 school year and a maximum of $15,556 per certificated staff unit in the 1998-99 school year.         (7) Allocations for substitute costs for classroom teachers shall be distributed at a maintenance rate of $354.64 per allocated classroom teachers exclusive of salary increase amounts provided in section 504 of this act. Solely for the purposes of this subsection, allocated classroom teachers shall be equal to the number of certificated instructional staff units allocated under subsection (2) of this section, multiplied by the ratio between the number of actual basic education certificated teachers and the number of actual basic education certificated instructional staff reported state-wide for the 1996-97 school year.               (8) Any school district board of directors may petition the superintendent of public instruction by submission of a resolution adopted in a public meeting to reduce or delay any portion of its basic education allocation for any school year. The superintendent of public instruction shall approve such reduction or delay if it does not impair the district's financial condition. Any delay shall not be for more than two school years. Any reduction or delay shall have no impact on levy authority pursuant to RCW 84.52.0531 and local effort assistance pursuant to chapter 28A.500 RCW.  (9) The superintendent may distribute a maximum of $6,124,000 outside the basic education formula during fiscal years 1998 and 1999 as follows:            (a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $447,000 may be expended in fiscal year 1998 and a maximum of $459,000 may be expended in fiscal year 1999;       (b) For summer vocational programs at skills centers, a maximum of $1,948,000 may be expended each fiscal year;         (c) A maximum of $321,000 may be expended for school district emergencies; and       (d) A maximum of $500,000 per fiscal year may be expended for programs providing skills training for secondary students who are enrolled in extended day school-to-work programs, as approved by the superintendent of public instruction. The funds shall be allocated at a rate not to exceed $500 per full-time equivalent student enrolled in those programs.             (10) For the purposes of RCW 84.52.0531, the increase per full-time equivalent student in state basic education appropriations provided under this act, including appropriations for salary and benefits increases, is 2.5 percent from the 1996-97 school year to the 1997-98 school year, and 1.1 percent from the 1997-98 school year to the 1998-99 school year.      (11) If two or more school districts consolidate and each district was receiving additional basic education formula staff units pursuant to subsection (2) (b) through (h) of this section, the following shall apply:                  (a) For three school years following consolidation, the number of basic education formula staff units shall not be less than the number of basic education formula staff units received by the districts in the school year prior to the consolidation; and           (b) For the fourth through eighth school years following consolidation, the difference between the basic education formula staff units received by the districts for the school year prior to consolidation and the basic education formula staff units after consolidation pursuant to subsection (2) (a) through (h) of this section shall be reduced in increments of twenty percent per year.

       NEW SECTION. Sec. 503. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--BASIC EDUCATION EMPLOYEE COMPENSATION

      (1) The following calculations determine the salaries used in the general fund allocations for certificated instructional, certificated administrative, and classified staff units under section 502 of this act:        (a) Salary allocations for certificated instructional staff units shall be determined for each district by multiplying the district's certificated instructional derived base salary shown on LEAP Document 12D, by the district's average staff mix factor for basic education and special education certificated instructional staff in that school year, computed using LEAP Document 1A; and   (b) Salary allocations for certificated administrative staff units and classified staff units for each district shall be based on the district's certificated administrative and classified salary allocation amounts shown on LEAP Document 12D.      (2) For the purposes of this section:       (a) "Basic education certificated instructional staff" is defined as provided in RCW 28A.150.100 and "special education certificated staff" means staff assigned to the state-supported special education program pursuant to chapter 28A.155 RCW in positions requiring a certificate;     (b) "LEAP Document 1A" means the computerized tabulation establishing staff mix factors for certificated instructional staff according to education and years of experience, as developed by the legislative evaluation and accountability program committee on April 8, 1991, at 13:35 hours; and           (c) "LEAP Document 12D" means the computerized tabulation of 1997-98 and 1998-99 school year salary allocations for basic education certificated administrative staff and basic education classified staff and derived base salaries for basic education certificated instructional staff as developed by the legislative evaluation and accountability program committee on March 21, 1997 at 16:37 hours.              (3) Incremental fringe benefit factors shall be applied to salary adjustments at a rate of 19.58 percent for certificated staff and 15.15 percent for classified staff for both years of the biennium.               (4)(a) Pursuant to RCW 28A.150.410, the following state-wide salary allocation schedules for certificated instructional staff are established for basic education salary allocations:

STATE-WIDE SALARY ALLOCATION SCHEDULEFOR THE 1997-98 AND 1998-99 SCHOOL YEARSYears ofServiceBABA+15BA+30BA+45BA+90

  0                                      22,950                     23,570                     24,212                     24,855                     26,920 1       23,702                                         24,342                     25,005                     25,690                     27,816 2                 24,469           25,129                                         25,812                     26,563                     28,725 3                 25,275                     25,955           26,657                                         27,450                     29,650 4                 26,095                     26,818                     27,540           28,375                                         30,632 5                 26,953                     27,695                     28,437                     29,336           31,629 6                                         27,847                     28,586                     29,370                     30,333                     32,661 7       28,756                                         29,513                     30,316                     31,341                     33,727 8                 29,678           30,477                                         31,299                     32,408                     34,827 9                                                 31,475           32,337                                         33,487                     35,962 10                                                                                33,388           34,621                                         37,129 11                                                                                                                35,788           38,351 12                                                                                                                                         36,918                     39,605 13                                                                                                                                               40,890 14                                                                                                                                               42,182 15 or more                                                                                                                                  43,279

Years of                                                                                                                            MA+90Service       BA+135         MA                                         MA+45                   or PHD

  0                                      28,251                     27,516                     29,581                     30,912 1                 29,165           28,351                                         30,477                     31,825 2                 30,115                     29,224                     31,386           32,774 3                                         31,100                     30,111                     32,311                     33,761 4                 32,123           31,036                                         33,293                     34,783 5                 33,180                     31,996                     34,290           35,840 6                                         34,250                     32,994                     35,322                     36,911 7                 35,377           34,002                                         36,388                     38,038 8                 36,537                     35,069                     37,488           39,198 9                                         37,730                     36,147                     38,623                     40,391 10                38,956           37,282                                         39,790                     41,617 11                40,214                     38,449                     41,012           42,875 12                                         41,525                     39,662                     42,266                     44,186 13                42,867           40,917                                         43,551                     45,528 14                44,260                     42,210                     44,927           46,921 15 or more                                         45,411                     43,307                     46,095                     48,141

      (b) As used in this subsection, the column headings "BA+(N)" refer to the number of credits earned since receiving the baccalaureate degree.               (c) For credits earned after the baccalaureate degree but before the masters degree, any credits in excess of forty-five credits may be counted after the masters degree. Thus, as used in this subsection, the column headings "MA+(N)" refer to the total of:      (i) Credits earned since receiving the masters degree; and     (ii) Any credits in excess of forty-five credits that were earned after the baccalaureate degree but before the masters degree.    (5) For the purposes of this section:       (a) "BA" means a baccalaureate degree.      (b) "MA" means a masters degree.         (c) "PHD" means a doctorate degree.     (d) "Years of service" shall be calculated under the same rules adopted by the superintendent of public instruction.            (e) "Credits" means college quarter hour credits and equivalent in-service credits computed in accordance with RCW 28A.415.020.           (6) No more than ninety college quarter-hour credits received by any employee after the baccalaureate degree may be used to determine compensation allocations under the state salary allocation schedule and LEAP documents referenced in this act, or any replacement schedules and documents, unless:                 (a) The employee has a masters degree; or   (b) The credits were used in generating state salary allocations before January 1, 1992.       (7)(a) Credits earned by certificated instructional staff after September 1, 1995, shall be counted only if the content of the course: (i) Is consistent with the school district's strategic plan for improving student learning; (ii) is consistent with a school-based plan for improving student learning as required by the annual school performance report, under RCW 28A.320.205, for the school in which the individual is assigned; (iii) pertains to the individual's current assignment or expected assignment for the following school year; (iv) is necessary for obtaining an endorsement as prescribed by the state board of education; (v) is specifically required for obtaining advanced levels of certification; or (vi) is included in a college or university degree program that pertains to the individual's current assignment, or potential future assignment, as a certificated instructional staff.      (b) Once credits earned by certificated instructional staff have been determined to meet one or more of the criteria in (a) of this subsection, the credits shall be counted even if the individual transfers to other school districts.                  (8) The salary allocation schedules established in this section are for allocation purposes only except as provided in RCW 28A.400.200(2).

