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NINETY-NINTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Monday, April 21, 1997

      The Senate was called to order at 9:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Benton, Fraser, Loveland, McCaslin, Snyder and Spanel. On motion of Senator Franklin, Senators Fraser, Loveland, Snyder and Spanel were excused. On motion of Senator Hale, Senators Benton and McCaslin were excused.       The Sergeant at Arms Color Guard, consisting of Pages Kristy Carey and Richard Chcuik, presented the Colors. Reverend Gary Gulbranson, pastor of the Westminister Chapel of Bellevue, and a guest of Senator Dan McDonald, offered the prayer.


MOTION


      At 9:09 a.m., on motion of Senator Johnson, the Senate was declared to be at ease.


      The Senate was called to order at 10:19 a.m. by President Owen.


MOTION


      Senator Johnson moved the reading of the Journal of the previous day be dispensed with and it be approved.


MOTION


       Senator Sheldon: “I move that the Journal of the previous day's business be approved with the verbatim debate on the following items: Senate Resolution 1997-8669 (amending Senate Rule 37); the two amendments to the resolution, and final passage of Substitute Senate Bill No. 6062, as recommended by the Conference Committee on reconsideration. I also move that the remarks by each Senator who spoke on the above items, and all the intervening points of order, parliamentary inquiries and personal privileges, including the President's rulings and remarks, also be spread upon the Journal of the Senate for April 19, 1997.”


      There being no objection, the motion of Senator Sheldon carried and the Journal of the previous day was approved with the additional items included.


MESSAGE FROM THE GOVERNOR

GUBERNATORIAL APPOINTMENT

April 2, 1977


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following appointment, subject to your confirmation.

      Dr. Barbara Anderson, appointed April 2, 1997, for a term ending September 30, 1998, as a member of the Board of Trustees for Skagit Valley Community College District No. 4.

Sincerely,

GARY LOCKE, Governor

      Referred to the Committee on Higher Education.


MOTION


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


SENATE RESOLUTION 1997-8668


By Senator Snyder and Kohl


      WHEREAS, The Willapa Valley Vikings Football Team of Pacific County capped an undefeated season by capturing the Washington State B-11 football championship; and

      WHEREAS, Head Coach Rob Friese and Assistant Coaches John Peterson and Greg Wonhoff guided the Willapa Valley Vikings toward their perfect 13-0 record; and

      WHEREAS, Rob Friese, John Peterson, and Matt Bannish are all Coathletic Directors who devote their time and talents to bringing together a winning football team; and

      WHEREAS, The Willapa Valley Vikings have a long history of excelling in all areas of sports; and

      WHEREAS, Rob Friese and Matt Bannish are witnesses to this winning tradition, having played on Willapa Valley's 1978 and 1979 state championship football team and 1981 state championship basketball team; and

      WHEREAS, Twenty-nine of the Willapa Valley's one hundred forty-eight students successfully dedicated themselves to winning the 1996 state football championship;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington recognize and honor the Willapa Valley Vikings for their accomplishments in attaining the title of Washington State B-11 Football Champions; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to Willapa Valley's coaching staff, administration, and each of the players on Willapa Valley Vikings Championship Football Team.


      Senators Hargrove and Wojahn spoke to Senate Resolution 1997-8668.


INTRODUCTION OF SPECIAL GUESTS


      The President welcomed and introduced the Willapa Valley Vikings Championship Football Team and their coaches, who were seated in the gallery.


SIGNED BY THE PRESIDENT


      The President signed:

      SUBSTITUTE SENATE BILL NO. 6062.


MOTION


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


      EDITOR'S NOTE: Conferences were granted on Engrossed Substitute Senate Bill No. 5082, Second Substitute Senate Bill No. 5508, and Engrossed Second Substitute Senate Bill No. 5710, April 19, 1997.


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 5082 and the House amendment(s) thereon: Senators Long, Hargrove and Zarelli.


MOTION


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


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Second Substitute Senate Bill No. 5508 and the House amendment(s) thereon: Senators Hochstatter, McAuliffe and Zarelli.


MOTION


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

 

APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Engrossed Second Substitute Senate Bill No. 5710 and the House amendment(s) thereon: Senators Long, Hargrove and Zarelli.


MOTION


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


MESSAGE FROM THE HOUSE

April 11, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5445 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 18.71.210 and 1995 c 65 s 4 and 1995 c 103 s 1 are each reenacted and amended to read as follows:          No act or omission of any physician's trained emergency medical service intermediate life support technician and paramedic, as defined in RCW 18.71.200, or any emergency medical technician or first responder, as defined in RCW 18.73.030, done or omitted in good faith while rendering emergency medical service under the responsible supervision and control of a licensed physician or an approved medical program director or delegate(s) to a person who has suffered illness or bodily injury shall impose any liability upon:         (1) The physician's trained emergency medical service intermediate life support technician and paramedic, emergency medical technician, or first responder;          (2) The medical program director;          (3) The supervising physician(s);           (4) Any hospital, the officers, members of the staff, nurses, or other employees of a hospital;                (5) Any training agency or training physician(s);      (6) Any licensed ambulance service; or (7) Any federal, state, county, city or other local governmental unit or employees of such a governmental unit.        This section shall apply to an act or omission committed or omitted in the performance of the actual emergency medical procedures and not in the commission or omission of an act which is not within the field of medical expertise of the physician's trained emergency medical service intermediate life support technician and paramedic, emergency medical technician, or first responder, as the case may be.              This section shall apply also, as to the entities and personnel described in subsections (1) through (7) of this section, to any act or omission committed or omitted in good faith by such entities or personnel in rendering services at the request of an approved medical program director in the training of emergency medical service ((medical)) personnel for certification or recertification pursuant to this chapter.      This section shall not apply to any act or omission which constitutes either gross negligence or willful or wanton misconduct.      Sec. 2. RCW 18.130.040 and 1996 c 200 s 32 and 1996 c 81 s 5 are each reenacted and amended to read as follows:       (1) This chapter applies only to the secretary and the boards and commissions having jurisdiction in relation to the professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.      (2)(a) The secretary has authority under this chapter in relation to the following professions:              (i) Dispensing opticians licensed under chapter 18.34 RCW;     (ii) Naturopaths licensed under chapter 18.36A RCW;          (iii) Midwives licensed under chapter 18.50 RCW;      (iv) Ocularists licensed under chapter 18.55 RCW;               (v) Massage operators and businesses licensed under chapter 18.108 RCW;      (vi) Dental hygienists licensed under chapter 18.29 RCW;    (vii) Acupuncturists licensed under chapter 18.06 RCW;      (viii) Radiologic technologists certified and X-ray technicians registered under chapter 18.84 RCW;   (ix) Respiratory care practitioners certified under chapter 18.89 RCW;       (x) Persons registered or certified under chapter 18.19 RCW;          (xi) Persons registered as nursing pool operators under chapter 18.52C RCW;   (xii) Nursing assistants registered or certified under chapter ((18.79)) 18.88A RCW;          (xiii) Health care assistants certified under chapter 18.135 RCW;           (xiv) Dietitians and nutritionists certified under chapter 18.138 RCW;                 (xv) Sex offender treatment providers certified under chapter 18.155 RCW;           (xvi) Persons licensed and certified under chapter 18.73 RCW or RCW 18.71.205;          (xvii) Persons registered as adult family home providers and resident managers under RCW 18.48.020; and      (xviii) Denturists licensed under chapter 18.30 RCW.           (b) The boards and commissions having authority under this chapter are as follows:              (i) The podiatric medical board as established in chapter 18.22 RCW;             (ii) The chiropractic quality assurance commission as established in chapter 18.25 RCW;          (iii) The dental quality assurance commission as established in chapter 18.32 RCW;      (iv) The board of hearing and speech as established in chapter 18.35 RCW;         (v) The board of examiners for nursing home administrators as established in chapter 18.52 RCW;          (vi) The optometry board as established in chapter 18.54 RCW governing licenses issued under chapter 18.53 RCW;     (vii) The board of osteopathic medicine and surgery as established in chapter 18.57 RCW governing licenses issued under chapters 18.57 and 18.57A RCW;      (viii) The board of pharmacy as established in chapter 18.64 RCW governing licenses issued under chapters 18.64 and 18.64A RCW;                (ix) The medical quality assurance commission as established in chapter 18.71 RCW governing licenses and registrations issued under chapters 18.71 and 18.71A RCW;   (x) The board of physical therapy as established in chapter 18.74 RCW;                 (xi) The board of occupational therapy practice as established in chapter 18.59 RCW;    (xii) The nursing care quality assurance commission as established in chapter 18.79 RCW governing licenses issued under that chapter;               (xiii) The examining board of psychology and its disciplinary committee as established in chapter 18.83 RCW; and                (xiv) The veterinary board of governors as established in chapter 18.92 RCW.               (3) In addition to the authority to discipline license holders, the disciplining authority has the authority to grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered pursuant to RCW 18.130.160 by the disciplining authority.      (4) All disciplining authorities shall adopt procedures to ensure substantially consistent application of this chapter, the Uniform Disciplinary Act, among the disciplining authorities listed in subsection (2) of this section.           Sec. 3. RCW 18.35.060 and 1996 c 200 s 7 and 1996 c 191 s 19 are each reenacted to read as follows:            (1) The department shall issue a hearing instrument fitting/dispensing permit to any applicant who has shown to the satisfaction of the department that the applicant:       (a) Is at least twenty-one years of age;   (b) If issued a hearing instrument fitter/dispenser permit, would be employed and directly supervised in the fitting and dispensing of hearing instruments by a person licensed or certified in good standing as a hearing instrument fitter/dispenser or audiologist for at least two years unless otherwise approved by the board; (c) Has complied with administrative procedures, administrative requirements, and fees determined as provided in RCW 43.70.250 and 43.70.280;              (d) Has not committed unprofessional conduct as specified by the uniform disciplinary act; and      (e) Is a high school graduate or the equivalent.      The provisions of RCW 18.35.030, 18.35.110, and 18.35.120 shall apply to any person issued a hearing instrument fitter/dispenser permit. Pursuant to the provisions of this section, a person issued a hearing instrument fitter/dispenser permit may engage in the fitting and dispensing of hearing instruments without having first passed the hearing instrument fitter/dispenser examination provided under this chapter.     (2) The hearing instrument fitter/dispenser permit shall contain the names of the employer and the licensed or certified supervisor under this chapter who are employing and supervising the hearing instrument fitter/dispenser permit holder and those persons shall execute an acknowledgment of responsibility for all acts of the hearing instrument fitter/dispenser permit holder in connection with the fitting and dispensing of hearing instruments.          (3) A hearing instrument fitter/dispenser permit holder may fit and dispense hearing instruments, but only if the hearing instrument fitter/dispenser permit holder is under the direct supervision of a licensed hearing instrument fitter/dispenser or certified audiologist under this chapter in a capacity other than as a hearing instrument fitter/dispenser permit holder. Direct supervision by a licensed hearing instrument fitter/dispenser or certified audiologist shall be required whenever the hearing instrument fitter/dispenser permit holder is engaged in the fitting or dispensing of hearing instruments during the hearing instrument fitter/dispenser permit holder's employment. The board shall develop and adopt guidelines on any additional supervision or training it deems necessary.          (4) ((No individual may hold a hearing instrument fitter/dispenser permit for more than two years.)) The hearing instrument fitter/dispenser permit expires one year from the date of its issuance except that on recommendation of the board the permit may be reissued for one additional year only.         (5) No certified audiologist or licensed hearing instrument fitter/dispenser under this chapter may assume the responsibility for more than one hearing instrument fitter/dispenser permit holder at any one time.     (6) The department, upon approval by the board, shall issue an interim permit authorizing an applicant for speech-language pathologist certification or audiologist certification who, except for the postgraduate professional experience and the examination requirements, meets the academic and practicum requirements of RCW 18.35.040 to practice under interim permit supervision by a certified speech-language pathologist or certified audiologist. The interim permit is valid for a period of one year from date of issuance. The board shall determine conditions for the interim permit.               Sec. 4. RCW 18.35.080 and 1996 c 200 s 9 and 1996 c 191 s 20 are each reenacted and amended to read as follows:    (1) The department shall license or certify each qualified applicant who satisfactorily completes the required examinations for his or her profession and complies with administrative procedures and administrative requirements established pursuant to RCW 43.70.250 and 43.70.280.        (2) The board shall waive the examination and grant a speech-language pathology certificate to a person engaged in the profession of speech-language pathology in this state on June 6, 1996, if the board determines that the person meets commonly accepted standards for the profession, as defined by rules adopted by the board. Persons eligible for certification under this subsection must apply for a certificate before July 1, 1997.              (3) The board shall waive the examinations and grant an audiology certificate to a person engaged in the profession of audiology in this state on June 6, 1996, if the board determines that the person meets the commonly accepted standards for the profession and has passed the hearing instrument fitter/dispenser examination. Persons eligible for certification under this subsection must apply for a certificate before July 1, 1997.      (4) The board shall grant an audiology certificate to a person engaged in the profession of audiology, who has not been licensed as a hearing ((aid [instrument])) instrument fitter/dispenser, but who meets the commonly accepted standards for the profession of audiology and graduated from a board-approved program after January 1, 1993, and has passed sections of the examination pertaining to RCW 18.35.070 (3), (4), and (5). Persons eligible for certification under this subsection must apply for a certificate before July 1, 1997.             (5) Persons engaged in the profession of audiology who meet the commonly accepted standards for the profession of audiology and graduated from a board-approved program prior to January 1, 1993, and who have not passed the hearing instrument fitter/dispenser examination shall be granted a temporary audiology certificate (nondispensing) for a period of two years from June 6, 1996, during which time they must pass sections of the hearing instrument fitter/dispenser examination pertaining to RCW 18.35.070 (1)(c), (2)(e) and (f), (3), (4), and (5). The board may extend the term of the temporary certificate upon review. Persons eligible for certification under this subsection must apply for a certificate before July 1, 1997.      Sec. 5. RCW 18.35.090 and 1996 c 200 s 11 and 1996 c 191 s 21 are each reenacted to read as follows:           Each person who engages in practice under this chapter shall comply with administrative procedures and administrative requirements established under RCW 43.70.250 and 43.70.280 and shall keep the license, certificate, or permit conspicuously posted in the place of business at all times. The secretary may establish mandatory continuing education requirements and/or continued competency standards to be met by licensees or certificate or permit holders as a condition for license, certificate, or permit renewal.                 Sec. 6. RCW 18.88A.230 and 1995 1st sp.s. c 18 s 48 are each amended to read as follows:          (1) The nurse and nursing assistant shall be accountable for their own individual actions in the delegation process. Nurses acting within the protocols of their delegation authority shall be immune from liability for any action performed in the course of their delegation duties. Nursing assistants following written delegation instructions from registered nurses performed in the course of their accurately written, delegated duties shall be immune from liability.            (2) No person may coerce a nurse into compromising patient safety by requiring the nurse to delegate if the nurse determines it is inappropriate to do so. Nurses shall not be subject to any employer reprisal or disciplinary action by the Washington nursing care quality assurance commission for refusing to delegate tasks or refusing to provide the required training for delegation if the nurse determines delegation may compromise patient safety. Nursing assistants shall not be subject to any employer reprisal or disciplinary action by the nursing care quality assurance commission for refusing to accept delegation of a nursing task based on patient safety issues. No community residential program, adult family home, or boarding home contracting to provide assisted-living services may discriminate or retaliate in any manner against a person because the person made a complaint or cooperated in the investigation of a complaint.         (3) The department of social and health services shall impose a civil fine of not less than two hundred fifty dollars nor more than one thousand dollars on a community residential program, adult family home, or boarding home under chapter 18, Laws of 1995 1st sp. sess. that knowingly permits an employee to perform a nursing task except as delegated by a nurse pursuant to chapter 18, Laws of 1995 1st sp. sess.      Sec. 7. 1995 1st sp.s. c 18 s 53 (uncodified) is amended to read as follows:         The secretary of health in consultation with the Washington nursing care quality assurance commission and the department of social and health services shall monitor the implementation of sections 45 through 54 of this act and shall make an interim report by December 31, 1996, and a final report by December 31, ((1997)) 1998, to the legislature with any recommendations for improvements. As part of the monitoring process, the secretary of health and the secretary of social and health services, in consultation with the University of Washington school of nursing, shall conduct a study to be completed by September 30, ((1997)) 1998, which shall be a part of the final report to be submitted to the legislature by December 31, ((1997)) 1998. The study shall include consideration of the protection of health and safety of persons with developmental disabilities and residents of adult family homes and boarding homes providing assisted living services, including the appropriateness of the tasks allowed for delegation, level and type of training and regulation of nursing assistants. The report shall include direct observation, documentation, and interviews, and shall specifically include data on the following:                  (1) Patient, nurse, and nursing assistant satisfaction;      (2) Medication errors, including those resulting in hospitalization;       (3) Compliance with required training;  (4) Compliance with nurse delegation protocols;     (5) Incidence of harm to patients, including abuse and neglect;             (6) Impact on access to care;  (7) Impact on patient quality of life; and         (8) Incidence of coercion in the nurse-delegation process.     Sec. 8. RCW 18.74.010 and 1991 c 12 s 1 are each amended to read as follows:         Unless the context otherwise requires, the definitions in this section apply throughout this chapter.    (1) "Board" means the board of physical therapy created by RCW 18.74.020.           (2) "Department" means the department of health.                (3) "Physical therapy" means the treatment of any bodily or mental condition of any person by the use of the physical, chemical, and other properties of heat, cold, air, light, water, electricity, sound, massage, and therapeutic exercise, which includes posture and rehabilitation procedures; the performance of tests and measurements of neuromuscular function as an aid to the diagnosis or treatment of any human condition; performance of treatments on the basis of test findings after consultation with and periodic review by an authorized health care practitioner except as provided in RCW 18.74.012; supervision of selective forms of treatment by trained supportive personnel; and provision of consultative services for health, education, and community agencies. The use of Roentgen rays and radium for diagnostic and therapeutic purposes, the use of electricity for surgical purposes, including cauterization, and the use of spinal manipulation or manipulative mobilization of the spine and its immediate articulations, are not included under the term "physical therapy" as used in this chapter.            (4) "Physical therapist" means a person who practices physical therapy as defined in this chapter but does not include massage operators as defined in RCW 18.108.010.      (5) "Secretary" means the secretary of health.        (6) Words importing the masculine gender may be applied to females.      (7) "Authorized health care practitioner" means and includes licensed physicians, osteopathic physicians, chiropractors, naturopaths, ((podiatrists, and)) podiatric physicians and surgeons, dentists, and advanced registered nurse practitioners: PROVIDED, HOWEVER, That nothing herein shall be construed as altering the scope of practice of such practitioners as defined in their respective licensure laws.      NEW SECTION. Sec. 9. The department of social and health services shall not impose civil fines authorized in RCW 18.88A.230 on facilities licensed under chapter 70.128 RCW.             This section does not affect any other fines or disciplinary actions authorized to be imposed by the department for facilities licensed under chapter 70.128 RCW.           This section expires July 1, 1999.          NEW SECTION. Sec. 10. A new section is added to chapter 43.03 RCW to read as follows:                (1) Any part-time commission that has rule-making authority, performs quasi-judicial functions, has responsibility for the policy direction of a health profession credentialing program, and performs regulatory and licensing functions with respect to a health care profession licensed under Title 18 RCW shall be identified as a class five group for purposes of compensation.     (2) Except as otherwise provided in this section, each member of a class five group is eligible to receive compensation in an amount not to exceed two hundred fifty dollars for each day during which the member attends an official meeting of the group or performs statutorily prescribed duties approved by the chairperson of the group. A person shall not receive compensation for a day of service under this section if the person (a) occupies a position, normally regarded as full-time in nature, in any agency of the federal government, Washington state government, or Washington state local government; and (b) receives any compensation from such government for working that day.     (3) Compensation may be paid a member under this section only if it is necessarily incurred in the course of authorized business consistent with the responsibilities of the commission established by law.    NEW SECTION. Sec. 11. The department of health shall study the feasibility of updating, designing, and expanding the comprehensive hospital abstract reporting system to include ambulatory and outpatient data. The department shall submit a preliminary report to the legislature by December 31, 1997, and a final report July 1, 1998. The report shall be done in conjunction with potential and current data providers and shall include a cost/benefit analysis, data standards and reporting requirements, financing alternatives, data access and dissemination requirements, prioritization of data needs, and proposed implementation phases."               Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Deccio moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5445.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Deccio that the Senate do concur in the House amendment to Substitute Senate Bill No. 5445.

      The motion by Senator Deccio carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5445.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5445, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5445, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43.        Excused: Senators Benton, Fraser, Loveland, McCaslin, Snyder and Spanel - 6.            SUBSTITUTE SENATE BILL NO. 5445, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Hale, Senator Schow was excused.

 

MESSAGE FROM THE HOUSE

April 16, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5462 with the following amendment(s):

      On page 3, line 20, after “RCW” strike “, unless” and insert “((, unless)) . In addition, a local government may adopt an ordinance exempting all building permit applications from the notice of application process as long as the exempted building permit applications are determined to be consistent with the local government’s comprehensive plan and development regulations adopted pursuant to chapter 36.70A RCW. Building permit applications are not exempt under this subsection if the applicable provision of the comprehensive plan or development regulations is subject to an order of invalidity of a court or a growth management hearings board. A notice of application shall be required under all circumstances if”,    and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Hale moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5462 and asks the House to recede therefrom.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Hale that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5462 and asks the House to recede therefrom.

      The motion by Senator Hale carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5462 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5503 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 28B.50.140 and 1991 c 238 s 39 and 1991 c 58 s 1 are each reenacted and amended to read as follows:     Each board of trustees:           (1) Shall operate all existing community and technical colleges in its district;   (2) Shall create comprehensive programs of community and technical college education and training and maintain an open-door policy in accordance with the provisions of RCW 28B.50.090(3). However, technical colleges, and college districts containing only technical colleges, shall maintain programs solely for occupational education, basic skills, and literacy purposes. For as long as a need exists, technical colleges may continue those programs, activities, and services they offered during the twelve-month period preceding September 1, 1991;                  (3) Shall employ for a period to be fixed by the board a college president for each community and technical college and, may appoint a president for the district, and fix their duties and compensation, which may include elements other than salary. Compensation under this subsection shall not affect but may supplement retirement, health care, and other benefits that are otherwise applicable to the presidents as state employees. The board shall also employ for a period to be fixed by the board members of the faculty and such other administrative officers and other employees as may be necessary or appropriate and fix their salaries and duties. Compensation and salary increases under this subsection shall not exceed the amount or percentage established for those purposes in the state appropriations act by the legislature as allocated to the board of trustees by the state board for community and technical colleges. The state board for community and technical colleges shall adopt rules defining the permissible elements of compensation under this subsection;       (4) May establish, under the approval and direction of the college board, new facilities as community needs and interests demand. However, the authority of boards of trustees to purchase or lease major off-campus facilities shall be subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340(5);      (5) May establish or lease, operate, equip and maintain dormitories, food service facilities, bookstores and other self-supporting facilities connected with the operation of the community and technical college;        (6) May, with the approval of the college board, borrow money and issue and sell revenue bonds or other evidences of indebtedness for the construction, reconstruction, erection, equipping with permanent fixtures, demolition and major alteration of buildings or other capital assets, and the acquisition of sites, rights-of-way, easements, improvements or appurtenances, for dormitories, food service facilities, and other self-supporting facilities connected with the operation of the community and technical college in accordance with the provisions of RCW 28B.10.300 through 28B.10.330 where applicable;               (7) May establish fees and charges for the facilities authorized hereunder, including reasonable rules and regulations for the government thereof, not inconsistent with the rules and regulations of the college board; each board of trustees operating a community and technical college may enter into agreements, subject to rules and regulations of the college board, with owners of facilities to be used for housing regarding the management, operation, and government of such facilities, and any board entering into such an agreement may:            (a) Make rules and regulations for the government, management and operation of such housing facilities deemed necessary or advisable; and    (b) Employ necessary employees to govern, manage and operate the same;         (8) May receive such gifts, grants, conveyances, devises and bequests of real or personal property from private sources, as may be made from time to time, in trust or otherwise, whenever the terms and conditions thereof will aid in carrying out the community and technical college programs as specified by law and the regulations of the state college board; sell, lease or exchange, invest or expend the same or the proceeds, rents, profits and income thereof according to the terms and conditions thereof; and adopt regulations to govern the receipt and expenditure of the proceeds, rents, profits and income thereof;           (9) May establish and maintain night schools whenever in the discretion of the board of trustees it is deemed advisable, and authorize classrooms and other facilities to be used for summer or night schools, or for public meetings and for any other uses consistent with the use of such classrooms or facilities for community and technical college purposes;           (10) May make rules and regulations for pedestrian and vehicular traffic on property owned, operated, or maintained by the district;             (11) Shall prescribe, with the assistance of the faculty, the course of study in the various departments of the community and technical college or colleges under its control, and publish such catalogues and bulletins as may become necessary;      (12) May grant to every student, upon graduation or completion of a course of study, a suitable diploma, nonbaccalaureate degree or certificate. ((Technical colleges shall offer only nonbaccalaureate technical degrees, certificates, or diplomas for occupational courses of study under rules of the college board. Technical colleges in districts twenty-eight and twenty-nine may offer nonbaccalaureate associate of technical or applied arts degrees only in conjunction with a community college the district of which overlaps with the district of the technical college, and these degrees may only be offered after a contract or agreement is executed between the technical college and the community college. The authority and responsibility to offer transfer level academic support and general education for students of districts twenty-one and twenty-five shall reside exclusively with Whatcom Community College.)) Technical colleges shall offer only nonbaccalaureate technical degrees under the rules of the state board for community and technical colleges that are appropriate to their work force education and training mission. The primary purpose of this degree is to lead the individual directly to employment in a specific occupation. Technical colleges may not offer transfer degrees. The board, upon recommendation of the faculty, may also confer honorary associate of arts degrees upon persons other than graduates of the community college, in recognition of their learning or devotion to education, literature, art, or science. No degree may be conferred in consideration of the payment of money or the donation of any kind of property;    (13) Shall enforce the rules and regulations prescribed by the state board for community and technical colleges for the government of community and technical colleges, students and teachers, and promulgate such rules and regulations and perform all other acts not inconsistent with law or rules and regulations of the state board for community and technical colleges as the board of trustees may in its discretion deem necessary or appropriate to the administration of college districts: PROVIDED, That such rules and regulations shall include, but not be limited to, rules and regulations relating to housing, scholarships, conduct at the various community and technical college facilities, and discipline: PROVIDED, FURTHER, That the board of trustees may suspend or expel from community and technical colleges students who refuse to obey any of the duly promulgated rules and regulations;        (14) May, by written order filed in its office, delegate to the president or district president any of the powers and duties vested in or imposed upon it by this chapter. Such delegated powers and duties may be exercised in the name of the district board;      (15) May perform such other activities consistent with this chapter and not in conflict with the directives of the college board;      (16) Notwithstanding any other provision of law, may offer educational services on a contractual basis other than the tuition and fee basis set forth in chapter 28B.15 RCW for a special fee to private or governmental entities, consistent with rules and regulations adopted by the state board for community and technical colleges: PROVIDED, That the whole of such special fee shall go to the college district and be not less than the full instructional costs of such services including any salary increases authorized by the legislature for community and technical college employees during the term of the agreement: PROVIDED FURTHER, That enrollments generated hereunder shall not be counted toward the official enrollment level of the college district for state funding purposes;  (17) Notwithstanding any other provision of law, may offer educational services on a contractual basis, charging tuition and fees as set forth in chapter 28B.15 RCW, counting such enrollments for state funding purposes, and may additionally charge a special supplemental fee when necessary to cover the full instructional costs of such services: PROVIDED, That such contracts shall be subject to review by the state board for community and technical colleges and to such rules as the state board may adopt for that purpose in order to assure that the sum of the supplemental fee and the normal state funding shall not exceed the projected total cost of offering the educational service: PROVIDED FURTHER, That enrollments generated by courses offered on the basis of contracts requiring payment of a share of the normal costs of the course will be discounted to the percentage provided by the college;      (18) Shall be authorized to pay dues to any association of trustees that may be formed by the various boards of trustees; such association may expend any or all of such funds to submit biennially, or more often if necessary, to the governor and to the legislature, the recommendations of the association regarding changes which would affect the efficiency of such association;      (19) Subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340(4), may participate in higher education centers and consortia that involve any four-year public or independent college or university; and  (20) Shall perform any other duties and responsibilities imposed by law or rule and regulation of the state board.         Sec. 2. RCW 28B.50.215 and 1991 c 238 s 144 are each amended to read as follows:        The colleges in each overlapping service area shall jointly submit for approval to the state board for community and technical colleges ((not later than December 1, 1991,)) a regional planning agreement. The agreement shall provide for the ongoing interinstitutional coordination of community and technical college programs and services operated in the overlapping service area. The agreement shall include the means for the adjudication of issues arising from overlapping service areas. The agreement shall include a definitive statement of mission, scope, and purpose for each college including the nature of courses, programs, and services to be offered by each college. ((The statement shall include a provision that the technical colleges shall not offer courses designed for transfer to baccalaureate granting institutions. This shall not preclude such offerings provided through contracts or agreements with a community college in the service area.))         Technical colleges may, under the rules of the state board for community and technical colleges, offer all specific academic support courses that may be at a transfer level that are required of all students to earn a particular certificate or degree. This shall not be interpreted to mean that their mission may be expanded to include transfer preparation, nor does it preclude technical colleges from voluntarily and cooperatively using available community college courses as components of technical college programs.  Any part of the agreement that is not approved by all the colleges in the service area, shall be determined by the state board for community and technical colleges. Approved regional planning agreements shall be enforced by the full authority of the state board for community and technical colleges. Changes to the agreement are subject to state board approval.      For the purpose of creating and adopting a regional planning agreement, the trustees of the colleges in Pierce county shall form a county coordinating committee. The county coordinating committee shall consist of eight members. Each college board of trustees in Pierce county shall select two of its members to serve on the county coordinating committee. The county coordinating committee shall not employ its own staff, but shall instead utilize staff of the colleges in the county. The regional planning agreement adopted by the county coordinating committee shall include, but shall not be limited to: The items listed in this section, the transfer of credits between technical and community colleges, program articulation, and the avoidance of unnecessary duplication in programs, activities, and services.",              and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Wood moved that the Senate do concur in the House amendment to Senate Bill No. 5503.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Wood that the Senate do concur in the House amendment to Senate Bill No. 5503.

      The motion by Senator Wood carried and the Senate concurred in the House amendment to Senate Bill No. 5503.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5503, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5503, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43.                    Excused: Senators Fraser, Loveland, McCaslin, Schow, Snyder and Spanel - 6.             SENATE BILL NO. 5503, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 14, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5195 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:               (1) For the purposes of this section, "qualifying discount program" means a membership program, club, or plan that entitles the member to discounts on services or products sold by others. The term does not include any discount program which in part or in total entitles the member to discounts on services or products sold by the seller of the membership or an affiliate of the seller of the membership. "Affiliate," for the purposes of this section, means any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the seller.   (2) Persons selling memberships in a qualifying discount program are not subject to tax under this chapter on that portion of the membership sales where the seller delivers the membership materials to the purchaser who receives them at a point outside this state.            NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."      Correct the title accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator West moved that the Senate do concur in the House amendment to Senate Bill No. 5195.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator West that the Senate do concur in the House amendment to Senate Bill No. 5195.

      The motion by Senator West carried and the Senate concurred in the House amendment to Senate Bill No. 5195.


MOTION


      On motion of Senator Swecker, Senator Deccio was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5195, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5195, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 36; Nays, 6; Absent, 0; Excused, 7.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Long, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, West, Winsley, Wood and Zarelli - 36.     Voting nay: Senators Fairley, Kline, Kohl, McAuliffe, Thibaudeau and Wojahn - 6. Excused: Senators Deccio, Fraser, Loveland, McCaslin, Schow, Snyder and Spanel - 7.               SENATE BILL NO. 5195, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 14, 1997


MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5514 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that Initiative Measure No. 601, adopted by the people of the state of Washington, limits fee increases by requiring that any increases in fees beyond the levels expressly allowed under the initiative receive the prior approval of the legislature. The legislature finds that a more direct system of allowing the people to control fee increases predates Initiative Measure No. 601. This system developed in agricultural communities and provides these communities with direct control of the fees of the agricultural commodity commissions they created to serve them. The system requires those who pay the assessments levied by commodity commissions and boards to approve of assessment increases by referendum. It is at the heart of the statutes and marketing orders and agreements under which agricultural commodity commissions and boards are created. The legislature does not believe that the adoption of Initiative Measure No. 601 was intended to dilute in any manner this more direct control held by the people governed by commodity commissions or boards over the fees they pay in the form of such assessments. Therefore, the legislature defers to this more direct control of these assessments so long as the authority to approve or disapprove of increases in these assessments is by referendum held directly by those who pay them.           Sec. 2. RCW 43.135.055 and 1994 c 2 s 8 are each amended to read as follows:      (1) No fee may increase in any fiscal year by a percentage in excess of the fiscal growth factor for that fiscal year without prior legislative approval.            (2) This section does not apply to an assessment made by an agricultural commodity commission or board created by state statute or created under a marketing agreement or order under chapter 15.65 or 15.66 RCW if the assessment is approved by referendum in accordance with the provisions of the statutes creating the commission or board or chapter 15.65 or 15.66 RCW for approving such assessments.      Sec. 3. RCW 15.28.180 and 1992 c 87 s 1 are each amended to read as follows:                 (1) The same assessment shall be made for each soft tree fruit, except that if a two-thirds majority of the state commodity committee of any fruit recommends in writing the levy of an additional assessment on that fruit, or any classification thereof, for any year or years, the commission may levy such assessment for that year or years up to the maximum of eighteen dollars for each two thousand pounds of any fruit except cherries or any classification thereof, as to which the assessment may be increased to a maximum of thirty dollars for each two thousand pounds, and except pears covered by this chapter, as to which the assessment may be increased to a maximum of eighteen dollars for each two thousand pounds: PROVIDED, That no increase in the assessment on pears becomes effective unless the increase is first referred by the commission to a referendum by the Bartlett pear growers of the state and is approved by a majority of the growers voting on the referendum. The method and procedure of conducting the referendum shall be determined by the commission. Any funds so raised shall be expended solely for the purposes provided in this chapter and solely for such fruit, or classification thereof.       The commission has the authority in its discretion to exempt in whole or in part from future assessments under this chapter, during such period as the commission may prescribe, any of the soft tree fruits or any particular strain or classification of them.      (2) An assessment levied under this chapter may be increased in excess of the fiscal growth factor as determined under chapter 43.135 RCW if the assessment is submitted by referendum to the growers who are subject to the assessment and the increase is approved by a majority of those voting on the referendum. The method and procedure of conducting the referendum shall be determined by the commission.      Sec. 4. RCW 15.86.070 and 1992 c 71 s 10 are each amended to read as follows:               (1) The director may adopt rules establishing a certification program for producers, processors, and vendors of organic or transition to organic food. The rules may govern, but are not limited to governing: The number and scheduling of on-site visits, both announced and unannounced, by certification personnel; recordkeeping requirements; and the submission of product samples for chemical analysis. The rules shall include a fee schedule that will provide for the recovery of the full cost of the organic food program. Fees collected under this section shall be deposited in an account within the agricultural local fund and the revenue from such fees shall be used solely for carrying out the provisions of this section, and no appropriation is required for disbursement from the fund. The director may employ such personnel as are necessary to carry out the provisions of this section.      (2) The fees established under this section may be increased in excess of the fiscal growth factor as provided in RCW 43.135.055 for the fiscal year ending June 30, 1998.  NEW SECTION. Sec. 5. A new section is added to chapter 43.23 RCW to read as follows:      The director may collect moneys to recover the reasonable costs of publishing and disseminating informational materials by the department. Materials may be disseminated in printed or electronic format. All moneys collected shall be deposited in the agricultural local fund or other appropriate fund administered by the director.             Sec. 6. RCW 22.09.050 and 1994 c 46 s 4 are each amended to read as follows:      Any application for a license to operate a warehouse shall be accompanied by a license fee of ((twelve hundred)) one thousand three hundred fifty dollars for a terminal warehouse, ((nine hundred)) one thousand fifty dollars for a subterminal warehouse, and ((three hundred and fifty)) five hundred dollars for a country warehouse. If a licensee operates more than one warehouse under one state license as provided for in RCW 22.09.030, the license fee shall be computed by multiplying the number of physically separated warehouses within the station by the applicable terminal, subterminal, or country warehouse license fee.             If an application for renewal of a warehouse license or licenses is not received by the department prior to the renewal date or dates established by the director by rule, a penalty of fifty dollars for the first week and one hundred dollars for each week thereafter shall be assessed and added to the original fee and shall be paid by the applicant before the renewal license may be issued. This penalty does not apply if the applicant furnishes an affidavit certifying that he has not acted as a warehouseman subsequent to the expiration of his or her prior license.                Sec. 7. RCW 22.09.055 and 1994 c 46 s 5 are each amended to read as follows:      An application for a license to operate as a grain dealer shall be accompanied by a license fee of ((six hundred)) seven hundred fifty dollars. The license fee for exempt grain dealers shall be ((one hundred fifty)) three hundred dollars.    If an application for renewal of a grain dealer or exempt grain dealer license is not received by the department before the renewal date or dates established by the director by rule, a penalty of fifty dollars for the first week and one hundred dollars for each week thereafter shall be assessed and added to the original fee and shall be paid by the applicant before the renewal license may be issued. This penalty does not apply if the applicant furnishes an affidavit certifying that he has not acted as a grain dealer or exempt grain dealer after the expiration of his or her prior license.             NEW SECTION. Sec. 8. Sections 6 and 7 of this act take effect July 1, 1998.    NEW SECTION. Sec. 9. Sections 1 through 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."    Correct the title.,                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Morton moved that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5514.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5514.

      The motion by Senator Morton carried and the Senate concurred in the House amendment to Engrossed Senate Bill No. 5514.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5514, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5514, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 25; Nays, 15; Absent, 2; Excused, 7.

      Voting yea: Senators Anderson, Bauer, Brown, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Horn, Jacobsen, Kline, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Sheldon, Swecker, West, Winsley and Wood - 25.        Voting nay: Senators Benton, Fairley, Finkbeiner, Hochstatter, Johnson, Kohl, Patterson, Prentice, Roach, Stevens, Strannigan, Swanson, Thibaudeau, Wojahn and Zarelli - 15.               Absent: Senators Rossi and Sellar - 2.   Excused: Senators Deccio, Fraser, Loveland, McCaslin, Schow, Snyder and Spanel - 7.  ENGROSSED SENATE BILL NO. 5514, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Hale, Senator Rossi was excused.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5530 with the following amendment(s):

      On page 2, after line 14, insert the following:        The term “agriculture” does not mean a farmer’s processing for sale or handling for sale a commodity or product grown or produced by a person other than the farmer or the farmer’s employees.”,             and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Morton moved that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5530.


POINT OF INQUIRY


      Senator Prentice: “Senator Morton, the purpose of excluding forestry and lumbering--that is the purpose of the underlying bill? Is that what we are doing?''

      Senator Morton: “That, Senator Prentice, is part of the purpose. The other is to make it clear that those are not included in the agricultural part of WISHA.”

      Senator Prentice: “Then, what will protect the workers? What law will be protecting the workers?”

      Senator Morton: “In the two entities that you referred to?”

      Senator Prentice: “Yes.”

      Senator Morton: “They would come under a separate category and I don't know what that category is.”

      Senator Prentice: “What is the purpose of exempting, then, of exempting them? Why can't they be under the same kind of rules? I am really trying to--I don't mean to be hostile--I just need to understand why we would be excluding them? They both work outdoors. I am thinking of folks that plant Christmas trees that are working out there in any of those operations and I know--I don't want to belabor this--but I have been a nurse and I know that is where some of those horrible accidents occur. So, I am wondering if we are really undermining it? I really need to understand it better.”

      Senator Morton: “Okay. I am not sure it is there in the green book. I could, Mr. President, read from this excerpt. It says 'For the purpose of agriculture, meaning farming and all its branches and includes,' and then there is a long list of those that are included. So, it more specifically defines--excuse me--those that are included specifically under agriculture listings. The other entities are under different listings. All are protected.”

      Senator Prentice: “Thank you very much.”

      Further debate ensued.


POINT OF INQUIRY


      Senator Wojahn: “Senator Morton, I notice here that one of the House amendments states that they do not require the Department of Ecology to approve. Can you respond to that and why that is and isn't that necessary?”

      Senator Morton: “Senator Wojahn, I didn't get all of your question. Could you repeat it again, please? You were asking on the Department of Ecology --”

      Senator Wojahn: “Yes, why they were not required to get approval from the Department of Ecology? That is from an amendment in the House.”

      Senator Morton: “Because we defined agriculture and we put it under WISHA in these particular regulations pertaining to safety standards. All right--and the Department of Ecology does not necessarily handle safety standards. So, that comes under WISHA, which is their responsibility and it focuses just upon the safety standards with WISHA.”

      Senator Wojahn: “Which is under L & I, is that correct? The safety standards are under Labor and Industry?”

      Senator Morton: “I believe that is correct.”

      Further debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton that the Senate do concur in the House amendment to Senate Bill No. 5530.

      The motion by Senator Morton carried and the Senate concurred in the House amendment to Senate Bill No. 5530.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5530, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5530, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 3; Absent, 0; Excused, 6.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prince, Rasmussen, Roach, Schow, Sellar, Sheldon, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wood and Zarelli - 40.                Voting nay: Senators Prentice, Swanson and Wojahn - 3.                Excused: Senators Fraser, Loveland, McCaslin, Rossi, Snyder and Spanel - 6.      SENATE BILL NO. 5530, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


NOTICE FOR RECONSIDERATION


      Having voted on the prevailing side, Senator Heavey served notice that he would move to reconsider the vote by which Senate Bill No. 5530, as amended by the House, passed the Senate.


MESSAGE FROM THE HOUSE

April 14, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5554 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 61.24.010 and 1991 c 72 s 58 are each amended to read as follows:  (1) The terms "record" and "recorded" as used in this chapter, shall include the appropriate registration proceedings, in the instance of registered land.           (2) The trustee of a deed of trust under this chapter shall be:                 (a) Any domestic corporation incorporated under Title 23B, 30, 31, 32, or 33 RCW; or             (b) Any title insurance company authorized to insure title to real property under the laws of this state, or its agents; or           (c) Any attorney who is an active member of the Washington state bar association at the time he is named trustee; or       (d) Any professional corporation incorporated under chapter 18.100 RCW, all of whose shareholders are licensed attorneys; or       (e) Any agency or instrumentality of the United States government; or            (f) Any national bank, savings bank, or savings and loan association chartered under the laws of the United States.             (3) ((The trustee shall resign at the request of the beneficiary and may resign at its own election. Upon the resignation, incapacity, disability, or death of the trustee, the beneficiary shall nominate in writing a successor trustee.)) The beneficiary may appoint in writing a successor trustee at any time. Upon recording in the mortgage records of the county or counties in which the trust deed is recorded, of the appointment of a successor trustee, the successor trustee shall be vested with all powers of the original trustee. Recording of the appointment of a successor trustee shall be deemed a resignation by the predecessor trustee.      Sec. 2. RCW 61.24.040 and 1989 c 361 s 1 are each amended to read as follows:               A deed of trust foreclosed under this chapter shall be foreclosed as follows:              (1) At least ninety days before the sale, the trustee shall:       (a) Record a notice in the form described in RCW 61.24.040(1)(f) in the office of the auditor in each county in which the deed of trust is recorded;               (b) If their addresses are stated in a recorded instrument evidencing their interest, lien, or claim of lien, or an amendment thereto, or are otherwise known to the trustee, cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to the following persons or their legal representatives, if any, at such address:               (i) The grantor or the grantor's successor in interest;          (ii) The beneficiary of any deed of trust or mortgagee of any mortgage, or any person who has a lien or claim of lien against the property, that was recorded subsequent to the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;                    (iii) The vendee in any real estate contract, the lessee in any lease or the holder of any conveyances of any interest or estate in any portion or all of the property described in such notice, if that contract, lease, or conveyance of such interest or estate, or a memorandum or other notice thereof, was recorded after the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;      (iv) The last holder of record of any other lien against or interest in the property that is subject to a subordination to the deed of trust being foreclosed that was recorded before the recordation of the notice of sale; and             (v) The last holder of record of the lien of any judgment subordinate to the deed of trust being foreclosed;         (c) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to the plaintiff or the plaintiff's attorney of record, in any court action to foreclose a lien or other encumbrance on all or any part of the property, provided a court action is pending and a lis pendens in connection therewith is recorded in the office of the auditor of any county in which all or part of the property is located on the date the notice is recorded;        (d) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to any person who has recorded a request for notice in accordance with RCW 61.24.045, at the address specified in such person's most recently recorded request for notice;              (e) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be posted in a conspicuous place on the property, or in lieu of posting, cause a copy of said notice to be served upon any occupant of the property;              (f) The notice shall be in substantially the following form:

NOTICE OF TRUSTEE'S SALEI.NOTICE IS HEREBY GIVEN that the undersigned Trustee will on the . . . . day of . . . . . ., 19. . ., at the hour of . . . . o'clock . . . . M. at . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  [street address and location if inside

a building] in the City of . . . . . ., State of Washington, sell at public auction to the highest and best bidder, payable at the time of sale, the following described real property, situated in the County(ies) of . . . . . ., State of Washington, to-wit:which is subject to that certain Deed of Trust dated . . . . . ., 19. . ., recorded . . . . . ., 19. . ., under Auditor's File No. . . . ., records of . . . . . . County, Washington, from . . . . . . . . ., as Grantor, to . . . . . . . . ., as Trustee, to secure an obligation in favor of . . . . . . . . ., as Beneficiary, the beneficial interest in which was assigned by . . . . . . . . ., under an Assignment recorded under Auditor's File No. . . . . [Include recording information for all counties if the Deed of Trust is recorded in more than one county.]II.No action commenced by the Beneficiary of the Deed of Trust or the Beneficiary's successor is now pending to seek satisfaction of the obligation in any Court by reason of the Grantor's default on the obligation secured by the Deed of Trust.

III.

