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ONE HUNDRED-FIFTH DAY

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AFTERNOON SESSION

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Senate Chamber, Olympia, Sunday, April 27, 1997

      The Senate was called to order at 1:00 p.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators McCaslin, Patterson, Swanson, Winsley and Wojahn. On motion of Senator Franklin, Senators Patterson, Swanson and Wojahn were excused. On motion of Senator Hale, Senator McCaslin was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Wyatt Sauvage and Sarah Fox, presented the Colors. Senator Rosa Franklin offered the prayer.


MOTION


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


MESSAGE FROM THE HOUSE


April 26, 1997

MR. PRESIDENT:

      The Speaker has signed:

      HOUSE BILL NO. 1054,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1111,

      HOUSE BILL NO. 1388,

      ENGROSSED HOUSE BILL NO. 1581,

      SUBSTITUTE HOUSE BILL NO. 1605,

      ENGROSSED THIRD SUBSTITUTE HOUSE BILL NO. 3900, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT

      The President signed:

      HOUSE BILL NO. 1054,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1111,

      HOUSE BILL NO. 1388,

      ENGROSSED HOUSE BILL NO. 1581,

      SUBSTITUTE HOUSE BILL NO. 1605,

      ENGROSSED THIRD SUBSTITUTE HOUSE BILL NO. 3900.


SIGNED BY THE PRESIDENT

      The President signed:

      SUBSTITUTE SENATE BILL NO. 5718.

MOTION


      Senator Morton moved that the following resolution be adopted:


SENATE RESOLUTION 1997-8656


By Senator Morton


      WHEREAS, The Department of Fish and Wildlife serves the people of the state with one of the largest and most diverse salmon and trout hatchery programs in the world; and

      WHEREAS, The future role of salmon and trout hatchery programs is certain to be changing in response to federal endangered species act requirements, the need to develop sustainable fisheries, and the continuing challenges of variations in funding; and

      WHEREAS, The Senate of the state of Washington desires to be in the forefront of the decision-making process by exploring ways in which the public and the fisheries resource are best served by the fish hatchery program; and

      WHEREAS, The first step in achieving a full productive hatchery program is to examine the existing hatchery operation with the goal of determining which aspects are working well and which areas need improvements; and

      WHEREAS, The role of privatization of fish hatchery production also should be assessed in cases where it may prove to be more cost-effective, where it may be utilized in closed hatcheries, or in hatcheries that are not fully utilizing space or water resources; and

      WHEREAS, The potential for increasing fisheries through the utilization of fish produced by private fish farmers who lease or operate state-owned fish hatcheries that would otherwise be closed must be examined; and

      WHEREAS, The primary goal of the Department's fish hatchery program is to provide an abundant fisheries resource for the enjoyment of people who like to fish, it is likewise the goal of the Senate of the state of Washington to maximize that enjoyment;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington instruct the Fish and Wildlife Commission to evaluate the operation of the Department's fish hatcheries and to make recommendations on the improvement of their operations to the Senate Natural Resources and Parks Committee by December 31, 1997; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the Fish and Wildlife Commission and the Director of the Department of Fish and Wildlife.


      Senators Morton, Spanel and Oke spoke to Senate Resolution 1997-8656.


PARLIAMENTARY INQUIRY


      Senator Jacobsen: “A parliamentary inquiry, Mr. President. I am new to the Senate and I am not exactly clear if it is appropriate for one body to send instructions to a state agency. I ask the question in this way, if the other body sent other instructions to the state agency, then which--would the instructions from the Senate take priority over the instructions from the other body?”


REPLY BY THE PRESIDENT


      President Owen: “The President believes that it is appropriate for Senators to place in a resolution what they feel appropriate to place in a resolution if it passes through the body, Senator Jacobsen.”

      Senator Jacobsen: “Then to proceed. Now if the commissioners--after Referendum 45--chose to ignore this resolution, would they be legally entitled to do that?”

      President Owen: “The President believes that a resolution is an expression of the will of the Senate, but it has no force of law, Senator Jacobsen.”

      Senators Prentice, Heavey, Johnson and Snyder spoke to Senate Resolution 1997-8656.

      Senator Sheldon demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the adoption of Senate Resolution 1997-8656.


ROLL CALL


      The Secretary called the roll and Senate Resolution 1997-8656 was adopted by the following vote: Yeas, 24; Nays, 20; Absent, 1; Excused, 4.

      Voting yea: Senators Anderson, Benton, Deccio, Finkbeiner, Hale, Hochstatter, Horn, Johnson, Long, McDonald, Morton, Newhouse, Oke, Prince, Roach, Rossi, Schow, Sellar, Stevens, Strannigan, Swecker, West Wood and Zarelli - 24.   Voting nay: Senators Bauer, Brown, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl, Loveland, McAuliffe, Prentice, Rasmussen, Sheldon, Snyder, Spanel and Thibaudeau - 20.           Absent: Winsley - 1.              Excused: McCaslin, Patterson, Swanson, Wojahn - 4

MOTION


      At 1:26 p.m., on motion of Senator Johnson, the Senate was declared to be at ease.


      The Senate was called to order at 2:26 p.m. by President Owen.


CHANGE IN STANDING COMMITTEE


      The President announced that Senator Heavey would replace Senator Haugen as a member of the Law and Justice Committee.


MOTION


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


SENATE RESOLUTION 1997-8657


By Senator Morton


      WHEREAS, The Washington State Legislature values and encourages excellence in all fields of endeavor; and

      WHEREAS, Participation in athletics inspires students to develop attitudes and skills necessary for scholastic and life success, such as perseverance, teamwork, loyalty, and sportsmanship; and

      WHEREAS, The Republic Tigers Boys' Basketball team is the 1996-97 Class B Basketball Champion; and

      WHEREAS, The Tigers have distinguished themselves and brought honor to their school by winning their first-ever state title; and

      WHEREAS, Under the coaching and supervision of Rory Rickard the team finished the season with an outstanding 27-4 record; and

      WHEREAS, The Tigers repeatedly came from behind to win, showing their never-say-die attitude; and

      WHEREAS, This team has deservedly, and through team effort, commitment, and sacrifice, achieved the title of Washington State Class B Basketball Champion;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington recognize and honor the Republic Tigers Boys' Basketball team and Coach Rory Rickard for their accomplishments and hard work; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to Coach Rory Rickard, the members of the Republic Tigers Boys' Basketball team, and the principal and faculty of Republic High School.


      Senators Morton and Heavey spoke to Senate Resolution 1997-8657.  


MOTION


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


MESSAGES FROM THE HOUSE

April 26, 1997

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5074,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5082,

      SUBSTITUTE SENATE BILL NO. 5157,

      SENATE BILL NO. 5253,

      SUBSTITUTE SENATE BILL NO. 5270,

      SUBSTITUTE SENATE BILL NO. 5327,

      SUBSTITUTE SENATE BILL NO. 5336,

      SENATE BILL NO. 5460,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5491,

      SENATE BILL NO. 5538,

      ENGROSSED SENATE BILL NO. 5565,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5574,

      SENATE BILL NO. 5650,

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5710,

      SUBSTITUTE SENATE BILL NO. 5867,

      SECOND SUBSTITUTE SENATE BILL NO. 5886,

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5927, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The House has adopted SENATE CONCURRENT RESOLUTION NO. 8417, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The House concurred in the Senate amendment(s) to SECOND SUBSTITUTE HOUSE BILL NO. 1201 and passed the bill as amended by the Senate.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT

      The President signed:

      SUBSTITUTE SENATE BILL NO. 5030.


SIGNED BY THE PRESIDENT

      The President signed:

      SENATE CONCURRENT RESOLUTION NO. 8417.


MESSAGE FROM THE HOUSE

April 26, 1997

MR. PRESIDENT:

      The House has adopted the Report of the Conference Committee on ENGROSSED SUBSTITUTE SENATE BILL NO. 6061 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


ESSB 6061                                                                                                                                                                                     April 25, 1995

Includes "NEW ITEM": Yes

Funding Transportation


MR. PRESIDENT:

MR. SPEAKER:

      We of your CONFERENCE COMMITTEE, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6061, funding transportation, have had the same under consideration and we recommend that:

      All previous amendments not be adopted, and the following striking amendment be adopted: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 AGRICULTURE

Motor Vehicle Fund--State Appropriation. .. . . . . . . . . . . . . . .$304,000The 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. .. . . . . . . . . . . . . . .$111,000The 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. .. . . . . . . . . . . . . . .$420,000The 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$2,000,000The 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

       NEW SECTION. Sec. 106. FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE


Transportation Fund--State Appropriation. .. . . . . . . . . . . . . . .$1,500,000(1) The joint legislative audit and review committee shall 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, focusing on law enforcement operations, communications systems, and technology requirements. The performance audits shall be conducted in accordance with government accounting standards prescribed by the comptroller general of the United States and the provisions of chapter 44.28 RCW, and shall be an objective and systematic assessment of the programs administered by the audited agencies, including each program's effectiveness, efficiency, and accountability. The joint legislative audit and review committee shall act as project manager of the audits and, under the provisions of chapter 39.29 RCW, shall contract with a consultant or consultants to conduct the audits.             (2) The committee shall consult frontline employees, program managers, customers of the programs and agency services, taxpayers, legislators, legislative staff, state auditor, office of financial management staff, and other external public and private sector experts in conducting the performance audit.         (3) 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.     (4) 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.      (5) 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.    (6) The performance audit of the department of transportation's ferry capital and operating programs shall have first priority, and as many components as are feasible shall be completed prior to January 1, 1998. The performance audit of other department programs, if feasible, shall also be considered for completion in this time period.     (7) Unless the joint legislative audit and review 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.      (8)(a) There is hereby created a temporary performance audit advisory committee. The advisory committee shall provide input to the joint legislative audit and review committee on the following matters:                (i) Identification of stakeholders;           (ii) The performance audit scope and objectives;    (iii) Progress reports provided by the joint legislative audit and review committee;              (iv) Preliminary and final audit reports; and          (v) Facilitating communication of audit findings to other members of the legislature.          (b) The advisory committee shall be comprised of the members of the executive committees of the joint legislative audit and review committee and the legislative transportation committee. The state auditor and the director of the office of financial management shall serve as ex officio members.       (c) The advisory committee shall be chaired by the director of financial management.

       NEW SECTION. Sec. 107. FOR THE OFFICE OF FINANCIAL MANAGEMENT

Motor Vehicle Fund--State Appropriation. .. . . . . . . . . . . . . . .$116,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The entire amount is provided as funding to the office of financial management for a policy and budget analyst for the transportation agencies.

       NEW SECTION. Sec. 108. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Motor Vehicle Fund--State Appropriation. .. . . . . . . . . . . . . . .$252,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The entire appropriation is for the contracted staff at the Gateway Visitor Information Centers, and may not be used for any other purpose.

       NEW SECTION. Sec. 109. FOR THE STATE PARKS AND RECREATION COMMISSION

Motor Vehicle Fund--State Appropriation. .. . . . . . . . . . . . . . .$931,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: (1) A report of actual expenditures and descriptions of the expenditures from the motor vehicle fund will be submitted to the legislature in December 1997 and December 1998.      (2) If any of the parks that have historically received these funds are closed during the 1997-99 biennium, the funds for the closed parks may not be used for other purposes and must be returned to the motor vehicle fund.

GENERAL GOVERNMENT AGENCIES--CAPITAL

       NEW SECTION. Sec. 110. FOR WASHINGTON STATE PARKS AND RECREATION--CAPITAL PROJECTS

Motor Vehicle Fund--State Appropriation. .. . . . . . . . . . . . . . .$3,500,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: (1) The entire appropriation is for the repaving of roadways in the following state parks in the 1997-99 biennium:      (a) Moran state park, $1,800,000;           (b) Cama Beach state park, $300,000;    (c) Riverside state park, $640,000;         (d) Steamboat Rock state park, $225,000;     (e) Damon Point state park, $485,000; and            (f) Deception Pass state park, $50,000.  (2) This is a one time appropriation with the repaving efforts to be completed in the parks by June 30, 1999. The repaving contracts will be awarded by competitive bid using department of transportation standards. Progress reports will be prepared and presented to the legislative transportation committees in January 1999.             (3) If any of the parks listed in subsection (1) of this section are closed during the 1997-99 biennium, the amount provided for the park under subsection (1)(a) through (f) of this section shall lapse and return to the motor vehicle fund.

PART IITRANSPORTATION AGENCIES

       NEW SECTION. Sec. 201. FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION

Highway Safety Fund--State Appropriation.. . . . . . . . . . . . . . .$491,000Highway Safety Fund--Federal Appropriation$5,216,000Transportation Fund--State Appropriation$950,000TOTAL APPROPRIATION$6,657,000

      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 COMMISSIONERS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                                                                                                       275,000

       NEW SECTION. Sec. 203. FOR THE COUNTY ROAD ADMINISTRATION BOARD

Motor 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$87,268,000The 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$27,360,000Public Transportation Systems Account--                 State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,928,000TOTAL APPROPRIATION$221,031,000The 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. .. . . . . . . . . . . . . . .$2,822,000Transportation Fund--State Appropriation$200,000TOTAL APPROPRIATION$3,022,000The appropriations in this section are 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) 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. This $200,000 amount is null and void if an appropriation for this activity is enacted in any other appropriations bill by June 30, 1997.

       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. .. . . . . . .$804,000The 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. . . . . . . . . . . . . . . . . . . . . . .$159,108,000Motor Vehicle Fund--State Patrol HighwayAccount--Federal Appropriation$4,374,000Motor Vehicle Fund--State Patrol HighwayAccount--Local Appropriation. . . .. . . . . . . . . . . . . . .$170,000Transportation Fund--State Appropriation$8,961,000TOTAL APPROPRIATION$172,613,000The 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) $8,200,000 of the transportation fund--state appropriation is provided for an equalization salary adjustment of three percent on July 1, 1997, and six percent on July 1, 1998, for commissioned officers (entry level trooper through captain), commercial vehicle enforcement officers, and communication officers of the Washington state patrol. The salary adjustments are intended to bring the existing salary levels into the fiftieth percentile of other Washington state law enforcement compensation plans. This is in addition to the salary increase contained in the omnibus appropriation bill or bills. The total of the two increases, in the transportation budget and omnibus appropriation bill or bills, may not exceed twelve percent.                  (3) 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.                (4) 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.                 (5) A personnel data base will be maintained of the 801 commissioned traffic law enforcement officers, with a reconciliation at all times to the patrol allocation model and a vehicle assignment and replacement plan.          (6) $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 previously funded by the traffic safety commission.        (7) The Washington state patrol with legislative transportation committee staff will perform an interim study of the Washington state patrol's commercial vehicle enforcement program with a report to be presented to the legislature and office of financial management in January 1998 with a developed business plan and program recommendations which includes, but is not limited to, weigh in motion technologies.                   (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 and office of financial management.               (9) $761,000 of the transportation fund--state appropriation is provided for the following traditional general fund purposes: The governor's air travel, the license fraud program, and the special services unit. This transportation fund--state appropriation is not a permanent funding source for these purposes.

       NEW SECTION. Sec. 209. FOR THE WASHINGTON STATE PATROL--

INVESTIGATIVE SERVICES BUREAUTransportation Fund--State Appropriation. . . . . . . . . . . .$6,317,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The appropriation in this section is for the following traditional general fund purposes: Crime laboratories, used primarily for local law enforcement purposes; ACCESS, the computer system linking all law enforcement and criminal justice agencies in the state to one another; and, the identification section, which is responsible for performing criminal background checks. This appropriation is not a permanent funding source for these purposes.

       NEW SECTION. Sec. 210. FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

Motor Vehicle Fund--State Patrol Highway

      Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$55,961,000Motor Vehicle Fund--State Patrol HighwayAccount--Federal Appropriation$104,000Transportation Fund--State Appropriation$4,965,000TOTAL APPROPRIATION. . . . . . .. . . . . . . . . . . . . . .$61,030,000The 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) $50,000 of the state patrol highway account--state appropriation is provided solely for a feasibility study to assess the effect of mobile computers on trooper productivity by type of service and measurement of the productivity gains achieved through reduction in administrative time and paperwork processing. The agency shall submit a copy of the proposed study workplan to the office of financial management, the department of information services, and the legislative transportation committee no later than October 1, 1997. A final report shall be submitted to the legislative transportation committee, the office of financial management, and the department of information services no later than January 31, 1998. This project is subject to the provisions of section 502 of this act.              (3) $50,000 of the state patrol highway account--state appropriation is provided solely for a review of the feasibility of improving the patrol's computer-aided dispatch system to permit tracking of trooper availability and response time to calls for service. The agency shall submit a copy of the proposed study workplan to the office of financial management, the department of information services, and the legislative transportation committee no later than October 1, 1997. A final report shall be submitted to the legislative transportation committee, the office of financial management, and the department of information services no later than January 31, 1998. This project is subject to the provisions of section 502 of this act.                     (4) 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.            (5) $4,965,000 of the transportation fund--state appropriation is for the following traditional general fund purposes: The executive protection unit, revolving fund charges, budget and fiscal services, computer services, personnel, human resources, administrative services, and property management. This appropriation is not a permanent funding source for these purposes.

       NEW SECTION. Sec. 211. 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$11,073,000The 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. 212. 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$4,396,000Motor Vehicle Fund--State Appropriation$5,858,000Transportation Fund--State Appropriation. . . . . . . . .$1,190,000TOTAL APPROPRIATION$11,569,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $2,498,000 of the highway safety fund--state appropriation and $793,000 of the motor vehicle fund--state appropriation are provided for the following activities: (1) Identify business objectives and needs relating to technology improvements and integration of the drivers' licensing and vehicle title and registrations systems; (2) converting the drivers' licensing software applications to achieve Year 2000 compliance; (3) convert the drivers' field network from a uniscope to a frame-relay network; (4) develop an interface between the unisys system and the CRASH system; and (5) operate and maintain the highways-licensing building network and the drivers' field network.

       NEW SECTION. Sec. 213. 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:       (1) $600,000 of the licensing service account--state appropriation is provided for replacement of printers for county auditors and subagents.                    (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 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$67,232,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: If Substitute House Bill No. 1501, Substitute Senate Bill No. 5718, or driver's license security provisions that are substantially similar to the security provisions in either bill are not enacted by June 30, 1997, $2,503,000 of the highway safety fund--state appropriation shall lapse.

       NEW SECTION. Sec. 215. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATING

Motor Vehicle Fund--State Appropriation.. . . . . . .$24,703,000Motor Vehicle Fund--Federal Appropriation$400,000Motor Vehicle Fund--Transportation CapitalFacilities Account--State Appropriation$24,338,000TOTAL APPROPRIATION. . . . . . . .$                                                                                                                      49,441,000

       NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Transportation Fund--Aeronautics Account--State       Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,301,000Transportation Fund--Aeronautics Account--Federal Appropriation$1,000Aircraft Search and Rescue, Safety, and EducationAccount--State Appropriation$170,000Transportation Account--State Appropriation$250,000TOTAL APPROPRIATION. . . .. . . . . . . . . . .$                                                                                                                                                                                                             3,722,000

       NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Motor Vehicle Fund--Economic Development Account--            State Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$2,434,000Motor Vehicle Fund--State Appropriation$113,341,000Motor Vehicle Fund--Federal Appropriation$130,485,000Motor Vehicle Fund--Private/Local         Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$40,000,000Special Category C Account--State Appropriation$78,600,000Transportation Fund--State Appropriation$278,546,000Puyallup Tribal Settlement Account--State       Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . .$5,000,000Puyallup Tribal Settlement Account--Private/Local Appropriation$200,000High Capacity Transportation Account--StateAppropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .$1,288,000TOTAL APPROPRIATION$649,894,000The 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)(a) $75,000,000 of the transportation fund--state appropriation and $25,000,000 of the motor vehicle fund--state appropriation are provided for projects to be selected by the transportation commission. The commission shall select improvement projects giving priority consideration to those projects supporting freight mobility, economic development, and partnerships, such as the SR 543 Blaine Border Crossing, SR 405 NE 44th St. I/c corridor analysis, and SR 520 Translake study. State-wide geographic distribution should also be considered.         (b) State funds conditioned in (a) of this subsection may also be used as match for federally funded projects of similar nature.                (2) 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.                   (3) 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.             (4) 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.      (5) 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.               (6) The appropriations in this section contain $118,247,000 reappropriation from the 1995-97 biennium.           (7) No moneys are provided for the Washington coastal corridor study.            (8) The motor vehicle fund--state appropriation in this section includes $250,000 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. 218. 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. 219. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Fund--State Appropriation.. . . . . . .$238,200,000Motor Vehicle Fund--Federal Appropriation$465,000Motor Vehicle Fund--Private/Local Appropriation$3,335,000TOTAL APPROPRIATION. . . . . . .. . . . . . .$242,000,000The 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. 220. FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Motor Vehicle Fund--State           Appropriation. . . . . . . . . . .$289,777,000Motor Vehicle Fund--Federal Appropriation$274,259,000Motor Vehicle Fund--Private/Local Appropriation$2,400,000TOTAL APPROPRIATION. . . . . . .. . . . . . . . . . . . . . .$566,436,000The 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 $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.                (3) If the Oregon state legislature enacts a public/private partnership program and the Washington state transportation commission, in consultation with the legislative transportation committee, negotiates and enters into an agreement between Washington and Oregon to place the Lewis and Clark bridge into Oregon's public/private partnership program, up to $3,000,000 of the motor vehicle fund--state appropriation may be used as Washington's contribution toward the design of the project pursuant to the agreement between Washington and Oregon. Any additional contributions shall be subject to Washington state legislative appropriations and approvals. The department shall provide a status report on this project to the legislative transportation committee by June 30, 1998.

       NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q

Motor Vehicle Fund--State Appropriation.. . . . . . .$29,140,000The appropriation in this section is subject to the following conditions and limitations and specified amount is 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. 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$57,462,000Motor Vehicle Fund--Puget Sound Ferry OperationsAccount--State Appropriation$1,093,000Transportation Fund--State Appropriation. . . .. . . . . . .$1,158,000TOTAL APPROPRIATION$60,490,000The 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 $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) 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 motor vehicle fund--state appropriation is provided for this review and analysis. The funding conditioned in this subsection shall be from revenues provided for interjurisdictional studies.

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

Motor Vehicle Fund--State Appropriation.. . . . . . .$16,098,000Motor Vehicle Fund--Federal Appropriation$10,466,000Transportation Fund--State Appropriation$1,384,000TOTAL APPROPRIATION$27,948,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: 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.

       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 SUPPORTMotor 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/Local           Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$765,000Transportation Fund--Passenger Ferry Account--State Appropriation$579,000TOTAL APPROPRIATION$274,738,000The 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 on vessels 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, the Puget Sound capital construction account--federal 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)(a) 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.               (b) 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, (a) of this subsection is null and void; $50,000,000 of the motor vehicle fund--Puget Sound capital construction account--state appropriation shall not be allotted; and $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. . . . . . . . . . . . .$267,358,000The 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 $29,151,000 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 $177,347,000 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 vessels 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 and office of financial management by September 1, 1997.              (5) The department shall request a reduction of the costs 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 primarily 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.     (9) The appropriation provides funding for House Bill No. 2165 (paying interest on retroactive raises for ferry workers).

       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$6,225,000Air Pollution Control Account--StateAppropriation$6,290,000Transportation Fund--State Appropriation$48,529,000Transportation Fund--Federal Appropriation$3,947,000Transportation Fund--Private/Local      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$105,000Central Puget Sound Public TransportationAccount--State Appropriation$250,000TOTAL APPROPRIATION$65,602,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:              (1) Up to $40,180,000 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 $2,500,000 of the transportation fund--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 and office of financial management regarding the department's rail freight program. The department shall also notify the committee for project expenditures from all fund sources prior to making those expenditures. 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) Up to $750,000 of the transportation fund--state appropriation and up to $250,000 of the central Puget Sound public transportation account--state appropriation are provided to fund activities relating to coordinating special needs transportation among state and local providers. These activities may include demonstration projects, assessments of resources available versus needs, and identification of barriers to coordinating special needs transportation. The department will consult with the superintendent of public instruction, the secretary of the department of social and health services, the office of financial management, the fiscal committees of the house of representatives and senate, special needs consumers, and specialized transportation providers in meeting the goals of this subsection.             (6) The appropriations in this section contain $4,599,000 reappropriated from the 1995-97 biennium.                   (7) 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.       (8) 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.               (9) Up to $150,000 of the transportation fund--state appropriation is provided for the management and control of the transportation corridor known as the Milwaukee Road corridor owned by the state between Ellensburg and Lind, and to take actions necessary to allow the department to be in a position, with further legislative authorization, to begin to negotiate a franchise with a rail carrier to establish and maintain a rail line over portions of the corridor by July 1, 1999.        (10) Up to $2,500,000 of the high capacity transportation account--state appropriation may be used by the department for activities related to improvement of the King Street station. The department shall provide monthly reports to the legislative transportation committee on activities related to the station, including discussions of funding commitments from others for future improvements to the station.

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

Motor Vehicle Fund--State           Appropriation. . . . . . . . . . .$8,452,000Motor Vehicle Fund--Federal Appropriation$33,726,000High Capacity Transportation Account--State Appropriation$500,000TOTAL APPROPRIATION$42,678,000The 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 $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) The appropriations in this section contain $1,750,000 reappropriated from the 1995-97 biennium.            (4) 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 IIITRANSPORTATION 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 to the legislative transportation committee within 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. . . . . . . . . . . . . . . . . . . . . .$7,075,000Transportation Fund--State Appropriation$4,000,000TOTAL APPROPRIATION$11,075,000The 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 the transportation fund and the motor vehicle fund--state patrol highway account are provided for the microwave migration, Yakima district 3 headquarters office, 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.                    (3) A report will be prepared and presented to the legislature and office of financial management in January 1998 on the microwave migration project.             (4) The funding for the microwave migration project is limited to $4,400,000, the amount of revenue from frequency sales.               (5) The intent of the legislature is to have vehicle identification number (VIN) lanes and encourage colocation of other transportation and state services wherever feasible in transportation facilities.

       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. . . . . . . . . . . . . .$21,696,000The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:  (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 appropriation in this section contains $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$195,062,000Ferry 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. . . .. . . . . . . . . . . . . . .$200,000Motor Vehicle Fund Appropriation for motorvehicle fuel tax and overload penaltiesdistribution$471,937,000Transportation Fund Appropriation. . .. . . . . . . . . . . . . . .$                                                                             3,744,000TOTAL APPROPRIATION$475,881,000

       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. . . . . . . . . . . . . . . . . . . . $1,176,000(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--TRANSFERS

Motor Vehicle Fund--State AppropriationFor transfer to the Transportation Equipment Fund--                 State Appropriation. . . . . . . . . . . . . . . . . . .. . . . . . .$500,000The 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 state treasurer shall transfer the sum of fifty million dollars from the general fund to the transportation fund during the fiscal year ending June 30, 1999.

       NEW SECTION. Sec. 410. 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. 411. 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. 412. 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. 413. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS

Motor Vehicle Fund--Puget Sound Ferry OperationsAccount--State Appropriation:For transfer to the Motor Vehicle Fund--Puget SoundCapital Construction Account. . . . .. . . . . . . . . . . . . . .$50,000,000This 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 report recommendations on 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 legislative transportation committee 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 RELIEF

       NEW SECTION. Sec. 505. FOR THE DEPARTMENT OF TRANSPORTATION--EMERGENCY RELIEF

Motor 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 507 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 ACT       NEW SECTION. Sec. 511. The following bills are necessary to implement portions of this act: Engrossed Substitute House Bill No. 1011, Substitute House Bill No. 2108, or Substitute Senate Bill No. 5718.                                    E. MISCELLANEOUS  NEW SECTION. Sec. 512. (1) If Substitute House Bill No. 2237 is not enacted, or is enacted without a provision allowing the department of transportation to obtain fair and reasonable compensation, by June 30, 1997, the appropriations to the department 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.     (2) The telecommunications/right-of-way advisory panel is created to evaluate the department's process for developing proposals for use of its limited-access rights-of-way by telecommunications carriers.                The membership of the telecommunications/right-of-way advisory panel is as follows:                   (a) Two members of the house transportation policy and budget committee, one from each political party, as appointed by the speaker of the house of representatives. The speaker shall also designate two alternate members to serve if the appointed member is unavailable;            (b) Two members of the senate transportation committee, one from each political party, as appointed by the president of the senate. The president shall also designate two alternate members to serve if the appointed member is unavailable;                (c) One member of the house appropriations committee, as appointed by the speaker of the house of representatives. The speaker shall also designate an alternate member to serve if the appointed member is unavailable;      (d) One member of the senate ways and means committee, as appointed by the president of the senate. The president shall also designate an alternate member to serve if the appointed member is unavailable;         (e) Two representatives of the governor or their designees;      (f) The secretary of the department of transportation or a designee; and                (g) The director of the department of information services or a designee.     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. . . . . . . .. . . . . . .$5,000,000Transportation Fund--State Appropriation$5,000,000TOTAL APPROPRIATION$10,000,000The 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 the highway construction program should the federal transportation authorization act, the successor to the intermodal surface transportation efficiency act (ISTEA) not be enacted by October 1, 1997.      NEW SECTION. Sec. 516. During the 1997 interim, the fiscal committees of the house of representatives and senate will review funding alternatives for Washington state parks (roadway maintenance and preservation), department of trade and economic development (gateway visitor information centers), and the office of financial management (transportation budget/policy analysts). The committees will make funding recommendations for a permanent funding source for each of the above agencies and the related activities during the 1998 legislative session.        NEW SECTION. Sec. 517. 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.                                                          PART VI1995-97 SUPPLEMENTAL       Sec. 601. 1996 c 165 s 207 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICESHighway Safety Fund--Motorcycle Safety Education                  Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$68,000State Wildlife Account--State Appropriation$53,000Highway Safety Fund--State Appropriation$((5,460,000))5,429,000Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . .$4,045,000Transportation Fund--State Appropriation$808,000TOTAL APPROPRIATION$((10,434,000))10,403,000Sec. 602. 1996 c 165 s 210 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICESHighway Safety Fund--Motorcycle Safety Education             Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$1,150,000Highway Safety Fund--State Appropriation$((56,145,000))56,395,000Transportation Fund--State Appropriation$4,914,000TOTAL APPROPRIATION. . . . . . .. . . . . . .$((62,209,000))62,459,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:               (1) If the following bills are not enacted by June 30, 1996, the amounts specified from the highway safety fund--state appropriation shall lapse:             (((1))) (a) Engrossed Substitute House Bill No. 2150: $298,000;      (((2))) (b) Substitute Senate Bill No. 6487: $61,000;            (((3))) (c) Engrossed Third Substitute Senate Bill No. 6062: $133,000.      (2) $250,000 of the highway safety fund--state appropriation is provided for manual processing of accident reports due to a delay in implementing the collision reporting and statistical reporting system.         Sec. 603. 1996 c 165 s 211 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATINGMotor Vehicle Fund--State Appropriation. . . . .. . . . . . . . $24,394,000Motor Vehicle Fund--Federal Appropriation$400,000Motor Vehicle Fund--Transportation CapitalFacilities Account--State Appropriation$((21,974,000))22,011,000TOTAL APPROPRIATION. .. . . . . . . . $((46,768,000))46,805,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The transportation capital facilities account--state appropriation includes $37,000 as match to a federal emergency management grant for reimbursement to repair damage to agency owned buildings as result of the December 1996 floods.                Sec. 604. 1996 c 165 s 215 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM MMotor Vehicle Fund--State Appropriation. . . . . . $                       ((222,274,000))226,274,000Motor Vehicle Fund--Federal Appropriation$461,000Motor Vehicle Fund--Private/Local Appropriation$3,305,000TOTAL APPROPRIATION. . . . . . .. . . . . . .$((226,040,000))230,040,000The 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, if projected snow and ice expenditures exceed the plan of $40,000,000, the department will, after prior consultation with 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 and detail these expenditures; or      (b) Continue service delivery as planned within the other major maintenance groups and access up to (($2,000,000 in the snow and ice reserve)) $4,000,000 provided in subsection (6) of this section to cover increased snow and ice expenditures ((provided for in section 505 of this act)).            (3) The department shall provide recommendations to the legislative transportation committee by June 30, 1996, on: (a) The feasibility of developing a maintenance management system; (b) methods for providing a consistent maintenance level of service throughout the state; (c) options for centralized versus decentralized management of the program; (d) improving accountability and oversight of the maintenance program; and (e) improving accountability and oversight of the transportation equipment fund program.             (4) The motor vehicle fund--state appropriation in this section includes $250,000 solely for augmentation of the adopt-a-highway program, under Engrossed Substitute House Bill No. 1512.      (5) The motor vehicle fund--state appropriation in this section includes $1,812,000 for payment of local stormwater assessment fees.      (6) The motor vehicle fund--state appropriation includes $4,000,000 solely for snow and ice expenditures that exceed the $40,000,000 snow and ice expenditure plan.     Sec. 605. 1996 c 165 s 218 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--SALES AND SERVICES TO OTHERS--PROGRAM RMotor Vehicle Fund--State Appropriation. . . . . . . . . . . . .$                 ((490,000))740,000Motor Vehicle Fund--Federal Appropriation$400,000Motor Vehicle Fund--Private/Local Appropriation$7,232,000TOTAL APPROPRIATION. . . . . . .. . . . . . .$((8,122,000))8,372,000The 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. The office of financial management, in cooperation with the department of transportation, is directed to establish an efficient and effective process to increase the expenditure and work force authority for this program to allow the department the ability to provide services on nonappropriated, outside requests.                (2) The motor vehicle fund--state appropriation includes $250,000 for expenditure in fiscal year 1997 to pay for operating and maintenance costs for the Wahkiakum County ferry.                   Sec. 606. 1996 c 165 s 220 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--TRANSIT RESEARCH AND INTERMODAL PLANNING--PROGRAM TMotor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . .$14,395,000Motor Vehicle Fund--Federal Appropriation$((15,647,000))16,327,000Transportation Fund--State Appropriation$1,345,000TOTAL APPROPRIATION. . . . . . .. . . . . . .$((31,387,000))32,067,000The 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 1993-1995 biennium levels for those counties not having metropolitan planning organizations within their boundaries.             (2) The motor vehicle fund--federal appropriation includes $680,000 of federal pass-through funds for metropolitan planning organizations (MPOs).           Sec. 607. 1996 c 165 s 221 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U      (1) FOR PAYMENT OF COSTS OF ATTORNEY GENERAL TORT CLAIMS SUPPORTMotor Vehicle Fund--State Appropriation. . . . . . . . . . . .$4,646,000(2) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITORMotor Vehicle Fund--State Appropriation$832,000(3) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICESMotor Vehicle Fund--State Appropriation. .. . . . . . .$3,374,000(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. . . . . . . . . . . . .$7,749,000(6) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATIONMotor Vehicle Fund--Puget Sound Ferry Operations                      Account--State Appropriation. . . . . . . . . . . . . .$((2,000,000))2,500,000(7) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISESMotor Vehicle Fund--State Appropriation. . . . . . . . . .$508,000(8) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF GENERAL ADMINISTRATION STATE PARKING SERVICESMotor Vehicle Fund--State Appropriation. . . . . . .. . . . . . .$95,000(9) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION CAPITAL PROJECTS SURCHARGEMotor Vehicle Fund--State Appropriation. . . . . . . . . . .$361,000(10) FOR ARCHIVES AND RECORDS MANAGEMENTMotor Vehicle Fund--State Appropriation$280,000Sec. 608. 1996 c 165 s 224 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION AND RAIL--PROGRAM YEssential Rail Assistance Account--State               Appropriation. . . . . . . . . . . . . . . . . . . . . . .. . . . . . .$1,088,000Motor Vehicle Account--State Appropriation$138,000Motor Vehicle Account--Federal Appropriation$551,000High Capacity Transportation Account--State       Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,275,000Air Pollution Control Account--StateAppropriation$3,145,000Transportation Fund--State Appropriation$34,480,000Transportation Fund--Federal Appropriation$((11,643,000))13,243,000Transportation Fund--Private Local      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$105,000Public Transportation Systems Account--StateAppropriation$1,000,000TOTAL APPROPRIATION$((56,425,000))58,025,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:                (1) Up to $31,845,000 of the transportation fund--state appropriation and $700,000 of the transportation fund--federal appropriation is provided for intercity rail passenger service including up to $12,000,000 for lease purchase of two advanced technology train sets with total purchase costs not to exceed $20,000,000, subsidies for operating costs not to exceed $8,000,000, to maintain service of one state contracted round trip between Seattle and Portland and Seattle and Vancouver, British Columbia, and capital projects necessary to provide Seattle-Vancouver, British Columbia, train operating times of under 4 hours. The lease purchase of the train sets is predicated on the condition that the manufacturer of the trains has the obligation of establishing a corporate office in Washington state. The manufacturer is also obligated to spend a minimum of twenty-five percent of the total purchase price of the train sets on the assembly and manufacture of parts of the train sets in Washington state.                  (2) The appropriations from the central Puget Sound public transportation account and the public transportation systems account are transferred to the transportation improvement board should either chapter . . . (Engrossed Substitute House Bill No. 1107), Laws of 1995 or chapter . . . (Substitute Senate Bill No. 5199), Laws of 1995 be enacted, and contain provisions transferring responsibility for administration of these accounts from the department of transportation to the transportation improvement board, except $1,000,000 of the appropriation from the public transportation systems account shall be utilized for the rural mobility program and be administered by the department of transportation. Priority for grants provided from these accounts shall be given to projects and programs that can be accomplished in the 1995-1997 biennium and that are not primarily intended for the planning of facilities. Prior to July 1, 1996, no applications for grants from the central Puget Sound public transportation account may be accepted from, nor may funds from that account be granted to, the regional transit authority. The public transportation systems account funds provided to the rural mobility program are for the 1995-97 biennium and are not intended for grants which will have ongoing costs to this program.      (3) Up to $700,000 of the high capacity transportation account--state appropriation is reappropriated for regional transit authority grants. However, this amount shall not exceed the amount of unexpended regional transit authority grants in the 1993-95 biennium.        (4) None of the high capacity transportation account--state appropriation or reappropriation may be used to disseminate information in a manner that attempts to persuade, rather than inform or educate, area residents regarding the adopted system plan. The appropriation and reappropriation also may not be used to lobby or advertise, or distribute free promotional materials.      (5) The department of transportation may not transfer high capacity transportation account--state funds to a regional transportation authority during the 1995-1997 biennium, unless the authority has provided a detailed report to the department of transportation and the house of representatives and senate transportation committees regarding its use of those funds during preceding biennia and how it proposes to spend additional state funds.     (6) $1,800,000 of the high capacity transportation account--state appropriation is provided for the regional transit authority.            (7) The air pollution control account appropriation is provided solely for operation of the commute trip reduction program created under chapter 70.94 RCW and transferred to the department of transportation by Senate Bill No. 6451 or House Bill No. 2009. If Senate Bill No. 6451 or House Bill No. 2009 is not enacted by June 30, 1996, this subsection is null and void.          (8) If Engrossed Substitute House Bill No. 2832 is not enacted by June 30, 1996, $189,000 of the transportation fund--state appropriation shall lapse.      (9) The transportation account--federal appropriation includes a $1,100,000 federal grant in 1997 for railroad crossing construction projects and a $500,000 federal transit administration grant received in fiscal year 1997 for design work on the King Street Station.      Sec. 609. 1996 c 165 s 225 (uncodified) is amended to read as follows:FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM ZGeneral Fund--State Appropriation. . . . . . . . . . . . . . . . . . . .$1,400,000Motor Vehicle Fund--State Appropriation$15,167,000Motor Vehicle Fund--Federal Appropriation$((167,879,000))182,879,000Transportation Fund--State Appropriation. . . . . . . . . . .$356,000Motor Vehicle Fund--Private/Local Appropriation$5,087,000Transfer Relief Account--State Appropriation$307,000TOTAL APPROPRIATION$((190,196,000))205,196,000The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:         (1) Up to $13,100,000 of the motor vehicle fund--federal appropriation in this section is provided for construction of demonstration projects specified in the federal intermodal surface transportation efficiency act (P.L. 101-240; 105 Stat. 1914). The motor vehicle fund--state appropriation includes $3,275,000 in proceeds from the sale of bonds authorized in RCW 47.10.819(1) for the federal match requirements. 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 motor vehicle fund--state appropriation in this section includes $1,750,000 solely to fund the state's share of the east marine view drive project. This amount represents a reappropriation of the funding first provided for Everett homeport transportation projects in 1987. With this reappropriation, the legislature has fulfilled its commitment for funding of special transportation projects associated with the Everett homeport.    (3) $2,600,000 of the motor vehicle fund--state appropriation and $1,400,000 of the general fund--state appropriation in this section is provided solely for one-time capital infrastructure investment associated with development of a horse racetrack in western Washington. With this appropriation, the state has fulfilled its commitment to this project.       (4) Up to $1,100,000 of the motor vehicle fund--state appropriation and $300,000 of the transportation fund--state appropriation contained in this section shall be used for evaluations that mutually benefit the state department of transportation, counties, and cities. The evaluations may include fuel tax evasion; license fraud; and the development of an implementation plan for the financing and construction of state, local, and private transportation improvements in south downtown Seattle. The implementation plan shall address the safety needs of the Spokane street viaduct, but shall not include any projects that would be financed and constructed under the public-private transportation initiatives program established in chapter 47.46 RCW. The evaluations shall include port mobility issues and other issues as determined by the legislative transportation committee.      (5) $700,000 of the motor vehicle fund--federal appropriation for the surface transportation program enhancements program is provided for storm water control grants as provided for in Second Substitute House Bill No. 2031. If Second Substitute House Bill No. 2031 is not enacted by June 30, 1996, this subsection is null and void.          (6) $1,000,000 of the motor vehicle fund--federal appropriation for the surface transportation program enhancements program is provided to the state parks and recreation commission to be used for trail development. The amount provided represents partial consideration for cross-state trail development necessitated under Engrossed Substitute House Bill No. 2832.           (7) $6,000 of the transportation fund--state appropriation is provided as the state match on the Colfax paving project.      (8) $25,000 of the transportation fund--state appropriation in this section is provided to evaluate and determine which agency or organization should be authorized to manage and operate the aerial search and rescue program.                (9) $50,000 of the motor vehicle fund--state appropriation and $25,000 of the transportation fund--state appropriation in this section are provided solely for an evaluation of the impacts of rail transportation through the city of Auburn, to be conducted by the city of Auburn. "Evaluation" for the purpose of this subsection does not include litigation. This evaluation shall be coordinated with the Port of Tacoma, the cities of Tacoma, Federal Way, and Algona, and other affected jurisdictions participating in the Tacoma tideflat truck and rail circulation analysis provided for in subsection (4) of this section. The city of Auburn shall complete its analysis no later than October 31, 1996, and report its findings to the Tacoma tideflat truck and rail circulation study group.              (10) The motor vehicle fund--federal appropriation includes $15,000,000 federal highway administration reimbursement to Washington for damage from the 1996 December floods to local owned roads on the federal system.               NEW SECTION. Sec. 610. A new section is added to 1996 c 165 (uncodified) to read as follows:              $10,000,000 from the motor vehicle fund--federal is appropriated to the department of transportation solely for damage resulting from floods and winter storms. This appropriation will be allotted in programs p-preservation and m-maintenance as determined by the department of transportation.    Sec. 611. 1996 c 165 s 401 (uncodified) is amended to read as follows: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((Motor Vehicle Fund--Puget Sound Capital Construction Account       Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,250,000Motor Vehicle Fund Appropriation$903,000Transportation Improvement AccountAppropriation$1,250,000Special Category C Account Appropriation. . . . . . . . . . . . .$4,000,000))Highway Bond Retirement Account Appropriation$((195,814,000))192,099,000Ferry Bond Retirement Account Appropriation$((36,788,000))31,237,000TOTAL APPROPRIATION$((243,005,000))223,336,000Sec. 612. 1996 c 165 s 402 (uncodified) is amended to read as follows:FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGESMotor Vehicle Fund--Puget Sound Capital Construction      Account Appropriation. . . . .. . . . . . . . . . . . . . .$((850,000))50,000((Motor Vehicle Fund Appropriation$181,000Motor Vehicle Fund--Urban Arterial Trust AccountAppropriation$5,000))Motor Vehicle Fund--Transportation Improvement                    Account Appropriation. . . . .. . . . . . . . . . . . .$    ((250,000))25,000Special Category C Account Appropriation$((800,000))175,000((Transportation Capital Facilities AccountAppropriation$1,000))TOTAL APPROPRIATION.$((2,087,000))250,000NEW SECTION. Sec. 613. A new section is added to 1996 c 165 (uncodified) to read as follows:The sum of fifty million dollars is appropriated from the general fund to the transportation fund in the fiscal year ending June 30, 1997.      NEW SECTION. Sec. 614. 1996 c 165 s 505 (uncodified) is repealed.PART VIILEGISLATIVE DECLARATIONSNEW SECTION. Sec. 701. 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. 702. 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.”    On page 1, line 1 of the title, after "appropriations;" strike the remainder of the title and insert "amending RCW 47.78.010; amending 1996 c 165 ss 207, 210, 211, 215, 218, 220, 221, 224, 225, 401, and 402 (uncodified); adding new sections to chapter 165, Laws of 1996; creating new sections; repealing 1996 c 165 s 505 (uncodified); making appropriations; providing an expiration date; and declaring an emergency."  and the bill do pass as recommended by the Conference Committee.

      Signed by: Senators Prince, Haugen, Sellar; Representatives K. Schmidt, Mitchell.


MOTION


      Senator Prince moved that the Senate adopt the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6061.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Prince that the Senate adopt the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6061.