       NEW SECTION. Sec. 504. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $79,975,000General Fund Appropriation (FY 1999)$116,311,000TOTAL APPROPRIATION$196,286,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $176,535,000 is provided for a cost of living adjustment of 3.0 percent effective September 1, 1997, for state formula staff units. The appropriations include associated incremental fringe benefit allocations at rates of 19.58 percent for certificated staff and 15.15 percent for classified staff.      (a) The appropriations in this section include the increased portion of salaries and incremental fringe benefits for all relevant state-funded school programs in part V of this act. Salary adjustments for state employees in the office of superintendent of public instruction and the education reform program are provided in part VII of this act. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in section 503 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in section 503 of this act.      (b) The appropriations in this section provide salary increase and incremental fringe benefit allocations based on formula adjustments as follows:          (i) For pupil transportation, an increase of $0.60 per weighted pupil-mile for the 1997-98 school year and maintained for the 1998-99 school year;               (ii) For education of highly capable students, an increase of $6.81 per formula student for the 1997-98 school year and maintained for the 1998-99 school year; and      (iii) For transitional bilingual education, an increase of $17.69 per eligible bilingual student for the 1997-98 school year and maintained for the 1998-99 school year; and                 (iv) For learning assistance, an increase of $8.74 per entitlement unit for the 1997-98 school year and maintained for the 1998-99 school year.                     (c) The appropriations in this section include $912,000 for salary increase adjustments for substitute teachers at a rate of $10.64 per unit in the 1997-98 school year and maintained in the 1998-99 school year.                  (2) $19,751,000 is provided for adjustments to insurance benefit allocations. The maintenance rate for insurance benefit allocations is $314.51 per month for the 1997-98 and 1998-99 school years. The appropriations in this section provide increases of $2.83 per month for the 1997-98 school year and $18.41 per month for the 1998-99 school year at the following rates:  (a) For pupil transportation, an increase of $0.03 per weighted pupil-mile for the 1997-98 school year and $0.19 for the 1998-99 school year;     (b) For education of highly capable students, an increase of $0.20 per formula student for the 1997-98 school year and $1.35 for the 1998-99 school year;         (c) For transitional bilingual education, an increase of $.46 per eligible bilingual student for the 1997-98 school year and $3.44 for the 1998-99 school year; and                 (d) For learning assistance, an increase of $.36 per funded unit for the 1997-98 school year and $2.70 for the 1998-99 school year.                  (3) The rates specified in this section are subject to revision each year by the legislature.  (4)(a) For the 1997-98 school year, the superintendent shall prepare a report showing the allowable derived base salary for certificated instructional staff in accordance with RCW 28A.400.200 and LEAP Document 12D, and the actual derived base salary paid by each school district as shown on the S-275 report and shall make the report available to the fiscal committees of the legislature no later than February 15, 1998.        (b) For the 1998-99 school year, the superintendent shall reduce the percent of salary increase funds provided in section 504 of this act by the percentage by which a district exceeds the allowable derived base salary for certificated instructional staff as shown on LEAP Document 12D.                  (5) Cost-of-living funds provided to school districts under this section for classified staff shall be distributed to each and every formula funded employee at 3.0 percent, effective September 1, 1997.

       NEW SECTION. Sec. 505. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PUPIL TRANSPORTATION

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $174,344,000General Fund Appropriation (FY 1999)$179,560,000TOTAL APPROPRIATION$353,904,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.              (2) A maximum of $1,451,000 may be expended for regional transportation coordinators and related activities. The transportation coordinators shall ensure that data submitted by school districts for state transportation funding shall, to the greatest extent practical, reflect the actual transportation activity of each district.               (3) $30,000 of the fiscal year 1998 appropriation and $40,000 of the fiscal year 1999 appropriation are provided solely for the transportation of students enrolled in "choice" programs. Transportation shall be limited to low-income students who are transferring to "choice" programs solely for educational reasons.                      (4) Allocations for transportation of students shall be based on reimbursement rates of $34.47 per weighted mile in the 1997-98 school year and $34.76 per weighted mile in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. Allocations for transportation of students transported more than one radius mile shall be based on weighted miles as determined by superintendent of public instruction times the per mile reimbursement rates for the school year pursuant to the formulas adopted by the superintendent of public instruction. Allocations for transportation of students living within one radius mile shall be based on the number of enrolled students in grades kindergarten through five living within one radius mile of their assigned school times the per mile reimbursement rate for the school year times 1.29.

       NEW SECTION. Sec. 506. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL FOOD SERVICE PROGRAMS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,075,000General Fund--State Appropriation (FY 1999)$3,075,000General Fund--Federal Appropriation$194,483,000TOTAL APPROPRIATION$200,633,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $6,000,000 of the general fund--state appropriations are provided for state matching money for federal child nutrition programs.                 (2) $150,000 of the general fund--state appropriations are provided for summer food programs for children in low-income areas.

       NEW SECTION. Sec. 507. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SPECIAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $370,486,000General Fund--State Appropriation (FY 1999)$374,327,000General Fund--Federal Appropriation$135,106,000TOTAL APPROPRIATION$879,919,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.              (2) The superintendent of public instruction shall distribute state funds to school districts based on two categories, the optional birth through age two program for special education eligible developmentally delayed infants and toddlers, and the mandatory special education program for special education eligible students ages three to twenty-one. A "special education eligible student" means a student receiving specially designed instruction in accordance with a properly formulated individualized education program.                 (3) For the 1997-98 and 1998-99 school years, the superintendent shall distribute state funds to each district based on the sum of:          (a) A district's annual average headcount enrollment of developmentally delayed infants and toddlers ages birth through two, times the district's average basic education allocation per full-time equivalent student, times 1.15; and               (b) A district's annual average full-time equivalent basic education enrollment times the funded enrollment percent determined pursuant to subsection (4)(c) of this section, times the district's average basic education allocation per full-time equivalent student times 0.9309.           (4) The definitions in this subsection apply throughout this section.      (a) "Average basic education allocation per full-time equivalent student" for a district shall be based on the staffing ratios required by RCW 28A.150.260 (i.e., 49/1000 certificated instructional staff in grades K-3, and 46/1000 in grades 4-12) and shall not include enhancements for K-3, secondary vocational education, or small schools.          (b) "Annual average full-time equivalent basic education enrollment" means the resident enrollment including students enrolled through choice (RCW 28A.225.225) and students from nonhigh districts (RCW 28A.225.210) and excluding students residing in another district enrolled as part of an interdistrict cooperative program (RCW 28A.225.250).                    (c) "Enrollment percent" means the district's resident special education annual average enrollment including those students counted under the special education demonstration projects, excluding the birth through age two enrollment, as a percent of the district's annual average full-time equivalent basic education enrollment. For the 1997-98 and the 1998-99 school years, each district's funded enrollment percent shall be:      (i) For districts whose enrollment percent for 1994-95 was at or below 12.7 percent, the lesser of the district's actual enrollment percent for the school year for which the allocation is being determined or 12.7 percent.        (ii) For districts whose enrollment percent for 1994-95 was above 12.7 percent, the lesser of:           (A) The district's actual enrollment percent for the school year for which the special education allocation is being determined; or                 (B) The district's actual enrollment percent for the school year immediately prior to the school year for which the special education allocation is being determined if greater than 12.7 percent; or           (C) For 1997-98, the 1994-95 enrollment percent reduced by 75 percent of the difference between the district's 1994-95 enrollment percent and 12.7 percent and for 1998-99, 12.7 percent.           (5) At the request of any interdistrict cooperative of at least 15 districts in which all excess cost services for special education students of the districts are provided by the cooperative, the maximum enrollment percent shall be 12.7, and shall be calculated in the aggregate rather than individual district units. For purposes of this subsection (4) of this section, the average basic education allocation per full-time equivalent student shall be calculated in the aggregate rather than individual district units.                   (6) A maximum of $12,000,000 of the general fund--state appropriation for fiscal year 1998 and a maximum of $12,000,000 of the general fund--state appropriation for fiscal year 1999 are provided as safety net funding for districts with demonstrated needs for state special education funding beyond the amounts provided in subsection (3) of this section. Safety net funding shall be awarded by the state safety net oversight committee.         (a) The safety net oversight committee shall first consider the needs of districts adversely affected by the 1995 change in the special education funding formula. Awards shall be based on the amount required to maintain the 1994-95 state special education excess cost allocation to the school district in aggregate or on a dollar per funded student basis.           (b) The committee shall then consider unusual needs of districts due to a special education population which differs significantly from the assumptions of the state funding formula. Awards shall be made to districts that convincingly demonstrate need due to the concentration and/or severity of disabilities in the district. Differences in program costs attributable to district philosophy or service delivery style are not a basis for safety net awards.      (7) Prior to June 1st of each year, the superintendent shall make available to each school district from available data the district's maximum funded enrollment percent for the coming school year.               (8) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Prior to revising any standards, procedures, or rules in place for the 1996-97 school year, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature.              (9) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:          (a) Staff of the office of superintendent of public instruction;           (b) Staff of the office of the state auditor;      (c) Staff from the office of the financial management; and                    (d) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.               (10) A maximum of $4,500,000 of the general fund--federal appropriation shall be expended for safety net funding to meet the extraordinary needs of one or more individual special education students.             (11) A maximum of $678,000 may be expended from the general fund--state appropriations to fund 5.43 full-time equivalent teachers and 2.1 full-time equivalent aides at children's orthopedic hospital and medical center. This amount is in lieu of money provided through the home and hospital allocation and the special education program.              (12) A maximum of $1,000,000 of the general fund--federal appropriation is provided for projects to provide special education students with appropriate job and independent living skills, including work experience where possible, to facilitate their successful transition out of the public school system. The funds provided by this subsection shall be from federal discretionary grants.            (13) A school district may carry over up to 10 percent of general fund--state funds allocated under this program; however, carry over funds shall be expended in the special education program.                (14) Beginning in the 1997-98 school year, the superintendent shall increase the percentage of federal flow-through to school districts to at least 84 percent. In addition to other purposes, school districts may use increased federal funds for high cost students, for purchasing regional special education services from educational service districts, and for staff development activities particularly relating to inclusion issues.      (15) Up to one percent of the general fund--federal appropriation shall be expended by the superintendent for projects related to use of inclusion strategies by school districts for provision of special education services. The superintendent shall prepare an information database on laws, best practices, examples of programs, and recommended resources. The information may be disseminated in a variety of ways, including workshops and other staff development activities.          (16) Amounts appropriated within this section are sufficient to fund section 5 of Second Substitute House Bill No. 1709 (mandate on school districts).