The default(s) for which this foreclosure is made is/are as follows:

[If default is for other than payment of money, set forth the particulars]

Failure to pay when due the following amounts which are now in arrears:IV.The sum owing on the obligation secured by the Deed of Trust is: Principal $ . . . . . ., together with interest as provided in the note or other instrument secured from the . . . . day of . . . . . ., 19. . ., and such other costs and fees as are due under the note or other instrument secured, and as are provided by statute.V.The above-described real property will be sold to satisfy the expense of sale and the obligation secured by the Deed of Trust as provided by statute. The sale will be made without warranty, express or implied, regarding title, possession, or encumbrances on the . . . . day of . . . . . ., 19. . . The default(s) referred to in paragraph III must be cured by the . . . . day of . . . . . ., 19. . . (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated if at any time on or before the . . . . day of . . . . . ., 19. . ., (11 days before the sale date), the default(s) as set forth in paragraph III is/are cured and the Trustee's fees and costs are paid. The sale may be terminated any time after the . . . . day of . . . . . ., 19. . . (11 days before the sale date), and before the sale by the Grantor or the Grantor's successor in interest or the holder of any recorded junior lien or encumbrance paying the entire principal and interest secured by the Deed of Trust, plus costs, fees, and advances, if any, made pursuant to the terms of the obligation and/or Deed of Trust, and curing all other defaults.VI.A written notice of default was transmitted by the Beneficiary or Trustee to the Grantor or the Grantor's successor in interest at the following address:                                                                                         . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

by both first class and certified mail on the . . . . day of . . . . . ., 19. . ., proof of which is in the possession of the Trustee; and the Grantor or the Grantor's successor in interest was personally served on the . . . . day of . . . . . ., 19. . ., with said written notice of default or the written notice of default was posted in a conspicuous place on the real property described in paragraph I above, and the Trustee has possession of proof of such service or posting.VII.After receiving a request for a statement of all costs and fees due at any time prior to the sale from any person entitled to notice under RCW 61.24.040(1)(b), the Trustee whose name and address are set forth below will provide the requested statement in writing to ((anyone requesting it, a statement of all costs and fees due at any time prior to the sale)) such person.

VIII.

The effect of the sale will be to deprive the Grantor and all those who hold by, through or under the Grantor of all their interest in the above-described property.IX.Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the sale pursuant to RCW 61.24.130. Failure to bring such a lawsuit may result in a waiver of any proper grounds for invalidating the Trustee's sale.                                                                 . . . . . . . . . . . . . . , Trustee Address} Phone

[Individual or corporate acknowledgment]

      (2) In addition to providing the grantor or the grantor's successor in interest the notice of sale described in RCW 61.24.040(1)(f), the trustee shall include with the copy of the notice which is mailed to the grantor or the grantor's successor in interest, a statement to the grantor or the grantor's successor in interest in substantially the following form:

NOTICE OF FORECLOSUREPursuant to the Revised Code of Washington,Chapter 61.24 RCW

      The attached Notice of Trustee's Sale is a consequence of default(s) in the obligation to . . . . . ., the Beneficiary of your Deed of Trust and owner of the obligation secured thereby. Unless the default(s) is/are cured, your property will be sold at auction on the . . . . day of . . . . . ., 19. . .

      To cure the default(s), you must bring the payments current, cure any other defaults, and pay accrued late charges and other costs, advances, and attorneys' fees as set forth below by the . . . . day of . . . . . ., 19. . . (11 days before the sale date). To date, these arrears and costs are as follows:                                                                                                                       Estimated amount

                                                          Currently due                                        that will be due                                                    to reinstate                                           to reinstate                                                                on. . . . .                                         on. . . . .                                                                    . . . . . .                                                     . . . . . .                                                                                                                   (11 days before                                                                                                                      the date set                                                                                                                           for sale)

Delinquent payments

from . . . . . .,19. . ., in theamount of $ . . . . /mo.:                                       $ . . . .                                                                        $ . . . .

Late charges in

the totalamount of:                                      $ . . . .                                                                        $ . . . .

                                                                                                                                      Estimated

                                                                                                                                      AmountsAttorneys' fees:                        $ . . . .$ . . . .

Trustee's fee:                               $ . . . .                                                                        $ . . . . 


Trustee's expenses:

(Itemization)

Title report                                  $ . . . .                                                                        $ . . . .

Recording fees                            $ . . . .                                                                        $ . . . . . . . .

Service/Postingof Notices                               $ . . . .                                                                        $ . . . .Postage/Copyingexpense  $ . . . .$ . . . .Publication$ . . . .                                        $ . . . .Telephone

charges                                         $ . . . .                                                                        $ . . . .Inspection fees                              $ . . . .$ . . . .

.. . . . . .                                         $ . . . .                                                                        $ . . . .

. . . . . . .                                        $ . . . .                                                                        $ . . . .

 

TOTALS                                      $ . . . .                                                                        $ . . . .


       As to the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust, you must cure each such default. Listed below are the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust. Opposite each such listed default is a brief description of the action necessary to cure the default and a description of the documentation necessary to show that the default has been cured.

                        Default                        Description of Action Required to Cure and Documentation Necessary to Show Cure

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

                                                             . . . . . . .You may reinstate your Deed of Trust and the obligation secured thereby at any time up to and including the . . . . day of . . . . . ., 19. . . (11 days before the sale date), by paying the amount set forth or estimated above and by curing any other defaults described above. Of course, as time passes other payments may become due, and any further payments coming due and any additional late charges must be added to your reinstating payment. Any new defaults not involving payment of money that occur after the date of this notice must also be cured in order to effect reinstatement. In addition, because some of the charges can only be estimated at this time, and because the amount necessary to reinstate may include presently unknown expenditures required to preserve the property or to comply with state or local law, it will be necessary for you to contact the Trustee before the time you tender reinstatement so that you may be advised of the exact amount you will be required to pay. Tender of payment or performance must be made to: . . . . . ., whose address is . . . . . ., telephone (   ) . . . . . . AFTER THE . . . . DAY OF . . . . . ., 19. . ., YOU MAY NOT REINSTATE YOUR DEED OF TRUST BY PAYING THE BACK PAYMENTS AND COSTS AND FEES AND CURING THE OTHER DEFAULTS AS OUTLINED ABOVE. In such a case, you will only be able to stop the sale by paying, before the sale, the total principal balance ($ . . . . . .) plus accrued interest, costs and advances, if any, made pursuant to the terms of the documents and by curing the other defaults as outlined above.You may contest this default by initiating court action in the Superior Court of the county in which the sale is to be held. In such action, you may raise any legitimate defenses you have to this default. A copy of your Deed of Trust and documents evidencing the obligation secured thereby are enclosed. You may wish to consult a lawyer. Legal action on your part may prevent or restrain the sale, but only if you persuade the court of the merits of your defense.If you do not reinstate the secured obligation and your Deed of Trust in the manner set forth above, or if you do not succeed in restraining the sale by court action, your property will be sold to satisfy the obligations secured by your Deed of Trust. The effect of such sale will be to deprive you and all those who hold by, through or under you of all interest in the property;(3) In addition, the trustee shall cause a copy of the notice of sale described in RCW 61.24.040(1)(f) (excluding the acknowledgment) to be published in a legal newspaper in each county in which the property or any part thereof is situated, once on or between the ((thirty-second)) thirty-fifth and twenty-eighth day before the date of sale, and once on or between the ((eleventh)) fourteenth and seventh day before the date of sale;(4) On the date and at the time designated in the notice of sale, the trustee or its authorized agent shall sell the property at public auction to the highest bidder. The trustee may sell the property in gross or in parcels as the trustee shall deem most advantageous;(5) The place of sale shall be at any designated public place within the county where the property is located and if the property is in more than one county, the sale may be in any of the counties where the property is located. The sale shall be on Friday, or if Friday is a legal holiday on the following Monday, and during the hours set by statute for the conduct of sales of real estate at execution;(6) The trustee may for any cause the trustee deems advantageous, continue the sale for a period or periods not exceeding a total of one hundred twenty days by a public proclamation at the time and place fixed for sale in the notice of sale or, alternatively, by giving notice of the time and place of the postponed sale in the manner and to the persons specified in RCW 61.24.040(1) (b), (c), (d), and (e) and publishing a copy of such notice once in the newspaper(s) described in RCW 61.24.040(3), more than seven days before the date fixed for sale in the notice of sale. No other notice of the postponed sale need be given;(7) The purchaser shall forthwith pay the price bid and on payment the trustee shall execute to the purchaser its deed; the deed shall recite the facts showing that the sale was conducted in compliance with all of the requirements of this chapter and of the deed of trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value, except that these recitals shall not affect the lien or interest of any person entitled to notice under RCW 61.24.040(1), if the trustee fails to give the required notice to such person. In such case, the lien or interest of such omitted person shall not be affected by the sale and such omitted person shall be treated as if such person was the holder of the same lien or interest and was omitted as a party defendant in a judicial foreclosure proceeding;(8) The sale as authorized under this chapter shall not take place less than one hundred ninety days from the date of default in any of the obligations secured.Sec. 3. RCW 61.24.050 and 1965 c 74 s 5 are each amended to read as follows:The trustee's sale shall be deemed final when the bidding is closed and either: (1) The beneficiary is the successful bidder or (2) the trustee holds cash, a certified check, a cashier's check, a money order, or funds received by electronic transfer, or any combination thereof, payable to the trustee or the beneficiary in the amount of the successful bid. The deed of the trustee, executed and delivered to the purchaser, shall convey all of the right, title, and interest in the property which the grantor had or had the power to convey at the time of the execution by him of the deed of trust, and such as he may have thereafter acquired. After sale, as in this chapter provided, no person shall have any right by statute or otherwise to redeem from the deed of trust or from the sale.Sec. 4. RCW 61.24.070 and 1965 c 74 s 7 are each amended to read as follows:(1) The trustee may not bid at the trustee's sale. Any other person including the beneficiary under the deed of trust may bid at the trustee's sale.(2) The beneficiary may credit bid all or any part of the obligations secured by the deed of trust. If the beneficiary is the purchaser, any amount bid in excess of the obligations secured by the deed of trust shall be paid to the trustee in the form of cash, certified check, cashier's check, or money order, or any combination thereof. If the purchaser is not the beneficiary, the entire bid shall be paid to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by electronic transfer, or any combination thereof.Sec. 5. RCW 61.24.080 and 1981 c 161 s 5 are each amended to read as follows:The trustee shall apply the proceeds of the sale as follows:(1) To the expense of sale, including a reasonable charge by the trustee and by his attorney: PROVIDED, That the aggregate of the charges by the trustee and his attorney, for their services in the sale, shall not exceed the amount which would, by the superior court of the county in which the trustee's sale occurred, have been deemed a reasonable attorney fee, had the trust deed been foreclosed as a mortgage in a noncontested action in the said court;(2) To the obligation secured by the deed of trust; and(3) The surplus, if any, less the clerk's filing fee shall be deposited together with written notice of the amount of the surplus, a copy of the recorded notice of sale, and an affidavit of mailing as provided below with the clerk of the superior court of the county in which the sale took place. The trustee shall mail copies of the notice of the surplus, the notice of sale, and the affidavit of mailing to each party to whom the notice of sale was sent pursuant to RCW 61.24.040(1). The clerk shall index such funds under the name of the grantor as set out in the recorded notice. Upon ((depositing such surplus)) compliance with the foregoing, the trustee shall be discharged from all further responsibilities ((therefor)) for the surplus. Interests in, or liens or claims of liens against the property eliminated by sale under this section shall attach to such surplus in the order of priority that it had attached to the property. A party seeking disbursement of funds shall file a motion requesting disbursement and shall mail notice of the motion to all parties to whom the trustee mailed notice of the surplus and any other party who has entered an appearance in the proceeding established by the notice of surplus at least ten days prior to the hearing of the motion. The clerk shall not disburse such surplus except upon order of the superior court of such county.Sec. 6. RCW 61.24.090 and 1987 c 352 s 4 are each amended to read as follows:(1) At any time prior to the eleventh day before the date set by the trustee for the sale in the recorded notice of sale, or in the event the trustee continues the sale pursuant to RCW 61.24.040(6), at any time prior to the eleventh day before the actual sale, the grantor or his successor in interest, any beneficiary under a subordinate deed of trust or any person having a subordinate lien or encumbrance of record on the trust property or any part thereof, shall be entitled to cause a discontinuance of the sale proceedings by curing the default or defaults set forth in the notice, which in the case of a default by failure to pay, shall be by paying to the trustee:(a) The entire amount then due under the terms of the deed of trust and the obligation secured thereby, other than such portion of the principal as would not then be due had no default occurred, and(b) The expenses actually incurred by the trustee enforcing the terms of the note and deed of trust, including a reasonable trustee's fee, together with the trustee's reasonable attorney's fees, together with costs of recording the notice of discontinuance of notice of trustee's sale.(2) Any person entitled to cause a discontinuance of the sale proceedings shall have the right, before or after reinstatement, to request any court, excluding a small claims court, for disputes within the jurisdictional limits of that court, to determine the reasonableness of any fees demanded or paid as a condition to reinstatement. The court shall make such determination as it deems appropriate, which may include an award to the prevailing party of its costs and reasonable attorneys' fees, and render judgment accordingly. An action to determine fees shall not forestall any sale or affect its validity.(3) Upon receipt of such payment the proceedings shall be discontinued, the deed of trust shall be reinstated and the obligation shall remain as though no acceleration had taken place.(4) In the case of a default which is occasioned by other than failure to make payments, the person or persons causing the said default shall pay the expenses incurred by the trustee and the trustee's fees as set forth in subsection (1)(b) of this section.(5) Any person having a subordinate lien of record on the trust property and who has cured the default or defaults pursuant to this section shall thereafter have included in his lien all payments made to cure any defaults, including interest thereon at eight percent per annum, payments made for trustees' costs and fees incurred as authorized herein, and his reasonable attorney's fees and costs incurred resulting from any judicial action commenced to enforce his rights to advances under this section.(6) If the default is cured and the obligation and the deed of trust reinstated in the manner hereinabove provided, the trustee shall properly execute, acknowledge and cause to be recorded a notice of discontinuance of trustee's sale under such deed of trust. A notice of discontinuance of trustee's sale when so executed and acknowledged is entitled to be recorded and shall be sufficient if it sets forth a record of the deed of trust and the auditor's file number under which the deed of trust is recorded, and a reference to the notice of sale and the auditor's file number under which the notice of sale is recorded, and a notice that such sale is discontinued.(7) Any payments required under this section as a condition precedent to reinstatement of the deed of trust shall be tendered to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by electronic transfer, or any combination thereof.Sec. 7. RCW 61.24.130 and 1987 c 352 s 5 are each amended to read as follows:(1) Nothing contained in this chapter shall prejudice the right of the grantor, the grantor's successor in interest, or any person who has an interest in, lien, or claim of lien against the property or some part thereof, to restrain, on any proper ground, a trustee's sale. The court shall require as a condition of granting the restraining order or injunction that the applicant pay to the clerk of the court the sums that would be due on the obligation secured by the deed of trust if the deed of trust was not being foreclosed:(a) In the case of default in making the periodic payment of principal, interest, and reserves, such sums shall be the periodic payment of principal, interest, and reserves paid to the clerk of the court every thirty days.(b) In the case of default in making payment of an obligation then fully payable by its terms, such sums shall be the amount of interest accruing monthly on said obligation at the nondefault rate, paid to the clerk of the court every thirty days.In the case of default in performance of any nonmonetary obligation secured by the deed of trust, the court shall impose such conditions as it deems just.In addition, the court may condition granting the restraining order or injunction upon the giving of security by the applicant, in such form and amount as the court deems proper, for the payment of such costs and damages, including attorneys' fees, as may be later found by the court to have been incurred or suffered by any party by reason of the restraining order or injunction. The court may consider, upon proper showing, the grantor's equity in the property in determining the amount of said security.(2) No court may grant a restraining order or injunction to restrain a trustee's sale ((unless)) except as provided in this section. The person seeking the restraint shall give((s)) five court days notice to the trustee and the beneficiary of the time when, place where, and the judge before whom the application for the restraining order or injunction is to be made. No judge may act upon such application unless it is accompanied by proof, evidenced by return of a sheriff, the sheriff's deputy, or by any person eighteen years of age or over who is competent to be a witness, that the notice has been timely served on the trustee.(3) If the restraining order or injunction is dissolved after the date of the trustee's sale set forth in the notice as provided in RCW 61.24.040(1)(f) ((and after the period for continuing sale as allowed by RCW 61.24.040(6))), the court granting such restraining order or injunction, or before whom the order or injunction is returnable, has the right to set a new sale date which shall be not less than forty-five days from the date of the order dissolving the restraining order. ((At least thirty days before the new sale date,)) The trustee shall:(a) Comply with the requirements of RCW 61.24.040(1) (a) through (f) at least thirty days before the new sale date; and(b) Cause a copy of the notice of trustee's sale as provided in RCW 61.24.040(1)(f) to be published ((once weekly during the three weeks preceding the time of sale)) in a legal newspaper in each county in which the property or any part thereof is situated, once between the thirty-fifth and twenty-eighth day before the sale and once between the fourteenth and seventh day before the sale.(4) If a trustee's sale has been stayed as a result of the filing of a petition in federal bankruptcy court and((, after the period for continuing sale as allowed by RCW 61.24.040(6),)) an order is entered in federal bankruptcy court granting relief from the stay or closing or dismissing the case, or discharging the debtor with the effect of removing the stay, the trustee may set a new sale date which shall not be less than forty-five days after the date of the bankruptcy court's order. The trustee shall:(a) Comply with the requirements of RCW 61.24.040(1) (a) through (f) at least thirty days before the new sale date; and(b) Cause a copy of the notice as provided in RCW 61.24.040(1)(f) to be published in a legal newspaper in each county in which the property or any part thereof is situated, once between the ((thirty-second)) thirty-fifth and twenty-eighth day before the sale and once between the ((eleventh)) fourteenth and seventh day before the sale.(5) The provisions of subsections (3) and (4) of this section are permissive only and may not be interpreted to prohibit the trustee from proceeding with a trustee's sale following termination of any injunction or stay on any date to which such sale has been properly continued in accordance with RCW 61.24.040(6).NEW SECTION. Sec. 8. A new section is added to chapter 61.24 RCW to read as follows:(1) It is unlawful for a person, acting alone or in concert with others to (a) offer, offer to accept, or accept from another any consideration of any type not to bid; or (b) fix or restrain bidding in any manner, at a sale of property conducted pursuant to a power of sale in a deed of trust. However, it is not unlawful for a person, including a trustee, to state that a property subject to a recorded notice of trustee's sale or subject to a sale conducted pursuant to this chapter is being sold in an "as-is" condition or for the beneficiary to arrange to provide financing for a particular bidder.(2) A violation of this section is punishable as a gross misdemeanor according to chapter 9A.20 RCW."Correct the title.,and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Johnson moved that the Senate do concur in the House amendment to Senate Bill No. 5554.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Johnson that the Senate do concur in the House amendment to Senate Bill No. 5554.

      The motion by Senator Johnson carried and the Senate concurred in the House amendment to Senate Bill No. 5554.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5554, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5554, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.                  Excused: Senators Fraser, Loveland, McCaslin, Snyder and Spanel - 5.              SENATE BILL NO. 5554, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