      The motion by Senator Prince carried and the Senate adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6061.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6061, as recommended by the Conference Committee.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6061, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 36; Nays, 12; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Johnson, Long, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, West, Wood and Zarelli - 36.             Voting nay: Senators Brown, Fairley, Heavey, Jacobsen, Kline, Kohl, Loveland, McAuliffe, Swanson, Thibaudeau, Winsley and Wojahn - 12.               Excused: Senator McCaslin - 1.      ENGROSSED SUBSTITUTE SENATE BILL NO. 6061, as recommended by the Conference Committee, 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 26, 1997

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5740 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:"PART ILEGISLATIVE INTENTNEW SECTION. Sec. 1. LEGISLATIVE RECOGNITION AND INTENT. The legislature recognizes the economic hardship that rural distressed areas throughout the state have undergone in recent years. Numerous rural distressed areas across the state have encountered serious economic downturns resulting in significant job loss and business failure. In 1991 the legislature enacted two major pieces of legislation to promote economic development and job creation, with particular emphasis on worker training, income, and emergency services support, along with community revitalization through planning services and infrastructure assistance. However even though these programs have been of assistance, rural distressed areas still face serious economic problems including: Above-average unemployment rates from job losses and below-average employment growth; low rate of business start-ups; and persistent erosion of vitally important resource-driven industries.           The legislature also recognizes that rural distressed areas in Washington have an abiding ability and consistent will to overcome these economic obstacles by building upon their historic foundations of business enterprise, local leadership, and outstanding work ethic.           The legislature intends to assist rural distressed areas in their ongoing efforts to address these difficult economic problems by providing a comprehensive and significant array of economic tools, necessary to harness the persistent and undaunted spirit of enterprise that resides in the citizens of rural distressed areas throughout the state.            The further intent of this act is to provide:             (1) A strategically designed plan of assistance, emphasizing state, local, and private sector leadership and partnership;      (2) A comprehensive and significant array of business assistance, services, and tax incentives that are accountable and performance driven;                  (3) An array of community assistance including infrastructure development and business retention, attraction, and expansion programs that will provide a competitive advantage to rural distressed areas throughout Washington; and               (4) Regulatory relief to reduce and streamline zoning, permitting, and regulatory requirements in order to enhance the capability of businesses to grow and prosper in rural distressed areas.              NEW SECTION. Sec. 2. GOALS. The primary goals of chapter . . ., Laws of 1997 (this act) are to:                (1) Promote the ongoing operation of business in rural distressed areas;            (2) Promote the expansion of existing businesses in rural distressed areas;           (3) Attract new businesses to rural distressed areas;            (4) Assist in the development of new businesses from within rural distressed areas;            (5) Provide family wage jobs to the citizens of rural distressed areas; and                  (6) Promote the development of communities of excellence in rural distressed areas.                                                                                       PART IITAX INCENTIVES             NEW SECTION. Sec. 3. A new section is added to chapter 82.14 RCW to read as follows:    (1) The legislative authority of a distressed county may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall not exceed 0.04 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.          (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.          (3) Moneys collected under this section shall only be used for the purpose of financing public facilities in rural counties.             (4) No tax may be collected under this section before July 1, 1998. No tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.              (5) For purposes of this section, "distressed county" means a county in which the average level of unemployment for the three years before the year in which a tax is first imposed under this section exceeds the average state employment for those years by twenty percent.             Sec. 4. RCW 82.62.010 and 1996 c 290 s 5 are each amended to read as follows:                   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.       (1) "Applicant" means a person applying for a tax credit under this chapter.         (2) "Department" means the department of revenue.                 (3) "Eligible area" means: (a) A county in which the average level of unemployment for the three years before the year in which an application is filed under this chapter exceeds the average state unemployment for those years by twenty percent; (b) a county that has a median household income that is less than seventy-five percent of the state median household income for the previous three years; (c) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent; (d) a designated community empowerment zone approved under RCW 43.63A.700; or (e) subcounty areas in those counties that are not covered under (a) of this subsection that are timber impact areas as defined in RCW 43.31.601.       (4)(a) "Eligible business project" means manufacturing or research and development activities which are conducted by an applicant in an eligible area at a specific facility, provided the applicant's average full-time qualified employment positions at the specific facility will be ((at least fifteen percent)) greater in the year for which the credit is being sought than the applicant's average full-time qualified employment positions at the same facility in the immediately preceding year.      (b) "Eligible business project" does not include any portion of a business project undertaken by a light and power business as defined in RCW 82.16.010(5) or that portion of a business project creating qualified full-time employment positions outside an eligible area or those recipients of a sales tax deferral under chapter 82.61 RCW.        (5) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.      (6) "Person" has the meaning given in RCW 82.04.030.        (7) "Qualified employment position" means a permanent full-time employee employed in the eligible business project during the entire tax year.            (8) "Tax year" means the calendar year in which taxes are due.      (9) "Recipient" means a person receiving tax credits under this chapter.               (10) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.                    Sec. 5. RCW 82.62.030 and 1996 c 1 s 3 are each amended to read as follows:          (1) A person shall be allowed a credit against the tax due under chapter 82.04 RCW as provided in this section. For an application approved before January 1, 1996, the credit shall equal one thousand dollars for each qualified employment position directly created in an eligible business project. For an application approved on or after January 1, 1996, the credit shall equal two thousand dollars for each qualified employment position directly created in an eligible business project. For an application approved on or after July 1, 1997, the credit shall equal four thousand dollars for each qualified employment position with wages and benefits greater than forty thousand dollars annually that is directly created in an eligible business. For an application approved on or after July 1, 1997, the credit shall equal two thousand dollars for each qualified employment position with wages and benefits less than or equal to forty thousand dollars annually that is directly created in an eligible business.              (2) The department shall keep a running total of all credits granted under this chapter during each fiscal ((biennium)) year. The department shall not allow any credits which would cause the tabulation ((for a biennium)) to exceed ((fifteen)) five million five hundred thousand dollars in fiscal year 1998 or 1999 or seven million five hundred thousand dollars in any fiscal year thereafter. If all or part of an application for credit is disallowed under this subsection, the disallowed portion shall be carried over for approval the next ((biennium)) fiscal year. However, the applicant's carryover into the next ((biennium)) fiscal year is only permitted if the tabulation for the next ((biennium)) fiscal year does not exceed ((fifteen million dollars)) the cap for that fiscal year as of the date on which the department has disallowed the application.                (3) ((No recipient is eligible for tax credits in excess of three hundred thousand dollars.           (4))) No recipient may use the tax credits to decertify a union or to displace existing jobs in any community in the state.                   (((5))) (4) No recipient may receive a tax credit on taxes which have not been paid during the taxable year.      NEW SECTION. Sec. 6. RCW 82.62.040 and 1993 sp.s. c 25 s 411, 1988 c 41 s 4, & 1986 c 116 s 22 are each repealed.PART IIIBUSINESS ASSISTANCENEW SECTION. Sec. 7. BUSINESS ASSISTANCE AND RECRUITMENT FOR RURAL DISTRESSED AREAS. The department of community, trade, and economic development is directed to emphasize business assistance and recruitment for rural distressed areas within its trade and economic sectors, and local development assistance. The primary goal of the rural initiative is to coordinate and administer a comprehensive and effective set of business assistance programs and services including:         (1) Business recruitment. The department of community, trade, and economic development shall: Provide a comprehensive and aggressive program to attract viable businesses to rural distressed areas; work with local communities to identify select industry sectors that have a competitive advantage in specific rural distressed areas; collaborate with state and local officials to modify their infrastructure plans and priorities to facilitate business growth; and assist rural distressed areas in developing strategic business recruitment plans.          (2) Business permitting and zoning one-stop shop. The department of community, trade, and economic development shall: Provide a streamlined and customer driven siting service to businesses in order to promote their attraction and expansion in rural distressed areas; provide preliminary permit application and zoning information and services for businesses in order to attract firms and facilitate business growth in rural distressed areas.          (3) Business regulatory assistance and ombudsman services. The department of community, trade, and economic development shall: Provide comprehensive business regulatory services to assist businesses in addressing and responding to local, state, and federal regulations; and provide recommendations on streamlining and modifying government regulations.              (a) The department of community, trade, and economic development is authorized to review state zoning, permitting, or regulatory requirements that pose difficulty for businesses wishing or likely to site in a rural enterprise area. In situations where the department of community, trade, and economic development considers the zoning, permitting, or regulatory requirements placed on a business in a rural enterprise area unfairly burdensome the director may petition the regulatory agency or agencies for regulatory relief. In addition the director may petition the agency or agencies for relief under the regulatory fairness act, chapter 19.85 RCW.                 (b) In situations where a business or entity in a rural enterprise area is encountering regulatory oversight from more than one state agency and is experiencing conflicting direction or confusing process, the business or entity may petition the director to intercede. The director upon review of the circumstances involved is authorized to designate a lead agency to collaborate with other state agencies in order to streamline and reduce the regulatory difficulties.        (c) Businesses or entities in a rural enterprise zone may petition the director for an accelerated zoning, permitting, or regulatory process. The director upon reviewing the petition and the circumstances involved may make a finding of regulatory unfairness and may direct the state agency or agencies to process the business or entities application in an expeditious manner with a maximum timeline of six months from the director's receipt of the petition.                     The director shall establish a pilot process in cooperation with other state agencies to implement this subsection (3) during 1997 and 1998 and report annually to the legislature on the impact of the program.      (4) "Brown Fields" Program. The department of community, trade, and economic development shall develop with the department of ecology and recommend to the legislature a streamlined and cost-effective process to redevelop hazardous industrial sites in order to promote business growth in rural distressed areas.             (5) Rural enterprise zone development and foreign trade zone. The department of community, trade, and economic development is authorized to provide technical assistance to local governments in rural distressed areas to establish rural enterprise zones and foreign trade zones. The department of community, trade, and economic development shall target rural enterprise zones and foreign trade zones in the delivery of its services in order to maximize the impact of its economic development assistance to businesses and rural distressed areas.            NEW SECTION. Sec. 8. RURAL INITIATIVE ADMINISTRATION. The rural initiative shall be administered by a director appointed by the director of community, trade, and economic development, in consultation with the rural distressed areas economic recovery coordination board. The rural initiative director shall coordinate activities with the rural community assistance team and report on the activities and performance of the rural initiative to the legislature on a quarterly basis.                          PART IVRURAL ENTERPRISE ZONES  NEW SECTION. Sec. 9. A new section is added to chapter 43.63A RCW to read as follows:                 RURAL ENTERPRISE ZONES. The legislature recognizes the unique difficulties encountered by communities in rural distressed areas wishing to promote business development, increase employment opportunities, and provide a high quality of life for its citizens. In response the legislature authorizes the establishment of rural enterprise zones that will allow the targeting of state services and resources in the form of business, industry recruitment, regulatory relief, and infrastructure development. It is the intent of the legislature to provide the critical level of resources and services to businesses and entities located in these rural enterprise zones that they will be the catalyst for economic prosperity and diversity throughout rural distressed areas in Washington.      (1) The department in cooperation with the department of revenue and other state agencies shall approve applications submitted by local governments in rural distressed areas. The application shall be in the form and manner and contain the necessary information designated by the department. The application shall:    (a) Be submitted on behalf of the local government by the chief elected official or, if none, by the governing body of the local government;                (b) Outline the purpose for the economic development enterprise zone and the process in which the application was developed;      (c) Demonstrate the level of government and community support for the enterprise zone;      (d) Outline the manner in which the enterprise zone will be governed and report its activities to the local government and the department; and                     (e) Designate the geographic area in which the rural enterprise zone will exist.               (2) Rural enterprise zones are authorized to:     (a) Hire a director or designate an individual to oversee operations;                 (b) Seek federal, state, and local government support in its efforts to target, develop, and attract viable businesses;          (c) Work with the office of business assistance and recruitment for rural distressed areas in the pursuit of its economic development activities;                (d) Provide a local one-stop shop for businesses intending to locate, retain, expand, or start their businesses within its zone; and         (e) Provide comprehensive permitting, zoning, and regulatory assistance to businesses or entities within the zone.     (3) Rural enterprise zones are authorized to receive the services and funding resources as provided under the rural area marketing plan and other resources assisting rural distressed areas.          (4) Rural enterprise zones may be established in conjunction with a foreign trade zone.       PART VEVALUATION NEW SECTION. Sec. 10. REVIEW AND EVALUATION. The joint legislative audit and review committee shall design an evaluation mechanism for economically distressed counties under this act and undertake an evaluation of the act's effectiveness by November 1, 1999. The agencies implementing the programs under this act shall assist the joint legislative audit and review committee evaluation.PART VIMISCELLANEOUSNEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.      NEW SECTION. Sec. 12. Section captions and part headings used in this act are not any part of the law."        Correct the title.,                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Schow moved that the Senate concur in the House amendment to Second Substitute Senate Bill No. 5740.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Schow that the Senate concur in the House amendment to Second Substitute Senate Bill No. 5740.

      The motion by Senator Schow carried and the Senate concurred in the House amendment to Second Substitute Senate Bill No. 5740.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5740, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5740, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, 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, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.          Excused: Senator McCaslin - 1.            SECOND SUBSTITUTE SENATE BILL NO. 5740, 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 ninth order of business.


MOTIONS


      On motion of Senator Johnson, the Committee of Rules was relieved of further consideration of Engrossed Substitute House Bill No. 1011.

      On motion of Senator Johnson, the rules were suspended, Engrossed Substitute House Bill No. 1011 was advanced to second reading and placed on the second reading calendar.


MOTION


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


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1011, by House Committee on Transportation Policy and Budget (originally sponsored by Representatives K. Schmidt, Johnson, Skinner, Zellinsky, Mitchell, Robertson, Fisher, Hatfield, Hankins, Smith, Dunn, Mielke, Anderson and O'Brien)


      Exempting state and county ferry fuel sale and use tax.


      The bill was read the second time.


MOTION


      On motion of Senator West, the rules were suspended, Engrossed Substitute House Bill No. 1011 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1011.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1011 and the bill passed the Senate by the following vote: Yeas, 34; Nays, 13; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, Benton, Finkbeiner, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kohl, Long, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, West, Wood and Zarelli - 34.     Voting nay: Senators Bauer, Brown, Fairley, Franklin, Heavey, Kline, Loveland, McAuliffe, Patterson, Snyder, Thibaudeau, Winsley and Wojahn - 13.      Absent: Senator Deccio - 1.   Excused: Senator McCaslin - 1.                      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1011, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.



SECOND CONFERENCE COMMITTEE REPORT


SHB 2279                                                                                                                                                                                      April 25, 1997

Includes "NEW ITEM": Yes

Revising the Basic Health Plan

MR. PRESIDENT:

MR. SPEAKER:

      We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE HOUSE BILL NO. 2279, basic health plan, have had the same under consideration and we recommend that:

      All previous amendments not be adopted, and the following striking amendment as recommended by the Second Report of the Conference Committee be adopted:

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 70.47.015 and 1995 c 265 s 1 are each amended to read as follows:  (1) The legislature finds that the basic health plan has been an effective program in providing health coverage for uninsured residents. Further, since 1993, substantial amounts of public funds have been allocated for subsidized basic health plan enrollment.      (2) It is the intent of the legislature that the basic health plan enrollment be expanded expeditiously, consistent with funds available in the health services account, with the goal of two hundred thousand adult subsidized basic health plan enrollees and one hundred thirty thousand children covered through expanded medical assistance services by June 30, 1997, with the priority of providing needed health services to children in conjunction with other public programs.                   (3) Effective January 1, 1996, basic health plan enrollees whose income is less than one hundred twenty-five percent of the federal poverty level shall pay at least a ten-dollar premium share.      (4) No later than July 1, 1996, the administrator shall implement procedures whereby hospitals licensed under chapters 70.41 and 71.12 RCW, health carrier, rural health care facilities regulated under chapter 70.175 RCW, and community and migrant health centers funded under RCW 41.05.220, may expeditiously assist patients and their families in applying for basic health plan or medical assistance coverage, and in submitting such applications directly to the health care authority or the department of social and health services. The health care authority and the department of social and health services shall make every effort to simplify and expedite the application and enrollment process.              (5) No later than July 1, 1996, the administrator shall implement procedures whereby health insurance agents and brokers, licensed under chapter 48.17 RCW, may expeditiously assist patients and their families in applying for basic health plan or medical assistance coverage, and in submitting such applications directly to the health care authority or the department of social and health services. Brokers and agents ((shall be entitled to)) may receive a commission for each individual sale of the basic health plan to anyone not ((at anytime previously)) signed up within the previous five years and a commission for each group sale of the basic health plan, if funding for this purpose is provided in a specific appropriation to the health care authority. No commission shall be provided upon a renewal. Commissions shall be determined based on the estimated annual cost of the basic health plan, however, commissions shall not result in a reduction in the premium amount paid to health carriers. For purposes of this section "health carrier" is as defined in RCW 48.43.005. The administrator may establish: (a) Minimum educational requirements that must be completed by the agents or brokers; (b) an appointment process for agents or brokers marketing the basic health plan; or (c) standards for revocation of the appointment of an agent or broker to submit applications for cause, including untrustworthy or incompetent conduct or harm to the public. The health care authority and the department of social and health services shall make every effort to simplify and expedite the application and enrollment process.      Sec. 2. RCW 70.47.060 and 1995 c 266 s 1 and 1995 c 2 s 4 are each reenacted and amended to read as follows:             The administrator has the following powers and duties:            (1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, prescription drugs and medications, and other services that may be necessary for basic health care. In addition, the administrator may, to the extent that funds are available, offer as basic health plan services chemical dependency services, mental health services and organ transplant services; however, no one service or any combination of these three services shall increase the actuarial value of the basic health plan benefits by more than five percent excluding inflation, as determined by the office of financial management. All subsidized and nonsubsidized enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive (([covered basic health care services])) covered basic health care services in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care and shall include all services necessary for prenatal, postnatal, and well-child care. However, with respect to coverage for groups of subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that such services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider. The schedule of services shall also include a separate schedule of basic health care services for children, eighteen years of age and younger, for those subsidized or nonsubsidized enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.42.080, and such other factors as the administrator deems appropriate.        However, with respect to coverage for subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that the services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider.           (2)(a) To design and implement a structure of periodic premiums due the administrator from subsidized enrollees that is based upon gross family income, giving appropriate consideration to family size and the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan. The structure of periodic premiums shall be applied to subsidized enrollees entering the plan as individuals pursuant to subsection (9) of this section and to the share of the cost of the plan due from subsidized enrollees entering the plan as employees pursuant to subsection (10) of this section.             (b) To determine the periodic premiums due the administrator from nonsubsidized enrollees. Premiums due from nonsubsidized enrollees shall be in an amount equal to the cost charged by the managed health care system provider to the state for the plan plus the administrative cost of providing the plan to those enrollees and the premium tax under RCW 48.14.0201.         (c) An employer or other financial sponsor may, with the prior approval of the administrator, pay the premium, rate, or any other amount on behalf of a subsidized or nonsubsidized enrollee, by arrangement with the enrollee and through a mechanism acceptable to the administrator((, but in no case shall the payment made on behalf of the enrollee exceed the total premiums due from the enrollee)).          (d) To develop, as an offering by all health carriers providing coverage identical to the basic health plan, a model plan benefits package with uniformity in enrollee cost-sharing requirements.                     (3) To design and implement a structure of enrollee cost sharing due a managed health care system from subsidized and nonsubsidized enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, and may utilize copayments, deductibles, and other cost-sharing mechanisms, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services.                (4) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists.      (5) To limit the payment of subsidies to subsidized enrollees, as defined in RCW 70.47.020. The level of subsidy provided to persons who qualify may be based on the lowest cost plans, as defined by the administrator.                 (6) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080 or any act appropriating funds for the plan.                 (7) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state. Contracts with participating managed health care systems shall ensure that basic health plan enrollees who become eligible for medical assistance may, at their option, continue to receive services from their existing providers within the managed health care system if such providers have entered into provider agreements with the department of social and health services.     (8) To receive periodic premiums from or on behalf of subsidized and nonsubsidized enrollees, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.             (9) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan as subsidized or nonsubsidized enrollees, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and on a reasonable schedule defined by the authority, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If, as a result of an eligibility review, the administrator determines that a subsidized enrollee's income exceeds twice the federal poverty level and that the enrollee knowingly failed to inform the plan of such increase in income, the administrator may bill the enrollee for the subsidy paid on the enrollee's behalf during the period of time that the enrollee's income exceeded twice the federal poverty level. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to reenroll in the plan.                  (10) To accept applications from business owners on behalf of themselves and their employees, spouses, and dependent children, as subsidized or nonsubsidized enrollees, who reside in an area served by the plan. The administrator may require all or the substantial majority of the eligible employees of such businesses to enroll in the plan and establish those procedures necessary to facilitate the orderly enrollment of groups in the plan and into a managed health care system. The administrator may require that a business owner pay at least an amount equal to what the employee pays after the state pays its portion of the subsidized premium cost of the plan on behalf of each employee enrolled in the plan. Enrollment is limited to those not eligible for medicare who wish to enroll in the plan and choose to obtain the basic health care coverage and services from a managed care system participating in the plan. The administrator shall adjust the amount determined to be due on behalf of or from all such enrollees whenever the amount negotiated by the administrator with the participating managed health care system or systems is modified or the administrative cost of providing the plan to such enrollees changes.             (11) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.   (12) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the plan. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the department of health, to minimize duplication of effort.           (13) To evaluate the effects this chapter has on private employer-based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.                  (14) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.                 (15) To provide, consistent with available funding, assistance for rural residents, underserved populations, and persons of color.                    Sec. 3. RCW 48.43.025 and 1997 c . . . s 203 (Engrossed Substitute House Bill No. 2018) are each amended to read as follows:        (1) Except as permitted in RCW 48.43.035 or otherwise specified in this section ((and in RCW 48.43.035)):               (a) No carrier may reject an individual for health plan coverage based upon preexisting conditions of the individual.           (b) No carrier may deny, exclude, or otherwise limit coverage for an individual's preexisting health conditions; except that a carrier may impose a three-month benefit waiting period for preexisting conditions for which medical advice was given, or for which a health care provider recommended or provided treatment within three months before the effective date of coverage.             (c) Every health carrier offering any individual health plan to any individual must allow open enrollment to eligible applicants into all individual health plans offered by the carrier during the full months of July and August of each year. The individual health plans exempt from guaranteed continuity under RCW 48.43.035(4) are exempt from this requirement. All applications for open enrollment coverage must be complete and postmarked to or received by the carrier in the months of July or August in any year following July 27, 1997. Coverage for these applicants must begin the first day of the next month subject to receipt of timely payment consistent with the terms of the policies.      (d) At any time other than the open enrollment period specified in (c) of this subsection, a carrier may either decline to accept an applicant for enrollment or apply to such applicant's coverage a preexisting condition benefit waiting period not to exceed the amount of time remaining until the next open enrollment period, or three months, whichever is greater, provided that in either case all of the following conditions are met:        (i) The applicant has not maintained coverage as required in (f) of this subsection;              (ii) The applicant is not applying as a newly eligible dependent meeting the requirements of (g) of this subsection; and                 (iii) The carrier uses uniform health evaluation criteria and practices among all individual health plans it offers.                (e) If a carrier exercises the options specified in (d) of this subsection it must advise the applicant in writing within ten business days of such decision. Notice of the availability of Washington state health insurance pool coverage and a brochure outlining the benefits and exclusions of the Washington state health insurance pool policy or policies must be provided in accordance with RCW 48.41.180 to any person rejected for individual health plan coverage, who has had any health condition limited or excluded through health underwriting or who otherwise meets requirements for notice in chapter 48.41 RCW. Provided timely and complete application is received by the pool, eligible individuals shall be enrolled in the Washington state health insurance pool in an expeditious manner as determined by the board of directors of the pool.                    (f) A carrier may not refuse enrollment at any time based upon health evaluation criteria to otherwise eligible applicants who have been covered for any part of the three-month period immediately preceding the date of application for the new individual health plan under a comparable group or individual health benefit plan with substantially similar benefits. For purposes of this subsection, in addition to provisions in RCW 48.43.015, the following publicly administered coverage shall be considered comparable health benefit plans: The basic health plan established by chapter 70.47 RCW; the medical assistance program established by chapter 74.09 RCW; and the Washington state health insurance pool, established by chapter 48.41 RCW, as long as the person is continuously enrolled in the pool until the next open enrollment period. If the person is enrolled in the pool for less than three months, she or he will be credited for that period up to three months.          (g) A carrier must accept for enrollment all newly eligible dependents of an enrollee for enrollment onto the enrollee's individual health plan at any time of the year, provided application is made within sixty-three days of eligibility, or such longer time as provided by law or contract.           (h) At no time are carriers required to accept for enrollment any individual residing outside the state of Washington, except for qualifying dependents who reside outside the carrier service area.     (2) No carrier may avoid the requirements of this section through the creation of a new rate classification or the modification of an existing rate classification. A new or changed rate classification will be deemed an attempt to avoid the provisions of this section if the new or changed classification would substantially discourage applications for coverage from individuals or groups who are higher than average health risks. The provisions of this section apply only to individuals who are Washington residents.      Sec. 4. RCW 48.43.035 and 1997 c . . . s 204 (Engrossed Substitute House Bill No. 2018) are each amended to read as follows:      (1) Except as permitted in RCW 48.43.025 or otherwise specified in this section ((and in RCW 48.43.025)), every health carrier shall accept for enrollment any state resident within the carrier's service area and provide or assure the provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The insurance commissioner may grant a temporary exemption from this subsection, if, upon application by a health carrier the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.                     (2) Except as provided in subsection (6) of this section, all health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium. In the case of group plans, the carrier may consider the group's anniversary date as the renewal date for purposes of complying with the provisions of this section.      (3) The guarantee of continuity of coverage required in health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:             (a) Nonpayment of premium;            (b) Violation of published policies of the carrier approved by the insurance commissioner;   (c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;               (d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;              (e) Covered persons committing fraudulent acts as to the carrier;                 (f) Covered persons who materially breach the health plan;                  (g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage; or                 (h) Cessation of a plan in accordance with subsection (5) or (7) of this section.                   (4) The provisions of this section do not apply in the following cases:      (a) A carrier has zero enrollment on a product;      (b) A carrier replaces a product and the replacement product is provided to all covered persons within that class or line of business, includes all of the services covered under the replaced product, and does not significantly limit access to the kind of services covered under the replaced product. The health plan may also allow unrestricted conversion to a fully comparable product; or                 (c) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the insurance commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded.           (5) A health carrier may discontinue or materially modify a particular health plan, only if:             (a) The health carrier provides notice to each covered person or group provided coverage of this type of such discontinuation or modification at least ninety days prior to the date of the discontinuation or modification of coverage;        (b) The health carrier offers to each covered person or group provided coverage of this type the option to purchase any other health plan currently being offered by the health carrier to similar covered persons in the market category and geographic area; and          (c) In exercising the option to discontinue or modify a particular health plan and in offering the option of coverage under (b) of this subsection, the health carrier acts uniformly without regard to any health-status related factor of covered persons or persons who may become eligible for coverage.             (6) The provisions of this section do not apply to health plans deemed by the insurance commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.                    (7) A health carrier may discontinue all health plan coverage in one or more of the following lines of business:                  (a)(i) Individual; or                 (ii)(A) Small group (1-50 eligible employees); and               (B) Large group (51+ eligible employees);            (b) Only if:              (i) The health carrier provides notice to the office of the insurance commissioner and to each person covered by a plan within the line of business of such discontinuation at least one hundred eighty days prior to the expiration of coverage; and                (ii) All plans issued or delivered in the state by the health carrier in such line of business are discontinued, and coverage under such plans in such line of business is not renewed; and              (iii) The health carrier may not issue any health plan coverage in the line of business and state involved during the five-year period beginning on the date of the discontinuation of the last health plan not so renewed.       (8) The portability provisions of RCW 48.43.015 continue to apply to all enrollees whose health insurance coverage is modified or discontinued pursuant to this section.                (9) Nothing in this section modifies a health carrier's responsibility to offer the basic health plan model plan as required by RCW 70.47.060(2)(d).        Sec. 5. RCW 48.41.060 and 1997 c . . . s 211 (Engrossed Substitute House Bill No. 2018) are each amended to read as follows:          The board shall have the general powers and authority granted under the laws of this state to insurance companies, health care service contractors, and health maintenance organizations, licensed or registered to offer or provide the kinds of health coverage defined under this title. In addition thereto, the board may:                   (1) Enter into contracts as are necessary or proper to carry out the provisions and purposes of this chapter including the authority, with the approval of the commissioner, to enter into contracts with similar pools of other states for the joint performance of common administrative functions, or with persons or other organizations for the performance of administrative functions;      (2) Sue or be sued, including taking any legal action as necessary to avoid the payment of improper claims against the pool or the coverage provided by or through the pool;                   (3) Establish appropriate rates, rate schedules, rate adjustments, expense allowances, agent referral fees, claim reserve formulas and any other actuarial functions appropriate to the operation of the pool. Rates shall not be unreasonable in relation to the coverage provided, the risk experience, and expenses of providing the coverage. Rates and rate schedules may be adjusted for appropriate risk factors such as age and area variation in claim costs and shall take into consideration appropriate risk factors in accordance with established actuarial underwriting practices consistent with Washington state small group plan rating requirements under RCW ((48.20.028, 48.44.022, and 48.46.064)) 48.44.023 and 48.46.066;         (4) Assess members of the pool in accordance with the provisions of this chapter, and make advance interim assessments as may be reasonable and necessary for the organizational or interim operating expenses. Any interim assessments will be credited as offsets against any regular assessments due following the close of the year;      (5) Issue policies of health coverage in accordance with the requirements of this chapter;                   (6) Appoint appropriate legal, actuarial and other committees as necessary to provide technical assistance in the operation of the pool, policy, and other contract design, and any other function within the authority of the pool; and      (7) Conduct periodic audits to assure the general accuracy of the financial data submitted to the pool, and the board shall cause the pool to have an annual audit of its operations by an independent certified public accountant.         Sec. 6. RCW 48.41.030 and 1997 c . . . (Engrossed Substitute House Bill No. 2018) s 210 are each amended to read as follows:              HEALTH INSURANCE POOL--DEFINITIONS. As used in this chapter, the following terms have the meaning indicated, unless the context requires otherwise:          (1) "Accounting year" means a twelve-month period determined by the board for purposes of record-keeping and accounting. The first accounting year may be more or less than twelve months and, from time to time in subsequent years, the board may order an accounting year of other than twelve months as may be required for orderly management and accounting of the pool.             (2) "Administrator" means the entity chosen by the board to administer the pool under RCW 48.41.080.      (3) "Board" means the board of directors of the pool.            (4) "Commissioner" means the insurance commissioner.      (5) "Covered Person" means any individual resident of this state who is eligible to receive benefits from any member, or other health plan.      (6) "Health care facility" has the same meaning as in RCW 70.38.025.                (((6))) (7) "Health care provider" means any physician, facility, or health care professional, who is licensed in Washington state and entitled to reimbursement for health care services.      (((7))) (8) "Health care services" means services for the purpose of preventing, alleviating, curing, or healing human illness or injury.      (((8))) (9) "Health coverage" means any group or individual disability insurance policy, health care service contract, and health maintenance agreement, except those contracts entered into for the provision of health care services pursuant to Title XVIII of the Social Security Act, 42 U.S.C. Sec. 1395 et seq. The term does not include short-term care, long-term care, dental, vision, accident, fixed indemnity, disability income contracts, civilian health and medical program for the uniform services (CHAMPUS), 10 U.S.C. 55, limited benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of the worker's compensation or similar law, automobile medical payment insurance, or insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability insurance policy or equivalent self-insurance.          (((9))) (10) "Health plan" means any arrangement by which persons, including dependents or spouses, covered or making application to be covered under this pool, have access to hospital and medical benefits or reimbursement including any group or individual disability insurance policy; health care service contract; health maintenance agreement; uninsured arrangements of group or group-type contracts including employer self-insured, cost-plus, or other benefit methodologies not involving insurance or not governed by Title 48 RCW; coverage under group-type contracts which are not available to the general public and can be obtained only because of connection with a particular organization or group; and coverage by medicare or other governmental benefits. This term includes coverage through "health coverage" as defined under this section, and specifically excludes those types of programs excluded under the definition of "health coverage" in subsection (((8))) (9) of this section.      (((10))) (11) "Medical assistance" means coverage under Title XIX of the federal Social Security Act (42 U.S.C., Sec. 1396 et seq.) and chapter 74.09 RCW.     (((11))) (12) "Medicare" means coverage under Title XVIII of the Social Security Act, (42 U.S.C. Sec. 1395 et seq., as amended).      (((12))) (13) "Member" means any commercial insurer which provides disability insurance, any health care service contractor, and any health maintenance organization licensed under Title 48 RCW. "Member" shall also mean, as soon as authorized by federal law, employers and other entities, including a self-funding entity and employee welfare benefit plans that provide health plan benefits in this state on or after May 18, 1987. "Member" does not include any insurer, health care service contractor, or health maintenance organization whose products are exclusively dental products or those products excluded from the definition of "health coverage" set forth in subsection (((8))) (9) of this section.         (((13))) (14) "Network provider" means a health care provider who has contracted in writing with the pool administrator to accept payment from and to look solely to the pool according to the terms of the pool health plans.      (((14))) (15) "Plan of operation" means the pool, including articles, by-laws, and operating rules, adopted by the board pursuant to RCW 48.41.050.          (((15))) (16) "Point of service plan" means a benefit plan offered by the pool under which a covered person may elect to receive covered services from network providers, or nonnetwork providers at a reduced rate of benefits.                  (((16))) (17) "Pool" means the Washington state health insurance pool as created in RCW 48.41.040.                 (((17))) (18) "Substantially equivalent health plan" means a "health plan" as defined in subsection (((9))) (10) of this section which, in the judgment of the board or the administrator, offers persons including dependents or spouses covered or making application to be covered by this pool an overall level of benefits deemed approximately equivalent to the minimum benefits available under this pool.     Sec. 7. RCW 70.47.120 and 1987 1st ex.s. c 5 s 14 are each amended to read as follows:          In addition to the powers and duties specified in RCW 70.47.040 and 70.47.060, the administrator has the power to enter into contracts for the following functions and services:                (1) With public or private agencies, to assist the administrator in her or his duties to design or revise the schedule of covered basic health care services, and/or to monitor or evaluate the performance of participating managed health care systems.       (2) With public or private agencies, to provide technical or professional assistance to health care providers, particularly public or private nonprofit organizations and providers serving rural areas, who show serious intent and apparent capability to participate in the plan as managed health care systems.           (3) With public or private agencies, including health care service contractors registered under RCW 48.44.015, and doing business in the state, for marketing and administrative services in connection with participation of managed health care systems, enrollment of enrollees, billing and collection services to the administrator, and other administrative functions ordinarily performed by health care service contractors, other than insurance. Any activities of a health care service contractor pursuant to a contract with the administrator under this section shall be exempt from the provisions and requirements of Title 48 RCW except that persons appointed or authorized to solicit applications for enrollment in the basic health plan shall comply with chapter 48.17 RCW.                 Sec. 8. RCW 70.47.130 and 1994 c 309 s 6 are each amended to read as follows:          (1) The activities and operations of the Washington basic health plan under this chapter, including those of managed health care systems to the extent of their participation in the plan, are exempt from the provisions and requirements of Title 48 RCW((, except as provided in RCW 70.47.070 and that the premium and prepayment tax imposed under RCW 48.14.0201 shall apply to amounts paid to a managed health care system by the basic health plan for participating in the basic health plan and providing health care services for nonsubsidized enrollees in the basic health plan)) except:      (a) Benefits as provided in RCW 70.47.070;




      (b) Persons appointed or authorized to solicit applications for enrollment in the basic health plan, including employees of the health care authority, must comply with chapter 48.17 RCW. For purposes of this subsection (1)(b), "solicit" does not include distributing information and applications for the basic health plan and responding to questions; and                (c) Amounts paid to a managed health care system by the basic health plan for participating in the basic health plan and providing health care services for nonsubsidized enrollees in the basic health plan must comply with RCW 48.14.0201.    (2) The purpose of the 1994 amendatory language to this section in chapter 309, Laws of 1994 is to clarify the intent of the legislature that premiums paid on behalf of nonsubsidized enrollees in the basic health plan are subject to the premium and prepayment tax. The legislature does not consider this clarifying language to either raise existing taxes nor to impose a tax that did not exist previously.         NEW SECTION. Sec. 9. Sections 1 and 2 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 July 1, 1997."      On page 1, line 1 of the title, after "plan;" strike the remainder of the title and insert "amending RCW 70.47.015, 48.43.025, 48.43.035, 48.41.060, 48.41.030, 70.47.120, and 70.47.130; reenacting and amending RCW 70.47.060; providing an effective date; and declaring an emergency."       and the bill do pass as recommended by the Conference Committee.

      Signed by: Senators Deccio, West; Representatives Huff, Backlund.


MOTION


      Senator West moved that the Senate adopt the Second Report of the Conference Committee on Substitute House Bill No. 2279.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator West that the Senate adopt the Second Report of the Conference Committee on Substitute House Bill No. 2279.

      The motion by Senator West carried and the Senate adopted the Second Report of the Conference Committee on Substitute House Bill No. 2279.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2279, as recommended by the Conference Committee.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 2279, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      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, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Absent: Senator Deccio - 1.   Excused: Senator McCaslin - 1.            SUBSTITUTE HOUSE BILL NO. 2279, as recommended by the Second Conference Committee, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 3:53 p.m., on motion of Senator Johnson, the Senate was declared to be at ease.


      The Senate was called to order at 4:16 p.m. by President Owen.


MOTION


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


MOTIONS


      On motion of Senator Johnson, the Committee on Education was relieved of further consideration of Engrossed Substitute House Bill No. 2069.

      On motion of Senator Johnson, the rules were suspended, Engrossed Substitute House Bill No. 2069 was advanced to second reading and placed on the second reading calendar.


MOTION


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


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2069, by House Committee on Appropriations (originally sponsored by Representatives Wensman, Cole, Bush, H. Sommers, Benson, D. Schmidt, L. Thomas, Dyer, B. Thomas, Reams, Doumit, Ballasiotes, Alexander, Hatfield, Lantz, Sullivan, Thompson, Kessler and Butler)


      Changing school levy provisions.


      The bill was read the second time.


MOTION


      On motion of Senator Finkbeiner, the rules were suspended, Engrossed Substitute House Bill No. 2069 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2069.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2069 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 10; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rossi, Sellar, Sheldon, Spanel, Strannigan, Swanson, Thibaudeau, West, Winsley, Wojahn and Wood - 38.             Voting nay: Senators Bauer, Haugen, Oke, Rasmussen, Roach, Schow, Snyder, Stevens, Swecker and Zarelli - 10.               Excused: Senator McCaslin - 1.      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2069, 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.


REMARKS BY PRESIDENT OWEN


      President Owen: “In responding to the inquiry of Senator Heavey yesterday on the specificity of putting a motion before the Senate. Senator Heavey, if you could have been more specific about the specificity of your specific inquiry, I would possibly have been able to respond more specifically.

      “However, you struggled both in your specific inquiry on the specificity of putting a motion including your follow up attempt at changing your inquiry semantically.

      “The President, therefore, finds that when a member attempts to state a motion, and the President has been as specific as possible in the specificity of putting said motion, the motion is considered properly put. That is as specific as I can be.”


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


MESSAGES FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The Speaker has signed: SECOND SUBSTITUTE HOUSE BILL NO. 1201, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The Speaker has signed: SENATE CONCURRENT RESOLUTION NO. 8417, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      SECOND SUBSTITUTE HOUSE BILL NO. 1201.


MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5666 with the following amendment:

      On page 1, line 15, after “the” strike “written smoking room policy” and insert “American Society of Heating, Refrigerating, and Air Conditioning Engineers, Inc. standard 62-1989",          and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      Senator Schow moved that the Senate concur in the House amendment to Engrossed Substitute Senate Bill No. 5666.

      Debate ensued.


PARLIAMENTARY INQUIRY


      Senator Fraser: “Thank you, Mr. President. I have a point of parliamentary inquiry. Could you please make it clear for us the motion that is before us? Is it a motion to concur or are we on final passage?”

 

REPLY BY THE PRESIDENT


      President Owen: “We are on the motion to concur in the House amendment to the bill.”

      Further debate ensued.  

      The President declared the question before the Senate to be the motion by Senator Schow that the Senate concur in the House amendment to Engrossed Substitute Senate Bill No. 5666.

      The motion by Senator Schow carried and the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5666.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5666, as amended by the House.

      Debate ensued.


POINT OF ORDER


      Senator Deccio: “A point of order. I think the Senator is impugning the motives of some of the members of the Legislature and I think she ought to stick to the content of the issue before us.”


REPLY BY THE PRESIDENT


      President Owen: “The rules are specific about not impugning other members motives, Senator Swanson. Would you please--”

      Senator Swanson: “Thank you very much. I will try and be more careful about what I am saying.”

      Further debate ensued.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5666, as amended by the House, and the bill failed to pass the Senate by the following vote: Yeas, 23; Nays, 25; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Benton, Deccio, Finkbeiner, Hochstatter, Horn, Johnson, Loveland, McDonald, Newhouse, Prentice, Prince, Roach, Rossi, Schow, Sellar, Snyder, Stevens, Strannigan, Swecker, Wojahn, Wood and Zarelli - 23.          Voting nay: Senators Bauer, Brown, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl, Long, McAuliffe, Morton, Oke, Patterson, Rasmussen, Sheldon, Spanel, Swanson, Thibaudeau, West and Winsley - 25.            Excused: Senator McCaslin - 1.      ENGROSSED SUBSTITUTE SENATE BILL NO. 5666, as amended by the House, having failed to receive the constitutional majority, was declared lost.


MOTION


      At 5:00 p.m., on motion of Senator Johnson, the Senate recessed until 5:30 p.m.


      The Senate was called to order at 5:30 p.m by President Owen.


MOTION


      At 5:30 p.m., on motion of Senator Johnson, the Senate recessed until 6:00 p.m.


      The Senate was called to order at 6:01 p.m by President Owen.

 

MESSAGE FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The House has adopted the Second Report of the Conference Committee on SUBSTITUTE HOUSE BILL NO. 2279 and has passed the bill as recommended by the Conference Committee.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT

      The President signed:

      SECOND SUBSTITUTE SENATE BILL NO. 5740,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6061.


MESSAGE FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The House has adopted the Second Report of the Conference Committee on SENATE BILL NO. 5034 and has passed the bill as recommended by the Conference Committee, and the same are herewith transmitted..

TIMOTHY A. MARTIN, Chief Clerk


SECOND CONFERENCE COMMITTEE REPORT


SB 5034                                                                                                                                                                                          April 27, 1997

Includes "NEW ITEM": Yes


Changing the definition of 'bona fide charitable or nonprofit organization' for gambling statutes

MR. PRESIDENT:

MR. SPEAKER:

      We of your CONFERENCE COMMITTEE, to whom was referred SENATE BILL NO. 5034, changing the definition of 'bona fide charitable or nonprofit organization' for gambling statutes, have had the same under consideration and we recommend that:

      All previous amendments not be adopted, and the following striking amendment as recommended by the Report of the Second Conference Committee be adopted:

      Strike everything after the enacting clause and insert the following:"Sec. 1. RCW 9.46.0209 and 1987 c 4 s 4 are each amended to read as follows:"Bona fide charitable or nonprofit organization," as used in this chapter, means: (1) Any organization duly existing under the provisions of chapters 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the commission to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the commission have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter; or (2) any corporation which has been incorporated under Title 36 U.S.C. and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. Such an organization must have been organized and continuously operating for at least twelve calendar months immediately preceding making application for any license to operate a gambling activity, or the operation of any gambling activity authorized by this chapter for which no license is required. It must have not less than ((fifteen)) seven bona fide active members each with the right to an equal vote in the election of the officers, or board members, if any, who determine the policies of the organization in order to receive a gambling license. An organization must demonstrate to the commission that it has made significant progress toward the accomplishment of the purposes of the organization during the twelve consecutive month period preceding the date of application for a license or license renewal. The fact that contributions to an organization do not qualify for charitable contribution deduction purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the internal revenue code of 1954, as amended, shall constitute prima facie evidence that the organization is not a bona fide charitable or nonprofit organization for the purposes of this section.              Any person, association or organization which pays its employees, including members, compensation other than is reasonable therefor under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under this chapter and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.                 Sec. 2. RCW 9.46.0205 and 1987 c 4 s 3 are each amended to read as follows:                (1) "Bingo," as used in this chapter, means a game ((conducted only in the county within which the organization is principally located)) in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of ((said)) the game, ((when said)) except as authorized by the commission for joint bingo games.                (2) The game ((is)) shall be conducted only by:              (a) A bona fide charitable or nonprofit organization which does not conduct or allow its premises to be used for conducting bingo on more than three occasions per week and which does not conduct bingo in any location which is used for conducting bingo on more than three occasions per week((,)); or ((if))                  (b) An agricultural fair authorized under chapters 15.76 and 36.37 RCW, which does not conduct bingo on more than twelve consecutive days in any calendar year((, and)).             (3) Except in the case of any agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a bona fide member or an employee of ((said)) the organization ((takes)) may take any part in the management or operation of ((said)) the game unless approved by the commission, and no person who takes any part in the management or operation of ((said)) the game ((takes)) may take any part in the management or operation of any game conducted by any other organization or any other branch of the same organization((,)) unless approved by the commission((, and)).      (4) No part of the proceeds ((thereof)) from a bingo game may inure to the benefit of any person other than the organization conducting ((said)) the game.          (5) A bingo game must be conducted only in the county where the sponsoring organization is principally located, except as authorized by the commission for joint bingo games. For the purposes of this section, the organization shall be deemed to be principally located in the county within which it has its primary business office. If the organization has no business office, the organization shall be deemed to be located in the county of principal residence of its chief executive officer((: PROVIDED, That)). Any organization which is conducting any licensed and established bingo game in any locale as of January 1, 1981, shall be exempt from the requirement that such game be conducted in the county in which the organization is principally located.      (6) The commission may authorize joint bingo games conducted by two or more bona fide charitable or nonprofit organizations if the prizes are pooled and the games are conducted during each organization's normal period of operation. The commission may adopt rules for the operation, management, and location of the games.      Sec. 3. RCW 9.46.120 and 1987 c 4 s 40 are each amended to read as follows:                   (1) Except in the case of an agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a member of a bona fide charitable or nonprofit organization (and their employees) or any other person, association or organization (and their employees) approved by the commission, shall take any part in the management or operation of any gambling activity authorized under this chapter((, and)) unless approved by the commission. No person who takes any part in the management or operation of any such gambling activity shall take any part in the management or operation of any gambling activity conducted by any other organization or any other branch of the same organization((,)) unless approved by the commission((, and)). No part of the proceeds ((thereof)) of the activity shall inure to the benefit of any person other than the organization conducting such gambling activities or if such gambling activities be for the charitable benefit of any specific persons designated in the application for a license, then only for such specific persons as so designated.           (2) No bona fide charitable or nonprofit organization or any other person, association or organization shall conduct any gambling activity authorized under this chapter in any leased premises if rental for such premises is unreasonable or to be paid, wholly or partly, on the basis of a percentage of the receipts or profits derived from such gambling activity.                 Sec. 4. RCW 9.46.110 and 1994 c 301 s 2 are each amended to read as follows:                 (1) The legislative authority of any county, city-county, city, or town, by local law and ordinance, and in accordance with the provisions of this chapter and rules ((and regulations promulgated hereunder)) adopted under this chapter, may provide for the taxing of any gambling activity authorized by this chapter within its jurisdiction, the tax receipts to go to the county, city-county, city, or town so taxing the ((same: PROVIDED, That)) activity. Any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located ((therein)) in the county but the tax rate established by a county, if any, shall constitute the tax rate throughout the unincorporated areas of such county((: PROVIDED FURTHER, That (1) punch boards and pull-tabs, chances on which shall)).          (2) The operation of punch boards and pull-tabs are subject to the following conditions:         (a) Chances may only be sold to adults((, which shall have a fifty cent limit on a single chance thereon, shall be taxed on a basis which shall reflect only the gross receipts from such punch boards and pull-tabs; and (2)));      (b) The price of a single chance may not exceed one dollar;                  (c) No punch board or pull-tab license may award as a prize upon a winning number or symbol being drawn the opportunity of taking a chance upon any other punch board or pull-tab; ((and (3)))      (d) All prizes ((for punch boards and pull-tabs)) available to be won must be described on an information flare. All merchandise prizes must be on display within the immediate area of the premises ((wherein)) in which any such punch board or pull-tab is located ((and)). Upon a winning number or symbol being drawn, ((such)) a merchandise prize must be immediately removed ((therefrom)) from the display and awarded to the winner. All references to cash or merchandise prizes, with a value over twenty dollars, must be removed immediately from the information flare when won, or such omission shall be deemed a fraud for the purposes of this chapter; and (((4)))      (e) When any person ((shall win over twenty dollars in)) wins money or merchandise from any punch board or pull-tab over an amount determined by the commission, every licensee ((hereunder)) shall keep a public record ((thereof)) of the award for at least ninety days ((thereafter)) containing such information as the commission shall deem necessary((: AND PROVIDED FURTHER, That)).      (3)(a) Taxation of bingo and raffles shall never be in an amount greater than ten percent of the gross ((revenue received therefrom)) receipts from a bingo game or raffle less the amount ((paid for or)) awarded as cash or merchandise prizes.             (b) Taxation of amusement games shall only be in an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter by the county, city or town law enforcement agency and in no event shall such taxation exceed two percent of the gross ((revenue therefrom)) receipts from the amusement game less the amount ((paid for)) awarded as prizes((: PROVIDED FURTHER, That)).       (c) No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in this chapter, which organization has no paid operating or management personnel and has gross ((income)) receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount ((paid for)) awarded as cash or merchandise prizes.        (d) No tax shall be imposed on the first ten thousand dollars of ((net proceeds)) gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter.         (e) Taxation of punch boards and pull-tabs for bona fide charitable or nonprofit organizations is based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and shall not exceed ((five)) a rate of ten percent ((of gross receipts, nor shall)). At the option of the county, city-county, city, or town, the taxation of punch boards and pull-tabs for commercial stimulant operators may be based on gross receipts from the operation of the games, and may not exceed a rate of five percent, or may be based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and may not exceed a rate of ten percent.     (f) Taxation of social card games may not exceed twenty percent of the gross revenue from such games.            (4) Taxes imposed under this chapter become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes."            On page 1, line 1 of the title, after "gambling;" strike the remainder of the title and insert "and amending RCW 9.46.0209, 9.46.0205, 9.46.120, and 9.46.110.",      and the bill do pass as recommended by the Conference Committee.