       NEW SECTION. Sec. 508. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR TRAFFIC SAFETY EDUCATION PROGRAMS

Public Safety and Education Account           Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                                                                                17,179,000

      The appropriation in this section is subject to the following conditions and limitations:       (1) The appropriation includes such funds as are necessary for the remaining months of the 1996-97 school year.           (2) A maximum of $507,000 shall be expended for regional traffic safety education coordinators.      (3) The maximum basic state allocation per student completing the program shall be $137.16 in the 1997-98 and 1998-99 school years.              (4) Additional allocations to provide tuition assistance for students from low-income families who complete the program shall be a maximum of $66.81 per eligible student in the 1997-98 and 1998-99 school years.

       NEW SECTION. Sec. 509. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR EDUCATIONAL SERVICE DISTRICTS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,511,000General Fund Appropriation (FY 1999)$4,510,000TOTAL APPROPRIATION$9,021,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The educational service districts shall continue to furnish financial services required by the superintendent of public instruction and RCW 28A.310.190 (3) and (4).      (2) $250,000 of the general fund appropriation for fiscal year 1998 and $250,000 of the general fund appropriation for fiscal year 1999 are provided solely for student teaching centers as provided in RCW 28A.415.100.                     (3) A maximum of $500,000 is provided for centers for the improvement of teaching pursuant to RCW 28A.415.010.

       NEW SECTION. Sec. 510. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR LOCAL EFFORT ASSISTANCE

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $84,598,000General Fund Appropriation (FY 1999)$89,354,000TOTAL APPROPRIATION$173,952,000

       NEW SECTION. Sec. 511. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR THE ELEMENTARY AND SECONDARY SCHOOL IMPROVEMENT ACT

General Fund--Federal Appropriation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                            255,987,000

       NEW SECTION. Sec. 512. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,327,000General Fund--State Appropriation (FY 1999)$19,131,000General Fund--Federal Appropriation$8,548,000TOTAL APPROPRIATION$46,006,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The general fund--state appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.      (2) State funding provided under this section is based on salaries and other expenditures for a 220-day school year. The superintendent of public instruction shall monitor school district expenditure plans for institutional education programs to ensure that districts plan for a full-time summer program.           (3) State funding for each institutional education program shall be based on the institution's annual average full-time equivalent student enrollment. Staffing ratios for each category of institution shall remain the same as those funded in the 1995-97 biennium.            (4) $758,000 of the general fund--state fiscal year 1998 appropriation and $704,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

       NEW SECTION. Sec. 513. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,752,000General Fund Appropriation (FY 1999)$6,176,000TOTAL APPROPRIATION$11,928,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.              (2) Allocations for school district programs for highly capable students shall be distributed at a maximum rate of $311.12 per funded student for the 1997-98 school year and $311.58 per funded student for the 1998-99 school year, exclusive of salary and benefit adjustments pursuant to section 504 of this act. The number of funded students shall be a maximum of two percent of each district's full-time equivalent basic education enrollment.      (3) $350,000 of the appropriation is for the centrum program at Fort Worden state park.                        (4) $186,000 of the appropriation is for the odyssey of the mind and future problem-solving programs.

       NEW SECTION. Sec. 514. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--EDUCATION REFORM PROGRAMS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,905,000General Fund Appropriation (FY 1999)$21,868,000TOTAL APPROPRIATION$40,773,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $18,103,000 is provided for the operation of the commission on student learning and the development and implementation of student assessments. The commission shall cooperate with the superintendent of public instruction in defining measures of student achievement to be included in the student record system developed by the superintendent pursuant to section 501(1)(b) of this act. The timelines for development of assessments are funded in accordance with the timelines proposed in Engrossed Second Substitute House Bill No. 1777.              (2) $2,190,000 is provided solely for training of paraprofessional classroom assistants and certificated staff who work with classroom assistants as provided in RCW 28A.415.310.     (3) $2,970,000 is provided for mentor teacher assistance, including state support activities, under RCW 28A.415.250 and 28A.415.260. Funds for the teacher assistance program shall be allocated to school districts based on the number of beginning teachers.      (4) $4,050,000 is provided for improving technology infrastructure, monitoring and reporting on school district technology development, promoting standards for school district technology, promoting statewide coordination and planning for technology development, and providing regional educational technology support centers, including state support activities, under chapter 28A.650 RCW.      (5) $7,200,000 is provided for grants to school districts to provide a continuum of care for children and families to help children become ready to learn. Grant proposals from school districts shall contain local plans designed collaboratively with community service providers. If a continuum of care program exists in the area in which the school district is located, the local plan shall provide for coordination with existing programs to the greatest extent possible. Grant funds shall be allocated pursuant to RCW 70.190.040.                       (6) $5,000,000 is provided solely for the meals for kids program under RCW 28A.235.145 through 28A.235.155.               (7) $1,260,000 is provided for technical assistance related to education reform through the office of the superintendent of public instruction, in consultation with the commission on student learning, as specified in RCW 28A.300.130 (center for the improvement of student learning).                   (8) The superintendent of public instruction shall not accept, allocate, or expend any federal funds to implement the federal goals 2000 program.