NOTICE FOR RECONSIDERATION


      Having voted on the prevailing side, Senator Heavey served notice that he would move to reconsider the vote by which Senate Bill No. 5554, as amended by the House, passed the Senate.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5563 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that credit unions provide many valuable services to the consumers of this state and will be better prepared to continue providing these services if the Washington state credit union act is modernized, clarified, and reorganized.Furthermore, the legislature finds that credit unions and credit union members will benefit by enacting provisions clearly specifying the director of financial institution's authority to enforce statutory provisions.Revisions to this act reflect the legislature's intent to modernize, clarify, and reorganize the existing act, and specify the director's enforcement authority. By enacting the revisions to this act, it is not the intent of the legislature to affect the scope of credit unions' field of membership or tax status, or impact federal parity provisions.Sec. 2. RCW 31.12.005 and 1994 c 256 s 68 and 1994 c 92 s 175 are each reenacted and amended to read as follows:Unless the context clearly requires otherwise, as used in this chapter:(1) "Board" means the board of directors of a credit union.(2) "Board officer" means an officer of the board elected under RCW 31.12.265(1) (as recodified by this act).(3) "Branch" means any ((office, other than the principal place of business, maintained by a credit union, alone or together with other credit unions, for the purpose of accepting deposits or making loans to its members. "Branch" does not include a facility that is limited to an electronic funds transferring machine or a similar service facility that does not involve the approval of loans.(3) "Credit union" means a credit union organized and operating under this chapter.(4) "Director" means the director of financial institutions.(5) "Employees" means the principal operating officer and other operating personnel of a credit union.(6) "Federal credit union" means a credit union organized and operating under the laws of the United States.(7) "Officers" means the officers of the board of a credit union who are elected under RCW 31.12.265.(8) "Shares" and "deposits" are synonymous and interchangeable. Shares and deposits of a credit union shall be subject to such terms and conditions as established by the board of the credit union.(9) "Supervisory committee" means a committee having the powers and duties set forth in RCW 31.12.326 through 31.12.345. Supervisory committees are the statutory successors of auditing committees.)) physical facility where shares and deposits are taken. The term does not include an automated teller machine or a machine permitting members to communicate with credit union employees who are not located at the site of the machine, unless employees of the credit union at the site of the machine take shares and deposits on a regular basis. A facility is not deemed to be a branch of a credit union, regardless of any affiliation, accommodation arrangement, or other relationship between the organization owning or leasing the facility and the credit union, unless the facility is owned or leased in whole or part, directly or indirectly, by the credit union.(4) "Business loan" means a loan for business, investment, commercial, or agricultural purposes.(5) "Capital" means a credit union's reserves, undivided earnings, and allowances for loan loss.(6) "Consumer loan" means a loan for consumer, family, or household purposes.(7) "Credit union" means a credit union organized and operating under this chapter.(8) "Credit union service organization" means an organization that a credit union has invested in pursuant to RCW 31.12.425(8) (as recodified by this act), or a credit union service organization invested in by an out-of-state credit union or federal credit union.(9) "Director" means the director of financial institutions.(10) "Federal credit union" means a credit union organized and operating under the laws of the United States.(11) "Financial institution" means any commercial bank, trust company, savings bank, or savings and loan association, whether state or federally chartered, and any credit union, out-of-state credit union, or federal credit union.(12) "Foreign credit union" means a credit union organized and operating under the laws of another country or other jurisdiction.(13) "Insolvency" means:(a) If, under generally accepted accounting principles, the recorded value of the credit union's assets are less than its obligations to its share account holders, depositors, creditors, and others; or(b) If it is likely that the credit union will be unable to pay its obligations or meet its share account holders' and depositors' demands in the normal course of business.(14) "Loan" means any loan, overdraft line of credit, extension of credit, or lease, in whole or in part.(15) "Material violation of law" means:(a) If the credit union or person has violated a material provision of:(i) Law;(ii) Any cease and desist order issued by the director;(iii) Any condition imposed in writing by the director in connection with the approval of any application or other request of the credit union; or(iv) Any written agreement entered into with the director;(b) If the credit union or person has concealed any of the credit union's books, papers, records, or assets, or refused to submit the credit union's books, papers, records, or affairs for inspection to any examiner of the state or, as appropriate, to any examiner of the national credit union administration; or(c) If the person has breached his or her fiduciary duty to the credit union.(16) "Membership share" means an initial share required to be purchased in order to establish and maintain membership in a credit union.(17) "Net capital" means a credit union's capital, less the allowance for loan loss.(18) "Operating officer" means an officer of a credit union designated under RCW 31.12.265(2) (as recodified by this act).(19) "Organization" means a corporation, partnership, association, limited liability company, trust, or other organization or entity.(20) "Out-of-state credit union" means a credit union organized and operating under the laws of another state or United States territory.(21) "Person" means an organization or a natural person including, but not limited to, a sole proprietorship.(22) "Principally" or "primarily" means more than one-half.(a)(23) "Unsafe or unsound condition" means, but is not limited to:(a) If the credit union is insolvent;(b) If the credit union has incurred or is likely to incur losses that will deplete all or substantially all of its capital; or(c) If the credit union is in imminent danger of losing its share and deposit insurance or guarantee.(24) "Unsafe or unsound practice" means any action, or lack of action, which is contrary to generally accepted standards of prudent operation, the likely consequences of which, if continued, would be abnormal risk of loss or danger to a credit union, its members, or an organization insuring or guaranteeing its shares and deposits.Sec. 3. RCW 31.12.015 and 1994 c 256 s 69 and 1994 c 92 s 176 are each reenacted and amended to read as follows:A credit union is a cooperative society organized under this chapter as a nonprofit corporation for the purposes of promoting thrift among its members and creating a source of credit for them at fair and reasonable rates of interest.The director is the state's credit union regulatory authority whose purpose is to protect ((the)) members' financial interests, the integrity of credit unions as cooperative institutions, and the interests of the general public, and to ensure that ((state-chartered)) credit unions remain viable and competitive in this state.Sec. 4. RCW 31.12.025 and 1994 c 256 s 70 are each amended to read as follows:(1) A credit union shall include ((in its name)) the words "credit ((union.")) union" in its name.(2) No person((, partnership, association, corporation, or other organization)) may ((transact)) conduct business or engage in any other activity under a name or title containing the words "credit union", or represent itself as a credit union, unless it is:(a) A credit union, out-of-state credit union, or a foreign credit union;(b) An organization ((comprised of corporations organized under state or federal credit union laws)) whose membership or ownership is limited to credit unions, out-of-state credit unions, federal credit unions, or their trade organizations;(c) A ((sole proprietorship, partnership, or corporation)) person that is primarily in the business of managing one or more credit unions, out-of-state credit unions, or federal credit unions; or(d) ((An organization specifically authorized under the laws of this state or under federal law to use the words "credit union" in its name.)) A credit union service organization.Sec. 5. RCW 31.12.035 and 1994 c 92 s 177 are each amended to read as follows:Seven or more natural persons who reside in this state may apply to the director for permission to organize a credit union. ((The director shall approve the application if it is in compliance with this chapter.)) The application must include copies of the proposed articles of incorporation and bylaws, and such other information as may be required by the director. The director shall approve or deny a complete application within sixty days of receipt.Sec. 6. RCW 31.12.055 and 1994 c 256 s 71 and 1994 c 92 s 179 are each reenacted and amended to read as follows:(1) Persons applying for the organization of a credit union shall execute articles of incorporation stating:(a) The initial name and location of the ((proposed)) credit union ((and its location));(b) That the duration of the credit union is perpetual;(c) That the purpose of the credit union is to engage in the business of a credit union and any other lawful activities permitted to a credit union by applicable law((s and rules));(d) The number of its directors, which ((shall)) must not be less than five ((nor)) or greater than fifteen, and the names((, occupations, and addresses)) of the persons who are to serve as the initial directors;(e) The names((, occupations, and addresses)) of the ((subscribers to the articles of incorporation, and a statement of the number of shares which each has agreed to take)) incorporators;(f) The initial par value, if any, of the shares of the credit union;(g) ((Any provision the applicants elect to so set forth which is permitted by RCW 23B.17.030; and)) The extent, if any, to which personal liability of directors is limited;(h) The extent, if any, to which directors, supervisory committee members, officers, employees, and others will be indemnified by the credit union; and(i) Any other provision ((the applicants elect to so set forth)) which is not inconsistent with this chapter.(2) Applicants shall submit the articles of incorporation in triplicate to the director.Sec. 7. RCW 31.12.065 and 1994 c 256 s 72 and 1994 c 92 s 180 are each reenacted and amended to read as follows:(1) Persons applying for the organization of a credit union shall adopt bylaws that ((are consistent with this chapter and that)) prescribe the manner in which the business of the credit union shall be conducted. The bylaws shall include:(a) The name of the credit union;(b) The ((purposes)) field of membership of the credit union;(c) ((The)) Reasonable qualifications for membership in the credit union, including, but not limited to, the minimum number of shares, and the payment of a membership fee, if any, required for membership ((status)), and the ((standards and)) procedures for expelling a member ((who has failed to maintain the minimum number of shares));(d) The number of directors and supervisory committee members, and the length of terms they serve and the permissible term length of any interim director or supervisory committee member;(e) Any qualification for eligibility to serve on the credit union's board, or supervisory committee;(f) The number of credit union employees that may serve on the board, if any;(g) The frequency of regular meetings of the board and the supervisory committee, and the manner in which members of the board or supervisory committee are to be notified of meetings;(((f))) (h) The powers and duties of ((the)) board officers ((elected by the board));(((g))) (i) The timing of the annual membership meeting ((and));(j) The manner in which members may call a special membership meeting;(k) The manner in which members are to be notified of membership meetings((, including special membership meetings));(((h))) (l) The number of members constituting a quorum at a membership meeting; ((and(i) Other matters considered appropriate by the applicants to be included in the bylaws))(m) Provisions, if any, for the indemnification of directors, supervisory committee members, officers, employees, and others by the credit union, if not included in the articles of incorporation; and(n) Any other provision which is not inconsistent with this chapter.(2) Applicants shall submit the bylaws in duplicate to the director((, if requested)).Sec. 8. RCW 31.12.075 and 1994 c 92 s 181 are each amended to read as follows:(1) When the proposed articles of incorporation and bylaws complying with the requirements of RCW 31.12.055 and 31.12.065 (as recodified by this act) have been filed with the director, the director shall:(a) Determine whether the articles of incorporation and bylaws are consistent with ((the purposes and requirements of)) this chapter; and(b) Determine the feasibility of the credit union, taking into account surrounding facts and circumstances ((pertaining to a)) influencing the successful operation of ((a)) the credit union.((The director may establish by rule, as a prerequisite to approval of a proposed credit union, specific criteria consistent with the purposes and policies of this chapter.))(2) If the director is satisfied with the determinations made under subsection (1)(a) and (b) of this section, the director shall endorse each of the articles of incorporation "approved" ((and)), indicate the date the approval ((is)) was granted, and return two sets of articles and one set of bylaws to the applicants.(3) If the director is not satisfied with the determinations made under subsection (1)(a) and (b) of this section, the director shall endorse each of the articles of incorporation "((refused)) denied," indicate the date of, and reasons for, the ((refusal)) denial, and return two copies of the articles of incorporation with one copy of the bylaws to the person from whom they were received. The director shall at the time of returning the copies of the articles of incorporation and bylaws, also provide notice to the applicant of the applicant's right to appeal the ((refusal)) denial under chapter 34.05 RCW. The ((refusal)) denial is conclusive unless the applicant requests a hearing under chapter 34.05 RCW.(((4) The director shall accept or refuse the articles of incorporation within sixty days of receipt.))Sec. 9. RCW 31.12.085 and 1994 c 92 s 182 are each amended to read as follows:(1) Upon ((the)) approval ((of the director)) under RCW 31.12.075(2) (as recodified by this act), the ((applicants)) director shall ((file)) deliver a copy of the articles of incorporation ((with)) to the secretary of state for filing. Upon receipt of the approved articles of incorporation and a twenty dollar filing fee ((to be)) provided by the applicants, the secretary of state shall file ((and record)) the articles of incorporation. ((The applicants shall in writing promptly notify the director of the exact date of the filing.))(2) Upon ((the)) filing ((and recording of)) the approved articles of incorporation ((with)) by the secretary of state, the persons named in the articles of incorporation and their successors may ((operate)) conduct business as a credit union, ((which shall have)) having the powers ((and be subject to the)), duties, and obligations ((of)) set forth in this chapter. A credit union ((shall)) may not conduct business until the articles have been ((recorded)) filed by the secretary of state.(3) A credit union shall organize and begin conducting business within six months of the date that its articles of incorporation are filed ((and recorded with)) by the secretary of state or its charter ((shall become)) is void((, unless)). However, the director ((for cause)) may grant((s)) an extension of the six-month period. The director ((shall)) may not grant a single extension exceeding three months, but may grant as many extensions to a credit union as circumstances require.Sec. 10. RCW 31.12.105 and 1994 c 92 s 184 are each amended to read as follows:((The)) A credit union's articles of incorporation ((of a credit union)) may be amended((,)) by the board with the approval of the director((, by a resolution of the board. Amendments to the articles of incorporation shall be filed with the director and)). Complete applications for amendments to the articles must be approved or denied by the director within sixty days of receipt. Upon approval, the director shall promptly deliver the amendments, including any necessary filing fees paid by the applicant, to the secretary of state for filing. Amendments to a credit union's articles of incorporation must conform with RCW 31.12.055 (as recodified by this act).Sec. 11. RCW 31.12.115 and 1994 c 256 s 73 and 1994 c 92 s 185 are each reenacted and amended to read as follows:((Except to the extent approval of the director may be required by rule, the bylaws of)) (1) A credit ((union)) union's field of membership bylaws may be amended by the board ((of directors at any regular meeting or at a special meeting called for that purpose. An amendment of the bylaws requires the affirmative vote of two-thirds of the total members of the board. At least seven days before a meeting at which an amendment to the bylaws is to be voted upon, a copy of the proposed amendment, together with a written notice of the meeting as provided in the bylaws, shall be served upon each member of the board either personally or by mail to the director's last known post office address)) with approval of the director. All complete applications to amend a credit union's field of membership bylaws must be approved or denied by the director within sixty days of receipt.(2) Bylaw amendments, other than those requiring the approval of the director under subsection (1) of this section, may be approved at any regular board meeting, or any special board meeting called for the purpose of amending the credit union's bylaws.(3) Amendments to a credit union's bylaws must conform with RCW 31.12.065 (as recodified by this act).Sec. 12. RCW 31.12.185 and 1987 c 338 s 2 are each amended to read as follows:(1) ((The regular)) A credit union's annual membership meeting ((of a credit union)) shall be held ((annually,)) at such time and place as the bylaws prescribe, and shall be conducted according to the ((customary)) rules of ((parliamentary)) procedure approved by the board.(2) Notice of ((regular)) the annual membership meetings of a credit union shall be given as provided in the bylaws of the credit union.(((3) No member may have more than one vote regardless of the number of shares held by the member. A fraternal organization, voluntary association, partnership, or corporation having a membership in a credit union may cast one vote by its authorized agent, who shall be an officer of the organization, association, partnership, or corporation. Voting by mail ballot may be authorized by the board as prescribed in the bylaws.))Sec. 13. RCW 31.12.195 and 1994 c 256 s 77 and 1994 c 92 s 188 are each reenacted and amended to read as follows:(1) A special membership meeting of a credit union may be called by a majority of the board, a majority vote of the supervisory committee, or upon written application of at least ten percent or two thousand((, whichever is less, of the voting)) of the members of a credit union, whichever is less.(2) A request for a special membership meeting of a credit union shall be in writing and shall state specifically the purpose or purposes for which the meeting is called. At this meeting, only those agenda items detailed in the written request may be considered. If the special membership meeting is being called for the removal of ((a)) one or more directors, the ((notice)) request shall state the name of the director or directors whose removal is sought.(((2))) (3) Upon receipt of a request for a special membership meeting, the secretary of the credit union shall designate the time and place at which the special membership meeting will be held. The designated place of the meeting ((shall)) must be a reasonable location within the county in which the principal ((office)) place of business of the credit union is located, unless provided otherwise by the bylaws. The designated time of the membership meeting ((shall)) must be no sooner than twenty ((nor)), and no later than thirty days after the request is received by the secretary.The secretary shall give notice of the meeting within ten days of receipt of the request ((give notice of the meeting, including)) or within such other reasonable time period as may be provided by the bylaws. The notice must include the purpose or purposes for which the meeting is called, as provided in the bylaws. ((A wilful violation of this section constitutes a violation of this chapter and constitutes grounds sufficient for the suspension and removal of the secretary under RCW 31.12.575.)) If the special membership meeting is being called for the removal of one or more directors, the notice must state the name of the director or directors whose removal is sought.(((3))) (4) Except as provided in this subsection, the ((chairman or president)) chairperson of the board shall preside over special membership meetings. If the purpose of the special meeting includes the proposed removal of the ((chairman or president from the board)) chairperson, the next highest ranking board officer ((of the board)) whose removal is not sought shall preside over the special meeting. If the removal of all ((of the)) board officers ((of the board)) is sought, the ((chairman)) chairperson of the supervisory committee shall preside over the special meeting. ((After every special meeting, the chairman of the supervisory committee shall report to the director the results of the special meeting and whether the special meeting was conducted in a fair manner in accordance with the bylaws of the credit union and with customary rules of parliamentary procedure.))(5) Special membership meetings shall be conducted according to the rules of procedure approved by the board.Sec. 14. RCW 31.12.225 and 1984 c 31 s 24 are each amended to read as follows:(1) The business and affairs of a credit union shall be managed by a board of not less than five ((nor)) and not greater than fifteen directors.(2) The directors ((shall)) must be elected at the credit union's annual membership meeting((s)). ((The directors, as well as the principal operating officer and committee members of the credit union, shall be sworn to the faithful performance of their duties. The directors)) They shall hold their offices((, unless sooner removed as provided in this chapter,)) until their successors are qualified ((under RCW 31.12.235)) and elected or appointed.(3) Directors shall be elected to terms of between one and three years, as provided in the bylaws. If the terms are longer than one year, the ((terms shall)) directors must be divided into classes, and an equal number of ((terms)) directors, as near as possible, ((shall)) must be elected each year.(4) Any vacancies on the board must be filled by interim directors appointed by the board, unless the interim director would serve a term of fewer than ninety days. Interim directors will serve out the unexpired term of the former director, unless provided otherwise in the credit union's bylaws.(5) The board will meet as often as necessary, but not less frequently than once each month.Sec. 15. RCW 31.12.235 and 1994 c 256 s 78 are each amended to read as follows:(1) A director ((shall be)) must be a natural person and a member of the credit union. If a director ceases to be a member of the credit union, the director shall no longer serve as a director.(2) Unless reasonably excused by the board, a director shall no longer serve as a director if the director is absent from more than thirty-three percent of the regular board meetings in any twelve-month period ((is absent from more than thirty-three percent of the regular board meetings required by this chapter)).(3) ((The remainder of the term of a director's office that becomes vacant under subsection (1) or (2) of this section shall be served by an interim director appointed by the board.)) A director must meet any qualification requirements set forth in the credit union's bylaws. If a director fails to meet these requirements, the director shall no longer serve as a director.(4) The officers and employees of the credit union may serve as directors of the credit union, but only as permitted by the credit union's bylaws.Sec. 16. RCW 31.12.246 and 1984 c 31 s 26 are each amended to read as follows:The members of a credit union may remove a director of the credit union at a special membership meeting held in accordance with RCW 31.12.195 (as recodified by this act) and called for that purpose. If the members remove a director, the members may at the same special membership meeting elect an interim director to complete the remainder of the former director's term of office or ((may elect to)) authorize the board to appoint an interim director as provided in RCW ((31.12.235)) 31.12.225 (as recodified by this act).Sec. 17. RCW 31.12.255 and 1994 c 256 s 79 are each amended to read as follows:((The board shall have the general direction of the affairs of the credit union. The board shall meet as often as necessary, but not less than once each month.)) The business and affairs of a credit union shall be managed by the board of the credit union. The duties of the board include, but are not limited to, the duties enumerated in this section. The duties listed in subsection (1) of this section may not be delegated by the credit union's board of directors. The duties listed in subsection (2) of this section may be delegated to a committee, officer, or employee, with appropriate reporting to the board.(1) The board shall:(((1) Act upon applications for membership with the credit union;(2) Expel members for cause as provided in this chapter;(3) Borrow and invest money on behalf of the credit union as provided by this chapter;(4) Determine the maximum amount of shares and deposits that a member may hold in the credit union;(5) Declare dividends on shares and set the rate of interest on deposits;(6) Determine the amount which may be loaned to a member and the finance charges, including interest, to be charged on the loans;(7) Prescribe the conditions and terms under which a loan officer or credit committee may approve loans;(8) Set the minimum number of shares, if any, required for active member status;(9) Fill vacancies on all committees except the supervisory committee;(10) Set the par value of shares, if any, of the credit union;(11) Set the fees, if any, to be charged by the credit union to its members for the right to be a member of the credit union and for services rendered by the credit union;(12) Approve the charge-off of credit union losses; or(13) Perform such other acts as are required by this chapter. The board may authorize a committee, officer, or employee to take the actions referenced in subsections (1), (3), (5), and (6) of this section.))(a) Set the par value of shares, if any, of the credit union;(b) Set the minimum number of shares, if any, required for membership;(c) Establish the loan policies under which loans may be approved, including policies on any automated loan approval programs;(d) Establish the conditions under which a member may be expelled for cause;(e) Fill vacancies on all committees except the supervisory committee;(f) Approve an annual operating budget or financial plan for the credit union;(g) Designate those persons or positions authorized to execute or certify documents or records on behalf of the credit union;(h) Review the supervisory committee's annual report; and(i) Perform such other duties as the members may direct.(2) In addition, the board shall:(a) Act upon applications for membership in the credit union;(b) Determine the maximum amount of shares and deposits that a member may hold in the credit union;(c) Declare dividends on shares and set the rate of interest on deposits;(d) Set the fees, if any, to be charged by the credit union to its members for the right to be a member of the credit union and for services rendered by the credit union;(e) Determine the amount which may be loaned to a member together with the terms and conditions of loans;(f) Establish policies under which the credit union may borrow and invest; and(g) Approve the charge-off of credit union losses.Sec. 18. RCW 31.12.265 and 1994 c 256 s 80 are each amended to read as follows:(1) The board at its first meeting after the annual membership meeting ((of the members)) shall elect ((a chairman or president, and one or more vice chairmen or vice presidents, a secretary, a treasurer, and other officers that may be)) board officers from among its members, as provided in the credit union's bylaws. The board will elect as many board officers as it deems necessary for transacting the business of the board of the credit union. The board officers ((of the board of the credit union)) shall hold office until their successors are qualified and elected ((and qualified)), unless sooner removed as provided ((by)) in this chapter. ((The offices of secretary and treasurer may be held by the same person.)) All board officers ((of the board of a credit union shall)) must be elected members of the board. However, the office of board treasurer and ((the)) board secretary may be held by the same person and need not be elected members of the board. ((The board may designate such employees, including a principal operating officer who shall not share the title chosen for the chairman or president of the board and who need not be a member of the board, as are necessary for the operation of the credit union.))(2) The board may designate as many operating officers as it deems necessary for conducting the business of the credit union, including, but not limited to, a principal operating officer. Individuals serving as operating officers may also serve as board officers in accordance with subsection (1) of this section and subject to RCW 31.12.235(4) (as recodified by this act).NEW SECTION. Sec. 19. A new section is added to chapter 31.12 RCW to read as follows:Directors and board officers are deemed to stand in a fiduciary relationship to the credit union, and must discharge the duties of their respective positions:(1) In good faith;(2) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and(3) In a manner the director or board officer reasonably believes to be in the best interests of the credit union.Sec. 20. RCW 31.12.275 and 1984 c 31 s 29 are each amended to read as follows:The board may, for cause, remove ((an)) a board officer from office or a committee member from a committee, other than the supervisory committee. For the purpose of this section "cause" includes demonstrated financial irresponsibility, a breach of fiduciary duty to the credit union, or activities which, in the judgment of the board, are detrimental to the credit union.Sec. 21. RCW 31.12.285 and 1984 c 31 s 30 are each amended to read as follows:The board may((, by a two-thirds vote,)) suspend for cause a member of the board or a member of the supervisory committee until a membership meeting is held. The membership meeting ((shall)) must be held within thirty days after the suspension. The members attending ((that)) the meeting shall vote whether to remove ((the)) a suspended party. For purposes of this section, "cause" includes demonstrated financial irresponsibility, a breach of fiduciary duty to the credit union, or activities which, in the judgment of the board, threaten the safety and soundness of the credit union.Sec. 22. RCW 31.12.326 and 1984 c 31 s 34 are each amended to read as follows:(1) A supervisory committee of at least three members ((shall)) must be elected at the annual membership meeting of the credit union. ((A member)) Members of the supervisory committee shall serve a term of three years, unless sooner removed under this chapter or until ((a)) their successors ((commences the performance of the member's duties)) are qualified and elected or appointed. The members of the supervisory committee shall be divided into classes so that as equal a number as is possible is elected each year.(2) If a member of the supervisory committee ceases to be a member of the credit union, the member's office ((shall)) becomes vacant. ((The supervisory committee shall fill vacancies in its membership until successors are elected, except that)) Any vacancy on the committee must be filled by an interim member appointed by the committee, unless the interim member would serve a term of fewer than ninety days. Interim members may serve out the unexpired term of the former member, unless provided otherwise by the credit union's bylaws. However, if all positions on the committee are vacant at the same time, the board may ((fill the vacancies)) appoint interim members to serve until the next annual membership meeting.(3) No operating officer or employee of a credit union may serve on the credit union's supervisory committee ((of that credit union)). No more than one director may be a member of the supervisory committee at the same time, unless provided otherwise by the credit union's bylaws. No member of the supervisory committee may serve on the credit committee or investment committee of the credit union while serving on the supervisory committee.Sec. 23. RCW 31.12.335 and 1994 c 256 s 82 and 1994 c 92 s 192 are each reenacted and amended to read as follows:The supervisory committee of a credit union shall:(1) Meet as often as necessary and at least quarterly;(2) Keep fully informed as to the financial condition of the credit union and the decisions of the credit union's board;(3) ((Cause to be made)) Annually perform or arrange for a complete ((examination)) audit of ((the)) internal controls, loans, investments, cash, ((the credit union)) general ledger accounts, including, but not limited to, income and expense, and the members' share and deposit accounts ((in accordance with rules adopted by the director)); and(4) Report its findings and recommendations to the board and make an annual report to ((the)) members at ((the)) each annual membership meeting.At least one supervisory committee member may attend each regular board meeting.Sec. 24. RCW 31.12.345 and 1984 c 31 s 36 are each amended to read as follows:(1) The supervisory committee may, by unanimous vote ((the supervisory committee of a credit union may suspend for cause an officer of the credit union)), for cause, suspend a member of ((a committee)) the board, ((or a member of the board)) until a membership meeting is held. The membership meeting ((shall)) must be held within thirty days after the suspension. The members attending that meeting shall vote whether to remove the suspended party or parties. The supervisory committee may, by unanimous vote, for cause, suspend members of other committees until a membership meeting is held. The meeting must be held within thirty days after the suspension. The members attending that meeting shall vote whether to remove the suspended party or parties.(2) For purposes of this section, "cause" includes demonstrated financial irresponsibility, a breach of fiduciary duty to the credit union, or activities which, in the judgment of the supervisory committee, threaten the safety and soundness of the credit union.Sec. 25. RCW 31.12.365 and 1984 c 31 s 38 are each amended to read as follows:(1) Directors and members of committees shall not receive compensation for their service((s, except to the extent that an officer serving as principal operating officer may receive compensation)) as directors and committee members. However, this subsection does not prohibit directors or committee members from receiving incidental services available to employees generally, and gifts of minimal value.(2) Directors and members of committees may receive reimbursement for reasonable expenses incurred ((in the performance of their duties.)) on behalf of themselves and their spouses in the performance of the directors' and committee members' duties.(3) Loans to directors and committee members ((shall)) may not be made under ((no)) more favorable terms and conditions ((and terms)) than those ((under which loans to general)) made to members ((are made)) generally.Sec. 26. RCW 31.12.306 and 1994 c 92 s 191 are each amended to read as follows:(1) Each director, officer, committee member, and employee of a credit union ((shall)) must be bonded in an amount and ((with surety and)) in accordance with conditions established by the director.(2) When the bond coverage under subsection (1) of this section is suspended or terminated, the board of the affected credit union shall notify the director in writing within five days of ((having received)) receipt of the notice of ((the)) suspension or termination.Sec. 27. RCW 31.12.145 and 1984 c 31 s 16 are each amended to read as follows:(1) A credit union may admit to membership those persons qualified for membership as set forth in its bylaws ((upon the payment of a membership fee, if any, or the purchase of one or more shares, as provided in the bylaws)). ((A fraternal))(2) An organization((, partnership, or corporation having a usual place of business in this state and)) whose membership, ownership, or employees are comprised principally of persons who are eligible for membership in the credit union may become a member of the credit union.Sec. 28. RCW 31.12.155 and 1994 c 256 s 76 are each amended to read as follows: ((A minor under age eighteen does not have the right to vote as a member.)) (1) No member may have more than one vote regardless of the number of shares held by the member. An organization having membership in a credit union may cast one vote through its agent duly authorized in writing.(2) Members may vote, as prescribed in the credit union's bylaws, by mail ballot, absentee ballot, or other method. However, no member may vote by proxy.(3) A member who is not at least eighteen years of age is not eligible to vote as a member unless otherwise provided in the credit union's bylaws.Sec. 29. RCW 31.12.295 and 1984 c 31 s 31 are each amended to read as follows:(1) ((The board may, by a two-thirds vote, expel a member for cause. The board shall notify the member)) Members expelled from the credit union will be notified of the expulsion and the reasons upon which it is based. The ((board shall)) credit union will, upon request of the expelled member, allow the member to challenge the expulsion and seek reinstatement as a member.(2) The amounts ((paid)) in ((on shares or deposited by a member who has been expelled shall)) an expelled member's share and deposit accounts must be promptly paid to the ((member)) person following expulsion, and after deducting amounts due from the member(s) to the credit union, including, but not limited to, any applicable penalties for early withdrawal. Expulsion ((shall)) will not operate to relieve ((a member)) the person from outstanding liabilities owed to the credit union.Sec. 30. RCW 31.12.125 and 1994 c 256 s 74 and 1994 c 92 s 186 are each reenacted and amended to read as follows:A credit union may:(1) Issue shares to and receive deposits from its members ((as provided in this chapter)) in accordance with RCW 31.12.385 (as recodified by this act);(2) Make loans to its members ((as provided in this chapter)) in accordance with RCW 31.12.317 and 31.12.406 (as recodified by this act);(3) Pay dividends or interest to its members in accordance with RCW 31.12.485 (as recodified by this act);(4) Impose reasonable charges for the services it provides to its members;(5) Impose financing charges and reasonable late charges in the event of default on loans, subject to applicable law, and recover reasonable costs and expenses, including, but not limited to, collection costs, and reasonable attorneys' fees incurred both before and after judgment, incurred in the collection of sums due ((it)), if provided for in the note or agreement signed by the borrower;(6) Acquire, lease, hold, assign, pledge, ((hypothecate,)) sell, or otherwise dispose of ((a possessory)) interests in personal property and((, subject to RCW 31.12.435,)) in real property((, so long as the property is necessary or incidental to the operation of the credit union)) in accordance with RCW 31.12.435 (as recodified by this act);(7) Deposit and invest funds ((in excess of the amount approved for loans to members as provided in this chapter)) in accordance with RCW 31.12.425 (as recodified by this act);(8) Borrow money, up to a maximum of fifty percent of its ((paid-in and unimpaired)) total shares, deposits, and net capital ((and surplus));(9) Discount or sell any of its assets, or purchase any or all of the assets of another credit union, out-of-state credit union, or federal credit union. However, a credit union may not discount or sell ((more than ten percent)) all, or substantially all, of its assets without the ((prior written)) approval of the director;(10) Accept deposits of deferred compensation of its members ((under the terms and conditions of RCW 28A.400.240 and 41.04.250(2)));(11) Act as fiscal agent for and receive payments on shares and deposits from the federal government or this state, and any agency or political subdivision thereof;(12) Engage in activities and programs as requested by the federal government, this state, and any agency or political subdivision thereof, when the activities or programs are not inconsistent with this chapter;(13) Hold membership in ((other)) credit unions ((organized under this chapter or other laws)), out-of-state credit unions, or federal credit unions and in ((associations)) organizations controlled by or fostering the interests of credit unions, including, but not limited to, a central liquidity facility organized under state or federal law; ((and))(14) Pay additional dividends or interest to members, or an interest rate refund to borrowers;(15) Enter into lease agreements, lease contracts, and lease-purchase agreements with members;(16) Procure for, or sell to its members group life, accident, health, and credit life and disability insurance;(17) Impose a reasonable service charge for the administration and processing of accounts that remain dormant for a period of time specified by the board;(18) Establish and operate on-premises or off-premises electronic facilities;(19) Enter into formal or informal agreements with another credit union for the purpose of fostering the development of the other credit union;(20) Work with community leaders to develop and prioritize efforts to improve the areas where their members reside by making investments in the community through contributions to organizations that primarily serve either a charitable, social, welfare, or educational purpose, or are exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code;(21) Limit the personal liability of its directors in accordance with provisions of its articles of incorporation that conform with RCW 23B.08.320;(22) Indemnify its directors, supervisory committee members, officers, employees, and others in accordance with provisions of its articles of incorporation or bylaws that conform with RCW 23B.08.500 through 23B.08.600; and(23) Exercise such incidental powers as are necessary or ((requisite)) convenient to enable it to ((carry on effectively)) conduct the business ((for which it is incorporated)) of a credit union.Sec. 31. RCW 31.12.136 and 1994 c 256 s 75 and 1994 c 92 s 187 are each reenacted and amended to read as follows:(1) Notwithstanding any other provision of law, a credit union may exercise any of the powers and authorities conferred as of December 31, 1993, upon ((a)) federal credit unions ((doing business in this state)).(2) Notwithstanding any other provision of law, and in addition to the powers and authorities conferred under subsection (1) of this section, the director may, by rule, authorize credit unions to exercise any of the powers and authorities conferred at the time of the adoption of the rule upon ((a)) federal credit unions ((doing business in this state)), if the director finds that the exercise of the power and authority serves the convenience and advantage of ((depositors and borrowers)) members of ((state-chartered)) credit unions, and maintains the fairness of competition and parity between ((state-chartered)) credit unions and federal((-chartered)) credit unions.(3) The restrictions, limitations, and requirements applicable to specific powers or authorities of federal credit unions ((shall)) apply to credit unions exercising those powers or authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to ((exercising)) the specific exercise of the powers or authorities granted credit unions solely under this section.(4) As used in this section, "powers and authorities" include without limitation, powers and authorities in corporate governance matters.Sec. 32. RCW 31.12.385 and 1994 c 256 s 83 and 1994 c 92 s 194 are each reenacted and amended to read as follows:(1) Shares ((purchased)) held and deposits made in a credit union by ((an individual)) a natural person are governed by chapter 30.22 RCW. ((A member may purchase shares and make deposits in a credit union in an amount that does not exceed such amounts as may be established by the board from time to time.))(2) A credit union may require ((from a member)) ninety days notice of ((the)) a member's intention to withdraw shares or deposits. The notice requirement may be extended with the written consent of the director.(3) A credit union will have a lien on all shares and deposits, including, but not limited to, dividends, interest, and any other earnings and accumulations thereon, of any share account holder or depositor, to the extent of any obligation owed to the credit union by the share account holder or depositor.Sec. 33. RCW 31.12.485 and 1984 c 31 s 50 are each amended to read as follows:(((1) At each annual, semiannual, quarterly, or monthly period the board may declare a dividend from net earnings. The dividends shall be paid on all eligible shares outstanding at the time of declaration and may be paid to members on shares withdrawn during the period. Shares which became paid-up during the dividend period shall be entitled only to a proportional part of the dividend in accordance with a formula adopted by the board.(2))) Dividends may be declared from the credit union's earnings which remain after the deduction of expenses, interest on deposits, and the amounts required for ((regular, liquidity, and special)) reserves, or the dividends may be declared in whole or in part from the undivided earnings that remain from preceding periods.(((3) A member shall be given the option to receive declared dividends either by cash payment or by a credit to the member's account in either shares or deposits.))Sec. 34. RCW 31.12.406 and 1994 c 256 s 84 and 1994 c 92 s 195 are each reenacted and amended to read as follows:(1) A credit union may make secured and unsecured loans to its members ((with the approval of a credit committee or loan officer)) under policies established by the board, subject to the loans to one borrower limits provided for in RCW 31.12.317 (as recodified by this act). ((All loans shall be documented in writing. Loans may be made for (a) consumer, family, or household purposes, referred to in this section as "consumer loans", or (b) business, investment, commercial, or agricultural purposes which are)) Each loan must be evidenced by records adequate to support enforcement or collection of the loan and review of the loan by the director. Business loans must be in compliance with rules adopted by the director.(2) ((A credit union may make to members:(a) Loans secured by the note of the member or other adequate security, including, but not limited to, equity interests in real estate, automobiles, boats, motorhomes, and travel trailers;(b) Student loans under student loan programs of this state or the United States;(c) Loans for the acquisition of a modular home or mobile home as defined by RCW 82.50.010, secured by a security interest in that modular home or mobile home, owned by the member. A loan under this subsection and any prior indebtedness secured by the home shall not exceed eighty-five percent of the purchase price or of the appraised value of the modular home or mobile home, whichever is less;(d) Residential real estate loans under RCW 31.12.415;(e) Loans to its members under an act of congress known as the "FHA Title I, National Housing Act of 1934," June 27, 1934 (12 U.S.C. Sec. 1701 to 1750, inc.); and(f) Loans to credit union members in participation with other credit unions, credit union organizations, or financial organizations. The credit union which originates a loan under this subsection shall retain an interest of at least ten percent of the face amount of the loan unless the loan is a real estate loan in which case there is no retention requirement.)) A credit union may obligate itself to purchase loans in accordance with RCW 31.12.425(1) (as recodified by this act), if the credit union's underwriting policies would have permitted it to originate the loans.(3) Consumer loans ((shall)) must be given preference, and in the event there are not sufficient funds available to satisfy all approved consumer loan ((applicants)) applications, further preference ((shall)) must be given to small loans.(((4) The director may by rule establish guidelines addressing the issue of unsafe and unsound concentrations of credit and such other related safety and soundness issues.))Sec. 35. RCW 31.12.317 and 1994 c 256 s 92 are each amended to read as follows:(1) No loan may be made to any ((member)) borrower if ((such)) the loan would cause ((that member)) the borrower to be indebted to the credit union upon consumer and business loans ((made to the member)) in an aggregated amount exceeding ten thousand dollars or ((two and one-half)) twenty-five percent of the ((assets)) capital of the credit union, whichever is greater, without the approval of the director.(2) The director by rule may establish limits on business loans ((for business, investment, commercial, or agricultural purposes)) to one ((member)) borrower.Sec. 36. RCW 31.12.425 and 1994 c 256 s 86 and 1994 c 92 s 197 are each reenacted and amended to read as follows:(((1) The capital or surplus funds in excess of the amount for which loans are approved may be deposited or invested in any of the following ways, so long as the investment has not been in default as to principal or interest within five years prior to the date of purchase)) A credit union may invest its funds in excess of loans in any of the following, as long as they are deemed prudent by the board:(((a) Accounts in banks or trust companies, including national banks located in this state, or other states, the accounts of which are insured by the federal deposit insurance corporation. The deposits made by a credit union under this subsection may exceed the insurance limits established by the federal deposit insurance corporation;(b))) (1) Loans held by credit unions, out-of-state credit unions, or federal credit unions; loans to members held by other lenders; and loans to nonmembers held by other lenders, with the approval of the director;(2) Bonds, securities, or other investments that are fully guaranteed as to principal and interest by the United States government, and general obligations of this state and its political subdivisions;(((c))) (3) Obligations issued by corporations designated under ((Section 9101 of Title)) 31 U.S.C. Sec. 9101, or obligations, participations or other instruments issued and guaranteed by the federal national mortgage association, federal home loan mortgage corporation, government national mortgage association, or other government-sponsored enterprise;(((d))) (4) Participations or obligations which have been subjected by one or more government agencies to a trust or trusts for which an executive department, agency, or instrumentality of the United States has been named to act as trustee;(((e))) (5) Share((s, share certificates,)) or ((share)) deposit((s)) accounts of other ((credit unions or savings and loan associations organized or authorized to do business under the laws of this state, other states, or the United States)) financial institutions, the accounts of which are federally insured or insured or guaranteed by ((the federal savings and loan insurance corporation, the national credit union administration, the Washington credit union share guaranty association, or)) another insurer or guarantor approved by the director. The shares and deposits made by a credit union under this subsection may exceed the insurance or guarantee limits established by the organization insuring or guaranteeing the institution into which the shares or deposits are made;(((f))) (6) Common trust or mutual funds whose investment portfolios consist of securities issued or guaranteed by the federal government or an agency of the government;(((g))) (7) Up to ((two)) five percent of ((a corporation)) the capital of the credit union, in debt or equity issued by an organization owned by the Washington credit union league;(((h))) (8) Shares, stocks, loans, or other obligations of an organization ((of which the membership or ownership is confined primarily to credit unions and the)) whose primary purpose ((of which)) is to strengthen, advance, or provide services to the credit union industry and credit union members. Other than investment in an organization that is wholly owned by the credit union and whose activities are limited exclusively to those ((determined by the director to be)) authorized by RCW 31.12.125 (((2) through (9) and (12) through (14))) (as recodified by this act), an investment under this subsection (((1)(h) of this section)) shall be limited to one percent of the ((total paid-in and unimpaired capital and surplus)) assets of the credit union, but a credit union may, in addition to the investment, lend to the organization an amount not exceeding an additional one percent of the ((total paid-in and unimpaired capital and surplus)) assets of the credit union;(((i))) (9) Loans to ((other)) credit unions ((organized or authorized to do business under the laws of this state, other states, or the United States)), out-of-state credit unions, or federal credit unions. The aggregate of loans issued under this subsection ((shall be)) is limited to twenty-five percent of the ((paid-in and unimpaired capital)) total shares and deposits of the lending credit union; ((or(j))) (10) Key person insurance policies, the proceeds of which inure exclusively to the benefit of the credit union; or(11) Other investments ((authorized in accordance with rules adopted)) approved by the director ((consistent with this chapter)) upon written application.(((2) The board may appoint an investment committee to make and manage the investments under this section. An investment committee shall remain subject to the supervision of the board.))Sec. 37. RCW 31.12.435 and 1994 c 256 s 87 and 1994 c 92 s 198 are each reenacted and amended to read as follows:(1) ((Unless otherwise approved by the director,)) A credit union may invest ((a reasonable amount of its funds)) in real property or leasehold interests primarily for its own use in conducting business, including, but not limited to, structures and fixtures attached to real property, subject to the following limitations:(a) ((The aggregate of its regular reserve and its undivided earnings equals)) The credit union's net capital equals at least five percent of the total of its share and deposit accounts;(b) The board approves the investment ((in real property for its own use in conducting business by a two-thirds majority vote of the total number of directors)); and(c) The ((total)) aggregate of all such investments ((in the property)) does not exceed seven and one-half percent of the ((aggregate)) total of its share and deposit accounts.(2) If the real property or leasehold interest is acquired for future expansion, the credit union must satisfy the use requirement in subsection (1) of this section within three years after the credit union makes the investment.(3) The director may, upon written application, waive any of the limitations listed in subsection (1) or (2) of this section.Sec. 38. RCW 31.12.445 and 1994 c 92 s 199 are each amended to read as follows:This section applies to all nonfederally insured credit unions.(1) At the end of each accounting period and before the payment of dividends to members, a credit union shall set apart as a regular reserve an amount in accordance with subsection (2) of this section.(2)(a) If a credit union has been in operation for four or more years and has assets of at least five hundred thousand dollars, it shall reserve ten percent of gross income until the regular reserve together with the allowance for loan loss equals four percent of outstanding loans and then shall reserve five percent of gross income until the regular reserve together with the allowance for loan loss equals six percent of outstanding loans.(b) If a credit union has been in operation for less than four years or has assets of less than five hundred thousand dollars, it shall reserve ten percent of gross income until the regular reserve together with the allowance for loan loss equals seven and one-half percent of outstanding loans and then shall reserve five percent of gross income until the regular reserve together with the allowance for loan loss equals ten percent of outstanding loans.(c) The director may authorize a credit union falling under subsection (2)(b) of this section to follow the reserving requirements for credit unions falling under subsection (2)(a) of this section.(d) In computing outstanding loans for purposes of reserving, a credit union may exclude loans secured by shares and loans insured or guaranteed by the federal government or the government of this state to the extent of the security, insurance, or guarantee.(3) When the regular reserve falls below the percentage of outstanding loans required under subsection (2) of this section, a credit union shall replenish the regular reserve by again reserving a portion of gross income as set forth in subsection (2) of this section.(4) The regular reserve and the investment((s)) thereof ((shall)) must be held to meet contingencies or losses in the business of the credit union and ((shall)) may not be distributed to its members except in the case of ((dissolution)) liquidation or with the permission of the director.Sec. 39. RCW 31.12.465 and 1994 c 92 s 201 are each amended to read as follows:(1) The director may((, if deemed necessary,)) require a credit union to establish a liquidity reserve of up to five percent of ((unimpaired capital)) total shares, deposits, and capital. The liquidity reserve ((shall)) must be in cash or investments with maturities of one year or less.(2) The director may require a credit union to charge off or set up a special reserve fund for delinquent loans or other assets.Sec. 40. RCW 31.12.695 and 1994 c 256 s 91 and 1994 c 92 s 220 are each reenacted and amended to read as follows:(1) For purposes of this section, the merging credit union is the credit union whose charter ceases to exist upon ((merging)) merger with the continuing credit union. The continuing credit union is the credit union whose charter continues upon ((merging)) merger with the merging credit union.(2) A credit union may be merged with another credit union with the approval of the director and in accordance with requirements the director may prescribe. The merger ((shall)) must be approved by a two-thirds majority vote of the board of each credit union and a two-thirds majority vote of those members of the merging credit union voting on the merger at a ((special)) membership meeting ((called by the merging credit union board or by mail ballot)). The requirement of approval by the members of the merging credit union may be waived by the director if ((in the director's opinion)) the merging credit union is in imminent danger of insolvency.(3) The property, rights, and interests of the merging credit union transfer to and vest in the continuing credit union without deed, endorsement, or instrument of transfer, although instruments of transfer may be used if their use is deemed appropriate. The debts and obligations of the merging credit union that are known or reasonably should be known are assumed by the continuing credit union. The continuing credit union shall cause to be published notice of merger once a week for three consecutive weeks in a newspaper of general circulation in the county in which the principal place of business of the merging credit union is located. The notice of merger ((shall)) must also inform creditors of the merging credit union how to make a claim on the continuing credit union, and that if a claim is not made upon the continuing credit union within thirty days of the last date of publication, creditors' claims that are not known by the continuing credit union may be barred. Unless a claim is filed as requested by the notice, or unless the debt or obligation is known or reasonably should be known by the continuing credit union, the debts and obligations of the merging credit union are discharged. Upon merger, the charter of the merging credit union ceases to exist.Sec. 41. RCW 31.12.705 and 1994 c 92 s 221 are each amended to read as follows:(1) A credit union ((chartered under the laws of this state)) may convert ((itself)) into a federal credit union ((chartered under the laws of the United States)) as authorized by the federal credit union act. The conversion ((shall)) must be approved by a two-thirds majority vote of ((the)) those members ((present)) voting at ((any regular or special)) a membership meeting ((called for that purpose by the board. The meeting shall be held within thirty days of being called and the secretary shall notify the members and the director of the meeting and its purpose as provided by the bylaws at least twenty days prior to the meeting)).(2) If the conversion is approved by the members, a copy of the resolution certified by the board ((shall)) must be filed with the director within ten days of approval. The board may effect the conversion ((from a state-chartered credit union to a federal-chartered credit union)) upon terms agreed by the board and the ((proper)) federal ((authorities as provided by federal laws, rules, and regulations)) regulator.(3) A certified copy of the federal credit union charter or authorization issued ((to the credit union)) by the ((proper)) federal ((authority shall)) regulator must be filed ((in)) with the ((director's office)) director and thereupon the ((state-chartered)) credit union ceases to exist except for the purpose of winding up its affairs and prosecuting or defending any litigation by or against the ((state-chartered)) credit union. For all other purposes, the credit union is converted into a ((federal-chartered)) federal credit union and the ((state-chartered)) credit union may execute, acknowledge, and deliver to the successor federal credit union the instruments of transfer, conveyance, and assignment that are necessary or desirable to complete the conversion, and the property, tangible or intangible, and all rights, titles, and interests that are agreed to by the board and the ((proper)) federal ((authorities)) regulator.(4) Procedures, similar to those contained in subsections (1) through (3) of this section, prescribed by the director ((shall)) must be followed when a credit union ((chartered under the laws of this state)) merges ((with)) or converts ((to a credit union chartered under the laws of another state)) into an out-of-state or foreign credit union.Sec. 42. RCW 31.12.715 and 1994 c 92 s 222 are each amended to read as follows:(1) A federal credit union located and conducting business in this state ((which becomes inoperative because of a change in the laws under which it is chartered or which is authorized to dissolve or convert to a state-chartered credit union in accordance with federal law)) may convert into a ((state-chartered)) credit union organized and operating under this chapter.(2) The board of the federal credit union shall file with the director proposed articles of incorporation and ((proposed)) bylaws, as provided by this chapter for organizing a new ((state-chartered)) credit union. If approved by the director, the ((federal-chartered)) federal credit union ((shall)) becomes a ((state-chartered)) credit union under the laws of this state, and the assets and liabilities of the federal credit union will vest in and become the property of the successor ((state-chartered)) credit union subject to all existing liabilities against the ((federal-chartered)) federal credit union. ((Shareholders and)) Members of the federal credit union may become ((shareholders and)) members of the successor ((state-chartered)) credit union.(3) Procedures, similar to those contained in subsections (1) and (2) of this section, prescribed by the director ((shall)) must be followed when ((a)) an out-of-state or foreign credit union ((chartered under the laws of another state)) wishes to merge ((with)) or convert ((to)) into a credit union ((chartered under the laws of this state)) organized and operating under this chapter.Sec. 43. RCW 31.12.526 and 1994 c 256 s 88 and 1994 c 92 s 205 are each reenacted and amended to read as follows:(1) ((A)) An out-of-state or foreign credit union ((organized and qualified as a credit union in another state which has not had its authority to operate in another state suspended or revoked may operate as a credit union under this chapter if)) may not operate a branch in Washington unless:(a) The director has approved ((an)) its application to do business in this state;(b) A credit union ((organized under the laws of this state)) is permitted to do business in the state or jurisdiction in which the ((credit union)) applicant is organized;(c) The interest rate charged by the ((credit union)) applicant on loans made to members residing in this state does not exceed the maximum interest rate permitted in the state or jurisdiction in which the ((credit union)) applicant is organized, or exceed the maximum interest rate ((which)) that a credit union ((organized in this state)) organized and operating under this chapter is permitted to charge on similar loans, whichever is lower;(d) The ((credit union)) applicant has secured surety bond and fidelity bond coverages satisfactory to the director;(e) The ((credit union has secured for the)) applicant's share and deposit accounts ((of its members insurance or other surety satisfactory to the director)) are insured under the federal share insurance program or an equivalent share insurance program in compliance with RCW 31.12.039 (as recodified by this act);(f) The ((credit union)) applicant submits to the director an annual ((audit or)) examination report of its most recently completed fiscal year; ((and))(g) The applicant has not had its authority to operate in another state or jurisdiction suspended or revoked;(h) If the applicant is a foreign credit union:(i) A treaty or agreement between the United States and the jurisdiction where the applicant is organized requires the director to permit the applicant to operate a branch in Washington; and(ii) The director determines that the applicant has substantially the same characteristics as a credit union organized and operating under this chapter; and(i) The ((credit union)) applicant complies with all other ((applicable)) provisions of this chapter and rules adopted by the director, except as otherwise permitted by this section.(2) The director shall ((disapprove)) deny an application filed under this section or, upon ((reasonable)) notice and an opportunity for hearing, suspend or revoke the approval of an application, if the director finds that the standards of organization, operation, and regulation of the ((credit union)) applicant do not reasonably conform with the standards under this chapter ((or that at least fifty percent of the members of the credit union are, or are reasonably expected to be, residents of this state)). In considering the standards of organization, operation, and regulation of the ((credit union)) applicant, the director may consider the laws ((and regulations)) of the state or jurisdiction in which the ((credit union)) applicant is organized. A decision under this subsection may be appealed under chapter 34.05 RCW.(3) In implementing this section, the director may cooperate with ((the administrators of the)) credit union ((laws)) regulators in other states or jurisdictions and may share with the ((administrators)) regulators the information received in the administration of this chapter.(4) The director may enter into supervisory agreements with out-of-state and foreign credit unions and their regulators to prescribe the applicable laws governing the powers and authorities of Washington branches of the out-of-state or foreign credit unions. The director may also enter into supervisory agreements with the credit union regulators in other states or jurisdictions to prescribe the applicable laws governing the powers and authorities of out-of-state or foreign branches and other facilities of credit unions.The agreements may address, but are not limited to, corporate governance and operational matters. The agreements may resolve any conflict of laws, and specify the manner in which the examination, supervision, and application processes must be coordinated with the regulators.The director ((shall)) may adopt rules for the periodic examination and investigation of the affairs of an out-of-state or foreign credit union operating in this state. The costs of examination and supervision ((shall)) must be fully borne by the out-of-state or foreign credit union.Sec. 44. RCW 31.12.725 and 1994 c 92 s 223 are each amended to read as follows:(1) At a special board meeting ((specially)) called for the purpose of liquidation, and upon the recommendation of at least two-thirds of the total members of the board of a credit union, the members of a credit union may elect to liquidate the credit union by a two-thirds majority vote of ((the)) those members ((present elect to liquidate the credit union)) voting.(2) Upon a vote to liquidate under subsection (1) of this section, a three-person liquidating committee ((of three shall)) must be elected to liquidate the assets of the credit union. The committee shall act ((under the direction)) in accordance with any requirements of the director and may be reasonably compensated by the board of the credit union. Each share ((of)) account holder and depositor at the credit union ((shall be)) is entitled to his, her, or its proportionate part of the assets in liquidation after all shares, deposits, and debts have been paid. The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent. The assets of the liquidating credit union ((shall)) are not ((be)) subject to contingent liabilities. Upon distribution of the assets, the credit union ((shall)) ceases to exist except for the purpose of discharging existing liabilities and obligations.(3) Funds representing unclaimed dividends in liquidation and remaining in the hands of the liquidating committee for six months after the date of the final dividend ((shall)) must be deposited, together with all the books and papers of the credit union, with the director. The director may, one year after receipt, destroy such records, books, and papers as, in the director's judgment, are obsolete or unnecessary for future reference. The funds may be deposited in one or more ((trust companies, mutual savings banks, savings and loan associations, or national or state banks)) financial institutions to the credit of the director, in trust for the members of the ((liquidating)) credit union entitled to the funds. The director may pay ((to)) a ((person entitled to it that person's)) portion of the funds to a person upon ((the)) receipt of satisfactory evidence that the person is entitled to ((a portion of)) the funds. In case of doubt or ((of)) conflicting claims, the director may require an order of the superior court of the county in which the principal place of business of the credit union was located, authorizing and directing the payment of the funds. The director may apply the interest earned by the funds toward defraying the expenses incurred in the holding and paying of the funds. Five years after the receipt of the funds, the funds still remaining with the director ((shall)) must be ((escheated)) remitted to the state as unclaimed property.Sec. 45. RCW 31.12.516 and 1994 c 92 s 204 are each amended to read as follows:(1) The powers of supervision and examination of credit unions and other persons subject to this chapter and chapters 31.12A and 31.13 RCW are vested in the director. The director shall require each credit union to conduct business in compliance with this chapter and other laws that apply to credit unions, and has the power to commence and prosecute actions and proceedings, to enjoin violations, and to collect sums due the state of Washington from a credit union ((authorized to conduct business under this chapter)).(2) The director may adopt such rules as are reasonable or necessary to carry out the purposes of this chapter and chapters 31.12A and 31.13 RCW. Chapter 34.05 RCW will, whenever applicable, govern the rights, remedies, and procedures respecting the administration of this chapter.(3) The director shall have the power and broad administrative discretion to administer and interpret the provisions of this chapter and chapters 31.12A and 31.13 RCW, to facilitate the delivery of financial services to the members of a credit union.(4) The director may charge fees to credit unions and other persons subject to this chapter and chapters 31.12A and 31.13 RCW, in order to cover the costs of the operation of the division of credit unions, and to establish a reasonable reserve for the division. The director may waive all or a portion of such fees.Sec. 46. RCW 31.12.545 and 1994 c 92 s 207 are each amended to read as follows:(1) The director shall make an examination and ((full)) investigation into the affairs of each credit union at least once every eighteen months, unless the director determines with respect to a credit union, that a less frequent examination schedule will satisfactorily protect the financial stability of the credit union and will satisfactorily assure compliance with the provisions of this chapter. ((The actual cost of examination and supervision shall be paid by the credit union examined. The director may waive all or a portion of the examination costs payable by the credit union, in light of the time and expense of the examination and the ability of the credit union to pay the costs. The examination costs with respect to the first examination of a credit union with assets under two hundred thousand dollars shall not be payable by that credit union.))(2) The director may accept in lieu of an examination under subsection (1) of this section the report of an examiner authorized to examine ((a)) an out-of-state, federal, or foreign credit union ((under the laws of the United States or another state)), or the report of an accountant, satisfactory to the director, who has made and submitted a report of the condition of the affairs of a credit union ((and, if approved)). The director may accept such a report in lieu of part or all of an examination. If accepted, the report ((shall have)) has the same force and effect as an examination under subsection (1) of this section.(((3) Communications from the director to the board of a credit union regarding an examination or report shall be read before the board at its first meeting following the receipt of the communication and the fact that the communication was read before the board shall be noted in the minutes of the meeting. The board shall promptly respond to the director either by stating that steps have been taken to comply with the communication or by stating that the board objects to the communication and stating the reasons for the objection.))Sec. 47. RCW 31.12.555 and 1994 c 256 s 89 and 1994 c 92 s 208 are each reenacted and amended to read as follows:(1) The director may examine the affairs of:(a) A credit union service organization in which a credit union has an interest((.));(b) A person ((or an entity)) that is not a credit union, out-of-state credit union, federal credit union, or foreign credit union, and that has an interest in a credit union service organization in which a credit union has an interest ((is deemed to have consented to the examination. For the purposes of this section and RCW 31.12.565, a sole proprietorship, partnership, or corporation that is primarily in the business of managing one or more credit unions shall be considered to be a credit union service organization.)); and(c) A sole proprietorship or organization primarily in the business of managing one or more credit unions.(2) Persons subject to examination under this section are deemed to have consented to the examination.(3) The director will establish the appropriate frequency of regular examinations under this section, but no more frequently than once every eighteen months. The cost of the examinations will be borne fully by the person examined.Sec. 48. RCW 31.12.565 and 1994 c 256 s 90 and 1994 c 92 s 209 are each reenacted and amended to read as follows:(1) The following are confidential and privileged and not subject to public disclosure under chapter 42.17 RCW:(a) Examination reports and information obtained by the ((director's staff)) director in conducting examinations ((of credit unions and credit union service organizations are confidential and privileged information and not subject to public disclosure under chapter 42.17 RCW)) and investigations under this chapter and chapters 31.12A and 31.13 RCW;(b) Examination reports and related information from other financial institution regulators obtained by the director; and(c) Business plans and other proprietary information obtained by the director in connection with a credit union's application or notice to the director.(2) Notwithstanding subsection (1) of this section, the director may furnish examination reports prepared by the ((director's office)) director to:(a) Federal agencies empowered to examine ((state-chartered)) credit unions;(b) Officials empowered to investigate criminal charges. The director may furnish only that part of the report which is necessary and pertinent to the investigation, and only after notifying the affected credit union and members of the credit union who are named in that part of the examination report, or other person examined, that the report is being furnished to the officials, unless the officials requesting the report obtain a waiver of the notice requirement for good cause from a court of competent jurisdiction;(c) The examined credit union or other person examined, solely for its confidential use;(d) The attorney general in his or her role as legal advisor to the director;(e) Prospective merger partners or conservators, receivers, or liquidating agents of a distressed credit union;(f) Credit union ((administrators)) regulators in other states or jurisdictions regarding an out-of-state ((chartered)) or foreign credit union ((doing)) conducting business in this state under this chapter, or regarding a credit union ((chartered under this chapter doing)) conducting business in ((another)) the other state or jurisdiction;(g) A person ((or organization)) officially connected with the credit union or other person examined, as officer, director, supervisory committee member, attorney, auditor, accountant, independent attorney, independent auditor, or independent accountant;(h) ((Companies)) Organizations that have bonded the credit union to the extent that information is relevant to the renewal of the bond coverage or to a claim under the bond coverage; (i) ((Companies, associations, or agencies)) Organizations insuring or guaranteeing the shares of, or deposits in, the credit union; or(j) Other persons ((or organizations)) as the director may determine necessary to protect the public interest and confidence.(3) Examination reports furnished under subsection (2) of this section remain the property of the ((director's office)) director and no person((, agency, or authority)) to whom reports are furnished or any officer, director, or employee thereof may disclose or make public the reports or information contained in the reports except in published statistical information that does not disclose the affairs of ((an individual or corporation)) a person, except that nothing prevents the use in a criminal prosecution of reports furnished under subsection (2)(b) of this section.(4) In a civil action in which the reports or information are sought to be discovered or used as evidence, a party upon notice to the director, may petition the court for an in-camera review of the reports or information. The court may permit discovery and introduction of only those portions of the report or information which are relevant and otherwise unobtainable by the requesting party. This subsection does not apply to an action brought or defended by the director.(5) This section does not apply to investigation reports prepared by the director ((and the director's staff)) concerning an application for a new credit union or a notice of intent to establish or relocate a branch of a credit union, except that the director may adopt rules making ((confidential)) portions of the reports confidential, if in the director's opinion the public disclosure of that portion of the report would impair the ability to obtain information the director considers necessary to fully evaluate the application.(6) Any person who knowingly violates a provision of this section is guilty of a gross misdemeanor.NEW SECTION. Sec. 49. A new section is added to chapter 31.12 RCW to read as follows:A credit union shall make at least two regular reports each year to the director showing the assets and liabilities of the credit union. Each report must be certified by the principal operating officer of the credit union. The director shall designate the form, the due dates of, and the period covered by the reports.NEW SECTION. Sec. 50. A new section is added to chapter 31.12 RCW to read as follows:Credit unions will comply with the provisions of generally accepted accounting principles as identified by rule of the director. In adopting rules to implement this section, the director shall consider, among other relevant factors, whether to transition small credit unions to generally accepted accounting principles over a period of time.Sec. 51. RCW 31.12.215 and 1994 c 92 s 190 are each amended to read as follows:A credit union desiring to establish a branch shall submit to the director a notice of intent to establish a branch ((on a form provided by the director)) at least thirty days before conducting business at the branch.Sec. 52. RCW 31.12.575 and 1994 c 92 s 210 are each amended to read as follows:(1) ((The director may suspend a director or the principal operating officer of a credit union if, in the opinion of the director, the director or principal operating officer is dishonest, inefficient, incompetent, is willfully disobeying orders of the director, or is in any way violating this chapter or the bylaws of the credit union. The director shall give prompt notice of and the reasons for the suspension to the board of the affected credit union.(2) Unless the director specifically provides otherwise in the order of suspension, an order of suspension shall take effect immediately. The suspended person shall be prohibited from all aspects of the operation of the credit union. The suspended person shall be barred from the credit union premises and shall surrender the possession of all property and records of the credit union. A person who knowingly violates an order of suspension or who knowingly aids in the violation of an order of suspension shall be guilty of a gross misdemeanor.(3) Upon receipt of the notice of suspension, the board shall within twenty days call a meeting of its members to consider the causes of the suspension. The board shall give at least seven days' notice of the time and place of the meeting to the director unless the director agrees to accept shorter notice. If the board finds the director's objection to be well-founded, the board shall remove the suspended person immediately.(4) If the board fails to remove the suspended person as provided in subsection (3) of this section, the director may remove that person after reasonable notice and an opportunity to be heard under chapter 34.05 RCW. The suspension shall remain in effect for twenty days after the board meeting at which the board considers the suspension, during which time the director may call a hearing under this subsection. If the director calls a hearing, the suspension shall remain in effect until the time of the hearing.)) The director may serve a credit union director, supervisory committee member, officer, or employee with written notice of the director's intent to remove the person from office or to prohibit the person from participating in the conduct of the affairs of the credit union whenever, in the opinion of the director:(a) The person has committed a material violation of law or an unsafe or unsound practice;(b)(i) The credit union has suffered or is likely to suffer substantial financial loss or other damage; or(ii) The interests of the credit union's share account holders and depositors could be seriously prejudiced by reason of the violation or practice; and(c) The violation or practice involves personal dishonesty, recklessness, or incompetence.(2) The notice must contain a statement of the facts constituting the alleged violation or practice and must fix a time and place at which a hearing will be held to determine whether a removal or prohibition order should be issued against the person. The hearing must be set not earlier than ten days nor later than thirty days after service of the notice, unless a later date is set by the director at the request of any of the parties.Unless the person appears at the hearing, the person will be deemed to have consented to the issuance of the removal or prohibition order. In the event of this consent, or if upon the record made at the hearing the director finds that any violation or practice specified in the notice of intention has been established, the director may issue and serve upon the person an order removing the person from office at the credit union or an order prohibiting the person from participating in the conduct of the affairs of the credit union.(3) A removal order or prohibition order becomes effective at the expiration of ten days after the service of the order upon the person, except that a removal order or prohibition order issued upon consent becomes effective at the time specified in the order. An order remains effective unless it is stayed, modified, terminated, or set aside by action of the director or a reviewing court.Sec. 53. RCW 31.12.585 and 1994 c 92 s 211 are each amended to read as follows:(1) The director may issue and serve ((upon)) a credit union with a notice of charges if, in the opinion of the director, the credit union has committed or is about to commit:(a) ((Is engaging or has engaged in an unsafe or unsound practice in conducting the business of the credit union;)) A material violation of law; or(b) ((Is violating or has violated a material provision of any law, rule, or any condition imposed in writing by the director in connection with the granting of any application or other request by the credit union or any written agreement made with the director; or(c) Is about to do the acts prohibited in (a) or (b) of this subsection if the opinion that the threat exists is based upon reasonable cause)) An unsafe or unsound practice.(2) The notice ((shall)) must contain a statement of the facts constituting the alleged violation or the practice and ((shall)) must fix a time and place at which a hearing will be held to determine whether an order to cease and desist should issue against the credit union. The hearing ((shall)) must be set not earlier than ten days nor later than thirty days after service of the notice, unless a later date is set by the director at the request of ((the credit union)) any of the parties.Unless the credit union appears at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the cease and desist order. In the event of this consent, or if upon the record made at the hearing the director finds that any violation or practice specified in the notice of charges has been established, the director may issue and serve upon the credit union an order to cease and desist from the violation or practice. The order may require the credit union and its directors, supervisory committee members, officers, employees, and agents to cease and desist from the violation or practice and may require the credit union to take affirmative action to correct the conditions resulting from the violation or practice.(3) A cease and desist order ((shall)) becomes effective at the expiration of ten days after the service of the order upon the credit union ((concerned)), except that a cease and desist order issued upon consent ((shall)) becomes effective at the time specified in the order ((and shall)). The order remains effective ((as provided therein)) unless it is stayed, modified, terminated, or set aside by action of the director or a reviewing court.Sec. 54. RCW 31.12.595 and 1994 c 92 s 212 are each amended to read as follows:If the director determines that the ((act)) violation or practice specified in RCW 31.12.585 (as recodified by this act) is likely to cause ((insolvency or substantial dissipation of assets or earnings of the credit union or to otherwise seriously prejudice the interests of its depositors, members, or shareholders)) an unsafe or unsound condition at the credit union, the director may issue a temporary order requiring the credit union to cease and desist from the violation or practice. The order ((shall)) becomes effective upon service on the credit union and ((shall)) remains effective unless set aside, limited, or suspended by a court in proceedings under RCW 31.12.605 (as recodified by this act) pending the completion of the administrative proceedings under the notice, and until the director dismisses the charges specified in the notice or until the effective date of a cease and desist order issued against the credit union under RCW 31.12.585 (as recodified by this act).Sec. 55. RCW 31.12.605 and 1984 c 31 s 62 are each amended to read as follows:Within ten days after a credit union has been served with a temporary cease and desist order, the credit union may apply to the superior court in the county of its principal place of business for an injunction setting aside, limiting, or suspending the order pending the completion of the administrative proceedings under RCW 31.12.585 (as recodified by this act). The superior court ((shall have)) has jurisdiction to issue the injunction.Sec. 56. RCW 31.12.625 and 1994 c 92 s 214 are each amended to read as follows:(1) An administrative hearing provided for in RCW 31.12.575 or 31.12.585 ((shall)) (as recodified by this act) may be held at such place as is designated by the director and must be conducted in accordance with chapter 34.05 RCW. The hearing shall be private unless the director determines that a public hearing is necessary to protect the public interest after fully considering the views of the party afforded the hearing.(2) Within sixty days after the hearing, the director shall render a decision which ((shall)) includes findings of fact upon which the decision is based ((and)). The director shall issue and serve upon each party to the proceeding an order or orders consistent with RCW 31.12.575 or 31.12.585 (as recodified by this act).(3) Unless a petition for review is timely filed in the superior court of the county in which the principal place of business of the credit union is located, and until the record in the proceeding has been filed as provided therein, the director may at any time modify, terminate, or set aside any order upon such notice and in such manner as the director may deem proper. Upon filing the record, the director may modify, terminate, or set aside an order only with the permission of the court or the party or parties to the proceeding.The judicial review provided in this section will be exclusive for orders issued under RCW 31.12.575 and 31.12.585 (as recodified by this act).(4) Any party to the proceeding, or any person subject to an order, temporary order, or injunction issued under RCW 31.12.575, 31.12.585, 31.12.595, or 31.12.615 (as recodified by this act), may obtain a review of any order issued and served under subsection (1) of this section, other than an order issued upon consent, by filing a written petition requesting that the order be modified, terminated, or set aside, in the superior court of the county in which the principal place of business of the affected credit union is located. The petition must be filed within ten days after the date of service of the order. A copy of the petition must be immediately served upon the director and the director must then file the record of the proceeding in court. The court has jurisdiction, upon the filing of the petition, to affirm, modify, terminate, or set aside, in whole or in part, the order of the director. The jurisdiction of the court becomes exclusive upon the filing of the record. However, the director may modify, terminate, or set aside the order with the permission of the court. The judgment and decree of the court is final subject to appellate review under the rules of the court.(5) The commencement of proceedings for judicial review under subsection (4) of this section may not operate as a stay of any order issued by the director unless specifically ordered by the court.(6) Service of any notice or order required to be served under RCW 31.12.575, 31.12.585, or 31.12.595 (as recodified by this act), must be accomplished in the same manner as required for the service of process in civil actions in superior courts of this state.NEW SECTION. Sec. 57. A new section is added to chapter 31.12 RCW to read as follows:The director may apply to the superior court of the county in which the principal place of business of the affected credit union is located for the enforcement of any effective and outstanding order issued under RCW 31.12.575, 31.12.585, 31.12.595, and 31.12.615 (as recodified by this act), and the court has jurisdiction to order compliance therewith. No court has jurisdiction to affect by injunction or otherwise the issuance or enforcement of any such order, or to review, modify, suspend, terminate, or set aside any such order, except as provided in RCW 31.12.605, 31.12.615, and 31.12.625 (as recodified by this act).Sec. 58. RCW 31.12.655 and 1994 c 92 s 216 are each amended to read as follows:The director may request a special meeting of the board of a credit union if the director believes that a special meeting is necessary for the welfare of the credit union or the purposes of this chapter. The director's request for a special board meeting ((shall)) must be made in writing to the secretary of the board and the request ((shall)) must be handled in the same manner as a call for a special meeting under RCW 31.12.195 (as recodified by this act). The director may require the attendance of all of the directors ((of the board)) at the special board meeting, and an absence ((of a director)) unexcused by the director constitutes a violation of this chapter.Sec. 59. RCW 31.12.665 and 1994 c 92 s 217 are each amended to read as follows:(((1))) The director may attend a ((regular or special)) meeting of the board of a credit union if the director believes that attendance at the meeting is necessary for the welfare of the credit union, or the purposes of this chapter, or if the board has requested the director's attendance. The director shall provide reasonable notice to the board before attending a meeting.(((2) A communication from the director to the board shall upon the request of the director be read to the board at its next meeting and the fact that the communication was read shall be noted in the minutes.))NEW SECTION. Sec. 60. A new section is added to chapter 31.12 RCW to read as follows:The director may place a credit union under supervisory direction in accordance with sections 61 through 63 of this act, appoint a conservator for a credit union in accordance with sections 64 through 67 of this act, appoint a liquidating agent for a credit union in accordance with RCW 31.12.675 and 31.12.685 (as recodified by this act), or appoint a receiver for a credit union in accordance with sections 70 through 86 of this act, if the credit union:(1) Consents to the action;(2) Has failed to comply with the requirements of the director while the credit union is under supervisory direction;(3) Has committed or is about to commit a material violation of law or an unsafe or unsound practice, and such violation or practice has caused or is likely to cause an unsafe or unsound condition at the credit union; or(4) Is in an unsafe or unsound condition.NEW SECTION. Sec. 61. A new section is added to chapter 31.12 RCW to read as follows:(1) As authorized by section 60 of this act, the director may determine to place a credit union under supervisory direction. Upon such a determination, the director shall notify the credit union in writing of:(a) The director's determination; and(b) Any requirements that must be satisfied before the director shall terminate the supervisory direction.(2) The credit union must comply with the requirements of the director as provided in the notice. If the credit union fails to comply with the requirements, the director may appoint a conservator, liquidating agent, or receiver for the credit union, in accordance with this chapter. The director may appoint a representative to supervise the credit union during the period of supervisory direction.(3) All costs incident to supervisory direction will be a charge against the assets of the credit union to be allowed and paid as the director may determine.NEW SECTION. Sec. 62. A new section is added to chapter 31.12 RCW to read as follows:During the period of supervisory direction, the director may prohibit the credit union from engaging in any of the following acts without prior approval:(1) Disposing of, conveying, or encumbering any of its assets;(2) Withdrawing any of its accounts at other financial institutions;(3) Lending any of its funds;(4) Investing any of its funds;(5) Transferring any of its property; or(6) Incurring any debt, obligation, or liability.NEW SECTION. Sec. 63. A new section is added to chapter 31.12 RCW to read as follows:During the period of supervisory direction, the credit union may request the director to review an action taken or proposed to be taken by the representative, specifying how the action is not in the best interests of the credit union. The request stays the action, pending the director's review of the request.NEW SECTION. Sec. 64. A new section is added to chapter 31.12 RCW to read as follows:(1) As authorized by section 60 of this act, the director may, upon due notice and hearing, appoint a conservator for a credit union. The director may appoint himself or herself or another qualified party as conservator of the credit union. The conservator shall immediately take charge of the credit union and all of its property, books, records, and effects.(2) The conservator shall conduct the business of the credit union and take such steps toward the removal of the causes and conditions that have necessitated the appointment of a conservator, as the director may direct. The conservator is authorized to, without limitation:(a) Take all necessary measures to preserve, protect, and recover any assets or property of the credit union, including any claim or cause of action belonging to or which may be asserted by the credit union, and administer the same in his or her own name as conservator; and(b) File, prosecute, and defend any suit that has been filed or may be filed by or against the credit union that is deemed by the conservator to be necessary to protect all of the interested parties or a property affected thereby.The conservator shall make such reports to the director from time to time as may be required by the director.(3) All costs incident to conservatorship will be a charge against the assets of the credit union to be allowed and paid as the director may determine.(4) If at any time the director determines that the credit union is not in condition to continue business under the conservator in the interest of its share account holders, depositors, or creditors, and grounds exist under section 60 of this act, the director may proceed with appointment of a liquidating agent or receiver in accordance with this chapter.NEW SECTION. Sec. 65. A new section is added to chapter 31.12 RCW to read as follows:During the period of conservatorship, the credit union may request the director to review an action taken or proposed to be taken by the conservator, specifying how the action is not in the best interest of the credit union. The request stays the action, pending the director's review of the request.NEW SECTION. Sec. 66. A new section is added to chapter 31.12 RCW to read as follows:Any suit filed against a credit union or its conservator, during the period of conservatorship, must be brought in the superior court of Thurston county. A conservator for a credit union may file suit in any superior court or other court of competent jurisdiction against any person for the purpose of preserving, protecting, or recovering any asset or property of the credit union, including, but not limited to, any claims or causes of action belonging to or asserted by the credit union.NEW SECTION. Sec. 67. A new section is added to chapter 31.12 RCW to read as follows:The conservator shall serve until the purposes of the conservatorship have been accomplished. If rehabilitated, the credit union must be returned to management or new management under such conditions as the director may determine.Sec. 68. RCW 31.12.675 and 1994 c 92 s 218 are each amended to read as follows:(1) ((The articles of incorporation of a credit union may be suspended or revoked, the credit union placed in involuntary liquidation, and a liquidating agent appointed upon a finding by the director that the credit union is insolvent.(2) Except as otherwise provided in this chapter,)) As authorized by section 60 of this act, the director may appoint a liquidating agent for a credit union. Before appointing a liquidating agent, the director((, before suspending or revoking the articles of incorporation of a credit union and placing the credit union in liquidation,)) shall issue and serve notice on the credit union ((concerned of the intention to suspend or revoke the articles and)) an order directing the credit union to show cause why its articles of incorporation should not be suspended or revoked, in accordance with chapter 34.05 RCW.(((3))) (2) If the ((director finds that the credit union is insolvent and the)) credit union fails to adequately show cause, the ((articles of incorporation shall be suspended or revoked and the credit union placed in involuntary liquidation. The)) director shall serve ((on)) the credit union with an order directing the suspension or revocation ((and an order directing the)) of the articles of incorporation, placing the credit union in involuntary liquidation ((and appointment of)), appointing a liquidating agent under this section and RCW 31.12.685 (as recodified by this act), and providing a statement of the findings on which the order is based.(((4))) (3) The suspension or revocation ((shall)) must be immediate and complete. Once the articles of incorporation are suspended or revoked, the credit union shall cease conducting business. The credit union may not accept any payment ((on)) to share((s)) or deposit((s)) accounts, may not grant or pay out any new or previously approved loans, may not invest any of its assets, and may not declare or pay out any previously declared dividends. The liquidating agent of a credit union whose articles have been suspended or revoked may accept payments on loans previously paid out and may accept income from investments already made.Sec. 69. RCW 31.12.685 and 1994 c 92 s 219 are each amended to read as follows:(1) ((The director shall designate the liquidating agent in the order directing the involuntary liquidation of the credit union under RCW 31.12.675.)) On receipt of the order placing the credit union in involuntary liquidation, the officers and directors of the credit union ((concerned)) shall deliver to the liquidating agent possession and control of all books, records, assets, and property of the credit union.(2) The liquidating agent shall proceed to convert the assets to cash, collect all debts due to the credit union and wind up its affairs in accordance with ((the)) any instructions and procedures issued by the director. If a liquidating agent agrees to absorb and serve the membership of ((a distressed)) the credit union, the director may approve a pooling of assets and liabilities rather than a distribution of assets.(3) Each share account holder and depositor at the credit union is entitled to a proportionate allocation of the assets in liquidation after all shares, deposits, and debts have been paid.The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent.(4) The liquidating agent shall cause a notice of liquidation to be published ((notice of liquidation)) once a week for three consecutive weeks in a newspaper of general circulation in the county in which the principal place of business of the ((liquidating)) credit union is located. The notice of liquidation ((shall)) must inform creditors of the ((liquidating)) credit union on how to make a claim upon the liquidating agent, and that if a claim is not made upon the liquidating agent within thirty days of the last date of publication, the creditor's claim ((shall be)) is barred. The liquidating agent shall provide personal notice of liquidation to the creditors of record, informing them that if they fail to make a claim upon the liquidating agent within thirty days of the service of the notice, the creditor's claim ((shall be)) is barred. If a creditor fails to make a claim upon the liquidating agent within the times required to be specified in the notices of liquidation, the creditor's claim ((shall be)) is barred. All contingent liabilities of the ((liquidated)) credit union ((shall be)) are discharged upon the director's order to liquidate the credit union. The liquidating agent shall, upon completion, certify to the director that the distribution or pooling of assets of the credit union is complete.NEW SECTION. Sec. 70. A new section is added to chapter 31.12 RCW to read as follows:As authorized by section 60 of this act, the director may without prior notice appoint a receiver to take possession of a credit union. The director may appoint the national credit union administration or other qualified party as receiver. Upon appointment, the receiver is authorized to act without bond. Upon acceptance of the appointment, the receiver shall have and possess all the powers and privileges provided by the laws of this state with respect to the receivership of a credit union, and be subject to all the duties of and restrictions applicable to such a receiver, except insofar as such powers, privileges, duties, or restrictions are in conflict with any applicable provision of the federal credit union act.Upon taking possession of the credit union, the receiver shall give written notice to the directors of the credit union and to all persons having possession of any assets of the credit union. No person with knowledge of the taking of possession by the receiver shall have a lien or charge for any payment advanced, clearance made, or liability incurred against any of the assets of the credit union, after the receiver takes possession, unless approved by the receiver.NEW SECTION. Sec. 71. A new section is added to chapter 31.12 RCW to read as follows:Within ten days after the receiver takes possession of a credit union's assets, the credit union may serve notice upon the receiver to appear before the superior court of the county in which the principal place of business of the credit union is located and at a time to be fixed by the court, which may not be less than five or more than fifteen days from the date of the service of the notice, to show cause why the credit union should not be restored to the possession of its assets.The court shall summarily hear and dismiss the complaint if it finds that the receiver was appointed for cause. However, if the court finds that no cause existed for appointment of the receiver, the court shall require the receiver to restore the credit union to possession of its assets and enjoin the director from further appointment of a receiver for the credit union without cause.NEW SECTION. Sec. 72. A new section is added to chapter 31.12 RCW to read as follows:Upon taking possession of a credit union, the receiver shall proceed to collect the assets of the credit union and preserve, administer, and liquidate its business and assets.With the approval of the Thurston county superior court or the superior court of the county in which the principal place of business of the credit union is located, the receiver may sell, compound, or compromise bad or doubtful debts, and upon such terms as the court may direct, borrow, mortgage, pledge, or sell all or any part of the real and personal property of the credit union. The receiver may deliver to each purchaser or lender an appropriate deed, mortgage, agreement of pledge, or other instrument of title or security. The receiver may employ an attorney or other assistants to assist in carrying out the receivership, subject to such surety bond as the director may require. The premium for any such bond must be paid out of the assets of the credit union.In carrying out the receivership, the receiver may without limitation arrange for the merger or consolidation of the credit union in receivership with another credit union, out-of-state credit union, or federal credit union, or may arrange for the purchase of the credit union's assets and the assumption of its liabilities by such a credit union, in whole or in part, or may arrange for such a transaction with another type of financial institution as may be otherwise permitted by law. The receiver shall give preference to transactions with a credit union or a federal credit union that has its principal place of business in this state.NEW SECTION. Sec. 73. A new section is added to chapter 31.12 RCW to read as follows:The receiver shall publish once a week for four consecutive weeks in a newspaper of general circulation in the county where the credit union's principal place of business is located, a notice requiring all persons having claims against the credit union to file proof of claim not later than ninety days from the date of the first publication of the notice. The receiver shall mail similar notices to all persons whose names appear as creditors upon the books of the credit union. The assets of the credit union are not subject to contingent claims.After the expiration of the time fixed in the notice, the receiver has no power to accept any claim except the claim of a depositor or share account holder, and all other claims are barred. Claims of depositors or share account holders may be presented after the expiration of the time fixed in the notice and may be approved by the receiver. If such a claim is approved, the depositor or share account holder is entitled to its proportion of prior liquidation dividends, if sufficient funds are available for it, and will share in the distribution of the remaining assets.The receiver may approve or reject any claim, but shall serve notice of rejection upon the claimant by mail or personally. An affidavit of service of the notice of rejection will serve as prima facie evidence that notice was given. No action may be brought on any claim after three months from the date of service of the notice of rejection.NEW SECTION. Sec. 74. A new section is added to chapter 31.12 RCW to read as follows:Upon taking possession of the credit union, the receiver shall make an inventory of the assets and file the list in the office of the county clerk. Upon the expiration of the time fixed for the presentation of claims, the receiver shall make a list of claims presented, segregating those approved and those rejected, to be filed in the office of the county clerk. The receiver shall also make and file with the office of the county clerk a supplemental list of claims at least fifteen days before the declaration of any liquidation dividend, and in any event at least every six months.Objection may be made by any interested person to any claim approved by the receiver. Objections to claims approved by the receiver will be resolved by the court after providing notice to both the claimant and objector, as the court may prescribe.NEW SECTION. Sec. 75. A new section is added to chapter 31.12 RCW to read as follows:All expenses incurred by the receiver in relation to the receivership of a credit union, including, but not limited to, reasonable attorneys' fees, become a first charge upon the assets of the credit union. The charges shall be fixed and determined by the receiver, subject to the approval of the court.NEW SECTION. Sec. 76. A new section is added to chapter 31.12 RCW to read as follows:At any time after the expiration of the date fixed for the presentation of claims, the receiver, subject to the approval of the court, may declare one or more liquidation dividends out of the funds remaining after the payment of expenses.NEW SECTION. Sec. 77. A new section is added to chapter 31.12 RCW to read as follows:When all expenses of the receivership have been paid, as well as all proper claims of share account holders, depositors, and other creditors, and proper provision has been made for unclaimed or unpaid debts and liquidation dividends, and assets of the credit union still remain, the receiver shall wind up the affairs of the credit union and distribute its assets to those entitled to them. Each share account holder and depositor at the credit union is entitled to a proportionate share of the assets remaining. The proportionate allocation shall be based on account balances as of a date determined by the board. For the purposes of liquidation, shares and deposits are equivalent.NEW SECTION. Sec. 78. A new section is added to chapter 31.12 RCW to read as follows:Any liquidation dividends to share account holders, depositors, or other creditors of the credit union remaining uncalled for and unpaid in the hands of the receiver for six months after the order of final distribution, must be deposited in a financial institution to each share account holder's, depositor's, or creditor's credit. The funds must be held in trust for the benefit of the persons entitled to the funds and, subject to the supervision of the court, must be paid by the receiver to them upon presentation of satisfactory evidence of their right to the funds.NEW SECTION. Sec. 79. A new section is added to chapter 31.12 RCW to read as follows:(1) The receiver shall inventory, package, and seal uncalled for and unclaimed personal property left with the credit union, including, but not limited to, property held in safe deposit boxes, and arrange for the packages to be held in safekeeping. The credit union, its directors and officers, and the receiver, shall be relieved of responsibility and liability for the property held in safekeeping. The receiver shall promptly send to each person in whose name the property stood on the books of the credit union, at the person's last known address, a registered letter notifying the person that the property will be held in the person's name for a period of not less than two years.(2) After the expiration of two years from the date of mailing the notice, the receiver shall promptly send to each person in whose name the property stood on the books of the credit union, at the person's last known address, a registered letter providing notice of sale. The letter must indicate that the receiver will sell the property set out in the notice, at a public auction at a specified time and place, not less than thirty days after the date of mailing the letter. The receiver may sell the property unless the person, prior to the sale, presents satisfactory evidence of the person's right to the property. A notice of the time and place of the sale must be published once within ten days prior to the sale in a newspaper of general circulation in the county where the sale is to be held.(3) Any property, for which the address of the owner or owners is not known, may be sold at public auction after it has been held by the receiver for two years. A notice of the time and place of the sale must be published once within ten days prior to the sale in a newspaper of general circulation in the county where the sale is to be held.(4) Whenever the personal property left with the credit union consists either wholly or in part, of documents, letters, or other papers of a private nature, the documents, letters, or papers may not be sold, but must be retained by the receiver and may be destroyed after a period of five years.NEW SECTION. Sec. 80. A new section is added to chapter 31.12 RCW to read as follows:The proceeds of the sale less any amounts for costs and charges incurred in safekeeping and sale must be deposited by the receiver in a financial institution, in trust for the benefit of the person entitled to the property. The sale proceeds must be paid by the receiver to the person upon presentation of satisfactory evidence of the person's right to the funds.NEW SECTION. Sec. 81. A new section is added to chapter 31.12 RCW to read as follows:Upon the completion of a receivership through merger, purchase of assets and assumption of liabilities, or liquidation, the director shall terminate the credit union's authority to conduct business and certify that fact to the secretary of state. Upon certification, the credit union shall cease to exist and the secretary of state shall note that fact upon his or her records.NEW SECTION. Sec. 82. A new section is added to chapter 31.12 RCW to read as follows:If at any time after a receiver is appointed, the director determines that all material deficiencies at the credit union have been corrected, and that the credit union is in a safe and sound condition to resume conducting business, the director may terminate the receivership and permit the credit union to reopen upon such terms and conditions as the director may prescribe. Before being permitted to reopen, the credit union must pay all of the expenses of the receiver.NEW SECTION. Sec. 83. A new section is added to chapter 31.12 RCW to read as follows:The receiver or director, as appropriate, may at any time after the expiration of one year from the order of final distribution, or from the date when the receivership has been completed, destroy any of the remaining files, records, documents, books of account, or other papers of the credit union that appear to be obsolete or unnecessary for future reference as part of the receivership files.NEW SECTION. Sec. 84. A new section is added to chapter 31.12 RCW to read as follows:The pendency of any proceedings for judicial review of the appointment of a receiver may not operate to prevent the payment or acquisition of the share and deposit liabilities of the credit union by the national credit union administration or other insurer or guarantor of the share and deposit liabilities of the credit union. During the pendency of the proceedings, the receiver shall make credit union facilities, books, records, and other relevant credit union data available to the insurer or guarantor as may be necessary or appropriate to enable the insurer or guarantor to pay out or to acquire the insured or guaranteed share and deposit liabilities of the credit union. The national credit union administration and any other insurer or guarantor of the credit union's share and deposit liabilities, together with their directors, officers, agents, and employees, and the director and receiver and their agents and employees, will be free from liability to the credit union, its directors, members, and creditors, for or on account of any action taken in connection with the receivership.NEW SECTION. Sec. 85. A new section is added to chapter 31.12 RCW to read as follows:No receiver may be appointed by any court for any credit union, except that a court otherwise having jurisdiction may in case of imminent necessity appoint a temporary receiver to take possession of and preserve the assets of the credit union. Immediately upon appointment, the clerk of the court shall notify the director in writing of the appointment and the director shall appoint a receiver to take possession of the credit union and the temporary receiver shall upon demand surrender possession of the assets of the credit union to the receiver. The receiver may in due course pay the temporary receiver out of the assets of the credit union, subject to the approval of the court.NEW SECTION. Sec. 86. A new section is added to chapter 31.12 RCW to read as follows:Every transfer of a credit union's property or assets, and every assignment by a credit union for the benefit of creditors, made in contemplation of insolvency, or after it has become insolvent, to intentionally prefer one creditor over another, or to intentionally prevent the equal distribution of its property and assets among its creditors, is void. Every credit union director, officer, or employee making any such transfer is guilty of a felony.An officer, director, or employee of a credit union who fraudulently receives any share or deposit on behalf of the credit union, knowing that the credit union is insolvent, is guilty of a felony.Sec. 87. RCW 31.12.635 and 1994 c 92 s 215 are each amended to read as follows:(1) It is unlawful for a director, supervisory committee member, officer, employee, or agent of a credit union to knowingly violate or consent to a violation of this chapter. Unless otherwise provided by law, a violation of this subsection is a misdemeanor under chapter 9A.20 RCW.(2) It is unlawful for a person to perform any of the following acts:(a) To knowingly subscribe to, make, or cause to be made a false statement or entry in the books of a credit union;(b) To knowingly make a false statement or entry in a report required to be made to the director; or(c) To knowingly exhibit a false or fictitious paper, instrument, or security to a person authorized to examine a credit union.(((2))) A violation of this ((section)) subsection is a class C felony under chapter 9A.20 RCW.NEW SECTION. Sec. 88. The following acts or parts of acts are each repealed:(1) RCW 31.12.095 and 1994 c 92 s 183;(2) RCW 31.12.165 and 1984 c 31 s 18;(3) RCW 31.12.206 and 1994 c 92 s 189 & 1984 c 31 s 22;(4) RCW 31.12.315 and 1994 c 256 s 81 & 1984 c 31 s 33;(5) RCW 31.12.355 and 1994 c 92 s 193;(6) RCW 31.12.376 and 1984 c 31 s 39;(7) RCW 31.12.395 and 1984 c 31 s 41;(8) RCW 31.12.415 and 1994 c 256 s 85, 1994 c 92 s 196, & 1984 c 31 s 43;(9) RCW 31.12.455 and 1994 c 92 s 200 & 1984 c 31 s 47;(10) RCW 31.12.475 and 1994 c 92 s 202 & 1984 c 31 s 49;(11) RCW 31.12.495 and 1984 c 31 s 51;(12) RCW 31.12.506 and 1994 c 92 s 203 & 1984 c 31 s 52;(13) RCW 31.12.535 and 1994 c 92 s 206 & 1984 c 31 s 55;(14) RCW 31.12.645 and 1984 c 31 s 66;(15) RCW 31.12.903 and 1984 c 31 s 77;(16) RCW 31.12.904 and 1984 c 31 s 80;(17) RCW 31.12.905 and 1994 c 92 s 224 & 1984 c 31 s 81; and(18) RCW 43.320.125 and 1996 c 274 s 1.NEW SECTION. Sec. 89. The following sections are codified or recodified within chapter 31.12 RCW in the following order:RCW 31.12.005.(1) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Credit Union Organization":RCW 31.12.015;RCW 31.12.025;RCW 31.12.035;RCW 31.12.055;RCW 31.12.065;RCW 31.12.075; andRCW 31.12.085.(2) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Corporate Governance":RCW 31.12.105;RCW 31.12.115;RCW 31.12.185;RCW 31.12.195;RCW 31.12.225;RCW 31.12.235;RCW 31.12.246;RCW 31.12.255;RCW 31.12.265;section 19 of this act;RCW 31.12.275;RCW 31.12.285;RCW 31.12.326;RCW 31.12.335;RCW 31.12.345;RCW 31.12.365; andRCW 31.12.306.(3) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Membership":RCW 31.12.045;RCW 31.12.145;RCW 31.12.155; andRCW 31.12.295.(4) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Powers of Credit Unions":RCW 31.12.125;RCW 31.12.136; RCW 31.12.037; andRCW 31.12.039.(5) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Members' Accounts":              RCW 31.12.385; and        RCW 31.12.485.               (6) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Loans to Members":              RCW 31.12.406; and        RCW 31.12.317.               (7) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Investments":        RCW 31.12.425; and        RCW 31.12.435.               (8) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Reserves":                RCW 31.12.445; and