      Signed by: Senators Schow, Heavey; Representatives McMorris, Honeyford, Conway.


MOTION


      Senator Schow moved that the Senate adopt the Second Report of the Conference Committee on Senate Bill No. 5034.

      Debate ensued.


PARLIAMENTARY INQUIRY


      Senator Oke: “A parliamentary inquiry, Mr. President. In accordance with Article II, Section 24, does Senate Bill No. 5034 take an affirmative vote of sixty percent of the body?”

 

RULING BY THE PRESIDENT


      President Owen: “Senator Oke, the President believes, because Section 2 removes the restriction on the locations of bingo games and expands the number of sites, that it would take sixty percent or thirty votes to pass the bill.”

      Further debate ensued

      The President declared the question before the Senate to be the motion by Senator Schow that the Senate adopt the Second Report of the Conference Committee on Senate Bill No. 5034.

      The motion by Senator Schow carried and the Senate adopted the Second Report of the Conference Committee on Senate Bill No. 5034.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5034, as recommended by the Conference Committee.

      Debate ensued.


POINT OF ORDER


      Senator Heavey: “A point of order, Mr. President. Mr. President, Senator Oke's question, as to the Constitution, doesn't that go to whether it is a new form of gambling, as opposed to expansion? In fact, this is not even expansion or no new licensees. It is bingo and there is no new form of gambling. Would it be appropriate to ask you to reconsider your ruling on the sixty percent?”


RULING BVGBY THE PRESIDENT


      President Owen: “The President has reviewed the section with both attorneys and I believe that the President's ruling is correct.”

      Further debate ensued.

ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5034, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 34; Nays, 14; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Finkbeiner, Fraser, Goings, Hale, Heavey, Horn, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, Newhouse, Patterson, Prentice, Prince, Rasmussen, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Strannigan, Swanson, Swecker, West and Wood - 34.                 Voting nay: Senators Fairley, Franklin, Hargrove, Haugen, Hochstatter, Jacobsen, McDonald, Morton, Oke, Roach, Stevens, Thibaudeau, Winsley and Wojahn - 14.                    Absent: Senator Zarelli - 1.      SENATE BILL NO. 5034, as recommended by the Conference Committee, 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.

 

APPOINTMENT OF INTERIM COMMITTEES


      The President announced the following appointments to interim committees:


      JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE: Senators Oke, Stevens, Strannigan, West, Bauer, Loveland, Spanel and Wojahn


      COMMITTEE ON ENERGY AND UTILITIES: Senators Finkbeiner, Hochstatter, Brown and Jacobsen


      LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM (LEAP): Senators Winsley, Horn, Kohl and Spanel


      LEGISLATIVE TRANSPORTATION COMMITTEE: Senators Benton, Horn, Oke, Prince, Sellar, Wood, Haugen, Heavey, Prentice, Rasmussen and Goings


MOTION


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


MESSAGES FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The Speaker has signed:

`     ENGROSSED SUBSTITUTE HOUSE BILL NO. 1011,

      SUBSTITUTE HOUSE BILL NO. 1118,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1303,

      SUBSTITUTE HOUSE BILL NO. 1418,

      SUBSTITUTE HOUSE BILL NO. 1565,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1730,

      HOUSE BILL NO. 1819,

      SUBSTITUTE HOUSE BILL NO. 2097,

      ENGROSSED HOUSE BILL NO. 2255,

      HOUSE CONCURRENT RESOLUTION NO. 4413, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The Speaker has signed:

`     SUBSTITUTE SENATE BILL NO. 5030,

      SUBSTITUTE SENATE BILL NO. 5718, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The Speaker has signed SECOND SUBSTITUTE HOUSE BILL NO. 2054, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk




SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1011,

      SUBSTITUTE HOUSE BILL NO. 1118,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1303,

      SUBSTITUTE HOUSE BILL NO. 1418,

      SUBSTITUTE HOUSE BILL NO. 1565,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1730,

      HOUSE BILL NO. 1819,

      SECOND SUBSTITUTE HOUSE BILL NO. 2054,

      SUBSTITUTE HOUSE BILL NO. 2097,

      ENGROSSED HOUSE BILL NO. 2255,

      HOUSE CONCURRENT RESOLUTION NO. 4413.


MESSAGE FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5227 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The health of the people of our state is a most important public concern. The state has an interest in assuring the continued existence of accessible, affordable health care facilities that are responsive to the needs of the communities in which they exist. The state also has a responsibility to protect the public interest in nonprofit hospitals and to clarify the responsibilities of local public hospital district boards with respect to public hospital district assets by making certain that the charitable and public assets of those hospitals are managed prudently and safeguarded consistent with their mission under the laws governing nonprofit and municipal corporations.                    NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.               (1) "Department" means the Washington state department of health.            (2) "Hospital" means any entity that is: (a) Defined as a hospital in RCW 70.41.020 and is required to obtain a license under RCW 70.41.090; or (b) a psychiatric hospital required to obtain a license under chapter 71.12 RCW.       (3) "Acquisition" means an acquisition by a person of an interest in a nonprofit hospital, whether by purchase, merger, lease, gift, joint venture, or otherwise, that results in a change of ownership or control of twenty percent or more of the assets of the hospital, or that results in the acquiring person holding or controlling fifty percent or more of the assets of the hospital, but acquisition does not include an acquisition if the acquiring person: (a) Is a nonprofit corporation having a substantially similar charitable health care purpose as the nonprofit corporation from whom the hospital is being acquired, or is a government entity; (b) is exempt from federal income tax under section 501(c)(3) of the internal revenue code or as a government entity; and (c) will maintain representation from the affected community on the local board of the hospital.         (4) "Nonprofit hospital" means a hospital owned by a nonprofit corporation organized under Title 24 RCW.                   (5) "Person" means an individual, a trust or estate, a partnership, a corporation including associations, limited liability companies, joint stock companies, and insurance companies.         NEW SECTION. Sec. 3. (1) A person may not engage in the acquisition of a nonprofit hospital without first having applied for and received the approval of the department under this chapter.               (2) An application must be submitted to the department on forms provided by the department, and at a minimum must include: The name of the hospital being acquired, the name of the acquiring person or other parties to the acquisition, the acquisition price, a copy of the acquisition agreement, a financial and economic analysis and report from an independent expert or consultant of the effect of the acquisition under the criteria in section 7 of this act, and all other related documents. The applications and all related documents are considered public records for purposes of chapter 42.17 RCW.      (3) The department shall charge an applicant fees sufficient to cover the costs of implementing this chapter. The fees must include the cost of the attorney general's opinion under section 6 of this act. The department shall transfer this portion of the fee, upon receipt, to the attorney general.           NEW SECTION. Sec. 4. (1) The department, in consultation with the attorney general, shall determine if the application is complete for the purposes of review. The department may find that an application is incomplete if a question on the application form has not been answered in whole or in part, or has been answered in a manner that does not fairly meet the question addressed, or if the application does not include attachments of supporting documents as required by section 3 of this act. If the department determines that an application is incomplete, it shall notify the applicant within fifteen working days after the date the application was received stating the reasons for its determination of incompleteness, with reference to the particular questions for which a deficiency is noted.      (2) Within five working days after receipt of a completed application, the department shall publish notice of the application in a newspaper of general circulation in the county or counties where the hospital is located and shall notify by first class United States mail, electronic mail, or facsimile transmission, any person who has requested notice of the filing of such applications. The notice must state that an application has been received, state the names of the parties to the agreement, describe the contents of the application, and state the date by which a person may submit written comments about the application to the department.        NEW SECTION. Sec. 5. During the course of review under this chapter, the department shall conduct one or more public hearings, at least one of which must be in the county where the hospital to be acquired is located. At the hearings, anyone may file written comments and exhibits or appear and make a statement. The department may subpoena additional information or witnesses, require and administer oaths, require sworn statements, take depositions, and use related discovery procedures for purposes of the hearing and at any time prior to making a decision on the application.      A hearing must be held not later than forty-five days after receipt of a completed application. At least ten days' public notice must be given before the holding of a hearing.          NEW SECTION. Sec. 6. (1) The department shall provide the attorney general with a copy of a completed application upon receiving it. The attorney general shall review the completed application, and within forty-five days of the first public hearing held under section 5 of this act shall provide a written opinion to the department as to whether or not the acquisition meets the requirements for approval in section 7 of this act.        (2) The department shall review the completed application to determine whether or not the acquisition meets the requirements for approval in sections 7 and 8 of this act. Within thirty days after receiving the written opinion of the attorney general under subsection (1) of this section, the department shall:              (a) Approve the acquisition, with or without any specific modifications or conditions; or    (b) Disapprove the acquisition.               (3) The department may not make its decision subject to any condition not directly related to requirements in section 7 or 8 of this act, and any condition or modification must bear a direct and rational relationship to the application under review.            (4) A person engaged in an acquisition and affected by a final decision of the department has the right to an adjudicative proceeding under chapter 34.05 RCW. The opinion of the attorney general provided under subsection (1) of this section may not constitute a final decision for purposes of review.            (5) The department or the attorney general may extend, by not more than thirty days, any deadline established under this chapter one time during consideration of any application, for good cause.                 NEW SECTION. Sec. 7. The department shall only approve an application if the parties to the acquisition have taken the proper steps to safeguard the value of charitable assets and ensure that any proceeds from the acquisition are used for appropriate charitable health purposes. To this end, the department may not approve an application unless, at a minimum, it determines that:      (1) The acquisition is permitted under chapter 24.03 RCW, the Washington nonprofit corporation act, and other laws governing nonprofit entities, trusts, or charities;            (2) The nonprofit corporation that owns the hospital being acquired has exercised due diligence in authorizing the acquisition, selecting the acquiring person, and negotiating the terms and conditions of the acquisition;      (3) The procedures used by the nonprofit corporation's board of trustees and officers in making its decision fulfilled their fiduciary duties, that the board and officers were sufficiently informed about the proposed acquisition and possible alternatives, and that they used appropriate expert assistance;       (4) No conflict of interest exists related to the acquisition, including, but not limited to, conflicts of interest related to board members of, executives of, and experts retained by the nonprofit corporation, acquiring person, or other parties to the acquisition;        (5) The nonprofit corporation will receive fair market value for its assets. The attorney general or the department may employ, at the expense of the acquiring person, reasonably necessary expert assistance in making this determination. This expense must be in addition to the fees charged under section 3 of this act;       (6) Charitable funds will not be placed at unreasonable risk, if the acquisition is financed in part by the nonprofit corporation;           (7) Any management contract under the acquisition will be for fair market value;      (8) The proceeds from the acquisition will be controlled as charitable funds independently of the acquiring person or parties to the acquisition, and will be used for charitable health purposes consistent with the nonprofit corporation's original purpose, including providing health care to the disadvantaged, the uninsured, and the underinsured and providing benefits to promote improved health in the affected community;        (9) Any charitable entity established to hold the proceeds of the acquisition will be broadly based in and representative of the community where the hospital to be acquired is located, taking into consideration the structure and governance of such entity; and      (10) A right of first refusal to repurchase the assets by a successor nonprofit corporation or foundation has been retained if the hospital is subsequently sold to, acquired by, or merged with another entity.            NEW SECTION. Sec. 8. The department shall only approve an application if the acquisition in question will not detrimentally affect the continued existence of accessible, affordable health care that is responsive to the needs of the community in which the hospital to be acquired is located. To this end, the department shall not approve an application unless, at a minimum, it determines that:                   (1) Sufficient safeguards are included to assure the affected community continued access to affordable care, and that alternative sources of care are available in the community should the acquisition result in a reduction or elimination of particular health services;                  (2) The acquisition will not result in the revocation of hospital privileges;      (3) Sufficient safeguards are included to maintain appropriate capacity for health science research and health care provider education;      (4) The acquiring person and parties to the acquisition are committed to providing health care to the disadvantaged, the uninsured, and the underinsured and to providing benefits to promote improved health in the affected community. Activities and funding provided under section 7(8) of this act may be considered in evaluating compliance with this commitment; and                (5) Sufficient safeguards are included to avoid conflict of interest in patient referral.              NEW SECTION. Sec. 9. (1) The secretary of state may not accept any forms or documents in connection with any acquisition of a nonprofit hospital until the acquisition has been approved by the department under this chapter.              (2) The attorney general may seek an injunction to prevent any acquisition not approved by the department under this chapter.              NEW SECTION. Sec. 10. The department shall require periodic reports from the nonprofit corporation or its successor nonprofit corporation or foundation and from the acquiring person or other parties to the acquisition to ensure compliance with commitments made. The department may subpoena information and documents and may conduct onsite compliance audits at the acquiring person's expense.             If the department receives information indicating that the acquiring person is not fulfilling commitments to the affected community under section 8 of this act, the department shall hold a hearing upon ten days' notice to the affected parties. If after the hearing the department determines that the information is true, it may revoke or suspend the hospital license issued to the acquiring person pursuant to the procedure established under RCW 70.41.130, refer the matter to the attorney general for appropriate action, or both. The attorney general may seek a court order compelling the acquiring person to fulfill its commitments under section 8 of this act.             NEW SECTION. Sec. 11. The attorney general has the authority to ensure compliance with commitments that inure to the public interest.        NEW SECTION. Sec. 12. An acquisition of a hospital completed before the effective date of this act and an acquisition in which an application for a certificate of need under chapter 70.38 RCW has been granted by the department before the effective date of this act is not subject to this chapter.              NEW SECTION. Sec. 13. No provision of this chapter derogates from the common law or statutory authority of the attorney general.           NEW SECTION. Sec. 14. The department may adopt rules necessary to implement this chapter and may contract with and provide reasonable reimbursement to qualified persons to assist in determining whether the requirements of sections 7 and 8 have been met.           Sec. 15. RCW 70.44.007 and 1982 c 84 s 12 are each amended to read as follows:        As used in this chapter, the following words ((shall)) have the meanings indicated:                (1) ((The words)) "Other health care facilities" ((shall)) means nursing home, extended care, long-term care, outpatient and rehabilitative facilities, ambulances, and such other facilities as are appropriate to the health needs of the population served.   (2) ((The words)) "Other health care services" ((shall)) means nursing home, extended care, long-term care, outpatient, rehabilitative, health maintenance, and ambulance services and such other services as are appropriate to the health needs of the population served.         (3) "Public hospital district" or "district" means public health care service district.              Sec. 16. RCW 70.44.240 and 1982 c 84 s 19 are each amended to read as follows:             Any public hospital district may contract or join with any other public hospital district, any publicly owned hospital, any nonprofit hospital, any corporation, any other legal entity, or individual to acquire ((or provide services or facilities)), own, operate, manage, or provide any hospital or other health care facilities or hospital services or other health care services to be used by individuals, districts, hospitals, or others, including the providing of health maintenance services. If a public hospital district chooses to contract or join with another party or parties pursuant to the provisions of this chapter, it may do so through the establishment of a nonprofit corporation, partnership, limited liability company, or other legal entity of its choosing in which the public hospital district and the other party or parties participate. The governing body of such legal entity shall include representatives of the public hospital district, including members of the public hospital district's board of commissioners. A public hospital district contracting or joining with another party pursuant to the provisions of this chapter may appropriate funds and may sell, lease, or otherwise provide property, personnel, and services to the legal entity established to carry out the contract or joint activity.                 Sec. 17. RCW 70.44.300 and 1984 c 103 s 4 are each amended to read as follows:            (1) The board of commissioners of any public hospital district may sell and convey at public or private sale real property of the district ((which)) if the board ((has determined)) determines by resolution that the property is no longer required for public hospital district purposes or determines by resolution that the sale of the property will further the purposes of the public hospital district. ((Such sale and conveyance may be by deed or real estate contract.))         (2) Any sale of district real property authorized pursuant to this section shall be preceded, not more than one year prior to the date of sale, by market value appraisals by three licensed real estate brokers or professionally designated real estate appraisers as defined in RCW 74.46.020 or three independent experts in valuing health care property, selected by the board of commissioners, and no sale shall take place if the sale price would be less than ninety percent of the average of such appraisals.          (3) When the board of commissioners of any public hospital district proposes a sale of district real property pursuant to this section and the value of the property exceeds one hundred thousand dollars, the board shall publish a notice of its intention to sell the property. The notice shall be published at least once each week during two consecutive weeks in a legal newspaper of general circulation within the public hospital district. The notice shall describe the property to be sold and designate the place where and the day and hour when a hearing will be held. The board shall hold a public hearing upon the proposal to dispose of the public hospital district property at the place and the day and hour fixed in the notice and consider evidence offered for and against the propriety and advisability of the proposed sale.           (4) If in the judgment of the board of commissioners of any district the sale of any district real property not needed for public hospital district purposes would be facilitated and greater value realized through use of the services of licensed real estate brokers, a contract for such services may be negotiated and concluded. The fee or commissions charged for any broker service shall not exceed seven percent of the resulting sale price for a single parcel. No licensed real estate broker or professionally designated real estate appraisers as defined in RCW 74.46.020 or independent expert in valuing health care property selected by the board to appraise the market value of a parcel of property to be sold may be a party to any contract with the public hospital district to sell such property for a period of three years after the appraisal.                NEW SECTION. Sec. 18. A new section is added to chapter 70.44 RCW to read as follows:         (1) When evaluating a potential acquisition, the commissioners shall determine their compliance with the following requirements:     (a) That the acquisition is authorized under chapter 70.44 RCW and other laws governing public hospital districts;      (b) That the procedures used in the decision-making process allowed district officials to thoroughly fulfill their due diligence responsibilities as municipal officers, including those covered under chapter 42.23 RCW governing conflicts of interest and chapter 42.20 RCW prohibiting malfeasance of public officials;        (c) That the acquisition will not result in the revocation of hospital privileges;      (d) That sufficient safeguards are included to maintain appropriate capacity for health science research and health care provider education;          (e) That the acquisition is allowed under Article VIII, section 7 of the state Constitution, which prohibits gifts of public funds or lending of credit and Article XI, section 14, prohibiting private use of public funds;                    (f) That the public hospital district will retain control over district functions as required under chapter 70.44 RCW and other laws governing hospital districts;           (g) That the activities related to the acquisition process complied with chapters 42.17 and 42.32 RCW, governing disclosure of public records, and chapter 42.30 RCW, governing public meetings;         (h) That the acquisition complies with the requirements of RCW 70.44.300 relating to fair market value; and               (i) Other state laws affecting the proposed acquisition.          (2) The commissioners shall also determine whether the public hospital district should retain a right of first refusal to repurchase the assets by the public hospital district if the hospital is subsequently sold to, acquired by, or merged with another entity.            (3)(a) Prior to approving the acquisition of a district hospital, the board of commissioners of the hospital district shall obtain a written opinion from a qualified independent expert or the Washington state department of health as to whether or not the acquisition meets the standards set forth in section 8 of this act.          (b) Upon request, the hospital district and the person seeking to acquire its hospital shall provide the department or independent expert with any needed information and documents. The department shall charge the hospital district for any costs the department incurs in preparing an opinion under this section. The hospital district may recover from the acquiring person any costs it incurs in obtaining the opinion from either the department or the independent expert. The opinion shall be delivered to the board of commissioners no later than ninety days after it is requested.      (c) Within ten working days after it receives the opinion, the board of commissioners shall publish notice of the opinion in at least one newspaper of general circulation within the hospital district, stating how a person may obtain a copy, and giving the time and location of the hearing required under (d) of this subsection. It shall make a copy of the report and the opinion available to anyone upon request.      (d) Within thirty days after it received the opinion, the board of commissioners shall hold a public hearing regarding the proposed acquisition. The board of commissioners may vote to approve the acquisition no sooner than thirty days following the public hearing.      (4)(a) For purposes of this section, "acquisition" means an acquisition by a person of any interest in a hospital owned by a public hospital district, whether by purchase, merger, lease, or otherwise, that results in a change of ownership or control of twenty percent or more of the assets of a hospital currently licensed and operating under RCW 70.41.090. Acquisition does not include an acquisition where the other party or parties to the acquisition are nonprofit corporations having a substantially similar charitable health care purpose, organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code, or governmental entities. Acquisition does not include an acquisition where the other party is an organization that is a limited liability corporation, a partnership, or any other legal entity and the members, partners, or otherwise designated controlling parties of the organization are all nonprofit corporations having a charitable health care purpose, organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code, or governmental entities. Acquisition does not include activities between two or more governmental organizations, including organizations acting pursuant to chapter 39.34 RCW, regardless of the type of organizational structure used by the governmental entities.             (b) For purposes of this subsection (4), "person" means an individual, a trust or estate, a partnership, a corporation including associations, a limited liability company, a joint stock company, or an insurance company.   NEW SECTION. Sec. 19. 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. 20. Sections 1 through 14 of this act constitute a new chapter in Title 70 RCW.            NEW SECTION. Sec. 21. 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 accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      On motion of Senator Deccio, the Senate concurred in the House amendment to Substitute Senate Bill No. 5227.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5227, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5227, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      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, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 49.     SUBSTITUTE SENATE BILL NO. 5227, 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.



SECOND CONFERENCE COMMITTEE REPORT (RESUBMITTED)


E2SHB 1850                                                                                                                                                                                  April 26, 1997

Includes "NEW ITEM": Yes


Adopting the long-term care reorganization and standards of care reform act.

MR. PRESIDENT:

MR. SPEAKER:

      We of your CONFERENCE COMMITTEE, to whom was referred ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1850, adopting the long-term care reorganization and standards of care reform act, have had the same under consideration and we recommend that:

      All previous amendments not be adopted, and the following striking amendment as recommended by the Second Report of the Conference Committee be adopted:

      Strike everything after the enacting clause and insert the following:"PART I      NEW SECTION. Sec. 101. This act shall be known and may be cited as the Clara act.       NEW SECTION. Sec. 102. FINDINGS AND INTENT. The legislature finds and declares that the state's current fragmented categorical system for administering services to persons with disabilities and the elderly is not client and family-centered and has created significant organizational barriers to providing high quality, safe, and effective care and support. The present fragmented system results in uncoordinated enforcement of regulations designed to protect the health and safety of disabled persons, lacks accountability due to the absence of management information systems' client tracking data, and perpetuates difficulty in matching client needs and services to multiple categorical funding sources.       The legislature further finds that Washington's chronically functionally disabled population of all ages is growing at a rapid pace due to a population of the very old and increased incidence of disability due in large measure to technological improvements in acute care causing people to live longer. Further, to meet the significant and growing long-term care needs into the near future, rapid, fundamental changes must take place in the way we finance, organize, and provide long-term care services to the chronically functionally disabled.           The legislature further finds that the public demands that long-term care services be safe, client and family-centered, and designed to encourage individual dignity, autonomy, and development of the fullest human potential at home or in other residential settings, whenever practicable.       NEW SECTION. Sec. 103. A new section is added to chapter 74.39A RCW to read as follows:          DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.      (1) "Adult family home" means a home licensed under chapter 70.128 RCW.                     (2) "Adult residential care" means services provided by a boarding home that is licensed under chapter 18.20 RCW and that has a contract with the department under RCW 74.39A.020.      (3) "Assisted living services" means services provided by a boarding home that has a contract with the department under RCW 74.39A.010 and the resident is housed in a private apartment-like unit.       (4) "Boarding home" means a facility licensed under chapter 18.20 RCW.                 (5) "Cost-effective care" means care provided in a setting of an individual's choice that is necessary to promote the most appropriate level of physical, mental, and psychosocial well-being consistent with client choice, in an environment that is appropriate to the care and safety needs of the individual, and such care cannot be provided at a lower cost in any other setting. But this in no way precludes an individual from choosing a different residential setting to achieve his or her desired quality of life.                      (6) "Department" means the department of social and health services.     (7) "Enhanced adult residential care" means services provided by a boarding home that is licensed under chapter 18.20 RCW and that has a contract with the department under RCW 74.39A.010.             (8) "Functionally disabled person" is synonymous with chronic functionally disabled and means a person who because of a recognized chronic physical or mental condition or disease, including chemical dependency, is impaired to the extent of being dependent upon others for direct care, support, supervision, or monitoring to perform activities of daily living. "Activities of daily living", in this context, means self-care abilities related to personal care such as bathing, eating, using the toilet, dressing, and transfer. Instrumental activities of daily living may also be used to assess a person's functional abilities as they are related to the mental capacity to perform activities in the home and the community such as cooking, shopping, house cleaning, doing laundry, working, and managing personal finances.                  (9) "Home and community services" means adult family homes, in-home services, and other services administered or provided by contract by the department directly or through contract with area agencies on aging or similar services provided by facilities and agencies licensed by the department.          (10) "Long-term care" is synonymous with chronic care and means care and supports delivered indefinitely, intermittently, or over a sustained time to persons of any age disabled by chronic mental or physical illness, disease, chemical dependency, or a medical condition that is permanent, not reversible or curable, or is long-lasting and severely limits their mental or physical capacity for self-care. The use of this definition is not intended to expand the scope of services, care, or assistance by any individuals, groups, residential care settings, or professions unless otherwise expressed by law.         (11) "Nursing home" means a facility licensed under chapter 18.51 RCW.           (12) "Secretary" means the secretary of social and health services.         (13) "Tribally licensed boarding home" means a boarding home licensed by a federally recognized Indian tribe which home provides services similar to boarding homes licensed under chapter 18.20 RCW.             NEW SECTION. Sec. 104. JOINT LEGISLATIVE COMMITTEE ON LONG-TERM CARE OVERSIGHT. (1) There is created a joint legislative committee on long-term care oversight. The committee shall consist of: (a) Four members of the senate appointed by the president of the senate, two of whom shall be members of the majority party and two of whom shall be members of the minority party; and (b) four members of the house of representatives, two of whom shall be members of the majority party and two of whom shall be members of the minority party.   (2) The committee shall elect a chair and vice-chair. The chair shall be a member of the senate in even-numbered years and a member of the house of representatives in odd-numbered years. The vice-chair shall be a member of the senate in odd-numbered years and a member of the house of representatives in even-numbered years.      (3) The committee shall:         (a) Review the need for reorganization and reform of long-term care administration and service delivery;              (b) Review all quality standards developed, revised, and enforced by the department;        (c) In cooperation with the department of social and health services, develop suggestions to simplify, reduce, or eliminate unnecessary rules, procedures, and burdensome paperwork that prove to be barriers to providing effective coordination or high quality direct services;  (d) Suggest methods of cost-efficiencies that can be used to reallocate funds to unmet needs in direct services;      (e) List all nonmeans tested programs and activities funded by the federal older Americans act and state funded senior citizens act or other such state funded programs and recommend how to integrate such services into existing long-term care programs for the functionally disabled;             (f) Suggest methods to establish a single point of entry for service eligibility and delivery for functionally disabled persons;      (g) Evaluate the need for long-term care training and review all long-term care training and education programs conducted by the department and suggest modifications to improve the training system;       (h) Describe current facilities and services that provide long-term care to all types of chronically disabled individuals in the state including Revised Code of Washington requirements, Washington Administrative Code rules, allowable occupancy, typical clientele, discharge practices, agency oversight, rates, eligibility requirements, entry process, social and health services and other services provided, staffing standards, and physical plant standards;                      (i) Determine the extent to which the current long-term care system meets the health and safety needs of the state's long-term care population and is appropriate for the specific and identified needs of the residents in all settings;          (j) Assess the adequacy of the discharge and referral process in protecting the health and safety of long-term care clients;           (k) Determine the extent to which training and supervision of direct care staff are adequate to ensure safety and appropriate care;      (l) Identify opportunities for consolidation between categories of care; and      (m) Determine if payment rates are adequate to cover the varying costs of clients with different levels of need.PART IIQUALITY STANDARDS AND COMPLAINT ENFORCEMENTNEW SECTION. Sec. 201. A new section is added to chapter 70.124 RCW to read as follows:             (1) An employee who is a whistleblower and who as a result of being a whistleblower has been subjected to workplace reprisal or retaliatory action, has the remedies provided under chapter 49.60 RCW. RCW 4.24.500 through 4.24.520, providing certain protection to persons who communicate to government agencies, apply to complaints made under this section. The identity of a whistleblower who complains, in good faith, to the department about suspected abuse, neglect, financial exploitation, or abandonment by any person in a nursing home, state hospital, or adult family home may remain confidential if requested. The identity of the whistleblower shall subsequently remain confidential unless the department determines that the complaint was not made in good faith.     (2)(a) An attempt to discharge a resident from a nursing home, state hospital, adult family home, or any type of discriminatory treatment of a resident by whom, or upon whose behalf, a complaint substantiated by the department has been submitted to the department or any proceeding instituted under or related to this chapter within one year of the filing of the complaint or the institution of the action, raises a rebuttable presumption that the action was in retaliation for the filing of the complaint.           (b) The presumption is rebutted by credible evidence establishing the alleged retaliatory action was initiated prior to the complaint.            (c) The presumption is rebutted by a functional assessment conducted by the department that shows that the resident's needs cannot be met by the reasonable accommodations of the facility due to the increased needs of the resident.                  (3) For the purposes of this section:       (a) "Whistleblower" means a resident or employee of a nursing home, state hospital, or adult family home, or any person licensed under Title 18 RCW, who in good faith reports alleged abuse, neglect, exploitation, or abandonment to the department or to a law enforcement agency;      (b) "Workplace reprisal or retaliatory action" means, but is not limited to: Denial of adequate staff to perform duties; frequent staff changes; frequent and undesirable office changes; refusal to assign meaningful work; unwarranted and unsubstantiated report of misconduct under Title 18 RCW; letters of reprimand or unsatisfactory performance evaluations; demotion; denial of employment; or a supervisor or superior encouraging coworkers to behave in a hostile manner toward the whistleblower; and                   (c) "Reasonable accommodation" by a facility to the needs of a prospective or current resident has the meaning given to this term under the federal Americans with disabilities act of 1990, 42 U.S.C. Sec. 12101 et seq. and other applicable federal or state antidiscrimination laws and regulations.           (4) This section does not prohibit a nursing home, state hospital, or adult family home from exercising its authority to terminate, suspend, or discipline an employee who engages in workplace reprisal or retaliatory action against a whistleblower. The protections provided to whistleblowers under this chapter shall not prevent a nursing home, state hospital, or adult family home from: (a) Terminating, suspending, or disciplining a whistleblower for other lawful purposes; or (b) for facilities with six or fewer residents, reducing the hours of employment or terminating employment as a result of the demonstrated inability to meet payroll requirements. The department shall determine if the facility cannot meet payroll in cases where a whistleblower has been terminated or had hours of employment reduced due to the inability of a facility to meet payroll.      (5) The department shall adopt rules to implement procedures for filing, investigation, and resolution of whistleblower complaints that are integrated with complaint procedures under this chapter.              (6) No frail elder or vulnerable person who relies upon and is being provided spiritual treatment in lieu of medical treatment in accordance with the tenets and practices of a well-recognized religious denomination shall for that reason alone be considered abandoned, abused, or neglected, nor shall anything in this chapter be construed to authorize, permit, or require medical treatment contrary to the stated or clearly implied objection of such a person.      (7) The department shall adopt rules designed to discourage whistleblower complaints made in bad faith or for retaliatory purposes.      NEW SECTION. Sec. 202. A new section is added to chapter 74.34 RCW to read as follows:          (1) An employee or contractor who is a whistleblower and who as a result of being a whistleblower has been subjected to workplace reprisal or retaliatory action, has the remedies provided under chapter 49.60 RCW. RCW 4.24.500 through 4.24.520, providing certain protection to persons who communicate to government agencies, apply to complaints made under this section. The identity of a whistleblower who complains, in good faith, to the department about suspected abuse, neglect, exploitation, or abandonment by any person in a boarding home licensed or required to be licensed pursuant to chapter 18.20 RCW or a veterans' home pursuant to chapter 72.36 RCW or care provided in a boarding home or a veterans' home by any person associated with a hospice, home care, or home health agency licensed under chapter 70.127 RCW or other in-home provider may remain confidential if requested. The identity of the whistleblower shall subsequently remain confidential unless the department determines that the complaint was not made in good faith.                 (2)(a) An attempt to expel a resident from a boarding home or veterans' home, or any type of discriminatory treatment of a resident who is a consumer of hospice, home health, home care services, or other in-home services by whom, or upon whose behalf, a complaint substantiated by the department or the department of health has been submitted to the department or any proceeding instituted under or related to this chapter within one year of the filing of the complaint or the institution of the action, raises a rebuttable presumption that the action was in retaliation for the filing of the complaint.      (b) The presumption is rebutted by credible evidence establishing the alleged retaliatory action was initiated prior to the complaint.      (c) The presumption is rebutted by a functional assessment conducted by the department that shows that the resident or consumer's needs cannot be met by the reasonable accommodations of the facility due to the increased needs of the resident.              (3) For the purposes of this section:              (a) "Whistleblower" means a resident or a person with a mandatory duty to report under this chapter, or any person licensed under Title 18 RCW, who in good faith reports alleged abuse, neglect, exploitation, or abandonment to the department, or the department of health, or to a law enforcement agency;   (b) "Workplace reprisal or retaliatory action" means, but is not limited to: Denial of adequate staff to perform duties; frequent staff changes; frequent and undesirable office changes; refusal to assign meaningful work; unwarranted and unsubstantiated report of misconduct under Title 18 RCW; letters of reprimand or unsatisfactory performance evaluations; demotion; denial of employment; or a supervisor or superior encouraging coworkers to behave in a hostile manner toward the whistleblower. The protections provided to whistleblowers under this chapter shall not prevent a nursing home, state hospital, boarding home, or adult family home from: (i) Terminating, suspending, or disciplining a whistleblower for other lawful purposes; or (ii) for facilities licensed under chapter 70.128 RCW, reducing the hours of employment or terminating employment as a result of the demonstrated inability to meet payroll requirements. The department shall determine if the facility cannot meet payroll in cases in which a whistleblower has been terminated or had hours of employment reduced because of the inability of a facility to meet payroll; and                      (c) "Reasonable accommodation" by a facility to the needs of a prospective or current resident has the meaning given to this term under the federal Americans with disabilities act of 1990, 42 U.S.C. Sec. 12101 et seq. and other applicable federal or state antidiscrimination laws and regulations.           (4) This section does not prohibit a boarding home or veterans' home from exercising its authority to terminate, suspend, or discipline any employee who engages in workplace reprisal or retaliatory action against a whistleblower.               (5) The department shall adopt rules to implement procedures for filing, investigation, and resolution of whistleblower complaints that are integrated with complaint procedures under this chapter.              (6) No frail elder or vulnerable person who relies upon and is being provided spiritual treatment in lieu of medical treatment in accordance with the tenets and practices of a well-recognized religious denomination shall for that reason alone be considered abandoned, abused, or neglected, nor shall anything in this chapter be construed to authorize, permit, or require medical treatment contrary to the stated or clearly implied objection of such a person.              (7) The department, and the department of health for facilities, agencies, or individuals it regulates, shall adopt rules designed to discourage whistleblower complaints made in bad faith or for retaliatory purposes.      Sec. 203. RCW 70.129.010 and 1994 c 214 s 2 are each amended to read as follows:         Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.        (1) "Department" means the department of state government responsible for licensing the provider in question.                (2) "Facility" means a long-term care facility.       (3) "Long-term care facility" means a facility that is licensed or required to be licensed under chapter 18.20, 72.36, or 70.128 RCW.              (4) "Resident" means the individual receiving services in a long-term care facility, that resident's attorney in fact, guardian, or other legal representative acting within the scope of their authority.            (5) "Physical restraint" means a manual method, obstacle, or physical or mechanical device, material, or equipment attached or adjacent to the resident's body that restricts freedom of movement or access to his or her body(([,])), is used for discipline or convenience(([,])), and not required to treat the resident's medical symptoms.            (6) "Chemical restraint" means a psychopharmacologic drug that is used for discipline or convenience and not required to treat the resident's medical symptoms.                 (7) "Representative" means a person appointed under RCW 7.70.065.    (8) "Reasonable accommodation" by a facility to the needs of a prospective or current resident has the meaning given to this term under the federal Americans with disabilities act of 1990, 42 U.S.C. Sec. 12101 et seq. and other applicable federal or state antidiscrimination laws and regulations.             Sec. 204. RCW 70.129.030 and 1994 c 214 s 4 are each amended to read as follows:         (1) The facility must inform the resident both orally and in writing in a language that the resident understands of his or her rights and all rules and regulations governing resident conduct and responsibilities during the stay in the facility. The notification must be made prior to or upon admission. Receipt of the information must be acknowledged in writing.                  (2) The resident or his or her legal representative has the right:           (a) Upon an oral or written request, to access all records pertaining to himself or herself including clinical records within twenty-four hours; and             (b) After receipt of his or her records for inspection, to purchase at a cost not to exceed the community standard photocopies of the records or portions of them upon request and two working days' advance notice to the facility.      (3) The facility shall only admit or retain individuals whose needs it can safely and appropriately serve in the facility with appropriate available staff or through the provision of reasonable accommodations as required by state or federal law. Except in cases of emergency, facilities shall not admit an individual before obtaining a comprehensive assessment of the resident's needs and preferences, unless unavailable despite the best efforts of the facility and other interested parties. The assessment shall contain, within existing department funds, the following information: Recent medical history; necessary and prohibited medications; a medical professional's diagnosis; significant known behaviors or symptoms that may cause concern or require special care; mental illness except where protected by confidentiality laws; level of personal care needs; activities and service preferences; and preferences regarding issues important to the potential resident, such as food and daily routine. The facility must inform each resident in writing in a language the resident or his or her representative understands before((, or at the time of)) admission, and at least once every twenty-four months thereafter, of: (a) Services, items, and activities customarily available in the facility or arranged for by the facility; (b) charges for those services, items, and activities including charges for services, items, and activities not covered by the facility's per diem rate or applicable public benefit programs; and (c) the rules of facility operations required under RCW 70.129.140(2). Each resident and his or her representative must be informed in writing in advance of changes in the availability or the charges for services, items, or activities, or of changes in the facility's rules. Except in unusual circumstances, thirty days' advance notice must be given prior to the change. However, for facilities licensed for six or fewer residents, if there has been a substantial and continuing change in the resident's condition necessitating substantially greater or lesser services, items, or activities, then the charges for those services, items, or activities may be changed upon fourteen days advance written notice.                (4) The facility must furnish a written description of residents rights that includes:         (a) A description of the manner of protecting personal funds, under RCW 70.129.040;     (b) A posting of names, addresses, and telephone numbers of the state survey and certification agency, the state licensure office, the state ombudsmen program, and the protection and advocacy systems; and      (c) A statement that the resident may file a complaint with the appropriate state licensing agency concerning resident abuse, neglect, and misappropriation of resident property in the facility.             (5) Notification of changes.    (a) A facility must immediately consult with the resident's physician, and if known, make reasonable efforts to notify the resident's legal representative or an interested family member when there is:     (i) An accident involving the resident which requires or has the potential for requiring physician intervention;      (ii) A significant change in the resident's physical, mental, or psychosocial status (i.e., a deterioration in health, mental, or psychosocial status in either life-threatening conditions or clinical complications).          (b) The facility must promptly notify the resident or the resident's representative shall make reasonable efforts to notify an interested family member, if known, when there is:           (i) A change in room or roommate assignment; or              (ii) A decision to transfer or discharge the resident from the facility.                    (c) The facility must record and update the address and phone number of the resident's representative or interested family member, upon receipt of notice from them.      (6) This section applies to long-term care facilities covered under this chapter.                    Sec. 205. RCW 70.129.110 and 1994 c 214 s 12 are each amended to read as follows:       (1) The facility must permit each resident to remain in the facility, and not transfer or discharge the resident from the facility unless:             (a) The transfer or discharge is necessary for the resident's welfare and the resident's needs cannot be met in the facility;    (b) The safety of individuals in the facility is endangered;     (c) The health of individuals in the facility would otherwise be endangered;   (d) The resident has failed to make the required payment for his or her stay; or               (e) The facility ceases to operate.      (2) All long-term care facilities shall fully disclose to potential residents or their legal representative the service capabilities of the facility prior to admission to the facility. If the care needs of the applicant who is medicaid eligible are in excess of the facility's service capabilities, the department shall identify other care settings or residential care options consistent with federal law.                    (3) Before a long-term care facility transfers or discharges a resident, the facility must:         (a) First attempt through reasonable accommodations to avoid the transfer or discharge, unless agreed to by the resident;              (b) Notify the resident and representative and make a reasonable effort to notify, if known, an interested family member of the transfer or discharge and the reasons for the move in writing and in a language and manner they understand;        (((b))) (c) Record the reasons in the resident's record; and                (((c))) (d) Include in the notice the items described in subsection (((4))) (5) of this section.             (((3))) (4)(a) Except when specified in this subsection, the notice of transfer ((of [or])) or discharge required under subsection (((2))) (3) of this section must be made by the facility at least thirty days before the resident is transferred or discharged.             (b) Notice may be made as soon as practicable before transfer or discharge when:               (i) The safety of individuals in the facility would be endangered;          (ii) The health of individuals in the facility would be endangered;        (iii) An immediate transfer or discharge is required by the resident's urgent medical needs; or                 (iv) A resident has not resided in the facility for thirty days.      (((4))) (5) The written notice specified in subsection (((2))) (3) of this section must include the following:         (a) The reason for transfer or discharge;      (b) The effective date of transfer or discharge;                  (c) The location to which the resident is transferred or discharged;      (d) The name, address, and telephone number of the state long-term care ombudsman;       (e) For residents with developmental disabilities, the mailing address and telephone number of the agency responsible for the protection and advocacy of developmentally disabled individuals established under part C of the developmental disabilities assistance and bill of rights act; and                  (f) For residents who are mentally ill, the mailing address and telephone number of the agency responsible for the protection and advocacy of mentally ill individuals established under the protection and advocacy for mentally ill individuals act.              (((5))) (6) A facility must provide sufficient preparation and orientation to residents to ensure safe and orderly transfer or discharge from the facility.           (((6))) (7) A resident discharged in violation of this section has the right to be readmitted immediately upon the first availability of a gender-appropriate bed in the facility.      Sec. 206. RCW 70.129.150 and 1994 c 214 s 16 are each amended to read as follows:       (1) Prior to admission, all long-term care facilities or nursing facilities licensed under chapter 18.51 RCW that require payment of an admissions fee, deposit, or a minimum stay fee, by or on behalf of a person seeking ((admissions [admission])) admission to the long-term care facility or nursing facility, shall provide the resident, or his or her representative, full disclosure in writing ((of the long-term care facility or nursing facility's schedule of charges for items and services provided by the facility and)) in a language the resident or his or her representative understands, a statement of the amount of any admissions fees, deposits, prepaid charges, or minimum stay fees. The facility shall also disclose to the person, or his or her representative, the facility's advance notice or transfer requirements, prior to admission. In addition, the long-term care facility or nursing facility shall also fully disclose in writing prior to admission what portion of the deposits, admissions fees, prepaid charges, or minimum stay fees will be refunded to the resident or his or her representative if the resident leaves the long-term care facility or nursing facility. Receipt of the disclosures required under this subsection must be acknowledged in writing. If the facility does not provide these disclosures, the deposits, admissions fees, prepaid charges, or minimum stay fees may not be kept by the facility. If a resident((, during the first thirty days of residence,)) dies or is hospitalized or is transferred to another facility for more appropriate care and does not return to the original facility, the facility shall refund any deposit or charges already paid less the facility's per diem rate for the days the resident actually resided or reserved or retained a bed in the facility notwithstanding any minimum stay policy or discharge notice requirements, except that the facility may retain an additional amount to cover its reasonable, actual expenses incurred as a result of a private-pay resident's move, not to exceed five days' per diem charges, unless the resident has given advance notice in compliance with the admission agreement. All long-term care facilities or nursing facilities covered under this section are required to refund any and all refunds due the resident or ((their)) his or her representative within thirty days from the resident's date of discharge from the facility. Nothing in this section applies to provisions in contracts negotiated between a nursing facility or long-term care facility and a certified health plan, health or disability insurer, health maintenance organization, managed care organization, or similar entities.                  (2) Where a long-term care facility or nursing facility requires the execution of an admission contract by or on behalf of an individual seeking admission to the facility, the terms of the contract shall be consistent with the requirements of this section, and the terms of an admission contract by a long-term care facility shall be consistent with the requirements of this chapter.          Sec. 207. RCW 74.39A.030 and 1995 1st sp.s. c 18 s 2 are each amended to read as follows:              (1) To the extent of available funding, the department shall expand cost-effective options for home and community services for consumers for whom the state participates in the cost of their care.       (2) In expanding home and community services, the department shall: (a) Take full advantage of federal funding available under Title XVIII and Title XIX of the federal social security act, including home health, adult day care, waiver options, and state plan services; and (b) be authorized to use funds available under its community options program entry system waiver granted under section 1915(c) of the federal social security act to expand the availability of in-home, adult residential care, adult family homes, enhanced adult residential care, and assisted living services. By June 30, 1997, the department shall undertake to reduce the nursing home medicaid census by at least one thousand six hundred by assisting individuals who would otherwise require nursing facility services to obtain services of their choice, including assisted living services, enhanced adult residential care, and other home and community services. The department shall make reasonable efforts to contract for at least one hundred eighty state clients who would otherwise be served in nursing facilities or in assisted living to instead be served in enhanced adult residential care settings by June 30, 1999. If a resident, or his or her legal representative, objects to a discharge decision initiated by the department, the resident shall not be discharged if the resident has been assessed and determined to require nursing facility services. In contracting with nursing homes and boarding homes for enhanced adult residential care placements, neither the department nor the department of health shall ((not)) require, by contract or through other means, structural modifications to existing building construction.                  (3)(a) The department shall by rule establish payment rates for home and community services that support the provision of cost-effective care. In contracting with licensed boarding homes for providing additional enhanced adult residential care services for up to one hundred eighty clients pursuant to subsection (2)(b) of this section, the payment rate shall be established at no less than thirty-five and no greater than forty percent of the average state-wide nursing facility medicaid payment rate.               (b) The department may authorize an enhanced adult residential care rate for nursing homes that temporarily or permanently convert their bed use for the purpose of providing enhanced adult residential care under chapter 70.38 RCW, when the department determines that payment of an enhanced rate is cost-effective and necessary to foster expansion of contracted enhanced adult residential care services. As an incentive for nursing homes to permanently convert a portion of its nursing home bed capacity for the purpose of providing enhanced adult residential care, the department may authorize a supplemental add-on to the enhanced adult residential care rate.             (c) The department may authorize a supplemental assisted living services or an enhanced adult residential care services rate for up to four years for facilities that convert from nursing home use and do not retain rights to the converted nursing home beds under chapter 70.38 RCW, if the department determines that payment of a supplemental rate is cost-effective and necessary to foster expansion of contracted assisted living or enhanced adult residential care services.                     Sec. 208. RCW 74.39A.040 and 1995 1st sp.s. c 18 s 6 are each amended to read as follows:                 The department shall work in partnership with hospitals, who choose to participate, in assisting patients and their families to find long-term care services of their choice according to subsections (1) through (4) of this section. The department shall not delay hospital discharges but shall assist and support the activities of hospital discharge planners. The department also shall coordinate with home health and hospice agencies whenever appropriate. The role of the department is to assist the hospital and to assist patients and their families in making informed choices by providing information regarding home and community options to individuals who are hospitalized and likely to need long-term care.            (1) To the extent of available funds, the department shall assess individuals who:                 (a) Are medicaid clients, medicaid applicants, or eligible for both medicare and medicaid; and      (b) Apply or are likely to apply for admission to a nursing facility.       (2) For individuals who are reasonably expected to become medicaid recipients within one hundred eighty days of admission to a nursing facility, the department shall, to the extent of available funds, offer an assessment and information regarding appropriate in-home and community services.                (3) When the department finds, based on assessment, that the individual prefers and could live appropriately and cost-effectively at home or in some other community-based setting, the department shall:     (a) Advise the individual that an in-home or other community service is appropriate;          (b) Develop, with the individual or the individual's representative, a comprehensive community service plan;             (c) Inform the individual regarding the availability of services that could meet the applicant's needs as set forth in the community service plan and explain the cost to the applicant of the available in-home and community services relative to nursing facility care; and               (d) Discuss and evaluate the need for on-going involvement with the individual or the individual's representative.              (4) When the department finds, based on assessment, that the individual prefers and needs nursing facility care, the department shall:      (a) Advise the individual that nursing facility care is appropriate and inform the individual of the available nursing facility vacancies;          (b) If appropriate, advise the individual that the stay in the nursing facility may be short term; and     (c) Describe the role of the department in providing nursing facility case management.       (5) All hospitals who choose to not participate with the department according to subsections (1) through (4) of this section shall provide their own hospital long-term care discharge services for patients needing long-term care information or services. The hospital shall advise the individual regarding its recommended discharge placement for individuals requiring posthospital care and shall, consistent with the individual's expressed preferences and in accordance with his or her care needs, identify services, including known costs, available in the community and shall develop with the individual and his or her legal representative a comprehensive community service plan, if in-home or other community service is appropriate and preferred.          Sec. 209. RCW 74.39A.050 and 1995 1st sp.s. c 18 s 12 are each amended to read as follows:              The department's system of quality improvement for long-term care services shall ((be guided by)) use the following principles, consistent with applicable federal laws and regulations:             (1) The system shall be ((consumer)) client-centered and promote privacy, independence, dignity, choice, and a home or home-like environment for consumers consistent with chapter . . ., Laws of 1997 (this act).                    (2) The goal of the system is continuous quality improvement with the focus on consumer satisfaction and outcomes for consumers. This includes that when conducting licensing inspections, the department shall interview an appropriate percentage of residents, family members, resident managers, and advocates in addition to interviewing providers and staff.           (3) Providers should be supported in their efforts to improve quality and address identified problems initially through training, consultation, technical assistance, and case management.      (4) The emphasis should be on problem prevention both in monitoring and in screening potential providers of service.      (5) Monitoring should be outcome based and responsive to consumer complaints and a clear set of health, quality of care, and safety standards that are easily understandable and have been made available to providers.                  (6) ((Providers generally should be assisted in addressing identified problems initially through consultation and technical assistance.)) Prompt and specific enforcement remedies shall also be ((available)) implemented without delay, pursuant to RCW 74.39A.080, RCW 70.128.160, chapter 18.51 RCW, or chapter 74.42 RCW, for providers found to have delivered care or failed to deliver care resulting in problems that are serious, recurring, or ((that have been)) uncorrected, or that create a hazard that is causing or likely to cause death or serious harm to one or more residents. These enforcement remedies may also include, when appropriate, reasonable conditions on a contract or license. In the selection of remedies, the safety, health, and well-being of residents shall be of paramount importance.             (7) To the extent funding is available, all long-term care staff directly responsible for the care, supervision, or treatment of vulnerable persons should be screened through background checks in a uniform and timely manner to ensure that they do not have a criminal history that would disqualify them from working with vulnerable persons. Whenever a state conviction record check is required by state law, persons may be employed or engaged as volunteers or independent contractors on a conditional basis according to law and rules adopted by the department.                      (8) No provider or staff, or prospective provider or staff, with a stipulated finding of fact, conclusion of law, an agreed order, or finding of fact, conclusion of law, or final order issued by a disciplining authority, a court of law, or entered into a state registry finding him or her guilty of abuse, neglect, exploitation, or abandonment of a minor or a vulnerable adult as defined in chapter 74.34 RCW shall be employed in the care of and have unsupervised access to vulnerable adults.     (9) Under existing funds the department shall establish internally a quality improvement standards committee to monitor the development of standards and to suggest modifications.                     (10) Within existing funds, the department shall design, develop, and implement a long-term care training program that is flexible, relevant, and qualifies towards the requirements for a nursing assistant certificate as established under chapter 18.88A RCW. This subsection does not require completion of the nursing assistant certificate training program by providers or their staff. The long-term care teaching curriculum must consist of a fundamental module, or modules, and a range of other available relevant training modules that provide the caregiver with appropriate options that assist in meeting the resident's care needs. Some of the training modules may include, but are not limited to, specific training on the special care needs of persons with developmental disabilities, dementia, mental illness, and the care needs of the elderly. No less than one training module must be dedicated to workplace violence prevention. The nursing care quality assurance commission shall work together with the department to develop the curriculum modules and accept some or all of the curriculum modules hour for hour towards meeting the requirements for a nursing assistant certificate as defined in chapter 18.88A RCW. The department may review whether facilities can develop their own related long-term care training programs. The department may develop a review process for determining what previous experience and training may be used to waive some or all of the mandatory training.          Sec. 210. RCW 74.39A.060 and 1995 1st sp.s. c 18 s 13 are each amended to read as follows:          (1) The aging and adult services administration of the department shall establish and maintain a toll-free telephone number for receiving complaints regarding a facility that the administration licenses or with which it contracts for long-term care services.             (2) All facilities that are licensed by, or that contract with the aging and adult services administration to provide chronic long-term care services shall post in a place and manner clearly visible to residents and visitors the department's toll-free complaint telephone number and the toll-free number and program description of the long-term care ombudsman as provided by RCW 43.190.050.      (3) The aging and adult services administration shall investigate complaints if the subject of the complaint is within its authority unless the department determines that: (a) The complaint is intended to willfully harass a licensee or employee of the licensee; or (b) there is no reasonable basis for investigation; or (c) corrective action has been taken as determined by the ombudsman or the department.      (4) The aging and adult services administration shall refer complaints to appropriate state agencies, law enforcement agencies, the attorney general, the long-term care ombudsman, or other entities if the department lacks authority to investigate or if its investigation reveals that a follow-up referral to one or more of these entities is appropriate.          (5) The department shall adopt rules that include the following complaint investigation protocols:                (a) Upon receipt of a complaint, the department shall make a preliminary review of the complaint, assess the severity of the complaint, and assign an appropriate response time. Complaints involving imminent danger to the health, safety, or well-being of a resident must be responded to within two days. When appropriate, the department shall make an on-site investigation within a reasonable time after receipt of the complaint or otherwise ensure that complaints are responded to.      (b) The complainant must be: Promptly contacted by the department, unless anonymous or unavailable despite several attempts by the department, and informed of the right to discuss the alleged violations with the inspector and to provide other information the complainant believes will assist the inspector; informed of the department's course of action; and informed of the right to receive a written copy of the investigation report.      (c) In conducting the investigation, the department shall interview the complainant, unless anonymous, and shall use its best efforts to interview the resident or residents allegedly harmed by the violations, and, in addition to facility staff, any available independent sources of relevant information, including if appropriate the family members of the resident.                (d) Substantiated complaints involving harm to a resident, if an applicable law or regulation has been violated, shall be subject to one or more of the actions provided in RCW 74.39A.080 or 70.128.160. Whenever appropriate, the department shall also give consultation and technical assistance to the provider.            (e) In the best practices of total quality management and continuous quality improvement, after a department finding of a violation that is serious, recurring, or uncorrected following a previous citation, the department shall make an on-site revisit of the facility to ensure correction of the violation, except for license or contract suspensions or revocations.                 (f) Substantiated complaints of neglect, abuse, exploitation, or abandonment of residents, or suspected criminal violations, shall also be referred by the department to the appropriate law enforcement agencies, the attorney general, and appropriate professional disciplining authority.         (6) The department may ((not)) provide the substance of the complaint to the licensee or contractor before the completion of the investigation by the department unless such disclosure would reveal the identity of a complainant, witness, or resident who chooses to remain anonymous. Neither the substance of the complaint provided to the licensee or contractor nor any copy of the complaint or related report published, released, or made otherwise available shall disclose, or reasonably lead to the disclosure of, the name, title, or identity of any complainant, or other person mentioned in the complaint, except that the name of the provider and the name or names of any officer, employee, or agent of the department conducting the investigation shall be disclosed after the investigation has been closed and the complaint has been substantiated. The department may disclose the identity of the complainant if such disclosure is requested in writing by the complainant. Nothing in this subsection shall be construed to interfere with the obligation of the long-term care ombudsman program or department staff to monitor the department's licensing, contract, and complaint investigation files for long-term care facilities.                 (((6))) (7) The resident has the right to be free of interference, coercion, discrimination, and reprisal from a facility in exercising his or her rights, including the right to voice grievances about treatment furnished or not furnished. A facility that provides long-term care services shall not discriminate or retaliate in any manner against a resident, employee, or any other person on the basis or for the reason that such resident or any other person made a complaint to the department, the attorney general, law enforcement agencies, or the long-term care ombudsman, provided information, or otherwise cooperated with the investigation of such a complaint. Any attempt to discharge a resident against the resident's wishes, or any type of retaliatory treatment of a resident by whom or upon whose behalf a complaint substantiated by the department has been made to the department, the attorney general, law enforcement agencies, or the long-term care ombudsman, within one year of the filing of the complaint, raises a rebuttable presumption that such action was in retaliation for the filing of the complaint. "Retaliatory treatment" means, but is not limited to, monitoring a resident's phone, mail, or visits; involuntary seclusion or isolation; transferring a resident to a different room unless requested or based upon legitimate management reasons; withholding or threatening to withhold food or treatment unless authorized by a terminally ill resident or his or her representative pursuant to law; or persistently delaying responses to a resident's request for service or assistance. A facility that provides long-term care services shall not willfully interfere with the performance of official duties by a long-term care ombudsman. The department shall sanction and may impose a civil penalty of not more than three thousand dollars for a violation of this subsection ((and require the facility to mitigate any damages incurred by the resident)).          Sec. 211. RCW 70.129.105 and 1994 c 214 s 17 are each amended to read as follows:           No long-term care facility or nursing facility licensed under chapter 18.51 RCW shall require or request residents to sign waivers of potential liability for losses of personal property or injury, or to sign waivers of residents' rights set forth in this chapter or in the applicable licensing or certification laws.        Sec. 212. RCW 74.42.030 and 1979 ex.s. c 211 s 3 are each amended to read as follows:      Each resident or guardian or legal representative, if any, shall be fully informed and receive in writing, in a language the resident or his or her representative understands, the following information:                     (1) The resident's rights and responsibilities in the facility;       (2) Rules governing resident conduct;    (3) Services, items, and activities available in the facility; and      (4) Charges for services, items, and activities, including those not included in the facility's basic daily rate or not paid by medicaid.      The facility shall provide this information before admission, or at the time of admission in case of emergency, and as changes occur during the resident's stay. The resident and his or her representative must be informed in writing in advance of changes in the availability or charges for services, items, or activities, or of changes in the facility's rules. Except in unusual circumstances, thirty days' advance notice must be given prior to the change. The resident or legal guardian or representative shall acknowledge in writing receipt of this information ((and any changes in the information)).        The written information provided by the facility pursuant to this section, and the terms of any admission contract executed between the facility and an individual seeking admission to the facility, must be consistent with the requirements of this chapter and chapter 18.51 RCW and, for facilities certified under medicaid or medicare, with the applicable federal requirements.     NEW SECTION. Sec. 213. A new section is added to chapter 18.20 RCW to read as follows:                     The department's system of quality improvement for long-term care services shall use the following principles, consistent with applicable federal laws and regulations:        (1) The system shall be resident-centered and promote privacy, independence, dignity, choice, and a home or home-like environment for residents consistent with chapter 70.129 RCW.                 (2) The goal of the system is continuous quality improvement with the focus on resident satisfaction and outcomes for residents. This includes that when conducting licensing inspections, the department shall interview an appropriate percentage of residents, family members, and advocates in addition to interviewing appropriate staff.      (3) Facilities should be supported in their efforts to improve quality and address identified problems initially through training, consultation, and technical assistance.          (4) The emphasis should be on problem prevention both in monitoring and in screening potential providers of service.      (5) Monitoring should be outcome based and responsive to resident complaints and a clear set of health, quality of care, and safety standards that are easily understandable and have been made available to facilities.         (6) Prompt and specific enforcement remedies shall also be implemented without delay, consistent with RCW 18.20.190, for facilities found to have delivered care or failed to deliver care resulting in problems that are serious, recurring, or uncorrected, or that create a hazard that is causing or likely to cause death or serious harm to one or more residents. These enforcement remedies may also include, when appropriate, reasonable conditions on a license. In the selection of remedies, the safety, health, and well-being of residents shall be of paramount importance.           (7) To the extent funding is available, the licensee, administrator, and their staff should be screened through background checks in a uniform and timely manner to ensure that they do not have a criminal history that would disqualify them from working with vulnerable adults. Employees may be provisionally hired pending the results of the background check if they have been given three positive references.              (8) The department shall promote the development of a training system that is practical and relevant to the needs of residents and staff. To improve access to training, especially for rural communities, the training system may include, but is not limited to, the use of satellite technology distance learning that is coordinated through community colleges or other appropriate organizations.                     (9) No licensee, administrator, or staff, or prospective licensee, administrator, or staff, with a stipulated finding of fact, conclusion of law, and agreed order, or finding of fact, conclusion of law, or final order issued by a disciplining authority, a court of law, or entered into the state registry finding him or her guilty of abuse, neglect, exploitation, or abandonment of a minor or a vulnerable adult as defined in chapter 74.34 RCW shall be employed in the care of and have unsupervised access to vulnerable adults.          NEW SECTION. Sec. 214. A new section is added to chapter 18.20 RCW to read as follows:         (1) The department shall establish and maintain a toll-free telephone number for receiving complaints regarding a facility that the department licenses.             (2) All facilities that are licensed under this chapter shall post in a place and manner clearly visible to residents and visitors the department's toll-free complaint telephone number and the toll-free number and program description of the long-term care ombudsman as provided by RCW 43.190.050.             (3) The department shall investigate complaints if the subject of the complaint is within its authority unless the department determines that: (a) The complaint is intended to willfully harass a licensee or employee of the licensee; or (b) there is no reasonable basis for investigation; or (c) corrective action has been taken as determined by the ombudsman or the department.         (4) The department shall refer complaints to appropriate state agencies, law enforcement agencies, the attorney general, the long-term care ombudsman, or other entities if the department lacks authority to investigate or if its investigation reveals that a follow-up referral to one or more of these entities is appropriate.              (5) The department shall adopt rules that include the following complaint investigation protocols:                (a) Upon receipt of a complaint, the department shall make a preliminary review of the complaint, assess the severity of the complaint, and assign an appropriate response time. Complaints involving imminent danger to the health, safety, or well-being of a resident must be responded to within two days. When appropriate, the department shall make an on-site investigation within a reasonable time after receipt of the complaint or otherwise ensure that complaints are responded to.           (b) The complainant must be: Promptly contacted by the department, unless anonymous or unavailable despite several attempts by the department, and informed of the right to discuss alleged violations with the inspector and to provide other information the complainant believes will assist the inspector; informed of the department's course of action; and informed of the right to receive a written copy of the investigation report.      (c) In conducting the investigation, the department shall interview the complainant, unless anonymous, and shall use its best efforts to interview the resident or residents allegedly harmed by the violations, and, in addition to facility staff, any available independent sources of relevant information, including if appropriate the family members of the resident.                 (d) Substantiated complaints involving harm to a resident, if an applicable law or regulation has been violated, shall be subject to one or more of the actions provided in RCW 18.20.190. Whenever appropriate, the department shall also give consultation and technical assistance to the facility.               (e) In the best practices of total quality management and continuous quality improvement, after a department finding of a violation that is serious, recurring, or uncorrected following a previous citation, the department shall make an on-site revisit of the facility to ensure correction of the violation. This subsection does not prevent the department from enforcing license suspensions or revocations.        (f) Substantiated complaints of neglect, abuse, exploitation, or abandonment of residents, or suspected criminal violations, shall also be referred by the department to the appropriate law enforcement agencies, the attorney general, and appropriate professional disciplining authority.         (6) The department may provide the substance of the complaint to the licensee before the completion of the investigation by the department unless such disclosure would reveal the identity of a complainant, witness, or resident who chooses to remain anonymous. Neither the substance of the complaint provided to the licensee or contractor nor any copy of the complaint or related report published, released, or made otherwise available shall disclose, or reasonably lead to the disclosure of, the name, title, or identity of any complainant, or other person mentioned in the complaint, except that the name of the provider and the name or names of any officer, employee, or agent of the department conducting the investigation shall be disclosed after the investigation has been closed and the complaint has been substantiated. The department may disclose the identity of the complainant if such disclosure is requested in writing by the complainant. Nothing in this subsection shall be construed to interfere with the obligation of the long-term care ombudsman program to monitor the department's licensing, contract, and complaint investigation files for long-term care facilities.          (7) The resident has the right to be free of interference, coercion, discrimination, and reprisal from a facility in exercising his or her rights, including the right to voice grievances about treatment furnished or not furnished. A facility licensed under this chapter shall not discriminate or retaliate in any manner against a resident, employee, or any other person on the basis or for the reason that such resident or any other person made a complaint to the department, the attorney general, law enforcement agencies, or the long-term care ombudsman, provided information, or otherwise cooperated with the investigation of such a complaint. Any attempt to discharge a resident against the resident's wishes, or any type of retaliatory treatment of a resident by whom or upon whose behalf a complaint substantiated by the department has been made to the department, the attorney general, law enforcement agencies, or the long-term care ombudsman, within one year of the filing of the complaint, raises a rebuttable presumption that such action was in retaliation for the filing of the complaint. "Retaliatory treatment" means, but is not limited to, monitoring a resident's phone, mail, or visits; involuntary seclusion or isolation; transferring a resident to a different room unless requested or based upon legitimate management reasons; withholding or threatening to withhold food or treatment unless authorized by a terminally ill resident or his or her representative pursuant to law; or persistently delaying responses to a resident's request for service or assistance. A facility licensed under this chapter shall not willfully interfere with the performance of official duties by a long-term care ombudsman. The department shall sanction and may impose a civil penalty of not more than three thousand dollars for a violation of this subsection.      NEW SECTION. Sec. 215. Within existing funds, the long-term care ombudsman shall conduct a follow-up review of the department of health's licensing inspections and complaint investigations of boarding homes and of the department of social and health services' monitoring of boarding homes with contracts under chapter 74.39A RCW. The review must include, but is not limited to, an examination of the enforcement of resident rights and care standards in boarding homes, the timeliness of complaint investigations, and compliance by the departments with the standards set forth in this act. The long-term care ombudsman shall consult with the departments of health and social and health services, long-term care facility organizations, resident groups, and senior and disabled citizen organizations and report to appropriate committees of the house of representatives and the senate concerning its review of the departments' enforcement activities and any applicable recommendations by January 5, 1998.      Sec. 216. RCW 74.42.450 and 1995 1st sp.s. c 18 s 64 are each amended to read as follows:             (1) The facility shall admit as residents only those individuals whose needs can be met by:      (a) The facility;       (b) The facility cooperating with community resources; or      (c) The facility cooperating with other providers of care affiliated or under contract with the facility.                 (2) The facility shall transfer a resident to a hospital or other appropriate facility when a change occurs in the resident's physical or mental condition that requires care or service that the facility cannot provide. The resident, the resident's guardian, if any, the resident's next of kin, the attending physician, and the department shall be consulted at least fifteen days before a transfer or discharge unless the resident is transferred under emergency circumstances. The department shall use casework services or other means to insure that adequate arrangements are made to meet the resident's needs.            (3) A resident shall be transferred or discharged only for medical reasons, the resident's welfare or request, the welfare of other residents, or nonpayment. A resident may not be discharged for nonpayment if the discharge would be prohibited by the medicaid program.        (4) If a resident chooses to remain in the nursing facility, the department shall respect that choice, provided that if the resident is a medicaid recipient, the resident continues to require a nursing facility level of care.         (5) If the department determines that a resident no longer requires a nursing facility level of care, the resident shall not be discharged from the nursing facility until at least thirty days after written notice is given to the resident, the resident's surrogate decision maker and, if appropriate, a family member or the resident's representative. A form for requesting a hearing to appeal the discharge decision shall be attached to the written notice. The written notice shall include at least the following:              (a) The reason for the discharge;            (b) A statement that the resident has the right to appeal the discharge; and         (c) The name, address, and telephone number of the state long-term care ombudsman.        (6) If the resident appeals a department discharge decision, the resident shall not be discharged without the resident's consent until at least thirty days after a final order is entered upholding the decision to discharge the resident.         (7) Before the facility transfers or discharges a resident, the facility must first attempt through reasonable accommodations to avoid the transfer or discharge unless the transfer or discharge is agreed to by the resident. The facility shall admit or retain only individuals whose needs it can safely and appropriately serve in the facility with available staff or through the provision of reasonable accommodations required by state or federal law. "Reasonable accommodations" has the meaning given to this term under the federal Americans with disabilities act of 1990, 42 U.S.C. Sec. 12101 et seq. and other applicable federal or state antidiscrimination laws and regulations.PART IIIESTATE RECOVERY CONSUMER DISCLOSURE           NEW SECTION. Sec. 301. A new section is added to chapter 43.20B RCW to read as follows:            (1) It is the intent of the legislature to ensure that needy individuals have access to basic long-term care without requiring them to sell their homes. In the face of rising medical costs and limited funding for social welfare programs, however, the state's medicaid and state-funded long-term care programs have placed an increasing financial burden on the state. By balancing the interests of individuals with immediate and future unmet medical care needs, surviving spouses and dependent children, adult nondependent children, more distant heirs, and the state, the estate recovery provisions of RCW 43.20B.080 and 74.39A.170 provide an equitable and reasonable method of easing the state's financial burden while ensuring the continued viability of the medicaid and state-funded long-term care programs.                   (2) It is further the intent of the legislature to confirm that chapter 21, Laws of 1994, effective July 1, 1994, repealed and substantially reenacted the state's medicaid estate recovery laws and did not eliminate the department's authority to recover the cost of medical assistance paid prior to October 1, 1993, from the estates of deceased recipients regardless of whether they received benefits before, on, or after July 1, 1994.                  Sec. 302. RCW 43.20B.080 and 1995 1st sp.s. c 18 s 67 are each amended to read as follows:          (1) The department shall file liens, seek adjustment, or otherwise effect recovery for medical assistance correctly paid on behalf of an individual ((as required by this chapter and)) consistent with 42 U.S.C. Sec. 1396p.                   (2) Liens may be adjusted by foreclosure in accordance with chapter 61.12 RCW.                 (3) In the case of an individual who was fifty-five years of age or older when the individual received medical assistance, the department shall seek adjustment or recovery from the individual's estate, and from nonprobate assets of the individual as defined by RCW 11.02.005 ((except property passing through a community property agreement)), but only for medical assistance consisting of nursing facility services, home and community-based services, other services that the department determines to be appropriate, and related hospital and prescription drug services. Recovery from the individual's estate, including foreclosure of liens imposed under this section, shall be undertaken as soon as practicable, consistent with ((the requirements of)) 42 U.S.C. Sec. 1396p.   (4) The department shall apply the medical assistance estate recovery law as it existed on the date that benefits were received when calculating an estate's liability to reimburse the department for those benefits.                    (5)(a) The department shall establish procedures consistent with standards established by the federal department of health and human services and pursuant to 42 U.S.C. Sec. 1396p to waive recovery when such recovery would work an undue hardship.           (b) Recovery of medical assistance from a recipient's estate shall not include property made exempt from claims by federal law or treaty, including exemption for tribal artifacts that may be held by individual Native Americans.       (((5))) (6) A lien authorized under subsections (1) through (5) of this section relates back to attach to any real property that the decedent had an ownership interest in immediately before death and is effective as of that date.              (7) The department is authorized to adopt rules to effect recovery under this section. The department may adopt by rule later enactments of the federal laws referenced in this section.             (8) The office of financial management shall review the cost and feasibility of the department of social and health services collecting the client copayment for long-term care consistent with the terms and conditions of RCW 74.39A.120, and the cost impact to community providers under the current system for collecting the client's copayment in addition to the amount charged to the client for estate recovery, and report to the legislature by December 12, 1997.                  Sec. 303. RCW 74.34.010 and 1995 1st sp.s. c 18 s 82 are each amended to read as follows:            The legislature finds that frail elders and vulnerable adults may be subjected to abuse, neglect, exploitation, or abandonment. The legislature finds that there are a number of adults sixty years of age or older who lack the ability to perform or obtain those services necessary to maintain or establish their well-being. The legislature finds that many frail elders and vulnerable adults have health problems that place them in a dependent position. The legislature further finds that a significant number of frail elders and vulnerable adults have mental and verbal limitations that leave them vulnerable and incapable of asking for help and protection.          It is the intent of the legislature to prevent or remedy the abuse, neglect, exploitation, or abandonment of persons sixty years of age or older who have a functional, mental, or physical inability to care for or protect themselves.        It is the intent of the legislature to assist frail elders and vulnerable adults by providing these persons with the protection of the courts and with the least-restrictive services, such as home care, and by preventing or reducing inappropriate institutional care. The legislature finds that it is in the interests of the public health, safety, and welfare of the people of the state to provide a procedure for identifying these vulnerable persons and providing the services and remedies necessary for their well-being.                  It is further the intent of the legislature that the cost of protective services rendered to a frail elder or vulnerable adult under this chapter that are paid with state funds only not be subject to recovery from the recipient or the recipient's estate, whether by lien, adjustment, or any other means of recovery, regardless of the income or assets of the recipient of the services. In making this exemption the legislature recognizes that receipt of such services is voluntary and incentives to decline services or delay permission must be kept to a minimum. There may be a need to act or intervene quickly to protect the assets, health, or well-being of a frail elder or vulnerable adult; to prevent or halt the exploitation, neglect, abandonment, or abuse of the person or assets of a frail elder or vulnerable adult; or to prevent or limit inappropriate placement or retention in an institution providing long-term care. The delivery of such services is less likely to be impeded, and consent to such services will be more readily obtained, if the cost of these services is not subject to recovery. The legislature recognizes that there will be a cost in not seeking financial recovery for such services, but that this cost may be offset by preventing costly and inappropriate institutional placement.            NEW SECTION. Sec. 304. A new section is added to chapter 74.34 RCW to read as follows:        The cost of benefits and services provided to a frail elder or vulnerable adult under this chapter with state funds only does not constitute an obligation or lien and is not recoverable from the recipient of the services or from the recipient's estate, whether by lien, adjustment, or any other means of recovery.           Sec. 305. RCW 74.39A.170 and 1995 1st sp.s. c 18 s 56 are each amended to read as follows:          (1) All payments made in state-funded long-term care shall be recoverable as if they were medical assistance payments subject to recovery under 42 U.S.C. Sec. 1396p and chapter 43.20B RCW((, but)) without regard to the recipient's age, except the cost of state-funded adult protective services provided under chapter 74.34 RCW to frail elders and vulnerable adults.      (2) In determining eligibility for state-funded long-term care services programs, except for protective services provided to frail elders and vulnerable adults, the department shall impose the same rules with respect to the transfer of assets for less than fair market value as are imposed under 42 U.S.C. 1396p with respect to nursing home and home and community services.           (3) It is the responsibility of the department to fully disclose in advance verbally and in writing, in easy to understand language, the terms and conditions of estate recovery. The disclosure must include billing and recovery and copayment procedures to all persons offered long-term care services subject to recovery of payments.   (4) It is the intent of the legislature that the department collect, to the extent possible, all costs associated with the individual provider program including, but not limited to, training, taxes, and fringe benefits.                   By November 15, 1997, the secretary shall identify and report to the legislature:    (a) The costs of identifying or tracking direct and indirect costs associated with the individual provider program, including any necessary changes to the department's information systems; and             (b) Any federal or state laws limiting the department's ability to recover direct or indirect costs of the individual provider program from the estate.           (5) To the extent funds are available and in compliance with federal law, the department is responsible for also notifying the client, or his or her advocate, quarterly of the types of services used, charges for services, credit amount of copayment, and the difference (debt) that will be charged against the estate.