       NEW SECTION. Sec. 515. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,146,000General Fund Appropriation (FY 1999) $33,414,000TOTAL APPROPRIATION$64,560,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.              (2) The superintendent shall distribute a maximum of $643.78 per eligible bilingual student in the 1997-98 school year, exclusive of salary and benefit adjustments provided in section 504 of this act.  (3) A student shall be eligible for funding under this section if the student is enrolled in grades K-12 pursuant to WAC 392-121-106 and is receiving specialized instruction pursuant to chapter 28A.180 RCW.                (4) The superintendent shall distribute a maximum of $643.78 per eligible weighted bilingual student in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act.               (5) The following factors shall be used to calculate weightings for the 1998-99 school year.

      (a) Grades Level     (i) K-5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35                (ii) 6-8. . . . . . . . . . . . . . . . . . . . . . . . . .  .50                     (iii) 9-12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72

      (b) Time in Program               (i) Up to 1 year. . . . . . . . . . . . . . . . . . . . . . . . .82                (ii) 1 to 2 years. . . .. . . . . . . . . . . . . . . . . .  .62           (iii) 2 to 3 years . . . . . . . . . . . . . . . . . . . . . . . ..41                (iv) more than 3 years . . . . . . . . . . . . . . 21

      (c) The grade level weight and time in program weight shall be summed for each eligible student and the result shall be multiplied by the rate per weighted student specified in subsection (3) of this section.      (d) Time in program under (b) of this subsection shall be calculated in accordance with WAC 392-160-035.

       NEW SECTION. Sec. 516. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR THE LEARNING ASSISTANCE PROGRAM

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,309,000General Fund Appropriation (FY 1999)$60,862,000TOTAL APPROPRIATION$121,171,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.              (2) For making the calculation of the percentage of students scoring in the lowest quartile as compared with national norms, beginning with the 1991-92 school year, the superintendent shall multiply each school district's 4th and 8th grade test results by 0.86.          (3) Funding for school district learning assistance programs shall be allocated at maximum rates of $378.33 per funded unit for the 1997-98 school year and $379.47 per funded unit for the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. School districts may carryover up to 10 percent of funds allocated under this program; however, carryover funds shall be expended for the learning assistance program.      (a) A school district's funded units for the 1997-98 and 1998-99 school years shall be the sum of the following:                (i) The district's full-time equivalent enrollment in kindergarten through 6th grade, times the 5-year average 4th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and              (ii) The district's full-time equivalent enrollment in grades 7 through 9, times the 5-year average 8th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and             (iii) If in the prior school year the district's percentage of October headcount enrollment in grades K-12 eligible for free and reduced price lunch exceeded the state average, subtract the state average percentage of students eligible for free and reduced price lunch from the district's percentage and multiply the result by the district's K-12 annual average full-time equivalent enrollment for the current school year times 22.30 percent.

       NEW SECTION. Sec. 517. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--LOCAL ENHANCEMENT FUNDS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,404,000General Fund Appropriation (FY 1999)$51,375,000TOTAL APPROPRIATION$96,779,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) A maximum of $40,841,000 is provided for learning improvement allocations to school districts to enhance the ability of instructional staff to teach and assess the essential academic learning requirements for reading, writing, communication, and math in accordance with the timelines and requirements established under RCW 28A.630.885. However, special emphasis shall be given to the successful teaching of reading. Allocations under this section shall be subject to the following conditions and limitations:     (a) In accordance with the timetable for the implementation of the assessment system by the commission on student learning, the allocations for the 1997-98 and 1998-99 school years shall be at a maximum annual rate per full-time equivalent student of $30 for students enrolled in grades K-4, $24 for students enrolled in grades 5-7, and $18 for students enrolled in grades 8-12. Allocations shall be made on the monthly apportionment schedule provided in RCW 28A.510.250.      (b) A district receiving learning improvement allocations shall:            (i) Develop and keep on file at each building a student learning improvement plan to achieve the student learning goals and essential academic learning requirements and to implement the assessment system as it is developed. The plan shall delineate how the learning improvement allocations will be used to accomplish the foregoing. The plan shall be made available to the public upon request;       (ii) Maintain a policy regarding the involvement of school staff, parents, and community members in instructional decisions;           (iii) File a report by October 1, 1998, and October 1, 1999, with the office of the superintendent of public instruction, in a format developed by the superintendent that: Enumerates the activities funded by these allocations; the amount expended for each activity; describes how the activity improved understanding, teaching, and assessment of the essential academic learning requirements by instructional staff; and identifies any amounts expended from this allocation for supplemental contracts; and                     (iv) Provide parents and the local community with specific information on the use of this allocation by including in the annual performance report required in RCW 28A.320.205, information on how funds allocated under this subsection were spent and the results achieved.            (c) The superintendent of public instruction shall compile and analyze the school district reports and present the results to the office of financial management and the appropriate committees of the legislature no later than November 15, 1998, and November 15, 1999.     (2) $55,937,000 is provided for local education program enhancements to meet educational needs as identified by the school district, including alternative education programs. This amount includes such amounts as are necessary for the remainder of the 1996-97 school year. Allocations for the 1997-98 and 1998-99 school year shall be at a maximum annual rate of $29.86 per full-time equivalent student as determined pursuant to subsection (3) of this section. Allocations shall be made on the monthly apportionment payment schedule provided in RCW 28A.510.250.      (3) Allocations provided under this section shall be based on school district annual average full-time equivalent enrollment in grades kindergarten through twelve: PROVIDED, That for school districts enrolling not more than one hundred average annual full-time equivalent students, and for small school plants within any school district designated as remote and necessary schools, the allocations shall be as follows:           (a) Enrollment of not more than 60 average annual full-time equivalent students in grades kindergarten through six shall generate funding based on sixty full-time equivalent students;                       (b) Enrollment of not more than 20 average annual full-time equivalent students in grades seven and eight shall generate funding based on twenty full-time equivalent students; and                (c) Enrollment of not more than 60 average annual full-time equivalent students in grades nine through twelve shall generate funding based on sixty full-time equivalent students.                (4) Funding provided pursuant to this section does not fall within the definition of basic education for purposes of Article IX of the state Constitution and the state's funding duty thereunder.      (5) Receipt by a school district of one-fourth of the district's allocation of funds under this section, shall be conditioned on a finding by the superintendent that:            (a) The district is enrolled as a medicaid service provider and is actively pursuing federal matching funds for medical services provided through special education programs, pursuant to RCW 74.09.5241 through 74.09.5256 (Title XIX funding); and                        (b) The district is filing truancy petitions as required under chapter 312, Laws of 1995 and RCW 28A.225.030.

PART VI

HIGHER EDUCATION

       NEW SECTION. Sec. 601. The appropriations in sections 603 through 609 of this act are subject to the following conditions and limitations:

      (1) "Institutions" means the institutions of higher education receiving appropriations under sections 603 through 609 of this act.      (2)(a) The salary increases provided or referenced in this subsection shall be the allowable salary increases provided at institutions of higher education, excluding increases associated with normally occurring promotions and increases related to faculty and professional staff retention, and excluding increases associated with employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015.        (b) Each institution of higher education shall provide to each classified staff employee as defined by the office of financial management a salary increase of 3.0 percent on July 1, 1997. Each institution of higher education shall provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants as classified by the office of financial management, and all other nonclassified staff, including those employees under RCW 28B.16.015, an average salary increase of 3.0 percent on July 1, 1997. For employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015, distribution of the salary increases will be in accordance with the applicable collective bargaining agreement. However, an increase shall not be provided to any classified employee whose salary is above the approved salary range maximum for the class to which the employee's position is allocated. To collect consistent data for use by the legislature, the office of financial management, and other state agencies for policy and planning purposes, institutions of higher education shall report personnel data to be used in the department of personnel's human resource data warehouse in compliance with uniform reporting procedures established by the department of personnel.    (c) Each institution of higher education receiving appropriations under sections 604 through 609 of this act may provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015, an additional average salary increase of 1.0 percent on July 1, 1997, and an average salary increase of 2.0 percent on July 1, 1998. Any salary increases authorized under this subsection (2)(c) shall not be included in an institution's salary base. It is the intent of the legislature that general fund--state support for an institution shall not increase during the current or any future biennium as a result of any salary increases authorized under this subsection (2)(c).                  (d) Specific salary increases authorized in sections 603 through 609 of this act are in addition to any salary increase provided in this subsection.                      (3)(a) Each institution receiving appropriations under sections 604 through 609 of this act shall submit plans for achieving measurable and specific improvements in academic years 1997-98 and 1998-99 to the higher education coordinating board. The plans, to be prepared at the direction of the board, shall be submitted by August 15, 1997 (for academic year 1997-98) and August 15, 1998 (for academic year 1998-99). The following measures and goals will be used for the 1997-99 biennium:

Goal(i) Undergraduate graduation efficiency index: For students beginning as freshmen95For transfer students90

      (ii) Undergraduate student retention, defined as the percentage of all undergraduate students who return for the next year at the sameinstitution, measured from fall to fall:                  Research universities                       95%Comprehensive universities and college90%

      (iii) Graduation rates, defined as the percentage of an enteringfreshmen class at each institution that graduates within five years:      Research universities                                                                                                       65%Comprehensive universities and college55%

      (iv) A measure of faculty productivity, with goals and targets in accord with the legislative intent to achieve measurable and specific improvements, to be determined by the higher education coordinating board, in consultation with the institutions receiving appropriations under sections 604 through 609 of this act.