 

      RCW 31.12.465.     (9) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Mergers, Conversions, and Voluntary Liquidations":RCW 31.12.695;RCW 31.12.705;RCW 31.12.715;RCW 31.12.526; andRCW 31.12.725.(10) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Examination and Supervision":RCW 31.12.516; RCW 31.12.545;RCW 31.12.555;RCW 31.12.565;section 49 of this act;section 50 of this act; RCW 31.12.215;RCW 31.12.575;RCW 31.12.585;RCW 31.12.595;RCW 31.12.605;RCW 31.12.615;RCW 31.12.625;section 57 of this act;RCW 31.12.655;RCW 31.12.665;section 60 of this act;section 61 of this act;section 62 of this act;section 63 of this act;section 64 of this act;section 65 of this act;section 66 of this act;section 67 of this act;RCW 31.12.675;RCW 31.12.685; section 70 of this act;section 71 of this act;section 72 of this act;section 73 of this act;section 74 of this act;section 75 of this act;section 76 of this act;section 77 of this act;section 78 of this act;section 79 of this act;section 80 of this act;section 81 of this act;section 82 of this act;section 83 of this act;section 84 of this act;section 85 of this act; andsection 86 of this act.(11) The following sections are recodified and designated as a subchapter of chapter 31.12 RCW under the subchapter designation "Miscellaneous":RCW 31.12.720;RCW 31.12.740;RCW 31.12.735;RCW 31.12.635;Section 92 of this act; andRCW 31.12.902.NEW SECTION. Sec. 90. Section 35 of this act takes effect July 1, 1998.NEW SECTION. Sec. 91. Section 50 of this act takes effect January 1, 1999.       NEW SECTION. Sec. 92. Except for sections 35 and 50 of this act, this act takes effect January 1, 1998.       NEW SECTION. Sec. 93. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."Correct the title.,       and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Winsley moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5563.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Winsley that the Senate do concur in the House amendment to Substitute Senate Bill No. 5563.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5563.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5563, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5563, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.                  Excused: Senators Fraser, Loveland, McCaslin, Snyder and Spanel - 5.              SUBSTITUTE SENATE BILL NO. 5563, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 15, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5628 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     Sec. 1. RCW 80.28.075 and 1988 c 166 s 2 are each amended to read as follows:  Upon request by a natural gas company or an electrical company, the commission may approve a tariff that includes banded rates for any ((nonresidential)) natural gas or electric service that is subject to effective competition from energy suppliers not regulated by the utilities and transportation commission. "Banded rate" means a rate that has a minimum and maximum rate. Rates may be changed within the rate band upon such notice as the commission may order.”         Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Finkbeiner moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5628 and requests of the House a conference thereon.


POINT OF ORDER


      Senator Sheldon: “A point of order, please. I rise to challenge the scope and object of the House amendment to Substitute Senate Bill No. 5628. Substitute Senate Bill No. 5628 adds a new section to Chapter 80.08 RCW, which gives the Utilities and Transportation Commission the authority to exempt from regulation certain securities issued by electrical and natural gas companies, if the commission finds it is not required by the public interest. The House amendment makes changes to RCW 80.28.075 which extends the Utilities and Transportation Commission's current authority to approve banded rates for nonresidential natural gas and electricity customers to include residential customers.”


MOTION


      On motion of Senator Johnson, further consideration of Substitute Senate Bill No. 5628 was deferred.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5034 with the following amendment(s):

      On page 2, line 9, strike “nine” and insert “seven”,               and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Schow, the Senate refuses to concur in the House amendment to Senate Bill No. 5034 and requests of the House a conference thereon.


MOTION


      On motion of Senator Goings, Senator Hargrove was excused.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5674 with the following amendment(s):

      On page 1, line 16, after "offered" strike "service"                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Wood, the Senate concurred in the House amendment to Senate Bill No. 5674.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5674, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5674, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43.            Excused: Senators Fraser, Hargrove, Loveland, McCaslin, Snyder and Spanel - 6.             SENATE BILL NO. 5674, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 10, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5715 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. It is the intent of the legislature that this act accomplish the following: Safeguard public health, safety, and welfare; protect the public from being mislead by unethical, ill-prepared, unscrupulous, and unauthorized persons; assure the highest degree of professional conduct on the part of orthotists and prosthetists; and assure the availability of orthotic and prosthetic services of high quality to persons in need of the services. The purpose of this act is to provide for the regulation of persons offering orthotic and prosthetic services to the public.              NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.               (1) "Advisory committee" means the orthotics and prosthetics advisory committee.             (2) "Department" means the department of health.                (3) "Secretary" means the secretary of health or the secretary's designee.            (4) "Orthotics" means the science and practice of evaluating, measuring, designing, fabricating, assembling, fitting, adjusting, or servicing, as well as providing the initial training necessary to accomplish the fitting of, an orthosis for the support, correction, or alleviation of neuromuscular or musculoskeletal dysfunction, disease, injury, or deformity. The practice of orthotics encompasses evaluation, treatment, and consultation. With basic observational gait and postural analysis, orthotists assess and design orthoses to maximize function and provide not only the support but the alignment necessary to either prevent or correct deformity or to improve the safety and efficiency of mobility or locomotion, or both. Orthotic practice includes providing continuing patient care in order to assess its effect on the patient's tissues and to assure proper fit and function of the orthotic device by periodic evaluation.      (5) "Orthotist" means a person licensed to practice orthotics under this chapter.                   (6) "Orthosis" means a custom-fabricated, definitive brace or support that is designed for long-term use. Except for the treatment of scoliosis, orthosis does not include prefabricated or direct-formed orthotic devices, as defined in this section, or any of the following assistive technology devices: Commercially available knee orthoses used following injury or surgery; spastic muscle tone-inhibiting orthoses; upper extremity adaptive equipment; finger splints; hand splints; custom-made, leather wrist gauntlets; face masks used following burns; wheelchair seating that is an integral part of the wheelchair and not worn by the patient independent of the wheelchair; fabric or elastic supports; corsets; arch supports, also known as foot orthotics; low-temperature formed plastic splints; trusses; elastic hose; canes; crutches; cervical collars; dental appliances; and other similar devices as determined by the secretary, such as those commonly carried in stock by a pharmacy, department store, corset shop, or surgical supply facility. Prefabricated orthoses, also known as custom-fitted, or off-the-shelf, are devices that are manufactured as commercially available stock items for no specific patient. Direct-formed orthoses are devices formed or shaped during the molding process directly on the patient's body or body segment. Custom-fabricated orthoses, also known as custom-made orthoses, are devices designed and fabricated, in turn, from raw materials for a specific patient and require the generation of an image, form, or mold that replicates the patient's body or body segment and, in turn, involves the rectification of dimensions, contours, and volumes to achieve proper fit, comfort, and function for that specific patient.      (7) "Prosthetics" means the science and practice of evaluating, measuring, designing, fabricating, assembling, fitting, aligning, adjusting, or servicing, as well as providing the initial training necessary to accomplish the fitting of, a prosthesis through the replacement of external parts of a human body lost due to amputation or congenital deformities or absences. The practice of prosthetics also includes the generation of an image, form, or mold that replicates the patient's body or body segment and that requires rectification of dimensions, contours, and volumes for use in the design and fabrication of a socket to accept a residual anatomic limb to, in turn, create an artificial appendage that is designed either to support body weight or to improve or restore function or cosmesis, or both. Involved in the practice of prosthetics is observational gait analysis and clinical assessment of the requirements necessary to refine and mechanically fix the relative position of various parts of the prosthesis to maximize the function, stability, and safety of the patient. The practice of prosthetics includes providing continuing patient care in order to assess the prosthetic device's effect on the patient's tissues and to assure proper fit and function of the prosthetic device by periodic evaluation.       (8) "Prosthetist" means a person who is licensed to practice prosthetics under this chapter.       (9) "Prosthesis" means a definitive artificial limb that is alignable or articulated, or, in lower extremity applications, capable of weight bearing. Prosthesis means an artificial medical device that is not surgically implanted and that is used to replace a missing limb, appendage, or other external human body part including an artificial limb, hand, or foot. The term does not include artificial eyes, ears, fingers or toes, dental appliances, ostomy products, devices such as artificial breasts, eyelashes, wigs, or other devices as determined by the secretary that do not have a significant impact on the musculoskeletal functions of the body. In the lower extremity of the body, the term prosthesis does not include prostheses required for amputations distal to and including the transmetatarsal level. In the upper extremity of the body, the term prosthesis does not include prostheses that are provided to restore function for amputations distal to and including the carpal level.                  (10) "Authorized health care practitioner" means licensed physicians, physician's assistants, osteopathic physicians, chiropractors, naturopaths, podiatric physicians and surgeons, dentists, and advanced registered nurse practitioners.      NEW SECTION. Sec. 3. An orthotist or prosthetist may only provide treatment utilizing new orthoses or prostheses for which the orthotist or prosthetist is licensed to do so, and only under an order from or referral by an authorized health care practitioner. A consultation and periodic review by an authorized health care practitioner is not required for evaluation, repair, adjusting, or servicing of orthoses by a licensed orthotist and servicing of prostheses by a licensed prosthetist. Nor is an authorized health care practitioner's order required for maintenance of an orthosis or prosthesis to the level of its original prescription for an indefinite period of time if the order remains appropriate for the patient's medical needs.                  Orthotists and prosthetists must refer persons under their care to authorized health care practitioners if they have reasonable cause to believe symptoms or conditions are present that require services beyond the scope of their practice or for which the prescribed orthotic or prosthetic treatment is contraindicated.              NEW SECTION. Sec. 4. No person may represent himself or herself as a licensed orthotist or prosthetist, use a title or description of services, or engage in the practice of orthotics or prosthetics without applying for licensure, meeting the required qualifications, and being licensed by the department of health, unless otherwise exempted by this chapter.             A person not licensed with the secretary must not represent himself or herself as being so licensed and may not use in connection with his or her name the words or letters "L.O.," "L.P.," or "L.P.O.," or other letters, words, signs, numbers, or insignia indicating or implying that he or she is either a licensed orthotist or a licensed prosthetist, or both. No person may practice orthotics or prosthetics without first having a valid license. The license must be posted in a conspicuous location at the person's work site.      NEW SECTION. Sec. 5. Nothing in this chapter shall be construed to prohibit or restrict:                (1) The practice by individuals listed under RCW 18.130.040 and performing services within their authorized scopes of practice;                      (2) The practice by an individual employed by the government of the United States while engaged in the performance of duties prescribed by the laws of the United States;      (3) The practice by a person who is a regular student in an orthotic or prosthetic educational program approved by the secretary, and whose performance of services is pursuant to a regular course of instruction or assignments from an instructor and under the general supervision of the instructor, if the person is designated by a title that clearly indicates the person's status as a student or trainee;      (4) A person fulfilling the supervised residency or internship experience requirements described in section 8 of this act, if the activities and services constitute a part of the experience necessary to meet the requirements of this chapter; or                       (5) A person from performing orthotic or prosthetic services in this state if: (a) The services are performed for no more than ninety working days; and (b) the person is licensed in another state or has met commonly accepted standards for the practice of orthotics or prosthetics as determined by the secretary.      NEW SECTION. Sec. 6. In addition to other authority provided by law, the secretary has the authority to:                      (1) Adopt rules under chapter 34.05 RCW necessary to implement this chapter;                  (2) Establish administrative procedures, administrative requirements, and fees in accordance with RCW 43.70.250 and 43.70.280. All fees collected under this section must be credited to the health professions account as required under RCW 43.70.320;                 (3) Register applicants, issue licenses to applicants who have met the education, training, and examination requirements for licensure, and deny licenses to applicants who do not meet the minimum qualifications, except that proceedings concerning the denial of credentials based upon unprofessional conduct or impairment are governed by the uniform disciplinary act, chapter 18.130 RCW;             (4) Hire clerical, administrative, investigative, and other staff as needed to implement this chapter and hire individuals licensed under this chapter to serve as examiners for any practical examinations;                    (5) Determine minimum education requirements and evaluate and designate those educational programs from which graduation will be accepted as proof of eligibility to take a qualifying examination for applicants for licensure;                  (6) Establish the standards and procedures for revocation of approval of education programs;      (7) Utilize or contract with individuals or organizations having expertise in the profession or in education to assist in the evaluations;         (8) Prepare and administer, or approve the preparation and administration of, examinations for applicants for licensure;           (9) Determine whether alternative methods of training are equivalent to formal education, and establish forms, procedures, and criteria for evaluation of an applicant's alternative training to determine the applicant's eligibility to take any qualifying examination;      (10) Determine which jurisdictions have licensing requirements equivalent to those of this state and issue licenses without examinations to individuals licensed in those jurisdictions;               (11) Define and approve any experience requirement for licensing;      (12) Implement and administer a program for consumer education;      (13) Adopt rules implementing continuing competency requirements for renewal of the license and relicensing;           (14) Maintain the official department records of all applicants and licensees;       (15) Establish by rule the procedures for an appeal of an examination failure;     (16) Establish requirements and procedures for an inactive license; and      (17) With the advice of the advisory committee, the secretary may recommend collaboration with health professions, boards, and commissions to develop appropriate referral protocols.               NEW SECTION. Sec. 7. (1) The secretary has the authority to appoint an advisory committee to further the purposes of this chapter. The secretary may consider the persons who are recommended for appointment by the orthotic and prosthetic associations of the state. Thecommittee is composed of five members, one member initially appointed for a term of one year, two for a term of two years, and two for a term of three years. Subsequent appointments are for terms of three years. No person may serve as a member of the committee for more than two consecutive terms. Members of the advisory committee must be residents of this state and citizens of the United States. The committee is composed of three individuals licensed in the category designated and engaged in rendering services to the public. Two members must at all times be holders of licenses for the practice of either prosthetics or orthotics, or both, in this state, except for the initial members of the advisory committee, all of whom must fulfill the requirements for licensure under this chapter. One member must be a practicing orthotist. One member must be a practicing prosthetist. One member must be licensed by the state as a physician licensed under chapter 18.57 or 18.71 RCW, specializing in orthopedic medicine or surgery or physiatry. Two members must represent the public at large and be unaffiliated directly or indirectly with the profession being credentialed but, to the extent possible, be consumers of orthotic and prosthetic services. The two members appointed to the advisory committee representing the public at large must have an interest in the rights of consumers of health services and must not be or have been a licensee of a health occupation committee or an employee of a health facility, nor derive his or her primary livelihood from the provision of health services at any level of responsibility.          (2) The secretary may remove any member of the advisory committee for cause as specified by rule. In the case of a vacancy, the secretary shall appoint a person to serve for the remainder of the unexpired term.               (3) The advisory committee may provide advice on matters specifically identified and requested by the secretary, such as applications for licenses.      (4) The advisory committee may be requested by the secretary to approve an examination required for licensure under this chapter.      (5) The advisory committee may be requested by the secretary to review and monitor the exemptions to requirements of certain orthoses and prostheses in this chapter and recommend to the secretary any statutory changes that may be needed to properly protect the public.      (6) The advisory committee, at the request of the secretary, may recommend rules in accordance with the administrative procedure act, chapter 34.05 RCW, relating to standards for appropriateness of orthotic and prosthetic care.                    (7) The advisory committee shall meet at the times and places designated by the secretary and hold meetings during the year as necessary to provide advice to the secretary. The committee may elect a chair and a vice-chair. A majority of the members currently serving constitute a quorum.                    (8) Each member of an advisory committee shall be reimbursed for travel expenses as authorized in RCW 43.03.050 and 43.03.060. In addition, members of the committees shall be compensated in accordance with RCW 43.03.240 when engaged in the authorized business of their committees.      (9) The secretary, members of advisory committees, or individuals acting on their behalf are immune from suit in any action, civil or criminal, based on any credentialing or disciplinary proceedings or other official acts performed in the course of their duties.      NEW SECTION. Sec. 8. (1) An applicant must file a written application on forms provided by the department showing to the satisfaction of the secretary, in consultation with the advisory committee, that the applicant meets the following requirements:      (a) The applicant possesses a baccalaureate degree with coursework appropriate for the profession approved by the secretary, or possesses equivalent training as determined by the secretary pursuant to subsections (3) and (5) of this section;                       (b) The applicant has the amount of formal training, including the hours of classroom education and clinical practice, in areas of study as the secretary deems necessary and appropriate;            (c) The applicant has completed a clinical internship or residency in the professional area for which a license is sought in accordance with the standards, guidelines, or procedures for clinical internships or residencies inside or outside the state as established by the secretary, or that are otherwise substantially equivalent to the standards commonly accepted in the fields of orthotics and prosthetics as determined by the secretary pursuant to subsections (3) and (5) of this section. The secretary must set the internship as at least one year.           (2) An applicant for licensure as either an orthotist or prosthetist must pass all written and practical examinations that are required and approved by the secretary in consultation with the advisory committee.                    (3) The standards and requirements for licensure established by the secretary must be substantially equal to the standards commonly accepted in the fields of orthotics and prosthetics.         (4) An applicant failing to make the required grade in the first examination may take up to three subsequent examinations as the applicant desires upon prepaying a fee, determined by the secretary under RCW 43.70.250, for each subsequent examination. Upon failing four examinations, the secretary may invalidate the original application and require remedial education before the person may take future examinations.     (5) The secretary may waive some of the education, examination, or experience requirements of this section if the secretary determines that the applicant meets alternative standards, established by the secretary through rule, that are substantially equivalent to the requirements in subsections (1) and (2) of this section.      NEW SECTION. Sec. 9. The secretary may grant a license without an examination for those applicants who have practiced full time for five of the six years prior to the effective date of this act and who have provided comprehensive orthotic or prosthetic, or orthotic and prosthetic, services in an established practice. This section applies only to those individuals who apply within one year of the effective date of this act.              NEW SECTION. Sec. 10. An applicant holding a license in another state or a territory of the United States may be licensed to practice in this state without examination if the secretary determines that the other jurisdiction's credentialing standards are substantially equivalent to the standards in this jurisdiction.                  NEW SECTION. Sec. 11. The uniform disciplinary act, chapter 18.130 RCW, governs the issuance and denial of licenses, unauthorized practice, and the discipline of persons licensed under this chapter. The secretary is the disciplining authority under this chapter.                       NEW SECTION. Sec. 12. This chapter is known and may be cited as the orthotics and prosthetics practice act.                   Sec. 13. RCW 18.130.040 and 1996 c 200 s 32 and 1996 c 81 s 5 are each reenacted and amended to read as follows:       (1) This chapter applies only to the secretary and the boards and commissions having jurisdiction in relation to the professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.                       (2)(a) The secretary has authority under this chapter in relation to the following professions:           (i) Dispensing opticians licensed under chapter 18.34 RCW;      (ii) Naturopaths licensed under chapter 18.36A RCW;          (iii) Midwives licensed under chapter 18.50 RCW;               (iv) Ocularists licensed under chapter 18.55 RCW;             (v) Massage operators and businesses licensed under chapter 18.108 RCW;        (vi) Dental hygienists licensed under chapter 18.29 RCW;            (vii) Acupuncturists licensed under chapter 18.06 RCW;      (viii) Radiologic technologists certified and X-ray technicians registered under chapter 18.84 RCW;         (ix) Respiratory care practitioners certified under chapter 18.89 RCW;                 (x) Persons registered or certified under chapter 18.19 RCW;          (xi) Persons registered as nursing pool operators under chapter 18.52C RCW;   (xii) Nursing assistants registered or certified under chapter 18.79 RCW;            (xiii) Health care assistants certified under chapter 18.135 RCW;         (xiv) Dietitians and nutritionists certified under chapter 18.138 RCW;                 (xv) Sex offender treatment providers certified under chapter 18.155 RCW;           (xvi) Persons licensed and certified under chapter 18.73 RCW or RCW 18.71.205;      (xvii) Persons registered as adult family home providers and resident managers under RCW 18.48.020; ((and))                 (xviii) Denturists licensed under chapter 18.30 RCW; and       (xix) Orthotists and prosthetists licensed under chapter 18.-- RCW (sections 2 through 12 of this act).                    (b) The boards and commissions having authority under this chapter are as follows:       (i) The podiatric medical board as established in chapter 18.22 RCW;               (ii) The chiropractic quality assurance commission as established in chapter 18.25 RCW;      (iii) The dental quality assurance commission as established in chapter 18.32 RCW;           (iv) The board of hearing and speech as established in chapter 18.35 RCW;               (v) The board of examiners for nursing home administrators as established in chapter 18.52 RCW;      (vi) The optometry board as established in chapter 18.54 RCW governing licenses issued under chapter 18.53 RCW;      (vii) The board of osteopathic medicine and surgery as established in chapter 18.57 RCW governing licenses issued under chapters 18.57 and 18.57A RCW;        (viii) The board of pharmacy as established in chapter 18.64 RCW governing licenses issued under chapters 18.64 and 18.64A RCW;        (ix) The medical quality assurance commission as established in chapter 18.71 RCW governing licenses and registrations issued under chapters 18.71 and 18.71A RCW;       (x) The board of physical therapy as established in chapter 18.74 RCW;      (xi) The board of occupational therapy practice as established in chapter 18.59 RCW;        (xii) The nursing care quality assurance commission as established in chapter 18.79 RCW governing licenses issued under that chapter;               (xiii) The examining board of psychology and its disciplinary committee as established in chapter 18.83 RCW; and                (xiv) The veterinary board of governors as established in chapter 18.92 RCW.               (3) In addition to the authority to discipline license holders, the disciplining authority has the authority to grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered pursuant to RCW 18.130.160 by the disciplining authority.      (4) All disciplining authorities shall adopt procedures to ensure substantially consistent application of this chapter, the Uniform Disciplinary Act, among the disciplining authorities listed in subsection (2) of this section.       NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.      NEW SECTION. Sec. 15. Sections 2 through 12 of this act constitute a new chapter in Title 18 RCW.            NEW SECTION. Sec. 16. Sections 1 through 5 and 8 through 12 of this act take effect December 1, 1998."      Correct the title accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Deccio moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5715.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Deccio that the Senate do concur in the House amendment to Substitute Senate Bill No. 5715.

      The motion by Senator Deccio carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5715.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5715, as amended by the House.

ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5715, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 1; Excused, 5.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wood and Zarelli - 43.            Absent: Senator Wojahn - 1.                 Excused: Senators Fraser, Hargrove, McCaslin, Snyder and Spanel - 5.      SUBSTITUTE SENATE BILL NO. 5715, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5628 and the pending House amendment on page 2, line 9, deferred earlier today.

RULING BY THE PRESIDENT


      President Owen: “In ruling upon the point of order raised by Senator Sheldon, the President finds that Substitute Senate Bill No. 5628 is a measure which authorizes the Utilities and Transportation Commission to exempt electric and natural gas utilities from securities filing requirements under certain conditions.

      “The House amendment on page 2, line 9, would permit natural gas and electric companies to offer banded rates to residential customers.

      “The President, therefore, finds that the proposed amendment does change the scope and object of the bill and the point of order is well taken.”


      The House amendment on page 2, line 9, to Substitute Senate Bill No. 5628 was ruled out of order.


MOTION


      On motion of Senator Finkbeiner, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5628 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 9, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5003 with the following amendment(s):

      On page 1, after line 13, insert the following:        "Sec. 2. RCW 84.64.320 and 1993 c 310 s 2 are each amended to read as follows:      The county legislative authority may dispose of tax foreclosed property by private negotiation, without a call for bids, for not less than the principal amount of the unpaid taxes in any of the following cases: (1) When the sale is to any governmental agency and for public purposes; (2) when the county legislative authority determines that it is not practical to build on the property due to the physical characteristics of the property or legal restrictions on construction activities on the property; ((or)) (3) when the property has an assessed value of less than five hundred dollars and the property is sold to an adjoining landowner; or (4) when no acceptable bids were received at the attempted public auction of the property, if the sale is made within six months from the date of the attempted public auction."      Renumber the remaining section consecutively and correct the title.,                    and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator West moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5003.

      Debate ensued.



POINT OF INQUIRY


      Senator Fairley: “Senator West, as you may know, I own a couple of farms--or we own a couple of farms-- and so I am wondering. It says, 'negotiate sale to adjoining land owners.' A couple of times in our county, we have had both land owners want the adjoining land. How do they decide which one gets it?”

      Senator West: “By negotiation amongst the land owners that would--”

      Senator Fairley: “So, do they get to--like--bid for it or do they--”

      Senator West: “I would expect that it would be a negotiated bid amongst the adjacent land owners on either side of the land. Typically, Senator, these would be very small parcels that are old right-of-ways that have been--or very small parcels that were taken for tax purposes many, many years ago. It would be just adjacent.”

      Senator Fairley: “Well, in eastern Washington, some of that land--it could involve more than it would in urban areas, so sometimes it isn't all that small a parcel and I worry about how we arrive at which landowner gets it.”

      Senator West: “I believe that would be through negotiations.”

      The President declared the question before the Senate to be the motion by Senator West that the Senate do concur in the House amendment to Substitute Senate Bill No. 5003.

      The motion by Senator West carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5003.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5003, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5003, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2.        SUBSTITUTE SENATE BILL NO. 5003, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION FOR IMMEDIATE RECONSIDERATION


      Having voted on the prevailing side, Senator Johnson moved to immediately reconsider the vote by which Substitute Senate Bill No. 5003, as amended by the House, passed the Senate.

      The President declared the question before the Senate to be the motion by Senator Johnson to immediately reconsider the vote by which Substitute Senate Bill No. 5003, as amended by the House, passed the Senate.

      The motion for reconsideration of Substitute Senate Bill No. 5003, as amended by the House, carried.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5003, as amended by the House on reconsideration.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5003, as amended by the House on reconsideration, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Absent: Senator Deccio - 1.   Excused: Senators McCaslin and Snyder - 2.        SUBSTITUTE SENATE BILL NO. 5003, as amended by the House on reconsideration, 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.