                                                                                PART IVADULT FAMILY HOMES      Sec. 401. RCW 70.128.175 and 1995 1st sp.s. c 18 s 29 are each amended to read as follows:            (1) Unless the context clearly requires otherwise, these definitions shall apply throughout this section and RCW 35.63.140, 35A.63.149, 36.70.755, 35.22.680, and 36.32.560:              (a) "Adult family home" means a regular family abode ((of)) in which a person or persons ((providing)) provides personal care, special care, room, and board to more than one but not more than six adults who are not related by blood or marriage to the person or persons providing the services.      (b) "Residential care facility" means a facility that cares for at least five, but not more than fifteen functionally disabled persons, that is not licensed pursuant to chapter 70.128 RCW.         (c) "Department" means the department of social and health services.      (2) An adult family home shall be considered a residential use of property for zoning and public and private utility rate purposes. Adult family homes shall be a permitted use in all areas zoned for residential or commercial purposes, including areas zoned for single family dwellings.          NEW SECTION. Sec. 402. The department of social and health services shall implement a limited moratorium on the authorization of adult family home licenses until December 12, 1997, or until the secretary has determined that all adult family home and group home safety and quality of care standards have been reviewed by the department, determined by the secretary to reasonably protect the life, safety, and health of residents, and has notified all adult family home and group home operators of the standards of care or any modifications to the existing standards. This limited moratorium shall in no way prevent a person eligible to receive services from receiving the same or equivalent chronic long-term care services. In the event of a need for such services, the department shall develop a process for determining the availability of chronic long-term care residential services on a case-by-case basis to determine if an adult family home license should be granted to accommodate the needs of a particular geographical or ethnic community. The department may review the cost and feasibility of creating an adult family home advisory committee. The secretary shall make the final determination on individual case licensure until December 12, 1997, or until the moratorium has been removed and determine if an adult family home advisory committee should be developed.   NEW SECTION. Sec. 403. The department of social and health services is authorized to adopt rules, including emergency rules, for implementing the provisions of section 402 of this act.PART VMISCELLANEOUS PROVISIONSNEW SECTION. Sec. 501. The department of health in cooperation with the department of social and health services may develop a plan for implementing a pilot program for accrediting boarding homes licensed under RCW 18.20.020 with a recognized national nongovernmental accreditation organization or an organization with experience in developing and implementing accreditation programs in at least two states. The pilot plan, if funded, shall be developed with the input of residents, provider representatives, and other vested interest groups. If funded, the plan shall review the overall feasibility of implementation, cost or savings to the department of health, impact on client health and safety, and financial and other impacts to the boarding industry. If funded, the pilot boarding home accreditation plan shall be presented to the appropriate committees of the house of representatives and the senate by January 5, 1998.           NEW SECTION. Sec. 502. The department of community, trade, and economic development, in collaboration with the organizations designated by state or federal law to provide protection and advocacy and ombuds services for older Americans and people with disabilities using publicly funded long-term care residential services, may conduct a study, make recommendations, and draft legislation necessary to implement changes that will result in a single coordinating umbrella for ombuds and advocacy services that maximizes efficiency, minimizes duplication, and allows for specialization in target populations such as developmental disabilities, older Americans, and mental illness, and assures that the providers of ombuds services have sufficient expertise and experience with target populations and the systems that serve them. The study, if funded, shall include review of all relevant federal and state laws and regulations, including but not limited to the older Americans act, 42 U.S.C. 3001 as amended, the developmental disabilities assistance and bill of rights act as amended, 42 U.S.C. 6000, the protection and advocacy for persons with mental illness act as amended, 42 U.S.C. 10801, the rehabilitation act of 1973 as amended, 29 U.S.C. 701, the long-term care ombudsman statute chapter 43.190 RCW, developmental disabilities statute, Title 71A RCW, and the community mental health services regulations, chapter 275-57 WAC. If funded, the study shall identify the gaps in current ombuds and advocacy services, and develop a cost assessment for implementation of a comprehensive umbrella of ombuds and advocacy services. If funded, the department of community, trade, and economic development shall report to the appropriate committees of the house of representatives and the senate by January 10, 1998.                  NEW SECTION. Sec. 503. The department of social and health services may review the cost and feasibility of implementing developmental disabilities certification standards for community residential alternatives to ensure that services are adequate for the health, safety, care, treatment, and support of persons with developmental disabilities. The community residential alternatives shall include, but not be limited to, entities that contract or directly provide services with the division of developmental disabilities such as group homes, agency alternative living, intensive and other tenant support services, adult family homes, or boarding homes. Certification standards shall review at a minimum the following areas. Administrative and financial capabilities of the provider, health and safety practices, the opportunities for the individuals served by the programs to have power and choice in their lives, opportunities to develop friendships and relationships, and opportunities to develop self-respect and to gain respect from others, to participate in the community, and to gain independent living skills. If the review is funded, the department shall also recommend whether adult family homes that choose to provide services only to persons with developmental disabilities should receive special certification or licensure apart from or in place of the existing adult family home license. The review may also recommend the type and amount of provider training necessary to appropriately support persons with developmental disabilities in community residential alternatives. The department may include the assistance of other departments, vested interest groups, and family members in the development of recommendations. If funded, the department shall report to the appropriate committees of the house of representatives and the senate by January 30, 1998.            NEW SECTION. Sec. 504. Any section or provision of this act that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department of health or the department of social and health services. If any section of this act is found to be in conflict with federal requirements that are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is declared to be inoperative solely to the extent of the conflict. The rules issued under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state.   NEW SECTION. Sec. 505. A new section is added to chapter 43.70 RCW to read as follows:      The department of health, and the disciplining authorities as agents of the department of social and health services for purposes of this section in cooperation with the department of social and health services, shall implement a nursing home resident protection program in accordance with guidelines established by the federal health care financing administration. The department of social and health services shall retain authority to review and investigate all allegations of nursing home resident neglect, abuse, and misappropriation of resident property. If the department of social and health services makes a preliminary determination, based upon credible evidence and an investigation by the department, that a licensed, certified, or registered health care provider listed in RCW 18.130.040 and used by the nursing home to provide services to a resident, except for a certified or registered nursing assistant, has neglected or abused a resident or misappropriated a resident's property, the department of social and health services shall immediately refer its determination regarding the individual to the appropriate disciplining authority, as defined in chapter 18.130 RCW. The disciplining authority shall pursue administrative adjudicatory or disciplinary proceedings according to federal timelines and requirements, and consistent with the administrative procedure act, chapter 34.05 RCW. Meeting federal requirements for the resident protection program shall not compromise due process protections when state disciplining authorities take actions against health professionals regulated under the uniform disciplinary act, chapter 18.130 RCW. The secretary of social and health services shall have access to all information concerning any complaint referred under the resident protection program to the secretary of health and the other disciplining authorities. If the department of social and health services determines that the disciplining authority has failed to meet the applicable requirements of federal law for the resident protection program, jurisdiction on the individual case shall revert to the secretary of social and health services for actions under the federal law, which shall not interfere with the action under the uniform disciplinary act. The secretary of social and health services and the secretary of health shall enter into an interagency agreement to implement the provisions of this section. A finding of fact, stipulated finding of fact, agreed order, or final order issued by the disciplining authority that finds the individual health care provider guilty of neglect, abuse, or misappropriation of resident property shall be promptly reported to the department of social and health services.                     NEW SECTION. Sec. 506. A new section is added to chapter 18.51 RCW to read as follows:              The department of social and health services shall retain authority to review and investigate all allegations of nursing home resident neglect, abuse, and misappropriation of resident property. The department of social and health services in cooperation with the department of health and disciplining authorities shall implement a nursing home resident protection program according to guidelines established by the federal health care financing administration. The department of social and health services, as the federally responsible state agency, shall conduct or coordinate the conduct of the most appropriate and timely review and investigation of all credible allegations of nursing home resident neglect, abuse, and misappropriation of resident property. If the department of social and health services makes a preliminary determination, based upon credible evidence and an investigation by the department, that a licensed, certified, or registered health care provider listed in RCW 18.130.040 and used by the nursing home to provide services to a resident, except for a certified or registered nursing assistant, has neglected or abused a resident or misappropriated a resident's property, the department of social and health services shall immediately refer its determination regarding the individual to the department of health or disciplining authority, as defined in RCW 18.130.020. The disciplining authority shall pursue administrative adjudicatory or disciplinary proceedings according to federal timelines and requirements, and consistent with the administrative procedure act, chapter 34.05 RCW. When the department of social and health services determines such proceeding does not meet federal timelines and requirements, the department of social and health services shall have the authority to take federally required actions. Other individuals used by a nursing home, including certified and registered nursing assistants, with a preliminary determination of neglect, abuse, or misappropriation of resident property shall receive notice and the right to an administrative fair hearing from the department of social and health services according to federal timelines and requirements. An individual with a finding of fact, stipulated finding of fact, agreed order, or final order issued by the department of social and health services or the disciplining authority that finds the individual guilty of neglect, abuse, or misappropriation of resident property shall not be employed in the care of and have unsupervised access to vulnerable adults, as defined in chapter 74.34 RCW. Upon receipt from the disciplining authority of a finding of fact, stipulated finding of fact, agreed order, or final order that finds the individual health care provider guilty of neglect, abuse, or misappropriation of resident property, the department of social and health services shall report this information to the nursing home where the incident occurred, the long-term care facility where the individual works, if different, and other entities serving vulnerable adults upon request by the entity.                  NEW SECTION. Sec. 507. A new section is added to chapter 9A.42 RCW to read as follows:              The legislature finds that there is a significant need to protect children and dependent persons, including frail elder and vulnerable adults, from abuse and neglect by their parents, by persons entrusted with their physical custody, or by persons employed to provide them with the basic necessities of life. The legislature further finds that such abuse and neglect often takes the forms of either withholding from them the basic necessities of life, including food, water, shelter, clothing, and health care, or abandoning them, or both. Therefore, it is the intent of the legislature that criminal penalties be imposed on those guilty of such abuse or neglect. It is the intent of the legislature that a person who, in good faith, is furnished Christian Science treatment by a duly accredited Christian Science practitioner in lieu of medical care is not considered deprived of medically necessary health care or abandoned. Prosecutions under this chapter shall be consistent with the rules of evidence, including hearsay, under law.      Sec. 508. RCW 9A.42.010 and 1996 c 302 s 1 are each amended to read as follows:          As used in this chapter:          (1) "Basic necessities of life" means food, water, shelter, clothing, and medically necessary health care, including but not limited to health-related treatment or activities, hygiene, oxygen, and medication.            (2)(a) "Bodily injury" means physical pain or injury, illness, or an impairment of physical condition;   (b) "Substantial bodily harm" means bodily injury which involves a temporary but substantial disfigurement, or which causes a temporary but substantial loss or impairment of the function of any bodily part or organ, or which causes a fracture of any bodily part;        (c) "Great bodily harm" means bodily injury which creates a high probability of death, or which causes serious permanent disfigurement, or which causes a permanent or protracted loss or impairment of the function of any bodily part or organ.      (3) "Child" means a person under eighteen years of age.       (4) "Dependent person" means a person who, because of physical or mental disability, or because of extreme advanced age, is dependent upon another person to provide the basic necessities of life. A resident of a nursing home, as defined in RCW 18.51.010, a resident of an adult family home, as defined in RCW 70.128.010, and a frail elder or vulnerable adult, as defined in RCW 74.34.020(8), is presumed to be a dependent person for purposes of this chapter.            (5) "Employed" means hired by a dependent person, another person acting on behalf of a dependent person, or by an organization or governmental entity, to provide to a dependent person any of the basic necessities of life. A person may be "employed" regardless of whether the person is paid for the services or, if paid, regardless of who pays for the person's services.               (6) "Parent" has its ordinary meaning and also includes a guardian and the authorized agent of a parent or guardian.        (7) "Abandons" means leaving a child or other dependent person without the means or ability to obtain one or more of the basic necessities of life.         Sec. 509. RCW 9A.42.050 and 1986 c 250 s 5 are each amended to read as follows:         In any prosecution for criminal mistreatment, it shall be a defense that the withholding of the basic necessities of life is due to financial inability only if the person charged has made a reasonable effort to obtain adequate assistance. This defense is available to a person employed to provide the basic necessities of life only when the agreed-upon payment has not been made.      Sec. 510. RCW 9A.42.020 and 1986 c 250 s 2 are each amended to read as follows:          (1) A parent of a child ((or)), the person entrusted with the physical custody of a child or dependent person, or a person employed to provide to the child or dependent person the basic necessities of life is guilty of criminal mistreatment in the first degree if he or she recklessly, as defined in RCW 9A.08.010, causes great bodily harm to a child or dependent person by withholding any of the basic necessities of life.                  (2) Criminal mistreatment in the first degree is a class B felony.             Sec. 511. RCW 9A.42.030 and 1986 c 250 s 3 are each amended to read as follows:          (1) A parent of a child ((or)), the person entrusted with the physical custody of a child or dependent person, or a person employed to provide to the child or dependent person the basic necessities of life is guilty of criminal mistreatment in the second degree if he or she recklessly, as defined in RCW 9A.08.010, either (a) creates an imminent and substantial risk of death or great bodily harm, or (b) causes substantial bodily harm by withholding any of the basic necessities of life.       (2) Criminal mistreatment in the second degree is a class C felony.      NEW SECTION. Sec. 512. A new section is added to chapter 9A.42 RCW to read as follows:             RCW 9A.42.020 and 9A.42.030 do not apply when a terminally ill person or his or her designee requests palliative care and the person receives palliative care from a licensed home health agency, hospice agency, nursing home, or hospital who is providing care under the medical direction of a physician.              Sec. 513. RCW 9A.44.010 and 1994 c 271 s 302 are each amended to read as follows:       As used in this chapter:          (1) "Sexual intercourse" (a) has its ordinary meaning and occurs upon any penetration, however slight, and                     (b) Also means any penetration of the vagina or anus however slight, by an object, when committed on one person by another, whether such persons are of the same or opposite sex, except when such penetration is accomplished for medically recognized treatment or diagnostic purposes, and             (c) Also means any act of sexual contact between persons involving the sex organs of one person and the mouth or anus of another whether such persons are of the same or opposite sex.  (2) "Sexual contact" means any touching of the sexual or other intimate parts of a person done for the purpose of gratifying sexual desire of either party or a third party.                 (3) "Married" means one who is legally married to another, but does not include a person who is living separate and apart from his or her spouse and who has filed in an appropriate court for legal separation or for dissolution of his or her marriage.                (4) "Mental incapacity" is that condition existing at the time of the offense which prevents a person from understanding the nature or consequences of the act of sexual intercourse whether that condition is produced by illness, defect, the influence of a substance or from some other cause.                (5) "Physically helpless" means a person who is unconscious or for any other reason is physically unable to communicate unwillingness to an act.           (6) "Forcible compulsion" means physical force which overcomes resistance, or a threat, express or implied, that places a person in fear of death or physical injury to herself or himself or another person, or in fear that she or he or another person will be kidnapped.           (7) "Consent" means that at the time of the act of sexual intercourse or sexual contact there are actual words or conduct indicating freely given agreement to have sexual intercourse or sexual contact.      (8) "Significant relationship" means a situation in which the perpetrator is:          (a) A person who undertakes the responsibility, professionally or voluntarily, to provide education, health, welfare, or organized recreational activities principally for minors; ((or))      (b) A person who in the course of his or her employment supervises minors; or                   (c) A person who provides welfare, health or residential assistance, personal care, or organized recreational activities to frail elders or vulnerable adults, including a provider, employee, temporary employee, volunteer, or independent contractor who supplies services to long-term care facilities licensed or required to be licensed under chapter 18.20, 18.51, 72.36, or 70.128 RCW, and home health, hospice, or home care agencies licensed or required to be licensed under chapter 70.127 RCW, but not including a consensual sexual partner.                  (9) "Abuse of a supervisory position" means a direct or indirect threat or promise to use authority to the detriment or benefit of a minor.       (10) "Developmentally disabled," for purposes of RCW 9A.44.050(1)(c) and 9A.44.100(1)(c), means a person with a developmental disability as defined in RCW 71A.10.020.      (11) "Person with supervisory authority," for purposes of RCW 9A.44.050(1) (c) or (e) and 9A.44.100(1) (c) or (e), means any proprietor or employee of any public or private care or treatment facility who directly supervises developmentally disabled, mentally disordered, or chemically dependent persons at the facility.         (12) "Mentally disordered person" for the purposes of RCW 9A.44.050(1)(e) and 9A.44.100(1)(e) means a person with a "mental disorder" as defined in RCW 71.05.020(2).               (13) "Chemically dependent person" for purposes of RCW 9A.44.050(1)(e) and 9A.44.100(1)(e) means a person who is "chemically dependent" as defined in RCW 70.96A.020(4).   (14) "Health care provider" for purposes of RCW 9A.44.050 and 9A.44.100 means a person who is, holds himself or herself out to be, or provides services as if he or she were: (a) A member of a health care profession under chapter 18.130 RCW; or (b) registered or certified under chapter 18.19 RCW, regardless of whether the health care provider is licensed, certified, or registered by the state.      (15) "Treatment" for purposes of RCW 9A.44.050 and 9A.44.100 means the active delivery of professional services by a health care provider which the health care provider holds himself or herself out to be qualified to provide.                 (16) "Frail elder or vulnerable adult" means a person sixty years of age or older who has the functional, mental, or physical inability to care for himself or herself. "Frail elder or vulnerable adult" also includes a person found incapacitated under chapter 11.88 RCW, a person over eighteen years of age who has a developmental disability under chapter 71A.10 RCW, a person admitted to a long-term care facility that is licensed or required to be licensed under chapter 18.20, 18.51, 72.36, or 70.128 RCW, and a person receiving services from a home health, hospice, or home care agency licensed or required to be licensed under chapter 70.127 RCW.                  Sec. 514. RCW 9A.44.050 and 1993 c 477 s 2 are each amended to read as follows:         (1) A person is guilty of rape in the second degree when, under circumstances not constituting rape in the first degree, the person engages in sexual intercourse with another person:     (a) By forcible compulsion;    (b) When the victim is incapable of consent by reason of being physically helpless or mentally incapacitated;                     (c) When the victim is developmentally disabled and the perpetrator is a person who is not married to the victim and who has supervisory authority over the victim;                (d) When the perpetrator is a health care provider, the victim is a client or patient, and the sexual intercourse occurs during a treatment session, consultation, interview, or examination. It is an affirmative defense that the defendant must prove by a preponderance of the evidence that the client or patient consented to the sexual intercourse with the knowledge that the sexual intercourse was not for the purpose of treatment; ((or))      (e) When the victim is a resident of a facility for mentally disordered or chemically dependent persons and the perpetrator is a person who is not married to the victim and has supervisory authority over the victim; or                     (f) When the victim is a frail elder or vulnerable adult and the perpetrator is a person who is not married to the victim and who has a significant relationship with the victim.      (2) Rape in the second degree is a class A felony.                 Sec. 515. RCW 9A.44.100 and 1993 c 477 s 3 are each amended to read as follows:              (1) A person is guilty of indecent liberties when he knowingly causes another person who is not his spouse to have sexual contact with him or another:         (a) By forcible compulsion; ((or))          (b) When the other person is incapable of consent by reason of being mentally defective, mentally incapacitated, or physically helpless;              (c) When the victim is developmentally disabled and the perpetrator is a person who is not married to the victim and who has supervisory authority over the victim;                (d) When the perpetrator is a health care provider, the victim is a client or patient, and the sexual contact occurs during a treatment session, consultation, interview, or examination. It is an affirmative defense that the defendant must prove by a preponderance of the evidence that the client or patient consented to the sexual contact with the knowledge that the sexual contact was not for the purpose of treatment; ((or))           (e) When the victim is a resident of a facility for mentally disordered or chemically dependent persons and the perpetrator is a person who is not married to the victim and has supervisory authority over the victim; or              (f) When the victim is a frail elder or vulnerable adult and the perpetrator is a person who is not married to the victim and who has a significant relationship with the victim.              (2) Indecent liberties is a class B felony.      Sec. 516. 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. 517. RCW 18.130.200 and 1986 c 259 s 12 are each amended to read as follows:       A person who attempts to obtain ((or)), obtains, or attempts to maintain a license by willful misrepresentation or fraudulent representation is guilty of a gross misdemeanor.        Sec. 518. RCW 43.43.842 and 1992 c 104 s 1 are each amended to read as follows:          (1)(a) The secretary of social and health services and the secretary of health shall adopt additional requirements for the licensure or relicensure of agencies ((or)), facilities ((which)), and licensed individuals who provide care and treatment to vulnerable adults, including nursing pools registered under chapter 18.52C RCW. These additional requirements shall ensure that any person associated with a licensed agency or facility having ((direct contact)) unsupervised access with a vulnerable adult shall not have been: (((a))) (i) Convicted of a crime against persons as defined in RCW 43.43.830, except as provided in this section; (((b))) (ii) convicted of crimes relating to financial exploitation as defined in RCW 43.43.830, except as provided in this section; (((c))) (iii) found in any disciplinary board final decision to have abused a vulnerable adult under RCW 43.43.830; or (((d))) (iv) the subject in a protective proceeding under chapter 74.34 RCW.         (b) A person associated with a licensed agency or facility who has unsupervised access with a vulnerable adult shall make the disclosures specified in RCW 43.43.834(2). The person shall make the disclosures in writing, sign, and swear to the contents under penalty of perjury. The person shall, in the disclosures, specify all crimes against children or other persons, and all crimes relating to financial exploitation as defined in RCW 43.43.830, committed by the person.                  (2) The rules adopted under this section shall permit the licensee to consider the criminal history of an applicant for employment in a licensed facility when the applicant has one or more convictions for a past offense and:     (a) The offense was simple assault, assault in the fourth degree, or the same offense as it may be renamed, and three or more years have passed between the most recent conviction and the date of application for employment;      (b) The offense was prostitution, or the same offense as it may be renamed, and three or more years have passed between the most recent conviction and the date of application for employment;               (c) The offense was theft in the third degree, or the same offense as it may be renamed, and three or more years have passed between the most recent conviction and the date of application for employment;      (d) The offense was theft in the second degree, or the same offense as it may be renamed, and five or more years have passed between the most recent conviction and the date of application for employment;      (e) The offense was forgery, or the same offense as it may be renamed, and five or more years have passed between the most recent conviction and the date of application for employment.      The offenses set forth in (a) through (e) of this subsection do not automatically disqualify an applicant from employment by a licensee. Nothing in this section may be construed to require the employment of any person against a licensee's judgment.                    (3) In consultation with law enforcement personnel, the secretary of social and health services and the secretary of health shall investigate, or cause to be investigated, the conviction record and the protection proceeding record information under this chapter ((43.43 RCW of each agency or facility and its)) of the staff of each agency or facility under their respective jurisdictions seeking licensure or relicensure. An individual responding to a criminal background inquiry request from his or her employer or potential employer shall disclose the information about his or her criminal history under penalty of perjury. The secretaries shall use the information solely for the purpose of determining eligibility for licensure or relicensure. Criminal justice agencies shall provide the secretaries such information as they may have and that the secretaries may require for such purpose.       Sec. 519. RCW 70.124.020 and 1996 c 178 s 24 are each amended to read as follows:       Unless the context requires otherwise, the definitions in this section apply throughout this chapter.         (1) "Court" means the superior court of the state of Washington.       (2) "Law enforcement agency" means the police department, the director of public safety, or the office of the sheriff.      (3) "Practitioner of the healing arts" or "practitioner" means a person licensed by this state to practice podiatric medicine and surgery, optometry, pharmacy, physical therapy, chiropractic, nursing, dentistry, osteopathic medicine and surgery, or medicine and surgery. The term "practitioner" shall include a nurses aide, a nursing home administrator licensed under chapter 18.52 RCW, and a duly accredited Christian Science practitioner: PROVIDED, HOWEVER, That a nursing home patient who is being furnished Christian Science treatment by a duly accredited Christian Science practitioner shall not be considered, for that reason alone, a neglected patient for the purposes of this chapter.              (4) "Department" means the state department of social and health services.                     (5) "Nursing home" has the meaning prescribed by RCW 18.51.010.     (6) "Social worker" means anyone engaged in a professional capacity during the regular course of employment in encouraging or promoting the health, welfare, support, or education of nursing home patients, or providing social services to nursing home patients, whether in an individual capacity or as an employee or agent of any public or private organization or institution.      (7) "Psychologist" means any person licensed to practice psychology under chapter 18.83 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.          (8) "Pharmacist" means any registered pharmacist under chapter 18.64 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.      (9) "Abuse or neglect" or "patient abuse or neglect" means the nonaccidental physical injury or condition, sexual abuse, or negligent treatment of a nursing home or state hospital patient under circumstances which indicate that the patient's health, welfare, ((and)) or safety is harmed thereby.         (10) "Negligent treatment" means an act or omission which evinces a serious disregard of consequences of such magnitude as to constitute a clear and present danger to the patient's health, welfare, ((and)) or safety.                     (11) "State hospital" means any hospital operated and maintained by the state for the care of the mentally ill under chapter 72.23 RCW.            Sec. 520. RCW 70.124.040 and 1981 c 174 s 4 are each amended to read as follows:             (1) Where a report is ((deemed warranted)) required under RCW 70.124.030, an immediate oral report shall be made by telephone or otherwise to either a law enforcement agency or to the department and, upon request, shall be followed by a report in writing. The reports shall contain the following information, if known:                   (a) The name and address of the person making the report;   (b) The name and address of the nursing home or state hospital patient;               (c) The name and address of the patient's relatives having responsibility for the patient;      (d) The nature and extent of the injury or injuries;                 (e) The nature and extent of the neglect;     (f) The nature and extent of the sexual abuse;        (g) Any evidence of previous injuries, including their nature and extent; and         (h) Any other information which may be helpful in establishing the cause of the patient's death, injury, or injuries, and the identity of the perpetrator or perpetrators.    (2) Each law enforcement agency receiving such a report shall, in addition to taking the action required by RCW 70.124.050, immediately relay the report to the department, and to other law enforcement agencies, including the medicaid fraud control unit of the office of the attorney general, as appropriate. For any report it receives, the department shall likewise take the required action and in addition relay the report to the appropriate law enforcement agency or agencies. The appropriate law enforcement agency or agencies shall receive immediate notification when the department, upon receipt of such report, has reasonable cause to believe that a criminal act has been committed.        Sec. 521. RCW 70.124.070 and 1979 ex.s. c 228 s 7 are each amended to read as follows:      A person who is required to make or to cause to be made a report pursuant to RCW 70.124.030 or 70.124.040 and who knowingly fails to make such report or fails to cause such report to be made is guilty of a gross misdemeanor.                  NEW SECTION. Sec. 522. A new section is added to chapter 74.34 RCW to read as follows:          A person who is required to make or cause to be made a report under RCW 74.34.030 or 74.34.040 and who knowingly fails to make the report or fails to cause the report to be made is guilty of a gross misdemeanor.      Sec. 523. RCW 74.34.020 and 1995 1st sp.s. c 18 s 84 are each amended to read as follows:             Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.       (1) "Abandonment" means action or inaction by a person or entity with a duty of care for a frail elder or a vulnerable adult that leaves the vulnerable person without the means or ability to obtain necessary food, clothing, shelter, or health care.           (2) "Abuse" means a nonaccidental act of physical or mental mistreatment or injury, or sexual mistreatment, which harms a person through action or inaction by another individual.               (3) "Consent" means express written consent granted after the person has been fully informed of the nature of the services to be offered and that the receipt of services is voluntary.      (4) "Department" means the department of social and health services.                  (5) "Exploitation" means the illegal or improper use of a frail elder or vulnerable adult or that person's income or resources, including trust funds, for another person's profit or advantage.      (6) "Neglect" means a pattern of conduct or inaction by a person or entity with a duty of care for a frail elder or vulnerable adult that results in the deprivation of care necessary to maintain the vulnerable person's physical or mental health.                 (7) "Secretary" means the secretary of social and health services.         (8) "Frail elder or vulnerable adult" means a person sixty years of age or older who has the functional, mental, or physical inability to care for himself or herself. "Frail elder or vulnerable adult" shall include persons found incapacitated under chapter 11.88 RCW, or a person who has a developmental disability under chapter 71A.10 RCW, and persons admitted to any long-term care facility that is licensed or required to be licensed under chapter 18.20, 18.51, 72.36, or 70.128 RCW, or persons receiving services from home health, hospice, or home care agencies licensed or required to be licensed under chapter 70.127 RCW.      (9) No frail elder or vulnerable person who relies upon and is being provided spiritual treatment in lieu of medical treatment in accordance with the tenets and practices of a well-recognized religious denomination shall for that reason alone be considered abandoned, abused, or neglected.     Sec. 524. RCW 43.43.832 and 1995 c 250 s 2 are each amended to read as follows:           (1) The legislature finds that businesses and organizations providing services to children, developmentally disabled persons, and vulnerable adults need adequate information to determine which employees or licensees to hire or engage. The legislature further finds that many developmentally disabled individuals and vulnerable adults desire to hire their own employees directly and also need adequate information to determine which employees or licensees to hire or engage. Therefore, the Washington state patrol criminal identification system ((may)) shall disclose, upon the request of a business or organization as defined in RCW 43.43.830, a developmentally disabled person, or a vulnerable adult as defined in RCW 43.43.830 or his or her guardian, an applicant's record for convictions of offenses against children or other persons, convictions for crimes relating to financial exploitation, but only if the victim was a vulnerable adult, adjudications of child abuse in a civil action, the issuance of a protection order against the respondent under chapter 74.34 RCW, and disciplinary board final decisions and any subsequent criminal charges associated with the conduct that is the subject of the disciplinary board final decision. ((When necessary, applicants may be employed on a conditional basis pending completion of such a background investigation.))                  (2) The legislature also finds that the state board of education may request of the Washington state patrol criminal identification system information regarding a certificate applicant's record for convictions under subsection (1) of this section.        (3) The legislature also finds that law enforcement agencies, the office of the attorney general, prosecuting authorities, and the department of social and health services may request this same information to aid in the investigation and prosecution of child, developmentally disabled person, and vulnerable adult abuse cases and to protect children and adults from further incidents of abuse.                   (4) The legislature further finds that the department of social and health services((,))must consider the information listed in subsection (1) of this section in the following circumstances:                     (a) When considering persons for state positions directly responsible for the care, supervision, or treatment of children, developmentally disabled persons, or vulnerable adults ((or));              (b) When licensing ((or authorizing such persons or)) agencies ((pursuant to its authority)) or facilities with individuals in positions directly responsible for the care, supervision, or treatment of children, developmentally disabled persons, or vulnerable adults, including but not limited to agencies or facilities licensed under chapter 74.15((,)) or 18.51((, 18.20, or 72.23)) RCW((, or any later-enacted statute which purpose is to license or regulate a facility which handles vulnerable adults, must consider the information listed in subsection (1) of this section));                    (c) When contracting with individuals or businesses or organizations for the care, supervision, or treatment of children, developmentally disabled persons, or vulnerable adults, including but not limited to services contracted for under chapter 18.20, 18.48, 70.127, 70.128, 72.36, or 74.39A RCW or Title 71A RCW. ((However, when necessary))      (5) Whenever a state conviction record check is required by state law, persons may be employed or engaged as volunteers or independent contractors on a conditional basis pending completion of the state background investigation. Whenever a national criminal record check through the federal bureau of investigation is required by state law, a person may be employed or engaged as a volunteer or independent contractor on a conditional basis pending completion of the national check. The Washington personnel resources board shall adopt rules to accomplish the purposes of this subsection as it applies to state employees.           (6)(a) For purposes of facilitating timely access to criminal background information and to reasonably minimize the number of requests made under this section, recognizing that certain health care providers change employment frequently, health care facilities may, upon request from another health care facility, share copies of completed criminal background inquiry information.                   (b) Completed criminal background inquiry information may be shared by a willing health care facility only if the following conditions are satisfied: The licensed health care facility sharing the criminal background inquiry information is reasonably known to be the person's most recent employer, no more than twelve months has elapsed from the date the person was last employed at a licensed health care facility to the date of their current employment application, and the criminal background information is no more than two years old.               (c) If criminal background inquiry information is shared, the health care facility employing the subject of the inquiry must require the applicant to sign a disclosure statement indicating that there has been no conviction or finding as described in RCW 43.43.842 since the completion date of the most recent criminal background inquiry.      (d) Any health care facility that knows or has reason to believe that an applicant has or may have a disqualifying conviction or finding as described in RCW 43.43.842, subsequent to the completion date of their most recent criminal background inquiry, shall be prohibited from relying on the applicant's previous employer's criminal background inquiry information. A new criminal background inquiry shall be requested pursuant to RCW 43.43.830 through 43.43.842.      (e) Health care facilities that share criminal background inquiry information shall be immune from any claim of defamation, invasion of privacy, negligence, or any other claim in connection with any dissemination of this information in accordance with this subsection.                (f) Health care facilities shall transmit and receive the criminal background inquiry information in a manner that reasonably protects the subject's rights to privacy and confidentiality.              (g) For the purposes of this subsection, "health care facility" means a nursing home licensed under chapter 18.51 RCW, a boarding home licensed under chapter 18.20 RCW, or an adult family home licensed under chapter 70.128 RCW.         Sec. 525. RCW 43.20A.710 and 1993 c 210 s 1 are each amended to read as follows:         (1) The secretary shall investigate the conviction records, pending charges or disciplinary board final decisions of:      (((1))) (a) Persons being considered for state employment in positions directly responsible for the supervision, care, or treatment of children or individuals with mental illness or developmental disabilities; and (((2)))                  (b) Individual providers who are paid by the state for in-home services and hired by individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment, including but not limited to services provided under chapter 74.39A RCW.           (2) The investigation may include an examination of state and national criminal identification data ((and the child abuse and neglect register established under chapter 26.44 RCW. The secretary shall provide the results of the state background check on individual providers to the individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment who hired them and to their legal guardians, if any)). The secretary shall use the information solely for the purpose of determining the character, suitability, and competence of these applicants ((except that in the case of individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment who employ individual providers, the)).             (3) The secretary shall provide the results of the state background check on individual providers to the individuals with physical disabilities, developmental disabilities, mental illness, or mental impairment or to their legal guardians, if any, for their determination of the character, suitability, and competence of the applicants ((shall be made by the individual with a physical disability, developmental disability, mental illness, or mental impairment)). If an individual elects to hire or retain an individual provider after receiving notice from the department that the applicant has a conviction for an offense that would disqualify the applicant from employment with the department, then the secretary may deny payment for any subsequent services rendered by the disqualified individual provider.      (4) Criminal justice agencies shall provide the secretary such information as they may have and that the secretary may require for such purpose. ((If necessary, persons may be employed on a conditional basis pending completion of the background investigation.))      Sec. 526. RCW 18.52C.010 and 1988 c 243 s 1 are each amended to read as follows:        The legislature intends to protect the public's right to high quality health care by assuring that nursing pools employ, procure or refer competent and qualified ((nursing)) health care or long-term care personnel, and that such ((nursing)) personnel are provided to health care facilities, agencies, or individuals in a way to meet the needs of residents and patients.               Sec. 527. RCW 18.52C.020 and 1991 c 3 s 130 are each amended to read as follows:      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.         (1) "Secretary" means the secretary of the department of health.           (2) "Health care facility" means a nursing home, hospital, hospice care facility, home health care agency, hospice agency, boarding home, adult family home, group home, or other entity for the delivery of health care or long-term care services, including chore services provided under chapter 74.39A RCW.                   (3) "Nursing home" means any nursing home facility licensed pursuant to chapter 18.52 RCW.     (4) "Nursing pool" means any person engaged in the business of providing, procuring, or referring health care or long-term care personnel for temporary employment in health care facilities, such as licensed nurses or practical nurses, ((and)) nursing assistants, and chore service providers. "Nursing pool" does not include an individual who only engages in providing his or her own services.      (5) "Person" includes an individual, firm, corporation, partnership, or association.               Sec. 528. RCW 18.52C.040 and 1991 c 3 s 132 are each amended to read as follows:             (1) The nursing pool shall document that each temporary employee or referred independent contractor provided or referred to health care facilities currently meets the applicable minimum state credentialing requirements.      (2) The nursing pool shall not require, as a condition of employment or referral, that employees or independent contractors of the nursing pool recruit new employees or independent contractors for the nursing pool from among the permanent employees of the health care facility to which the nursing pool employee or independent contractor has been assigned or referred.                    (3) The nursing pool shall carry professional and general liability insurance to insure against any loss or damage occurring, whether professional or otherwise, as the result of the negligence of its employees, agents or independent contractors for acts committed in the course of their employment with the nursing pool: PROVIDED, That a nursing pool that only refers self-employed, independent contractors to health care facilities shall carry professional and general liability insurance to cover its own liability as a nursing pool which refers self-employed, independent contractors to health care facilities: AND PROVIDED FURTHER, That it shall require, as a condition of referral, that self-employed, independent contractors carry professional and general liability insurance to insure against loss or damage resulting from their own acts committed in the course of their own employment by a health care facility.      (4) The uniform disciplinary act, chapter 18.130 RCW, shall govern the issuance and denial of registration and the discipline of persons registered under this chapter. The secretary shall be the disciplinary authority under this chapter.         (5) The nursing pool shall conduct a criminal background check on all employees and independent contractors as required under RCW 43.43.842 prior to employment or referral of the employee or independent contractor.      NEW SECTION. Sec. 529. A new section is added to chapter 43.43 RCW to read as follows:          If information is released under this chapter by the state of Washington, the state and its employees: (1) Make no representation that the subject of the inquiry has no criminal record or adverse civil or administrative decisions; (2) make no determination that the subject of the inquiry is suitable for involvement with a business or organization; and (3) are not liable for defamation, invasion of privacy, negligence, or any other claim in connection with any lawful dissemination of information.            NEW SECTION. Sec. 530. The following acts or parts of acts are each repealed:      (1) RCW 74.39.030 and 1989 c 427 s 11;              (2) RCW 74.39.040 and 1989 c 427 s 13;              (3) RCW 74.39A.005 and 1993 c 508 s 1; and              (4) RCW 74.39A.008 and 1995 1st sp.s. c 18 s 1.             NEW SECTION. Sec. 531. Part headings and captions used in this act are not part of the law.             NEW SECTION. Sec. 532. Section 403 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."      On page 1, line 2 of the title, after "act;" strike the remainder of the title and insert "amending RCW 70.129.010, 70.129.030, 70.129.110, 70.129.150, 74.39A.030, 74.39A.040, 74.39A.050, 74.39A.060, 70.129.105, 74.42.030, 74.42.450, 43.20B.080, 74.34.010, 74.39A.170, 70.128.175, 9A.42.010, 9A.42.050, 9A.42.020, 9A.42.030, 9A.44.010, 9A.44.050, 9A.44.100, 18.130.200, 43.43.842, 70.124.020, 70.124.040, 70.124.070, 74.34.020, 43.43.832, 43.20A.710, 18.52C.010, 18.52C.020, and 18.52C.040; reenacting and amending RCW 18.130.040; adding a new section to chapter 74.39A RCW; adding a new section to chapter 70.124 RCW; adding new sections to chapter 74.34 RCW; adding new ections to chapter 18.20 RCW; adding a new section to chapter 43.20B RCW; adding a new section to chapter 43.70 RCW; adding a new section to chapter 18.51 RCW; adding new sections to chapter 9A.42 RCW; adding a new section to chapter 43.43 RCW; creating new sections; repealing RCW 74.39.030, 74.39.040, 74.39A.005, and 74.39A.008; and declaring an emergency.",      and the bill do pass as recommended by the Conference Committee.

      Signed by: Senators Deccio, Benton; Representatives Dyer, Backlund, Cody.


MOTION


      Senator Deccio moved that the Senate adopt the Second Report of the Conference Committee on Engrossed Second Substitute House Bill No. 1850.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Deccio that the Senate adopt the Second Report of the Conference Committee on Engrossed Second Substitute House Bill No. 1850.

      The motion by Senator Deccio carried and the Senate adopted the Second Report of the Conference Committee on Engrossed Second Substitute House Bill No. 1850.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute House Bill No. 1850, as recommended by the Conference Committee.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 1850, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.          Absent: Senator Hargrove - 1.               ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1850, as recommended by the Conference Committee, 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 27, 1997

MR. PRESIDENT:

      The House has adopted the Report of the Conference Committee on SECOND SUBSTITUTE SENATE BILL NO. 5127 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


2SSB 5127                                                                                                                                                                                     April 27, 1997

Includes "NEW ITEM": Yes


Providing additional funding for trauma care services

MR. PRESIDENT:

MR. SPEAKER:

      We of your CONFERENCE COMMITTEE, to whom was referred SECOND SUBSTITUTE SENATE BILL NO. 5127, providing additional funding for trauma care services, 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 new section is added to chapter 70.168 RCW to read as follows:               The department shall establish by rule a grant program for designated trauma care services. The grants shall be made from the emergency medical services and trauma care system trust account and shall require regional matching funds. The trust account funds and regional match shall be in a seventy-five to twenty-five percent ratio.                   Sec. 2. RCW 70.168.040 and 1990 c 269 s 17 are each amended to read as follows:          The emergency medical services and trauma care system trust account is hereby created in the state treasury. Moneys shall be transferred to the emergency medical services and trauma care system trust account from the public safety education account or other sources as appropriated, and as collected under RCW 46.63.110(6) and section 5 of this act. Disbursements shall be made by the department subject to legislative appropriation. Expenditures may be made only for the purposes of the state trauma care system under this chapter, including emergency medical services, trauma care services, rehabilitative services, and the planning and development of related services under this chapter and for reimbursement by the department of social and health services for trauma care services provided by designated trauma centers.       Sec. 3. RCW 46.63.110 and 1993 c 501 s 11 are each amended to read as follows:              (1) A person found to have committed a traffic infraction shall be assessed a monetary penalty. No penalty may exceed two hundred and fifty dollars for each offense unless authorized by this chapter or title.            (2) The supreme court shall prescribe by rule a schedule of monetary penalties for designated traffic infractions. This rule shall also specify the conditions under which local courts may exercise discretion in assessing fines and penalties for traffic infractions. The legislature respectfully requests the supreme court to adjust this schedule every two years for inflation.                  (3) There shall be a penalty of twenty-five dollars for failure to respond to a notice of traffic infraction except where the infraction relates to parking as defined by local law, ordinance, regulation, or resolution or failure to pay a monetary penalty imposed pursuant to this chapter. A local legislative body may set a monetary penalty not to exceed twenty-five dollars for failure to respond to a notice of traffic infraction relating to parking as defined by local law, ordinance, regulation, or resolution. The local court, whether a municipal, police, or district court, shall impose the monetary penalty set by the local legislative body.      (4) Monetary penalties provided for in chapter 46.70 RCW which are civil in nature and penalties which may be assessed for violations of chapter 46.44 RCW relating to size, weight, and load of motor vehicles are not subject to the limitation on the amount of monetary penalties which may be imposed pursuant to this chapter.           (5) Whenever a monetary penalty is imposed by a court under this chapter it is immediately payable. If the person is unable to pay at that time the court may, in its discretion, grant an extension of the period in which the penalty may be paid. If the penalty is not paid on or before the time established for payment the court shall notify the department of the failure to pay the penalty, and the department shall suspend the person's driver's license or driving privilege until the penalty has been paid and the penalty provided in subsection (3) of this section has been paid.             (6) In addition to any other penalties imposed under this section and not subject to the limitation of subsection (1) of this section, a person found to have committed a traffic infraction shall be assessed a fee of five dollars per infraction. Under no circumstances shall this fee be reduced or waived. Revenue from this fee shall be forwarded to the state treasurer for deposit in the emergency medical services and trauma care system trust account under RCW 70.168.040.      Sec. 4. RCW 3.62.090 and 1995 c 332 s 7 are each amended to read as follows:                 (1) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions, by all courts organized under Title 3 or 35 RCW a public safety and education assessment equal to sixty percent of such fines, forfeitures, or penalties, which shall be remitted as provided in chapters 3.46, 3.50, 3.62, and 35.20 RCW. The assessment required by this section shall not be suspended or waived by the court.      (2) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions and for fines levied under RCW 46.61.5055, and in addition to the public safety and education assessment required under subsection (1) of this section, by all courts organized under Title 3 or 35 RCW, an additional public safety and education assessment equal to fifty percent of the public safety and education assessment required under subsection (1) of this section, which shall be remitted to the state treasurer and deposited as provided in RCW 43.08.250. The additional assessment required by this subsection shall not be suspended or waived by the court.                  (3) This section does not apply to the fee imposed under RCW 43.63.110(6).                 NEW SECTION. Sec. 5. A new section is added to chapter 46.12 RCW to read as follows:          (1) Upon the retail sale or lease of any new or used motor vehicle by a vehicle dealer, the dealer shall collect from the consumer an emergency medical services fee of six dollars and fifty cents, two dollars and fifty cents of which shall be an administrative fee to be retained by the vehicle dealer. The remainder of the fee shall be forwarded with the required title application and all other fees to the department of licensing, or any of its authorized agents. The four-dollar fee collected in this section shall be deposited in the emergency medical services and trauma care system trust account created in RCW 70.168.040. The administrative fee charged by a dealer shall not be considered a violation of RCW 46.70.180(2).                      (2) If a fee is not imposed under subsection (1) of this section, there is hereby imposed a fee of six dollars and fifty cents at the time of application for (a) an original title or transfer of title issued on any motor vehicle pursuant to this chapter or chapter 46.09 RCW, or (b) an original transaction or transfer of ownership transaction of a vehicle under chapter 46.10 RCW. The department of licensing or any of its authorized agents shall collect the fee when processing these transactions. The fee shall be transmitted to the emergency medical services and trauma care system trust account created in RCW 70.168.040.     (3) This section does not apply to a motor vehicle that has been declared a total loss by an insurer or self-insurer unless an application for certificate of ownership or license registration is made to the department of licensing after the declaration of total loss.                    Sec. 6. RCW 63.14.010 and 1993 sp.s. c 5 s 1 are each amended to read as follows:      In this chapter, unless the context otherwise requires:        (1) "Goods" means all chattels personal when purchased primarily for personal, family, or household use and not for commercial or business use, but not including money or, except as provided in the next sentence, things in action. The term includes but is not limited to merchandise certificates or coupons, issued by a retail seller, to be used in their face amount in lieu of cash in exchange for goods or services sold by such a seller and goods which, at the time of sale or subsequently, are to be so affixed to real property as to become a part thereof, whether or not severable therefrom;         (2) "Lender credit card" means a card or device under a lender credit card agreement pursuant to which the issuer gives to a cardholder residing in this state the privilege of obtaining credit from the issuer or other persons in purchasing or leasing property or services, obtaining loans, or otherwise, and the issuer of which is not: (a) Principally engaged in the business of selling goods; or (b) a financial institution;      (3) "Lender credit card agreement" means an agreement entered into or performed in this state prescribing the terms of retail installment transactions pursuant to which the issuer may, with the buyer's consent, purchase or acquire one or more retail sellers' indebtedness of the buyer under a sales slip or memorandum evidencing the purchase, lease, loan, or otherwise to be paid in accordance with the agreement. The issuer of a lender credit card agreement shall not be principally engaged in the business of selling goods or be a financial institution;        (4) "Financial institution" means any bank or trust company, mutual savings bank, credit union, or savings and loan association organized pursuant to the laws of any one of the United States of America or the United States of America, or the laws of a foreign country if also qualified to conduct business in any one of the United States of America or pursuant to the laws of the United States of America;                  (5) "Services" means work, labor, or services of any kind when purchased primarily for personal, family, or household use and not for commercial or business use whether or not furnished in connection with the delivery, installation, servicing, repair, or improvement of goods and includes repairs, alterations, or improvements upon or in connection with real property, but does not include services for which the price charged is required by law to be determined or approved by or to be filed, subject to approval or disapproval, with the United States or any state, or any department, division, agency, officer, or official of either as in the case of transportation services;       (6) "Retail buyer" or "buyer" means a person who buys or agrees to buy goods or obtain services or agrees to have services rendered or furnished, from a retail seller;          (7) "Retail seller" or "seller" means a person engaged in the business of selling goods or services to retail buyers;                 (8) "Retail installment transaction" means any transaction in which a retail buyer purchases goods or services from a retail seller pursuant to a retail installment contract, a retail charge agreement, or a lender credit card agreement, as defined in this section, which provides for a service charge, as defined in this section, and under which the buyer agrees to pay the unpaid balance in one or more installments or which provides for no service charge and under which the buyer agrees to pay the unpaid balance in more than four installments;            (9) "Retail installment contract" or "contract" means a contract, other than a retail charge agreement, a lender credit card agreement, or an instrument reflecting a sale made pursuant thereto, entered into or performed in this state for a retail installment transaction. The term "retail installment contract" may include a chattel mortgage, a conditional sale contract, and a contract in the form of a bailment or a lease if the bailee or lessee contracts to pay as compensation for their use a sum substantially equivalent to or in excess of the value of the goods sold and if it is agreed that the bailee or lessee is bound to become, or for no other or a merely nominal consideration, has the option of becoming the owner of the goods upon full compliance with the provisions of the bailment or lease. The term "retail installment contract" does not include: (a) A "consumer lease," heretofore or hereafter entered into, as defined in RCW 63.10.020; (b) a lease which would constitute such "consumer lease" but for the fact that: (i) It was entered into before April 29, 1983; (ii) the lessee was not a natural person; (iii) the lease was not primarily for personal, family, or household purposes; or (iv) the total contractual obligations exceeded twenty-five thousand dollars; or (c) a lease-purchase agreement under chapter 63.19 RCW;      (10) "Retail charge agreement," "revolving charge agreement," or "charge agreement" means an agreement between a retail buyer and a retail seller that is entered into or performed in this state and that prescribes the terms of retail installment transactions with one or more sellers which may be made thereunder from time to time and under the terms of which a service charge, as defined in this section, is to be computed in relation to the buyer's unpaid balance from time to time;        (11) "Service charge" however denominated or expressed, means the amount which is paid or payable for the privilege of purchasing goods or services to be paid for by the buyer in installments over a period of time. It does not include the amount, if any, charged for insurance premiums, delinquency charges, attorneys' fees, court costs, any vehicle dealer administrative fee under section 5 of this act, or official fees;        (12) "Sale price" means the price for which the seller would have sold or furnished to the buyer, and the buyer would have bought or obtained from the seller, the goods or services which are the subject matter of a retail installment transaction. The sale price may include any taxes, registration and license fees, any vehicle dealer administrative fee, and charges for transferring vehicle titles, delivery, installation, servicing, repairs, alterations, or improvements;      (13) "Official fees" means the amount of the fees prescribed by law and payable to the state, county, or other governmental agency for filing, recording, or otherwise perfecting, and releasing or satisfying, a retained title, lien, or other security interest created by a retail installment transaction;                 (14) "Time balance" means the principal balance plus the service charge;            (15) "Principal balance" means the sale price of the goods or services which are the subject matter of a retail installment contract less the amount of the buyer's down payment in money or goods or both, plus the amounts, if any, included therein, if a separate identified charge is made therefor and stated in the contract, for insurance, any vehicle dealer administrative fee, and official fees;                (16) "Person" means an individual, partnership, joint venture, corporation, association, or any other group, however organized;          (17) "Rate" means the percentage which, when multiplied times the outstanding balance for each month or other installment period, yields the amount of the service charge for such month or period.      Sec. 7. RCW 63.14.130 and 1992 c 193 s 1 are each amended to read as follows:               The service charge shall be inclusive of all charges incident to investigating and making the retail installment contract or charge agreement and for the privilege of making the installment payments thereunder and no other fee, expense or charge whatsoever shall be taken, received, reserved or contracted therefor from the buyer, except for any vehicle dealer administrative fee under section 5 of this act.       (1) The service charge, in a retail installment contract, shall not exceed the dollar amount or rate agreed to by contract and disclosed under RCW 63.14.040(1)(7)(g).          (2) The service charge in a retail charge agreement, revolving charge agreement, lender credit card agreement, or charge agreement, shall not exceed the schedule or rate agreed to by contract and disclosed under RCW 63.14.120(1). If the service charge so computed is less than one dollar for any month, then one dollar may be charged.           NEW SECTION. Sec. 8. The legislature finds as follows:                  Emergency medical services and trauma care are provided to all residents of the state regardless of a person's ability to pay. Historically, hospitals and health care providers have been able to recover some of their financial losses incurred in caring for an uninsured or underinsured person by charging persons able to pay more. In recent years, the health care industry has undergone substantial changes. With the advent of managed health care programs and the adoption of new cost control measures, some hospitals and health care providers assert that it is difficult to shift costs for uninsured and underinsured patients onto insured patients.                   In 1990 the legislature established a coordinated trauma care system. Part of the 1990 legislation included funding for a study to determine the extent to which trauma care is uncompensated and undercompensated. This study focused exclusively on trauma care. The legislature finds that, as a prerequisite to determining the amount of state aid that may be necessary to assist health care providers and facilities, it is necessary to examine trauma care losses within the context of a health care provider or facility's total financial operations.                   NEW SECTION. Sec. 9. The committees on finance and health care of the house of representatives and the committee on health and long-term care of the senate shall jointly review the rules implementing the grant program established pursuant to section 1 of this act. The committees shall additionally conduct joint work sessions and hearings during 1997 to verify that public funds are being used in a fiscally accountable and efficient fashion that maximizes the availability of quality trauma care services. Representatives of verified ambulance services, designated trauma services, physicians who are active members of a trauma care service team at a designated facility, and the department of health shall present financial information associated with trauma care and administrative costs of the trauma system at these hearings.          NEW SECTION. Sec. 10. The department of health, in cooperation with the department of social and health services, shall monitor the adequacy of the funding mechanisms created in this act. The department of health shall report to the legislature by December 1998 the extent to which these funds covered the cost of uncompensated care in designated trauma care services in the state.                 NEW SECTION. Sec. 11. Sections 1 through 8 of this act take effect January 1, 1998."      On page 1, on line 1 of the title, after "services", strike the remainder of the title and insert "amending RCW 70.168.040, 46.63.110, 3.62.090, 63.14.010, and 63.14.130; adding a new section to chapter 70.168 RCW; adding a new section to chapter 46.12 RCW; creating new sections; prescribing penalties; and providing an effective date.",        and the bill do pass as recommended by the Conference Committee.

      Signed by: Senators Deccio, Wojahn, Winsley; Representatives Carrell, Conway.


MOTION


      Senator Deccio moved that the Senate adopt the Report of the Conference Committee on Second Substitute Senate Bill No. 5127.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Deccio that the Senate adopt the Report of the Conference Committee on Second Substitute Senate Bill No. 5127.

      The motion by Senator Deccio carried and the Senate adopted the Report of the Conference Committee on Second Substitute Senate Bill No. 5127.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5127, as recommended by the Conference Committee.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5127, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 3; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn and Wood - 45.                Voting nay: Senators Benton, Finkbeiner and Zarelli - 3.     Absent: Senator Hargrove - 1.      SECOND SUBSTITUTE SENATE BILL NO. 5127, as recommended by the Conference Committee, 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 27, 1997

MR. PRESIDENT:

      The Speaker has signed:

      SECOND SUBSTITUTE SENATE BILL NO. 5740,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6061, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2069,

      SUBSTITUTE HOUSE BILL NO. 2279, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2069,

      SUBSTITUTE HOUSE BILL NO. 2279.


SIGNED BY THE PRESIDENT

      The President signed:

      SENATE BILL NO. 5034,

      SECOND SUBSTITUTE SENATE BILL NO. 5127,

      SUBSTITUTE SENATE BILL NO. 5227.