      (v) An additional measure and goal to be selected by the higher education coordinating board for each institution, in consultation with each institution.

      (b) Academic year 1995-96 shall be the baseline year against which performance in academic year 1997-98 shall be measured. Academic year 1997-98 shall be the baseline year against which performance in academic year 1998-99 shall be measured. The difference between each institution's baseline year and the state-wide performance goals shall be calculated and shall be the performance gap for each institution for each measure for each year. The plan for each institution shall set as a performance target the closing of its performance gap for each measure by ten percent in each year. Each institution shall report to the higher education coordinating board on its actual performance achievement for each measure for academic year 1997-98 by October 15, 1998.                   (4) The state board for community and technical colleges shall develop an implementation plan for measurable and specific improvements in productivity, efficiency, and student retention in academic years 1997-98 and 1998-99 consistent with the performance management system developed by the work force training and education coordinating board and for the following long-term performance goals:

                     Goal(a) Hourly wages for vocational graduates$12/hour(b) Academic students transferring to Washingtonhigher education institutions67%(c) Core course completion rates                                                                                   85%(d) Graduation efficiency index95

       (5) The state's public institutions of higher education increasingly are being called upon to become more efficient in conducting the business operations necessary to support the carrying out of their academic missions. The legislature recognizes that state laws and regulations may have the unintended effect of acting as barriers to efficient operation in some instances, and desires to encourage the institutions of higher education to think beyond the constraints of current law in identifying opportunities for improved efficiency. Accordingly, the legislature requests that the institutions of higher education, working together through the council of presidents' office and the state board for community and technical colleges, identify opportunities for changes in state law that would form the basis for a new efficiency compact with the state, for consideration no later than the 1999 legislative session.

       NEW SECTION. Sec. 602. (1) The appropriations in sections 603 through 609 of this act provide state general fund support or employment and training trust account support for full-time equivalent student enrollments at each institution of higher education. Listed below are the annual full-time equivalent student enrollments by institution assumed in this act.

                                                                                                                        1997-98                        1998-99AnnualAnnualAverageAverage

University of Washington                                                                                                                                                                                      

Main campus                                                                                                    31,297                31,527Tacoma branch775895Bothell branch 847992

Washington State University                                                                                                                                                                                 

Main campus                                                                                                    17,403                17,723Spokane branch 352442Tri-Cities branch 754814Vancouver branch 851971Central Washington University7,3467,446Eastern Washington University 7,7397,739The Evergreen State College3,4963,576Western Washington University10,18810,338State Board for Community and Technical Colleges116,426118,526Higher Education CoordinatingBoard50                                                                 50

       (2) The legislature intends to reduce general fund--state support for student enrollments by average instructional funding as calculated by the higher education coordinating board for enrollments below the budgeted levels in subsection (1) of this section, except that, for campuses with less than 1,500 budgeted full-time equivalent (FTE) student enrollments, enrollment targets shall be set at 95 percent of the budgeted enrollment level, and except that underenrollment at Eastern Washington University shall be administered in accordance with section 606(5) of this act.

       NEW SECTION. Sec. 603. FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $380,591,000General Fund--State Appropriation (FY 1999)$418,661,000General Fund--Federal Appropriation$11,404,000Employment and Training Trust Account          Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                                              26,346,000TOTAL APPROPRIATION$837,002,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $2,718,000 of the general fund--state appropriation for fiscal year 1998 and $4,079,000 of the general fund--state appropriation for fiscal year 1999 shall be held in reserve by the board. These funds are provided for improvements in productivity, efficiency, and student retention. The board may approve the fiscal year 1998 allocation of funds under this subsection upon completion of an implementation plan. The implementation plan shall be submitted by the board to the appropriate legislative committees and the office of financial management in accordance with section 601(4) of this act by September 1, 1997. The board may approve the fiscal year 1999 allocation of funds under this subsection based on the board's evaluation of:     (a) College performance compared to the goals for productivity, efficiency, and student retention as submitted in the plan required in section 601(4) of this act; and     (b) The quality and effectiveness of the strategies the colleges propose to achieve continued improvement in quality and efficiency during the 1998-99 academic year.                 (2) $1,253,000 of the general fund--state appropriation for fiscal year 1998, $27,461,000 of the general fund--state appropriation for fiscal year 1999, and the entire employment and training trust account appropriation are provided solely as special funds for training and related support services, including financial aid, child care, and transportation, as specified in chapter 226, Laws of 1993 (employment and training for unemployed workers) and Substitute House Bill No. 2214.           (a) Funding is provided to support up to 7,200 full-time equivalent students in each fiscal year.                     (b) The state board for community and technical colleges shall submit a plan for the allocation of the full-time equivalent students provided in this subsection to the workforce training and education coordinating board for review and approval.                 (3) $1,441,000 of the general fund--state appropriation for fiscal year 1998 and $1,441,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for 500 FTE enrollment slots to implement RCW 28B.50.259 (timber-dependent communities).           (4) $1,862,500 of the general fund--state appropriation for fiscal year 1998 and $1,862,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for assessment of student outcomes at community and technical colleges.        (5) $706,000 of the general fund--state appropriation for fiscal year 1998 and $706,000 of general fund--state appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.               (6) Up to $1,035,000 of the general fund--state appropriation for fiscal year 1998 and up to $2,102,000 of the general fund--state appropriation for fiscal year 1999 may be used in combination with salary and benefit savings from faculty turnover to provide faculty salary increments and associated benefits. To the extent general salary increase funding is used to pay faculty increments, the general salary increase shall be reduced by the same amount.             (7) To address part-time faculty salary disparities and to increase the ratio of full-time to part-time faculty instructors, the board shall provide salary increases to part-time instructors or hire additional full-time instructional staff under the following conditions and limitations: (a) The amount used for such purposes shall not exceed an amount equivalent to an additional salary increase of 1.0 percent on July 1, 1997, and an additional salary increase of 2.0 percent on July 1, 1998, for instructional faculty as classified by the office of financial management; and (b) at least $2,934,000 shall be spent for the purposes of this subsection.      (8) $83,000 of the general fund--state appropriation for fiscal year 1998 and $1,567,000 of the general fund--state appropriation for fiscal year 1999 are provided for personnel and expenses to develop curricula, library resources, and operations of Cascadia Community College. It is the legislature's intent to use the opportunity provided by the establishment of the new institution to conduct a pilot project of budgeting based on instructional standards and outcomes. The college shall use a portion of the available funds to develop a set of measurable standards and outcomes as the basis for budget development in the 1999-01 biennium.          (9) The technical colleges may increase tuition and fees to conform with the percentage increase in community college operating fees enacted by the 1997 legislature. The community colleges may charge up to the maximum level authorized for services and activities fees in RCW 28B.15.069.       (10) Community and technical colleges with below-average faculty salaries may use funds identified by the state board in the 1997-98 and 1998-99 operating allocations to increase faculty salaries no higher than the system-wide average.