NOTICE FOR RECONSIDERATION


      Having voted on the prevailing side, Senator Heavey served notice that he would move to reconsider the vote by which Engrossed Senate Bill No. 5514 passed the Senate earlier today.


PARLIAMENTARY INQUIRY


      Senator Swanson: “A point of parliamentary inquiry. I think I am a little bit confused on Substitute Senate Bill No. 5003. Senator Johnson voted to immediately reconsider and then we called a roll call vote. Would you please explain that to me?”


REPLY BY THE PRESIDENT


      President Owen: “Senator Johnson moved to immediately reconsider. We took a voice vote as to whether or not we should immediately reconsider. The voice vote passed and we called for final passage on the bill as required by the motion to reconsider and you voted to pass it again.”


MESSAGE FROM THE HOUSE

April 9, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5077 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature declares that it is the policy of the state of Washington to require all state agencies that have pest control responsibilities to follow the principles of integrated pest management.         NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise:        (1) "Integrated pest management" means a coordinated decision-making and action process that uses the most appropriate pest control methods and strategy in an environmentally and economically sound manner to meet agency programmatic pest management objectives. The elements of integrated pest management include:         (a) Preventing pest problems;                 (b) Monitoring for the presence of pests and pest damage;                   (c) Establishing the density of the pest population, that may be set at zero, that can be tolerated or correlated with a damage level sufficient to warrant treatment of the problem based on health, public safety, economic, or aesthetic thresholds;      (d) Treating pest problems to reduce populations below those levels established by damage thresholds using strategies that may include biological, cultural, mechanical, and chemical control methods and that must consider human health, ecological impact, feasibility, and cost-effectiveness; and         (e) Evaluating the effects and efficacy of pest treatments.     (2) "Pest" means, but is not limited to, any insect, rodent, nematode, snail, slug, weed, and any form of plant or animal life or virus, except virus, bacteria, or other microorganisms on or in a living person or other animal or in or on processed food or beverages or pharmaceuticals, which is normally considered to be a pest, or which the director of the department of agriculture may declare to be a pest.                    NEW SECTION. Sec. 3. Each of the following state agencies or institutions shall implement integrated pest management practices when carrying out the agency's or institution's duties related to pest control:                 (1) The department of agriculture;          (2) The state noxious weed control board;      (3) The department of ecology;              (4) The department of fish and wildlife;                 (5) The department of transportation;      (6) The parks and recreation commission;              (7) The department of natural resources;                (8) The department of corrections;      (9) The department of general administration; and                 (10) Each state institution of higher education, for the institution's own building and grounds maintenance.              NEW SECTION. Sec. 4. (1) A state agency or institution listed in section 3 of this act shall provide integrated pest management training for employees responsible for pest management. The training programs shall be developed in cooperation with the interagency integrated pest management coordinating committee created under section 5 of this act.      (2) A state agency or institution listed in section 3 of this act shall designate an integrated pest management coordinator and the department of labor and industries and the office of the superintendent of public instruction shall each designate one representative to serve on the committee established in section 5 of this act.                   NEW SECTION. Sec. 5. (1) The interagency integrated pest management coordinating committee is created. The committee is composed of the integrated pest management coordinator from each agency or institution listed under section 3 of this act and the representatives designated under section 4 of this act. The coordinator from the department of agriculture shall serve as chair of the committee.                  (2) The interagency integrated pest management coordinating committee shall share information among the state agencies and institutions and facilitate interagency coordination.               (3) The interagency integrated pest management coordinating committee shall meet at least two times a year. All meetings of the committee must be open to the public. The committee shall give public notice of each meeting.          (4) By November 30th of each odd-numbered year up to and including November 30th, 2001, the department of agriculture, with the advice of the interagency integrated pest management coordinating committee, shall prepare a report on the progress of integrated pest management programs. The report is to be made available through the state library and placed on the legislative alert list.      NEW SECTION. Sec. 6. If specific funding for the purposes of sections 3, 4, and 5 of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, sections 3, 4, and 5 of this act are null and void.            NEW SECTION. Sec. 7. Sections 1 through 5 of this act constitute a new chapter in Title 17 RCW."               Correct the title.,                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Morton moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5077.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton that the Senate do concur in the House amendment to Substitute Senate Bill No. 5077.

      The motion by Senator Morton carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5077.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5077, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5077, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 35; Nays, 12; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Johnson, Long, Loveland, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 35.       Voting nay: Senators Brown, Fairley, Fraser, Jacobsen, Kline, Kohl, McAuliffe, Patterson, Prentice, Swanson, Thibaudeau and Wojahn - 12.                    Excused: Senators McCaslin and Snyder - 2.      SUBSTITUTE SENATE BILL NO. 5077, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


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


MOTION


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


SENATE RESOLUTION 1997-8646


By Senators Kline, Bauer, Patterson, McAuliffe, Kohl, Swanson and Wojahn


      WHEREAS, Children are the cornerstone of society’s hope for a healthy, prosperous future; and

      WHEREAS, The quality of our children’s future is directly dependent on the nurturing efforts of parents, teachers, and caring adults; and

      WHEREAS, When Susan Smith Stephens heard that students at Seattle’s Martin Luther King Jr. Elementary School had run out of construction paper for their art projects, she opened a three hundred and fifty dollars a month art supply account for the school; and

      WHEREAS, When she learned that a kindergarten class was overcrowded, she contributed the money needed to hire a teaching assistant to help; and

      WHEREAS, It is important to teach children how making wise decisions now can pay dividends well into the future; and

      WHEREAS, Susan Smith Stephens is doing just that by amassing a $25,000 investment fund for about eight hundred fifty kindergartners currently enrolled in several Seattle Public Schools; and

      WHEREAS, The program, known as the Seattle Schools Learning Incentive for Children in Kindergarten, will distribute the proceeds of that fund to any of the eight hundred fifty who eventually graduate from the Seattle Public Schools system; and

      WHEREAS, Martin Luther King Jr. Elementary School Principal Euhania Hairston and veteran Seattle Public Schools Counselor Mary Browne have been instrumental with Stephens in furthering the program’s goals and its attempt to ensure that future kindergartners will also share in its incentives; and

      WHEREAS, The three together have backed up their faith in the public school system with their actions on behalf of children;

      NOW, THEREFORE, BE IT RESOLVED, That the members of the Washington State Senate do hereby honor Susan Smith Stephens, Euhania Hairston and Mary Browne for their caring, sensitive support of children and their unselfish devotion to the health of the public schools; and

      BE IT FURTHER RESOLVED, That we do hereby urge all citizens of the state of Washington to join us in so honoring Susan Smith Stephens, Euhania Hairston and Mary Browne for their efforts on our children’s behalf; and that the Secretary of the Senate do hereby immediately transmit a copy of this resolution to them.

 

      Senators Kline, Prentice, McAuliffe, Hochstatter and Franklin spoke to Senate Resolution 1997-8646.


INTRODUCTION OF SPECIAL GUESTS


      The President welcomed and introduced Susan Smith Stephens, Euhania Hairston and Mary Browne who were seated in the gallery.


MOTION


      At 12:02 p.m., on motion of Senator Johnson, the Senate recessed until 1:30 p.m.


      The Senate was called to order at 1:30 p.m. by President Owen.


MOTION


      On motion of Senator Johnson, the Senate reverted to the sixth order of business.


SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS


MOTION


      On motion of Senator Long, Gubernatorial Appointment No. 9134, Denisse F. Barry, as a member of the State Hospital, Eastern Washington Advisory Board, was confirmed.


APPOINTMENT OF DENISSE F. BARRY


      The Secretary called the roll and the appointment was confirmed by the following vote: Yeas, 37; Nays, 1; Absent, 9; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Brown, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Thibaudeau, Winsley, Wojahn and Wood - 37.                   Voting nay: Senator Benton - 1.                      Absent: Senators Deccio, Kohl, McDonald, Morton, Newhouse, Prince, Swecker, West and Zarelli - 9.      Excused: Senators McCaslin and Snyder - 2.                         MOTION


      On motion of Senator Long, Gubernatorial Appointment No. 9207, Dr. Mark E. Soelling, as a member of the State Hospital, Western Washington Advisory Board, was confirmed.


APPOINTMENT OF DR. MARK E. SOELLING


      The Secretary called the roll and the appointment was confirmed by the following vote: Yeas, 40; Nays, 1; Absent, 6; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Thibaudeau, West, Winsley, Wojahn and Wood - 40.      Voting nay: Senator Benton - 1.            Absent: Senators Hargrove, McDonald, Newhouse, Prince, Swecker and Zarelli - 6.      Excused: Senators McCaslin and Snyder - 2.                         MOTION


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


MESSAGE FROM THE GOVERNOR

April 19, 1997

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON



Ladies and Gentlemen:

      I have the honor to advise you that on April 19, 1997, Governor Locke approved the following Senate Bills entitled:

      Substitute Senate Bill No. 5060

      Relating to clarifying driving statutes.

      Substitute Senate Bill No 5112

      Relating to interest on property tax refunds.

      Substitute Senate Bill No. 5118

      Relating to truancy petitions.

      Senate Bill No. 5140

      Relating to community placement of offenders.

      Engrossed Senate Bill No. 5220

      Relating to minimum benefits in the Washington state patrol retirement system.

      Senate Bill No. 5221

      Relating to eligibility for survivor benefits.

      Senate Bill No. 5243

      Relating to exempting disabled veterans from reservation fees for state parks.

      Substitute Senate Bill No. 5290

      Relating to the liquor control board construction and maintenance account.

      Substitute Senate Bill No. 5360

      Relating to the renewal of commercial fishery and salmon charter licenses.

      Senate Bill No. 5380

      Relating to boundary review board members' per diem.

      Senate Bill No. 5422

      Relating to professional gambling definitions.

      Senate Bill No. 5448

      Relating to the merger of the health professions account and the medical disciplinary account.

      Substitute Senate Bill No. 5470

      Relating to passing school buses.

      Senate Bill No. 5486

      Relating to eligibility for the rural arterial program.

      Senate Bill No. 5507

      Relating to traffic safety education for juvenile agricultural drivers.

      Substitute Senate Bill No. 5509

      Relating to definitions regarding offenders.

      Substitute Senate Bill No. 5513

      Relating to exceptions from vessel registration.

      Substitute Senate Bill No. 5529

      Relating to the requiring a landlord to provide a written receipt if requested.

      Senate Bill No. 5732

      Relating to delivery of the cancellation notice for an insurance policy.

      Substitute Senate Bill No. 5755

      Relating to service of process in landlord-tenant disputes.

      Engrossed Substitute Senate Bill No. 5762

      Relating to benefiting the equine industry by parimutuel satellite and simulcast wagering restricted to live racing facilities and providing lottery games.

      Engrossed Senate Bill No. 5774

      Relating to pro tempore judges.

      Senate Bill No. 5809

      Relating to the financial condition of unauthorized insurers.

      Senate Bill No. 6007

      Relating to the limitation on the operating expenses of mutual savings banks.

Sincerely,

EVERETT H. BILLINGSLEA, General Counsel


MESSAGE FROM THE SECRETARY OF STATE


The Honorable Brad Owen

 President of the Senate

Legislature of the State of Washington

Olympia, Washington 98504


Dear President Owen:

      We respectfully transmit for your consideration the following bills which have been partially vetoed by the Governor, together with the official veto message setting forth his objections to the sections or items of the bills, as required by Article III, section 12, of the Washington

State Constitution.



                           Section 1, of Substitute Senate Bill No. 5191, the remainder of which

                           has been designated Chapter 71, Laws of 1997 Regular Session.


                           Section 2, of Senate Bill No. 5925, the reminder of which has been

                           designated Chapter 90, Laws of 1997 Regular Session.

 

IN TESTIMONY WHEREOF, I have hereunto set my hand

                                                                   and affixed the Seal of the state of Washington,

                                                                   this 22nd day of April, 1997.

      (Seal)                                                                                                                                                                                  RALPH MUNRO

Secretary of State


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SUBSTITUTE SENATE BILL NO. 5191


April 19, 1997

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 1, Substitute Senate Bill No. 5191 entitled:

"AN ACT Relating to crimes involving methamphetamine;"

      This legislation increases the penalties for delivering, manufacturing, and possession with intent to deliver or manufacture methamphetamine, and the possession of ephedrine or pseudoephedrine with the intent to manufacture methamphetamine.

      I wholeheartedly agree with sections 2 and 3 of this legislation which require that the first $3,000 of fine money collected be given to the law enforcement agency responsible for cleaning up methamphetamine manufacturing laboratories or sites. Because the manufacture of methamphetamine involves toxic and explosive chemicals, the cleanup costs for these sites are substantial. The affected law enforcement agencies should be reimbursed through fines collected from the responsible offenders, as Substitute Senate Bill No. 5191 provides.

      Section 1 of Substitute Senate Bill No. 5191 would extend the "Three Strikes" law - which mandates life imprisonment on the third offense - to simple addicts as well as methamphetamine manufacturers and distributors. I do not believe that the "Three Strikes" law is likely to deter simple drug addicts. Rather, we need to address the problems that lead our youth into drugs in the first place.

      I share the Legislature's concern with the very serious problem of increased methamphetamine abuse in Washington. This legislation brings to our attention the dangers of the growing use of methamphetamine. We must take immediate steps to address the problem in an effective manner, especially to prevent our youth from becoming addicted to this and other drugs. The problem must be attacked from every direction, all at once. This will take political will, strong law enforcement and an educated public.

      However, this legislation would represent a fundamental shift in our criminal jurisprudence. It would have, for the first time, extended the "Three Strikes" law to non-violent offenders. That is a step that cannot be taken lightly. If one category of non-violent drug offenses is added, what would be next? How would we draw the line between non-violent crimes that should or should not be "strike" crimes?

      Many simple drug addicts sell small amounts of drugs to feed their habit. Sending methamphetamine addicts to prison for life on the third "strike" - consisting of the crime of possession with the intent to sell even small amounts of methamphetamine - would divert more and more of the state's scarce resources from prevention efforts that provide a more immediate and effective response to the problem.

      For these reasons I have vetoed section 1 of Substitute Senate Bill No. 5191. With the exception of section 1, Substitute Senate Bill No. 5191 is approved.

Respectfully submitted,

GARY LOCKE, Governor

MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SENATE BILL NO. 5925

April 19, 1997

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 2, Senate Bill No. 5925 entitled:

"AN ACT Relating to certified instructional staff salaries;"

      The emergency clause in section 2 is not needed. Senate Bill No. 5925 codifies the current state policy on credits recognized for state funding. The bill will not affect state funding or school district reporting for the 1996-97 school year. Without the emergency clause, the bill will take effect before September 1, 1997, the beginning of the 1997-98 school year.

      For these reasons, I have vetoed section 2 of Senate Bill No. 5925. With the exception of section 2, I am approving Senate Bill No. 5925.


Respectfully submitted,

GARY LOCKE, Governor

MOTION


      On motion of Senator Johnson, the Partial Veto Messages on Substitute Senate Bill No. 5191 and Senate Bill No. 5925 were held on the desk.


MOTION


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


MESSAGES FROM THE HOUSE


April 21, 1997

MR. PRESIDENT:

      The Speaker has signed:

      SENATE BILL NO. 5402,

      SENATE BILL NO. 5559,

      SUBSTITUTE SENATE BILL NO. 5737,

      SENATE BILL NO. 5811,

      SUBSTITUTE SENATE BILL NO. 5845,

      SENATE BILL NO. 5938,

      SUBSTITUTE SENATE BILL NO. 6045,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6068,

      ENGROSSED SENATE BILL NO. 6072,

      SENATE CONCURRENT RESOLUTION NO. 8415, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 21, 1997


MR. PRESIDENT:

      The Speaker has signed SUBSTITUTE SENATE BILL NO. 6062, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 21, 1997


MR. PRESIDENT:

      The House concurred in the Senate amendment (s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1327 and passed the bill as amended by the Senate: 

TIMOTHY A. MARTIN, Chief Clerk


April 21, 1997


MR. PRESIDENT:

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

      SUBSTITUTE HOUSE BILL NO. 1780,

      SUBSTITUTE HOUSE BILL NO. 1791,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1792,

      SECOND SUBSTITUTE HOUSE BILL NO. 1817,

      SUBSTITUTE HOUSE BILL NO. 1865,

      SUBSTITUTE HOUSE BILL NO. 1875,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1899,

      SUBSTITUTE HOUSE BILL NO. 1903,

      HOUSE BILL NO. 1922,

      SUBSTITUTE HOUSE BILL NO. 1936,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2013,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2042,

      SUBSTITUTE HOUSE BILL NO. 2059,

      SECOND SUBSTITUTE HOUSE BILL NO. 2080,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2128,

      HOUSE BILL NO. 2165,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2170,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2193.

TIMOTHY A. MARTIN, Chief Clerk


APPOINTMENT OF CONFERENCE COMMITTEE ON SENATE BILL NO. 5034.


      The President appointed as members of the Conference Committee on Senate Bill No. 5034, and the House amendment(s) thereon: Senators Schow, Heavey and Oke.

MOTION


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


MESSAGE FROM THE HOUSE

April 14, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5750 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     NEW SECTION. Sec. 1. A new section is added to chapter 48.18 RCW to read as follows:               (1) It is the intent of the legislature to assist the purchasers of commercial property casualty insurance by allowing policies to be issued more expeditiously and provide a more competitive market for forms.        (2) Commercial property casualty policies may be issued prior to filing the forms. All commercial property casualty forms shall be filed with the commissioner within thirty days after an insurer issues any policy using them.      (3) If, within thirty days after a commercial property casualty form has been filed, the commissioner finds that the form does not meet the requirements of this chapter, the commissioner shall disapprove the form and give notice to the insurer or rating organization that made the filing, specifying how the form fails to meet the requirements and stating when, within a reasonable period thereafter, the form shall be deemed no longer effective. The commissioner may extend the time for review another fifteen days by giving notice to the insurer prior to the expiration of the original thirty-day period.            (4) Upon a final determination of a disapproval of a policy form under subsection (3) of this section, the insurer shall amend any previously issued disapproved form by endorsement to comply with the commissioner’s disapproval.                   (5) For purposes of this section, “commercial property casualty” means insurance pertaining to a business, profession, or occupation for the lines of property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060, or 48.11.070.            (6) Except as provided in subsection (4) of this section, the disapproval shall not affect any contract made or issued prior to the expiration of the period set forth in the notice of disapproval.                      (7) In the event a hearing is held on the actions of the commissioner under subsection (3) of this section, the burden of proof shall be on the commissioner.      NEW SECTION. Sec. 2. A new section is added to chapter 48.19 RCW to read as follows:              (1) It is the intent of the legislature to assist the purchasers of commercial property casualty insurance by allowing policies to be issued more expeditiously and provide a more competitive market for rates.        (2) Notwithstanding the provisions of RCW 48.19.040(1), commercial property casualty policies may be issued prior to filing the rates. All commercial property casualty rates shall be filed with the commissioner within thirty days after an insurer issues any policy using them.      (3) If, within thirty days after a commercial property casualty rate has been filed, the commissioner finds that the rate does not meet the requirements of this chapter, the commissioner shall disapprove the filing and give notice to the insurer or rating organization that made the filing, specifying how the filing fails to meet the requirements and stating when, within a reasonable period thereafter, the filing shall be deemed no longer effective. The commissioner may extend the time for review another fifteen days by giving notice to the insurer prior to the expiration of the original thirty-day period.               (4) Upon a final determination of a disapproval of a rate filing under subsection (3) of this section, the insurer shall issue an endorsement changing the rate to comply with the commissioner’s disapproval from the date the rate is no longer effective.            (5) For purposes of this section, “commercial property casualty” means insurance pertaining to a business, profession, or occupation for the lines of property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060, or 48.11.070.             (6) Except as provided in subsection (4) of this section, the disapproval shall not affect any contract made or issued prior to the expiration of the period set forth in the notice of disapproval.             (7) In the event a hearing is held on the actions of the commissioner under subsection (3) of this section, the burden of proof shall be on the commissioner.           Sec. 3. RCW 48.18.100 and 1989 c 25 s 1 are each amended to read as follows:              (1) No insurance policy form other than surety bond forms, forms exempt under section 1 of this act, or application form where written application is required and is to be attached to the policy, or printed life or disability rider or endorsement form shall be issued, delivered, or used unless it has been filed with and approved by the commissioner. This section shall not apply to policies, riders or endorsements of unique character designed for and used with relation to insurance upon a particular subject.              (2) Every such filing containing a certification, in a form approved by the commissioner, by either the chief executive officer of the insurer or by an actuary who is a member of the American academy of actuaries, attesting that the filing complies with Title 48 RCW and Title 284 of the Washington Administrative Code, may be used by such insurer immediately after filing with the commissioner. The commissioner may order an insurer to cease using a certified form upon the grounds set forth in RCW 48.18.110. This subsection shall not apply to certain types of policy forms designated by the commissioner by rule.               (3) Except as provided in section 1 of this act, every filing that does not contain a certification pursuant to subsection (2) of this section shall be made not less than thirty days in advance of any such issuance, delivery, or use. At the expiration of such thirty days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the commissioner. The commissioner may extend by not more than an additional fifteen days the period within which he or she may so affirmatively approve or disapprove any such form, by giving notice of such extension before expiration of the initial thirty-day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved. The commissioner may withdraw any such approval at any time for cause. By approval of any such form for immediate use, the commissioner may waive any unexpired portion of such initial thirty-day waiting period.                   (4) The commissioner's order disapproving any such form or withdrawing a previous approval shall state the grounds therefor.               (5) No such form shall knowingly be so issued or delivered as to which the commissioner's approval does not then exist.               (6) The commissioner may, by order, exempt from the requirements of this section for so long as he or she deems proper, any insurance document or form or type thereof as specified in such order, to which in his or her opinion this section may not practicably be applied, or the filing and approval of which are, in his or her opinion, not desirable or necessary for the protection of the public.    (7) Every member or subscriber to a rating organization shall adhere to the form filings made on its behalf by the organization. Deviations from such organization are permitted only when filed with the commissioner in accordance with this chapter.           Sec. 4. RCW 48.19.060 and 1989 c 25 s 5 are each amended to read as follows:                 (1) The commissioner shall review a filing as soon as reasonably possible after made, to determine whether it meets the requirements of this chapter.      (2) Except as provided in RCW 48.19.070 and section 2 of this act:     (a) No such filing shall become effective within thirty days after the date of filing with the commissioner, which period may be extended by the commissioner for an additional period not to exceed fifteen days if he or she gives notice within such waiting period to the insurer or rating organization which made the filing that he or she needs such additional time for the consideration of the filing. The commissioner may, upon application and for cause shown, waive such waiting period or part thereof as to a filing that he or she has not disapproved.                   (b) A filing shall be deemed to meet the requirements of this chapter unless disapproved by the commissioner within the waiting period or any extension thereof.”                   Correct the title accordingly.,      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Winsley moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5750.


POINT OF ORDER


      Senator Fairley: “Thank you Mr. President. I raise the point of order that the House amendment to Substitute Senate Bill No. 5750 changes the scope and object of the bill. The underlying bill addressed the time periods for filing of rates and forms by insurers and consequences of timely or untimely filing. The House amendment redefines what commercial property casualty insurance is and requires insurers to change forms of rates that have been disapproved by the commissioner. Accordingly, I say that the House amendment changes the scope and object of the bill.”

      Further debate ensued.


MOTION


      On motion of Senator Johnson, further consideration of Substitute Senate Bill No. 5750 was deferred.


MESSAGE FROM THE HOUSE

April 10, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5741 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 64.34.410 and 1992 c 220 s 21 are each amended to read as follows:         (1) A public offering statement shall contain the following information:              (a) The name and address of the condominium;    (b) The name and address of the declarant;       (c) The name and address of the management company, if any;      (d) The relationship of the management company to the declarant, if any;            (e) A list of up to the five most recent condominium projects completed by the declarant or an affiliate of the declarant within the past five years, including the names of the condominiums, their addresses, and the number of existing units in each. For the purpose of this section, a condominium is "completed" when any one unit therein has been rented or sold;    (f) The nature of the interest being offered for sale;               (g) A brief description of the permitted uses and use restrictions pertaining to the units and the common elements;               (h) A brief description of the restrictions, if any, on the renting or leasing of units by the declarant or other unit owners, together with the rights, if any, of the declarant to rent or lease at least a majority of units;                  (i) The number of existing units in the condominium and the maximum number of units that may be added to the condominium;    (((i))) (j) A list of the principal common amenities in the condominium which materially affect the value of the condominium and those that will or may be added to the condominium;                     (((j))) (k) A list of the limited common elements assigned to the units being offered for sale;                (((k))) (l) The identification of any real property not in the condominium, the owner of which has access to any of the common elements, and a description of the terms of such access;         (((l))) (m) The identification of any real property not in the condominium to which unit owners have access and a description of the terms of such access;                  (((m))) (n) The status of construction of the units and common elements, including estimated dates of completion if not completed;              (((n))) (o) The estimated current common expense liability for the units being offered;      (((o))) (p) An estimate of any payment with respect to the common expense liability for the units being offered which will be due at closing;                 (((p))) (q) The estimated current amount and purpose of any fees not included in the common expenses and charged by the declarant or the association for the use of any of the common elements;      (((q))) (r) Any assessments which have been agreed to or are known to the declarant and which, if not paid, may constitute a lien against any units or common elements in favor of any governmental agency;         (((r))) (s) The identification of any parts of the condominium, other than the units, which any individual owner will have the responsibility for maintaining;            (((s))) (t) If the condominium involves a conversion condominium, the information required by RCW 64.34.415;                    (((t))) (u) Whether timesharing is restricted or prohibited, and if restricted, a general description of such restrictions;          (((u))) (v) A list of all development rights reserved to the declarant and all special declarant rights reserved to the declarant, together with the dates such rights must terminate, and a copy of or reference by recording number to any recorded transfer of a special declarant right;       (((v))) (w) A description of any material differences in terms of furnishings, fixtures, finishes, and equipment between any model unit available to the purchaser at the time the agreement for sale is executed and the unit being offered;         (((w))) (x) Any liens on real property to be conveyed to the association required to be disclosed pursuant to RCW 64.34.435(2)(b);            (((x))) (y) A list of any physical hazards known to the declarant which particularly affect the condominium or the immediate vicinity in which the condominium is located and which are not readily ascertainable by the purchaser;                  (((y))) (z) A brief description of any construction warranties to be provided to the purchaser;                (((z))) (aa) Any building code violation citations received by the declarant in connection with the condominium which have not been corrected;               (((aa))) (bb) A statement of any unsatisfied judgments or pending suits against the association, a statement of the status of any pending suits material to the condominium of which the declarant has actual knowledge, and a statement of any litigation brought by an owners' association, unit owner, or governmental entity in which the declarant or any affiliate of the declarant has been a defendant, arising out of the construction, sale, or administration of any condominium within the previous five years, together with the results thereof, if known;           (((bb))) (cc) Any rights of first refusal to lease or purchase any unit or any of the common elements;                  (((cc))) (dd) The extent to which the insurance provided by the association covers furnishings, fixtures, and equipment located in the unit;                   (((dd))) (ee) A notice which describes a purchaser's right to cancel the purchase agreement or extend the closing under RCW 64.34.420, including applicable time frames and procedures;          (((ee))) (ff) Any reports or statements required by RCW 64.34.415 or 64.34.440(6)(a). RCW 64.34.415 shall apply to the public offering statement of a condominium in connection with which a final certificate of occupancy was issued more than sixty calendar months prior to the preparation of the public offering statement whether or not the condominium is a conversion condominium as defined in RCW 64.34.020(10);      (((ff))) (gg) A list of the documents which the prospective purchaser is entitled to receive from the declarant before the rescission period commences;       (((gg))) (hh) A notice which states: A purchaser may not rely on any representation or express warranty unless it is contained in the public offering statement or made in writing signed by the declarant or by any person identified in the public offering statement as the declarant's agent;                (((hh))) (ii) A notice which states: This public offering statement is only a summary of some of the significant aspects of purchasing a unit in this condominium and the condominium documents are complex, contain other important information, and create binding legal obligations. You should consider seeking the assistance of legal counsel; ((and             (ii))) (jj) Any other information and cross-references which the declarant believes will be helpful in describing the condominium to the recipients of the public offering statement, all of which may be included or not included at the option of the declarant; and          (kk) A notice that addresses compliance or noncompliance with the housing for older persons act of 1995, P.L. 104-76, as enacted on December 28, 1995.                   (2) The public offering statement shall include copies of each of the following documents: The declaration, the survey map and plans, the articles of incorporation of the association, bylaws of the association, rules and regulations, if any, current or proposed budget for the association, and the balance sheet of the association current within ninety days if assessments have been collected for ninety days or more.      If any of the foregoing documents listed in this subsection are not available because they have not been executed, adopted, or recorded, drafts of such documents shall be provided with the public offering statement, and, before closing the sale of a unit, the purchaser shall be given copies of any material changes between the draft of the proposed documents and the final documents.           (3) The disclosures required by subsection (1)(g), (((j))) (k), (((r))) (s), (((t))) (u), (((u))) (v), and (((bb))) (cc) of this section shall also contain a reference to specific sections in the condominium documents which further explain the information disclosed.         (4) The disclosures required by subsection (1)(((dd))) (ee), (((gg))) (hh), and (((hh))) (ii) of this section shall be located at the top of the first page of the public offering statement and be typed or printed in ten-point bold face type size.     (5) A declarant shall promptly amend the public offering statement to reflect any material change in the information required by this section.        Sec. 2. RCW 64.34.232 and 1992 c 220 s 10 are each amended to read as follows:              (1) A survey map and plans executed by the declarant shall be recorded simultaneously with, and contain cross-references by recording number to, the declaration and any amendments. The survey map and plans must be clear and legible and contain a certification by the person making the survey or the plans that all information required by this section is supplied. All plans filed shall be in such style, size, form and quality as shall be prescribed by the recording authority of the county where filed, and a copy shall be delivered to the county assessor.  (2) Each survey map shall show or state:               (a) The name of the condominium and a legal description and a survey of the land in the condominium and of any land that may be added to the condominium;               (b) The boundaries of all land not subject to development rights, or subject only to the development right to withdraw, and the location and dimensions of all existing buildings containing units on that land;        (c) The boundaries of any land subject to development rights, labeled "SUBJECT TO DEVELOPMENT RIGHTS SET FORTH IN THE DECLARATION"; any land that may be added to the condominium shall also be labeled "MAY BE ADDED TO THE CONDOMINIUM"; any land that may be withdrawn from the condominium shall also be labeled "MAY BE WITHDRAWN FROM THE CONDOMINIUM";      (d) The extent of any encroachments by or upon any portion of the condominium;      (e) To the extent feasible, the location and dimensions of all recorded easements serving or burdening any portion of the condominium and any unrecorded easements of which a surveyor knows or reasonably should have known, based on standard industry practices, while conducting the survey;                  (f) Subject to the provisions of subsection (8) of this section, the location and dimensions of any vertical unit boundaries not shown or projected on plans recorded ((pursuant to)) under subsection (4) of this section and that unit's identifying number;              (g) The location with reference to an established datum of any horizontal unit boundaries not shown or projected on plans recorded ((pursuant to)) under subsection (4) of this section and that unit's identifying number;                (h) The location and dimensions of any real property in which the unit owners will own only an estate for years, labeled as "leasehold real property";                   (i) The distance between any noncontiguous parcels of real property comprising the condominium;                   (j) The general location of any existing principal common amenities listed in a public offering statement ((pursuant to)) under RCW 64.34.410(1)(((i))) (j) and any limited common elements, including limited common element porches, balconies, patios, parking spaces, and storage facilities, but not including the other limited common elements described in RCW 64.34.204 (2) and (4);       (k) In the case of real property not subject to development rights, all other matters customarily shown on land surveys.                (3) A survey map may also show the intended location and dimensions of any contemplated improvement to be constructed anywhere within the condominium. Any contemplated improvement shown must be labeled either "MUST BE BUILT" or "NEED NOT BE BUILT."           (4) To the extent not shown or projected on the survey map, plans of the existing units must show or project:             (a) Subject to the provisions of subsection (8) of this section, the location and dimensions of the vertical boundaries of each unit, and that unit's identifying number;            (b) Any horizontal unit boundaries, with reference to an established datum, and that unit's identifying number; and             (c) Any units in which the declarant has reserved the right to create additional units or common elements under RCW 64.34.236(3), identified appropriately.                   (5) Unless the declaration provides otherwise, the horizontal boundaries of part of a unit located outside of a building have the same elevation as the horizontal boundaries of the inside part and in such case need not be depicted on the survey map and plans.           (6) Upon exercising any development right, the declarant shall record either a new survey map and plans necessary to conform to the requirements of subsections (1), (2), and (3) of this section or new certifications of a survey map and plans previously recorded if the documents otherwise conform to the requirements of those subsections.      (7) Any survey map, plan, or certification required by this section shall be made by a licensed surveyor.            (8) In showing or projecting the location and dimensions of the vertical boundaries of a unit under subsections (2)(f) and (4)(a) of this section, it is not necessary to show the thickness of the walls constituting the vertical boundaries or otherwise show the distance of those vertical boundaries either from the exterior surface of the building containing that unit or from adjacent vertical boundaries of other units if: (a) The walls are designated to be the vertical boundaries of that unit; (b) the unit is located within a building, the location and dimensions of the building having been shown on the survey map under subsection (2)(b) of this section; and (c) the graphic general location of the vertical boundaries are shown in relation to the exterior surfaces of that building and to the vertical boundaries of other units within that building.                 Sec. 3. RCW 49.60.222 and 1995 c 259 s 3 are each amended to read as follows:            (1) It is an unfair practice for any person, whether acting for himself, herself, or another, because of sex, marital status, race, creed, color, national origin, families with children status, the presence of any sensory, mental, or physical disability, or the use of a trained guide dog or service dog by a disabled person:           (a) To refuse to engage in a real estate transaction with a person;          (b) To discriminate against a person in the terms, conditions, or privileges of a real estate transaction or in the furnishing of facilities or services in connection therewith;         (c) To refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;            (d) To refuse to negotiate for a real estate transaction with a person;      (e) To represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to his or her attention, or to refuse to permit the person to inspect real property;         (f) To discriminate in the sale or rental, or to otherwise make unavailable or deny a dwelling, to any person; or to a person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or to any person associated with the person buying or renting;                    (g) To make, print, circulate, post, or mail, or cause to be so made or published a statement, advertisement, or sign, or to use a form of application for a real estate transaction, or to make a record or inquiry in connection with a prospective real estate transaction, which indicates, directly or indirectly, an intent to make a limitation, specification, or discrimination with respect thereto;                  (h) To offer, solicit, accept, use, or retain a listing of real property with the understanding that a person may be discriminated against in a real estate transaction or in the furnishing of facilities or services in connection therewith;         (i) To expel a person from occupancy of real property;         (j) To discriminate in the course of negotiating, executing, or financing a real estate transaction whether by mortgage, deed of trust, contract, or other instrument imposing a lien or other security in real property, or in negotiating or executing any item or service related thereto including issuance of title insurance, mortgage insurance, loan guarantee, or other aspect of the transaction. Nothing in this section shall limit the effect of RCW 49.60.176 relating to unfair practices in credit transactions; or            (k) To attempt to do any of the unfair practices defined in this section.    (2) For the purposes of this chapter discrimination based on the presence of any sensory, mental, or physical disability or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person includes:                       (a) A refusal to permit, at the expense of the disabled person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the dwelling, except that, in the case of a rental, the landlord may, where it is reasonable to do so, condition permission for a modification on the renter agreeing to restore the interior of the dwelling to the condition that existed before the modification, reasonable wear and tear excepted;                     (b) To refuse to make reasonable accommodation in rules, policies, practices, or services when such accommodations may be necessary to afford a person with the presence of any sensory, mental, or physical disability and/or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person equal opportunity to use and enjoy a dwelling; or                  (c) To fail to design and construct covered multifamily dwellings and premises in conformance with the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.) and all other applicable laws or regulations pertaining to access by persons with any sensory, mental, or physical disability or use of a trained guide dog or service dog. Whenever the requirements of applicable laws or regulations differ, the requirements which require greater accessibility for persons with any sensory, mental, or physical disability shall govern.                   Nothing in (a) or (b) of this subsection shall apply to: (i) A single-family house rented or leased by the owner if the owner does not own or have an interest in the proceeds of the rental or lease of more than three such single-family houses at one time, the rental or lease occurred without the use of a real estate broker or salesperson, as defined in RCW 18.85.010, and the rental or lease occurred without the publication, posting, or mailing of any advertisement, sign, or statement in violation of subsection (1)(g) of this section; or (ii) rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other if the owner maintains and occupies one of the rooms or units as his or her residence.           (3) Notwithstanding any other provision of this chapter, it shall not be an unfair practice or a denial of civil rights for any public or private educational institution to separate the sexes or give preference to or limit use of dormitories, residence halls, or other student housing to persons of one sex or to make distinctions on the basis of marital or families with children status.               (4) Except pursuant to subsection (2)(a) of this section, this section shall not be construed to require structural changes, modifications, or additions to make facilities accessible to a disabled person except as otherwise required by law. Nothing in this section affects the rights, responsibilities, and remedies of landlords and tenants pursuant to chapter 59.18 or 59.20 RCW, including the right to post and enforce reasonable rules of conduct and safety for all tenants and their guests, provided that chapters 59.18 and 59.20 RCW are only affected to the extent they are inconsistent with the nondiscrimination requirements of this chapter. Nothing in this section limits the applicability of any reasonable federal, state, or local restrictions regarding the maximum number of occupants permitted to occupy a dwelling.                     (5) Notwithstanding any other provision of this chapter, it shall not be an unfair practice for any public establishment providing for accommodations offered for the full enjoyment of transient guests as defined by RCW 9.91.010(1)(c) to make distinctions on the basis of families with children status. Nothing in this section shall limit the effect of RCW 49.60.215 relating to unfair practices in places of public accommodation.      (6) Nothing in this chapter prohibiting discrimination based on families with children status applies to housing for older persons as defined by the federal fair housing amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through (3), as amended by the housing for older persons act of 1995, P.L. 104-76, as enacted on December 28, 1995. Nothing in this chapter authorizes requirements for housing for older persons different than the requirements in the federal fair housing amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through (3), as amended by the housing for older persons act of 1995, P.L. 104-76, as enacted on December 28, 1995."                  Correct the title.,      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Winsley moved that the Senate do concur in the House amendment to Senate Bill No. 5741.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Winsley that the Senate do concur in the House amendment to Senate Bill No. 5741.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment to Senate Bill No. 5741.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5741, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5741, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 3; Excused, 2.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.                  Absent: Senators Bauer, Finkbeiner and Swecker - 3.          Excused: Senators McCaslin and Snyder - 2.      SENATE BILL NO. 5741, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Franklin, Senator Bauer was excused.


MESSAGE FROM THE HOUSE

April 10, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5079 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The purpose of this act is to encourage environmental permit program efficiency and pollution prevention through increased private sector participation in the preparation of wastewater discharge permits currently administered by the department of ecology. The legislature recognizes that pollution prevention can often be accomplished through cooperative partnerships between government and industry and through voluntary changes in industrial production methods. By using expertise available in the private sector, the permit preparation option provided in this act is intended to reduce the time required to issue wastewater discharge permits and better protect the water quality of the state.                       NEW SECTION. Sec. 2. A new section is added to chapter 90.48 RCW to read as follows:                  (1) Within fifteen days of receipt of an application for the issuance of a new permit or modification of an existing permit under RCW 90.48.160 or 90.48.260, the department shall determine whether it is likely that the permit will be processed within one hundred eighty days. If the department determines that a permit will not be processed within one hundred eighty days, the applicant shall be notified. Upon receipt of this notification, an applicant may choose to proceed with the draft permit preparation option in subsection (2) of this section.                  (2) Any person applying for the issuance of a new permit or modification of an existing permit under RCW 90.48.160 or 90.48.260 may submit an application with a draft permit and fact sheet if the department cannot process the permit within the timeline provided in subsection (1) of this section.                (3) The department shall approve or deny the permit proposal within forty-five days of submission if no public hearing is required, or within ninety days of submission if a public hearing is required. The department or the applicant may negotiate a permit proposal if both parties agree to a timeline. The department retains full authority under this chapter to approve, modify, or disapprove any draft permit or fact sheet submitted under this section.         (4) The department shall make available guidelines specifying the elements of a complete draft permit and fact sheet."      Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Morton moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5079.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton that the Senate do concur in the House amendment to Substitute Senate Bill No. 5079.

      The motion by Senator Morton carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5079.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5079, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5079, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 38; Nays, 4; Absent, 4; Excused, 3.

      Voting yea: Senators Anderson, Benton, Brown, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Long, Loveland, McAuliffe, Morton, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wood and Zarelli - 38.                       Voting nay: Senators Fairley, Kline, Kohl and Wojahn - 4.             Absent: Senators Deccio, Finkbeiner, McDonald and Newhouse - 4.      Excused: Senators Bauer, McCaslin and Snyder - 3.            SUBSTITUTE SENATE BILL NO. 5079, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Swecker, Senators Deccio and Strannigan were excused.


MESSAGE FROM THE HOUSE

April 9, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5173 with the following amendment(s):

      On page 40, line 34, strike "beer and wine" and insert "limited service"               On page 40, line 35, after "license" strike "((in combination with a class E license))" and insert "in combination with ((a class E))an off-premises beer and wine retailer's license"             On page 35, after line 33, insert the following:         "(4) The board may issue a caterer's endorsement to the license under this section to allow the licensee to remove from the liquor stocks at the licensed premises, for use as liquor for sale and service at special occasion locations at a specified date and place not currently licensed by the board. The privilege of selling and serving liquor under the endorsement is limited to members and guests of a society or organization as defined in RCW 66.24.375. Cost of the endorsement is three hundred fifty dollars.      (a) The holder of this license with catering endorsement shall, if requested by the board, notify the board or its designee of the date, time, place, and location of any catered event. Upon request, the licensee shall provide to the board all necessary or requested information concerning the society or organization that will be holding the function at which the endorsed license will be utilized.            (b) If attendance at the function will be limited to members and invited guests of the sponsoring society or organization, the requirement that the society or organization be within the definition of RCW 66.24.375 is waived.",         and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Schow, the Senate concurred in the House amendments to Substitute Senate Bill No. 5173.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5173, as amended by the House.

ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5173, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 2; Excused, 5.

      Voting yea: Senators Anderson, Benton, Brown, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 42.      Absent: Senators Finkbeiner and Newhouse - 2.                   Excused: Senators Bauer, Deccio, McCaslin, Snyder and Strannigan - 5.      SUBSTITUTE SENATE BILL NO. 5173, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Hale, Senator Finkbeiner was excused.


MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5177 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 46.61.100 and 1986 c 93 s 2 are each amended to read as follows:  (1) Upon all roadways of sufficient width a vehicle shall be driven upon the right half of the roadway, except as follows:      (a) When overtaking and passing another vehicle proceeding in the same direction under the rules governing such movement;      (b) When an obstruction exists making it necessary to drive to the left of the center of the highway; provided, any person so doing shall yield the right of way to all vehicles traveling in the proper direction upon the unobstructed portion of the highway within such distance as to constitute an immediate hazard;           (c) Upon a roadway divided into three marked lanes and providing for two-way movement traffic under the rules applicable thereon; or           (d) Upon a street or highway restricted to one-way traffic.                    (2) Upon all roadways having two or more lanes for traffic moving in the same direction, all vehicles shall be driven in the right-hand lane then available for traffic, except (a) when overtaking and passing another vehicle proceeding in the same direction, (b) when traveling at a speed greater than the traffic flow, (c) when moving left to allow traffic to merge, or (d) when preparing for a left turn at an intersection, exit, or into a private road or driveway when such left turn is legally permitted. On any such roadway, a ((motor truck)) vehicle or combination over ten thousand pounds shall be driven only in the right-hand lane except under the conditions enumerated in (a) through (d) of this subsection.                  (3) No vehicle towing a trailer or no vehicle or combination over ten thousand pounds may be driven in the left-hand lane of a limited access roadway having three or more lanes for traffic moving in one direction except when preparing for a left turn at an intersection, exit, or into a private road or driveway when a left turn is legally permitted. This subsection does not apply to a vehicle using a high-occupancy vehicle lane. A high-occupancy vehicle lane is not considered the left-hand lane of a roadway. The department of transportation, in consultation with the Washington state patrol, shall adopt rules specifying (a) those circumstances where it is permissible for other vehicles to use the left lane in case of emergency or to facilitate the orderly flow of traffic, and (b) those segments of limited access roadway to be exempt from this subsection due to the operational characteristics of the roadway.                 (4) It is a traffic infraction to drive continuously in the left lane of a multilane roadway when it impedes the flow of other traffic.                    (((4))) (5) Upon any roadway having four or more lanes for moving traffic and providing for two-way movement of traffic, a vehicle shall not be driven to the left of the center line of the roadway except when authorized by official traffic control devices designating certain lanes to the left side of the center of the roadway for use by traffic not otherwise permitted to use such lanes, or except as permitted under subsection (1)(b) of this section. However, this subsection shall not be construed as prohibiting the crossing of the center line in making a left turn into or from an alley, private road or driveway.",      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Horn moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5177.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Horn that the Senate do concur in the House amendment to Substitute Senate Bill No. 5177.

      The motion by Senator Horn carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5177.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5177, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5177, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 1; Absent, 2; Excused, 4.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Loveland, McAuliffe, Morton, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 42.                    Voting nay: Senator Long - 1.          Absent: Senators McDonald and Newhouse - 2.                   Excused: Senators Bauer, Finkbeiner, McCaslin and Snyder - 4.          SUBSTITUTE SENATE BILL NO. 5177, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      Senator Patterson moved that the Senate immediately reconsider the vote by which Substitute Senate Bill No. 5177, as amended by the House, passed the Senate.

      The President declared the question before the Senate to be the motion by Senator Patterson to immediately reconsider the vote by which Substitute Senate Bill No. 5177, as amended by the House, passed the Senate.

      The motion for reconsideration failed.


MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5218 with the following amendment(s):

      On page 15, line 10, strike "twenty days" and insert "one hundred forty hours"                    On page 15, line 33, strike "twenty days" and insert "one hundred forty hours"                   On page 35, beginning on line 18, after "or after" strike "the effective date of this act" and insert "June 1, 1996"   On page 35, line 21, after "1992" insert "or part III of chapter 519, Laws of 1993",        and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator West moved that the Senate do concur in the House amendments to Substitute Senate Bill No. 5218.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator West that the Senate do concur in the House amendments to Substitute Senate Bill No. 5218.