MESSAGE FROM THE HOUSE

April 27, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 6094 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 36.70A RCW to read as follows:               In enacting the section 7(5), chapter . . ., Laws of 1997 (section 7(5) of this act) amendments to RCW 36.70A.070(5), the legislature finds that chapter 36.70A RCW is intended to recognize the importance of agriculture, forestry, and rural lands and rural character to Washington's economy, its people, and its environment, while respecting regional differences and, in accordance with one of the goals of the growth management act, protecting the property rights of landowners from arbitrary and discriminatory actions. Rural lands and rural-based economies, including agriculture and forest uses that are located outside of designated resource lands, enhance the economic desirability of the state, help to preserve traditional economic activities, and contribute to the state's overall quality of life. The legislature also finds that in developing its rural element under RCW 36.70A.070(5), a county should foster land use patterns and develop a local vision of rural character that: Will help preserve rural-based economies and traditional rural lifestyles; will encourage the economic prosperity of rural residents; will foster opportunities for small-scale, rural-based employment and self-employment; will permit the operation of rural-based agricultural, commercial, recreational, and tourist businesses that are consistent with existing and planned land use patterns; will foster the private stewardship of the land and preservation of open space; and will enhance the rural sense of community and quality of life. The legislature recognizes that there will be a variety of interpretations by counties of how best to implement a rural element, reflecting the diverse needs and local circumstances found across the state. RCW 36.70A.070(5) provides a framework for local elected officials to make these determinations. References to both wildlife and water are intended in RCW 36.70A.030 and 36.70A.070 to acknowledge their importance as features or components of rural character. It is expected that these matters will be addressed in comprehensive plans, but that counties may not necessarily need to adopt new regulations to account adequately for them in establishing a pattern of land use and development for rural areas.                  NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows:         In amending RCW 36.70A.320(3) by section 20(3), chapter . . ., Laws of 1997 (section 20(3) of this act), the legislature intends that the boards apply a more deferential standard of review to actions of counties and cities than the preponderance of the evidence standard provided for under existing law. In recognition of the broad range of discretion that may be exercised by counties and cities consistent with the requirements of this chapter, the legislature intends for the boards to grant deference to counties and cities in how they plan for growth, consistent with the requirements and goals of this chapter. Local comprehensive plans and development regulations require counties and cities to balance priorities and options for action in full consideration of local circumstances. The legislature finds that while this chapter requires local planning to take place within a framework of state goals and requirements, the ultimate burden and responsibility for planning, harmonizing the planning goals of this chapter, and implementing a county's or city's future rests with that community.        Sec. 3. RCW 36.70A.030 and 1995 c 382 s 9 are each amended to read as follows:       Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.       (1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.                  (2) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish in upland hatcheries, or livestock, and that has long-term commercial significance for agricultural production.        (3) "City" means any city or town, including a code city.    (4) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.                      (5) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.                     (6) "Department" means the department of community, trade, and economic development.     (7) "Development regulations" or "regulation" means the controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances together with any amendments thereto. A development regulation does not include a decision to approve a project permit application, as defined in RCW 36.70B.020, even though the decision may be expressed in a resolution or ordinance of the legislative body of the county or city.      (8) "Forest land" means land primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, and that has long-term commercial significance. In determining whether forest land is primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, the following factors shall be considered: (a) The proximity of the land to urban, suburban, and rural settlements; (b) surrounding parcel size and the compatibility and intensity of adjacent and nearby land uses; (c) long-term local economic conditions that affect the ability to manage for timber production; and (d) the availability of public facilities and services conducive to conversion of forest land to other uses.      (9) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.      (10) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.      (11) "Minerals" include gravel, sand, and valuable metallic substances.               (12) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.   (13) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.        (14) "Rural character" refers to the patterns of land use and development established by a county in the rural element of its comprehensive plan:      (a) In which open space, the natural landscape, and vegetation predominate over the built environment;      (b) That foster traditional rural lifestyles, rural-based economies, and opportunities to both live and work in rural areas;                (c) That provide visual landscapes that are traditionally found in rural areas and communities;      (d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat;              (e) That reduce the inappropriate conversion of undeveloped land into sprawling, low-density development;                (f) That generally do not require the extension of urban governmental services; and           (g) That are consistent with the protection of natural surface water flows and ground water and surface water recharge and discharge areas.              (15) "Rural development" refers to development outside the urban growth area and outside agricultural, forest, and mineral resource lands designated pursuant to RCW 36.70A.170. Rural development can consist of a variety of uses and residential densities, including clustered residential development, at levels that are consistent with the preservation of rural character and the requirements of the rural element. Rural development does not refer to agriculture or forestry activities that may be conducted in rural areas.         (16) "Rural governmental services" or "rural services" include those public services and public facilities historically and typically delivered at an intensity usually found in rural areas, and may include domestic water systems, fire and police protection services, transportation and public transit services, and other public utilities associated with rural development and normally not associated with urban areas. Rural services do not include storm or sanitary sewers, except as otherwise authorized by RCW 36.70A.110(4).          (17) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of ((such)) land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural resource lands designated pursuant to RCW 36.70A.170. A pattern of more intensive rural development, as provided in RCW 36.70A.070(5)(d), is not urban growth. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.           (((15))) (18) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.        (((16))) (19) "Urban governmental services" or "urban services" include those ((governmental)) public services and public facilities at an intensity historically and typically ((delivered by)) provided in cities, ((and include)) specifically including storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with ((nonurban)) rural areas.       (((17))) (20) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities, or those wetlands created after July 1, 1990, that were unintentionally created as a result of the construction of a road, street, or highway. Wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands.        NEW SECTION. Sec. 4. A new section is added to chapter 36.70A RCW to read as follows:               (1) A county, after conferring with its cities, may develop alternative methods of achieving the planning goals established by RCW 36.70A.020.              (2) The authority provided by this section may not be used to modify:  (a) Requirements for the designation and protection of critical areas or for the designation of natural resource lands under RCW 36.70A.060(2), 36.70A.170, and 36.70A.172;          (b) The requirement that wetlands be delineated consistent with the requirements of RCW 36.70A.175; or          (c) The requirement to establish a process for the siting of essential public facilities pursuant to RCW 36.70A.200.        (3) Before adopting any alternative methods of achieving the planning goals established by RCW 36.70A.020, a county shall provide an opportunity for public review and comment. An ordinance or resolution proposing or adopting alternative methods must be submitted to the department in the same manner as provided in RCW 36.70A.106 for submittal of proposed and adopted comprehensive plans and development regulations.     NEW SECTION. Sec. 5. A new section is added to chapter 36.70A RCW to read as follows:              The legislature finds that it is the goal of the state of Washington to achieve no overall net loss of wetland functions. Wetlands can provide public benefits related to flood control, groundwater recharge, water quality, and wildlife habitat. The legislature further finds that consideration should be given to the functions wetlands provide and to the needs of private property owners to assure that wetlands regulations both reflect the impact to wetland functions and allow for a reasonable use of property. In adopting critical areas development regulations, counties and cities should consider and balance all of the goals under RCW 36.70A.020. The legislature intends that no goal takes precedence over any of the others, but that counties and cities may prioritize the goals in accordance with local history, conditions, circumstances, and choice.         Sec. 6. RCW 36.70A.060 and 1991 sp.s. c 32 s 21 are each amended to read as follows:      (1) Each county that is required or chooses to plan under RCW 36.70A.040, and each city within such county, shall adopt development regulations on or before September 1, 1991, to assure the conservation of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170. Regulations adopted under this subsection may not prohibit uses legally existing on any parcel prior to their adoption and shall remain in effect until the county or city adopts development regulations pursuant to RCW 36.70A.120. Such regulations shall assure that the use of lands adjacent to agricultural, forest, or mineral resource lands shall not interfere with the continued use, in the accustomed manner and in accordance with best management practices, of these designated lands for the production of food, agricultural products, or timber, or for the extraction of minerals. Counties and cities shall require that all plats, short plats, development permits, and building permits issued for development activities on, or within three hundred feet of, lands designated as agricultural lands, forest lands, or mineral resource lands, contain a notice that the subject property is within or near designated agricultural lands, forest lands, or mineral resource lands on which a variety of commercial activities may occur that are not compatible with residential development for certain periods of limited duration.       (2) Each county and city shall adopt development regulations that protect critical areas that are required to be designated under RCW 36.70A.170. For counties and cities that are required or choose to plan under RCW 36.70A.040, such development regulations shall be adopted on or before September 1, 1991. For the remainder of the counties and cities, such development regulations shall be adopted on or before March 1, 1992.               (3) Such counties and cities shall review these designations and development regulations when adopting their comprehensive plans under RCW 36.70A.040 and implementing development regulations under RCW 36.70A.120 and may alter such designations and development regulations to insure consistency.                  (4) Forest land and agricultural land located within urban growth areas shall not be designated by a county or city as forest land or agricultural land of long-term commercial significance under RCW 36.70A.170 unless the city or county has enacted a program authorizing transfer or purchase of development rights.      (5) Counties and cities may exempt the following from critical areas development regulations:          (a) Emergency activities; and      (b) Activities with minor impacts on critical areas.                Sec. 7. RCW 36.70A.070 and 1996 c 239 s 1 are each amended to read as follows:              The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.                      Each comprehensive plan shall include a plan, scheme, or design for each of the following:                (1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, general aviation airports, public utilities, public facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.             (2) A housing element ensuring the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs; (b) includes a statement of goals, policies, objectives, and mandatory provisions for the preservation, improvement, and development of housing, including single-family residences; (c) identifies sufficient land for housing, including, but not limited to, government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; and (d) makes adequate provisions for existing and projected needs of all economic segments of the community.                (3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.       (4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.      (5) Rural element. Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources. The following provisions shall apply to the rural element:        (a) Growth management act goals and local circumstances. Because circumstances vary from county to county, in establishing patterns of rural densities and uses, a county may consider local circumstances, but shall develop a written record explaining how the rural element harmonizes the planning goals in RCW 36.70A.020 and meets the requirements of this chapter.         (b) Rural development. The rural element shall permit ((appropriate land uses that are compatible with the rural character of such lands and)) rural development, forestry, and agriculture in rural areas. The rural element shall provide for a variety of rural densities ((and)), uses ((and may also provide)), essential public facilities, and rural governmental services needed to serve the permitted densities and uses. In order to achieve a variety of rural densities and uses, counties may provide for clustering, density transfer, design guidelines, conservation easements, and other innovative techniques that will accommodate appropriate rural densities and uses that are not characterized by urban growth and that are consistent with rural character.                      (c) Measures governing rural development. The rural element shall include measures that apply to rural development and protect the rural character of the area, as established by the county, by:       (i) Containing or otherwise controlling rural development;                   (ii) Assuring visual compatibility of rural development with the surrounding rural area;      (iii) Reducing the inappropriate conversion of undeveloped land into sprawling, low-density development in the rural area;          (iv) Protecting critical areas, as provided in RCW 36.70A.060, and surface water and ground water resources; and     (v) Protecting against conflicts with the use of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170.       (d) Limited areas of more intensive rural development. Subject to the requirements of this subsection and except as otherwise specifically provided in this subsection (5)(d), the rural element may allow for limited areas of more intensive rural development, including necessary public facilities and public services to serve the limited area as follows:                     (i) Rural development consisting of the infill, development, or redevelopment of existing commercial, industrial, residential, or mixed-use areas, whether characterized as shoreline development, villages, hamlets, rural activity centers, or crossroads developments. A commercial, industrial, residential, shoreline, or mixed-use area shall be subject to the requirements of (d)(iv) of this subsection, but shall not be subject to the requirements of (c)(ii) and (iii) of this subsection. An industrial area is not required to be principally designed to serve the existing and projected rural population;      (ii) The intensification of development on lots containing, or new development of, small-scale recreational or tourist uses, including commercial facilities to serve those recreational or tourist uses, that rely on a rural location and setting, but that do not include new residential development. A small-scale recreation or tourist use is not required to be principally designed to serve the existing and projected rural population. Public services and public facilities shall be limited to those necessary to serve the recreation or tourist use and shall be provided in a manner that does not permit low-density sprawl;                   (iii) The intensification of development on lots containing isolated nonresidential uses or new development of isolated cottage industries and isolated small-scale businesses that are not principally designed to serve the existing and projected rural population and nonresidential uses, but do provide job opportunities for rural residents. Public services and public facilities shall be limited to those necessary to serve the isolated nonresidential use and shall be provided in a manner that does not permit low-density sprawl;      (iv) A county shall adopt measures to minimize and contain the existing areas or uses of more intensive rural development, as appropriate, authorized under this subsection. Lands included in such existing areas or uses shall not extend beyond the logical outer boundary of the existing area or use, thereby allowing a new pattern of low-density sprawl. Existing areas are those that are clearly identifiable and contained and where there is a logical boundary delineated predominately by the built environment, but that may also include undeveloped lands if limited as provided in this subsection. The county shall establish the logical outer boundary of an area of more intensive rural development. In establishing the logical outer boundary the county shall address (A) the need to preserve the character of existing natural neighborhoods and communities, (B) physical boundaries such as bodies of water, streets and highways, and land forms and contours, (C) the prevention of abnormally irregular boundaries, and (D) the ability to provide public facilities and public services in a manner that does not permit low-density sprawl;     (v) For purposes of (d) of this subsection, an existing area or existing use is one that was in existence:             (A) On July 1, 1990, in a county that was initially required to plan under all of the provisions of this chapter;              (B) On the date the county adopted a resolution under RCW 36.70A.040(2), in a county that is planning under all of the provisions of this chapter under RCW 36.70A.040(2); or            (C) On the date the office of financial management certifies the county's population as provided in RCW 36.70A.040(5), in a county that is planning under all of the provisions of this chapter pursuant to RCW 36.70A.040(5).   (e) Exception. This subsection shall not be interpreted to permit in the rural area a major industrial development or a master planned resort unless otherwise specifically permitted under RCW 36.70A.360 and 36.70A.365.              (6) A transportation element that implements, and is consistent with, the land use element. The transportation element shall include the following subelements:      (a) Land use assumptions used in estimating travel;              (b) Facilities and services needs, including:           (i) An inventory of air, water, and ground transportation facilities and services, including transit alignments and general aviation airport facilities, to define existing capital facilities and travel levels as a basis for future planning;              (ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated;               (iii) Specific actions and requirements for bringing into compliance any facilities or services that are below an established level of service standard;          (iv) Forecasts of traffic for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;      (v) Identification of system expansion needs and transportation system management needs to meet current and future demands;      (c) Finance, including:            (i) An analysis of funding capability to judge needs against probable funding resources;      (ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;              (iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;      (d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;                (e) Demand-management strategies.      After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.                 The transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.                  NEW SECTION. Sec. 8. A new section is added to chapter 36.70A RCW to read as follows:              (1) Except as otherwise provided in this chapter, residential and nonresidential uses in the rural element shall not require urban services and nonresidential rural development shall be principally designed to serve and provide jobs for the existing and projected rural population or serve existing nonresidential uses.                 (2) This section applies to (a) a county with a population of ninety-five thousand or more; and (b) a county that has committed five percent or more of its land base to urban growth areas under RCW 36.70A.110 and that has no more than eighty percent of its land base in public ownership or resource lands of long-term commercial significance designated under RCW 36.70A.170.            NEW SECTION. Sec. 9. A new section is added to chapter 36.70A RCW to read as follows:      (1) The public participation requirements of this chapter shall include notice procedures that are reasonably calculated to provide notice to property owners and other affected and interested individuals, tribes, government agencies, businesses, and organizations of proposed amendments to comprehensive plans and development regulation. Examples of reasonable notice provisions include:            (a) Posting the property for site-specific proposals;              (b) Publishing notice in a newspaper of general circulation in the county, city, or general area where the proposal is located or that will be affected by the proposal;         (c) Notifying public or private groups with known interest in a certain proposal or in the type of proposal being considered;       (d) Placing notices in appropriate regional, neighborhood, ethnic, or trade journals; and      (e) Publishing notice in agency newsletters or sending notice to agency mailing lists, including general lists or lists for specific proposals or subject areas.               (2)(a) Except as otherwise provided in (b) of this subsection, if the legislative body for a county or city chooses to consider a change to an amendment to a comprehensive plan or development regulation, and the change is proposed after the opportunity for review and comment has passed under the county's or city's procedures, an opportunity for review and comment on the proposed change shall be provided before the local legislative body votes on the proposed change.           (b) An additional opportunity for public review and comment is not required under (a) of this subsection if:            (i) An environmental impact statement has been prepared under chapter 43.21C RCW for the pending resolution or ordinance and the proposed change is within the range of alternatives considered in the environmental impact statement;                  (ii) The proposed change is within the scope of the alternatives available for public comment;      (iii) The proposed change only corrects typographical errors, corrects cross-references, makes address or name changes, or clarifies language of a proposed ordinance or resolution without changing its effect;               (iv) The proposed change is to a resolution or ordinance making a capital budget decision as provided in RCW 36.70A.120; or       (v) The proposed change is to a resolution or ordinance enacting a moratorium or interim control adopted under RCW 36.70A.390.             (3) This section is prospective in effect and does not apply to a comprehensive plan, development regulation, or amendment adopted before the effective date of this section.         Sec. 10. RCW 36.70A.130 and 1995 c 347 s 106 are each amended to read as follows:         (1) Each comprehensive land use plan and development regulations shall be subject to continuing ((evaluation and)) review and evaluation by the county or city that adopted them. Not later than September 1, 2002, and at least every five years thereafter, a county or city shall take action to review and, if needed, revise its comprehensive land use plan and development regulations to ensure that the plan and regulations are complying with the requirements of this chapter. The review and evaluation required by this subsection may be combined with the review required by subsection (3) of this section.                 Any amendment or revision to a comprehensive land use plan shall conform to this chapter, and any change to development regulations shall be consistent with and implement the comprehensive plan.               (2)(a) Each county and city shall establish and broadly disseminate to the public a public participation program identifying procedures whereby proposed amendments or revisions of the comprehensive plan are considered by the governing body of the county or city no more frequently than once every year except that amendments may be considered more frequently under the following circumstances:              (i) The initial adoption of a subarea plan; ((and))                   (ii) The adoption or amendment of a shoreline master program under the procedures set forth in chapter 90.58 RCW; and              (iii) The amendment of the capital facilities element of a comprehensive plan that occurs concurrently with the adoption or amendment of a county or city budget.           (b) Except as otherwise provided in (a) of this subsection, all proposals shall be considered by the governing body concurrently so the cumulative effect of the various proposals can be ascertained. However, after appropriate public participation a county or city may adopt amendments or revisions to its comprehensive plan that conform with this chapter whenever an emergency exists or to resolve an appeal of a comprehensive plan filed with a growth management hearings board or with the court.      (3) Each county that designates urban growth areas under RCW 36.70A.110 shall review, at least every ten years, its designated urban growth area or areas, and the densities permitted within both the incorporated and unincorporated portions of each urban growth area. In conjunction with this review by the county, each city located within an urban growth area shall review the densities permitted within its boundaries, and the extent to which the urban growth occurring within the county has located within each city and the unincorporated portions of the urban growth areas. The county comprehensive plan designating urban growth areas, and the densities permitted in the urban growth areas by the comprehensive plans of the county and each city located within the urban growth areas, shall be revised to accommodate the urban growth projected to occur in the county for the succeeding twenty-year period. The review required by this subsection may be combined with the review and evaluation required by section 25 of this act.     Sec. 11. RCW 36.70A.270 and 1996 c 325 s 1 are each amended to read as follows:                     Each growth management hearings board shall be governed by the following rules on conduct and procedure:                   (1) Any board member may be removed for inefficiency, malfeasance, and misfeasance in office, under specific written charges filed by the governor. The governor shall transmit such written charges to the member accused and the chief justice of the supreme court. The chief justice shall thereupon designate a tribunal composed of three judges of the superior court to hear and adjudicate the charges. Removal of any member of a board by the tribunal shall disqualify such member for reappointment.                  (2) Each board member shall receive reimbursement for travel expenses incurred in the discharge of his or her duties in accordance with RCW 43.03.050 and 43.03.060. If it is determined that the review boards shall operate on a full-time basis, each member shall receive an annual salary to be determined by the governor pursuant to RCW 43.03.040. If it is determined that a review board shall operate on a part-time basis, each member shall receive compensation pursuant to RCW 43.03.250, provided such amount shall not exceed the amount that would be set if they were a full-time board member. The principal office of each board shall be located by the governor within the jurisdictional boundaries of each board. The boards shall operate on either a part-time or full-time basis, as determined by the governor.        (3) Each board member shall not: (a) Be a candidate for or hold any other public office or trust; (b) engage in any occupation or business interfering with or inconsistent with his or her duty as a board member; and (c) for a period of one year after the termination of his or her board membership, act in a representative capacity before the board on any matter.      (4) A majority of each board shall constitute a quorum for making orders or decisions, adopting rules necessary for the conduct of its powers and duties, or transacting other official business, and may act even though one position of the board is vacant. One or more members may hold hearings and take testimony to be reported for action by the board when authorized by rule or order of the board. The board shall perform all the powers and duties specified in this chapter or as otherwise provided by law.                      (5) The board may appoint one or more hearing examiners to assist the board in its hearing function, to make conclusions of law and findings of fact and, if requested by the board, to make recommendations to the board for decisions in cases before the board. Such hearing examiners must have demonstrated knowledge of land use planning and law. The boards shall specify in their joint rules of practice and procedure, as required by subsection (7) of this section, the procedure and criteria to be employed for designating hearing examiners as a presiding officer. Hearing examiners selected by a board shall meet the requirements of subsection (3) of this section. The findings and conclusions of the hearing examiner shall not become final until they have been formally approved by the board. This authorization to use hearing examiners does not waive the requirement of RCW 36.70A.300 that final orders be issued within one hundred eighty days of board receipt of a petition.      (6) Each board shall make findings of fact and prepare a written decision in each case decided by it, and such findings and decision shall be effective upon being signed by two or more members of the board and upon being filed at the board's principal office, and shall be open for public inspection at all reasonable times.                (7) All proceedings before the board, any of its members, or a hearing examiner appointed by the board shall be conducted in accordance with such administrative rules of practice and procedure as the boards jointly prescribe. All three boards shall jointly meet to develop and adopt joint rules of practice and procedure, including rules regarding expeditious and summary disposition of appeals. The boards shall publish such rules and decisions they render and arrange for the reasonable distribution of the rules and decisions. Except as it conflicts with specific provisions of this chapter, the administrative procedure act, chapter 34.05 RCW, and specifically including the provisions of RCW 34.05.455 governing ex parte communications, shall govern the practice and procedure of the boards.      (8) A board member or hearing examiner is subject to disqualification under chapter 34.05 RCW. The joint rules of practice of the boards shall establish procedures by which a party to a hearing conducted before the board may file with the board a motion to disqualify, with supporting affidavit, against a board member or hearing examiner assigned to preside at the hearing.      (9) The members of the boards shall meet jointly on at least an annual basis with the objective of sharing information that promotes the goals and purposes of this chapter.               Sec. 12. RCW 36.70A.290 and 1995 c 347 s 109 are each amended to read as follows:      (1) All requests for review to a growth management hearings board shall be initiated by filing a petition that includes a detailed statement of issues presented for resolution by the board. The board shall render written decisions articulating the basis for its holdings. The board shall not issue advisory opinions on issues not presented to the board in the statement of issues, as modified by any prehearing order.      (2) All petitions relating to whether or not an adopted comprehensive plan, development regulation, or permanent amendment thereto, is in compliance with the goals and requirements of this chapter or chapter 90.58 or 43.21C RCW must be filed within sixty days after publication by the legislative bodies of the county or city.           (a) Except as provided in (c) of this subsection, the date of publication for a city shall be the date the city publishes the ordinance, or summary of the ordinance, adopting the comprehensive plan or development regulations, or amendment thereto, as is required to be published.               (b) Promptly after adoption, a county shall publish a notice that it has adopted the comprehensive plan or development regulations, or amendment thereto.           Except as provided in (c) of this subsection, for purposes of this section the date of publication for a county shall be the date the county publishes the notice that it has adopted the comprehensive plan or development regulations, or amendment thereto.                    (c) For local governments planning under RCW 36.70A.040, promptly after approval or disapproval of a local government̓s shoreline master program or amendment thereto by the department of ecology as provided in RCW 90.58.090, the local government shall publish a notice that the shoreline master program or amendment thereto has been approved or disapproved by the department of ecology. For purposes of this section, the date of publication for the adoption or amendment of a shoreline master program is the date the local government publishes notice that the shoreline master program or amendment thereto has been approved or disapproved by the department of ecology.              (3) Unless the board dismisses the petition as frivolous or finds that the person filing the petition lacks standing, or the parties have filed an agreement to have the case heard in superior court as provided in section 13 of this act, the board shall, within ten days of receipt of the petition, set a time for hearing the matter.                (4) The board shall base its decision on the record developed by the city, county, or the state and supplemented with additional evidence if the board determines that such additional evidence would be necessary or of substantial assistance to the board in reaching its decision.    (5) The board, shall consolidate, when appropriate, all petitions involving the review of the same comprehensive plan or the same development regulation or regulations.              NEW SECTION. Sec. 13. A new section is added to chapter 36.70A RCW to read as follows:         (1) The superior court may directly review a petition for review filed under RCW 36.70A.290 if all parties to the proceeding before the board have agreed to direct review in the superior court. The agreement of the parties shall be in writing and signed by all of the parties to the proceeding or their designated representatives. The agreement shall include the parties' agreement to proper venue as provided in RCW 36.70A.300(5). The parties shall file their agreement with the board within ten days after the date the petition is filed, or if multiple petitions have been filed and the board has consolidated the petitions pursuant to RCW 36.70A.300, within ten days after the board serves its order of consolidation.        (2) Within ten days of receiving the timely and complete agreement of the parties, the board shall file a certificate of agreement with the designated superior court and shall serve the parties with copies of the certificate. The superior court shall obtain exclusive jurisdiction over a petition when it receives the certificate of agreement. With the certificate of agreement the board shall also file the petition for review, any orders entered by the board, all other documents in the board's files regarding the action, and the written agreement of the parties.   (3) For purposes of a petition that is subject to direct review, the superior court's subject matter jurisdiction shall be equivalent to that of the board. Consistent with the requirements of the superior court civil rules, the superior court may consolidate a petition subject to direct review under this section with a separate action filed in the superior court.       (4)(a) Except as otherwise provided in (b) and (c) of this subsection, the provisions of RCW 36.70A.280 through 36.70A.330, which specify the nature and extent of board review, shall apply to the superior court's review.        (b) The superior court:            (i) Shall not have jurisdiction to directly review or modify an office of financial management population projection;            (ii) Except as otherwise provided in RCW 36.70A.300(2)(b), shall render its decision on the petition within one hundred eighty days of receiving the certification of agreement; and              (iii) Shall give a compliance hearing under RCW 36.70A.330(2) the highest priority of all civil matters before the court.                      (c) An aggrieved party may secure appellate review of a final judgment of the superior court under this section by the supreme court or the court of appeals. The review shall be secured in the manner provided by law for review of superior court decisions in other civil cases.        (5) If, following a compliance hearing, the court finds that the state agency, county, or city is not in compliance with the court's prior order, the court may use its remedial and contempt powers to enforce compliance.      (6) The superior court shall transmit a copy of its decision and order on direct review to the board, the department, and the governor. If the court has determined that a county or city is not in compliance with the provisions of this chapter, the governor may impose sanctions against the county or city in the same manner as if a board had recommended the imposition of sanctions as provided in RCW 36.70A.330.                 (7) After the court has assumed jurisdiction over a petition for review under this section, the superior court civil rules shall govern a request for intervention and all other procedural matters not specifically provided for in this section.      Sec. 14. RCW 36.70A.300 and 1995 c 347 s 110 are each amended to read as follows:      (1) The board shall issue a final order ((within one hundred eighty days of receipt of the petition for review, or, when multiple petitions are filed, within one hundred eighty days of receipt of the last petition that is consolidated. Such a final order)) that shall be based exclusively on whether or not a state agency, county, or city is in compliance with the requirements of this chapter, chapter 90.58 RCW as it relates to adoption or amendment of shoreline master programs, or chapter 43.21C RCW as it relates to adoption of plans, development regulations, and amendments thereto, ((adopted)) under RCW 36.70A.040 or chapter 90.58 RCW.                   (2)(a) Except as provided in (b) of this subsection, the final order shall be issued within one hundred eighty days of receipt of the petition for review, or, if multiple petitions are filed, within one hundred eighty days of receipt of the last petition that is consolidated.         (b) The board may extend the period of time for issuing a decision to enable the parties to settle the dispute if additional time is necessary to achieve a settlement, and (i) an extension is requested by all parties, or (ii) an extension is requested by the petitioner and respondent and the board determines that a negotiated settlement between the remaining parties could resolve significant issues in dispute. The request must be filed with the board not later than seven days before the date scheduled for the hearing on the merits of the petition. The board may authorize one or more extensions for up to ninety days each, subject to the requirements of this section.        (3) In the final order, the board shall either:      (a) Find that the state agency, county, or city is in compliance with the requirements of this chapter ((or)), chapter 90.58 RCW as it relates to the adoption or amendment of shoreline master programs, or chapter 43.21C RCW as it relates to adoption of plans, development regulations, and amendments thereto, under RCW 36.70A.040 or chapter 90.58 RCW; or            (b) Find that the state agency, county, or city is not in compliance with the requirements of this chapter ((or)), chapter 90.58 RCW as it relates to the adoption or amendment of shoreline master programs, or chapter 43.21C RCW as it relates to adoption of plans, development regulations, and amendments thereto, under RCW 36.70A.040 or chapter 90.58 RCW, in which case the board shall remand the matter to the affected state agency, county, or city ((and)). The board shall specify a reasonable time not in excess of one hundred eighty days, or such longer period as determined by the board in cases of unusual scope or complexity, within which the state agency, county, or city shall comply with the requirements of this chapter. The board may require periodic reports to the board on the progress the jurisdiction is making towards compliance.     (((2))) (4) Unless the board makes a determination of invalidity as provided in section 16 of this act, a finding of noncompliance and an order of remand shall not affect the validity of comprehensive plans and development regulations during the period of remand((, unless the board's final order also:          (a) Includes a determination, supported by findings of fact and conclusions of law, that the continued validity of the plan or regulation would substantially interfere with the fulfillment of the goals of this chapter; and                     (b) Specifies the particular part or parts of the plan or regulation that are determined to be invalid, and the reasons for their invalidity.           (3) A determination of invalidity shall:             (a) Be prospective in effect and shall not extinguish rights that vested under state or local law before the date of the board's order; and           (b) Subject any development application that would otherwise vest after the date of the board's order to the local ordinance or resolution that both is enacted in response to the order of remand and determined by the board pursuant to RCW 36.70A.330 to comply with the requirements of this chapter.                (4) If the ordinance that adopts a plan or development regulation under this chapter includes a savings clause intended to revive prior policies or regulations in the event the new plan or regulations are determined to be invalid, the board shall determine under subsection (2) of this section whether the prior policies or regulations are valid during the period of remand)).                 (5) Any party aggrieved by a final decision of the hearings board may appeal the decision to superior court as provided in RCW 34.05.514 or 36.01.050 within thirty days of the final order of the board.      NEW SECTION. Sec. 15. A new section is added to chapter 36.70A RCW to read as follows:         After the effective date of this section, all appeals of a decision taken from a final decision of a board shall be filed in the court of appeals for assignment by the chief presiding judge.                 NEW SECTION. Sec. 16. A new section is added to chapter 36.70A RCW to read as follows:                    (1) A board may determine that part or all of a comprehensive plan or development regulations are invalid if the board:                     (a) Makes a finding of noncompliance and issues an order of remand under RCW 36.70A.300;                     (b) Includes in the final order a determination, supported by findings of fact and conclusions of law, that the continued validity of part or parts of the plan or regulation would substantially interfere with the fulfillment of the goals of this chapter; and    (c) Specifies in the final order the particular part or parts of the plan or regulation that are determined to be invalid, and the reasons for their invalidity.                (2) A determination of invalidity is prospective in effect and does not extinguish rights that vested under state or local law before receipt of the board's order by the city or county. The determination of invalidity does not apply to a completed development permit application for a project that vested under state or local law before receipt of the board's order by the county or city or to related construction permits for that project.           (3)(a) Except as otherwise provided in subsection (2) of this section and (b) of this subsection, a development permit application not vested under state or local law before receipt of the board's order by the county or city vests to the local ordinance or resolution that is determined by the board not to substantially interfere with the fulfillment of the goals of this chapter.           (b) Even though the application is not vested under state or local law before receipt by the county or city of the board's order, a determination of invalidity does not apply to a development permit application for:      (i) A permit for construction by any owner, lessee, or contract purchaser of a single-family residence for his or her own use or for the use of his or her family on a lot existing before receipt by the county or city of the board's order, except as otherwise specifically provided in the board's order to protect the public health and safety;          (ii) A building permit and related construction permits for remodeling, tenant improvements, or expansion of an existing structure on a lot existing before receipt of the board's order by the county or city; and      (iii) A boundary line adjustment or a division of land that does not increase the number of buildable lots existing before receipt of the board's order by the county or city.               (4) If the ordinance that adopts a plan or development regulation under this chapter includes a savings clause intended to revive prior policies or regulations in the event the new plan or regulations are determined to be invalid, the board shall determine under subsection (1) of this section whether the prior policies or regulations are valid during the period of remand.      (5) A county or city subject to a determination of invalidity may adopt interim controls and other measures to be in effect until it adopts a comprehensive plan and development regulations that comply with the requirements of this chapter. A development permit application may vest under an interim control or measure upon determination by the board that the interim controls and other measures do not substantially interfere with the fulfillment of the goals of this chapter.        (6) A county or city subject to a determination of invalidity may file a motion requesting that the board clarify, modify, or rescind the order. The board shall expeditiously schedule a hearing on the motion. At the hearing on the motion, the parties may present information to the board to clarify the part or parts of the comprehensive plan or development regulations to which the final order applies. The board shall issue any supplemental order based on the information provided at the hearing not later than thirty days after the date of the hearing.           (7)(a) If a determination of invalidity has been made and the county or city has enacted an ordinance or resolution amending the invalidated part or parts of the plan or regulation or establishing interim controls on development affected by the order of invalidity, after a compliance hearing, the board shall modify or rescind the determination of invalidity if it determines under the standard in subsection (1) of this section that the plan or regulation, as amended or made subject to such interim controls, will no longer substantially interfere with the fulfillment of the goals of this chapter.                      (b) If the board determines that part or parts of the plan or regulation are no longer invalid as provided in this subsection, but does not find that the plan or regulation is in compliance with all of the requirements of this chapter, the board, in its order, may require periodic reports to the board on the progress the jurisdiction is making towards compliance.            NEW SECTION. Sec. 17. A board shall determine that part or all of a comprehensive plan or development regulations, or amendments thereto, are invalid only if, in addition to the requirements of section 16 of this act, the board finds that in adopting plans or development regulations, or amendments thereto, the county or city acted in an arbitrary and capricious manner.              Sec. 18. RCW 36.70A.305 and 1996 c 325 s 4 are each amended to read as follows:                     (1) The court shall provide expedited review of ((a determination of invalidity or)) an order ((effectuating)) that includes a determination of invalidity made or issued under RCW 36.70A.300 and section 16 of this act. The matter must be set for hearing within sixty days of the date set for submitting the board's record, absent a showing of good cause for a different date or a stipulation of the parties.              (2) A determination of substantial interference under this chapter must be based on evidence of actual development or development permit applications that would substantially interfere with the goals of this chapter, and not on hypothetical or speculative development potential.                      NEW SECTION. Sec. 19. A new section is added to chapter 36.70A RCW to read as follows:            A court, in reviewing an order of the board, may:      (1) Affirm the board's order;                  (2) Set aside the board's order, enjoin or stay the board's order, remand the matter for further proceedings, order the board to rescind or modify an order; or                    (3) Enter a declaratory judgment order of compliance or noncompliance, which may include a determination of invalidity if (a) the determination is supported by findings of fact and conclusions of law that the continued validity of part or parts of the plan or regulation would substantially interfere with the fulfillment of the goals of this chapter and (b) the court's order specifies the particular part or parts of the plan or regulation that are determined to be invalid, and the reasons for their invalidity.           Sec. 20. RCW 36.70A.320 and 1995 c 347 s 111 are each amended to read as follows:      (1) Except as provided in subsection (((2))) (5) of this section, comprehensive plans and development regulations, and amendments thereto, adopted under this chapter are presumed valid upon adoption.            (2) Except as otherwise provided in subsection (4) of this section, the burden is on the petitioner to demonstrate that any action taken by a state agency, county, or city under this chapter is not in compliance with the requirements of this chapter.         (3) In any petition under this chapter, the board, after full consideration of the petition, shall determine whether there is compliance with the requirements of this chapter. In making its determination, the board shall consider the criteria adopted by the department under RCW 36.70A.190(4). The board shall find compliance unless it ((finds by a preponderance of the evidence that the state agency, county, or city erroneously interpreted or applied this chapter)) determines that the action by the state agency, county, or city is clearly erroneous in view of the entire record before the board and in light of the goals and requirements of this chapter.      (((2))) (4) A county or city subject to a determination of invalidity made under RCW 36.70A.300 or section 16 of this act has the burden of demonstrating that the ordinance or resolution it has enacted in response to the determination of invalidity will no longer substantially interfere with the fulfillment of the goals of this chapter under the standard in section 16(1) of this act.                    (5) The shoreline element of a comprehensive plan and the applicable development regulations adopted by a county or city shall take effect as provided in chapter 90.58 RCW.       Sec. 21. RCW 36.70A.330 and 1995 c 347 s 112 are each amended to read as follows:                 (1) After the time set for complying with the requirements of this chapter under RCW ((36.70A.300(1)(b))) 36.70A.300(3)(b) has expired, or at an earlier time upon the motion of a county or city subject to a determination of invalidity under RCW 36.70A.300, the board shall set a hearing for the purpose of determining whether the state agency, county, or city is in compliance with the requirements of this chapter.                       (2) The board shall conduct a hearing and issue a finding of compliance or noncompliance with the requirements of this chapter and with any compliance schedule established by the board in its final order. A person with standing to challenge the legislation enacted in response to the board's final order may participate in the hearing along with the petitioner and the state agency, ((city, or)) county, or city. A hearing under this subsection shall be given the highest priority of business to be conducted by the board, and a finding shall be issued within forty-five days of the filing of the motion under subsection (1) of this section with the board. The board shall issue any order necessary to make adjustments to the compliance schedule and set additional hearings as provided in subsection (5) of this section.         (3) If the board after a compliance hearing finds that the state agency, county, or city is not in compliance, the board shall transmit its finding to the governor. The board may recommend to the governor that the sanctions authorized by this chapter be imposed. The board shall take into consideration the county's or city's efforts to meet its compliance schedule in making the decision to recommend sanctions to the governor.                    (4) In a compliance hearing upon petition of a party, the board shall also reconsider its final order and decide((:                      (a) If a determination of invalidity has been made, whether such a determination should be rescinded or modified under the standards in RCW 36.70A.300(2); or      (b))), if no determination of invalidity has been made, whether one now should be made ((under the standards in RCW 36.70A.300(2))) under section 16 of this act.          (5) The board shall schedule additional hearings as appropriate pursuant to subsections (1) and (2) of this section.               NEW SECTION. Sec. 22. A new section is added to chapter 36.70A RCW to read as follows:                    A county or city subject to an order of invalidity issued before the effective date of section 14 of this act, by motion may request the board to review the order of invalidity in light of the section 14, chapter . . ., Laws of 1997 (section 14 of this act) amendments to RCW 36.70A.300, the section 21, chapter . . ., Laws of 1997 (section 21 of this act) amendments to RCW 36.70A.330, and section 16 of this act. If a request is made, the board shall rescind or modify the order of invalidity as necessary to make it consistent with the section 14, chapter . . ., Laws of 1997 (section 14 of this act) amendments to RCW 36.70A.300, and to the section 21, chapter . . ., Laws of 1997 (section 21 of this act) amendments to RCW 36.70A.330, and section 16 of this act.      NEW SECTION. Sec. 23. A new section is added to chapter 36.70A RCW to read as follows:         (1) A county or a city may use a variety of innovative zoning techniques in areas designated as agricultural lands of long-term commercial significance under RCW 36.70A.170. The innovative zoning techniques should be designed to conserve agricultural lands and encourage the agricultural economy. A county or city should encourage nonagricultural uses to be limited to lands with poor soils or otherwise not suitable for agricultural purposes.              (2) Innovative zoning techniques a county or city may consider include, but are not limited to:      (a) Agricultural zoning, which limits the density of development and restricts or prohibits nonfarm uses of agricultural land;       (b) Cluster zoning, which allows new development on one portion of the land, leaving the remainder in agricultural or open space uses;       (c) Large lot zoning, which establishes as a minimum lot size the amount of land necessary to achieve a successful farming practice;           (d) Quarter/quarter zoning, which permits one residential dwelling on a one-acre minimum lot for each one-sixteenth of a section of land; and                (e) Sliding scale zoning, which allows the number of lots for single-family residential purposes with a minimum lot size of one acre to increase inversely as the size of the total acreage increases.                     Sec. 24. RCW 36.70A.110 and 1995 c 400 s 2 are each amended to read as follows:            (1) Each county that is required or chooses to plan under RCW 36.70A.040 shall designate an urban growth area or areas within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county shall be included within an urban growth area. An urban growth area may include more than a single city. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth whether or not the urban growth area includes a city, or is adjacent to territory already characterized by urban growth, or is a designated new fully contained community as defined by RCW 36.70A.350.           (2) Based upon the growth management population projection made for the county by the office of financial management, ((the urban growth areas in)) the county and each city within the county shall include areas and densities sufficient to permit the urban growth that is projected to occur in the county or city for the succeeding twenty-year period. Each urban growth area shall permit urban densities and shall include greenbelt and open space areas. An urban growth area determination may include a reasonable land market supply factor and shall permit a range of urban densities and uses. In determining this market factor, cities and counties may consider local circumstances. Cities and counties have discretion in their comprehensive plans to make many choices about accommodating growth.               Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall begin this consultation with each city located within its boundaries. The county shall attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county shall justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.                   (3) Urban growth should be located first in areas already characterized by urban growth that have adequate existing public facility and service capacities to serve such development, second in areas already characterized by urban growth that will be served adequately by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and third in the remaining portions of the urban growth areas. Urban growth may also be located in designated new fully contained communities as defined by RCW 36.70A.350.                 (4) In general, cities are the units of local government most appropriate to provide urban governmental services. In general, it is not appropriate that urban governmental services be extended to or expanded in rural areas except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development.                   (5) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) shall adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and RCW 36.70A.110. Such action may be appealed to the appropriate growth management hearings board under RCW 36.70A.280. Final urban growth areas shall be adopted at the time of comprehensive plan adoption under this chapter.                (6) Each county shall include designations of urban growth areas in its comprehensive plan.                    NEW SECTION. Sec. 25. A new section is added to chapter 36.70A RCW to read as follows:                  (1) Subject to the limitations in subsection (7) of this section, a county shall adopt, in consultation with its cities, county-wide planning policies to establish a review and evaluation program. This program shall be in addition to the requirements of RCW 36.70A.110, 36.70A.130, and 36.70A.210. In developing and implementing the review and evaluation program required by this section, the county and its cities shall consider information from other appropriate jurisdictions and sources. The purpose of the review and evaluation program shall be to:        (a) Determine whether a county and its cities are achieving urban densities within urban growth areas by comparing growth and development assumptions, targets, and objectives contained in the county-wide planning policies and the county and city comprehensive plans with actual growth and development that has occurred in the county and its cities; and      (b) Identify reasonable measures, other than adjusting urban growth areas, that will be taken to comply with the requirements of this chapter.              (2) The review and evaluation program shall:                   (a) Encompass land uses and activities both within and outside of urban growth areas and provide for annual collection of data on urban and rural land uses, development, critical areas, and capital facilities to the extent necessary to determine the quantity and type of land suitable for development, both for residential and employment-based activities;           (b) Provide for evaluation of the data collected under (a) of this subsection every five years as provided in subsection (3) of this section. The first evaluation shall be completed not later than September 1, 2002. The county and its cities may establish in the county-wide planning policies indicators, benchmarks, and other similar criteria to use in conducting the evaluation;              (c) Provide for methods to resolve disputes among jurisdictions relating to the county-wide planning policies required by this section and procedures to resolve inconsistencies in collection and analysis of data; and     (d) Provide for the amendment of the county-wide policies and county and city comprehensive plans as needed to remedy an inconsistency identified through the evaluation required by this section, or to bring these policies into compliance with the requirements of this chapter.                   (3) At a minimum, the evaluation component of the program required by subsection (1) of this section shall:            (a) Determine whether there is sufficient suitable land to accommodate the county-wide population projection established for the county pursuant to RCW 43.62.035 and the subsequent population allocations within the county and between the county and its cities and the requirements of RCW 36.70A.110;      (b) Determine the actual density of housing that has been constructed and the actual amount of land developed for commercial and industrial uses within the urban growth area since the adoption of a comprehensive plan under this chapter or since the last periodic evaluation as required by subsection (1) of this section; and      (c) Based on the actual density of development as determined under (b) of this subsection, review commercial, industrial, and housing needs by type and density range to determine the amount of land needed for commercial, industrial, and housing for the remaining portion of the twenty-year planning period used in the most recently adopted comprehensive plan.       (4) If the evaluation required by subsection (3) of this section demonstrates an inconsistency between what has occurred since the adoption of the county-wide planning policies and the county and city comprehensive plans and development regulations and what was envisioned in those policies and plans and the planning goals and the requirements of this chapter, as the inconsistency relates to the evaluation factors specified in subsection (3) of this section, the county and its cities shall adopt and implement measures that are reasonably likely to increase consistency during the subsequent five-year period. If necessary, a county, in consultation with its cities as required by RCW 36.70A.210, shall adopt amendments to county-wide planning policies to increase consistency. The county and its cities shall annually monitor the measures adopted under this subsection to determine their effect and may revise or rescind them as appropriate.         (5)(a) Not later than July 1, 1998, the department shall prepare a list of methods used by counties and cities in carrying out the types of activities required by this section. The department shall provide this information and appropriate technical assistance to counties and cities required to or choosing to comply with the provisions of this section.      (b) By December 31, 2007, the department shall submit to the appropriate committees of the legislature a report analyzing the effectiveness of the activities described in this section in achieving the goals envisioned by the county-wide planning policies and the comprehensive plans and development regulations of the counties and cities.             (6) From funds appropriated by the legislature for this purpose, the department shall provide grants to counties, cities, and regional planning organizations required under subsection (7) of this section to conduct the review and perform the evaluation required by this section.                     (7) The provisions of this section shall apply to counties, and the cities within those counties, that were greater than one hundred fifty thousand in population in 1995 as determined by office of financial management population estimates and that are located west of the crest of the Cascade mountain range. Any other county planning under RCW 36.70A.040 may carry out the review, evaluation, and amendment programs and procedures as provided in this section.               Sec. 26. RCW 43.62.035 and 1995 c 162 s 1 are each amended to read as follows:        The office of financial management shall determine the population of each county of the state annually as of April 1st of each year and on or before July 1st of each year shall file a certificate with the secretary of state showing its determination of the population for each county. The office of financial management also shall determine the percentage increase in population for each county over the preceding ten-year period, as of April 1st, and shall file a certificate with the secretary of state by July 1st showing its determination. At least once every ((ten)) five years or upon the availability of decennial census data, whichever is later, the office of financial management shall prepare twenty-year growth management planning population projections required by RCW 36.70A.110 for each county that adopts a comprehensive plan under RCW 36.70A.040 and shall review these projections with such counties and the cities in those counties before final adoption. The county and its cities may provide to the office such information as they deem relevant to the office's projection, and the office shall consider and comment on such information before adoption. Each projection shall be expressed as a reasonable range developed within the standard state high and low projection. The middle range shall represent the office's estimate of the most likely population projection for the county. If any city or county believes that a projection will not accurately reflect actual population growth in a county, it may petition the office to revise the projection accordingly. The office shall complete the first set of ranges for every county by December 31, 1995.                     A comprehensive plan adopted or amended before December 31, 1995, shall not be considered to be in noncompliance with the twenty-year growth management planning population projection if the projection used in the comprehensive plan is in compliance with the range later adopted under this section.               NEW SECTION. Sec. 27. In order to ensure that there will be no unfunded responsibilities imposed on counties and cities, if specific funding for the purposes of section 25 of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, section 25 of this act is null and void.                    Sec. 28. RCW 36.70A.500 and 1995 c 347 s 116 are each amended to read as follows:          (1) The department of community, trade, and economic development shall provide management services for the fund created by RCW 36.70A.490. The department ((by rule)) shall establish procedures for fund management. The department shall encourage participation in the grant program by other public agencies. The department shall develop the grant criteria, monitor the grant program, and select grant recipients in consultation with state agencies participating in the grant program through the provision of grant funds or technical assistance.               (2) A grant may be awarded to a county or city that is required to or has chosen to plan under RCW 36.70A.040 and that is qualified pursuant to this section. The grant shall be provided to assist a county or city in paying for the cost of preparing ((a detailed environmental impact statement)) an environmental analysis under chapter 43.21C RCW, that is integrated with a comprehensive plan ((or)), subarea plan ((and)), plan element, county-wide planning policy, development regulation((s)), monitoring program, or other planning activity adopted under or implementing this chapter that:                 (a) Improves the process for project permit review while maintaining environmental quality; or    (b) Encourages use of plans and information developed for purposes of complying with this chapter to satisfy requirements of other state programs.        (3) In order to qualify for a grant, a county or city shall:        (a) Demonstrate that it will prepare an environmental analysis pursuant to chapter 43.21C RCW and subsection (2) of this section that is integrated with a comprehensive plan ((or)), subarea plan ((and)), plan element, county-wide planning policy, development regulations, monitoring program, or other planning activity adopted under or implementing this chapter;       (b) Address environmental impacts and consequences, alternatives, and mitigation measures in sufficient detail to allow the analysis to be adopted in whole or in part by ((subsequent)) applicants for development permits within the geographic area analyzed in the plan;        (c) Demonstrate that procedures for review of development permit applications will be based on the integrated plans and environmental analysis;           (d) Include mechanisms ((in the plan)) to monitor the consequences of growth as it occurs in the plan area and ((provide ongoing)) to use the resulting data to update the plan, policy, or implementing mechanisms and associated environmental analysis;             (((d) Be making)) (e) Demonstrate substantial progress towards compliance with the requirements of this chapter. A county or city that is more than six months out of compliance with a requirement of this chapter is deemed not to be making substantial progress towards compliance; and              (((e))) (f) Provide local funding, which may include financial participation by the private sector.    (4) In awarding grants, the department shall give preference to proposals that include one or more of the following elements:        (a) Financial participation by the private sector, or a public/private partnering approach;      (b) ((Comprehensive and subarea plan proposals that are designed to identify and monitor)) Identification and monitoring of system capacities for elements of the built environment, and to the extent appropriate, of the natural environment;              (c) Coordination with state, federal, and tribal governments in project review;        (d) Furtherance of important state objectives related to economic development, protection of areas of state-wide significance, and siting of essential public facilities;                (e) Programs to improve the efficiency and effectiveness of the permitting process by greater reliance on integrated plans and prospective environmental analysis;           (((d))) (f) Programs for effective citizen and neighborhood involvement that contribute to greater ((certainty)) likelihood that planning decisions ((will)) can be implemented with community support; and             (((e) Plans that)) (g) Programs to identify environmental impacts and establish mitigation measures that provide effective means to satisfy concurrency requirements and establish project consistency with the plans.      (5) If the local funding includes funding provided by other state functional planning programs, including open space planning and watershed or basin planning, the functional plan shall be integrated into and be consistent with the comprehensive plan.         (6) State agencies shall work with grant recipients to facilitate state and local project review processes that will implement the projects receiving grants under this section.        Sec. 29. RCW 43.155.070 and 1996 c 168 s 3 are each amended to read as follows:      (1) To qualify for loans or pledges under this chapter the board must determine that a local government meets all of the following conditions:              (a) The city or county must be imposing a tax under chapter 82.46 RCW at a rate of at least one-quarter of one percent;                      (b) The local government must have developed a long-term plan for financing public works needs;                    (c) The local government must be using all local revenue sources which are reasonably available for funding public works, taking into consideration local employment and economic factors; and      (d) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town that is required or chooses to plan under RCW 36.70A.040 must have adopted a comprehensive plan in conformance with the requirements of chapter 36.70A RCW, after it is required that the comprehensive plan be adopted, and must have adopted development regulations in conformance with the requirements of chapter 36.70A RCW, after it is required that development regulations be adopted.      (2) The board shall develop a priority process for public works projects as provided in this section. The intent of the priority process is to maximize the value of public works projects accomplished with assistance under this chapter. The board shall attempt to assure a geographical balance in assigning priorities to projects. The board shall consider at least the following factors in assigning a priority to a project:               (a) Whether the local government receiving assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;                (b) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;       (c) The cost of the project compared to the size of the local government and amount of loan money available;      (d) The number of communities served by or funding the project;        (e) Whether the project is located in an area of high unemployment, compared to the average state unemployment;             (f) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards, including the cost of extending existing service to such a system;               (g) The relative benefit of the project to the community, considering the present level of economic activity in the community and the existing local capacity to increase local economic activity in communities that have low economic growth; and      (h) Other criteria that the board considers advisable.             (3) Existing debt or financial obligations of local governments shall not be refinanced under this chapter. Each local government applicant shall provide documentation of attempts to secure additional local or other sources of funding for each public works project for which financial assistance is sought under this chapter.            (4) Before November 1 of each year, the board shall develop and submit to the appropriate fiscal committees of the senate and house of representatives a description of the loans made under RCW 43.155.065, 43.155.068, and subsection (7) of this section during the preceding fiscal year and a prioritized list of projects which are recommended for funding by the legislature, including one copy to the staff of each of the committees. The list shall include, but not be limited to, a description of each project and recommended financing, the terms and conditions of the loan or financial guarantee, the local government jurisdiction and unemployment rate, demonstration of the jurisdiction's critical need for the project and documentation of local funds being used to finance the public works project. The list shall also include measures of fiscal capacity for each jurisdiction recommended for financial assistance, compared to authorized limits and state averages, including local government sales taxes; real estate excise taxes; property taxes; and charges for or taxes on sewerage, water, garbage, and other utilities.           (5) The board shall not sign contracts or otherwise financially obligate funds from the public works assistance account before the legislature has appropriated funds for a specific list of public works projects. The legislature may remove projects from the list recommended by the board. The legislature shall not change the order of the priorities recommended for funding by the board.                  (6) Subsection (5) of this section does not apply to loans made under RCW 43.155.065, 43.155.068, and subsection (7) of this section.               (7)(a) Loans made for the purpose of capital facilities plans shall be exempted from subsection (5) of this section. In no case shall the total amount of funds utilized for capital facilities plans and emergency loans exceed the limitation in RCW 43.155.065.         (b) For the purposes of this section "capital facilities plans" means those plans required by the growth management act, chapter 36.70A RCW, and plans required by the public works board for local governments not subject to the growth management act.             (8) To qualify for loans or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70.95 RCW.                    Sec. 30. RCW 70.146.070 and 1991 sp.s. c 32 s 24 are each amended to read as follows:     When making grants or loans for water pollution control facilities, the department shall consider the following:      (1) The protection of water quality and public health;            (2) The cost to residential ratepayers if they had to finance water pollution control facilities without state assistance;         (3) Actions required under federal and state permits and compliance orders;        (4) The level of local fiscal effort by residential ratepayers since 1972 in financing water pollution control facilities;      (5) The extent to which the applicant county or city, or if the applicant is another public body, the extent to which the county or city in which the applicant public body is located, has established programs to mitigate nonpoint pollution of the surface or subterranean water sought to be protected by the water pollution control facility named in the application for state assistance; and        (6) The recommendations of the Puget Sound ((water quality authority)) action team and any other board, council, commission, or group established by the legislature or a state agency to study water pollution control issues in the state.           Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town that is required or chooses to plan under RCW 36.70A.040 may not receive a grant or loan for water pollution control facilities unless it has adopted a comprehensive plan in conformance with the requirements of chapter 36.70A RCW, after it is required that the comprehensive plan be adopted, or unless it has adopted development regulations in conformance with the requirements of chapter 36.70A RCW, after it is required that development regulations be adopted.            Sec. 31. RCW 84.34.020 and 1992 c 69 s 4 are each amended to read as follows:               As used in this chapter, unless a different meaning is required by the context:      (1) "Open space land" means (a) any land area so designated by an official comprehensive land use plan adopted by any city or county and zoned accordingly(([,])), or (b) any land area, the preservation of which in its present use would (i) conserve and enhance natural or scenic resources, or (ii) protect streams or water supply, or (iii) promote conservation of soils, wetlands, beaches or tidal marshes, or (iv) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries or other open space, or (v) enhance recreation opportunities, or (vi) preserve historic sites, or (vii) preserve visual quality along highway, road, and street corridors or scenic vistas, or (viii) retain in its natural state tracts of land not less than one acre situated in an urban area and open to public use on such conditions as may be reasonably required by the legislative body granting the open space classification, or (c) any land meeting the definition of farm and agricultural conservation land under subsection (8) of this section. As a condition of granting open space classification, the legislative body may not require public access on land classified under (b)(iii) of this subsection for the purpose of promoting conservation of wetlands.            (2) "Farm and agricultural land" means ((either)):                 (a) Any parcel of land that is twenty or more acres or multiple parcels of land that are contiguous and total twenty or more acres:                     (i) Devoted primarily to the production of livestock or agricultural commodities for commercial purposes((,));       (ii) Enrolled in the federal conservation reserve program or its successor administered by the United States department of agriculture((,)); or            (iii) Other similar commercial activities as may be established by rule ((following consultation with the advisory committee established in section 19 of this act));                       (b) Any parcel of land that is five acres or more but less than twenty acres devoted primarily to agricultural uses, which has produced a gross income from agricultural uses equivalent to, as of January 1, 1993((,)):           (i) One hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993((,)); and            (ii) On or after January 1, 1993, two hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter;        (c) Any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income as of January 1, 1993, of:          (i) One thousand dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993((,)); and           (ii) On or after January 1, 1993, fifteen hundred dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter.Parcels of land described in (b)(i) and (c)(i) of this subsection shall, upon any transfer of the property excluding a transfer to a surviving spouse, be subject to the limits of (b)(ii) and (c)(ii) of this subsection.      Agricultural lands shall also include such incidental uses as are compatible with agricultural purposes, including wetlands preservation, provided such incidental use does not exceed twenty percent of the classified land and the land on which appurtenances necessary to the production, preparation, or sale of the agricultural products exist in conjunction with the lands producing such products. Agricultural lands shall also include any parcel of land of one to five acres, which is not contiguous, but which otherwise constitutes an integral part of farming operations being conducted on land qualifying under this section as "farm and agricultural lands"; ((or))                  (d) The land on which housing for employees and the principal place of residence of the farm operator or owner of land classified pursuant to (a) of this subsection is sited if: The housing or residence is on or contiguous to the classified parcel; and the use of the housing or the residence is integral to the use of the classified land for agricultural purposes;                (e) Any parcel of land designated as agricultural land under RCW 36.70A.170; or   (f) Any parcel of land not within an urban growth area zoned as agricultural land under a comprehensive plan adopted under chapter 36.70A RCW.    (3) "Timber land" means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres which is or are devoted primarily to the growth and harvest of forest crops for commercial purposes. A timber management plan shall be filed with the county legislative authority at the time (a) an application is made for classification as timber land pursuant to this chapter or (b) when a sale or transfer of timber land occurs and a notice of classification continuance is signed. Timber land means the land only.     (4) "Current" or "currently" means as of the date on which property is to be listed and valued by the assessor.      (5) "Owner" means the party or parties having the fee interest in land, except that where land is subject to real estate contract "owner" shall mean the contract vendee.    (6) "Contiguous" means land adjoining and touching other property held by the same ownership. Land divided by a public road, but otherwise an integral part of a farming operation, shall be considered contiguous.                       (7) "Granting authority" means the appropriate agency or official who acts on an application for classification of land pursuant to this chapter.      (8) "Farm and agricultural conservation land" means either:                 (a) Land that was previously classified under subsection (2) of this section, that no longer meets the criteria of subsection (2) of this section, and that is reclassified under subsection (1) of this section; or      (b) Land that is traditional farmland that is not classified under chapter 84.33 or 84.34 RCW, that has not been irrevocably devoted to a use inconsistent with agricultural uses, and that has a high potential for returning to commercial agriculture.         Sec. 32. RCW 84.34.060 and 1992 c 69 s 8 are each amended to read as follows:               In determining the true and fair value of open space land and timber land, which has been classified as such under the provisions of this chapter, the assessor shall consider only the use to which such property and improvements is currently applied and shall not consider potential uses of such property. The assessed valuation of open space land shall not be less than the minimum value per acre of classified farm and agricultural land except that the assessed valuation of open space land may be valued based on the public benefit rating system adopted under RCW 84.34.055: PROVIDED FURTHER, That timber land shall be valued according to chapter 84.33 RCW. In valuing any tract or parcel of real property designated and zoned under a comprehensive plan adopted under chapter 36.70A RCW as agricultural, forest, or open space land, the appraisal shall not be based on similar sales of parcels that have been converted to nonagricultural, nonforest, or nonopen-space uses within five years after the sale.             Sec. 33. RCW 84.34.065 and 1992 c 69 s 9 are each amended to read as follows:              The true and fair value of farm and agricultural land shall be determined by consideration of the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years, capitalized at indicative rates. The earning or productive capacity of farm and agricultural lands shall be the "net cash rental", capitalized at a "rate of interest" charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes. The current use value of land under RCW 84.34.020(2)(d) shall be established as: The prior year's average value of open space farm and agricultural land used in the county plus the value of land improvements such as septic, water, and power used to serve the residence. This shall not be interpreted to require the assessor to list improvements to the land with the value of the land.      In valuing any tract or parcel of real property designated and zoned under a comprehensive plan adopted under chapter 36.70A RCW as agricultural, forest, or open space land, the appraisal shall not be based on similar sales of parcels that have been converted to nonagricultural, nonforest, or nonopen-space uses within five years after the sale.                     For the purposes of the above computation:      (1) The term "net cash rental" shall mean the average rental paid on an annual basis, in cash, for the land being appraised and other farm and agricultural land of similar quality and similarly situated that is available for lease for a period of at least three years to any reliable person without unreasonable restrictions on its use for production of agricultural crops. There shall be allowed as a deduction from the rental received or computed any costs of crop production charged against the landlord if the costs are such as are customarily paid by a landlord. If "net cash rental" data is not available, the earning or productive capacity of farm and agricultural lands shall be determined by the cash value of typical or usual crops grown on land of similar quality and similarly situated averaged over not less than five years. Standard costs of production shall be allowed as a deduction from the cash value of the crops.          The current "net cash rental" or "earning capacity" shall be determined by the assessor with the advice of the advisory committee as provided in RCW 84.34.145, and through a continuing internal study, assisted by studies of the department of revenue. This net cash rental figure as it applies to any farm and agricultural land may be challenged before the same boards or authorities as would be the case with regard to assessed values on general property.      (2) The term "rate of interest" shall mean the rate of interest charged by the farm credit administration and other large financial institutions regularly making loans secured by farm and agricultural lands through mortgages or similar legal instruments, averaged over the immediate past five years.       The "rate of interest" shall be determined annually by a rule adopted by the department of revenue and such rule shall be published in the state register not later than January 1 of each year for use in that assessment year. The department of revenue determination may be appealed to the state board of tax appeals within thirty days after the date of publication by any owner of farm or agricultural land or the assessor of any county containing farm and agricultural land.            (3) The "component for property taxes" shall be a figure obtained by dividing the assessed value of all property in the county into the property taxes levied within the county in the year preceding the assessment and multiplying the quotient obtained by one hundred.       Sec. 34. RCW 84.40.030 and 1994 c 124 s 20 are each amended to read as follows:          All property shall be valued at one hundred percent of its true and fair value in money and assessed on the same basis unless specifically provided otherwise by law.           Taxable leasehold estates shall be valued at such price as they would bring at a fair, voluntary sale for cash without any deductions for any indebtedness owed including rentals to be paid.                      The true and fair value of real property for taxation purposes (including property upon which there is a coal or other mine, or stone or other quarry) shall be based upon the following criteria:                 (1) Any sales of the property being appraised or similar properties with respect to sales made within the past five years. The appraisal shall be consistent with the comprehensive land use plan, development regulations under chapter 36.70A RCW, zoning, and any other governmental policies or practices in effect at the time of appraisal that affect the use of property, as well as physical and environmental influences. The appraisal shall also take into account: (a) In the use of sales by real estate contract as similar sales, the extent, if any, to which the stated selling price has been increased by reason of the down payment, interest rate, or other financing terms; and (b) the extent to which the sale of a similar property actually represents the general effective market demand for property of such type, in the geographical area in which such property is located. Sales involving deed releases or similar seller-developer financing arrangements shall not be used as sales of similar property.         (2) In addition to sales as defined in subsection (1), consideration may be given to cost, cost less depreciation, reconstruction cost less depreciation, or capitalization of income that would be derived from prudent use of the property. In the case of property of a complex nature, or being used under terms of a franchise from a public agency, or operating as a public utility, or property not having a record of sale within five years and not having a significant number of sales of similar property in the general area, the provisions of this subsection (2) shall be the dominant factors in valuation. When provisions of this subsection (2) are relied upon for establishing values the property owner shall be advised upon request of the factors used in arriving at such value.     (3) In valuing any tract or parcel of real property, the value of the land, exclusive of structures thereon shall be determined; also the value of structures thereon, but the valuation shall not exceed the value of the total property as it exists. In valuing agricultural land, growing crops shall be excluded.                  (4) In valuing any tract or parcel of real property designated and zoned under a comprehensive plan adopted under chapter 36.70A RCW as agricultural, forest, or open space land, the appraisal shall not be based on similar sales of parcels that have been converted to nonagricultural, nonforest, or nonopen-space uses within five years after the sale.             Sec. 35. RCW 90.60.030 and 1995 c 347 s 603 are each amended to read as follows:        The permit assistance center is established within the department. The center shall:            (1) Publish and keep current one or more handbooks containing lists and explanations of all permit laws. ((The center shall coordinate with the business assistance center in providing and maintaining this information to applicants and others.)) To the extent possible, the handbook shall include relevant federal and tribal laws. A state agency or local government shall provide a reasonable number of copies of application forms, statutes, ordinances, rules, handbooks, and other informational material requested by the center and shall otherwise fully cooperate with the center. The center shall seek the cooperation of relevant federal agencies and tribal governments;      (2) Establish, and make known, a point of contact for distribution of the handbook and advice to the public as to its interpretation in any given case;  (3) Work closely and cooperatively with the business license center ((and the business assistance center)) in providing efficient and nonduplicative service to the public;        (4) Seek the assignment of employees from the permit agencies listed under RCW 90.60.020(6)(a) to serve on a rotating basis in staffing the center; ((and))                   (5) Collect and disseminate information to public and private entities on federal, state, local, and tribal government programs that rely on private professional expertise to assist governmental agencies in project permit review; and         (6) Provide an annual report to the legislature on potential conflicts and perceived inconsistencies among existing statutes. The first report shall be submitted to the appropriate standing committees of the house of representatives and senate by December 1, 1996.   Sec. 36. RCW 35A.14.295 and 1967 ex.s. c 119 s 35A.14.295 are each amended to read as follows:      ((When there is, within)) (1) The legislative body of a code city may resolve to annex territory containing residential property owners to the city if there is within the city, unincorporated territory:      (a) Containing less than one hundred acres and having at least eighty percent of the boundaries of such area contiguous to the code city((, the legislative body may resolve to annex such territory to the code city)); or      (b) Of any size and having at least eighty percent of the boundaries of such area contiguous to the city if such area existed before June 30, 1994, and is within the same county and within the same urban growth area designated under RCW 36.70A.110, and the city was planning under chapter 36.70A RCW as of June 30, 1994.          (2) The resolution shall describe the boundaries of the area to be annexed, state the number of voters residing therein as nearly as may be, and set a date for a public hearing on such resolution for annexation. Notice of the hearing shall be given by publication of the resolution at least once a week for two weeks prior to the date of the hearing, in one or more newspapers of general circulation within the code city and one or more newspapers of general circulation within the area to be annexed.             (3) For purposes of subsection (1)(b) of this section, territory bounded by a river, lake, or other body of water is considered contiguous to a city that is also bounded by the same river, lake, or other body of water.           NEW SECTION. Sec. 37. A new section is added to chapter 35.13 RCW to read as follows:          (1) The legislative body of a city or town planning under chapter 36.70A RCW as of June 30, 1994, may resolve to annex territory to the city or town if there is, within the city or town, unincorporated territory containing residential property owners within the same county and within the same urban growth area designated under RCW 36.70A.110 as the city or town:              (a) Containing less than one hundred acres and having at least eighty percent of the boundaries of such area contiguous to the city or town if such area existed before June 30, 1994; or                  (b) Of any size and having at least eighty percent of the boundaries of the area contiguous to the city if the area existed before June 30, 1994.                  (2) The resolution shall describe the boundaries of the area to be annexed, state the number of voters residing in the area as nearly as may be, and set a date for a public hearing on the resolution for annexation. Notice of the hearing shall be given by publication of the resolution at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the city or town and one or more newspapers of general circulation within the area to be annexed.      (3) For purposes of subsection (1)(b) of this section, territory bounded by a river, lake, or other body of water is considered contiguous to a city that is also bounded by the same river, lake, or other body of water.            Sec. 38. RCW 35.13.174 and 1973 1st ex.s. c 164 s 17 are each amended to read as follows:             Upon receipt by the board of county commissioners of a determination by a majority of the review board favoring annexation of the proposed area that has been initiated by resolution pursuant to RCW 35.13.015 by the city or town legislative body, the board of county commissioners, or the city or town legislative body for any city or town within an urban growth area designated under RCW 36.70A.110, shall fix a date on which an annexation election shall be held, which date will be not less than thirty days nor more than sixty days thereafter.         Sec. 39. RCW 36.93.170 and 1989 c 84 s 5 are each amended to read as follows:          In reaching a decision on a proposal or an alternative, the board shall consider the factors affecting such proposal, which shall include, but not be limited to the following:              (1) Population and territory; population density; land area and land uses; comprehensive plans and zoning, as adopted under chapter 35.63, 35A.63, or 36.70 RCW; comprehensive plans and development regulations adopted under chapter 36.70A RCW; applicable service agreements entered into under chapter 36.115 or 39.34 RCW; applicable interlocal annexation agreements between a county and its cities; per capita assessed valuation; topography, natural boundaries and drainage basins, proximity to other populated areas; the existence and preservation of prime agricultural soils and productive agricultural uses; the likelihood of significant growth in the area and in adjacent incorporated and unincorporated areas during the next ten years; location and most desirable future location of community facilities;                (2) Municipal services; need for municipal services; effect of ordinances, governmental codes, regulations and resolutions on existing uses; present cost and adequacy of governmental services and controls in area; prospects of governmental services from other sources; probable future needs for such services and controls; probable effect of proposal or alternative on cost and adequacy of services and controls in area and adjacent area; the effect on the finances, debt structure, and contractual obligations and rights of all affected governmental units; and                   (3) The effect of the proposal or alternative on adjacent areas, on mutual economic and social interests, and on the local governmental structure of the county.                     The provisions of chapter 43.21C RCW, State Environmental Policy, shall not apply to incorporation proceedings covered by chapter 35.02 RCW.      Sec. 40. RCW 84.14.010 and 1995 c 375 s 3 are each amended to read as follows:             Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.        (1) "City" means either (a) a city or town with a population of at least one hundred ((fifty)) thousand or (b) the largest city or town, if there is no city or town with a population of at least one hundred thousand, located in a county planning under the growth management act.                 (2) "Governing authority" means the local legislative authority of a city having jurisdiction over the property for which an exemption may be applied for under this chapter.               (3) "Growth management act" means chapter 36.70A RCW.                (4) "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.                      (5) "Owner" means the property owner of record.             (6) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental accommodation that is leased for a period of at least one month. This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.             (7) "Rehabilitation improvements" means modifications to existing structures, that are vacant for twelve months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.            (8) "Residential targeted area" means an area within an urban center that has been designated by the governing authority as a residential targeted area in accordance with this chapter.      (9) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.                (10) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain:      (a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;             (b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and          (c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.           NEW SECTION. Sec. 41. A new section is added to chapter 36.70A RCW to read as follows:         The legislature recognizes that the preservation of urban greenbelts is an integral part of comprehensive growth management in Washington. The legislature further recognizes that certain greenbelts are subject to adverse possession action which, if carried out, threaten the comprehensive nature of this chapter. Therefore, a party shall not acquire by adverse possession property that is designated as a plat greenbelt or open space area or that is dedicated as open space to a public agency or to a bona fide homeowner's association.        Sec. 42. RCW 84.14.030 and 1995 c 375 s 6 are each amended to read as follows:        An owner of property making application under this chapter must meet the following requirements:         (1) The new or rehabilitated multiple-unit housing must be located in a residential targeted area as designated by the city;                (2) The multiple-unit housing must meet the guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, low-income or moderate-income occupancy requirements, and other adopted requirements indicated necessary by the city. The required amenities should be relative to the size of the project and tax benefit to be obtained;                  (3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy. In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units;      (4) New construction multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application;          (5) Property proposed to be rehabilitated must be vacant at least twelve months before submitting an application and fail to comply with one or more standards of the applicable state or local building or housing codes on or after July 23, 1995; and                     (6) The applicant must enter into a contract with the city approved by the governing body under which the applicant has agreed to the implementation of the development on terms and conditions satisfactory to the governing authority.                   Sec. 43. RCW 84.14.050 and 1995 c 375 s 8 are each amended to read as follows:            An owner of property seeking tax incentives under this chapter must complete the following procedures:              (1) In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the governing authority or duly authorized agent, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;            (2) In the case of new and rehabilitated multifamily housing, the owner shall apply to the city on forms adopted by the governing authority. The application must contain the following:          (a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;           (b) A description of the project and site plan, including the floor plan of units and other information requested;  (c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;                  (3) The applicant must verify the application by oath or affirmation; and      (4) The application must be made on or before April 1 of each year, and must be accompanied by the application fee, if any, required under RCW ((84.14.070)) 84.14.080. The governing authority may permit the applicant to revise an application before final action by the governing authority.      Sec. 44. RCW 90.61.020 and 1995 c 347 s 802 are each amended to read as follows:         The commission shall consist of not more than ((fourteen)) twenty-two members. ((Eleven)) Fifteen members of the commission shall be appointed by the governor. ((Membership)) The commission members appointed by the governor shall reflect the interests of business, ((agriculture)) operators of small businesses, owners of small property holdings, livestock producers, irrigated agriculture, dryland farmers or major crop commodity producers, labor, the environment, neighborhood groups, other citizens, the legislature, cities, counties, and federally recognized Indian tribes. ((Members)) The commission members appointed by the governor shall have substantial experience in matters relating to land use and environmental planning and regulation, and shall have the ability to work toward cooperative solutions among diverse interests. The director of the department of community, trade, and economic development, or the director̓s designee, shall be a member and shall serve as chair of the commission. The director of the department of ecology, or the director̓s designee, and the secretary of the department of transportation, or the secretary's designee, shall also be members of the commission. Two members of the commission shall be members of the senate, one from each caucus appointed by the president of the senate, and two members of the commission shall be members of the house of representatives, one from each caucus appointed by the speaker of the house of representatives. Staff for the commission shall be provided by the department of community, trade, and economic development, with additional staff to be provided by other state agencies and the legislature, as may be required. State agencies shall provide the commission with information and assistance as needed.      This section expires June 30, 1998.        Sec. 45. RCW 90.61.040 and 1995 c 347 s 804 are each amended to read as follows:      The commission shall:            (1) Consider the effectiveness of state and local government efforts to consolidate and integrate the growth management act, the state environmental policy act, the shoreline management act, and other land use, planning, environmental, and permitting laws.            (2) Identify the revisions and modifications needed in state land use, planning, and environmental law and practice to adequately plan for growth and achieve economically and environmentally sustainable development, to adequately assess environmental impacts of comprehensive plans, development regulations, and growth, and to reduce the time and cost of obtaining project permits.      (3) Draft a consolidated land use procedure, following these guidelines:              (a) Conduct land use planning through the comprehensive planning process under chapter 36.70A RCW rather than through review of individual projects;               (b) Involve diverse sectors of the public in the planning process. Early and informal environmental analysis should be incorporated into planning and decision making;      (c) Recognize that different questions need to be answered and different levels of detail applied at each planning phase, from the initial development of plan concepts or plan elements to implementation programs;             (d) Integrate and combine to the fullest extent possible the processes, analysis, and documents currently required under chapters 36.70A and 43.21C RCW, so that subsequent plan decisions and subsequent implementation will incorporate measures to promote the environmental, economic, and other goals and to mitigate undesirable or unintended adverse impacts on a community's quality of life;                 (e) Focus environmental review and the level of detail needed for different stages of plan and project decisions on the environmental considerations most relevant to that stage of the process;      (f) Avoid duplicating review that has occurred for plan decisions when specific projects are proposed;              (g) Use environmental review on projects to: (i) Review and document consistency with comprehensive plans and development regulations; (ii) provide prompt and coordinated review by agencies, tribes, and the public on compliance with applicable environmental laws and plans, including mitigation for site specific project impacts that have not been considered and addressed at the plan or development regulation level; and (iii) ensure accountability by local government to applicants and the public for requiring and implementing mitigation measures;             (h) Maintain or improve the quality of environmental analysis both for plan and for project decisions, while integrating these analyses with improved state and local planning and permitting processes;               (i) Examine existing land use and environmental permits for necessity and utility. To the extent possible, existing permits should be combined into fewer permits, assuring that the values and principles intended to be protected by those permits remain protected; and        (j) Consolidate local government appeal processes to allow a single appeal of permits at local government levels, a single state level administrative appeal, and a final judicial appeal.           (4) Monitor instances state-wide of the vesting of project permit applications during the period that an appeal is pending before a growth management hearings board, as authorized under RCW 36.70A.300. The commission shall also review the extent to which such vesting results in the approval of projects that are inconsistent with a comprehensive plan or development regulation provision ultimately found to be in compliance with a board's order or remand. The commission shall analyze the impact of such approvals on ensuring the attainment of the goals and policies of chapter 36.70A RCW, and make recommendations to the governor and the legislature on statutory changes to address any adverse impacts from the provisions of RCW 36.70A.300. The commission shall provide an initial report on its findings and recommendations by November 1, 1995, and submit its further findings and recommendations subsequently in the reports required under RCW 90.61.030.          (5) Monitor local government consolidated permit procedures and the effectiveness of the timelines established by RCW 36.70B.090. The commission shall include in its report submitted to the governor and the legislature on November 1, 1997, its recommendation about what timelines, if any, should be imposed on the local government consolidated permit process required by chapter 36.70B RCW.             (6) Evaluate funding mechanisms that will enable local governments to pay for and recover the costs of conducting integrated planning and environmental analysis. The commission shall include its conclusions in its first report to the legislature on November 1, 1995, and include any recommended statutory changes.             (7) Study, in cooperation with the state board for registration of professional engineers and the state building code council, ways in which state agencies and local governments could authorize professionals with appropriate qualifications to certify a project's compliance with certain state and local land use and environmental requirements. The commission shall report to the legislature on measures necessary to implement such a system of professional certification.            (8) Review long-term approaches for resolving disputes that arise under the growth management act, chapter 36.70A RCW; the shoreline management act, chapter 90.58 RCW; and other environmental laws. In particular, in the commission's recommendations on a consolidated land use procedure and integration and consolidation of Washington's land use and environmental laws, identify needed changes to the structure of the boards that hear environmental appeals as well as the extent to which quasi-judicial bodies are needed to provide continued oversight of matters currently brought before the growth management hearings board and other boards that hear such appeals.              (9) If the commission finds that there is no longer a need for the growth management hearings boards and recommends sunset of the boards, include in its recommendations a plan for implementing the sunset process. Alternatively, if the boards are to become advisory bodies with the primary duty of mediating disputes and making advisory decisions, the commission shall make recommendations as to how such a change in the board's authority should be implemented. If the commission makes other recommendations with respect to the boards, it shall make recommendations to implement any needed changes.      (10) Evaluate the effect of the 1997 amendments to this chapter that raise the standard of review of agency, county, and city actions by the growth management hearings boards and make changes with respect to board determinations of invalidity, and make recommendations as to whether the latitude of the boards should be further curtailed and greater deference given to local decisions by raising the standard of review, limiting the authority of the board to make determinations of invalidity, or making other changes.               These guidelines are intended to guide the work of the commission, without limiting its charge to integrate and consolidate Washington's land use and environmental laws into a single, manageable statutory framework.            This section expires June 30, 1998.        Sec. 46. RCW 36.70B.040 and 1995 c 347 s 405 are each amended to read as follows:     (1) A proposed project's consistency with a local government's development regulations adopted under chapter 36.70A RCW, or, in the absence of applicable development regulations, the appropriate elements of the comprehensive plan ((or subarea plan)) adopted under chapter 36.70A RCW shall be ((determined)) decided by the local government during project review by consideration of:           (a) The type of land use;         (b) The level of development, such as units per acre or other measures of density;      (c) Infrastructure, including public facilities and services needed to serve the development; and         (d) The ((character)) characteristics of the development, such as development standards.                    (2) In ((determining consistency)) deciding whether a project is consistent, the determinations made pursuant to RCW 36.70B.030(2) shall be controlling.          (3) For purposes of this section, the term "consistency" shall include all terms used in this chapter and chapter 36.70A RCW to refer to performance in accordance with this chapter and chapter 36.70A RCW, including but not limited to compliance, conformity, and consistency.                (4) Nothing in this section requires documentation, dictates an agency's procedures for considering consistency, or limits a ((unit of government)) city or county from asking more specific or related questions with respect to any of the four main categories listed in subsection (1)(a) through (d) of this section.      (5) The department of community, trade, and economic development is authorized to develop and adopt by rule criteria to assist local governments planning under RCW 36.70A.040 to analyze the consistency of project actions. These criteria shall be jointly developed with the department of ecology.            Sec. 47. RCW 43.21C.110 and 1995 c 347 s 206 are each amended to read as follows:      It shall be the duty and function of the department of ecology:                  (1) To adopt and amend thereafter rules of interpretation and implementation of this chapter, subject to the requirements of chapter 34.05 RCW, for the purpose of providing uniform rules and guidelines to all branches of government including state agencies, political subdivisions, public and municipal corporations, and counties. The proposed rules shall be subject to full public hearings requirements associated with rule promulgation. Suggestions for modifications of the proposed rules shall be considered on their merits, and the department shall have the authority and responsibility for full and appropriate independent promulgation and adoption of rules, assuring consistency with this chapter as amended and with the preservation of protections afforded by this chapter. The rule-making powers authorized in this section shall include, but shall not be limited to, the following phases of interpretation and implementation of this chapter:       (a) Categories of governmental actions which are not to be considered as potential major actions significantly affecting the quality of the environment, including categories pertaining to applications for water right permits pursuant to chapters 90.03 and 90.44 RCW. The types of actions included as categorical exemptions in the rules shall be limited to those types which are not major actions significantly affecting the quality of the environment. The rules shall provide for certain circumstances where actions which potentially are categorically exempt require environmental review. An action that is categorically exempt under the rules adopted by the department may not be conditioned or denied under this chapter.                     (b) Rules for criteria and procedures applicable to the determination of when an act of a branch of government is a major action significantly affecting the quality of the environment for which a detailed statement is required to be prepared pursuant to RCW 43.21C.030.            (c) Rules and procedures applicable to the preparation of detailed statements and other environmental documents, including but not limited to rules for timing of environmental review, obtaining comments, data and other information, and providing for and determining areas of public participation which shall include the scope and review of draft environmental impact statements.        (d) Scope of coverage and contents of detailed statements assuring that such statements are simple, uniform, and as short as practicable; statements are required to analyze only reasonable alternatives and probable adverse environmental impacts which are significant, and may analyze beneficial impacts.                    (e) Rules and procedures for public notification of actions taken and documents prepared.    (f) Definition of terms relevant to the implementation of this chapter including the establishment of a list of elements of the environment. Analysis of environmental considerations under RCW 43.21C.030(2) may be required only for those subjects listed as elements of the environment (or portions thereof). The list of elements of the environment shall consist of the "natural" and "built" environment. The elements of the built environment shall consist of public services and utilities (such as water, sewer, schools, fire and police protection), transportation, environmental health (such as explosive materials and toxic waste), and land and shoreline use (including housing, and a description of the relationships with land use and shoreline plans and designations, including population).        (g) Rules for determining the obligations and powers under this chapter of two or more branches of government involved in the same project significantly affecting the quality of the environment.                  (h) Methods to assure adequate public awareness of the preparation and issuance of detailed statements required by RCW 43.21C.030(2)(c).                 (i) To prepare rules for projects setting forth the time limits within which the governmental entity responsible for the action shall comply with the provisions of this chapter.      (j) Rules for utilization of a detailed statement for more than one action and rules improving environmental analysis of nonproject proposals and encouraging better interagency coordination and integration between this chapter and other environmental laws.      (k) Rules relating to actions which shall be exempt from the provisions of this chapter in situations of emergency.            (l) Rules relating to the use of environmental documents in planning and decision making and the implementation of the substantive policies and requirements of this chapter, including procedures for appeals under this chapter.           (m) Rules and procedures that provide for the integration of environmental review with project review as provided in RCW 43.21C.240. The rules and procedures shall be jointly developed with the department of community, trade, and economic development and shall be applicable to the preparation of environmental documents for actions in counties, cities, and towns planning under RCW 36.70A.040. The rules and procedures shall also include procedures and criteria to analyze ((the consistency of project actions, including)) planned actions under RCW 43.21C.031(2)((, with development regulations adopted under chapter 36.70A RCW, or in the absence of applicable development regulations, the appropriate elements of a comprehensive plan or subarea plan adopted under chapter 36.70A RCW)) and revisions to the rules adopted under this section to ensure that they are compatible with the requirements and authorizations of chapter 347, Laws of 1995, as amended by chapter . . ., Laws of 1997 (this act). Ordinances or procedures adopted by a county, city, or town to implement the provisions of ((RCW 43.21C.240)) chapter 347, Laws of 1995 prior to the effective date of rules adopted under this subsection (1)(m) shall continue to be effective until the adoption of any new or revised ordinances or procedures that may be required. If any revisions are required as a result of rules adopted under this subsection (1)(m), those revisions shall be made within the time limits specified in RCW 43.21C.120.       (2) In exercising its powers, functions, and duties under this section, the department may:        (a) Consult with the state agencies and with representatives of science, industry, agriculture, labor, conservation organizations, state and local governments, and other groups, as it deems advisable; and                      (b) Utilize, to the fullest extent possible, the services, facilities, and information (including statistical information) of public and private agencies, organizations, and individuals, in order to avoid duplication of effort and expense, overlap, or conflict with similar activities authorized by law and performed by established agencies.                (3) Rules adopted pursuant to this section shall be subject to the review procedures of chapter 34.05 RCW.      Sec. 48. RCW 36.70B.110 and 1995 c 347 s 415 are each amended to read as follows:      (1) Not later than April 1, 1996, a local government planning under RCW 36.70A.040 shall provide a notice of application to the public and the departments and agencies with jurisdiction as provided in this section. If a local government has made a determination of significance under chapter 43.21C RCW concurrently with the notice of application, the notice of application shall be combined with the determination of significance and scoping notice. Nothing in this section prevents a determination of significance and scoping notice from being issued prior to the notice of application. Nothing in this section or this chapter prevents a lead agency, when it is a project proponent or is funding a project, from conducting its review under chapter 43.21C RCW or from allowing appeals of procedural determinations prior to submitting a project permit application.        (2) The notice of application shall be provided within fourteen days after the determination of completeness as provided in RCW 36.70B.070 and, except as limited by the provisions of subsection (4)(b) of this section, shall include the following in whatever sequence or format the local government deems appropriate:      (a) The date of application, the date of the notice of completion for the application, and the date of the notice of application;                   (b) A description of the proposed project action and a list of the project permits included in the application and, if applicable, a list of any studies requested under RCW 36.70B.070 or 36.70B.090;      (c) The identification of other permits not included in the application to the extent known by the local government;          (d) The identification of existing environmental documents that evaluate the proposed project, and, if not otherwise stated on the document providing the notice of application, such as a city land use bulletin, the location where the application and any studies can be reviewed;      (e) A statement of the public comment period, which shall be not less than fourteen nor more than thirty days following the date of notice of application, and statements of the right of any person to comment on the application, receive notice of and participate in any hearings, request a copy of the decision once made, and any appeal rights. A local government may accept public comments at any time prior to the closing of the record of an open record predecision hearing, if any, or, if no open record predecision hearing is provided, prior to the decision on the project permit;    (f) The date, time, place, and type of hearing, if applicable and scheduled at the date of notice of the application;      (g) A statement of the preliminary determination, if one has been made at the time of notice, of those development regulations that will be used for project mitigation and of consistency as provided in RCW ((36.70B.040)) 36.70B.030(2); and               (h) Any other information determined appropriate by the local government.         (3) If an open record predecision hearing is required for the requested project permits, the notice of application shall be provided at least fifteen days prior to the open record hearing.                (4) A local government shall use reasonable methods to give the notice of application to the public and agencies with jurisdiction and may use its existing notice procedures. A local government may use different types of notice for different categories of project permits or types of project actions. If a local government by resolution or ordinance does not specify its method of public notice, the local government shall use the methods provided for in (a) and (b) of this subsection. Examples of reasonable methods to inform the public are:                (a) Posting the property for site-specific proposals;           (b) Publishing notice, including at least the project location, description, type of permit(s) required, comment period dates, and location where the notice of application required by subsection (2) of this section and the complete application may be reviewed, in the newspaper of general circulation in the general area where the proposal is located or in a local land use newsletter published by the local government;       (c) Notifying public or private groups with known interest in a certain proposal or in the type of proposal being considered;      (d) Notifying the news media;                (e) Placing notices in appropriate regional or neighborhood newspapers or trade journals;      (f) Publishing notice in agency newsletters or sending notice to agency mailing lists, either general lists or lists for specific proposals or subject areas; and      (g) Mailing to neighboring property owners.          (5) A notice of application shall not be required for project permits that are categorically exempt under chapter 43.21C RCW, unless ((a public comment period or)) an open record predecision hearing is required or an open record appeal hearing is allowed on the project permit decision.                  (6) A local government shall integrate the permit procedures in this section with its environmental review under chapter 43.21C RCW as follows:              (a) Except for a determination of significance and except as otherwise expressly allowed in this section, the local government may not issue its threshold determination((, or issue a decision or a recommendation on a project permit)) until the expiration of the public comment period on the notice of application.      (b) If an open record predecision hearing is required ((and the local government's threshold determination requires public notice under chapter 43.21C RCW)), the local government shall issue its threshold determination at least fifteen days prior to the open record predecision hearing.              (c) Comments shall be as specific as possible.                  (d) A local government is not required to provide for administrative appeals of its threshold determination. If provided, an administrative appeal shall be filed within fourteen days after notice that the determination has been made and is appealable. Except as otherwise expressly provided in this section, the appeal hearing on a determination of nonsignificance shall be consolidated with any open record hearing on the project permit.             (7) At the request of the applicant, a local government may combine any hearing on a project permit with any hearing that may be held by another local, state, regional, federal, or other agency ((provided that)), if:                 (a) The hearing is held within the geographic boundary of the local government((. Hearings shall be combined if requested by an applicant, as long as)); and         (b) The joint hearing can be held within the time periods specified in RCW 36.70B.090 or the applicant agrees to the schedule in the event that additional time is needed in order to combine the hearings. All agencies of the state of Washington, including municipal corporations and counties participating in a combined hearing, are hereby authorized to issue joint hearing notices and develop a joint format, select a mutually acceptable hearing body or officer, and take such other actions as may be necessary to hold joint hearings consistent with each of their respective statutory obligations.      (8) All state and local agencies shall cooperate to the fullest extent possible with the local government in holding a joint hearing if requested to do so, as long as:       (a) The agency is not expressly prohibited by statute from doing so;                     (b) Sufficient notice of the hearing is given to meet each of the agencies' adopted notice requirements as set forth in statute, ordinance, or rule; and         (c) The agency has received the necessary information about the proposed project from the applicant to hold its hearing at the same time as the local government hearing.     (9) A local government is not required to provide for administrative appeals. If provided, an administrative appeal of the project decision((, combined with)) and of any environmental determination((s)) issued at the same time as the project decision, shall be filed within fourteen days after the notice of the decision or after other notice that the decision has been made and is appealable. The local government shall extend the appeal period for an additional seven days, if state or local rules adopted pursuant to chapter 43.21C RCW allow public comment on a determination of nonsignificance issued as part of the appealable project permit decision.             (10) The applicant for a project permit is deemed to be a participant in any comment period, open record hearing, or closed record appeal.          (11) Each local government planning under RCW 36.70A.040 shall adopt procedures for administrative interpretation of its development regulations.      Sec. 49. RCW 43.21C.075 and 1995 c 347 s 204 are each amended to read as follows:      (1) Because a major purpose of this chapter is to combine environmental considerations with public decisions, any appeal brought under this chapter shall be linked to a specific governmental action. The State Environmental Policy Act provides a basis for challenging whether governmental action is in compliance with the substantive and procedural provisions of this chapter. The State Environmental Policy Act is not intended to create a cause of action unrelated to a specific governmental action.                 (2) Unless otherwise provided by this section:       (a) Appeals under this chapter shall be of the governmental action together with its accompanying environmental determinations.                   (b) Appeals of environmental determinations made (or lacking) under this chapter shall be commenced within the time required to appeal the governmental action which is subject to environmental review.              (3) If an agency has a procedure for appeals of agency environmental determinations made under this chapter, such procedure:        (a) Shall ((not)) allow no more than one agency appeal proceeding on ((a)) each procedural determination (the adequacy of a determination of significance/nonsignificance or of a final environmental impact statement)((. The appeal proceeding on a determination of significance may occur before the agency's final decision on a proposed action. The appeal proceeding on a determination of nonsignificance may occur before the agency's final decision on a proposed action only if the appeal is heard at a proceeding where the hearing body or officer will render a final recommendation or decision on the proposed underlying governmental action. Such appeals shall also be allowed for a determination of significance/nonsignificance which may be issued by the agency after supplemental review));                 (b) Shall consolidate an appeal of procedural issues and of substantive determinations made under this chapter (such as a decision to require particular mitigation measures or to deny a proposal) with a hearing or appeal on the underlying governmental action by providing for a single simultaneous hearing before one hearing officer or body to consider the agency decision or recommendation on a proposal and any environmental determinations made under this chapter, with the exception of ((the)):      (i) An appeal((, if any,)) of a determination of significance ((as provided in (a) of this subsection));                   (ii) An appeal of a procedural determination made by an agency when the agency is a project proponent, or is funding a project, and chooses to conduct its review under this chapter, including any appeals of its procedural determinations, prior to submitting an application for a project permit;      (iii) An appeal of a procedural determination made by an agency on a nonproject action; or                (iv) An appeal to the local legislative authority under RCW 43.21C.060 or other applicable state statutes;           (c) Shall provide for the preparation of a record for use in any subsequent appeal proceedings, and shall provide for any subsequent appeal proceedings to be conducted on the record, consistent with other applicable law. An adequate record consists of findings and conclusions, testimony under oath, and taped or written transcript. An electronically recorded transcript will suffice for purposes of review under this subsection; and                (d) Shall provide that procedural determinations made by the responsible official shall be entitled to substantial weight.              (4) If a person aggrieved by an agency action has the right to judicial appeal and if an agency has an administrative appeal procedure, such person shall, prior to seeking any judicial review, use such agency procedure if any such procedure is available, unless expressly provided otherwise by state statute.      (5) Some statutes and ordinances contain time periods for challenging governmental actions which are subject to review under this chapter, such as various local land use approvals (the "underlying governmental action"). RCW 43.21C.080 establishes an optional "notice of action" procedure which, if used, imposes a time period for appealing decisions under this chapter. This subsection does not modify any such time periods. In this subsection, the term "appeal" refers to a judicial appeal only.            (a) If there is a time period for appealing the underlying governmental action, appeals under this chapter shall be commenced within such time period. The agency shall give official notice stating the date and place for commencing an appeal.       (b) If there is no time period for appealing the underlying governmental action, and a notice of action under RCW 43.21C.080 is used, appeals shall be commenced within the time period specified by RCW 43.21C.080.      (6)(a) Judicial review under subsection (5) of this section of an appeal decision made by an agency under subsection (3) of this section shall be on the record, consistent with other applicable law.        (b) A taped or written transcript may be used. If a taped transcript is to be reviewed, a record shall identify the location on the taped transcript of testimony and evidence to be reviewed. Parties are encouraged to designate only those portions of the testimony necessary to present the issues raised on review, but if a party alleges that a finding of fact is not supported by evidence, the party should include in the record all evidence relevant to the disputed finding. Any other party may designate additional portions of the taped transcript relating to issues raised on review. A party may provide a written transcript of portions of the testimony at the party's own expense or apply to that court for an order requiring the party seeking review to pay for additional portions of the written transcript.                  (c) Judicial review under this chapter shall without exception be of the governmental action together with its accompanying environmental determinations.                   (7) Jurisdiction over the review of determinations under this chapter in an appeal before an agency or superior court shall upon consent of the parties be transferred in whole or part to the shorelines hearings board. The shorelines hearings board shall hear the matter and sign the final order expeditiously. The superior court shall certify the final order of the shorelines hearings board and ((said)) the certified final order may only be appealed to an appellate court. In the case of an appeal under this chapter regarding a project or other matter that is also the subject of an appeal to the shorelines hearings board under chapter 90.58 RCW, the shorelines hearings board shall have sole jurisdiction over both the appeal under this section and the appeal under chapter 90.58 RCW, shall consider them together, and shall issue a final order within one hundred eighty days as provided in RCW 90.58.180.          (8) For purposes of this section and RCW 43.21C.080, the words "action", "decision", and "determination" mean substantive agency action including any accompanying procedural determinations under this chapter (except where the word "action" means "appeal" in RCW 43.21C.080(2)). The word "action" in this section and RCW 43.21C.080 does not mean a procedural determination by itself made under this chapter. The word "determination" includes any environmental document required by this chapter and state or local implementing rules. The word "agency" refers to any state or local unit of government. Except as provided in subsection (5) of this section, the word "appeal" refers to administrative, legislative, or judicial appeals.                  (9) The court in its discretion may award reasonable ((attorney's)) attorneys' fees of up to one thousand dollars in the aggregate to the prevailing party, including a governmental agency, on issues arising out of this chapter if the court makes specific findings that the legal position of a party is frivolous and without reasonable basis.                  Sec. 50. RCW 90.58.090 and 1995 c 347 s 306 are each amended to read as follows:                    (1) A master program, segment of a master program, or an amendment to a master program shall become effective when approved by the department. Within the time period provided in RCW 90.58.080, each local government shall have submitted a master program, either totally or by segments, for all shorelines of the state within its jurisdiction to the department for review and approval.       (2) Upon receipt of a proposed master program or amendment, the department shall:            (a) Provide notice to and opportunity for written comment by all interested parties of record as a part of the local government review process for the proposal and to all persons, groups, and agencies that have requested in writing notice of proposed master programs or amendments generally or for a specific area, subject matter, or issue. The comment period shall be at least thirty days, unless the department determines that the level of complexity or controversy involved supports a shorter period;      (b) In the department's discretion, conduct a public hearing during the thirty-day comment period in the jurisdiction proposing the master program or amendment;                (c) Within fifteen days after the close of public comment, request the local government to review the issues identified by the public, interested parties, groups, and agencies and provide a written response as to how the proposal addresses the identified issues;           (d) Within thirty days after receipt of the local government response pursuant to (c) of this subsection, make written findings and conclusions regarding the consistency of the proposal with the policy of RCW 90.58.020 and the applicable guidelines, provide a response to the issues identified in (c) of this subsection, and either approve the proposal as submitted, recommend specific changes necessary to make the proposal approvable, or deny approval of the proposal in those instances where no alteration of the proposal appears likely to be consistent with the policy of RCW 90.58.020 and the applicable guidelines. The written findings and conclusions shall be provided to the local government, all interested persons, parties, groups, and agencies of record on the proposal;                     (e) If the department recommends changes to the proposed master program or amendment, within thirty days after the department mails the written findings and conclusions to the local government, the local government may:                 (i) Agree to the proposed changes. The receipt by the department of the written notice of agreement constitutes final action by the department approving the amendment; or              (ii) Submit an alternative proposal. If, in the opinion of the department, the alternative is consistent with the purpose and intent of the changes originally submitted by the department and with this chapter it shall approve the changes and provide written notice to all recipients of the written findings and conclusions. If the department determines the proposal is not consistent with the purpose and intent of the changes proposed by the department, the department may resubmit the proposal for public and agency review pursuant to this section or reject the proposal.      (3) The department shall approve the segment of a master program relating to shorelines unless it determines that the submitted segments are not consistent with the policy of RCW 90.58.020 and the applicable guidelines.                  (4) The department shall approve those segments of the master program relating to shorelines of state-wide significance only after determining the program provides the optimum implementation of the policy of this chapter to satisfy the state-wide interest. If the department does not approve a segment of a local government master program relating to a shoreline of state-wide significance, the department may develop and by rule adopt an alternative to the local government̓s proposal.              (5) In the event a local government has not complied with the requirements of RCW 90.58.070 it may thereafter upon written notice to the department elect to adopt a master program for the shorelines within its jurisdiction, in which event it shall comply with the provisions established by this chapter for the adoption of a master program for such shorelines.      Upon approval of such master program by the department it shall supersede such master program as may have been adopted by the department for such shorelines.    (6) A master program or amendment to a master program takes effect when and in such form as approved or adopted by the department. Shoreline master programs that were adopted by the department prior to July 22, 1995, in accordance with the provisions of this section then in effect, shall be deemed approved by the department in accordance with the provisions of this section that became effective on that date. The department shall maintain a record of each master program, the action taken on any proposal for adoption or amendment of the master program, and any appeal of the department's action. The department's approved document of record constitutes the official master program.        Sec. 51. RCW 90.58.143 and 1996 c 62 s 1 are each amended to read as follows:      (1) The time requirements of this section shall apply to all substantial development permits and to any development authorized pursuant to a variance or conditional use permit authorized under this chapter. Upon a finding of good cause, based on the requirements and circumstances of the project proposed and consistent with the policy and provisions of the master program and this chapter, local government may adopt different time limits from those set forth in subsections (2) and (3) of this section as a part of action on a substantial development permit.     (2) Construction activities shall be commenced or, where no construction activities are involved, the use or activity shall be commenced within two years of the effective date of a substantial development permit. However, local government may authorize a single extension for a period not to exceed one year based on reasonable factors, if a request for extension has been filed before the expiration date and notice of the proposed extension is given to parties of record on the substantial development permit and to the department.        (3) Authorization to conduct construction activities shall terminate five years after the effective date of a substantial development permit. However, local government may authorize a single extension for a period not to exceed one year based on reasonable factors, if a request for extension has been filed before the expiration date and notice of the proposed extension is given to parties of record and to the department.   (4) The effective date of a substantial development permit shall be the date of ((the last action required on the substantial development permit and all)) filing as provided in RCW 90.58.140(6). The permit time periods in subsections (2) and (3) of this section do not include the time during which a use or activity was not actually pursued due to the pendency of administrative appeals or legal actions or due to the need to obtain any other government permits and approvals for the development that authorize the development to proceed, including all reasonably related administrative ((and)) or legal actions on any such permits or approvals.               Sec. 52. RCW 34.05.518 and 1995 c 382 s 5 are each amended to read as follows:            (1) The final decision of an administrative agency in an adjudicative proceeding under this chapter may be directly reviewed by the court of appeals either (a) upon certification by the superior court pursuant to this section or (b) if the final decision is from an environmental board as defined in subsection (3) of this section, upon acceptance by the court of appeals after a certificate of appealability has been filed by the environmental board that rendered the final decision.      (2) For direct review upon certification by the superior court, an application for direct review must be filed with the superior court within thirty days of the filing of the petition for review in superior court. The superior court may certify a case for direct review only if the judicial review is limited to the record of the agency proceeding and the court finds that:       (a) Fundamental and urgent issues affecting the future administrative process or the public interest are involved which require a prompt determination;              (b) Delay in obtaining a final and prompt determination of such issues would be detrimental to any party or the public interest;                    (c) An appeal to the court of appeals would be likely regardless of the determination in superior court; and        (d) The appellate court's determination in the proceeding would have significant precedential value.              Procedures for certification shall be established by court rule.              (3)(a) For the purposes of direct review of final decisions of environmental boards, environmental boards include those boards identified in RCW 43.21B.005 ((and growth management hearings boards as identified in RCW 36.70A.250)).                  (b) An environmental board may issue a certificate of appealability if it finds that delay in obtaining a final and prompt determination of the issues would be detrimental to any party or the public interest and either:         (i) Fundamental and urgent state-wide or regional issues are raised; or                 (ii) The proceeding is likely to have significant precedential value.      (4) The environmental board shall state in the certificate of appealability which criteria it applied, explain how that criteria was met, and file with the certificate a copy of the final decision.                     (5) For an appellate court to accept direct review of a final decision of an environmental board, it shall consider the same criteria outlined in subsection (3) of this section.      (6) The procedures for direct review of final decisions of environmental boards include:                     (a) Within thirty days after filing the petition for review with the superior court, a party may file an application for direct review with the superior court and serve the appropriate environmental board and all parties of record. The application shall request the environmental board to file a certificate of appealability.      (b) If an issue on review is the jurisdiction of the environmental board, the board may file an application for direct review on that issue.      (c) The environmental board shall have thirty days to grant or deny the request for a certificate of appealability and its decision shall be filed with the superior court and served on all parties of record.             (d) If a certificate of appealability is issued, the parties shall have fifteen days from the date of service to file a notice of discretionary review in the superior court, and the notice shall include a copy of the certificate of appealability and a copy of the final decision.         (e) If the appellate court accepts review, the certificate of appealability shall be transmitted to the court of appeals as part of the certified record.            (f) If a certificate of appealability is denied, review shall be by the superior court. The superior court's decision may be appealed to the court of appeals.               NEW SECTION. Sec. 53. Except as otherwise specifically provided in section 22 of this act, sections 1 through 21, chapter . . ., Laws of 1997 (sections 1 through 21 of this act) are prospective in effect and shall not affect the validity of actions taken or decisions made before the effective date of this section.      NEW SECTION. Sec. 54. 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. 55. Sections 29 and 30 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 Anderson moved that the Senate concur in the House amendment to Engrossed Senate Bill No. 6094.