       NEW SECTION. Sec. 604. FOR UNIVERSITY OF WASHINGTON

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $283,923,000General Fund Appropriation (FY 1999)$289,807,000Death Investigations Account Appropriation$1,810,000Industrial Insurance Premium Refund Account            Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                  514,000Accident Account Appropriation$4,969,000Medical Aid Account Appropriation$4,989,000TOTAL APPROPRIATION$586,012,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $2,019,000 of the general fund appropriation for fiscal year 1998 and $3,029,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.                      (2) $800,000 of the general fund appropriation for fiscal year 1998 and $1,896,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tacoma branch campus above the 1996-97 budgeted FTE level.      (3) $593,000 of the general fund appropriation for fiscal year 1998 and $1,547,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Bothell branch campus above the 1996-97 budgeted FTE level.      (4) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.              (5) $324,000 of the general fund appropriation for fiscal year 1998 and $324,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.        (6) $130,000 of the general fund appropriation for fiscal year 1998 and $130,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item UW-01.                     (7) $1,200,000 of the general fund appropriation for fiscal year 1998 and $1,200,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.            (8) $47,000 of the fiscal year 1998 general fund appropriation and $47,000 of the fiscal year 1999 general fund appropriation are provided solely to employ a fossil preparator/educator in the Burke Museum. The entire amounts provided in this subsection shall be provided directly to the Burke Museum.       (9) $75,000 of the general fund appropriation for fiscal year 1998 and $75,000 of the general fund appropriation for fiscal year 1999 are provided solely for enhancements to research capabilities at the Olympic natural resources center.

       NEW SECTION. Sec. 605. FOR WASHINGTON STATE UNIVERSITY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $166,644,000General Fund Appropriation (FY 1999)$172,819,000Air Pollution Control Account Appropriation$206,000TOTAL APPROPRIATION$339,669,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $1,204,000 of the general fund appropriation for fiscal year 1998 and $1,807,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.                      (2) $1,059,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Vancouver branch campus above the 1996-97 budgeted FTE level.            (3) $263,000 of the general fund appropriation for fiscal year 1998 and $789,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tri-Cities branch campus above the 1996-97 budgeted FTE level.        (4) $971,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Spokane branch campus above the 1996-97 budgeted FTE level.       (5) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.               (6) $140,000 of the general fund appropriation for fiscal year 1998 and $140,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.             (7) $157,000 of the general fund appropriation for fiscal year 1998 and $157,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item WSU-01.                      (8) $600,000 of the general fund appropriation for fiscal year 1998 and $600,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.         (9) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for yellow star thistle research.      (10) $55,000 of the general fund appropriation for fiscal year 1998 and $55,000 of the general fund appropriation for fiscal year 1999 are provided solely for the Goldendale distance learning center.

       NEW SECTION. Sec. 606. FOR EASTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39,211,000General Fund Appropriation (FY 1999)$39,489,000TOTAL APPROPRIATION$78,700,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $285,000 of the general fund appropriation for fiscal year 1998 and $428,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.           (2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.      (3) $93,000 of the general fund appropriation for fiscal year 1998 and $93,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.      (4) $53,000 of the general fund--state appropriation for fiscal year 1998 and $54,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.                      (5) $3,188,000 of the general fund appropriation for fiscal year 1998 and $3,188,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve pending attainment of budgeted enrollments of 6,942 FTEs. The office of financial management shall approve the allotment of funds under this subsection at the annual rate of $4,000 for annual student FTEs in excess of 6,942 based on tenth day quarterly enrollment and the office of financial management's quarterly budget driver report. In addition, allotments of reserve funds in this section shall be approved by the office of financial management upon approval by the higher education coordinating board for (a) actions that will result in additional enrollment growth, and (b) contractual obligations in fiscal year 1998 to the extent such funds are required.

       NEW SECTION. Sec. 607. FOR CENTRAL WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$37,214,000General Fund Appropriation (FY 1999)$38,616,000TOTAL APPROPRIATION$75,830,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $269,000 of the general fund appropriation for fiscal year 1998 and $403,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.           (2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.      (3) $70,000 of the general fund appropriation for fiscal year 1998 and $70,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.        (4) $51,000 of the general fund appropriation for fiscal year 1998 and $51,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

       NEW SECTION. Sec. 608. FOR THE EVERGREEN STATE COLLEGE

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,151,000General Fund Appropriation (FY 1999)$20,518,000TOTAL APPROPRIATION$40,669,000

       The appropriations in this section is subject to the following conditions and limitations:     (1) $144,000 of the general fund appropriation for fiscal year 1998 and $217,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.       (2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.    (3) $47,000 of the general fund appropriation for fiscal year 1998 and $47,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.     (4) $29,000 of the general fund appropriation for fiscal year 1998 and $29,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

       NEW SECTION. Sec. 609. FOR WESTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$47,822,000General Fund Appropriation (FY 1999)$48,855,000TOTAL APPROPRIATION$96,677,000

       The appropriations in this section are subject to the following conditions and limitations:                     (1) $342,000 of the general fund appropriation for fiscal year 1998 and $514,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.       (2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.    (3) $93,000 of the general fund appropriation for fiscal year 1998 and $93,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.     (4) $66,000 of the general fund appropriation for fiscal year 1998 and $67,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

       NEW SECTION. Sec. 610. FOR THE HIGHER EDUCATION COORDINATING BOARD--POLICY COORDINATION AND ADMINISTRATION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,734,000General Fund--State Appropriation (FY 1999)$2,615,000General Fund--Federal Appropriation$693,000TOTAL APPROPRIATION$6,042,000

      The appropriations in this section are provided to carry out the accountability, performance measurement, policy coordination, planning, studies and administrative functions of the board and are subject to the following conditions and limitations:           (1) The board shall review, recommend changes if necessary, and approve plans defined in section 601(3)(a) of this act for achieving measurable and specific improvements in academic years 1997-98 and 1998-99. The plans shall be reported to the office of financial management and the appropriate legislative committees by October of each year. By October 1, 1997, the board shall notify the office of financial management to allot institutions' fiscal year 1998 performance funds held in reserve, based upon the adequacy of plans prepared by the institutions.      (2) The board shall develop criteria to assess institutions' performance and shall use those criteria in determining the allotment of performance and accountability funds. The board shall evaluate each institution's achievement of performance targets for the 1997-98 academic year and, by December 1, 1998, the board shall notify the office of financial management to allot institutions' fiscal year 1999 performance funds held in reserve, based upon each institution's performance.           (3) By January, 1999, the board shall recommend to the office of financial management and appropriate legislative committees any recommended additions, deletions, or revisions to the performance and accountability measures in sections 601(3) of this act as part of the next master plan for higher education. The recommendations shall be developed in consultation with the institutions of higher education and may include additional performance indicators to measure successful student learning and other student outcomes for possible inclusion in the 1999-01 operating budget.      (4) $280,000 of the general fund--state appropriation for fiscal year 1998 and $280,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enrollment to implement RCW 28B.80.570 through 28B.80.585 (rural natural resources impact areas). The number of students served shall be 50 full-time equivalent students per fiscal year. The board shall ensure that enrollments reported under this subsection meet the criteria outlined in RCW 28B.80.570 through 28B.80.585.         (5) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided to develop a competency based admissions system for higher education institutions. The board shall complete the competency based admissions system and issue a report outlining the competency based admissions system by January 1999.            (6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for activities related to higher education facilities planning, project monitoring, and access issues related to capital facilities. Of this amount, $50,000 is provided for a study of higher education needs of Okanogan county and surrounding communities with consideration given to alternative approaches to educational service delivery, facility expansion, relocation or partnership, and long-term growth and future educational demands of the region.                    (7) $150,000 of the general fund--state appropriation for fiscal year 1998 is provided solely as one-time funding for computer upgrades.