      The motion by Senator West carried and the Senate concurred in the House amendments to Substitute Senate Bill No. 5218.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5218, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5218, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2.        SUBSTITUTE SENATE BILL NO. 5218, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5539 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 46.52.030 and 1996 c 183 s 1 are each amended to read as follows:  (1) Unless a report is to be made by a law enforcement officer under subsection (3) of this section, the driver of any vehicle involved in an accident resulting in injury to or death of any person or damage to the property of any one person to an apparent extent equal to or greater than the minimum amount established by rule adopted by the chief of the Washington state patrol in accordance with subsection (5) of this section, shall, within ((twenty-four hours)) four days after such accident, make a written report of such accident to the chief of police of the city or town if such accident occurred within an incorporated city or town or the county sheriff or state patrol if such accident occurred outside incorporated cities and towns. Nothing in this subsection prohibits accident reports from being filed by drivers where damage to property is less than the minimum amount or where a law enforcement officer has submitted a report.                    (2) The original of the report shall be immediately forwarded by the authority receiving the report to the chief of the Washington state patrol at Olympia, Washington. The Washington state patrol shall give the department of licensing full access to the report.                (3) Any law enforcement officer who investigates an accident for which a ((driver's)) report is required under subsection (1) of this section shall submit an investigator's report as required by RCW 46.52.070.                   (4) The chief of the Washington state patrol may require any driver of any vehicle involved in an accident, of which report must be made as provided in this section, to file supplemental reports whenever the original report in ((his)) the chief's opinion is insufficient, and may likewise require witnesses of any such accident to render reports. For this purpose, the chief of the Washington state patrol shall prepare and, upon request, supply to any police department, coroner, sheriff, and any other suitable agency or individual, sample forms of accident reports required hereunder, which reports shall be upon a form devised by the chief of the Washington state patrol and shall call for sufficiently detailed information to disclose all material facts with reference to the accident to be reported thereon, including the location, the ((cause)) circumstances, the conditions then existing, the persons and vehicles involved, the insurance information required under RCW 46.30.030, personal injury or death, if any, the amounts of property damage claimed, the total number of vehicles involved, whether the vehicles were legally parked, legally standing, or moving, and whether such vehicles were occupied at the time of the accident. Every required accident report shall be made on a form prescribed by the chief of the Washington state patrol and each authority charged with the duty of receiving such reports shall provide sufficient report forms in compliance with the form devised. The report forms shall be designated so as to provide that a copy may be retained by the reporting person.               (5) The chief of the Washington state patrol shall adopt rules establishing the accident-reporting threshold for property damage accidents. Beginning October 1, 1987, the accident-reporting threshold for property damage accidents shall be five hundred dollars. The accident-reporting threshold for property damage accidents shall be revised when necessary, but not more frequently than every two years. The revisions shall only be for the purpose of recognizing economic changes as reflected by an inflationary index recommended by the office of financial management. The revisions shall be guided by the change in the index for the time period since the last revision.      NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."                  Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Prince moved that the Senate do concur in the House amendments to Substitute Senate Bill No. 5539.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Prince that the Senate do concur in the House amendments to Substitute Senate Bill No. 5539.

      The motion by Senator Prince carried and the Senate concurred in the House amendments to Substitute Senate Bill No. 5539.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5539, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5539, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2.        SUBSTITUTE SENATE BILL NO. 5539, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 9, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5570 with the following amendment(s):Strike everything after the enacting clause and insert the following:"Sec. 1. RCW 51.48.020 and 1995 c 160 s 4 are each amended to read as follows:  (1)(a) Any employer, who knowingly misrepresents to the department the amount of his or her payroll or employee hours upon which the premium under this title is based, shall be liable to the state ((in)) for up to ten times the amount of the difference in premiums paid and the amount the employer should have paid and for the reasonable expenses of auditing his or her books and collecting such sums. Such liability may be enforced in the name of the department.                 (b) An employer is guilty of a class C felony, if((such)):       (i) The employer, with intent to evade determination and payment of the correct amount of the premiums, knowingly makes misrepresentations ((are made knowingly, an employer shall also be guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW)) regarding payroll or employee hours; or            (ii) The employer engages in employment covered under this title and, with intent to evade determination and payment of the correct amount of the premiums, knowingly fails to secure payment of compensation under this title or knowingly fails to report the payroll or employee hours related to that employment.      (c) Upon conviction under (b) of this subsection, the employer shall be ordered by the court to pay the premium due and owing, a penalty in the amount of one hundred percent of the premium due and owing, and interest on the premium and penalty from the time the premium was due until the date of payment. The court shall:      (A) Collect the premium and interest and transmit it to the department of labor and industries; and        (B) Collect the penalty and disburse it pro rata as follows: One-third to the investigative agencies involved; one-third to the prosecuting authority; and one-third to the general fund of the county in which the matter was prosecuted.                     Payments collected under this subsection must be applied until satisfaction of the obligation in the following order: Premium payments; penalty; and interest.      (2) Any person claiming benefits under this title, who knowingly gives false information required in any claim or application under this title shall be guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW.      NEW SECTION. Sec. 2. RCW 51.48.015 and 1971 ex.s. c 289 s 62 are each repealed."                   Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Schow moved that the Senate do concur in the House amendment to Senate Bill No. 5570.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Schow that the Senate do concur in the House amendment to Senate Bill No. 5570.

      The motion by Senator Schow carried and the Senate concurred in the House amendment to Senate Bill No. 5570.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5570, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5570, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Absent: Senator Swecker - 1.                Excused: Senators McCaslin and Snyder - 2.        SENATE BILL NO. 5570, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5659 with the following amendment(s):

      On page 1, line 9, after “packer.” strike all material through “nonvoting member.” on line 10 and insert “If an otherwise voting member is elected as the chair of the commission, the member may, during the member’s term as chair of the commission, cast a vote as a member of the commission only to break a tie vote.”,                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Morton, the Senate concurred in the House amendment to Senate Bill No. 5659.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5659, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5659, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2.        SENATE BILL NO. 5659, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.



MESSAGES FROM THE HOUSE

April 21, 1997

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1327,

      ENGROSSED HOUSE BILL NO. 1472, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1327,

      ENGROSSED HOUSE BILL NO. 1472.


SIGNED BY THE PRESIDENT


      The President signed:

      SUBSTITUTE SENATE BILL NO. 5011,

      SENATE BILL NO. 5018,

      SUBSTITUTE SENATE BILL NO. 5103,

      SUBSTITUTE SENATE BILL NO. 5110,

      SUBSTITUTE SENATE BILL NO. 5144,

      SENATE BILL NO. 5151,

      SECOND SUBSTITUTE SENATE BILL NO. 5178,

      SECOND SUBSTITUTE SENATE BILL NO. 5179,

      SUBSTITUTE SENATE BILL NO. 5188,

      SENATE BILL NO. 5193,

      SUBSTITUTE SENATE BILL NO. 5230,

      SUBSTITUTE SENATE BILL NO. 5295,

      SUBSTITUTE SENATE BILL NO. 5318,

      SUBSTITUTE SENATE BILL NO. 5334,

      SENATE BILL NO. 5340,

      SENATE BILL NO. 5361,

      SUBSTITUTE SENATE BILL NO. 5668,

      SUBSTITUTE SENATE BILL NO. 5763,

      SUBSTITUTE SENATE BILL NO. 5838,

      SUBSTITUTE SENATE BILL NO. 6046.


MESSAGE FROM THE HOUSE

April 18, 1997


MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6061 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

"TRANSPORTATION APPROPRIATIONS

      NEW SECTION. Sec. 1. To ensure accountability for the expenditure of transportation revenue by agencies responsible for delivering transportation services and programs to the traveling and taxpaying public, an objective and systematic assessment of the services and programs administered by the departments of transportation and licensing and the Washington state patrol is essential. An audit of the agencies' performance and an examination of the efficiency and effectiveness of service and program delivery by the agencies, shall take place prior to the appropriation for full funding of certain programs, projects, and services in the 1997-99 biennium.               NEW SECTION. Sec. 2. (1) The transportation budget of the state is hereby adopted and, subject to the provisions hereinafter set forth, the several amounts hereinafter specified, or as much thereof as may be necessary to accomplish the purposes designated, are hereby appropriated from the several accounts and funds hereinafter named to the designated state agencies and offices for salaries, wages, and other expenses, for capital projects, and for other specified purposes, including the payment of any final judgments arising out of such activities, for the period ending June 30, 1999.    (2) Legislation with fiscal impacts enacted in the 1997 legislative session not assumed in this act are not funded in the 1997-99 transportation budget.              (3) Unless the context clearly requires otherwise, the definitions in this subsection 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.      (f) "Performance-based budgeting" means a budget that bases resource needs on quantified outcomes/results expected from use of the total appropriation. "Performance-based budgeting" does not mean incremental budgeting that focuses on justifying changes from the historic budget or to line-item input-driven budgets.    (g) "Mission" means a statement of an organization's purpose that is concise, understandable, and consistent with the agency's statutory mandate.           (h) "Vision" means a statement of the organization's preferred future that is idealistic, motivating, directive, and logically connected to the mission.           (i) "Major strategies" means the broad themes for how an agency plans to accomplish its mission.                   (j) "Goals" means the statements of purpose that identify a desired result or outcome. The statements shall be realistic, achievable, directive, assignable, evaluative, and logically linked to the agency's mission and statutory mandate.            (k) "Objectives" means the steps taken to reach a goal that are specific and measurable within a specified time period. Objectives shall be assignable, prioritized, time-phased, and have resource estimates.               (l) "Strategic plan" means the strategies agencies create for investment choices in the future. All agency strategic plans shall present alternative investment strategies for providing services.

PART IGENERAL GOVERNMENT AGENCIES--OPERATING

      NEW SECTION. Sec. 101. FOR THE DEPARTMENT OF AGRICULTUREMotor Vehicle Fund--State Appropriation. . . . . . . . . . . . .$                                                                                                                                                                                       304,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The department of agriculture shall report to the legislative transportation committee by January 15, 1998, and January 15, 1999, on the number of fuel samples tested and the findings of the tests for the motor fuel quality program.

       NEW SECTION. Sec. 102. FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                            111,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The joint legislative systems committee shall enter into a service level agreement with the legislative transportation committee by June 30, 1997.

       NEW SECTION. Sec. 103. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                            420,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The legislative evaluation and accountability program committee shall enter into a service level agreement with the legislative transportation committee by June 30, 1997.

       NEW SECTION. Sec. 104. FOR THE GOVERNOR--FOR TRANSFER TO THE TORT CLAIMS REVOLVING FUND

Motor Vehicle Fund--State Appropriation.. . . . . . .$1,000,000Marine Operating Account--State Appropriation$1,000,000TOTAL APPROPRIATION$2,000,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The amount of the transfers from the motor vehicle fund and the marine operating fund are to be transferred into the tort claims revolving fund only as claims have been settled or adjudicated to final conclusion and are ready for payout. The appropriation contained in this section is to retire tort obligations that occurred before July 1, 1990.

       NEW SECTION. Sec. 105. FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Grade Crossing Protective Fund--State          Appropriation             . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                   222,000

PART IITRANSPORTATION AGENCIES

      NEW SECTION. Sec. 201. FOR THE WASHINGTON TRAFFIC SAFETY COMMISSIONHighway Safety Fund--State Appropriation. . . . . . .$436,000Highway Safety Fund--Federal Appropriation$5,216,000Transportation Fund--State Appropriation$950,000TOTAL APPROPRIATION$6,602,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The transportation fund--state appropriation includes $900,000 to fund community DUI task forces. Funding from the transportation fund for any community DUI task force may not exceed twenty-five percent of total expenditures in support of that task force.(2) $50,000 of the transportation fund--state appropriation is provided to support local law enforcement implementing the drug recognition expert (DRE) and drugged driving programs. Any funds not required for the DRE program may be used for programs related to heavy trucks that improve safety and enforcement of Washington state laws.NEW SECTION. Sec. 202. FOR THE BOARD OF PILOTAGE COMMISSIONERSPilotage Account--State Appropriation. . . . . . . . . . . . . . .$275,000NEW SECTION. Sec. 203. FOR THE COUNTY ROAD ADMINISTRATION BOARDMotor Vehicle Fund--Rural Arterial Trust

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$57,397,000Motor Vehicle Fund--State Appropriation$1,548,000Motor Vehicle Fund--Private/LocalAppropriation$383,000Motor Vehicle Fund--County Arterial PreservationAccount--State Appropriation$27,940,000TOTAL APPROPRIATION$87,268,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $124,000 of the county arterial preservation account--state appropriation is provided for a computer programmer to rewrite and expand the county road information system for compatibility with Windows computer software. It is the intent of the legislature that this position be a project position and is funded for the 1997-99 biennium only.

       NEW SECTION. Sec. 204. FOR THE TRANSPORTATION IMPROVEMENT BOARD

Motor Vehicle Fund--Urban Arterial Trust                  Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$57,159,000Motor Vehicle Fund--Transportation ImprovementAccount--State Appropriation$122,014,000Motor Vehicle Fund--City Hardship Assistance     Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$2,649,000Motor Vehicle Fund--Small City Account--State Appropriation$7,921,000Central Puget Sound Public TransportationAccount--State Appropriation$26,910,000Public Transportation Systems Account--          State Appropriation. . . . . . . . . . . . . . . . . . .. . . . . . .$                                                                                   2,928,000TOTAL APPROPRIATION$219,581,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The transportation improvement account--state appropriation includes $40,000,000 in proceeds from the sale of bonds authorized in RCW 47.26.500. However, the transportation improvement board may authorize the use of current revenues available in lieu of bond proceeds.

       NEW SECTION. Sec. 205. FOR THE LEGISLATIVE TRANSPORTATION COMMITTEE

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                         2,822,000

Transportation Fund--State Appropriation.. . . . . . .$500,000Central Puget Sound Public TransportationAccount--State Appropriation$200,000High Capacity Transportation Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . .$                                                          500,000TOTAL APPROPRIATION$4,022,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) In order to meet the growing demand for services the legislative transportation committee shall seek accountability and efficiencies within transportation agency programs through in-depth program evaluations. These program evaluations shall consider:      (a) Whether or not strategic planning and performance-based budgeting is a preferable planning and budgeting tool to the current incremental budgeting process for agency administrative programs and capital program budgeting;          (b) How the programs are performing currently and how service would be affected at different funding levels using performance measures; and                (c) What decision-making tools aid with the budgeting and oversight of these programs, such as tools developed during the maintenance accountability program (MAP) conducted by the legislative transportation committee during the 1995-97 biennium.                 (2) In consultation with other legislative committees, the legislative transportation committee shall study ways to enhance budget development tools and presentation documents that will better illustrate agencies' full appropriation authority and the intended outcomes of the appropriation.        (3) The legislative transportation committee shall conduct an evaluation of services provided by the county road administration board, the transportation improvement board and the TransAid division within the department of transportation. The evaluation shall assess whether consolidation of any of these activities will result in efficiencies and improved service delivery. The evaluation shall also assess the funding structure of these organizations to determine whether there are any benefits gained from a more simplified structure. The evaluation shall also assess other funding authorities to see if there is potential for further expansion of these revenues. The committee shall report its findings and recommendations to the 1998 legislature and, if needed, prepare legislation to implement those recommendations. $150,000 of the motor vehicle fund--state appropriation is provided for this evaluation.                 (4) $250,000 of the transportation fund--state appropriation is provided solely for an assessment of the licensing application migration project (LAMP). The assessment shall include but not be limited to the following: (a) Validity of the project based on circumstances when the project was created versus those that exist at the time of the assessment; (b) whether or not the project is achieving the results for which it was established; (c) alternatives for delivering the project; (d) identification of the costs or implications of not completing the project; and (e) recommendations for decreasing the amount of operating LAMP. A consultant may be hired to assist in the assessment.                   (5) The legislative transportation committee, in cooperation with the house appropriations committee, the senate ways and means committee, and the office of financial management, shall study and report to the legislature its findings regarding the process and procedures for calculation, determination, and collection of the amounts of motor vehicle excise tax (MVET) collected on the sale or lease of motor vehicles in this state. The report shall include findings as to the base amount for calculation of MVET, the amortization schedule for calculation of MVET, and adequacy and efficiency of current systems to provide accurate and timely information to those responsible for determining and collecting the MVET due, including recommendations for determining the MVET due for current and future multiple MVET tax structures. The report must also include a status report as to the progress and feasibility of using third party information providers or using private vendors to collect the MVET. $200,000 of the transportation fund--state appropriation is provided for this evaluation including the use of a consultant.                  (6) Up to $200,000 of the central Puget Sound public transportation account--state appropriation and up to $50,000 of the transportation fund--state appropriation may be used by the legislative transportation committee to contract for a performance audit of selected public transportation systems to ascertain the relative effectiveness and efficiency of those systems, including their per vehicle hour cost structure. The committee may also utilize these funds to conduct an evaluation to address the future financial viability of municipal transit agencies which do not currently receive state support for transit from the motor vehicle excise tax.              (7) The legislative transportation committee shall review and analyze freight mobility issues affecting eastern and southeastern Washington as recommended by the freight mobility advisory committee and report back to the legislature by November 1, 1997. $500,000 of the high capacity transportation account--state appropriation is provided for this review and analysis.         (8) The legislative transportation committee shall, in accordance with government accounting standards prescribed by the comptroller general of the United States, conduct performance audits of the department of transportation, focusing on its responsibilities for the highway and ferry systems; the department of licensing, focusing on the processes for motor vehicle and driver licensing functions; and the Washington state patrol, concentrating on law enforcement operations, communications systems, and technology requirements. The performance audits shall be an objective and systematic assessment of the programs administered by the department, including each program's effectiveness, efficiency, and accountability. Under the provisions of chapter 39.29 RCW, the legislative transportation committee shall use a firm or firms to conduct the audits.                     (9) The committee shall consult frontline employees, program managers, customers of the programs and agency services, taxpayers, legislators, legislative staff, the joint legislative audit and review committee, state auditor, office of financial management staff, and other external public and private sector experts in conducting the performance audit. On behalf of the committee, the independent evaluator shall be provided direct and unrestricted access to information held by the agencies, which shall submit all data and other information requested by the committee.        (10) The performance audit shall identify those activities and programs that should be strengthened, those that should be abandoned, and those that need to be redirected or other alternatives explored. In conducting the audit, the following objectives shall be addressed as appropriate:                      (a) Identify each of the discrete functions or activities, along with associated costs and full-time equivalent staff;               (b) Determine the extent to which the particular activity or function is specifically authorized in statute or is consistent with statutory direction and intent;               (c) Establish the relative priority of the program among the agency's functions;                    (d) Consider whether or not the purpose for which the program was created is still valid based on the circumstances under which the program was created versus those that exist at the time of the audit;      (e) Recommend organizations or programs in the public or private sector to be used as benchmarks against which to measure the performance of the program or function;      (f) Determine whether or not the program or function is achieving the results for which it was established;        (g) Identify alternatives for delivering the program or service, either in the public or private sector;               (h) Identify any duplication of services with other government programs or private enterprises or gaps in services;            (i) Identify the costs or implications of not performing the function;     (j) Determine the frequency with which other states perform similar functions, as well as their relative funding levels and performance;                   (k) In the event of inadequate performance by the program, identify the potential for a workable, affordable plan to improve performance;      (l) Identify, to the extent possible, the causes of any program's failure to achieve the desired results and identify alternatives for reducing costs or improving service delivery, including transferring functions to other public or private sector organizations; and              (m) Develop recommendations relating to statutes that inhibit or do not contribute to the agency's ability to perform its functions effectively and efficiently and whether specific statutes, activities, or programs should be continued, abandoned, or restructured.   (11) In conducting the performance audit of the Washington state ferries' capital program, the committee shall evaluate and make recommendations on the following elements:              (a) Washington state ferries' compliance with the recommendations of the 1991 Booz. Allen and Hamilton vessel construction and refurbishment study;            (b) Vessel procurement procedures that maximize cost effective preservation, maintenance, and new construction of Washington state ferries;             (c) The appropriate level of Washington state ferries' in-house design and construction, design or construction functions that could be performed by private engineering firms and shipyards, and procedures to appropriately share the risk of project performance between the state and private shipyards in the implementation of contractual work;            (d) Washington state ferries' long-range plan recommendations for terminal and vessel investments, with particular focus on the appropriate investments to meet forecasted vehicle and passenger travel demands, emergent vessel capacity and existing fleet preservation needs, needed route structures, and related terminal capacity; and                (e) Other elements or issues as directed by the advisory committee.         (12) In conducting the performance audit of the Washington state ferries' operating program, the committee shall evaluate and make recommendations on the following elements:                (a) The administration and organizational structure of the Washington state ferries, with specific focus on the appropriate level of management staffing, and clerical and support functions necessary for terminal and vessel activities;                 (b) The efficiency of current staging, loading, and traffic management procedures;        (c) The appropriate service level and related vessel deployment for existing and planned routes;                    (d) Appropriate procedures for vessel operational support; including, but not limited to, fueling, water, sewage, and hazardous materials management procedures;        (e) Internal controls of revenue collections and inventory;                (f) Review of emergency management procedures;      (g) The feasibility of converting international route service to local government and/or private sector operation;                (h) Radio and electronic vessel communications and electronic tracking systems;             (i) Contractual agreements for agent services;       (j) Terminal utility cost increases;    (k) Internal control procedures to ensure the accuracy of payroll;                     (l) Strategies for maintenance support of vessels and terminals, including an assessment of Eagle Harbor operations;           (m) Fleet and terminal equipment processes to enhance operational support and cost effective purchases;            (n) Essential training and human resources requirements, including training needed to comply with regulatory agency mandates;                (o) Appropriate levels of support necessary for the consistent operation of supporting data processing systems;      (p) System-wide charges for software licensing and policy for purchasing, or upgrading computer workstations; and      (q) Other elements or issues as directed by the committee.                    (13) Unless the committee determines otherwise, the preliminary and final audit reports for the Washington state ferries shall be completed by October 1, 1997, and January 1, 1998, respectively. Unless the committee determines otherwise, the preliminary and final audit reports for other programs administered by the department of transportation, the department of licensing and the Washington state patrol shall be completed by August 1, 1998, and November 1, 1998, respectively.       (14)(a) The legislative transportation committee shall create a temporary advisory committee to assist the committee in conducting this performance audit. The advisory committee shall assist the committee in the following matters:                     (i) Identifying stakeholders;      (ii) Developing the audit scope and objectives;                 (iii) Reviewing progress reports provided by the legislative transportation committee;             (iv) Reviewing preliminary and final audit reports;               (v) Facilitating communication of audit findings to other members of the legislature.              (b) The advisory committee shall be comprised of representatives of the joint legislative audit and review committee, the legislative transportation committee, and other stakeholders as determined by the legislative transportation committee.          (c) The advisory committee shall be chaired by the chair of the legislative transportation committee or his or her designee.

       NEW SECTION. Sec. 206. FOR THE MARINE EMPLOYEES COMMISSION

Motor Vehicle Fund--Puget Sound Ferry Operations

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . .$                                                                                                                                             354,000

       NEW SECTION. Sec. 207. FOR THE TRANSPORTATION COMMISSION

Transportation Fund--State Appropriation.. . . . . . .$                                                                                                                            804,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The transportation commission shall report to the legislative transportation committee following adoption of the highway, rail, capital facilities, and ferry capital construction programs, and provide status reports to the committee throughout the biennium.          (2) The commission is directed to continue efforts to identify cost savings and efficiencies for the department of transportation. These efficiencies may include contracting out or privatizing of appropriate services.

       NEW SECTION. Sec. 208. FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

Motor Vehicle Fund--State Patrol Highway

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$159,006,000Motor Vehicle Fund--State Patrol HighwayAccount--Federal Appropriation$4,374,000Motor Vehicle Fund--State Patrol HighwayAccount--Local Appropriation. . . . . . . . . . . . . . . . .$                                      170,000TOTAL APPROPRIATION$163,550,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The Washington state patrol is authorized to use the federal community oriented policing program (COPS) for 54 troopers with 18 COPS troopers to begin in July 1998 and 36 COPS troopers to begin in January 1999.              (2) The Washington state patrol is authorized an additional 18 COPS troopers, for attrition purposes, in the 1997-99 biennium if approved for federal matching funds.      (3) The Washington state patrol is authorized 8 additional investigator positions to begin in July 1997.              (4) The Washington state patrol will develop a vehicle replacement plan for the next six years. The plan will include an analysis of the current 100,000 miles replacement policy and agency assignment policy. Projected future budget requirements will include forecasts of vehicle replacement costs, vehicle equipment costs, and estimated surplus vehicle values when sold at auction.                  (5) The Washington state patrol vessel and terminal security (VATS) program will be funded by the state patrol highway fund beginning July 1, 1997, and into future biennia.      (6) A personnel data base will be maintained of the 789 commissioned traffic law enforcement officers, with a reconciliation at all times to the patrol allocation model and a vehicle assignment and replacement plan.           (7) $150,000 of the state patrol highway account appropriation is to fund the Washington state patrol's portion of the drug recognition expert training program formally funded by the traffic safety commission.       (8)(a) The Washington state patrol, in consultation with the Washington traffic safety commission, shall conduct an analysis of the most effective safety devices for preventing accidents while delivery trucks are operating in reverse gear. The analysis shall focus on trucks equipped with cube-style, walk-in cargo boxes, up to eighteen feet long, that are most commonly used in the commercial delivery of goods and services.                 (b) The state patrol shall incorporate research and analysis currently being conducted by the national highway traffic safety administration.                    (c) Upon completion of the analysis, the state patrol shall forward its recommendations to the legislative transportation committee.

       NEW SECTION. Sec. 209. FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

Motor Vehicle Fund--State Patrol Highway

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$54,961,000Motor Vehicle Fund--State Patrol HighwayAccount--Federal Appropriation$104,000TOTAL APPROPRIATION$55,065,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:       (1) $1,017,000 for the state patrol highway account--state appropriation is provided solely for year 2000 conversions of transportation automated systems. For purposes of this subsection, transportation automated systems does not include WASIS and WACIS.       (2) These appropriations maintain current level funding for the Washington state patrol service center and have no budget savings included for a consolidation of service centers based on the study conducted by the technology management group. During the 1997 interim, the costs for current level will be reviewed by the office of financial management and department of information services with a formal data center recommendation, that has been approved by the information services board, to the legislature in January 1998. Current level funding will be split between fiscal year 1998 and fiscal year 1999 with consideration of funding adjustments based on the review and the formal policy and budget recommendations.

       NEW SECTION. Sec. 210. FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

Highway Safety Fund--Motorcycle Safety Education                  Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$77,000State Wildlife Account--State Appropriation$57,000Highway Safety Fund--State Appropriation$5,538,000Motor Vehicle Fund--State Appropriation. . . . . . . . . . . .$4,501,000Transportation Fund--State Appropriation$900,000TOTAL APPROPRIATION$11,073,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The agency is directed to develop a proposal for implementing alternative approaches to delivering agency services to the public. The alternative approaches may include the use of credit card payment for telephone or use of the internet for renewals of vehicle registrations. The proposal shall also include collocated services for greater convenience to the public. The agency shall submit a copy of the proposal to the legislative transportation committee and to the office of financial management no later than December 1, 1997.

       NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

Highway Safety Fund--Motorcycle Safety Education

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$2,000General Fund--Wildlife Account--StateAppropriation$123,000Highway Safety Fund--State Appropriation$10,082,000Motor Vehicle Fund--State Appropriation$8,053,000Transportation Fund--State Appropriation. . . . . . . . .$1,190,000TOTAL APPROPRIATION$19,450,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:       (1) $11,172,000, of which $2,988,000 is from the motor vehicle fund--state appropriation and $8,184,000 is from the highway safety fund--state appropriation, is provided for the licensing application migration project (LAMP) system for fiscal year 1998 only.                   (2) The licensing application migration project (LAMP) quality assurance consultant shall provide the LAMP steering committee with bimonthly reports on the status of the LAMP project. The bimonthly reports must be on alternate months from the bimonthly reports provided by the department of information services. The reports required in this subsection shall be delivered to the senate and house of representatives transportation committee chairs.           Moneys are not provided in this act for the inclusion of general fund activities in the LAMP project.

       NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

General Fund--Marine Fuel Tax Refund Account--

      State Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$26,000General Fund--Wildlife Account--StateAppropriation$549,000Motor Vehicle Fund--State Appropriation$50,003,000Department of Licensing Services Account--                     State Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . .$2,944,000TOTAL APPROPRIATION$53,522,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $600,000 of the licensing service account--state appropriation is provided for replacement of printers for county auditors and subagents.

       NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Highway Safety Fund--Motorcycle Safety Education

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$1,160,000Highway Safety Fund--State Appropriation$61,087,000Transportation Fund--State Appropriation$4,985,000TOTAL APPROPRIATION$67,232,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) If Substitute House Bill No. 1501 is not enacted by June 30, 1997, $2,503,000 of the highway safety fund--state appropriation shall lapse.                    (2) The department of licensing, in cooperation with the fuel tax advisory committee, shall prepare and submit a report to the legislative transportation committee containing recommendations for special fuel and motor vehicle fuel recordkeeping and reporting requirements, including but not limited to recommendations regarding the form and manner in which records and tax reports must be maintained and made available to the department; which persons engaged in the business of selling, purchasing, distributing, storing, transporting, or delivering fuel should be required to submit periodic reports regarding the disposition of such fuel; and the feasibility of implementing an automated fuel tracking system. The report is due no later than October 31, 1997.

       NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATING

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                       24,703,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$400,000Motor Vehicle Fund--Transportation CapitalFacilities Account--State Appropriation$22,544,000TOTAL APPROPRIATION$47,647,000

       NEW SECTION. Sec. 215. FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Transportation Fund--Aeronautics Account--State

      Appropriation. . . .                 . . . . . . . . . . . . . . . . . . . . . . .$3,551,000Transportation Fund--Aeronautics Account--Federal Appropriation$1,000Aircraft Search and Rescue, Safety, and EducationAccount--State Appropriation$216,000TOTAL APPROPRIATION$3,768,000

NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Motor Vehicle Fund--Economic Development Account--

      State Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$2,434,000Motor Vehicle Fund--State Appropriation$88,015,000Motor Vehicle Fund--Federal Appropriation$130,485,000Motor Vehicle Fund--Private/LocalAppropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$40,000,000Special Category C Account--State Appropriation$78,600,000Transportation Fund--State Appropriation$203,546,000Puyallup Tribal Settlement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000,000Puyallup Tribal Settlement Account--Private/Local Appropriation$200,000High Capacity Transportation Account--StateAppropriation$1,288,000TOTAL APPROPRIATION$549,568,000

       The appropriations in this section are provided for the location, design, right of way acquisition, and construction of state highway projects designated as improvements under RCW 47.05.030. The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

       (1) The special category C account--state appropriation of $78,600,000 includes $26,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812 through 47.10.817 and includes $19,000,000 in proceeds from the sale of bonds authorized by House Bill No. 1012. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. If House Bill No. 1012 is not enacted by June 30, 1997, $19,000,000 of the special category C account--state appropriation shall lapse.      (2) The motor vehicle fund--state appropriation includes $2,685,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1) for match on federal demonstration projects. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.            (3) The department shall report annually to the legislative transportation committee on the status of the projects funded by the special category C appropriations contained in this section. The report shall be submitted by January 1 of each year.              (4) The motor vehicle fund--state appropriation in this section includes $600,000 solely for a rest area and information facility in the Nisqually gateway area to Mt. Rainier, provided that at least forty percent of the total project costs are provided from federal, local, or private sources. The contributions from the nonstate sources may be in the form of in-kind contributions including, but not limited to, donations of property and services.              (5) The appropriations in this section contain $118,247,000 reappropriation from the 1995-97 biennium.         (6) No moneys are provided for the Washington coastal corridor study.             (7)(a) The project called "SR 520 Corridor Alternative Analysis" in Program I shall be hereafter called the "Trans-Lake Washington Study."           (b) The department of transportation shall conduct a comprehensive study examining alternative transportation options for east-west traffic in King county addressing mobility, mitigation, preservation, and access. Such study shall include but not be limited to: Transportation flows east and west across Lake Washington on SR 520 and I-90, as well as north around Lake Washington; alternatives for enhancing traffic flow for those currently using SR 520 from the eastern side of Lake Washington through to the terminus of SR 520 in Redmond; integration of such alternatives with I-5 and I-405; long-term maintenance and safety needs for the Evergreen Point Floating Bridge; and consideration of all modes of transportation, including transit and transportation demand management. Comprehensive mitigation of existing and future impacts shall be an integral and inseparable part of any alternatives studied. The study shall be conducted with extensive citizen, local jurisdiction, community, and user stakeholder involvement in both scoping and in development of alternatives. The goal of the study shall be to develop a set of reasonable and feasible solutions.       (c) By November 1997, the department shall submit a study schedule to the legislative transportation committee setting forth major milestones, and the process developed for scoping and conducting the study, which process shall be developed with the affected stakeholders. The study shall be completed by December 1998.       (d) The motor vehicle fund appropriation includes $1,250,000 to carry out the provisions of this subsection. It is the intent of the legislature that funding for the Trans-Lake Washington study be redirected from other SR 520 projects.            (8) $150,000 of the motor vehicle fund--state appropriation is provided for the state share of conducting a six point access corridor analysis required by the federal highway administration before improvements to the NE 44th Street interchange on SR 405 can be implemented.    (9) The motor vehicle fund--state appropriation in this section includes $150,000 to establish a wetland mitigation pilot project. This appropriation may only be expended if the department of transportation establishes a technical committee to better implement the department's strategic plan. The technical committee shall include, but is not limited to, cities, counties, environmental groups, business groups, tribes, the Puget Sound action team, and the state departments of ecology, fish and wildlife, and community, trade, and economic development, and appropriate federal agencies. The committee shall assist the department in implementing its wetland strategic plan, including working to eliminate barriers to improved wetland and watershed management. To this end, the technical committee shall: (a) Work to facilitate sharing of agency environmental data, including evaluation of off-site and out-of-kind mitigation options; (b) develop agreed-upon guidance that will enable the preservation of wetlands that are under imminent threat from development for use as an acceptable mitigation option; (c) develop strategies that will facilitate the implementation of mitigation banking, including developing mechanisms for valuing and transferring credits; (d) provide input in the development of wetland functions assessment protocols related to transportation projects; (e) develop incentives for interagency participation in joint mitigation projects within watersheds; and (f) explore options for funding environmental mitigation strategies. The department shall prepare an annual report to the legislative transportation committee and legislative natural resources committees on recommendations developed by the technical committee.

       NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION ECONOMIC PARTNERSHIPS--PROGRAM K

Transportation Fund--State Appropriation.. . . . . . .$1,280,000Motor Vehicle Fund--State Appropriation$16,235,000TOTAL APPROPRIATION$17,515,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:      (1) The motor vehicle fund--state appropriation includes $16,235,000 in proceeds from the sale of bonds authorized in RCW 47.10.834 for all forms of cash contributions, or the payment of other costs incident to the location, development, design, right of way, and construction of only the SR 16 corridor improvements and park and ride projects selected under the public-private transportation initiative program authorized under chapter 47.46 RCW; and support costs of the public-private transportation initiatives program.                        (2) The appropriations in this section contain $16,235,000 reappropriated from the 1995-97 biennium.

       NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                    225,274,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$461,000Motor Vehicle Fund--Private/Local Appropriation$3,305,000TOTAL APPROPRIATION$229,040,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations will be requested to restore state funding for ongoing maintenance activities.              (2) The department shall deliver the highway maintenance program according to the plans for each major maintenance group to the extent practical. However, snow and ice expenditures are highly variable depending on actual weather conditions encountered. If extraordinary winter needs result in increased winter maintenance expenditures, the department shall, after prior consultation with the transportation commission, the office of financial management, and the legislative transportation committee adopt one or both of the following courses of action: (a) Reduce planned maintenance activities in other groups to offset the necessary increases for snow and ice control; or (b) continue delivery as planned within other major maintenance groups and request a supplemental appropriation in the following legislative session to fund the additional snow and ice control expenditures.                       (3) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle fund--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

       NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                    271,777,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$274,259,000Motor Vehicle Fund--Private/Local Appropriation$2,400,000TOTAL APPROPRIATION$548,436,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

       (1) The motor vehicle fund--state appropriation includes $6,800,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.        (2) The appropriations in this section contain $27,552,000 reappropriated from the 1995-97 biennium.

       NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                       22,388,000


      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The department, in cooperation with the Washington state patrol and the tow truck industry, shall develop and submit to the legislative transportation committee by October 31, 1997, a recommendation for implementing new tow truck services during peak hours on the Puget Sound freeway system.

       NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF TRANSPORTATION--SALES AND SERVICES TO OTHERS--PROGRAM R

Motor Vehicle Fund--State Appropriation    . . . . . . .$                                                                                                                            299,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$400,000Motor Vehicle Fund--Private/Local Appropriation$12,433,000TOTAL APPROPRIATION$13,132,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) It is the intent of the legislature to continue the state's partnership with the federal government, local government, and the private sector in transportation construction and operations in the most cost-effective manner.                (2) If Substitute House Bill No. 1010 is enacted by June 30, 1997, all of the appropriations in this section shall lapse.

       NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Fund--Puget Sound Capital

      Construction Account--State Appropriation. . . . . . . . . . .$777,000Motor Vehicle Fund--State Appropriation$57,046,000Motor Vehicle Fund--Puget Sound Ferry OperationsAccount--State Appropriation$1,093,000Transportation Fund--State Appropriation. . . .. . . . . . .$     1,158,000TOTAL APPROPRIATION$60,074,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The motor vehicle fund--state appropriation includes $2,650,000 solely for programming activities to bring the department's information systems into compliance with the year 2000 requirements of the department of information services. The department is directed to expend the moneys internally reallocated for this purpose before spending from this appropriation. The department is directed to provide quarterly reports on this effort to the legislative transportation committee and the office of financial management beginning October 1, 1997.       (2) It is the intent of the legislature that the department of transportation may implement a voluntary retirement incentive program that is cost neutral provided that such program is approved by the director of financial management.

       NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Fund--State Appropriation.. . . . . . .$                                                                                                                       15,316,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$15,966,000Transportation Fund--State Appropriation$1,384,000TOTAL APPROPRIATION$32,666,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) Up to $2,400,000 of the motor vehicle fund--state appropriation is provided for regional transportation planning organizations, with allocations for participating counties maintained at the 1995-1997 biennium levels for those counties not having metropolitan planning organizations within their boundaries.           (2) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $5,500,000 of the motor vehicle fund--federal appropriation shall lapse.

       NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

      (1) FOR PAYMENT OF COSTS OF ATTORNEY GENERAL TORT CLAIMS SUPPORT

Motor Vehicle Fund--State Appropriation.. . . . . . .$2,515,000(2) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITORMotor Vehicle Fund--State Appropriation$840,000(3) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICESMotor Vehicle Fund--State Appropriation. .. . . . . . .$3,391,000(4) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNELMotor Vehicle Fund--State Appropriation$2,240,000(5) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATIONMotor Vehicle Fund--State Appropriation. . . . . . . . . . . . .$12,120,000(6) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATIONMotor Vehicle Fund--Puget Sound Ferry Operations                      Account--State Appropriation. . . . . . . . . . . . . . $2,928,000(7) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISESMotor Vehicle Fund--State Appropriation. . . .. . . . . $536,000(8) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF GENERAL ADMINISTRATION STATE PARKING SERVICESMotor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . .$90,000(9) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION CAPITAL PROJECTS SURCHARGEMotor Vehicle Fund--State Appropriation. . . . . .. . . . . . . .$735,000(10) FOR ARCHIVES AND RECORDS MANAGEMENTMotor Vehicle Fund--State Appropriation$295,000

       NEW SECTION. Sec. 225. FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Motor Vehicle Fund--Puget Sound Capital

      Construction Account--State Appropriation. . . . . . . . . . .$243,229,000Motor Vehicle Fund--Puget Sound CapitalConstruction Account--FederalAppropriation$30,165,000Motor Vehicle Fund--Puget Sound CapitalConstruction Account--Private/LocalAppropriation. . . .                 . . . . . . . . . . . . . . . . . . . . . . .$765,000Transportation Fund--Passenger Ferry Account--State Appropriation$579,000TOTAL APPROPRIATION$274,738,000

      The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel acquisition, vessel construction, major and minor vessel improvements, and terminal construction and improvements. The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The appropriations in this section are provided to carry out only the projects (version 3) adjusted by the legislature for the 1997-99 budget. The department shall reconcile the 1995-97 capital expenditures within ninety days of the end of the biennium and submit a final report to the legislative transportation committee and office of financial management.               (2) The Puget Sound capital construction account--state appropriation includes $100,000,000 in proceeds from the sale of bonds authorized by RCW 47.60.800 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries, including construction of new jumbo ferry vessels in accordance with the requirements of RCW 47.60.770 through 47.60.778. However, the department of transportation may use current revenues available to the Puget Sound capital construction account in lieu of bond proceeds for any part of the state appropriation.          (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the capital program authorized in this section.      (4) Washington state ferries is authorized to reimburse up to $3,000,000 from the Puget Sound capital construction account--state appropriation to the city of Bremerton and the port of Bremerton for Washington state ferries' financial participation in the development of a Bremerton multimodal transportation terminal, port of Bremerton passenger-only terminal expansion, and ferry vehicular connections to downtown traffic circulation improvements. The reimbursement shall specifically support the construction of the following components: Appropriate passenger- only ferry terminal linkages to accommodate bow-loading catamaran type vessels and the needed transit connections; and the Washington state ferries' component of the Bremerton multimodal transportation terminal as part of the downtown Bremerton redevelopment project, including appropriate access to the new downtown traffic circulation road network.           (5) The Puget Sound capital construction account--state appropriation includes funding for capital improvements for only one vessel to meet United States Coast Guard Subchapter W regulation revisions impacting SOLAS (safety of life at sea) requirements for ferry operations on the Anacortes to Sidney, B.C. ferry route.               (6) The Puget Sound capital construction account--state appropriation and the passenger ferry account--state appropriation include funding for the construction of one new passenger-only vessel and the department's exercise of the option to build a second passenger-only vessel.    (7) The Puget Sound capital construction account--state appropriation includes funding for the exploration and acquisition of a design for constructing a millennium class ferry vessel.               (8) The Puget Sound capital construction account--state appropriation includes $90,000 for the purchase of defibrillators. At least one defibrillator shall be placed on each vessel in the ferry fleet.      (9) The appropriations in this section contain $46,962,000 reappropriated from the 1995-97 biennium.                (10) The Puget Sound capital construction account--state appropriation includes $57,461,000 for the 1997-99 biennium portion of the design and construction of a fourth Jumbo Mark II ferry and for payments related to the lease-purchase of the vessel's engines and propulsion system. This appropriation is subject to the following conditions and limitations. If House Bill No. 2108 authorizing the department to procure the vessel utilizing existing construction and equipment acquisition contracts is not enacted during the 1997 legislative session, this provision is null and void. $50,000,000 of the motor vehicle fund--Puget Sound capital construction account--state appropriation shall not be allotted. $7,461,000 may be allotted for preservation or renovation of Super class ferries.

       NEW SECTION. Sec. 226. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Marine Operating Fund--State Appropriation. . . . . $                                                                                                                    256,785,000


      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The appropriation is based on the budgeted expenditure of $27,368,000 for vessel operating fuel in the 1997-99 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.               (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 1997-99 biennium may not exceed $171,590,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $313.95 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 1997-99 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).               The prescribed salary and insurance benefit increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 1997, and thereafter, as established in the 1997-99 general fund operating budget.      (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the operating program authorized in this section.          (4) The appropriation in this section includes up to $1,566,000 for additional operating expenses required to comply with United States Coast Guard Subchapter W regulation revisions for one vessel operating on the Anacortes to Sidney, B.C. ferry route. The department shall explore methods to minimize the cost of meeting United States Coast Guard requirements and shall report the results to the legislative transportation committee by September 1, 1997.              (5) No funds are provided for Washington state ferries' lease of the Anacortes ferry terminal. The department shall request a waiver of the cost associated with the use of the terminal leased from the Port of Anacortes and costs associated with use of the Sidney, British Columbia terminal.           (6) Agreements between Washington state ferries and concessionaires for automatic teller machines on ferry terminals or vessels shall provide for and include banks and credit unions that exclusively serve the west side of Puget Sound.      (7) In the event federal funding is provided for one or more passenger-only ferry vessels for the purpose of transporting United States naval personnel, the department of transportation is authorized to acquire and construct such vessels in accordance with the authority provided in RCW 47.56.030, and the department shall establish a temporary advisory committee comprised of representatives of the Washington state ferries, transportation commission, legislative transportation committee, office of financial management, and the United States Navy to analyze and make recommendations on, at a minimum, vessel performance criteria, docking, vessel deployment, and operating issues.             (8) Upon completion of the construction of the three Mark II Jumbo Class ferry vessels, two vessels shall be deployed for service on the Seattle-Bainbridge ferry route and one shall be deployed for service on the Edmonds-Kingston ferry route. Of the existing Jumbo Class ferry vessels, one shall be deployed for use on the Edmonds-Kingston route and the remaining vessel shall be used as a back-up boat for both the Seattle-Bainbridge and Edmonds-Kingston routes.

       NEW SECTION. Sec. 227. FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION AND RAIL--PROGRAM Y

Essential Rail Assistance Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$256,000High Capacity Transportation Account--StateAppropriation$7,530,000Air Pollution Control Account--StateAppropriation$6,290,000Transportation Fund--State Appropriation$46,895,000Transportation Fund--Federal Appropriation$12,399,000Transportation Fund--Private/Local      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$105,000Central Puget Sound Public TransportationAccount--State Appropriation$500,000Public Transportation Systems Account--StateAppropriation$1,000,000TOTAL APPROPRIATION. . . . . . . . .$                                                                       74,975,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) Up to $42,680,000 of the transportation fund--state appropriation is provided for intercity rail passenger service including up to $8,000,000 for lease purchase of two advanced technology train sets with total purchase costs not to exceed $20,000,000; up to $1,000,000 for one spare advanced technology train power-car and other spare parts, subsidies for operating costs not to exceed $12,000,000, to maintain service of two state contracted round trips between Seattle and Portland and one state contracted round trip between Seattle and Vancouver, British Columbia, and capital projects necessary to provide Seattle-Vancouver, British Columbia, train operating times of under 4 hours.              (2) Up to $500,000 of the transportation fund--state appropriation and up to $1,000,000 of the public transportation systems account--state appropriation is provided for the rural mobility program administered by the department of transportation. Priority for grants provided from this account shall be given to projects and programs that can be accomplished in the 1997-99 biennium.          (3) Up to $600,000 of the high capacity transportation account--state appropriation is provided for rail freight coordination, technical assistance, and planning.      (4) The department shall provide biannual reports to the legislative transportation committee regarding the department's rail freight program. The department shall also notify the committee for project expenditures from all fund sources. The department shall examine the ownership of grain cars and the potential for divestiture of those cars and other similar assets and report those findings to the committee prior to the 1998 legislative session.             (5) $500,000 of the transportation fund--state appropriation and the entire central Puget Sound public transportation account--state appropriation are for the agency council on coordinated transportation established in chapter . . . (House Bill No. 2166 or similar legislation), Laws of 1997 and are in addition to any appropriation for the council contained in the omnibus operating budget for the 1997-99 biennium.                 (6) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $8,452,000 of the transportation fund--federal appropriation shall lapse.                 (7) The appropriations in this section contain $4,599,000 reappropriated from the 1995-97 biennium.                  (8) The high capacity transportation account--state appropriation includes $75,000 for the department to develop a strategy and to identify how the agency would expend additional moneys to enhance the commute trip reduction program. The report would include recommendations for grant programs for employers and jurisdictions to reduce SOV usage and to provide transit incentives to meet future commute trip reduction requirements. The report is due to the legislative transportation committee by January 1, 1998.                (9) In addition to the appropriations contained in this section, the office of financial management shall release the $2,000,000 transportation fund--state funds appropriated for the intercity rail passenger program in the 1995-97 biennium but held in reserve pursuant to section 502, chapter 165, Laws of 1996.