POINT OF ORDER


      Senator Kline: “I rise to a point of order, Mr. President. I request that the President rule that the House amendment to Engrossed Senate Bill No. 6094 changes the scope and object of the bill. I am prepared to enumerate six subject areas. There are subject areas included in Engrossed Senate Bill No. 6094 that make changes to tax laws related to multiple unit construction of housing; sections that change the laws related to wetlands loss of functions; sections changing the laws relating to adverse possession of public lands in greenbelts; sections changing provisions of laws relating to state water quality and public works grants and loans; sections making changes to local government project permit review procedures; and lastly sections changing appeals of State Environmental Policy Act determinations. None of these are within the subject area of the original scope and object of 6094.”

      Further debate ensued.


POINT OF ORDER


      Senator Heavey: “A point of order. I would ask for scope and object on specific sections.


REPLY BY THE PRESIDENT


      President Owen: “Senator Heavey, it is believed by the President that Senator Kline's motion was not limited to any specific sections, but to the amendment, as whole.”


MOTION


      On motion of Senator Johnson, further consideration of Engrossed Senate Bill No. 6094 was deferred.


MOTION


      At 7:00 p.m. on motion of Senator Johnson, the Senate was declared to be at ease.


      The Senate was called to order at 8:41 p.m. by President Owen.


      There being no objection, the Senate resumed consideration of Engrossed Senate Bill No. 6094 and the pending House striking amendment, being considered before going at ease.


RULING BY THE PRESIDENT


      President Owen: “In ruling upon the point of order raised by Senator Kline, the President finds that Engrossed Senate Bill No. 6094 is an omnibus measure which makes various changes to the laws relating to growth management planning and implementation, including rural elements and the protection of critical areas, standards of review, open space corridors; state assistance for achieving SEPA/GMA integration and improving the process of project permit review, and expanding the program of tax incentives for urban multi-family housing.

      “The amendment by the House of Representatives would also make various changes to growth management and related environmental laws, all of which are within the subject matter of Engrossed Senate Bill No. 6094.

      “The President, therefore, finds that the proposed 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 Engrossed Senate Bill No. 6094 was ruled in order.

      The President declared the question before the Senate to be the motion by Senator Anderson that the Senate concur in the House amendment to Engrossed Senate Bill No. 6094.

      Debate ensued.

      The motion by Senator Anderson carried and the Senate concurred in the House amendment to Engrossed Senate Bill No. 6094.

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

ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6094, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 30; Nays, 18; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Goings, Hale, Hochstatter, Horn, Johnson, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Stevens, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 30.   Voting nay: Senators Brown, Fairley, Franklin, Fraser, Haugen, Heavey, Jacobsen, Kline, Kohl, McAuliffe, Patterson, Prentice, Sheldon, Snyder, Spanel, Swanson, Thibaudeau and Wojahn - 18.              Absent: Senator Hargrove - 1.      ENGROSSED SENATE BILL NO. 6094, 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 HOUSE

April 27, 1997

MR. PRESIDENT:

      The Speaker has signed SUBSTITUTE SENATE BILL NO. 5227, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


April 27, 1997

MR. PRESIDENT:

      The Speaker has signed:

      SENATE BILL NO. 5034,

      SECOND SUBSTITUTE SENATE BILL NO. 5127, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


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


INTRODUCTION AND FIRST READING

 

SCR 8419          by Senator McDonald

 

Exempting Engrossed Substitute House Bill No. 1338 from legislative cutoff dates.


      WHEREAS, Senate Concurrent Resolution No. 8402 established cutoff dates for consideration of legislation during the 1997 Regular Session of the Fifty-fifth Legislature;

      NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, the House of Representatives concurring, That the cutoff dates established in Senate Concurrent Resolution No. 8402 shall not apply to Engrossed Substitute House Bill No. 1338.

 

MOTIONS


      On motion of Senator Johnson, the rules were suspended, Senate Concurrent Resolution No. 8419 was advanced to second reading and read the second time.

      On motion of Senator Johnson, the rules were suspended, Senate Concurrent Resolution No. 8419, was advanced to third reading the second reading considered the third and the resolution was placed on final passage and adopted.

      SENATE CONCURRENT RESOLUTION NO. 8419 was adopted by voice vote.


MOTION


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


MOTIONS


      On motion of Senator Johnson, the Committee on Rules was relieved of further consideration of Engrossed Substitute House Bill No. 1338.

      On motion of Senator Johnson, the rules were suspended, Engrossed Substitute House Bill No. 1338 was advanced to second reading and placed on the second reading calendar.


MOTION


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


SECOND READING


      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1338, by House Committee on Government Reform and Land Use (originally sponsored by representatives Mulliken, Hatfield, Reams, Mielke, Doumit, McMorris and Schoesler)


      Increasing flexibility for counties and cities in implementing growth management.


      The bill was read the second time.


MOTION


      Senator McCaslin moved that the following Committee on Government Operations amendment be adopted:

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 36.70A.040 and 1995 c 400 s 1 are each amended to read as follows:         (1)(a) Each county that has both a population of fifty thousand or more and, until May 16, 1995, has had its population increase by more than ten percent in the previous ten years or, on or after May 16, 1995, has had its population increase by more than seventeen percent in the previous ten years, and the cities located within such county, and any other county regardless of its population that has had its population increase by more than twenty percent in the previous ten years, and the cities located within such county, shall ((conform with all of the requirements of this chapter)) plan under this section. However, the county legislative authority of such a county ((with a population of less than fifty thousand population)) may adopt a resolution removing the county, and the cities located within the county, from the requirement((s of adopting comprehensive land use plans and development regulations under this chapter)) to plan under this section if this resolution is ((adopted and filed with the department by December 31, 1990, for counties initially meeting this set of criteria)) submitted to and approved by a majority of the voters voting at a general or special election to be called for such purpose, and such election to be held no later than December 1, 1997, or within ((sixty days)) six months of the date the office of financial management certifies that a county meets this set of criteria under subsection (5) of this section. A county that adopts a resolution removing the county, and the cities located within the county, from the requirement to plan under this section remains subject to the requirements for the designation and protection of critical areas and the designation of natural resource lands under RCW 36.70A.060(2), 36.70A.170, and 36.70A.172.       (b) Once a county meets either of these sets of criteria and the county has not adopted a resolution under (a) of this subsection, the requirement to ((conform with all of the requirements of this chapter)) plan under this section remains in effect, even if the county no longer meets one of these sets of criteria.    (2) The county legislative authority of any county that does not ((meet either of the sets of criteria established)) plan under ((subsection (1) of)) this section may adopt a resolution indicating its intention ((to have subsection (1) of this section apply to)) that the county plan under this section. Each city, located in a county that ((chooses to plan)) adopts a resolution under this subsection((,)) shall ((conform with all of the requirements of this chapter)) plan under this section. Once such a resolution has been adopted, the county and the cities located within the county remain subject to all of the requirements of this ((chapter)) section. However, a county with a population of seventy-five thousand or less that, before the effective date of this act, adopted a resolution of intention under this subsection to plan under this section may adopt a resolution removing the county, and the cities located within the county, from the requirement to plan under this section if the resolution is submitted to and approved by a majority of the voters voting at a general or special election to be called for such purpose, and such election to be held no later than December 1, 1997. A county that adopts a resolution removing the county, and the cities located within the county, from the requirement to plan under this section remains subject to the requirements for the designation and protection of critical areas and the designation of natural resource lands under RCW 36.70A.060(2), 36.70A.170, and 36.70A.172.              (3) Any county or city that is initially required to ((conform with all of the requirements of this chapter)) plan under this section, and, where applicable, the county legislative authority has not adopted a resolution removing the county from these requirements as provided in subsection (1) of this section, shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city located within the county shall designate critical areas, agricultural lands, forest lands, and mineral resource lands, and adopt development regulations conserving these designated agricultural lands, forest lands, and mineral resource lands and protecting these designated critical areas, under RCW 36.70A.170 and 36.70A.060; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; (d) if the county has a population of fifty thousand or more, the county and each city located within the county shall adopt a comprehensive plan under this chapter and development regulations that are consistent with and implement the comprehensive plan on or before July 1, 1994, and if the county has a population of less than fifty thousand, the county and each city located within the county shall adopt a comprehensive plan under this chapter and development regulations that are consistent with and implement the comprehensive plan by January 1, 1995, but if the governor makes written findings that a county with a population of less than fifty thousand or a city located within such a county is not making reasonable progress toward adopting a comprehensive plan and development regulations the governor may reduce this deadline for such actions to be taken by no more than one hundred eighty days. Any county or city subject to this subsection may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.       (4) Any county or city that is required to ((conform with all the requirements of this chapter)) plan under this section, as a result of the county legislative authority adopting its resolution of intention under subsection (2) of this section, and the county legislative authority has not adopted a resolution removing the county from these requirements under subsection (2) of this section, shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city that is located within the county shall adopt development regulations conserving agricultural lands, forest lands, and mineral resource lands it designated under RCW 36.70A.060 within one year of the date the county legislative authority adopts its resolution of intention; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; and (d) the county and each city that is located within the county shall adopt a comprehensive plan and development regulations that are consistent with and implement the comprehensive plan not later than four years from the date the county legislative authority adopts its resolution of intention, but a county or city may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.         (5) If the office of financial management certifies that the population of a county that ((previously had not been required to)) does not plan under ((subsection (1) or (2) of)) this section has changed sufficiently to meet either of the sets of criteria specified under subsection (1) of this section, and where applicable, the county legislative authority has not adopted a resolution removing the county from these requirements as provided in subsection (1) of this section, the county and each city within such county shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city located within the county shall adopt development regulations under RCW 36.70A.060 conserving agricultural lands, forest lands, and mineral resource lands it designated within one year of the certification by the office of financial management; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; and (d) the county and each city located within the county shall adopt a comprehensive land use plan and development regulations that are consistent with and implement the comprehensive plan within four years of the certification by the office of financial management, but a county or city may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.                     (6) A copy of each document that is required under this section shall be submitted to the department at the time of its adoption.             NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows:       (1) A county, after conferring with its cities, may develop alternative methods of achieving the planning goals established by RCW 36.70A.020.              (2) The authority provided by this section may not be used to modify:              (a) Requirements for the designation and protection of critical areas or for the designation of natural resource lands under RCW 36.70A.060(2), 36.70A.170, and 36.70A.172;                    (b) The requirement that wetlands be delineated consistent with the requirements of RCW 36.70A.175; or          (c) The requirement to establish a process for the siting of essential public facilities pursuant to RCW 36.70A.200.        (3) Before adopting any alternative methods of achieving the planning goals established by RCW 36.70A.020, a county shall provide an opportunity for public review and comment. An ordinance or resolution proposing or adopting alternative methods must be submitted to the department in the same manner as provided in RCW 36.70A.106 for submittal of proposed and adopted comprehensive plans and development regulations.     Sec. 3. RCW 36.70A.110 and 1995 c 400 s 2 are each amended to read as follows:      (1) Each county that is required or chooses to plan under RCW 36.70A.040 shall designate an urban growth area or areas within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county shall be included within an urban growth area. An urban growth area may include more than a single city. An urban growth area mayinclude territory that is located outside of a city only if such territory already is characterized by urban growth whether or not the urban growth area includes a city, or is adjacent to territory already characterized by urban growth, or is a designated new fully contained community as defined by RCW 36.70A.350.               (2) Based upon the growth management population projection made for the county by the office of financial management, the urban growth areas in the county shall include areas and densities at least sufficient to permit the urban growth that is projected to occur in the county for the succeeding twenty-year period. Each urban growth area shall permit urban densities and shall include greenbelt and open space areas. An urban growth area determination may include a reasonable land market supply factor and shall permit a range of urban densities and uses. In determining this market factor, cities and counties may consider local circumstances. Cities and counties have discretion in their comprehensive plans to make many choices about accommodating growth.      Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall begin this consultation with each city located within its boundaries. The county shall attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county shall justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.   (3) Urban growth should be located first in areas already characterized by urban growth that have adequate existing public facility and service capacities to serve such development, second in areas already characterized by urban growth that will be served adequately by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and third in the remaining portions of the urban growth areas. Urban growth may also be located in designated new fully contained communities as defined by RCW 36.70A.350.         (4) In general, cities are the units of local government most appropriate to provide urban governmental services. In general, it is not appropriate that urban governmental services be extended to or expanded in rural areas except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development. Counties and special districts also may provide a variety of governmental services, including but not limited to, public safety and fire protection; water, wastewater, and other utility service; and transit and transportation services. When such services are provided outside the urban growth area it is usually at a lower service level than for urban governmental services.              (5) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) shall adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and RCW 36.70A.110. Such action may be appealed to the appropriate growth management hearings board under RCW 36.70A.280. Final urban growth areas shall be adopted at the time of comprehensive plan adoption under this chapter.                (6) Each county shall include designations of urban growth areas in its comprehensive plan.                    NEW SECTION. Sec. 4. 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. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

MOTION


      Senator McCaslin moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 1, beginning on line 18 of the amendment, after "a county" strike "((with a population of less than fifty thousand population))" and insert "with a population of less than ((fifty)) seventy-five thousand population"                 Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator McCaslin on page 1, beginning on line 18, to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator McCaslin carried and the amendment to the committee striking amendment was adopted.


MOTION


      Senator Haugen moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 1, line 19, after "thousand population))" insert the following: ", with the concurrence of a majority of the legislative authorities of all cities within the county,"     Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Haugen on page 1, line 19, to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator Haugen carried and the amendment to the committee striking amendment was adopted.


MOTION


      Senator Haugen moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 1, line 25, after "approved by a" insert "sixty percent or greater"            Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Haugen on page 1, line 25, to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator Haugen failed and the amendment to the committee striking amendment was not adopted.


MOTION


      Senator Haugen moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 4, after line 32 , delete everything through "regulations." on page 5, line 16           Renumber the section consecutively and correct any internal references accordingly              Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Haugen on page 4, after line 32 to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator Haugen carried and the amendment to the committee striking amendment was adopted.


MOTION


      Senator Haugen moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 4, after line 32, insert the following:        "(7) A county, and the cities within such county, that is removed from planning under this section pursuant to the removal procedures in this section, shall reimburse to the state the full amount of state financial assistance previously extended to such county and cities therein. The department of community, trade and economic development shall develop a repayment schedule with such county and cities to extend no more than five years."                  Renumber the sections consecutively and correct any internal references accordingly.             Debate ensued.


POINT OF INQUIRY

 

Senator Haugen: “Senator McCaslin, would you tell me what counties were forced in? I understand it was population driven, more than--” Senator McCaslin: “Were you on that committee, Mary Margaret?”

      Senator Haugen: “I kind of think so.”




      Senator McCaslin: “You know when we started out on that, we were talking about three counties. How in the world, you got the rest of them in, I will never know. That was over my dead body. Although you have been trying this session, I made it through.”

      Senator Haugen: “As being one of the people who was there at the beginning, I don't remember three counties at all--I don't remember three counties at all. I remember counties that had a population growth of a certain rate. It was population driven.”

      The President declared the question before the Senate to be the adoption of the amendment by Senator Haugen on page 4, after line 32 to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator Haugen failed and the amendment to the committee striking amendment was not adopted on a rising vote.


MOTION


      Senator Haugen moved that the following amendment to the Committee on Government Operations striking amendment be adopted:

      On page 7, after line 24, delete everything through "immediately." on line 28      Renumber the sections consecutively and correct any internal references accordingly.    Debate ensued. 

      The President declared the question before the Senate to be the adoption of the amendment by Senator Haugen on page 7, after line 24, to the Committee on Government Operations striking amendment to Engrossed Substitute House Bill No. 1338.

      The motion by Senator Haugen carried and the amendment to the committee striking amendment was adopted.


      The President declared the question before the Senate to be the adoption of the Committee on Government Operations striking amendment, as amended, to Engrossed Substitute House Bill No. 1338.

      The Committee on Government Operations striking amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 2 of the title, after "management;" strike the remainder of the title and insert "amending RCW 36.70A.040 and 36.70A.110; adding a new section to chapter 36.70A RCW; and declaring an emergency."       On page 8, line 1 of the title amendment, after "36.70A.110;" delete "adding a new section to chapter 36.70A RCW;"      On page 8, on line 1 of the title amendment, after "chapter 36.70A RCW", delete "; and declaring an emergency"             On motion of Senator Anderson, the rules were suspended, Engrossed Substitute House Bill No. 1338, as amended by the Senate under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1338, as amended by the Senate under suspension of the rules.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1338, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 26; Nays, 23; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Hale, Hargrove, Hochstatter, Johnson, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Prince, Roach, Rossi, Schow, Sellar, Stevens, Strannigan, Swecker, West and Zarelli - 26.      Voting nay: Senators Brown, Fairley, Franklin, Fraser, Goings, Haugen, Heavey, Horn, Jacobsen, Kline, Kohl, McAuliffe, Patterson, Prentice, Rasmussen, Sheldon, Snyder, Spanel, Swanson, Thibaudeau, Winsley, Wojahn and Wood - 23.                ENGROSSED SUBSTITUTE HOUSE BILL NO. 1338, as amended by the Senate under suspension of the rules, 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 fifth order of business.


INTRODUCTION AND FIRST READING

 

SCR 8418          by Senator Strannigan

 

Exempting Senate Bill No. 6064 from legislative cutoff dates.


      WHEREAS, Senate Concurrent Resolution No. 8402 established cutoff dates for consideration of legislation during the 1997 Regular Session of the Fifty-fifth Legislature;

      NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, the House of Representatives concurring, That the cutoff dates established in Senate Concurrent Resolution No. 8402 shall not apply to Senate Bill No. 6064.


MOTIONS


      On motion of Senator Johnson, the rules were suspended, Senate Concurrent Resolution No. 8418 was advanced to second reading and read the second time.

      On motion of Senator Johnson, the rules were suspended, Senate Concurrent Resolution No. 8418, was advanced to third reading the second reading considered the third and the resolution was placed on final passage and adopted.

      SENATE CONCURRENT RESOLUTION NO. 8418 was adopted by voice vote.



MOTION


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


MOTIONS


      On motion of Senator Johnson, the Committee on Rules was relieved of further consideration of Senate No. 6064.

      On motion of Senator Johnson, the rules were suspended, Senate Bill No. 6064 was advanced to second reading and placed on the second reading calendar.

MOTION


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


MOTION


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


SENATE RESOLUTION 1997-8678


By Senators McDonald and Snyder


      WHEREAS, The 1997 Regular Session of the Fifty-fifth Legislature is drawing to a close; and

      WHEREAS, It is necessary to provide for the completion of the work of the Senate after its adjournment and during the interim period between the close of the 1997 Regular Session of the Fifty-fifth Legislature and the convening of the next regular session;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate Facilities and Operations Committee shall have full authority and direction over the authorization and execution of any personal services contracts or subcontracts that necessitate the expenditure of Senate appropriations; and

      BE IT FURTHER RESOLVED, That the Senate Facilities and Operations Committee may, as they deem appropriate, authorize out-of-state travel for which members and staff may receive therefor their actual necessary expenses, and such per diem as may be authorized by law, to be paid upon receipt of their vouchers out of funds appropriated for legislative expenses; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate and the Senate Facilities and Operations Committee be, and they hereby are, authorized to retain such employees as they may deem necessary and that said employees be allowed such rate of pay therefor as the Secretary of the Senate and the Senate Facilities and Operations Committee shall deem proper; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate be, and he hereby is, authorized and directed to make out and execute the necessary vouchers upon which warrants for legislative expenses and expenditures shall be drawn from funds provided therefor; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate and the Facilities and Operations Committee be, and they hereby are, authorized to approve written requests by standing committees to meet during the interim period; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate be, and hereby is, authorized and directed to have printed a copy of the Senate Journals of the 1997 Regular Session of the Fifty-fifth Legislature; and

      BE IT FURTHER RESOLVED, That the President Pro Tempore of the Senate, the Vice-President Pro Tempore of the Senate, the Senate Majority and Minority Leadership, are each authorized to attend the annual meetings of the National Conference of State Legislatures, and to receive therefor their actual necessary expenses, and such per diem as may be authorized by law, to be paid upon receipt of their vouchers out of funds appropriated for legislative expenses; and

      BE IT FURTHER RESOLVED, That the Rules Committee is authorized to assign subject matters to standing committees for study during the interims, and the Majority Leader is authorized to create special committees as may be necessary to carry out the functions of the Senate in an orderly manner and appoint members thereto with the approval of the Facilities and Operations Committee; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate is authorized to express the sympathy of the Senate by sending flowers or memorials in the event of a bereavement in a legislator's family; and

      BE IT FURTHER RESOLVED, That such use of the Senate facilities is permitted upon such terms as the Secretary of the Senate shall deem proper.


MOTION


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


SENATE RESOLUTION 1997-8679

By Senators McDonald and Snyder


      BE IT RESOLVED, By the Senate, That a committee consisting of four members of the Senate be appointed to notify the House that the Legislature is about to adjourn SINE DIE.


MOTION


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



MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SUBSTITUTE SENATE BILL NO. 6063

April 26, 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 sections 121, 391(4) and 717, Substitute Senate Bill No. 6063 entitled:

"AN ACT Relating to the capital budget;"

      The 1997-99 capital budget enacted by the legislature includes the investments in education facilities that will be necessary to serve the growing enrollments expected in public schools, our community colleges, and the four-year higher education institutions. This commitment must be maintained in future years, and represents the highest priority element of the state construction program. The capital budget I am approving is the appropriate next step in providing the educational facilities our citizens deserve, and sets in motion a long-term spending plan that will be adequate and affordable.

      Although I am generally pleased with the budget as enacted, I do have some concerns and have vetoed the following sections:

      Section 121, page 12, Emergency projects declared and specifically enacted by the legislature (Department of Community, Trade, and Economic Development)

      The specific projects to be funded from this appropriation are not identified, so no work can be accomplished with these funds. I have vetoed this section to allow these appropriations to be redirected to projects and programs that are ready to proceed.

      Section 391(4), page 75, Aquatic lands enhancement grants (Department of Natural Resources)

      Subsection 4 of section 391 presents an undue restriction to the completion of the Rocky Reach Trailway project near Wenatchee. The State Parks and Recreation Commission has been developing this trail in cooperation with the Department of Transportation and adjoining property owners to complete a highly valued connection between two state parks. Trail development should continue as proposed. I am instructing the Commission to work closely with adjoining property owners to address any concerns they may have.

      Section 717, page 144, Well regulation fees (Department of Ecology)

      The proviso language in section 717 requires that when the Department of Ecology delegates to a county or local health district certain responsibilities related to well regulations, the county or health district would receive 75 percent of the well regulation fees paid. I have vetoed this section because the change in the fee sharing formula would reduce Department of Ecology revenues below the level necessary to administer the program. I encourage the Department to negotiate the cost of delegated responsibilities with the counties and local districts to develop a solution to this issue.

      For these reasons, I have vetoed sections 121, 391(4) and 717 of Substitute Senate Bill No. 6063.

      With the exception of sections 121, 391(4) and 717, Substitute Senate Bill No. 6063 is approved.

Respectfully submitted,

GARY LOCKE, Governor


PERSONAL PRIVILEGE BY THE PRESIDENT


      President Owen: “The President would like to take somewhat of a point of personal privilege himself and point out to the members of the Senate that today is the last day that Tony Cook will be working with us as an attorney. He is moving on to another job with the Legislative Ethics Committee. I would like to say that he has been an absolute wonderful person to work with. He has done an excellent job for us. We will miss him; I will miss him in his capacity as an attorney. I know he will do a great job. As you can tell, he is also an excellent reader. I just wanted to say 'Thank you, Tony, for doing the great job that you did and for serving us for as long as you have and wish you well in your future endeavors.' Thank you very much.”


PERSONAL PRIVILEGE


      Senator McCaslin: “A point of personal privilege, Mr. President. I just have to say to the body that I first met Tony Cook when he was with UTC and we were having problems in Spokane with a water district and Tony was a tremendous help--absolutely tremendous help--and I have enjoyed working with him all these many years and he is a close friend--I assume we are close friends--what's he going to say? Anyway, he is a great guy; he is a great attorney. I wish him every success in the world to he and his family. Thanks, Tony, for all your help.”


REMARKS BY THE PRESIDENT


      President Owen: “Senator McCaslin, what I have found is that when the members learned he was going to the Legislative Ethics Committee, he gained forty-nine new friends.”


PERSONAL PRIVILEGE


      Senator Snyder: “A point of personal privilege, Mr. President. Back in 1973--up until that time--the Legislature had operated with a lot of interim committees. They had one on fish, one on game, one on regulatory reform, higher education, education and so forth. They also had the legislative council, which was the big interim committee with fifteen or twenty-five members on it. The 1973 Legislature decided that they they would eliminate most of the interim committees, which they did. The only two they kept were the legislative transportation committee and the legislative budget committee and eliminated all the others and started the process that we have now of a continuing set-up. Tony had been promised a job with the legislative council and low and behold, there wasn't any. Tony came into my office of Secretary of the Senate and said, more or less, 'What am I going to do?' I said, 'Well, you have been promised a job and we are going through reorganization.' Tony started to work on the first permanent staff we had here.

       “He was here a few years and I think he was at the University of Washington a short while and when Bob Bailey, a former Senator, was appointed to the UTC, he wisely took Tony over to the UTC with him. Tony has had a great and successful career and I personally want to thank you for all the kindnesses that you have done for me and all the members of the democratic caucus and the Senate as a whole. I even had a call on Friday from an attorney in Seattle and he wanted to know about a certain bill that we had passed and the only thing that I knew to do, about 4:30, was to call Tony Cook. Sure enough, Tony solved the problem for him. I think that is just one example of the thousands or the ten thousands of things that he has done, not only for us, but for the general public. Thank you, Tony.”


PERSONAL PRIVILEGE


      Senator Hargrove: “A point of personal privilege. I think Tony is a great guy and he sure has done a lot of good work for us, but I, for one, am going to be glad to see him go. I'll probably get some good scope and object rulings now.”


REPLY BY THE PRESIDENT


      President Owen: “You should have had him draft your amendments.”


REMARKS BY THE PRESIDENT


      President Owen: “We are hoping that we will find the opportunity for the workroom staff to get a break, so that we can bring them out and show them our appreciation for all the pain and suffering we put them through every session--and for the tremendous amount of work that they do for us. Of course, the reason that I had Tony read that resolution in full is because they had work to do getting an amendment ready.

      The President welcomed the Senate Workroom Staff.


FURTHER REMARKS BY THE PRESIDENT

 

      President Owen: “It is appropriate that they walk out with a pile of amendments. We wanted to take the opportunity to say 'thank you' for all the hard work that you do--and excellent work that you do for us. Thank you very much.”


REMARKS BY SENATOR SELLAR


      Senator Sellar: “Thank you, Mr. President. We, too, of the body here--Senator Loveland and myself--for the Facilities and Operations Committee would like to thank you. You do a fabulous job; you make us look good and we appreciate it. Thank you very much.”


REMARKS BY SENATOR PRINCE


      Senator Prince: “While we are thanking people who are making our work here possible, I would like to mention to the body that Gene Schlatter who has been the chief budget analyst for the Transportation Committee is leaving this summer, after a long tenure with us. He is is going to be badly missed and I think it is only proper that this body recognize that here is another dedicated employee that is going to retirement. It shows how time passes I guess., but we own him a lot for the effort and time that he has put in to serve this body. Thank you.”


REMARKS BY SENATOR HEAVEY


      Senator Heavey: “I know we are going to forget some people, but I personally want to thank our reader who has, I think, one of the toughest jobs here. Every once in a while, he gets relieved to go the restroom and try and crank his neck around and trying to pay attention to all the debate and the roll calls. Also, I have never seen a session where we have had so many remarks spread upon the Journal, so I am going to say our Journal Clerk is probably worked overtime and really deserves a lot of credit, too. I know there are about ten people I am forgetting, but I think we owe a hand to those folks, too. Thank you.”


REMARKS BY SENATOR DECCIO


      Senator Deccio: “I move that Senator Heavey's remarks be spread upon the Journal--just kidding.”


REMARKS BY SENATOR HAUGEN


      Senator Haugen: “Mr. President, while we are thanking people, I have to say a special 'thank you' to the Security. I don't know about anybody else, but I have often wondered what would happen if we ever had an emergency. Would they really be able to protect us? We really didn't have a super emergency this year, but we did have one time where we had people pounding and kicking on the doors and they didn't let them in. So, they proved they really do do the job. They really do make this process work a lot better for us, but I think there are some of those silent people that stand there hour after hour and endure all those people who are wanting to see us, they are a great barrier and I appreciate all the kindness they do to me. Thank you for being there.”


REMARKS BY SENATOR HARGROVE


      Senator Hargrove: “Well, we forgot one person here in all of our thank yous, and that is the President himself. He has been a good friend of mine for many years and despite us, he has brought decorum back to the Senate. I appreciate very much the way you--I've got it as tight as I can get it okay. I very much appreciate the way you have run the floor, the way you have been fair with everybody and I think you have done an excellent job. Thank you very much.”

MOTION


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


SECOND READING


      SENATE BILL NO. 6064, by Senators Strannigan and Fraser (by request of Office of Financial Management)


      Issuing bonds and managing bond retirement.


MOTIONS


      On motion of Senator Johnson, Substitute Senate Bill No. 6064 was substituted for Senate Bill No. 6064 and the substitute bill was placed on second reading and read the second time.

      Senator Strannigan moved that the following amendment be adopted:

      Strike everything after the enacting clause and insert the following:"PART I--NEW BOND AUTHORIZATIONNEW SECTION. Sec. 1. For the purpose of providing funds to finance the projects described and authorized by the legislature in the capital and operating appropriations acts for the 1997-99 fiscal biennium only, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of nine hundred eighty-nine million dollars, or as much thereof as may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.                 NEW SECTION. Sec. 2. The proceeds from the sale of the bonds authorized in section 1 of this act shall be deposited in the state building construction account created by RCW 43.83.020. The proceeds shall be transferred as follows:      (1) Nine hundred fifteen million dollars to remain in the state building construction account created by RCW 43.83.020;      (2) One million six hundred thousand dollars to the public safety reimbursable bond account; and                      (3) Forty-four million three hundred thousand dollars to the higher education construction account created by RCW 28B.14D.040.                    These proceeds shall be used exclusively for the purposes specified in this section and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management subject to legislative appropriation.      NEW SECTION. Sec. 3. (1) The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 2(1) of this act.          (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 2(1) of this act.                 (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purpose of section 2(1) of this act, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the debt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.    NEW SECTION. Sec. 4. (1) The debt-limit reimbursable bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 2(2) of this act.            (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bonds retirement and interest requirements on the bonds authorized in section 2(2) of this act.             (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purpose of section 2(2) of this act, the state treasurer shall transfer from the public safety and education account to the debt-limit reimbursable bond retirement account the amount computed in subsection (2) of this section for the bonds issued for the purpose of section 2(2) of this act.        NEW SECTION. Sec. 5. (1) The nondebt-limit reimbursable bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 2(3) of this act.      (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 2(3) of this act.         (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of section 2(3) of this act, the board of regents of the University of Washington shall cause to be paid out of University of Washington nonappropriated local funds to the state treasurer for deposit into the nondebt-limit reimbursable bond retirement account the amount computed in subsection (2) of this section for bonds issued for the purposes of section 2(3) of this act.              NEW SECTION. Sec. 6. (1) Bonds issued under sections 1 through 5 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.                (2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.         NEW SECTION. Sec. 7. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 1 of this act, and sections 3 through 5 of this act shall not be deemed to provide an exclusive method for the payment.      NEW SECTION. Sec. 8. The bonds authorized in section 1 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.PART II--BOND RETIREMENT FUND REORGANIZATIONNEW SECTION. Sec. 9. (1) The legislature declares that it is in the best interest of the state and the owners and holders of the bonds issued by the state and its political subdivisions that the accounts used by the treasurer for debt service retirement are accurately designated and named in statute.      (2) It is the intent of the legislature in this chapter and sections 10 through 37, chapter . . ., Laws of 1997 (sections 10 through 37 of this act) to create and change the names of funds and accounts to accomplish the declaration under subsection (1) of this section. The legislature does not intend to diminish in any way the current obligations of the state or its political subdivisions or diminish in any way the rights of bond owners and holders.             Sec. 10. RCW 28B.56.100 and 1972 ex.s. c 133 s 10 are each amended to read as follows:      The community college capital improvements bond redemption fund of 1972 is created in the state treasury. This fund shall be exclusively devoted to the payment of interest on and retirement of the bonds authorized by this chapter. The state finance committee shall, on or before June 30 of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet bond retirement and interest requirements, and on July 1 of each year, the state treasurer shall deposit such amount in the community college capital improvements bond redemption fund of 1972 from moneys transmitted to the state treasurer by the department of revenue and certified by the department of revenue to be retail sales tax collections. Such amount certified by the state finance committee to the state treasurer shall be a prior charge against all retail sales tax revenues of the state of Washington, except that portion thereof heretofore pledged for the payment of bond principal and interest.        The owner and holder of each of the bonds or the trustee for any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed herein.                    If a debt-limit general fund bond retirement account is created in the state treasury by chapter . . ., Laws of 1997 (this act) and becomes effective prior to the issuance of any of the bonds authorized by this chapter, the debt-limit general fund bond retirement account shall be used for the purposes of this chapter in lieu of the community college capital improvements bonds redemption fund of 1972.            Sec. 11. RCW 28B.106.040 and 1988 c 125 s 12 are each amended to read as follows:    The state higher education bond retirement fund of 1988 is hereby created in the state treasury, and shall be used for the payment of principal and interest on the college savings bonds.           The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state higher education bond retirement fund of 1988, such amounts and at such times as are required by the bond proceedings. If directed by the state finance committee by resolution, the state higher education bond retirement fund of 1988, or any portion thereof, may be deposited in trust with any qualified public depository.                   The owner and holder of each of the college savings bonds or the trustee for the owner and holder of any of the college savings bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.          If a debt-limit general fund bond retirement account is created in the state treasury by chapter . . ., Laws of 1997 (this act) and becomes effective prior to the issuance of any of the bonds authorized by this chapter, the debt-limit general fund bond retirement account shall be used for the purposes of this chapter in lieu of the state higher education bond retirement fund of 1988.              Sec. 12. RCW 43.83A.090 and 1972 ex.s. c 127 s 9 are each amended to read as follows:             The waste disposal facilities bond redemption fund is created in the state treasury. This fund shall be exclusively devoted to the payment of interest on and retirement of the bonds authorized by this chapter. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet such bond retirement and interest requirements, and on July 1st of each year the state treasurer shall deposit such amount in the waste disposal facilities bond redemption fund from moneys transmitted to the state treasurer by the state department of revenue and certified by the department to be sales tax collections. Such amount certified by the state finance committee to the state treasurer shall be a prior charge against all retail sales tax revenues of the state of Washington, except that portion thereof heretofore pledged for the payment of bond principal and interest. The owner and holder of each of the bonds or the trustee for any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed herein.      If a debt-limit general fund bond retirement account is created in the state treasury by chapter . . ., Laws of 1997 (this act) and becomes effective prior to the issuance of any of the bonds authorized by this chapter, the debt-limit general fund bond retirement account shall be used for the purposes of this chapter in lieu of the waste disposal facilities bond redemption fund.            Sec. 13. RCW 43.99E.045 and 1979 ex.s. c 234 s 8 are each amended to read as follows:    The public water supply facilities bond redemption fund is created in the state treasury. This fund shall be exclusively devoted to the payment of interest on and retirement of the bonds authorized by this chapter. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the public water supply facilities bond redemption fund an amount equal to the amount certified by the state finance committee to be due on the payment date. ((If a state general obligation bond retirement fund is created in the state treasury by chapter 230, Laws of 1979 1st ex. sess. and becomes effective by statute prior to the issuance of any of the bonds authorized by this chapter, the state general obligation bond retirement fund shall be used for purposes of this chapter in lieu of the public water supply facilities bond redemption fund, and the public water supply facilities bond redemption fund shall cease to exist.)) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.    If a debt-limit general fund bond retirement account is created in the state treasury by chapter . . ., Laws of 1997 (this act) and becomes effective prior to the issuance of any of the bonds authorized by this chapter, the debt-limit general fund bond retirement account shall be used for the purposes of this chapter in lieu of the public water supply facilities bond redemption fund.         Sec. 14. RCW 43.99F.080 and 1980 c 159 s 8 are each amended to read as follows:          The waste disposal facilities bond redemption fund shall be used for the purpose of the payment of the principal of and redemption premium, if any, and interest on the bonds and the bond anticipation notes authorized to be issued under this chapter.   The state finance committee, on or before June 30th of each year, shall certify to the state treasurer the amount required in the next succeeding twelve months for the payment of the principal of and interest coming due on the bonds. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the waste disposal facilities bond redemption fund an amount equal to the amount certified by the state finance committee to be due on the payment date. The owner and holder of each of the bonds or the trustee for any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this chapter.              If a debt-limit general fund bond retirement account is created in the state treasury by chapter . . ., Laws of 1997 (this act) and becomes effective prior to the issuance of any of the bonds authorized by this chapter, the debt-limit general fund bond retirement account shall be used for the purposes of this chapter in lieu of the waste disposal facilities bond redemption fund.                  Sec. 15. RCW 43.99G.030 and 1989 1st ex.s. c 14 s 19 are each amended to read as follows:           Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99G.020 (1) through (6) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit general fund bond retirement account.          The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) debt-limit general fund bond retirement account such amounts and at such times as are required by the bond proceedings.              Sec. 16. RCW 43.99G.040 and 1989 1st ex.s. c 14 s 20 are each amended to read as follows:      Both principal of and interest on the bonds issued for the purposes of RCW 43.99G.020(7) shall be payable from the ((higher education bond retirement fund of 1979. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit reimbursable bond retirement account.                 The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((higher education bond retirement fund of 1979, or a special account in such fund,)) nondebt-limit reimbursable bond retirement account such amounts and at such times as are required by the bond proceedings.                    Sec. 17. RCW 43.99G.050 and 1989 1st ex.s. c 14 s 21 are each amended to read as follows:              Both principal of and interest on the bonds issued for the purposes of RCW 43.99G.020(8) shall be payable from the ((state higher education bond retirement fund of 1977. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit general fund bond retirement account.              The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state higher education bond retirement fund of 1977, or a special account in such fund,)) debt-limit general fund bond retirement account such amounts and at such times as are required by the bond proceedings.       Sec. 18. RCW 43.99G.104 and 1989 1st ex.s. c 14 s 23 are each amended to read as follows:       Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99G.102 shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit general fund bond retirement account.         The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) debt-limit general fund bond retirement account such amounts and at such times as are required by the bond proceedings.                Sec. 19. RCW 43.99H.030 and 1991 sp.s. c 31 s 13 are each amended to read as follows:      Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99H.020 (1) through (3), (5) through (14), and (19) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit general fund bond retirement account.      The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) debt-limit general fund bond retirement account such amounts and at such times as are required by the bond proceedings.          Sec. 20. RCW 43.99H.040 and 1991 sp.s. c 31 s 14 are each amended to read as follows:          (1) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(16) shall be payable from the ((higher education bond retirement fund of 1979. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit reimbursable bond retirement account.                The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((higher education bond retirement fund of 1979, or a special account in such fund,)) nondebt-limit reimbursable bond retirement account such amounts and at such times as are required by the bond proceedings.   (2) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(15) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit reimbursable bond retirement account and nondebt-limit reimbursable bond retirement account as set forth under RCW 43.99H.060(2).                The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) debt-limit reimbursable bond retirement account and nondebt-limit reimbursable bond retirement account as set forth under RCW 43.99H.060(2) such amounts and at such times as are required by the bond proceedings.           (3) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(17) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit proprietary appropriated bond retirement account.          The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) nondebt-limit proprietary appropriated bond retirement account such amounts and at such times as are required by the bond proceedings.            (4) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(18) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit reimbursable bond retirement account.                  The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund)) nondebt-limit reimbursable bond retirement account such amounts and at such times as are required by the bond proceedings.                      (5) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(20) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit reimbursable bond retirement account.             The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) nondebt-limit reimbursable bond retirement account such amounts and at such times as are required by the bond proceedings.      (6) Both principal of and interest on the bonds issued for the purposes of RCW 43.99H.020(4) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) nondebt-limit general fund bond retirement account.                   The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) nondebt-limit general fund bond retirement account such amounts and at such times as are required by the bond proceedings.       Sec. 21. RCW 43.99I.030 and 1991 sp.s. c 31 s 3 are each amended to read as follows:                 (1)(a) Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99I.020 (1) ((through (7))) and (2) shall be payable from the ((state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest)) debt-limit general fund bond retirement account.         (b) Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99I.020(3) shall be payable from the nondebt-limit proprietary appropriated bond retirement account.              (c) Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99I.020(4) shall be payable from the nondebt-limit general fund bond retirement account.     (d) Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99I.020 (5) and (6) shall be payable from the nondebt-limit reimbursable bond retirement account.      (e) Both principal of and interest on the bonds issued for the purposes specified in RCW 43.99I.020(7) shall be payable from the nondebt-limit proprietary nonappropriated bond retirement account.           (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required to provide for the payment of principal and interest on such bonds during the ensuing fiscal year in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((state general obligation bond retirement fund, or a special account in such fund,)) appropriate account as set forth under subsection (1) of this section such amounts and at such times as are required by the bond proceedings.      Sec. 22. RCW 43.99J.030 and 1993 sp.s. c 12 s 3 are each amended to read as follows:                     (1)(a) The ((state general obligation bond retirement fund)) debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in RCW 43.99J.020(1).     (b) The nondebt-limit proprietary nonappropriated bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in RCW 43.99J.020(2).           (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. On the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the ((general obligation bond retirement fund)) debt-limit general fund bond retirement account or nondebt-limit proprietary nonappropriated bond retirement account, as necessary, an amount equal to the amount certified by the state finance committee to be due on the payment date.         (3) Bonds issued under RCW 43.99J.010 shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.      (4) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.