       NEW SECTION. Sec. 611. FOR THE HIGHER EDUCATION COORDINATING BOARD--FINANCIAL AID AND GRANT PROGRAMS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,369,000General Fund--State Appropriation (FY 1999)$93,209,000General Fund--Federal Appropriation$8,255,000TOTAL APPROPRIATION$187,833,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $527,000 of the general fund--state appropriation for fiscal year 1998 and $526,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the displaced homemakers program.                  (2) $216,000 of the general fund--state appropriation for fiscal year 1998 and $220,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the western interstate commission for higher education.      (3) $118,000 of the general fund--state appropriation for fiscal year 1998 and $118,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the health personnel resources plan.        (4) $1,000,000 of the general fund--state appropriation for fiscal year 1998 and $1,000,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the scholarships and loans program under chapter 28B.115 RCW, the health professional conditional scholarship program. This amount shall be deposited to the health professional loan repayment and scholarship trust fund to carry out the purposes of the program.              (5) $83,783,000 of the general fund--state appropriation for fiscal year 1998 and $90,728,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for student financial aid, including all administrative costs. The amounts in (a), (b), and (c) of this subsection are sufficient to implement Second Substitute House Bill No. 1851 (higher education financial aid). Of these amounts:                     (a) $64,262,000 of the general fund--state appropriation for fiscal year 1998 and $70,964,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state need grant program.                  (i) Unless an alternative method for distribution of the state need grant is enacted which distributes grants based on tuition costs, for the purposes of determination of eligibility for state need grants for the 1998-99 academic year, the higher education coordinating board shall establish family income equivalencies for independent students having financial responsibility for children and independent students with no financial responsibility for children, respectively, based on the United States bureau of labor statistics' low budget standard for persons in the 20-35 year age group, in accordance with the recommendations of the 1996 student financial aid policy advisory committee.     (ii) After April 1 of each fiscal year, up to one percent of the annual appropriation for the state need grant program may be transferred to the state work study program.      (b) $15,350,000 of the general fund--state appropriation for fiscal year 1998 and $15,350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state work study program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state work study program may be transferred to the state need grant program;      (c) $2,422,000 of the general fund--state appropriation for fiscal year 1998 and $2,422,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for educational opportunity grants. For the purpose of establishing eligibility for the equal opportunity grant program for placebound students under RCW 28B.101.020, Thurston county lies within the branch campus service area of the Tacoma branch campus of the University of Washington;         (d) A maximum of 2.1 percent of the general fund--state appropriation for fiscal year 1998 and 2.1 percent of the general fund--state appropriation for fiscal year 1999 may be expended for financial aid administration, excluding the four percent state work study program administrative allowance provision;           (e) $230,000 of the general fund--state appropriation for fiscal year 1998 and $201,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the educator's excellence awards. Any educator's excellence moneys not awarded by April 1st of each year may be transferred by the board to either the Washington scholars program or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;              (f) $1,012,000 of the general fund--state appropriation for fiscal year 1998 and $1,266,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement the Washington scholars program. Any Washington scholars program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;         (g) $456,000 of the general fund--state appropriation for fiscal year 1998 and $474,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Washington award for vocational excellence program. Any Washington award for vocational program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or the Washington scholars program;             (h) $51,000 of the general fund--state appropriation for fiscal year 1998 and $51,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for community scholarship matching grants of $2,000 each. To be eligible for the matching grant, a nonprofit community organization organized under section 501(c)(3) of the internal revenue code must demonstrate that it has raised $2,000 in new moneys for college scholarships after the effective date of this act. No organization may receive more than one $2,000 matching grant; and          (6) $175,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Engrossed Second Substitute House Bill No. 1372 or Second Substitute Senate Bill No. 5106 (Washington advanced college tuition payment program). If neither Engrossed Second Substitute House Bill No. 1372 nor Second Substitute Senate Bill No. 5106 is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.          (7) $187,000 of the general fund--state appropriation for fiscal year 1998 and $188,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a demonstration project in the 1997-99 biennium to provide undergraduate fellowships based upon the graduate fellowship program.        (8) Funding is provided in this section for the development of three models for tuition charges for distance learning programs. Institutions involved in distance education or extended learning shall provide information to the board on the usage, cost, and revenue generated by such programs.

       NEW SECTION. Sec. 612. FOR THE JOINT CENTER FOR HIGHER EDUCATION

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,469,000General Fund Appropriation (FY 1999)$1,470,000TOTAL APPROPRIATION$2,939,000

       NEW SECTION. Sec. 613. FOR THE WORK FORCE TRAINING AND EDUCATION COORDINATING BOARD

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,636,000General Fund--State Appropriation (FY 1999)$1,642,000General Fund--Federal Appropriation$34,378,000TOTAL APPROPRIATION$37,656,000

       NEW SECTION. Sec. 614. FOR WASHINGTON STATE LIBRARY

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,483,000General Fund--State Appropriation (FY 1999)$7,281,000General Fund--Federal Appropriation$4,847,000TOTAL APPROPRIATION$19,611,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) At least $2,524,000 shall be expended for a contract with the Seattle public library for library services for the Washington book and braille library.             (2) $198,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the state library to continue the government information locator service in accordance with chapter 171, Laws of 1996. The state library, in consultation with interested parties, shall prepare an evaluation of the government information locator service by October 1, 1997. The evaluation shall include a cost-benefit analysis, a determination of fiscal impacts to the state, and programmatic information. The evaluation report shall be provided to the appropriate legislative fiscal committees.

       NEW SECTION. Sec. 615. FOR THE WASHINGTON STATE ARTS COMMISSION

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,015,000General Fund--State Appropriation (FY 1999$2,013,000General Fund--Federal Appropriation$690,000TOTAL APPROPRIATION$4,718,000

       NEW SECTION. Sec. 616. FOR THE WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,502,000General Fund Appropriation (FY 1999)$2,531,000TOTAL APPROPRIATION$5,033,000

       The appropriations in this section are subject to the following conditions and limitations: $216,200 of the general fund appropriation for fiscal year 1998 and $216,200 of the general fund appropriation for fiscal year 1999 are provided solely for exhibit and educational programming.

       NEW SECTION. Sec. 617. FOR THE EASTERN WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $741,000General Fund Appropriation (FY 1999)$1,022,000TOTAL APPROPRIATION$1,763,000

       The appropriations in this section are subject to the following conditions and limitations: $275,000 of the general fund appropriation for fiscal year 1999 is provided solely for exhibit design and planning.

       NEW SECTION. Sec. 618. FOR THE STATE SCHOOL FOR THE BLIND

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,714,000General Fund--State Appropriation (FY 1999)$3,738,000General Fund--Private/Local Appropriation$192,000TOTAL APPROPRIATION$7,644,000

       NEW SECTION. Sec. 619. FOR THE STATE SCHOOL FOR THE DEAF

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,458,000General Fund Appropriation (FY 1999)$6,459,000TOTAL APPROPRIATION$12,917,000

PART VII

SPECIAL APPROPRIATIONS

       NEW SECTION. Sec. 701. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL FUND BOND DEBT

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $447,283,000General Fund Appropriation (FY 1999)$485,077,000General Fund Bonds Subject to the Limit BondRetirement Account Appropriation$932,360,000TOTAL APPROPRIATION. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $$1,864,720,000

       The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds subject to the limit bond retirement account.

       NEW SECTION. Sec. 702. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED BY ENTERPRISE ACTIVITIES

State Convention & Trade Center Account                  Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 34,081,000Accident Account Appropriation$5,108,000Medical Aid Account Appropriation$5,108,000TOTAL APPROPRIATION$44,297,000

       NEW SECTION. Sec. 703. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED AS PRESCRIBED BY STATUTE

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,096,000General Fund Appropriation (FY 1999)$25,603,000General Fund Bonds Excluded from the LimitBond Retirement Account Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,699,000Reimbursable Bonds Excluded from the Limit BondRetirement Account Appropriation$104,933,000Reimbursable Bonds Subject to the Limit Bond             Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $402,000TOTAL APPROPRIATION$202,733,000

       The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds excluded from the limit bond retirement account.