       NEW SECTION. Sec. 228. FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z

Motor Vehicle Fund--StateAppropriation. . . . . . .$                                                                                                                         8,053,000

Motor Vehicle Fund--Federal Appropriation. . . . . . .. . . . . . .$273,726,000Motor Vehicle Fund--Private/LocalAppropriation$5,000,000High Capacity Transportation Account--State Appropriation$500,000TOTAL APPROPRIATION$287,279,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) The motor vehicle fund--state appropriation includes $1,785,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1). The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.       (2) As a condition of receiving the full state subsidy in support of the Puget Island ferry, Wahkiakum county must, by December 31, 1997, increase ferry fares for passengers and vehicles by at least ten percent. If the fares are not increased to meet this requirement, the department, in determining the state subsidy after December 31, 1997, shall reduce the operating deficit by the amount that would have been generated if the ten percent fare increase had been implemented.      (3) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $240,000,000 of the motor vehicle fund--federal appropriation and $5,000,000 of the motor vehicle fund--private/local appropriation shall lapse and $399,000 is appropriated from the motor vehicle fund--state appropriation to pay for operating and maintenance costs for the Wahkiakum county ferry.               (4) The appropriations in this section contain $1,750,000 reappropriated from the 1995-97 biennium.                    (5) Up to $500,000 of the high capacity transportation account--state appropriation is provided for implementation of the recommendations of the freight mobility advisory committee, and any legislation enacted resulting from those recommendations.


PART III

TRANSPORTATION AGENCIES CAPITAL FACILITIES


      NEW SECTION. Sec. 301. (1) The state patrol, the department of licensing, and the department of transportation shall coordinate their activities when siting facilities. This coordination shall result in the collocation of driver and vehicle licensing, vehicle inspection service facilities, and other transportation services whenever possible.

      The department of licensing, the department of transportation, and the state patrol shall explore alternative state services, such as vehicle emission testing, that would be feasible to collocate in these joint facilities. All services provided at these transportation service facilities shall be provided at cost to the participating agencies.                 (2) The department of licensing may lease develop with option to purchase or lease purchase new customer service centers to be paid for from operating revenues. The Washington state patrol shall provide project management for the department of licensing. Alternatively, a financing contract may be entered into on behalf of the department of licensing in the amounts indicated plus financing expenses and reserves pursuant to chapter 39.94 RCW. The locations and amounts for projects covered under this section are as follows:    (a) A new customer service center in Vancouver for $3,709,900;          (b) A new customer service center in Thurston county for $4,641,200; and             (c) A new customer service center in Union Gap for $3,642,000.           (3) The Washington state patrol, department of licensing, and department of transportation shall provide monthly progress reports with the transportation executive information system on the capital facilities receiving an appropriation in this act.

       NEW SECTION. Sec. 302. FOR THE WASHINGTON STATE PATROL--CAPITAL PROJECTS

Motor Vehicle Fund--State Patrol Highway

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$                                                                                                         5,375,000

      The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1) This appropriation is provided for the microwave migration, weigh station facilities identified in the budget notes, training academy HVAC system, and regular facilities maintenance.       (2) The Washington state patrol, based on an independent real estate appraisal, is authorized to purchase the Port Angeles detachment office for a maximum of $600,000 provided the appraisal is $600,000 or above in value. If the appraisal is less than $600,000, the Washington state patrol is authorized to purchase the building for the appraised value. Certificates of participation will be used for financing the cost of the building and related financing fees.

       NEW SECTION. Sec. 303. FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

Motor Vehicle Fund--Transportation Capital

      Facilities Account--State Appropriation. . . . . . . . . . . . . .$7,998,000(1) The department of transportation shall provide to the legislative transportation committee prior notice and the latest project information at least two weeks in advance of the bid process for transportation capital facilities projects going to bid in the 1997-99 biennium.

      (2) Construction of the Mount Rainier storage facility shall not commence until the department has secured an operational lease that would allow the placement of the facility on United States forest service lands near the entrance to the Mather memorial parkway.       (3) The appropriations in this section contain $7,719,000 reappropriated from the 1995-97 biennium.


PART IV

TRANSFERS AND DISTRIBUTIONS


       NEW SECTION. Sec. 401. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE FUND AND TRANSPORTATION FUND REVENUE

Highway Bond Retirement Account Appropriation$                                                                                                                    195,062,000

Ferry Bond Retirement Account Appropriation. . . . . . . . . . .$                                           49,606,000TOTAL APPROPRIATION$244,668,000

       NEW SECTION. Sec. 402. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Motor Vehicle Fund--Puget Sound Capital

      Construction Account Appropriation. .. . . . . . .$500,000Motor Vehicle Fund Appropriation$130,000Transportation Improvement AccountAppropriation$200,000Special Category C Account Appropriation. . . . . . . . . . . . . . .$350,000Transportation Capital Facilities AccountAppropriation$1,000Urban Arterial Account Appropriation$5,000TOTAL APPROPRIATION$1,186,000

       NEW SECTION. Sec. 403. FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

City Hardship Account Appropriation. . . .. . . . . . .$                                                                                                                            200,000

Motor Vehicle Fund Appropriation for motor              vehicle fuel tax and overload penalties                   distribution. . . . . . .. . . . . . . . . . . . . . . . . . .. . . . . . .$            475,267,000Transportation Fund Appropriation$3,119,000TOTAL APPROPRIATION$478,586,000

       NEW SECTION. Sec. 404. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS

Motor Vehicle Fund--State Patrol Highway Account:

      For transfer to the department of retirement            systems expense fund . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                   117,000

       NEW SECTION. Sec. 405. STATUTORY APPROPRIATIONS. In addition to the amounts appropriated in this act for revenue for distribution, state contributions to the law enforcement officers' and fire fighters' retirement system, and bond retirement and interest including ongoing bond registration and transfer charges, transfers, interest on registered warrants, and certificates of indebtedness, there is also appropriated such further amounts as may be required or available for these purposes under any statutory formula or under any proper bond covenant made under law.

       NEW SECTION. Sec. 406. The department of transportation is authorized to undertake federal advance construction projects under the provisions of 23 U.S.C. Sec. 115 in order to maintain progress in meeting approved highway construction and preservation objectives. The legislature recognizes that the use of state funds may be required to temporarily fund expenditures of the federal appropriations for the highway construction and preservation programs for federal advance construction projects prior to conversion to federal funding.

NEW SECTION. Sec. 407. FOR THE STATE TREASURER--TRANSFERS

(1) R V Account--State Appropriation:

For transfer to the Motor Vehicle Fund--      State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,173,000(2) Motor Vehicle Fund--State Appropriation:For transfer to the Transportation CapitalFacilities Account--State$47,569,000(3) Small City Account--State Appropriation:For transfer to the Urban Arterial TrustAccount--State. . . . . . . .. . . . . . . . . . . . . . . . . .$3,359,000(4) Small City Account--State Appropriation:For transfer to the Transportation ImprovementAccount--State$7,500,000

       NEW SECTION. Sec. 408. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFER

Motor Vehicle Fund--State Appropriation

For transfer to the Transportation Equipment Fund--                   State Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$            500,000

      The appropriation transfer in this section is provided for the purchase of equipment for the highway maintenance program from the transportation equipment fund - operations.



      NEW SECTION. Sec. 409. The motor vehicle account revenues are received at a relatively even flow throughout the year. Expenditures may exceed the revenue during the accelerated summer and fall highway construction season, creating a negative cash balance during the heavy construction season. Negative cash balances also may result from the use of state funds to finance federal advance construction projects prior to conversion to federal funding. The governor and the legislature recognize that the department of transportation may require interfund loans or other short-term financing to meet temporary seasonal cash requirements and additional cash requirements to fund federal advance construction projects.              NEW SECTION. Sec. 410. In addition to such other appropriations as are made by this act, there is appropriated to the department of transportation from legally available bond proceeds in the respective transportation funds and accounts such amounts as are necessary to pay the expenses incurred by the state finance committee in the issuance and sale of the subject bonds.    NEW SECTION. Sec. 411. EXPENDITURE AUTHORIZATIONS. The appropriations contained in this act are maximum expenditure authorizations. Pursuant to RCW 43.88.037, moneys disbursed from the treasury on the basis of a formal loan agreement shall be recorded as loans receivable and not as expenditures for accounting purposes. To the extent that moneys are disbursed on a loan basis, the corresponding appropriation shall be reduced by the amount of loan moneys disbursed from the treasury during the 1997-99 biennium.        NEW SECTION. Sec. 412. FOR THE GOVERNOR--COMPENSATION--SALARY AND INSURANCE INCREASE REVOLVING ACCOUNTMotor Vehicle Fund--State Patrol Highway Account

      Appropriation         . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,829,000Motor Vehicle Fund Appropriation$7,274,000TOTAL APPROPRIATION$12,103,000

      The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

      (1)(a) Commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol shall receive a six percent salary increase on July 1, 1997.(b) Commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol shall receive an additional six percent salary increase on July 1, 1998.(2) The salary increases provided for in subsection (1) of this section supersede any salary increases provided for in the omnibus operating budget, for commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol. The appropriation in this section is not in addition to the salary increases provided for in the omnibus operating budget; therefore, the appropriations for the state patrol highway account in this section shall be reduced by any amount provided for commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol in the omnibus operating budget.(3) The salary increases in subsection (1) of this section do not apply to the commissioned positions of chief, assistant chief, or commanders. The salaries for these positions are set by the personnel board or chief of the Washington state patrol.(4) The additional pay increase, above the increase provided for in the omnibus operating budget, is contingent upon funding by the general fund for general fund activities paid for by transportation funds in the 1993-95 and 1995-97 biennia.NEW SECTION. Sec. 413. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERSMotor Vehicle Fund--Puget Sound Ferry Operations

      Account--State Appropriation:For transfer to the Motor Vehicle Fund--Puget Sound           Capital Construction Account. . . . . . . . . . . . . . . . . .$                                                                                                                                                                       50,000,000

      This transfer is intended to be an interfund loan between the two accounts with the obligation of repayment in future biennia. This appropriation is subject to the following conditions and limitations: If funds are not appropriated for a fourth Jumbo Mark II ferry or House Bill No. 2108, authorizing the department to procure the vessel utilizing existing construction and equipment acquisition contracts, is not enacted during the 1997 legislative session, this section is null and void.

PART VMISCELLANEOUSA. INFORMATION TECHNOLOGY

      NEW SECTION. Sec. 501. To maximize the use of transportation revenues, it is the intent of the legislature to encourage sharing of technology, information, and systems where appropriate between transportation agencies.        To facilitate this exchange, the Washington state department of transportation assistant secretary for finance and budget management; Washington state department of transportation chief for management information systems; the Washington state patrol deputy chief, inter-governmental services bureau; Washington state patrol manager of the computer services division; the department of licensing deputy director and department of licensing assistant director for information systems will meet quarterly to share plans, discuss progress of key projects, and to coordinate activities for the common good. Minutes of these meetings will be distributed to the respective agency heads, the office of financial management and the legislative transportation committee. Washington state department of transportation will provide staff support and meeting coordination.      NEW SECTION. Sec. 502. Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.      (1) The agency shall produce a feasibility study for each information systems project in accordance with published department of information services instructions. In addition to department of information services requirements, the study shall examine and evaluate the costs and benefits of maintaining the status quo and the costs and benefits of the proposed project. The study shall identify when and in what amount any fiscal savings will accrue, and what programs or fund sources will be affected.      (2) The agency shall produce a project management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan shall include, but is not limited to, the following elements: A description of the business problem or opportunity that the information systems project is intended to address; a statement of project objectives and assumptions; definition of phases, tasks, and activities to be accomplished and the estimated cost of each phase; a description of how the agency will facilitate responsibilities of oversight agencies; a description of key decision points in the project life cycle; a description of variance control measures; a definitive schedule that shows the elapsed time estimated to complete the project and when each task is to be started and completed; and a description of resource requirements to accomplish the activities within specified time, cost, and functionality constraints.      (3) A copy of each feasibility study and project management plan shall be provided to the department of information services, the office of financial management, and legislative transportation committee. Authority to expend any funds for individual information systems projects is conditioned on approval of the relevant feasibility study and project management plan by the department of information services and the office of financial management.       (4) A bimonthly project status report shall be submitted to the department of information services, the office of financial management, and legislative transportation committee for each project prior to reaching key decision points identified in the project management plan. Project status reports include: Project name, agency undertaking the project, a description of the project, key project activities or accomplishments during the next sixty to ninety days, baseline cost data, costs to date, baseline schedule, schedule to date, risk assessments, risk management, any deviations from the project feasibility study, and recommendations.               Work shall not commence on any task in a subsequent phase of a project until the status report for the preceding key decision point has been approved by the department of information services and the office of financial management.         (5) If a project review is requested in accordance with department of information services policies, the reviews shall examine and evaluate: System requirements specifications; scope; system architecture; change controls; documentation; user involvement; training; availability and capability of resources; programming languages and techniques; system inputs and outputs; plans for testing, conversion, implementation, and post-implementation; and other aspects critical to successful construction, integration, and implementation of automated systems. Copies of project review written reports shall be forwarded to the office of financial management and appropriate legislative committees by the agency.                   (6) A written post-implementation review report shall be prepared by the agency for each information systems project in accordance with published department of information services instructions. In addition to the information requested pursuant to the department of information services instructions, the post-implementation report shall evaluate the degree to which a project accomplished its major objectives including, but not limited to, a comparison of original cost and benefit estimates to actual costs and benefits achieved. Copies of the post-implementation review report shall be provided to the department of information services, the office of financial management, and legislative transportation committee.      NEW SECTION. Sec. 503. Any new automation projects must be reviewed and approved by the department of information services and then by the office of financial management prior to transportation funding being approved. If changes in an automation project are made or recommended by the office of financial management, including appropriation amounts, then the department of information services must review and approve the changes prior to transportation funding being approved.        NEW SECTION. Sec. 504. Appropriations for the year 2000 conversions for transportation agencies will be used solely for modifications of information systems that have been approved and recommended by the department of information services. A progress report will be presented to the legislature by the department of information services in January 1998, with completion of the year 2000 conversion by January 31, 1999. Any savings realized from the conversion process will revert on June 30, 1999, back to the respective funds from which funding was appropriated.

B. EMERGENCY RELIEFNEW SECTION. Sec. 505. FOR THE DEPARTMENT OF TRANSPORTATION--EMERGENCY RELIEFMotor Vehicle Fund--Federal Appropriation. . . . . $3,000,000The appropriation in this section is subject to the following conditions and limitations: This appropriation is to be placed in reserve status for emergency relief in the event of a disaster where federal emergency relief funds have become available. The transportation commission in consultation with the legislative transportation committee may request the office of financial management to transfer the appropriation authority from reserve to active status.NEW SECTION. Sec. 506. The appropriations contained in sections 203 and 204 of this act include funding to assist cities and counties in providing match for federal emergency funding for winter storm and flood damage as determined by the county road administration board and the transportation improvement board. The county road administration board and the transportation improvement board will report to the legislative transportation committee and the office of financial management by September 30 of each year on the projects selected to receive match funding.

                                                          C. BUDGET SUBMITTAL AND OVERSIGHT PROVISIONS                 NEW SECTION. Sec. 507. Any agency requesting transportation funding must submit to the legislative transportation committees the same request and supporting documents presented to the office of financial management at agency budget submittal time.                    NEW SECTION. Sec. 508. In addition to information required under section 607 of this act, agencies shall include their strategic plans and an explanation of how the budget submittals and the investment choices and recommended associated service levels are linked to the strategic plan.                  NEW SECTION. Sec. 509. Transportation agencies are required to provide fund balances and financial, workload, and performance measurement data in the transportation executive information system on a schedule agreed to by the legislative transportation committee.               NEW SECTION. Sec. 510. The appropriations of moneys and the designation of funds and accounts by this and other acts of the 1997 legislature shall be construed in a manner consistent with legislation enacted by the 1985, 1987, 1989, 1991, 1993, and 1995 legislatures to conform state funds and accounts with generally accepted accounting principles.D. BILLS NECESSARY TO IMPLEMENT THIS ACTNEW SECTION. Sec. 511. The following bills are necessary to implement portions of this act: Engrossed Substitute House Bill No. 1101, Substitute House Bill No. 1427, House Bill No. 1487, House Bill No. 1786, House Bill No. 2166, House Bill No. 2180, House Bill No. 2237, House Bill No. 2108 or Senate Bill No. 5955, House Bill No. 1501, and House Bill No. 1513.E. MISCELLANEOUSNEW SECTION. Sec. 512. If Substitute House Bill No. 2237 is not enacted, or is enacted without a provision allowing the department to obtain fair and reasonable compensation, by June 30, 1997, the appropriations to the department of transportation in this act may only be used by the department to grant rights of occupancy to a telecommunications carrier only to the extent authorized by existing law, including but not limited to chapters 47.12, 47.44, and 47.52 RCW. However, the authority of the department to install telecommunications facilities solely for public transportation purposes is not limited.      Sec. 513. RCW 47.78.010 and 1991 sp.s. c 13 ss 66, 121 are each amended to read as follows:         There is hereby established in the state treasury the high capacity transportation account. Money in the account shall be used, after appropriation, for local high capacity transportation purposes including rail freight, activities associated with freight mobility, and commute trip reduction activities.      NEW SECTION. Sec. 514. Section 513 of this act expires June 30, 1999.         NEW SECTION. Sec. 515. FOR THE DEPARTMENT OF TRANSPORTATION--RESERVE STATUSMotor Vehicle Fund--State Appropriation. . . . . . . .. . . . . . .$71,000,000Transportation Fund--State Appropriation$4,000,000TOTAL APPROPRIATION$75,000,000The appropriations in this section are subject to the following conditions and limitations and the entire amount is provided solely for placement in reserve status: The entire amount is to be placed in reserve status for potential funding of transportation program services following the performance audits to be performed on the department of transportation, department of licensing, and the Washington state patrol. In addition, any transfers from the general fund to any transportation account shall also be placed in reserve status.PART VILEGISLATIVE DECLARATIONSNEW SECTION. Sec. 601. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.         NEW SECTION. Sec. 602. 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 immediately.      Correct the title.,                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Prince moved that the Senate refuse to concur in the House amendment to Engrossed Substitute Senate Bill No. 6061 and asks the House to recede therefrom.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Prince that the Senate refuse to concur in the House amendment to Engrossed Substitute Senate Bill No. 6061 and asks the House to recede therefrom.

      The motion by Senator Prince carried and the Senate refuses to concur in the House amendment to Engrossed Substitute Senate Bill No. 6061 and asks the House to recede therefrom.


      President Pro Tempore Newhouse assumed the Chair.


      There being no objection, the Senate resumed consideration of Senate Bill No. 5468 and the pending House striking amendment, deferred April 19, 1997.


RULING BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Newhouse: “In ruling upon the point of order raised by Senator Rasmussen, the President finds that Senate Bill No. 5468 is a measure which makes differing provisions relating to beekeeping, including (1) exempting beekeeping from the activities subject to actionable nuisance, (2) directing the apiary advisory committee to explore the benefits of locating pollinating bees on state lands, and (3) enabling the Department of Agriculture to establish a model honey bee management program at the request of the Apiary Advisory Committee.

      “The House striking amendment would make similar provisions and add another related provision, namely the amendment would repeal a fee paid by users of bee services too fund the industry apiary advisory account.

      “The President, therefore, finds that the proposed House amendment does not change the scope and object of the bill and the point of order is not well taken.”


      The House striking amendment to Senate Bill No. 5468 was ruled in order.


MOTION


      On motion of Senator Morton, the Senate refuses to concur in the House amendment to Senate Bill No. 5468 and asks the House to recede therefrom.


      President Owen assumed the Chair.


MESSAGE FROM THE HOUSE

April 9, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5512 with the following amendment(s):

      On page 1, beginning on line 16, after “in order to” strike complete successfully” and insert “begin to fulfill”,                   and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Long moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5512.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Long that the Senate do concur in the House amendment to Substitute Senate Bill No. 5512.

      The motion by Senator Long carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5512.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5512, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5512, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 2; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45.                  Absent: Senators Finkbeiner and Prince - 2.         Excused: Senators McCaslin and Snyder - 2..      SUBSTITUTE SENATE BILL NO. 5512, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 10, 1997


MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5954 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 28B.20.253 and 1991 sp.s. c 13 s 117 are each amended to read as follows:          (1) A self-insurance revolving fund in the custody of the ((treasurer)) university is hereby created to be used solely and exclusively by the board of regents of the University of Washington for the following purposes:                     (a) The payment of judgments against the university, its schools, colleges, departments, and hospitals and against its regents, officers, employees, agents, and students for whom the defense of an action, claim, or proceeding has been provided pursuant to RCW 28B.20.250.          (b) The payment of claims against the university, its schools, colleges, departments, and hospitals and against its regents, officers, employees, agents, and students for whom the defense of an action, claim, or proceeding has been provided pursuant to RCW 28B.20.250: PROVIDED, That payment of claims in excess of twenty-five ((hundred)) thousand dollars must be approved by the state attorney general.      (c) For the cost of investigation, administration, and defense of actions, claims, or proceedings, and other purposes essential to its liability program.          (2) Said self-insurance revolving fund shall consist of periodic payments by the University of Washington from any source available to it in such amounts as are deemed reasonably necessary to maintain the fund at levels adequate to provide for the anticipated cost of payments of incurred claims and other costs to be charged against the fund.                 (3) No money shall be paid from the self-insurance revolving fund unless first approved by the board of regents, and unless all proceeds available to the claimant from any valid and collectible liability insurance shall have been exhausted.      (((4) The state investment board shall invest moneys in the self-insurance revolving fund. Moneys invested by the investment board shall be invested in accordance with RCW 43.84.150.))                 NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."      Renumber the sections consecutively, correct any internal references accordingly, and correct the title.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator West moved that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5954.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator West that the Senate do concur in the House amendment to Engrossed Senate Bill No. 5954.

      The motion by Senator West carried and the Senate concurred in the House amendment to Engrossed Senate Bill No. 5954.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5954, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5954, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2..       ENGROSSED SENATE BILL NO. 5954, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 10, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5965 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 51.44.170 and 1991 sp.s. c 13 s 29 are each amended to read as follows:         The industrial insurance premium refund account is created in the custody of the state((treasury)) treasurer. All industrial insurance refunds earned by state agencies or institutions of higher education under the state fund retrospective rating program shall be deposited into the account. ((Moneys in the account may be spent only after appropriation)) The account is subject to the allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures from the account. Only the executive head of the agency or institution of higher education, or designee, may authorize expenditures from the account. No agency or institution of higher education may ((receive an appropriation)) make an expenditure from the account for an amount greater than the refund earned by the agency. If the agency or institution of higher education has staff dedicated to workers' compensation claims management, expenditures from the account must be used to pay for that staff, but additional expenditure from the account may be used for any program within an agency or institution of higher education((, but preference shall be given to programs)) that promotes or provides incentives for employee workplace safety and health and early, appropriate return-to-work for injured employees.           Sec. 2. 1990 c 204 s 1 (uncodified) is amended to read as follows:                     The legislature finds that workplace safety in state employment is of paramount importance in maintaining a productive and committed state work force. The legislature also finds that recognition in state agencies and institutions of higher education of industrial insurance programs that provide safe working environments and promote early return-to-work for injured employees will encourage agencies and institutions of higher education to develop these programs. A purpose of this act is to provide incentives for agencies and institutions of higher education to participate in industrial insurance safety programs and return-to-work programs by authorizing use of the industrial insurance premium refunds earned by agencies or institutions of higher education participating in industrial insurance retrospective rating programs. Since agency and institution of higher education retrospective rating refunds are generated from safety performance and cannot be set at predictable levels determined by the budget process, the incentive awards should not impact an agency's or institution of higher education's legislatively approved budget.",              and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Schow, the Senate concurred in the House amendment to Substitute Senate Bill No. 5965.


      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5965, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5965, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Absent: Senator Kline - 1.     Excused: Senators McCaslin and Snyder - 2..       SUBSTITUTE SENATE BILL NO. 5965, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 16, 1997


MR. PRESIDENT:

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

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. This chapter may be cited as the Uniform Motor Vehicle and Driver Records Disclosure Act.     NEW SECTION. Sec. 2. The purpose of this chapter is to implement the federal Driver's Privacy Protection Act of 1994 (Title XXX P.L. 103-322). The legislature finds that the people of the state of Washington recognize the public benefit derived from motor vehicle registration and titling, driver licensing, and the issuance of identification documentation, and that the people recognize the need to provide personal information to the state of Washington and its agencies in order to properly maintain records on these activities.           The legislature further finds that the people have a right to expect that personal information maintained in motor vehicle and driver records will be used only for purposes relating to the ownership or operation of a motor vehicle, for purposes of public safety, and as otherwise expressly required or permitted by law.                It is the intent of this act to protect the interests of individuals in their personal privacy by prohibiting the disclosure and use of personal information contained in their motor vehicle and driver records, except as authorized by those individuals or by law.         NEW SECTION. Sec. 3. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.               (1) "Disclose" means to engage in any practice or conduct to make available and make known personal information contained in a motor vehicle or driver record about a person to any other person, organization, or entity, by any means of communication.            (2) "Individual record" is a motor vehicle or driver record containing personal information about a designated person who is the subject of the record as identified in a request.              (3) "Motor vehicle or driver record" means any record that pertains to a motor vehicle operator's or driver's license or permit, motor vehicle registration, motor vehicle title, or identification document issued by the department of licensing, or other state or local agency authorized to issue any of such forms of credentials.         (4) "Person" means an individual, organization, or entity, but does not include the state of Washington or an agency thereof.      (5) "Personal information" means information that identifies a person, including an individual's photograph or computerized image, social security number, driver identification number, name, address (but not the five-digit zip code), telephone number, and medical or disability information, but does not include information on vehicular accidents, driving or equipment-related violations, and driver's license or registration status.     (6) "Record" includes all books, papers, photographs, photostats, cards, films, tapes, recordings, electronic data, printouts, or other documentary materials regardless of physical form or characteristics.           NEW SECTION. Sec. 4. Notwithstanding chapter 42.17 RCW to the contrary, except as provided in section 5, 6, or 7 of this act, the department and any officer, employee, agent, or contractor thereof shall not disclose personal information about any person obtained by the department in connection with a motor vehicle or driver record.            NEW SECTION. Sec. 5. Personal information referred to in section 4 of this act shall be disclosed for use in connection with matters of motor vehicle or driver safety and theft, motor vehicle emissions, motor vehicle product alterations, recalls, or advisories, performance monitoring of motor vehicles and dealers by motor vehicle manufacturers, and removal of nonowner records from the original owner records of motor vehicle manufacturers to carry out the purposes of the Federal Automobile Information Disclosure Act, 15 U.S.C. Sec. 1231 et seq., the Motor Vehicle Information and Cost Saving Act, 15 U.S.C. Sec. 1901 et seq., the National Traffic and Motor Vehicle Safety Act of 1966, 15 U.S.C. Sec. 1381 et seq., the Anti-Car Theft Act of 1992, 15 U.S.C. Sec. 2021 et seq., and the Clean Air Act, 42 U.S.C. Sec. 7401 et seq.             NEW SECTION. Sec. 6. Nothing in this chapter prevents the disclosure of personal information referred to in section 4 of this act to a requesting person if the person demonstrates, in a form and manner prescribed by the department, that the person has obtained the written consent of the person who is the subject of the information.         NEW SECTION. Sec. 6. Personal information referred to in section 4 of this act may be disclosed as otherwise permitted by law to any person by the department, its officers, employees, or contractors, on proof of the identity of the person requesting a record or records and representation by such person that the use of the personal information will be strictly limited to one or more of the following described uses:                     (1) For use by any government agency, including any court or law enforcement agency, in carrying out its functions;            (2) For use in connection with matters of motor vehicle or driver safety and theft; motor vehicle emissions; motor vehicle product alterations, recalls, or advisories; performance monitoring of motor vehicles, motor vehicle parts, and dealers; and removal of nonowner records from the original owner records of motor vehicle manufacturers;                  (3) For use in the normal course of business by a legitimate business or its agents, employees, or contractors, but only:    (a) To verify the accuracy of personal information submitted by the individual to the business or its agents, employees, or contractors; and     (b) If such information as so submitted is not correct or is no longer correct, to obtain the correct information, but only for the purposes of preventing fraud by, pursuing legal remedies against, or recovering on a debt or security interest against, the individual;                  (4) For use in connection with any civil, criminal, administrative, or arbitral proceeding in any court or government agency or before any self-regulatory body, including the service of process, investigation in anticipation of litigation, and the execution or enforcement of judgments and orders, or pursuant to an order of any court;           (5) For use in research activities, and for use in producing statistical reports, so long as the personal information is not published, redisclosed, or used to contact individuals;      (6) For use by any insurer or insurance support organization, or by a self-insured entity, or its agents, employees, or contractors, in connection with claims investigation activities, anti-fraud activities, rating, or underwriting;                     (7) For use in providing notice to the legal and registered owners of towed or impounded vehicles;      (8) For use by any licensed private investigative agency or licensed security service for any purpose permitted under this section;

      (9) For use by an employer or its agent or insurer to obtain or verify information relating to a holder of a commercial driver's license that is required under the Commercial Motor Vehicle Safety Act of 1986 (49 U.S.C. App. 2710 et seq.);                  (10) For use in connection with matters of public interest where the use is related to operation of a motor vehicle or to public safety, including disclosure to the news media for public dissemination. For purposes of this subsection, the use of personal information is related to public safety if it concerns the physical safety or security of citizens as drivers, passengers, or pedestrians and their vehicles or property; and                   (11) For any other use specifically authorized by law that is related to the operation of a motor vehicle or public safety.        NEW SECTION. Sec. 7. Disclosure of personal information required or permitted under sections 5 through 7 of this act shall be subject to payment by the requesting person to the department of all fees for the information required by statute, regulation, administrative practice, or the terms of any contract with the requesting person, on such terms for payment as may be required or agreed, or as may be determined by the department within the constraints of law.         NEW SECTION. Sec. 8. In addition to provisions for payment of applicable fees, the department may, prior to the disclosure of personal information as permitted under sections 5 through 7 of this act, require the meeting of conditions by the requesting person for the purposes of obtaining reasonable assurance concerning the identity of such requesting person, and, to the extent required, that the use will be only as authorized, or the consent of the person who is the subject of the information has been obtained. Such conditions may include, but need not be limited to, the making and filing of a written application in such form and containing such information and certification requirements as the department may prescribe.        NEW SECTION. Sec. 9. An authorized recipient of personal information may resell or redisclose the information for any use permitted under section 7 of this act if such resale or redisclosure is otherwise permitted by law, and subject to any applicable agreement with the department.        NEW SECTION. Sec. 10. Any social security number obtained from a person applying for or renewing a noncommercial driver's license shall be used solely for the purpose of verifying the validity of the number with the social security administration, as required by the federal illegal immigration act, P.L. 104-208. Once the validity of the number has been established, all record of the number shall be destroyed and no record of the number shall be maintained by the department of licensing or its contractors or agents.     NEW SECTION. Sec. 11. The department is authorized to adopt rules to carry out the purposes of this chapter.         NEW SECTION. Sec. 12. Any person requesting the disclosure of personal information from department records who knowingly misrepresents his or her identity or knowingly makes a false statement to the department on any application required to be submitted pursuant to this chapter shall be guilty of false swearing, a gross misdemeanor, under RCW 9A.72.040.         Sec. 13. 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 RCW 82.32.330 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) Personal information maintained by the department of licensing in connection with motor vehicle or driver records, as provided in section 4 of this act.               (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.      Sec. 14. RCW 46.12.370 and 1982 c 215 s 1 are each amended to read as follows:             In addition to any other authority which it may have, and subject to section 4 of this act, the department of licensing may furnish lists of registered and legal owners of motor vehicles only for the purposes specified in this section to:                 (1) The manufacturers of motor vehicles, or their authorized agents, to be used to enable those manufacturers to carry out the provisions of the Federal Automobile Information Disclosure Act (15 U.S.C. Sec. 1231 et seq.), the Motor Vehicle Information and Cost Saving Act (15 U.S.C. Sec. 1901 et seq.), the National Traffic and Motor Vehicle Safety Act of 1966 (15 U.S.C. Sec. ((1382-1418)) 1381 et seq.), the Anti-Car Theft Act of 1992 (15 U.S.C. Sec. 2021 et seq.), and the Clean Air Act (42 U.S.C. Sec. 7401 et seq.), including amendments or additions thereto, respecting safety-related defects in motor vehicles;                  (2) Any governmental agency of the United States or Canada, or political subdivisions thereof, to be used by it or by its authorized commercial agents or contractors only in connection with the enforcement of motor vehicle or traffic laws by, or programs related to traffic safety of, that government agency. Only such parts of the list as are required for completion of the work required of the agent or contractor shall be provided to such agent or contractor; or       (3) Any business regularly making loans to other persons to finance the purchase of motor vehicles, to be used to assist the person requesting the list to determine ownership of specific vehicles for the purpose of determining whether or not to provide such financing. In the event a list of registered and legal owners of motor vehicles is used for any purpose other than that authorized in subsections (1), (2) and (3) of this section, the manufacturer, governmental agency, financial institution or their authorized agents or contractors responsible for the unauthorized disclosure or use will be denied further access to such information by the department of licensing.                Sec. 15. RCW 46.12.380 and 1995 c 254 s 10 are each amended to read as follows:           (1) Notwithstanding the provisions of chapter 42.17 RCW, the name or address of an individual vehicle owner shall not be released by the department, county auditor, or agency or firm authorized by the department except as provided in section 5, 6, or 7 of this act and under the following circumstances:   (a) The requesting party is a business entity that requests the information for use in the course of business;      (b) The request is a written request that is signed by the person requesting disclosure that contains the full legal name and address of the requesting party, that specifies the purpose for which the information will be used; and       (c) The requesting party enters into a disclosure agreement with the department in which the party promises that the party will use the information only for the purpose stated in the request for the information; and that the party does not intend to use, or facilitate the use of, the information for the purpose of making any unsolicited business contact with a person named in the disclosed information. The term "unsolicited business contact" means a contact that is intended to result in, or promote, the sale of any goods or services to a person named in the disclosed information. The term does not apply to situations where the requesting party and such person have been involved in a business transaction prior to the date of the disclosure request and where the request is made in connection with the transaction.                 (2) The disclosing entity shall retain the request for disclosure for three years.        (3) Whenever the disclosing entity grants a request for information under this section by an attorney or private investigator, the disclosing entity shall provide notice to the vehicle owner, to whom the information applies, that the request has been granted. The notice also shall contain the name and address of the requesting party.         (4) Any person who is furnished vehicle owner information under this section shall be responsible for assuring that the information furnished is not used for a purpose contrary to the agreement between the person and the department.      (5) This section shall not apply to requests for information by governmental entities or requests that may be granted under any other provision of this title expressly authorizing the disclosure of the names or addresses of vehicle owners. Governmental entities that are exempt from the prohibition on receiving the name or address of an individual vehicle owner under this subsection, may disclose such information to any person, as defined under section 3 of this act, based on information demonstrating a reasonable suspicion of serious threat to person or property in relation to any person's operation of a motor vehicle or public safety.                (6) This section shall not apply to title history information under RCW 19.118.170.       Sec. 16. RCW 46.52.060 and 1979 c 158 s 161 are each amended to read as follows:        It shall be the duty of the chief of the Washington state patrol to file, tabulate, and analyze all accident reports and to publish annually, immediately following the close of each fiscal year, and monthly during the course of the year, statistical information based thereon showing the number of accidents, the location, the frequency and circumstances thereof and other statistical information which may prove of assistance in determining the cause of vehicular accidents.            Such accident reports and analysis or reports thereof shall be available to the director of licensing, the department of transportation, the utilities and transportation commission, or their duly authorized representatives, for further tabulation and analysis for pertinent data relating to the regulation of highway traffic, highway construction, vehicle operators and all other purposes, and to publish information so derived as may be deemed of publication value, within the constraints of section 4 of this act.             Sec. 17. RCW 46.52.120 and 1993 c 501 s 12 are each amended to read as follows:         (1) The director shall keep a case record on every motor vehicle driver licensed under the laws of this state, together with information on each driver, showing all the convictions and findings of traffic infractions certified by the courts, together with an index cross-reference record of each accident reported relating to such individual with a brief statement of the cause of the accident. The chief of the Washington state patrol shall furnish the index cross-reference record to the director, with reference to each driver involved in the reported accidents.        (2) The records shall be for the confidential use of the director, the chief of the Washington state patrol, the director of the Washington traffic safety commission, and for such police officers or other cognizant public officials as may be designated by law, and shall not be disclosed except as permitted under section 5, 6, or 7 of this act and as otherwise permitted by law. Such case records shall not be offered as evidence in any court except in case appeal is taken from the order of the director, suspending, revoking, canceling, or refusing a vehicle driver's license.                (3) The director shall tabulate and analyze vehicle driver's case records and suspend, revoke, cancel, or refuse a vehicle driver's license to a person when it is deemed from facts contained in the case record of such person that it is for the best interest of public safety that such person be denied the privilege of operating a motor vehicle. Whenever the director orders the vehicle driver's license of any such person suspended, revoked, or canceled, or refuses the issuance of a vehicle driver's license, such suspension, revocation, cancellation, or refusal is final and effective unless appeal from the decision of the director is taken as provided by law.                    Sec. 18. RCW 46.52.130 and 1996 c 307 s 4 and 1996 c 183 s 2 are each reenacted and amended to read as follows:      A certified abstract of the driving record shall be furnished only to the individual named in the abstract, an employer or prospective employer or an agent acting on behalf of an employer or prospective employer if the named individual's employment involves the operation of a motor vehicle, the insurance carrier that has insurance in effect covering the employer or a prospective employer, the insurance carrier that has insurance in effect covering the named individual, the insurance carrier to which the named individual has applied, an alcohol/drug assessment or treatment agency approved by the department of social and health services, to which the named individual has applied or been assigned for evaluation or treatment, or city and county prosecuting attorneys. For purposes of section 7(10) of this act, the disclosure of personal information contained in the abstract of the driving record to an alcohol/drug assessment or treatment agency shall be authorized for purposes of public safety. City attorneys and county prosecuting attorneys may provide the driving record to alcohol/drug assessment or treatment agencies approved by the department of social and health services to which the named individual has applied or been assigned for evaluation or treatment. The director, upon proper request, shall furnish a certified abstract covering the period of not more than the last three years to insurance companies. Upon proper request, the director shall furnish a certified abstract covering a period of not more than the last five years to state approved alcohol/drug assessment or treatment agencies, except that the certified abstract shall also include records of alcohol-related offenses as defined in RCW 46.01.260(2) covering a period of not more than the last ten years. Upon proper request, a certified abstract of the full driving record maintained by the department shall be furnished to a city or county prosecuting attorney, to the individual named in the abstract or to an employer or prospective employer or an agent acting on behalf of an employer or prospective employer of the named individual. The abstract, whenever possible, shall include an enumeration of motor vehicle accidents in which the person was driving; the total number of vehicles involved; whether the vehicles were legally parked or moving; whether the vehicles were occupied at the time of the accident; any reported convictions, forfeitures of bail, or findings that an infraction was committed based upon a violation of any motor vehicle law; and the status of the person's driving privilege in this state. The enumeration shall include any reports of failure to appear in response to a traffic citation or failure to respond to a notice of infraction served upon the named individual by an arresting officer. Certified abstracts furnished to prosecutors and alcohol/drug assessment or treatment agencies shall also indicate whether a recorded violation is an alcohol-related offense as defined in RCW 46.01.260(2) that was originally charged as one of the alcohol-related offenses designated in RCW 46.01.260(2)(((a)(i))) (b)(i).             The abstract provided to the insurance company shall exclude any information, except that related to the commission of misdemeanors or felonies by the individual, pertaining to law enforcement officers or fire fighters as defined in RCW 41.26.030, or any officer of the Washington state patrol, while driving official vehicles in the performance of occupational duty. The abstract provided to the insurance company shall include convictions for RCW 46.61.525 (1) and (2) except that the abstract shall report them only as negligent driving without reference to whether they are for first or second degree negligent driving. The abstract provided to the insurance company shall exclude any deferred prosecution under RCW 10.05.060, except that if a person is removed from a deferred prosecution under RCW 10.05.090, the abstract shall show the deferred prosecution as well as the removal.       The director shall collect for each abstract the sum of four dollars and fifty cents which shall be deposited in the highway safety fund.        Any insurance company or its agent receiving the certified abstract shall use it exclusively for its own underwriting purposes and shall not divulge any of the information contained in it to a third party. No policy of insurance may be canceled, nonrenewed, denied, or have the rate increased on the basis of such information unless the policyholder was determined to be at fault. No insurance company or its agent for underwriting purposes relating to the operation of commercial motor vehicles may use any information contained in the abstract relative to any person's operation of motor vehicles while not engaged in such employment, nor may any insurance company or its agent for underwriting purposes relating to the operation of noncommercial motor vehicles use any information contained in the abstract relative to any person's operation of commercial motor vehicles.                Any employer or prospective employer or an agent acting on behalf of an employer or prospective employer receiving the certified abstract shall use it exclusively for his or her own purpose to determine whether the licensee should be permitted to operate a commercial vehicle or school bus upon the public highways of this state and shall not divulge any information contained in it to a third party.               Any alcohol/drug assessment or treatment agency approved by the department of social and health services receiving the certified abstract shall use it exclusively for the purpose of assisting its employees in making a determination as to what level of treatment, if any, is appropriate. The agency, or any of its employees, shall not divulge any information contained in the abstract to a third party.      Release of a certified abstract of the driving record of an employee or prospective employee requires a statement signed by: (1) The employee or prospective employee that authorizes the release of the record, and (2) the employer attesting that the information is necessary to determine whether the licensee should be employed to operate a commercial vehicle or school bus upon the public highways of this state. If the employer or prospective employer authorizes an agent to obtain this information on their behalf, this must be noted in the statement.                  Any violation of this section is a gross misdemeanor.            Sec. 19. RCW 46.63.020 and 1996 c 307 s 6, 1996 c 287 s 7, 1996 c 93 s 3, 1996 c 87 s 21, and 1996 c 31 s 3 are each reenacted and amended to read as follows:      Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:                (1) Section 13 of this act relating to misrepresentation of identity or making a false statement to the department on an application for personal information;      (2) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;          (((2))) (3) RCW 46.09.130 relating to operation of nonhighway vehicles;        (((3))) (4) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;   (((4))) (5) RCW 46.10.130 relating to the operation of snowmobiles;                   (((5))) (6) Chapter 46.12 RCW relating to certificates of ownership and registration and markings indicating that a vehicle has been destroyed or declared a total loss;      (((6))) (7) RCW 46.16.010 relating to initial registration of motor vehicles;         (((7))) (8) RCW 46.16.011 relating to permitting unauthorized persons to drive;      (((8))) (9) RCW 46.16.160 relating to vehicle trip permits;                   (((9))) (10) RCW 46.16.381 (6) or (9) relating to unauthorized use or acquisition of a special placard or license plate for disabled persons' parking;                      (((10))) (11) RCW 46.20.021 relating to driving without a valid driver's license, unless the person cited for the violation provided the citing officer with an expired driver's license or other valid identifying documentation under RCW 46.20.035 at the time of the stop and was not in violation of RCW 46.20.342(1) or 46.20.420, in which case the violation is an infraction;            (((11))) (12) RCW 46.20.091 relating to false statements regarding a driver's license or instruction permit;         (((12))) (13) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;               (((13))) (14) RCW 46.20.342 relating to driving with a suspended or revoked license or status;                     (((14))) (15) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;                  (((15))) (16) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;              (((16))) (17) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;       (((17))) (18) RCW 46.25.170 relating to commercial driver's licenses;      (((18))) (19) Chapter 46.29 RCW relating to financial responsibility;                   (((19))) (20) RCW 46.30.040 relating to providing false evidence of financial responsibility;             (((20))) (21) RCW 46.37.435 relating to wrongful installation of sunscreening material;      (((21))) (22) RCW 46.44.180 relating to operation of mobile home pilot vehicles;               (((22))) (23) RCW 46.48.175 relating to the transportation of dangerous articles;             (((23))) (24) RCW 46.52.010 relating to duty on striking an unattended car or other property;      (((24))) (25) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;      (((25))) (26) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;                (((26))) (27) RCW 46.52.100 relating to driving under the influence of liquor or drugs;         (((27))) (28) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;                    (((28))) (29) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;                   (((29))) (30) RCW 46.55.035 relating to prohibited practices by tow truck operators;                (((30))) (31) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;   (((31))) (32) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;              (((32))) (33) RCW 46.61.022 relating to failure to stop and give identification to an officer;                    (((33))) (34) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;     (((34))) (35) RCW 46.61.500 relating to reckless driving;     (((35))) (36) RCW 46.61.502 and 46.61.504 relating to persons under the influence of intoxicating liquor or drugs;        (((36))) (37) RCW 46.61.503 relating to a person under age twenty-one driving a motor vehicle after consuming alcohol;                  (((37))) (38) RCW 46.61.520 relating to vehicular homicide by motor vehicle;      (((38))) (39) RCW 46.61.522 relating to vehicular assault;                    (((39))) (40) RCW 46.61.525(1) relating to first degree negligent driving;              (((40))) (41) RCW 46.61.527(4) relating to reckless endangerment of roadway workers;                (((41))) (42) RCW 46.61.530 relating to racing of vehicles on highways;                   (((42))) (43) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;        (((43))) (44) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;      (((44))) (45) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;             (((45))) (46) Chapter 46.65 RCW relating to habitual traffic offenders;                  (((46))) (47) RCW 46.68.010 relating to false statements made to obtain a refund;      (((47))) (48) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;      (((48))) (49) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;             (((49))) (50) RCW 46.--.-- (section 9, chapter 87, Laws of 1996) relating to limousine carrier insurance;      (((50))) (51) RCW 46.--.-- (section 10, chapter 87, Laws of 1996) relating to operation of a limousine without a vehicle certificate;      (((51))) (52) RCW 46.--.-- (section 11, chapter 87, Laws of 1996) relating to false advertising by a limousine carrier;      (((52))) (53) Chapter 46.80 RCW relating to motor vehicle wreckers;                  (((53))) (54) Chapter 46.82 RCW relating to driver's training schools;            (((54))) (55) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;                 (((55))) (56) RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW.               NEW SECTION. Sec. 20. Sections 1 through 13 of this act constitute a new chapter in Title 46 RCW, to be codified between chapters 46.04 and 46.08 RCW.              NEW SECTION. Sec. 21. This act takes effect September 13, 1997.",               and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Wood moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5718 and requests of the House a conference thereon.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Wood that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5718.

      The motion by Senator Wood carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5718 and requests of the House a conference thereon.


APPOINTMENT OF CONFERENCE COMMITTEE


      The President appointed as members of the Conference Committee on Substitute Senate Bill No. 5718 and the House amendment thereon: Senators Wood, Haugen and Horn.


MOTION


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


MESSAGE FROM THE HOUSE

April 8, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5028 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 35.50.030 and 1983 c 303 s 18 are each amended to read as follows:         If on the first day of January in any year, two installments of any local improvement assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, the city or town shall proceed with the foreclosure of the delinquent assessment or delinquent installments thereof by proceedings brought in its own name in the superior court of the county in which the city or town is situate.             The proceedings shall be commenced on or before March 1st of that year or on or before such other date in such year as may be fixed by general ordinance, but not before the city or town treasurer has notified by certified mail the persons whose names appear on the assessment roll as owners of the property charged with the assessments or installments which are delinquent, at the address last known to the treasurer, a notice thirty days before the commencement of the proceedings. If the person whose name appears on the tax rolls of the county assessor as owner of the property, or the address shown for the owner, differs from that appearing on the city or town assessment roll, then the treasurer shall also mail a copy of the notice to that person or that address.            The notice shall state the amount due, including foreclosure costs, upon each separate lot, tract, or parcel of land and the date after which the proceedings will be commenced. The city or town treasurer shall file with the clerk of the superior court at the time of commencement of the foreclosure proceeding the affidavit of the person who mailed the notices. This affidavit shall be conclusive proof of compliance with the requirements of this section.    Sec. 2. RCW 35.50.040 and 1965 c 7 s 35.50.040 are each amended to read as follows:                When the local improvement assessment is payable in installments, the enforcement of the lien of any installment shall not prevent the enforcement of the lien of any subsequent installment.                 A city or town may by general ordinance provide that upon failure to pay any installment due the entire assessment shall become due and payable and the collection thereof enforced by foreclosure: PROVIDED, That the payment of all delinquent installments together with interest, penalty, and administrative costs at any time before entry of judgment in foreclosure shall extend the time of payment on the remainder of the assessments as if there had been no delinquency or foreclosure. Where foreclosure of two installments of the same assessment on any lot, tract, or parcel is sought, the city or town treasurer shall cause such lot, tract, or parcel to be dismissed from the action, if the installment first delinquent together with interest, penalty, administrative costs, and charges is paid at any time before sale.                 Sec. 3. RCW 35.50.260 and 1983 c 303 s 21 are each amended to read as follows:             In foreclosing local improvement assessments the action shall be tried to the court without a jury. If the parties interested in any particular lot, tract, or parcel default, the court may enter judgment of foreclosure and sale as to such parties and lots, tracts, or parcels and the action may proceed as to the remaining defendants and lots, tracts, or parcels. Judgment and order of sale may be entered as to any one or more separate lots, tracts, or parcels involved in the action and the court shall retain jurisdiction to others.        The judgment shall specify separately the amount of the installments with interest, penalty, and all reasonable administrative costs, including, but not limited to, the title searches, chargeable to each lot, tract, or parcel. The judgment shall have the effect of a separate judgment as to each lot, tract, or parcel described in the judgment, and any appeal shall not invalidate or delay the judgment except as to the property concerning which the appeal is taken. In the judgment the court shall order the lots, tracts, or parcels therein described sold by the city or town treasurer or by the county sheriff and an order of sale shall issue pursuant thereto for the enforcement of the judgment.                In all other respects, the trial, judgment, and appeals to the supreme court or the court of appeals shall be governed by the statutes governing the foreclosure of mortgages on real property.           Prior to the sale of the property, if the property is shown on the property tax rolls under unknown owner or if the property contains a residential structure having an assessed value of two thousand dollars or more, the treasurer shall order or conduct a title search of the property to determine the record title holders and all persons claiming a mortgage, deed of trust, or mechanic's, laborer's, materialmen's, or vendor's lien on the property.            At least thirty days prior to the sale of the property, a copy of the notice of sale shall be mailed by certified and regular mail to all defendants in the foreclosure action as to that parcel, lot, or tract and, if the owner is unknown or the property contains a residential structure having an assessed value of two thousand dollars or more, a copy of the notice of sale shall be mailed by regular and certified mail to any additional record title holders and persons claiming a mortgage, deed of trust, or mechanic's, laborer's, materialmen's, or vendor's lien on the property.      In all other respects the procedure for sale shall be conducted in the same manner as property tax sales described in RCW 84.64.080.       Sec. 4. RCW 36.29.020 and 1991 c 245 s 5 are each amended to read as follows:               The county treasurer shall keep all moneys belonging to the state, or to any county, in his or her own possession until disbursed according to law. The county treasurer shall not place the same in the possession of any person to be used for any purpose; nor shall he or she loan or in any manner use or permit any person to use the same; but it shall be lawful for a county treasurer to deposit any such moneys in any regularly designated qualified public depositary. Any municipal corporation may by action of its governing body authorize any of its funds which are not required for immediate expenditure, and which are in the custody of the county treasurer or other municipal corporation treasurer, to be invested by such treasurer. The county treasurer may invest in savings or time accounts in designated qualified public depositaries or in certificates, notes, or bonds of the United States, or other obligations of the United States or its agencies, or of any corporation wholly owned by the government of the United States; in bankers' acceptances purchased on the secondary market, in federal home loan bank notes and bonds, federal land bank bonds and federal national mortgage association notes, debentures and guaranteed certificates of participation, or the obligations of any other government sponsored corporation whose obligations are or may become eligible as collateral for advances to member banks as determined by the board of governors of the federal reserve system or deposit such funds or any portion thereof in investment deposits as defined in RCW 39.58.010 secured by collateral in accordance with the provisions of chapters 39.58 and 39.59 RCW: PROVIDED, Five percent of the earnings, with an annual maximum of fifty dollars, on each transaction authorized by the governing body shall be paid as an investment service fee to the office of the county treasurer or other municipal corporation treasurer when the earnings become available to the governing body: PROVIDED FURTHER, That if such investment service fee amounts to five dollars or less the county treasurer or other municipal corporation treasurer may waive such fee.           Whenever the funds of any municipal corporation which are not required for immediate expenditure are in the custody or control of the county treasurer, and the governing body of such municipal corporation has not taken any action pertaining to the investment of any such funds, the county finance committee shall direct the county treasurer, under the investment policy of the county finance committee, to invest, to the maximum prudent extent, such funds or any portion thereof in savings or time accounts in designated qualified public depositaries or in certificates, notes, or bonds of the United States, or other obligations of the United States or its agencies, or of any corporation wholly owned by the government of the United States, in bankers' acceptances purchased on the secondary market, in federal home loan bank notes and bonds, federal land bank bonds and federal national mortgage association notes, debentures and guaranteed certificates of participation, or the obligations of any other government sponsored corporation whose obligations are or may become eligible as collateral for advances to member banks as determined by the board of governors of the federal reserve system or deposit such funds or any portion thereof in investment deposits as defined in RCW 39.58.010 secured by collateral in accordance with the provisions of chapters 39.58 and 39.59 RCW: PROVIDED, That the county treasurer shall have the power to select the specific qualified financial institution in which the funds may be invested. The interest or other earnings from such investments or deposits shall be deposited in the current expense fund of the county and may be used for general county purposes. The investment or deposit and disposition of the interest or other earnings therefrom authorized by this paragraph shall not apply to such funds as may be prohibited by the state Constitution from being so invested or deposited.         Sec. 5. RCW 36.34.090 and 1991 c 363 s 69 are each amended to read as follows:           Whenever county property is to be sold at public auction, consignment auction, or sealed bid, the county ((auditor)) treasurer or the county treasurer's designee shall publish notice thereof once during each of two successive calendar weeks in a newspaper of general circulation in the county. Notice thereof must also be posted in a conspicuous place in the courthouse. The posting and date of first publication must be at least ten days before the day fixed for the sale.           Sec. 6. RCW 36.36.045 and 1987 c 381 s 2 are each amended to read as follows:               The county shall have a lien for any delinquent fees imposed for the withdrawal of subterranean water or on-site sewage disposal, which shall attach to the property to which the fees were imposed, if the following conditions are met:              (1) At least eighteen months have passed since the first billing for a delinquent fee installment; and              (2) At least three billing notices and a letter have been mailed to the property owner, within the period specified in subsection (1) of this section, explaining that a lien may be imposed for any delinquent fee installment that has not been paid in that period.           The lien shall otherwise be subject to the provisions of chapter 36.94 RCW related to liens for delinquent charges. The county shall record liens for any delinquent fees in the office of the county auditor. Failure on the part of the county to record the lien does not affect the validity of the lien.            Sec. 7. RCW 36.88.220 and 1967 ex.s. c 145 s 63 are each amended to read as follows:                  All counties may establish a fund for the purpose of guaranteeing to the extent of such fund and in the manner hereinafter provided, the payment of its road improvement district bonds and warrants issued to pay for any road improvement ordered under this chapter. If the ((board of county commissioners)) county legislative authority shall determine to establish such fund it shall be designated ". . . . . . county road improvement guaranty fund" and from moneys available for road purposes such county shall deposit annually in said guaranty fund such sums as may be necessary to establish and maintain a balance therein equal to at least five percent of the outstanding obligations guaranteed thereby and to make necessary provision in its annual budget therefor. The moneys held in the guaranty fund may be invested in ((obligations of the government of the United States or of this state)) accordance with the laws relating to county investments.                  Sec. 8. RCW 36.88.230 and 1983 c 167 s 96 are each amended to read as follows:          Whenever there shall be paid out of a guaranty fund any sum on account of principal or interest of a road improvement district bond or warrant, the county, as trustee for the fund, shall be subrogated to all the rights of the owner of the bond or any interest coupon or warrant so paid, and the proceeds thereof, or of the assessment underlying the same, shall become part of the guaranty fund. There shall also be paid into each guaranty fund the interest received from ((bank deposits or government securities)) investment of the fund, as well as any surplus remaining in any local improvement fund guaranteed hereunder after the payment of all outstanding bonds or warrants payable primarily out of such road improvement fund. Warrants drawing interest at a rate or rates not to exceed the rate determined by the county legislative authority shall be issued, as other warrants are issued by the county, against a guaranty fund to meet any liability accruing against it, and at the time of making its annual budget and tax levy the county shall provide from funds available for road purposes for the deposit in the guaranty fund of a sum sufficient with other resources of such fund to pay warrants so issued during the preceding fiscal year. As among the several issues of bonds or warrants guaranteed by the fund no preference shall exist, but defaulted bonds, interest payments, and warrants shall be purchased out of the fund in the order of their presentation.             Every county establishing a guaranty fund for road improvement district bonds or warrants shall prescribe by resolution appropriate rules and regulations for the maintenance and operation of the guaranty fund not inconsistent herewith. So much of the money of a guaranty fund as is necessary may be used to purchase underlying bonds or warrants guaranteed by the fund, or to purchase certificates of delinquency for general taxes on property subject to local improvement assessments, or to purchase such property at tax foreclosures, for the purpose of protecting the guaranty fund. Said fund shall be subrogated to the rights of the county, and the county, acting on behalf of said fund, may foreclose the lien of general tax certificates of delinquency and purchase the property at the foreclosure sale for the account of said fund. Whenever the legislative authority of any county shall so cause a lien of general tax certificates of delinquency to be foreclosed and the property to be so purchased at a foreclosure sale, the court costs and costs of publication and expenses for clerical work and/or other expense incidental thereto, shall be chargeable to and payable from the guaranty fund. After so acquiring title to real property, a county may lease or sell and convey the same at public or private sale for such price and on such terms as may be determined by resolution of the county legislative body, and all proceeds resulting from such sales shall belong to and be paid into the guaranty fund.                   Sec. 9. RCW 36.94.150 and 1975 1st ex.s. c 188 s 3 are each amended to read as follows:    All counties operating a system of sewerage and/or water shall have a lien for delinquent connection charges and charges for the availability of sewerage and/or water service, together with interest fixed by resolution at eight percent per annum from the date due until paid. Penalties of not more than ten percent of the amount due may be imposed in case of failure to pay the charges at times fixed by resolution. The lien shall be for all charges, interest, and penalties and shall attach to the premises to which the services were available. The lien shall be superior to all other liens and encumbrances, except general taxes and local and special assessments of the county.            The county department established in RCW 36.94.120 shall certify periodically the delinquencies to the ((treasurer)) auditor of the county at which time the lien shall attach.          Upon the expiration of sixty days after the attachment of the lien, the county may bring suit in foreclosure by civil action in the superior court of the county where the property is located. Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action. In addition to the costs and disbursements provided by statute, the court may allow the county a reasonable attorney's fee. The lien shall be foreclosed in the same manner as the foreclosure of real property tax liens.             Sec. 10. RCW 53.36.050 and 1959 c 52 s 2 are each amended to read as follows:               The county treasurer acting as port treasurer shall create a fund to be known as the "Port of . . . . . . Fund," into which shall be paid all money received by him from the collection of taxes in behalf of such port district, and shall also maintain such other special funds as may be created by the port commission into which shall be placed such moneys as the port commission may by its resolution direct. All such port funds shall be deposited with the county depositories under the same restrictions, contracts and security as is provided by statute for county depositories and all interest collected on such port funds shall belong to such port district and shall be deposited to its credit in the proper port funds: PROVIDED, That any portion of such port moneys determined by the port commission to be in excess of the current needs of the port district may be invested ((in certificates, notes, bonds, or other obligations of the United States of America, or any agency or instrumentality thereof)) by the county treasurer in accordance with RCW 36.29.020, RCW 36.29.022, and chapter 39.59 RCW, and all interest collected thereon shall likewise belong to such port district and shall be deposited to its credit in the proper port funds.             Sec. 11. RCW 58.08.040 and 1994 c 301 s 16 are each amended to read as follows:      Prior to any person ((filing)) recording a plat, replat, altered plat, or binding site plan subsequent to May 31st in any year and prior to the date of the collection of taxes in the ensuing year, the person shall deposit with the county treasurer a sum equal to the product of the county assessor's latest valuation on the property less improvements in such subdivision multiplied by the current year's dollar rate increased by twenty-five percent on the property platted. The treasurer's receipt shall be evidence of the payment. The treasurer shall appropriate so much of the deposit as will pay the taxes and assessments on the property when the levy rates are certified by the assessor using the value of the property at the time of filing a plat, replat, altered plat, or binding site plan, and in case the sum deposited is in excess of the amount necessary for the payment of the taxes and assessments, the treasurer shall return, to the party depositing, the amount of excess.      Sec. 12. RCW 84.38.020 and 1995 c 329 s 1 are each amended to read as follows:             Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:            (1) "Claimant" means a person who either elects or is required under RCW 84.64.050 to defer payment of the special assessments and/or real property taxes accrued on the claimant's residence by filing a declaration to defer as provided by this chapter.                 When two or more individuals of a household file or seek to file a declaration to defer, they may determine between them as to who the claimant shall be.           (2) "Department" means the state department of revenue.        (3) "Equity value" means the amount by which the fair market value of a residence as determined from the records of the county assessor exceeds the total amount of any liens or other obligations against the property.           (4) "Local government" means any city, town, county, water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi municipal corporation, or other political subdivision authorized to levy special assessments.      (5) "Real property taxes" means ad valorem property taxes levied on a residence in this state in the preceding calendar year.      (((5))) (6) "Residence" has the meaning given in RCW 84.36.383, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations.                     (((6))) (7) "Special assessment" means the charge or obligation imposed by a ((city, town, county, or other municipal corporation)) local government upon property specially benefited ((by a local improvement, including assessments under chapters 35.44, 36.88, 36.94, 53.08, 54.16, 56.20, 57.16, 86.09, and 87.03 RCW and any other relevant chapter)).             Sec. 13. RCW 84.38.020 and 1996 c 230 s 1614 are each amended to read as follows:          Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:                  (1) "Claimant" means a person who either elects or is required under RCW 84.64.050 to defer payment of the special assessments and/or real property taxes accrued on the claimant's residence by filing a declaration to defer as provided by this chapter.          When two or more individuals of a household file or seek to file a declaration to defer, they may determine between them as to who the claimant shall be.             (2) "Department" means the state department of revenue.     (3) "Equity value" means the amount by which the fair market value of a residence as determined from the records of the county assessor exceeds the total amount of any liens or other obligations against the property.                  (4) "Local government" means any city, town, county, water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi municipal corporation, or other political subdivision authorized to levy special assessments.          (5) "Real property taxes" means ad valorem property taxes levied on a residence in this state in the preceding calendar year.           (((5))) (6) "Residence" has the meaning given in RCW 84.36.383, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations.           (((6))) (7) "Special assessment" means the charge or obligation imposed by a ((city, town, county, or other municipal corporation)) local government upon property specially benefited ((by a local improvement, including assessments under chapters 35.44, 36.88, 36.94, 53.08, 54.16, 57.16, 86.09, and 87.03 RCW and any other relevant chapter)).            Sec. 14. RCW 84.56.240 and 1961 c 15 s 84.56.240 are each amended to read as follows:                If the county treasurer is unable, for the want of goods or chattels whereupon to levy, to collect by distress or otherwise, the taxes, or any part thereof, which may have been assessed upon the personal property of any person or corporation, or an executor or administrator, guardian, receiver, accounting officer, agent or factor, ((such)) the treasurer shall file with the county ((auditor)) legislative authority, on the first day of ((January)) February following, a list of such taxes, with an affidavit of ((himself)) the treasurer or of the deputy treasurer entrusted with the collection of ((said)) the taxes, stating that ((he)) the treasurer had made diligent search and inquiry for goods and chattels wherewith to make such taxes, and was unable to make or collect the same. The county ((auditor shall deliver such list and affidavit to the board of county commissioners at their first session thereafter, and they)) legislative authority shall cancel such taxes as ((they are)) the county legislative authority is satisfied cannot be collected.      Sec. 15. RCW 84.56.300 and 1973 1st ex.s. c 45 s 1 are each amended to read as follows:                 On the first Monday of ((January)) February of each year the county treasurer shall balance up the tax rolls as of December 31 of the prior year in ((his)) the treasurer's hands and with which ((he)) the treasurer stands charged on the roll accounts of the county auditor. ((He)) The treasurer shall then report to the county auditor in full the amount of taxes ((he has)) collected and specify the amount collected on each fund. ((He)) The treasurer shall also report the amount of taxes that remain uncollected and delinquent upon the tax rolls, which, with ((his)) collections and credits on account of errors and double assessments, should balance ((his)) the tax rolls ((accounts)) as ((he)) the treasurer stands charged. ((He)) The treasurer shall then report the amount of collections on account of interest since the taxes became delinquent, and as added ((by him)) to the original amounts when making such collections, and with which ((he)) the treasurer is now to be charged by the auditor, such reports to be duly verified by affidavit.     Sec. 16. RCW 84.56.340 and 1996 c 153 s 2 are each amended to read as follows:             Any person desiring to pay taxes upon any part or parts of real property heretofore or hereafter assessed as one parcel, or tract, or upon such person's undivided fractional interest in such a property, may do so by applying to the county assessor, who must carefully investigate and ascertain the relative or proportionate value said part or part interest bears to the whole tract assessed, on which basis the assessment must be divided, and the assessor shall forthwith certify such proportionate value to the county treasurer: PROVIDED, That excepting when property is being acquired for public use, or where a person or financial institution desires to pay the taxes and any penalties and interest on a mobile home upon which they have a lien by mortgage or otherwise, no segregation of property for tax purposes shall be made under this section unless all ((current year and)) delinquent taxes and assessments on the entire tract have been paid in full. ((The county assessor shall duly certify the proportionate value to the county treasurer.)) The county treasurer, upon receipt of certification, shall duly accept payment and issue receipt on the apportionment certified by the county assessor. In cases where protest is filed to said division appeal shall be made to the county legislative authority at its next regular session for final division, and the county treasurer shall accept and receipt for said taxes as determined and ordered by the county legislative authority. Any person desiring to pay on an undivided interest in any real property may do so by paying to the county treasurer a sum equal to such proportion of the entire taxes charged on the entire tract as interest paid on bears to the whole.      NEW SECTION. Sec. 17. A new section is added to chapter 84.40 RCW to read as follows:       (1) When real property is divided in accordance with chapter 58.17 RCW, the assessor shall carefully investigate and ascertain the true and fair value of each lot and assess each lot on that same basis, unless specifically provided otherwise by law. For purposes of this section, "lot" has the same definition as in RCW 58.17.020.   (a) For each lot on which an advance tax deposit has been paid in accordance with RCW 58.08.040, the assessor shall establish the true and fair value by October 30 of the year following the recording of the plat, replat, altered plat, or binding site plan. The value established shall be the value of the lot as of January 1 of the year the original parcel of real property was last revalued. An additional property tax shall not be due on the land until the calendar year following the year for which the advance tax deposit was paid if the deposit was sufficient to pay the full amount of the taxes due on the property.                  (b) For each lot on which an advance tax deposit has not been paid, the assessor shall establish the true and fair value not later than the calendar year following the recording of the plat, map, subdivision, or replat. For purposes of this section, "subdivision" means a division of land into two or more lots.                    (c) For each subdivision, all current year and delinquent taxes and assessments on the entire tract must be paid in full in accordance with RCW 58.17.160 and 58.08.030. For purposes of this section, "current year taxes" means taxes that are collectable under RCW 84.56.010 subsequent to February 14.       (2) When the assessor is required by law to segregate any part or parts of real property, assessed before or after the effective date of this section as one parcel or when the assessor is required by law to combine parcels of real property assessed before or after the effective date of this section as two or more parcels, the assessor shall carefully investigate and ascertain the true and fair value of each part or parts of the real property and each combined parcel and assess each part or parts or each combined parcel on that same basis.      Sec. 18. RCW 84.69.020 and 1996 c 296 s 2 are each amended to read as follows:             On the order of the county treasurer, ad valorem taxes paid before or after delinquency shall be refunded if they were:         (1) Paid more than once; or    (2) Paid as a result of manifest error in description; or           (3) Paid as a result of a clerical error in extending the tax rolls; or        (4) Paid as a result of other clerical errors in listing property; or        (5) Paid with respect to improvements which did not exist on assessment date; or               (6) Paid under levies or statutes adjudicated to be illegal or unconstitutional; or               (7) Paid as a result of mistake, inadvertence, or lack of knowledge by any person exempted from paying real property taxes or a portion thereof pursuant to RCW 84.36.381 through 84.36.389, as now or hereafter amended; or       (8) Paid as a result of mistake, inadvertence, or lack of knowledge by either a public official or employee or by any person with respect to real property in which the person paying the same has no legal interest; or         (9) Paid on the basis of an assessed valuation which was appealed to the county board of equalization and ordered reduced by the board; or                   (10) Paid on the basis of an assessed valuation which was appealed to the state board of tax appeals and ordered reduced by the board: PROVIDED, That the amount refunded under subsections (9) and (10) of this section shall only be for the difference between the tax paid on the basis of the appealed valuation and the tax payable on the valuation adjusted in accordance with the board's order; or               (11) Paid as a state property tax levied upon property, the assessed value of which has been established by the state board of tax appeals for the year of such levy: PROVIDED, HOWEVER, That the amount refunded shall only be for the difference between the state property tax paid and the amount of state property tax which would, when added to all other property taxes within the one percent limitation of Article VII, section 2 of the state Constitution equal one percent of the assessed value established by the board;                (12) Paid on the basis of an assessed valuation which was adjudicated to be unlawful or excessive: PROVIDED, That the amount refunded shall be for the difference between the amount of tax which was paid on the basis of the valuation adjudged unlawful or excessive and the amount of tax payable on the basis of the assessed valuation determined as a result of the proceeding; or                 (13) Paid on property acquired under RCW 84.60.050, and canceled under RCW 84.60.050(2); or            (14) Paid on the basis of an assessed valuation that was reduced under RCW 84.48.065.                     No refunds under the provisions of this section shall be made because of any error in determining the valuation of property, except as authorized in subsections (9), (10), (11), and (12) of this section nor may any refunds be made if a bona fide purchaser has acquired rights that would preclude the assessment and collection of the refunded tax from the property that should properly have been charged with the tax. Any refunds made on delinquent taxes shall include the proportionate amount of interest and penalties paid. The county treasurer may deduct from moneys collected for the benefit of the state's levy, refunds of the state levy including interest on the levy as provided by this section and chapter 84.68 RCW.       The county treasurer of each county shall make all refunds determined to be authorized by this section, and by the first Monday in ((January)) February of each year, report to the county legislative authority a list of all refunds made under this section during the previous year. The list is to include the name of the person receiving the refund, the amount of the refund, and the reason for the refund.      Sec. 19. RCW 36.29.190 and 1996 c 153 s 3 are each amended to read as follows:             County treasurers are authorized to accept credit cards, charge cards, debit cards, smart cards, stored value cards, federal wire, and automatic clearinghouse system transactions, or other electronic communication, for any payment of any kind including, but not limited to, taxes, fines, interest, penalties, special assessments, fees, rates, charges, or moneys due counties. A payer desiring to pay by a credit card, charge card, debit card, smart card, stored value card, federal wire, automatic clearinghouse system, or other electronic communication shall bear the cost of processing the transaction in an amount determined by the treasurer, unless the county legislative authority finds that it is in the best interests of the county to not charge transaction processing costs for all payment transactions made for a specific category of nontax payments due the county, including, but not limited to, fines, interest not associated with taxes, penalties not associated with taxes, special assessments, fees, rates, and charges. ((Such)) The treasurer's cost determination shall be based upon costs incurred by the treasurer ((including handling, collecting, discount, disbursing, and accounting for the transaction)) and may not, in any event, exceed the additional direct costs incurred by the county to accept the specific form of payment utilized by the payer.      Sec. 20. RCW 84.55.005 and 1994 c 301 s 49 are each amended to read as follows:      As used in this chapter, the term "regular property taxes" has the meaning given it in RCW 84.04.140((, and also includes amounts received in lieu of regular property taxes)).                  NEW SECTION. Sec. 21. The following acts or parts of acts are each repealed:      (1) RCW 36.29.150 and 1963 c 4 s 36.29.150; and                (2) RCW 36.33.180 and 1963 c 4 s 36.33.180.      NEW SECTION. Sec. 22. (1) Section 12 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.                (2) Section 13 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.      NEW SECTION. Sec. 23. Section 12 of this act expires July 1, 1997."              On page 1, line 1 of the title, after "management;" strike the remainder of the title and insert "amending RCW 35.50.030, 35.50.040, 35.50.260, 36.29.020, 36.34.090, 36.36.045, 36.88.220, 36.88.230, 36.94.150, 53.36.050, 58.08.040, 84.38.020, 84.38.020, 84.56.240, 84.56.300, 84.56.340, 84.69.020, 36.29.190, and 84.55.005; adding a new section to chapter 84.40 RCW; repealing RCW 36.29.150 and 36.33.180; providing an effective date; providing an expiration date; and declaring an emergency.",             and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION


      On motion of Senator Hale, the Senate concurred in the House amendments to Substitute Senate Bill No. 5028.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5028, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5028, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators McCaslin and Snyder - 2..       SUBSTITUTE SENATE BILL NO. 5028, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTIONS


      On motion of Senator Franklin, Senators Jacobsen and Loveland were excused.


MESSAGE FROM THE HOUSE

April 15, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6022 with the following amendment(s):

      On page 1, line 12, after “RCW 21.20.100" strike “is” and insert “are”,               and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Winsley moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 6022.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Winsley that the Senate concur in the House amendment to Substitute Senate Bill No. 6022.

`     The motion by Senator Winsley carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 6022.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6022, as amended by the House.

ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6022, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Johnson, Kline, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.        Absent: Senator Prentice - 1.            Excused: Senators Jacobsen, Loveland, McCaslin and Snyder - 4..      SUBSTITUTE SENATE BILL NO. 6022, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSEApril 11, 1997


MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5105 with the following amendment(s):

       On page 5, after line 32, insert the following:                  "NEW SECTION. Sec. 2. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, this act is null and void."                   Correct the title.On page 3, line 36, after "law" insert "on the same subject matter"On page 3, line 6, after "law," insert "including any other federal or state regulation or rule,"On page 3, line 33, after "rule" insert "reviewed under subsection (4) of this section",           and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Horn moved that the Senate do concur in the House amendments to Engrossed Substitute Senate Bill No. 5105.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Horn that the Senate concur in the House amendments to Engrossed Substitute Senate Bill No. 5105.

`     The motion by Senator Horn carried and the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5105.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5105, as amended by the House.

      Debate ensued.


POINT OF INQUIRY


      Senator Kline: “Senator Swecker, you mentioned in your speech a moment ago that there are many regulations of state agencies more restrictive--and that is your word--more restrictive than state statute. Could you give us some examples?”

      Senator Swecker: “I am familiar with a number of environmental regulations, some of them in the area of The Model Toxic Control Act. Others ones in the area of the MPDS Permit--the discharge permits--the requirements under federal law as compared to the requirements under state law. The list goes on and on and I am not an attorney, so I don't specialize in that every day, but as a former business man, fish farmer, et al, I have encountered this many, many times.”

      Senator Kline: “Thank you, may I proceed Mr. President?”

      Further debated ensued.


MOTION


      On motion of Senator Johnson, further consideration of Engrossed Substitute Senate Bill No. 5105 was deferred.


PERSONAL PRIVILEGE


      Senator Heavey: “A point of privilege, Mr. President. It has been bothering me for a couple of days--the actions of the majority party--that one, they threatened to appeal a ruling of the President, and that they, in essence, when their team failed to make a first down on the fourth down, they acted to change the rules to allow a fifth down. Then on top of it, there were statements that Senator Snyder was going to resign anyway and that it was only a ploy. These actions are hurtful to me and I think probably to most people on this side of the aisle. I wanted to state those as a point of personal privilege.”


PERSONAL PRIVILEGE


      Senator Prentice: “I also want to rise on a point of personal privilege. There are certain afflictions that hit a person as they get a little bit older and it is very difficult to see the television monitor on that side and all I want to know is when are we going to get our television monitor back on this side?”


REPLY BY THE PRESIDENT


      President Owen: “You are asking me?”

      Senator Prentice: “I am simply urging those responsible for it, to please replace it and not deprive us of some equity in this body. It is really very difficult to see, so I am simply pleading with whomever--whoever you are--to please get the television monitor back.”

      President Owen: “Message received.”

 

MESSAGE FROM THE HOUSE

April 14, 1997


MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5119 with the following amendment(s):

      On page 3, beginning on line 13, strike all of section 3          Renumber the remaining section consecutively, correct internal references accordingly, and correct the title.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk




MOTION


      Senator Oke moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5119.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Oke that the Senate concur in the House amendment to Substitute Senate Bill No. 5119.

`     The motion by Senator Oke carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5119.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5119, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5119, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Excused: Senators Jacobsen, McCaslin and Snyder - 3..       SUBSTITUTE SENATE BILL NO. 5119, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5750 and the pending House striking amendment, deferred earlier today.

 

RULING BY THE PRESIDENT


      President Owen: “In ruling upon the point of order raised by Senator Fairley, the President finds that Substitute Senate Bill No. 5750 is a measure which changes the filing requirements for filing commercial property casualty insurance forms and rates with the Insurance Commissioner. For this purpose, the measure provides a definition of 'Commercial Property Casualty Insurance.'

      “The House striking amendment also changes the filing requirements for filing commercial property casualty insurance forms and rates, and also provides a definition of 'Commercial Property Casualty Insurance' for this purpose only.

      “The President, therefore, finds that the proposed House amendment does not change the scope and object of the bill and the point of order is not well taken.”


      The House striking amendment to Substitute Senate Bill No. 5750 was ruled in order.

      There being no objection, the Senate resumed consideration of the motion made earlier in the day by Senator Winsley that the Senate do concur in the House amendment to Substitute Senate Bill No. 5750.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5750.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5750, as amended by the House.

ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5750, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 38; Nays, 8; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Finkbeiner, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Stevens, Strannigan, Swanson, Swecker, West, Winsley, Wood and Zarelli - 38.                Voting nay: Senators Fairley, Franklin, Kline, Loveland, Patterson, Spanel, Thibaudeau and Wojahn - 8.                Excused: Senators Jacobsen, McCaslin and Snyder - 3..      SUBSTITUTE SENATE BILL NO. 5750, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE

April 21, 1997

MR. PRESIDENT:

      The House has adopted the Report of the Conference Committee on Substitute Senate Bill No. 6063 and has passed the bill as recommended by the Conference Committee, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk.


CONFERENCE COMMITTEE REPORT

SSB 6063                                                                                                                                                                                       April 18, 1997


Adopting the capital budget

MR. PRESIDENT:

MR. SPEAKER:

      We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6063, Adopting the capital budget, have had the same under consideration and we recommend that:

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

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A capital budget is hereby adopted and, subject to the provisions set forth in this act, the several dollar amounts hereinafter specified, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for capital projects during the period ending June 30, 1999, out of the several funds specified in this act.        NEW SECTION. Sec. 2. As used in this act, the following phrases have the following meanings:     "Aquatic Lands Acct" means the Aquatic Lands Enhancement Account;             "Cap Bldg Constr Acct" means Capitol Building Construction Account;   "Capital improvements" or "capital projects" means acquisition of sites, easements, rights of way, or improvements thereon and appurtenances thereto, design, engineering, legal services, construction and initial equipment, reconstruction, demolition, or major alterations of new or presently owned capital assets;                  "CEP & RI Acct" means Charitable, Educational, Penal, and Reformatory Institutions Account;         "Common School Constr Fund" means Common School Construction Fund;      "CWU Cap Proj Acct" means Central Washington University Capital Projects Account;      "EWU Cap Proj Acct" means Eastern Washington University Capital Projects Account;          "For Dev Acct" means Forest Development Account;           "H Ed Constr Acct" means Higher Education Construction Account;            "LIRA" means State and Local Improvement Revolving Account--Waste Disposal Facilities;       "LIRA, Waste Fac 1980" means State and Local Improvement Revolving Account, Waste Disposal Facilities, 1980;       "LIRA, Water Sup Fac" means State and Local Improvements Revolving Account--Water Supply Facilities;      "Lapse" or "revert" means the amount shall return to an unappropriated status;      "Nat Res Prop Repl Acct" means Natural Resources Real Property Replacement Account;                 "NOVA" means the Nonhighway and Off-Road Vehicle Activities Program Account;           "ORA" means Outdoor Recreation Account;         "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;                  "Pub Fac Constr Loan Rev Acct" means Public Facility Construction Loan Revolving Account;               "Public Safety Reimb Bond" means Public Safety Reimbursable Bond Account;            "Rec Fisheries Enh Acct" means Recreational Fisheries Enhancement Account;             "Spec Wildlife Acct" means Special Wildlife Account;         "St Bldg Constr Acct" means State Building Construction Account;                    "State Emerg Water Proj Rev" means State Emergency Water Projects Revolving Account;                  "TESC Cap Proj Acct" means The Evergreen State College Capital Projects Account;            "Thurston County Cap Fac Acct" means Thurston County Capital Facilities Account;                   "UW Bldg Acct" means University of Washington Building Account;               "WA Housing Trust Acct" means Washington Housing Trust Account;      "WA St Dev Loan Acct" means Washington State Development Loan Account;                 "Water Pollution Cont Rev Fund" means Water Pollution Control Revolving Fund;               "WSU Bldg Acct" means Washington State University Building Account; and      "WWU Cap Proj Acct" means Western Washington University Capital Projects Account.                  Numbers shown in parentheses refer to project identifier codes established by the office of financial management.

PART 1

GENERAL GOVERNMENTNEW SECTION. Sec. 101. FOR THE COURT OF APPEALS

      Spokane Division III: Remodel and addition (98-1-001)

                           Appropriation:                                 St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                                         2,499,980

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                             0Future Biennia (Projected Costs)$0

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$2,499,980NEW SECTION. Sec. 102. FOR THE OFFICE OF THE SECRETARY OF STATE

      Birch Bay Records Storage: Asbestos abatement (94-1-002)

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$50,000Appropriation:St Bldg Constr Acct--State$150,000

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                             0Future Biennia (Projected Costs)$0

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$200,000NEW SECTION. Sec. 103. FOR THE OFFICE OF THE SECRETARY OF STATE

      Puget Sound Archives Building (94-2-003)

      The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                         5,969,041

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                 771,084Future Biennia (Projected Costs)$0

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$6,740,125NEW SECTION. Sec. 104. FOR THE OFFICE OF THE SECRETARY OF STATE

      Eastern Branch Archives Building--Design (98-2-001)

      The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$2,042Appropriation:St Bldg Constr Acct--State$521,417

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$     56,158Future Biennia (Projected Costs)$4,176,493

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$4,756,110NEW SECTION. Sec. 105. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

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

      $4,000,000 from the new appropriation from the public works assistance account shall be deposited in the public facilities construction loan revolving account, and is hereby appropriated from the public facilities construction loan revolving account to the department of community, trade, and economic development for the fiscal biennium ending June 30, 1999, for the community economic revitalization program under chapter 43.160 RCW. The moneys from the new appropriation from the public works assistance account shall be used solely to provide loans to eligible local governments and shall not be used for grants. The department shall ensure that all principal and interest payments from loans made from moneys from the new appropriation from the public works assistance account are paid into the public works assistance account.

      Community economic revitalization (86-1-001)

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$222,039Public Works Assistance Account--State$4,481,071Pub Fac Constr Loan Rev Acct--State$70,508

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

                                                      Subtotal Reappropriation. . . . . . . . . .$                                                                                         4,773,618

                           Appropriation:                                 Pub Fac Constr Loan Acct--State. . . .. . . . . . .$6,000,000Public Works Assistance Account--State$4,000,000

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

                                                      Subtotal Appropriation. . . . .. . . . . . .$                                                                                       10,000,000

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$15,242,633Future Biennia (Projected Costs)$36,000,000

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$66,016,251NEW SECTION. Sec. 106. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

      Development loan fund (88-2-002)

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$1,208,001WA St Dev Loan Acct--Federal$166,138

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

                                                      Subtotal Reappropriation. . . . . . . . . .$                                                                                         1,374,139

                           Appropriation:                                 WA St Dev Loan Acct--Federal          . . . . . . . . . . . . . . .$                         3,000,000

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$10,245,450Future Biennia (Projected Costs)$17,000,000

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$31,619,589NEW SECTION. Sec. 107. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

      Grays Harbor dredging (88-3-006)

      The reappropriation in this section is subject to the following conditions and limitations:                    (1) The reappropriation is provided solely for the state's share of remaining costs for Grays Harbor dredging and associated mitigation.          (2) State funds shall be disbursed at a rate not to exceed one dollar for every four dollars of federal funds expended by the army corps of engineers and one dollar from other nonstate sources.           (3) Expenditure of moneys from this reappropriation is contingent on a cost-sharing arrangement and the execution of a local cooperation agreement between the port of Grays Harbor and the army corps of engineers pursuant to P.L. 99-662, the federal water resources development act of 1986, whereby the corps of engineers will construct the project as authorized by that federal act.      (4) In the event the project cost is reduced, any resulting reduction or reimbursement of nonfederal costs realized by the port of Grays Harbor shall be shared proportionally with the state.

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                         1,000,000

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$              4,259,037Future Biennia (Projected Costs)$0

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$5,259,037NEW SECTION. Sec. 108. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

      Housing assistance, weatherization, and affordable housing program (88-5-015)

      The appropriations in this section are subject to the following conditions and limitations:                   (1) $3,000,000 of the new appropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.          (2) $2,000,000 of the reappropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$25,000,000Washington Housing Trust Acct--State$400,000

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

                                                      Subtotal Reappropriation. . . . . . . . . .$                                                                                       25,400,000

                           Appropriation:                                 St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                                       50,000,000

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$125,116,142Future Biennia (Projected Costs)$200,000,000

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                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$400,516,142NEW SECTION. Sec. 109. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENTSnohomish County drainage: To purchase land in drainage district number 6 and construct a cross-levee on it, in order to decrease damaging flooding of adjacent lands and to reestablish wetlands (92-2-011)

 

      The reappropriation in this section shall be matched by at least $585,000 provided from nonstate sources for capital costs of this project.

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$344,837Prior Biennia (Expenditures)$3,416

                                      Future Biennia (Projected Costs)            . . . . . . . . . . . . . . .$                                                                                       0

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

                                                             TOTAL. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         348,253

       NEW SECTION. Sec. 110. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT


      Columbia River dredging feasibility (92-5-006)

                           Reappropriation:                                             St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                            374,568

                                      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                 245,392Future Biennia (Projected Costs)$0

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

                                                      TOTAL. . . . . . . . . . . . . . . . . . . . . . .$619,960NEW SECTION. Sec. 111. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

      Building for the arts: For grants to local performing arts and art museum organizations for facility improvements or additions (92-5-100)

      The appropriations in this section are subject to the following conditions and limitations:                   (1) The following projects are eligible for funding in phase 4:

    Phase 4                                                                                              Estimated Total                         Capital CostAfrican American Museum and Cultural Center (Seattle)                                                                                           $                 12,544,130             Allied Arts of Whatcom County (Bellingham)$          130,334                                                                                 Childrens' Museum of Snohomish County (Everett)$     393,597Columbia Point                                                                                   Amphitheatre (Richland)         $                3,273,218Columbia Theatre (Phase II) (Longview)                                                                                      $                      500,000             Enumclaw High School Auditorium$          1,152,500                                                                              Evergreen City Ballet (Auburn)$                   186,328The Group Theatre (Phase II) (Seattle)                                                                                           $                      983,000             Int'l Museum of Modern Glass (Tacoma)$          15,072,145                                                                            Kirkland Performance Center     (Phase II)               $  1,450,184Lopez Center for the Arts                                                                  $                   1,007,000             Mount Baker Theatre(Phase II) (Bellingham)$          916,900                                                                                 Museum of Northwest Art          (Phase II) (La Conner)              $265,470                                                                                              On the Boards (Seattle)             $                2,667,000People's Lodge (Seattle)$          1,710,301                                                                              Pilchuck School (Seattle)           $                3,400,000Princess Cultural Center (Prosser)                                                                                          $                      770,000             Wenatchee Civic Center             $10,178,361                                                                                                                                                              ------------           Total            $                                                                                            56,600,468

    (2) The reappropriation and new appropriation in this section are provided to fund the state share of capital costs of phases 1 through 4 of the building for the arts program.

    (3) $3,000,000 of the appropriation in this section is provided solely for the Wenatchee civic center. The remaining reappropriation and appropriation shall be distributed as follows:                 (a) State grants shall not exceed fifteen percent of the estimated total capital cost or actual capital cost of a project, whichever is less. The remaining portions of project capital costs shall be a match from nonstate sources. The match may include cash and land value. The department is authorized to set matching requirements for individual projects. State grants shall not exceed $1,000,000 for any single project unless there are uncommitted funds after January 1, 1999.            (b) State grants shall be distributed in the order in which matching requirements are met. The department may fund projects that demonstrate adequate progress and have secured the necessary match funding. The department may require that projects recompete for funding.                     (4) By December 15, 1997, the department shall submit a report to the appropriate fiscal committees of the legislature on the progress of the building for the arts program, including a list of projects funded under this section.              (5) The department shall submit a list of recommended performing arts, museum, and cultural organization projects for funding in the 1999-2001 capital budget. The list shall result from a competitive grants program developed by the department based upon: Uniform criteria for the selection of projects and awarding of grants for up to fifteen percent of the total project cost; local community support for the project; a requirement that the sites for the projects are secured or optioned for purchase; and a state-wide geographic distribution of projects.

                    Reappropriation:                                     St Bldg Constr Acct--State. . . . . . . . . . . . . . .$2,162,297Appropriation:St Bldg Constr Acct--State$6,000,000

                                        Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$18,047,689Future Biennia (Projected Costs)$16,000,000

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                                                        TOTAL. . . . . . . . . . . . . . . . . . . . . . .$42,209,986NEW SECTION. Sec. 112. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

    Challenger Learning Center (93-5-006)

    The reappropriation in this section is subject to the following conditions and limitations:       (1) The appropriation is provided solely for support of science education at the Challenger learning center at the museum of flight; and        (2) Each dollar expended from the appropriation in this section shall be matched by at least one dollar from nonstate sources for the same purpose.

                    Reappropriation:                                     St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                                          320,312

                                        Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                479,688Future Biennia (Projected Costs)$0

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                                                        TOTAL. . . . . . . . . . . . . . . . . . . . . . .$800,000NEW SECTION. Sec. 113. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

    Public works trust fund (94-2-001)

    The appropriation in this section is subject to the following conditions and limitations:          $15,646,000 of the reappropriation in this section is provided solely for the preconstruction program.

                    Reappropriation:                                     Public Works Assistance Account--                                                    State. . . .. . . . . . . . . . . . . . . . . . .$                                               108,746,982Appropriation:Public Works Assistance Account--State$180,977,328

                                        Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$287,953,301Future Biennia (Projected Costs)$820,000,000

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                                                        TOTAL. . . . . . . . . . . . . . . . . . . . . . .$1,397,677,611NEW SECTION. Sec. 114. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

    Washington Technology Center: Equipment (94-2-002)

    The reappropriation in this section is provided solely for equipment installations on the first floor of Fluke Hall. The appropriation shall be transferred to and administered by the University of Washington.

                    Reappropriation:                                     St Bldg Constr Acct--State. . . . . . . . . . . . . . .$                                          301,299

                                        Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . .$                964,701Future Biennia (Projected Costs)$0

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                                                        TOTAL. . . . . . . . . . . . . . . . . . . . . . .$1,266,000NEW SECTION. Sec. 115. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

    Olympic Peninsula Natural History Museum (94-2-005)

    The reappropriation in this section is subject to the following conditions and limitations:    &