       NEW SECTION. Sec. 704. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR DEBT TO BE PAID BY STATUTORILY PRESCRIBED REVENUE

Revenue Bonds Excluded from the Limit Bond             Retirement Account Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .$                                                                                                                                                                                                           2,451,000

       NEW SECTION. Sec. 705. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $475,000General Fund Appropriation (FY 1999)$475,000Higher Education Construction Account Appropriation$215,000State Building Construction Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,374,000Public Safety Reimbursable Bond Account Appropriation$8,000TOTAL APPROPRIATION$7,547,000

Total Bond Retirement and Interest Appropriations     contained in sections 701 through 705 of this         act. . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                               2,121,748,000

       NEW SECTION. Sec. 706. FOR THE GOVERNOR--FOR TRANSFER TO THE TORT CLAIMS REVOLVING FUND

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,250,000General Fund Appropriation (FY 1999)$1,250,000TOTAL APPROPRIATION$2,500,000

       NEW SECTION. Sec. 707. FOR THE GOVERNOR--AMERICANS WITH DISABILITIES ACT

Americans with Disabilities Special Revolving Fund                  Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . $                                                                                                                                                          426,000

      The appropriation in this section is subject to the following conditions and limitations:       (1) The appropriation shall be used solely to fund requests from state agencies complying with the program requirements of the federal Americans with disabilities act. This appropriation will be administered by the office of financial management and will be apportioned to agencies meeting distribution criteria.       (2) To facilitate payment from special funds dedicated to agency programs receiving allocations under this section, the state treasurer is directed to transfer sufficient moneys from the special funds to the Americans with disabilities special revolving fund, hereby created in the state treasury, in accordance with schedules provided by the office of financial management.

       NEW SECTION. Sec. 708. FOR THE GOVERNOR--TORT DEFENSE SERVICES

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,257,000General Fund Appropriation (FY 1999)$1,257,000Special Fund Agency Tort Defense ServicesRevolving Fund Appropriation$2,513,000TOTAL APPROPRIATION. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $       5,027,000

       The appropriations in this section are subject to the following conditions and limitations: To facilitate payment of tort defense services from special funds, the state treasurer is directed to transfer sufficient moneys from each special fund to the special fund agency tort defense services revolving fund, in accordance with schedules provided by the office of financial management. The governor shall distribute the moneys appropriated in this section to agencies to pay for tort defense services.

       NEW SECTION. Sec. 709. FOR THE OFFICE OF FINANCIAL MANAGEMENT--EMERGENCY FUND

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000General Fund Appropriation (FY 1999)$500,000TOTAL APPROPRIATION$1,000,000

       The appropriation in this section is for the governor's emergency fund for the critically necessary work of any agency.

       NEW SECTION. Sec. 710. FOR THE OFFICE OF FINANCIAL MANAGEMENT--YEAR 2000 ALLOCATIONS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,380,000General Fund--State Appropriation (FY 1999)$1,960,000General Fund--Federal Appropriation$2,883,000Liquor Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $131,000Health Care Authority Administrative AccountAppropriation$631,000Accident Account Appropriation$1,102,000Medical Aid Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,102,000Unemployment Compensation Administration Account--Federal Appropriation$1,313,000Administrative Contingency Account Appropriation$948,000Employment Services Administrative AccountAppropriation$500,000Forest Development Account Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156,000Off Road Vehicle Account Appropriation$7,000Surveys and Maps Account Appropriation$1,000Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000Resource Management Cost Account Appropriation$348,000TOTAL APPROPRIATION$14,470,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The appropriations will be allocated by the office of financial management to agencies to complete Year 2000 date conversion maintenance on their computer systems. Agencies shall submit their estimated costs of conversion to the office of financial management by July 1, 1997.                    (2) Up to $10,000,000 of the cash balance of the data processing revolving account may be expended on agency Year 2000 date conversion costs. The $10,000,000 will be taken from the cash balances of the data processing revolving account's two major users, as follows: $7,000,000 from the department of information services and $3,000,000 from the office of financial management. The office of financial management in consultation with the department of information services shall allocate these funds as needed to complete the date conversion projects.                (3) Agencies receiving these allocations shall report at a minimum to the information services board and to the governor every six months on the progress of Year 2000 maintenance efforts.

       NEW SECTION. Sec. 711. BELATED CLAIMS. The agencies and institutions of the state may expend moneys appropriated in this act, upon approval of the office of financial management, for the payment of supplies and services furnished to the agency or institution in prior fiscal biennia.

       NEW SECTION. Sec. 712. FOR THE GOVERNOR--COMPENSATION--INSURANCE BENEFITS

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $823,000General Fund--State Appropriation (FY 1999)$6,257,000General Fund--Federal Appropriation$2,431,000General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $146,000Salary and Insurance Increase Revolving AccountAppropriation$5,465,000TOTAL APPROPRIATION$15,122,000

      The appropriations in this section are subject to the following conditions and limitations:                   (1)(a) The monthly contribution for insurance benefit premiums shall not exceed $312.35 per eligible employee for fiscal year 1998, and $331.31 for fiscal year 1999.      (b) The monthly contribution for the operating costs of the health care authority shall not exceed $4.99 per eligible employee for fiscal year 1998, and $4.44 for fiscal year 1999.    (c) Surplus moneys accruing to the public employees' and retirees' insurance account due to lower-than-projected insurance costs may not be reallocated by the health care authority to increase the actuarial value of public employee insurance plans. Such funds shall be held in reserve in the public employees' and retirees' insurance account and may not be expended without prior legislative authorization.         (d) In order to achieve the level of funding provided for health benefits, the public employees' benefits board may require employee premium co-payments, increase point-of-service cost sharing, and/or implement managed competition.      (2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special fund salary and insurance contribution increase revolving fund in accordance with schedules provided by the office of financial management.         (3) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 1998, through December 31, 1998, the subsidy shall be $41.26 per month. Starting January 1, 1999, the subsidy shall be $43.16 per month.                 (4) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120:       (a) For each full-time employee, $14.80 per month beginning September 1, 1997;      (b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $14.80 each month beginning September 1, 1997, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.      The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.            (5) The salary and insurance increase revolving account appropriation includes amounts sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (1) of this section, consistent with the 1997-99 transportation appropriations act.

       NEW SECTION. Sec. 713. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--CONTRIBUTIONS TO RETIREMENT SYSTEMS

      The appropriations in this section are subject to the following conditions and limitations: The appropriations shall be made on a monthly basis consistent with chapter 41.45 RCW.

      (1) There is appropriated for state contributions to the law enforcement officers' and fire fighters' retirement system:General Fund Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,350,000General Fund Appropriation (FY 1999)$72,750,000

      Of the appropriations in this subsection, $50,000 of the general fund fiscal year 1998 appropriation and $50,000 of the general fund fiscal year 1999 appropriation are provided solely for House Bill No. 1099 (LEOFF retirement plan I). If the bill is not enacted by June 30, 1997, these amounts shall lapse.

      (2) There is appropriated for contributions to the judicial retirement system:General Fund Appropriation (FY 1998).. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $                                                           8,500,000General Fund Appropriation (FY 1999)$8,500,000

      (3) There is appropriated for contributions to the judges retirement system:General Fund Appropriation (FY 1998). .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $          750,000General Fund Appropriation (FY 1999)$750,000TOTAL APPROPRIATION$159,600,000

       NEW SECTION. Sec. 714. SALARY COST OF LIVING ADJUSTMENT

General Fund--State Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,031,000General Fund--State Appropriation (FY 1999)$31,421,000General Fund--Federal Appropriation$17,578,000Salary and Insurance Increase Revolving Account            Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,678,000TOTAL APPROPRIATION$128,708,000

       The appropriations in this section shall be expended solely for the purposes designated in this section and are subject to the conditions and limitations in this section:           (1) In addition to the purposes set forth in subsections (2) and (3) of this section, appropriations in this section are provided solely for a 3.0 percent salary increase effective July 1, 1997, for all classified employees, including those employees in the Washington management service, and exempt employees under the jurisdiction of the personnel resources board.         (2) The appropriations in this section are sufficient to fund a 3.0 percent salary increase effective July 1, 1997, for general government, legislative, and judicial employees exempt from merit system rules whose salaries are not set by the commission on salaries for elected officials.           (3) The salary and insurance increase revolving account appropriation in this section includes funds sufficient to fund a 3.0 percent salary increase effective July 1, 1997, for ferry workers consistent with the 1997-99 transportation appropriations act.                  (4) No salary increase may be paid under this section to any person whose salary has been Y-rated pursuant to rules adopted by the personnel resources board.

       NEW SECTION. Sec. 715. FOR THE ATTORNEY GENERAL--SALARY ADJUSTMENTS

General Fund Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000General Fund Appropriation (FY 1999)$250,000Attorney General Salary Increase RevolvingAccount Appropriation$500,000TOTAL APPROPRIATION$1,000,000